Exhibit 12.1
WASTE MANAGEMENT, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions, Except Ratios)
(Unaudited)
Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Income before income taxes and losses in equity investments(a) | $ | 535 | $ | 1,350 | $ | 1,557 | $ | 1,656 | $ | 1,475 | ||||||||||
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Fixed charges deducted from income: | ||||||||||||||||||||
Interest expense | 481 | 488 | 481 | 473 | 426 | |||||||||||||||
Implicit interest in rents | 56 | 59 | 45 | 40 | 38 | |||||||||||||||
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537 | 547 | 526 | 513 | 464 | ||||||||||||||||
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Earnings available for fixed charges(b) | $ | 1,072 | $ | 1,897 | $ | 2,083 | $ | 2,169 | $ | 1,939 | ||||||||||
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Interest expense | $ | 481 | $ | 488 | $ | 481 | $ | 473 | $ | 426 | ||||||||||
Capitalized interest | 19 | 21 | 22 | 17 | 17 | |||||||||||||||
Implicit interest in rents | 56 | 59 | 45 | 40 | 38 | |||||||||||||||
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Total fixed charges(b) | $ | 556 | $ | 568 | $ | 548 | $ | 530 | $ | 481 | ||||||||||
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Ratio of earnings to fixed charges(a) | 1.9x | 3.3x | 3.8x | 4.1x | 4.0x | |||||||||||||||
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(a) | Our “Income before income taxes and losses in equity investments” for the periods presented has been significantly affected by restructurings, asset impairments, divestitures and other items that management believes are not representative of our results. The effect of these items on our “Income before income taxes and losses in equity investments” should be considered when comparing the “Ratio of earnings to fixed charges” for the periods presented. |
(b) | To the extent interest may be assessed by taxing authorities on any underpayment of income tax, such amounts are classified as a component of income tax expense in our Consolidated Statements of Operations. For purposes of this disclosure, we have elected to exclude interest expense related to income tax matters from our measurements of “Earnings available for fixed charges” and “Total fixed charges” for all periods presented, as amounts are immaterial. |