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EXHIBIT 12.1
Waste Management, Inc.
Computation of Ratio Earnings to Fixed Charges
(In Thousands, Except Ratios)
(Unaudited)
Years Ended December 31,
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1999 1998 1997
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Income (loss) from continuing operations before income
taxes, undistributed earnings from affiliated
companies, and minority interest $(138,551) $(678,919) $(609,024)
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Fixed charges deducted from income:
Interest expense 769,655 681,457 555,576
Implicit interest in rents 75,219 79,108 58,869
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844,874 760,565 614,445
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Earnings available for fixed charges $ 706,323 $ 81,646 $ 5,421
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Interest expense $ 769,655 $ 681,457 $ 555,576
Capitalized interest 34,284 41,501 51,376
Implicit interest in rents 75,218 79,108 58,869
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Total fixed charges $ 879,157 $ 802,066 $ 665,821
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Ratio of earnings to fixed charges n/a(1) n/a(2) n/a(3)
========= ========= =========
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(1) The ratio of earnings to fixed charges for 1999 was less than a one-to-one
ratio. Additional earnings available for fixed charges of $172.8 million
were needed to have a one-to-one ratio. The earnings available for fixed
charges were negatively impacted by merger cost of $44.6 million primarily
related to the merger between Waste Management, Inc. and Waste Management
Holdings, Inc. during July 1998 and asset impairments and unusual items of
$738.8 million (see Note 15 to the financial statements).
(2) The ratio of earnings to fixed charges for 1998 was less than a one-to-one
ratio. Additional earnings available for fixed charges of $720.4 million
were needed to have a one-to-one ratio. The earnings available for fixed
charges were negatively impacted by merger cost of $1.8 billion and
unusual items of $864.1 million related primarily to the mergers between
Waste Management, Inc. and Waste Management Holdings, Inc. during July
1998, and Waste Management, Inc. and Eastern Environmental Services, Inc.
during December 1998.
(3) The ratio of earnings to fixed charges for 1997 was less than a one-to-one
ratio. Additional earnings available for fixed charges of $660.4 million
were needed to have a one-to-one ratio. The earnings available for fixed
charges were negatively impacted by merger costs of $112.7 million
(primarily related to the United Waste Systems, Inc. merger in August
1997), and asset impairments and unusual items of $1.8 billion. The asset
impairment and unusual items of $1.8 billion primarily related to a
comprehensive review performed by Waste Management Holdings, Inc. of its
operating assets and investments.