EXHIBIT 12.1 Waste Management, Inc. Computation of Ratio of Earnings to Fixed Charges (In Millions, Except Ratios) (Unaudited) <Table> <Caption> Years Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Income (loss) from continuing operations before income taxes, undistributed earnings from affiliated companies, and minority interest $ 792 $ 344 $ (139) ---------- ---------- ---------- Fixed charges deducted from income: Interest expense 541 748 770 Implicit interest in rents 65 74 75 ---------- ---------- ---------- 606 822 845 ---------- ---------- ---------- Earnings available for fixed charges $ 1,398 $ 1,166 $ 706 ========== ========== ========== Interest expense $ 541 $ 748 $ 770 Capitalized interest 16 22 34 Implicit interest in rents 65 74 75 ---------- ---------- ---------- Total fixed charges $ 622 $ 844 $ 879 ========== ========== ========== Ratio of earnings to fixed charges 2.2x 1.4x n/a(1) ========== ========== ========== </Table> - ---------- (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 $173 million were needed to have a one-to-one ratio. The earnings available for fixed charges were negatively impacted by merger costs of $45 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 $739 million (see Note 17 to the consolidated financial statements).