WASTE MANAGEMENT, INC. Ratio of Earnings to Fixed Charges (Unaudited) (millions of dollars, except ratio) Nine Months Ended September 30 ---------------------- 1996 1997 ---------- --------- Income from continuing operations before income taxes, undistributed earnings from affiliated companies and minority interest $ 835.4 $ 638.9 Interest expense 361.7 352.0 Capitalized interest (24.9) (19.6) One-third of rents payable in the next year 39.3 35.7 ---------- --------- Income from continuing operations before income taxes, undistributed earnings from affiliated companies, minority interest, interest and one- third of rents $ 1,211.5 $ 1,007.0 ========== ========= Interest expense $ 361.7 $ 352.0 One-third of rents payable in the next year 39.3 35.7 ---------- --------- Interest expense plus one-third of rents $ 401.0 $ 387.7 ========== ========= Ratio of earnings to fixed charges 3.02 to 1 2.60 to 1