EXHIBIT 12
WASTE MANAGEMENT, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions, Except Ratios)
(Unaudited)
                 
    Six Months Ended  
    June 30,  
    2007     2006  
Income before income taxes, losses in equity investments and minority interests
   $ 883     $ 758  
 
            
Fixed charges deducted from income:
                
Interest expense
     267       274  
Implicit interest in rents
     31       25  
 
            
 
     298       299  
 
            
Earnings available for fixed charges (a)
   $ 1,181     $ 1,057  
 
            
 
                
Interest expense
   $ 267     $ 274  
Capitalized interest
     10       7  
Implicit interest in rents
     31       25  
 
            
Total fixed charges (a)
   $ 308     $ 306  
 
            
 
                
Ratio of earnings to fixed charges
     3.8x       3.5x  
 
            
 
(a)   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 Statements of Operations. For purposes of this disclosure, interest expense related to income tax matters has been excluded from our measurements of “Earnings available for fixed charges” and “Total fixed charges” for all periods presented.