EX-12 6 wmb_20131231xex12.htm EX-12 WMB_2013.12.31_EX12


Exhibit 12

The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
 
 
 
Years Ended December 31,
  
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
(Millions)
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
1,080

 
$
1,289

 
$
1,202

 
$
385

 
$
550

Less: Equity earnings (1)
 
(134
)
 
(111
)
 
(155
)
 
(143
)
 
(118
)
Income from continuing operations before income taxes and equity earnings
 
946

 
1,178

 
1,047

 
242

 
432

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest incurred (1)(2)
 
611

 
568

 
598

 
628

 
656

Rental expense representative of interest factor
 
11

 
11

 
10

 
10

 
10

Total fixed charges
 
622

 
579

 
608

 
638

 
666

Distributed income of equity method investees (1)
 
245

 
161

 
191

 
174

 
134

Less:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(101
)
 
(59
)
 
(25
)
 
(36
)
 
(61
)
Total earnings as adjusted
 
$
1,712

 
$
1,859

 
$
1,821

 
$
1,018

 
$
1,171

Fixed charges
 
$
622

 
$
579

 
$
608

 
$
638

 
$
666

Ratio of earnings to fixed charges
 
2.75

 
3.21

 
3.00

 
1.60

 
1.76

 
(1)
Prior years have been recast to include the effect of 50%-owned companies.
(2)
Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included in Provision (benefit) for income taxes in our Consolidated Statement of Income.