EX-12 8 wmb_20141231xex12.htm EX-12 WMB_2014.12.31_EX12


Exhibit 12

The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
 
 
 
Years Ended December 31,
  
 
2014
 
2013
 
2012
 
2011
 
2010
 
 
(Millions)
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes (2)
 
$
3,584

 
$
1,080

 
$
1,289

 
$
1,202

 
$
385

Less: Equity earnings
 
(144
)
 
(134
)
 
(111
)
 
(155
)
 
(143
)
Income from continuing operations before income taxes and equity earnings (2)
 
3,440

 
946

 
1,178

 
1,047

 
242

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest incurred (1)
 
888

 
611

 
568

 
598

 
628

Rental expense representative of interest factor
 
16

 
11

 
11

 
10

 
10

Total fixed charges
 
904

 
622

 
579

 
608

 
638

Distributed income of equity-method investees
 
409

 
245

 
161

 
191

 
174

Less:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(141
)
 
(101
)
 
(59
)
 
(25
)
 
(36
)
Total earnings as adjusted (2)
 
$
4,612

 
$
1,712

 
$
1,859

 
$
1,821

 
$
1,018

Fixed charges
 
$
904

 
$
622

 
$
579

 
$
608

 
$
638

Ratio of earnings to fixed charges
 
5.10

 
2.75

 
3.21

 
3.00

 
1.60

 
(1)
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.
(2)
Includes a $2.544 billion non-cash gain in 2014 resulting from remeasuring our previous equity-method investment in ACMP to its preliminary acquisition-date fair value in conjunction with accounting for the ACMP Acquisition.