EX-12 11 wmb_20161231xex12.htm EX-12 Exhibit


Exhibit 12

The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
 
 
 
Years Ended December 31,
  
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
(Millions)
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes (2)
 
$
(375
)
 
$
(1,713
)
 
$
3,584

 
$
1,080

 
$
1,289

Less: Equity earnings
 
(397
)
 
(335
)
 
(144
)
 
(134
)
 
(111
)
Income (loss) from continuing operations before income taxes and equity earnings (2)
 
(772
)
 
(2,048
)
 
3,440

 
946

 
1,178

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest incurred (1)
 
1,217

 
1,118

 
888

 
611

 
568

Rental expense representative of interest factor
 
11

 
10

 
9

 
11

 
11

Total fixed charges
 
1,228

 
1,128

 
897

 
622

 
579

Distributed income of equity-method investees
 
739

 
617

 
409

 
245

 
161

Less:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(38
)
 
(74
)
 
(141
)
 
(101
)
 
(59
)
Total earnings as adjusted (2)
 
$
1,157

 
$
(377
)
 
$
4,605

 
$
1,712

 
$
1,859

Fixed charges
 
$
1,228

 
$
1,128

 
$
897

 
$
622

 
$
579

Ratio of earnings to fixed charges
 
0.94

 
*

 
5.13

 
2.75

 
3.21


(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 Operations.
(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.
* Earnings were inadequate to cover fixed charges by $1,505 million for 2015.