EX-12 8 c61448exv12.htm EX-12 exv12
Exhibit 12
The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
                                         
    Years Ended December 31,  
    2010     2009     2008     2007     2006  
    (Millions)
Earnings:
                                       
Income (loss) from continuing operations before income taxes
  $ (946 )   $ 943     $ 2,144     $ 1,400     $ 533  
Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
    (56 )     (49 )     (61 )     (60 )     (99 )
 
                             
 
                                       
Income (loss) from continuing operations before income taxes and equity earnings
    (1,002 )     894       2,083       1,340       434  
 
                                       
Add:
                                       
Fixed charges:
                                       
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees (a)
    667       691       658       688       671  
Rental expense representative of interest factor
    13       15       21       22       16  
 
                             
Total fixed charges
    680       706       679       710       687  
 
                                       
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
    58       33       53       48       113  
 
                                       
Less:
                                       
Capitalized interest
    (51 )     (76 )     (59 )     (32 )     (17 )
 
                             
 
                                       
Total earnings as adjusted
  $ (315 )   $ 1,557     $ 2,756     $ 2,066     $ 1,217  
 
                             
 
                                       
Fixed charges
  $ 680     $ 706     $ 679     $ 710     $ 687  
 
                             
 
                                       
Ratio of earnings to fixed charges
    (b )     2.21       4.06       2.91       1.77  
 
                             
 
(a)   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.
 
(b)   Earnings are inadequate to cover fixed charges by $995 million.