Earnings (Loss) Per Common Share from Continuing Operations

6 Months Ended

Jun. 30, 2011

Earnings (Loss) Per Common Share from Continuing Operations [Abstract]

Earnings (Loss) Per Common Share from Continuing Operations

Note 6. Earnings (Loss) Per Common Share from Continuing Operations

	Three months ended				Six months ended
	June 30,				June 30,
	2011		2010		2011		2010
	(Dollars in millions, except per-share
	amounts; shares in thousands)
Income (loss) from continuing operations attributable to The
Williams Companies, Inc. available to common stockholders for basic and diluted earnings (loss) per common share (1)	$	230	$	188	$	559	$	(7	)
Basic weighted-average shares		588,310		584,414		587,641		584,173
Effect of dilutive securities:
Nonvested restricted stock units		3,887		2,826		4,005		—
Stock options		3,537		3,022		3,501		—
Convertible debentures		1,899		2,236		1,950		—
Diluted weighted-average shares		597,633		592,498		597,097		584,173
Earnings (loss) per common share from continuing operations:
Basic	$	.39	$	.32	$	.95	$	(.01	)
Diluted	$	.38	$	.31	$	.94	$	(.01	)

(1) The three- and six-month periods ended June 30, 2011, include $.2 million and $.4 million, respectively, and the three-month period ended June 30, 2010 includes $.2 million of interest expense, net of tax, associated with our convertible debentures. This amount has been added back to income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders to calculate diluted earnings per common share.

     For the six months ended June 30, 2010, 3.0 million weighted-average nonvested restricted stock units and 3.1 million weighted-average stock options have been excluded from the computation of diluted earnings per common share as their inclusion would be antidilutive due to our loss from continuing operations attributable to The Williams Companies, Inc.

     Additionally, for the six months ended June 30, 2010, 2.2 million weighted-average shares related to the assumed conversion of our convertible debentures, as well as the related interest, net of tax, have been excluded from the computation of diluted earnings per common share. Inclusion of these shares would have an antidilutive effect on the diluted earnings per common share. We estimate that if income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders was $109 million of income for the six months ended June 30, 2010, then these shares would become dilutive.

     The table below includes information related to stock options that were outstanding at June 30 of each respective year but have been excluded from the computation of weighted-average stock options due to the option exercise price exceeding the second quarter weighted-average market price of our common shares.

	June 30,
	2011		2010
Options excluded (millions)		1.0		3.3
Weighted-average exercise price of options excluded	$	36.47	$	29.44
Exercise price ranges of options excluded	$	32.05 - $37.88	$	21.55 - $40.51
Second quarter weighted-average market price	$	30.54	$	21.54

     In the second quarter of 2011, an additional 600 thousand options with exercise prices less than the second quarter weighted-average market price were excluded from the computation of weighted-average stock options due to the shares being antidilutive.