EX-99.2 4 d01415exv99w2.txt RECONCILIATION OF INCOME (LOSS) EXHIBIT 99.2 WILLIAMS RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO RECURRING EARNINGS (UNAUDITED)
Three months ended Nine months ended September 30, September 30, ---------------------------- ---------------------------- (Dollars in millions, except for per-share amounts) 2002 2001 2002 2001 ------------ ------------ ------------ ------------ INCOME (LOSS) FROM CONTINUING OPERATIONS $ (408.7) $ 193.9 $ (634.0) $ 872.8 PREFERRED STOCK DIVIDENDS 6.8 -- 83.3 -- ------------ ------------ ------------ ------------ INCOME (LOSS) FROM CONTINUING OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS $ (415.5) $ 193.9 $ (717.3) $ 872.8 ============ ============ ============ ============ INCOME (LOSS) FROM CONTINUING OPERATIONS - DILUTED EARNINGS PER SHARE $ (0.80) $ 0.39 $ (1.39) $ 1.77 ============ ============ ============ ============ NONRECURRING ITEMS: Energy Marketing & Trading Write-down of investments of eSpeed stock and Houston Street -- 23.3 -- 23.3 Loss accruals for commitments related to assets to have been used in power projects 11.5 -- 93.3 -- Impairment of goodwill** -- -- 57.5 -- Reversal of Energy Capital Mezzanine Financing accrual -- -- (7.0) -- Write off of costs associated with termination of certain projects (1.0) -- 7.9 -- Early retirement expenses -- -- 4.2 -- Hazelton plant expansion write-off 3.3 -- 3.3 -- Strategic realignment-related charges 5.2 -- 8.2 -- ------------ ------------ ------------ ------------ Total EM&T nonrecurring items 19.0 23.3 167.4 23.3 Gas Pipeline Construction completion fee - received -- -- (27.4) -- Write-offs of terminated gas pipeline projects -- -- 12.3 -- Early retirement expenses -- -- 10.7 -- Gain on sale of Northern Border LP interest -- -- -- (27.5) Cross Bay write-off 1.6 -- 1.6 -- Gain on sale of Northern Border Limited Partnership units (8.7) -- (8.7) -- Net impairment on investment Alliance US sale 11.6 -- 11.6 -- Loss on sale Cove Point 3.7 -- 3.7 -- Strategic realignment-related charges 7.3 -- 7.3 -- ------------ ------------ ------------ ------------ Total Gas Pipeline nonrecurring items 15.5 -- 11.1 (27.5) Exploration & Production Early retirement expenses -- -- 0.4 -- (Gain) loss on sale of E&P properties 3.8 -- (0.1) -- Gain on sale of Anadarko (21.6) -- (21.6) -- Gain on sale of Jonah (122.3) -- (122.3) -- Strategic realignment-related charges 0.1 -- 0.1 -- ------------ ------------ ------------ ------------ Total Exploration & Production nonrecurring items (140.0) -- (143.5) -- International Early retirement expenses -- -- 0.9 -- Gain on sale of Mazeikiu Nafta (58.5) -- (58.5) -- Strategic realignment-related charges 1.9 -- 1.9 -- ------------ ------------ ------------ ------------ Total International nonrecurring items (56.6) -- (55.7) -- Midstream Gas & Liquids Early retirement expenses -- -- 0.8 -- Impairment of south Texas assets as held for sale -- 4.2 -- 15.1 Gulf Liquids prior period adjustment 9.3 -- -- -- Impairment of Kansas-Hugoton facilities as assets held for sale 1.1 -- 5.9 -- Impairment of WS-1 building 2.4 -- 2.4 -- Strategic realignment-related charges 1.5 -- 1.5 -- ------------ ------------ ------------ ------------ Total Midstream Gas & Liquids nonrecurring items 14.3 4.2 10.6 15.1 Petroleum Services Early retirement expenses -- -- 1.2 -- Gain on sale of convenience stores -- -- -- (72.1) Accrued liability for royalty oil claim - 1995-99 -- -- -- 7.5 Impairment of Touchstar business to fair value -- -- -- 11.2 Impairment and loss accruals for certain Travel Centers 112.1 -- 139.1 -- Impairment of Wiljet assets 1.4 -- 1.4 -- Impairment of Wiljet investment 0.7 -- 0.7 -- Impairment of Bio-Energy assets and goodwill 144.3 -- 144.3 -- Impairment of Memphis Refinery 176.2 -- 176.2 -- Strategic realignment-related charges 0.2 -- 0.2 -- ------------ ------------ ------------ ------------ Total Petroleum Services nonrecurring items 434.9 -- 463.1 (53.4) Convertible preferred stock dividends** -- -- 69.4 -- Estimated loss on realization of amounts from Williams Communications Group, Inc. 22.9 -- 269.9 -- Transaction costs - Amortization of 1998 MAPCO merger-related costs -- -- -- 1.5 Gain on disposition of Prudential shares received from demutualization -- -- (11.0) -- Early retirement expenses -- -- 11.3 -- Write-down of investment in WCG stock** -- 70.9 -- 70.9 Settlement from former coal operations -- 9.7 -- 9.7 Costs associated with business & liquidity issue resolution 21.7 -- 21.7 -- Strategic realignment-related charges 6.4 -- 6.4 -- Corporate asset impairments 4.0 -- 4.0 -- Other -- 5.0 -- 5.0 ------------ ------------ ------------ ------------ TOTAL NONRECURRING ITEMS 342.1 113.1 824.7 44.6 Tax effect for above items 130.9 7.6 262.5 19.8 ------------ ------------ ------------ ------------ RECURRING EARNINGS (LOSS) $ (204.3) $ 299.4 $ (155.1) $ 897.6 ============ ============ ============ ============ RECURRING DILUTED EARNINGS (LOSS) PER COMMON SHARE $ (0.40) $ 0.59 $ (0.30) $ 1.82 ============ ============ ============ ============ WEIGHTED-AVERAGE SHARES - DILUTED (THOUSANDS) 516,901 506,165 516,688 493,812
**NO TAX BENEFIT