EX-12 2 c58400exv12.htm EX-12 exv12
Exhibit 12
The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
                                         
    Years Ended December 31,  
    2009     2008     2007     2006     2005  
    (Millions)  
Earnings:
                                        
Income from continuing operations before income taxes and cumulative effect of change in accounting principles
   $ 943     $ 2,144     $ 1,400     $ 533     $ 737  
Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
     (49 )     (61 )     (60 )     (99 )     (66 )
 
                              
 
                                        
Income from continuing operations before income taxes and cumulative effect of change in accounting principles and equity earnings
     894       2,083       1,340       434       671  
 
                                        
Add:
                                        
Fixed charges:
                                        
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees (a)
     691       658       688       671       656  
Rental expense representative of interest factor
     15       21       22       16       19  
 
                              
Total fixed charges
     706       679       710       687       675  
 
                                        
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
     33       53       48       113       108  
 
                                        
Less:
                                        
Capitalized interest
     (76 )     (59 )     (32 )     (17 )     (7 )
 
                              
 
                                        
Total earnings as adjusted
   $ 1,557     $ 2,756     $ 2,066     $ 1,217     $ 1,447  
 
                              
 
                                        
Fixed charges
   $ 706     $ 679     $ 710     $ 687     $ 675  
 
                              
 
                                        
Ratio of earnings to fixed charges
     2.21       4.06       2.91       1.77       2.14  
 
                              
 
(a)   Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included in provision for income taxes in our Consolidated Statement of Income.