Earnings (Loss) Per Common Share from Continuing Operations

9 Months Ended

Sep. 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				Nine months ended
		September 30,				September 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)	$	277	$	(1,258)	$	836	$	(1,265)
Basic weighted-average shares			588,950		584,744		588,082		584,365
Effect of dilutive securities:
	Nonvested restricted stock units		3,767		-		3,925		-
	Stock options		3,029		-		3,342		-
	Convertible debentures		1,804		-		1,901		-
Diluted weighted-average shares			597,550		584,744		597,250		584,365
Earnings (loss) per common share from continuing operations:
	Basic	$	.47	$	(2.15)	$	1.42	$	(2.16)
	Diluted	$	.47	$	(2.15)	$	1.40	$	(2.16)

• The three- and nine-month periods ended September 30, 2011, include$.2 million and $.5 million, respectively, of interest expense, net of tax, associatedwith our convertible debentures. This amount has been added back to income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholdersto calculate diluted earnings percommon share.

For the three and nine months ended September 30, 2010,2.9 million and3.0 million, respectively, weighted-average nonvested restricted stock units and2.4 million and2.9million, respectively,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 three and nine months ended September 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 $54 million and $163 million of income for the three and nine months ended September 30, 2010,respectively, then these shares would become dilutive.

The table below includes information related to stock options that were outstanding at September 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 third quarter weighted-average market price of our common shares.

	September 30,
	2011	2010
Options excluded (millions)	3.0	6.9
Weighted-average exercise price of options excluded	$31.41	$24.54
Exercise price ranges of options excluded	$28.30 - $37.88	$19.29 - $40.51
Third quarter weighted-average market price	$27.72	$19.14