Earnings (Loss) Per Common Share from Continuing Operations

12 Months Ended

Dec. 31, 2012

Earnings Per Common Share from Continuing Operations [Abstract]

Earnings Per Common Share from Continuing Operations

Note 7. Earnings (Loss) Per Common Share from Continuing Operations

		Years Ended December 31,
		2012		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)	$	723	$	803	$	104
Basic weighted-average shares			619,792		588,553		584,552
Effect of dilutive securities:
	Nonvested restricted stock units		2,694		4,332		3,190
	Stock options		2,608		3,374		2,957
	Convertible debentures		392		1,916		-
Diluted weighted-average shares			625,486		598,175		590,699
Earnings (loss) per common share from continuing operations:
	Basic	$	1.17	$	1.36	$	.17
	Diluted	$	1.15	$	1.34	$	.17

• 2011 includes$.7 million of interest expense, net of tax, associatedwith our convertible debentures. (See Note13.) 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 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 2010 income (loss) from continuing operations attributable to The Williams Companies,Inc. available to common stockholders was $222 million of income, then these shares would become dilutive.

Effective January 1, 2012, new awards of time-based restricted stock units contain a nonforfeitable right to dividends during the vesting period. These share-based payment awards are participating securities and are included in the computation of earnings (loss) per common share pursuant to the two-class method. The impact for the year ended December 31, 2012, is immaterial.

The table below includes information related to stock options for each period that were excluded from the computation of weighted-average stock options due to the option exercise price exceeding the fourth quarter weighted-average market price of our common shares. All stock options outstanding at December 31, 2012 were dilutive.

	2012	2011	2010
Options excluded (millions)	-	0.9	2.4
Weighted-average exercise price of options excluded	$0.00	$29.68	$32.41
Exercise price ranges of options excluded	$0.00 - $0.00	$26.10 - $29.72	$22.68 - $40.51
Fourth quarter weighted-average market price	$33.38	$24.51	$22.47