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Benefit Plans
12 Months Ended
Dec. 31, 2011
Benefit Plans [Abstract]  
BENEFIT PLANS
4. BENEFIT PLANS

 

Certain of the benefit costs charged to us by Williams associated with employees who directly support us are described below. Additionally, allocated corporate expenses from Williams to us also include amounts related to these same employee benefits, which are not included in the amounts presented below.

 

Pension and Other Postretirement Benefit Plans

 

Williams has noncontributory defined benefit pension plans (Williams Pension Plan, Williams Inactive Employees Pension Plan, and The Williams Companies Retirement Restoration Plan) that provide pension benefits for its eligible employees. Pension expense charged to us by Williams was $5.7 million in 2011, $6.1 million in 2010 and $7.5 million in 2009.

 

Williams provides certain retiree health care and life insurance benefits for eligible participants that generally were employed by Williams on or before December 31, 1991. No other postretirement benefit expense was recognized in 2011, 2010, or 2009, as such costs are not currently being recovered in our rates. (See Note 8.)

 

Defined Contribution Plan

 

Williams charged us compensation expense of $2.4 million in 2011, $2.2 million in 2010, and $2.2 million in 2009 for Williams' company matching contributions to this plan.

 

Employee Stock-Based Compensation Plan Information

The Williams Companies, Inc. 2007 Incentive Plan, as amended and restated on February 23, 2010, (Plan) was approved by stockholders on May 20, 2010. The Plan provides for Williams' common stock-based awards to both employees and nonmanagement directors. The Plan permits the granting of various types of awards including, but not limited to, restricted stock units and stock options. Awards may be granted for no consideration other than prior and future services or based on certain financial performance targets achieved.

 

Williams currently bills us directly for compensation expense related to stock-based compensation awards based on the fair value of the options. We are also billed for our proportionate share of both Williams Gas Pipeline Company, LLC's (WGP) and Williams' stock-based compensation expense through various allocation processes.

 

Total stock-based compensation expense, included in administrative and general expenses, for the years ended December 31, 2011, 2010 and 2009 was $1.2 million, $1.4 million and $1.3 million, respectively, excluding amounts allocated from WGP, WPZ, and Williams.