Exhibit 12
The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
|
| | | | | | | | | | | | | | | | | | | | |
| | | Years Ended December 31, |
| | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | (Millions) |
| Earnings: | | | | | | | | | | |
| Income (loss) from continuing operations before income taxes (2) | | $ | 535 |
| | $ | (375 | ) | | $ | (1,713 | ) | | $ | 3,584 |
| | $ | 1,080 |
|
| Less: Equity earnings | | (434 | ) | | (397 | ) | | (335 | ) | | (144 | ) | | (134 | ) |
| Income (loss) from continuing operations before income taxes and equity earnings (2) | | 101 |
| | (772 | ) | | (2,048 | ) | | 3,440 |
| | 946 |
|
| Add: | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | |
| Interest incurred (1) | | 1,116 |
| | 1,217 |
| | 1,118 |
| | 888 |
| | 611 |
|
| Rental expense representative of interest factor | | 11 |
| | 11 |
| | 10 |
| | 9 |
| | 11 |
|
| Total fixed charges | | 1,127 |
| | 1,228 |
| | 1,128 |
| | 897 |
| | 622 |
|
| Distributed income of equity-method investees | | 784 |
| | 742 |
| | 619 |
| | 411 |
| | 246 |
|
| Less: | | | | | | | | | | |
| Interest capitalized | | (33 | ) | | (38 | ) | | (74 | ) | | (141 | ) | | (101 | ) |
| Total earnings as adjusted (2) | | $ | 1,979 |
| | $ | 1,160 |
| | $ | (375 | ) | | $ | 4,607 |
| | $ | 1,713 |
|
| Fixed charges | | $ | 1,127 |
| | $ | 1,228 |
| | $ | 1,128 |
| | $ | 897 |
| | $ | 622 |
|
| Ratio of earnings to fixed charges | | 1.76 |
| | 0.94 |
| | * |
| | 5.14 |
| | 2.75 |
|
| |
| (1) | Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included in Provision (benefit) for income taxes in our Consolidated Statement of Operations. |
| |
| (2) | Includes a $2.544 billion non-cash gain in 2014 resulting from remeasuring our previous equity-method investment in ACMP to its preliminary acquisition-date fair value due to acquiring control of ACMP on July 1, 2014. |
* Earnings were inadequate to cover fixed charges by $1,503 million for 2015.
