Exhibit 12
The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Fixed Charges
Years Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles | $ | 2,144 | $ | 1,400 | $ | 533 | $ | 737 | $ | 261 | ||||||||||
Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investee | (61 | ) | (60 | ) | (99 | ) | (66 | ) | (50 | ) | ||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles and equity earnings | 2,083 | 1,340 | 434 | 671 | 211 | |||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investee (a) | 658 | 688 | 671 | 656 | 799 | |||||||||||||||
Rental expense representative of interest factor | 21 | 22 | 16 | 19 | 18 | |||||||||||||||
Total fixed charges | 679 | 710 | 687 | 675 | 817 | |||||||||||||||
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investee | 53 | 48 | 113 | 108 | 61 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (59 | ) | (32 | ) | (17 | ) | (7 | ) | (7 | ) | ||||||||||
Total earnings as adjusted | $ | 2,756 | $ | 2,066 | $ | 1,217 | $ | 1,447 | $ | 1,082 | ||||||||||
Fixed charges | $ | 679 | $ | 710 | $ | 687 | $ | 675 | $ | 817 | ||||||||||
Ratio of earnings to fixed charges | 4.06 | 2.91 | 1.77 | 2.14 | 1.32 | |||||||||||||||
(a) | Does not include interest related to income taxes, including interest related to FIN 48 liabilities, which is included inprovision for income taxeson our Consolidated Statement of Income. See Note 5 of Notes to Consolidated Financial Statements in Exhibit 99.1. |
The Williams Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Fixed Charges
Three months ended | ||||
March 31, 2009 | ||||
(Millions) | ||||
Earnings: | ||||
Income from continuing operations before income taxes | $ | 75 | ||
Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investee | (12 | ) | ||
Income from continuing operations before income taxes and equity earnings | 63 | |||
Add: | ||||
Fixed charges: | ||||
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investee (a) | 168 | |||
Rental expense representative of interest factor | 6 | |||
Total fixed charges | 174 | |||
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investee | 3 | |||
Less: | ||||
Capitalized interest | (20 | ) | ||
Total earnings as adjusted | $ | 220 | ||
Fixed charges | $ | 174 | ||
Ratio of earnings to fixed charges | 1.26 | |||
(a) | Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included inprovision for income taxesin our Consolidated Statement of Operations. |