The Williams Companies, Inc. (WMB) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Statement of Incom

Consolidated Statement of Income (USD $)
In Millions, except Share data in Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Total revenues	$8,255	$11,890	$10,239
Segment costs and expenses:
Costs and operating expenses	6,081	8,776	7,832
Selling, general and administrative expenses	512	504	461
Other (income) expense - net	17	(72)	(2)
Total segment costs and expenses	6,610	9,208	8,291
General corporate expenses	164	149	161
Total operating income	1,481	2,533	1,787
Interest accrued	(661)	(636)	(664)
Interest capitalized	76	59	32
Investing income	46	189	252
Early debt retirement costs	(1)	(1)	(19)
Other income - net	2	0	12
Income from continuing operations before income taxes	943	2,144	1,400
Provision for income taxes	359	677	490
Income from continuing operations	584	1,467	910
Income (loss) from discontinued operations	(223)	125	170
Net income	361	1,592	1,080
Less: Net income attributable to noncontrolling interests	76	174	90
Net income attributable to The Williams Companies, Inc.	285	1,418	990
Amounts attributable to The Williams Companies, Inc.:
Income from continuing operations	438	1,306	829
Income (loss) from discontinued operations	(153)	112	161
Net income attributable to The Williams Companies, Inc.	285	1,418	990
Basic earnings (loss) per common share:
Income from continuing operations	0.75	2.25	1.39
Income (loss) from discontinued operations	-0.26	0.19	0.27
Net income	0.49	2.44	1.66
Weighted-average shares (thousands)	581,674	581,342	596,174
Diluted earnings (loss) per common share:
Income from continuing operations	0.75	2.21	1.37
Income (loss) from discontinued operations	-0.26	0.19	0.26
Net income	0.49	2.4	1.63
Weighted-average shares (thousands)	589,385	592,719	609,866
Exploration & Production
Revenues:
Total revenues	2,219	3,121	2,021
Segment costs and expenses:
Total operating income	400	1,240	731
Gas Pipeline
Revenues:
Total revenues	1,591	1,634	1,610
Segment costs and expenses:
Total operating income	601	630	622
Midstream Gas & Liquids
Revenues:
Total revenues	3,588	5,180	4,933
Segment costs and expenses:
Total operating income	663	812	933
Gas Marketing Services
Revenues:
Total revenues	3,052	6,412	4,633
Segment costs and expenses:
Total operating income	(18)	3	(337)
Other (Other_Member)
Revenues:
Total revenues	27	24	26
Segment costs and expenses:
Total operating income	(1)	(3)	(1)
Business Intersegment, Eliminations [Member]
Revenues:
Intercompany eliminations	(2,222)	(4,481)	(2,984)
General Corporate Expenses [Member]
Segment costs and expenses:
General corporate expenses	($164)	($149)	($161)

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$1,867	$1,438
Accounts and notes receivable (net of allowance of $22 at December 31, 2009 and $29 at December 31, 2008)	829	884
Inventories	222	260
Derivative assets	650	1,464
Assets of discontinued operations	1	142
Other current assets and deferred charges	224	223
Total current assets	3,793	4,411
Investments	886	971
Property, plant and equipment - net	18,644	17,741
Derivative assets	444	986
Goodwill	1,011	1,011
Assets of discontinued operations	0	387
Other assets and deferred charges	502	499
Total assets	25,280	26,006
LIABILITIES AND EQUITY
Accounts payable	934	1,052
Accrued liabilities	948	1,139
Derivative liabilities	578	1,093
Liabilities of discontinued operations	0	217
Long-term debt due within one year	17	18
Total current liabilities	2,477	3,519
Long-term debt	8,259	7,683
Deferred income taxes	3,656	3,315
Derivative liabilities	428	875
Liabilities of discontinued operations	0	82
Other liabilities and deferred income	1,441	1,478
Stockholders' equity
Common stock (960 million shares authorized at $1 par value; 618 million shares issued at December 31, 2009, and 613 million shares issued at December 31, 2008)	618	613
Capital in excess of par value	8,135	8,074
Retained earnings	903	874
Accumulated other comprehensive loss	(168)	(80)
Treasury stock, at cost (35 million shares of common stock)	(1,041)	(1,041)
Total stockholders' equity	8,447	8,440
Noncontrolling interests in consolidated subsidiaries	572	614
Total equity	9,019	9,054
Total liabilities and equity	$25,280	$26,006

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, unless otherwise specified	Dec. 31, 2009	Dec. 31, 2008
Consolidated Balance Sheet (Parenthetical) [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$22	$29
Common Stock, Shares Authorized	960	960
Common Stock, Par or Stated Value Per Share	1	1
Common Stock, Shares, Issued	618	613
Treasury Stock, Shares	35	35

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Beginning balance	$9,054	$7,805	$7,154
Comprehensive income (loss):
Net income	361	1,592	1,080
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	(221)	455	(179)
Foreign currency translation adjustments	83	(76)	53
Pension benefits:
Prior service cost		1
Net actuarial gain (loss)	53	(344)	53
Other postretirement benefits:
Prior service cost	4	9	1
Net actuarial gain (loss)		(9)	9
Total other comprehensive income (loss)	(81)	36	(63)
Total comprehensive income	280	1,628	1,017
Cash Dividends - Common stock ($.39 per share)			(233)
Cash Dividends - Common stock ($.43 per share)		(250)
Cash Dividends - Common stock ($.44 per share)	(256)
Sale of limited partner units of consolidated partnership		362	333
Dividends and distributions to noncontrolling interests	(129)	(122)	(75)
Issuance of common stock from 5.5% debentures conversion (Note 12)	28	27
Initial adjustment for uncertain tax positions			(17)
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		0
Purchase of treasury stock (Note 12)		(474)	(526)
Stock-based compensation, including tax benefit	38	70	148
Other	4	8	4
Ending balance	9,019	9,054	7,805
Capital in Excess of Par Value
Beginning balance	8,074	6,748	6,605
Comprehensive income (loss):
Net income	0	0	0
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	0	0	0
Foreign currency translation adjustments	0	0	0
Pension benefits:
Prior service cost		0
Net actuarial gain (loss)	0	0	0
Other postretirement benefits:
Prior service cost	0	0	0
Net actuarial gain (loss)		0	0
Cash Dividends - Common stock ($.39 per share)			0
Cash Dividends - Common stock ($.43 per share)		0
Cash Dividends - Common stock ($.44 per share)	0
Sale of limited partner units of consolidated partnership		0	0
Dividends and distributions to noncontrolling interests	0	0	0
Issuance of common stock from 5.5% debentures conversion (Note 12)	25	25
Initial adjustment for uncertain tax positions			0
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		1,225
Purchase of treasury stock (Note 12)		0	0
Stock-based compensation, including tax benefit	36	67	143
Other	0	9	0
Ending balance	8,135	8,074	6,748
Retained Earnings (Deficit)
Beginning balance	874	(293)	(1,034)
Comprehensive income (loss):
Net income	285	1,418	990
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	0	0	0
Foreign currency translation adjustments	0	0	0
Pension benefits:
Prior service cost		0
Net actuarial gain (loss)	0	0	0
Other postretirement benefits:
Prior service cost	0	0	0
Net actuarial gain (loss)		0	0
Cash Dividends - Common stock ($.39 per share)			(233)
Cash Dividends - Common stock ($.43 per share)		(250)
Cash Dividends - Common stock ($.44 per share)	(256)
Sale of limited partner units of consolidated partnership		0	0
Dividends and distributions to noncontrolling interests	0	0	0
Issuance of common stock from 5.5% debentures conversion (Note 12)	0	0
Initial adjustment for uncertain tax positions			(17)
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		0
Purchase of treasury stock (Note 12)		0	0
Stock-based compensation, including tax benefit	0	0	0
Other	0	(1)	1
Ending balance	903	874	(293)
Accumulated Other Comprehensive Loss
Beginning balance	(80)	(121)	(60)
Comprehensive income (loss):
Net income	0	0	0
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	(221)	453	(177)
Foreign currency translation adjustments	83	(76)	53
Pension benefits:
Prior service cost		1
Net actuarial gain (loss)	46	(337)	53
Other postretirement benefits:
Prior service cost	4	9	1
Net actuarial gain (loss)		(9)	9
Cash Dividends - Common stock ($.39 per share)			0
Cash Dividends - Common stock ($.43 per share)		0
Cash Dividends - Common stock ($.44 per share)	0
Sale of limited partner units of consolidated partnership		0	0
Dividends and distributions to noncontrolling interests	0	0	0
Issuance of common stock from 5.5% debentures conversion (Note 12)	0	0
Initial adjustment for uncertain tax positions			0
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		0
Purchase of treasury stock (Note 12)		0	0
Stock-based compensation, including tax benefit	0	0	0
Other	0	0	0
Ending balance	(168)	(80)	(121)
Common Stock
Beginning balance	613	608	603
Comprehensive income (loss):
Net income	0	0	0
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	0	0	0
Foreign currency translation adjustments	0	0	0
Pension benefits:
Prior service cost		0
Net actuarial gain (loss)	0	0	0
Other postretirement benefits:
Prior service cost	0	0	0
Net actuarial gain (loss)		0	0
Cash Dividends - Common stock ($.39 per share)			0
Cash Dividends - Common stock ($.43 per share)		0
Cash Dividends - Common stock ($.44 per share)	0
Sale of limited partner units of consolidated partnership		0	0
Dividends and distributions to noncontrolling interests	0	0	0
Issuance of common stock from 5.5% debentures conversion (Note 12)	3	2
Initial adjustment for uncertain tax positions			0
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		0
Purchase of treasury stock (Note 12)		0	0
Stock-based compensation, including tax benefit	2	3	5
Other	0	0	0
Ending balance	618	613	608
Treasury Stock
Beginning balance	(1,041)	(567)	(41)
Comprehensive income (loss):
Net income	0	0	0
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	0	0	0
Foreign currency translation adjustments	0	0	0
Pension benefits:
Prior service cost		0
Net actuarial gain (loss)	0	0	0
Other postretirement benefits:
Prior service cost	0	0	0
Net actuarial gain (loss)		0	0
Cash Dividends - Common stock ($.39 per share)			0
Cash Dividends - Common stock ($.43 per share)		0
Cash Dividends - Common stock ($.44 per share)	0
Sale of limited partner units of consolidated partnership		0	0
Dividends and distributions to noncontrolling interests	0	0	0
Issuance of common stock from 5.5% debentures conversion (Note 12)	0	0
Initial adjustment for uncertain tax positions			0
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		0
Purchase of treasury stock (Note 12)		(474)	(526)
Stock-based compensation, including tax benefit	0	0	0
Other	0	0	0
Ending balance	(1,041)	(1,041)	(567)
Total Stockholders' Equity
Beginning balance	8,440	6,375	6,073
Comprehensive income (loss):
Net income	285	1,418	990
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	(221)	453	(177)
Foreign currency translation adjustments	83	(76)	53
Pension benefits:
Prior service cost		1
Net actuarial gain (loss)	46	(337)	53
Other postretirement benefits:
Prior service cost	4	9	1
Net actuarial gain (loss)		(9)	9
Total other comprehensive income (loss)	(88)	41	(61)
Total comprehensive income	197	1,459	929
Cash Dividends - Common stock ($.39 per share)			(233)
Cash Dividends - Common stock ($.43 per share)		(250)
Cash Dividends - Common stock ($.44 per share)	(256)
Sale of limited partner units of consolidated partnership		0	0
Dividends and distributions to noncontrolling interests	0	0	0
Issuance of common stock from 5.5% debentures conversion (Note 12)	28	27
Initial adjustment for uncertain tax positions			(17)
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		1,225
Purchase of treasury stock (Note 12)		(474)	(526)
Stock-based compensation, including tax benefit	38	70	148
Other	0	8	1
Ending balance	8,447	8,440	6,375
Noncontrolling Interests
Beginning balance	614	1,430	1,081
Comprehensive income (loss):
Net income	76	174	90
Other comprehensive income (loss):
Net change in cash flow hedges (Note 17)	0	2	(2)
Foreign currency translation adjustments	0	0	0
Pension benefits:
Prior service cost		0
Net actuarial gain (loss)	7	(7)	0
Other postretirement benefits:
Prior service cost	0	0	0
Net actuarial gain (loss)		0	0
Total other comprehensive income (loss)	7	(5)	(2)
Total comprehensive income	83	169	88
Cash Dividends - Common stock ($.39 per share)			0
Cash Dividends - Common stock ($.43 per share)		0
Cash Dividends - Common stock ($.44 per share)	0
Sale of limited partner units of consolidated partnership		362	333
Dividends and distributions to noncontrolling interests	(129)	(122)	(75)
Issuance of common stock from 5.5% debentures conversion (Note 12)	0	0
Initial adjustment for uncertain tax positions			0
Conversion of Williams Partners L.P. subordinated units to common units (Note 12)		(1,225)
Purchase of treasury stock (Note 12)		0	0
Stock-based compensation, including tax benefit	0	0	0
Other	4	0	3
Ending balance	$572	$614	$1,430

1_Consolidated Statement of Cha

Consolidated Statement of Changes in Equity (Parenthetical) (USD $)
	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statement of Changes in Equity (Parenthetical) [Abstract]
Cash dividends declared per common share	0.44	0.43	0.39

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING ACTIVITIES:
Net income	$361	$1,592	$1,080
Adjustments to reconcile to net cash provided by operating activities:
Reclassification of deferred net hedge gains related to sale of power business	0	0	(429)
Depreciation, depletion and amortization	1,469	1,310	1,082
Provision for deferred income taxes	249	611	370
Provision for loss on investments, property and other assets	386	166	162
Net (gain) loss on dispositions of assets and business	(44)	(36)	16
Gain on sale of contractual production rights	0	(148)	0
Early debt retirement costs	1	1	19
Provision for doubtful accounts and notes	48	15	12
Amortization of stock-based awards	43	31	70
Cash provided (used) by changes in current assets and liabilities:
Accounts and notes receivable	67	329	(122)
Inventories	33	(48)	29
Margin deposits and customer margin deposits payable	4	88	(135)
Other current assets and deferred charges	(8)	(76)	(10)
Accounts payable	5	(343)	26
Accrued liabilities	(170)	7	(200)
Changes in current and noncurrent derivative assets and liabilities	36	(121)	370
Other, including changes in noncurrent assets and liabilities	92	(23)	(103)
Net cash provided by operating activities	2,572	3,355	2,237
FINANCING ACTIVITIES:
Proceeds from long-term debt	595	674	684
Payments of long-term debt	(33)	(665)	(806)
Proceeds from issuance of common stock	6	32	56
Proceeds from sale of limited partner units of consolidated partnerships	0	362	333
Tax benefit of stock-based awards	1	21	32
Dividends paid	(256)	(250)	(233)
Purchase of treasury stock	0	(474)	(526)
Premiums paid on early debt retirements and tender offer	0	0	(27)
Dividends and distributions paid to noncontrolling interests	(129)	(122)	(75)
Changes in cash overdrafts	(51)	0	52
Other - net	33	(10)	(1)
Net cash provided (used) by financing activities	166	(432)	(511)
INVESTING ACTIVITIES:
Capital expenditures	(2,387)	(3,394)	(2,868)
Net proceeds from dispositions	72	119	12
Purchases of investments/advances to affiliates	(142)	(111)	(60)
Purchases of auction rate securities	0	0	(304)
Purchases of ARO trust investments	(46)	(31)	0
Proceeds from sales of ARO trust investments	41	14	0
Proceeds from sale of business	0	22	471
Proceeds from dispositions of investments and other assets	3	41	92
Proceeds from sales of auction rate securities	0	0	353
Proceeds from sale of contractual production rights	0	148	0
Distribution from Gulfstream Natural Gas System, L.L.C.	148	0	0
Other - net	1	9	8
Net cash used by investing activities	(2,310)	(3,183)	(2,296)
Increase (decrease) in cash and cash equivalents	428	(260)	(570)
Cash and cash equivalents at beginning of period	1,439	1,699	2,269
Cash and cash equivalents at end of period	1,867	1,439	1,699
Supplemental Information
Increases to property, plant and equipment	(2,314)	(3,475)	(2,816)
Changes in related accounts payable and accrued liabilities	(73)	81	(52)
Capital expenditures	($2,387)	($3,394)	($2,868)

Description of Business, Basis

Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Abstract]
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Text Block]	Note1. Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies Description of Business Operations of our company are located principally in the United States and are organized into the following reporting segments: Exploration Production, Gas Pipeline, Midstream Gas Liquids (Midstream), and Gas Marketing Services (Gas Marketing). Exploration Production includes natural gas development, production and gas management activities primarily in the Rocky Mountain and Mid-Continent regions of the United States and oil and natural gas interests in South America. Gas Pipeline is comprised primarily of two interstate natural gas pipelines, as well as investments in natural gas pipeline-related companies. Gas Pipeline includes Northwest Pipeline GP (Northwest Pipeline), which extends from the SanJuan basin in northwestern New Mexico and southwestern Colorado to Oregon and Washington, and Transcontinental Gas Pipe Line Company, LLC (Transco), which extends from the Gulf of Mexico region to the northeastern United States. In addition, we own a 50percent interest in Gulfstream Natural Gas System, L.L.C. (Gulfstream). Gulfstream is a natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida. Midstream is comprised of natural gas gathering and processing and treating facilities located primarily in the Rocky Mountain and Gulf Coast regions of the United States, oil gathering and transportation facilities in the Gulf Coast region of the United States, and assets in Canada, consisting primarily of a natural gas liquids extraction facility and a fractionation plant. Gas Marketing primarily supports our natural gas businesses by providing marketing and risk management services, which include marketing and hedging the gas produced by Exploration Production, and procuring fuel and shrink gas and hedging natural gas liquids (NGLs) sales for Midstream. Gas Marketing also provides similar services to third parties, such as producers. In addition, Gas Marketing manages various natural gas-related contracts such as transportation, storage, related hedges and proprietary trading positions. Basis of Presentation Prior period amounts reported for Midstream have been adjusted for certain contracts involving the purchase and resale of NGLs and/or oil with the same counterparties that should have been reported on a net, rather than gross, basis. The error in presentation overstated both revenues and costs and operating expenses by equal amounts and had no impact on segment profit, operating income, net income, net cash provided by operating activities or any other key internal measures of operating performance. These adjustments reduced previously reported revenues and costs and operating expenses by $295million in 2008 and $99million in 2007. Discontinued operations The accompanying consolidated financial statements and notes reflect the results of operations and financial position of certain of our Venezuela operations and our former power business as discontinued operations. (See Note2). Our former power business included a 7,500-megawatt portfolio of power-

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations [Text Block]	Note2. Discontinued Operations Our Venezuela operations include majority ownership in entities that owned and operated the El Furrial and PIGAP II gas compression facilities prior to their expropriation by the Venezuelan government in May 2009. We previously operated these assets under long-term agreements for the exclusive benefit of the state-owned oil company, Petrleos de Venezuela S.A. (PDVSA). Construction of these assets was funded through project financing that is collateralized by the stock, assets, and contract rights of the entities that operated the Venezuela assets and is nonrecourse to us. We and the secured lenders are pursuing rights available to us under our agreements, including contractual and international arbitration. These operations met the accounting definition of a component of an entity. As a result of the expropriation of the assets and the termination of the associated contracts, we consider these assets to be disposed and thus qualified for reporting as discontinued operations. Considering the expropriation of the assets and the significant controlling rights of the secured lenders, we no longer control these entities and no longer meet the criteria to consolidate them. In conjunction with the deconsolidation of these entities in the second quarter of 2009, we recorded our retained investment in these entities at zero and recognized a pre-tax gain of $9million. This carrying value was based on our estimates of probability-weighted discounted cash flows that considered: (1)alternate arbitration venues, (2)estimated levels of arbitration awards, (3)the subsequent likelihood and timing of collection, (4)the duration of the arbitration process, (5)a discount rate of 20percent, and (6)the allocation of arbitration proceeds between parties, including the secured lenders. The use of alternate judgments and/or assumptions would have resulted in a different gain on deconsolidation. The carrying value of our retained investment in these entities was significantly impacted by our assumptions and is not representative of our underlying claims against PDVSA or the country of Venezuela. The expropriations in the second quarter of 2009 followed an extended period of nonpayment by PDVSA and default notices that we provided in accordance with our agreements. The collection of receivables from PDVSA was historically slower and required more effort than with other customers due to PDVSAs policies and the political environment in Venezuela. In our year-end 2008 analysis, we expected PDVSA to resume regular payments following a February15, 2009, referendum vote in Venezuela; however, that did not happen. PDVSAs continued nonperformance across the industry, their financial distress, and lack of communications with us caused us to revise our assessment in the first quarter of 2009. As a result of this and our first-quarter assessment of the low likelihood of PDVSA curing the defaults, we fully reserved $48million of accounts receivable from PDVSA in the first quarter of 2009. In addition, we ceased revenue recognition of these operations in the first quarter of 2009 as we no longer believed that the collectability of

Investing Actitivies

Investing Actitivies
	12 Months Ended Dec. 31, 2009 USD / shares
Investing Activities [Abstract]
Investing Activities [Text Block]	Note3. Investing Activities Investing Income Years Ended December31, 2009 2008 2007 (Millions) Equity earnings* $ 136 $ 137 $ 137 Income (loss) from investments* (75 ) 1 Impairment of cost-based investments (22 ) (4 ) (1 ) Interest income and other 7 55 116 Total investing income $ 46 $ 189 $ 252 * Items also included in segment profit (loss). (See Note18.) Income (loss) from investments in 2009 reflects a $75million impairment charge related to an other-than-temporary loss in value associated with our Venezuelan investment in Accroven SRL (Accroven). Accroven owns and operates gas processing facilities and a NGL fractionation plant for the exclusive benefit of PDVSA. The deteriorating circumstances in the first quarter of 2009 for our Venezuelan operations (see Note2)caused us to review our investment in Accroven. We utilized a probability-weighted discounted cash flow analysis, which included an after-tax discount rate of 20percent to reflect the risk associated with operating in Venezuela. (See Note14.) Accroven was not part of the operations that were expropriated by the Venezuelan government in May 2009. We have been engaged in discussions regarding the eventual disposition of Accroven. Impairment of cost-based investments in 2009 includes an $11million impairment related to our 4percent interest in a Venezuelan corporation that owns and operates oil and gas activities. This investment resulted from our previous 10percent direct working interest in a concession that was converted to a reduced interest in a mixed company at the direction of the Venezuelan government in 2006. Considering our evaluation of the deteriorating financial condition of this corporation, we recorded an other-than-temporary decline in value of our remaining investment balance. The unfavorable change in interest income and other in 2009 and 2008 is primarily due to lower average interest rates. Investments December31, 2009 2008 (Millions) Equity method: Gulfstream 50% $ 383 $ 525 Discovery Producer Services LLC 60%* 189 184 Laurel Mountain Midstream, LLC 51%* 133 Petrolera Entre Lomas S.A. 40.8% 81 73 Accroven 49.3% 69 Other 98 96 884 947 Cost method 2 24 $ 886 $ 971 * We account for these investments under the equity method due to the significant participatory rights of our partners such that we do not control the investments. Differences between the carrying value of our equity investments and the underlying equity in the net assets of the investees are primarily related to impairments we previously recognized. In 2009, we invested $132million in Laurel Mountain Midstream, LLC. In addition, we contributed $20million in 2009 and $90million in 2008 to Gulfstream. Dividends and distributions, including those pre

Asset Sales, Impairments and Ot

Asset Sales, Impairments and Other Accruals
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Sales, Impairments and Other Accruals [Abstract]
Asset Sales, Impairments and Other Accruals [Text Block]	Note4. Asset Sales, Impairments and Other Accruals The following table presents significant gains or losses reflected in other (income) expense net within segment costs and expenses. Years Ended December31, 2009 2008 2007 (Millions) Exploration Production Gain on sale of contractual right to an international production payment $ $ (148 ) $ Impairment of certain properties 20 143 Penalties from early release of drilling rigs 32 Gas Pipeline Income from change in estimate related to a regulatory liability (17 ) Income from payments received for a terminated firm transportation agreement on Grays Harbor lateral (18 ) Gain on sale of certain south Texas assets (10 ) Midstream Income from favorable litigation outcome (12 ) Impairment of Carbonate Trend pipeline 6 10 Gulf Liquids litigation contingency accrual reversal (see Note16) (32 ) Involuntary conversion gains related to Ignacio plant (4 ) (12 ) Gain on sale of Cameron Meadows plant (40 ) Gas Marketing Services Accrual for litigation contingencies 20 Other (income) expense net within segment costs and expenses also includes net foreign currency exchange gains of $38million in 2008 and net foreign currency exchange losses of $12million in 2007. The net gain in 2008 primarily relates to the remeasurement of current assets held in U.S.dollars within our Canadian operations in the Midstream segment. Impairment of certain Exploration Production properties Based on a comparison of the estimated fair value to the carrying value, Exploration Production recorded a $15million impairment in December 2009 related to costs of acquired unproved reserves resulting from a 2008 acquisition in the FortWorth basin. Additionally, Exploration Production recorded impairment charges of $5million and $143million in 2009 and 2008, respectively, related to properties in the Arkoma basin. Our impairment analysis included an assessment of undiscounted (except for the unproved reserves) and discounted future cash flows, which considered information obtained from drilling, other activities, and year-end natural gas reserve quantities. Additional Items In 2009, Exploration Production recognized $11million of income related to the recovery of certain royalty overpayments from prior periods, which is reflected within revenues. In 2008, Exploration Production recorded a $34million accrual for Wyoming severance taxes, which is reflected in costs and operating expenses within segment costs and expenses. Associated with this charge is an interest expense accrual of $4million, which is included in interest accrued. (See Note16.)

Provision

Provision (Benefit) for Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Provision (Benefit) for Income Taxes [Abstract]
Provision (Benefit) for Income Taxes [Text Block]	Note5. Provision for Income Taxes The provision for income taxes from continuing operations includes: 2009 2008 2007 (Millions) Current: Federal $ 10 $ 179 $ 29 State 12 24 9 Foreign 21 8 21 43 211 59 Deferred: Federal 271 466 422 State 42 (11 ) (4 ) Foreign 3 11 13 316 466 431 Total provision $ 359 $ 677 $ 490 Reconciliations from the provision for income taxes from continuing operations at the federal statutory rate to the realized provision for income taxes are as follows: 2009 2008 2007 (Millions) Provision at statutory rate $ 330 $ 750 $ 490 Increases (decreases) in taxes resulting from: State income taxes (net of federal benefit) 35 8 4 Foreign operations net 25 (16 ) 1 Impact of nontaxable noncontrolling interests (49 ) (54 ) (25 ) Other net 18 (11 ) 20 Provision for income taxes $ 359 $ 677 $ 490 State income taxes (net of federal benefit) were reduced by $46million in 2008 due to a reduction in our estimate of the effective deferred state rate reflective of a change in the mix of jurisdictional attribution of taxable income. Income from continuing operations before income taxes includes $36million of foreign loss, and $139million and $127million of foreign income in 2009, 2008, and 2007, respectively. During the course of audits of our business by domestic and foreign tax authorities, we frequently face challenges regarding the amount of taxes due. These challenges include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the liability associated with our various filing positions, we apply the two-step process of recognition and measurement. In association with this liability, we record an estimate of related interest and tax exposure as a component of our tax provision. The impact of this accrual is included within other net in our reconciliation of the tax provision to the federal statutory rate. Significant components of deferred tax liabilities and deferred tax assets as of December31, 2009 and 2008, are as follows: 2009 2008 (Millions) Deferred tax liabilities: Property, plant and equipment $ 3,658 $ 3,288 Derivatives net 66 263 Investments 491 380 Other 108 112 Total deferred tax liabilities 4,323 4,043 Deferred tax assets: Accrued liabilities 557 581 Foreign carryovers 4 3 Minimum tax credits 62 Other 58 55 Total deferred tax assets 681 63

Earnings

Earnings (Loss) Per Common Share from Continuing Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings (Loss) Per Common Share from Continuing Operations [Abstract]
Earnings Per Common Share from Continuing Operations [Text Block]	Note6. Earnings Per Common Share from Continuing Operations Years Ended December31, 2009 2008 2007 (Dollars in millions, except per-share amounts; shares in thousands) Income from continuing operations attributable to The Williams Companies, Inc., available to common stockholders for basic and diluted earnings per common share(1) $ 438 $ 1,306 $ 829 Basic weighted-average shares(2)(3) 581,674 581,342 596,174 Effect of dilutive securities: Nonvested restricted stock units 2,216 1,334 1,627 Stock options 2,065 3,439 4,743 Convertible debentures(3) 3,430 6,604 7,322 Diluted weighted-average shares 589,385 592,719 609,866 Earnings per common share from continuing operations: Basic $ .75 $ 2.25 $ 1.39 Diluted $ .75 $ 2.21 $ 1.37 (1) The years of 2009, 2008, and 2007 include $1million, $2million and $3million, respectively, of interest expense, net of tax, associated with our 5.5percent convertible debentures. (See Note12.) These amounts have been added back to income from continuing operations attributable to The Williams Companies, Inc., available to common stockholders to calculate diluted earnings per common share. (2) From the inception of our stock repurchase program in third-quarter 2007 to its completion in July 2008, we purchased 29million shares of our common stock. (See Note12.) (3) During 2009 and 2008, we issued 3million shares and 2million shares, respectively, of our common stock in exchange for a portion of our 5.5percent convertible debentures. (See Note 12.) The table below includes information related to stock options that were outstanding at the end of each respective year but have been 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. 2009 2008 2007 Options excluded (millions) 3.7 6.4 .8 Weighted-average exercise prices of options excluded $ 30.21 $ 26.41 $ 40.07 Exercise price ranges of options excluded $ 20.28 - $42.29 $ 16.40 - $42.29 $ 36.66 - $42.29 Fourth quarter weighted-average market price $ 19.81 $ 16.37 $ 35.14

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans [Abstract]
Employee Benefit Plans [Text Block]	Note7. Employee Benefit Plans We have noncontributory defined benefit pension plans in which all eligible employees participate. Currently, eligible employees earn benefits primarily based on a cash balance formula. Various other formulas, as defined in the plan documents, are utilized to calculate the retirement benefits for plan participants not covered by the cash balance formula. At the time of retirement, participants may elect, to the extent they are eligible for the various options, to receive annuity payments, a lump sum payment, or a combination of lump sum and annuity payments. In addition to our pension plans, we currently provide subsidized retiree medical and life insurance benefits (other postretirement benefits) to certain eligible participants. Generally, employees hired after December31, 1991, are not eligible for the subsidized retiree medical benefits, except for participants that were employees of Transco Energy Company on December31, 1995, and other miscellaneous defined participant groups. Certain of these other postretirement benefit plans, particularly the subsidized retiree medical benefit plans, provide for retiree contributions and contain other cost-sharing features such as deductibles, co-payments, and co-insurance. The accounting for these plans anticipates future cost-sharing that is consistent with our expressed intent to increase the retiree contribution level generally in line with health care cost increases. Benefit Obligations The following table presents the changes in benefit obligations and plan assets for pension benefits and other postretirement benefits for the years indicated. The annual measurement date for our plans is December31. Other Postretirement Pension Benefits Benefits 2009 2008 2009 2008 (Millions) Change in benefit obligation: Benefit obligation at beginning of year $ 1,035 $ 896 $ 273 $ 284 Service cost 32 23 2 2 Interest cost 62 60 16 18 Plan participants contributions 5 5 Benefits paid (59 ) (70 ) (24 ) (23 ) Medicare PartD subsidy 2 2 Plan amendment (18 ) (38 ) Actuarial loss 48 126 3 23 Benefit obligation at end of year 1,118 1,035 259 273 Change in plan assets: Fair value of plan assets at beginning of year 705 1,074 126 192 Actual return on plan assets 153 (360 ) 25 (62 ) Employer contributions 61 61 16 14 Plan participants contributions 5 5 Benefits paid (59 ) (70 ) (24 ) (23 ) Fair value of plan assets at end of year 860 705 148 126 Funded status underfunded $ (258 ) $ (330 ) $ (111 ) $ (147 ) Accumulated ben

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories [Abstract]
Inventories [Text Block]	Note8. Inventories December31, 2009 2008 (Millions) Natural gas liquids and olefins $ 70 $ 56 Natural gas in underground storage 47 97 Materials, supplies and other 105 107 $ 222 $ 260 Inventories are primarily determined using the average-cost method.

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Text Block]	Note9. Property, Plant and Equipment Estimated Depreciation Useful Life (a) Rates (a) December31, (Years) (%) 2009 2008 (Millions) Nonregulated: Oil and gas properties (b) $ 9,854 $ 8,507 Natural gas gathering and processing facilities 5 - 40 5,461 4,823 Construction in progress (c) 1,227 1,411 Other 2 - 45 816 765 Regulated: Natural gas transmission facilities .01 - 7.25 8,814 8,441 Construction in progress (c) 152 120 Other .01 - 50 1,301 1,293 Total property, plant and equipment, at cost 27,625 25,360 Accumulated depreciation, depletion amortization (8,981 ) (7,619 ) Property, plant and equipment net $ 18,644 $ 17,741 (a) Estimated useful life and depreciation rates are presented as of December31, 2009. Depreciation rates for regulated assets are prescribed by the FERC. (b) Oil and gas properties are depleted using the units-of-production method. See Note1 of Notes to Consolidated Financial Statements for more information. Balances include $704million at December31, 2009, and $571million at December31, 2008, of capitalized costs related to properties with unproved reserves not yet subject to depletion at Exploration Production. (c) Construction in progress balances not yet subject to depreciation and depletion. Depreciation, depletion and amortization expense for property, plant and equipment net was $1.5billion in 2009, $1.3billion in 2008, and $1.0billion in 2007. Our fourth-quarter depletion includes an unfavorable adjustment of $17million. This adjustment was primarily the result of new oil and gas accounting guidance (Accounting Standards Update 2010-03) that requires we value our reserves using an average price. This price is calculated using prices at the beginning of the month for the preceding 12months. This accounting guidance has been adopted on a prospective basis beginning in the fourth quarter of 2009. Regulated property, plant and equipment net includes $946million and $985million at December31, 2009 and 2008, respectively, related to amounts in excess of the original cost of the regulated facilities within Gas Pipeline as a result of our prior acquisitions. This amount is being amortized over 40years using the straight-line amortization method. Current FERC policy does not permit recovery through rates for amounts in excess of original cost of construction. Asset Retirement Obligations Our accrued obligations relate to producing wells, underground storage caverns, offshore platforms, fractionation facilities, gas gathering well connections and pipelines, and gas transmission facilities. At the end of the useful life of each respective asset, we are legally obligated to plug both producing wells and sto

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Accounts Payable and Accrued Liabilities [Abstract]
Accounts Payable and Accrued Liabilities [Text Block]	Note10. Accounts Payable and Accrued Liabilities Under our cash-management system, certain cash accounts reflected negative balances to the extent checks written have not been presented for payment. These negative balances represent obligations and have been reclassified to accounts payable. Accounts payable includes $44million of these negative balances at December31, 2009 and $95million at December31, 2008. Accrued Liabilities December31, 2009 2008 (Millions) Interest on debt $ 199 $ 179 Taxes other than income taxes 176 221 Employee costs 158 167 Income taxes 112 144 Other, including other loss contingencies 303 428 $ 948 $ 1,139

Debt, Leases and Banking Arrang

Debt, Leases and Banking Arrangements
	12 Months Ended Dec. 31, 2009 USD / shares
Debt, Leases and Banking Arrangements [Abstract]
Debt, Leases and Banking Arrangements [Text Block]	Note11. Debt, Leases and Banking Arrangements In February 2010, we completed a strategic restructuring that impacted our long-term debt and credit facilities. See Note19 for further discussion. Long-Term Debt Weighted- Average Interest December31, Rate(1) 2009(2) 2008(2) (Millions) Secured Capital lease obligations 9.5 % $ 3 $ 5 Unsecured 5.5% to 10.25%, payable through 2033 7.7 % 8,023 7,446 Adjustable rate, payable through 2012 1.2 % 250 250 Total long-term debt, including current portion 8,276 7,701 Long-term debt due within one year (17 ) (18 ) Long-term debt $ 8,259 $ 7,683 (1) At December31, 2009. (2) Certain of our debt agreements contain covenants that restrict or limit, among other things, our ability to create liens supporting indebtedness, sell assets, make certain distributions, repurchase equity, and incur additional debt. Revolving Credit and Letter of Credit Facilities (Credit Facilities) At December31, 2009, we have an unsecured, $1.5billion credit facility with a maturity date of May1, 2012. Northwest Pipeline and Transco each have access to $400million under the credit facility to the extent not otherwise utilized by us. We expect that our ability to borrow under the credit facility is reduced by $70million due to the bankruptcy of a participating bank. Interest is calculated based on a choice of two methods: a fluctuating rate equal to the lenders base rate plus an applicable margin, or a periodic fixed rate equal to LIBOR plus an applicable margin. We are required to pay a commitment fee (currently 0.125percent) based on the unused portion of the credit facility. The margins and commitment fee are generally based on the specific borrowers senior unsecured long-term debt ratings. Significant financial covenants under the credit agreement include the following: Our ratio of debt to capitalization must be no greater than 65percent. At December31, 2009, we are in compliance with this covenant. Ratio of debt to capitalization must be no greater than 55percent for Northwest Pipeline and Transco. At December31, 2009, they are in compliance with this covenant. We have unsecured credit facilities totaling $700million, which mature in October 2010. These credit facilities provide for both borrowings and issuing letters of credit but are expected to be used primarily for issuing letters of credit. We are required to pay the funding bank fixed fees at a weighted-average interest rate of 2.29percent on the total committed amount and interest on any borrowings at a fluctuating rate comprised of either a base rate or LIBOR. The funding bank, an affiliate of Citibank N.A., syndicated its associated credit risk through a private offering that allows for the resale of certain restricted securities to qualified institutional buyers. To facilitate the syndication of these cre

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' equity
Stockholders' Equity [Text Block]	Note12. Stockholders Equity In July 2007, our Board of Directors authorized the repurchase of up to $1billion of our common stock. During 2007, we purchased 16million shares for $526million (including transaction costs) at an average cost of $33.08 per share. During 2008, we purchased 13million shares of our common stock for $474million (including transaction costs) at an average cost of $36.76 per share. We completed our $1billion stock repurchase program in July 2008. Our overall average cost per share was $34.74. This stock repurchase is recorded in treasury stock on our Consolidated Balance Sheet. At December31, 2009, approximately $25million of our original $300million, 5.5percent junior subordinated convertible debentures, convertible into approximately 2million shares of common stock, remain outstanding. In 2009 and 2008, we converted $28million and $27million, respectively, of the debentures in exchange for 3million and 2million shares, respectively, of common stock. At December31, 2007, we held all of Williams Partners L.P.s seven million subordinated units outstanding. In February 2008, these subordinated units were converted into common units of Williams Partners L.P. due to the achievement of certain financial targets that resulted in the early termination of the subordination period. While these subordinated units were outstanding, other issuances of partnership units by Williams Partners L.P. had preferential rights and the proceeds from these issuances in excess of the book basis of assets acquired by Williams Partners L.P. were therefore reflected as noncontrolling interests in consolidated subsidiaries on our Consolidated Balance Sheet. Due to the conversion of the subordinated units, these original issuances of partnership units no longer have preferential rights and now represent the lowest level of equity securities issued by Williams Partners L.P. In accordance with our policy regarding the issuance of equity of a consolidated subsidiary, such issuances of nonpreferential equity are accounted for as capital transactions and no gain or loss is recognized. Therefore, as a result of the 2008 conversion, we recognized a decrease to noncontrolling interests in consolidated subsidiaries and a corresponding increase to capital in excess of par value of approximately $1.2billion. We maintain a Stockholder Rights Plan, as amended and restated on September21, 2004, and further amended May18, 2007, and October12, 2007, under which each outstanding share of our common stock has a right (as defined in the plan) attached. Under certain conditions, each right may be exercised to purchase, at an exercise price of $50 (subject to adjustment), one two-hundredth of a share of SeriesA Junior Participating Preferred Stock. The rights may be exercised only if an Acquiring Person acquires (or obtains the right to acquire) 15percent or more of our common stock or commences an offer for 15percent or more of our common stock. The plan contains a mechanism to divest of shares of common stock if such stock in excess of 14.9percent was acquired inadvertently or without knowledge of the terms of the rights. The rights, which until

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation [Abstract]
Share-Based Compensation [Text Block]	Note13. Stock-Based Compensation Plan Information On May17, 2007, our stockholders approved a plan that provides common-stock-based awards to both employees and nonmanagement directors. The plan generally contains terms and provisions consistent with the previous plans. The plan permits the granting of various types of awards including, but not limited to, restricted stock units and stock options and reserves 19million shares for issuance. At December31, 2009, 30million shares of our common stock were reserved for issuance pursuant to existing and future stock awards, of which 11million shares were available for future grants. At December31, 2008, 33million shares of our common stock were reserved for issuance pursuant to existing and future stock awards, of which 16million shares were available for future grants. Additionally, on May17, 2007, our stockholders approved an Employee Stock Purchase Plan (ESPP) which authorizes up to 2million shares of our common stock to be available for sale under the plan. The ESPP enables eligible participants to purchase our common stock through payroll deductions not exceeding an annual amount of $15,000 per participant. The ESPP provides for offering periods during which shares may be purchased and continues until the earliest of: (1)the Board of Directors terminates the ESPP, (2)the sale of all shares available under the ESPP, or (3)the tenth anniversary of the date the Plan was approved by the stockholders. The first offering under the ESPP commenced on October1, 2007 and ended on December31, 2007. Subsequent offering periods are from January through June and from July through December. Generally, all employees are eligible to participate in the ESPP, with the exception of executives and international employees. The number of shares eligible for an employee to purchase during each offering period is limited to 750shares. The purchase price of the stock is 85percent of the lower closing price of either the first or the last day of the offering period. The ESPP requires a one-year holding period before the stock can be sold. Employees purchased 370 thousand shares at an average price of $13.01 per share during 2009. Approximately 1.3million and 1.7million shares were available for purchase under the ESPP at December31, 2009 and 2008, respectively. Stock Options Stock options are valued at the date of award, which does not precede the approval date, and compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period. The purchase price per share for stock options may not be less than the market price of the underlying stock on the date of grant. Stock options generally become exercisable over a three-year period from the date of grant and can be subject to accelerated vesting if certain future stock prices or specific financial performance targets are achieved. Stock options generally expire ten years after the grant. The following summary reflects stock option activity and related information for the year ending December31, 2009. Weighted- Average Aggregate

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements [Text Block]	Note14. Fair Value Measurements Fair value is the amount received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. Fair value is a market-based measurement considered from the perspective of a market participant. We use market data or assumptions that we believe market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation. These inputs can be readily observable, market corroborated, or unobservable. We apply both market and income approaches for recurring fair value measurements using the best available information while utilizing valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy prioritizes the inputs used to measure fair value, giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level1 measurement) and the lowest priority to unobservable inputs (Level3 measurement). We classify fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows: Level1 Quoted prices for identical assets or liabilities in active markets that we have the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level1 primarily consists of financial instruments that are exchange traded. Level2 Inputs are other than quoted prices in active markets included in Level1, that are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. Our Level2 primarily consists of over-the-counter (OTC) instruments such as forwards, swaps, and options. These options, which hedge future sales of production from our Exploration Production segment, are structured as costless collars and are financially settled. They are valued using an industry standard Black-Scholes option pricing model. Prior to the third quarter of 2009, these options were included in Level3 because a significant input to the model, implied volatility by location, was considered unobservable. However, due to the increased transparency, we now consider this input to be observable and have included these options in Level2. Level3 Inputs that are not observable for which there is little, if any, market activity for the asset or liability being measured. These inputs reflect managements best estimate of the assumptions market participants would use in determining fair value. Our Level3 consists of instruments valued using industry standard pricing models and other valuation methods that utilize unobservable pricing inputs that are significant to the overall fair value. In valuing certain contracts, the inputs used to measure fair value may fall into different levels of

Financial Instruments, Derivati

Financial Instruments, Derivatives, Guarantees and Concentration of Credit Risk
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments, Derivatives, Guarantees and Concentration of Credit Risk Abstract
Financial Instruments, Derivatives, Guarantees and Concentration of Credit Risk [Text Block]	Note15. Financial Instruments, Derivatives, Guarantees and Concentration of Credit Risk Financial Instruments Fair-value methods We use the following methods and assumptions in estimating our fair-value disclosures for financial instruments: Cash and cash equivalents and restricted cash:The carrying amounts reported in the Consolidated Balance Sheet approximate fair value due to the short-term maturity of these instruments. Current and noncurrent restricted cash is included in other current assets and deferred charges and other assets and deferred charges, respectively, in the Consolidated Balance Sheet. ARO TrustInvestments:Our Transcontinental Gas Pipe Line Company, LLC (Transco) subsidiary deposits a portion of its collected rates, pursuant to its 2008 rate case settlement, into an external trust specifically designated to fund future asset retirement obligations (ARO Trust). The ARO Trust invests in a portfolio of mutual funds that are reported at fair value in other assets and deferred charges in the Consolidated Balance Sheet and are classified as available-for-sale. However, both realized and unrealized gains and losses are ultimately recorded as regulatory assets or liabilities. Long-term debt:The fair value of our publicly traded long-term debt is determined using indicative year-end traded bond market prices. Private debt is valued based on market rates and the prices of similar securities with similar terms and credit ratings. At December31, 2009 and 2008, approximately 97percent of our long-term debt was publicly traded. Guarantees:The guarantees represented in the following table consist primarily of guarantees we have provided in the event of nonpayment by our previously owned communications subsidiary, Williams Communications Group (WilTel), on certain lease performance obligations. To estimate the fair value of the guarantees, the estimated default rate is determined by obtaining the average cumulative issuer-weighted corporate default rate for each guarantee based on the credit rating of WilTels current owner and the term of the underlying obligation. The default rates are published by Moodys Investors Service. Guarantees, if recognized, are included in accrued liabilities in the Consolidated Balance Sheet. Other:Includes notes and other noncurrent receivables, margin deposits, customer margin deposits payable, cost-based investments and auction rate securities. Energy derivatives:Energy derivatives include futures, forwards, swaps, and options. These are carried at fair value in the Consolidated Balance Sheet. See Note14 for discussion of valuation of our energy derivatives. Carrying amounts and fair values of our financial instruments December31, 2009 2008 Carrying Carrying Asset (Liability) Amount Fair Value Amount Fair Value (Millions) Cash and cash equivalents $ 1,867 $ 1,867 $ 1,438 $ 1,438 Restricted cash (current and noncurrent) 28 28 37 37 ARO TrustInvestments 22 22 13 13 Long-term debt, including current portion(a) (8,273

Contingent Liabilities and Comm

Contingent Liabilities and Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Contingent Liabilities and Commitments [Abstract]
Contingent Liabilities and Commitments [Text Block]	Note16. Contingent Liabilities and Commitments Issues Resulting from California Energy Crisis Our former power business was engaged in power marketing in various geographic areas, including California. Prices charged for power by us and other traders and generators in California and other western states in 2000 and 2001 were challenged in various proceedings, including those before the U.S.Federal Energy Regulatory Commission (FERC). These challenges included refund proceedings, summer 2002 90-day contracts, investigations of alleged market manipulation including withholding, gas indices and other gaming of the market, new long-term power sales to the State of California that were subsequently challenged and civil litigation relating to certain of these issues. We have entered into settlements with the State of California (State Settlement), major California utilities (Utilities Settlement), and others that substantially resolved each of these issues with these parties. As a result of a June 2008 U.S.Supreme Court decision, certain contracts that we entered into during 2000 and 2001may be subject to partial refunds depending on the results of further proceedings at the FERC. These contracts, under which we sold electricity, totaled approximately $89million in revenue. While we are not a party to the cases involved in the U.S.Supreme Court decision, the buyer of electricity from us is a party to the cases and claims that we must refund to the buyer any loss it suffers due to the FERCs reconsideration of the contract terms at issue in the decision. The FERC has directed the parties to provide additional information on certain issues remanded by the U.S.Supreme Court, but delayed the submission of this information to permit the parties to explore possible settlements of the contractual disputes. The parties to the remanded proceeding have engaged the FERCs Dispute Resolution Service to assist with settlement discussions. Certain other issues also remain open at the FERC and for other nonsettling parties. Refund proceedings Although we entered into the State Settlement and Utilities Settlement, which resolved a significant portion of the refund issues among the settling parties, we continue to have potential refund exposure to nonsettling parties, such as the counterparty to the contracts described above and various California end users that did not participate in the Utilities Settlement. As a part of the Utilities Settlement, we funded escrow accounts that will be used towards satisfying any ultimate refund determinations in favor of the nonsettling parties including interest on refund amounts that we might owe to settling and nonsettling parties. We are also owed interest from counterparties in the California market during the refund period for which we have recorded a receivable totaling $24million at December31, 2009. Collection of the interest and the payment of interest on refund amounts from the escrow accounts are subject to the conclusion of this proceeding. Therefore, we continue to participate in the FERC refund case and related proceedings. Challenges to virtually every aspect of the refund proceedings,

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009 USD / shares
Accumlated Other Comprehensive Income (Loss) [Abstract]
Accumulated Other Comprehensive Loss [Text Block]	Note17. Accumulated Other Comprehensive Loss The table below presents changes in the components of accumulated other comprehensive loss. Income (Loss) Other Postretirement Pension Benefits Benefits Foreign Prior Net Prior Net Cash Flow Currency Service Actuarial Service Actuarial Hedges Translation Cost Gain (Loss) Cost Gain (Loss) Total (Millions) Balance at December31, 2006 $ 20 $ 76 $ (4 ) $ (150 ) $ (4 ) $ 2 $ (60 ) 2007 Change: Pre-income tax amount 201 53 68 15 337 Income tax provision (77 ) (26 ) (6 ) (109 ) Net reclassification into earnings of derivative instrument gains (net of a $187million income tax provision) (303 )* (303 ) Amortization included in net periodic benefit expense 19 2 21 Income tax provision on amortization (8 ) (1 ) (9 ) (179 ) 53 53 1 9 (63 ) Allocation of other comprehensive loss to noncontrolling interests 2 2 Balance at December31, 2007 (157 ) 129 (4 ) (97 ) (3 ) 11 (121 ) 2008 Change: Pre-income tax amount 714 (76 ) (565 ) 16 (15 ) 74 Income tax (provision) benefit (270 ) 213 (8 ) 6 (59 ) Net reclassification into earnings of derivative instrument losses (net of a $7million income tax benefit) 11 11 Amortization included in net periodic benefit expense 1 13 1 15 Income tax provision on amortization (5 ) (5 ) 455 (76 ) 1 (344 ) 9 (9 ) 36 Allocation of other comprehensive income (loss) to noncontrolling interests (2 ) 7 5 Balance at December31, 2008 296 53 (3 ) (434 ) 6 2 (80 ) 2009 Change: Pre-income tax amount 262 83 44 7 (1 ) 395 Income tax (provision) benefit (99 ) (17 ) 1 (115 ) Net reclassification into earnings of derivative instrument gains (net of a $234million incom

Segment Disclosures

Segment Disclosures
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Disclosures [Abstract]
Segment Disclosures [Text Block]	Note18. Segment Disclosures Our reportable segments are strategic business units that offer different products and services. The segments are managed separately because each segment requires different technology, marketing strategies and industry knowledge. Our master limited partnerships, Williams Partners L.P. and Williams Pipeline Partners L.P., are consolidated within our Midstream and Gas Pipeline segments, respectively. (See Note1.) Other primarily consists of corporate operations. In February 2010, we completed our strategic restructuring that will change our reportable segments in first-quarter 2010. (See Note19 of Notes to Consolidated Financial Statements.) Performance Measurement We currently evaluate performance based on segment profit (loss) from operations, which includes segment revenues from external and internal customers, segment costs and expenses, equity earnings (losses) and income (loss) from investments. The accounting policies of the segments are the same as those described in Note1. Intersegment sales are generally accounted for at current market prices as if the sales were to unaffiliated third parties. The primary types of costs and operating expenses by segment can be generally summarized as follows: Exploration Production depletion, depreciation and amortization, lease and facility operating expenses and operating taxes; Gas Pipeline depreciation and operation and maintenance expenses; Midstream Gas Liquids commodity purchases (primarily for NGL, crude and olefin marketing, shrink, feedstock and fuel), depreciation, and operation and maintenance expenses; Gas Marketing Services commodity purchases primarily in support of commodity marketing and risk management activities. Energy commodity hedging by our business units may be done through intercompany derivatives with our Gas Marketing segment which, in turn, enters into offsetting derivative contracts with unrelated third parties. Gas Marketing bears the counterparty performance risks associated with the unrelated third parties in these transactions. Additionally, Exploration Production may enter into transactions directly with third parties under their credit agreement. (See Note11.) Exploration Production bears the counterparty performance risks associated with the unrelated third parties in these transactions. External revenues of our Exploration Production segment are presented net of transportation expenses and royalties due third parties on intersegment sales. In some periods, transportation expenses and royalties due third parties on intersegment sales may exceed other external revenues. The following geographic area data includes revenues from external customers based on product shipment origin and long-lived assets based upon physical location. United States Other Total (Millions) Revenues from external customers: 2009 $ 8,065 $ 190 $ 8,255 2008 11,629 261 11,890 2007 9,966 273 10,239 Long-lived assets: 2009 $ 19,247 $ 410 $ 19,657

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note19. Subsequent Events Strategic Restructuring On February17, 2010, we completed a strategic restructuring that involved contributing certain of our wholly and partially owned subsidiaries to WPZ in exchange for cash and WPZ common units. The contributed businesses are currently reported within our Gas Pipeline and Midstream segments. The aggregate consideration received from WPZ consisted of the following: The issuance to us of 203million WPZ ClassC units, which are identical to common units, except for a prorated initial distribution; An increase in our general-partners capital account to maintain our 2percent general-partner interest and the issuance of WPZ general-partner units equal to 2/98th of the number of WPZ common units issued; Proceeds from the sale of $3.5billion aggregate principal amount of senior unsecured notes of WPZ to qualified institutional buyers, net of all expenses incurred by WPZ in connection with these transactions. Utilizing the cash consideration received from WPZ, we retired $3billion of debt and paid $574million in related premiums as well as other transaction costs. Long-term Debt and Credit Facilities The WPZ $3.5billion senior unsecured notes issued, at face, include: (Millions) 3.80%Senior Notes due 2015 $ 750 5.25%Senior Notes due 2020 1,500 6.30%Senior Notes due 2040 1,250 Total $ 3,500 In connection with the issuance of the $3.5billion unsecured notes previously discussed, WPZ entered into registration rights agreements with the initial purchasers of the notes. WPZ is obligated to file a registration statement for an offer to exchange the notes for a new issue of substantially identical notes registered under the Securities Act of 1933, as amended, within 180days from closing and use its commercially reasonable efforts to cause the registration statement to be declared effective within 270days after closing and to consummate the exchange offers within 30 business days after such effective date. WPZ may also be required to provide a shelf registration statement to cover resales of the notes under certain circumstances. If WPZ fails to fulfill these obligations, additional interest will accrue on the affected securities. The rate of additional interest will be 0.25percent per annum on the principal amount of the affected securities for the first 90-day period immediately following the occurrence of default, increasing by an additional 0.25percent per annum with respect to each subsequent 90-day period thereafter, up to a maximum amount for all such defaults of 0.5percent annually. Following the cure of any registration defaults the accrual of additional interest will cease. The $3billion of aggregate principal corporate debt retired includes: (Millions) 7.125%Notes due 2011 $ 429 8.125%Notes due 2012 602 7.625%Notes due 2019 668 8.75%Senior Notes due 2020 586 7.875%Notes due 2021 179 7.70%Debentures due 2027 98 7.50%Debentures due 2031 163 7.75%Notes due 2031 111 8.75%Notes due 2032 164

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract]
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	SCHEDULEII VALUATION AND QUALIFYING ACCOUNTS ADDITIONS Charged (Credited) Beginning To Cost and Ending Balance Expenses Other Deductions Balance (Millions) Year ended December31, 2009: Allowance for doubtful accounts accounts and notes receivable(a) $ 29 $ 4 $ $ 11 (d) $ 22 Deferred tax asset valuation allowance(a) 3 1 4 Price-risk management credit reserves assets(a) 6 (3 )(e) (3 )(f) Price-risk management credit reserves liabilities(b) (15 ) 12 (e) (3 ) Year ended December31, 2008: Allowance for doubtful accounts accounts and notes receivable(a) 16 15 2 (d) 29 Deferred tax asset valuation allowance(a) 50 (14 ) 33 (d) 3 Price-risk management credit reserves assets(a) 1 1 (e) 4 (f) 6 Price-risk management credit reserves liabilities(b) (16 )(e) 1 (f) (15 ) Year ended December31, 2007: Allowance for doubtful accounts accounts and notes receivable(a) 13 3 16 Deferred tax asset valuation allowance(a) 36 14 50 Price-risk management credit reserves assets(a) 7 (6 )(e) 1 Processing plant major maintenance accrual 8 8 (c) (a) Deducted from related assets. (b) Deducted from related liabilities. (c) Effective January1, 2007, we adopted FASB Staff Position (FSP) No.AUG AIR-1, Accounting for Planned Major Maintenance Activities. As a result, we recognized as other income an $8million reversal of an accrual for major maintenance on our Geismar ethane cracker. We did not apply the FSP retrospectively because the impact to our 2007 earnings, as well as the impact to prior periods, is not material. We have adopted the deferral method of accounting for these costs going forward. (d) Represents balances written off, reclassifications, and recoveries. (e) Included in revenues. (f) Included in accumulated other comprehensive loss.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 19, 2010	Jun. 30, 2009
Entity Information [Line Items]
Entity Registrant Name	WILLIAMS COMPANIES INC
Entity Central Index Key	0000107263
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$9,096,736,726
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		583,598,142