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, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles | $ | 943 | $ | 2,144 | $ | 1,400 | $ | 533 | $ | 737 | ||||||||||
Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees | (49 | ) | (61 | ) | (60 | ) | (99 | ) | (66 | ) | ||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principles and equity earnings | 894 | 2,083 | 1,340 | 434 | 671 | |||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees (a) | 691 | 658 | 688 | 671 | 656 | |||||||||||||||
Rental expense representative of interest factor | 15 | 21 | 22 | 16 | 19 | |||||||||||||||
Total fixed charges | 706 | 679 | 710 | 687 | 675 | |||||||||||||||
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees | 33 | 53 | 48 | 113 | 108 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (76 | ) | (59 | ) | (32 | ) | (17 | ) | (7 | ) | ||||||||||
Total earnings as adjusted | $ | 1,557 | $ | 2,756 | $ | 2,066 | $ | 1,217 | $ | 1,447 | ||||||||||
Fixed charges | $ | 706 | $ | 679 | $ | 710 | $ | 687 | $ | 675 | ||||||||||
Ratio of earnings to fixed charges | 2.21 | 4.06 | 2.91 | 1.77 | 2.14 | |||||||||||||||
(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 Income. |