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, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (938 | ) | $ | 953 | $ | 2,292 | $ | 1,402 | $ | 525 | |||||||||
Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees | (56 | ) | (49 | ) | (61 | ) | (60 | ) | (99 | ) | ||||||||||
Income (loss) from continuing operations before income taxes and equity earnings | (994 | ) | 904 | 2,231 | 1,342 | 426 | ||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees (a) | 667 | 691 | 658 | 688 | 671 | |||||||||||||||
Rental expense representative of interest factor | 13 | 15 | 20 | 20 | 14 | |||||||||||||||
Total fixed charges | 680 | 706 | 678 | 708 | 685 | |||||||||||||||
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees | 58 | 33 | 53 | 48 | 113 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (51 | ) | (76 | ) | (59 | ) | (32 | ) | (17 | ) | ||||||||||
Total earnings as adjusted | $ | (307 | ) | $ | 1,567 | $ | 2,903 | $ | 2,066 | $ | 1,207 | |||||||||
Fixed charges | $ | 680 | $ | 706 | $ | 678 | $ | 708 | $ | 685 | ||||||||||
Ratio of earnings to fixed charges | (b | ) | 2.22 | 4.28 | 2.92 | 1.76 |
(a) | Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included inprovision (benefit) for income taxesin our Consolidated Statement of Operations. | |
(b) | Earnings are inadequate to cover fixed charges by $987 million. |