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EXHIBIT 12
THE WILLIAMS COMPANIES, INC. AND SUBSIDIARIES
COMPUTATIONS OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(Dollars in millions)
<TABLE>
<CAPTION>
Nine Months
Ended Years Ended December 31,
September 30, ----------------------------------------------------------------
2000 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
Earnings:
Income from continuing operations
before income taxes, extraordinary
gain (loss) and cumulative effect of
change in accounting principle $ 968.6 $ 323.0 $ 248.6 $ 677.5 $ 779.2 $ 509.6
Add:
Interest expense--net 552.9 598.2 484.5 440.6 410.5 321.8
Rental expense representative
of interest factor 138.9 123.0 49.1 39.5 32.8 32.5
Preferred dividends of
subsidiaries -- -- -- -- -- 3.7
Interest accrued--50% owned
company 6.5 7.5 6.2 -- 1.3 30.7
Minority interest in income (loss)
and preferred returns of
consolidated subsidiaries (30.9) (7.2) (9.6) 18.2 1.4 12.3
Equity losses in less than 50%
owned companies 25.3 40.2 14.8 -- -- --
Other (2.7) (4.8) 7.6 3.2 6.3 8.0
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Total earnings as adjusted
plus fixed charges $ 1,658.6 $ 1,079.9 $ 801.2 $ 1,179.0 $ 1,231.5 $ 918.6
========== ========== ========== ========== ========== ==========
Fixed charges and combined fixed
charges and preferred stock
dividend requirements:
Interest expense--net $ 552.9 $ 598.2 $ 484.5 $ 440.6 $ 410.5 $ 321.8
Capitalized interest 155.2 69.8 30.6 23.3 8.2 16.2
Rental expense representative
of interest factor 138.9 123.0 49.1 39.5 32.8 32.5
Pretax effect of dividends on
preferred stock and other preferred
returns of subsidiaries 33.4 26.7 -- -- -- 5.8
Interest accrued--50% owned company 6.5 7.5 6.2 -- 1.3 30.7
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Total fixed charges 886.9 825.2 570.4 503.4 452.8 407.0
Pretax effect of dividends on
preferred stock of the Company -- 5.1 12.4 16.1 16.2 18.0
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Combined fixed charges and
preferred stock dividend
requirements $ 886.9 $ 830.3 $ 582.8 $ 519.5 $ 469.0 $ 425.0
========== ========== ========== ========== ========== ==========
Ratio of earnings to fixed charges 1.87 1.31 1.40 2.34 2.72 2.26
========== ========== ========== ========== ========== ==========
Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements 1.87 1.30 1.37 2.27 2.63 2.16
========== ========== ========== ========== ========== ==========
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