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EXCEL - IDEA: XBRL DOCUMENT - Williams Partners L.P.Financial_Report.xls
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Exhibit 12
Williams Partners L.P.
Computation of Ratio of Earnings to Fixed Charges
                                                 
                                               
                                            Nine months ended  
    Years Ended December 31,     September 30,  
    2005     2006     2007     2008     2009     2010  
                    (Dollars in millions)                  
Earnings:
                                               
Income from continuing operations before income taxes and cumulative effect of change in accounting principles
  $ 698     $ 940     $ 1,318     $ 1,156     $ 1,040     $ 816  
Less:
                                               
Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
    (27 )     (35 )     (51 )     (55 )     (55 )     (48 )
 
                                   
Income from continuing operations before income taxes and cumulative effect of change in accounting principles and equity earnings
    671       905       1,267       1,101       985       768  
Add:
                                               
Fixed charges:
                                               
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees
    124       146       226       252       260       285  
Rental expense representative of interest factor
    12       11       13       11       8       5  
 
                                   
Total fixed charges
    136       157       239       263       268       290  
Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
    54       64       48       64       60       58  
Less:
                                               
Capitalized Interest
    (5 )     (11 )     (25 )     (43 )     (58 )     (26 )
 
                                   
Total earnings as adjusted
  $ 856     $ 1,115     $ 1,529     $ 1,385     $ 1,255     $ 1,090  
 
                                   
Fixed charges
  $ 136     $ 157     $ 239     $ 263     $ 268     $ 290  
 
                                   
Ratio of earnings to fixed charges
    6.29       7.10       6.40       5.27       4.68       3.76  
 
                                   
     As described in Note 1 of Notes to Supplemental Consolidated Financial Statements, because the entities acquired in the Dropdown and Piceance Acquisition were affiliates of Williams at the time of acquisition, these transactions are accounted for as combinations of entities under common control, similar to a pooling of interests, whereby the assets and liabilities of the acquired entities are combined with ours at their historical amounts. As a result, income from continuing operations before income taxes shown above for each of the three years ended December 31, 2009 and the nine months ended September 30, 2010, includes net income applicable to pre-partnership operations, which is fully allocated to our general partner. Amounts for each of the years ended December 31, 2006 and 2005 have not been retrospectively adjusted for the Piceance Acquisition, as the effect of such an adjustment would not be material and the detailed information necessary to calculate the exact amount of such an adjustment is not readily available.