Williams Companies WMB Derivative Notional Amount Terminated

At December 31, 2023, Williams held interest rate derivative agreements with notional amounts totaling $1.15 billion. During 2024, Williams entered into additional agreements totaling $950 million of notional value and terminated agreements totaling $1.75 billion of notional value coinciding with issuances of long-term debt (see Note 13 – Debt and Banking Arrangements). At December 31, 2024, Williams holds interest rate derivative agreements with notional amounts totaling $350 million. The fair value of these derivatives is determined using discounted cash flows considering forward interest rates and the terms of the agreements, corroborated by counterparty valuations, and is classified as a Level 2 measurement. These derivatives are designated as cash flow hedges to reduce interest rate exposure on future corporate debt issuances. Gains and losses on these derivative agreements are reflected as a component of AOCI and, after the termination of the agreements, are amortized to earnings over the term of the related debt as a component of Interest expense. These interest rate derivative agreements are reported in Derivative assets and Derivative liabilities.