PE/SGC 05/09/2011 8-K



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549



FORM 8-K
CURRENT REPORT




Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

  

  

  

  

Date of Report

 

(Date of earliest event reported):

May 9, 2011




Commission
File Number

 

Name of Registrant, State of
Incorporation, Address and
Telephone Number

 

IRS Employer
Identification
Number

1-40

 

PACIFIC ENTERPRISES
(A California Corporation)
101 Ash Street
San Diego, California 92101
(619) 696-2020

 

94-0743670

 

 

 

 

 

1-1402

 

SOUTHERN CALIFORNIA GAS COMPANY
(A California Corporation)
555 West Fifth Street
Los Angeles, California 90013
(213) 244-1200

 

95-1240705




  

 

(Former name or former address, if changed since last report.)

  

  



 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 









FORM 8-K



Item 2.02   Results of Operations and Financial Condition.


The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Pacific Enterprises or Southern California Gas Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On May 9, 2011, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated earnings of $258 million, or $1.07 per diluted share of common stock, for the first quarter of 2011. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.


Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statement of Operations Data by Business Unit for the three months ended March 31, 2011 and 2010. A copy of such information is attached as Exhibit 99.2.


The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding Pacific Enterprises' and Southern California Gas Company's results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

May 9, 2011 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Statement of Operations Data by Business Unit for the three months ended March 31, 2011 and 2010.










  

SIGNATURES

  

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.  

  


PACIFIC ENTERPRISES
(Registrant)





Date: May 9, 2011

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: May 9, 2011

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  








Exhibit 99.1




NEWS RELEASE



Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 340-8875

 

dkline@sempra.com

 

www.sempra.com

 

 

Financial Contacts:

Scott Tomayko/Victor Vilaplana

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com



SEMPRA ENERGY REPORTS HIGHER

FIRST-QUARTER 2011 EARNINGS


·

Earnings Per Share Rise 34 Percent, Excluding 2010 Litigation Charge


·

Sempra Generation Receives Approval on 20-Year Contract for Arizona Solar Plant


SAN DIEGO, May 9, 2011 – Sempra Energy (NYSE: SRE) today reported first-quarter 2011 earnings of $258 million, or $1.07 per diluted share, up from 2010 earnings of $106 million, or $0.42 per diluted share.

First-quarter 2010 earnings included an after-tax charge of $96 million, or $0.38 per diluted share, related to a litigation settlement.  Excluding the 2010 litigation charge, Sempra Energy’s first-quarter 2011 earnings per share increased approximately 34 percent from last year.

 “After refocusing our strategy on regulated utilities and contracted energy infrastructure, we are pleased that first-quarter results were strong across all of our business segments,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.



SUBSIDIARY OPERATING RESULTS


San Diego Gas & Electric

First-quarter earnings for San Diego Gas & Electric (SDG&E) increased to $89 million in 2011 from $83 million in 2010.

SDG&E has signed six renewable energy contracts this year, boosting its renewable portfolio capacity by more than 700 megawatts (MW), and increasing its total amount of renewable resources under contract to more than 29 percent of forecasted retail sales by 2015.   The contracts are subject to regulatory approval.

  

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in the first quarter 2011 were $68 million, compared with $65 million in last year’s first quarter.  


Sempra Generation

Sempra Generation’s first-quarter earnings were $44 million in 2011, compared with a loss of $51 million in 2010.  First-quarter 2010 results included an $84 million after-tax charge related to a litigation settlement.  The improvement in the first quarter 2011 was due to lower operating and maintenance costs.  

Last month, Sempra Generation entered into a 20-year contract to sell SDG&E wind power from the 156-MW first phase of the Energía Sierra Juárez wind project under development in Baja California, Mexico.  The contract is subject to regulatory approval.

Also in April, the California Public Utilities Commission approved Pacific Gas & Electric’s 20-year power-purchase agreement with Sempra Generation for solar power from the first 150-MW phase of Sempra Generation’s Mesquite Solar project in Arizona.  


 

Sempra Pipelines & Storage

Earnings for Sempra Pipelines & Storage in the first quarter 2011 rose to $54 million from $38 million in the first quarter 2010, due primarily to additional earnings from the Mexican pipeline assets acquired in April 2010 and higher operating results from its utilities in Chile and Peru.

Last month, Sempra Pipelines & Storage completed the acquisition of controlling ownership in Chilquinta Energía and Luz del Sur, two South American utilities that Sempra Pipelines & Storage previously co-owned with a partner.  The purchase price was $875 million.  Sempra Pipelines & Storage now owns 100 percent of Chilquinta Energía and 76 percent of Luz del Sur, with the remaining shares of Luz del Sur held by institutional investors and the general public.


Sempra LNG

Sempra LNG earned $33 million in the first quarter 2011, compared with $32 million in the first quarter 2010.


INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company.  Access is available by logging onto the website at www.sempra.com.  For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 3265782.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2010 revenues of $9 billion.  The Sempra Energy companies’ nearly 16,000 employees serve about 26 million consumers worldwide.

###









This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” ”will,” “would,” ”could,” “should,” “potential,” “target,” “depends,” or similar expressions, or discussions of strategies, plans or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com.


Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Energy Trading are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not regulated by the California Public Utilities Commission.








SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

Three months ended March 31,

(Dollars in millions, except per share amounts)

2011 

 

2010 

 

(unaudited)

REVENUES

 

 

 

Sempra Utilities

$ 1,881

 

$ 1,912

Sempra Global and parent

553

 

622

    Total revenues

2,434

 

2,534

EXPENSES AND OTHER INCOME

 

 

 

Sempra Utilities:

 

 

 

    Cost of natural gas

(609)

 

(758)

    Cost of electric fuel and purchased power

(171)

 

(148)

Sempra Global and parent:

 

 

 

    Cost of natural gas, electric fuel and purchased power

(263)

 

(338)

    Other cost of sales

(23)

 

(25)

Litigation expense

(7)

 

(168)

Other operation and maintenance

(632)

 

(576)

Depreciation and amortization

(231)

 

(210)

Franchise fees and other taxes

(95)

 

(90)

Equity earnings, before income tax

1

 

15

Other income, net

43

 

8

Interest income

3

 

4

Interest expense

(108)

 

(109)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

342

 

139

Income tax expense

(109)

 

(58)

Equity earnings, net of income tax

31

 

19

Net income

264

 

100

(Earnings) losses attributable to noncontrolling interests

(4)

 

8

Preferred dividends of subsidiaries

(2)

 

(2)

Earnings

$ 258

 

$ 106

 

 

 

 

Basic earnings per common share

$ 1.07

 

$ 0.43

Weighted-average number of shares outstanding, basic (thousands)

240,128

 

246,083

 

 

 

 

Diluted earnings per common share

$ 1.07

 

$ 0.42

Weighted-average number of shares outstanding, diluted (thousands)

241,903

 

250,373

Dividends declared per share of common stock

$ 0.48

 

$ 0.39








SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

(Dollars in millions)

2011 

 

2010(1)

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$ 1,219

 

$ 912

 

Restricted cash

318

 

131

 

Accounts receivable

1,058

 

1,032

 

Due from unconsolidated affiliates

17

 

34

 

Income taxes receivable

261

 

248

 

Deferred income taxes

36

 

75

 

Inventories

176

 

258

 

Regulatory assets

73

 

90

 

Fixed-price contracts and other derivatives

97

 

81

 

Settlement receivable related to wildfire litigation

-

 

300

 

Other

171

 

192

 

 

 

Total current assets

3,426

 

3,353

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

-

 

27

 

Regulatory assets arising from pension and other postretirement benefit obligations

885

 

869

 

Regulatory assets arising from wildfire litigation costs

348

 

364

 

Other regulatory assets

932

 

934

 

Nuclear decommissioning trusts

796

 

769

 

Investment in RBS Sempra Commodities LLP

779

 

787

 

Other investments

2,163

 

2,164

 

Goodwill and other intangible assets

537

 

540

 

Sundry

630

 

600

 

 

 

Total investments and other assets

7,070

 

7,054

Property, plant and equipment, net

20,200

 

19,876

Total assets

$ 30,696

 

$ 30,283

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

$ 566

 

$ 158

 

Accounts payable

709

 

864

 

Due to unconsolidated affiliates

37

 

36

 

Dividends and interest payable

251

 

188

 

Accrued compensation and benefits

211

 

311

 

Regulatory balancing accounts, net

379

 

241

 

Current portion of long-term debt

89

 

349

 

Fixed-price contracts and other derivatives

91

 

106

 

Customer deposits

131

 

129

 

Reserve for wildfire litigation

489

 

639

 

Other

701

 

765

 

 

 

Total current liabilities

3,654

 

3,786

Long-term debt

9,174

 

8,980

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Customer advances for construction

132

 

154

 

Pension and other postretirement benefit obligations, net of plan assets

1,114

 

1,105

 

Deferred income taxes

1,633

 

1,561

 

Deferred investment tax credits

49

 

50

 

Regulatory liabilities arising from removal obligations

2,671

 

2,630

 

Asset retirement obligations

1,469

 

1,449

 

Other regulatory liabilities

130

 

138

 

Fixed-price contracts and other derivatives

285

 

290

 

Deferred credits and other

903

 

823

 

 

 

Total deferred credits and other liabilities

8,386

 

8,200

Contingently redeemable preferred stock of subsidiary

79

 

79

Equity:

 

 

 

 

Total Sempra Energy shareholders' equity

9,186

 

9,027

 

Preferred stock of subsidiaries

100

 

100

 

Other noncontrolling interests

117

 

111

 

 

 

Total equity

9,403

 

9,238

Total liabilities and equity

$ 30,696

 

$ 30,283

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.








SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Three months ended

March 31,

(Dollars in millions)

 

2011 

 

2010 

 

 

 

(unaudited)

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

$ 264

 

$ 100

Adjustments to reconcile net income to net cash provided

 

 

 

 

  by operating activities:

 

 

 

 

 

Depreciation and amortization

 

231

 

210

 

Deferred income taxes and investment tax credits

 

88

 

61

 

Equity earnings

 

(32)

 

(34)

 

Fixed-price contracts and other derivatives

 

(9)

 

-

 

Other

 

(13)

 

7

Net change in other working capital components

 

286

 

534

Changes in other assets

 

(5)

 

18

Changes in other liabilities

 

(5)

 

(8)

 

Net cash provided by operating activities

 

805

 

888

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

(607)

 

(446)

Expenditures for investments

 

(4)

 

(74)

Distributions from investments

 

21

 

24

Purchases of nuclear decommissioning and other trust assets

 

(45)

 

(44)

Proceeds from sales by nuclear decommissioning and other trusts

 

46

 

46

Decrease in restricted cash

 

160

 

14

Increase in restricted cash

 

(320)

 

(23)

Other

 

(7)

 

7

 

Net cash used in investing activities

 

(756)

 

(496)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(94)

 

(86)

Preferred dividends paid by subsidiaries

 

(2)

 

(2)

Issuances of common stock

 

15

 

14

Repurchases of common stock

 

(18)

 

(2)

Issuances of debt (maturities greater than 90 days)

 

803

 

12

Payments on debt (maturities greater than 90 days)

 

(260)

 

(507)

(Decrease) increase in short-term debt, net

 

(192)

 

294

Other

 

6

 

(3)

 

Net cash provided by (used in) financing activities

 

258

 

(280)

 

 

 

 

 

 

Increase in cash and cash equivalents

 

307

 

112

Cash and cash equivalents, January 1

 

912

 

110

Cash and cash equivalents, March 31

 

$ 1,219

 

$ 222








SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

(Dollars in millions)

2011 

 

2010 

 

 

 

(unaudited)

Earnings (Losses)

 

 

 

San Diego Gas & Electric

$ 89

 

$ 83

Southern California Gas

68

 

65

Sempra Generation

44

 

(51)

Sempra Pipelines & Storage

54

 

38

Sempra LNG

33

 

32

Parent & Other

(30)

 

(61)

Earnings

$ 258

 

$ 106

 

 

 

 

 

 

 

 

 

Three months ended March 31,

(Dollars in millions)

2011 

 

2010 

 

 

 

(unaudited)

Capital Expenditures and Investments

 

 

 

San Diego Gas & Electric

$ 348

 

$ 290

Southern California Gas

168

 

114

Sempra Generation

52

 

4

Sempra Pipelines & Storage

40

 

110

Sempra LNG

3

 

2

Consolidated Capital Expenditures and Investments

$ 611

 

$ 520








SEMPRA ENERGY

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

SEMPRA UTILITIES

 

2011 

 

2010 

Revenues (Dollars in millions)

 

 

 

 

 

SDG&E (excludes intercompany sales)

$

838

$

741

 

SoCalGas (excludes intercompany sales)

$

1,043

$

1,171

 

 

 

 

 

 

 

Gas Sales (bcf)

 

138

 

132

Transportation (bcf)

 

123

 

117

Total Deliveries (bcf)

 

261

 

249

Total Gas Customers (Thousands)

 

6,639

 

6,614

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

 

4,145

 

4,055

Direct Access (Millions of kWhs)

 

786

 

720

Total Deliveries (Millions of kWhs)

 

4,931

 

4,775

Total Electric Customers (Thousands)

 

1,388

 

1,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

Power Sold (Millions of kWhs)

 

4,123

 

4,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

 

 

 

 

(Represents 100% of the distribution operations of these subsidiaries, although subsidiaries in Argentina, Chile and Peru are not 100% owned by Sempra Energy. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method).

Natural Gas Sales (bcf)

 

 

 

 

 

Argentina

 

70

 

64

 

Mexico

 

6

 

6

 

Mobile Gas

 

10

 

10

Natural Gas Customers (Thousands)

 

 

 

 

 

Argentina

 

1,766

 

1,717

 

Mexico

 

89

 

91

 

Mobile Gas

 

92

 

92

Electric Sales (Millions of kWhs)

 

 

 

 

 

Peru

 

1,594

 

1,479

 

Chile

 

680

 

600

Electric Customers (Thousands)

 

 

 

 

 

Peru

 

899

 

870

 

Chile

 

598

 

582









Exhibit 99.2



         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ 840

 

$ 1,056

 

$ 269

 

$ 109

 

$ 186

 

$ (26)

 

 

$ 2,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

(571)

 

(856)

 

(187)

 

(69)

 

(119)

 

9

 

 

(1,793)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

(3)

 

-

 

(1)

 

-

 

(2)

 

(1)

 

 

(7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

(103)

 

(81)

 

(19)

 

(13)

 

(13)

 

(2)

 

 

(231)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

-

 

-

 

1

 

9

 

-

 

(9)

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

16

 

3

 

-

 

-

 

2

 

22

 

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

179

 

122

 

63

 

36

 

54

 

(7)

 

 

447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

(37)

 

(17)

 

3

 

(6)

 

(10)

 

(40)

 

 

(107)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

(49)

 

(37)

 

(22)

 

(7)

 

(11)

 

17

 

 

(109)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

31

 

-

 

-

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

 

(4)

 

-

 

-

 

-

 

-

 

-

 

 

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

$ 89

 

$ 68

 

$ 44

 

$ 54

 

$ 33

 

$ (30)

 

 

$ 258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ 742

 

$ 1,182

 

$ 318

 

$ 110

 

$ 205

 

$ (23)

 

 

$ 2,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

(505)

 

(973)

 

(253)

 

(78)

 

(136)

 

10

 

 

(1,935)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

(7)

 

-

 

(139)

 

-

 

(1)

 

(21)

 

 

(168)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

(92)

 

(75)

 

(15)

 

(11)

 

(12)

 

(5)

 

 

(210)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Before Income Tax

 

-

 

-

 

-

 

10

 

-

 

5

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

-

 

4

 

2

 

(1)

 

-

 

3

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

138

 

138

 

(87)

 

30

 

56

 

(31)

 

 

244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 

(32)

 

(17)

 

(2)

 

(5)

 

(12)

 

(39)

 

 

(107)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

(31)

 

(56)

 

38

 

(6)

 

(12)

 

9

 

 

(58)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

19

 

-

 

-

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

 

8

 

-

 

-

 

-

 

-

 

-

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

$ 83

 

$ 65

 

$ (51)

 

$ 38

 

$ 32

 

$ (61)

 

 

$ 106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.