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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):

November 4, 2014


  

  

SAN DIEGO GAS & ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)

  

  

CALIFORNIA

 

1-03779

 

95-1184800

(State or other jurisdiction of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

  

  

8326 CENTURY PARK COURT, SAN DIEGO, CALIFORNIA

 

92123

(Address of principal executive offices)

 

(Zip Code)

  

  


Registrant's telephone number, including area code

(619) 696-2000

  

  

 

(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 San Diego Gas & Electric Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On November 4, 2014, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated earnings of $348 million, or $1.39 per diluted share of common stock, for the third quarter of 2014. 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 Segment for the three months and nine months ended September 30, 2014 and 2013. 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 San Diego Gas & Electric Company’s results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

November 4, 2014 Sempra Energy News Release (including tables).


          99.2

Sempra Energy’s Statement of Operations Data by Segment for the three months and nine months ended September 30, 2014 and 2013.







SIGNATURE

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.  

  

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)

  

  


Date: November 4, 2014

By:  /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  







Exhibit 99.1

Exhibit 99.1



NEWS RELEASE





Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 340-8875

 

www.sempra.com

 

 

Financial Contact:

Kendall Helm

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com




SEMPRA ENERGY EARNINGS RISE

IN THIRD QUARTER


·

Company Expects 2014 Results Near High End of Earnings-Per-Share Guidance Range of $4.25 to $4.55


·

Cameron LNG Joint Venture Breaks Ground on Louisiana Liquefaction-Export Project


SAN DIEGO, Nov. 4, 2014 – Sempra Energy (NYSE: SRE) today reported increased third-quarter 2014 earnings of $348 million, or $1.39 per diluted share, up from $296 million, or $1.19 per diluted share, in the third quarter 2013.

 For the first nine months of 2014, Sempra Energy’s earnings were $864 million, or $3.45 per diluted share, up from $719 million, or $2.89 per diluted share, in the first nine months of 2013.  Nine-month 2013 results included retroactive impacts of $77 million for the 2012 operations of San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas), based on the final California Public Utilities Commission (CPUC) General Rate Case decision issued in May 2013.  Offsetting the retroactive earnings from the General Rate Case was a $119 million charge in the second quarter 2013 related to Southern California Edison’s decision to permanently retire the San Onofre Nuclear Generating Station (SONGS).  

“Based on solid financial results across all of our businesses in the third quarter and through the first nine months of the year, we are confident we will be near the high end of our 2014 earnings-per-share guidance range,” said Debra L. Reed, chairman and CEO of Sempra Energy.  “We continue to accomplish new milestones in our growth plan.  Last month, the Cameron LNG joint venture broke ground on its liquefaction-export project, which should be operational in 2018.  Our Mexican unit, IEnova, completed the first phase of the Sonora pipeline and is nearing completion of the first phase of the Los Ramones pipeline.  In addition, we will be bidding later this year on several additional pipeline projects under Mexico’s energy privatization plan.”  


CALIFORNIA UTILITIES

San Diego Gas & Electric

Earnings for SDG&E in the third quarter 2014 were $157 million, compared with $129 million in the third quarter of last year, due primarily to higher CPUC base operating margin and favorable resolution of prior-years’ income tax items.   

For the first nine months of 2014, SDG&E’s earnings were $379 million, compared with $285 million in the first nine months of 2013.  Excluding charges related to SONGS in both years and 2013 retroactive earnings from the General Rate Case related to 2012 operations, SDG&E’s adjusted earnings for the first nine months of 2014 were $388 million, compared with adjusted earnings of $352 million in the first nine months of 2013.


Southern California Gas Co.

Third-quarter earnings for SoCalGas were $98 million in 2014, compared with $102 million in 2013.

For the nine-month period, SoCalGas’ earnings were $256 million in 2014, compared with $266 million in 2013.  Excluding retroactive earnings from the General Rate Case related to 2012 operations, SoCalGas’ adjusted earnings in the first nine months of 2013 were $241 million.


SEMPRA INTERNATIONAL

Sempra South American Utilities

In the third quarter 2014, Sempra South American Utilities had earnings of $32 million, compared with $39 million in last year’s third quarter, due primarily to higher taxes.

For the first nine months of 2014, earnings for Sempra South American Utilities were $109 million, compared with $110 million for the first nine months of 2013.


Sempra Mexico

Third-quarter earnings for Sempra Mexico were $63 million in 2014, compared with $39 million in 2013.  The increase in quarterly earnings was due primarily to the gain on the sale of 50 percent of the first phase of the Energía Sierra Juárez wind-power project, as well as regulatory earnings from projects in construction.

For the first nine months of 2014, Sempra Mexico had earnings of $139 million compared with $96 million during the same period last year.  


SEMPRA U.S. GAS & POWER

Sempra Renewables

Earnings for Sempra Renewables in the third quarter 2014 were $17 million compared with $37 million in the third quarter 2013, due primarily to $24 million in gains recorded in last year’s third quarter associated with the contribution of assets to 50-50 solar joint ventures with Consolidated Edison Development.  

During the first nine months of 2014, earnings for Sempra Renewables were $63 million, up from $56 million in the same period last year.

Last month, Sempra U.S. Gas & Power put into service Broken Bow II, a 75-megawatt wind farm in Nebraska.  The power from the facility is being sold to the Nebraska Public Power District under a 25-year contract.


Sempra Natural Gas

Sempra Natural Gas had third-quarter earnings of $26 million in 2014, compared with losses of $7 million in 2013, due primarily to a Louisiana income-tax benefit.  

For the first nine months of 2014, Sempra Natural Gas had earnings of $39 million, compared with $55 million in the first nine months of 2013.  Earnings in the first nine months of 2013 included a $44 million gain on the sale of half the Mesquite Power plant.


EARNINGS GUIDANCE

Sempra Energy today said that, based on results to date and the outlook for the fourth quarter, the company expects to achieve earnings near the high end of its 2014 earnings-per-share guidance range of $4.25 to $4.55.


NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures include adjusted earnings for the nine-month periods in 2014 and 2013 for SDG&E and 2013 for SoCalGas.  Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the third-quarter financial tables.


INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST 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 9612952.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2013 revenues of more than $10.5 billion.  The Sempra Energy companies' 17,000 employees serve more than 31 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,” “plans,” “estimates,”  “projects,” “forecasts,” “contemplates,” “intends,” “depends,” “should,” “could,” “would,” “will,” “confident,” “may,” “potential,” “target,” “pursue,” “goals,” “outlook,” “maintain” or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives 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 and the timing of actions, including issuances of permits to construct and licenses for operation, by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, Atomic Safety and Licensing Board, California Energy Commission, U.S. Environmental Protection Agency, California Air Resources Board and other regulatory, governmental and environmental bodies in the United States and other countries in which we operate; capital markets conditions, including the availability of credit and the liquidity of our investments; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; delays in the timing of costs incurred and the timing of regulatory agency authorization to recover such costs in rates from customers; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody’s A-rated utility bond yields, on our California utilities’ cost of capital; 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, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures and the decommissioning of San Onofre Nuclear Generating Station (SONGS); weather conditions, natural disasters, catastrophic accidents, and conservation efforts; cybersecurity threats to the energy grid and the confidentiality of our proprietary information and the personal information of our customers, terrorist attacks that threaten system operations and critical infrastructure, and wars; risks inherent with nuclear power facilities and radioactive materials storage, including the catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the nuclear facility due to an extended outage and facility closure, and increased regulatory oversight; risks that partners or counterparties will be unable or unwilling to fulfill their contractual commitments; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company’s electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through San Diego Gas & Electric Company’s electric transmission and distribution system; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements, due to insufficient market interest, unattractive pricing or other factors; 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.

Investors should not rely unduly on any forward-looking statement. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not regulated by the California Public Utilities Commission. Sempra International’s underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power’s underlying entities include Sempra Renewables and Sempra Natural Gas.








SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

September 30,

 

September 30,

(Dollars in millions, except per share amounts)

2014

 

2013

 

2014

 

2013

 

                     (unaudited)

REVENUES

 

 

 

 

 

 

 

Utilities

$        2,463

 

$        2,223

 

$        7,318

 

$        6,889

Energy-related businesses

352

 

328

 

970

 

963

    Total revenues

2,815

 

2,551

 

8,288

 

7,852

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

Utilities:

 

 

 

 

 

 

 

    Cost of natural gas

(293)

 

(261)

 

(1,308)

 

(1,182)

    Cost of electric fuel and purchased power

(680)

 

(537)

 

(1,761)

 

(1,461)

Energy-related businesses:

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(163)

 

(120)

 

(427)

 

(325)

    Other cost of sales

(42)

 

(47)

 

(122)

 

(144)

Operation and maintenance

(726)

 

(698)

 

(2,131)

 

(2,162)

Depreciation and amortization

(292)

 

(286)

 

(866)

 

(828)

Franchise fees and other taxes

(104)

 

(96)

 

(301)

 

(283)

Plant closure adjustment (loss)

 

 

13

 

(200)

Gain on sale of equity interests and assets

19

 

39

 

48

 

113

Equity earnings, before income tax

22

 

3

 

62

 

21

Other income, net

29

 

16

 

118

 

79

Interest income

6

 

5

 

15

 

15

Interest expense

(144)

 

(137)

 

(418)

 

(413)

Income before income taxes and equity earnings

 

 

 

 

 

 

 

    of certain unconsolidated subsidiaries

447

 

432

 

1,210

 

1,082

Income tax expense

(71)

 

(117)

 

(291)

 

(327)

Equity earnings, net of income tax

7

 

8

 

22

 

13

Net income

383

 

323

 

941

 

768

Earnings attributable to noncontrolling interests

(35)

 

(22)

 

(76)

 

(41)

Call premium on preferred stock of subsidiary

 

(3)

 

 

(3)

Preferred dividends of subsidiaries

 

(2)

 

(1)

 

(5)

Earnings

$          348

 

$          296

 

$           864

 

$           719

 

 

 

 

 

 

 

 

Basic earnings per common share

$         1.41

 

$         1.21

 

$          3.52

 

$          2.95

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

246,137

 

244,140

 

245,703

 

243,682

 

 

 

 

 

 

 

 

Diluted earnings per common share

$         1.39

 

$         1.19

 

$          3.45

 

$          2.89

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

250,771

 

249,259

 

250,278

 

248,723

 

 

 

 

 

 

 

 

Dividends declared per share of common stock

$         0.66

 

$         0.63

 

$          1.98

 

$          1.89

 

 

 

 

 

 

 

 









SEMPRA ENERGY

Table A (Continued)

 

 

 

 

 

 

 

 

 

Sempra Energy Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS EXCLUDING

PLANT CLOSURE LOSS IN 2013 AND 2014 AND RETROACTIVE IMPACTS OF 2012 GENERAL RATE CASE (GRC) IN 2013 (Unaudited)

 

 

 

 

 

 

 

 

 

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share exclude 1) in the nine months ended September 30, 2014, a $9 million charge to adjust the total loss from plant closure resulting from the early retirement of San Onofre Nuclear Generating Station (SONGS) (in addition to the amount recorded in the second quarter of 2013) based upon a proposed settlement agreement filed with the California Public Utilities Commission (CPUC) in April 2014; and 2) in the nine months ended September 30, 2013, a $119 million loss from plant closure and $77 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2014 to 2013 and to future periods, and also as a base for projection of future compounded annual growth rate. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

(Dollars in millions, except per share amounts)

 

2014

 

2013

 

2014

 

2013

Sempra Energy GAAP Earnings

 

$            348

 

$            296

 

$            864

 

$            719

Add: Plant closure loss

 

 

 

9

 

119

Less: Retroactive impact of 2012 GRC for full-year 2012

 

 

 

 

(77)

Sempra Energy Adjusted Earnings

 

$            348

 

$            296

 

$            873

 

$            761

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

Sempra Energy GAAP Earnings

 

$           1.39

 

$           1.19

 

$           3.45

 

$           2.89

Sempra Energy Adjusted Earnings

 

$           1.39

 

$           1.19

 

$           3.49

 

$           3.06

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

250,771

 

249,259

 

250,278

 

248,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas)

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SDG&E AND SOCALGAS GAAP EARNINGS TO ADJUSTED EARNINGS EXCLUDING PLANT CLOSURE LOSS

AT SDG&E IN 2013 AND 2014 AND RETROACTIVE IMPACTS OF 2012 GRC AT BOTH SDG&E AND SOCALGAS IN 2013 (Unaudited)

 

 

 

 

 

 

 

 

 

SDG&E Adjusted Earnings exclude 1) in the nine months ended September 30, 2014, a $9 million charge to adjust the total loss from plant closure resulting from the early retirement of SONGS (in addition to the amount recorded in the second quarter of 2013) based upon a proposed settlement agreement filed with the CPUC in April 2014; and 2) in the nine months ended September 30, 2013, the $119 million loss from plant closure and $52 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures. SoCalGas Adjusted Earnings for the nine months ended September 30, 2013 exclude a $25 million retroactive impact of the 2012 GRC for the full-year 2012, which is a non-GAAP financial measure. Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of SDG&E's and SoCalGas' business operations from 2014 to 2013 and to future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to SDG&E Earnings and SoCalGas Earnings, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

(Dollars in millions)

 

2014

 

2013

 

2014

 

2013

SDG&E GAAP Earnings

 

$            157

 

$            129

 

$            379

 

$            285

Add: Plant closure loss

 

 

 

9

 

119

Less: Retroactive impact of 2012 GRC for full-year 2012

 

 

 

 

(52)

SDG&E Adjusted Earnings

 

$            157

 

$            129

 

$            388

 

$            352

 

 

 

 

 

 

 

 

 

SoCalGas GAAP Earnings

 

$              98

 

$            102

 

$            256

 

$            266

Less: Retroactive impact of 2012 GRC for full-year 2012

 

 

 

 

(25)

SoCalGas Adjusted Earnings

 

$              98

 

$            102

 

$            256

 

$            241

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Dollars in millions)

2014

 

2013(1)

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$               667

 

$               904

 

Restricted cash

22

 

24

 

Accounts receivable, net

1,264

 

1,522

 

Due from unconsolidated affiliates

3

 

4

 

Income taxes receivable

91

 

85

 

Deferred income taxes

452

 

301

 

Inventories

472

 

287

 

Regulatory balancing accounts – undercollected

821

 

556

 

Other regulatory assets

59

 

38

 

Fixed-price contracts and other derivatives

83

 

106

 

Asset held for sale, power plant

293

 

 

Other

187

 

170

 

 

 

Total current assets

4,414

 

3,997

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

10

 

25

 

Due from unconsolidated affiliate

133

 

14

 

Regulatory assets arising from pension and other postretirement

 

 

 

 

    benefit obligations

435

 

435

 

Other regulatory assets

2,048

 

2,113

 

Nuclear decommissioning trusts

1,087

 

1,034

 

Investments

1,797

 

1,575

 

Goodwill

951

 

1,024

 

Other intangible assets

418

 

426

 

Sundry

1,280

 

1,141

 

 

 

Total investments and other assets

8,159

 

7,787

Property, plant and equipment, net

26,409

 

25,460

Total assets

$           38,982

 

$           37,244

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

$            1,309

 

$               545

 

Accounts payable

1,282

 

1,215

 

Dividends and interest payable

327

 

271

 

Accrued compensation and benefits

345

 

376

 

Regulatory balancing accounts – overcollected

 

91

 

Current portion of long-term debt

188

 

1,147

 

Fixed-price contracts and other derivatives

49

 

55

 

Customer deposits

149

 

154

 

Other

643

 

515

 

 

 

Total current liabilities

4,292

 

4,369

Long-term debt

12,437

 

11,253

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Customer advances for construction

144

 

155

 

Pension and other postretirement benefit obligations, net of plan assets

659

 

667

 

Deferred income taxes

3,113

 

2,804

 

Deferred investment tax credits

38

 

42

 

Regulatory liabilities arising from removal obligations

2,725

 

2,623

 

Asset retirement obligations

2,043

 

2,084

 

Fixed-price contracts and other derivatives

220

 

228

 

Deferred credits and other

1,154

 

1,169

 

 

 

Total deferred credits and other liabilities

10,096

 

9,772

Equity:

 

 

 

 

Total Sempra Energy shareholders’ equity

11,333

 

11,008

 

Preferred stock of subsidiary

20

 

20

 

Other noncontrolling interests

804

 

822

 

 

 

Total equity

12,157

 

11,850

Total liabilities and equity

$           38,982

 

$           37,244

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.






SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Nine months ended
September 30,

(Dollars in millions)

 

2014

 

2013

 

 

 

(unaudited)

Cash Flows from Operating Activities

 

 

 

 

Net income

 $

941

 $

768

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

866

 

828

 

Deferred income taxes and investment tax credits

 

131

 

327

 

Gain on sale of equity interests and assets

 

(48)

 

(113)

 

Plant closure (adjustment) loss

 

(13)

 

200

 

Equity earnings

 

(84)

 

(34)

 

Fixed-price contracts and other derivatives

 

(19)

 

(25)

 

Other

 

32

 

23

Net change in other working capital components

 

(215)

 

(454)

Changes in other assets

 

28

 

(203)

Changes in other liabilities

 

42

 

13

 

Net cash provided by operating activities

 

1,661

 

1,330

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

Expenditures for property, plant and equipment

 

(2,320)

 

(1,785)

Expenditures for investments and acquisition of businesses, net of cash acquired

 

(192)

 

(21)

Proceeds from sale of equity interests and assets, net of cash sold

 

92

 

566

Proceeds from U.S. Treasury grants

 

 

238

Distributions from investments

 

15

 

141

Purchases of nuclear decommissioning and other trust assets

 

(505)

 

(514)

Proceeds from sales by nuclear decommissioning and other trusts

 

498

 

510

Decrease in restricted cash

 

156

 

285

Increase in restricted cash

 

(139)

 

(311)

Advances to unconsolidated affiliates

 

(81)

 

Other

 

10

 

(10)

 

Net cash used in investing activities

 

(2,466)

 

(901)

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

Common dividends paid

 

(450)

 

(452)

Preferred dividends paid by subsidiaries

 

(1)

 

(5)

Issuances of common stock

 

43

 

57

Repurchases of common stock

 

(38)

 

(45)

Issuances of debt (maturities greater than 90 days)

 

3,063

 

1,404

Payments on debt (maturities greater than 90 days)

 

(1,845)

 

(1,444)

Proceeds from sale of noncontrolling interests, net of $25 in offering costs

 

 

574

(Decrease) increase in short-term debt, net

 

(111)

 

81

Net distributions to noncontrolling interests

 

(84)

 

(28)

Other

 

(5)

 

15

 

Net cash provided by financing activities

 

572

 

157

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(4)

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(237)

 

586

Cash and cash equivalents, January 1

 

904

 

475

Cash and cash equivalents, September 30

 $

667

 $

1,061

 

 

 

 

 

 






SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in millions)

2014

 

2013

 

2014

 

2013

 

 

 

 

                        (unaudited)

 

Earnings (Losses)

 

 

 

 

 

 

 

 

California Utilities:

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$              157

 

$               129

 

$              379

 

$             285

 

Southern California Gas

98

 

102

 

256

 

266

 

Sempra International:

 

 

 

 

 

 

 

 

Sempra South American Utilities

32

 

39

 

109

 

110

 

Sempra Mexico

63

 

39

 

139

 

96

 

Sempra U.S. Gas & Power:

 

 

 

 

 

 

 

 

Sempra Renewables

17

 

37

 

63

 

56

 

Sempra Natural Gas

26

 

(7)

 

39

 

55

 

Parent and other

(45)

 

(43)

 

(121)

 

(149)

 

Earnings

$              348

 

$               296

 

$              864

 

$             719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in millions)

2014

 

2013

 

2014

 

2013

 

 

 

 

                        (unaudited)

 

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

California Utilities:

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$              247

 

$               233

 

$              790

 

$             679

 

Southern California Gas

264

 

181

 

764

 

521

 

Sempra International:

 

 

 

 

 

 

 

 

Sempra South American Utilities

36

 

54

 

126

 

120

 

Sempra Mexico

73

 

119

 

262

 

280

 

Sempra U.S. Gas & Power:

 

 

 

 

 

 

 

 

Sempra Renewables

83

 

69

 

359

 

135

 

Sempra Natural Gas

125

 

14

 

192

 

69

 

Parent and other

11

 

1

 

19

 

2

 

Consolidated Capital Expenditures and Investments

$              839

 

$               671

 

$           2,512

 

$          1,806

 

 

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

UTILITIES

 

2014

 

2013

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

California Utilities - SDG&E and SoCalGas

 

 

 

 

 

 

 

 

 

 

Gas Sales (Bcf)(1)

 

59

 

62

 

 

239

 

276

 

Transportation (Bcf)(1)

 

192

 

197

 

 

512

 

527

 

Total Deliveries (Bcf)(1)

 

251

 

259

 

 

751

 

803

 

Total Gas Customers (Thousands)

 

 

 

 

 

 

6,727

 

6,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)(1)

 

4,644

 

4,489

 

 

12,368

 

12,305

 

Direct Access (Millions of kWhs)

 

1,057

 

1,087

 

 

2,761

 

2,681

 

Total Deliveries (Millions of kWhs)(1)

 

5,701

 

5,576

 

 

15,129

 

14,986

 

Total Electric Customers (Thousands)

 

 

 

 

 

 

1,415

 

1,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Utilities

 

 

 

 

 

 

 

 

 

 

Natural Gas Sales (Bcf)

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

7

 

6

 

 

18

 

18

 

 

Mobile Gas(2)

 

9

 

8

 

 

29

 

29

 

 

Willmut Gas

 

 

 

 

2

 

2

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

 

 

 

 

 

104

 

97

 

 

Mobile Gas

 

 

 

 

 

 

86

 

87

 

 

Willmut Gas

 

 

 

 

 

 

19

 

19

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

 

Peru

 

1,790

 

1,733

 

 

5,458

 

5,221

 

 

Chile

 

696

 

677

 

 

2,192

 

2,127

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

 

1,021

 

986

 

 

Chile

 

 

 

 

 

 

654

 

636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ENERGY-RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra International

 

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

 

Sempra Mexico

 

1,149

 

1,067

 

 

3,081

 

2,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra U.S. Gas & Power

 

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

 

Sempra Renewables(3)

540

 

461

 

 

1,819

 

1,842

 

 

Sempra Natural Gas(4)

 

1,435

 

1,140

 

 

3,870

 

3,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes intercompany sales.

(2)

Includes transportation.

 

(3)

Includes 50% of total power sold related to wind projects in which Sempra Energy has a 50% ownership. These subsidiaries are not consolidated within Sempra Energy, and the related investments are accounted for under the equity method.

(4)

Sempra Natural Gas sold one 625-megawatt (MW) block of its 1,250-MW Mesquite Power natural gas-fired power plant in February 2013.

 

 

 

Exhibit 99.2

Exhibit 99.2



 

         SEMPRA ENERGY

 

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra
South American Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$        1,233

 

$       855

 

$            379

 

$           234

 

$            10

 

$         252

 

$               (148)

 

 

$     2,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(823)

 

(593)

 

(305)

 

(156)

 

(13)

 

(255)

 

137

 

 

(2,008)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(134)

 

(109)

 

(14)

 

(16)

 

(1)

 

(17)

 

(1)

 

 

(292)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of equity interest

 

-

 

-

 

-

 

19

 

-

 

-

 

-

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, before income tax

 

-

 

-

 

-

 

-

 

7

 

15

 

-

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

9

 

6

 

10

 

5

 

-

 

1

 

(2)

 

 

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (1)

 

285

 

159

 

70

 

86

 

3

 

(4)

 

(14)

 

 

585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (2)

 

(51)

 

(17)

 

(3)

 

(4)

 

(2)

 

(1)

 

(60)

 

 

(138)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(65)

 

(44)

 

(26)

 

(13)

 

16

 

31

 

30

 

 

(71)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(2)

 

9

 

-

 

-

 

-

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to noncontrolling interests

 

(12)

 

-

 

(7)

 

(15)

 

-

 

-

 

(1)

 

 

(35)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          157

 

$         98

 

$              32

 

$            63

 

$            17

 

$           26

 

$                 (45)

 

 

$        348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra
South American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$        1,063

 

$       807

 

$            364

 

$           188

 

$            25

 

$         212

 

$               (108)

 

 

$     2,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(674)

 

(552)

 

(286)

 

(117)

 

(10)

 

(211)

 

91

 

 

(1,759)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(126)

 

(100)

 

(14)

 

(16)

 

(5)

 

(20)

 

(5)

 

 

(286)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of equity interests and assets

 

-

 

-

 

-

 

-

 

40

 

-

 

(1)

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, before income tax

 

-

 

-

 

-

 

-

 

(10)

 

13

 

-

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

10

 

2

 

3

 

1

 

4

 

3

 

(7)

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (1)

 

273

 

157

 

67

 

56

 

44

 

(3)

 

(30)

 

 

564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest (expense) income (2)

 

(55)

 

(17)

 

(5)

 

-

 

2

 

(8)

 

(54)

 

 

(137)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(84)

 

(38)

 

(16)

 

(16)

 

(9)

 

4

 

42

 

 

(117)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, net of income tax

 

-

 

-

 

-

 

8

 

-

 

-

 

-

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to noncontrolling interests

 

(5)

 

-

 

(7)

 

(9)

 

-

 

-

 

(1)

 

 

(22)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          129

 

$       102

 

$              39

 

$            39

 

$            37

 

$            (7)

 

$                 (43)

 

 

$        296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' 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)

Includes interest income and interest expense. In 2013, also includes call premium on preferred stock of subsidiary and preferred dividends of subsidiaries.









 

         SEMPRA ENERGY

 

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra
South American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$       3,283

 

$    2,857

 

$         1,147

 

$           621

 

$            25

 

$         748

 

$               (393)

 

 

$     8,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(2,162)

 

(2,132)

 

(916)

 

(425)

 

(36)

 

(723)

 

344

 

 

(6,050)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(395)

 

(321)

 

(41)

 

(47)

 

(4)

 

(50)

 

(8)

 

 

(866)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant closure adjustment

 

13

(1)

-

 

-

 

-

 

-

 

-

 

-

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of equity interests and assets

 

-

 

-

 

2

 

19

 

27

 

-

 

-

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, before income tax

 

-

 

-

 

-

 

-

 

18

 

44

 

-

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

29

 

13

 

15

 

27

 

1

 

2

 

31

 

 

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (2)

 

768

 

417

 

207

 

195

 

31

 

21

 

(26)

 

 

1,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (3)

 

(152)

 

(51)

 

(14)

 

(11)

 

(3)

 

(3)

 

(170)

 

 

(404)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(217)

 

(110)

 

(59)

 

(37)

 

35

 

22

 

75

 

 

(291)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(4)

 

26

 

-

 

-

 

-

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to noncontrolling interests

 

(20)

 

-

 

(21)

 

(34)

 

-

 

(1)

 

-

 

 

(76)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          379

 

$       256

 

$            109

 

$           139

 

$            63

 

$          39

 

$               (121)

 

 

$        864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra
South American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$       3,066

 

$    2,694

 

$         1,119

 

$           519

 

$            76

 

$         683

 

$               (305)

 

 

$     7,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(1,943)

 

(1,997)

 

(877)

 

(342)

 

(37)

 

(623)

 

262

 

 

(5,557)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(367)

 

(280)

 

(44)

 

(47)

 

(20)

 

(60)

 

(10)

 

 

(828)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant closure loss

 

(200)

 

-

 

-

 

-

 

-

 

-

 

-

 

 

(200)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of equity interests and assets

 

-

 

-

 

-

 

-

 

40

 

74

 

(1)

 

 

113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, before income tax

 

-

 

-

 

-

 

-

 

(12)

 

33

 

-

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

30

 

9

 

6

 

5

 

9

 

7

 

13

 

 

79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (2)

 

586

 

426

 

204

 

135

 

56

 

114

 

(41)

 

 

1,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (3)

 

(153)

 

(53)

 

(9)

 

(4)

 

(8)

 

(23)

 

(156)

 

 

(406)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(147)

 

(107)

 

(50)

 

(44)

 

8

 

(35)

 

48

 

 

(327)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(14)

 

27

 

-

 

-

 

-

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to noncontrolling interests

 

(1)

 

-

 

(21)

 

(18)

 

-

 

(1)

 

-

 

 

(41)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          285

 

$       266

 

$            110

 

$            96

 

$            56

 

$          55

 

$               (149)

 

 

$        719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

After taxes, including a $17 million charge to reduce certain tax regulatory assets attributed to SONGS, the adjustment to loss from plant closure is a $9 million charge to earnings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

Includes interest income, interest expense and preferred dividends of subsidiaries. In 2013, also includes call premium on preferred stock of subsidiary.