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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):

February 25, 2010




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 February 25, 2010, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated earnings of $288 million, or $1.16 per diluted share of common stock, for the fourth quarter of 2009. 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 and the years ended December 31, 2009 and 2008. 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

February 25, 2010 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Statement of Operations Data by Business Unit for the three months and the years ended December 31, 2009 and 2008.











  

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: February 25, 2010

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: February 25, 2010

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) 866-2066

 

www.sempra.com

 

 

 

 

Financial Contact:

Glen Donovan

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com

 

 









SEMPRA ENERGY EARNINGS

INCREASE IN 2009



SAN DIEGO, Feb. 25, 2010 – Sempra Energy (NYSE: SRE) today reported 2009 earnings of $1.12 billion, or $4.52 per diluted share, compared with 2008 earnings of $1.11 billion, or $4.43 per diluted share.

Sempra Energy’s 2009 earnings per diluted share increased 8 percent over the prior year, excluding the impact of an asset write-off of $64 million, or $0.26 per diluted share, at Sempra Pipelines & Storage in the second quarter.

In the fourth quarter 2009, Sempra Energy’s earnings were $288 million, or $1.16 per diluted share, compared with earnings of $319 million, or $1.30 per diluted share in the same quarter of 2008.

“We posted solid financial results in 2009,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “Our five-year build-out of natural gas infrastructure projects sets the foundation for the next decade of growth.  Together with our California utilities, these projects should enable us to benefit from stable cash flows well into the future.”



SUBSIDIARY OPERATING RESULTS


San Diego Gas & Electric

Earnings for San Diego Gas & Electric (SDG&E) rose to $344 million in 2009 from $339 million in 2008.  SDG&E’s fourth-quarter 2009 earnings were $67 million, compared with $81 million in the prior-year’s fourth quarter, due primarily to lower regulatory incentive awards in 2009.    


Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in 2009 increased to $273 million from $244 million in 2008.  In the fourth quarter 2009, SoCalGas earned $75 million, compared with $54 million in the prior-year’s fourth quarter.  The fourth-quarter improvement was due primarily to higher authorized operating margins and lower litigation expenses in 2009.


RBS Sempra Commodities

Sempra Energy generated earnings of $345 million in 2009 from its commodity operations, on par with 2008 earnings.  Sempra Energy formed its commodities joint venture, RBS Sempra Commodities, with The Royal Bank of Scotland (RBS) at the beginning of the second quarter of 2008.  Fourth quarter 2009 earnings were $71 million, compared with $164 million in the fourth quarter 2008, due primarily to reduced margins in natural gas and other product segments.

On Feb. 16, Sempra Energy and RBS agreed to sell certain assets of RBS Sempra Commodities to J.P. Morgan Chase & Co. for an expected $1.7 billion.  Sempra Energy’s share of the proceeds is expected to be approximately $940 million.  The assets being sold include the joint venture’s global oil and metals businesses, along with its European power and natural gas businesses.  The transaction, which is subject to regulatory approvals, is expected to be completed in the second quarter 2010.


In November 2009, RBS announced its intention to divest its share of the joint venture, following a directive from the European Commission to dispose of certain assets.  


Sempra Generation

Sempra Generation’s 2009 earnings were $162 million, compared with $222 million in 2008.  In the fourth quarter 2009, Sempra Generation’s earnings were $43 million, compared with $60 million in the fourth quarter 2008, primarily due to higher foreign-tax benefits in 2008.

In December 2009, Sempra Generation and BP Wind Energy began commercial operations of a 200-megawatt wind farm in Indiana.  The two companies are equal partners in the project.   

Also in December 2009, the California Public Utilities Commission approved Pacific Gas & Electric’s 20-year contract with Sempra Generation to purchase 48 megawatts of solar power from Sempra Generation’s Copper Mountain Solar facility under development in Nevada.  Last month, Sempra Generation started construction on the plant, which is expected to be completed in late 2010.  


Sempra Pipelines & Storage

Sempra Pipelines & Storage earned $101 million in 2009, compared with $106 million in 2008.  Sempra Pipelines & Storage’s fourth-quarter earnings rose to $37 million in 2009 from $22 million in 2008, due primarily to improvement in the company’s Mexican operations and South American investments.  Sempra Pipelines & Storage’s 2009 results included a second-quarter charge of $64 million for the write-off of certain assets at Liberty Gas Storage in Louisiana.


Yesterday, Sempra Pipelines & Storage announced an agreement to acquire the Mexican pipeline and gas infrastructure assets of El Paso Corp. for $300 million ($260 million, net of cash and debt).  The transaction includes acquisition of El Paso’s natural gas pipeline and compression assets in the Mexican border state of Sonora, as well as a 50-percent ownership in a joint venture with PEMEX (Mexico’s state-owned oil company).  The joint venture operates natural gas pipelines and a propane system in northern Mexico.  The transaction, which should be completed in the second quarter 2010, is expected to add $0.05 per diluted share in earnings for 2010 and $0.10 per diluted share in earnings for 2011.


Sempra LNG

In 2009, Sempra LNG had earnings of $16 million, compared with losses of $46 million in 2008.  In the fourth quarter 2009, Sempra LNG had earnings of $35 million, compared with losses of $13 million in the prior-year’s fourth quarter.  The improvement in the fourth quarter 2009 was due primarily to the start-up of marketing and terminal operations.  Both of Sempra LNG’s liquefied natural gas receipt terminals are now operational.


2010 Outlook

Sempra Energy today confirmed a 2010 earnings-per-share outlook of $4.25 to $4.50.


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 Web site 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 4889875.


Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2009 revenues of more than $8 billion.  The Sempra Energy companies’ 13,800 employees serve more than 29 million consumers worldwide.


Complete financial tables, including income-statement information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/4Q2009.pdf.


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,” “would,” ”could,” “should,” 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, nationa l and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board,  and other regulatory and governmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy and trading 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 without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at www.sempra.com.


Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 Three months ended December 31,

 

 Years ended December 31,

(Dollars in millions, except per share amounts)

 

2009

 

2008*

 

2009

 

2008*

 

                    (unaudited)

REVENUES

 

 

 

 

 

 

 

 

Sempra Utilities

 

 $           1,838

 

 $           1,782

 

 $           6,220

 

 $           7,972

Sempra Global and parent

 

                618

 

                511

 

             1,886

 

             2,786

    Total revenues

 

             2,456

 

             2,293

 

             8,106

 

            10,758

 

 

 

 

 

 

 

 

 

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

    Cost of natural gas

 

               (533)

 

               (536)

 

            (1,530)

 

            (3,244)

    Cost of electric fuel and purchased power

 

               (164)

 

               (206)

 

               (672)

 

               (900)

Sempra Global and parent:

 

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

               (301)

 

               (318)

 

               (976)

 

            (1,671)

    Other cost of sales

 

                 (28)

 

                 (14)

 

                 (80)

 

               (182)

Operation and maintenance

 

               (798)

 

               (720)

 

            (2,474)

 

            (2,536)

Depreciation and amortization

 

               (207)

 

               (179)

 

               (775)

 

               (687)

Franchise fees and other taxes

 

                 (68)

 

                 (82)

 

               (296)

 

               (312)

Gains on sale of assets

 

                    -

 

                    -

 

                    3

 

                114

Write-off of long-lived assets

 

                    -

 

                    -

 

               (132)

 

                    -

Equity earnings:

 

 

 

 

 

 

 

 

    RBS Sempra Commodities LLP

 

                  79

 

                241

 

                463

 

                383

    Other

 

                    9

 

                    8

 

                  36

 

                  37

Other income (expense), net

 

                  52

 

               (139)

 

                149

 

               (109)

Interest income

 

                    5

 

                    9

 

                  21

 

                  45

Interest expense

 

               (110)

 

                 (88)

 

               (367)

 

               (253)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

 

                392

 

                269

 

             1,476

 

             1,443

Income tax expense

 

                 (95)

 

                 (15)

 

               (422)

 

               (438)

Equity earnings, net of income tax

 

                    9

 

                    6

 

                  68

 

                  63

Net income

 

                306

 

                260

 

             1,122

 

             1,068

(Earnings) losses attributable to noncontrolling interests

                 (15)

 

                  62

 

                    7

 

                  55

Preferred dividends of subsidiaries

 

                   (3)

 

                   (3)

 

                 (10)

 

                 (10)

Earnings

 

 $             288

 

 $             319

 

 $           1,119

 

 $           1,113

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

 $            1.18

 

 $            1.32

 

 $            4.60

 

 $            4.50

 

 

 

 

 

 

 

 

 

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

 

          244,923

 

          241,660

 

          243,339

 

          247,387

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

 $            1.16

 

 $            1.30

 

 $            4.52

 

 $            4.43

 

 

 

 

 

 

 

 

 

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

 

          248,749

 

          244,531

 

          247,384

 

          251,159

Dividends declared per share of common stock

 

 $            0.39

 

 $            0.35

 

 $            1.56

 

 $            1.37

 

 

 

 

 

 

 

 

 

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).

 




SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

(Dollars in millions)

 

2009

 

2008*

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

 $           110

 

 $           331

 

Short-term investments

 

                  -

 

              176

 

Restricted cash

 

                35

 

                27

 

Accounts receivable, net

 

           1,130

 

              981

 

Due from unconsolidated affiliates

 

                41

 

                  4

 

Income taxes receivable

 

              221

 

              195

 

Deferred income taxes

 

                10

 

                31

 

Inventories

 

              197

 

              320

 

Regulatory assets

 

                54

 

              121

 

Fixed-price contracts and other derivatives

 

                77

 

              160

 

Insurance receivable related to wildfire litigation

 

              273

 

                  -

 

Other

 

              147

 

              130

 

 

 

Total current assets

 

           2,295

 

           2,476

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              241

 

              264

 

Regulatory assets arising from pension and other postretirement benefit obligations

 

              959

 

           1,188

 

Other regulatory assets

 

              603

 

              534

 

Nuclear decommissioning trusts

 

              678

 

              577

 

Investment in RBS Sempra Commodities LLP

 

           2,172

 

           2,082

 

Other investments

 

           2,151

 

           1,166

 

Goodwill and other intangible assets

 

              524

 

              539

 

Sundry

 

              608

 

              709

 

 

 

Total investments and other assets

 

           7,936

 

           7,059

Property, plant and equipment, net

 

          18,281

 

          16,865

Total assets

 

 $       28,512

 

 $       26,400

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

 

 $           618

 

 $           503

 

Accounts payable

 

              693

 

              856

 

Due to unconsolidated affiliates

 

                29

 

                38

 

Dividends and interest payable

 

              190

 

              156

 

Accrued compensation and benefits

 

              264

 

              280

 

Regulatory balancing accounts, net

 

              382

 

              335

 

Current portion of long-term debt

 

              573

 

              410

 

Fixed-price contracts and other derivatives

 

                95

 

              180

 

Customer deposits

 

              145

 

              170

 

Reserve for wildfire litigation

 

              270

 

                  -

 

Other

 

              629

 

              684

 

 

 

Total current liabilities

 

           3,888

 

           3,612

Long-term debt

 

           7,460

 

           6,544

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

Due to unconsolidated affiliate

 

                  2

 

              102

 

Customer advances for construction

 

              146

 

              155

 

Pension and other postretirement benefit obligations, net of plan assets

 

           1,252

 

           1,487

 

Deferred income taxes

 

           1,318

 

              946

 

Deferred investment tax credits

 

                54

 

                57

 

Regulatory liabilities arising from removal obligations

 

           2,557

 

           2,430

 

Asset retirement obligations

 

           1,277

 

           1,159

 

Other regulatory liabilities

 

              181

 

              219

 

Fixed-price contracts and other derivatives

 

              312

 

              392

 

Deferred credits and other

 

              735

 

              909

 

 

 

Total deferred credits and other liabilities

 

           7,834

 

           7,856

Preferred stock of subsidiary

 

                79

 

                79

Equity:

 

 

 

 

 

Total Sempra Energy shareholders' equity

 

           9,007

 

           7,969

 

Preferred stock of subsidiaries

 

              100

 

              100

 

Other noncontrolling interests

 

              144

 

              240

 

 

 

Total equity

 

           9,251

 

           8,309

Total liabilities and equity

 

 $       28,512

 

 $       26,400

 

 

 

 

 

 

 

 

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

Years ended

 

 

 

December 31,

(Dollars in millions)

 

2009

 

2008*

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

 $     1,122

 

 $     1,068

Adjustments to reconcile net income to net cash  

 

 

 

 

  provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

           775

 

           687

 

Gains on sale of assets

 

             (3)

 

          (114)

 

Deferred income taxes and investment tax credits

 

           295

 

           324

 

Equity earnings

 

          (567)

 

          (483)

 

Write-off of long-lived assets

 

           132

 

               -

 

Fixed-price contracts and other derivatives

 

            (30)

 

             46

 

Other

 

            (45)

 

           150

Net change in other working capital components

 

          (256)

 

          (483)

Distributions from RBS Sempra Commodities LLP

 

           407

 

             85

Changes in other assets

 

           139

 

            (15)

Changes in other liabilities

 

            (94)

 

            (74)

 

Net cash provided by operating activities

 

        1,875

 

        1,191

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

       (1,912)

 

       (2,061)

Proceeds from sale of assets from continuing operations

 

 

 

 

 

net of cash sold

 

           179

 

        2,295

Expenditures for investments and acquisition of businesses,

 

 

 

 

 

net of cash acquired

 

(939)

 

       (2,675)

Distributions from investments

 

             23

 

             34

Purchases of nuclear decommissioning and other trust assets

 

          (267)

 

          (485)

Proceeds from sales by nuclear decommissioning and other trusts

 

           230

 

           469

Decrease in notes receivable from unconsolidated affiliate

 

           100

 

             60

Purchase of bonds issued by unconsolidated affiliate

 

            (50)

 

               -

Other

 

            (36)

 

            (23)

 

Net cash used in investing activities

 

       (2,672)

 

       (2,386)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(341)

 

          (339)

Preferred dividends paid by subsidiaries

 

(10)

 

            (10)

Issuances of common stock

 

             73

 

             18

Repurchases of common stock

 

            (22)

 

       (1,018)

Issuances of debt (maturities greater than 90 days)

 

        2,151

 

        1,706

Payments on debt (maturities greater than 90 days)

 

          (435)

 

            (19)

(Decrease) increase in short-term debt, net

 

          (659)

 

           564

Payments on notes payable to unconsolidated affiliate

 

          (100)

 

            (60)

Purchase of noncontrolling interest

 

            (94)

 

               -

Other

 

             13

 

             16

 

Net cash provided by financing activities

 

           576

 

           858

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

          (221)

 

          (337)

Cash and cash equivalents, January 1

 

           331

 

           668

Cash and cash equivalents, December 31

 

 $        110

 

 $        331

 

 

 

 

 

 

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




SEMPRA ENERGY

 

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2009

 

2008

 

2009

 

2008

 

 

 

 

(unaudited)

 

 

 

 

 

Earnings (Losses)

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $     67

 

 $     81

 

 $     344

 

 $    339

 

Southern California Gas

        75

 

        54

 

       273

 

       244

 

Sempra Commodities(1)

        71

 

      164

 

       345

 

       345

 

Sempra Generation

        43

 

        60

 

       162

 

       222

 

Sempra Pipelines & Storage

        37

 

        22

 

       101

 

       106

 

Sempra LNG

        35

 

      (13)

 

         16

 

       (46)

 

Parent & Other

      (40)

 

      (49)

 

     (122)

 

       (97)

 

Earnings

 $   288

 

 $   319

 

$   1,119

 

$  1,113

 

 

 

 

 

 

 

 

 

 

 

 

(1)

With the exception of the first quarter of 2008, results for 2009 and 2008 include the company's portion of RBS Sempra Commodities' joint venture earnings and interest, income taxes, cost allocations and other items associated with the joint venture. Results for the first quarter of 2008 include 100% of the commodities-marketing businesses. Both 2009 and 2008 include the results of Sempra Rockies Marketing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2009

 

2008

 

2009

 

2008

 

 

 

 

(unaudited)

 

 

 

 

 

Capital Expenditures and Investments(1)

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $   322

 

 $   430

(2)

 $  1,107

 

 $ 1,372

(2)

 

Southern California Gas

144

 

104

 

480

 

454

 

 

Sempra Commodities

            -

 

            -

 

            -

 

          37

 

 

Sempra Generation

69

 

44

 

276

 

59

 

 

Sempra Pipelines & Storage(3)

227

 

564

 

950

 

909

 

 

Sempra LNG

5

 

55

 

235

 

365

 

 

Parent & Other

1

 

229

(2)

5

 

655

(2)

 

Eliminations(2)

          -

 

    (411)

 

     (152)

 

     (715)

 

 

Consolidated Capital Expenditures and Investments

 $   768

 

 $ 1,015

 

 $  2,901

 

 $ 3,136

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008.

 

 

 

 

 

 

 

 

 

 

 

 

(2)

During the year ended December 31, 2008, SDG&E and Parent & Other purchased $488 and $640, respectively, of SDG&E's industrial development bonds, including purchases and sales between the entities. As their cash flow needs changed, SDG&E purchased $184 of the bonds from Parent & Other during the three months ended December 31, 2008 and Parent & Other purchased $227 of the bonds from SDG&E in the same period. In the second quarter of 2009, SDG&E purchased $152 of the bonds from Parent & Other to facilitate their remarketing.

 

 

 

 

(3)

Amounts for the three months and the year ended December 31, 2008 include $495 for the acquisition of EnergySouth, which is net of cash acquired.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

 

 

 

                        SEMPRA ENERGY

 

 

 

 

                               Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

SEMPRA UTILITIES

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

Revenues (Dollars in millions)

 

 

 

 

 

 

 

 

 

SDG&E (excludes intercompany sales)

 $    778

 

 $    801

 

 $ 2,908

 

 $ 3,240

 

 

SoCalGas (excludes intercompany sales)

 $ 1,060

 

 $    981

 

 $ 3,312

 

 $ 4,732

 

 

 

 

 

 

 

 

 

 

 

 

Gas Sales (Bcf)

       108

 

       103

 

       380

 

       391

 

Transportation (Bcf)

       133

 

       156

 

       554

 

       601

 

Total Deliveries (Bcf)

       241

 

       259

 

       934

 

       992

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

    6,607

 

    6,575

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

    4,214

 

    4,386

 

  16,982

 

  17,398

 

Direct Access (Millions of kWhs)

       829

 

       939

 

    3,119

 

    3,235

 

Total Deliveries (Millions of kWhs)

    5,043

 

    5,325

 

  20,101

 

  20,633

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

    1,379

 

    1,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

    5,742

 

    5,903

 

  22,268

 

  22,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

         81

 

         78

 

       330

 

       332

 

 

Mexico

 

          5

 

          5

 

         19

 

         19

 

 

Mobile Gas(1)

          8

 

          9

 

         32

 

          9

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

    1,710

 

    1,670

 

 

Mexico

 

 

 

 

 

         91

 

         95

 

 

Mobile Gas

 

 

 

 

         92

 

         93

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Peru

 

    1,409

 

    1,352

 

    5,560

 

    5,415

 

 

Chile

 

       565

 

       620

 

    2,402

 

    2,417

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

       863

 

       837

 

 

Chile

 

 

 

 

 

       576

 

       562

 

 

 

 

 

 

 

 

 

 

 

 

(1) Mobile Gas was acquired in October 2008.

 

 

 

 

 

 

 

 




SEMPRA ENERGY

Table E (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA COMMODITIES

 

 

 

 

 

 

 

 

 

 

 

 

The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP.  RBS Sempra Commodities LLP acquired the commodity-marketing businesses of Sempra Energy on April 1, 2008.  For the three months and the year ended December 31, 2009, the Sempra Commodities segment is composed primarily of the company's equity interest in RBS Sempra Commodities LLP, but also includes the results of Sempra Rockies Marketing.  The margin and financial data below represent the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Statistics

 

 

 

 

 

 

 

 

 

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

 

Three

 

 

 

 

 

 

 

 

 

months ended

 

 

 

months ended

 

 

 

Year ended

 

 

RBS Sempra Commodities LLP - Joint Venture level margin*

 

December 31, 2009

 

 

 

December 31, 2008

 

 

 

December 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographical:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 $                    123

 

 

 

 $                    373

 

 

 

 $                    695

 

 

 

Europe/Asia

 

                       156

 

 

 

                       340

 

 

 

                       473

 

 

 

  Total

 

 $                    279

 

 

 

 $                    713

 

 

 

 $                 1,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil - Crude & Products

 

 $                    100

 

 

 

 $                    243

 

 

 

 $                    317

 

 

 

Power

 

                         62

 

 

 

                       129

 

 

 

                       257

 

 

 

Natural Gas

 

                        (16)

 

 

 

                       171

 

 

 

                       232

 

 

 

Metals

 

                         88

 

 

 

                       149

 

 

 

                       309

 

 

 

Other

 

                         45

 

 

 

                         21

 

 

 

                         53

 

 

 

  Total

 

 $                    279

 

 

 

 $                    713

 

 

 

 $                 1,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

 

Three months ended December 31, 2009

 

Three months ended December 31, 2008

 

Year ended December 31, 2009

 

 

 

Joint Venture

 

Sempra

 

Joint Venture

 

Sempra

 

Joint Venture

 

Sempra

 

 

 

Total

 

Share**

 

Total

 

Share**

 

Total

 

Share**

 

Fee income and trading revenue, net of selling costs

 

 $                    279

 

 

 

 $                    713

 

 

 

 $                 1,168

 

 

 

Operating and other expenses

 

                      (251)

 

 

 

                      (339)

 

 

 

                      (761)

 

 

 

Joint Venture distributable income

 

 $                      28

 

 

 

 $                    374

 

 

 

 $                    407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred return on capital

 

 $                      84

 

 $                      60

 

 $                    103

 

 $                      61

 

 $                    330

 

 $                    240

 

1st allocation - 70% Sempra / 30% RBS***

 

                        (56)

 

                        (36)

 

                       271

 

                       192

 

                         77

 

                         60

 

2nd allocation - 30% Sempra / 70% RBS

 

                           -

 

                           -

 

                           -

 

                           -

 

                           -

 

                           -

 

Distributable income

 

 $                      28

 

 $                      24

 

 $                    374

 

 $                    253

 

 $                    407

 

 $                    300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Commodities Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

 

Three

 

 

 

 

 

 

 

 

 

months ended

 

 

 

months ended

 

 

 

Year ended

(in millions of US dollars)

 

 

 

December 31, 2009

 

 

 

December 31, 2008

 

 

 

December 31, 2009

 

Sempra share of distributable income - IFRS basis

 

 

 

 $                      24

 

 

 

 $                    253

 

 

 

 $                    300

 

U.S. GAAP conversion impact

 

 

 

                         55

 

 

 

                        (12)

 

 

 

                       163

 

Sempra equity earnings before income taxes - U.S. GAAP basis

 

 

 

                         79

 

 

 

                       241

 

 

 

                       463

 

Income tax expense

 

 

 

                         (5)

 

 

 

                        (79)

 

 

 

                      (111)

 

Sempra equity earnings from RBS Sempra Commodities LLP

 

 

 

                         74

 

 

 

                       162

 

 

 

                       352

 

Other segment activity

 

 

 

                         (3)

 

 

 

                          2

 

 

 

                         (7)

 

Sempra Commodities earnings

 

 

 

 $                      71

 

 

 

 $                    164

 

 

 

 $                    345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**

After a 15% preferred return to Sempra and then a 15% return to RBS, Sempra receives 70% of the next $500 million and 30% of any remaining income on an annual basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***

Includes certain transition costs specifically allocated to Sempra and RBS.     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.2



   Exhibit 99.2

SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        780

 

 $       1,079

 

 $            23

 

 $          314

 

 $         137

 

 $          153

 

 $           (30)

 

 

 $ 2,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (561)

 

            (888)

 

             (25)

 

          (233)

 

           (95)

 

            (78)

 

              (12)

 

 

  (1,892)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (90)

 

             (73)

 

                  -

 

            (15)

 

           (13)

 

            (12)

 

                (4)

 

 

    (207)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

               79

 

                 -

 

             11

 

                 -

 

                (2)

 

 

        88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            19

 

                3

 

               (2)

 

                3

 

               2

 

                1

 

                26

 

 

        52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          148

 

             121

 

               75

 

              69

 

             42

 

              64

 

              (22)

 

 

      497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (30)

 

             (17)

 

                  -

 

                1

 

             (7)

 

            (12)

 

              (43)

 

 

    (108)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (36)

 

             (29)

 

               (4)

 

            (27)

 

             (6)

 

            (17)

 

                24

 

 

      (95)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                 -

 

               9

 

                 -

 

                   -

 

 

          9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) Losses Attributable to Noncontrolling Interests

 

           (15)

 

                 -

 

                  -

 

                 -

 

             (1)

 

                 -

 

                  1

 

 

      (15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $         67

 

 $            75

 

 $            71

 

 $           43

 

 $          37

 

 $           35

 

 $           (40)

 

 

 $    288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        802

 

 $          992

 

 $            14

 

 $          358

 

 $         119

 

 $           30

 

 $           (22)

 

 

 $ 2,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (590)

 

            (829)

 

             (18)

 

          (278)

 

           (99)

 

            (55)

 

                (7)

 

 

  (1,876)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (75)

 

             (71)

 

                  -

 

            (14)

 

           (10)

 

              (7)

 

                (2)

 

 

    (179)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             241

 

              (2)

 

             13

 

                 -

 

                (3)

 

 

      249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

           (55)

 

                1

 

                  -

 

              (2)

 

                -

 

              (2)

 

              (81)

 

 

    (139)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

            82

 

              93

 

             237

 

              62

 

             23

 

            (34)

 

            (115)

 

 

      348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 

           (23)

 

             (16)

 

               (4)

 

                 -

 

             (4)

 

              (2)

 

              (33)

 

 

      (82)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (40)

 

             (23)

 

             (69)

 

              (2)

 

             (3)

 

              23

 

                99

 

 

      (15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                 -

 

               6

 

                 -

 

                   -

 

 

          6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

 

            62

 

                 -

 

                  -

 

                 -

 

                -

 

                 -

 

                   -

 

 

        62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $         81

 

 $            54

 

 $           164

 

 $           60

 

 $          22

 

 $         (13)

 

 $           (49)

 

 

 $    319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 




SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $     2,916

 

 $       3,355

 

 $            73

 

 $      1,106

 

 $         465

 

 $         278

 

 $            (87)

 

 

 $ 8,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses (1)

 

       (1,998)

 

         (2,586)

 

             (74)

 

          (784)

 

          (473)

(1)

          (220)

 

               (22)

 

 

  (6,157)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

         (329)

 

            (293)

 

                  -

 

            (58)

 

            (45)

 

            (35)

 

               (15)

 

 

    (775)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             463

 

             (2)

 

              50

 

                -

 

               (12)

 

 

      499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            64

 

                7

 

               (2)

 

               3

 

               2

 

               2

 

                 73

 

 

      149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

          653

 

             483

 

             460

 

            265

 

             (1)

 

              25

 

               (63)

 

 

    1,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

         (108)

 

             (66)

 

               (7)

 

                -

 

            (17)

 

            (24)

 

             (134)

 

 

    (356)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

         (177)

 

            (144)

 

           (108)

 

          (103)

 

              20

 

              15

 

                 75

 

 

    (422)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                -

 

              68

 

                -

 

                   -

 

 

        68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) Losses Attributable to Noncontrolling Interests

 

           (24)

 

                 -

 

                  -

 

                -

 

              31

 

                -

 

                   -

 

 

          7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $        344

 

 $          273

 

 $           345

 

 $         162

 

 $         101

 

 $           16

 

 $          (122)

 

 

 $ 1,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $     3,251

 

 $       4,768

 

 $           500

 

 $      1,784

 

 $         457

 

 $           74

 

 $            (76)

 

 

 $10,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

       (2,386)

 

         (4,054)

 

           (428)

 

       (1,409)

 

          (413)

 

          (130)

 

               (25)

 

 

  (8,845)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

         (298)

 

            (280)

 

               (6)

 

            (56)

 

            (20)

 

            (15)

 

               (12)

 

 

    (687)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (Losses) on Sale of Assets

 

              3

 

                 -

 

             110

 

               2

 

                -

 

                -

 

                (1)

 

 

      114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             383

 

               8

 

              43

 

                -

 

               (14)

 

 

      420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

           (29)

 

                2

 

                  -

 

             (1)

 

               1

 

              11

 

               (93)

 

 

    (109)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

          541

 

             436

 

             559

 

            328

 

              68

 

            (60)

 

             (221)

 

 

    1,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

           (95)

 

             (52)

 

             (16)

 

             (6)

 

                -

 

             (7)

 

               (42)

 

 

    (218)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

         (161)

 

            (140)

 

           (201)

 

          (100)

 

            (23)

 

              21

 

               166

 

 

    (438)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                 3

 

                -

 

              60

 

                -

 

                   -

 

 

        63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

 

            54

 

                 -

 

                  -

 

                -

 

               1

 

                -

 

                   -

 

 

        55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $        339

 

 $          244

 

 $           345

 

 $         222

 

 $         106

 

 $         (46)

 

 $            (97)

 

 

 $ 1,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes $132 million write-off of long-lived assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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