XML 41 R19.htm IDEA: XBRL DOCUMENT v2.3.0.15
OTHER FINANCIAL DATA (Tables)
3 Months Ended
Sep. 30, 2011
Other Financial Data (Tables) [Abstract] 
Goodwill Table
GOODWILL      
(Dollars in millions)      
  Sempra    
  Pipelines & Parent  
  Storage and Other Total
Balance as of December 31, 2010$ 81$ 6$ 87
Acquisition of Chilquinta Energía and Luz Del Sur  970  ―  970
Foreign currency translation(1)  (44)  ―  (44)
Balance at September 30, 2011$ 1,007$ 6$ 1,013
(1) We record the offset of this fluctuation to other comprehensive income.  
Net Periodic Benefit Cost Table
NET PERIODIC BENEFIT COST -- SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended September 30,Three months ended September 30,
 2011201020112010
Service cost$ 20$ 20$ 8$ 5
Interest cost  41  41  16  14
Expected return on assets  (36)  (36)  (12)  (12)
Amortization of:        
Prior service cost  1  1  ―  ―
Actuarial loss  8  8  4  2
Settlement  1  ―  ―  ―
Regulatory adjustment  31  5  2  1
Total net periodic benefit cost$ 66$ 39$ 18$ 10
 Nine months ended September 30,Nine months ended September 30,
 2011201020112010
Service cost$ 63$ 62$ 23$ 20
Interest cost  126  125  49  43
Expected return on assets  (109)  (108)  (36)  (35)
Amortization of:        
Prior service cost (credit)  3  3  ―  (1)
Actuarial loss  26  23  13  6
Settlement  11  ―  ―  ―
Regulatory adjustment  6  (14)  6  5
Total net periodic benefit cost$ 126$ 91$ 55$ 38

NET PERIODIC BENEFIT COST -- SDG&E
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended September 30,Three months ended September 30,
 2011201020112010
Service cost$ 6$ 7$ 1$ 2
Interest cost  12  12  2  2
Expected return on assets  (10)  (11)  (1)  (2)
Amortization of:        
Prior service cost   ―  ―  1  1
Actuarial loss 2  3  ―  ―
Regulatory adjustment  15  3  1  ―
Total net periodic benefit cost$ 25$ 14$ 4$ 3
 Nine months ended September 30,Nine months ended September 30,
 2011201020112010
Service cost$ 21$ 21$ 5$ 5
Interest cost  37  36  7  7
Expected return on assets  (35)  (32)  (5)  (5)
Amortization of:        
Prior service cost   1  1  3  3
Actuarial loss  7  9  ―  ―
Settlement  1  ―  ―  ―
Regulatory adjustment  13  (2)  2  1
Total net periodic benefit cost$ 45$ 33$ 12$ 11

NET PERIODIC BENEFIT COST -- SOCALGAS
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended September 30,Three months ended September 30,
 2011201020112010
Service cost$ 10$ 11$ 7$ 3
Interest cost  24  25  12  11
Expected return on assets  (21)  (23)  (10)  (9)
Amortization of:        
Prior service cost (credit)  1  1  (1)  (1)
Actuarial loss  4  2  4  2
Regulatory adjustment  16  2  1  1
Total net periodic benefit cost$ 34$ 18$ 13$ 7
 Nine months ended September 30,Nine months ended September 30,
 2011201020112010
Service cost$ 34$ 34$ 17$ 13
Interest cost  74  74  39  34
Expected return on assets  (64)  (68)  (30)  (29)
Amortization of:        
Prior service cost (credit)  2  2  (3)  (3)
Actuarial loss  12  7  13  6
Settlement  1  ―  ―  ―
Regulatory adjustment  (7)  (12)  4  4
Total net periodic benefit cost$ 52$ 37$ 40$ 25
Contributions to Benefit Plans Table
 Sempra Energy  
(Dollars in millions)ConsolidatedSDG&ESoCalGas
Contributions through September 30, 2011:      
Pension plans$ 136$ 42$ 56
Other postretirement benefit plans  56  12  42
Total expected contributions in 2011:      
Pension plans$ 211$ 68$ 95
Other postretirement benefit plans  74  15  55
Earnings Per Share Computations Table
EARNINGS PER SHARE COMPUTATIONS    
(Dollars in millions, except per share amounts; shares in thousands)    
 Three months ended September 30,Nine months ended September 30,
 2011201020112010
Numerator:        
Earnings/Income attributable to common shareholders$ 296$ 131$ 1,065$ 459
         
Denominator:        
Weighted-average common shares outstanding for basic EPS  239,545  246,668  239,693  246,513
Dilutive effect of stock options, restricted stock awards and restricted stock units  2,335  3,143  2,262  3,260
Weighted-average common shares outstanding for diluted EPS  241,880  249,811  241,955  249,773
         
Earnings per share:        
Basic$ 1.23$ 0.53$ 4.44$ 1.86
Diluted$ 1.22$ 0.53$ 4.40$ 1.84
Total Shareholder Return Ranking Table
Four-Year Cumulative Total Shareholder Return Ranking versus S&P 500 Utilities Index(1)Number of Sempra Energy Common Shares Received for Each Restricted Stock Unit(2)
75th Percentile or Above1.5
50th Percentile 1
35th Percentile or Below―
(1) If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each restricted stock unit.
(2) Participants may also receive additional shares for dividend equivalents on shares subject to restricted stock units, which are reinvested to purchase additional shares that become subject to the same vesting conditions as the restricted stock units to which the dividends relate.
Capitalized Financing Costs Table
CAPITALIZED FINANCING COSTS    
(Dollars in millions)    
 Three months ended September 30,Nine months ended September 30,
 2011201020112010
Sempra Energy Consolidated:        
AFUDC related to debt$ 10$ 6$ 27$ 16
AFUDC related to equity  26  13  67  40
Other capitalized financing costs  6  9  20  27
Total Sempra Energy Consolidated$ 42$ 28$ 114$ 83
SDG&E:        
AFUDC related to debt$ 8$ 5$ 22$ 12
AFUDC related to equity  21  11  54  30
Total SDG&E$ 29$ 16$ 76$ 42
SoCalGas:        
AFUDC related to debt$ 2$ 1$ 5$ 4
AFUDC related to equity  5  2  13  10
Total SoCalGas$ 7$ 3$ 18$ 14
Comprehensive Income Table
COMPREHENSIVE INCOME
(Dollars in millions)
  Three months ended September 30,
  2011 2010
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
 Net income (loss)(2)$ 297$ 29$ 326 $ 133$ (6)$ 127
 Foreign currency translation             
  adjustments  (132)  (7)  (139)   53  ―  53
 Financial instruments  (14)  (25)  (39)   (3)  1  (2)
 Available-for-sale securities  ―  ―  ―   4  ―  4
 Net actuarial gain  1  ―  1   1  ―  1
 Comprehensive income (loss)$ 152$ (3)$ 149 $ 188$ (5)$ 183
SDG&E:             
 Net income (loss)$ 115$ 21$ 136 $ 108$ (5)$ 103
 Financial instruments  ―  (25)  (25)   ―  1  1
 Net actuarial gain  1  ―  1   ―  ―  ―
 Comprehensive income (loss)$ 116$ (4)$ 112 $ 108$ (4)$ 104
SoCalGas:             
 Net income$ 81$ ―$ 81 $ 78$ ―$ 78
 Financial instruments  1  ―  1   1  ―  1
 Comprehensive income $ 82$ ―$ 82 $ 79$ ―$ 79
(1)Shareholders' equity of Sempra Energy Consolidated, SDG&E or SoCalGas as indicated in left margin.
(2)Before preferred dividends of subsidiaries.
  

COMPREHENSIVE INCOME
(Dollars in millions)
  Nine months ended September 30,
  2011 2010
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Net income (loss)(2)$ 1,071$ 21$ 1,092 $ 466$ (34)$ 432
Foreign currency translation             
adjustments  (109)  (1)  (110)   32  ―  32
Reclassification to net income of              
foreign currency translation              
adjustment related to equity             
method investments(3)  (54)  ―  (54)   ―  ―  ―
Financial instruments  (18)  (34)  (52)   (12)  5  (7)
Available-for-sale securities  ―  ―  ―   1  ―  1
Net actuarial gain  8  ―  8   4  ―  4
Comprehensive income (loss)$ 898$ (14)$ 884 $ 491$ (29)$ 462
SDG&E:             
Net income (loss)$ 277$ 6$ 283 $ 268$ (34)$ 234
Financial instruments  ―  (34)  (34)   ―  5  5
Net actuarial gain  1  ―  1   1  ―  1
Comprehensive income (loss)$ 278$ (28)$ 250 $ 269$ (29)$ 240
SoCalGas:             
Net income$ 209$ ―$ 209 $ 213$ ―$ 213
Financial instruments  2  ―  2   2  ―  2
Comprehensive income$ 211$ ―$ 211 $ 215$ ―$ 215
(1)Shareholders' equity of Sempra Energy Consolidated, SDG&E or SoCalGas as indicated in left margin.
(2)Before preferred dividends of subsidiaries.
(3)Related to the acquisition of Chilquinta Energía and Luz del Sur.
Income Tax Expense (Benefit) Associated with Other Comprehensive Income Table
INCOME TAX EXPENSE (BENEFIT) ASSOCIATED WITH OTHER COMPREHENSIVE INCOME
(Dollars in millions)
  Three months ended September 30,
  2011 2010
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Financial instruments$ (11)$ ―$ (11) $ (1)$ ―$ (1)
Foreign currency translation adjustments  (1)  ―  (1)   ―  ―  ―
Net actuarial gain  1  ―  1   1  ―  1
SoCalGas:             
Financial instruments$ ―$ ―$ ― $ 1$ ―$ 1
  
  Nine months ended September 30,
  2011 2010
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Financial instruments$ (11)$ ―$ (11) $ (7)$ ―$ (7)
Foreign currency translation adjustments  (1)  ―  (1)   ―  ―  ―
Available-for-sale securities  ―  ―  ―   (1)  ―  (1)
Net actuarial gain  5  ―  5   3  ―  3
SoCalGas:             
Financial instruments$ 1$ ―$ 1 $ 2$ ―$ 2
(1)Shareholders' equity of Sempra Energy Consolidated or SoCalGas as indicated in left margin.  
               
Shareholders' Equity and Noncontrolling Interests Table
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS
(Dollars in millions)
  Sempra     
  Energy Non-  
  Shareholders'  controlling Total
  Equity Interests Equity
Balance at December 31, 2010$ 9,027$ 211$ 9,238
Comprehensive income (loss)  898  (14)  884
Share-based compensation expense  36  ―  36
Common stock dividends declared  (346)  ―  (346)
Preferred dividends of subsidiaries  (6)  ―  (6)
Issuance of common stock  22  ―  22
Tax benefit related to share-based compensation  6  ―  6
Repurchase of common stock  (18)  ―  (18)
Common stock released from ESOP  15  ―  15
Distributions to noncontrolling interests  ―  (9)  (9)
Equity contributed by noncontrolling interest  ―  6  6
Acquisition of South American entities  ―  279  279
Purchase of noncontrolling interests in subsidiary  (4)  (39)  (43)
Redemption of preferred stock of subsidiary  ―  (80)  (80)
Balance at September 30, 2011$ 9,630$ 354$ 9,984
Balance at December 31, 2009$ 9,007$ 244$ 9,251
Comprehensive income (loss)  491  (29)  462
Share-based compensation expense  31  ―  31
Common stock dividends declared  (287)  ―  (287)
Preferred dividends of subsidiaries  (7)  ―  (7)
Issuance of common stock  53  ―  53
Tax benefit related to share-based compensation  3  ―  3
Repurchase of common stock  (502)  ―  (502)
Common stock released from ESOP  13  ―  13
Distributions to noncontrolling interest  ―  (10)  (10)
Balance at September 30, 2010$ 8,802$ 205$ 9,007

SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST
(Dollars in millions)
  SDG&E Non-  
  Shareholder's controlling Total
  Equity Interest Equity
Balance at December 31, 2010$ 3,108$ 113$ 3,221
Comprehensive income (loss)  278  (28)  250
Preferred stock dividends declared  (4)  ―  (4)
Capital contribution  200  ―  200
Equity contributed by noncontrolling interest  ―  6  6
Balance at September 30, 2011$ 3,582$ 91$ 3,673
Balance at December 31, 2009$ 2,739$ 146$ 2,885
Comprehensive income (loss)  269  (29)  240
Preferred stock dividends declared  (4)  ―  (4)
Distributions to noncontrolling interest  ―  (10)  (10)
Balance at September 30, 2010$ 3,004$ 107$ 3,111
Amounts Due To and From Affiliates at SDG&E and SoCalGas Table
AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
  September 30, December 31,
 2011 2010
SDG&E     
Current:     
Due from SoCalGas$ 10 $ 11
Due from various affiliates  1   1
 $ 11 $ 12
       
Due to Sempra Energy$ 23 $ 16
      
Income taxes due from Sempra Energy(1)$ 84 $ 25
      
SoCalGas     
Current:     
Due from Sempra Energy$ 167 $ 60
Due from various affiliates  1   3
  $ 168 $ 63
      
Due to SDG&E$ 10 $ 11
       
Income taxes due from (to) Sempra Energy(1)$ 63 $ (3)
(1)SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies' having always filed a separate return.
Revenues From Unconsolidated Affiliates at the Sempra Utilities Table
REVENUES FROM UNCONSOLIDATED AFFILIATES AT THE SEMPRA UTILITIES    
(Dollars in millions)    
   
 Three months ended September 30,Nine months ended September 30,
 2011201020112010
SDG&E$ 3$ 1$ 6$ 6
SoCalGas  13  11  38  32
Amounts Recorded For Transactions with RBS Sempra Commodities Table
AMOUNTS RECORDED FOR TRANSACTIONS WITH RBS SEMPRA COMMODITIES    
(Dollars in millions)    
    
  Three months ended September 30,Nine months ended September 30,
 2011(1)20102011(1)2010
Revenues:        
SoCalGas$ ―$ 1$ ―$ 8
Sempra Generation(2)  ―  10  4  19
Sempra LNG  ―  60  40  199
Total revenues$ ―$ 71$ 44$ 226
          
Cost of natural gas:        
SDG&E$ ―$ 1$ ―$ 2
SoCalGas  ―  10  ―  33
Sempra Generation  ―  30  30  58
Sempra Pipelines & Storage  3  6  17  22
Sempra LNG  ―  63  30  208
Total cost of natural gas$ 3$ 110$ 77$ 323
(1)With the exception of Sempra Pipelines & Storage, whose contract with RBS Sempra Commodities expired in July 2011, amounts only include activities prior to May 1, 2011, the date by which substantially all the contracts with RBS Sempra Commodities were assigned to buyers of the joint venture businesses.
(2)Includes amounts in 2010 for Sempra Rockies Marketing, previously reported in our former Sempra Commodities segment as we discuss in Note 11.
          
  December 31,   
  2010   
Fixed-price contracts and other derivatives - Net Asset (Liability):      
Sempra Generation  $ 17    
Sempra LNG    (35)    
Total  $ (18)    
         
Due to unconsolidated affiliates:        
Sempra Generation  $ 11    
Sempra LNG    13    
Parent and other    11    
Total  $ 35    
         
Due from unconsolidated affiliates:        
SoCalGas  $ 3    
Sempra Generation    13    
Sempra LNG    13    
Parent and other    5    
Total  $ 34    
          
Other Income and Expense Table
OTHER INCOME (EXPENSE), NET    
(Dollars in millions)    
  Three months ended September 30,Nine months ended September 30,
  2011201020112010
Sempra Energy Consolidated:        
Allowance for equity funds used during construction$ 26$ 13$ 67$ 40
Investment (losses) gains(1)  (6)  10  13  15
Losses on interest rate and foreign exchange instruments, net(2)  (26)  (17)  (14)  (40)
Regulatory interest, net  ―  1  1  ―
Sundry, net(3)  18  59  19  67
Total$ 12$ 66$ 86$ 82
SDG&E:        
Allowance for equity funds used during construction$ 21$ 11$ 54$ 30
Losses on interest rate instruments(4)  ―  (17)  ―  (51)
Regulatory interest, net  ―  ―  1  ―
Sundry, net  5  4  ―  3
Total$ 26$ (2)$ 55$ (18)
SoCalGas:        
Allowance for equity funds used during construction$ 5$ 2$ 13$ 10
Sundry, net  (2)  ―  (4)  (2)
Total $ 3$ 2$ 9$ 8
(1)Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.
(2)Sempra Energy Consolidated includes Otay Mesa VIE and additional instruments.    
(3)Amounts in 2010 include proceeds from a legal settlement of $48 million.
(4)Related to Otay Mesa VIE.        
Income Tax Expense and Effective Income Tax Rates Table
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
   Three months ended September 30,
   2011 2010
   Income Tax Effective Income  Income Tax Expense Effective Income 
   Expense Tax Rate  (Benefit) Tax Rate 
Sempra Energy Consolidated$ 68  18%$ (32)  (32)%
SDG&E  63  32   56  35 
SoCalGas  41  34   42  35 
   Nine months ended September 30,
   2011 2010
   Income Tax Effective Income  Income Tax  Effective Income 
   Expense Tax Rate  Expense Tax Rate 
Sempra Energy Consolidated$ 269  20%$ 85  18%
SDG&E  154  35   131  36 
SoCalGas  106  34   132  38