EX-99 14 ex99_6.htm EXHIBIT 99.6 Exhibit 99.6

Exhibit 99.6
 
The information provided in this Exhibit is presented only in connection with the reporting changes described in the accompanying Form 8-K. This information does not reflect events occurring after February 28, 2012, the date we filed our 2011 Form 10-K, and does not modify or update the disclosures therein in any way, other than as required to reflect the change in segments, the change in accounting principle, and the adoption of a new accounting standard as described in the Form 8-K and set forth in Exhibits 99.1 through 99.6 attached thereto. You should therefore read this information in conjunction with the 2011 Form 10-K and subsequent amendments on Form 10-K/A and with our reports filed with the Securities and Exchange Commission after February 28, 2012.
 
PART IV
 

 
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 

 
(a)2. FINANCIAL STATEMENT SCHEDULE
 
 
SCHEDULE I – SEMPRA ENERGY CONDENSED FINANCIAL INFORMATION OF PARENT
 

SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
 
Years ended December 31,
 
2011(1)
2010(1)
2009(1)
 
 
 
 
 
 
 
Interest income
$
 109 
$
 146 
$
 140 
Interest expense
 
 (242)
 
 (265)
 
 (244)
Operation and maintenance
 
 (64)
 
 (59)
 
 (81)
Other income, net
 
 42 
 
 65 
 
 50 
Income tax benefits
 
 82 
 
 79 
 
 89 
    Loss before equity in earnings of subsidiaries
 
 (73)
 
 (34)
 
 (46)
Equity in earnings of subsidiaries, net of income taxes
 
 1,404 
 
 743 
 
 1,165 
    Net income/earnings
$
 1,331 
$
 709 
$
 1,119 
 
 
 
 
 
 
 
Basic earnings per common share
$
 5.55 
$
 2.90 
$
 4.60 
    Weighted-average number of shares outstanding (thousands)
 
 239,720 
 
 244,736 
 
 243,339 
 
 
 
 
 
 
 
Diluted earnings per common share
$
 5.51 
$
 2.86 
$
 4.52 
    Weighted-average number of shares outstanding (thousands)
 
 241,523 
 
 247,942 
 
 247,384 
(1) As adjusted for the retrospective effect of a change in accounting principle as we discuss in Note 1.
See Notes to Condensed Financial Information of Parent.




SEMPRA ENERGY
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Dollars in millions)
 
 
Years ended December 31, 2011, 2010 and 2009
 
 
Pretax
Income Tax
Net-of-tax
 
 
Amount(1)
(Expense) Benefit
Amount
2011:
 
 
 
 
 
 
Net income(2)
$
 1,331 
 
 
$
 1,331 
Other comprehensive income (loss):
 
 
 
 
 
 
    Foreign currency translation adjustments
 
 (79)
$
 3 
 
 (76)
    Reclassification to net income of foreign
 
 
 
 
 
 
        currency translation adjustment related
 
 
 
 
 
 
        to remeasurement of equity method
 
 
 
 
 
 
        investments
 
 (54)
 
 ― 
 
 (54)
    Available-for-sale securities
 
 (2)
 
 1 
 
 (1)
    Pension and other postretirement benefits
 
 (20)
 
 8 
 
 (12)
    Financial instruments
 
 (26)
 
 10 
 
 (16)
    Total other comprehensive income (loss)
 
 (181)
 
 22 
 
 (159)
Total comprehensive income(2)
$
 1,150 
$
 22 
$
 1,172 
2010:
 
 
 
 
 
 
Net income(2)
$
 709 
 
 
$
 709 
Other comprehensive income (loss):
 
 
 
 
 
 
    Foreign currency translation adjustments
 
 47 
$
 ― 
 
 47 
    Available-for-sale securities
 
 (10)
 
 2 
 
 (8)
    Pension and other postretirement benefits
 
 23 
 
 (10)
 
 13 
    Financial instruments
 
 (22)
 
 9 
 
 (13)
    Total other comprehensive income
 
 38 
 
 1 
 
 39 
Total comprehensive income(2)
$
 747 
$
 1 
$
 748 
2009:
 
 
 
 
 
 
Net income(2)
$
 1,119 
 
 
$
 1,119 
Other comprehensive income (loss):
 
 
 
 
 
 
    Foreign currency translation adjustments
 
 102 
$
 ― 
 
 102 
    Available-for-sale securities
 
 9 
 
 (2)
 
 7 
    Pension and other postretirement benefits
 
 (6)
 
 3 
 
 (3)
    Financial instruments
 
 60 
 
 (22)
 
 38 
    Total other comprehensive income (loss)
 
 165 
 
 (21)
 
 144 
Total comprehensive income (loss)(2)
$
 1,284 
$
 (21)
$
 1,263 
(1)
Except for Net Income and Total Comprehensive Income (Loss).
(2)
As adjusted for the retrospective effect of a change in accounting principle as we discuss in Note 1.
See Notes to Condensed Financial Statements of Parent.




SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
 
 
December 31,
December 31,
 
 
2011(1)
2010(1)
Assets:
 
 
 
 
Cash and cash equivalents
$
 11 
$
 157 
Due from affiliates
 
 112 
 
 27 
Income taxes receivable
 
 ― 
 
 190 
Other current assets
 
 16 
 
 11 
    Total current assets
 
 139 
 
 385 
 
 
 
 
 
 
Investments in subsidiaries
 
 12,209 
 
 11,447 
Due from affiliates
 
 1,730 
 
 1,683 
Deferred income taxes
 
 1,200 
 
 305 
Other assets
 
 548 
 
 488 
    Total assets
$
 15,826 
$
 14,308 
 
 
 
 
 
 
Liabilities and shareholders’ equity:
 
 
 
 
Current portion of long-term debt
$
 8 
$
 32 
Due to affiliates
 
 1,014 
 
 1,331 
Income taxes payable
 
 246 
 
 ― 
Other current liabilities
 
 336 
 
 374 
    Total current liabilities
 
 1,604 
 
 1,737 
 
 
 
 
 
 
Long-term debt
 
 3,957 
 
 3,140 
Other long-term liabilities
 
 490 
 
 441 
Shareholders’ equity
 
 9,775 
 
 8,990 
Total liabilities and shareholders’ equity
$
 15,826 
$
 14,308 
(1)
As adjusted for the retrospective effect of a change in accounting principle as we discuss in Note 1.
See Notes to Condensed Financial Statements of Parent.
      




SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
 
Years ended December 31,
 
2011 
2010 
2009 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$
 (287)
$
 218 
$
 97 
 
 
 
 
 
 
 
Dividends received from subsidiaries
 
 50 
 
 100 
 
 150 
Expenditures for property, plant and equipment
 
 (2)
 
 (1)
 
 (1)
Proceeds from sale of short-term investments
 
 ― 
 
 ― 
 
 152 
Purchase of trust assets
 
 (7)
 
 ― 
 
 (30)
Proceeds from sales by trust
 
 12 
 
 11 
 
 ― 
(Increase) decrease in loans to affiliates, net
 
 (118)
 
 1,204 
 
 (1,285)
    Cash (used in) provided by investing activities
 
 (65)
 
 1,314 
 
 (1,014)
 
 
 
 
 
 
 
Common stock dividends paid
 
 (440)
 
 (364)
 
 (341)
Issuances of common stock
 
 28 
 
 40 
 
 73 
Repurchases of common stock
 
 (18)
 
 (502)
 
 (22)
Issuances of long-term debt
 
 799 
 
 40 
 
 1,492 
Payments on long-term debt
 
 (24)
 
 (565)
 
 (314)
(Decrease) increase in loans from affiliates, net
 
 (136)
 
 (40)
 
 4 
Other
 
 (3)
 
 9 
 
 20 
    Cash provided by (used in) financing activities
 
 206 
 
 (1,382)
 
 912 
 
 
 
 
 
 
 
(Decrease) increase in cash and cash equivalents
 
 (146)
 
 150 
 
 (5)
Cash and cash equivalents, January 1
 
 157 
 
 7 
 
 12 
Cash and cash equivalents, December 31
$
 11 
$
 157 
$
 7 
See Notes to Condensed Financial Information of Parent.



SEMPRA ENERGY
 
 
NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT
 
 
Note 1. Basis of Presentation
 
Sempra Energy accounts for the earnings of its subsidiaries under the equity method in this unconsolidated financial information.
 
This condensed financial information has been adjusted for the retrospective effect of a change in accounting principle and the adoption of a new accounting standard as we discuss in Note 1 of the Notes to Consolidated Financial Statements in Part II, Item 8 (Exhibit 99.5 of this report).
 
Other Income, Net, on the Condensed Statements of Operations includes $22 million, $35 million and $55 million of gains associated with investment earnings or losses on dedicated assets in support of our executive retirement and deferred compensation plans in 2011, 2010 and 2009, respectively.
 
Because of its nature as a holding company, Sempra Energy classifies dividends received from subsidiaries as an investing cash flow.
 
 
Note 2. Long-Term Debt
 

 
December 31,
December 31,
(Dollars in millions)
2011 
2010 
 
 
 
 
 
6% Notes February 1, 2013
$
 400 
$
 400 
8.9% Notes November 15, 2013, including $200 at variable rates after
 
 
 
 
    fixed-to-floating rate swaps effective January 2011 (8.19% at December 31, 2011)
 
 250 
 
 250 
2% Notes March 15, 2014
 
 500 
 
 ― 
Notes at variable rates (1.22% at December 31, 2011) March 15, 2014
 
 300 
 
 ― 
6.5% Notes June 1, 2016, including $300 at variable rates after
 
 
 
 
    fixed-to-floating rate swaps effective January 2011 (4.86% at December 31, 2011)
 
 750 
 
 750 
6.15% Notes June 15, 2018
 
 500 
 
 500 
9.8% Notes February 15, 2019
 
 500 
 
 500 
6% Notes October 15, 2039
 
 750 
 
 750 
Employee Stock Ownership Plan Bonds at variable rates payable on demand
 
 
 
 
    (0.40% at December 31, 2011) November 1, 2014
 
 8 
 
 32 
Market value adjustments for interest rate swaps, net
 
 
 
 
    (expire November 2013 and June 2016)
 
 16 
 
 ― 
 
 
 3,974 
 
 3,182 
Current portion of long-term debt
 
 (8)
 
 (32)
Unamortized discount on long-term debt
 
 (9)
 
 (10)
Total long-term debt
$
 3,957 
$
 3,140 

Maturities of long-term debt are $8 million in 2012, $650 million in 2013, $800 million in 2014, $750 million in 2016, and $1.8 billion thereafter.
 
Additional information on Sempra Energy’s long-term debt is provided in Note 5 of the Notes to Consolidated Financial Statements.
 
 
Note 3. Commitments and Contingencies
 
For contingencies and guarantees related to Sempra Energy, refer to Notes 5 and 15 of the Notes to Consolidated Financial Statements.