OTHER FINANCIAL DATA (Tables)

3 Months Ended

Mar. 31, 2013

Other Financial Data (Tables) [Abstract]

Goodwill Table

GOODWILL
(Dollars in millions)
			Sempra
			South American		Sempra		Sempra
			Utilities		Mexico		Natural Gas		Total
Balance at December 31, 2012		$	1,014	$	25	$	72	$	1,111
Foreign currency translation(1)			2		―		―		2
Balance at March 31, 2013		$	1,016	$	25	$	72	$	1,113
(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 Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2013		2012		2013		2012
Service cost	$	27	$	23	$	7	$	8
Interest cost		37		41		11		14
Expected return on assets		(40)		(39)		(15)		(13)
Amortization of:
Prior service cost (credit)		1		1		(1)		―
Actuarial loss		15		12		2		3
Regulatory adjustment		(32)		(30)		2		3
Total net periodic benefit cost	$	8	$	8	$	6	$	15

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2013		2012		2013		2012
Service cost	$	8	$	7	$	2	$	2
Interest cost		10		12		2		2
Expected return on assets		(13)		(12)		(2)		(1)
Amortization of:
Prior service cost		―		―		1		1
Actuarial loss		4		4		―		―
Regulatory adjustment		(8)		(10)		―		―
Total net periodic benefit cost	$	1	$	1	$	3	$	4

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension Benefits				Other Postretirement Benefits
	Three months ended March 31,				Three months ended March 31,
	2013		2012		2013		2012
Service cost	$	16	$	13	$	4	$	5
Interest cost		23		25		9		11
Expected return on assets		(25)		(24)		(12)		(11)
Amortization of:
Prior service cost (credit)		1		1		(2)		(1)
Actuarial loss		9		6		2		3
Regulatory adjustment		(24)		(20)		2		3
Total net periodic benefit cost	$	―	$	1	$	3	$	10

Contributions to Benefit Plans Table

	Sempra Energy
(Dollars in millions)	Consolidated		SDG&E		SoCalGas
Contributions through March 31, 2013:
Pension plans	$	11	$	―	$	2
Other postretirement benefit plans		7		3		3
Total expected contributions in 2013:
Pension plans	$	154	$	57	$	70
Other postretirement benefit plans		26		11		11

Earnings Per Share Computations Table

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended March 31,
	2013		2012
Numerator:
Earnings/Income attributable to common shareholders	$	178	$	236
Denominator:
Weighted-average common shares outstanding for basic EPS		243,294		240,566
Dilutive effect of stock options, restricted stock awards and restricted stock units		4,240		3,195
Weighted-average common shares outstanding for diluted EPS		247,534		243,761
Earnings per share:
Basic	$	0.73	$	0.98
Diluted	$	0.72	$	0.97

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 Above		1.5
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 units 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 March 31,
	2013		2012
Sempra Energy Consolidated:
AFUDC related to debt	$	6	$	14
AFUDC related to equity		15		35
Other capitalized financing costs		5		11
Total Sempra Energy Consolidated	$	26	$	60
SDG&E:
AFUDC related to debt	$	4	$	12
AFUDC related to equity		10		29
Total SDG&E	$	14	$	41
SoCalGas:
AFUDC related to debt	$	2	$	2
AFUDC related to equity		5		6
Total SoCalGas	$	7	$	8

Changes in Components of Accumulated Comprehensive Income Table

CHANGES IN COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1)
(Dollars in millions)
		Foreign								Total
		Currency		Unamortized		Unamortized				Accumulated Other
		Translation		Net		Prior Service		Financial		Comprehensive
		Adjustments		Actuarial Loss		Credit		Instruments		Income (Loss)
Sempra Energy Consolidated:
Balance as of December 31, 2012		$	(240)	$	(102)	$	1	$	(35)	$	(376)
Other comprehensive income (loss) before
reclassifications			10		―		―		(16)		(6)
Amounts reclassified from accumulated other
comprehensive income			―		3		―		2		5
Net other comprehensive income (loss)			10		3		―		(14)		(1)
Balance as of March 31, 2013		$	(230)	$	(99)	$	1	$	(49)	$	(377)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

Reclassifications out of AOCI Table

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Three months ended March 31, 2013
		Amount reclassified
Details about accumulated		from accumulated other			Affected line item
other comprehensive income components		comprehensive income (loss)			on Condensed Consolidated Statement of Operations
Sempra Energy Consolidated:
Financial instruments:
Interest rate instruments			$	3	Interest Expense
Interest rate instruments				2	Equity Earnings, Before Income Tax
Total Before Income Tax				5
				(1)	Income Tax Expense
Net of Income Tax				4
				(2)	Earnings Attributable to Noncontrolling Interests
			$	2
Amortization of defined benefit pension
and postretirement benefits items:
	Actuarial loss		$	5	(1)
				(2)	Income Tax Expense
Net of Income Tax			$	3
SDG&E:
Financial instruments:
Interest rate instruments			$	2	Interest Expense
				(2)	Earnings Attributable to Noncontrolling Interest
			$	―
(1)	Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).

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 March 31,
			2013						2012
			Sempra						Sempra
			Energy						Energy
			Share-		Non-				Share-		Non-
			holders'		controlling		Total		holders'		controlling		Total
			Equity		Interests		Equity		Equity		Interests		Equity
Sempra Energy Consolidated:
	Other comprehensive income before
		reclassifications:
		Financial instruments	$	(7)	$	―	$	(7)	$	2	$	―	$	2
	Amounts reclassified from accumulated other
		comprehensive income:
		Pension and other postretirement benefits	$	2	$	―	$	2	$	1	$	―	$	1
		Financial instruments		1		―		1		1		―		1

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, 2012	$	10,282	$	401	$	10,683
Comprehensive income (loss)		179		(3)		176
Preferred dividends of subsidiaries		(2)		―		(2)
Share-based compensation expense		10		―		10
Common stock dividends declared		(153)		―		(153)
Issuance of common stock		15		―		15
Repurchase of common stock		(45)		―		(45)
Tax benefit related to share-based compensation		2		―		2
Sale of noncontrolling interests, net of offering costs		135		439		574
Equity contributed by noncontrolling interest		―		4		4
Distributions to noncontrolling interests		―		(3)		(3)
Balance at March 31, 2013	$	10,423	$	838	$	11,261
Balance at December 31, 2011	$	9,775	$	403	$	10,178
Comprehensive income		309		17		326
Preferred dividends of subsidiaries		(2)		―		(2)
Share-based compensation expense		11		―		11
Common stock dividends declared		(144)		―		(144)
Issuance of common stock		13		―		13
Repurchase of common stock		(16)		―		(16)
Common stock released from ESOP		6		―		6
Distributions to noncontrolling interests		―		(2)		(2)
Balance at March 31, 2012	$	9,952	$	418	$	10,370

SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST
(Dollars in millions)
		SDG&E		Non-
		Shareholder’s		controlling		Total
		Equity		Interest		Equity
Balance at December 31, 2012	$	4,222	$	76	$	4,298
Comprehensive income (loss)		92		(8)		84
Preferred stock dividends declared		(1)		―		(1)
Equity contributed by noncontrolling interest		―		4		4
Balance at March 31, 2013	$	4,313	$	72	$	4,385
Balance at December 31, 2011	$	3,739	$	102	$	3,841
Comprehensive income		106		6		112
Preferred stock dividends declared		(1)		―		(1)
Balance at March 31, 2012	$	3,844	$	108	$	3,952

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)
		March 31,		December 31,
		2013		2012
SDG&E
Current:
Due from SoCalGas		$	―	$	37
Due from various affiliates			1		2
		$	1	$	39
Due to Sempra Energy		$	24	$	19
Due to SoCalGas			11		―
		$	35	$	19
Income taxes due (to) from Sempra Energy(1)		$	(7)	$	12
SoCalGas
Current:
Due from Sempra Energy		$	265	$	24
Due from SDG&E			11		―
		$	276	$	24
Due to SDG&E		$	―	$	37
Income taxes due from Sempra Energy(1)		$	93	$	99
(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 SDG&E and SoCalGas Table

REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
	Three months ended March 31,
	2013		2012
SDG&E	$	2	$	2
SoCalGas		15		15

Other Income and Expense Table

OTHER INCOME, NET
(Dollars in millions)
		Three months ended March 31,
		2013		2012
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	15	$	35
Investment gains(1)			10		19
Gains on interest rate and foreign exchange instruments, net			7		11
Regulatory interest, net(2)			1		1
Sundry, net			4		9
Total		$	37	$	75
SDG&E:
Allowance for equity funds used during construction		$	10	$	29
Regulatory interest, net(2)			1		1
Total		$	11	$	30
SoCalGas:
Allowance for equity funds used during construction		$	5	$	6
Sundry, net			(1)		(2)
Total		$	4	$	4
(1)	Represents investment 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)	Interest on regulatory balancing accounts.

Income Tax Expense and Effective Income Tax Rates Table

INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
		Three months ended March 31,
	2013					2012
			Effective				Effective
		Income Tax	Income			Income Tax	Income
		Expense	Tax Rate			Expense	Tax Rate
Sempra Energy Consolidated	$	178	51	%	$	117	33	%
SDG&E		51	39			60	35
SoCalGas		24	34			40	38

Variable Interest Entity Table

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended March 31,
	2013		2012
Operating revenues
Electric	$	(1)	$	―
Natural gas		―		―
Total operating revenues		(1)		―
Operating expenses
Cost of electric fuel and purchased power		(17)		(19)
Operation and maintenance		17		4
Depreciation and amortization		7		6
Total operating expenses		7		(9)
Operating (loss) income		(8)		9
Interest expense		(3)		(3)
(Loss) income before income taxes/Net (loss) income		(11)		6
Losses (earnings) attributable to noncontrolling interest		11		(6)
Earnings	$	―	$	―

Ownership Interests Held By Others Table

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent Ownership Held by Others			March 31, 2013		December 31, 2012
SDG&E:
Otay Mesa VIE (at SDG&E)	100	%	$	72	$	76
Sempra South American Utilities:
Chilquinta Energía subsidiaries	24.4 – 43.4			30		29
Luz del Sur	20.2			237		236
Tecsur	9.8			4		4
Sempra Mexico:
IEnova, S.A.B. de C.V.	18.9			439		―
Sempra Natural Gas:
Bay Gas Storage, Ltd.	9.1			20		20
Liberty Gas Storage, LLC	25.0			15		15
Southern Gas Transmission Company	49.0			1		1
Total Sempra Energy			$	818	$	381

Schedule of Inventory

INVENTORY BALANCES
(Dollars in millions)
	Natural Gas				Liquefied Natural Gas				Materials and Supplies				Total
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
SDG&E	$	1	$	3	$	―	$	―	$	80	$	79	$	81	$	82
SoCalGas		8		128		―		―		26		23		34		151
Sempra South American
Utilities		―		―		―		―		38		34		38		34
Sempra Mexico		―		―		7		8		12		8		19		16
Sempra Renewables		―		―		―		―		3		3		3		3
Sempra Natural Gas		84		109		6		8		5		5		95		122
Sempra Energy Consolidated	$	93	$	240	$	13	$	16	$	164	$	152	$	270	$	408