SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2014		2013		2012

Interest income	$	―	$	42	$	83
Interest expense		(235)		(239)		(247)
Operation and maintenance		(78)		(63)		(68)
Other income, net		50		41		66
Income tax benefits		133		117		145
Loss before equity in earnings of subsidiaries		(130)		(102)		(21)
Equity in earnings of subsidiaries, net of income taxes		1,291		1,103		880
Net income/earnings	$	1,161	$	1,001	$	859

Basic earnings per common share	$	4.72	$	4.10	$	3.56
Weighted-average number of shares outstanding (thousands)		245,891		243,863		241,347

Diluted earnings per common share	$	4.63	$	4.01	$	3.48
Weighted-average number of shares outstanding (thousands)		250,655		249,332		246,693
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in millions)
	Years ended December 31,
	Pretax		Income tax		Net-of-tax
	amount		benefit (expense)		amount
2014:
Net income	$	1,028	$	133	$	1,161
Other comprehensive loss:
Foreign currency translation adjustments		(193)		―		(193)
Pension and other postretirement benefits		(20)		8		(12)
Financial instruments		(106)		42		(64)
Total other comprehensive loss		(319)		50		(269)
Comprehensive income	$	709	$	183	$	892
2013:
Net income	$	884	$	117	$	1,001
Other comprehensive income:
Foreign currency translation adjustments		111		―		111
Pension and other postretirement benefits		47		(19)		28
Financial instruments		13		(4)		9
Total other comprehensive income		171		(23)		148
Comprehensive income	$	1,055	$	94	$	1,149
2012:
Net income	$	714	$	145	$	859
Other comprehensive income (loss):
Foreign currency translation adjustments		119		―		119
Pension and other postretirement benefits		(4)		2		(2)
Financial instruments		(6)		2		(4)
Total other comprehensive income		109		4		113
Comprehensive income	$	823	$	149	$	972
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	December 31,		December 31,
	2014		2013
Assets:
Cash and cash equivalents	$	3	$	6
Due from affiliates		101		132
Deferred income taxes		398		170
Other current assets		15		16
Total current assets		517		324

Investments in subsidiaries		14,557		13,866
Due from affiliates		174		802
Deferred income taxes		1,544		1,466
Other assets		631		555
Total assets	$	17,423	$	17,013

Liabilities and shareholders’ equity:
Current portion of long-term debt	$	―	$	800
Due to affiliates		338		273
Income taxes payable		93		64
Other current liabilities		271		276
Total current liabilities		702		1,413

Long-term debt		4,666		4,117
Due to affiliates		230		―
Other long-term liabilities		499		475
Shareholders’ equity		11,326		11,008
Total liabilities and shareholders’ equity	$	17,423	$	17,013
See Notes to Condensed Financial Information of Parent.

SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2014		2013		2012

Net cash used in operating activities	$	(260)	$	(131)	$	(809)

Dividends received from subsidiaries		300		50		250
Expenditures for property, plant and equipment		(15)		(1)		(1)
Purchase of trust assets		(4)		(5)		(6)
Proceeds from sales by trust		―		10		10
Capital contribution to subsidiaries		―		(6)		―
Decrease (increase) in loans to affiliates, net		627		962		(33)
Cash provided by investing activities		908		1,010		220

Common stock dividends paid		(598)		(606)		(550)
Issuances of common stock		56		62		78
Repurchases of common stock		(38)		(45)		(16)
Issuances of long-term debt		499		498		1,100
Payments on long-term debt		(800)		(650)		(8)
Increase (decrease) in loans from affiliates, net		234		(147)		―
Other		(4)		(3)		(8)
Cash (used in) provided by financing activities		(651)		(891)		596

(Decrease) increase in cash and cash equivalents		(3)		(12)		7
Cash and cash equivalents, January 1		6		18		11
Cash and cash equivalents, December 31	$	3	$	6	$	18
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.

Other Income, Net, on the Condensed Statements of Operations includes $27 million, $39 million and $41 million of gains on dedicated assets in support of our executive retirement and deferred compensation plans in 2014, 2013 and 2012, 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

The following table shows the detail and maturities of long-term debt outstanding:

LONG-TERM DEBT
(Dollars in millions)
	December 31,		December 31,
	2014		2013

2% Notes March 15, 2014	$	―	$	500
Notes at variable rates (1.01% at December 31, 2013) March 15, 2014		―		300
6.5% Notes June 1, 2016, including $300 at variable rates after
fixed-to-floating rate swaps effective January 2011 (4.44% at December 31, 2014)		750		750
2.3% Notes April 1, 2017		600		600
6.15% Notes June 15, 2018		500		500
9.8% Notes February 15, 2019		500		500
2.875% Notes October 1, 2022		500		500
4.05% Notes December 1, 2023		500		500
3.55% Notes June 15, 2024		500		―
6% Notes October 15, 2039		750		750
Market value adjustments for interest rate swaps, net		―		12
Build-to-suit lease		75		14
		4,675		4,926
Current portion of long-term debt		―		(800)
Unamortized discount on long-term debt		(9)		(9)
Total long-term debt	$	4,666	$	4,117

Maturities of long-term debt are $750 million in 2016, $600 million in 2017, $500 million in 2018, $500 million in 2019 and $2.3 billion thereafter.

Additional information on Sempra Energy’s long-term debt is provided in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.

Note 3. Commitments and Contingencies

For contingencies and guarantees related to Sempra Energy, refer to Notes 4, 5 and 15 of the Notes to Consolidated Financial Statements in the Annual Report.