XML 48 R21.htm IDEA: XBRL DOCUMENT

OTHER FINANCIAL DATA (Tables)

3 Months Ended

Mar. 31, 2016

NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits				Other postretirement benefits
	Three months ended March 31,
	2016		2015		2016		2015
Service cost	$	28	$	30	$	5	$	7
Interest cost		40		39		11		12
Expected return on assets		(42)		(44)		(17)		(17)
Amortization of:
Prior service cost (credit)		3		3		―		(1)
Actuarial loss		6		8		―		―
Regulatory adjustment		(28)		(29)		2		―
Total net periodic benefit cost	$	7	$	7	$	1	$	1

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension benefits				Other postretirement benefits
	Three months ended March 31,
	2016		2015		2016		2015
Service cost	$	7	$	8	$	1	$	2
Interest cost		10		10		2		2
Expected return on assets		(12)		(14)		(3)		(3)
Amortization of:
Prior service cost		―		―		1		1
Actuarial loss		3		2		―		―
Regulatory adjustment		(7)		(5)		(1)		(2)
Total net periodic benefit cost	$	1	$	1	$	―	$	―

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension benefits				Other postretirement benefits
	Three months ended March 31,
	2016		2015		2016		2015
Service cost	$	17	$	19	$	4	$	5
Interest cost		25		25		8		9
Expected return on assets		(25)		(27)		(14)		(14)
Amortization of:
Prior service cost (credit)		2		2		(1)		(2)
Actuarial loss		3		5		―		―
Regulatory adjustment		(21)		(24)		3		2
Total net periodic benefit cost	$	1	$	―	$	―	$	―

Contributions to Benefit Plans Table

BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
	Sempra Energy
	Consolidated		SDG&E		SoCalGas
Contributions through March 31, 2016:
Pension plans	$	15	$	2	$	―
Other postretirement benefit plans		1		―		―
Total expected contributions in 2016:
Pension plans	$	123	$	4	$	77
Other postretirement benefit plans		6		2		1

Earnings Per Share Computations Table

EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
		Three months ended March 31,
		2016		2015
Numerator:
Earnings/Income attributable to common shares		$	319	$	437

Denominator:
Weighted-average common shares
	outstanding for basic EPS(1)		249,734		247,722
Dilutive effect of stock options, restricted
	stock awards and restricted stock units		1,678		3,484
Weighted-average common shares
	outstanding for diluted EPS		251,412		251,206

Earnings per share:
Basic		$	1.28	$	1.76
Diluted		$	1.27	$	1.74
(1)	Includes 555 and 452 average fully vested restricted stock units held in our Deferred Compensation Plan for the three months ended March 31, 2016 and 2015, respectively. These fully vested restricted stock units are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued.

Capitalized Financing Costs Table

CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended March 31,
	2016		2015
Sempra Energy Consolidated:
AFUDC related to debt	$	7	$	6
AFUDC related to equity		27		27
Other capitalized interest		18		17
Total Sempra Energy Consolidated	$	52	$	50
SDG&E:
AFUDC related to debt	$	4	$	3
AFUDC related to equity		11		8
Total SDG&E	$	15	$	11
SoCalGas:
AFUDC related to debt	$	3	$	3
AFUDC related to equity		10		9
Total SoCalGas	$	13	$	12

Changes in Components of Accumulated Comprehensive Income Table

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
		Three months ended March 31, 2016 and 2015
		Foreign						Total
		currency				Pension and other		accumulated other
		translation		Financial		postretirement		comprehensive
		adjustments		instruments		benefits		income (loss)
2016:
Balance as of December 31, 2015		$	(582)	$	(137)	$	(87)	$	(806)
Other comprehensive income (loss) before
reclassifications			68		(82)		―		(14)
Amounts reclassified from accumulated other
comprehensive income			―		(2)		1		(1)
Net other comprehensive income (loss)			68		(84)		1		(15)
Balance as of March 31, 2016		$	(514)	$	(221)	$	(86)	$	(821)
2015:
Balance as of December 31, 2014		$	(322)	$	(90)	$	(85)	$	(497)
Other comprehensive loss before
reclassifications			(62)		(54)		―		(116)
Amounts reclassified from accumulated other
comprehensive income			―		(1)		1		―
Net other comprehensive (loss) income			(62)		(55)		1		(116)
Balance as of March 31, 2015		$	(384)	$	(145)	$	(84)	$	(613)
(1)	All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

Reclassifications out of AOCI Table

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
		Amounts reclassified
Details about accumulated		from accumulated other				Affected line item on Condensed
other comprehensive income (loss) components		comprehensive income (loss)				Consolidated Statements of Operations
		Three months ended March 31,
		2016		2015
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments		$	4	$	6	Interest Expense
Interest rate instruments			3		3	Equity (Losses) Earnings, Before Income Tax
Interest rate and foreign exchange instruments			1		―	Equity Earnings, Net of Income Tax
Commodity contracts not subject
	to rate recovery		(7)		(7)	Revenues: Energy-Related Businesses
Total before income tax			1		2
			―		1	Income Tax Expense
Net of income tax			1		3
			(3)		(4)	Earnings Attributable to Noncontrolling Interests
		$	(2)	$	(1)

Pension and other postretirement benefits:
Amortization of actuarial loss		$	2	$	2	See note (1) below
			(1)		(1)	Income Tax Expense
Net of income tax		$	1	$	1

Total reclassifications for the period, net of tax		$	(1)	$	―
SDG&E:
Financial instruments:
Interest rate instruments		$	3	$	3	Interest Expense
			(3)		(3)	Earnings Attributable to Noncontrolling Interest
Total reclassifications for the period		$	―	$	―
(1)	Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).

Shareholders' Equity and Noncontrolling Interests Table

SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
			Sempra Energy		Non-
			shareholders’		controlling		Total
			equity		interests(1)		equity
Balance at December 31, 2015		$	11,809	$	770	$	12,579
Comprehensive income			304		11		315
Share-based compensation expense			13		―		13
Common stock dividends declared			(188)		―		(188)
Issuances of common stock			28		―		28
Repurchases of common stock			(54)		―		(54)
Tax benefit related to share-based compensation			34		―		34
Distributions to noncontrolling interests			―		(3)		(3)
Balance at March 31, 2016		$	11,946	$	778	$	12,724
Balance at December 31, 2014		$	11,326	$	774	$	12,100
Comprehensive income			321		8		329
Share-based compensation expense			13		―		13
Common stock dividends declared			(173)		―		(173)
Issuances of common stock			30		―		30
Repurchases of common stock			(65)		―		(65)
Tax benefit related to share-based compensation			52		―		52
Distributions to noncontrolling interests			―		(5)		(5)
Balance at March 31, 2015		$	11,504	$	777	$	12,281
(1)	Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under "Other Noncontrolling Interests."

SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST – SDG&E
(Dollars in millions)
		SDG&E		Non-
		shareholder’s		controlling		Total
		equity		interest		equity
Balance at December 31, 2015	$	5,223	$	53	$	5,276
Comprehensive income (loss)		129		(1)		128
Distributions to noncontrolling interest		―		(1)		(1)
Balance at March 31, 2016	$	5,352	$	51	$	5,403
Balance at December 31, 2014	$	4,932	$	60	$	4,992
Comprehensive income		147		2		149
Distributions to noncontrolling interest		―		(3)		(3)
Balance at March 31, 2015	$	5,079	$	59	$	5,138

Amounts Due To and From Affiliates at SDG&E and SoCalGas Table

AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
		March 31, 2016		December 31, 2015
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates - current		$	7	$	6

Sempra South American Utilities(1):
Eletrans S.A. and Eletrans II S.A.:
4% Note(2)		$	76	$	72
Other related party receivables			1		―
Sempra Mexico(1):
Affiliate of joint venture with PEMEX:
Note due November 13, 2017(3)			3		3
Note due November 14, 2018(3)			42		42
Note due November 14, 2018(3)			34		34
Note due November 14, 2018(3)			8		8
Energía Sierra Juárez:
Note due June 15, 2018(4)			17		24
Sempra Natural Gas:
Cameron LNG JV			5		3
Total due from unconsolidated affiliates - noncurrent		$	186	$	186

Total due to various unconsolidated affiliates - current		$	(13)	$	(14)
SDG&E:
Total due from various unconsolidated affiliates - current		$	1	$	1

Sempra Energy		$	(35)	$	(34)
SoCalGas			(8)		(13)
Affiliate			(6)		(8)
Total due to unconsolidated affiliates - current		$	(49)	$	(55)

Income taxes due (to) from Sempra Energy(5)		$	(32)	$	28
SoCalGas:
Sempra Energy(6)		$	―	$	35
SDG&E			8		13
Total due from unconsolidated affiliates - current		$	8	$	48

Sempra Energy		$	(34)	$	―
Total due to unconsolidated affiliate - current		$	(34)	$	―

Income taxes due (to) from Sempra Energy(5)		$	(23)	$	1
(1)	Amounts include principal balances plus accumulated interest outstanding.
(2)	U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans S.A. and Eletrans II S.A., both of which are joint ventures at Chilquinta Energía.
(3)	U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (4.94 percent at March 31, 2016), to finance the Los Ramones Norte pipeline project.
(4)	U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.81 percent at March 31, 2016), to finance the first phase of the Energía Sierra Juárez wind project.
(5)	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 each company having always filed a separate return.
(6)	At December 31, 2015, net receivable included outstanding advances to Sempra Energy of $50 million at an interest rate of 0.11 percent.

Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table

REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Three months ended March 31,
	2016		2015
REVENUES
Sempra Energy Consolidated	$	5	$	8
SDG&E		3		3
SoCalGas		17		19
COST OF SALES
Sempra Energy Consolidated	$	30	$	19
SDG&E		14		5

Other Income and Expense Table

OTHER INCOME, NET
(Dollars in millions)
		Three months ended March 31,
		2016		2015
Sempra Energy Consolidated:
Allowance for equity funds used during construction		$	27	$	27
Investment gains(1)			10		9
Electrical infrastructure relocation income(2)			1		―
Gains on interest rate and foreign exchange instruments, net			3		―
Sale of other investments			1		―
Foreign currency transaction losses			(2)		(1)
Regulatory interest, net(3)			2		1
Sundry, net			7		3
Total		$	49	$	39
SDG&E:
Allowance for equity funds used during construction		$	11	$	8
Regulatory interest, net(3)			2		1
Sundry, net			1		―
Total		$	14	$	9
SoCalGas:
Allowance for equity funds used during construction		$	10	$	9
Sundry, net			―		(1)
Total		$	10	$	8
(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)	Income at Luz del Sur associated with the relocation of electrical infrastructure.
(3)	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)
			Effective				Effective
		Income tax	income			Income tax	income
		expense	tax rate			expense	tax rate
		Three months ended March 31,
		2016				2015
Sempra Energy Consolidated	$	142	31	%	$	163	27	%
SDG&E		72	36			88	37
SoCalGas		87	31			95	31

Variable Interest Entity Table

AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	Three months ended March 31,
	2016		2015
Operating expenses
Cost of electric fuel and purchased power	$	(17)	$	(18)
Operation and maintenance		4		4
Depreciation and amortization		7		6
Total operating expenses		(6)		(8)
Operating income		6		8
Interest expense		(5)		(4)
Income before income taxes/Net income		1		4
Earnings attributable to noncontrolling interest		(1)		(4)
Earnings attributable to common shares	$	―	$	―

Ownership Interests Held By Others Table

OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
		Percent ownership held by others
		March 31,		December 31,			March 31,		December 31,
		2016		2015			2016		2015
SDG&E:
Otay Mesa VIE		100	%	100	%	$	51	$	53
Sempra South American Utilities:
Chilquinta Energía subsidiaries(1)		23.5 – 43.4		23.5 – 43.4			22		21
Luz del Sur		16.4		16.4			171		164
Tecsur		9.8		9.8			4		4
Sempra Mexico:
IEnova		18.9		18.9			470		468
Sempra Natural Gas:
Bay Gas Storage Company, Ltd.		9.1		9.1			25		25
Liberty Gas Storage, LLC		23.2		23.2			14		14
Southern Gas Transmission Company		49.0		49.0			1		1
Total Sempra Energy						$	758	$	750
(1)	Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

Inventory Table

INVENTORY BALANCES
(Dollars in millions)
		Natural gas				Liquefied natural gas				Materials and supplies				Total
		March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
SDG&E		$	3	$	6	$	―	$	―	$	69	$	69	$	72	$	75
SoCalGas(1)			―		49		―		―		33		30		33		79
Sempra South American
Utilities			―		―		―		―		37		30		37		30
Sempra Mexico			―		―		6		3		2		10		8		13
Sempra Renewables			―		―		―		―		3		3		3		3
Sempra Natural Gas			74		94		3		3		1		1		78		98
Sempra Energy
Consolidated		$	77	$	149	$	9	$	6	$	145	$	143	$	231	$	298
(1)	At both March 31, 2016 and December 31, 2015, SoCalGas' natural gas inventory for core customers is net of the estimated inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 11.