ACQUISITION AND DIVESTITURE ACTIVITY (Tables)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Schedule of Business Acquisition Table

The following table summarizes the total fair value of the business combination and the values of the assets acquired and liabilities assumed at the date of acquisition:

PURCHASE PRICE ALLOCATION – GdC
(Dollars in millions)
		September 26, 2016
Fair value of business combination:
Cash consideration (fair value of total consideration)		$	1,144
Fair value of equity interest in GdC immediately prior to acquisition		1,144
Total fair value of business combination		$	2,288
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		$	66
Accounts receivable(1)		39
Other current assets		6
Property, plant and equipment		1,248
Other noncurrent assets		1
Accounts payable		(11		)
Due to unconsolidated affiliates		(3		)
Current portion of long-term debt		(49		)
Fixed-price contracts and other derivatives, current		(6		)
Other current liabilities		(20		)
Long-term debt		(315		)
Asset retirement obligations		(5		)
Deferred income taxes		(8		)
Fixed-price contracts and other derivatives, noncurrent		(19		)
Other noncurrent liabilities		(11		)
Total identifiable net assets		913
Goodwill		1,375
Total fair value of business combination		$	2,288
(1)	We expect acquired accounts receivable to be substantially realizable in cash. Accounts receivable are net of negligible collection allowances.

Schedule of Pro Forma Information Table

The following table presents the pro forma results for the three months and nine months ended September 30, 2016 and 2015. The pro forma financial information combines the historical results of operations of Sempra Energy and GdC as though the acquisition occurred on January 1, 2015. The pro forma information is not necessarily indicative of results that would have been achieved had the business been combined during the periods presented or the results that we will experience going forward.

PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Revenues	$	2,608	$	2,545	$	7,529	$	7,708
Net income	308		308		744		1,550
Earnings	299		255		685		1,280

Schedule of Assets Held for Sale and Deconsolidation of Subsidiary Table

The following table summarizes the deconsolidation:

DECONSOLIDATION OF SUBSIDIARY
(Dollars in millions)
		EnergySouth Inc.
Proceeds from sale, net of transaction costs		$	304
Cash		(2		)
Inventory		(3		)
Other current assets		(14		)
Regulatory assets		(12		)
Goodwill		(72		)
Other assets		(53		)
Property, plant and equipment, net		(199		)
Accounts payable		12
Other current liabilities		13
Long-term debt		67
Deferred income taxes		36
Regulatory liabilities		23
Asset retirement obligations		12
Other liabilities		18
Gain on sale of business(1)		$	130
(1)	Included in Gain on Sale of Assets on Sempra Energy’s Condensed Consolidated Statements of Operations.

At September 30, 2016, the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows:

ASSETS HELD FOR SALE AT SEPTEMBER 30, 2016
(Dollars in millions)
	Termoeléctrica de Mexicali
Cash and cash equivalents	$	1
Inventories	8
Other current assets	25
Deferred income taxes	5
Other assets	22
Property, plant and equipment, net	120
Total assets held for sale	$	181
Accounts payable	$	1
Other current liabilities	7
Asset retirement obligations	4
Other liabilities	23
Total liabilities held for sale	$	35