XML 83 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER FINANCIAL DATA (Tables)
3 Months Ended
Jun. 30, 2012
Other Financial Data (Tables) [Abstract]  
Goodwill Table
GOODWILL        
(Dollars in millions)        
   Sempra      
   South American Sempra Sempra  
   Utilities Mexico Natural Gas Total
Balance as of December 31, 2011$ 949$ 25$ 62$ 1,036
Foreign currency translation(1)  21    21
Acquisition of subsidiary    10  10
Balance at June 30, 2012$ 970$ 25$ 72$ 1,067
(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 BenefitsOther Postretirement Benefits
 Three months ended June 30,Three months ended June 30,
 2012201120122011
Service cost$ 22$ 21$ 7$ 8
Interest cost  41  42  14  16
Expected return on assets  (39)  (36)  (14)  (12)
Amortization of:        
Prior service cost (credit)  1  1  (2) 
Actuarial loss  11  9  4  5
Settlement  7  10  
Regulatory adjustment  12  4  2  2
Total net periodic benefit cost$ 55$ 51$ 11$ 19
 Six months ended June 30,Six months ended June 30,
 2012201120122011
Service cost$ 45$ 43$ 15$ 15
Interest cost  82  85  28  33
Expected return on assets  (78)  (73)  (27)  (24)
Amortization of:        
Prior service cost (credit)  2  2  (2) 
Actuarial loss  23  18  7  9
Settlement  7  10  
Regulatory adjustment  (18)  (25)  5  4
Total net periodic benefit cost$ 63$ 60$ 26$ 37

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended June 30,Three months ended June 30,
 2012201120122011
Service cost$ 7$ 8$ 2$ 2
Interest cost  11  12  2  3
Expected return on assets  (12)  (13)  (3)  (2)
Amortization of:        
Prior service cost   1   1  1
Actuarial loss  3  3  
Settlement  2  1  
Regulatory adjustment  10  7  1 
Total net periodic benefit cost$ 22$ 18$ 3$ 4
 Six months ended June 30,Six months ended June 30,
 2012201120122011
Service cost$ 14$ 15$ 4$ 4
Interest cost  23  25  4  5
Expected return on assets  (24)  (25)  (4)  (4)
Amortization of:        
Prior service cost   1  1  2  2
Actuarial loss  7  5  
Settlement  2  1  
Regulatory adjustment   (2)  1  1
Total net periodic benefit cost$ 23$ 20$ 7$ 8

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended June 30,Three months ended June 30,
 2012201120122011
Service cost$ 14$ 12$ 5$ 5
Interest cost  25  25  11  14
Expected return on assets  (25)  (21)  (12)  (10)
Amortization of:        
Prior service credit    (3)  (1)
Actuarial loss  5  4  4  4
Settlement  1  1  
Regulatory adjustment  2  (3)  1  2
Total net periodic benefit cost$ 22$ 18$ 6$ 14
 Six months ended June 30,Six months ended June 30,
 2012201120122011
Service cost$ 27$ 24$ 10$ 10
Interest cost  50  50  22  27
Expected return on assets  (49)  (43)  (23)  (20)
Amortization of:        
Prior service cost (credit)  1  1  (4)  (2)
Actuarial loss  11  8  7  9
Settlement  1  1  
Regulatory adjustment  (18)  (23)  4  3
Total net periodic benefit cost$ 23$ 18$ 16$ 27
Contributions to Benefit Plans Table
 Sempra Energy  
(Dollars in millions)ConsolidatedSDG&ESoCalGas
Contributions through June 30, 2012:      
Pension plans$ 70$ 20$ 24
Other postretirement benefit plans  25  8  16
Total expected contributions in 2012:      
Pension plans$ 218$ 67$ 113
Other postretirement benefit plans  46  14  27
Earnings Per Share Computations Table
EARNINGS PER SHARE COMPUTATIONS     
(Dollars in millions, except per share amounts; shares in thousands)     
  Three months ended June 30, Six months ended June 30,
  20122011(1) 20122011(1)
Numerator:         
Earnings/Income attributable to common shareholders$ 62$ 503 $ 298$ 757
          
Denominator:         
Weighted-average common shares          
outstanding for basic EPS  241,141  239,415   240,853  239,769
Dilutive effect of stock options, restricted         
stock awards and restricted stock units  5,119  1,346   4,913  1,385
Weighted-average common shares          
outstanding for diluted EPS  246,260  240,761   245,766  241,154
          
Earnings per share:         
Basic$ 0.26$ 2.10 $ 1.24$ 3.16
Diluted$ 0.25$ 2.09 $ 1.21$ 3.14
(1)As adjusted for the retrospective effect of a change in accounting principle as we discuss in Note 1.     
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 Above1.5
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 units 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 June 30,Six months ended June 30,
 2012201120122011
Sempra Energy Consolidated:        
AFUDC related to debt$ 13$ 9$ 27$ 17
AFUDC related to equity  32  22  67  41
Other capitalized financing costs  16  8  27  14
Total Sempra Energy Consolidated$ 61$ 39$ 121$ 72
SDG&E:        
AFUDC related to debt$ 11$ 8$ 23$ 14
AFUDC related to equity  26  18  55  33
Total SDG&E$ 37$ 26$ 78$ 47
SoCalGas:        
AFUDC related to debt$ 2$ 1$ 4$ 3
AFUDC related to equity  6  4  12  8
Total SoCalGas$ 8$ 5$ 16$ 11
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 June 30,
  2012 2011
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Net actuarial gain$ 2$$ 2 $ 3$$ 3
Financial instruments  (7)   (7)   (1)   (1)
SoCalGas:             
Financial instruments$$$ $ 1$$ 1
               
  Six months ended June 30,
  2012 2011
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Net actuarial gain$ 3$$ 3 $ 4$$ 4
Financial instruments  (4)   (4)    
SoCalGas:             
Financial instruments$$$ $ 1$$ 1
(1)Shareholders equity of Sempra Energy Consolidated or SoCalGas as indicated in left margin.  
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, 2011$ 9,775$ 403$ 10,178
Comprehensive income  334  18  352
Preferred dividends of subsidiaries  (3)   (3)
Share-based compensation expense  24   24
Common stock dividends declared  (289)   (289)
Issuance of common stock  45   45
Repurchase of common stock  (16)   (16)
Common stock released from ESOP  9   9
Equity contributed by noncontrolling interest   3  3
Distributions to noncontrolling interests   (10)  (10)
Balance at June 30, 2012$ 9,879$ 414$ 10,293
Balance at December 31, 2010$ 8,990$ 211$ 9,201
Comprehensive income (loss)  734  (11)  723
Preferred dividends of subsidiaries  (5)   (5)
Share-based compensation expense  24   24
Common stock dividends declared  (230)   (230)
Issuance of common stock  19   19
Tax benefit related to share-based compensation  5   5
Repurchase of common stock  (18)   (18)
Common stock released from ESOP  11   11
Distributions to noncontrolling interests   (6)  (6)
Acquisition of South American entities   279  279
Redemption of preferred stock of subsidiary   (80)  (80)
Balance at June 30, 2011$ 9,530$ 393$ 9,923

SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST
(Dollars in millions)
  SDG&E Non-  
  Shareholder’s controlling Total
  Equity Interest Equity
Balance at December 31, 2011$ 3,739$ 102$ 3,841
Comprehensive income  202  2  204
Preferred stock dividends declared  (2)   (2)
Distributions to noncontrolling interest   (1)  (1)
Balance at June 30, 2012$ 3,939$ 103$ 4,042
Balance at December 31, 2010$ 3,108$ 113$ 3,221
Comprehensive income (loss)  162  (24)  138
Preferred stock dividends declared  (2)   (2)
Capital contribution  200   200
Balance at June 30, 2011$ 3,468$ 89$ 3,557
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)
  June 30, December 31,
 2012 2011
SDG&E     
Current:     
Due from SoCalGas$ $ 2
Due from various affiliates  1   65
 $ 1 $ 67
       
Due to Sempra Energy$16 $ 14
Due to SoCalGas 3  
 $ 19 $ 14
       
Income taxes due from Sempra Energy(1)$ 208 $ 97
      
SoCalGas     
Current:     
Due from Sempra Energy$ 293 $ 23
Due from SDG&E  3  
Due from various affiliates  1   17
  $ 297 $ 40
      
Due to SDG&E$ $ 2
       
Income taxes due from Sempra Energy(1)$ 38 $ 17
(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 June 30,Six months ended June 30,
 2012201120122011
SDG&E$ 2$ 1$ 4$ 3
SoCalGas  16  12  31  25
Amounts Recorded For Transactions with RBS Sempra Commodities Table
AMOUNTS RECORDED FOR TRANSACTIONS WITH RBS SEMPRA COMMODITIES
(Dollars in millions)
   Three months ended June 30, 2011(1)Six months ended June 30, 2011(1)
Revenues:      
Sempra Mexico$  4$  37
Sempra Natural Gas   (5)   7
         
Cost of natural gas:      
Sempra Mexico$  13$  71
Sempra Natural Gas     3
(1)With the exception of Sempra Mexico, whose contract with RBS Sempra Commodities expired in July 2011, amounts only include activities prior to May 1, 2011, the date by which substantially all the contracts with RBS Sempra Commodities were assigned to buyers of the joint venture businesses.
Other Income and Expense Table
OTHER INCOME, NET
(Dollars in millions)
  Three months ended June 30,Six months ended June 30,
  2012201120122011
Sempra Energy Consolidated:        
Allowance for equity funds used during construction$ 32$ 22$ 67$ 41
Investment (losses) gains(1)  (9)  11  10  19
(Losses) gains on interest rate and foreign exchange instruments, net  (1)  2  10  12
Regulatory interest, net(2)   1  1  1
Sundry, net  (4)  (5)  5  1
Total$ 18$ 31$ 93$ 74
SDG&E:        
Allowance for equity funds used during construction$ 26$ 18$ 55$ 33
Regulatory interest, net(2)   1  1  1
Sundry, net  (2)  (6)  (2)  (5)
Total$ 24$ 13$ 54$ 29
SoCalGas:        
Allowance for equity funds used during construction$ 6$ 4$ 12$ 8
Sundry, net  (2)  (1)  (4)  (2)
Total $ 4$ 3$ 8$ 6
(1)Represents investment (losses) 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 (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
   Three months ended June 30,
   2012 2011
   Income Tax Effective     Effective 
   Expense  Income  Income Tax   Income 
   (Benefit) Tax Rate  Expense Tax Rate 
Sempra Energy Consolidated$ (118)  227%$ 100  17%
SDG&E  53  34   42  44 
SoCalGas  28  34   28  32 
   Six months ended June 30,
  2012 2011
   Income Tax Effective    Effective  
   Expense   Income  Income Tax  Income 
   (Benefit) Tax Rate  Expense Tax Rate 
Sempra Energy Consolidated$ (1) %$ 214  23%
SDG&E  113  35   91  38 
SoCalGas  68  36   65  34 
Variable Interest Entity Table
AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
 Three months ended June 30,Six months ended June 30,
 2012201120122011
         
Operating revenues         
Electric$$$$
Natural gas     
Total operating revenues    
Operating expenses        
Cost of electric fuel and purchased power  (21)  (9)  (40)  (26)
Operation and maintenance  7  18  11  22
Depreciation and amortization  6  7  12  13
Total operating expenses  (8)  16  (17)  9
Operating income (loss)   8  (16)  17  (9)
Other income (expense), net  (1)  (4)  (1)  (4)
Interest (expense) income  (2)  1  (5)  (2)
Income (loss) before income taxes/Net income (loss)  5  (19)  11  (15)
(Earnings) losses attributable to noncontrolling interest  (5)  19  (11)  15
Earnings$$$$
Ownership Interests Held By Others Table
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)  
  Percent Ownership Held by Others  June 30, 2012 December 31, 2011
Bay Gas Storage, Ltd.(1)9%$ 19$ 17
Southern Gas Transmission Company(1)49   1  1
Liberty Gas Storage, LLC(1)25   10  9
Tecsur10   3  4
Luz del Sur20   224  216
Chilquinta Energía subsidiaries15 - 43   34  34
Otay Mesa VIE (at SDG&E)100   103  102
Total Sempra Energy  $ 394$ 383
(1)Part of Sempra Natural Gas.