XML 82 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER FINANCIAL DATA (Tables)
 3 Months Ended
Sep. 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)  63  ―  ―  63
Acquisition of subsidiary  ―  ―  10  10
Balance at September 30, 2012$ 1,012$ 25$ 72$ 1,109
(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 September 30,Three months ended September 30,
 2012201120122011
Service cost$ 23$ 20$ 4$ 8
Interest cost  40  41  11  16
Expected return on assets  (38)  (36)  (13)  (12)
Amortization of:        
Prior service cost  ―  1  ―  ―
Actuarial loss  12  8  2  4
Settlement  1  1  ―  ―
Regulatory adjustment  9  31  3  2
Total net periodic benefit cost$ 47$ 66$ 7$ 18
 Nine months ended September 30,Nine months ended September 30,
 2012201120122011
Service cost$ 68$ 63$ 19$ 23
Interest cost  122  126  39  49
Expected return on assets  (116)  (109)  (40)  (36)
Amortization of:        
Prior service cost (credit)  2  3  (2)  ―
Actuarial loss  35  26  9  13
Settlement  8  11  ―  ―
Regulatory adjustment  (9)  6  8  6
Total net periodic benefit cost$ 110$ 126$ 33$ 55

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended September 30,Three months ended September 30,
 2012201120122011
Service cost$ 7$ 6$ 1$ 1
Interest cost  11  12  2  2
Expected return on assets  (11)  (10)  (1)  (1)
Amortization of:        
Prior service cost   ―  ―  1  1
Actuarial loss  4  2  ―  ―
Settlement  (1)  ―  ―  ―
Regulatory adjustment  7  15  1  1
Total net periodic benefit cost$ 17$ 25$ 4$ 4
 Nine months ended September 30,Nine months ended September 30,
 2012201120122011
Service cost$ 21$ 21$ 5$ 5
Interest cost  34  37  6  7
Expected return on assets  (35)  (35)  (5)  (5)
Amortization of:        
Prior service cost   1  1  3  3
Actuarial loss  11  7  ―  ―
Settlement  1  1  ―  ―
Regulatory adjustment  7  13  2  2
Total net periodic benefit cost$ 40$ 45$ 11$ 12

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 Pension BenefitsOther Postretirement Benefits
 Three months ended September 30,Three months ended September 30,
 2012201120122011
Service cost$ 13$ 10$ 2$ 7
Interest cost  24  24  9  12
Expected return on assets  (23)  (21)  (10)  (10)
Amortization of:        
Prior service cost (credit)  ―  1  (1)  (1)
Actuarial loss  6  4  1  4
Regulatory adjustment  2  16  2  1
Total net periodic benefit cost$ 22$ 34$ 3$ 13
 Nine months ended September 30,Nine months ended September 30,
 2012201120122011
Service cost$ 40$ 34$ 12$ 17
Interest cost  74  74  31  39
Expected return on assets  (72)  (64)  (33)  (30)
Amortization of:        
Prior service cost (credit)  1  2  (5)  (3)
Actuarial loss  17  12  8  13
Settlement  1  1  ―  ―
Regulatory adjustment  (16)  (7)  6  4
Total net periodic benefit cost$ 45$ 52$ 19$ 40
Contributions to Benefit Plans Table
 Sempra Energy  
(Dollars in millions)ConsolidatedSDG&ESoCalGas
Contributions through September 30, 2012:      
Pension plans$ 111$ 36$ 45
Other postretirement benefit plans  32  10  19
Total expected contributions in 2012:      
Pension plans$ 123$ 45$ 47
Other postretirement benefit plans  41  13  23
Earnings Per Share Computations Table
EARNINGS PER SHARE COMPUTATIONS     
(Dollars in millions, except per share amounts; shares in thousands)     
  Three months ended September 30, Nine months ended September 30,
  20122011(1) 20122011(1)
Numerator:         
Earnings/Income attributable to common shareholders$ 268$ 289 $ 566$ 1,046
          
Denominator:         
Weighted-average common shares          
outstanding for basic EPS  241,689  239,545   241,133  239,693
Dilutive effect of stock options, restricted         
stock awards and restricted stock units  4,113  2,335   3,880  2,262
Weighted-average common shares          
outstanding for diluted EPS  245,802  241,880   245,013  241,955
          
Earnings per share:         
Basic$ 1.11$ 1.21 $ 2.35$ 4.36
Diluted$ 1.09$ 1.20 $ 2.31$ 4.32
(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 September 30,Nine months ended September 30,
 2012201120122011
Sempra Energy Consolidated:        
AFUDC related to debt$ 5$ 10$ 32$ 27
AFUDC related to equity  13  26  80  67
Other capitalized financing costs  13  6  40  20
Total Sempra Energy Consolidated$ 31$ 42$ 152$ 114
SDG&E:        
AFUDC related to debt$ 3$ 8$ 26$ 22
AFUDC related to equity  6  21  61  54
Total SDG&E$ 9$ 29$ 87$ 76
SoCalGas:        
AFUDC related to debt$ 2$ 2$ 6$ 5
AFUDC related to equity  7  5  19  13
Total SoCalGas$ 9$ 7$ 25$ 18
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 September 30,
  2012 2011
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Foreign currency translation adjustments$ ―$ ―$ ― $ (1)$ ―$ (1)
Net actuarial (loss) gain  (7)  ―  (7)   1  ―  1
Financial instruments  (1)  ―  (1)   (11)  ―  (11)
SoCalGas:             
Financial instruments$ 1$ ―$ 1 $ ―$ ―$ ―
               
  Nine months ended September 30,
  2012 2011
  Share-Non-  Share-Non- 
  holders'controllingTotal holders'controllingTotal
  Equity(1)InterestsEquity Equity(1)InterestsEquity
Sempra Energy Consolidated:             
Foreign currency translation adjustments$ ―$ ―$ ― $ (1)$ ―$ (1)
Net actuarial (loss) gain  (4)  ―  (4)   5  ―  5
Financial instruments  (5)  ―  (5)   (11)  ―  (11)
SoCalGas:             
Financial instruments$ 1$ ―$ 1 $ 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  671  42  713
Preferred dividends of subsidiaries  (5)  ―  (5)
Share-based compensation expense  33  ―  33
Common stock dividends declared  (435)  ―  (435)
Issuance of common stock  50  ―  50
Repurchase of common stock  (16)  ―  (16)
Common stock released from ESOP  9  ―  9
Equity contributed by noncontrolling interest  ―  5  5
Distributions to noncontrolling interests  ―  (36)  (36)
Balance at September 30, 2012$ 10,082$ 414$ 10,496
Balance at December 31, 2010$ 8,990$ 211$ 9,201
Comprehensive income (loss)  879  (14)  865
Preferred dividends of subsidiaries  (6)  ―  (6)
Share-based compensation expense  36  ―  36
Common stock dividends declared  (346)  ―  (346)
Issuance of common stock  22  ―  22
Tax benefit related to share-based compensation  6  ―  6
Repurchase of common stock  (18)  ―  (18)
Common stock released from ESOP  15  ―  15
Distributions to noncontrolling interests  ―  (9)  (9)
Equity contributed by noncontrolling interest  ―  6  6
Acquisition of South American entities  ―  279  279
Purchase of noncontrolling interests in subsidiary  (4)  (39)  (43)
Redemption of preferred stock of subsidiary  ―  (80)  (80)
Balance at September 30, 2011$ 9,574$ 354$ 9,928

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  378  10  388
Preferred stock dividends declared  (4)  ―  (4)
Distributions to noncontrolling interest  ―  (22)  (22)
Balance at September 30, 2012$ 4,113$ 90$ 4,203
Balance at December 31, 2010$ 3,108$ 113$ 3,221
Comprehensive income (loss)  278  (28)  250
Preferred stock dividends declared  (4)  ―  (4)
Capital contribution  200  ―  200
Equity contributed by noncontrolling interest  ―  6  6
Balance at September 30, 2011$ 3,582$ 91$ 3,673
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)
  September 30, December 31,
 2012 2011
SDG&E     
Current:     
Due from SoCalGas$ 16 $ 2
Due from various affiliates  1   65
 $ 17 $ 67
       
Due to Sempra Energy$ 20 $ 14
       
Income taxes due from Sempra Energy(1)$ 149 $ 97
      
SoCalGas     
Current:     
Due from Sempra Energy$ 280 $ 23
Due from various affiliates  ―   17
  $ 280 $ 40
      
Due to SDG&E$ 16 $ 2
       
Income taxes due from Sempra Energy(1)$ 15 $ 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 September 30,Nine months ended September 30,
 2012201120122011
SDG&E$ 2$ 3$ 6$ 6
SoCalGas  17  13  48  38
Amounts Recorded For Transactions with RBS Sempra Commodities Table
AMOUNTS RECORDED FOR TRANSACTIONS WITH RBS SEMPRA COMMODITIES
(Dollars in millions)
   Three months ended September 30, 2011(1)Nine months ended September 30, 2011(1)
Revenues:      
Sempra Mexico$  ―$  37
Sempra Natural Gas   ―   7
         
Cost of natural gas:      
Sempra Mexico$  3$  74
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 September 30,Nine months ended September 30,
  2012201120122011
Sempra Energy Consolidated:        
Allowance for equity funds used during construction$ 13$ 26$ 80$ 67
Investment gains (losses)(1)  17  (6)  27  13
Gains (losses) on interest rate and foreign exchange instruments, net  1  (26)  11  (14)
Regulatory interest, net(2)  ―  ―  1  1
Sundry, net  13  18  18  19
Total$ 44$ 12$ 137$ 86
SDG&E:        
Allowance for equity funds used during construction$ 6$ 21$ 61$ 54
Regulatory interest, net(2)  ―  ―  1  1
Sundry, net  (1)  5  (3)  ―
Total$ 5$ 26$ 59$ 55
SoCalGas:        
Allowance for equity funds used during construction$ 7$ 5$ 19$ 13
Sundry, net  (1)  (2)  (5)  (4)
Total $ 6$ 3$ 14$ 9
(1)Represents investment gains (losses) 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 September 30,
  2012 2011
     Effective     Effective 
   Income Tax  Income  Income Tax   Income 
   Expense Tax Rate  Expense Tax Rate 
Sempra Energy Consolidated$ 49  15%$ 75  19%
SDG&E  38  17   63  32 
SoCalGas  37  34   41  34 
   Nine months ended September 30,
  2012 2011
     Effective    Effective  
   Income Tax   Income  Income Tax  Income 
   Expense Tax Rate  Expense Tax Rate 
Sempra Energy Consolidated$ 48  8%$ 289  22%
SDG&E  151  27   154  35 
SoCalGas  105  35   106  34 
Variable Interest Entity Table
AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
 Three months ended September 30,Nine months ended September 30,
 2012201120122011
         
Operating revenues         
Electric$ ―$ ―$ ―$ ―
Natural gas   ―  ―  ―  ―
Total operating revenues  ―  ―  ―  ―
Operating expenses        
Cost of electric fuel and purchased power  (26)  (29)  (66)  (55)
Operation and maintenance  4  1  15  23
Depreciation and amortization  7  7  19  20
Total operating expenses  (15)  (21)  (32)  (12)
Operating income  15  21  32  12
Other income (expense), net  ―  4  (1)  ―
Interest expense  (3)  (4)  (8)  (6)
Income before income taxes/Net income  12  21  23  6
Earnings attributable to noncontrolling interest  (12)  (21)  (23)  (6)
Earnings$ ―$ ―$ ―$ ―
Ownership Interests Held By Others Table
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)  
  Percent Ownership Held by Others  September 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   13  9
Tecsur10   4  4
Luz del Sur20   230  216
Chilquinta Energía subsidiaries15 - 43   37  34
Otay Mesa VIE (at SDG&E)100   90  102
Total Sempra Energy  $ 394$ 383
(1)Part of Sempra Natural Gas.
  
Schedule of Inventory
INVENTORY BALANCES
(Dollars in millions)
     
  September 30, 2012December 31, 2011September 30, 2012December 31, 2011September 30, 2012December 31, 2011
  Natural GasMaterials and suppliesTotal
SDG&E$ 2$ 6$ 81$ 76$ 83$ 82
SoCalGas  142  128  24  23  166  151
Sempra South American Utilities  ―  ―  37  36  37  36
Sempra Mexico  10  10  8  7  18  17
Sempra Natural Gas  85  51  9  9  94  60
Sempra Energy Consolidated$ 239$ 195$ 159$ 151$ 398$ 346