XML 36 R39.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2012
Schedule Of Effective Income Tax Rate Reconciliation [Abstract]  
Schedule Of Effective Income Tax Rate Reconciliation
RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES
 
  Years ended December 31,
  201220112010
Sempra Energy Consolidated      
U.S. federal statutory income tax rate 35% 35% 35%
Utility depreciation 6  3  6 
State income taxes, net of federal income tax benefit (1)  2  ― 
Tax credits (7)  (1)  (3) 
Allowance for equity funds used during construction (4)  (2)  (3) 
Non-U.S. earnings taxed at lower statutory income tax rates (4)  (8)  (12) 
Adjustments to prior years’ income tax items (1)  ―  (3) 
Utility repairs expenditures (8)  (1)  (2) 
Self-developed software expenditures (5)  (3)  (5) 
Mexican foreign exchange and inflation effects 1  (1)  2 
Variable interest entities (1)  ―  1 
Life insurance contracts (7)  ―  ― 
Impact of change in income tax law ―  ―  2 
Impact of impairment of an equity method investment ―  ―  (2) 
Other, net 2  (1)  1 
Effective income tax rate 6% 23% 17%
SDG&E      
U.S. federal statutory income tax rate 35% 35% 35%
Depreciation 4  4  5 
State income taxes, net of federal income tax benefit 4  5  4 
Allowance for equity funds used during construction (4)  (4)  (3) 
Adjustments to prior years’ income tax items (3)  ―  (3) 
Utility repairs expenditures (4)  (1)  (2) 
Self-developed software expenditures (3)  (3)  (2) 
Variable interest entity (1)  (1)  1 
Impact of change in income tax law ―  ―  1 
Other, net (1)  (1)  (3) 
Effective income tax rate 27% 34% 33%
SoCalGas      
U.S. federal statutory income tax rate 35% 35% 35%
Depreciation 7  6  5 
State income taxes, net of federal income tax benefit 3  4  4 
Utility repairs expenditures (12)  ―  ― 
Self-developed software expenditures (9)  (7)  (6) 
Allowance for equity funds used during construction (2)  (2)  (1) 
Impact of change in income tax law ―  ―  3 
Other, net (1)  (3)  (2) 
Effective income tax rate 21% 33% 38%
Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries [Abstract]  
Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries [Text Block]
 Years ended December 31,
(Dollars in millions)201220112010
U.S.$ 442$ 1,011$ 448
Non-U.S.  501  712  339
Total$ 943$ 1,723$ 787
Schedule Of Components Of Income Tax Expense [Abstract]  
Schedule Of Components Of Income Tax Expense
INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
 Years ended December 31,
 201220112010
Sempra Energy Consolidated      
Current:      
U.S. Federal$ (36)$ 76$ 69
U.S. State  (6)  (3)  (3)
Non-U.S.  144  149  30
Total   102  222  96
Deferred:      
U.S. Federal  (63)  176  (18)
U.S. State  3  43  32
Non-U.S.  20  (45)  27
Total   (40)  174  41
Deferred investment tax credits  (3)  (2)  (4)
Total income tax expense$ 59$ 394$ 133
SDG&E      
Current:      
U.S. Federal$ (109)$ (59)$ 69
U.S. State  14  6  52
Total   (95)  (53)  121
Deferred:      
U.S. Federal  255  253  75
U.S. State  30  36  (21)
Total   285  289  54
Deferred investment tax credits  ―  1  (2)
Total income tax expense$ 190$ 237$ 173
SoCalGas      
Current:      
U.S. Federal$ (73)$ (6)$ 43
U.S. State  24  19  26
Total   (49)  13  69
Deferred:      
U.S. Federal  136  128  108
U.S. State  (6)  5  2
Total   130  133  110
Deferred investment tax credits  (2)  (3)  (3)
Total income tax expense$ 79$ 143$ 176
Schedule Of Components Of Deferred Tax Assets And Liabilities [Abstract]  
Schedule Of Components Of Deferred Tax Assets And Liabilities
DEFERRED INCOME TAXES FOR SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 December 31,
 20122011
Deferred income tax liabilities:    
Differences in financial and tax bases of depreciable and amortizable assets$ 3,710$ 2,360
Regulatory balancing accounts  770  456
Unrealized revenue  3  13
Loss on reacquired debt  9  12
Property taxes  46  43
Difference in financial and tax bases of partnership interests  118  152
Other deferred income tax liabilities  55  30
Total deferred income tax liabilities  4,711  3,066
Deferred income tax assets:    
Investment tax credits  67  22
Equity losses  16  16
Net operating losses   1,898  811
Compensation-related items  156  140
Postretirement benefits  587  361
Other deferred income tax assets  90  34
State income taxes  58  58
Bad debt allowance  8  8
Litigation and other accruals not yet deductible  7  5
Deferred income tax assets before valuation allowances  2,887  1,455
Less: valuation allowances  128  82
Total deferred income tax assets  2,759  1,373
Net deferred income tax liability$ 1,952$ 1,693
Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

DEFERRED INCOME TAXES FOR SDG&E AND SOCALGAS
(Dollars in millions)
 SDG&ESoCalGas
 December 31,December 31,
 2012201120122011
Deferred income tax liabilities:        
Differences in financial and tax bases of        
utility plant and other assets$ 1,947$ 1,152$ 938$ 632
Regulatory balancing accounts  344  230  439  236
Loss on reacquired debt  4  5  7  8
Property taxes  32  30  15  14
Other  22  19  ―  1
Total deferred income tax liabilities  2,349  1,436  1,399  891
Deferred income tax assets:        
Net operating losses  446  ―  34  ―
Postretirement benefits  137  115  370  161
Investment tax credits  16  17  14  16
Compensation-related items  14  15  48  39
State income taxes  31  24  18  18
Litigation and other accruals not yet deductible  38  33  21  22
Hedging transaction  1  ―  7  7
Other  4  3  9  8
Total deferred income tax assets   687  207  521  271
Net deferred income tax liability$ 1,662$ 1,229$ 878$ 620
Our policy is to show deferred income taxes of VIEs on a net basis, including valuation allowances. See table “Amounts Associated with Otay Mesa VIE” in Note 1 for further information.

NET DEFERRED INCOME TAX LIABILITY
(Dollars in millions)
 Sempra Energy    
 ConsolidatedSDG&ESoCalGas
 201220112012201120122011
Current (asset) liability$ (148)$ 173$ 26$ 62$ (3)$ 44
Noncurrent liability  2,100  1,520  1,636  1,167  881  576
Total$ 1,952$ 1,693$ 1,662$ 1,229$ 878$ 620
Income Tax Uncertainties [Abstract]  
Summary of Income Tax Contingencies
SUMMARY OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 Sempra Energy            
 ConsolidatedSDG&ESoCalGas
 201220112010201220112010201220112010
Total$ 82$ 72$ 97$ 12$ 7$ 5$ 5$ ―$ 8
Of the total, amounts related to tax                   
positions that, if recognized, in                   
future years, would:                  
decrease the effective tax rate$ (81)$ (72)$ (76)$ (12)$ (7)$ (5)$ (5)$ ―$ (1)
increase the effective tax rate  16  7  5  12  7  5  4  ―  ―

RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 201220112010
Sempra Energy Consolidated:      
Balance as of January 1 $ 72$ 97$ 94
Increase in prior period tax positions  2  7  29
Decrease in prior period tax positions  (1)  (26)  (4)
Increase in current period tax positions  10  3  5
Settlements with taxing authorities  (1)  (9)  (9)
Expirations of statutes of limitations  ―  ―  (18)
Balance as of December 31 $ 82$ 72$ 97
SDG&E:      
Balance as of January 1 $ 7$ 5$ 14
Increase in prior period tax positions  1  ―  ―
Decrease in prior period tax positions  ―  ―  (3)
Increase in current period tax positions  4  2  3
Settlements with taxing authorities  ―  ―  (9)
Balance as of December 31 $ 12$ 7$ 5
SoCalGas:      
Balance as of January 1 $ ―$ 8$ 11
Increase in prior period tax positions  ―  2  5
Increase in current period tax positions  5  ―  ―
Settlements with taxing authorities  ―  (10)  ―
Expirations of statutes of limitations  ―  ―  (8)
Balance as of December 31 $ 5$ ―$ 8

INTEREST EXPENSE AND PENALTIES ASSOCIATED WITH UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 Sempra Energy            
 Consolidated SDG&E SoCalGas
 201220112010 201220112010 201220112010
Interest expense (benefit)$ ―$ (3)$ 4 $ ―$ ―$ 3 $ ―$ (1)$ 1
Penalties  ―  (1)  ―   ―  ―  ―   ―  ―  ―

ACCRUED INTEREST EXPENSE AND PENALTIES ASSOCIATED WITH UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 Sempra Energy         
 Consolidated SDG&E SoCalGas
 20122011 20122011 20122011
Interest expense$ 3$ 3 $ 1$ 1 $ 1$ 1
Penalties  3  3   ―  ―   ―  ―
Summary Of Positions For Which Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Abstract]  
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible
POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
 At December 31,
 201220112010
Sempra Energy Consolidated:      
Expiration of statutes of limitations on tax assessments $ (7)$ (7)$ (6)
Potential resolution of audit issues with various      
U.S. federal, state and local and non-U.S. taxing authorities  (10)  ―  (35)
 $ (17)$ (7)$ (41)
SDG&E:      
Potential resolution of audit issues with various      
U.S. federal, state and local and non-U.S. taxing authorities$ (5)$ ―$ ―
SoCalGas:      
Expiration of statutes of limitations on tax assessments $ ―$ ―$ (5)
Potential resolution of audit issues with various      
U.S. federal, state and local taxing authorities  (4)  ―  ―
 $ (4)$ ―$ (5)