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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C.  20549



FORM 8-K
CURRENT REPORT




Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

  

  

  

  

Date of Report

 

(Date of earliest event reported):

November 9, 2009




Commission
File Number

 

Name of Registrant, State of
Incorporation, Address and
Telephone Number

 

IRS Employer
Identification
Number

1-40

 

PACIFIC ENTERPRISES
(A California Corporation)
101 Ash Street
San Diego, California 92101
(619) 696-2020

 

94-0743670

 

 

 

 

 

1-1402

 

SOUTHERN CALIFORNIA GAS COMPANY
(A California Corporation)
555 West Fifth Street
Los Angeles, California 90013
(213) 244-1200

 

95-1240705




  

 

(Former name or former address, if changed since last report.)

  

  



 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 




2





FORM 8-K



Item 2.02   Results of Operations and Financial Condition.


The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Pacific Enterprises or Southern California Gas Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On November 9, 2009, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated earnings of $317 million, or $1.27 per diluted share of common stock, for the third quarter of 2009. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.


Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statement of Operations Data by Business Unit for the three months and nine months ended September 30, 2009 and 2008. A copy of such information is attached as Exhibit 99.2.


The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding Pacific Enterprises' and Southern California Gas Company's results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

November 9, 2009 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Statement of Operations Data by Business Unit for the three months and nine months ended September 30, 2009 and 2008.






3





  

SIGNATURES

  

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.  

  


PACIFIC ENTERPRISES
(Registrant)





Date: November 9, 2009

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: November 9, 2009

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  





4



Exhibit 99.1




Exhibit 99.1



NEWS RELEASE




Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 866-2066

 

www.sempra.com



Financial Contact:

Glen Donovan

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com







SEMPRA ENERGY THIRD-QUARTER

EARNINGS RISE


SAN DIEGO, Nov. 9, 2009 – Sempra Energy (NYSE: SRE) today reported that earnings increased in the third quarter 2009 to $317 million, or $1.27 per diluted share, from $308 million, or $1.24 per diluted share, in the third quarter 2008.  

Earnings for the first nine months of 2009 were $831 million, or $3.37 per diluted share, up nearly 5 percent from $794 million, or $3.13 per diluted share, in the first nine months of last year.  

“Our results through the first nine months of the year benefited from the solid performance of our California utilities and our commodities business, as well as continued progress in the build-out of our natural gas infrastructure projects,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “We remain on track to meet our 2009 financial targets.”



OPERATING HIGHLIGHTS


San Diego Gas & Electric

Third-quarter earnings for San Diego Gas & Electric (SDG&E) were $108 million in 2009, compared with $123 million last year.  Third-quarter 2008 results included $33 million in earnings from the retroactive application of SDG&E’s rate case, approved in July 2008.

For the first nine months, SDG&E earnings rose to $277 million in 2009 from $258 million last year.  


Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in the third quarter 2009 were $74 million, compared with $77 million in the third quarter 2008.  Third-quarter 2008 results included $7 million in earnings from the retroactive application of SoCalGas’ rate case, approved in July 2008.

For the nine-month period, SoCalGas’ earnings increased to $198 million in 2009 from $190 million in 2008.


RBS Sempra Commodities

Earnings for Sempra Energy’s commodity operations – concentrated in the RBS Sempra Commodities joint venture – were $75 million in the third quarter 2009, compared with a loss of $8 million in last year’s third quarter, due primarily to improved performance in natural gas marketing.  Results in last year’s third quarter were negatively impacted by losses in power marketing caused by the steep decline in commodity prices during the quarter.

For the nine-month period, earnings from Sempra Energy’s commodity operations increased to $274 million in 2009 from $181 million last year.

Last week, as part of its ongoing restructuring plan responding to increased government investment, The Royal Bank of Scotland (RBS) announced its intention to divest several of its assets, including its 51-percent stake in the RBS Sempra Commodities joint venture.  RBS has told Sempra Energy that the bank will comply with the joint-venture agreement and execute the sale in an orderly manner to maximize the value of the business.  RBS also said it is committed to maintaining the usual liquidity, credit and funding operations for the joint venture.

 

Sempra Generation

In the third quarter 2009, Sempra Generation’s earnings were $43 million, compared with $94 million in the third quarter 2008.  Sempra Generation benefited in last year’s third quarter from $28 million of mark-to-market earnings on long-term contracts with RBS Sempra Commodities and other counterparties, as well as $8 million from a solar investment tax credit and more favorable market pricing.

For the first nine months of 2009, Sempra Generation earned $119 million, compared with $162 million in the same period a year ago.

In September, Sempra Generation announced it has become an equal partner with BP Wind Energy in the Fowler Ridge II Wind Farm project in Indiana, scheduled to commence operations in the fourth quarter 2009.  The entire output of the 200-megawatt facility already has been sold under four, 20-year contracts.


Sempra Pipelines & Storage

Third-quarter 2009 earnings for Sempra Pipelines & Storage increased to $54 million from $34 million, due primarily to lower income taxes and increased contributions from the Rockies Express pipeline.

For the nine-month period, earnings for Sempra Pipelines & Storage were $64 million in 2009, compared with $84 million last year.  In the second quarter 2009, Sempra Pipelines & Storage recorded an after-tax charge of $64 million for the write-off of some of its Louisiana natural gas storage assets.


Sempra LNG

Sempra LNG had a break-even third quarter 2009, compared with earnings of $4 million in the prior-year’s quarter.

For the nine-month period, Sempra LNG had a net loss of $19 million in 2009, compared with a net loss of $33 million last year.


Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST with senior management of the company.  Access is available by logging onto the Web site at www.sempra.com.  For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering the passcode 9848386.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion.  The Sempra Energy companies’ 13,600 employees serve more than 29 million consumers worldwide.

Complete financial tables, including income-statement information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/3Q2009.pdf.


This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies, plans or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, nationa l and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board,  and other regulatory and governmental bodies in the United States, the United Kingdom and other countries; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult t o predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at www.sempra.com.


Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not regulated by the California Public Utilities Commission.


###






SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 Three months ended September 30,

 Nine months ended September 30,

(Dollars in millions, except per share amounts)

 

2009

 

2008*

 

2009

 

2008*

 

 (unaudited)

REVENUES

 

 

 

 

 

 

 

 

Sempra Utilities

 

 $           1,424

 

 $           2,013

 

 $           4,382

 

 $           6,190

Sempra Global and parent

 

                429

 

                679

 

             1,268

 

             2,275

    Total revenues

 

             1,853

 

             2,692

 

             5,650

 

             8,465

 

 

 

 

 

 

 

 

 

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

    Cost of natural gas

 

               (208)

 

               (689)

 

               (997)

 

            (2,708)

    Cost of electric fuel and purchased power

 

               (208)

 

               (311)

 

               (508)

 

               (694)

Sempra Global and parent:

 

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

               (220)

 

               (431)

 

               (675)

 

            (1,353)

    Other cost of sales

 

                (19)

 

                (15)

 

                (52)

 

               (168)

Operation and maintenance

 

               (571)

 

               (564)

 

            (1,676)

 

            (1,816)

Depreciation and amortization

 

               (196)

 

               (162)

 

               (568)

 

               (508)

Franchise fees and other taxes

 

                (77)

 

                (76)

 

               (228)

 

               (230)

Gains on sale of assets

 

                    -

 

                    -

 

                    3

 

                114

Write-off of long-lived assets

 

                    -

 

                    -

 

               (132)

 

                    -

Equity earnings (losses):

 

 

 

 

 

 

 

 

    RBS Sempra Commodities LLP

 

                105

 

                  (4)

 

                384

 

                142

    Other

 

                  18

 

                  14

 

                  27

 

                  29

Other income (expense), net

 

                  24

 

                (21)

 

                  97

 

                  30

Interest income

 

                    5

 

                  12

 

                  16

 

                  36

Interest expense

 

                (96)

 

                (67)

 

               (257)

 

               (165)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

 

                410

 

                378

 

             1,084

 

             1,174

Income tax expense

 

               (128)

 

                (94)

 

               (327)

 

               (423)

Equity earnings, net of income tax

 

                  20

 

                  18

 

                  59

 

                  57

Net income

 

                302

 

                302

 

                816

 

                808

(Earnings) losses attributable to noncontrolling interests

                  17

 

                    8

 

                  22

 

                  (7)

Preferred dividends of subsidiaries

 

                  (2)

 

                  (2)

 

                  (7)

 

                  (7)

Earnings

 

 $             317

 

 $             308

 

 $             831

 

 $             794

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

 $            1.30

 

 $            1.26

 

 $            3.42

 

 $            3.18

Weighted-average number of shares outstanding, basic (thousands)

 

          243,925

 

          243,793

 

          242,806

 

          249,311

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

 $            1.27

 

 $            1.24

 

 $            3.37

 

 $            3.13

Weighted-average number of shares outstanding, diluted (thousands)

 

          248,461

 

          247,904

 

          246,875

 

          253,407

Dividends declared per share of common stock

 

 $            0.39

 

 $            0.35

 

 $            1.17

 

 $            1.02

 

 

 

 

 

 

 

 

 

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).

 







SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Dollars in millions)

 

2009

 

2008*

 

 

 

 

 

(unaudited)

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

 $           756

 

 $           331

 

Short-term investments

 

                  -

 

              176

 

Restricted cash

 

                27

 

                27

 

Accounts receivable, net

 

              744

 

              981

 

Due from unconsolidated affiliates

 

                19

 

                  4

 

Income taxes receivable

 

              139

 

              195

 

Deferred income taxes

 

              117

 

                31

 

Inventories

 

              296

 

              320

 

Regulatory assets

 

                48

 

              121

 

Fixed-price contracts and other derivatives

 

              111

 

              160

 

Insurance receivable related to wildfire litigation

 

              266

 

                  -

 

Other

 

              173

 

              130

 

 

 

Total current assets

 

           2,696

 

           2,476

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              232

 

              264

 

Regulatory assets arising from pension and other postretirement benefit obligations

 

           1,218

 

           1,188

 

Other regulatory assets

 

              568

 

              534

 

Nuclear decommissioning trusts

 

              664

 

              577

 

Investment in RBS Sempra Commodities LLP

 

           2,094

 

           2,082

 

Other investments

 

           2,019

 

           1,166

 

Goodwill and other intangible assets

 

              527

 

              539

 

Sundry

 

              605

 

              709

 

 

 

Total investments and other assets

 

           7,927

 

           7,059

Property, plant and equipment, net

 

          17,772

 

          16,865

Total assets

 

 $       28,395

 

 $       26,400

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

 

 $           851

 

 $           503

 

Accounts payable

 

              581

 

              856

 

Due to unconsolidated affiliates

 

                16

 

                38

 

Dividends and interest payable

 

              209

 

              156

 

Accrued compensation and benefits

 

              221

 

              280

 

Regulatory balancing accounts, net

 

              605

 

              335

 

Current portion of long-term debt

 

              622

 

              410

 

Fixed-price contracts and other derivatives

 

                99

 

              180

 

Customer deposits

 

              145

 

              170

 

Reserve for wildfire litigation

 

              289

 

                  -

 

Other

 

              672

 

              684

 

 

 

Total current liabilities

 

           4,310

 

           3,612

Long-term debt

 

           6,845

 

           6,544

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

Due to unconsolidated affiliate

 

              102

 

              102

 

Customer advances for construction

 

              144

 

              155

 

Pension and other postretirement benefit obligations, net of plan assets

 

           1,518

 

           1,487

 

Deferred income taxes

 

           1,278

 

              946

 

Deferred investment tax credits

 

                54

 

                57

 

Regulatory liabilities arising from removal obligations

 

           2,546

 

           2,430

 

Asset retirement obligations

 

           1,212

 

           1,159

 

Other regulatory liabilities

 

              202

 

              219

 

Fixed-price contracts and other derivatives

 

              348

 

              392

 

Deferred credits and other

 

              774

 

              909

 

 

 

Total deferred credits and other liabilities

 

           8,178

 

           7,856

Preferred stock of subsidiary

 

                79

 

                79

Equity:

 

 

 

 

 

Total Sempra Energy shareholders' equity

 

           8,745

 

           7,969

 

Preferred stock of subsidiaries

 

              100

 

              100

 

Other noncontrolling interests

 

              138

 

              240

 

 

 

Total equity

 

           8,983

 

           8,309

Total liabilities and equity

 

 $       28,395

 

 $       26,400

 

 

 

 

 

 

 

 

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

Nine months ended

 

 

 

September 30,

(Dollars in millions)

 

2009

 

2008*

 

 

 

(unaudited)

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

 $        816

 

 $        808

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

           568

 

           508

 

Deferred income taxes and investment tax credits

 

           181

 

           165

 

Equity earnings

 

          (470)

 

          (228)

 

Gains on sale of assets

 

             (3)

 

          (114)

 

Write-off of long-lived assets

 

           132

 

               -

 

Fixed-price contacts and other derivatives

 

            (27)

 

               -

 

Other

 

             45

 

             76

Net change in other working capital components

 

           220

 

          (408)

Distributions from RBS Sempra Commodities LLP

 

           407

 

             56

Changes in other assets

 

             81

 

             (3)

Changes in other liabilities

 

            (66)

 

            (55)

 

Net cash provided by operating activities

 

        1,884

 

           805

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

       (1,371)

 

       (1,541)

Proceeds from sale of assets, net of cash sold

 

           179

 

        2,071

Expenditures for investments

 

(762)

 

       (2,180)

Distributions from investments

 

             16

 

             23

Purchases of nuclear decommissioning and other trust assets

 

          (167)

 

          (361)

Proceeds from sales by nuclear decommissioning and other trusts

 

           155

 

           350

Decrease in notes receivable from unconsolidated affiliate

 

               -

 

             60

Other

 

            (20)

 

            (18)

 

Net cash used in investing activities

 

       (1,970)

 

       (1,596)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(255)

 

          (252)

Preferred dividends paid by subsidiaries

 

(7)

 

             (7)

Issuances of common stock

 

             52

 

             17

Repurchases of common stock

 

               -

 

       (1,002)

(Decrease) increase in short-term debt, net

 

            (52)

 

           985

Issuances of long-term debt

 

        1,181

 

           650

Payments on long-term debt

 

          (325)

 

            (75)

Purchase of noncontrolling interest

 

            (94)

 

               -

Other

 

             11

 

              5

 

Net cash provided by financing activities

 

           511

 

           321

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

           425

 

          (470)

Cash and cash equivalents, January 1

 

           331

 

           668

Cash and cash equivalents, September 30

 

 $        756

 

 $        198

 

 

 

 

 

 

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




SEMPRA ENERGY

 

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in millions)

2009

 

2008

 

2009

 

2008

 

Earnings (Losses)

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $   108

 

 $   123

 

 $     277

 

 $    258

 

 

Southern California Gas

        74

 

        77

 

       198

 

       190

 

 

Sempra Commodities(1)

        75

 

        (8)

 

       274

 

       181

 

 

Sempra Generation

        43

 

        94

 

       119

 

       162

 

 

Sempra Pipelines & Storage

        54

 

        34

 

         64

 

         84

 

 

Sempra LNG

          -

 

          4

 

       (19)

 

       (33)

 

 

Parent & Other

      (37)

 

      (16)

 

       (82)

 

       (48)

 

 

Earnings

 $   317

 

 $   308

 

 $     831

 

 $    794

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Results for 2009 and the second and third quarters of 2008 include the company's portion of RBS Sempra Commodities' joint venture earnings and interest, income taxes, cost allocations and other items associated with the joint venture. Results for the first quarter of 2008 include 100% of the commodities-marketing businesses. Both 2009 and 2008 include the results of Sempra Rockies Marketing.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in millions)

2009

 

2008

 

2009

 

2008

 

Capital Expenditures and Investments(1)

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $   190

 

 $   277

(2)

 $     785

(2)

 $    942

(2)

 

Southern California Gas

109

 

108

 

336

 

350

 

 

Sempra Commodities

          -

 

          -

 

            -

 

         37

 

 

Sempra Generation

194

 

2

 

207

 

15

 

 

Sempra Pipelines & Storage

395

 

43

 

723

 

345

 

 

Sempra LNG

88

 

61

 

230

 

310

 

 

Parent & Other

2

 

165

(2)

4

 

426

(2)

 

Eliminations(2)

          -

 

    (229)

 

     (152)

 

     (304)

 

 

Consolidated Capital Expenditures and Investments

 $   978

 

 $   427

 

 $  2,133

 

 $ 2,121

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008.

 

 

 

 

 

 

 

 

 

 

 

(2)

During the nine months ended September 30, 2008, SDG&E and Parent & Other purchased $304 and $413, respectively, of SDG&E's industrial development bonds, including purchases and sales between the entities. As their cash flow needs changed, SDG&E purchased $68 of the bonds from Parent & Other during the three months ended September 30, 2008 and Parent & Other purchased $161 of the bonds from SDG&E in the same period. In the second quarter of 2009, SDG&E purchased $152 of the bonds from Parent & Other to facilitate their remarketing.

 

 

 

 

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

 

 

 

                        SEMPRA ENERGY

 

 

 

 

                               Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

SEMPRA UTILITIES

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

Revenues (Dollars in millions)

 

 

 

 

 

 

 

 

 

SDG&E (excludes intercompany sales)

 $    771

 

 $    945

 

 $ 2,130

 

 $ 2,439

 

 

SoCalGas (excludes intercompany sales)

 $    653

 

 $ 1,068

 

 $ 2,252

 

 $ 3,751

 

 

 

 

 

 

 

 

 

 

 

 

Gas Sales (Bcf)

         61

 

         63

 

       272

 

       288

 

Transportation and Exchange (Bcf)

       170

 

       171

 

       421

 

       445

 

Total Deliveries (Bcf)

       231

 

       234

 

       693

 

       733

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

    6,599

 

    6,565

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

    4,636

 

    4,716

 

  12,768

 

  13,012

 

Direct Access (Millions of kWhs)

       800

 

       781

 

    2,290

 

    2,296

 

Total Deliveries (Millions of kWhs)

    5,436

 

    5,497

 

  15,058

 

  15,308

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

    1,377

 

    1,370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

    5,317

 

    5,707

 

  16,526

 

  16,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

 

 

 

 

 

 

 

 

(Represents 100% of the distribution operations of these subsidiaries, although subsidiaries in Argentina, Chile and Peru are not 100% owned by Sempra Energy. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method).

 

Natural Gas Sales (Bcf)

 

 

 

 

 

 

 

 

 

Argentina

 

       101

 

       102

 

       249

 

       254

 

 

Mexico

 

          5

 

          4

 

         14

 

         14

 

 

Mobile Gas

          8

 

           -

*

         24

 

           -

*

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

    1,702

 

    1,658

 

 

Mexico

 

 

 

 

 

         91

 

         95

 

 

Mobile Gas

 

 

 

 

         92

 

           -

*

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Peru

 

    1,378

 

    1,347

 

    4,151

 

    4,063

 

 

Chile

 

       567

 

       565

 

    1,837

 

    1,797

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

       856

 

       829

 

 

Chile

 

 

 

 

 

       574

 

       559

 

 

 

 

 

 

 

 

 

 

 

 

* Mobile Gas was acquired in October 2008.

 

 

 

 

 

 

 

 




SEMPRA ENERGY

Table E (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA COMMODITIES

 

 

 

 

 

 

 

 

 

 

 

 

The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP.  RBS Sempra Commodities LLP acquired the commodity-marketing businesses of Sempra Energy on April 1, 2008.  For the three and nine months ended September 30, 2009, the Sempra Commodities segment is composed primarily of the company's equity interest in RBS Sempra Commodities LLP, but also includes the results of Sempra Rockies Marketing.  The margin and financial data below represent the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Statistics

 

 

 

 

 

 

 

 

 

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

 

Three

 

 

 

Nine

 

 

 

 

 

months ended

 

 

 

months ended

 

 

 

months ended

 

 

RBS Sempra Commodities LLP - Joint Venture level margin*

 

September 30, 2009

 

 

 

September 30, 2008

 

 

 

September 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographical:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 $                    100

 

 

 

 $                     (79)

 

 

 

 $                    572

 

 

 

Europe/Asia

 

                       112

 

 

 

                       139

 

 

 

                       317

 

 

 

  Total

 

 $                    212

 

 

 

 $                      60

 

 

 

 $                    889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil - Crude & Products

 

 $                      24

 

 

 

 $                      22

 

 

 

 $                    217

 

 

 

Power

 

                          8

 

 

 

                        (81)

 

 

 

                       195

 

 

 

Natural Gas

 

                       103

 

 

 

                         57

 

 

 

                       248

 

 

 

Metals

 

                         86

 

 

 

                         62

 

 

 

                       221

 

 

 

Other

 

                         (9)

 

 

 

                           -

 

 

 

                          8

 

 

 

  Total

 

 $                    212

 

 

 

 $                      60

 

 

 

 $                    889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

 

Three months ended September 30, 2009

 

Three months ended September 30, 2008

 

Nine months ended September 30, 2009

 

 

 

Joint Venture

 

Sempra

 

Joint Venture

 

Sempra

 

Joint Venture

 

Sempra

 

 

 

Total

 

Share**

 

Total

 

Share**

 

Total

 

Share**

 

Fee income and trading revenue, net of selling costs

 

 $                    212

 

 

 

 $                      60

 

 

 

 $                    889

 

 

 

Operating and other expenses

 

                      (129)

 

 

 

                        (93)

 

 

 

                      (510)

 

 

 

Joint Venture distributable income

 

 $                      83

 

 

 

 $                     (33)

 

 

 

 $                    379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred return on capital

 

 $                      85

 

 $                      61

 

 $                    131

 

 $                      60

 

 $                    246

 

 $                    180

 

1st allocation - 70% Sempra / 30% RBS***

 

                         (2)

 

                         (1)

 

                      (103)

 

                        (71)

 

                       133

 

                         96

 

2nd allocation - 30% Sempra / 70% RBS

 

                           -

 

                           -

 

                        (61)

 

                        (18)

 

                           -

 

                           -

 

Distributable income

 

 $                      83

 

 $                      60

 

 $                     (33)

 

 $                     (29)

 

 $                    379

 

 $                    276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Commodities Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

 

Three

 

 

 

Nine

 

 

 

 

 

months ended

 

 

 

months ended

 

 

 

months ended

(in millions of US dollars)

 

 

 

September 30, 2009

 

 

 

September 30, 2008

 

 

 

September 30, 2009

 

Sempra share of distributable income - IFRS basis

 

 

 

 $                      60

 

 

 

 $                     (29)

 

 

 

 $                    276

 

U.S. GAAP conversion impact

 

 

 

                         45

 

 

 

                         25

 

 

 

                       108

 

Sempra equity earnings before income taxes - U.S. GAAP basis

 

 

 

                       105

 

 

 

                         (4)

 

 

 

                       384

 

Income tax expense

 

 

 

                        (30)

 

 

 

                          1

 

 

 

                      (106)

 

Sempra equity earnings from RBS Sempra Commodities LLP

 

 

 

                         75

 

 

 

                         (3)

 

 

 

                       278

 

Other segment activity

 

 

 

                           -

 

 

 

                         (5)

 

 

 

                         (4)

 

Sempra Commodities earnings

 

 

 

 $                      75

 

 

 

 $                       (8)

 

 

 

 $                    274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**

After a 15% preferred return to Sempra and then a 15% return to RBS, Sempra receives 70% of the next $500 million and 30% of any remaining income on an annual basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***

Includes certain transition costs specifically allocated to Sempra and RBS.     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.2



Exhibit 99.2

SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        773

 

 $          662

 

 $            24

 

 $         250

 

 $           98

 

 $           68

 

 $           (22)

 

 

 $ 1,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (520)

 

            (457)

 

             (23)

 

          (167)

 

            (74)

 

            (60)

 

                (2)

 

 

  (1,303)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (81)

 

             (73)

 

                  -

 

            (14)

 

            (13)

 

            (10)

 

                (5)

 

 

    (196)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             105

 

                4

 

              18

 

                -

 

                (4)

 

 

      123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

              1

 

               (1)

 

                  -

 

              (1)

 

                -

 

                -

 

                25

 

 

        24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          173

 

             131

 

             106

 

              72

 

              29

 

              (2)

 

                (8)

 

 

      501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (30)

 

             (15)

 

               (1)

 

                1

 

              (4)

 

              (8)

 

              (36)

 

 

      (93)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (53)

 

             (42)

 

             (30)

 

            (30)

 

                9

 

              10

 

                  8

 

 

    (128)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                -

 

              20

 

                -

 

                   -

 

 

        20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) Losses Attributable to Noncontrolling Interests

 

            18

 

                 -

 

                  -

 

                -

 

                -

 

                -

 

                (1)

 

 

        17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $        108

 

 $            74

 

 $            75

 

 $           43

 

 $           54

 

 $              -

 

 $           (37)

 

 

 $    317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        949

 

 $       1,077

 

 $            13

 

 $         498

 

 $         127

 

 $           49

 

 $           (21)

 

 

 $ 2,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (689)

 

            (879)

 

             (15)

 

          (349)

 

          (112)

 

            (31)

 

              (11)

 

 

  (2,086)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (68)

 

             (67)

 

                  -

 

            (14)

 

              (5)

 

              (6)

 

                (2)

 

 

    (162)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

               (4)

 

                8

 

              10

 

                -

 

                (4)

 

 

        10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

              3

 

               (1)

 

                  -

 

              (1)

 

              (2)

 

              (2)

 

              (18)

 

 

      (21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          195

 

             130

 

               (6)

 

            142

 

              18

 

              10

 

              (56)

 

 

      433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (25)

 

             (12)

 

               (3)

 

              (2)

 

                2

 

              (3)

 

              (14)

 

 

      (57)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (54)

 

             (41)

 

                 1

 

            (46)

 

              (5)

 

              (3)

 

                54

 

 

      (94)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                -

 

              18

 

                -

 

                   -

 

 

        18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

 

              7

 

                 -

 

                  -

 

                -

 

                1

 

                -

 

                   -

 

 

          8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $        123

 

 $            77

 

 $            (8)

 

 $           94

 

 $           34

 

 $             4

 

 $           (16)

 

 

 $    308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.







SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $     2,136

 

 $       2,276

 

 $            50

 

 $         792

 

 $         328

 

 $         125

 

 $           (57)

 

 

 $ 5,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

       (1,437)

 

         (1,698)

 

             (49)

 

          (551)

 

          (378)

(1)

          (142)

 

              (10)

 

 

  (4,265)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

         (239)

 

            (220)

 

                  -

 

            (43)

 

            (32)

 

            (23)

 

              (11)

 

 

    (568)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             384

 

              (2)

 

              39

 

                -

 

              (10)

 

 

      411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

            45

 

                4

 

                  -

 

                -

 

                -

 

                1

 

                47

 

 

        97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

          505

 

             362

 

             385

 

            196

 

            (43)

 

            (39)

 

              (41)

 

 

    1,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

           (78)

 

             (49)

 

               (7)

 

              (1)

 

            (10)

 

            (12)

 

              (91)

 

 

    (248)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

         (141)

 

            (115)

 

           (104)

 

            (76)

 

              26

 

              32

 

                51

 

 

    (327)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                -

 

              59

 

                -

 

                  -

 

 

        59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) Losses Attributable to Noncontrolling Interests

 

             (9)

 

                 -

 

                  -

 

                -

 

              32

 

                -

 

                (1)

 

 

        22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $        277

 

 $          198

 

 $           274

 

 $         119

 

 $           64

 

 $         (19)

 

 $           (82)

 

 

 $    831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $     2,449

 

 $       3,776

 

 $           486

 

 $       1,426

 

 $         338

 

 $           44

 

 $           (54)

 

 

 $ 8,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

       (1,796)

 

         (3,225)

 

           (410)

 

       (1,131)

 

          (314)

 

            (75)

 

              (18)

 

 

  (6,969)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

         (223)

 

            (209)

 

               (6)

 

            (42)

 

            (10)

 

              (8)

 

              (10)

 

 

    (508)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (Losses) on Sale of Assets

 

              3

 

                 -

 

             110

 

                2

 

                -

 

                -

 

                (1)

 

 

      114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             142

 

              10

 

              30

 

                -

 

              (11)

 

 

      171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            26

 

                1

 

                  -

 

                1

 

                1

 

              13

 

              (12)

 

 

        30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

          459

 

             343

 

             322

 

            266

 

              45

 

            (26)

 

            (106)

 

 

    1,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (3)

 

           (72)

 

             (36)

 

             (12)

 

              (6)

 

                4

 

              (5)

 

                (9)

 

 

    (136)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

         (121)

 

            (117)

 

           (132)

 

            (98)

 

            (20)

 

              (2)

 

                67

 

 

    (423)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                 3

 

                -

 

              54

 

                -

 

                  -

 

 

        57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses) Attributable to Noncontrolling Interests

 

             (8)

 

                 -

 

                  -

 

                -

 

                1

 

                -

 

                  -

 

 

        (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $        258

 

 $          190

 

 $           181

 

 $         162

 

 $           84

 

 $         (33)

 

 $           (48)

 

 

 $    794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes $132 million write-off of long-lived assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.