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PE/SCG 8-K 05-04-2010

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):	May 4, 2010


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))

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 May 4, 2010, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated earnings of $106 million, or $0.42 per diluted share of common stock, for the first quarter of 2010. 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 ended March 31, 2010 and 2009. 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

May 4, 2010 Sempra Energy News Release (including tables).

99.2

Sempra Energy's Statement of Operations Data by Business Unit for the three months ended March 31, 2010 and 2009.

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: May 4, 2010	By: /s/ Robert Schlax
	Robert Schlax Vice President, Controller and Chief Financial Officer

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)


Date: May 4, 2010	By: /s/ Robert Schlax
	Robert Schlax Vice President, Controller and Chief Financial Officer

Exhibit 99.1

NEWS RELEASE


Media Contact:	Doug Kline
	Sempra Energy
	(877) 340-8875
	dkline@sempra.com
	www.sempra.com


Financial Contact:	Glen Donovan
	Sempra Energy
	(877) 736-7727
	investor@sempra.com

SEMPRA ENERGY REPORTS

FIRST-QUARTER 2010 EARNINGS

SAN DIEGO, May 4, 2010 – Sempra Energy (NYSE: SRE) today reported first-quarter 2010 earnings of $106 million, or $0.42 per diluted share, compared with $316 million, or $1.29 per diluted share, in the first quarter 2009.

First-quarter 2010 earnings included a charge of $96 million after tax, or $0.38 per diluted share, related to the energy-crisis litigation settlement announced last week. The reduction in first-quarter earnings also reflected poor performance at the company’s commodities joint venture. In February, Sempra Energy announced it intends to exit the joint venture. Excluding the $96 million energy-crisis litigation charge, Sempra Energy had earnings of $202 million, or $0.81 per diluted share, in the first quarter 2010.

“While the quarterly results at our commodities joint venture were disappointing, our core businesses continue to perform in-line with expectations,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “We have an active sales process under way for the commodities joint venture and expect to exit the business completely in the latter half of this year.

SEGMENT RESULTS

San Diego Gas & Electric

First-quarter earnings for San Diego Gas & Electric (SDG&E) were $83 million in 2010, compared with $99 million in 2009, due primarily to higher liability insurance premiums for wildfire coverage and a tax charge resulting from the recently enacted federal health care legislation. In the first quarter last year, SDG&E also benefited from the favorable resolution of a litigation matter.

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in the first quarter 2010 increased to $65 million from $59 million in last year’s first quarter, due to higher authorized margins and regulatory awards, as well as lower bad debt expense. The improvement in the quarter was partially offset by higher taxes resulting from the recently enacted federal health care legislation.

Last month, SoCalGas received approval from the California Public Utilities Commission for the utility’s $1.05 billion advanced metering program. In 2012, SoCalGas will begin replacing its customers’ six million meters with digital devices that allow two-way communications.

Sempra Generation

Sempra Generation recorded a first-quarter loss of $53 million in 2010, compared with earnings of $43 million in 2009, primarily due to an $84 million after-tax charge related to the energy-crisis litigation settlement, as well as scheduled major maintenance costs and associated downtime.

Sempra Pipelines & Storage

First-quarter earnings for Sempra Pipelines & Storage were $38 million in 2010, up from $37 million last year.

Yesterday, Sempra Pipelines & Storage announced that it had completed its acquisition of the Mexican pipeline and gas infrastructure assets of El Paso Corp. The acquisition involves a natural gas pipeline and compression assets in the Mexican state of Sonora and a 50-percent interest in a joint venture with PEMEX, the Mexican state-owned oil company. The joint venture operates two natural gas pipelines and a propane system in northern Mexico.

Sempra LNG

Sempra LNG earned $32 million in the first quarter 2010, compared with a loss of $7 million in the first quarter 2009, due primarily to the start-up of marketing and terminal operations.

On April 22, Sempra LNG announced an agreement with Gazprom Global LNG Ltd. that will allow Gazprom to sell and deliver up to two liquefied natural gas cargoes per month to Sempra LNG’s Cameron LNG terminal near Lake Charles, La., beginning next month.

Sempra Commodities

Sempra Energy’s commodity operations lost $5 million in the first quarter 2010, compared with earnings of $114 million last year. The loss was due primarily to reduced margins in oil and European natural gas marketing, as well as higher costs for employee retention, and a $12 million after-tax charge related to the energy-crisis litigation settlement. Sempra Energy said the performance at Sempra Commodities is not expected to show significant improvement prior to the completion of the sales process, because of low commodity prices and the disruptions caused by the sale.

On Feb. 16, Sempra Energy and The Royal Bank of Scotland (RBS) announced a definitive agreement to sell the international oil, metals and European businesses of the RBS Sempra Commodities joint venture to J.P. Morgan Chase & Co. for an expected $1.7 billion. An active sales process is under way for the remaining North American natural gas and power businesses. Sempra Energy expects the sale of both parts of the joint venture to be completed in the latter half of 2010.

EARNINGS OUTLOOK

Assuming break-even performance at RBS Sempra Commodities and the $96 million after-tax litigation charge, Sempra Energy now expects earnings per share of $3.15 to $3.40 in 2010, compared with previous per-share guidance of $4.25 to $4.50.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT 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 passcode 3541735.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2009 revenues of more than $8 billion. The Sempra Energy companies’ 13,800 employees serve about 29 million consumers worldwide.

Complete financial tables, including earnings information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/1Q2010.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 and other countries where the company does business; 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 to 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 Sempra 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 Sempra 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
	March 31,
(Dollars in millions, except per share amounts)	2010	2009
	(unaudited)
REVENUES
Sempra Utilities	$ 1,912	$ 1,642
Sempra Global and parent	622	466
Total revenues	2,534	2,108
EXPENSES AND OTHER INCOME
Sempra Utilities:
Cost of natural gas	(758)	(540)
Cost of electric fuel and purchased power	(148)	(171)
Sempra Global and parent:
Cost of natural gas, electric fuel and purchased power	(338)	(268)
Other cost of sales	(25)	(17)
Litigation expense	(168)	7
Other operation and maintenance	(576)	(523)
Depreciation and amortization	(210)	(183)
Franchise fees and other taxes	(90)	(82)
Equity earnings:
RBS Sempra Commodities LLP	7	153
Other	8	7
Other income, net	8	3
Interest income	4	6
Interest expense	(109)	(82)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	139	418
Income tax expense	(58)	(109)
Equity earnings, net of income tax	19	16
Net income	100	325
Losses (earnings) attributable to noncontrolling interests	8	(7)
Preferred dividends of subsidiaries	(2)	(2)
Earnings	$ 106	$ 316

Basic earnings per common share	$ 0.43	$ 1.31
Weighted-average number of shares outstanding, basic (thousands)	246,083	241,766

Diluted earnings per common share	$ 0.42	$ 1.29
Weighted-average number of shares outstanding, diluted (thousands)	250,373	245,017
Dividends declared per share of common stock	$ 0.39	$ 0.39


SEMPRA ENERGY
Table B

*CONDENSED CONSOLIDATED BALANCE SHEETS*

			March 31,	December 31,
(Dollars in millions)			2010	2009
			(unaudited)
Assets
Current assets:
	Cash and cash equivalents		$ 222	$ 110
	Restricted cash		44	35
	Accounts receivable, net		978	1,130
	Due from unconsolidated affiliates		29	41
	Income taxes receivable		156	221
	Deferred income taxes		5	10
	Inventories		160	197
	Regulatory assets		90	54
	Fixed-price contracts and other derivatives		85	77
	Insurance receivable related to wildfire litigation		194	273
	Other		144	147
		Total current assets	2,107	2,295

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives		251	241
	Regulatory assets arising from pension and other postretirement benefit obligations		978	959
	Other regulatory assets		739	603
	Nuclear decommissioning trusts		706	678
	Investment in RBS Sempra Commodities LLP		2,178	2,172
	Other investments		2,202	2,151
	Goodwill and other intangible assets		523	524
	Sundry		598	608
		Total investments and other assets	8,175	7,936
Property, plant and equipment, net			18,490	18,281
Total assets			$ 28,772	$ 28,512

Liabilities and Equity
Current liabilities:
	Short-term debt		$ 912	$ 618
	Accounts payable		669	693
	Due to unconsolidated affiliates		6	29
	Dividends and interest payable		223	190
	Accrued compensation and benefits		162	264
	Regulatory balancing accounts, net		517	382
	Current portion of long-term debt		327	573
	Fixed-price contracts and other derivatives		108	95
	Customer deposits		144	145
	Reserve for wildfire litigation		300	270
	Other		870	629
		Total current liabilities	4,238	3,888
Long-term debt			7,198	7,460

Deferred credits and other liabilities:
	Due to unconsolidated affiliate		-	2
	Customer advances for construction		147	146
	Pension and other postretirement benefit obligations, net of plan assets		1,268	1,252
	Deferred income taxes		1,419	1,318
	Deferred investment tax credits		53	54
	Regulatory liabilities arising from removal obligations		2,598	2,557
	Asset retirement obligations		1,298	1,277
	Other regulatory liabilities		172	181
	Fixed-price contracts and other derivatives		309	312
	Deferred credits and other		698	735
		Total deferred credits and other liabilities	7,962	7,834
Contingently redeemable preferred stock of subsidiary			79	79
Equity:
	Total Sempra Energy shareholders' equity		9,060	9,007
	Preferred stock of subsidiaries		100	100
	Other noncontrolling interests		135	144
		Total equity	9,295	9,251
Total liabilities and equity			$ 28,772	$ 28,512


SEMPRA ENERGY
Table C

*CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS*

		Three months ended March 31,
(Dollars in millions)		2010	2009
		(unaudited)
Cash Flows from Operating Activities:
Net income		$ 100	$ 325
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation and amortization	210	183
	Deferred income taxes and investment tax credits	61	(29)
	Equity earnings	(34)	(176)
	Other	7	49
Net change in other working capital components		534	491
Distribution from RBS Sempra Commodities LLP		-	305
Changes in other assets		18	10
Changes in other liabilities		(8)	(19)
	Net cash provided by operating activities	888	1,139

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(446)	(492)
Expenditures for investments		(74)	(25)
Distributions from investments		24	5
Purchases of nuclear decommissioning and other trust assets		(44)	(45)
Proceeds from sales by nuclear decommissioning and other trusts		46	42
Other		(2)	(7)
	Net cash used in investing activities	(496)	(522)

Cash Flows from Financing Activities:
Common dividends paid		(86)	(86)
Preferred dividends paid by subsidiaries		(2)	(2)
Issuances of common stock		14	10
Repurchases of common stock		(2)	-
Increase (decrease) in short-term debt, net		294	(77)
Issuances of debt (maturities greater than 90 days)		12	22
Payments on debt (maturities greater than 90 days)		(507)	(6)
Purchase of noncontrolling interest		-	(94)
Other		(3)	5
	Net cash used in financing activities	(280)	(228)

Increase in cash and cash equivalents		112	389
Cash and cash equivalents, January 1		110	331
Cash and cash equivalents, March 31		$ 222	$ 720


SEMPRA ENERGY
Table D


*BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS*


	Three months ended
	March 31,
(Dollars in millions)	2010	2009
	(unaudited)
Earnings (Losses)
San Diego Gas & Electric	$ 83	$ 99
Southern California Gas	65	59
Sempra Commodities	(5)	114
Sempra Generation	(53)	43
Sempra Pipelines & Storage	38	37
Sempra LNG	32	(7)
Parent & Other	(54)	(29)
Earnings	$ 106	$ 316

	Three months ended
	March 31,
(Dollars in millions)	2010	2009
	(unaudited)
Capital Expenditures and Investments
San Diego Gas & Electric	$ 290	$ 229
Southern California Gas	114	112
Sempra Generation	4	3
Sempra Pipelines & Storage	110	101
Sempra LNG	2	71
Parent & Other	-	1
Consolidated Capital Expenditures and Investments	$ 520	$ 517


SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended
		March 31,
*SEMPRA UTILITIES*		2010	2009
Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 741	$ 730
	SoCalGas (excludes intercompany sales)	$ 1,171	$ 912

Gas Sales (bcf)		132	131
Transportation (bcf)		117	128
Total Deliveries (bcf)		249	259
Total Gas Customers (Thousands)		6,614	6,582

Electric Sales (Millions of kWhs)		4,055	4,164
Direct Access (Millions of kWhs)		720	740
Total Deliveries (Millions of kWhs)		4,775	4,904
Total Electric Customers (Thousands)		1,380	1,373



*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		4,952	5,727


*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	64	65
	Mexico	6	5
	Mobile Gas	10	9
Natural Gas Customers (Thousands)
	Argentina	1,717	1,680
	Mexico	91	94
	Mobile Gas	92	94
Electric Sales (Millions of kWhs)
	Peru	1,479	1,393
	Chile	600	677
Electric Customers (Thousands)
	Peru	870	845
	Chile	582	566


SEMPRA ENERGY
Table E (Continued)

*SEMPRA COMMODITIES*
The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP. 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)
RBS Sempra Commodities LLP - Joint Venture level margin(1)		Three months ended March 31, 2010		Three months ended March 31, 2009

Geographical:
	North America	$ 112		$ 252
	Europe/Asia	95		102
	Total	$ 207		$ 354

Product Line:
	Oil - Crude & Products	$ (13)		$ 123
	Power	105		93
	Natural Gas	33		78
	Metals	61		54
	Other	21		6
	Total	$ 207		$ 354

*Financial Information*
(in millions of US dollars)

RBS Sempra Commodities LLP		Three months ended March 31, 2010		Three months ended March 31, 2009
		Joint Venture	Sempra	Joint Venture	Sempra
		Total	Share(2)	Total	Share(2)
	Fee income and trading revenue, net of selling costs	$ 207		$ 354
	Operating and other expenses	(208)		(200)
	Joint Venture (losses) distributable income	$ (1)		$ 154


	Preferred return on capital	$ -	$ -	$ 77	$ 59
	Loss allocation - 50% Sempra / 50%RBS(3)	(1)	(1)	-	-
	1st allocation - 70% Sempra / 30% RBS(3)	-	-	77	55
	2nd allocation - 30% Sempra / 70% RBS	-	-	-	-
	(Losses) distributable income	$ (1)	$ (1)	$ 154	$ 114

*Sempra Commodities Earnings*
(in millions of US dollars)			Three months ended March 31, 2010		Three months ended March 31, 2009
	Sempra share of (losses) distributable income - IFRS basis		$ (1)		$ 114
	U.S. GAAP conversion impact		8		39
	Sempra equity earnings before income taxes - U.S. GAAP basis		7		153
	Income tax (expense) benefit		1		(37)
	Sempra equity earnings from RBS Sempra Commodities LLP		8		116
	Other segment activity		(13)		(2)
	Sempra Commodities earnings (losses)		$ (5)		$ 114

(1)	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.

(2)	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. Losses are shared equally between Sempra and RBS.

(3)	Includes certain transition costs specifically allocated to Sempra and RBS.

Exhibit 99.2


SEMPRA ENERGY
Table F (Unaudited)

*Statement of Operations Data by Business Unit*

Three Months Ended March 31, 2010

(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Revenues	$ 742	$ 1,182	$ 23	$ 295	$ 110	$ 205	$ (23)	$ 2,534

Cost of Sales and Other Expenses	(505)	(973)	(23)	(233)	(78)	(136)	13	(1,935)

Litigation Expense	(7)	-	(20)	(139)	-	(1)	(1)	(168)

Depreciation & Amortization	(92)	(75)	-	(15)	(11)	(12)	(5)	(210)

Equity Earnings (Losses) Recorded Before Income Tax	-	-	7	-	10	-	(2)	15

Other Income (Expense), Net	-	4	1	1	(1)	-	3	8

Income (Loss) Before Interest & Tax (1)	138	138	(12)	(91)	30	56	(15)	244

Net Interest Expense (2)	(32)	(17)	(1)	(2)	(5)	(12)	(38)	(107)

Income Tax (Expense) Benefit	(31)	(56)	8	40	(6)	(12)	(1)	(58)

Equity Earnings Recorded Net of Income Tax	-	-	-	-	19	-	-	19

Losses Attributable to Noncontrolling Interests	8	-	-	-	-	-	-	8

Earnings (Losses)	$ 83	$ 65	$ (5)	$ (53)	$ 38	$ 32	$ (54)	$ 106


Three Months Ended March 31, 2009

(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Revenues	$ 732	$ 920	$ 13	$ 297	$ 132	$ 32	$ (18)	$ 2,108

Cost of Sales and Other Expenses	(488)	(738)	(12)	(227)	(95)	(43)	2	(1,601)

Litigation Adjustment (Expense)	8	-	-	-	-	-	(1)	7

Depreciation & Amortization	(77)	(72)	-	(14)	(10)	(6)	(4)	(183)

Equity Earnings (Losses) Recorded Before Income Tax	-	-	153	-	10	-	(3)	160

Other Income (Expense), Net	17	1	-	-	(1)	-	(14)	3

Income (Loss) Before Interest & Tax (1)	192	111	154	56	36	(17)	(38)	494

Net Interest Expense (2)	(26)	(16)	(3)	(1)	(3)	(2)	(27)	(78)

Income Tax (Expense) Benefit	(60)	(36)	(37)	(12)	(12)	12	36	(109)

Equity Earnings Recorded Net of Income Tax	-	-	-	-	16	-	-	16

Earnings Attributable to Noncontrolling Interests	(7)	-	-	-	-	-	-	(7)

Earnings (Losses)	$ 99	$ 59	$ 114	$ 43	$ 37	$ (7)	$ (29)	$ 316

(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.