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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):

February 22, 2007




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))

 

 




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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 February 22, 2007, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $125 million, or $0.47 per diluted share of common stock, for the fourth quarter of 2006 and $1.4 billion, or $5.38 per diluted share of common stock, for the fiscal year 2006. 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 Income Statement Data by Business Unit for the three month periods and the years ended December 31, 2006 and 2005. 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

February 22, 2007 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Income Statement Data by Business Unit for the three month periods and the years ended December 31, 2006 and 2005.




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SIGNATURE

  

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  

  


PACIFIC ENTERPRISES
(Registrant)





Date: February 22, 2007

By: /s/ Dennis V. Arriola

 

Dennis V. Arriola
Sr. Vice President and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: February 22, 2007

By: /s/ Dennis V. Arriola

 

Dennis V. Arriola
Sr. Vice President and Chief Financial Officer

 

  





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Exhibit 99.1

Exhibit 99.1




 NEWS RELEASE


Media Contact:

Doug Kline

Sempra Energy

(877) 866-2066

www.sempra.com


Financial Contact:

Karen Sedgwick/Glen Donovan

Sempra Energy

(877) 736-7727



SEMPRA ENERGY 2006 NET INCOME RISES

53 PERCENT


·

Commodities Unit Drives Record Earnings

·

Company Raises 2007 Earnings-Per-Share Guidance to Range of $3.75 to $3.95


SAN DIEGO, Feb. 22, 2007 – Sempra Energy (NYSE:  SRE) today reported 2006 net income of $1.4 billion, or $5.38 per diluted share, an increase of 53 percent over $920 million, or $3.65 per diluted share, in 2005.

Included in 2006 results was $315 million in after-tax income from discontinued operations related to asset sales.  In 2005, Sempra Energy incurred $311 million after-tax in litigation expense related to the Western U.S. energy crisis of 2000-01.

For the full-year 2006, income from continuing operations -- excluding a $204 million gain on the sale of the jointly owned Texas power plants and a $221 million write-down on the company’s Argentine investments -- was $1.1 billion, or $4.24 per diluted share, up 21 percent from $913 million, or $3.62 per diluted share in 2005.

Sempra Energy’s fourth-quarter net income was $125 million, or $0.47 per diluted share, in 2006, compared with $355 million, or $1.38 per diluted share, in 2005.





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Fourth-quarter results included the charge related to the Argentine utilities.  In the year-earlier quarter, the company recorded an after-tax charge of $116 million for energy-crisis litigation costs.

“This was our eighth consecutive year of record earnings,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “We are benefiting from a focused strategy.  Building natural gas infrastructure in North America and expanding our California utilities remain our top priorities.”

Sempra Energy’s board of directors last week increased the dividend on common shares on an annualized basis to $1.24 per share from $1.20 per share.

Revenues for Sempra Energy in 2006 were $11.8 billion, compared with $11.5 billion in 2005.  Fourth-quarter 2006 revenues were $3.2 billion, compared with $3.9 billion in the prior year’s quarter, due primarily to reduced commodity prices.


SUBSIDIARY OPERATING RESULTS

Sempra Utilities

Net income for San Diego Gas & Electric (SDG&E) was $237 million in 2006, compared with $262 million in 2005.   SDG&E’s fourth-quarter 2006 net income was $55 million, compared with net income of $72 million in the fourth quarter 2005.  The change in net income for the quarter and full year was due primarily to the positive effect in 2005 of demand-side-management incentives and favorable resolution of prior-years’ tax and regulatory issues, offset by higher net income from electric generation in 2006, including the addition of the new Palomar generating facility.

Net income for Southern California Gas Co. (SoCalGas) was $223 million in 2006, compared with $211 million in the prior year.  The improvement from the prior year was due primarily to energy-crisis litigation expense in 2005, offset by the favorable resolution of tax and regulatory issues.  SoCalGas’ fourth-quarter net income was $55 million in 2006, up from $48 million in the previous year.





2







Sempra Commodities

Sempra Commodities’ 2006 net income rose to $504 million from $460 million in 2005, due to improved results in the natural gas and base metals businesses.  Fourth-quarter net income for Sempra Commodities was $214 million in 2006, compared with $244 million in the prior-year quarter, due to reduced margins in petroleum and power marketing.

“Energy markets remain volatile and we do not see this volatility moderating in the near future,” said Felsinger.  “Sempra Commodities continues to excel in this environment, offering customers help in managing their commodity risks.”


Sempra Generation

Sempra Generation’s net income in 2006 was $375 million, compared with 2005 net income of $149 million.  The company’s 2006 net income included $204 million from the sale of its jointly owned Texas power plants.  Fourth-quarter 2006 net income for Sempra Generation was $53 million, compared with $58 million in 2005.

In 2006, Sempra Generation completed the sale of several assets that were recorded as discontinued operations, including the Twin Oaks power plant, its oil and gas production unit, and its energy-services and facilities-management operations.


Sempra Pipelines & Storage

Sempra Pipelines & Storage recorded a net loss of $165 million in 2006, compared with net income of $64 million in 2005.  In the fourth quarter 2006, Sempra Pipelines & Storage recorded a net loss of $223 million, compared with $16 million in net income during the same quarter in 2005.  Both the quarter and full-year results for Sempra Pipelines & Storage were impacted by the company’s write-down on its Argentine investments.






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Sempra LNG

Sempra LNG recorded a net loss of $42 million in 2006, compared with a net loss of $25 million in the prior year, due to a $13 million mark-to-market loss related to a natural gas marketing agreement with Sempra Commodities and higher development costs.   For the fourth quarter, Sempra LNG’s 2006 net loss was $7 million, compared with a net loss of $10 million in 2005.


2007 Earnings Outlook

Sempra Energy today updated its 2007 earnings-per-share guidance to a range of $3.75 to $3.95 from previous guidance of $3.50 to $3.70.


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, 8288064.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

Income-statement information by business unit is available on Sempra Energy’s Web site at http://www.sempra.com/downloads/4Q2006.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.  When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” “should” or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements.  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: loc al, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other environmental and regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks;



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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 company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.


Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission.  Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.






5







SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF CONSOLIDATED INCOME  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

December 31,

 

December 31,

(Dollars in millions, except per share amounts)

2006

 

2005

 

2006

 

2005

 

 

(Unaudited)

 

 

 

 

Operating revenues

Sempra Utilities

 $1,709 

 

 $2,259 

 

 $6,899 

 

 $7,042 

Sempra Global and parent

 1,536 

 

 1,673 

 

 4,862 

 

 4,470 

 

Total operating revenues

 3,245 

 

 3,932 

 

 11,761 

 

 11,512 

 

 

 

 

 

 

 

 

 

Operating expenses

Sempra Utilities:

 

Cost of natural gas

 679 

 

 1,172 

 

 2,756 

 

 3,232 

 

Cost of electric fuel and purchased power

 155 

 

 187 

 

 721 

 

 624 

Other cost of sales

 753 

 

 792 

 

 2,689 

 

 2,588 

Litigation expense

 13 

 

 210 

 

 56 

 

 551 

Other operating expenses

 838 

 

 839 

 

 2,814 

 

 2,583 

Depreciation and amortization

 166 

 

 160 

 

 657 

 

 626 

Franchise fees and other taxes

 67 

 

 65 

 

 275 

 

 246 

Gains on sale of assets, net

 (2)

 

 (8)

 

 (1)

 

 (112)

Impairment losses

 6 

 

 71 

 

 9 

 

 85 

 

Total operating expenses

 2,675 

 

 3,488 

 

 9,976 

 

 10,423 

Operating income

 570 

 

 444 

 

 1,785 

 

 1,089 

Other income, net

 6 

 

 27 

 

 381 

 

 51 

Interest income

 36 

 

 22 

 

 109 

 

 72 

Interest expense

 (78)

 

 (90)

 

 (351)

 

 (310)

Preferred dividends of subsidiaries

 (3)

 

 (3)

 

 (10)

 

 (10)

Income from continuing operations before income taxes and

 

equity in earnings (losses) of certain unconsolidated subsidiaries

 531 

 

 400 

 

 1,914 

 

 892 

Income tax expense

 180 

 

 56 

 

 641 

 

 34 

Equity in earnings (losses) of certain unconsolidated subsidiaries

 (222)

 

 13 

 

 (182)

 

 55 

Income from continuing operations

 129 

 

 357 

 

 1,091 

 

 913 

Discontinued operations, net of income tax

 (4)

 

 (2)

 

 315 

 

 7 

Net income

 $125 

 

 $355 

 

 $1,406 

 

 $920 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

Income from continuing operations

 $0.50 

 

 $1.41 

 

 $4.25 

 

 $3.71 

 

Discontinued operations, net of income tax

 (0.02)

 

 (0.01)

 

 1.23 

 

 0.03 

 

Net income

 $0.48 

 

 $1.40 

 

 $5.48 

 

 $3.74 

Weighted-average number of shares outstanding (thousands)

 258,385 

 

 253,516 

 

 256,477 

 

 245,906 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

Income from continuing operations

 $0.49 

 

 $1.39 

 

 $4.17 

 

 $3.62 

 

Discontinued operations, net of income tax

 (0.02)

 

 (0.01)

 

 1.21 

 

 0.03 

 

Net income

 $0.47 

 

 $1.38 

 

 $5.38 

 

 $3.65 

Weighted-average number of shares outstanding (thousands)

 263,429 

 

 257,845 

 

 261,368 

 

 252,088 

Dividends declared per share of common stock

 $0.30 

 

 $0.29 

 

 $1.20 

 

 $1.16 

 

 

 

 

 

 

 

 

 

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.





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SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

(Dollars in millions)

2006

 

2005

 

 

 

 

 

 

 

 

Assets

Current assets:

 

Cash and cash equivalents

 $920 

 

 $769 

 

Restricted cash

 4 

 

 12 

 

Accounts receivable

 1,035 

 

 1,145 

 

Deferred income taxes

 270 

 

 134 

 

Interest receivable

 40 

 

 29 

 

Trading-related receivables and deposits, net

 3,047 

 

 3,370 

 

Derivative trading instruments

 4,068 

 

 4,502 

 

Commodities owned

 1,845 

 

 2,498 

 

Inventories

 215 

 

 205 

 

Regulatory assets

 193 

 

 255 

 

Other

 317 

 

 297 

 

 

Current assets of continuing operations

 11,954 

 

 13,216 

 

 

Current assets of discontinued operations

 62 

 

 611 

 

 

 

Total current assets

 12,016 

 

 13,827 

 

 

 

 

 

 

 

 

Investments and other assets:

 

Due from unconsolidated affiliates

 - 

 

 21 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 353 

 

 398 

 

Regulatory assets arising from pension and other postretirement

 

 

benefit obligations

 356 

 

 213 

 

Other regulatory assets

 472 

 

 500 

 

Nuclear decommissioning trusts

 702 

 

 638 

 

Investments

 1,086 

 

 1,091 

 

Sundry

 789 

 

 802 

 

 

 

Total investments and other assets

 3,758 

 

 3,663 

Property, plant and equipment, net

 13,175 

 

 11,756 

Total assets

 $28,949 

 

 $29,246 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

Current liabilities:

 

Short-term debt

 $252 

 

 $1,043 

 

Accounts payable

 1,587 

 

 1,394 

 

Income taxes payable

 9 

 

 86 

 

Trading-related payables

 3,211 

 

 4,127 

 

Derivative trading instruments

 2,304 

 

 3,246 

 

Commodities sold with agreement to repurchase

 537 

 

 634 

 

Dividends and interest payable

 145 

 

 140 

 

Regulatory balancing accounts, net

 332 

 

 192 

 

Fixed-price contracts and other derivatives

 87 

 

 130 

 

Current portion of long-term debt

 681 

 

 98 

 

Other

 1,197 

 

 1,012 

 

 

Current liabilities of continuing operations

 10,342 

 

 12,102 

 

 

Current liabilities of discontinued operations

 7 

 

 151 

 

 

 

Total current liabilities

 10,349 

 

 12,253 

Long-term debt

 4,525 

 

 4,815 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

Due to unconsolidated affiliate

 162 

 

 162 

 

Customer advances for construction

 126 

 

 110 

 

Pension and other postretirement benefit obligations, net of plan assets

 609 

 

 391 

 

Deferred income taxes

 412 

 

 214 

 

Deferred investment tax credits

 67 

 

 73 

 

Regulatory liabilities arising from removal obligations

 2,330 

 

 2,313 

 

Asset retirement obligations

 1,128 

 

 958 

 

Other regulatory liabilities

 221 

 

 200 

 

Fixed-price contracts and other derivatives

 358 

 

 400 

 

Deferred credits and other

 972 

 

 1,018 

 

 

 

Total deferred credits and other liabilities

 6,385 

 

 5,839 

Preferred stock of subsidiaries

 179 

 

 179 

Shareholders' equity

 7,511 

 

 6,160 

Total liabilities and shareholders' equity

 $28,949 

 

 $29,246 

 

 

 

 

 

 

 

 

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.





7





SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

 

 

 

 

Years ended

 

 

 

December 31,

(Dollars in millions)

2006

 

2005

Cash Flows from Operating Activities:

Income from continuing operations

 $1,091 

 

 $913 

Adjustments to reconcile income from continuing operations to net cash

  provided by operating activities:

 

Depreciation and amortization

 657 

 

 626 

 

Gains on sale of assets, net

 (1)

 

 (112)

 

Impairment losses

 9 

 

 85 

 

Deferred income taxes and investment tax credits

 77 

 

 (298)

 

Non-cash rate reduction bond expense

 60 

 

 68 

 

Equity in income of unconsolidated subsidiaries

 (156)

 

 (66)

 

Other

 38 

 

 (6)

Quasi-reorganization resolution

 12 

 

 - 

Net changes in other working capital components

 (183)

 

 (1,196)

Changes in other assets

 20 

 

 21 

Changes in other liabilities

 42 

 

 458 

 

Net cash provided by continuing operations

 1,666 

 

 493 

 

Net cash provided by (used in) discontinued operations

 (37)

 

 31 

 

Net cash provided by operating activities

 1,629 

 

 524 

 

 

 

 

 

 

Cash Flows from Investing Activities:

Expenditures for property, plant and equipment

 (1,907)

 

 (1,377)

Proceeds from sale of assets from continuing operations

 40 

 

 277 

Expenditures for investments and acquisition of subsidiaries, net of cash acquired

 (257)

 

 (86)

Distribution from investment

 104 

 

 - 

Purchases of nuclear decommissioning and other trust assets

 (546)

 

 (299)

Proceeds from sales by nuclear decommissioning and other trusts

 503 

 

 262 

Dividends received from unconsolidated affiliates

 431 

 

 73 

Other

 (27)

 

 (12)

 

Net cash used in continuing operations

 (1,659)

 

 (1,162)

 

Net cash provided by (used in) discontinued operations

 793 

 

 (25)

 

Net cash used in investing activities

 (866)

 

 (1,187)

 

 

 

 

 

 

Cash Flows from Financing Activities:

Common dividends paid

 (283)

 

 (268)

Issuances of common stock

 97 

 

 694 

Repurchases of common stock

 (37)

 

 (95)

Issuances of long-term debt

 552 

 

 762 

Payments on long-term debt

 (263)

 

 (529)

Redemption of mandatorily redeemable preferred securities

 - 

 

 (200)

Increase (decrease) in short-term debt, net

 (791)

 

 659 

Financing transaction related to Sempra Financial

 83 

 

 - 

Other

 28 

 

 (6)

 

Net cash provided by (used in) continuing operations

 (614)

 

 1,017 

 

Net cash provided by discontinued operations

 2 

 

 - 

 

Net cash provided by (used in) financing activities

 (612)

 

 1,017 

Increase in cash and cash equivalents

 151 

 

 354 

Cash and cash equivalents, January 1

 769 

 

 415 

Cash and cash equivalents, December 31

 $920 

 

 $769 

 

 

 

 

 

 

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.





8





SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31,

 

December 31,

(Dollars in millions)

2006

 

2005

 

2006

 

2005

Net Income

(unaudited)

 

 

 

 

Sempra Utilities:

 

San Diego Gas & Electric

 $55 

 

 $72 

 

 $237 

 

 $262 

 

Southern California Gas

 55 

 

 48 

 

 223 

 

 211 

 

 

Total Sempra Utilities

 110 

 

 120 

 

 460 

 

 473 

 

 

 

 

 

 

 

 

 

 

Sempra Global:

 

Sempra Commodities

 214 

 

 244 

 

 504 

 

 460 

 

Sempra Generation*

 53 

 

 58 

 

 375 

 

 149 

 

Sempra Pipelines & Storage*

 (223)

 

 16 

 

 (165)

 

 64 

 

Sempra LNG

 (7)

 

 (10)

 

 (42)

 

 (25)

 

 

Total Sempra Global

 37 

 

 308 

 

 672 

 

 648 

 

 

 

 

 

 

 

 

 

 

Parent & Other

 (18)

 

 (71)

 

 (41)

 

 (208)

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 129 

 

 357 

 

 1,091 

 

 913 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations, Net of Income Tax

 (4)

 

 (2)

 

 315 

 

 7 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 $125 

 

 $355 

 

 $1,406 

 

 $920 

 

 

 

 

 

 

 

 

 

 

 

* Excludes amounts now classified as discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31,

 

December 31,

(Dollars in millions)

2006

 

2005

 

2006

 

2005

Capital Expenditures and Investments

(unaudited)

 

 

 

 

Sempra Utilities:

 

San Diego Gas & Electric

 $190 

 

 $122 

 

 $1,070 

 

 $464 

 

Southern California Gas

 129 

 

 116 

 

 413 

 

 361 

 

   Total Sempra Utilities

 319 

 

 238 

 

 1,483 

 

 825 

 

 

 

 

 

 

 

 

 

 

Sempra Global:

 

Sempra Commodities

 10 

 

 11 

 

 53 

 

 72 

 

Sempra Generation

 3 

 

 36 

 

 40 

 

 229 

 

Sempra Pipelines & Storage

 202 

 

 8 

 

 414 

 

 18 

 

Sempra LNG

 153 

 

 137 

 

 619 

 

 293 

 

   Total Sempra Global

 368 

 

 192 

 

 1,126 

 

 612 

 

 

 

 

 

 

 

 

 

 

Parent & Other (includes transfer of Palomar)

 10 

 

 13 

 

 (445)

 

 26 

 

 

 

 

 

 

 

 

 

 

Consolidated Capital Expenditures and Investments

 $697 

 

 $443 

 

 $2,164 

 

 $1,463 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.

 

 

 

 





9





                        SEMPRA ENERGY

 

 

 

 

                               Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

SEMPRA UTILITIES

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

Revenues (Dollars in millions)

 

SDG&E (excludes intercompany sales)

 $692 

 

 $746 

 

 $2,770 

 

 $2,493 

 

 

SoCalGas (excludes intercompany sales)

 $1,017 

 

 $1,513 

 

 $4,129 

 

 $4,549 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Sales (bcf)

 110 

 

 105 

 

 402 

 

 395 

 

Transportation and Exchange (bcf)

 127 

 

 113 

 

 546 

 

 494 

 

Total Deliveries (bcf)

 237 

 

 218 

 

 948 

 

 889 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 6,468 

 

 6,383 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

 3,939 

 

 4,002 

 

 16,836 

 

 15,990 

 

Direct Access (Millions of kWhs)

 821 

 

 720 

 

 3,390 

 

 3,213 

 

Total Deliveries (Millions of kWhs)

 4,760 

 

 4,722 

 

 20,226 

 

 19,203 

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 1,355 

 

 1,338 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

Power Sold (Millions of kWhs)

 5,706 

 

 4,932 

(1)

 19,760 

 

 17,063 

(1)

 

 

 

 

 

 

 

 

 

 

 

(1)

Revised to exclude the Twin Oaks, Coleto Creek and Topaz power plants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.)

Natural Gas Sales (bcf)

 

Argentina

 70 

 

 62 

 

 278 

 

 272 

 

 

Mexico

 10 

 

 9 

 

 44 

 

 42 

 

 

Chile

 - 

 

 1 

 

 2 

 

 3 

 

Natural Gas Customers (Thousands)

 

Argentina

 1,542 

 

 1,495 

 

 

Mexico

 101 

 

 98 

 

 

Chile

 39 

 

 38 

 

Electric Sales (Millions of kWhs)

 

Peru

 1,620 

 

 1,113 

 

 5,108 

 

 4,298 

 

 

Chile

 762 

 

 537 

 

 2,324 

 

 2,289 

 

Electric Customers (Thousands)

 

Peru

 788 

 

 767 

 

 

Chile

 534 

 

 521 

 





10





SEMPRA ENERGY

Table E (Continued)

 

 

 

 

 

 

 

SEMPRA COMMODITIES

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

December 31,

 

December 31,

Margin* (Dollars in millions)

2006

2005

 

2006

2005

Geographical:

 

North America

 $474 

 $543 

 

 $1,313 

 $1,091 

 

Europe/Asia

 173 

 142 

 

 325 

 255 

 

  Total

 $647 

 $685 

 

 $1,638 

 $1,346 

 

 

 

 

 

 

 

Product Line:

 

Gas

 $362 

 $317 

 

 $792 

 $439 

 

Power

 104 

 209 

 

 431 

 443 

 

Oil - Crude & Products

 85 

 132 

 

 198 

 292 

 

Metals

 60 

 12 

 

 138 

 54 

 

Other

 36 

 15 

 

 79 

 118 

 

  Total

 $647 

 $685 

 

 $1,638 

 $1,346 

 

 

 

 

 

 

 

* Margin consists of net revenues less related costs (primarily brokerage, transportation and storage) plus or minus net interest expense/income, and is used by management in evaluating its geographical and product line performance.

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

December 31,

 

December 31,

Effect of EITF 02-03  (Dollars in millions)

2006

2005

 

2006

2005

 

 

 

 

 

 

 

 

Mark-to-Market Earnings **

 $158 

 $209 

 

 $487 

 $491 

 

Effect of EITF 02-03 ***

 56 

 35 

 

 17 

 (31)

 

GAAP Net Income

 $214 

 $244 

 

 $504 

 $460 

 

 

 

 

 

 

 

** Represents earnings from the fair market value of all commodities transactions.  This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed.

*** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories, capacity contracts for transportation and storage and derivative hedging activities related to Section 29 tax credits.

 

 

 

 

 

 

 

 

 

Fair

 

 

 

 

 

 

Market Value

 

 

 

 

 

 

December 31,

Scheduled Maturity (in months)

Net Unrealized Revenue (Dollars in millions)

2006

0 - 12

13 - 24

25 - 36

> 36

Sources of Over-the-Counter (OTC) Fair Value:

 

Prices actively quoted

 $1,746 

 $959 

 $575 

 $47 

 $165 

 

Prices provided by other external sources

 28 

 (6)

 - 

 2 

 32 

 

Prices based on models and other valuation methods

 (16)

 - 

 - 

 - 

 (16)

 

     Total OTC Fair Value (1)

 1,758 

 953 

 575 

 49 

 181 

 

 

 

 

 

 

 

 

Maturity of OTC Fair Value - Cumulative Percentages

54.2%

86.9%

89.7%

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange Contracts (2)

 155 

 412 

 (188)

 55 

 (124)

 

 

 

 

 

 

 

Total Net Unrealized Revenue at December 31, 2006

 $1,913 

 $1,365 

 $387 

 $104 

 $57 

 

 

 

 

 

 

 

 

Net Unrealized Revenue - Cumulative Percentages

71.4%

91.6%

97.0%

100.0%

 

 

 

 

 

 

 

(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts

(2) Cash received or (paid) associated with open Exchange Contracts

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

Credit Quality of Unrealized Trading Assets (net of margin)

2006

2005

 

 

 

Commodity Exchanges

13%

2%

 

 

 

Investment Grade

57%

75%

 

 

 

Below Investment Grade

30%

23%

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

December 31,

 

December 31,

Risk Adjusted Performance Indicators (Mark-to-Market Basis)

2006

2005

 

2006

2005

VaR at 95% (Dollars in millions) (1)

 $17.3 

 $14.2 

 

 $16.2 

 $11.3 

VaR at 99% (Dollars in millions) (2)

 $24.3 

 $20.0 

 

 $22.8 

 $15.9 

Risk Adjusted Return on Capital (RAROC) (3)

37%

61%

 

34%

44%

 

 

 

 

 

 

 

(1) Average Daily Value-at-Risk for the period using a 95% confidence level

(2) Average Daily Value-at-Risk for the period using a 99% confidence level

(3) Average Daily Trading Margin/Average Daily VaR at 95% confidence level

 

 

 

 

 

 

 

Physical Statistics

Natural Gas (bcf/Day)

12.2

12.1

 

12.0

11.7

Electric (Billions of kWhs)

125.5

112.4

 

475.5

413.2

Oil & Liquid Products (Millions Bbls/Day)

0.7

1.4

 

0.7

1.0





11




Exhibit 99.2

Exhibit 99.2




SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 $696 

 

 $1,036 

 

 $1,078 

 

 $422 

 

 $68 

 

 $(1)

 

 $(54)

 

 

 $3,245 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 519 

 

 869 

 

 701 

 

 334 

 

 62 

 

 8 

 

 (1)

 

 

 2,492 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 - 

 

 1 

 

 2 

 

 8 

 

 1 

 

 1 

 

 - 

 

 

 13 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 72 

 

 67 

 

 6 

 

 12 

 

 3 

 

 - 

 

 6 

 

 

 166 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on Sale of Assets

 - 

 

 (1)

 

 - 

 

 - 

 

 - 

 

 - 

 

 (1)

 

 

 (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment Losses

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 6 

 

 

 6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 105 

 

 100 

 

 369 

 

 68 

 

 2 

 

 (10)

 

 (64)

 

 

 570 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 (7)

 

 - 

 

 - 

 

 1 

 

 (1)

 

 - 

 

 13 

 

 

 6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 98 

 

 100 

 

 369 

 

 69 

 

 1 

 

 (10)

 

 (51)

 

 

 576 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 17 

 

 11 

 

 14 

 

 (11)

 

 (2)

 

 (3)

 

 19 

 

 

 45 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 26 

 

 34 

 

 125 

 

 27 

 

 20 

 

 - 

 

 (52)

 

 

 180 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Losses of Certain Unconsolidated Subsidiaries

 - 

 

 - 

 

 (16)

 

 - 

 

 (206)

 

 - 

 

 - 

 

 

 (222)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 (4)

 

 

 (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 $55 

 

 $55 

 

 $214 

 

 $53 

 

 $(223)

 

 $(7)

 

 $(22)

 

 

 $125 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 $751 

 

 $1,526 

 

 $1,029 

 

 $610 

 

 $90 

 

 $- 

 

 $(74)

 

 

 $3,932 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 543 

 

 1,348 

 

 678 

 

 414 

 

 88 

 

 12 

 

 (28)

 

 

 3,055 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 8 

 

 11 

 

 (7)

 

 25 

 

 1 

 

 1 

 

 171 

 

 

 210 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 67 

 

 66 

 

 7 

 

 11 

 

 3 

 

 - 

 

 6 

 

 

 160 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on Sale of Assets

 - 

 

 - 

 

 (8)

 

 - 

 

 - 

 

 - 

 

 - 

 

 

 (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment Losses

 2 

 

 - 

 

 - 

 

 66 

 

 - 

 

 - 

 

 3 

 

 

 71 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 131 

 

 101 

 

 359 

 

 94 

 

 (2)

 

 (13)

 

 (226)

 

 

 444 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 10 

 

 (1)

 

 1 

 

 12 

 

 4 

 

 1 

 

 - 

 

 

 27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 141 

 

 100 

 

 360 

 

 106 

 

 2 

 

 (12)

 

 (226)

 

 

 471 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 19 

 

 10 

 

 15 

 

 7 

 

 - 

 

 1 

 

 19 

 

 

 71 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 50 

 

 42 

 

 101 

 

 41 

 

 (1)

 

 (3)

 

 (174)

 

 

 56 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Income of Certain Unconsolidated Subsidiaries

 - 

 

 - 

 

 - 

 

 - 

 

 13 

 

 - 

 

 - 

 

 

 13 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 (2)

 

 

 (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 $72 

 

 $48 

 

 $244 

 

 $58 

 

 $16 

 

 $(10)

 

 $(73)

 

 

 $355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) 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 taxes, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 











SEMPRA ENERGY

 

 

 

Table F (Unaudited) (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 $2,785 

 

 $4,181 

 

 $3,256 

 

 $1,454 

 

 $295 

 

 $(22)

 

 $(188)

 

 

 $11,761 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 2,015 

 

 3,482 

 

 2,338 

 

 1,120 

 

 272 

 

 37 

 

 (9)

 

 

 9,255 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 3 

 

 (2)

 

 10 

 

 38 

 

 4 

 

 1 

 

 2 

 

 

 56 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 291 

 

 267 

 

 25 

 

 46 

 

 12 

 

 - 

 

 16 

 

 

 657 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (Gains) on Sale of Assets, Net

 (1)

 

 (5)

 

 7 

 

 - 

 

 - 

 

 - 

 

 (2)

 

 

 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment Losses

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 9 

 

 

 9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 477 

 

 439 

 

 876 

 

 250 

 

 7 

 

 (60)

 

 (204)

 

 

 1,785 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 8 

 

 (1)

 

 - 

 

 355 

 

 2 

 

 - 

 

 17 

 

 

 381 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 485 

 

 438 

 

 876 

 

 605 

 

 9 

 

 (60)

 

 (187)

 

 

 2,166 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 96 

 

 42 

 

 62 

 

 (13)

 

 (4)

 

 - 

 

 69 

 

 

 252 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 152 

 

 173 

 

 294 

 

 243 

 

 12 

 

 (18)

 

 (215)

 

 

 641 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Losses of Certain Unconsolidated Subsidiaries

 - 

 

 - 

 

 (16)

 

 - 

 

 (166)

 

 - 

 

 - 

 

 

 (182)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 315 

 

 

 315 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 $237 

 

 $223 

 

 $504 

 

 $375 

 

 $(165)

 

 $(42)

 

 $274 

 

 

 $1,406 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 $2,512 

 

 $4,617 

 

 $2,724 

 

 $1,708 

 

 $317 

 

 $- 

 

 $(366)

 

 

 $11,512 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 1,802 

 

 3,905 

 

 2,077 

 

 1,312 

 

 297 

 

 35 

 

 (155)

 

 

 9,273 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 52 

 

 99 

 

 38 

 

 43 

 

 2 

 

 1 

 

 316 

 

 

 551 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 264 

 

 264 

 

 28 

 

 39 

 

 12 

 

 - 

 

 19 

 

 

 626 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on Sale of Assets

 (1)

 

 - 

 

 (106)

 

 - 

 

 (4)

 

 - 

 

 (1)

 

 

 (112)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment Losses

 2 

 

 2 

 

 - 

 

 66 

 

 6 

 

 - 

 

 9 

 

 

 85 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 393 

 

 347 

 

 687 

 

 248 

 

 4 

 

 (36)

 

 (554)

 

 

 1,089 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 14 

 

 (2)

 

 - 

 

 27 

 

 7 

 

 1 

 

 4 

 

 

 51 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 407 

 

 345 

 

 687 

 

 275 

 

 11 

 

 (35)

 

 (550)

 

 

 1,140 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 56 

 

 37 

 

 35 

 

 23 

 

 (1)

 

 2 

 

 96 

 

 

 248 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 89 

 

 97 

 

 192 

 

 103 

 

 3 

 

 (12)

 

 (438)

 

 

 34 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Income of Certain Unconsolidated Subsidiaries

 - 

 

 - 

 

 - 

 

 - 

 

 55 

 

 - 

 

 - 

 

 

 55 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 7 

 

 

 7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 $262 

 

 $211 

 

 $460 

 

 $149 

 

 $64 

 

 $(25)

 

 $(201)

 

 

 $920 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) 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 taxes, 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.