Southern California Gas Company PFD 6% (SOCGM) 8-K Results of Operations and Financial Condition

SEMPRA ENERGY
Table F (Unaudited)
Statement of Operations Data by Segment
Three Months Ended December 31, 2014
(Dollars in millions)		SDG&E	SoCalGas	Sempra South American Utilities	Sempra Mexico	Sempra Renewables	Sempra Natural Gas	Consolidating Adjustments, Parent & Other	Total
Revenues		$     1,046	$          998	$           387	$          197	$            10	$          231	$            (122)	$  2,747
Cost of sales and other expenses		(672)	(771)	(309)	(137)	(15)	(232)	89	(2,047)
Depreciation and amortization		(135)	(110)	(14)	(17)	(1)	(11)	(2)	(290)
Plant closure loss		(19)	-	-	-	-	-	-	(19)
Gain on sale of equity interest		-	-	-	-	14	-	-	14
Equity earnings (losses), before income tax		-	-	-	-	2	18	(1)	19
Other income (expense), net		11	7	15	(23)	-	-	9	19
Income (loss) before interest and tax(1)		231	124	79	20	10	6	(27)	443
Net interest (expense) income(2)		(50)	(19)	(5)	(2)	(1)	7	(59)	(129)
Income tax (expense) benefit		(53)	(29)	1	32	9	(2)	33	(9)
Equity earnings, net of income tax		-	-	-	16	-	-	-	16
(Earnings) losses attributable to noncontrolling interests		-	-	(12)	(13)	-	-	1	(24)
Earnings (losses)		$  ��     128	$            76	$             63	$            53	$            18	$            11	$             (52)	$     297
Three Months Ended December 31, 2013
(Dollars in millions)		SDG&E	SoCalGas	Sempra South American Utilities	Sempra Mexico	Sempra Renewables	Sempra Natural Gas	Consolidating Adjustments, Parent & Other	Total
Revenues		$     1,000	$       1,042	$           376	$          156	$             6	$          225	$            (100)	$  2,705
Cost of sales and other expenses		(647)	(817)	(292)	(110)	(15)	(195)	74	(2,002)
Depreciation and amortization		(127)	(103)	(15)	(16)	(1)	(21)	(2)	(285)
Equity earnings (losses), before income tax		-	-	-	-	-	14	(4)	10
Other income (expense), net		10	2	3	19	-	(4)	31	61
Income (loss) before interest and tax(1)		236	124	72	49	(10)	19	(1)	489
Net interest (expense) income(2)		(50)	(17)	(4)	(11)	5	(5)	(59)	(141)
Income tax (expense) benefit		(44)	(9)	(17)	(16)	11	(5)	41	(39)
Equity (losses) earnings, net of income tax		-	-	(1)	12	-	-	-	11
Earnings attributable to noncontrolling interests		(23)	-	(7)	(8)	-	-	-	(38)
Earnings (losses)		$        119	$            98	$             43	$            26	$             6	$             9	$             (19)	$     282
(1)	Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' 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)	Includes interest income, interest expense and preferred dividends of subsidiary.

SEMPRA ENERGY
Table F (Unaudited)
Statement of Operations Data by Segment
Year Ended December 31, 2014
(Dollars in millions)		SDG&E		SoCalGas	Sempra South American Utilities	Sempra Mexico	Sempra Renewables	Sempra Natural Gas	Consolidating Adjustments, Parent & Other	Total
Revenues		$     4,329		$       3,855	$         1,534	$          818	$            35	$          979	$            (515)	$    11,035
Cost of sales and other expenses		(2,834)		(2,903)	(1,225)	(562)	(51)	(955)	433	(8,097)
Depreciation and amortization		(530)		(431)	(55)	(64)	(5)	(61)	(10)	(1,156)
Plant closure loss		(6)	(1)	-	-	-	-	-	-	(6)
Gain on sale of equity interests and assets		-		-	2	19	41	-	-	62
Equity earnings (losses), before income tax		-		-	-	-	20	62	(1)	81
Other income, net		40		20	30	4	1	2	40	137
Income (loss) before interest and tax(2)		999		541	286	215	41	27	(53)	2,056
Net interest (expense) income(3)		(202)		(70)	(19)	(13)	(4)	4	(229)	(533)
Income tax (expense) benefit		(270)		(139)	(58)	(5)	44	20	108	(300)
Equity (losses) earnings, net of income tax		-		-	(4)	42	-	-	-	38
(Earnings) losses attributable to noncontrolling interests		(20)		-	(33)	(47)	-	(1)	1	(100)
Earnings (losses)		$        507		$          332	$           172	$          192	$            81	$            50	$            (173)	$      1,161
Year Ended December 31, 2013
(Dollars in millions)		SDG&E		SoCalGas	Sempra South American Utilities	Sempra Mexico	Sempra Renewables	Sempra Natural Gas	Consolidating Adjustments, Parent & Other	Total
Revenues		$     4,066		$       3,736	$         1,495	$          675	$            82	$          908	$            (405)	$    10,557
Cost of sales and other expenses		(2,590)		(2,814)	(1,169)	(452)	(52)	(818)	335	(7,560)
Depreciation and amortization		(494)		(383)	(59)	(63)	(21)	(81)	(12)	(1,113)
Plant closure loss		(200)		-	-	-	-	-	-	(200)
Gain on sale of equity interests and assets		-		-	-	-	40	74	-	114
Equity (losses) earnings, before income tax		-		-	-	-	(12)	47	(4)	31
Other income, net		40		11	9	24	9	3	44	140
Income (loss) before interest and tax(2)		822		550	276	184	46	133	(42)	1,969
Net interest expense(3)		(203)		(70)	(13)	(15)	(3)	(28)	(215)	(547)
Income tax (expense) benefit		(191)		(116)	(67)	(60)	19	(40)	89	(366)
Equity (losses) earnings, net of income tax		-		-	(15)	39	-	-	-	24
Earnings attributable to noncontrolling interests		(24)		-	(28)	(26)	-	(1)	-	(79)
Earnings (losses)		$        404		$          364	$           153	$          122	$            62	$            64	$            (168)	$      1,001
(1)	After taxes, including a $17 million charge to reduce certain tax regulatory assets attributed to SONGS, the adjustment to loss from plant closure is a $21 million charge to earnings.
(2)	Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' 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)	Includes interest income and interest expense. In 2014, includes preferred dividends of subsidiary. In 2013, includes preferred dividends of subsidiaries and call premium on preferred stock.