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

SEMPRA ENERGY
Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Three months ended June 30, 2017
(Dollars in millions)		SDG&E			SoCalGas			Sempra South American Utilities			Sempra Mexico			Sempra Renewables			Sempra LNG & Midstream			Consolidating Adjustments, Parent & Other			Total
Revenues		$	1,058		$	770		$	381		$	273		$	26		$	122		$	(97	)	$	2,533
Cost of sales and other expenses		(651		)	(549		)	(294		)	(130		)	(20		)	(71		)	78			(1,637		)
Depreciation and amortization		(166		)	(126		)	(13		)	(37		)	(10		)	(11		)	(5		)	(368		)
Impairment loss		—			—			—			(71		)	—			—			—			(71		)
Equity earnings, before income tax		—			—			—			—			16			2			—			18
Other income, net		15			9			2			60			1			—			4			91
Income (loss) before interest and tax (1)		256			104			76			95			13			42			(20		)	566
Net interest (expense) income (2)		(49		)	(27		)	(5		)	(17		)	(2		)	3			(55		)	(152		)
Income tax (expense) benefit		(54		)	(19		)	(20		)	(102		)	5			(18		)	41			(167		)
(Earnings) losses attributable to noncontrolling interests		(4		)	—			(6		)	15			7			—			—			12
Earnings (losses)		$	149		$	58		$	45		$	(9	)	$	23		$	27		$	(34	)	$	259
Three months ended June 30, 2016
(Dollars in millions)		SDG&E			SoCalGas			Sempra South American Utilities			Sempra Mexico			Sempra Renewables			Sempra LNG & Midstream			Consolidating Adjustments, Parent & Other			Total
Revenues		$	992		$	617		$	385		$	147		$	6		$	90		$	(81	)	$	2,156
Cost of sales and other expenses		(664		)	(495		)	(306		)	(86		)	(13		)	(336		)	66			(1,834		)
Depreciation and amortization		(158		)	(112		)	(14		)	(15		)	(2		)	(12		)	(1		)	(314		)
Impairment loss		—			(21		)	—			—			—			—			—			(21		)
Equity earnings, before income tax		—			—			—			—			11			3			—			14
Other income (expense), net		13			6			5			(15		)	1			1			12			23
Income (loss) before interest and tax (1)		183			(5		)	70			31			3			(254		)	(4		)	24
Net interest (expense) income (2)		(48		)	(25		)	(6		)	(3		)	—			7			(62		)	(137		)
Income tax (expense) benefit		(48		)	29			(15		)	12			9			99			20			106
Equity earnings, net of income tax		—			—			—			33			—			—			—			33
Losses (earnings) attributable to noncontrolling interests		13			—			(6		)	(16		)	—			(1		)	—			(10		)
Earnings (losses)		$	100		$	(1	)	$	43		$	57		$	12		$	(149	)	$	(46	)	$	16
(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)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Six months ended June 30, 2017
(Dollars in millions)		SDG&E			SoCalGas			Sempra South American Utilities			Sempra Mexico			Sempra Renewables			Sempra LNG & Midstream			Consolidating Adjustments, Parent & Other			Total
Revenues		$	2,115		$	2,011		$	793		$	537		$	48		$	254		$	(194	)	$	5,564
Cost of sales and other expenses		(1,267		)	(1,349		)	(620		)	(251		)	(35		)	(199		)	159			(3,562		)
Depreciation and amortization		(329		)	(252		)	(26		)	(73		)	(19		)	(21		)	(8		)	(728		)
Impairment loss		—			—			—			(71		)	—			—			—			(71		)
Equity earnings, before income tax		—			—			—			—			18			3			—			21
Other income, net		33			20			5			187			1			1			13			260
Income (loss) before interest and tax (1)		552			430			152			329			13			38			(30		)	1,484
Net interest (expense) income (2)		(98		)	(52		)	(9		)	(47		)	(5		)	9			(113		)	(315		)
Income tax (expense) benefit		(144		)	(117		)	(39		)	(244		)	16			(19		)	85			(462		)
Equity earnings (losses), net of income tax		—			—			1			(9		)	—			—			—			(8		)
(Earnings) losses attributable to noncontrolling interests		(6		)	—			(13		)	10			10			—			—			1
Earnings (losses)		$	304		$	261		$	92		$	39		$	34		$	28		$	(58	)	$	700
Six months ended June 30, 2016
(Dollars in millions)		SDG&E			SoCalGas			Sempra South American Utilities			Sempra Mexico			Sempra Renewables			Sempra LNG & Midstream			Consolidating Adjustments, Parent & Other			Total
Revenues		$	1,983		$	1,650		$	785		$	285		$	13		$	220		$	(158	)	$	4,778
Cost of sales and other expenses		(1,260		)	(1,111		)	(635		)	(168		)	(26		)	(490		)	128			(3,562		)
Depreciation and amortization		(317		)	(234		)	(27		)	(32		)	(3		)	(25		)	(4		)	(642		)
Impairment losses		—			(22		)	—			—			—			—			—			(22		)
Equity earnings (losses), before income tax		—			—			—			—			18			(26		)	—			(8		)
Other income (expense), net		27			16			7			(4		)	1			1			24			72
Income (loss) before interest and tax (1)		433			299			130			81			3			(320		)	(10		)	616
Net interest (expense) income (2)		(96		)	(47		)	(10		)	(5		)	1			11			(128		)	(274		)
Income tax (expense) benefit (3)		(113		)	(54		)	(29		)	(28		)	22			128			72			(2		)
Equity earnings, net of income tax		—			—			2			48			—			—			—			50
Losses (earnings) attributable to noncontrolling interests		12			—			(12		)	(21		)	—			—			—			(21		)
Earnings (losses) (3)		$	236		$	198		$	81		$	75		$	26		$	(181	)	$	(66	)	$	369
(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.
(3)	As adjusted for the adoption of ASU 2016-09 as of January 1, 2016.