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 September 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		$	1,236		$	684		$	376		$	336		$	26		$	152		$	(131	)	$	2,679
Cost of sales and other expenses		(769		)	(542		)	(296		)	(153		)	(22		)	(154		)	104			(1,832		)
Depreciation and amortization		(170		)	(132		)	(14		)	(41		)	(9		)	(10		)	(2		)	(378		)
Impairments		(351		)	—			—			(1		)	—			—			—			(352		)
Equity earnings, before income tax		—			—			—			—			7			3			—			10
Other income, net		16			8			3			4			—			1			9			41
(Loss) income before interest and tax (1)		(38		)	18			69			145			2			(8		)	(20		)	168
Net interest (expense) income (2)		(53		)	(25		)	(4		)	(14		)	(2		)	5			(60		)	(153		)
Income tax benefit (expense)		72			14			(18		)	(34		)	9			2			39			84
Equity earnings, net of income tax		—			—			1			2			—			—			—			3
(Earnings) losses attributable to noncontrolling interests		(9		)	—			(6		)	(33		)	6			(3		)	—			(45		)
(Losses) earnings		$	(28	)	$	7		$	42		$	66		$	15		$	(4	)	$	(41	)	$	57
Three months ended September 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		$	1,209		$	686		$	385		$	196		$	12		$	164		$	(117	)	$	2,535
Cost of sales and other expenses		(725		)	(526		)	(302		)	(121		)	(14		)	(163		)	101			(1,750		)
Depreciation and amortization		(161		)	(121		)	(14		)	(15		)	(1		)	(12		)	(4		)	(328		)
Impairments		—			(1		)	—			(131		)	—			—			—			(132		)
Gain on sale of assets		—			—			1			—			—			130			—			131
Equity earnings, before income tax		—			—			—			—			12			—			—			12
Remeasurement of equity method investment		—			—			—			617			—			—			—			617
Other income (expense), net		11			8			3			(7		)	—			1			10			26
Income (loss) before interest and tax (1)		334			46			73			539			9			120			(10		)	1,111
Net interest (expense) income (2)		(49		)	(25		)	(4		)	(3		)	1			8			(57		)	(129		)
Income tax (expense) benefit		(91		)	(21		)	(17		)	(142		)	7			(51		)	33			(282		)
Equity earnings, net of income tax		—			—			1			18			—			—			—			19
(Earnings) losses attributable to noncontrolling interests		(11		)	—			(7		)	(80		)	—			—			1			(97		)
Earnings (losses)		$	183		$	—		$	46		$	332		$	17		$	77		$	(33	)	$	622
(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
Nine months ended September 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		$	3,351		$	2,695		$	1,169		$	873		$	74		$	406		$	(325	)	$	8,243
Cost of sales and other expenses		(2,036		)	(1,891		)	(916		)	(404		)	(57		)	(353		)	263			(5,394		)
Depreciation and amortization		(499		)	(384		)	(40		)	(114		)	(28		)	(31		)	(10		)	(1,106		)
Impairments		(351		)	—			—			(72		)	—			—			—			(423		)
Equity earnings, before income tax		—			—			—			—			25			6			—			31
Other income, net		49			28			8			191			1			2			22			301
Income (loss) before interest and tax (1)		514			448			221			474			15			30			(50		)	1,652
Net interest (expense) income (2)		(151		)	(77		)	(13		)	(61		)	(7		)	14			(173		)	(468		)
Income tax (expense) benefit		(72		)	(103		)	(57		)	(278		)	25			(17		)	124			(378		)
Equity earnings (losses), net of income tax		—			—			2			(7		)	—			—			—			(5		)
(Earnings) losses attributable to noncontrolling interests		(15		)	—			(19		)	(23		)	16			(3		)	—			(44		)
Earnings (losses)		$	276		$	268		$	134		$	105		$	49		$	24		$	(99	)	$	757
Nine months ended September 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		$	3,192		$	2,336		$	1,170		$	481		$	25		$	384		$	(275	)	$	7,313
Cost of sales and other expenses		(1,985		)	(1,637		)	(937		)	(289		)	(40		)	(653		)	229			(5,312		)
Depreciation and amortization		(478		)	(355		)	(41		)	(47		)	(4		)	(37		)	(8		)	(970		)
Impairments		—			(23		)	—			(131		)	—			—			—			(154		)
Gain on sale of assets		—			—			1			—			—			130			—			131
Equity earnings (losses), before income tax		—			—			—			—			30			(26		)	—			4
Remeasurement of equity method investment		—			—			—			617			—			—			—			617
Other income (expense), net		38			24			10			(11		)	1			2			34			98
Income (loss) before interest and tax (1)		767			345			203			620			12			(200		)	(20		)	1,727
Net interest (expense) income (2)		(145		)	(72		)	(14		)	(8		)	2			19			(185		)	(403		)
Income tax (expense) benefit		(204		)	(75		)	(46		)	(170		)	29			77			105			(284		)
Equity earnings, net of income tax		—			—			3			66			—			—			—			69
Losses (earnings) attributable to noncontrolling interests		1			—			(19		)	(101		)	—			—			1			(118		)
Earnings (losses)		$	419		$	198		$	127		$	407		$	43		$	(104	)	$	(99	)	$	991
(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.