Summary
Sempra Energy (SRE) filed this 8-K on May 11, 2012, to provide updated historical financial information following several reporting changes effective January 1, 2012. These changes include a realignment of its major subsidiaries, resulting in a new structure of reportable segments. Additionally, Sempra Energy has changed its accounting method for investment tax credits (ITC) from the flow-through method to the deferral method, a change in accounting principle that retrospectively reduced previously reported net income and earnings. The company also adopted new accounting standards for the presentation of comprehensive income (ASU 2011-05) and the deferral of certain reclassifications (ASU 2011-12). While the changes in reportable segments and the adoption of these new ASUs did not impact consolidated results of operations, financial condition, or cash flows, the ITC accounting change resulted in a decrease of $26 million, $30 million, and $7 million in net income for the years ended December 31, 2011, 2010, and 2008, respectively. This 8-K serves to present historical financial data on a basis consistent with these changes and incorporates various sections of Sempra Energy's prior 2011 Form 10-K, including business, properties, financial data, MD&A, and financial statements, as exhibits.
Key Highlights
- 1Sempra Energy realigned its major subsidiaries, leading to a change in its reportable business segments.
- 2The company changed its accounting method for investment tax credits (ITC) from flow-through to deferral.
- 3The change in ITC accounting resulted in a retrospective decrease in reported net income and earnings for fiscal years 2011, 2010, and 2008.
- 4Sempra Energy adopted new accounting standards ASU 2011-05 and ASU 2011-12 regarding the presentation of comprehensive income.
- 5The changes in segments and adoption of new ASUs did not impact consolidated results of operations, financial condition, or cash flows.
- 6The filing includes updated historical financial information consistent with the reporting changes and incorporates relevant sections from the company's 2011 Form 10-K as exhibits.
- 7This report focuses on Sempra Energy and does not provide updated information for its subsidiaries SDG&E or SoCalGas beyond what was in the combined 2011 Form 10-K.