1.0.0.3 false GOODWILL AND INTANGIBLE ASSETS false 1 $ false false 2 Notes to Consolidated Financial Statements 0 sre_NotesToConsolidatedFinancialStatementsAbstract sre false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 Goodwill and Other Intangible Assets Disclosure 1 us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div style="font-size:12pt"><p>Goodwill and other Intangible Assets<br />Goodwill<br />Goodwill is the excess of the purchase price over the fair value of the net assets of acquired companies. Goodwill is not amortized but is tested annually on October 1 for impairment. Impairment of goodwill occurs when the carrying amount (book value) of goodwill exceeds its implied fair value. If the book value of goodwill is greater than the fair value on the test date, an impairment loss is recorded. <br />In connection with the acquisition of EnergySouth in October 2008, which we discuss in Note 3, Sempra Pipelines & Storage initially recorded goodwill of $67 million, which was reduced to $62 million by purchase price adjustments in 2009.<br />Goodwill included in Goodwill and Other Intangible Assets on the Sempra Energy Consolidated Balance Sheets is recorded as follows:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="355" align="left" colspan="5" style="border-top: 1px solid #000000;" height="17"><b>GOODWILL</b></td></tr><tr><td width="355" align="left" height="17" colspan="5"><i>(Dollars in millions)</i></td></tr><tr><td height="17" width="183" align="left"> </td><td width="86" align="center" height="17" colspan="2">December 31,</td><td width="86" align="center" height="17" colspan="2">December 31,</td></tr><tr><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="183"> </td><td width="86" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">2009 </td><td width="86" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">2008 </td></tr><tr><td height="17" style="border-top: 1px solid #000000;" align="left" width="183">Sempra Pipelines & Storage</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="64"> 62 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="64"> 67 </td></tr><tr><td height="17" width="183" align="left">Parent and Other</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="64"> 6 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="64"> 6 </td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="183"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="64"> 68 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="64"> 73 </td></tr></table><p>We provide additional information concerning goodwill related to our equity method investments and the impairment of investments in unconsolidated subsidiaries in Note 4.<br />Other Intangible Assets<br />Sempra Pipelines & Storage recorded $460 million of intangible assets in connection with the acquisition of EnergySouth. These intangible assets represent storage and development rights related to the Bay Gas and Mississippi Hub natural gas storage facilities and were recorded at estimated fair value as of the date of the acquisition using discounted cash flows analysis. Our important assumptions in determining fair value include estimated future cash flows, the estimated useful life of the intangible assets and our use of appropriate discount rates. We are amortizing these intangible assets over their estimated useful lives as shown in the table below. <br />Intangible assets included in Goodwill and Other Intangible Assets on the Sempra Energy Consolidated Balance Sheets are recorded as follows:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="498" align="left" colspan="6" style="border-top: 1px solid #000000;" height="19"><b>OTHER INTANGIBLE ASSETS</b></td></tr><tr><td width="498" align="left" height="19" colspan="6"><i>(Dollars in millions)</i></td></tr><tr><td height="13" width="183" align="left"> </td><td height="13" width="141" align="center">Amortization period </td><td width="87" align="center" height="13" colspan="2">December 31,</td><td width="87" align="center" height="13" colspan="2">December 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="183"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="141">(years)</td><td width="87" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">2009 </td><td width="87" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">2008 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="183">Storage rights</td><td height="16" style="border-top: 1px solid #000000;" align="center" width="141">46 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="61"> 138 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="61"> 138 </td></tr><tr><td height="16" width="183" align="left">Development rights</td><td height="16" width="141" align="center">50 </td><td height="16" width="26" align="left"> </td><td height="16" width="61" align="right"> 322 </td><td height="16" width="26" align="left"> </td><td height="16" width="61" align="right"> 322 </td></tr><tr><td height="16" width="183" align="left">Other</td><td height="16" width="141" align="center">15 years to indefinite</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 9 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 9 </td></tr><tr><td height="16" width="183" align="left">    Total</td><td height="16" width="141" align="left"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-top: 1px solid #000000;" align="right" width="61"> 469 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-top: 1px solid #000000;" align="right" width="61"> 469 </td></tr><tr><td height="16" width="183" align="left">Less accumulated amortization</td><td height="16" width="141" align="left"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> (13)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> (3)</td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="183">    Total</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="141"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 456 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 466 </td></tr></table><p>Amortization expense related to the above intangible assets was $10 million in 2009, $3 million in 2008 and a negligible amount in 2007. We estimate the aggregate amortization expense for the next five years to be $10 million per year.</p></div> Goodwill and other Intangible AssetsGoodwillGoodwill is the excess of the purchase price over the fair value of the net assets of acquired companies. Goodwill false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true