XML 67 R16.htm IDEA: XBRL DOCUMENT v2.3.0.15
SEGMENT INFORMATION
3 Months Ended
Sep. 30, 2011
Notes to Consolidated Financial Statements [Abstract] 
Segment Information

NOTE 11. SEGMENT INFORMATION

We have five separately managed reportable segments, as follows:

  • SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County.
  • SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California.
  • Sempra Generation develops, owns and operates, or holds interests in, electric power plants and energy projects in Arizona, California, Colorado, Nevada, Indiana, Hawaii and Mexico to serve wholesale electricity markets in the United States and Mexico. Sempra Generation also includes the operating results of Sempra Rockies Marketing, which holds firm service capacity on the Rockies Express Pipeline.
  • Sempra Pipelines & Storage develops, owns and operates, or holds interests in, natural gas and propane pipelines and natural gas storage facilities in the United States and Mexico, and companies that provide natural gas or electricity services in Argentina, Chile, Mexico and Peru. We are currently pursuing the sale of our interests in the Argentine utilities, which we discuss further in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Pipelines & Storage also operates a natural gas distribution utility in Alabama.

In April 2011, Sempra Pipelines & Storage increased its interests in Chile and Peru, as we discuss in Note 3.

  • Sempra LNG develops, owns and operates receipt terminals for importing LNG into the U.S. and Mexico, and has supply and marketing agreements to purchase and sell LNG and natural gas.

We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The Sempra Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The Sempra Utilities' operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

Prior to 2011, our Sempra Commodities segment contained our investment in RBS Sempra Commodities LLP (RBS Sempra Commodities), which held commodities-marketing businesses previously owned by us. Our investment in the partnership is reported on the equity method. We and RBS, our partner in the joint venture, sold substantially all of the partnership's businesses and assets in four separate transactions completed in July, November and December of 2010 and February of 2011. We discuss these transactions and other matters concerning the partnership in Note 4 above and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

The activity in the partnership no longer meets the quantitative thresholds that require Sempra Commodities to be reported as a reportable segment under applicable GAAP, and we do not consider the remaining wind-down activities of the partnership to be of continuing significance. As a result, effective January 1, 2011, we are reporting the former Sempra Commodities segment in "All other" in the following tables and have restated prior year information to be consistent with this treatment.

Also, in the fourth quarter of 2010, we changed the composition of our reporting segments to include Sempra Rockies Marketing, which was previously included in the Sempra Commodities segment, in the Sempra Generation segment. We have revised segment disclosures for 2010 to reflect this.

The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as "All other" in the following tables consist primarily of parent organizations and the former commodities-marketing businesses.

 

SEGMENT INFORMATION                
(Dollars in millions)                
  Three months ended September 30,Nine months ended September 30,
  2011201020112010
REVENUES                
SDG&E$ 868 34%$ 811 38%$ 2,405 32%$ 2,245 34%
SoCalGas  844 33   776 37   2,776 37   2,792 42 
Sempra Generation  259 10   293 14   796 11   879 13 
Sempra Pipelines & Storage  426 16   77 3   980 13   262 4 
Sempra LNG  207 8   183 9   552 8   554 8 
Adjustments and eliminations  (2) ―   (4) ―   (1) ―   (3) ― 
Intersegment revenues(1)  (26) (1)   (20) (1)   (76) (1)   (71) (1) 
Total$ 2,576 100%$ 2,116 100%$ 7,432 100%$ 6,658 100%
INTEREST EXPENSE                
SDG&E$ 37  $ 37  $ 104  $ 99  
SoCalGas  17    17    52    50  
Sempra Generation  5    4    11    11  
Sempra Pipelines & Storage  21    10    56    25  
Sempra LNG  10    13    32    37  
All other(2)  57    59    174    181  
Intercompany eliminations(2)  (29)    (29)    (85)    (80)  
Total$ 118  $ 111  $ 344  $ 323  
INTEREST INCOME                
SoCalGas$ 1  $ 1  $ 1  $ 1  
Sempra Generation  1    6    7    11  
Sempra Pipelines & Storage  7    4    24    12  
Sempra LNG  1    1    3    1  
All other(2)  (1)    ―    ―    ―  
Intercompany eliminations(2)  (3)    (7)    (14)    (12)  
Total$ 6  $ 5  $ 21  $ 13  
DEPRECIATION AND AMORTIZATION              
SDG&E$ 108 43%$ 96 44%$ 316 43%$ 283 44%
SoCalGas  83 33   78 36   246 34   230 36 
Sempra Generation  18 7   16 7   55 8   47 7 
Sempra Pipelines & Storage  27 11   11 5   66 9   32 5 
Sempra LNG  13 5   13 6   38 5   38 6 
All other  2 1   4 2   9 1   13 2 
Total$ 251 100%$ 218 100%$ 730 100%$ 643 100%
INCOME TAX EXPENSE (BENEFIT)              
SDG&E$ 63  $ 56  $ 154  $ 131  
SoCalGas  41    42    106    132  
Sempra Generation  (8)    20    26    (12)  
Sempra Pipelines & Storage  23    23    52    36  
Sempra LNG  9    3    32    19  
All other  (60)    (176)    (101)    (221)  
Total$ 68  $ (32)  $ 269  $ 85  

SEGMENT INFORMATION (Continued)              
(Dollars in millions)                
 Three months ended September 30,Nine months ended September 30,
 2011201020112010
EQUITY EARNINGS (LOSSES)                
Earnings (losses) recorded before tax:              
Sempra Generation$ (6)  $ (1)  $ (6)  $ (2)  
Sempra Pipelines & Storage  11    10    30    32  
All other  (17)    (282)    (28)    (296)  
Total$ (12)  $ (273)  $ (4)  $ (266)  
Earnings (losses) recorded net of tax:              
Sempra Pipelines & Storage$ 6  $ (4)  $ 45  $ 42  
EARNINGS (LOSSES)                
SDG&E(3)$ 113 38%$ 106 81%$ 273 26%$ 264 58%
SoCalGas(3)  81 27   78 59   208 20   212 46 
Sempra Generation  49 17   59 45   143 13   60 13 
Sempra Pipelines & Storage  66 22   43 33   457 43   120 26 
Sempra LNG  24 8   5 4   75 7   50 11 
All other  (37) (12)   (160) (122)   (91) (9)   (247) (54) 
Total$ 296 100%$ 131 100%$ 1,065 100%$ 459 100%
          Nine months ended September 30,
           2011  2010 
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT          
SDG&E        $ 1,16257%$ 822 61%
SoCalGas          49925   337 25 
Sempra Generation          1688   32 2 
Sempra Pipelines & Storage          19210   151 11 
Sempra LNG          9 ―   9 1 
All other          1 ―   3 ― 
Total        $ 2,031 100%$ 1,354 100%
   September 30, 2011December 31, 2010
ASSETS                
SDG&E        $ 13,016 40%$ 12,077 40%
SoCalGas          7,781 24   7,986 26 
Sempra Generation           2,141 7   2,401 8 
Sempra Pipelines & Storage          7,174 22   5,175 17 
Sempra LNG          2,451 7   2,379 8 
All other          932 3   1,691 6 
Intersegment receivables          (879) (3)   (1,426) (5) 
Total        $ 32,616 100%$ 30,283 100%
INVESTMENTS IN EQUITY METHOD INVESTEES          
Sempra Generation        $ 142  $ 185  
Sempra Pipelines & Storage(4)          1,108    1,777  
All other          334    803  
Total        $ 1,584  $ 2,765  
(1)Revenues for reportable segments include intersegment revenues of:
 $2 million, $13 million and $11 million for the three months ended September 30, 2011, and $1 million, $11 million and $8 million for the three months ended September 30, 2010, for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively.
 $5 million, $38 million and $33 million for the nine months ended September 30, 2011, and $4 million, $32 million and $35 million for the nine months ended September 30, 2010, for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively.
(2)Prior year amounts have been revised to present amounts after eliminations between Parent and corporate entities.
(3)After preferred dividends.                
(4)We provide additional information regarding Sempra Pipelines & Storage's investments in Note 3.