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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2011
Notes to Consolidated Financial Statements [Abstract]  
Segment Information

NOTE 16. 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, Hawaii, Indiana, Kansas, Nevada, Pennsylvania 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 above. 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 terminals in the U.S. and Mexico for the import and export of LNG, 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 all of our segments in Note 1.

Sempra Generation's sales to the DWR, under a 10-year contract that expired September 30, 2011, comprised 6 percent of our revenues in 2011, 8 percent in 2010 and 9 percent in 2009.

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.

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.

The following tables show selected information by segment from our Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note 4. 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)
 Years ended December 31,
 201120102009
REVENUES            
SDG&E$ 3,373 34%$ 3,049 34%$ 2,916 36%
SoCalGas  3,816 38   3,822 42   3,355 41 
Sempra Generation  886 9   1,172 13   1,179 15 
Sempra Pipelines & Storage  1,443 14   350 4   465 6 
Sempra LNG  714 7   711 8   278 3 
Adjustments and eliminations  (1) ―   (5) ―   ― ― 
Intersegment revenues(1)  (195) (2)   (96) (1)   (87) (1) 
Total$ 10,036 100%$ 9,003 100%$ 8,106 100%
INTEREST EXPENSE            
SDG&E$ 142  $ 136  $ 104  
SoCalGas  69    66    68  
Sempra Generation  13    13    12  
Sempra Pipelines & Storage  77    36    34  
Sempra LNG  42    48    24  
All other  233    244    229  
Intercompany eliminations(2)  (111)    (107)    (104)  
Total$ 465  $ 436  $ 367  
INTEREST INCOME            
SDG&E$ ―  $ ―  $ 1  
SoCalGas  1    1    3  
Sempra Generation  8    16    12  
Sempra Pipelines & Storage  31    15    17  
Sempra LNG  4    1    ―  
All other  ―    1    ―  
Intercompany eliminations(2)  (18)    (18)    (12)  
Total$ 26  $ 16  $ 21  
DEPRECIATION AND AMORTIZATION            
SDG&E$ 422 43%$ 381 44%$ 329 42%
SoCalGas  331 34   309 36   293 38 
Sempra Generation  70 7   65 7   58 8 
Sempra Pipelines & Storage  92 10   44 5   45 6 
Sempra LNG  51 5   51 6   35 4 
All other  12 1   17 2   15 2 
Total$ 978 100%$ 867 100%$ 775 100%
INCOME TAX EXPENSE (BENEFIT)            
SDG&E$ 237  $ 173  $ 177  
SoCalGas  143    176    144  
Sempra Generation  (3)    (7)    108  
Sempra Pipelines & Storage  70    26    (20)  
Sempra LNG  42    25    (15)  
All other  (123)    (291)    28  
Total$ 366  $ 102  $ 422  
             
             
             
             
             

SEGMENT INFORMATION (Continued)
(Dollars in millions)
  At December 31 or for the years ended December 31,
  201120102009
EARNINGS (LOSSES)            
SDG&E(3)$ 431 32%$ 369 50%$ 344 31%
SoCalGas(3)  287 21   286 39   273 25 
Sempra Generation  137 10   103 14   169 15 
Sempra Pipelines & Storage  527 39   159 21   101 9 
Sempra LNG  99 7   68 9   16 1 
All other  (124) (9)   (246) (33)   216 19 
Total$ 1,357 100%$ 739 100%$ 1,119 100%
ASSETS            
SDG&E$ 13,555 41%$ 12,077 40%$ 10,229 36%
SoCalGas  8,475 25   7,986 26   7,287 25 
Sempra Generation  2,285 7   2,401 8   2,049 7 
Sempra Pipelines & Storage  7,146 21   5,175 17   4,485 16 
Sempra LNG  2,411 7   2,379 8   2,277 8 
All other  553 2   1,691 6   2,775 10 
Intersegment receivables  (1,069) (3)   (1,426) (5)   (590) (2) 
Total$ 33,356 100%$ 30,283 100%$ 28,512 100%
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT            
SDG&E$ 1,831 64%$ 1,210 59%$ 955 50%
SoCalGas  683 24   503 24   480 25 
Sempra Generation  267 9   135 7   38 2 
Sempra Pipelines & Storage  252 9   192 9   200 11 
Sempra LNG  11 1   18 1   235 12 
All other  5 ―   4 ―   4 ― 
Intercompany eliminations(4)  (205) (7)   ― ―   ― ― 
Total$ 2,844 100%$ 2,062 100%$ 1,912 100%
GEOGRAPHIC INFORMATION            
Long-lived assets:            
United States$ 21,505 85%$ 19,905 87%$ 19,870 88%
Mexico  2,196 9   2,217 10   1,954 9 
South America  1,542 6   705 3   780 3 
Total$ 25,243 100%$ 22,827 100%$ 22,604 100%
              
Revenues:            
United States$ 8,135 81%$ 8,118 90%$ 7,476 92%
South America  1,080 11   1 ―   1 ― 
Mexico  821 8   884 10   629 8 
Total$ 10,036 100%$ 9,003 100%$ 8,106 100%
(1)Revenues for reportable segments include intersegment revenues of:
 $6 million, $53 million and $47 million for 2011, $6 million, $44 million and $46 million for 2010, and $7 million, $43 million and $37 million for 2009 for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively. Revenues in 2011 also included $88 million and $1 million of intersegment revenues at Sempra LNG and Sempra Generation, respectively.
(2)Prior year amounts have been revised to present amounts after eliminations between Parent and corporate entities.
(3)After preferred dividends.
(4)Amount represents elimination of intercompany sale of El Dorado power plant in 2011, as discussed in Note 14.