SEGMENT INFORMATION

3 Months Ended

Jun. 30, 2012

Notes to Consolidated Financial Statements [Abstract]

Segment Information

NOTE 11. SEGMENT INFORMATION

We have six separately managed reportable segments, as follows:

• SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San DiegoCounty.
• SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California.
• Sempra South American Utilities operates electric transmission and distribution utilities in Chile and Peru, and owns interests in utilities in Argentina. 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 Updated Annual Report.
• Sempra Mexicodevelops,owns and operates, or holds interests in, natural gas transmission pipelines and propane systems, a natural gas distribution utility, electric generation facilities, including wind, and a terminal for the import of LNG and sale of natural gas in Mexico.
• Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.
• Sempra Natural Gas develops, owns and operates, or holds interests in, a natural gas-fired electric generation plant, natural gas pipelines and storage facilities, natural gas distribution utilities and a terminal for the import and export of LNG and sale of natural gas, all within the United States.

Sempra South American Utilities and Sempra Mexico comprise our Sempra International operating unit. Sempra Renewables and Sempra Natural Gas comprise our Sempra U.S. Gas & Power operating unit.

We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities' operations are based on rates set by the CPUC and the FERC.

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 June 30,								Six months ended June 30,
	2012				2011				2012				2011
REVENUES
SDG&E	$	780	37	%	$	697	29	%	$	1,614	36	%	$	1,537	32	%
SoCalGas		720	34			876	36			1,600	36			1,932	40
Sempra South American Utilities		348	17			361	15			705	16			361	7
Sempra Mexico		118	6			171	7			253	6			378	8
Sempra Renewables		14	1			6	―			22	―			10	―
Sempra Natural Gas		198	9			436	18			467	10			885	18
Adjustments and eliminations		(1)	―			―	―			(1)	―			―	―
Intersegment revenues(1)		(88)	(4)			(125)	(5)			(188)	(4)			(247)	(5)
Total	$	2,089	100	%	$	2,422	100	%	$	4,472	100	%	$	4,856	100	%
INTEREST EXPENSE
SDG&E	$	39			$	31			$	75			$	67
SoCalGas		17				18				34				35
Sempra South American Utilities		6				12				16				14
Sempra Mexico		2				6				6				11
Sempra Renewables		3				2				7				5
Sempra Natural Gas		26				20				46				40
All other		65				60				123				116
Intercompany eliminations		(45)				(31)				(81)				(62)
Total	$	113			$	118			$	226			$	226
INTEREST INCOME
Sempra South American Utilities	$	4			$	10			$	8			$	12
Sempra Mexico		3				2				6				4
Sempra Renewables		1				―				1				―
Sempra Natural Gas		15				6				26				17
All other		(1)				1				―				3
Intercompany eliminations		(18)				(7)				(32)				(21)
Total	$	4			$	12			$	9			$	15
DEPRECIATION AND AMORTIZATION
SDG&E	$	119	45	%	$	105	42	%	$	231	44	%	$	208	44	%
SoCalGas		90	34			82	33			177	34			163	34
Sempra South American Utilities		14	5			13	5			27	5			13	3
Sempra Mexico		16	6			16	7			31	6			31	6
Sempra Renewables		3	1			2	1			6	1			3	1
Sempra Natural Gas		22	8			27	11			45	9			53	11
All other		2	1			3	1			6	1			7	1
Total	$	266	100	%	$	248	100	%	$	523	100	%	$	478	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	53			$	42			$	113			$	91
SoCalGas		28				28				68				65
Sempra South American Utilities		17				12				30				12
Sempra Mexico		3				13				23				31
Sempra Renewables		(18)				(6)				(35)				(13)
Sempra Natural Gas		(128)				38				(126)				70
All other		(73)				(27)				(74)				(42)
Total	$	(118)			$	100			$	(1)			$	214

SEGMENT INFORMATION (Continued)
(Dollars in millions)
		Three months ended June 30,								Six months ended June 30,
		2012				2011				2012				2011
EQUITY EARNINGS
Earnings (losses) recorded before tax:
Sempra Renewables		$	(2)			$	(1)			$	(1)			$	―
Sempra Natural Gas			(290)				10				(279)				19
All other			(1)				(2)				(1)				(11)
Total		$	(293)			$	7			$	(281)			$	8
Earnings (losses) recorded net of tax:
Sempra South American Utilities		$	―			$	(1)			$	―			$	23
Sempra Mexico			8				9				19				16
Total		$	8			$	8			$	19			$	39
EARNINGS (LOSSES)
SDG&E(2)		$	95	153	%	$	71	14	%	$	200	67	%	$	160	21	%
SoCalGas(2)			53	86			59	12			119	40			127	17
Sempra South American Utilities			38	61			314	62			78	26			336	44
Sempra Mexico			43	69			35	7			80	27			74	10
Sempra Renewables			24	39			4	1			34	11			8	1
Sempra Natural Gas			(193)	(311)			47	9			(192)	(64)			110	15
All other			2	3			(27)	(5)			(21)	(7)			(58)	(8)
Total		$	62	100	%	$	503	100	%	$	298	100	%	$	757	100	%
										Six months ended June 30,
											2012				2011
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT
SDG&E										$	729	48	%	$	714	58	%
SoCalGas											316	21			325	27
Sempra South American Utilities											58	4			27	2
Sempra Mexico											9	1			7	1
Sempra Renewables											351	23			55	4
Sempra Natural Gas											51	3			96	8
All other											3	―			1	―
Total										$	1,517	100	%	$	1,225	100	%
										June 30, 2012				December 31, 2011
ASSETS
SDG&E										$	14,296	42	%	$	13,555	41	%
SoCalGas											8,438	25			8,475	25
Sempra South American Utilities											3,068	9			2,981	9
Sempra Mexico											2,964	9			2,914	9
Sempra Renewables											2,060	6			1,210	4
Sempra Natural Gas											5,633	16			5,738	17
All other											376	1			538	2
Intersegment receivables											(2,633)	(8)			(2,162)	(7)
Total										$	34,202	100	%	$	33,249	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra Mexico										$	323			$	302
Sempra Renewables											622				390
Sempra Natural Gas											477				800
All other											135				137
Total										$	1,557			$	1,629
(1)	Revenues for reportable segments include intersegment revenues of:
	$1 million, $16 million, $37 million and $34 million for the three months ended June 30, 2012; $3 million, $31 million, $83 million and $71 million for the six months ended June 30, 2012; $1 million, $12 million, $51 million and $61 million for the three months ended June 30, 2011; and $3 million, $25 million, $109 million and $110 million for the six months ended June 30, 2011 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	After preferred dividends.