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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2013
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 Diego County.

     

  • 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 above and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

     

  • Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a natural gas distribution utility, electric generation facilities (including wind), a terminal for the import of LNG, and marketing operations for the purchase of LNG and the purchase 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 asset, 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. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

During the fourth quarter of 2012, Sempra Mexico initiated a public debt offering process through one of its subsidiaries. We discuss this debt issuance, which occurred on February 14, 2013, in Note 6. The subsidiary issuing the debt, now IEnova, was previously included in Parent and Other. As a result of our anticipated debt issuance, we revised the manner in which we make resource allocation decisions to our Sempra Mexico segment and assess its performance. As a result, we have reclassified certain amounts from Parent and Other, which contains interest and other corporate costs and certain holding company activities, to our Sempra Mexico segment. Losses reclassified from Parent and Other to Sempra Mexico as a result of the restatement were $4 million in the three months ended March 31, 2012. In accordance with U.S. GAAP, the historical segment disclosures have been restated to be consistent with the current presentation.

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.

 

SEGMENT INFORMATION        
(Dollars in millions)        
  Three months ended March 31,
  20132012
REVENUES        
SDG&E$ 939 35%$ 834 35%
SoCalGas  983 37   880 37 
Sempra South American Utilities  384 15   357 15 
Sempra Mexico  168 6   136 6 
Sempra Renewables  21 1   8 ― 
Sempra Natural Gas  253 10   269 11 
Adjustments and eliminations  ― ―   (1) ― 
Intersegment revenues(1)  (98) (4)   (100) (4) 
Total$ 2,650 100%$ 2,383 100%
INTEREST EXPENSE        
SDG&E$ 48  $ 36  
SoCalGas  17    17  
Sempra South American Utilities  7    10  
Sempra Mexico  2    3  
Sempra Renewables  8    4  
Sempra Natural Gas  23    20  
All other  63    58  
Intercompany eliminations  (30)    (35)  
Total$ 138  $ 113  
INTEREST INCOME        
SDG&E$ 1  $ ―  
Sempra South American Utilities  5    4  
Sempra Mexico  1    ―  
Sempra Renewables  3    ―  
Sempra Natural Gas  11    11  
All other  (1)    1  
Intercompany eliminations  (14)    (11)  
Total$ 6  $ 5  
DEPRECIATION AND AMORTIZATION
SDG&E$ 134 45%$ 112 44%
SoCalGas  100 34   87 34 
Sempra South American Utilities  15 5   13 5 
Sempra Mexico  16 5   16 6 
Sempra Renewables  8 3   3 1 
Sempra Natural Gas  20 7   23 9 
All other  2 1   3 1 
Total$ 295 100%$ 257 100%
INCOME TAX EXPENSE (BENEFIT)
SDG&E$ 51  $ 60  
SoCalGas  24    40  
Sempra South American Utilities  17    13  
Sempra Mexico  26    35  
Sempra Renewables  (8)    (17)  
Sempra Natural Gas  33    2  
All other  35    (16)  
Total$ 178  $ 117  

SEGMENT INFORMATION (Continued)      
(Dollars in millions)        
 Three months ended March 31,
 20132012
EQUITY EARNINGS (LOSSES)        
Earnings recorded before tax:      
Sempra Renewables$ 1  $ 1  
Sempra Natural Gas  9    11  
Total$ 10  $ 12  
Earnings (losses) recorded net of tax:      
Sempra South American Utilities$ (7)  $ ―  
Sempra Mexico  11    11  
Total$ 4  $ 11  
EARNINGS (LOSSES)        
SDG&E(2)$ 91 51%$ 105 45%
SoCalGas(2)  46 26   66 28 
Sempra South American Utilities  37 21   40 17 
Sempra Mexico  31 17   33 14 
Sempra Renewables  4 2   10 4 
Sempra Natural Gas  53 30   1 ― 
All other  (84) (47)   (19) (8) 
Total$ 178 100%$ 236 100%
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT  
SDG&E$ 237 45%$ 398 49%
SoCalGas  179 34   165 20 
Sempra South American Utilities  22 4   19 2 
Sempra Mexico  61 11   5 1 
Sempra Renewables  6 1   201 25 
Sempra Natural Gas  26 5   22 3 
All other  ― ―   1 ― 
Total$ 531 100%$ 811 100%
 March 31, 2013December 31, 2012
ASSETS  
SDG&E$ 14,852 40%$ 14,744 40%
SoCalGas  9,223 24   9,071 25 
Sempra South American Utilities  3,669 10   3,310 9 
Sempra Mexico  3,314 9   2,591 7 
Sempra Renewables  2,194 6   2,439 7 
Sempra Natural Gas  5,971 16   5,145 14 
All other  762 2   818 2 
Intersegment receivables  (2,712) (7)   (1,619) (4) 
Total$ 37,273 100%$ 36,499 100%
INVESTMENTS IN EQUITY METHOD INVESTEES  
Sempra Mexico$ 351  $ 340  
Sempra Renewables  601    592  
Sempra Natural Gas  348    361  
All other  126    134  
Total$ 1,426  $ 1,427  
(1)Revenues for reportable segments include intersegment revenues of:
 $2 million, $15 million, $22 million and $59 million for the three months ended March 31, 2013 and $2 million, $15 million, $46 million and $37 million for the three months ended March 31, 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)After preferred dividends.