SEGMENT INFORMATION

3 Months Ended

Jun. 30, 2014

Notes to Consolidated Financial Statements [Abstract]

Segment Information

NOTE 12. 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. In June 2013, we sold our interests in two Argentine utilities, which we discuss further in Note 4 above.
• 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, Nebraska, 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 1of the Notes to Consolidated Financial Statements in the Annual Report.

Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation.

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 June 30,								Six months ended June 30,
	2014				2013				2014				2013
REVENUES
SDG&E	$	1,063	40	%	$	1,064	40	%	$	2,050	37	%	$	2,003	38	%
SoCalGas		917	34			904	34			2,002	37			1,887	36
Sempra South American Utilities		390	15			371	14			768	14			755	14
Sempra Mexico		186	7			163	6			387	7			331	6
Sempra Renewables		9	―			30	1			15	―			51	1
Sempra Natural Gas		236	9			218	8			496	9			471	9
Adjustments and eliminations		(2)	―			(2)	―			(2)	―			(2)	―
Intersegment revenues(1)		(121)	(5)			(97)	(3)			(243)	(4)			(195)	(4)
Total	$	2,678	100	%	$	2,651	100	%	$	5,473	100	%	$	5,301	100	%
INTEREST EXPENSE
SDG&E	$	51			$	49			$	101			$	97
SoCalGas		16				18				33				35
Sempra South American Utilities		9				5				17				12
Sempra Mexico		4				3				8				5
Sempra Renewables		1				9				1				17
Sempra Natural Gas		33				23				65				46
All other		57				59				115				122
Intercompany eliminations		(33)				(28)				(66)				(58)
Total	$	138			$	138			$	274			$	276
INTEREST INCOME
SDG&E	$	―			$	―			$	―			$	1
Sempra South American Utilities		3				3				6				8
Sempra Mexico		1				―				1				1
Sempra Renewables		―				4				―				7
Sempra Natural Gas		32				20				63				31
All other		1				―				1				(1)
Intercompany eliminations		(32)				(23)				(62)				(37)
Total	$	5			$	4			$	9			$	10
DEPRECIATION AND AMORTIZATION
SDG&E	$	131	45	%	$	107	43	%	$	261	45	%	$	241	44	%
SoCalGas		107	37			80	33			212	37			180	33
Sempra South American Utilities		13	5			15	6			27	5			30	6
Sempra Mexico		15	5			15	6			31	5			31	6
Sempra Renewables		2	1			7	3			3	1			15	3
Sempra Natural Gas		16	6			20	8			33	6			40	7
All other		4	1			3	1			7	1			5	1
Total	$	288	100	%	$	247	100	%	$	574	100	%	$	542	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	69			$	12			$	152			$	63
SoCalGas		28				45				66				69
Sempra South American Utilities		18				17				33				34
Sempra Mexico		12				2				24				28
Sempra Renewables		(13)				(9)				(19)				(17)
Sempra Natural Gas		3				6				9				39
All other		(24)				(41)				(45)				(6)
Total	$	93			$	32			$	220			$	210

SEGMENT INFORMATION (Continued)
(Dollars in millions)
		Three months ended June 30,								Six months ended June 30,
		2014				2013				2014				2013
EQUITY EARNINGS (LOSSES)
Earnings (losses) recorded before tax:
Sempra Renewables		$	9			$	(3)			$	11			$	(2)
Sempra Natural Gas			14				11				29				20
Total		$	23			$	8			$	40			$	18
Earnings (losses) recorded net of tax:
Sempra South American Utilities		$	―			$	(7)			$	(2)			$	(14)
Sempra Mexico			9				8				17				19
Total		$	9			$	1			$	15			$	5
EARNINGS (LOSSES)
SDG&E(2)		$	123	46	%	$	65	26	%	$	222	43	%	$	156	37	%
SoCalGas(3)			80	30			118	48			158	31			164	39
Sempra South American Utilities			42	15			34	14			77	15			71	17
Sempra Mexico			34	13			26	11			76	15			57	13
Sempra Renewables			18	7			15	6			46	9			19	4
Sempra Natural Gas			4	1			9	4			13	2			62	15
All other			(32)	(12)			(22)	(9)			(76)	(15)			(106)	(25)
Total		$	269	100	%	$	245	100	%	$	516	100	%	$	423	100	%
										Six months ended June 30,
										2014				2013
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E										$	543	36	%	$	446	40	%
SoCalGas											500	33			340	30
Sempra South American Utilities											89	6			66	6
Sempra Mexico											189	13			161	14
Sempra Renewables											122	8			61	5
Sempra Natural Gas											67	4			55	5
All other											3	―			1	―
Total										$	1,513	100	%	$	1,130	100	%
										June 30, 2014				December 31, 2013
ASSETS
SDG&E										$	15,767	41	%	$	15,377	41	%
SoCalGas											9,294	24			9,147	25
Sempra South American Utilities											3,546	9			3,531	10
Sempra Mexico											3,441	9			3,246	9
Sempra Renewables											1,293	4			1,219	3
Sempra Natural Gas											6,252	16			7,200	19
All other											1,174	3			838	2
Intersegment receivables											(2,460)	(6)			(3,314)	(9)
Total										$	38,307	100	%	$	37,244	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra South American Utilities										$	(5)			$	(3)
Sempra Mexico											392				379
Sempra Renewables											874				707
Sempra Natural Gas											343				329
All other											73				73
Total										$	1,677			$	1,485
(1)	Revenues for reportable segments include intersegment revenues of:
	$2 million, $16 million, $23 million and $80 million for the three months ended June 30, 2014; $5 million, $34 million, $45 million and $159 million for the six months ended June 30, 2014; $2 million, $16 million, $23 million and $56 million for the three months ended June 30, 2013; and $4 million, $31 million, $45 million and $115 million for the six months ended June 30, 2013 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	After preferred dividends for 2013.
(3)	After preferred dividends.