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SEGMENT INFORMATION
 3 Months Ended
Sep. 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 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. 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 1 of 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 September 30,Nine months ended September 30,
2014201320142013
REVENUES
SDG&E$ 1,233 44 %$ 1,063 42 %$ 3,283 40 %$ 3,066 39 %
SoCalGas 855 30 807 32 2,857 35 2,694 34
Sempra South American Utilities 379 14 364 14 1,147 14 1,119 14
Sempra Mexico 234 8 188 7 621 7 519 7
Sempra Renewables 10 ― 25 1 25 ― 76 1
Sempra Natural Gas 252 9 212 8 748 9 683 9
Adjustments and eliminations 1 ― ― ― (1) ― (2) ―
Intersegment revenues(1) (149) (5) (108) (4) (392) (5) (303) (4)
Total$ 2,815 100 %$ 2,551 100 %$ 8,288 100 %$ 7,852 100 %
INTEREST EXPENSE
SDG&E$ 51 $ 50 $ 152 $ 147
SoCalGas 17 17 50 52
Sempra South American Utilities 7 8 24 20
Sempra Mexico 5 ― 13 5
Sempra Renewables 2 5 3 22
Sempra Natural Gas 25 34 90 80
All other 63 60 178 182
Intercompany eliminations (26) (37) (92) (95)
Total$ 144 $ 137 $ 418 $ 413
INTEREST INCOME
SDG&E$ ― $ ― $ ― $ 1
Sempra South American Utilities 4 3 10 11
Sempra Mexico 1 ― 2 1
Sempra Renewables ― 7 ― 14
Sempra Natural Gas 24 26 87 57
All other (1) 2 ― 1
Intercompany eliminations (22) (33) (84) (70)
Total$ 6 $ 5 $ 15 $ 15
DEPRECIATION AND AMORTIZATION
SDG&E$ 134 46 %$ 126 44 %$ 395 46 %$ 367 44 %
SoCalGas 109 37 100 35 321 37 280 34
Sempra South American Utilities 14 5 14 5 41 5 44 5
Sempra Mexico 16 6 16 5 47 5 47 6
Sempra Renewables 1 ― 5 2 4 ― 20 3
Sempra Natural Gas 17 6 20 7 50 6 60 7
All other 1 ― 5 2 8 1 10 1
Total$ 292 100 %$ 286 100 %$ 866 100 %$ 828 100 %
INCOME TAX EXPENSE (BENEFIT)
SDG&E$ 65 $ 84 $ 217 $ 147
SoCalGas 44 38 110 107
Sempra South American Utilities 26 16 59 50
Sempra Mexico 13 16 37 44
Sempra Renewables (16) 9 (35) (8)
Sempra Natural Gas (31) (4) (22) 35
All other (30) (42) (75) (48)
Total$ 71 $ 117 $ 291 $ 327

SEGMENT INFORMATION (Continued)
(Dollars in millions)
Three months ended September 30,Nine months ended September 30,
2014201320142013
EQUITY EARNINGS (LOSSES)
Earnings (losses) recorded before tax:
Sempra Renewables$ 7 $ (10)$ 18 $ (12)
Sempra Natural Gas 15 13 44 33
Total$ 22 $ 3 $ 62 $ 21
Earnings (losses) recorded net of tax:
Sempra South American Utilities$ (2)$ ― $ (4)$ (14)
Sempra Mexico 9 8 26 27
Total$ 7 $ 8 $ 22 $ 13
EARNINGS (LOSSES)
SDG&E(2)$ 157 45 %$ 129 44 %$ 379 44 %$ 285 40 %
SoCalGas(3) 98 28 102 34 256 30 266 37
Sempra South American Utilities 32 9 39 13 109 13 110 15
Sempra Mexico 63 18 39 13 139 16 96 13
Sempra Renewables 17 5 37 13 63 7 56 8
Sempra Natural Gas 26 8 (7) (2) 39 4 55 8
All other (45) (13) (43) (15) (121) (14) (149) (21)
Total$ 348 100 %$ 296 100 %$ 864 100 %$ 719 100 %
Nine months ended September 30,
20142013
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E$ 790 34 %$ 679 38 %
SoCalGas 764 33 521 29
Sempra South American Utilities 126 5 120 7
Sempra Mexico 262 11 280 16
Sempra Renewables 174 8 119 7
Sempra Natural Gas 192 8 65 3
All other 12 1 1 ―
Total$ 2,320 100 %$ 1,785 100 %
September 30, 2014December 31, 2013
ASSETS
SDG&E$ 15,975 41 %$ 15,377 41 %
SoCalGas 9,954 26 9,147 25
Sempra South American Utilities 3,463 9 3,531 10
Sempra Mexico 3,404 9 3,246 9
Sempra Renewables 1,379 3 1,219 3
Sempra Natural Gas 6,617 17 7,200 19
All other 1,141 3 838 2
Intersegment receivables (2,951) (8) (3,314) (9)
Total$ 38,982 100 %$ 37,244 100 %
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra South American Utilities$ (7)$ (3)
Sempra Mexico 427 379
Sempra Renewables 871 707
Sempra Natural Gas 342 329
All other 72 73
Total$ 1,705 $ 1,485
(1)Revenues for reportable segments include intersegment revenues of:
$2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014; $3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; and $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)After preferred dividends and call premium on preferred stock for 2013.
(3)After preferred dividends.