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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Information 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 develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru.
▪
Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. In February 2016, management approved a plan to market and sell the TdM natural gas-fired power plant located in Mexicali, Baja California, as we discuss in Note 3.
▪
Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the United States.
▪
Sempra LNG & Midstream develops, owns and operates, or holds interests in, a terminal for the import and export of LNG and sale of natural gas, and natural gas pipelines and storage facilities, all within the United States. In September 2016, Sempra LNG & Midstream sold EnergySouth, the parent company of Mobile Gas and Willmut Gas, and in May 2016, sold its 25-percent interest in Rockies Express. We discuss these divestitures in Note 3 herein and Note 3 of the Notes to Consolidated Financial Statements in the Annual Report.
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,
 
2017
 
2016
 
2017
 
2016
REVENUES
 
 
 
 
 
 
 
SDG&E
$
1,236

 
$
1,209

 
$
3,351

 
$
3,192

SoCalGas
684

 
686

 
2,695

 
2,336

Sempra South American Utilities
376

 
385

 
1,169

 
1,170

Sempra Mexico
336

 
196

 
873

 
481

Sempra Renewables
26

 
12

 
74

 
25

Sempra LNG & Midstream
152

 
164

 
406

 
384

Adjustments and eliminations
—

 
(1
)
 
—

 
(1
)
Intersegment revenues(1)
(131
)
 
(116
)
 
(325
)
 
(274
)
Total
$
2,679

 
$
2,535

 
$
8,243

 
$
7,313

INTEREST EXPENSE
 
 
 
 
 
 
 
SDG&E
$
53

 
$
49

 
$
151

 
$
145

SoCalGas
26

 
25

 
77

 
71

Sempra South American Utilities
10

 
9

 
30

 
29

Sempra Mexico
21

 
5

 
73

 
13

Sempra Renewables
3

 
—

 
11

 
—

Sempra LNG & Midstream
9

 
11

 
29

 
33

All other
74

 
68

 
209

 
214

Intercompany eliminations
(31
)
 
(31
)
 
(87
)
 
(84
)
Total
$
165

 
$
136

 
$
493

 
$
421

INTEREST INCOME
 
 
 
 
 
 
 
SoCalGas
$
1

 
$
—

 
$
1

 
$
—

Sempra South American Utilities
6

 
5

 
17

 
15

Sempra Mexico
7

 
2

 
12

 
5

Sempra Renewables
1

 
1

 
4

 
2

Sempra LNG & Midstream
14

 
19

 
43

 
52

All other
1

 
1

 
1

 
1

Intercompany eliminations
(18
)
 
(21
)
 
(52
)
 
(56
)
Total
$
12

 
$
7

 
$
26

 
$
19

DEPRECIATION AND AMORTIZATION
 
 
 
 
 
 
 
SDG&E
$
170

 
$
161

 
$
499

 
$
478

SoCalGas
132

 
121

 
384

 
355

Sempra South American Utilities
14

 
14

 
40

 
41

Sempra Mexico
41

 
15

 
114

 
47

Sempra Renewables
9

 
1

 
28

 
4

Sempra LNG & Midstream
10

 
12

 
31

 
37

All other
2

 
4

 
10

 
8

Total
$
378

 
$
328

 
$
1,106

 
$
970

INCOME TAX (BENEFIT) EXPENSE
 
 
 
 
 
 
 
SDG&E
$
(72
)
 
$
91

 
$
72

 
$
204

SoCalGas
(14
)
 
21

 
103

 
75

Sempra South American Utilities
18

 
17

 
57

 
46

Sempra Mexico
34

 
142

 
278

 
170

Sempra Renewables
(9
)
 
(7
)
 
(25
)
 
(29
)
Sempra LNG & Midstream
(2
)
 
51

 
17

 
(77
)
All other
(39
)
 
(33
)
 
(124
)
 
(105
)
Total
$
(84
)
 
$
282

 
$
378

 
$
284

SEGMENT INFORMATION (CONTINUED)
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017

2016
EQUITY EARNINGS (LOSSES)
 
 
 
 
 
 
 
Earnings (losses) recorded before tax:
 
 
 
 
 
 
 
Sempra Renewables
$
7

 
$
12

 
$
25

 
$
30

Sempra LNG & Midstream
3

 
—

 
6

 
(26
)
Total
$
10

 
$
12

 
$
31

 
$
4

Earnings (losses) recorded net of tax:
 
 
 
 
 
 
 
Sempra South American Utilities
$
1

 
$
1

 
$
2

 
$
3

Sempra Mexico
2

 
18

 
(7
)
 
66

Total
$
3

 
$
19

 
$
(5
)
 
$
69

(LOSSES) EARNINGS
 
 
 
 
 
 
 
SDG&E
$
(28
)
 
$
183

 
$
276

 
$
419

SoCalGas(2)
7

 
—

 
268

 
198

Sempra South American Utilities
42

 
46

 
134

 
127

Sempra Mexico
66

 
332

 
105

 
407

Sempra Renewables
15

 
17

 
49

 
43

Sempra LNG & Midstream
(4
)
 
77

 
24

 
(104
)
All other
(41
)
 
(33
)
 
(99
)
 
(99
)
Total
$
57

 
$
622

 
$
757

 
$
991

EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
 
 
 
 
 
 
 
SDG&E
 
 
 
 
$
1,122

 
$
959

SoCalGas
 
 
 
 
1,033

 
949

Sempra South American Utilities
 
 
 
 
138

 
133

Sempra Mexico
 
 
 
 
193

 
232

Sempra Renewables
 
 
 
 
361

 
700

Sempra LNG & Midstream
 
 
 
 
16

 
100

All other
 
 
 
 
17

 
14

Total
 
 
 
 
$
2,880

 
$
3,087

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 
December 31, 2016
ASSETS
 
 
 
 
SDG&E
 
 
 
 
$
18,629

 
$
17,719

SoCalGas
 
 
 
 
13,917

 
13,424

Sempra South American Utilities
 
 
 
 
3,862

 
3,591

Sempra Mexico
 
 
 
 
8,100

 
7,542

Sempra Renewables
 
 
 
 
2,650

 
3,644

Sempra LNG & Midstream
 
 
 
 
4,849

 
5,564

All other
 
 
 
 
691

 
475

Intersegment receivables
 
 
 
 
(2,569
)
 
(4,173
)
Total
 
 
 
 
$
50,129

 
$
47,786

EQUITY METHOD AND OTHER INVESTMENTS
 
 
 
 
Sempra South American Utilities
 
 
 
 
$
22

 
$
—

Sempra Mexico
 
 
 
 
243

 
180

Sempra Renewables
 
 
 
 
807

 
844

Sempra LNG & Midstream
 
 
 
 
980

 
997

All other
 
 
 
 
76

 
76

Total
 
 
 
 
$
2,128

 
$
2,097

(1)
Revenues for reportable segments include intersegment revenues of $1 million, $21 million, $27 million and $82 million for the three months ended September 30, 2017; $5 million, $56 million, $78 million and $186 million for the nine months ended September 30, 2017; $2 million, $21 million, $26 million and $67 million for the three months ended September 30, 2016; and $5 million, $56 million, $80 million and $133 million for the nine months ended September 30, 2016 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.
(2)
After preferred dividends.