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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We have seven 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 Texas Utility holds our investment in Oncor Holdings, which owns an 80.25-percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. As we discuss in Note 5, we completed our acquisition of the investment in March 2018.
▪
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.
▪
Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the U.S. In June 2018, our board of directors approved a plan to market and sell all the segment’s wind assets and investments and solar assets and investments, as we discuss in Note 5.
▪
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, storage facilities and marketing operations, all within the U.S. In June 2018, our board of directors approved a plan to market and sell our natural gas storage assets at Mississippi Hub and our 90.9-percent ownership interest in Bay Gas, as we discuss in Note 5.
We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. 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.
The cost of common services shared by the business segments is 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 activities of parent organizations.
SEGMENT INFORMATION
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2018
 
2017
 
2018
 
2017
REVENUES
 
 
 
 
 
 
 
SDG&E
$
1,299

 
$
1,236

 
$
3,405

 
$
3,351

SoCalGas
802

 
684

 
2,700

 
2,695

Sempra South American Utilities
375

 
376

 
1,190

 
1,169

Sempra Mexico
410

 
336

 
1,028

 
873

Sempra Renewables
38

 
26

 
103

 
74

Sempra LNG & Midstream
147

 
152

 
330

 
406

Adjustments and eliminations
—

 
—

 
(2
)
 
—

Intersegment revenues(1)
(131
)
 
(131
)
 
(288
)
 
(325
)
Total
$
2,940

 
$
2,679

 
$
8,466

 
$
8,243

INTEREST EXPENSE
 
 
 
 
 
 
 
SDG&E
$
56

 
$
53

 
$
161

 
$
151

SoCalGas
29

 
26

 
82

 
77

Sempra South American Utilities
10

 
10

 
30

 
30

Sempra Mexico
30

 
21

 
90

 
73

Sempra Renewables
5

 
3

 
15

 
11

Sempra LNG & Midstream
3

 
9

 
18

 
29

All other
122

 
74

 
371

 
209

Intercompany eliminations
(23
)
 
(31
)
 
(82
)
 
(87
)
Total
$
232

 
$
165

 
$
685

 
$
493

INTEREST INCOME
 
 
 
 
 
 
 
SDG&E
$
1

 
$
—

 
$
3

 
$
—

SoCalGas
—

 
1

 
1

 
1

Sempra South American Utilities
6

 
6

 
19

 
17

Sempra Mexico
17

 
7

 
48

 
12

Sempra Renewables
2

 
1

 
6

 
4

Sempra LNG & Midstream
10

 
14

 
36

 
43

All other
1

 
1

 
14

 
1

Intercompany eliminations
(15
)
 
(18
)
 
(51
)
 
(52
)
Total
$
22

 
$
12

 
$
76

 
$
26

DEPRECIATION AND AMORTIZATION
 
 
 
 
 
 
 
SDG&E
$
174

 
$
170

 
$
509

 
$
499

SoCalGas
141

 
132

 
414

 
384

Sempra South American Utilities
14

 
14

 
43

 
40

Sempra Mexico
45

 
41

 
131

 
114

Sempra Renewables
—

 
9

 
27

 
28

Sempra LNG & Midstream
2

 
10

 
24

 
31

All other
4

 
2

 
10

 
10

Total
$
380

 
$
378

 
$
1,158

 
$
1,106

INCOME TAX EXPENSE (BENEFIT)
 
 
 
 
 
 
 
SDG&E
$
53

 
$
(72
)
 
$
151

 
$
72

SoCalGas
(7
)
 
(14
)
 
75

 
103

Sempra South American Utilities
23

 
18

 
64

 
57

Sempra Mexico
126

 
34

 
226

 
278

Sempra Renewables
(2
)
 
(9
)
 
(67
)
 
(25
)
Sempra LNG & Midstream
6

 
(2
)
 
(488
)
 
17

All other
(32
)
 
(39
)
 
(88
)
 
(124
)
Total
$
167

 
$
(84
)
 
$
(127
)
 
$
378

SEGMENT INFORMATION (CONTINUED)
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2018
 
2017
 
2018

2017
EQUITY EARNINGS (LOSSES)
 
 
 
 
 
 
 
Equity earnings (losses) before income tax:
 
 
 
 
 
 
 
Sempra Renewables
$
12

 
$
7

 
$
(170
)
 
$
25

Sempra LNG & Midstream
—

 
3

 
1

 
6

All other
(64
)
 
—

 
(67
)
 
—

 
(52
)
 
10

 
(236
)
 
31

Equity earnings (losses) net of income tax:
 
 
 
 
 
 
 
Sempra Texas Utility
154

 
—

 
283

 
—

Sempra South American Utilities
—

 
1

 
1

 
2

Sempra Mexico
(28
)
 
2

 
2

 
(7
)
 
126

 
3

 
286

 
(5
)
Total
$
74

 
$
13

 
$
50

 
$
26

EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
 
 
 
 
 
 
 
SDG&E
$
205

 
$
(28
)
 
$
521

 
$
276

SoCalGas(2)
(14
)
 
7

 
244

 
268

Sempra Texas Utility
154

 
—

 
283

 
—

Sempra South American Utilities
50

 
42

 
140

 
134

Sempra Mexico
44

 
66

 
161

 
105

Sempra Renewables
34

 
15

 
(54
)
 
49

Sempra LNG & Midstream
16

 
(4
)
 
(764
)
 
24

All other(2)
(215
)
 
(41
)
 
(471
)
 
(99
)
Total
$
274

 
$
57

 
$
60

 
$
757

EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
 
 
 
 
 
 
 
SDG&E
 
 
 
 
$
1,194

 
$
1,122

SoCalGas
 
 
 
 
1,127

 
1,033

Sempra South American Utilities
 
 
 
 
161

 
138

Sempra Mexico
 
 
 
 
255

 
193

Sempra Renewables
 
 
 
 
46

 
361

Sempra LNG & Midstream
 
 
 
 
19

 
16

All other
 
 
 
 
13

 
17

Total
 
 
 
 
$
2,815

 
$
2,880

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2018
 
December 31, 2017
ASSETS
 
 
 
 
SDG&E
 
 
 
 
$
18,512

 
$
17,844

SoCalGas
 
 
 
 
14,947

 
14,159

Sempra Texas Utility
 
 
 
 
9,553

 
—

Sempra South American Utilities
 
 
 
 
4,094

 
4,060

Sempra Mexico
 
 
 
 
9,103

 
8,554

Sempra Renewables
 
 
 
 
2,617

 
2,898

Sempra LNG & Midstream
 
 
 
 
3,722

 
4,872

All other
 
 
 
 
851

 
915

Intersegment receivables
 
 
 
 
(2,794
)
 
(2,848
)
Total
 
 
 
 
$
60,605

 
$
50,454

EQUITY METHOD AND OTHER INVESTMENTS
 
 
 
 
Sempra Texas Utility
 
 
 
 
$
9,553

 
$
—

Sempra South American Utilities
 
 
 
 
17

 
16

Sempra Mexico
 
 
 
 
682

 
624

Sempra Renewables
 
 
 
 
600

 
813

Sempra LNG & Midstream
 
 
 
 
1,252

 
997

All other
 
 
 
 
10

 
77

Total
 
 
 
 
$
12,114

 
$
2,527

(1) 
Revenues for reportable segments include intersegment revenues of $1 million, $15 million, $31 million and $84 million for the three months ended September 30, 2018; $3 million, $47 million, $88 million and $150 million for the nine months ended September 30, 2018; $1 million, $21 million, $27 million and $82 million for the three months ended September 30, 2017; and $5 million, $56 million, $78 million and $186 million for the nine months ended September 30, 2017 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.
(2) 
After preferred dividends.