SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2019

SEGMENT INFORMATION

At March 31, 2019, we had 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 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.


▪	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 power generation facilities serving wholesale electricity markets in the U.S. In December 2018, Sempra Renewables completed the sale of all its operating solar assets, solar and battery storage development projects and one wind generation facility. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist.


▪	Sempra LNG (previously known as Sempra LNG & Midstream) develops, owns and operates, or holds interests in, terminals for the import and export of LNG and sale of natural gas, natural gas pipelines and marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas.

As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment has been reclassified to discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted.

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, and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations.



SEGMENT INFORMATION
(Dollars in millions)
	Three months ended March 31,
	2019			2018
REVENUES
SDG&E	$	1,145		$	1,055
SoCalGas	1,361			1,126
Sempra Mexico	383			308
Sempra Renewables	7			25
Sempra LNG	141			104
Adjustments and eliminations	—			(1		)
Intersegment revenues⁽¹⁾	(139		)	(81		)
Total	$	2,898		$	2,536
INTEREST EXPENSE
SDG&E	$	103		$	52
SoCalGas	34			27
Sempra Mexico	30			30
Sempra Renewables	3			5
Sempra LNG	4			8
All other	109			112
Intercompany eliminations	(23		)	(28		)
Total	$	260		$	206
INTEREST INCOME
SDG&E	$	1		$	1
Sempra Mexico	19			15
Sempra Renewables	10			2
Sempra LNG	14			13
All other	1			16
Intercompany eliminations	(24		)	(18		)
Total	$	21		$	29
DEPRECIATION AND AMORTIZATION
SDG&E	$	186		$	166
SoCalGas	147			135
Sempra Mexico	44			43
Sempra Renewables	—			13
Sempra LNG	2			11
All other	4			4
Total	$	383		$	372
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	5		$	56
SoCalGas	19			59
Sempra Mexico	72			155
Sempra Renewables	(10		)	(7		)
Sempra LNG	4			12
All other	(48		)	(33		)
Total	$	42		$	242
EQUITY EARNINGS (LOSSES)
Equity earnings before income tax:
Sempra Renewables	$	3		$	5
Sempra LNG	2			—
	5			5
Equity earnings (losses) net of income tax:
Sempra Texas Utility	94			15
Sempra Mexico	2			(41		)
	96			(26		)
Total	$	101		$	(21	)



SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Three months ended March 31,
	2019			2018
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
SDG&E	$	176		$	170
SoCalGas	264			225
Sempra Texas Utility	94			15
Sempra Mexico	57			20
Sempra Renewables	13			21
Sempra LNG	5			(16		)
Discontinued operations	(51		)	21
All other	(117		)	(109		)
Total	$	441		$	347
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E	$	356		$	475
SoCalGas	324			403
Sempra Mexico	85			59
Sempra Renewables	—			31
Sempra LNG	18			6
All other	—			5
Total	$	783		$	979

	March 31, 2019			December 31, 2018
ASSETS
SDG&E	$	19,558		$	19,225
SoCalGas	15,904			15,389
Sempra Texas Utility	9,748			9,652
Sempra Mexico	9,382			9,165
Sempra Renewables	1,310			2,549
Sempra LNG	3,731			4,060
Discontinued operations	3,845			3,718
All other	1,135			1,070
Intersegment receivables	(2,995		)	(4,190		)
Total	$	61,618		$	60,638
EQUITY METHOD AND OTHER INVESTMENTS
Sempra Texas Utility	$	9,748		$	9,652
Sempra Mexico	737			747
Sempra Renewables	290			291
Sempra LNG	1,255			1,271
All other	8			11
Total	$	12,038		$	11,972

⁽¹⁾

Revenues for reportable segments include intersegment revenues of $1 million, $17 million, $28 million and $93 million for the three months ended March 31, 2019 and $1 million, $17 million, $29 million and $34 million for the three months ended March 31, 2018, for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG, respectively.