SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2012

Notes to Consolidated Financial Statements [Abstract]

Segment Information

NOTE 11. 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, and owns interests in utilities in Argentina. We are currently pursuing the sale of our interests in the Argentine utilities, which we discuss further in Note 4 of the Notes to Consolidated Financial Statements in the Updated Annual Report.
• Sempra Mexicodevelops,owns and operates, or holds interests in, natural gas transmission pipelines and propane systems, a natural gas distribution utility, electric generation facilities, including wind, and a terminal for the import of LNG 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, 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 plant, 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.

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 and the former commodities-marketing businesses.

SEGMENT INFORMATION
(Dollars in millions)
	Three months ended September 30,								Nine months ended September 30,
	2012				2011				2012				2011
REVENUES
SDG&E	$	1,092	44	%	$	868	34	%	$	2,706	39	%	$	2,405	32	%
SoCalGas		728	29			844	33			2,328	33			2,776	37
Sempra South American Utilities		356	14			345	13			1,061	15			706	10
Sempra Mexico		181	7			183	7			434	6			561	8
Sempra Renewables		27	1			7	―			49	1			17	―
Sempra Natural Gas		294	12			455	18			761	11			1,340	18
Adjustments and eliminations		―	―			(1)	―			(1)	―			(1)	―
Intersegment revenues(1)		(171)	(7)			(125)	(5)			(359)	(5)			(372)	(5)
Total	$	2,507	100	%	$	2,576	100	%	$	6,979	100	%	$	7,432	100	%
INTEREST EXPENSE
SDG&E	$	49			$	37			$	124			$	104
SoCalGas		17				17				51				52
Sempra South American Utilities		6				9				22				23
Sempra Mexico		4				4				10				15
Sempra Renewables		6				4				13				9
Sempra Natural Gas		26				22				72				62
All other		62				58				185				174
Intercompany eliminations		(44)				(33)				(125)				(95)
Total	$	126			$	118			$	352			$	344
INTEREST INCOME
SoCalGas	$	―			$	1			$	―			$	1
Sempra South American Utilities		3				6				11				18
Sempra Mexico		4				3				10				7
Sempra Renewables		2				―				3				―
Sempra Natural Gas		15				8				41				25
All other		―				(2)				―				1
Intercompany eliminations		(19)				(10)				(51)				(31)
Total	$	5			$	6			$	14			$	21
DEPRECIATION AND AMORTIZATION
SDG&E	$	128	46	%	$	108	43	%	$	359	45	%	$	316	43	%
SoCalGas		91	33			83	33			268	33			246	34
Sempra South American Utilities		15	5			14	6			42	5			27	4
Sempra Mexico		15	5			15	6			46	6			46	6
Sempra Renewables		4	1			1	―			10	1			4	1
Sempra Natural Gas		24	9			26	10			69	9			79	11
All other		3	1			4	2			9	1			11	1
Total	$	280	100	%	$	251	100	%	$	803	100	%	$	729	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	38			$	63			$	151			$	154
SoCalGas		37				41				105				106
Sempra South American Utilities		27				18				57				30
Sempra Mexico		21				(7)				44				24
Sempra Renewables		(12)				(9)				(47)				(22)
Sempra Natural Gas		(45)				27				(171)				97
All other		(17)				(58)				(91)				(100)
Total	$	49			$	75			$	48			$	289

SEGMENT INFORMATION (Continued)
(Dollars in millions)
		Three months ended September 30,								Nine months ended September 30,
		2012				2011				2012				2011
EQUITY EARNINGS (LOSSES)
Earnings (losses) recorded before tax:
Sempra Renewables		$	(6)			$	(6)			$	(7)			$	(6)
Sempra Natural Gas			(87)				10				(366)				29
All other			(1)				(16)				(2)				(27)
Total		$	(94)			$	(12)			$	(375)			$	(4)
Earnings recorded net of tax:
Sempra South American Utilities		$	―			$	―			$	―			$	23
Sempra Mexico			10				6				29				22
Total		$	10			$	6			$	29			$	45
EARNINGS (LOSSES)
SDG&E(2)		$	174	65	%	$	113	39	%	$	374	66	%	$	273	26	%
SoCalGas(2)			71	26			81	28			190	34			208	20
Sempra South American Utilities			40	15			50	17			118	21			386	37
Sempra Mexico			54	20			47	16			134	24			121	12
Sempra Renewables			13	5			1	1			47	8			9	1
Sempra Natural Gas			(68)	(25)			41	14			(260)	(46)			151	14
All other			(16)	(6)			(44)	(15)			(37)	(7)			(102)	(10)
Total		$	268	100	%	$	289	100	%	$	566	100	%	$	1,046	100	%
										Nine months ended September 30,
											2012				2011
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT
SDG&E										$	998	44	%	$	1,162	57	%
SoCalGas											462	21			499	25
Sempra South American Utilities											117	5			63	3
Sempra Mexico											13	1			11	1
Sempra Renewables											564	25			124	6
Sempra Natural Gas											84	4			171	8
All other											3	―			1	―
Total										$	2,241	100	%	$	2,031	100	%
										September 30, 2012				December 31, 2011
ASSETS
SDG&E										$	14,589	41	%	$	13,555	41	%
SoCalGas											8,784	25			8,475	25
Sempra South American Utilities											3,241	9			2,981	9
Sempra Mexico											3,042	9			2,914	9
Sempra Renewables											2,412	7			1,210	4
Sempra Natural Gas											5,910	17			5,738	17
All other											520	1			538	2
Intersegment receivables(3)											(3,108)	(9)			(2,162)	(7)
Total										$	35,390	100	%	$	33,249	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra Mexico										$	333			$	302
Sempra Renewables											666				390
Sempra Natural Gas											369				800
All other											135				137
Total										$	1,503			$	1,629
(1)	Revenues for reportable segments include intersegment revenues of:
	$3 million, $17 million, $78 million and $73 million for the three months ended September 30, 2012; $6 million, $48 million, $161 million and $144 million for the nine months ended September 30, 2012; $2 million, $13 million, $48 million and $62 million for the three months ended September 30, 2011; and $5 million, $38 million, $157 million and $172 million for the nine months ended September 30, 2011 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	After preferred dividends.
(3)	Assets for reportable segments include intersegment receivables of:
	$17 million, $280 million, $54 million, $643 million, $521 million, and $1.6 billion at September 30, 2012; and $67 million, $40 million, $52 million, $543 million, $263 million, and $1.2 billion at December 31, 2011 for SDG&E, SoCalGas, Sempra South American Utilities, Sempra Mexico, Sempra Renewables and Sempra Natural Gas, respectively.