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SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2013
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 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, 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.

During the fourth quarter of 2012, Sempra Mexico initiated a public debt offering process through one of its subsidiaries. We discuss this debt issuance, which occurred on February 14, 2013, in Note 6. The subsidiary issuing the debt, now IEnova, was previously included in Parent and Other. As a result of our anticipated debt issuance, we revised the manner in which we make resource allocation decisions to our Sempra Mexico segment and assess its performance. As a result, we have reclassified certain amounts from Parent and Other, which contains interest and other corporate costs and certain holding company activities, to our Sempra Mexico segment. Earnings reclassified as a result of the restatement were $4 million in the three months ended June 30, 2012, and, net of losses reclassified in the first quarter of 2012, there was no net effect for the six months ended June 30, 2012. In accordance with U.S. GAAP, the historical segment disclosures have been restated to be consistent with the current presentation.

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 June 30,Six months ended June 30,
  2013201220132012
REVENUES                
SDG&E$ 1,064 40%$ 780 37%$ 2,003 38%$ 1,614 36%
SoCalGas  904 34   720 34   1,887 36   1,600 36 
Sempra South American Utilities  371 14   348 17   755 14   705 16 
Sempra Mexico  163 6   118 6   331 6   254 6 
Sempra Renewables  30 1   14 1   51 1   22 ― 
Sempra Natural Gas  218 8   198 9   471 9   467 10 
Adjustments and eliminations  (2) ―   (1) ―   (2) ―   (2) ― 
Intersegment revenues(1)  (97) (3)   (88) (4)   (195) (4)   (188) (4) 
Total$ 2,651 100%$ 2,089 100%$ 5,301 100%$ 4,472 100%
INTEREST EXPENSE                
SDG&E$ 49  $ 39  $ 97  $ 75  
SoCalGas  18    17    35    34  
Sempra South American Utilities  5    6    12    16  
Sempra Mexico  3    ―    5    3  
Sempra Renewables  9    3    17    7  
Sempra Natural Gas  23    26    46    46  
All other  59    65    122    123  
Intercompany eliminations  (28)    (43)    (58)    (78)  
Total$ 138  $ 113  $ 276  $ 226  
INTEREST INCOME                
SDG&E$ ―  $ ―  $ 1  $ ―  
Sempra South American Utilities  3    4    8    8  
Sempra Mexico  ―    1    1    1  
Sempra Renewables  4    1    7    1  
Sempra Natural Gas  20    15    31    26  
All other  ―    (2)    (1)    (1)  
Intercompany eliminations  (23)    (15)    (37)    (26)  
Total$ 4  $ 4  $ 10  $ 9  
DEPRECIATION AND AMORTIZATION        
SDG&E$ 107 43%$ 119 45%$ 241 44%$ 231 44%
SoCalGas  80 33   90 34   180 33   177 34 
Sempra South American Utilities  15 6   14 5   30 6   27 5 
Sempra Mexico  15 6   15 6   31 6   31 6 
Sempra Renewables  7 3   3 1   15 3   6 1 
Sempra Natural Gas  20 8   22 8   40 7   45 9 
All other  3 1   3 1   5 1   6 1 
Total$ 247 100%$ 266 100%$ 542 100%$ 523 100%
INCOME TAX EXPENSE (BENEFIT)        
SDG&E$ 12  $ 53  $ 63  $ 113  
SoCalGas  45    28    69    68  
Sempra South American Utilities  17    17    34    30  
Sempra Mexico  2    (5)    28    30  
Sempra Renewables  (9)    (18)    (17)    (35)  
Sempra Natural Gas  6    (128)    39    (126)  
All other  (41)    (65)    (6)    (81)  
Total$ 32  $ (118)  $ 210  $ (1)  

SEGMENT INFORMATION (Continued)              
(Dollars in millions)                
 Three months ended June 30,Six months ended June 30,
 2013201220132012
EQUITY EARNINGS (LOSSES)                 
Earnings (losses) recorded before tax:              
Sempra Renewables$ (3)  $ (2)  $ (2)  $ (1)  
Sempra Natural Gas  11    (290)    20    (279)  
All other  ―    (1)    ―    (1)  
Total$ 8  $ (293)  $ 18  $ (281)  
Earnings (losses) recorded net of tax:              
Sempra South American Utilities$ (7)  $ ―  $ (14)  $ ―  
Sempra Mexico  8    8    19    19  
Total$ 1  $ 8  $ 5  $ 19  
EARNINGS (LOSSES)                
SDG&E(2)$ 65 26%$ 95 153%$ 156 37%$ 200 67%
SoCalGas(2)  118 48   53 85   164 39   119 40 
Sempra South American Utilities  34 14   38 61   71 17   78 26 
Sempra Mexico  26 11   47 76   57 13   80 27 
Sempra Renewables  15 6   24 39   19 4   34 11 
Sempra Natural Gas  9 4   (193) (311)   62 15   (192) (64) 
All other  (22) (9)   (2) (3)   (106) (25)   (21) (7) 
Total$ 245 100%$ 62 100%$ 423 100%$ 298 100%
          Six months ended June 30,
          20132012
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT          
SDG&E        $ 446 40%$ 729 48%
SoCalGas          340 30   316 21 
Sempra South American Utilities          66 6   58 4 
Sempra Mexico          161 14   9 1 
Sempra Renewables          61 5   351 23 
Sempra Natural Gas          55 5   51 3 
All other          1 ―   3 ― 
Total        $ 1,130 100%$ 1,517 100%
   June 30, 2013December 31, 2012
ASSETS          
SDG&E        $ 14,896 40%$ 14,744 40%
SoCalGas          9,361 25   9,071 25 
Sempra South American Utilities          3,421 9   3,310 9 
Sempra Mexico          3,264 9   2,591 7 
Sempra Renewables          2,464 7   2,439 7 
Sempra Natural Gas          6,337 17   5,145 14 
All other          605 2   818 2 
Intersegment receivables          (3,328) (9)   (1,619) (4) 
Total        $ 37,020 100%$ 36,499 100%
INVESTMENTS IN EQUITY METHOD INVESTEES          
Sempra South American Utilities        $ (3)  $ ―  
Sempra Mexico          359    340  
Sempra Renewables          605    592  
Sempra Natural Gas          339    361  
All other          76    134  
Total        $ 1,376  $ 1,427  
(1)Revenues for reportable segments include intersegment revenues of:        
 $2 million, $16 million, $23 million and $56 million for the three months ended June 30, 2013; $4 million, $31 million, $45 million and $115 million for the six months ended June 30, 2013; $1 million, $16 million, $37 million and $34 million for the three months ended June 30, 2012; and $3 million, $31 million, $83 million and $71 million for the six months ended June 30, 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. 
(2)After preferred dividends.