SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2015

Notes to Consolidated Financial Statements [Abstract]

Segment Information

NOTE 12. 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.
• 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, Minnesota, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.
• Sempra Natural Gas develops, owns and operates, or holds interests in, 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 Natural Gas also owns and operates the Mesquite Power plant, a natural gas-fired electric generation asset. In April 2015, Sempra Natural Gas sold the remaining 625-MW block of Mesquite Power, as we discuss in Note 3.

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.

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 March 31,
	2015				2014
REVENUES
SDG&E	$	966	36	%	$	987	35	%
SoCalGas		1,048	39			1,085	39
Sempra South American Utilities		389	15			378	14
Sempra Mexico		163	6			201	7
Sempra Renewables		8	―			6	―
Sempra Natural Gas		197	7			260	9
Intersegment revenues(1)		(89)	(3)			(122)	(4)
Total	$	2,682	100	%	$	2,795	100	%
INTEREST EXPENSE
SDG&E	$	52			$	50
SoCalGas		19				17
Sempra South American Utilities		5				8
Sempra Mexico		5				4
Sempra Renewables		1				―
Sempra Natural Gas		21				32
All other		63				58
Intercompany eliminations		(32)				(33)
Total	$	134			$	136
INTEREST INCOME
Sempra South American Utilities	$	4			$	3
Sempra Mexico		2				―
Sempra Natural Gas		19				31
Intercompany eliminations		(18)				(30)
Total	$	7			$	4
DEPRECIATION AND AMORTIZATION
SDG&E	$	145	48	%	$	130	45	%
SoCalGas		113	37			105	37
Sempra South American Utilities		13	4			14	5
Sempra Mexico		17	6			16	6
Sempra Renewables		2	1			1	―
Sempra Natural Gas		12	4			17	6
All other		1	―			3	1
Total	$	303	100	%	$	286	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	88			$	83
SoCalGas		95				38
Sempra South American Utilities		16				15
Sempra Mexico		8				12
Sempra Renewables		(17)				(6)
Sempra Natural Gas		2				6
All other		(29)				(21)
Total	$	163			$	127

SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
		Three months ended March 31,
		2015				2014
EQUITY EARNINGS (LOSSES)
Earnings recorded before tax:
Sempra Renewables		$	2			$	2
Sempra Natural Gas			17				15
Total		$	19			$	17
(Losses) earnings recorded net of tax:
Sempra South American Utilities		$	(1)			$	(2)
Sempra Mexico			16				8
Total		$	15			$	6
EARNINGS (LOSSES)
SDG&E		$	147	34	%	$	99	40	%
SoCalGas(2)			214	49			78	32
Sempra South American Utilities			41	9			35	14
Sempra Mexico			47	11			42	17
Sempra Renewables			13	3			28	11
Sempra Natural Gas			2	―			9	4
All other			(27)	(6)			(44)	(18)
Total		$	437	100	%	$	247	100	%
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E		$	355	46	%	$	294	37	%
SoCalGas			315	40			260	33
Sempra South American Utilities			31	4			32	4
Sempra Mexico			55	7			75	9
Sempra Renewables			3	1			99	12
Sempra Natural Gas			10	1			40	5
All other			11	1			1	―
Total		$	780	100	%	$	801	100	%
		March 31, 2015				December 31, 2014
ASSETS
SDG&E		$	16,485	42	%	$	16,296	41	%
SoCalGas			10,563	27			10,461	26
Sempra South American Utilities			3,350	8			3,379	9
Sempra Mexico			3,502	9			3,488	9
Sempra Renewables			1,277	3			1,338	3
Sempra Natural Gas			6,032	15			6,436	16
All other			960	2			895	2
Intersegment receivables			(2,618)	(6)			(2,561)	(6)
Total		$	39,551	100	%	$	39,732	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra South American Utilities		$	(8)			$	(8)
Sempra Mexico			439				434
Sempra Renewables			859				911
Sempra Natural Gas			1,319				1,347
All other			163				164
Total		$	2,772			$	2,848
(1)	Revenues for reportable segments include intersegment revenues of $2 million, $19 million, $25 million and $43 million for the three months ended March 31, 2015 and $3 million, $18 million, $22 million and $79 million for the three months ended March 31, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	After preferred dividends.