SEGMENT INFORMATION

3 Months Ended

Jun. 30, 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 owned and operated the Mesquite Power plant, a natural gas-fired electric generation asset, the remaining 625-MW block of which was sold in April 2015, 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 June 30,								Six months ended June 30,
	2015				2014				2015				2014
REVENUES
SDG&E	$	972	41	%	$	1,063	40	%	$	1,938	38	%	$	2,050	37	%
SoCalGas		780	33			917	34			1,828	36			2,002	37
Sempra South American Utilities		389	16			390	15			778	15			768	14
Sempra Mexico		152	6			186	7			315	6			387	7
Sempra Renewables		10	1			9	―			18	1			15	―
Sempra Natural Gas		155	7			236	9			352	7			496	9
Adjustments and eliminations		(1)	―			(2)	―			(1)	―			(2)	―
Intersegment revenues(1)		(90)	(4)			(121)	(5)			(179)	(3)			(243)	(4)
Total	$	2,367	100	%	$	2,678	100	%	$	5,049	100	%	$	5,473	100	%
INTEREST EXPENSE
SDG&E	$	52			$	51			$	104			$	101
SoCalGas		19				16				38				33
Sempra South American Utilities		8				9				13				17
Sempra Mexico		6				4				11				8
Sempra Renewables		1				1				2				1
Sempra Natural Gas		23				33				44				65
All other		65				57				128				115
Intercompany eliminations		(35)				(33)				(67)				(66)
Total	$	139			$	138			$	273			$	274
INTEREST INCOME
SoCalGas	$	3			$	―			$	3			$	―
Sempra South American Utilities		5				3				9				6
Sempra Mexico		2				1				4				1
Sempra Renewables		1				―				1				―
Sempra Natural Gas		25				32				44				63
All other		―				1				―				1
Intercompany eliminations		(26)				(32)				(44)				(62)
Total	$	10			$	5			$	17			$	9
DEPRECIATION AND AMORTIZATION
SDG&E	$	149	48	%	$	131	45	%	$	294	48	%	$	261	45	%
SoCalGas		113	37			107	37			226	37			212	37
Sempra South American Utilities		12	4			13	5			25	4			27	5
Sempra Mexico		17	6			15	5			34	6			31	5
Sempra Renewables		1	―			2	1			3	―			3	1
Sempra Natural Gas		12	4			16	6			24	4			33	6
All other		3	1			4	1			4	1			7	1
Total	$	307	100	%	$	288	100	%	$	610	100	%	$	574	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	54			$	69			$	142			$	152
SoCalGas		16				28				111				66
Sempra South American Utilities		18				18				34				33
Sempra Mexico		5				12				13				24
Sempra Renewables		(11)				(13)				(28)				(19)
Sempra Natural Gas		27				3				29				9
All other		(11)				(24)				(40)				(45)
Total	$	98			$	93			$	261			$	220

SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
		Three months ended June 30,								Six months ended June 30,
		2015				2014				2015				2014
EQUITY EARNINGS (LOSSES)
Earnings recorded before tax:
Sempra Renewables		$	10			$	9			$	12			$	11
Sempra Natural Gas			17				14				34				29
Total		$	27			$	23			$	46			$	40
Earnings (losses) recorded net of tax:
Sempra South American Utilities		$	―			$	―			$	(1)			$	(2)
Sempra Mexico			22				9				38				17
Total		$	22			$	9			$	37			$	15
EARNINGS (LOSSES)
SDG&E		$	126	43	%	$	123	46	%	$	273	37	%	$	222	43	%
SoCalGas(2)			70	24			80	30			284	39			158	31
Sempra South American Utilities			45	15			42	15			86	12			77	15
Sempra Mexico			50	17			34	13			97	13			76	15
Sempra Renewables			19	6			18	7			32	4			46	9
Sempra Natural Gas			40	14			4	1			42	6			13	2
All other			(55)	(19)			(32)	(12)			(82)	(11)			(76)	(15)
Total		$	295	100	%	$	269	100	%	$	732	100	%	$	516	100	%
										Six months ended June 30,
										2015				2014
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E										$	600	41	%	$	543	36	%
SoCalGas											603	41			500	33
Sempra South American Utilities											66	5			89	6
Sempra Mexico											120	8			189	13
Sempra Renewables											22	1			122	8
Sempra Natural Gas											28	2			67	4
All other											27	2			3	―
Total										$	1,466	100	%	$	1,513	100	%
										June 30, 2015				December 31, 2014
ASSETS
SDG&E										$	16,633	42	%	$	16,296	41	%
SoCalGas											11,209	28			10,461	26
Sempra South American Utilities											3,312	8			3,379	9
Sempra Mexico											3,568	9			3,488	9
Sempra Renewables											1,312	3			1,338	3
Sempra Natural Gas											5,535	14			6,436	16
All other											893	2			895	2
Intersegment receivables											(2,456)	(6)			(2,561)	(6)
Total										$	40,006	100	%	$	39,732	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra South American Utilities										$	(9)			$	(8)
Sempra Mexico											474				434
Sempra Renewables											868				911
Sempra Natural Gas											1,510				1,347
All other											86				164
Total										$	2,929			$	2,848
(1)	Revenues for reportable segments include intersegment revenues of $3 million, $17 million, $24 million and $46 million for the three months ended June 30, 2015; $5 million, $36 million, $49 million and $89 million for the six months ended June 30, 2015; $2 million, $16 million, $23 million and $80 million for the three months ended June 30, 2014; and $5 million, $34 million, $45 million and $159 million for the six months ended June 30, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	After preferred dividends.