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SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2011
Notes to Consolidated Financial Statements [Abstract]  
Segment Information

NOTE 11. SEGMENT INFORMATION

We have five 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 Generation develops, owns and operates, or holds interests in, electric power plants and energy projects in Arizona, California, Colorado, Nevada, Indiana, Hawaii and Mexico to serve wholesale electricity markets in the United States and Mexico. Sempra Generation also includes the operating results of Sempra Rockies Marketing, which holds firm service capacity on the Rockies Express Pipeline.
  • Sempra Pipelines & Storage develops, owns and operates, or holds interests in, natural gas and propane pipelines and natural gas storage facilities in the United States and Mexico, and companies that provide natural gas or electricity services in Argentina, Chile, Mexico and Peru. 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 Annual Report. Sempra Pipelines & Storage also operates a natural gas distribution utility in Alabama.

In April 2011, Sempra Pipelines & Storage increased its interests in Chile and Peru, as we discuss in Note 3.

  • Sempra LNG develops, owns and operates receipt terminals for importing LNG into the U.S. and Mexico, and has supply and marketing agreements to purchase and sell LNG and natural gas.

We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The Sempra Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The Sempra Utilities' operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.

Prior to 2011, our Sempra Commodities segment contained our investment in RBS Sempra Commodities LLP (RBS Sempra Commodities), which held commodities-marketing businesses previously owned by us. Our investment in the partnership is reported on the equity method. We and RBS, our partner in the joint venture, sold substantially all of the partnership's businesses and assets in four separate transactions completed in July, November and December of 2010 and February of 2011. We discuss these transactions and other matters concerning the partnership in Note 4 above and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

The activity in the partnership no longer meets the quantitative thresholds that require Sempra Commodities to be reported as a reportable segment under applicable GAAP, and we do not consider the remaining wind-down activities of the partnership to be of continuing significance. As a result, effective January 1, 2011, we are reporting the former Sempra Commodities segment in "All other" in the following tables and have restated prior year information to be consistent with this treatment.

Also, in the fourth quarter of 2010, we changed the composition of our reporting segments to include Sempra Rockies Marketing, which was previously included in the Sempra Commodities segment, in the Sempra Generation segment. We have revised segment disclosures for 2010 to reflect this.

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 June 30,Six months ended June 30,
  2011201020112010
REVENUES                
SDG&E$697 29%$ 692 34%$ 1,537 32%$ 1,434 32%
SoCalGas 876 36   834 42   1,932 40   2,016 44 
Sempra Generation 268 11   268 13   537 11   586 13 
Sempra Pipelines & Storage 445 18   75 4   554 11   185 4 
Sempra LNG 159 7   166 8   345 7   371 8 
Adjustments and eliminations  1 ―   (2) ―   1 ―   1 ― 
Intersegment revenues(1) (24) (1)   (25) (1)   (50) (1)   (51) (1) 
Total$ 2,422 100%$ 2,008 100%$ 4,856 100%$ 4,542 100%
INTEREST EXPENSE                
SDG&E$ 31  $ 31  $ 67  $ 62  
SoCalGas  18    16    35    33  
Sempra Generation  4    3    6    7  
Sempra Pipelines & Storage  27    6    35    15  
Sempra LNG  11    12    22    24  
All other(2)  60    61    117    122  
Intercompany eliminations(2)  (33)    (26)    (56)    (51)  
Total$ 118  $ 103  $ 226  $ 212  
INTEREST INCOME                
Sempra Generation$ 1  $ 3  $ 6  $ 5  
Sempra Pipelines & Storage  15    4    17    8  
Sempra LNG  1    ―    2    ―  
All other(2)  ―    ―    1    ―  
Intercompany eliminations(2)  (5)    (3)    (11)    (5)  
Total$ 12  $ 4  $ 15  $ 8  
DEPRECIATION AND AMORTIZATION              
SDG&E$ 105 42%$ 95 44%$ 208 43%$ 187 44%
SoCalGas  82 33   77 36   163 34   152 36 
Sempra Generation  18 7   16 7   37 8   31 7 
Sempra Pipelines & Storage  26 11   10 5   39 8   21 5 
Sempra LNG  12 5   13 6   25 5   25 6 
All other  5 2   4 2   7 2   9 2 
Total$ 248 100%$ 215 100%$ 479 100%$ 425 100%
INCOME TAX EXPENSE (BENEFIT)              
SDG&E$ 42  $ 44  $ 91  $ 75  
SoCalGas  28    34    65    90  
Sempra Generation  12    6    34    (32)  
Sempra Pipelines & Storage  22    7    29    13  
Sempra LNG  12    4    23    16  
All other  (24)    (36)    (41)    (45)  
Total$ 92  $ 59  $ 201  $ 117  

SEGMENT INFORMATION (Continued)              
(Dollars in millions)                
 Three months ended June 30,Six months ended June 30,
 2011201020112010
EQUITY EARNINGS (LOSSES)                
Earnings (losses) recorded                 
before tax:                
Sempra Generation$ (1)  $ (1)  $ ―  $ (1)  
Sempra Pipelines & Storage  10    12    19    22  
All other  (2)    (19)    (11)    (14)  
Total$ 7  $ (8)  $ 8  $ 7  
Earnings recorded net of tax:                
Sempra Pipelines & Storage$ 8  $ 27  $ 39  $ 46  
EARNINGS (LOSSES)                
SDG&E(3)$ 71 14%$ 75 34%$ 160 21%$ 158 48%
SoCalGas(3)  59 12   69 31   127 16   134 41 
Sempra Generation  50 10   52 23   94 12   1 ― 
Sempra Pipelines & Storage  337 66   39 17   391 51   77 24 
Sempra LNG  18 3   13 6   51 7   45 14 
All other  (24) (5)   (26) (11)   (54) (7)   (87) (27) 
Total$ 511 100%$ 222 100%$ 769 100%$ 328 100%
          Six months ended June 30,
           2011  2010 
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT          
SDG&E        $ 71458%$ 522 62%
SoCalGas          32527   216 26 
Sempra Generation          766   5 1 
Sempra Pipelines & Storage          1038   90 11 
Sempra LNG          61   4 ― 
All other          1 ―   2 ― 
Total        $ 1,225 100%$ 839 100%
   June 30, 2011December 31, 2010
ASSETS                
SDG&E        $ 12,366 39%$ 12,077 40%
SoCalGas          7,740 24   7,986 26 
Sempra Generation           2,021 6   2,401 8 
Sempra Pipelines & Storage          7,252 23   5,175 17 
Sempra LNG          2,432 8   2,379 8 
All other          932 3   1,691 6 
Intersegment receivables          (907) (3)   (1,426) (5) 
Total        $ 31,836 100%$ 30,283 100%
INVESTMENTS IN EQUITY METHOD INVESTEES          
Sempra Generation        $ 177  $ 185  
Sempra Pipelines & Storage(4)          1,113    1,777  
All other          453    803  
Total        $ 1,743  $ 2,765  
(1)Revenues for reportable segments include intersegment revenues of:
 $1 million, $12 million and $11 million for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively, for the three months ended June 30, 2011.
 $3 million, $25 million and $22 million for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively, for the six months ended June 30, 2011.
 $2 million, $10 million and $13 million for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively, for the three months ended June 30, 2010.
 $3 million, $21 million and $27 million for SDG&E, SoCalGas and Sempra Pipelines & Storage, respectively, for the six months ended June 30, 2010.
(2)Prior year amounts have been revised to present amounts after eliminations between Parent and corporate entities.
(3)After preferred dividends.                
(4)We provide additional information regarding Sempra Pipelines & Storage's investments in Note 3.