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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information 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 develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru.
▪
Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. In February 2016, management approved a plan to market and sell the TdM natural gas-fired power plant located in Mexicali, Baja California, as we discuss in Note 3.
▪
Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the United States.
▪
Sempra LNG & Midstream develops, owns and operates, or holds interests in, a terminal for the import and export of LNG and sale of natural gas, and natural gas pipelines and storage facilities, all within the United States. In September 2016, Sempra LNG & Midstream sold EnergySouth, the parent company of Mobile Gas and Willmut Gas, and in May 2016, sold its 25-percent interest in Rockies Express. We discuss these divestitures in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report.
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,
 
2017
 
2016
 
2017
 
2016
REVENUES
 
 
 
 
 
 
 
SDG&E
$
1,058

 
$
992

 
$
2,115

 
$
1,983

SoCalGas
770

 
617

 
2,011

 
1,650

Sempra South American Utilities
381

 
385

 
793

 
785

Sempra Mexico
273

 
147

 
537

 
285

Sempra Renewables
26

 
6

 
48

 
13

Sempra LNG & Midstream
122

 
90

 
254

 
220

Intersegment revenues(1)
(97
)
 
(81
)
 
(194
)
 
(158
)
Total
$
2,533

 
$
2,156

 
$
5,564

 
$
4,778

INTEREST EXPENSE
 
 
 
 
 
 
 
SDG&E
$
49

 
$
48

 
$
98

 
$
96

SoCalGas
26

 
24

 
51

 
46

Sempra South American Utilities
11

 
11

 
20

 
20

Sempra Mexico
20

 
4

 
52

 
8

Sempra Renewables
4

 
—

 
8

 
—

Sempra LNG & Midstream
9

 
10

 
20

 
22

All other
67

 
74

 
135

 
146

Intercompany eliminations
(27
)
 
(29
)
 
(56
)
 
(53
)
Total
$
159

 
$
142

 
$
328

 
$
285

INTEREST INCOME
 
 
 
 
 
 
 
Sempra South American Utilities
$
6

 
$
5

 
$
11

 
$
10

Sempra Mexico
3

 
1

 
5

 
3

Sempra Renewables
2

 
—

 
3

 
1

Sempra LNG & Midstream
12

 
17

 
29

 
33

Intercompany eliminations
(15
)
 
(17
)
 
(34
)
 
(35
)
Total
$
8

 
$
6

 
$
14

 
$
12

DEPRECIATION AND AMORTIZATION
 
 
 
 
 
 
 
SDG&E
$
166

 
$
158

 
$
329

 
$
317

SoCalGas
126

 
112

 
252

 
234

Sempra South American Utilities
13

 
14

 
26

 
27

Sempra Mexico
37

 
15

 
73

 
32

Sempra Renewables
10

 
2

 
19

 
3

Sempra LNG & Midstream
11

 
12

 
21

 
25

All other
5

 
1

 
8

 
4

Total
$
368

 
$
314

 
$
728

 
$
642

INCOME TAX EXPENSE (BENEFIT)(2)
 
 
 
 
 
 
 
SDG&E
$
54

 
$
48

 
$
144

 
$
113

SoCalGas
19

 
(29
)
 
117

 
54

Sempra South American Utilities
20

 
15

 
39

 
29

Sempra Mexico
102

 
(12
)
 
244

 
28

Sempra Renewables
(5
)
 
(9
)
 
(16
)
 
(22
)
Sempra LNG & Midstream
18

 
(99
)
 
19

 
(128
)
All other
(41
)
 
(20
)
 
(85
)
 
(72
)
Total
$
167

 
$
(106
)
 
$
462

 
$
2

SEGMENT INFORMATION (CONTINUED)
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
2017

2016
EQUITY EARNINGS (LOSSES)
 
 
 
 
 
 
 
Earnings (losses) recorded before tax:
 
 
 
 
 
 
 
Sempra Renewables
$
16

 
$
11

 
$
18

 
$
18

Sempra LNG & Midstream
2

 
3

 
3

 
(26
)
Total
$
18

 
$
14

 
$
21

 
$
(8
)
Earnings (losses) recorded net of tax:
 
 
 
 
 
 
 
Sempra South American Utilities
$
—

 
$
—

 
$
1

 
$
2

Sempra Mexico
—

 
33

 
(9
)
 
48

Total
$
—

 
$
33

 
$
(8
)
 
$
50

EARNINGS (LOSSES)(2)
 
 
 
 
 
 
 
SDG&E
$
149

 
$
100

 
$
304

 
$
236

SoCalGas(3)
58

 
(1
)
 
261

 
198

Sempra South American Utilities
45

 
43

 
92

 
81

Sempra Mexico
(9
)
 
57

 
39

 
75

Sempra Renewables
23

 
12

 
34

 
26

Sempra LNG & Midstream
27

 
(149
)
 
28

 
(181
)
All other
(34
)
 
(46
)
 
(58
)
 
(66
)
Total
$
259

 
$
16

 
$
700

 
$
369

EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
 
 
 
 
 
 
 
SDG&E
 
 
 
 
$
763

 
$
602

SoCalGas
 
 
 
 
682

 
650

Sempra South American Utilities
 
 
 
 
77

 
82

Sempra Mexico
 
 
 
 
155

 
140

Sempra Renewables
 
 
 
 
100

 
457

Sempra LNG & Midstream
 
 
 
 
12

 
68

All other
 
 
 
 
13

 
7

Total
 
 
 
 
$
1,802

 
$
2,006

 
 
 
 
 
June 30, 2017
 
December 31, 2016
ASSETS
 
 
 
 
SDG&E
 
 
 
 
$
18,708

 
$
17,719

SoCalGas
 
 
 
 
13,743

 
13,424

Sempra South American Utilities
 
 
 
 
3,750

 
3,591

Sempra Mexico
 
 
 
 
7,835

 
7,542

Sempra Renewables
 
 
 
 
2,349

 
3,644

Sempra LNG & Midstream
 
 
 
 
4,861

 
5,564

All other
 
 
 
 
660

 
475

Intersegment receivables
 
 
 
 
(2,530
)
 
(4,173
)
Total
 
 
 
 
$
49,376

 
$
47,786

EQUITY METHOD AND OTHER INVESTMENTS
 
 
 
 
Sempra South American Utilities
 
 
 
 
$
20

 
$
—

Sempra Mexico
 
 
 
 
234

 
180

Sempra Renewables
 
 
 
 
825

 
844

Sempra LNG & Midstream
 
 
 
 
977

 
997

All other
 
 
 
 
78

 
76

Total
 
 
 
 
$
2,134

 
$
2,097

(1)
Revenues for reportable segments include intersegment revenues of $3 million, $17 million, $26 million and $51 million for the three months ended June 30, 2017; $4 million, $35 million, $51 million and $104 million for the six months ended June 30, 2017; a negligible amount, $18 million, $27 million and $36 million for the three months ended June 30, 2016; and $3 million, $35 million, $54 million and $66 million for the six months ended June 30, 2016 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.
(2)
Amounts for the six months ended June 30, 2016 reflect the adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2.
(3)
After preferred dividends.