SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

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 Texas Utilities holds our investment in Oncor Holdings, which owns an 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, and western and panhandle regions of Texas; and our indirect, 50% interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission and distribution utility serving customers near the Texas-Mexico border. As we discuss in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report, we acquired our investment in Sharyland Holdings in May 2019.

▪ 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.

▪ Sempra LNG develops projects for the export of LNG, holds an interest in a facility for the export of LNG, owns and operates natural gas pipelines, and buys, sells and transports natural gas through its marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas.

In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The tables below include amounts from Sempra Renewables up until cessation of the segment.

As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment is presented as discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We completed the sales of our discontinued operations in the second quarter of 2020.

We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures 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.

The cost of common services shared by the business segments is 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 activities of parent organizations and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations.

SEGMENT INFORMATION
(Dollars in millions)
	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
REVENUES
SDG&E	$	1,235		$	1,094		$	2,504		$	2,239
SoCalGas	1,010			806			2,405			2,167
Sempra Mexico	275			318			584			701
Sempra Renewables	—			3			—			10
Sempra LNG	69			86			192			227
All other	—			—			1			—
Adjustments and eliminations	(1		)	(1		)	(2		)	(1		)
Intersegment revenues(1)	(62		)	(76		)	(129		)	(215		)
Total	$	2,526		$	2,230		$	5,555		$	5,128
INTEREST EXPENSE
SDG&E	$	103		$	102		$	204		$	205
SoCalGas	40			34			80			68
Sempra Mexico	32			29			64			59
Sempra Renewables	—			—			—			3
Sempra LNG	15			3			31			7
All other	102			110			211			219
Intercompany eliminations	(18		)	(20		)	(36		)	(43		)
Total	$	274		$	258		$	554		$	518
INTEREST INCOME
SDG&E	$	—		$	1		$	1		$	2
SoCalGas	1			1			2			1
Sempra Mexico	15			19			33			38
Sempra Renewables	—			1			—			11
Sempra LNG	18			16			40			30
All other	3			—			3			1
Intercompany eliminations	(15		)	(17		)	(30		)	(41		)
Total	$	22		$	21		$	49		$	42
DEPRECIATION AND AMORTIZATION
SDG&E	$	197		$	189		$	398		$	375
SoCalGas	162			148			321			295
Sempra Mexico	47			46			94			90
Sempra LNG	3			3			5			5
All other	3			3			6			7
Total	$	412		$	389		$	824		$	772
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	70		$	35		$	128		$	40
SoCalGas	49			(4		)	101			15
Sempra Mexico	54			44			(253		)	116
Sempra Renewables	—			14			—			4
Sempra LNG	18			2			41			6
All other	(23		)	(44		)	(56		)	(92		)
Total	$	168		$	47		$	(39	)	$	89
EQUITY EARNINGS (LOSSES)
Equity earnings (losses), before income tax:
Sempra Texas Utilities	$	—		$	1		$	—		$	1
Sempra Renewables	—			2			—			5
Sempra LNG	84			—			141			2
All other	—			(1		)	(100		)	(1		)
	84			2			41			7
Equity earnings, net of income tax:
Sempra Texas Utilities	143			112			249			206
Sempra Mexico	6			4			206			6
	149			116			455			212
Total	$	233		$	118		$	496		$	219

SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
SDG&E	$	193		$	143		$	455		$	319
SoCalGas	146			30			449			294
Sempra Texas Utilities	144			113			249			207
Sempra Mexico	61			73			252			130
Sempra Renewables	—			46			—			59
Sempra LNG	61			6			136			11
Discontinued operations	1,775			70			1,847			19
All other	(141		)	(127		)	(389		)	(244		)
Total	$	2,239		$	354		$	2,999		$	795
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E							$	850		$	708
SoCalGas							885			659
Sempra Mexico							321			240
Sempra Renewables							—			2
Sempra LNG							136			40
All other							6			2
Total							$	2,198		$	1,651
							June 30,  2020			December 31, 2019
ASSETS
SDG&E							$	21,333		$	20,560
SoCalGas							17,899			17,077
Sempra Texas Utilities							11,881			11,619
Sempra Mexico							10,763			9,938
Sempra LNG							4,049			3,901
Discontinued operations							—			3,958
All other							4,666			749
Intersegment receivables							(2,206		)	(2,137		)
Total							$	68,385		$	65,665
EQUITY METHOD AND OTHER INVESTMENTS
Sempra Texas Utilities							$	11,858		$	11,619
Sempra Mexico							914			741
Sempra LNG							1,183			1,256
All other							—			6
Total							$	13,955		$	13,622

⁽¹⁾ 

Revenues for reportable segments include intersegment revenues of $2 million, $20 million, $28 million and $12 million for the three months ended June 30, 2020; $3 million, $38 million, $57 million and $31 million for the six months ended June 30, 2020; $2 million, $17 million, $32 million and $25 million for the three months ended June 30, 2019; and $3 million, $34 million, $60 million and $118 million for the six months ended June 30, 2019 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG, respectively.