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SEGMENT INFORMATION
 3 Months Ended
Sep. 30, 2013
Notes to Consolidated Financial Statements [Abstract]  
Segment Information

NOTE 11. 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. In June 2013, we sold our interests in two Argentine utilities, which we discuss further in Note 4 above.

     

  • 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, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.
  • Sempra Natural Gas develops, owns and operates, or holds interests in, a natural gas-fired electric generation asset, 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 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.

During the fourth quarter of 2012, Sempra Mexico initiated a public debt offering process through one of its subsidiaries. We discuss this debt issuance, which occurred on February 14, 2013, in Note 6. The subsidiary issuing the debt, now IEnova, was previously included in Parent and Other. In anticipation of the debt issuance, we revised the manner in which we make resource allocation decisions to our Sempra Mexico segment and assess its performance. As a result, we reclassified certain amounts from Parent and Other, which contains interest and other corporate costs and certain holding company activities, to our Sempra Mexico segment. Losses reclassified as a result of the restatement were $12 million for both the three months and nine months ended September 30, 2012. In accordance with U.S. GAAP, the historical segment disclosures have been restated to be consistent with the current presentation.

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 September 30,Nine months ended September 30,
  2013201220132012
REVENUES                
SDG&E$ 1,063 42%$ 1,092 44%$ 3,066 39%$ 2,706 39%
SoCalGas  807 32   728 29   2,694 34   2,328 33 
Sempra South American Utilities  364 14   356 14   1,119 14   1,061 15 
Sempra Mexico  188 7   181 7   519 7   435 6 
Sempra Renewables  25 1   27 1   76 1   49 1 
Sempra Natural Gas  212 8   294 12   683 9   761 11 
Adjustments and eliminations  ― ―   ― ―   (2) ―   (2) ― 
Intersegment revenues(1)  (108) (4)   (171) (7)   (303) (4)   (359) (5) 
Total$ 2,551 100%$ 2,507 100%$ 7,852 100%$ 6,979 100%
INTEREST EXPENSE                
SDG&E$ 50  $ 49  $ 147  $ 124  
SoCalGas  17    17    52    51  
Sempra South American Utilities  8    6    20    22  
Sempra Mexico  ―    3    5    6  
Sempra Renewables  5    6    22    13  
Sempra Natural Gas  34    26    80    72  
All other  60    62    182    185  
Intercompany eliminations  (37)    (43)    (95)    (121)  
Total$ 137  $ 126  $ 413  $ 352  
INTEREST INCOME                
SDG&E$ ―  $ ―  $ 1  $ ―  
Sempra South American Utilities  3    3    11    11  
Sempra Mexico  ―    ―    1    1  
Sempra Renewables  7    2    14    3  
Sempra Natural Gas  26    15    57    41  
All other  2    2    1    1  
Intercompany eliminations  (33)    (17)    (70)    (43)  
Total$ 5  $ 5  $ 15  $ 14  
DEPRECIATION AND AMORTIZATION        
SDG&E$ 126 44%$ 128 46%$ 367 44%$ 359 45%
SoCalGas  100 35   91 33   280 34   268 33 
Sempra South American Utilities  14 5   15 5   44 5   42 5 
Sempra Mexico  16 5   15 5   47 6   46 6 
Sempra Renewables  5 2   4 1   20 3   10 1 
Sempra Natural Gas  20 7   24 9   60 7   69 9 
All other  5 2   3 1   10 1   9 1 
Total$ 286 100%$ 280 100%$ 828 100%$ 803 100%
INCOME TAX EXPENSE (BENEFIT)        
SDG&E$ 84  $ 38  $ 147  $ 151  
SoCalGas  38    37    107    105  
Sempra South American Utilities  16    27    50    57  
Sempra Mexico  16    31    44    61  
Sempra Renewables  9    (12)    (8)    (47)  
Sempra Natural Gas  (4)    (45)    35    (171)  
All other  (42)    (27)    (48)    (108)  
Total$ 117  $ 49  $ 327  $ 48  

SEGMENT INFORMATION (Continued)              
(Dollars in millions)                
 Three months ended September 30,Nine months ended September 30,
 2013201220132012
EQUITY EARNINGS (LOSSES)                 
Earnings (losses) recorded before tax:              
Sempra Renewables$ (10)  $ (6)  $ (12)  $ (7)  
Sempra Natural Gas  13    (87)    33    (366)  
All other  ―    (1)    ―    (2)  
Total$ 3  $ (94)  $ 21  $ (375)  
Earnings (losses) recorded net of tax:              
Sempra South American Utilities$ ―  $ ―  $ (14)  $ ―  
Sempra Mexico  8    10    27    29  
Total$ 8  $ 10  $ 13  $ 29  
EARNINGS (LOSSES)                
SDG&E(2)$ 129 44%$ 174 65%$ 285 40%$ 374 66%
SoCalGas(3)  102 34   71 26   266 37   190 34 
Sempra South American Utilities  39 13   40 15   110 15   118 21 
Sempra Mexico  39 13   42 16   96 13   122 22 
Sempra Renewables  37 13   13 5   56 8   47 8 
Sempra Natural Gas  (7) (2)   (68) (25)   55 8   (260) (46) 
All other  (43) (15)   (4) (2)   (149) (21)   (25) (5) 
Total$ 296 100%$ 268 100%$ 719 100%$ 566 100%
          Nine months ended September 30,
          20132012
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT          
SDG&E        $ 679 38%$ 998 44%
SoCalGas          521 29   462 21 
Sempra South American Utilities          120 7   117 5 
Sempra Mexico          280 16   13 1 
Sempra Renewables          119 7   564 25 
Sempra Natural Gas          65 3   84 4 
All other          1 ―   3 ― 
Total        $ 1,785 100%$ 2,241 100%
   September 30, 2013December 31, 2012
ASSETS          
SDG&E        $ 15,275 41%$ 14,744 40%
SoCalGas          9,288 25   9,071 25 
Sempra South American Utilities          3,492 10   3,310 9 
Sempra Mexico          3,315 9   2,591 7 
Sempra Renewables          1,898 5   2,439 7 
Sempra Natural Gas          7,078 19   5,145 14 
All other          621 2   818 2 
Intersegment receivables          (4,066) (11)   (1,619) (4) 
Total        $ 36,901 100%$ 36,499 100%
INVESTMENTS IN EQUITY METHOD INVESTEES          
Sempra South American Utilities        $ (2)  $ ―  
Sempra Mexico          367    340  
Sempra Renewables          701    592  
Sempra Natural Gas          330    361  
All other          76    134  
Total        $ 1,472  $ 1,427  
(1)Revenues for reportable segments include intersegment revenues of:        
 $3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013; $3 million, $17 million, $78 million and $73 million for the three months ended September 30, 2012; and $6 million, $48 million, $161 million and $144 million for the nine months ended September 30, 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. 
(2)After preferred dividends and call premium on preferred stock.          
(3)After preferred dividends.