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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2014
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. 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.

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 March 31,
  20142013
REVENUES        
SDG&E$ 987 35%$ 939 35%
SoCalGas  1,085 39   983 37 
Sempra South American Utilities  378 14   384 15 
Sempra Mexico  201 7   168 6 
Sempra Renewables  6 ―   21 1 
Sempra Natural Gas  260 9   253 10 
Adjustments and eliminations  ― ―   ― ― 
Intersegment revenues(1)  (122) (4)   (98) (4) 
Total$ 2,795 100%$ 2,650 100%
INTEREST EXPENSE        
SDG&E$ 50  $ 48  
SoCalGas  17    17  
Sempra South American Utilities  8    7  
Sempra Mexico  4    2  
Sempra Renewables  ―    8  
Sempra Natural Gas  32    23  
All other  58    63  
Intercompany eliminations  (33)    (30)  
Total$ 136  $ 138  
INTEREST INCOME        
SDG&E$ ―  $ 1  
Sempra South American Utilities  3    5  
Sempra Mexico  ―    1  
Sempra Renewables  ―    3  
Sempra Natural Gas  31    11  
All other  ―    (1)  
Intercompany eliminations  (30)    (14)  
Total$ 4  $ 6  
DEPRECIATION AND AMORTIZATION
SDG&E$ 130 45%$ 134 45%
SoCalGas  105 37   100 34 
Sempra South American Utilities  14 5   15 5 
Sempra Mexico  16 6   16 5 
Sempra Renewables  1 ―   8 3 
Sempra Natural Gas  17 6   20 7 
All other  3 1   2 1 
Total$ 286 100%$ 295 100%
INCOME TAX EXPENSE (BENEFIT)
SDG&E$ 83  $ 51  
SoCalGas  38    24  
Sempra South American Utilities  15    17  
Sempra Mexico  12    26  
Sempra Renewables  (6)    (8)  
Sempra Natural Gas  6    33  
All other  (21)    35  
Total$ 127  $ 178  

SEGMENT INFORMATION (Continued)      
(Dollars in millions)        
 Three months ended March 31,
 20142013
EQUITY EARNINGS (LOSSES)         
Earnings recorded before tax:      
Sempra Renewables$ 2  $ 1  
Sempra Natural Gas  15    9  
All other  ―    ―  
Total$ 17  $ 10  
(Losses) earnings recorded net of tax:      
Sempra South American Utilities$ (2)  $ (7)  
Sempra Mexico  8    11  
Total$ 6  $ 4  
EARNINGS (LOSSES)        
SDG&E(2)$ 99 40%$ 91 51%
SoCalGas(3)  78 32   46 26 
Sempra South American Utilities  35 14   37 21 
Sempra Mexico  42 17   31 17 
Sempra Renewables  28 11   4 2 
Sempra Natural Gas  9 4   53 30 
All other  (44) (18)   (84) (47) 
Total$ 247 100%$ 178 100%
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT  
SDG&E$ 294 37%$ 237 45%
SoCalGas  260 33   179 34 
Sempra South American Utilities  32 4   22 4 
Sempra Mexico  75 9   61 11 
Sempra Renewables  99 12   6 1 
Sempra Natural Gas  40 5   26 5 
All other  1 ―   ― ― 
Total$ 801 100%$ 531 100%
 March 31, 2014December 31, 2013
ASSETS  
SDG&E$ 15,634 42%$ 15,377 41%
SoCalGas  9,331 25   9,147 25 
Sempra South American Utilities  3,523 9   3,531 10 
Sempra Mexico  3,337 9   3,246 9 
Sempra Renewables  1,135 3   1,219 3 
Sempra Natural Gas  7,492 20   7,200 19 
All other  921 2   838 2 
Intersegment receivables  (3,889) (10)   (3,314) (9) 
Total$ 37,484 100%$ 37,244 100%
INVESTMENTS IN EQUITY METHOD INVESTEES  
Sempra South American Utilities$ (5)  $ (3)  
Sempra Mexico  384    379  
Sempra Renewables  757    707  
Sempra Natural Gas  336    329  
All other  73    73  
Total$ 1,545  $ 1,485  
(1)Revenues for reportable segments include intersegment revenues of:
 $3 million, $18 million, $22 million and $79 million for the three months ended March 31, 2014 and $2 million, $15 million, $22 million and $59 million for the three months ended March 31, 2013 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)After preferred dividends for 2013.  
(3)After preferred dividends.