SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2015

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 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 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, Minnesota, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.
• Sempra Natural Gas develops, owns and operates, or holds interests in, 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 Natural Gas also owned and operated the Mesquite Power plant, a natural gas-fired electric generation asset, the remaining 625-MW block of which was sold in April 2015, as we discuss in Note 3.

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 September 30,								Nine months ended September 30,
	2015				2014				2015				2014
REVENUES
SDG&E	$	1,230	50	%	$	1,233	44	%	$	3,168	42	%	$	3,283	40	%
SoCalGas		620	25			855	30			2,448	33			2,857	35
Sempra South American Utilities		373	15			379	14			1,151	15			1,147	14
Sempra Mexico		193	8			234	8			508	7			621	7
Sempra Renewables		12	―			10	―			30	―			25	―
Sempra Natural Gas		160	6			252	9			512	7			748	9
Adjustments and eliminations		―	―			1	―			(1)	―			(1)	―
Intersegment revenues(1)		(107)	(4)			(149)	(5)			(286)	(4)			(392)	(5)
Total	$	2,481	100	%	$	2,815	100	%	$	7,530	100	%	$	8,288	100	%
INTEREST EXPENSE
SDG&E	$	51			$	51			$	155			$	152
SoCalGas		23				17				61				50
Sempra South American Utilities		9				7				22				24
Sempra Mexico		7				5				18				13
Sempra Renewables		1				2				3				3
Sempra Natural Gas		13				25				57				90
All other		65				63				193				178
Intercompany eliminations		(26)				(26)				(93)				(92)
Total	$	143			$	144			$	416			$	418
INTEREST INCOME
SoCalGas	$	―			$	―			$	3			$	―
Sempra South American Utilities		5				4				14				10
Sempra Mexico		1				1				5				2
Sempra Renewables		2				―				3				―
Sempra Natural Gas		16				24				60				87
All other		―				(1)				―				―
Intercompany eliminations		(18)				(22)				(62)				(84)
Total	$	6			$	6			$	23			$	15
DEPRECIATION AND AMORTIZATION
SDG&E	$	152	48	%	$	134	46	%	$	446	48	%	$	395	46	%
SoCalGas		116	37			109	37			342	37			321	37
Sempra South American Utilities		12	4			14	5			37	4			41	5
Sempra Mexico		18	6			16	6			52	6			47	5
Sempra Renewables		2	―			1	―			5	―			4	―
Sempra Natural Gas		12	4			17	6			36	4			50	6
All other		3	1			1	―			7	1			8	1
Total	$	315	100	%	$	292	100	%	$	925	100	%	$	866	100	%
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	75			$	65			$	217			$	217
SoCalGas		(20)				44				91				110
Sempra South American Utilities		16				26				50				59
Sempra Mexico		(6)				13				7				37
Sempra Renewables		(9)				(16)				(37)				(35)
Sempra Natural Gas		―				(31)				29				(22)
All other		(41)				(30)				(81)				(75)
Total	$	15			$	71			$	276			$	291

SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
		Three months ended September 30,								Nine months ended September 30,
		2015				2014				2015				2014
EQUITY EARNINGS (LOSSES)
Earnings recorded before tax:
Sempra Renewables		$	8			$	7			$	20			$	18
Sempra Natural Gas			25				15				59				44
Total		$	33			$	22			$	79			$	62
Earnings (losses) recorded net of tax:
Sempra South American Utilities		$	(3)			$	(2)			$	(4)			$	(4)
Sempra Mexico			30				9				68				26
Total		$	27			$	7			$	64			$	22
EARNINGS (LOSSES)
SDG&E		$	170	69	%	$	157	45	%	$	443	45	%	$	379	44	%
SoCalGas(2)			(8)	(3)			98	28			276	28			256	30
Sempra South American Utilities			43	17			32	9			129	13			109	13
Sempra Mexico			63	25			63	18			160	16			139	16
Sempra Renewables			15	6			17	5			47	5			63	7
Sempra Natural Gas			1	―			26	8			43	5			39	4
All other			(36)	(14)			(45)	(13)			(118)	(12)			(121)	(14)
Total		$	248	100	%	$	348	100	%	$	980	100	%	$	864	100	%
										Nine months ended September 30,
										2015				2014
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E										$	835	38	%	$	790	34	%
SoCalGas											946	42			764	33
Sempra South American Utilities											105	5			126	5
Sempra Mexico											185	8			262	11
Sempra Renewables											47	2			174	8
Sempra Natural Gas											61	3			192	8
All other											48	2			12	1
Total										$	2,227	100	%	$	2,320	100	%
										September 30, 2015				December 31, 2014
ASSETS
SDG&E										$	16,692	41	%	$	16,296	41	%
SoCalGas											11,355	28			10,461	26
Sempra South American Utilities											3,265	8			3,379	9
Sempra Mexico											3,713	9			3,488	9
Sempra Renewables											1,351	3			1,338	3
Sempra Natural Gas											5,552	14			6,436	16
All other											1,118	3			895	2
Intersegment receivables											(2,480)	(6)			(2,561)	(6)
Total										$	40,566	100	%	$	39,732	100	%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra South American Utilities										$	(11)			$	(8)
Sempra Mexico											491				434
Sempra Renewables											843				911
Sempra Natural Gas											1,435				1,347
All other											87				164
Total										$	2,845			$	2,848
(1)	Revenues for reportable segments include intersegment revenues of $2 million, $19 million, $24 million and $62 million for the three months ended September 30, 2015; $7 million, $55 million, $73 million and $151 million for the nine months ended September 30, 2015; $2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; and $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)	After preferred dividends.