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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We have seven 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 Utility holds our investment in Oncor Holdings, which owns an 80.25-percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. As we discuss in Note 5, we completed our acquisition of the investment in March 2018.
▪
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.
▪
Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the U.S. In June 2018, our board of directors approved a plan to market and sell all wind assets and investments and solar assets and investments, as we discuss in Note 5.
▪
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, storage facilities and marketing operations, all within the U.S. In June 2018, our board of directors approved a plan to market and sell our natural gas storage assets at Mississippi Hub and our 90.9-percent ownership interest in Bay Gas, as we discuss in Note 5.
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. 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.
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.
SEGMENT INFORMATION
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
REVENUES
 
 
 
 
 
 
 
SDG&E
$
1,051

 
$
1,058

 
$
2,106

 
$
2,115

SoCalGas
772

 
770

 
1,898

 
2,011

Sempra South American Utilities
389

 
381

 
815

 
793

Sempra Mexico
310

 
273

 
618

 
537

Sempra Renewables
40

 
26

 
65

 
48

Sempra LNG & Midstream
79

 
122

 
183

 
254

Adjustments and eliminations
(1
)
 
—

 
(2
)
 
—

Intersegment revenues(1)
(76
)
 
(97
)
 
(157
)
 
(194
)
Total
$
2,564

 
$
2,533

 
$
5,526

 
$
5,564

INTEREST EXPENSE
 
 
 
 
 
 
 
SDG&E
$
53

 
$
49

 
$
105

 
$
98

SoCalGas
26

 
26

 
53

 
51

Sempra South American Utilities
10

 
11

 
20

 
20

Sempra Mexico
30

 
20

 
60

 
52

Sempra Renewables
5

 
4

 
10

 
8

Sempra LNG & Midstream
7

 
9

 
15

 
20

All other
137

 
67

 
249

 
135

Intercompany eliminations
(31
)
 
(27
)
 
(59
)
 
(56
)
Total
$
237

 
$
159

 
$
453

 
$
328

INTEREST INCOME
 
 
 
 
 
 
 
SDG&E
$
1

 
$
—

 
$
2

 
$
—

SoCalGas
1

 
—

 
1

 
—

Sempra South American Utilities
7

 
6

 
13

 
11

Sempra Mexico
16

 
3

 
31

 
5

Sempra Renewables
2

 
2

 
4

 
3

Sempra LNG & Midstream
13

 
12

 
26

 
29

All other
(1
)
 
—

 
13

 
—

Intercompany eliminations
(18
)
 
(15
)
 
(36
)
 
(34
)
Total
$
21

 
$
8

 
$
54

 
$
14

DEPRECIATION AND AMORTIZATION
 
 
 
 
 
 
 
SDG&E
$
169

 
$
166

 
$
335

 
$
329

SoCalGas
138

 
126

 
273

 
252

Sempra South American Utilities
15

 
13

 
29

 
26

Sempra Mexico
43

 
37

 
86

 
73

Sempra Renewables
14

 
10

 
27

 
19

Sempra LNG & Midstream
11

 
11

 
22

 
21

All other
2

 
5

 
6

 
8

Total
$
392

 
$
368

 
$
778

 
$
728

INCOME TAX EXPENSE (BENEFIT)
 
 
 
 
 
 
 
SDG&E
$
42

 
$
54

 
$
98

 
$
144

SoCalGas
23

 
19

 
82

 
117

Sempra South American Utilities
21

 
20

 
41

 
39

Sempra Mexico
(55
)
 
102

 
100

 
244

Sempra Renewables
(58
)
 
(5
)
 
(65
)
 
(16
)
Sempra LNG & Midstream
(506
)
 
18

 
(494
)
 
19

All other
(50
)
 
(41
)
 
(56
)
 
(85
)
Total
$
(583
)
 
$
167

 
$
(294
)
 
$
462

SEGMENT INFORMATION (CONTINUED)
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018

2017
EQUITY (LOSSES) EARNINGS
 
 
 
 
 
 
 
Equity (losses) earnings before income tax:
 
 
 
 
 
 
 
Sempra Renewables
$
(187
)
 
$
16

 
$
(182
)
 
$
18

Sempra LNG & Midstream
1

 
2

 
1

 
3

All other
(3
)
 
—

 
(3
)
 
—

 
(189
)
 
18

 
(184
)
 
21

Equity earnings (losses) net of income tax:
 
 
 
 
 
 
 
Sempra Texas Utility
114

 
—

 
129

 
—

Sempra South American Utilities
—

 
—

 
1

 
1

Sempra Mexico
71

 
—

 
30

 
(9
)
 
185

 
—

 
160

 
(8
)
Total
$
(4
)
 
$
18

 
$
(24
)
 
$
13

EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
 
 
 
 
 
 
 
SDG&E
$
146

 
$
149

 
$
316

 
$
304

SoCalGas(2)
33

 
58

 
258

 
261

Sempra Texas Utility
114

 
—

 
129

 
—

Sempra South American Utilities
44

 
45

 
90

 
92

Sempra Mexico
97

 
(9
)
 
117

 
39

Sempra Renewables
(109
)
 
23

 
(88
)
 
34

Sempra LNG & Midstream
(764
)
 
27

 
(780
)
 
28

All other(2)
(122
)
 
(34
)
 
(256
)
 
(58
)
Total
$
(561
)
 
$
259

 
$
(214
)
 
$
700

EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
 
 
 
 
 
 
 
SDG&E
 
 
 
 
$
851

 
$
763

SoCalGas
 
 
 
 
783

 
682

Sempra South American Utilities
 
 
 
 
107

 
77

Sempra Mexico
 
 
 
 
140

 
155

Sempra Renewables
 
 
 
 
37

 
100

Sempra LNG & Midstream
 
 
 
 
13

 
12

All other
 
 
 
 
10

 
13

Total
 
 
 
 
$
1,941

 
$
1,802

 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2018
 
December 31, 2017
ASSETS
 
 
 
 
SDG&E
 
 
 
 
$
18,372

 
$
17,844

SoCalGas
 
 
 
 
14,734

 
14,159

Sempra Texas Utility
 
 
 
 
9,407

 
—

Sempra South American Utilities
 
 
 
 
4,041

 
4,060

Sempra Mexico
 
 
 
 
8,935

 
8,554

Sempra Renewables
 
 
 
 
2,587

 
2,898

Sempra LNG & Midstream
 
 
 
 
3,686

 
4,872

All other
 
 
 
 
869

 
915

Intersegment receivables
 
 
 
 
(2,724
)
 
(2,848
)
Total
 
 
 
 
$
59,907

 
$
50,454

EQUITY METHOD AND OTHER INVESTMENTS
 
 
 
 
Sempra Texas Utility
 
 
 
 
$
9,407

 
$
—

Sempra South American Utilities
 
 
 
 
16

 
16

Sempra Mexico
 
 
 
 
691

 
624

Sempra Renewables
 
 
 
 
612

 
813

Sempra LNG & Midstream
 
 
 
 
1,182

 
997

All other
 
 
 
 
75

 
77

Total
 
 
 
 
$
11,983

 
$
2,527

(1) 
Revenues for reportable segments include intersegment revenues of $1 million, $15 million, $28 million and $32 million for the three months ended June 30, 2018; $2 million, $32 million, $57 million and $66 million for the six months ended June 30, 2018; $3 million, $17 million, $26 million and $51 million for the three months ended June 30, 2017; and $4 million, $35 million, $51 million and $104 million for the six months ended June 30, 2017 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.
(2) 
After preferred dividends.