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SEGMENT INFORMATION
 3 Months Ended
Jun. 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 operates electric transmission and distribution utilities 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 June 30,Six months ended June 30,
2015201420152014
REVENUES
SDG&E$97241%$1,06340%$1,93838%$2,05037%
SoCalGas78033917341,828362,00237
Sempra South American Utilities38916390157781576814
Sempra Mexico1526186731563877
Sempra Renewables1019―18115―
Sempra Natural Gas1557236935274969
Adjustments and eliminations(1)―(2)―(1)―(2)―
Intersegment revenues(1)(90)(4)(121)(5)(179)(3)(243)(4)
Total$2,367100%$2,678100%$5,049100%$5,473100%
INTEREST EXPENSE
SDG&E$52$51$104$101
SoCalGas19163833
Sempra South American Utilities891317
Sempra Mexico64118
Sempra Renewables1121
Sempra Natural Gas23334465
All other6557128115
Intercompany eliminations(35)(33)(67)(66)
Total$139$138$273$274
INTEREST INCOME
SoCalGas$3$―$3$―
Sempra South American Utilities5396
Sempra Mexico2141
Sempra Renewables1―1―
Sempra Natural Gas25324463
All other―1―1
Intercompany eliminations(26)(32)(44)(62)
Total$10$5$17$9
DEPRECIATION AND AMORTIZATION
SDG&E$14948%$13145%$29448%$26145%
SoCalGas11337107372263721237
Sempra South American Utilities124135254275
Sempra Mexico176155346315
Sempra Renewables1―213―31
Sempra Natural Gas124166244336
All other31414171
Total$307100%$288100%$610100%$574100%
INCOME TAX EXPENSE (BENEFIT)
SDG&E$54$69$142$152
SoCalGas162811166
Sempra South American Utilities18183433
Sempra Mexico5121324
Sempra Renewables(11)(13)(28)(19)
Sempra Natural Gas273299
All other(11)(24)(40)(45)
Total$98$93$261$220

SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
Three months ended June 30,Six months ended June 30,
2015201420152014
EQUITY EARNINGS (LOSSES)
Earnings recorded before tax:
Sempra Renewables$10$9$12$11
Sempra Natural Gas17143429
Total$27$23$46$40
Earnings (losses) recorded net of tax:
Sempra South American Utilities$―$―$(1)$(2)
Sempra Mexico2293817
Total$22$9$37$15
EARNINGS (LOSSES)
SDG&E$12643%$12346%$27337%$22243%
SoCalGas(2)702480302843915831
Sempra South American Utilities4515421586127715
Sempra Mexico5017341397137615
Sempra Renewables196187324469
Sempra Natural Gas401441426132
All other(55)(19)(32)(12)(82)(11)(76)(15)
Total$295100%$269100%$732100%$516100%
Six months ended June 30,
20152014
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E$60041%$54336%
SoCalGas6034150033
Sempra South American Utilities665896
Sempra Mexico120818913
Sempra Renewables2211228
Sempra Natural Gas282674
All other2723―
Total$1,466100%$1,513100%
June 30, 2015December 31, 2014
ASSETS
SDG&E$16,63342%$16,29641%
SoCalGas11,2092810,46126
Sempra South American Utilities3,31283,3799
Sempra Mexico3,56893,4889
Sempra Renewables1,31231,3383
Sempra Natural Gas5,535146,43616
All other89328952
Intersegment receivables(2,456)(6)(2,561)(6)
Total$40,006100%$39,732100%
INVESTMENTS IN EQUITY METHOD INVESTEES
Sempra South American Utilities$(9)$(8)
Sempra Mexico474434
Sempra Renewables868911
Sempra Natural Gas1,5101,347
All other86164
Total$2,929$2,848
(1)Revenues for reportable segments include intersegment revenues of $3 million, $17 million, $24 million and $46 million for the three months ended June 30, 2015; $5 million, $36 million, $49 million and $89 million for the six months ended June 30, 2015; $2 million, $16 million, $23 million and $80 million for the three months ended June 30, 2014; and $5 million, $34 million, $45 million and $159 million for the six months ended June 30, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)After preferred dividends.