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. In February 2016, management approved a plan to market and sell the TdM natural gas-fired power plant located in Mexicali, Baja California, as we discuss in Note 5.

Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the U.S.

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.

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.

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 activities of parent organizations.



SEGMENT INFORMATION
(Dollars in millions)
	Three months ended March 31,
	2018			2017
REVENUES
SDG&E	$	1,055		$	1,057
SoCalGas	1,126			1,241
Sempra South American Utilities	426			412
Sempra Mexico	308			264
Sempra Renewables	25			22
Sempra LNG & Midstream	104			132
Adjustments and eliminations	(1		)	—
Intersegment revenues⁽¹⁾	(81		)	(97		)
Total	$	2,962		$	3,031
INTEREST EXPENSE
SDG&E	$	52		$	49
SoCalGas	27			25
Sempra South American Utilities	10			9
Sempra Mexico	30			32
Sempra Renewables	5			4
Sempra LNG & Midstream	8			11
All other	112			68
Intercompany eliminations	(28		)	(29		)
Total	$	216		$	169
INTEREST INCOME
SDG&E	$	1		$	—
Sempra South American Utilities	6			5
Sempra Mexico	15			2
Sempra Renewables	2			1
Sempra LNG & Midstream	13			17
All other	14			—
Intercompany eliminations	(18		)	(19		)
Total	$	33		$	6
DEPRECIATION AND AMORTIZATION
SDG&E	$	166		$	163
SoCalGas	135			126
Sempra South American Utilities	14			13
Sempra Mexico	43			36
Sempra Renewables	13			9
Sempra LNG & Midstream	11			10
All other	4			3
Total	$	386		$	360
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	56		$	90
SoCalGas	59			98
Sempra South American Utilities	20			19
Sempra Mexico	155			142
Sempra Renewables	(7		)	(11		)
Sempra LNG & Midstream	12			1
All other	(6		)	(44		)
Total	$	289		$	295



SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Three months ended March 31,
	2018			2017
EQUITY EARNINGS (LOSSES)
Equity earnings before income tax:
Sempra Renewables	$	5		$	2
Sempra LNG & Midstream	—			1
	5			3
Equity earnings (losses) net of income tax:
Sempra Texas Utility	15			—
Sempra South American Utilities	1			1
Sempra Mexico	(41		)	(9		)
	(25		)	(8		)
Total	$	(20	)	$	(5	)
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
SDG&E	$	170		$	155
SoCalGas⁽²⁾	225			203
Sempra Texas Utility	15			—
Sempra South American Utilities	46			47
Sempra Mexico	20			48
Sempra Renewables	21			11
Sempra LNG & Midstream	(16		)	1
All other⁽²⁾	(134		)	(24		)
Total	$	347		$	441
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E	$	475		$	418
SoCalGas	403			357
Sempra South American Utilities	56			43
Sempra Mexico	59			94
Sempra Renewables	31			69
Sempra LNG & Midstream	6			3
All other	5			8
Total	$	1,035		$	992

	March 31, 2018			December 31, 2017
ASSETS
SDG&E	$	18,017		$	17,844
SoCalGas	14,462			14,159
Sempra Texas Utility	9,176			—
Sempra South American Utilities	4,154			4,060
Sempra Mexico	8,798			8,554
Sempra Renewables	2,764			2,898
Sempra LNG & Midstream	4,904			4,872
All other	964			915
Intersegment receivables	(2,754		)	(2,848		)
Total	$	60,485		$	50,454
EQUITY METHOD AND OTHER INVESTMENTS
Sempra Texas Utility	$	9,176		$	—
Sempra South American Utilities	17			16
Sempra Mexico	613			624
Sempra Renewables	798			813
Sempra LNG & Midstream	1,085			997
All other	77			77
Total	$	11,766		$	2,527

Revenues for reportable segments include intersegment revenues of $1 million, $17 million, $29 million and $34 million for the three months ended March 31, 2018 and $1 million, $18 million, $25 million and $53 million for the three months ended March 31, 2017 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.