| Segment Information |
SEGMENT INFORMATION We have six separately managed, reportable segments, as follows: | | 1. | SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. |
| | 2. | SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. |
| | 3. | Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru. |
| | 4. | Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a liquid petroleum gas pipeline and associated storage terminal, a natural gas distribution utility, electric generation facilities (including wind and solar), 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. 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 3. |
| | 5. | Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States. |
| | 6. | Sempra Natural Gas develops, owns and operates, or holds interests in, natural gas pipelines and storage facilities and a terminal for the import and export of LNG and sale of natural gas, all within the United States. In September 2016, Sempra Natural Gas sold EnergySouth, the parent company of Mobile Gas and Willmut Gas, and in May 2016, sold its 25-percent interest in Rockies Express, as we discuss in Note 3. 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. |
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, | | 2016 | | 2015 | | 2016 | | 2015 | REVENUES | | | | | | | | | | | | SDG&E | $ | 1,209 |
| 48 | % | | $ | 1,230 |
| 50 | % | | $ | 3,192 |
| 44 | % | | $ | 3,168 |
| 42 | % | SoCalGas | 686 |
| 27 |
| | 620 |
| 25 |
| | 2,336 |
| 32 |
| | 2,448 |
| 33 |
| Sempra South American Utilities | 385 |
| 15 |
| | 373 |
| 15 |
| | 1,170 |
| 16 |
| | 1,151 |
| 15 |
| Sempra Mexico | 196 |
| 8 |
| | 193 |
| 8 |
| | 481 |
| 7 |
| | 508 |
| 7 |
| Sempra Renewables | 12 |
| 1 |
| | 12 |
| — |
| | 25 |
| — |
| | 30 |
| — |
| Sempra Natural Gas | 164 |
| 6 |
| | 160 |
| 6 |
| | 384 |
| 5 |
| | 512 |
| 7 |
| Adjustments and eliminations | (1 | ) | — |
| | — |
| — |
| | (1 | ) | — |
| | (1 | ) | — |
| Intersegment revenues(1) | (116 | ) | (5 | ) | | (107 | ) | (4 | ) | | (274 | ) | (4 | ) | | (286 | ) | (4 | ) | Total | $ | 2,535 |
| 100 | % | | $ | 2,481 |
| 100 | % | | $ | 7,313 |
| 100 | % | | $ | 7,530 |
| 100 | % | INTEREST EXPENSE | | | | | | | | | | | | SDG&E | $ | 49 |
| | | $ | 51 |
| | | $ | 145 |
| | | $ | 155 |
| | SoCalGas | 25 |
| | | 23 |
| | | 71 |
| | | 61 |
| | Sempra South American Utilities | 9 |
| | | 9 |
| | | 29 |
| | | 22 |
| | Sempra Mexico | 5 |
| | | 7 |
| | | 13 |
| | | 18 |
| | Sempra Renewables | — |
| | | 1 |
| | | — |
| | | 3 |
| | Sempra Natural Gas | 11 |
| | | 13 |
| | | 33 |
| | | 57 |
| | All other | 68 |
| | | 65 |
| | | 214 |
| | | 193 |
| | Intercompany eliminations | (31 | ) | | | (26 | ) | | | (84 | ) | | | (93 | ) | | Total | $ | 136 |
| | | $ | 143 |
| | | $ | 421 |
| | | $ | 416 |
| | INTEREST INCOME | | | | | | | | | | | | SoCalGas | $ | — |
| | | $ | — |
| | | $ | — |
| | | $ | 3 |
| | Sempra South American Utilities | 5 |
| | | 5 |
| | | 15 |
| | | 14 |
| | Sempra Mexico | 2 |
| | | 1 |
| | | 5 |
| | | 5 |
| | Sempra Renewables | 1 |
| | | 2 |
| | | 2 |
| | | 3 |
| | Sempra Natural Gas | 19 |
| | | 16 |
| | | 52 |
| | | 60 |
| | All other | 1 |
| | | — |
| | | 1 |
| | | — |
| | Intercompany eliminations | (21 | ) | | | (18 | ) | | | (56 | ) | | | (62 | ) | | Total | $ | 7 |
| | | $ | 6 |
| | | $ | 19 |
| | | $ | 23 |
| | DEPRECIATION AND AMORTIZATION | | | | | | | | | | | | SDG&E | $ | 161 |
| 49 | % | | $ | 152 |
| 48 | % | | $ | 478 |
| 49 | % | | $ | 446 |
| 48 | % | SoCalGas | 121 |
| 37 |
| | 116 |
| 37 |
| | 355 |
| 37 |
| | 342 |
| 37 |
| Sempra South American Utilities | 14 |
| 4 |
| | 12 |
| 4 |
| | 41 |
| 4 |
| | 37 |
| 4 |
| Sempra Mexico | 15 |
| 5 |
| | 18 |
| 6 |
| | 47 |
| 5 |
| | 52 |
| 6 |
| Sempra Renewables | 1 |
| — |
| | 2 |
| — |
| | 4 |
| — |
| | 5 |
| — |
| Sempra Natural Gas | 12 |
| 4 |
| | 12 |
| 4 |
| | 37 |
| 4 |
| | 36 |
| 4 |
| All other | 4 |
| 1 |
| | 3 |
| 1 |
| | 8 |
| 1 |
| | 7 |
| 1 |
| Total | $ | 328 |
| 100 | % | | $ | 315 |
| 100 | % | | $ | 970 |
| 100 | % | | $ | 925 |
| 100 | % | INCOME TAX EXPENSE (BENEFIT) | | | | | | | | | | | | SDG&E | $ | 91 |
| | | $ | 75 |
| | | $ | 204 |
| | | $ | 217 |
| | SoCalGas | 21 |
| | | (20 | ) | | | 75 |
| | | 91 |
| | Sempra South American Utilities | 17 |
| | | 16 |
| | | 46 |
| | | 50 |
| | Sempra Mexico | 142 |
| | | (6 | ) | | | 170 |
| | | 7 |
| | Sempra Renewables | (7 | ) | | | (9 | ) | | | (29 | ) | | | (37 | ) | | Sempra Natural Gas | 51 |
| | | — |
| | | (77 | ) | | | 29 |
| | All other | (33 | ) | | | (41 | ) | | | (105 | ) | | | (81 | ) | | Total | $ | 282 |
| | | $ | 15 |
| | | $ | 284 |
| | | $ | 276 |
| |
| | | | | | | | | | | | | | | | | | | | | | | SEGMENT INFORMATION (CONTINUED) | | | | | | | | | | | | (Dollars in millions) | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | EQUITY EARNINGS (LOSSES) | | | | | | | | | | | | Earnings (losses) recorded before tax: | | | | | | | | | | | | Sempra Renewables | $ | 12 |
| | | $ | 8 |
| | | $ | 30 |
| | | $ | 20 |
| | Sempra Natural Gas | — |
| | | 25 |
| | | (26 | ) | | | 59 |
| | Total | $ | 12 |
| | | $ | 33 |
| | | $ | 4 |
| | | $ | 79 |
| | Earnings (losses) recorded net of tax: | | | | | | | | | | | | Sempra South American Utilities | $ | 1 |
| | | $ | (3 | ) | | | $ | 3 |
| | | $ | (4 | ) | | Sempra Mexico | 18 |
| | | 30 |
| | | 66 |
| | | 68 |
| | Total | $ | 19 |
| | | $ | 27 |
| | | $ | 69 |
| | | $ | 64 |
| | EARNINGS (LOSSES) | | | | | | | | | | | | SDG&E | $ | 183 |
|
| | $ | 170 |
| | | $ | 419 |
|
|
| | $ | 443 |
| | SoCalGas(2) | — |
|
| | (8 | ) | | | 198 |
|
|
| | 276 |
| | Sempra South American Utilities | 46 |
|
| | 43 |
| | | 127 |
|
|
| | 129 |
| | Sempra Mexico | 332 |
|
| | 63 |
| | | 407 |
|
|
| | 160 |
| | Sempra Renewables | 17 |
|
| | 15 |
| | | 43 |
|
|
| | 47 |
| | Sempra Natural Gas | 77 |
|
| | 1 |
| | | (104 | ) |
|
| | 43 |
| | All other | (33 | ) |
| | (36 | ) | | | (99 | ) |
|
| | (118 | ) | | Total | $ | 622 |
|
| | $ | 248 |
|
| | $ | 991 |
|
|
| | $ | 980 |
|
|
| EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | | | | | | | | SDG&E | | | | |
| | $ | 959 |
| 31 | % | | $ | 835 |
| 38 | % | SoCalGas | | | | |
| | 949 |
| 31 |
| | 946 |
| 42 |
| Sempra South American Utilities | | | | |
| | 133 |
| 4 |
| | 105 |
| 5 |
| Sempra Mexico | | | | |
| | 232 |
| 8 |
| | 185 |
| 8 |
| Sempra Renewables | | | | |
| | 700 |
| 23 |
| | 47 |
| 2 |
| Sempra Natural Gas | | | | |
| | 100 |
| 3 |
| | 61 |
| 3 |
| All other | | | | |
| | 14 |
| — |
| | 48 |
| 2 |
| Total | | | | | | | $ | 3,087 |
| 100 | % | | $ | 2,227 |
| 100 | % | | | | | | | | | | | | | | | | | | | | September 30, 2016 | | December 31, 2015 | ASSETS | | | | | | | | SDG&E | | | | | | | $ | 17,446 |
| 38 | % | | $ | 16,515 |
| 40 | % | SoCalGas | | | | | | | 13,148 |
| 29 |
| | 12,104 |
| 29 |
| Sempra South American Utilities | | | | | | | 3,488 |
| 8 |
| | 3,235 |
| 8 |
| Sempra Mexico | | | | | | | 6,359 |
| 14 |
| | 3,783 |
| 9 |
| Sempra Renewables | | | | | | | 2,112 |
| 5 |
| | 1,441 |
| 4 |
| Sempra Natural Gas | | | | | | | 5,377 |
| 12 |
| | 5,566 |
| 13 |
| All other | | | | | | | 640 |
| 1 |
| | 734 |
| 2 |
| Intersegment receivables | | | | | | | (3,044 | ) | (7 | ) | | (2,228 | ) | (5 | ) | Total | | | | | | | $ | 45,526 |
| 100 | % | | $ | 41,150 |
| 100 | % | EQUITY METHOD AND OTHER INVESTMENTS | | | | | | | | Sempra South American Utilities | | | | | | | $ | (1 | ) | | | $ | (4 | ) | | Sempra Mexico | | | | | | | 108 |
| | | 519 |
| | Sempra Renewables | | | | | | | 819 |
| | | 855 |
| | Sempra Natural Gas | | | | | | | 838 |
| | | 1,460 |
| | All other | | | | | | | 76 |
| | | 75 |
| | Total | | | | | | | $ | 1,840 |
| | | $ | 2,905 |
| |
| | (1) | Revenues for reportable segments include intersegment revenues of $2 million, $21 million, $26 million and $67 million for the three months ended September 30, 2016; $5 million, $56 million, $80 million and $133 million for the nine months ended September 30, 2016; $2 million, $19 million, $24 million and $62 million for the three months ended September 30, 2015; and $7 million, $55 million, $73 million and $151 million for the nine months ended September 30, 2015 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. |
| | (2) | After preferred dividends. |
|