INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule Of Equity Method And Other Investments

We provide the carrying values of our investments and earnings (losses) on these investments in the following tables.



EQUITY METHOD AND OTHER INVESTMENT BALANCES
(Dollars in millions)
	Percent ownership
	December 31,				December 31,
	2018		2017		2018		2017
Sempra Texas Utility:
Oncor Holdings⁽¹⁾	100	%	—	%	$	9,652	$	—
Sempra South American Utilities:
Eletrans	50		50		$	17	$	16
Sempra Mexico:
Energía Sierra Juárez⁽²⁾	50		50		43		39
IMG⁽³⁾	40		40		328		221
TAG⁽⁴⁾	50		50		376		364
Sempra Renewables:
Wind:
Auwahi Wind	50		50		38		42
Broken Bow 2 Wind	—		50		—		32
Cedar Creek 2 Wind	50		50		69		72
Flat Ridge 2 Wind⁽⁵⁾	50		50		82		255
Fowler Ridge 2 Wind	50		50		45		44
Mehoopany Wind⁽⁶⁾	50		50		57		89
Solar:
California solar partnership	—		50		—		107
Copper Mountain Solar 2	—		50		—		35
Copper Mountain Solar 3	—		50		—		44
Mesquite Solar 1	—		50		—		81
Other					—		12
Sempra LNG & Midstream:
Cameron LNG JV⁽⁷⁾	50.2		50.2		1,271		997
Parent and other:
RBS Sempra Commodities	49		49		—		67
Total equity method investments					2,326		2,517
Other					11		10
Total other investments					$	2,337	$	2,527


⁽¹⁾	The carrying value of our equity method investment is $2,814 million higher than the underlying equity in the net assets of the investee due to $2,868 million of equity method goodwill and $69 million in basis differences in AOCI, offset by $123 million due to a tax sharing liability to TTI under the tax sharing agreement.


⁽²⁾	The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee due to the remeasurement of our retained investment to fair value in 2014.


⁽³⁾	The carrying value of our equity method investment is $5 million higher than the underlying equity in the net assets of the investee due to guarantees, which we discuss below.


⁽⁴⁾	The carrying value of our equity method investment is $130 million higher than the underlying equity in the net assets of the investee due to equity method goodwill.


⁽⁵⁾	The carrying value of our equity method investment is $169 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.


⁽⁶⁾	The carrying value of our equity method investment is $31 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.


⁽⁷⁾	The carrying value of our equity method investment is $284 million and $237 million higher than the underlying equity in the net assets of the investee at December 31, 2018 and 2017, respectively, primarily due to guarantees, which we discuss below, and interest capitalized on the investment, as the JV has not commenced its planned principal operations.



EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Earnings (losses) recorded before income tax⁽¹⁾:
Sempra Renewables:
Wind:
Auwahi Wind	$	3		$	5		$	4
Broken Bow 2 Wind	(2		)	(2		)	(2		)
Cedar Creek 2 Wind	(1		)	(2		)	(2		)
Flat Ridge 2 Wind⁽²⁾	(178		)	(13		)	(7		)
Fowler Ridge 2 Wind	3			4			4
Mehoopany Wind⁽²⁾	(30		)	(1		)	—
Solar:
California solar partnership	8			7			7
Copper Mountain Solar 2	5			5			6
Copper Mountain Solar 3	8			8			8
Mesquite Solar 1	18			18			17
Other	(3		)	—			(1		)
Sempra LNG & Midstream:
Cameron LNG JV	—			5			(2		)
Rockies Express Pipeline	—			—			(26		)
Parent and other:
RBS Sempra Commodities⁽²⁾	(67		)	—			—
	(236		)	34			6
Earnings (losses) recorded net of income tax:
Sempra Texas Utility:
Oncor Holdings	371			—			—
Sempra South American Utilities:
Eletrans	1			4			3
Sempra Mexico:
DEN	—			(13		)	5
Energía Sierra Juárez	2			—			6
IEnova Pipelines	—			—			64
IMG	29			45			—
TAG	9			6			—
	412			42			78
Total	$	176		$	76		$	84


⁽¹⁾	We provide our ETR calculation in Note 8.


⁽²⁾	Losses from equity method investment in 2018 include an other-than-temporary impairment charge, which we discuss below.

Schedule of Summarized Financial Information

We present summarized financial information below, aggregated for all other equity method investments (excluding Oncor Holdings) for the periods in which we were invested in the entities. The amounts below represent the results of operations and aggregate financial position of 100 percent of each of Sempra Energy’s other equity method investments.



SUMMARIZED FINANCIAL INFORMATION – OTHER EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2018⁽¹⁾			2017⁽²⁾			2016⁽³⁾
Gross revenues	$	727		$	846		$	1,079
Operating expense	(614		)	(590		)	(726		)
Income from operations	113			256			353
Interest expense	(330		)	(217		)	(127		)
Net (loss) income/(Losses) earnings⁽⁴⁾	(33		)	116			252



	At December 31,
	2018⁽¹⁾		2017⁽²⁾
Current assets	$	625	$	974
Noncurrent assets	14,803		14,087
Current liabilities	813		797
Noncurrent liabilities	10,226		9,809


⁽¹⁾	On December 13, 2018, Sempra Renewables sold all its operating solar assets, including its solar equity method investments, and its 50-percent interest in the Broken Bow 2 wind power generation facility to a subsidiary of Con Ed. As of December 13, 2018, the solar equity method investments and Broken Bow 2 are no longer equity method investments.


⁽²⁾	On November 15, 2017, IEnova completed the asset acquisition of PEMEX’s 50-percent interest in DEN, increasing its ownership percentage to 100 percent. As of November 15, 2017, DEN is no longer an equity method investment.


⁽³⁾	On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in IEnova Pipelines, increasing its ownership percentage to 100 percent, and on May 9, 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express. As of the respective transaction dates, IEnova Pipelines and Rockies Express are no longer equity method investments.

⁽⁴⁾

Except for our investments in South America and Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships.We provide summarized income statement and balance sheet information for Oncor Holdings in the following table.



SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS
(Dollars in millions)
	March 9 - December 31, 2018
Gross revenues	$	3,347
Operating expense	(2,434		)
Income from operations	913
Interest expense	(285		)
Income tax expense	(119		)
Net income	455
Noncontrolling interest held by TTI	(94		)
Earnings attributable to Sempra Energy⁽¹⁾	360

	At December 31, 2018
Current assets	$	772
Noncurrent assets	21,980
Current liabilities	2,217
Noncurrent liabilities	11,756

⁽¹⁾

Earnings at Oncor Holdings differ from earnings at the Sempra Texas Utility segment due to amortization of a tax sharing liability associated with a tax sharing arrangement and basis differences in AOCI.