COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Leases Statement of Financial Position

Classification of ROU assets and lease liabilities and the weighted-average remaining lease term and discount rate associated with operating and finance leases are summarized in the table below.

LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	March 31, 2019
	Sempra Energy Consolidated			SDG&E			SoCalGas
Right-of-use assets:
Operating leases:
Right-of-use assets	$	612		$	135		$	110
Finance leases:
Property, plant and equipment	1,322			1,315			7
Accumulated depreciation	(45		)	(43		)	(2		)
Property, plant and equipment, net	1,277			1,272			5
Total right-of-use assets	$	1,889		$	1,407		$	115
Lease liabilities:
Operating leases:
Other current liabilities	$	52		$	24		$	22
Deferred credits and other	455			110			88
	507			134			110
Finance leases:
Current portion of long-term debt and finance leases	21			18			3
Long-term debt and finance leases	1,256			1,254			2
	1,277			1,272			5
Total lease liabilities	$	1,784		$	1,406		$	115
Weighted-average remaining lease term (in years):
Operating leases	14			7			6
Finance leases	20			20			3
Weighted-average discount rate:
Operating leases	5.87		%	3.69		%	3.76		%
Finance leases	14.91		%	14.92		%	3.94		%

Schedule of Lease Cost

The components of lease costs were as follows:

LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(1)
(Dollars in millions)
	Three months ended March 31, 2019
	Sempra Energy Consolidated		SDG&E		SoCalGas
Operating lease costs	$	24	$	8	$	7
Finance lease costs:
Amortization of ROU assets	5		4		1
Interest on lease liabilities	47		47		—
Total finance lease costs	52		51		1
Short-term lease costs(2)	1		—		—
Variable lease costs(2)	92		90		2
Total lease costs	$	169	$	149	$	10

⁽¹⁾  Includes costs capitalized in PP&E.

⁽²⁾ 

Short-term leases with variable lease costs are recorded and presented as variable lease costs.

Schedule of Lease Cash Flow Activity [Table Text Block]

Cash paid for amounts included in the measurement of lease liabilities was as follows:

LESSEE INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Three months ended March 31, 2019
	Sempra Energy Consolidated		SDG&E		SoCalGas
Operating activities:
Cash paid for operating leases	$	39	$	8	$	7
Cash paid for finance leases	43		43		—
Financing activities:
Cash paid for finance leases	5		4		1
Increase in operating lease obligations for right-of-use assets	552		142		117
Increase in finance lease obligations for investment in PP&E	7		4		3

Schedule of Operating Lease Maturity Payments

The table below presents the future minimum lease payments under previous U.S. GAAP:

FUTURE MINIMUM LEASE PAYMENTS
(Dollars in millions)
	December 31, 2018
	Sempra Energy Consolidated							SDG&E					SoCalGas
	Build-to-suit lease		Operating leases		Capital leases			Operating leases		Capital leases			Operating leases		Capital leases
2019	$	10	$	77	$	215		$	23	$	212		$	26	$	3
2020	11		55		210			22		210			22		—
2021	11		53		211			22		211			21		—
2022	11		50		211			21		211			20		—
2023	11		42		211			17		211			16		—
Thereafter	217		253		3,196			48		3,196			28		—
Total undiscounted lease payments	$	271	$	530	4,254			$	153	4,251			$	133	3
Less: estimated executory costs					(480		)			(480		)			—
Less: imputed interest					(2,483		)			(2,483		)			—
Total future minimum lease payments					$	1,291				$	1,288				$	3

The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:

LESSEE MATURITY ANALYSIS OF LIABILITIES
(Dollars in millions)
	March 31, 2019
	Sempra Energy Consolidated						SDG&E						SoCalGas
	Operating leases			Finance leases			Operating leases			Finance leases			Operating leases			Finance leases
2019 (excluding first three months of 2019)	$	60		$	146		$	24		$	143		$	20		$	3
2020	69			190			25			189			22			1
2021	65			188			24			188			20			—
2022	59			188			21			188			17			—
2023	50			188			17			188			13			—
Thereafter	479			2,806			42			2,805			31			1
Total undiscounted lease payments	782			3,706			153			3,701			123			5
Less: imputed interest	(275		)	(2,429		)	(19		)	(2,429		)	(13		)	—
Total lease liabilities	507			1,277			134			1,272			110			5
Less: current lease liabilities	(52		)	(21		)	(24		)	(18		)	(22		)	(3		)
Long-term lease liabilities	$	455		$	1,256		$	110		$	1,254		$	88		$	2

Schedule of Finance Lease Maturity Payments

The table below presents the future minimum lease payments under previous U.S. GAAP:

FUTURE MINIMUM LEASE PAYMENTS
(Dollars in millions)
	December 31, 2018
	Sempra Energy Consolidated							SDG&E					SoCalGas
	Build-to-suit lease		Operating leases		Capital leases			Operating leases		Capital leases			Operating leases		Capital leases
2019	$	10	$	77	$	215		$	23	$	212		$	26	$	3
2020	11		55		210			22		210			22		—
2021	11		53		211			22		211			21		—
2022	11		50		211			21		211			20		—
2023	11		42		211			17		211			16		—
Thereafter	217		253		3,196			48		3,196			28		—
Total undiscounted lease payments	$	271	$	530	4,254			$	153	4,251			$	133	3
Less: estimated executory costs					(480		)			(480		)			—
Less: imputed interest					(2,483		)			(2,483		)			—
Total future minimum lease payments					$	1,291				$	1,288				$	3

The table below presents the maturity analysis of our lease liabilities and reconciliation to the present value of lease liabilities:

LESSEE MATURITY ANALYSIS OF LIABILITIES
(Dollars in millions)
	March 31, 2019
	Sempra Energy Consolidated						SDG&E						SoCalGas
	Operating leases			Finance leases			Operating leases			Finance leases			Operating leases			Finance leases
2019 (excluding first three months of 2019)	$	60		$	146		$	24		$	143		$	20		$	3
2020	69			190			25			189			22			1
2021	65			188			24			188			20			—
2022	59			188			21			188			17			—
2023	50			188			17			188			13			—
Thereafter	479			2,806			42			2,805			31			1
Total undiscounted lease payments	782			3,706			153			3,701			123			5
Less: imputed interest	(275		)	(2,429		)	(19		)	(2,429		)	(13		)	—
Total lease liabilities	507			1,277			134			1,272			110			5
Less: current lease liabilities	(52		)	(21		)	(24		)	(18		)	(22		)	(3		)
Long-term lease liabilities	$	455		$	1,256		$	110		$	1,254		$	88		$	2

Schedule of Operating Lease Payments to Be Received

We provide information below for leases for which we are the lessor.

LESSOR INFORMATION – SEMPRA ENERGY
(Dollars in millions)
	March 31, 2019
Assets subject to operating leases:
Assets held for sale	$	148
Property, plant and equipment(1)	$	1,026
Accumulated depreciation	(151		)
Property, plant and equipment, net	$	875
Maturity analysis of operating lease payments:
2019 (excluding first three months of 2019)	$	151
2020	200
2021	200
2022	200
2023	200
Thereafter	2,619
Total undiscounted cash flows	$	3,570

⁽¹⁾   Included in Machinery and Equipment — Pipelines and Storage within the major functional categories of PP&E.

LESSOR INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY
(Dollars in millions)
	Three months ended March 31,
	2019		2018
Minimum lease payments	$	50	$	49
Variable lease payments	4		13
Total revenues from operating leases	$	54	$	62
Depreciation expense	$	9	$	17