XML 59 R34.htm IDEA: XBRL DOCUMENT

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 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)
	June 30, 2019
	Sempra Energy Consolidated			SDG&E			SoCalGas
Right-of-use assets:
Operating leases:
Right-of-use assets	$	600		$	132		$	105

Finance leases:
Property, plant and equipment	1,331			1,317			14
Accumulated depreciation	(51		)	(47		)	(4		)
Property, plant and equipment, net	1,280			1,270			10
Total right-of-use assets	$	1,880		$	1,402		$	115

Lease liabilities:
Operating leases:
Other current liabilities	$	49		$	22		$	21
Deferred credits and other	450			108			84
	499			130			105
Finance leases:
Current portion of long-term debt and finance leases	23			19			4
Long-term debt and finance leases	1,257			1,251			6
	1,280			1,270			10
Total lease liabilities	$	1,779		$	1,400		$	115

Weighted-average remaining lease term (in years):
Operating leases	14			7			6
Finance leases	20			20			5
Weighted-average discount rate:
Operating leases	5.90		%	3.69		%	3.75		%
Finance leases	14.86		%	14.90		%	3.68		%

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 June 30, 2019						Six months ended June 30, 2019
	Sempra Energy Consolidated		SDG&E		SoCalGas		Sempra Energy Consolidated		SDG&E		SoCalGas
Operating lease costs	$	25	$	9	$	7	$	49	$	17	$	14

Finance lease costs:
Amortization of ROU assets	6		5		1		11		9		2
Interest on lease liabilities	47		47		—		94		94		—
Total finance lease costs	53		52		1		105		103		2

Short-term lease costs⁽²⁾	1		—		—		2		—		—
Variable lease costs⁽²⁾	148		144		4		240		234		6
Total lease costs	$	227	$	205	$	12	$	396	$	354	$	22


⁽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)
	Six months ended June 30, 2019
	Sempra Energy Consolidated		SDG&E		SoCalGas
Operating activities:
Cash paid for operating leases	$	59	$	17	$	14
Cash paid for finance leases	87		87		—
Financing activities:
Cash paid for finance leases	11		9		2
Increase in operating lease obligations for right-of-use assets	559		146		117
Increase in finance lease obligations for investment in PP&E	16		7		9

Schedule of Operating Lease Maturity Payments

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)
	June 30, 2019
	Sempra Energy Consolidated						SDG&E						SoCalGas
	Operating leases			Finance leases			Operating leases			Finance leases			Operating leases			Finance leases
2019 (excluding first six months of 2019)	$	39		$	98		$	15		$	95		$	12		$	3
2020	70			192			26			189			23			3
2021	67			190			26			189			20			1
2022	60			190			21			189			17			1
2023	51			190			17			189			13			1
Thereafter	481			2,807			43			2,805			32			2
Total undiscounted lease payments	768			3,667			148			3,656			117			11
Less: imputed interest	(269		)	(2,387		)	(18		)	(2,386		)	(12		)	(1		)
Total lease liabilities	499			1,280			130			1,270			105			10
Less: current lease liabilities	(49		)	(23		)	(22		)	(19		)	(21		)	(4		)
Long-term lease liabilities	$	450		$	1,257		$	108		$	1,251		$	84		$	6

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

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)
	June 30, 2019
	Sempra Energy Consolidated						SDG&E						SoCalGas
	Operating leases			Finance leases			Operating leases			Finance leases			Operating leases			Finance leases
2019 (excluding first six months of 2019)	$	39		$	98		$	15		$	95		$	12		$	3
2020	70			192			26			189			23			3
2021	67			190			26			189			20			1
2022	60			190			21			189			17			1
2023	51			190			17			189			13			1
Thereafter	481			2,807			43			2,805			32			2
Total undiscounted lease payments	768			3,667			148			3,656			117			11
Less: imputed interest	(269		)	(2,387		)	(18		)	(2,386		)	(12		)	(1		)
Total lease liabilities	499			1,280			130			1,270			105			10
Less: current lease liabilities	(49		)	(23		)	(22		)	(19		)	(21		)	(4		)
Long-term lease liabilities	$	450		$	1,257		$	108		$	1,251		$	84		$	6

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)
	June 30, 2019
Assets subject to operating leases:
Property, plant and equipment⁽¹⁾	$	1,033
Accumulated depreciation	(160		)
Property, plant and equipment, net	$	873
Maturity analysis of operating lease payments:
2019 (excluding first six months of 2019)	$	106
2020	200
2021	200
2022	200
2023	200
Thereafter	2,615
Total undiscounted cash flows	$	3,521

⁽¹⁾

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

Schedule of Operating Lease Payments Received, Lease Income [Table Text Block]



LESSOR INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Minimum lease payments	$	49	$	47	$	99	$	96
Variable lease payments	2		24		6		37
Total revenues from operating leases	$	51	$	71	$	105	$	133

Depreciation expense	$	10	$	19	$	19	$	36