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SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables)
 12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets to the sum of such amounts reported on the Consolidated Statements of Cash Flows.
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
 
 
 
(Dollars in millions)
 
At December 31,
 
2019
 
2018
Sempra Energy Consolidated:
 
 
 
Cash and cash equivalents
$
108

 
$
102

Restricted cash, current
31

 
35

Restricted cash, noncurrent
3

 
21

Cash, cash equivalents and restricted cash in discontinued operations
75

 
88

Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows
$
217

 
$
246

SDG&E:
 

 
 

Cash and cash equivalents
$
10

 
$
8

Restricted cash, current
—

 
11

Restricted cash, noncurrent
—

 
18

Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows
$
10

 
$
37
Schedule Of Receivables Collection Allowances
We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. We show the changes in these allowances in the table below:
COLLECTION ALLOWANCES
(Dollars in millions)
 
Years ended December 31,
 
2019
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
Allowances for collection of receivables at January 1
$
21

 
$
25

 
$
29

Provisions for uncollectible accounts
22

 
10

 
12

Write-offs of uncollectible accounts
(14
)
 
(14
)
 
(16
)
Allowances for collection of receivables at December 31
$
29

 
$
21

 
$
25

SDG&E:
 

 
 

 
 

Allowances for collection of receivables at January 1
$
11

 
$
9

 
$
8

Provisions for uncollectible accounts
10

 
9

 
8

Write-offs of uncollectible accounts
(7
)
 
(7
)
 
(7
)
Allowances for collection of receivables at December 31
$
14

 
$
11

 
$
9

SoCalGas:
 

 
 

 
 

Allowances for collection of receivables at January 1
$
10

 
$
16

 
$
21

Provisions for uncollectible accounts
12

 
1

 
4

Write-offs of uncollectible accounts
(7
)
 
(7
)
 
(9
)
Allowances for collection of receivables at December 31
$
15

 
$
10

 
$
16
Schedule of Inventory
The components of inventories are as follows:
INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
 
Natural gas
 
LNG
 
Materials and supplies
 
Total
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Sempra Energy Consolidated
$
110

 
$
95

 
$
9

 
$
4

 
$
158

 
$
159

 
$
277

 
$
258

SDG&E
1

 
—

 
—

 
—

 
93

 
102

 
94

 
102

SoCalGas
90

 
92

 
—

 
—

 
46

 
42

 
136

 
134
Schedule of Property, Plant and Equipment
DEPRECIATION EXPENSE
(Dollars in millions)
 
Years ended December 31,
 
2019
 
2018
 
2017
Sempra Energy Consolidated
$
1,551

 
$
1,470

 
$
1,368

SDG&E
757

 
686

 
621

SoCalGas
598

 
553

 
514


PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
 
(Dollars in millions)
 
 
December 31,
 
Depreciation rates for
years ended
December 31,
 
 
2019
 
2018
 
2019
 
2018
 
2017
 
SDG&E:
 
 
 
 
 
 
 
 
 
 
Natural gas operations
$
2,534

 
$
2,382

 
2.47
%
 
2.44
%
 
2.40
%
 
Electric distribution
7,985

 
7,462

 
3.94

 
3.91

 
3.92

 
Electric transmission(1)
6,577

 
6,222

 
2.79

 
2.76

 
2.71

 
Electric generation(2)
2,415

 
2,967

 
4.50

 
4.12

 
4.05

 
Other electric(3)
1,492

 
1,408

 
6.61

 
6.43

 
5.54

 
Construction work in progress(1)
1,501

 
1,221

 
NA

 
NA

 
NA

 
Total SDG&E
22,504

 
21,662

 
 

 
 

 
 

 
SoCalGas:
 

 
 

 
 

 
 

 
 

 
Natural gas operations(4)
18,370

 
17,268

 
3.60

 
3.60

 
3.63

 
Other non-utility
34

 
34

 
5.08

 
5.39

 
5.28

 
Construction work in progress
958

 
836

 
NA

 
NA

 
NA

 
Total SoCalGas
19,362

 
18,138

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Other operating units and parent(5):
 

 
 

 
Estimated useful lives
Weighted-average useful life
Land and land rights
278

 
326

 
16 to 50 years(6)
31
Machinery and equipment:
 

 
 

 
 
 


 
 
 
Generating plants
1,154

 
869

 
15 to 20 years
18
LNG terminals
1,134

 
1,134

 
43 years
43
Pipelines and storage
3,596

 
3,413

 
5 to 50 years
41
Other
180

 
183

 
1 to 50 years
6
Construction work in progress
895

 
451

 
NA
NA
Other(7)
226

 
439

 
3 to 50 years
15
 
7,463

 
6,815

 
 
 
 

 
 
 
Total Sempra Energy Consolidated
$
49,329

 
$
46,615

 
 
 
 

 
 
 
(1) 
At December 31, 2019, includes $484 million in electric transmission assets and $13 million in construction work in progress related to SDG&E’s 90% interest in the Southwest Powerlink transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Consolidated Statements of Operations.
(2) 
Includes capital lease assets of $1.3 billion at December 31, 2018.
(3) 
Includes capital lease assets of $13 million at December 31, 2018.
(4) 
Includes capital lease assets of $40 million at December 31, 2018.
(5) 
Includes $178 million and $154 million at December 31, 2019 and 2018, respectively, of utility plant, primarily pipelines and other distribution assets at Ecogas.
(6) 
Estimated useful lives are for land rights.
(7) 
Includes capital lease assets of $136 million and associated leasehold improvements of $24 million at December 31, 2018 related to our corporate headquarters build-to-suit arrangement, which is accounted for as a ROU asset as of January 1, 2019 upon adoption of the lease standard.

ACCUMULATED DEPRECIATION
(Dollars in millions)
 
December 31,
 
2019
 
2018
SDG&E:
 
 
 
Accumulated depreciation:
 
 
 
Electric(1)
$
4,705

 
$
4,558

Natural gas
832

 
794

Total SDG&E
5,537

 
5,352

SoCalGas:
 

 
 

Accumulated depreciation of natural gas utility plant in service(2)
6,023

 
5,685

Accumulated depreciation – other non-utility
15

 
14

Total SoCalGas
6,038

 
5,699

Other operating units and parent and other:
 

 
 

Accumulated depreciation – other(3)
1,302

 
1,125

Total Sempra Energy Consolidated
$
12,877

 
$
12,176

(1) 
Includes accumulated depreciation for capital lease assets of $48 million at December 31, 2018. Includes $263 million at December 31, 2019 related to SDG&E’s 90% interest in the Southwest Powerlink transmission line, jointly owned by SDG&E and other utilities.
(2) 
Includes accumulated depreciation for capital lease assets of $37 million at December 31, 2018.
(3) 
Includes accumulated depreciation for capital lease assets of $10 million and associated leasehold improvements of $3 million at December 31, 2018 related to our corporate headquarters’ build-to-suit arrangement, which is accounted for as a ROU asset as of January 1, 2019. Includes $49 million and $43 million at December 31, 2019 and 2018, respectively, of accumulated depreciation for utility plant at Ecogas.
Schedule Of Capitalized Financing Costs
The table below summarizes capitalized interest and AFUDC.
CAPITALIZED FINANCING COSTS
(Dollars in millions)
 
Years ended December 31,
 
2019
 
2018
 
2017
Sempra Energy Consolidated
$
183

 
$
193

 
$
247

SDG&E
75

 
82

 
85

SoCalGas
47

 
48

 
60
Schedule Of Other Intangible Assets
Other Intangible Assets included on the Sempra Energy Consolidated Balance Sheets are as follows:
OTHER INTANGIBLE ASSETS
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
Amortization period
(years)
 
December 31,
 
 
2019
 
2018
Renewable energy transmission and consumption permit
19
 
$
154

 
$
154

O&M agreement
23
 
66

 
66

Other
10 years to indefinite
 
30

 
30

 
 
 
250

 
250

Less accumulated amortization:
 
 
 

 
 

Renewable energy transmission and consumption permit
 
 
(24
)
 
(16
)
O&M agreement
 
 
(6
)
 
(3
)
Other
 
 
(7
)
 
(7
)
 
 
 
(37
)
 
(26
)
 
 
 
$
213

 
$
224
Schedule Of Variable Interest Entities
The following table summarizes the deconsolidation:
DECONSOLIDATION OF OTAY MESA VIE
 
(Dollars in millions)
 
 
 August 23, 2019
Cash and cash equivalents
$
8

Accounts receivable, net
11

Inventories
4

Total current assets
23

Property, plant and equipment, net
272

Other noncurrent assets
27

Total assets
$
322

 
 
Accounts payable
$
10

Other current liabilities
2

Total current liabilities
12

 
 
Asset retirement obligations
2

Deferred credits and other
27

Total deferred credits and other liabilities
29

 
 
Noncontrolling interest
281

Total liabilities and equity
$
322
Schedule Of Asset Retirement Obligations
The changes in ARO are as follows:
CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
 
Sempra Energy
Consolidated
 
SDG&E
 
SoCalGas
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Balance as of January 1(1)
$
2,972

 
$
2,876

 
$
874

 
$
839

 
$
2,063

 
$
1,953

Accretion expense
123

 
121

 
39

 
39

 
81

 
78

Liabilities incurred
2

 
7

 
—

 
—

 
—

 
—

Deconsolidation and reclassification(2)
(2
)
 
(61
)
 
(2
)
 
—

 
—

 
—

Payments
(46
)
 
(42
)
 
(44
)
 
(39
)
 
(2
)
 
(3
)
Revisions
34

 
71

 
(1
)
 
35

 
35

 
35

Balance at December 31(1)
$
3,083

 
$
2,972

 
$
866

 
$
874

 
$
2,177

 
$
2,063

(1) 
Current portion of the ARO for Sempra Energy Consolidated is included in Other Current Liabilities on the Consolidated Balance Sheets.
(2) 
In 2018, we reclassified $6 million at Sempra Renewables and $8 million at Sempra LNG to liabilities held for sale, and $5 million related to TdM from liabilities held for sale, and deconsolidated $52 million at Sempra Renewables, as we discuss in Note 5. Liabilities held for sale are included in Other Current Liabilities on the Sempra Energy Consolidated Balance Sheets.
Schedule Of Changes In Accumulated Other Comprehensive Income By Component The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI:
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
(Dollars in millions)
 
Foreign
currency
translation
adjustments
 
Financial
instruments
 
Pension
and other
postretirement
benefits
 
Total
accumulated other
comprehensive income (loss)
Sempra Energy Consolidated(2):
 
 
 
 
 
 
 
Balance as of December 31, 2016
$
(527
)
 
$
(125
)
 
$
(96
)
 
$
(748
)
 
 
 
 
 
 
 
 
OCI before reclassifications
107

 
(4
)
 
—

 
103

Amounts reclassified from AOCI
—

 
7

 
12

 
19

Net OCI
107

 
3

 
12

 
122

Balance as of December 31, 2017
(420
)
 
(122
)
 
(84
)
 
(626
)
Cumulative-effect adjustment from change in accounting principle
—

 
(3
)
 
—

 
(3
)
 
 
 
 
 
 
 
 
OCI before reclassifications
(144
)
 
40

 
(52
)
 
(156
)
Amounts reclassified from AOCI
—

 
3

 
18

 
21

Net OCI
(144
)
 
43

 
(34
)
 
(135
)
Balance as of December 31, 2018
(564
)
 
(82
)
 
(118
)
 
(764
)
Cumulative-effect adjustment from change in accounting principle
—

 
(25
)
 
(17
)
 
(42
)
 
 
 
 
 
 
 
 
OCI before reclassifications(3)
(43
)
 
(116
)
 
(18
)
 
(177
)
Amounts reclassified from AOCI(3)
—

 
8

 
36

 
44

Net OCI
(43
)
 
(108
)
 
18

 
(133
)
Balance as of December 31, 2019
$
(607
)
 
$
(215
)

$
(117
)

$
(939
)
SDG&E:
 
 
 
 
 
 
 
Balance as of December 31, 2016


 


 
$
(8
)
 
$
(8
)
 
 
 
 
 
 
 
 
OCI before reclassifications


 


 
(1
)
 
(1
)
Amounts reclassified from AOCI


 


 
1

 
1

Net OCI


 


 
—

 
—

Balance as of December 31, 2017


 


 
(8
)
 
(8
)
 
 
 
 
 
 
 
 
OCI before reclassifications


 


 
(6
)
 
(6
)
Amounts reclassified from AOCI


 


 
4

 
4

Net OCI


 


 
(2
)
 
(2
)
Balance as of December 31, 2018


 


 
(10
)
 
(10
)
Cumulative-effect adjustment from change in accounting principle
 
 
 
 
(2
)
 
(2
)
 
 
 
 
 
 
 
 
OCI before reclassifications


 


 
(5
)
 
(5
)
Amounts reclassified from AOCI


 


 
1

 
1

Net OCI


 


 
(4
)
 
(4
)
Balance as of December 31, 2019


 


 
$
(16
)
 
$
(16
)
SoCalGas:
 
 
 
 
 
 
 
Balance as of December 31, 2016


 
$
(13
)
 
$
(9
)
 
$
(22
)
 
 
 
 
 
 
 
 
Amounts reclassified from AOCI
 
 
—

 
1

 
1

Net OCI


 
—

 
1

 
1

Balance as of December 31, 2017


 
(13
)
 
(8
)
 
(21
)
 
 
 
 
 
 
 
 
OCI before reclassifications


 
—

 
(1
)
 
(1
)
Amounts reclassified from AOCI
 
 
1

 
1

 
2

Net OCI


 
1

 
—

 
1

Balance as of December 31, 2018


 
(12
)
 
(8
)
 
(20
)
Cumulative-effect adjustment from change in accounting principle
 
 
(2
)
 
(2
)
 
(4
)
 
 
 
 
 
 
 
 
OCI before reclassifications(3)


 
—

 
(4
)
 
(4
)
Amounts reclassified from AOCI(3)


 
1

 
4

 
5

Net OCI


 
1

 
—

 
1

Balance as of December 31, 2019


 
$
(13
)
 
$
(10
)
 
$
(23
)
(1) 
All amounts are net of income tax, if subject to tax, and exclude NCI.
(2) 
Includes discontinued operations.
(3) 
Pension and Other Postretirement Benefits and Total AOCI include a $4 million transfer of liabilities from SoCalGas to Sempra Energy related to the nonqualified pension plan.
Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated
other comprehensive income (loss) components
Amounts reclassified from accumulated
other comprehensive income (loss)
 
Affected line item on
Consolidated Statements of Operations
 
Years ended December 31,
 
 
 
2019
 
2018
 
2017
 
 
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Financial instruments:
 

 
 

 
 

 
 
Interest rate and foreign exchange instruments(1)
$
3

 
$
—

 
$
(4
)
 
Interest Expense
 
(9
)
 
(2
)
 
—

 
Other Income, Net
Interest rate instruments
10

 
9

 
—

 
Gain on Sale of Assets
Interest rate and foreign exchange instruments
5

 
7

 
20

 
Equity Earnings
Foreign exchange instruments
2

 
(1
)
 
(2
)
 
Revenues: Energy-Related Businesses
Commodity contracts not subject to rate recovery
—

 
—

 
9

 
Revenues: Energy-Related Businesses
Total before income tax
11

 
13

 
23

 
 
 
(2
)
 
(4
)
 
(6
)
 
Income Tax (Expense) Benefit
Net of income tax
9

 
9

 
17

 
 
 
(1
)
 
(6
)
 
(10
)
 
Earnings Attributable to Noncontrolling
Interests
 
$
8

 
$
3


$
7

 
 
Pension and other postretirement benefits(2):
 

 
 

 
 
 
 
Amortization of actuarial loss
$
12

 
$
11

 
$
10

 
Other Income, Net
Amortization of actuarial loss
1

 
1

 
—

 
Income (Loss) from Discontinued Operations,
Net of Income Tax
Amortization of prior service cost
3

 
2

 
1

 
Other Income, Net
Settlement charges
28

 
12

 
8

 
Other Income, Net
Total before income tax
44

 
26

 
19

 
 
 
(12
)
 
(8
)
 
(7
)
 
Income Tax (Expense) Benefit
Net of income tax
$
32

 
$
18


$
12

 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
40

 
$
21

 
$
19


 
SDG&E:
 

 
 

 
 

 
 
Financial instruments:
 

 
 

 
 

 
 
Interest rate instruments(1)
$
3

 
$
7

 
$
13

 
Interest Expense
 
(3
)
 
(7
)
 
(13
)
 
Earnings Attributable to Noncontrolling
Interest
 
$
—

 
$
—


$
—

 
 
Pension and other postretirement benefits(2):
 

 
 

 
 

 
 
Amortization of actuarial loss
$
—

 
$
1

 
$
1

 
Other Income, Net
Amortization of prior service cost
1

 
—

 
—

 
Other Income, Net
Settlement charges
—

 
4

 
—

 
Other Income, Net
Total before income tax
1

 
5

 
1

 
 
 
—

 
(1
)
 
—

 
Income Tax Expense
Net of income tax
$
1

 
$
4


$
1

 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
1

 
$
4


$
1


 
SoCalGas:
 

 
 

 
 

 
 
Financial instruments:
 

 
 

 
 

 
 
Interest rate instruments
$
1

 
$
1

 
$
—

 
Interest Expense
Pension and other postretirement benefits(2):
 

 
 

 
 

 
 
Amortization of actuarial loss
$
1

 
$
—

 
$
—

 
Other Income, Net
Amortization of prior service cost
—

 
1

 
1

 
Other Income, Net
Total before income tax
1

 
1

 
1

 
 
 
(1
)
 
—

 
—

 
Income Tax Expense
Net of income tax
$
—

 
$
1


$
1

 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
1

 
$
2


$
1


 
(1) 
Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.
(2) 
Amounts are included in the computation of net periodic benefit cost (see “Net Periodic Benefit Cost” in Note 9).
Schedule Of Noncontrolling Interests
The following table provides information about noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Consolidated Balance Sheets:
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
 
Percent ownership held by noncontrolling interests
 
 Equity (deficit) held by
noncontrolling interests
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
SDG&E:
 
 
 
 
 
 
 
Otay Mesa VIE
—
%
100
%
$
—

 
$
100

Sempra Mexico:
 
 
 
 
 

 
 

IEnova
33.4
 
33.5
 
1,608

 
1,592

IEnova subsidiaries(1)
10.0 - 46.3
 
10.0 - 49.0
 
15

 
13

Sempra Renewables:
 
 
 
 
 
 
 
Tax equity arrangements – wind(2)
               NA
 
               NA
 
—

 
158

PXiSE Energy Solutions, LLC(3)
               NA
 
11.1
 
—

 
1

Sempra LNG:
 
 
 
 
 

 
 

Bay Gas
—
 
9.1
 
—

 
18

Liberty Gas Storage, LLC
24.6
 
24.6
 
(13
)
 
(12
)
ECA LNG JV
16.7
 
—
 
12

 
—

Parent and other:
 
 
 
 
 
 
 
PXiSE Energy Solutions, LLC(3)
20.0
 
               NA
 
1

 
—

Discontinued Operations:
 
 
 
 
 
 
 
Chilquinta Energía subsidiaries(1)
19.7 - 43.4
 
19.7 - 43.4
 
23

 
23

Luz del Sur
16.4
 
16.4
 
205

 
193

Tecsur
9.8
 
9.8
 
5

 
4

Total Sempra Energy
 
 
 
 
$
1,856

 
$
2,090

(1) 
IEnova and Chilquinta Energía have subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
(2) 
Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.
(3) 
In April 2019, PXiSE Energy Solutions, LLC was subsumed into Parent and other.
Schedule of Related Party Transactions
We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table.
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
 
December 31,
 
2019
 
2018
Sempra Energy Consolidated:
 
 
 
Total due from various unconsolidated affiliates – current
$
32

 
$
37

 
 
 
 
Sempra Mexico(1):
 

 
 

IMG JV – Note due March 15, 2022(2)
$
742

 
$
641

Energía Sierra Juárez – Note(3)
—

 
3

Total due from unconsolidated affiliates – noncurrent
$
742

 
$
644

 
 
 
 
Total due to various unconsolidated affiliates – current
$
(5
)
 
$
(10
)
 
 
 
 
Sempra Mexico(1):
 
 
 
TAG Pipelines Norte, S. de R.L. de C.V. – Note due December 20, 2021(4)
$
(39
)
 
$
(37
)
TAG JV – 5.74% Note due December 17, 2029(5)
(156
)
 
—

Total due to unconsolidated affiliates – noncurrent
$
(195
)
 
$
(37
)
SDG&E:
 

 
 

Sempra Energy
$
(37
)
 
$
(43
)
SoCalGas
(10
)
 
(6
)
Various affiliates
(6
)
 
(12
)
Total due to unconsolidated affiliates – current
$
(53
)
 
$
(61
)
 
 
 
 
Income taxes due from Sempra Energy(6)
$
130

 
$
5

SoCalGas:
 

 
 

SDG&E
$
10

 
$
6

Various affiliates
1

 
1

Total due from unconsolidated affiliates – current
$
11

 
$
7

 
 
 
 
Sempra Energy
$
(45
)
 
$
(34
)
Various affiliates
(2
)
 
—

Total due to unconsolidated affiliates – current
$
(47
)
 
$
(34
)
 
 
 
 
Income taxes due from (to) Sempra Energy(6)
$
152

 
$
(4
)
(1) 
Amounts include principal balances plus accumulated interest outstanding.
(2) 
Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $751 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (9.65% at December 31, 2019), to finance construction of the natural gas marine pipeline.
(3) 
U.S. dollar-denominated loan at a variable interest rate based on the 30-day LIBOR plus 637.5 bps (8.89% at December 31, 2018).
(4) 
U.S. dollar-denominated loan at a variable interest rate based on 6-month LIBOR plus 290 bps (4.81% at December 31, 2019).
(5) 
U.S. dollar-denominated loan at a fixed interest rate.
(6) 
SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and their respective income tax expense is computed as an amount equal to that which would result from each company having always filed a separate return.

The following table summarizes revenues and cost of sales from unconsolidated affiliates.
REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
 
Years ended December 31,
 
2019
 
2018
 
2017
Revenues:
 
 
 
 
 
Sempra Energy Consolidated
$
52

 
$
64

 
$
43

SDG&E
6

 
5

 
8

SoCalGas
69

 
64

 
74

Cost of Sales:
 
 
 
 
 
Sempra Energy Consolidated
$
50

 
$
46

 
$
47

SDG&E
74

 
73

 
71

SoCalGas
8

 
—

 
—
Schedule Of Other Income (Expense)
Other Income, Net on the Consolidated Statements of Operations consists of the following:
OTHER INCOME, NET
(Dollars in millions)
 
Years ended December 31,
 
2019
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
Allowance for equity funds used during construction
$
94

 
$
98

 
$
168

Investment gains (losses)(1)
61

 
(6
)
 
56

Gains on interest rate and foreign exchange instruments, net
34

 
7

 
47

Foreign currency transaction gains (losses), net(2)
21

 
(6
)
 
(33
)
Non-service component of net periodic benefit cost
(132
)
 
(35
)
 
(20
)
Penalties related to billing practices OII
(8
)
 
—

 
—

Interest on regulatory balancing accounts, net
14

 
2

 
3

Sundry, net
(7
)
 
(2
)
 
(1
)
Total
$
77

 
$
58

 
$
220

SDG&E:
 

 
 

 
 

Allowance for equity funds used during construction
$
56

 
$
61

 
$
63

Non-service component of net periodic benefit (cost) credit
(20
)
 
(6
)
 
4

Interest on regulatory balancing accounts, net
13

 
4

 
3

Sundry, net
(10
)
 
(3
)
 
—

Total
$
39

 
$
56

 
$
70

SoCalGas:
 

 
 

 
 

Allowance for equity funds used during construction
$
34

 
$
36

 
$
44

Non-service component of net periodic benefit cost
(72
)
 
(10
)
 
(5
)
Penalties related to billing practices OII
(8
)
 
—

 
—

Interest on regulatory balancing accounts, net
1

 
(2
)
 
—

Sundry, net
(10
)
 
(9
)
 
(8
)
Total
$
(55
)
 
$
15

 
$
31

(1) 
Represents investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Consolidated Statements of Operations.
(2) 
Includes gains of $30 million in 2019 and losses of $3 million and $35 million in 2018 and 2017, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to IMG JV, which are offset by corresponding amounts included in Equity Earnings on the Consolidated Statements of Operations.