INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019		2018		2019		2018
Sempra Texas Utilities:
Oncor Holdings⁽¹⁾	100	%	100	%	$	11,519	$	9,652
Sempra Texas Utilities:
Sharyland Holdings⁽²⁾	50		—		$	100	$	—
Sempra Mexico:
Energía Sierra Juárez⁽³⁾	50		50		39		43
IMG JV⁽⁴⁾	40		40		337		328
TAG JV⁽⁵⁾	50		50		365		376
Sempra Renewables:
Auwahi Wind	—		50		—		38
Cedar Creek 2 Wind	—		50		—		69
Flat Ridge 2 Wind⁽⁶⁾	—		50		—		82
Fowler Ridge 2 Wind	—		50		—		45
Mehoopany Wind⁽⁷⁾	—		50		—		57
Sempra LNG:
Cameron LNG JV⁽⁸⁾	50.2		50.2		1,256		1,271
Total other equity method investments					2,097		2,309
Other					6		11
Total other investments					$	2,103	$	2,320

⁽¹⁾

The carrying value of our equity method investment is $2,823 million and $2,814 million higher than the underlying equity in the net assets of the investee at December 31, 2019 and 2018, respectively, due to $2,868 million of equity method goodwill and $69 million in basis differences in AOCI, offset by $114 million at December 31, 2019 and $123 million at December 31, 2018 due to a tax sharing liability to TTI under the tax sharing agreement.


⁽²⁾	The carrying value of our equity method investment is $42 million higher than the underlying equity in the net assets of the investee due to equity method goodwill.


⁽³⁾	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.


⁽⁴⁾	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.


⁽⁵⁾	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.


⁽⁶⁾	The carrying value of our equity method investment at December 31, 2018 was $169 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 at December 31, 2018 was $31 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.

⁽⁸⁾

The carrying value of our equity method investment is $263 million and $246 million higher than the underlying equity in the net assets of the investee at December 31, 2019 and 2018, respectively, primarily due to guarantees, which we discuss below, interest capitalized on the investment prior to the JV commencing its planned principal operations in August 2019 and amortization of guarantee fees and capitalized interest thereafter.



EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2019			2018			2017
EARNINGS (LOSSES) RECORDED BEFORE INCOME TAX⁽¹⁾:
Sempra Texas Utilities:
Sharyland Holdings	$	2		$	—		$	—
Sempra Renewables:
Wind:
Auwahi Wind	—			3			5
Broken Bow 2 Wind	—			(2		)	(2		)
Cedar Creek 2 Wind	—			(1		)	(2		)
Flat Ridge 2 Wind⁽²⁾	(3		)	(178		)	(13		)
Fowler Ridge 2 Wind	5			3			4
Mehoopany Wind⁽²⁾	1			(30		)	(1		)
Solar:
California solar partnership	—			8			7
Copper Mountain Solar 2	—			5			5
Copper Mountain Solar 3	—			8			8
Mesquite Solar 1	—			18			18
Other	2			(3		)	—
Sempra LNG:
Cameron LNG JV	24			—			5
Parent and other:
RBS Sempra Commodities⁽²⁾	—			(67		)	—
Other	(1		)	—			—
	30			(236		)	34
EARNINGS (LOSSES) RECORDED NET OF INCOME TAX:
Sempra Texas Utilities:
Oncor Holdings	526			371			—
Sempra Mexico:
DEN	—			—			(13		)
Energía Sierra Juárez	2			2			—
IMG JV	9			29			45
TAG JV	13			9			6
	550			411			38
Total	$	580		$	175		$	72


⁽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.

We disclose distributions received from our investments, by segment, in the table below.



DISTRIBUTIONS FROM INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2019		2018		2017
Sempra Texas Utilities	$	246	$	149	$	—
Sempra Mexico	2		—		—
Sempra Renewables	1		63		65
Parent and other	7		—		—
Total	256		212		65

Schedule of Summarized Financial Information

We provide summarized income statement and balance sheet information for Oncor Holdings in the following table.



SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS
(Dollars in millions)
	Year ended December 31, 2019			March 9 - December 31, 2018
Operating revenues	$	4,347		$	3,347
Operating expense	(3,135		)	(2,434		)
Income from operations	1,212			913
Interest expense	(375		)	(285		)
Income tax expense	(131		)	(119		)
Net income	643			455
Noncontrolling interest held by TTI	(129		)	(94		)
Earnings attributable to Sempra Energy	514			360

	At December 31,
	2019			2018
Current assets	$	913		$	772
Noncurrent assets	26,012			21,980
Current liabilities	1,626			2,217
Noncurrent liabilities	14,125			11,756
Noncontrolling interest held by TTI	2,473			1,951

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% of each of Sempra Energy’s other equity method investments.



SUMMARIZED FINANCIAL INFORMATION – OTHER EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2019⁽¹⁾			2018⁽²⁾			2017⁽³⁾
Gross revenues	$	798		$	706		$	833
Operating expense	(372		)	(609		)	(585		)
Income from operations	426			97			248
Interest expense	(401		)	(322		)	(219		)
Net income (loss)/Earnings (losses)⁽⁴⁾	85			(36		)	108



	At December 31,
	2019⁽¹⁾		2018⁽²⁾
Current assets	$	1,124	$	564
Noncurrent assets	15,039		14,558
Current liabilities	1,232		801
Noncurrent liabilities	11,438		9,966


⁽¹⁾	On April 22, 2019, Sempra Renewables sold its remaining wind assets and investments to AEP. As of April 22, 2019, these wind assets and investments are no longer equity method investments.


⁽²⁾	On December 13, 2018, Sempra Renewables sold all its operating solar assets, including its solar equity method investments, and its 50% 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.


⁽³⁾	On November 15, 2017, IEnova completed the asset acquisition of PEMEX’s 50% interest in DEN, increasing its ownership percentage to 100%. As of November 15, 2017, DEN is no longer an equity method investment.

⁽⁴⁾

Except for our investments in Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships.