XML 72 R40.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivative Volumes Table
The following table summarizes net energy derivative volumes.
NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
 
 
 
December 31,
Commodity
Unit of measure
 
2019
 
2018
Sempra Energy Consolidated:
 
 
 
 
 
Natural gas
MMBtu
 
32

 
35

Electricity
MWh
 
2

 
2

Congestion revenue rights
MWh
 
48

 
52

SDG&E:
 
 
 
 
 
Natural gas
MMBtu
 
37

 
33

Electricity
MWh
 
2

 
2

Congestion revenue rights
MWh
 
48

 
52

SoCalGas:
 
 
 
 
 
Natural gas
MMBtu
 
2

 
—
Notional Amounts Of Interest Rate Derivatives Table
The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.
INTEREST RATE DERIVATIVES
(Dollars in millions)
 
December 31, 2019
 
December 31, 2018
 
Notional debt
 
Maturities
 
Notional debt
 
Maturities
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Cash flow hedges(1)
$
1,445

 
2020-2034

 
$
594

 
2019-2032
SDG&E:
 
 
 

 
 

 
 
Cash flow hedge(1)
—

 
—

 
142

 
2019
(1) 
Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. On August 14, 2019, OMEC LLC paid in full its variable-rate loan and terminated its interest rate swaps.
The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.
FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
 
December 31, 2019
 
December 31, 2018
 
Notional amount
 
Maturities
 
Notional amount
 
Maturities
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Cross-currency swaps
$
306

 
2020-2023
 
$
306

 
2019-2023
Other foreign currency derivatives
1,796

 
2020-2021
 
1,158

 
2019-2020
Derivative Instruments on the Consolidated Balance Sheet Table
DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
 
December 31, 2019
 
Other current
assets(1)
 
Other long-term assets
 
Other current
liabilities
 

Deferred credits and other
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate and foreign exchange instruments
$
—

 
$
3

 
$
(17
)
 
$
(140
)
Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Foreign exchange instruments
41

 
—

 
(20
)
 
—

Associated offsetting foreign exchange instruments
(20
)
 
—

 
20

 
—

Commodity contracts not subject to rate recovery
34

 
11

 
(41
)
 
(10
)
Associated offsetting commodity contracts
(32
)
 
(2
)
 
32

 
2

Commodity contracts subject to rate recovery
41

 
76

 
(47
)
 
(47
)
Associated offsetting commodity contracts
(6
)
 
(3
)
 
6

 
3

Associated offsetting cash collateral
—

 
—

 
14

 
—

Net amounts presented on the balance sheet
58

 
85

 
(53
)
 
(192
)
Additional cash collateral for commodity contracts
not subject to rate recovery
43

 
—

 
—

 
—

Additional cash collateral for commodity contracts
subject to rate recovery
25

 
—

 
—

 
—

Total(2)
$
126

 
$
85

 
$
(53
)
 
$
(192
)
SDG&E:
 

 
 

 
 

 
 

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Commodity contracts subject to rate recovery
$
30

 
$
76

 
$
(41
)
 
$
(47
)
Associated offsetting commodity contracts
(4
)
 
(3
)
 
4

 
3

Associated offsetting cash collateral
—

 
—

 
14

 
—

Net amounts presented on the balance sheet
26

 
73

 
(23
)
 
(44
)
Additional cash collateral for commodity contracts
subject to rate recovery
16

 
—

 
—

 
—

Total(2)
$
42

 
$
73


$
(23
)
 
$
(44
)
SoCalGas:
 

 
 

 
 

 
 

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Commodity contracts subject to rate recovery
$
11

 
$
—

 
$
(6
)
 
$
—

Associated offsetting commodity contracts
(2
)
 
—

 
2

 
—

Net amounts presented on the balance sheet
9

 
—

 
(4
)
 
—

Additional cash collateral for commodity contracts
subject to rate recovery
9

 
—

 
—

 
—

Total
$
18

 
$
—

 
$
(4
)
 
$
—

(1) 
Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.
(2) 
Normal purchase contracts previously measured at fair value are excluded.

 
DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
 
December 31, 2018
 
Other current
assets(1)
 
Other long-term assets
 
Other current
liabilities
 

Deferred credits and other
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate and foreign exchange instruments(2)
$
2

 
$
—

 
$
(3
)
 
$
(147
)
Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Commodity contracts not subject to rate recovery
153

 
7

 
(164
)
 
(6
)
Associated offsetting commodity contracts
(133
)
 
(3
)
 
133

 
3

Commodity contracts subject to rate recovery
64

 
233

 
(42
)
 
(72
)
Associated offsetting commodity contracts
(6
)
 
(2
)
 
6

 
2

Associated offsetting cash collateral
—

 
—

 
—

 
2

Net amounts presented on the balance sheet
80

 
235

 
(70
)
 
(218
)
Additional cash collateral for commodity contracts
not subject to rate recovery
19

 
—

 
—

 
—

Additional cash collateral for commodity contracts
subject to rate recovery
33

 
—

 
—

 
—

Total(3)
$
132

 
$
235

 
$
(70
)
 
$
(218
)
SDG&E:
 

 
 

 
 

 
 

Derivatives designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate instruments(2)
$
—

 
$
—

 
$
(1
)
 
$
—

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Commodity contracts subject to rate recovery
60

 
233

 
(37
)
 
(72
)
Associated offsetting commodity contracts
(6
)
 
(2
)
 
6

 
2

Associated offsetting cash collateral
—

 
—

 
—

 
2

Net amounts presented on the balance sheet
54

 
231

 
(32
)
 
(68
)
Additional cash collateral for commodity contracts
subject to rate recovery
28

 
—

 
—

 
—

Total(3)
$
82

 
$
231

 
$
(32
)
 
$
(68
)
SoCalGas:
 

 
 

 
 

 
 

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Commodity contracts subject to rate recovery
$
4

 
$
—

 
$
(5
)
 
$
—

Net amounts presented on the balance sheet
4

 
—

 
(5
)
 
—

Additional cash collateral for commodity contracts
subject to rate recovery
5

 
—

 
—

 
—

Total
$
9

 
$
—

 
$
(5
)
 
$
—

(1) 
Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.
(2) 
Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.
(3) 
Normal purchase contracts previously measured at fair value are excluded.
Cash Flow Hedge Impact on the Consolidated Statements Of Operations Table
The table below includes the effects of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations and in OCI and AOCI.
CASH FLOW HEDGE IMPACTS
(Dollars in millions)
 
Pretax (loss) gain
recognized in OCI
 
 
 
Pretax (loss) gain reclassified
from AOCI into earnings
 
Years ended December 31,
 
 
 
Years ended December 31,
 
2019
 
2018
 
2017
 
Location
 
2019
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate and foreign
exchange instruments(1)
$
(5
)
 
$
31

 
$
19

 
Interest Expense(1)
 
$
(3
)
 
$
—

 
$
4

 
 
 
 
 
 
 
Other Income, Net
 
9

 
2

 
—

Interest rate instruments
—

 
—

 
—

 
Gain on Sale of Assets
 
(10
)
 
(9
)
 
—

Interest rate and foreign
exchange instruments
(174
)
 
41

 
(34
)
 
Equity Earnings
 
(5
)
 
(7
)
 
(20
)
Foreign exchange instruments
(8
)
 
(4
)
 
4

 
Revenues: Energy-
Related Businesses
 
(2
)
 
1

 
2

Commodity contracts not subject
to rate recovery
—

 
—

 
3

 
Revenues: Energy-
Related Businesses
 
—

 
—

 
(9
)
Total
$
(187
)
 
$
68

 
$
(8
)
 
 
 
$
(11
)
 
$
(13
)
 
$
(23
)
SDG&E:
 

 
 

 
 

 
 
 
 

 
 

 
 

Interest rate instruments(1)
$
(1
)
 
$
1

 
$
(2
)
 
Interest Expense(1)
 
$
(3
)
 
$
(7
)
 
$
(13
)
SoCalGas:
 

 
 

 
 

 
 
 
 

 
 

 
 

Interest rate instruments
$
—

 
$
—

 
$
—

 
Interest Expense
 
$
(1
)
 
$
(1
)
 
$
—

(1) 
Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. On August 14, 2019, OMEC LLC paid in full its variable-rate loan and terminated its interest rate swaps.
Undesignated Derivative Impact on the Consolidated Statements of Operations
The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations.
UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
 
 
Pretax gain (loss) on derivatives recognized in earnings
 
 
Years ended December 31,
 
Location
2019
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
Foreign exchange instruments
Other Income, Net
$
25

 
$
3

 
$
49

Commodity contracts not subject
to rate recovery
Revenues: Energy-Related
Businesses
12

 
26

 
16

Commodity contracts subject
to rate recovery
Cost of Electric Fuel
and Purchased Power
(140
)
 
279

 
54

Commodity contracts subject
to rate recovery
Cost of Natural Gas
3

 
5

 
(2
)
Total
 
$
(100
)
 
$
313

 
$
117

SDG&E:
 
 

 
 

 
 

Commodity contracts subject
to rate recovery
Cost of Electric Fuel
and Purchased Power
$
(140
)
 
$
279

 
$
54

SoCalGas:
 
 

 
 

 
 

Commodity contracts subject
to rate recovery
Cost of Natural Gas
$
3

 
$
5

 
$
(2
)