REVENUES

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUES

REVENUES

We discuss revenue recognition for revenues from contracts with customers and from sources other than contracts with customers in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report.

In connection with the COVID-19 pandemic, the California Utilities and the CPUC have implemented certain measures to assist customers, including suspending service disconnections due to nonpayment for residential and small business customers, waiving late payment fees for business customers, and offering flexible payment plans for customers experiencing difficulty paying their electric or gas bills. Additional measures could be mandated or voluntarily implemented in the future. Under the regulatory compact applicable to the California Utilities, including decoupling of rates, recovery of uncollectible expenses, and other recovery mechanisms potentially available (including the CPPMA, which we discuss in Note 4), the California Utilities have continued to recognize revenues under ASC 606, “Revenue from Contracts with Customers,” in the three months and six months ended June 30, 2020.

The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time.

DISAGGREGATED REVENUES
(Dollars in millions)
	SDG&E		SoCalGas			Sempra Mexico		Sempra LNG		Consolidating adjustments and Parent and Other			Sempra Energy Consolidated
	Three months ended June 30, 2020
By major service line:
Utilities	$	1,050	$	904		$	10	$	—	$	(22	)	$	1,942
Energy-related businesses	—		—			174		9		(1		)	182
Revenues from contracts with customers	$	1,050	$	904		$	184	$	9	$	(23	)	$	2,124
By market:
Gas	$	138	$	904		$	133	$	7	$	(21	)	$	1,161
Electric	912		—			51		2		(2		)	963
Revenues from contracts with customers	$	1,050	$	904		$	184	$	9	$	(23	)	$	2,124
Revenues from contracts with customers	$	1,050	$	904		$	184	$	9	$	(23	)	$	2,124
Utilities regulatory revenues	185		106			—		—		—			291
Other revenues	—		—			91		60		(40		)	111
Total revenues	$	1,235	$	1,010		$	275	$	69	$	(63	)	$	2,526
	Six months ended June 30, 2020
By major service line:
Utilities	$	2,309	$	2,448		$	30	$	—	$	(41	)	$	4,746
Energy-related businesses	—		—			372		21		(8		)	385
Revenues from contracts with customers	$	2,309	$	2,448		$	402	$	21	$	(49	)	$	5,131
By market:
Gas	$	392	$	2,448		$	280	$	18	$	(44	)	$	3,094
Electric	1,917		—			122		3		(5		)	2,037
Revenues from contracts with customers	$	2,309	$	2,448		$	402	$	21	$	(49	)	$	5,131
Revenues from contracts with customers	$	2,309	$	2,448		$	402	$	21	$	(49	)	$	5,131
Utilities regulatory revenues	195		(43		)	—		—		—			152
Other revenues	—		—			182		171		(81		)	272
Total revenues	$	2,504	$	2,405		$	584	$	192	$	(130	)	$	5,555

DISAGGREGATED REVENUES (CONTINUED)
(Dollars in millions)
	SDG&E		SoCalGas			Sempra Mexico		Sempra Renewables		Sempra LNG		Consolidating adjustments and Parent and other			Sempra Energy Consolidated
	Three months ended June 30, 2019
By major service line:
Utilities	$	998	$	877		$	15	$	—	$	—	$	(20	)	$	1,870
Energy-related businesses	—		—			202		1		21		(14		)	210
Revenues from contracts with customers	$	998	$	877		$	217	$	1	$	21	$	(34	)	$	2,080
By market:
Gas	$	102	$	877		$	158	$	—	$	19	$	(29	)	$	1,127
Electric	896		—			59		1		2		(5		)	953
Revenues from contracts with customers	$	998	$	877		$	217	$	1	$	21	$	(34	)	$	2,080
Revenues from contracts with customers	$	998	$	877		$	217	$	1	$	21	$	(34	)	$	2,080
Utilities regulatory revenues	96		(71		)	—		—		—		—			25
Other revenues	—		—			101		2		65		(43		)	125
Total revenues	$	1,094	$	806		$	318	$	3	$	86	$	(77	)	$	2,230
	Six months ended June 30, 2019
By major service line:
Utilities	$	2,234	$	2,405		$	42	$	—	$	—	$	(38	)	$	4,643
Energy-related businesses	—		—			459		5		89		(73		)	480
Revenues from contracts with customers	$	2,234	$	2,405		$	501	$	5	$	89	$	(111	)	$	5,123
By market:
Gas	$	341	$	2,405		$	356	$	—	$	86	$	(105	)	$	3,083
Electric	1,893		—			145		5		3		(6		)	2,040
Revenues from contracts with customers	$	2,234	$	2,405		$	501	$	5	$	89	$	(111	)	$	5,123
Revenues from contracts with customers	$	2,234	$	2,405		$	501	$	5	$	89	$	(111	)	$	5,123
Utilities regulatory revenues	5		(238		)	—		—		—		—			(233		)
Other revenues	—		—			200		5		138		(105		)	238
Total revenues	$	2,239	$	2,167		$	701	$	10	$	227	$	(216	)	$	5,128

Remaining Performance Obligations

For contracts greater than one year, at June 30, 2020, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at June 30, 2020.

REMAINING PERFORMANCE OBLIGATIONS(1)
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E
2020 (excluding first six months of 2020)	$	195	$	2
2021	403		4
2022	406		4
2023	407		4
2024	348		4
Thereafter	4,678		71
Total revenues to be recognized	$	6,437	$	89

⁽¹⁾ Excludes intercompany transactions.

Contract Balances from Revenues from Contracts with Customers

Activities within Sempra Energy’s and SDG&E’s contract liabilities are presented below. There were no contract liabilities at SDG&E in the six months ended June 30, 2019 or SoCalGas in the six months ended June 30, 2020 and 2019.

CONTRACT LIABILITIES
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E
Balance at January 1, 2020	$	(163	)	$	(91	)
Revenue from performance obligations satisfied during reporting period	2			2
Balance at June 30, 2020(1)	$	(161	)	$	(89	)
Balance at January 1, 2019	$	(70	)
Revenue from performance obligations satisfied during reporting period	1
Payments received in advance	(3		)
Balance at June 30, 2019	$	(72	)

⁽¹⁾ Includes $4 million and $4 million in Other Current Liabilities and $157 million and $85 million in Deferred Credits and Other on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets, respectively.

Receivables from Revenues from Contracts with Customers

The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets.

RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS
(Dollars in millions)
	June 30, 2020		December 31, 2019
Sempra Energy Consolidated:
Accounts receivable – trade, net	$	943	$	1,163
Accounts receivable – other, net	9		16
Due from unconsolidated affiliates – current(1)	4		5
Total	$	956	$	1,184
SDG&E:
Accounts receivable – trade, net	$	418	$	398
Accounts receivable – other, net	7		5
Due from unconsolidated affiliates – current(1)	3		2
Total	$	428	$	405
SoCalGas:
Accounts receivable – trade, net	$	460	$	710
Accounts receivable – other, net	2		11
Total	$	462	$	721

⁽¹⁾

Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists.