XML 46 R22.htm IDEA: XBRL DOCUMENT v3.20.2
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)
 6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Cash and Cash Equivalents
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on Sempra Energy’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra Energy’s Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
 
June 30,
December 31,
 
2020
2019
Sempra Energy Consolidated:
 
 
Cash and cash equivalents
$
4,894

$
108

Restricted cash, current
33

31

Restricted cash, noncurrent
3

3

Cash, cash equivalents and restricted cash in discontinued operations
—

75

Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows
$
4,930

$
217
Accounts Receivable, Allowance for Credit Loss Table
We provide below allowances and changes in allowances for credit losses for trade and other accounts receivable, excluding allowances related to amounts due from unconsolidated affiliates and off-balance sheet arrangements, which we discuss separately below the table.
TRADE AND OTHER ACCOUNTS RECEIVABLE – ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
 
 
 
Sempra Energy Consolidated(1)
SDG&E(2)
SoCalGas(3)
Allowances for credit losses at December 31, 2019
$
29

$
14

$
15

Incremental allowance upon adoption of ASU 2016-13
1

—

—

Provisions for expected credit losses
21

9

12

Write-offs
(7
)
(4
)
(3
)
Allowances for credit losses at June 30, 2020
$
44

$
19

$
24

(1) 
Balance at June 30, 2020 includes $19 million and $25 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively.
(2) 
Balance at June 30, 2020 includes $7 million and $12 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively.
(3) 
Balance at June 30, 2020 includes $11 million and $13 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively.
Financing Receivable, Allowance for Credit Loss We provide below the changes in allowances for credit losses for loans and other amounts due from unconsolidated affiliates.
AMOUNTS DUE FROM UNCONSOLIDATED AFFILIATES – ALLOWANCES FOR CREDIT LOSSES
 
(Dollars in millions)
 
Sempra Energy Consolidated(1)
Allowances for credit losses at December 31, 2019
$
—

Allowance established upon adoption of ASU 2016-13
6

Reduction to expected credit losses
(3
)
Allowances for credit losses at June 30, 2020
$
3

(1) 
Balance at June 30, 2020 includes negligible amounts and $3 million in Due from Unconsolidated Affiliates – Current and Due from Unconsolidated Affiliates – Noncurrent, respectively.
Inventory Table
The components of inventories are as follows:
INVENTORY BALANCES
(Dollars in millions)
 
Natural gas
 
LNG
 
Materials and supplies
 
Total
 
June
 
December
 
June
 
December
 
June
 
December
 
June
 
December
 
30, 2020
 
31, 2019
 
30, 2020
 
31, 2019
 
30, 2020
 
31, 2019
 
30, 2020
 
31, 2019
Sempra Energy Consolidated
$
86

 
$
110

 
$
7

 
$
9

 
$
174

 
$
158

 
$
267

 
$
277

SDG&E
—

 
1

 
—

 
—

 
101

 
93

 
101

 
94

SoCalGas
64

 
90

 
—

 
—

 
54

 
46

 
118

 
136
Wildfire Fund Table
The following table summarizes the location of balances related to the Wildfire Fund on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations.
WILDFIRE FUND
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
Location
 
June 30,
 2020
 
December 31,
 2019
Wildfire Fund asset:
 
 
 
 
 
Current
Other Current Assets(1)
 
$
29

 
$
29

Noncurrent
Wildfire Fund
 
378

 
392

Wildfire Fund obligation:
 
 
 
 
 
Current
Other Current Liabilities
 
$
13

 
$
13

Noncurrent
Deferred Credits and Other
 
87

 
86

 
 
 
Three months ended
 
Six months ended
 
 
 
June 30, 2020
 
June 30, 2020
Amortization of Wildfire Fund asset
Operation and Maintenance
 
$
7

 
$
14

Accretion of Wildfire Fund obligation
Operation and Maintenance
 
1

 
1


In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that are effective January 1, 2020 and will remain in effect through December 31, 2022. SDG&E did not propose a 2020 cost of preferred equity in this proceeding. In January 2020, SDG&E filed an advice letter to continue the cost of preferred equity for test year 2020 at 6.22%, which the CPUC approved in March 2020.
CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SDG&E
 
SoCalGas
Authorized weighting
Return on
rate base
Weighted
return on
rate base
 
Authorized weighting
Return on
rate base
Weighted
return on
rate base
45.25
%
4.59
%
2.08
%
Long-Term Debt
45.60
%
4.23
%
1.93
%
2.75
 
6.22
 
0.17
 
Preferred Equity
2.40
 
6.00
 
0.14
 
52.00
 
10.20
 
5.30
 
Common Equity
52.00
 
10.05
 
5.23
 
100.00
%
 
 
7.55
%
 
100.00
%
 
 
7.30
%
Capitalized Financing Costs Table
The table below summarizes capitalized interest and AFUDC.
CAPITALIZED FINANCING COSTS
(Dollars in millions)
 
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Sempra Energy Consolidated
$
50

 
$
51

 
$
98

 
$
98

SDG&E
26

 
20

 
53

 
37

SoCalGas
14

 
11

 
25

 
22
Net Periodic Benefit Cost Table
The following three tables provide the components of net periodic benefit cost.
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
33

 
$
28

 
$
4

 
$
4

Interest cost
33

 
35

 
8

 
9

Expected return on assets
(43
)
 
(36
)
 
(14
)
 
(17
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost
3

 
3

 
—

 
—

Actuarial loss (gain)
8

 
7

 
(2
)
 
(3
)
Settlement charges
4

 
22

 
—

 
—

Net periodic benefit cost (credit)
38

 
59

 
(4
)
 
(7
)
Regulatory adjustments
22

 
3

 
4

 
7

Total expense recognized
$
60

 
$
62

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
66

 
$
55

 
$
9

 
$
8

Interest cost
65

 
70

 
16

 
18

Expected return on assets
(85
)
 
(72
)
 
(27
)
 
(35
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
6

 
6

 
(1
)
 
—

Actuarial loss (gain)
17

 
21

 
(5
)
 
(5
)
Settlement charges
9

 
22

 
—

 
—

Net periodic benefit cost (credit)
78

 
102

 
(8
)
 
(14
)
Regulatory adjustments
(6
)
 
(33
)
 
8

 
14

Total expense recognized
$
72

 
$
69

 
$
—

 
$
—

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
8

 
$
7

 
$
1

 
$
1

Interest cost
8

 
8

 
1

 
2

Expected return on assets
(12
)
 
(9
)
 
(2
)
 
(3
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost
—

 
1

 
—

 
—

Actuarial loss
1

 
3

 
—

 
—

Net periodic benefit cost
5

 
10

 
—

 
—

Regulatory adjustments
9

 
(1
)
 
—

 
—

Total expense recognized
$
14

 
$
9

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
16

 
$
15

 
$
2

 
$
2

Interest cost
15

 
17

 
3

 
4

Expected return on assets
(25
)
 
(20
)
 
(5
)
 
(6
)
Amortization of:

 
 
 

 
 
Prior service cost
1

 
2

 
—

 
1

Actuarial loss (gain)
2

 
7

 
(1
)
 
(1
)
Net periodic benefit cost (credit)
9

 
21

 
(1
)
 
—

Regulatory adjustments
6

 
(12
)
 
1

 
—

Total expense recognized
$
15

 
$
9

 
$
—

 
$
—

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
22

 
$
18

 
$
4

 
$
3

Interest cost
22

 
22

 
6

 
7

Expected return on assets
(27
)
 
(23
)
 
(11
)
 
(15
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
2

 
2

 
(1
)
 
—

Actuarial loss (gain)
7

 
2

 
(2
)
 
(2
)
Net periodic benefit cost (credit)
26

 
21

 
(4
)
 
(7
)
Regulatory adjustments
13

 
4

 
4

 
7

Total expense recognized
$
39

 
$
25

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
44

 
$
34

 
$
7

 
$
6

Interest cost
44

 
45

 
12

 
14

Expected return on assets
(54
)
 
(47
)
 
(21
)
 
(29
)
Amortization of:
 
 
 
 

 
 
Prior service cost (credit)
4

 
4

 
(1
)
 
(1
)
Actuarial loss (gain)
13

 
11

 
(4
)
 
(4
)
Net periodic benefit cost (credit)
51

 
47

 
(7
)
 
(14
)
Regulatory adjustments
(12
)
 
(21
)
 
7

 
14

Total expense recognized
$
39

 
$
26

 
$
—

 
$
—
Contributions to Benefit Plans Table
The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2020.
BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
 
 
Sempra Energy
Consolidated
 
SDG&E
 
SoCalGas
Contributions through June 30, 2020:
 
 
 
 
 
 
Pension plans
 
$
82

 
$
13

 
$
38

Other postretirement benefit plans
 
3

 
—

 
—

Total expected contributions in 2020:
 
 
 
 
 
 
Pension plans
 
$
268

 
$
53

 
$
154

Other postretirement benefit plans
 
7

 
—

 
1
Earnings Per Share Computations Table
Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
EARNINGS PER COMMON SHARE COMPUTATIONS
 
 
 
 
 
 
 
(Dollars in millions, except per share amounts; shares in thousands)
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Numerator for continuing operations:
 
 
 
 
 
 
 
Income from continuing operations, net of income tax
$
528

 
$
357

 
$
1,395

 
$
917

Earnings attributable to noncontrolling interests
(26
)
 
(37
)
 
(169
)
 
(69
)
Preferred dividends
(37
)
 
(35
)
 
(73
)
 
(71
)
Preferred dividends of subsidiary
(1
)
 
(1
)
 
(1
)
 
(1
)
Earnings from continuing operations attributable to common shares for basic EPS
464

 
284

 
1,152

 
776

Add back dividends for dilutive mandatory convertible preferred stock(1)
—

 
—

 
52

 
—

Earnings from continuing operations attributable to common shares for diluted EPS
$
464

 
$
284

 
$
1,204

 
$
776

 
 
 
 
 
 
 
 
Numerator for discontinued operations:
 
 
 
 
 
 
 
Income from discontinued operations, net of income tax
$
1,777

 
$
78

 
$
1,857

 
$
36

Earnings attributable to noncontrolling interests
(2
)
 
(8
)
 
(10
)
 
(17
)
Earnings from discontinued operations attributable to common shares
$
1,775

 
$
70

 
$
1,847

 
$
19

 
 
 
 
 
 
 
 
Numerator for earnings:
 
 
 
 
 
 
 
Earnings attributable to common shares for basic EPS
$
2,239

 
$
354

 
$
2,999

 
$
795

Add back dividends for dilutive mandatory convertible preferred stock(1)
—

 
—

 
52

 
—

Earnings attributable to common shares for diluted EPS
$
2,239

 
$
354

 
$
3,051

 
$
795

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average common shares outstanding for basic EPS(2)
293,060

 
274,987

 
292,925

 
274,831

Dilutive effect of stock options and RSUs(3)
1,095

 
1,541

 
1,199

 
1,255

Dilutive effect of common shares sold forward
—

 
3,091

 
—

 
2,338

Dilutive effect of mandatory convertible preferred stock
—

 
—

 
13,838

 
—

Weighted-average common shares outstanding for diluted EPS
294,155

 
279,619

 
307,962

 
278,424

 
 
 
 
 
 
 
 
Basic EPS:
 
 
 
 
 
 
 
Earnings from continuing operations
$
1.58

 
$
1.03

 
$
3.93

 
$
2.82

Earnings from discontinued operations
$
6.06

 
$
0.26

 
$
6.31

 
$
0.07

Earnings
$
7.64

 
$
1.29

 
$
10.24

 
$
2.89

 
 
 
 
 
 
 
 
Diluted EPS:
 
 
 
 
 
 
 
Earnings from continuing operations
$
1.58

 
$
1.01

 
$
3.91

 
$
2.78

Earnings from discontinued operations
$
6.03

 
$
0.25

 
$
6.00

 
$
0.07

Earnings
$
7.61

 
$
1.26

 
$
9.91

 
$
2.85

(1)
In the six months ended June 30, 2020, due to the dilutive effect of Sempra Energy’s series A mandatory convertible preferred stock, the numerator used to calculate diluted EPS includes an add-back of dividends declared on the series A mandatory convertible preferred stock.
(2)
Includes 530 and 613 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended June 30, 2020 and 2019, respectively, and 536 and 613 of such RSUs for the six months ended June 30, 2020 and 2019, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued.
(3) 
Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period.
Schedule of Accumulated Other Comprehensive Income (Loss) Table
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)
 
Three months ended June 30, 2020 and 2019
Sempra Energy Consolidated(2):
 
 
 
 
 
 
 
Balance as of March 31, 2020
$
(745
)
 
$
(350
)
 
$
(95
)
 
$
(1,190
)
OCI before reclassifications(3)
17

 
(13
)
 
(14
)
 
(10
)
Amounts reclassified from AOCI(3)
645

 
2

 
11

 
658

Net OCI
662

 
(11
)
 
(3
)
 
648

Balance as of June 30, 2020
$
(83
)
 
$
(361
)
 
$
(98
)
 
$
(542
)
 
 
 
 
 
 
 
 
Balance as of March 31, 2019
$
(532
)
 
$
(153
)
 
$
(132
)
 
$
(817
)
OCI before reclassifications(3)
14

 
(67
)
 
(7
)
 
(60
)
Amounts reclassified from AOCI(3)
—

 
7

 
22

 
29

Net OCI
14

 
(60
)
 
15

 
(31
)
Balance as of June 30, 2019
$
(518
)
 
$
(213
)
 
$
(117
)
 
$
(848
)
SDG&E:
 
 
 
 
 
 
 
Balance as of March 31, 2020
 
 
 
 
$
(16
)
 
$
(16
)
Amounts reclassified from AOCI(3)
 
 
 
 
4

 
4

Net OCI
 
 
 
 
4

 
4

Balance as of June 30, 2020
 
 
 
 
$
(12
)
 
$
(12
)
 
 
 
 
 
 
 
 
Balance as of March 31, 2019
 
 
 
 
$
(12
)
 
$
(12
)
Amounts reclassified from AOCI
 
 
 
 
1

 
1

Net OCI
 
 
 
 
1

 
1

Balance as of June 30, 2019
 
 
 
 
$
(11
)
 
$
(11
)
SoCalGas:
 
 
 
 
 
 
 
Balance as of March 31, 2020
 
 
$
(13
)
 
$
(10
)
 
$
(23
)
Amounts reclassified from AOCI
 
 
—

 
1

 
1

Net OCI
 
 
—

 
1

 
1

Balance as of June 30, 2020
 
 
$
(13
)
 
$
(9
)
 
$
(22
)
 
 
 
 
 
 
 
 
Balance as of March 31, 2019
 
 
$
(14
)
 
$
(10
)
 
$
(24
)
Amounts reclassified from AOCI(3)
 
 
—

 
4

 
4

Net OCI
 
 
—

 
4

 
4

Balance as of June 30, 2019
 
 
$
(14
)
 
$
(6
)
 
$
(20
)
(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 $3 million in transfers of liabilities from SDG&E to Sempra Energy in 2020 and $4 million in transfers of liabilities from SoCalGas to Sempra Energy in 2019 related to the nonqualified pension plans.


CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (CONTINUED)
(Dollars in millions)
 
Foreign
currency
translation
adjustments
 
Financial
instruments
 
Pension
and other
postretirement
benefits
 
Total
accumulated other
comprehensive
income (loss)
 
Six months ended June 30, 2020 and 2019
Sempra Energy Consolidated(2):
 
 
 
 
 
 
 
Balance as of December 31, 2019
$
(607
)
 
$
(215
)
 
$
(117
)
 
$
(939
)
OCI before reclassifications(3)
(121
)
 
(167
)
 
2

 
(286
)
Amounts reclassified from AOCI(3)
645

 
21

 
17

 
683

Net OCI
524

 
(146
)
 
19

 
397

Balance as of June 30, 2020
$
(83
)
 
$
(361
)
 
$
(98
)
 
$
(542
)
 
 
 
 
 
 
 
 
Balance as of December 31, 2018
$
(564
)
 
$
(82
)
 
$
(118
)
 
$
(764
)
Adoption of ASU 2018-02
—

 
(25
)
 
(17
)
 
(42
)
OCI before reclassifications(3)
46

 
(112
)
 
(6
)
 
(72
)
Amounts reclassified from AOCI(3)
—

 
6

 
24

 
30

Net OCI
46

 
(106
)
 
18

 
(42
)
Balance as of June 30, 2019
$
(518
)
 
$
(213
)
 
$
(117
)
 
$
(848
)
SDG&E:
 
 
 
 
 
 
 
Balance as of December 31, 2019
 
 
 
 
$
(16
)
 
$
(16
)
Amounts reclassified from AOCI(3)
 
 
 
 
4

 
4

Net OCI
 
 
 
 
4

 
4

Balance as of June 30, 2020
 
 
 
 
$
(12
)
 
$
(12
)
 
 
 
 
 
 
 
 
Balance as of December 31, 2018
 
 
 
 
$
(10
)
 
$
(10
)
Adoption of ASU 2018-02
 
 
 
 
(2
)
 
(2
)
Amounts reclassified from AOCI
 
 
 
 
1

 
1

Net OCI
 
 
 
 
1

 
1

Balance as of June 30, 2019
 
 
 
 
$
(11
)
 
$
(11
)
SoCalGas:
 
 
 
 
 
 
 
Balance as of December 31, 2019
 
 
$
(13
)
 
$
(10
)
 
$
(23
)
Amounts reclassified from AOCI
 
 
—

 
1

 
1

Net OCI
 
 
—

 
1

 
1

Balance as of June 30, 2020
 
 
$
(13
)
 
$
(9
)
 
$
(22
)
 
 
 
 
 
 
 
 
Balance as of December 31, 2018
 
 
$
(12
)
 
$
(8
)
 
$
(20
)
Adoption of ASU 2018-02
 
 
(2
)
 
(2
)
 
(4
)
Amounts reclassified from AOCI(3)
 
 
—

 
4

 
4

Net OCI
 
 
—

 
4

 
4

Balance as of June 30, 2019
 
 
$
(14
)
 
$
(6
)
 
$
(20
)

(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 $3 million in transfers of liabilities from SDG&E to Sempra Energy in 2020 and $4 million in transfers of liabilities from SoCalGas to Sempra Energy in 2019 related to the nonqualified pension plans.
Reclassifications out of AOCI Table
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 Condensed
Consolidated Statements of Operations
 
Three months ended June 30,
 
 
 
2020
 
2019
 
 
Sempra Energy Consolidated:
 
 
 
 
 
Foreign currency translation adjustments
$
645

 
$
—

 
Income from Discontinued Operations, Net of
Income Tax
 
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate and foreign exchange instruments(1)
$
2

 
$
—

 
Interest Expense
 
(4
)
 
(2
)
 
Other Income (Expense), Net
Interest rate instruments
—

 
10

 
Gain on Sale of Assets
Interest rate and foreign exchange instruments
1

 
—

 
Equity Earnings
Foreign exchange instruments
1

 
—

 
Other Income (Expense), Net
Total before income tax
—

 
8

 
 
 
—

 
(1
)
 
Income Tax (Expense) Benefit
Net of income tax
—

 
7

 
 
 
2

 
—

 
Earnings Attributable to Noncontrolling Interests
 
$
2

 
$
7

 
 
Pension and other postretirement benefits(2):
 
 
 
 
 
Amortization of actuarial loss
$
1

 
$
2

 
Other Income (Expense), Net
Amortization of actuarial loss
6

 
—

 
Income from Discontinued Operations, Net of
Income Tax
Amortization of prior service cost
1

 
—

 
Other Income (Expense), Net
Settlement charges
4

 
22

 
Other Income (Expense), Net
Total before income tax
12

 
24

 
 
 
(2
)
 
—

 
Income from Discontinued Operations, Net of
Income Tax
 
(2
)
 
(6
)
 
Income Tax (Expense) Benefit
Net of income tax
$
8

 
$
18

 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
655

 
$
25

 
 
SDG&E:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments(1)
$
—

 
$
1

 
Interest Expense
 
—

 
(1
)
 
Earnings Attributable to Noncontrolling Interest
 
$
—

 
$
—

 
 
Pension and other postretirement benefits(2):
 
 
 
 
 
Amortization of prior service cost
$
1

 
$
1

 
Other Income, Net
Total reclassifications for the period, net of tax
$
1

 
$
1

 
 
SoCalGas:
 

 
 

 
 
Pension and other postretirement benefits(2):
 

 
 

 
 
Amortization of prior service cost
$
1

 
$
—

 
Other Income, Net
Total reclassifications for the period, net of tax
$
1

 
$
—

 
 

(1) 
Amounts in 2019 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 “Pension and Other Postretirement Benefits” above).

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)
(Dollars in millions)
Details about accumulated other
comprehensive income (loss) components
Amounts reclassified
from accumulated other
comprehensive income (loss)
 
Affected line item on Condensed
Consolidated Statements of Operations
 
Six months ended June 30,
 
 
 
2020
 
2019
 
 
Sempra Energy Consolidated:
 
 
 
 
 
Foreign currency translation adjustments
$
645

 
$
—

 
Income from Discontinued Operations, Net of
Income Tax
 
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate and foreign exchange instruments(1)
$
4

 
$
1

 
Interest Expense
 
37

 
(5
)
 
Other Income (Expense), Net
Interest rate instruments
—

 
10

 
Gain on Sale of Assets
Interest rate and foreign exchange instruments
1

 
1

 
Equity Earnings
Foreign exchange instruments
(2
)
 
1

 
Revenues: Energy-Related Businesses
 
(1
)
 
—

 
Other Income (Expense), Net
Total before income tax
39

 
8

 
 
 
(12
)
 
(1
)
 
Income Tax (Expense) Benefit
Net of income tax
27

 
7

 
 
 
(6
)
 
(1
)
 
Earnings Attributable to Noncontrolling Interests
 
$
21

 
$
6

 
 
Pension and other postretirement benefits(2):
 
 
 
 
 
Amortization of actuarial loss
$
3

 
$
4

 
Other Income (Expense), Net
Amortization of actuarial loss
6

 
—

 
Income from Discontinued Operations, Net of
Income Tax
Amortization of prior service cost
2

 
1

 
Other Income (Expense), Net
Settlement charges
9

 
22

 
Other Income (Expense), Net
Total before income tax
20

 
27

 
 
 
(2
)
 
—

 
Income from Discontinued Operations, Net of
Income Tax
 
(4
)
 
(7
)
 
Income Tax (Expense) Benefit
Net of income tax
$
14

 
$
20

 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
680

 
$
26

 
 
SDG&E:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments(1)
$
—

 
$
2

 
Interest Expense
 
—

 
(2
)
 
Earnings Attributable to Noncontrolling Interest
 
$
—

 
$
—

 
 
Pension and other postretirement benefits(2):
 
 
 
 
 
Amortization of prior service cost
$
1

 
$
1

 
Other Income, Net
Total reclassifications for the period, net of tax
$
1

 
$
1

 
 
SoCalGas:
 

 
 

 
 
Pension and other postretirement benefits(2):
 

 
 

 
 
Amortization of prior service cost
$
1

 
$
—

 
Other Income, Net
Total reclassifications for the period, net of tax
$
1

 
$
—

 
 

(1) 
Amounts in 2019 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 “Pension and Other Postretirement Benefits” above).
Ownership Interests Held By Others Table
The following table provides information about NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets.
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
 
 
 
Percent ownership held by noncontrolling interests
 
 Equity (deficit) held by
noncontrolling interests
 
June 30,
2020
 
December 31,
2019
 
June 30,
2020
 
December 31,
2019
Sempra Mexico:
 
 
 
 
 
 
 
IEnova
33.2
%
33.4
%
$
1,738

 
$
1,608

IEnova subsidiaries(1)
17.5
 
10.0 – 46.3
 
7

 
15

Sempra LNG:
 
 
 
 
 
 
 
Liberty Gas Storage LLC
—
 
24.6
 
—

 
(13
)
ECA LNG JV
16.6
 
16.7
 
15

 
12

Parent and other:
 
 
 
 
 
 
 
PXiSE Energy Solutions, LLC
20.0
 
20.0
 
—

 
1

Discontinued Operations:
 
 
 
 
 
 
 
Chilquinta Energía subsidiaries(1)
—
 
19.7 – 43.4
 
—

 
23

Luz del Sur
—
 
16.4
 
—

 
205

Tecsur
—
 
9.8
 
—

 
5

Total Sempra Energy
 
 
 
 
$
1,760

 
$
1,856

(1) 
IEnova and Chilquinta Energía have subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
Transactions with Affiliates Table
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)
 
June 30,
2020
 
December 31,
2019
Sempra Energy Consolidated:
 
 
 
Total due from various unconsolidated affiliates – current, net of negligible allowance for credit losses at June 30, 2020(1)(2)
$
91

 
$
32

 
 
 
 
Total due from unconsolidated affiliates – noncurrent – Sempra Mexico – IMG JV – Note due March 15, 2022, net of allowance for credit losses of $3 at June 30, 2020(2)(3)
$
603

 
$
742

 
 
 
 
Total due to various unconsolidated affiliates – current
$
(9
)
 
$
(5
)
 
 
 
 
Sempra Mexico(2):
 
 
 
TAG Pipelines Norte, S. de. R.L. de C.V.:
 
 
 
Note due December 20, 2021(4)
$
(40
)
 
$
(39
)
5.5% Note due January 9, 2024(5)
(66
)
 
—

TAG JV – 5.74% Note due December 17, 2029(5)
(161
)
 
(156
)
Total due to unconsolidated affiliates – noncurrent
$
(267
)
 
$
(195
)
SDG&E:
 
 
 
Sempra Energy
$
(164
)
 
$
(37
)
SoCalGas
—

 
(10
)
Various affiliates
(9
)
 
(6
)
Total due to unconsolidated affiliates – current
$
(173
)
 
$
(53
)
 
 
 
 
Income taxes due from Sempra Energy(6)
$
31

 
$
130

SoCalGas:
 
 
 
SDG&E
$
—

 
$
10

Various affiliates
1

 
1

Total due from unconsolidated affiliates – current
$
1

 
$
11

 
 
 
 
Sempra Energy
$
(85
)
 
$
(45
)
Pacific Enterprises
(50
)
 
—

Various affiliates
—

 
(2
)
Total due to unconsolidated affiliates – current
$
(135
)
 
$
(47
)
 
 
 
 
Income taxes due from Sempra Energy(6)
$
34

 
$
152

(1) 
Amount at June 30, 2020 includes $25 million of outstanding principal and a negligible amount of accrued interest receivable from a U.S. dollar-denominated loan from IEnova to ESJ at a variable interest rate based on 1-month LIBOR plus 196 bps (2.13% at June 30, 2020) with an amended maturity date of December 31, 2020. Pursuant to the agreement, if ESJ is unable to meet certain conditions for an expansion project by December 31, 2020, IEnova and ESJ have the option to convert the loan to a 10-year note.
(2) 
Amounts include principal balances plus accumulated interest outstanding.
(3) 
Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $614 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (7.44% at June 30, 2020), to finance construction of the natural gas marine pipeline. At June 30, 2020, $2 million of accrued interest receivable is included in Due from Unconsolidated Affiliates – Current.
(4) 
U.S. dollar-denominated loan at a variable interest rate based on 6-month LIBOR plus 290 bps (3.27% at June 30, 2020).
(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)
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenues:
 
 
 
 
 
 
 
Sempra Energy Consolidated
$
10

 
$
13

 
$
22

 
$
27

SDG&E
2

 
2

 
3

 
3

SoCalGas
20

 
17

 
38

 
34

Cost of Sales:
 
 
 
 
 
 
 
Sempra Energy Consolidated
$
15

 
$
14

 
$
26

 
$
28

SDG&E
22

 
20

 
39

 
40

SoCalGas
—

 
—

 
—

 
4
Other Income and Expense Table
Other Income (Expense), Net, on the Condensed Consolidated Statements of Operations consists of the following:
OTHER INCOME (EXPENSE), NET
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
31

 
$
23

 
$
62

 
$
44

Investment gains (losses)(1)
30

 
11

 
(7
)
 
37

Gains (losses) on interest rate and foreign exchange instruments, net
5

 
11

 
(148
)
 
24

Foreign currency transaction gains (losses), net(2)
13

 
4

 
(110
)
 
11

Non-service component of net periodic benefit (cost) credit
(23
)
 
(30
)
 
3

 
(6
)
Penalties related to billing practices OII
—

 
—

 
—

 
(8
)
Interest on regulatory balancing accounts, net
11

 
6

 
13

 
5

Sundry, net
(5
)
 
3

 
(5
)
 
3

Total
$
62

 
$
28

 
$
(192
)
 
$
110

SDG&E:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
19

 
$
15

 
$
40

 
$
27

Non-service component of net periodic benefit (cost) credit
(5
)
 
(1
)
 
3

 
8

Interest on regulatory balancing accounts, net
6

 
6

 
8

 
6

Sundry, net
(2
)
 
(1
)
 
(2
)
 
—

Total
$
18

 
$
19

 
$
49

 
$
41

SoCalGas:


 
 
 
 
 
 
Allowance for equity funds used during construction
$
10

 
$
8

 
$
18

 
$
16

Non-service component of net periodic benefit (cost) credit
(13
)
 
(4
)
 
12

 
14

Penalties related to billing practices OII
—

 
—

 
—

 
(8
)
Interest on regulatory balancing accounts, net
5

 
—

 
5

 
(1
)
Sundry, net
(4
)
 
(3
)
 
(7
)
 
(4
)
Total
$
(2
)
 
$
1

 
$
28

 
$
17

(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 Condensed Consolidated Statements of Operations.
(2) 
Includes gains of $14 million and losses of $135 million in the three months and six months ended June 30, 2020, respectively, and gains of $7 million and $17 million in the three months and six months ended June 30, 2019, 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 Condensed Consolidated Statements of Operations.
Income Tax Expense and Effective Income Tax Rates Table
We provide our calculations of ETRs in the following table.
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
 
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Income tax expense (benefit) from continuing operations
$
168

 
$
47

 
$
(39
)
 
$
89

 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
and equity earnings
$
463

 
$
286

 
$
860

 
$
787

Equity earnings, before income tax(1)
84

 
2

 
41

 
7

Pretax income
$
547

 
$
288

 
$
901

 
$
794

 
 
 
 
 
 
 
 
Effective income tax rate
31
%
 
16
 %
 
(4
)%
 
11
%
SDG&E:
 
 
 
 
 
 
 
Income tax expense
$
70

 
$
35

 
$
128

 
$
40

Income before income taxes
$
263

 
$
181

 
$
583

 
$
363

Effective income tax rate
27
%
 
19
 %
 
22
 %
 
11
%
SoCalGas:
 
 
 
 
 
 
 
Income tax expense (benefit)
$
49

 
$
(4
)
 
$
101

 
$
15

Income before income taxes
$
196

 
$
27

 
$
551

 
$
310

Effective income tax rate
25
%
 
(15
)%
 
18
 %
 
5
%

(1) 
We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.