INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2020		2019
Sempra Texas Utilities:
Oncor Holdings(1)	100	%	100	%	$	12,440	$	11,519
Sempra Texas Utilities:
Sharyland Holdings(2)	50		50		$	102	$	100
Sempra Mexico:
ESJ(3)	50		50		34		39
IMG JV(4)	40		40		440		337
TAG JV(5)	50		50		378		365
Sempra LNG:
Cameron LNG JV(6)	50.2		50.2		433		1,256
Total other equity method investments					1,387		2,097
Other					1		6
Total other investments					$	1,388	$	2,103

(1) The carrying value of our equity method investment is $2,833 million and $2,823 million higher than the underlying equity in the net assets of the investee at December 31, 2020 and 2019, respectively, due to $2,868 million of equity method goodwill and $69 million in basis differences in AOCI, offset by $104 million at December 31, 2020 and $114 million at December 31, 2019 due to a tax sharing liability to TTI under a 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 is $259 million and $263 million higher than the underlying equity in the net assets of the investee at December 31, 2020 and 2019, 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,
	2020		2019		2018
EARNINGS (LOSSES) RECORDED BEFORE INCOME TAX(1):
Sempra Texas Utilities:
Sharyland Holdings	$	3	$	2	$	—
Sempra LNG:
Cameron LNG JV	391		24		—
Sempra Renewables:
Wind:
Auwahi Wind	—		—		3
Broken Bow 2 Wind	—		—		(2)
Cedar Creek 2 Wind	—		—		(1)
Flat Ridge 2 Wind(2)	—		(3)		(178)
Fowler Ridge 2 Wind	—		5		3
Mehoopany Wind(2)	—		1		(30)
Solar:
California solar partnership	—		—		8
Copper Mountain Solar 2	—		—		5
Copper Mountain Solar 3	—		—		8
Mesquite Solar 1	—		—		18
Other	—		2		(3)
Parent and other:
RBS Sempra Commodities(2)	(100)		—		(67)
Other	—		(1)		—
	294		30		(236)
EARNINGS RECORDED NET OF INCOME TAX:
Sempra Texas Utilities:
Oncor Holdings	577		526		371
Sempra Mexico:
ESJ	5		2		2
IMG JV	103		9		29
TAG JV	36		13		9
	721		550		411
Total	$	1,015	$	580	$	175

(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,
	2020		2019		2018
Sempra Texas Utilities	$	286	$	246	$	149
Sempra Mexico	8		2		—
Sempra LNG	1,168		—		—
Sempra Renewables	—		1		63
Parent and other	—		7		—
Total	$	1,462	$	256	$	212

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,				March 9 - December 31,
	2020		2019		2018
Operating revenues	$	4,511	$	4,347	$	3,347
Operating expense	(3,224)		(3,135)		(2,434)
Income from operations	1,287		1,212		913
Interest expense	(405)		(375)		(285)
Income tax expense	(146)		(131)		(119)
Net income	703		643		455
Noncontrolling interest held by TTI	(141)		(129)		(94)
Earnings attributable to Sempra Energy	562		514		360

			At December 31,
			2020		2019
Current assets			$	1,045	$	913
Noncurrent assets			28,022		26,012
Current liabilities			1,120		1,626
Noncurrent liabilities			15,611		14,125
Noncontrolling interest held by TTI			2,737		2,473

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,
	2020		2019(1)		2018(2)
Gross revenues	$	2,341	$	798	$	706
Operating expense	(706)		(372)		(609)
Income from operations	1,635		426		97
Interest expense	(514)		(401)		(322)
Net income (loss)/Earnings (losses)(3)	1,132		85		(36)


	At December 31,
	2020		2019(1)
Current assets	$	1,035	$	1,124
Noncurrent assets	15,304		15,039
Current liabilities	1,342		1,232
Noncurrent liabilities	12,863		11,438

(1) On April 22, 2019, Sempra Renewables sold its remaining wind assets and investments. 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. As of December 13, 2018, the solar equity method investments and Broken Bow 2 are no longer equity method investments.

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