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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation We provide our calculations of ETRs in the following table.
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
 Years ended December 31,
 202020192018
Sempra Energy Consolidated:
Income tax expense (benefit) from continuing operations$249 $315 $(49)
Income from continuing operations before income taxes and equity earnings$1,489 $1,734 $714 
Equity earnings (losses), before income tax(1)
294 30 (236)
Pretax income$1,783 $1,764 $478 
Effective income tax rate14 %18 %(10)%
SDG&E:
Income tax expense$190 $171 $173 
Income before income taxes$1,014 $945 $849 
Effective income tax rate19 %18 %20 %
SoCalGas:
Income tax expense$96 $120 $92 
Income before income taxes$601 $762 $493 
Effective income tax rate16 %16 %19 %
(1)    We discuss how we recognize equity earnings in Note 6.
We present in the table below reconciliations of net U.S. statutory federal income tax rates to our ETRs.
RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES
 Years ended December 31,
 202020192018
Sempra Energy Consolidated:   
U.S. federal statutory income tax rate21 %21 %21 %
Utility depreciation3 3 12 
Non-U.S. earnings taxed at rates different from the U.S. statutory income tax rate(1)
2 3 10 
State income taxes, net of federal income tax benefit1 2 (8)
Impairment losses1 — (32)
Effects of the TCJA— — 9 
Unrecognized income tax benefits— — 4 
Noncontrolling interests in tax equity arrangements— — 3 
Resolution of prior years’ income tax items— — (1)
Excess deferred income taxes outside of ratemaking— (4)— 
Compensation-related items(1)— 3 
Valuation allowances(1)— — 
Allowance for equity funds used during construction(1)(1)(4)
Amortization of excess deferred income taxes(1)(1)(4)
Tax credits(1)(2)(10)
Foreign exchange and inflation effects(2)
(3)4 6 
Utility self-developed software expenditures(3)(2)(7)
Utility repairs expenditures(4)(3)(13)
Other, net1 (2)1 
Effective income tax rate14 %18 %(10)%
SDG&E:   
U.S. federal statutory income tax rate21 %21 %21 %
State income taxes, net of federal income tax benefit5 6 5 
Depreciation3 3 3 
Excess deferred income taxes outside of ratemaking— (3)— 
Amortization of excess deferred income taxes(1)(1)(1)
Allowance for equity funds used during construction(2)(1)(2)
Repairs expenditures(3)(3)(3)
Self-developed software expenditures(4)(3)(2)
Other, net— (1)(1)
Effective income tax rate19 %18 %20 %
SoCalGas:   
U.S. federal statutory income tax rate21 %21 %21 %
Depreciation5 4 7 
State income taxes, net of federal income tax benefit2 4 2 
Nondeductible expenditures2 — — 
Unrecognized income tax benefits— — 4 
Compensation-related items— — 1 
Resolution of prior years’ income tax items— — (1)
Excess deferred income taxes outside of ratemaking— (5)— 
Allowance for equity funds used during construction(1)(1)(2)
Amortization of excess deferred income taxes(1)(1)(2)
Self-developed software expenditures(4)(2)(3)
Repairs expenditures(7)(4)(7)
Other, net(1)— (1)
Effective income tax rate16 %16 %19 %
(1)    Related to operations in Mexico.
(2)    Due to fluctuation of the Mexican peso against the U.S. dollar. We record income tax expense (benefit) from the transactional effects of foreign currency and inflation because of appreciation (depreciation) of the Mexican peso. We also recognize gains (losses) in Other Income, Net, on the Consolidated Statements of Operations from foreign currency derivatives that are partially hedging Sempra Mexico parent’s exposure to movements in the Mexican peso from its controlling interest in IEnova.
Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries
The table below presents the geographic components of pretax income.
PRETAX INCOME – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 Years ended December 31,
 202020192018
By geographic components:
U.S.$1,461 $1,191 $(102)
Non-U.S.322 573 580 
Total(1)
$1,783 $1,764 $478 
(1)    See the Income Tax Expense (Benefit) and Effective Income Tax Rates table above for the calculation of pretax income.
Schedule Of Components Of Income Tax Expense
The components of income tax expense are as follows.
INCOME TAX EXPENSE (BENEFIT)   
(Dollars in millions)
 Years ended December 31,
 202020192018
Sempra Energy Consolidated:   
Current:   
U.S. federal$— $— $(1)
U.S. state(22)(14)67 
Non-U.S.112 140 127 
Total90 126 193 
Deferred:   
U.S. federal157 87 (121)
U.S. state36 21 (183)
Non-U.S.(34)84 66 
Total159 192 (238)
Deferred investment tax credits— (3)(4)
Total income tax expense (benefit)$249 $315 $(49)
SDG&E:   
Current:   
U.S. federal$121 $35 $104 
U.S. state34 31 30 
Total155 66 134 
Deferred:   
U.S. federal11 75 17 
U.S. state25 32 24 
Total36 107 41 
Deferred investment tax credits(1)(2)(2)
Total income tax expense$190 $171 $173 
SoCalGas:   
Current:   
U.S. federal$163 $8 $4 
U.S. state45 24 10 
Total208 32 14 
Deferred:   
U.S. federal(85)79 78 
U.S. state(28)10 2 
Total(113)89 80 
Deferred investment tax credits1 (1)(2)
Total income tax expense$96 $120 $92 
Schedule Of Components Of Deferred Tax Assets And Liabilities
The tables below present the components of deferred income taxes:
DEFERRED INCOME TAXES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 December 31,
 20202019
Deferred income tax liabilities:  
Differences in financial and tax bases of fixed assets, investments and other assets(1)
$4,891 $4,052 
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings46 153 
Regulatory balancing accounts587 468 
Right-of-use assets – operating leases144 131 
Property taxes51 44 
Other deferred income tax liabilities40 93 
Total deferred income tax liabilities5,759 4,941 
Deferred income tax assets:  
Tax credits1,161 1,136 
Net operating losses1,299 911 
Postretirement benefits162 200 
Compensation-related items169 161 
Operating lease liabilities125 131 
Other deferred income tax assets152 72 
Accrued expenses not yet deductible130 52 
Deferred income tax assets before valuation allowances3,198 2,663 
Less: valuation allowances174 144 
Total deferred income tax assets3,024 2,519 
Net deferred income tax liability(2)
$2,735 $2,422 
(1)    In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries.
(2)    At December 31, 2020 and 2019, includes $136 million and $155 million, respectively, recorded as a noncurrent asset and $2,871 million and $2,577 million, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.

DEFERRED INCOME TAXES – SDG&E AND SOCALGAS
(Dollars in millions)
 SDG&ESoCalGas
 December 31,December 31,
 2020201920202019
Deferred income tax liabilities:    
Differences in financial and tax bases of utility plant and
other assets
$1,833 $1,735 $1,322 $1,246 
Regulatory balancing accounts224 141 362 327 
Right-of-use assets – operating leases28 32 21 22 
Property taxes34 30 17 14 
Other2 14 1 1 
Total deferred income tax liabilities2,121 1,952 1,723 1,610 
Deferred income tax assets:    
Tax credits5 6 3 3 
Postretirement benefits14 37 123 120 
Compensation-related items12 6 36 25 
Operating lease liabilities28 32 21 22 
Bad debt allowance18 3 15 1 
State income taxes8 7 11 8 
Accrued expenses not yet deductible14 9 93 15 
Other3 4 15 13 
Total deferred income tax assets102 104 317 207 
Net deferred income tax liability$2,019 $1,848 $1,406 $1,403 
Summary of Tax Credit Carryforwards
The following table summarizes our unused NOLs and tax credit carryforwards.
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
Unused amount at December 31, 2020Year expiration begins
Sempra Energy Consolidated:
U.S. federal:
NOLs(1)
$5,284 2031
General business tax credits(1)
428 2032
Foreign tax credits(2)
694 2024
U.S. state(2):
NOLs
3,047 2021
General business tax credits
39 2021
Non-U.S.(2) – NOLs
126 2021
(1)    We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.
(2)    We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below.
Summary of Operating Loss Carryforwards
The following table summarizes our unused NOLs and tax credit carryforwards.
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
Unused amount at December 31, 2020Year expiration begins
Sempra Energy Consolidated:
U.S. federal:
NOLs(1)
$5,284 2031
General business tax credits(1)
428 2032
Foreign tax credits(2)
694 2024
U.S. state(2):
NOLs
3,047 2021
General business tax credits
39 2021
Non-U.S.(2) – NOLs
126 2021
(1)    We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.
(2)    We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below.
Summary of Valuation Allowance The following table provides the valuation allowances that we recorded against a portion of our total deferred income tax assets shown above in the “Deferred Income Taxes – Sempra Energy Consolidated” table.
VALUATION ALLOWANCES
(Dollars in millions)
December 31,
20202019
Sempra Energy Consolidated:
U.S. federal
$118 $90 
U.S. state
32 33 
Non-U.S.
24 21 
$174 $144 
Summary of Income Tax Contingencies
Following is a reconciliation of the changes in unrecognized income tax benefits and the potential effect on our ETR for the years ended December 31:
RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 202020192018
Sempra Energy Consolidated:   
Balance at January 1$93 $119 $89 
Increase in prior period tax positions3 5 7 
Decrease in prior period tax positions(1)— (1)
Increase in current period tax positions4 2 24 
Settlements with taxing authorities— (32)— 
Expiration of statutes of limitations— (1)— 
Balance at December 31$99 $93 $119 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
   
decrease the effective tax rate(1)
$(87)$(81)$(107)
increase the effective tax rate(1)
31 27 24 
SDG&E:   
Balance at January 1$12 $11 $10 
Increase in prior period tax positions1 1 1 
Balance at December 31$13 $12 $11 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
   
decrease the effective tax rate(1)
$(10)$(9)$(9)
increase the effective tax rate(1)
1 1 1 
SoCalGas:   
Balance at January 1$64 $61 $35 
Increase in prior period tax positions1 1 2 
Increase in current period tax positions3 2 24 
Balance at December 31$68 $64 $61 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
   
decrease the effective tax rate(1)
$(59)$(55)$(51)
increase the effective tax rate(1)
30 26 23 
(1)    Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above.
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible
It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following:
POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
 At December 31,
 202020192018
Sempra Energy Consolidated:   
Expiration of statutes of limitations on tax assessments$— $— $(1)
Potential resolution of audit issues with various U.S. federal, state and local
and non-U.S. taxing authorities
(8)(8)(40)
 $(8)$(8)$(41)
SDG&E:   
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
$(6)$(6)$(6)
SoCalGas:   
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
$(2)$(2)$(2)