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GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)
 6 Months Ended
Jun. 30, 2021
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’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra’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,
 20212020
Cash and cash equivalents$335 $960 
Restricted cash, current33 22 
Restricted cash, noncurrent3 3 
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows$371 $985 
Accounts Receivable, Allowance for Credit Loss Table
TRADE AND OTHER ACCOUNTS RECEIVABLE – ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
20212020
Sempra:
Allowances for credit losses at January 1$138 $29 
Incremental allowance upon adoption of ASU 2016-13— 1 
Provisions for expected credit losses66 21 
Write-offs (12)(7)
Allowances for credit losses at June 30(1)
$192 $44 
SDG&E:
Allowances for credit losses at January 1$69 $14 
Provisions for expected credit losses13 9 
Write-offs(7)(4)
Allowances for credit losses at June 30(2)
$75 $19 
SoCalGas:
Allowances for credit losses at January 1$68 $15 
Provisions for expected credit losses52 12 
Write-offs(5)(3)
Allowances for credit losses at June 30(3)
$115 $24 
(1)    At June 30, 2021, includes $153 million in Accounts Receivable – Trade, Net and $39 million in Accounts Receivable – Other, Net.
(2)    At June 30, 2021, includes $60 million in Accounts Receivable – Trade, Net and $15 million in Accounts Receivable – Other, Net.
(3)    At June 30, 2021, includes $91 million in Accounts Receivable – Trade, Net and $24 million in Accounts Receivable – Other, Net.
Financing Receivable, Allowance for Credit Loss
AMOUNTS DUE FROM UNCONSOLIDATED AFFILIATES – ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
Sempra
20212020
Allowances for credit losses at January 1$3 $— 
Allowance established upon adoption of ASU 2016-13— 6 
Provisions for expected credit losses(2)(3)
Allowances for credit losses at June 30(1)
$1 $3 
(1)    At June 30, 2021, $1 million is included in Due from Unconsolidated Affiliates – Noncurrent.
Inventory Table
The components of inventories are as follows:
INVENTORY BALANCES
(Dollars in millions)
 Natural gasLNGMaterials and suppliesTotal
 June 30, 2021 December 31, 2020June 30, 2021 December 31, 2020June 30, 2021 December 31, 2020June 30, 2021 December 31, 2020
Sempra$139 $118 $13 $7 $187 $183 $339 $308 
SDG&E— — — — 109 104 109 104 
SoCalGas62 94 — — 64 59 126 153 
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,
 2021202020212020
Sempra$55 $50 $114 $98 
SDG&E28 26 58 53 
SoCalGas15 14 31 25 
Schedule of Finite-Lived Intangible Assets Other Intangible Assets included on Sempra’s Condensed Consolidated Balance Sheets are as follows:
OTHER INTANGIBLE ASSETS
(Dollars in millions)
Amortization period (years)June 30,
2021		December 31,
2020
Renewable energy transmission and consumption permits
15 to 19
$169 $169 
O&M agreement2366 66 
PPA14190 — 
Other
10 to indefinite
15 15 
440 250 
Less accumulated amortization:
Renewable energy transmission and consumption permits(37)(32)
O&M agreement(10)(9)
PPA(3)— 
Other(8)(7)
(58)(48)
$382 $202 
Net Periodic Benefit Cost Table
The following three tables provide the components of net periodic benefit cost.
NET PERIODIC BENEFIT COST – SEMPRA
(Dollars in millions)
 Pension benefitsOther postretirement benefits
 Three months ended June 30,
 2021202020212020
Service cost$36 $33 $5 $4 
Interest cost28 33 7 8 
Expected return on assets(43)(43)(15)(14)
Amortization of:  
Prior service cost 2 3 — — 
Actuarial loss (gain)11 8 (2)(2)
Settlement charges— 4 — — 
Net periodic benefit cost (credit)34 38 (5)(4)
Regulatory adjustments22 22 5 4 
Total expense recognized$56 $60 $— $— 
 Six months ended June 30,
 2021202020212020
Service cost$73 $66 $11 $9 
Interest cost56 65 14 16 
Expected return on assets(86)(85)(30)(27)
Amortization of:    
Prior service cost (credit)5 6 (1)(1)
Actuarial loss (gain)22 17 (4)(5)
Settlement charges7 9 — — 
Net periodic benefit cost (credit)77 78 (10)(8)
Regulatory adjustments(7)(6)10 8 
Total expense recognized$70 $72 $— $— 
NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 Pension benefitsOther postretirement benefits
 Three months ended June 30,
 2021202020212020
Service cost$9 $8 $1 $1 
Interest cost6 8 2 1 
Expected return on assets(13)(12)(3)(2)
Amortization of:  
Actuarial loss (gain)1 1 (1)— 
Net periodic benefit cost (credit)3 5 (1)— 
Regulatory adjustments11 9 1 — 
Total expense recognized$14 $14 $— $— 
 Six months ended June 30,
 2021202020212020
Service cost$17 $16 $2 $2 
Interest cost12 15 3 3 
Expected return on assets(25)(25)(5)(5)
Amortization of:  
Prior service cost— 1 — — 
Actuarial loss (gain)1 2 (1)(1)
Net periodic benefit cost (credit)5 9 (1)(1)
Regulatory adjustments9 6 1 1 
Total expense recognized$14 $15 $— $— 

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 Pension benefitsOther postretirement benefits
 Three months ended June 30,
 2021202020212020
Service cost$25 $22 $4 $4 
Interest cost20 22 6 6 
Expected return on assets(30)(27)(12)(11)
Amortization of:  
Prior service cost (credit)2 2 — (1)
Actuarial loss (gain)10 7 (2)(2)
Net periodic benefit cost (credit)27 26 (4)(4)
Regulatory adjustments11 13 4 4 
Total expense recognized$38 $39 $— $— 
 Six months ended June 30,
 2021202020212020
Service cost$50 $44 $8 $7 
Interest cost40 44 11 12 
Expected return on assets(58)(54)(24)(21)
Amortization of:   
Prior service cost (credit)4 4 (1)(1)
Actuarial loss (gain)19 13 (3)(4)
Net periodic benefit cost (credit)55 51 (9)(7)
Regulatory adjustments(16)(12)9 7 
Total expense recognized$39 $39 $— $— 
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,
 2021202020212020
Numerator for continuing operations:    
Income from continuing operations, net of income tax$455 $528 $1,383 $1,395 
Earnings attributable to noncontrolling interests(10)(26)(43)(169)
Preferred dividends(20)(37)(41)(73)
Preferred dividends of subsidiary
(1)(1)(1)(1)
Earnings from continuing operations attributable to common shares for basic EPS
424 464 1,298 1,152 
Add back dividends for dilutive mandatory convertible preferred stock(1)
— — — 52 
Earnings from continuing operations attributable to common shares for diluted EPS
$424 $464 $1,298 $1,204 
Numerator for discontinued operations:
Income from discontinued operations, net of income tax$— $1,777 $— $1,857 
Earnings attributable to noncontrolling interests— (2)— (10)
Earnings from discontinued operations attributable to common shares$— $1,775 $— $1,847 
Numerator for earnings:
Earnings attributable to common shares for basic EPS
$424 $2,239 $1,298 $2,999 
Add back dividends for dilutive mandatory convertible preferred stock(1)
— — — 52 
Earnings attributable to common shares for diluted EPS$424 $2,239 $1,298 $3,051 
Denominator:    
Weighted-average common shares outstanding for basic EPS(2)
307,800 293,060 304,372 292,925 
Dilutive effect of stock options and RSUs(3)
807 1,095 846 1,199 
Dilutive effect of mandatory convertible preferred stock— — 1,066 13,838 
Weighted-average common shares outstanding for diluted EPS308,607 294,155 306,284 307,962 
Basic EPS:
Earnings from continuing operations
$1.38 $1.58 $4.27 $3.93 
Earnings from discontinued operations$— $6.06 $— $6.31 
Earnings$1.38 $7.64 $4.27 $10.24 
Diluted EPS:    
Earnings from continuing operations
$1.37 $1.58 $4.24 $3.91 
Earnings from discontinued operations$— $6.03 $— $6.00 
Earnings$1.37 $7.61 $4.24 $9.91 
(1)    In the six months ended June 30, 2020, due to the dilutive effect of the series A preferred stock, the numerator used to calculate diluted EPS included an add-back of dividends declared on our series A preferred stock.
(2)    Includes 447 and 530 fully vested RSUs held in our Deferred Compensation Plan for the three months ended June 30, 2021 and 2020, respectively, and 454 and 536 of such RSUs for the six months ended June 30, 2021 and 2020, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued.
(3)    Due to market fluctuations of both Sempra common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period.
Schedule of Accumulated Other Comprehensive Income (Loss) Table The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
(Dollars in millions)
 Foreign
currency
translation
adjustments		Financial
instruments		Pension
and other
postretirement
benefits		Total
accumulated other
comprehensive
income (loss)
 Three months ended June 30, 2021 and 2020
Sempra(2):
Balance at March 31, 2021$(69)$(239)$(91)$(399)
OCI before reclassifications(19)(36)(2)(57)
Amounts reclassified from AOCI— 10 2 12 
Net OCI(3)
(19)(26)— (45)
Balance at June 30, 2021$(88)$(265)$(91)$(444)
   
Balance at March 31, 2020$(745)$(350)$(95)$(1,190)
OCI before reclassifications(4)
17 (13)(14)(10)
Amounts reclassified from AOCI(4)
645 2 11 658 
Net OCI662 (11)(3)648 
Balance at June 30, 2020$(83)$(361)$(98)$(542)
SDG&E:
Balance at March 31, 2021 and June 30, 2021$(10)$(10)
Balance at March 31, 2020$(16)$(16)
Amounts reclassified from AOCI(4)
4 4 
Net OCI4 4 
Balance at June 30, 2020$(12)$(12)
SoCalGas:
Balance at March 31, 2021$(13)$(18)$(31)
Amounts reclassified from AOCI— 1 1 
Net OCI— 1 1 
Balance at June 30, 2021$(13)$(17)$(30)
Balance at March 31, 2020$(13)$(10)$(23)
Amounts reclassified from AOCI
— 1 1 
Net OCI— 1 1 
Balance at June 30, 2020$(13)$(9)$(22)
(1)    All amounts are net of income tax, if subject to tax, and exclude NCI.
(2)    Includes discontinued operations in 2020.
(3)    Total AOCI includes $24 million of foreign currency translation adjustments and $14 million of financial instruments associated with the IEnova exchange offer, which we discuss below in “Other Noncontrolling Interests – Sempra Mexico,” and which does not impact the Condensed Consolidated Statement of Comprehensive Income (Loss).
(4)    Pension and Other Postretirement Benefits and Total AOCI include $3 million in transfers of liabilities from SDG&E to Sempra in 2020 related to the nonqualified pension plans.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (CONTINUED)
(Dollars in millions)
 Foreign
currency
translation
adjustments		Financial
instruments		Pension
and other
postretirement
benefits		Total
accumulated other
comprehensive
income (loss)
 Six months ended June 30, 2021 and 2020
Sempra(2):
Balance as of December 31, 2020$(64)$(331)$(105)$(500)
OCI before reclassifications(24)37 5 18 
Amounts reclassified from AOCI— 29 9 38 
Net OCI(3)
(24)66 14 56 
Balance as of June 30, 2021$(88)$(265)$(91)$(444)
   
Balance as of December 31, 2019$(607)$(215)$(117)$(939)
OCI before reclassifications(4)
(121)(167)2 (286)
Amounts reclassified from AOCI(4)
645 21 17 683 
Net OCI524 (146)19 397 
Balance as of June 30, 2020$(83)$(361)$(98)$(542)
SDG&E:
Balance at December 31, 2020 and June 30, 2021$(10)$(10)
Balance as of December 31, 2019$(16)$(16)
Amounts reclassified from AOCI(4)
4 4 
Net OCI4 4 
Balance as of June 30, 2020$(12)$(12)
SoCalGas:
Balance as of December 31, 2020$(13)$(18)$(31)
Amounts reclassified from AOCI— 1 1 
Net OCI— 1 1 
Balance as of June 30, 2021$(13)$(17)$(30)
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)
(1)    All amounts are net of income tax, if subject to tax, and exclude NCI.
(2)    Includes discontinued operations in 2020.
(3)    Total AOCI includes $24 million of foreign currency translation adjustments and $14 million of financial instruments associated with the IEnova exchange offer, which we discuss below in “Other Noncontrolling Interests – Sempra Mexico,” and which does not impact the Condensed Consolidated Statement of Comprehensive Income (Loss).
(4)    Pension and Other Postretirement Benefits and Total AOCI include $3 million in transfers of liabilities from SDG&E to Sempra in 2020 related to the nonqualified pension plans.
Reclassifications out of AOCI Table
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated other
comprehensive income (loss) components		Amounts reclassified
from accumulated other
comprehensive income (loss)		 Affected line item on Condensed
Consolidated Statements of Operations
 Three months ended June 30,  
 20212020 
Sempra:   
Foreign currency translation adjustments$— $645 
Income from Discontinued Operations, Net of
Income Tax
Financial instruments:   
Interest rate instruments
$(1)$1 Interest Expense
Interest rate instruments
19 1 
Equity Earnings(1)
Foreign exchange instruments— 1 
Other Income (Expense), Net
Interest rate and foreign exchange instruments— 1 Interest Expense
(7)(4)
Other Income (Expense), Net
Total before income tax11 —  
 (1)— Income Tax (Expense) Benefit
Net of income tax10 —  
 — 2 Earnings Attributable to Noncontrolling Interests
 $10 $2  
Pension and other postretirement benefits(2):
   
Amortization of actuarial loss$1 $1 Other Income (Expense), Net
Amortization of actuarial loss— 6 
Income from Discontinued Operations, Net of
Income Tax
Amortization of prior service cost1 1 Other Income (Expense), Net
Settlement charges— 4 Other Income (Expense), Net
Total before income tax2 12 
— (2)
Income from Discontinued Operations, Net of
Income Tax
 — (2)Income Tax (Expense) Benefit
Net of income tax$2 $8  
Total reclassifications for the period, net of tax$12 $655  
SDG&E:   
Pension and other postretirement benefits(2):
Amortization of prior service cost$— $1 Other Income, Net
Total reclassifications for the period, net of tax$— $1  
SoCalGas:   
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 $1 
(1)    Equity earnings at Sempra Mexico are recognized after tax.
(2)    Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)
(Dollars in millions)
Details about accumulated other
comprehensive income (loss) components		Amounts reclassified
from accumulated other
comprehensive income (loss)		Affected line item on Condensed
Consolidated Statements of Operations
Six months ended June 30,
20212020
Sempra:
Foreign currency translation adjustments$— $645 
Income from Discontinued Operations,
Net of Income Tax
Financial instruments:
Interest rate instruments$1 $3 Interest Expense
Interest rate instruments38 3 
Equity Earnings(1)
Foreign exchange instruments1 (2)Revenues: Energy-Related Businesses
— (1)Other Income (Expense), Net
Foreign exchange instruments1 (2)
Equity Earnings(1)
Interest rate and foreign exchange instruments— 1 Interest Expense
(1)37 Other Income (Expense), Net
Total before income tax40 39 
(9)(12)Income Tax (Expense) Benefit
Net of income tax31 27 
(2)(6)Earnings Attributable to Noncontrolling Interests
$29 $21 
Pension and other postretirement benefits(2):
  
Amortization of actuarial loss$3 $3 Other Income (Expense), Net
Amortization of actuarial loss— 6 
Income from Discontinued Operations,
Net of Income Tax
Amortization of prior service cost2 2 Other Income (Expense), Net
Settlement charges7 9 Other Income (Expense), Net
Total before income tax12 20 
— (2)
Income from Discontinued Operations,
Net of Income Tax
(3)(4)Income Tax (Expense) Benefit
Net of income tax$9 $14 
Total reclassifications for the period, net of tax$38 $680 
SDG&E:  
Pension and other postretirement benefits(2):
Amortization of prior service cost$— $1 Other Income, Net
Total reclassifications for the period, net of tax$— $1  
SoCalGas:   
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 
(1)    Equity earnings at Sempra Mexico are recognized after tax.
(2)    Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).
Schedule of Conversions of Stock These adjustments, which resulted from the incremental impact of our second quarter dividend declared on our common stock and which became effective as of July 6, 2021, the ex-dividend date for such dividend, included adjustments to the minimum and maximum conversion rates and the related initial and threshold appreciation prices as shown in the following table:
CONVERSION RATES
Applicable market value per share of
our common stock		Conversion rate (number of shares of our common stock to be received upon
conversion of each share of series B preferred stock)
Greater than $135.0804 (which is the adjusted threshold appreciation price)
0.7403 shares (equal to $100.00 divided by the adjusted threshold appreciation price)
Equal to or less than $135.0804 but greater than or equal to $112.5746
Between 0.7403 and 0.8883 shares, determined by dividing $100.00 by the applicable market value of our common stock
Less than $112.5746 (which is the adjusted initial price)
0.8883 shares (equal to $100.00 divided by the adjusted initial price)
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’s Condensed Consolidated Balance Sheets.
OTHER NONCONTROLLING INTERESTS
(Dollars in millions) 
 Percent ownership held by noncontrolling interests Equity held by
noncontrolling interests
 June 30,
2021		December 31,
2020		June 30,
2021		December 31,
2020
Sempra Mexico:    
IEnova3.6 %29.8 %$184 $1,487 
ICM Ventures Holdings B.V.17.5 17.5 6 7 
Sempra LNG:
ECA LNG Phase 118.1 29.0 31 46 
Parent and other:
PXiSE Energy Solutions, LLC20.0 20.0 — 1 
Total Sempra  $221 $1,541 
Transactions with Affiliates Table
We summarize amounts due from and to unconsolidated affiliates at Sempra, SDG&E and SoCalGas in the following table.
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
 June 30,
2021		December 31,
2020
Sempra:  
Total due from various unconsolidated affiliates – current$11 $20 
Sempra Mexico(1):
ESJ – Note due December 31, 2022, net of negligible allowance for credit losses at December 31, 2020(2)
$— $85 
IMG JV – Note due March 15, 2022, net of allowance for credit losses of $1 and $3 at
June 30, 2021 and December 31, 2020, respectively(3)
702 695 
Total due from unconsolidated affiliates – noncurrent$702 $780 
Sempra Mexico – TAG Pipelines Norte, S. de. R.L. de C.V. – Note due December 20, 2021(1)(4)
$(42)$(41)
Various affiliates— (4)
Total due to various unconsolidated affiliates – current$(42)$(45)
Sempra Mexico(1)(5):
TAG Pipelines Norte, S. de. R.L. de C.V.:
5.5% Note due January 9, 2024
$(70)$(68)
5.5% Note due January 14, 2025
(21)— 
TAG JV – 5.74% Note due December 17, 2029
(171)(166)
Total due to unconsolidated affiliates – noncurrent$(262)$(234)
SDG&E:  
Sempra $(22)$(38)
SoCalGas(12)(21)
Various affiliates(10)(5)
Total due to unconsolidated affiliates – current$(44)$(64)
Income taxes due from Sempra(6)
$21 $— 
SoCalGas:  
SDG&E$12 $21 
Various affiliates1 1 
Total due from unconsolidated affiliates – current$13 $22 
Sempra $(36)$(31)
Pacific Enterprises(25)— 
Total due to unconsolidated affiliates – current$(61)$(31)
Income taxes due to Sempra(6)
$(39)$(37)
(1)    Amounts include principal balances plus accumulated interest outstanding.
(2)    U.S. dollar-denominated loan at a variable interest rate based on 1-month LIBOR plus 196 bps (2.11% at December 31, 2020). At December 31, 2020, $1 million of accrued interest receivable is included in Due from Unconsolidated Affiliates – Current. In March 2021, IEnova acquired the 50% equity interest in ESJ that it did not already own and ESJ became a wholly owned, consolidated subsidiary, resulting in the elimination of this note receivable.
(3)    Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $711 million U.S. dollar-equivalent at June 30, 2021, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (6.79% at June 30, 2021), to finance construction of a natural gas marine pipeline. At both June 30, 2021 and December 31, 2020, $2 million of accrued interest receivable is included in Due from Unconsolidated Affiliates – Current. At June 30, 2021, we classified this revolving line of credit as noncurrent because we expect to extend the maturity date on a long-term basis prior to its stated maturity date.
(4)    U.S. dollar-denominated loan at a variable interest rate based on 6-month LIBOR plus 290 bps (3.06% at June 30, 2021).
(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 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 income statement information from unconsolidated affiliates.
INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES  
(Dollars in millions)  
 Three months ended June 30,Six months ended June 30,
 2021202020212020
Sempra:    
Revenues$7 $10 $15 $22 
Cost of sales— 15 11 26 
Interest income12 15 27 32 
Interest expense3 4 7 7 
SDG&E:    
Revenues$2 $2 $4 $3 
Cost of sales27 22 55 39 
SoCalGas:
Revenues$23 $20 $48 $38 
Cost of sales— — 3 — 
Other Income and Expense Table
Other income (expense), net, consists of the following:
OTHER INCOME (EXPENSE), NET   
(Dollars in millions)   
 Three months ended June 30,Six months ended June 30,
 2021202020212020
Sempra:    
Allowance for equity funds used during construction$34 $31 $72 $62 
Investment gains (losses)(1)
19 30 28 (7)
Gains (losses) on interest rate and foreign exchange instruments, net7 5 (23)(148)
Foreign currency transaction gains (losses), net(2)
26 13 7 (110)
Non-service component of net periodic benefit (cost) credit(15)(23)14 3 
Interest on regulatory balancing accounts, net2 11 3 13 
Sundry, net(1)(5)6 (5)
Total$72 $62 $107 $(192)
SDG&E:    
Allowance for equity funds used during construction$22 $19 $45 $40 
Non-service component of net periodic benefit (cost) credit
(4)(5)5 3 
Interest on regulatory balancing accounts, net2 6 3 8 
Sundry, net2 (2)4 (2)
Total$22 $18 $57 $49 
SoCalGas:   
Allowance for equity funds used during construction$11 $10 $23 $18 
Non-service component of net periodic benefit (cost) credit
(9)(13)19 12 
Interest on regulatory balancing accounts, net— 5 — 5 
Sundry, net(4)(4)(5)(7)
Total$(2)$(2)$37 $28 
(1)    Represents investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are 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 $28 million and $5 million in the three months and six months ended June 30, 2021, respectively, and gains of $14 million and losses of $135 million in the three months and six months ended June 30, 2020, 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,
2021202020212020
Sempra:
Income tax expense (benefit) from continuing operations$139 $168 $297 $(39)
Income from continuing operations before income taxes
and equity earnings
$281 $463 $1,049 $860 
Equity earnings, before income tax(1)
185 84 320 41 
Pretax income$466 $547 $1,369 $901 
Effective income tax rate30 %31 %22 %(4)%
SDG&E:
Income tax expense$33 $70 $78 $128 
Income before income taxes$219 $263 $476 $583 
Effective income tax rate15 %27 %16 %22 %
SoCalGas:
Income tax expense
$8 $49 $102 $101 
Income before income taxes
$103 $196 $604 $551 
Effective income tax rate8 %25 %17 %18 %
(1)    We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.