DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity Derivative Volumes Table

The following table summarizes net energy derivative volumes.

NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
Commodity	Unit of measure	June 30, 2021	December 31, 2020
Sempra:
Natural gas	MMBtu	(34)	5
Electricity	MWh	1	1
Congestion revenue rights	MWh	43	43
SDG&E:
Natural gas	MMBtu	14	16
Electricity	MWh	1	1
Congestion revenue rights	MWh	43	43
SoCalGas:
Natural gas	MMBtu	—	1

Notional Amounts of Derivatives Table

The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.

INTEREST RATE DERIVATIVES
(Dollars in millions)
	June 30, 2021			December 31, 2020
	Notional debt		Maturities	Notional debt		Maturities
Sempra:
Cash flow hedges	$	763	2021-2034	$	1,486	2021-2034

The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.

FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	June 30, 2021			December 31, 2020
	Notional amount		Maturities	Notional amount		Maturities
Sempra:
Cross-currency swaps	$	306	2021-2023	$	306	2021-2023
Other foreign currency derivatives	64		2021-2022	1,764		2021-2022

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset because the cash collateral was in excess of liability positions.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	June 30, 2021
	Other current assets(1)		Other long-term assets		Other current liabilities		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments	$	—	$	5	$	(25)	$	(158)
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	125		19		(153)		(23)
Associated offsetting commodity contracts	(122)		(18)		122		18
Commodity contracts subject to rate recovery	57		77		(21)		(12)
Associated offsetting commodity contracts	(8)		(1)		8		1
Net amounts presented on the balance sheet	52		82		(69)		(174)
Additional cash collateral for commodity contracts not subject to rate recovery	59		—		—		—
Additional cash collateral for commodity contracts subject to rate recovery	27		—		—		—
Total(2)	$	138	$	82	$	(69)	$	(174)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	48	$	77	$	(15)	$	(10)
Associated offsetting commodity contracts	(8)		(1)		8		1
Net amounts presented on the balance sheet	40		76		(7)		(9)
Additional cash collateral for commodity contracts subject to rate recovery	26		—		—		—
Total(2)	$	66	$	76	$	(7)	$	(9)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	9	$	—	$	(6)	$	(2)
Net amounts presented on the balance sheet	9		—		(6)		(2)
Additional cash collateral for commodity contracts subject to rate recovery	1		—		—		—
Total	$	10	$	—	$	(6)	$	(2)

(1)    Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.

(2)    Normal purchase contracts previously measured at fair value are excluded.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2020
	Other current assets(1)		Other long-term assets		Other current liabilities		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments	$	—	$	1	$	(26)	$	(160)
Derivatives not designated as hedging instruments:
Foreign exchange instruments	24		—		—		—
Commodity contracts not subject to rate recovery	82		17		(95)		(16)
Associated offsetting commodity contracts	(82)		(13)		82		13
Commodity contracts subject to rate recovery	35		95		(35)		(25)
Associated offsetting commodity contracts	(2)		—		2		—
Net amounts presented on the balance sheet	57		100		(72)		(188)
Additional cash collateral for commodity contracts not subject to rate recovery	21		—		—		—
Additional cash collateral for commodity contracts subject to rate recovery	30		—		—		—
Total(2)	$	108	$	100	$	(72)	$	(188)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	32	$	95	$	(28)	$	(25)
Associated offsetting commodity contracts	(1)		—		1		—
Net amounts presented on the balance sheet	31		95		(27)		(25)
Additional cash collateral for commodity contracts subject to rate recovery	24		—		—		—
Total(2)	$	55	$	95	$	(27)	$	(25)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	3	$	—	$	(7)	$	—
Associated offsetting commodity contracts	(1)		—		1		—
Net amounts presented on the balance sheet	2		—		(6)		—
Additional cash collateral for commodity contracts subject to rate recovery	6		—		—		—
Total	$	8	$	—	$	(6)	$	—

(1)    Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.

(2)    Normal purchase contracts previously measured at fair value are excluded.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table

The following table includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI.

CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax (loss) gain recognized in OCI					Pretax gain (loss) reclassified from AOCI into earnings
	Three months ended June 30,					Three months ended June 30,
	2021		2020		Location	2021		2020
Sempra:
Interest rate instruments	$	(6)	$	(3)	Interest Expense	$	1	$	(1)
Interest rate instruments	(32)		(15)		Equity Earnings(1)	(19)		(1)
Foreign exchange instruments	(1)		(5)		Revenues: Energy-       Related Businesses	—		—
					Other Income (Expense), Net	—		(1)
Foreign exchange instruments	(1)		(3)		Equity Earnings(1)	—		—
Interest rate and foreign exchange instruments	7		8		Interest Expense	—		(1)
					Other Income (Expense), Net	7		4
Total	$	(33)	$	(18)		$	(11)	$	—
	Six months ended June 30,					Six months ended June 30,
	2021		2020		Location	2021		2020
Sempra:
Interest rate instruments	$	20	$	(50)	Interest Expense	$	(1)	$	(3)
Interest rate instruments	51		(200)		Equity Earnings(1)	(38)		(3)
Foreign exchange instruments	2		16		Revenues: Energy-       Related Businesses	(1)		2
					Other Income (Expense), Net	—		1
Foreign exchange instruments	2		10		Equity Earnings(1)	(1)		2
Interest rate and foreign exchange instruments	1		(37)		Interest Expense	—		(1)
					Other Income (Expense), Net	1		(37)
Total	$	76	$	(261)		$	(40)	$	(39)

(1)    Equity earnings at Sempra Mexico are recognized after tax.

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.

UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax (loss) gain on derivatives recognized in earnings
		Three months ended June 30,				Six months ended June 30,
	Location	2021		2020		2021		2020
Sempra:
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	$	(142)	$	13	$	(190)	$	64
Commodity contracts subject to rate recovery	Cost of Natural Gas	—		(3)		2		(6)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	41		9		43		—
Foreign exchange instruments	Other Income (Expense), Net	—		2		(24)		(112)
Total		$	(101)	$	21	$	(169)	$	(54)
SDG&E:
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	$	41	$	9	$	43	$	—
SoCalGas:
Commodity contracts subject to rate recovery	Cost of Natural Gas	$	—	$	(3)	$	2	$	(6)