REVENUES

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUES

REVENUES

We discuss revenue recognition for revenues from contracts with customers and from sources other than contracts with customers in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report.

The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time.

DISAGGREGATED REVENUES
(Dollars in millions)
	SDG&E		SoCalGas		Sempra Infrastructure		Consolidating adjustments and Parent and other		Sempra
	Three months ended June 30, 2022
By major service line:
Utilities	$	1,250	$	1,347	$	20	$	(27)	$	2,590
Energy-related businesses	—		—		457		(14)		443
Revenues from contracts with customers	$	1,250	$	1,347	$	477	$	(41)	$	3,033
By market:
Gas	$	159	$	1,347	$	340	$	(19)	$	1,827
Electric	1,091		—		137		(22)		1,206
Revenues from contracts with customers	$	1,250	$	1,347	$	477	$	(41)	$	3,033
Revenues from contracts with customers	$	1,250	$	1,347	$	477	$	(41)	$	3,033
Utilities regulatory revenues	149		154		—		—		303
Other revenues	—		—		212		(1)		211
Total revenues	$	1,399	$	1,501	$	689	$	(42)	$	3,547
	Six months ended June 30, 2022
By major service line:
Utilities	$	2,751	$	3,259	$	48	$	(56)	$	6,002
Energy-related businesses	—		—		749		(29)		720
Revenues from contracts with customers	$	2,751	$	3,259	$	797	$	(85)	$	6,722
By market:
Gas	$	489	$	3,259	$	569	$	(45)	$	4,272
Electric	2,262		—		228		(40)		2,450
Revenues from contracts with customers	$	2,751	$	3,259	$	797	$	(85)	$	6,722
Revenues from contracts with customers	$	2,751	$	3,259	$	797	$	(85)	$	6,722
Utilities regulatory revenues	93		235		—		—		328
Other revenues	—		—		316		1		317
Total revenues	$	2,844	$	3,494	$	1,113	$	(84)	$	7,367

DISAGGREGATED REVENUES (CONTINUED)
(Dollars in millions)
	SDG&E		SoCalGas		Sempra Infrastructure		Consolidating adjustments and Parent and other		Sempra
	Three months ended June 30, 2021
By major service line:
Utilities	$	1,170	$	1,062	$	17	$	(25)	$	2,224
Energy-related businesses	—		—		260		(14)		246
Revenues from contracts with customers	$	1,170	$	1,062	$	277	$	(39)	$	2,470
By market:
Gas	$	162	$	1,062	$	185	$	(24)	$	1,385
Electric	1,008		—		92		(15)		1,085
Revenues from contracts with customers	$	1,170	$	1,062	$	277	$	(39)	$	2,470
Revenues from contracts with customers	$	1,170	$	1,062	$	277	$	(39)	$	2,470
Utilities regulatory revenues	148		62		—		—		210
Other revenues	—		—		64		(3)		61
Total revenues	$	1,318	$	1,124	$	341	$	(42)	$	2,741
	Six months ended June 30, 2021
By major service line:
Utilities	$	2,386	$	2,719	$	44	$	(52)	$	5,097
Energy-related businesses	—		—		529		(15)		514
Revenues from contracts with customers	$	2,386	$	2,719	$	573	$	(67)	$	5,611
By market:
Gas	$	435	$	2,719	$	397	$	(48)	$	3,503
Electric	1,951		—		176		(19)		2,108
Revenues from contracts with customers	$	2,386	$	2,719	$	573	$	(67)	$	5,611
Revenues from contracts with customers	$	2,386	$	2,719	$	573	$	(67)	$	5,611
Utilities regulatory revenues	269		(87)		—		—		182
Other revenues	—		—		217		(10)		207
Total revenues	$	2,655	$	2,632	$	790	$	(77)	$	6,000

REVENUES FROM CONTRACTS WITH CUSTOMERS

Remaining Performance Obligations

For contracts greater than one year, at June 30, 2022, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. Sempra’s remaining performance obligations primarily relate to capacity agreements for natural gas storage and transportation at Sempra Infrastructure and transmission line projects at SDG&E. SoCalGas did not have any remaining performance obligations at June 30, 2022.

REMAINING PERFORMANCE OBLIGATIONS(1)
(Dollars in millions)
	Sempra		SDG&E
2022 (excluding first six months of 2022)	$	200	$	2
2023	384		4
2024	385		4
2025	384		4
2026	382		4
Thereafter	4,525		63
Total revenues to be recognized	$	6,260	$	81

(1)    Excludes intercompany transactions.

Contract Liabilities from Revenues from Contracts with Customers

Activities within Sempra’s and SDG&E’s contract liabilities are presented below. There were no contract liabilities at SoCalGas in the six months ended June 30, 2022 or 2021. As we discuss in Note 11, Sempra Infrastructure drew against and fully exhausted Gazprom’s letters of credit in April 2022 due to Gazprom’s non-renewal of such letters of credit as required under its LNG storage and regasification agreement. Sempra Infrastructure recorded a contract liability for the funds drawn from the letters of credit as payments received in advance. Gazprom has not paid its invoices since March 2022, so funds drawn from the letters of credit have been used to fully offset such nonpayment, which have been reflected as revenue from performance obligations satisfied during the reporting period. We expect that these funds will provide payment security from Gazprom through the end of 2024.

CONTRACT LIABILITIES
(Dollars in millions)
	2022		2021
Sempra:
Contract liabilities at January 1	$	(278)	$	(207)
Revenue from performance obligations satisfied during reporting period	86		49
Payments received in advance	(105)		(1)
Contract liabilities at June 30(1)	$	(297)	$	(159)
SDG&E:
Contract liabilities at January 1	$	(83)	$	(87)
Revenue from performance obligations satisfied during reporting period	2		2
Contract liabilities at June 30(1)	$	(81)	$	(85)

(1)     Balances at June 30, 2022 include $81 and $4 in Other Current Liabilities and $216 and $77 in Deferred Credits and Other on Sempra’s and SDG&E’s Condensed Consolidated Balance Sheets, respectively.

Receivables from Revenues from Contracts with Customers

The table below shows receivable balances associated with revenues from contracts with customers on the Condensed Consolidated Balance Sheets.

RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS
(Dollars in millions)
	June 30, 2022		December 31, 2021
Sempra:
Accounts receivable – trade, net	$	1,620	$	1,886
Accounts receivable – other, net	13		19
Due from unconsolidated affiliates – current(1)	5		2
Other long-term assets(2)	32		70
Total	$	1,670	$	1,977
SDG&E:
Accounts receivable – trade, net	$	685	$	715
Accounts receivable – other, net	11		9
Due from unconsolidated affiliates – current(1)	3		2
Other long-term assets(2)	17		25
Total	$	716	$	751
SoCalGas:
Accounts receivable – trade, net	$	722	$	1,084
Accounts receivable – other, net	2		10
Other long-term assets(2)	15		45
Total	$	739	$	1,139

(1)     Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists.

(2)     In connection with the COVID-19 pandemic and at the direction of the CPUC, SDG&E and SoCalGas enrolled residential and small business customers with past-due balances in long-term repayment plans.