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OTHER FINANCIAL DATA (Tables)
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Inventory Table
The components of inventories by segment are as follows:
INVENTORY BALANCES
(Dollars in millions)
 
Natural gas
 
 
Liquefied natural gas
 
 
Materials and supplies
 
 
Total
 
September
30, 2016
 
December
31, 2015
 
 
September
30, 2016
 
December
31, 2015
 
 
September
30, 2016
 
December
31, 2015
 
 
September
30, 2016
 
December
31, 2015
SDG&E
$
1

 
$
6

 
 
$
—

 
$
—

 
 
$
72

 
$
69

 
 
$
73

 
$
75

SoCalGas(1)
24

 
49

 
 
—

 
—

 
 
53

 
30

 
 
77

 
79

Sempra South American Utilities
—

 
—

 
 
—

 
—

 
 
46

 
30

 
 
46

 
30

Sempra Mexico
—

 
—

 
 
4

 
3

 
 
2

 
10

 
 
6

 
13

Sempra Renewables
—

 
—

 
 
—

 
—

 
 
3

 
3

 
 
3

 
3

Sempra Natural Gas
94

 
94

 
 
3

 
3

 
 
—

 
1

 
 
97

 
98

Sempra Energy Consolidated
$
119

 
$
149

 
 
$
7

 
$
6

 
 
$
176

 
$
143

 
 
$
302

 
$
298

(1)
At both September 30, 2016 and December 31, 2015, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 11.
Schedule of Goodwill Table
Changes in the carrying amount of goodwill on the Sempra Energy Consolidated Balance Sheets are as follows:
GOODWILL
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 Sempra
South American
Utilities
 Sempra
Mexico
Sempra
Natural Gas
 Total
Balance at December 31, 2015
$
722

$
25

$
72

$
819

Acquisition of business
—

1,375

—

1,375

Sale of business
—

—

(72
)
(72
)
Foreign currency translation(1)
28

—

—

28

Balance at September 30, 2016
$
750

$
1,400

$
—

$
2,150

(1)
We record the offset of this fluctuation to Other Comprehensive Income (Loss).
 
Variable Interest Entity Table
The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below generally correspond to SDG&E’s Condensed Consolidated Statements of Operations.
AMOUNTS ASSOCIATED WITH OTAY MESA VIE
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Operating expenses
 
 
 
 
 
 
 
Cost of electric fuel and purchased power
$
(28
)
 
$
(27
)
 
$
(62
)
 
$
(66
)
Operation and maintenance
4

 
3

 
23

 
13

Depreciation and amortization
8

 
7

 
25

 
19

Total operating expenses
(16
)
 
(17
)
 
(14
)
 
(34
)
Operating income
16

 
17

 
14

 
34

Interest expense
(5
)
 
(5
)
 
(15
)
 
(14
)
Income (loss) before income taxes/Net income (loss)
11

 
12

 
(1
)
 
20

(Earnings) losses attributable to noncontrolling interest
(11
)
 
(12
)
 
1

 
(20
)
Earnings attributable to common shares
$
—

 
$
—

 
$
—

 
$
—
Net Periodic Benefit Cost Table
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
26

 
$
27

 
$
4

 
$
5

Interest cost
40

 
38

 
9

 
10

Expected return on assets
(41
)
 
(42
)
 
(17
)
 
(17
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
2

 
3

 
—

 
(1
)
Actuarial loss (gain)
10

 
9

 
(1
)
 
—

Settlements
—

 
4

 
—

 
—

Regulatory adjustment
(28
)
 
(27
)
 
5

 
4

Total net periodic benefit cost
$
9

 
$
12

 
$
—

 
$
1

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
81

 
$
86

 
$
15

 
$
19

Interest cost
120

 
116

 
31

 
33

Expected return on assets
(124
)
 
(130
)
 
(52
)
 
(51
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
8

 
8

 
—

 
(2
)
Actuarial loss (gain)
23

 
28

 
(1
)
 
—

Settlements
—

 
4

 
—

 
—

Regulatory adjustment
(84
)
 
(86
)
 
9

 
4

Total net periodic benefit cost
$
24

 
$
26

 
$
2

 
$
3

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
7

 
$
6

 
$
1

 
$
1

Interest cost
10

 
9

 
2

 
2

Expected return on assets
(12
)
 
(14
)
 
(3
)
 
(2
)
Amortization of:
 
 
 
 
 
 
 
Actuarial loss
2

 
3

 
—

 
—

Regulatory adjustment
(7
)
 
(3
)
 
—

 
(1
)
Total net periodic benefit cost
$
—

 
$
1

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
22

 
$
22

 
$
3

 
$
5

Interest cost
31

 
29

 
6

 
6

Expected return on assets
(37
)
 
(41
)
 
(8
)
 
(8
)
Amortization of:

 
 
 
 
 
 
Prior service cost
1

 
1

 
2

 
2

Actuarial loss (gain)
7

 
7

 
(1
)
 
—

Regulatory adjustment
(22
)
 
(15
)
 
(2
)
 
(5
)
Total net periodic benefit cost
$
2

 
$
3

 
$
—

 
$
—

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
16

 
$
17

 
$
4

 
$
3

Interest cost
26

 
25

 
7

 
8

Expected return on assets
(26
)
 
(25
)
 
(15
)
 
(14
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
3

 
2

 
(1
)
 
(2
)
Actuarial loss
3

 
5

 
—

 
—

Regulatory adjustment
(21
)
 
(24
)
 
5

 
5

Total net periodic benefit cost
$
1

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
51

 
$
55

 
$
11

 
$
13

Interest cost
76

 
74

 
24

 
26

Expected return on assets
(78
)
 
(79
)
 
(43
)
 
(42
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
7

 
6

 
(3
)
 
(6
)
Actuarial loss
8

 
16

 
—

 
—

Regulatory adjustment
(62
)
 
(71
)
 
11

 
9

Total net periodic benefit cost
$
2

 
$
1

 
$
—

 
$
—
Contributions to Benefit Plans Table
The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2016:
BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
 
 
Sempra Energy
Consolidated
 
SDG&E
 
SoCalGas
Contributions through September 30, 2016:
 
 
 
 
 
 
Pension plans
 
$
24

 
$
2

 
$
1

Other postretirement benefit plans
 
3

 
—

 
1

Total expected contributions in 2016:
 
 
 
 
 
 
Pension plans
 
$
124

 
$
7

 
$
73

Other postretirement benefit plans
 
6

 
2

 
1
Earnings Per Share Computations Table
The following table provides EPS computations for the three months and nine months ended September 30, 2016 and 2015. Basic EPS is calculated by dividing earnings attributable to common stock 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 SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Numerator:
 
 
 
 
 
 
 
Earnings/Income attributable to common shares
$
622

 
$
248

 
$
991

 
$
980

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average common shares
outstanding for basic EPS(1)
250,386

 
248,432

 
250,073

 
248,090

Dilutive effect of stock options, restricted
stock awards and restricted stock units(2)
2,019

 
2,592

 
1,903

 
2,575

Weighted-average common shares
outstanding for diluted EPS(2)
252,405

 
251,024

 
251,976

 
250,665

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
2.48

 
$
1.00

 
$
3.96

 
$
3.95

Diluted
2.46

 
0.99

 
3.93

 
3.91

(1)
Includes 572 and 504 average fully vested restricted stock units held in our Deferred Compensation Plan for the three months ended September 30, 2016 and 2015, respectively, and 565 and 486 of such units for the nine months ended September 30, 2016 and 2015, respectively. These fully vested restricted stock units 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.
(2)
Reflects the prospective adoption of ASU 2016-09 as of January 1, 2016, as we discuss in Note 2. Prior to the adoption, the dilutive effect of stock options, restricted stock awards and restricted stock units was reduced by excess tax benefits assumed to be used to repurchase shares on the open market.
Capitalized Financing Costs Table
The following table shows capitalized financing costs for the three months and nine months ended September 30, 2016 and 2015.
CAPITALIZED FINANCING COSTS
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Sempra Energy Consolidated:
 
 
 
 
 
 
 
AFUDC related to debt
$
7

 
$
6

 
$
22

 
$
19

AFUDC related to equity
29

 
26

 
86

 
84

Other capitalized interest
26

 
18

 
64

 
52

Total Sempra Energy Consolidated
$
62

 
$
50

 
$
172

 
$
155

SDG&E:
 
 
 
 
 
 
 
AFUDC related to debt
$
4

 
$
3

 
$
12

 
$
10

AFUDC related to equity
11

 
9

 
35

 
27

Total SDG&E
$
15

 
$
12

 
$
47

 
$
37

SoCalGas:
 
 
 
 
 
 
 
AFUDC related to debt
$
3

 
$
3

 
$
10

 
$
9

AFUDC related to equity
10

 
10

 
30

 
29

Other capitalized interest
1

 
1

 
1

 
1

Total SoCalGas
$
14

 
$
14

 
$
41

 
$
39
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 noncontrolling interests:
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 
Foreign
currency
translation
adjustments
 
Financial
instruments
 
Pension and other
postretirement
benefits
 
Total
accumulated other
comprehensive
income (loss)
 
Three months ended September 30, 2016 and 2015
2016:
 
 
 
 
 
 
 
Balance as of June 30, 2016
$
(503
)
 
$
(264
)
 
$
(85
)
 
$
(852
)
Other comprehensive (loss) income before
 
 
 
 
 
 
 
reclassifications
(28
)
 
8

 
—

 
(20
)
Amounts reclassified from accumulated other
 
 
 
 
 
 
 
comprehensive income
—

 
5

 
2

 
7

Net other comprehensive (loss) income
(28
)
 
13

 
2

 
(13
)
Balance as of September 30, 2016
$
(531
)
 
$
(251
)
 
$
(83
)
 
$
(865
)
2015:
 
 
 
 
 
 
 
Balance as of June 30, 2015
$
(427
)
 
$
(86
)
 
$
(83
)
 
$
(596
)
Other comprehensive loss before
 
 
 
 
 
 
 
reclassifications
(92
)
 
(79
)
 
—

 
(171
)
Amounts reclassified from accumulated other
 
 
 
 
 
 
 
comprehensive income
—

 
1

 
5

 
6

Net other comprehensive (loss) income
(92
)
 
(78
)
 
5

 
(165
)
Balance as of September 30, 2015
$
(519
)
 
$
(164
)
 
$
(78
)
 
$
(761
)
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2016 and 2015
2016:
 
 
 
 
 
 
 
Balance as of December 31, 2015
$
(582
)
 
$
(137
)
 
$
(87
)
 
$
(806
)
Other comprehensive income (loss) before
 
 
 
 
 
 
 
reclassifications
51

 
(122
)
 
—

 
(71
)
Amounts reclassified from accumulated other
 
 
 
 
 
 
 
comprehensive income
—

 
8

 
4

 
12

Net other comprehensive income (loss)
51

 
(114
)
 
4

 
(59
)
Balance as of September 30, 2016
$
(531
)
 
$
(251
)
 
$
(83
)
 
$
(865
)
2015:
 
 
 
 
.
 
 
Balance as of December 31, 2014
$
(322
)
 
$
(90
)
 
$
(85
)
 
$
(497
)
Other comprehensive loss before
 
 
 
 
 
 
 
reclassifications
(197
)
 
(76
)
 
—

 
(273
)
Amounts reclassified from accumulated other
 
 
 
 
 
 
 
comprehensive income
—

 
2

 
7

 
9

Net other comprehensive (loss) income
(197
)
 
(74
)
 
7

 
(264
)
Balance as of September 30, 2015
$
(519
)
 
$
(164
)
 
$
(78
)
 
$
(761
)
(1)
All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in Millions)
 
Financial
instruments
 
Pension and other
postretirement
benefits
 
Total
accumulated other
comprehensive
income (loss)
 
Three months ended September 30, 2016 and 2015
2016:
 
 
 
 
 
Balance as of June 30, 2016
$
(14
)
 
$
(5
)
 
$
(19
)
Amounts reclassified from accumulated other
 
 
 
 
 
comprehensive income
1

 
—

 
1

Net other comprehensive income
1

 
—

 
1

Balance as of September 30, 2016
$
(13
)
 
$
(5
)
 
$
(18
)
2015:
 
 
 
 
 
Balance as of June 30 and September 30, 2015
$
(14
)
 
$
(4
)
 
$
(18
)
 
 
 
 
 
 
 
Nine months ended September 30, 2016 and 2015
2016:
 
 
 
 
 
Balance as of December 31, 2015
$
(14
)
 
$
(5
)
 
$
(19
)
Amounts reclassified from accumulated other
 
 
 
 
 
comprehensive income
1

 
—

 
1

Net other comprehensive income
1

 
—

 
1

Balance as of September 30, 2016
$
(13
)
 
$
(5
)
 
$
(18
)
2015:
 
 
 
 
 
Balance as of December 31, 2014 and September 30, 2015
$
(14
)
 
$
(4
)
 
$
(18
)
(1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
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 September 30,
 
 
 
2016
 
2015
 
 
Sempra Energy Consolidated:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate and foreign exchange instruments
$
4

 
$
5

 
Interest Expense
Interest rate instruments
3

 
3

 
Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments
7

 
—

 
Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments
(2
)
 
—

 
Equity Earnings, Net of Income Tax
Commodity contracts not subject to rate recovery
—

 
(3
)
 
Revenues: Energy-Related Businesses
Total before income tax
12

 
5

 
 
 
(3
)
 
(1
)
 
Income Tax Expense
Net of income tax
9

 
4

 
 
 
(4
)
 
(3
)
 
Earnings Attributable to Noncontrolling Interests
 
$
5

 
$
1

 
 
Pension and other postretirement benefits:
 
 
 
 
 
Amortization of actuarial loss
$
4

 
$
7

 
See note (1) below
 
(2
)
 
(2
)
 
Income Tax Expense
Net of income tax
$
2

 
$
5

 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
7

 
$
6

 
 
SDG&E:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments
$
3

 
$
3

 
Interest Expense
 
(3
)
 
(3
)
 
(Earnings) Losses Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax
$
—

 
$
—

 
 
SoCalGas:
 

 
 

 
 
Financial instruments:
 

 
 

 
 
Interest rate instruments
$
1

 
$
—

 
Interest Expense
Total reclassifications for the period, net of tax
$
1

 
$
—

 
 
(1)
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)
(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
 
Nine months ended September 30,
 
 
 
2016
 
2015
 
 
Sempra Energy Consolidated:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate and foreign exchange instruments
$
11

 
$
14

 
Interest Expense
Interest rate instruments
8

 
9

 
Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments
7

 
—

 
Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments
4

 
—

 
Equity Earnings, Net of Income Tax
Commodity contracts not subject to rate recovery
(7
)
 
(10
)
 
Revenues: Energy-Related Businesses
Total before income tax
23

 
13

 
 
 
(4
)
 
(1
)
 
Income Tax Expense
Net of income tax
19

 
12

 
 
 
(11
)
 
(10
)
 
Earnings Attributable to Noncontrolling Interests
 
$
8

 
$
2

 
 
Pension and other postretirement benefits:
 
 
 
 
 
Amortization of actuarial loss
$
8

 
$
11

 
See note (1) below
 
(4
)
 
(4
)
 
Income Tax Expense
Net of income tax
$
4

 
$
7

 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
12

 
$
9

 
 
SDG&E:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments
$
9

 
$
9

 
Interest Expense
 
(9
)
 
(9
)
 
(Earnings) Losses Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax
$
—

 
$
—

 
 
SoCalGas:
 

 
 

 
 
Financial instruments:
 

 
 

 
 
Interest rate instruments
$
1

 
$
—

 
Interest Expense
Total reclassifications for the period, net of tax
$
1

 
$
—

 
 
(1)
Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).
Shareholders' Equity and Noncontrolling Interests Table
The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and noncontrolling interests for the nine months ended September 30, 2016 and 2015.
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 
Sempra Energy
shareholders’
equity
 
Non-
controlling
interests(1)
 
Total
equity
Balance at December 31, 2015
$
11,809

 
$
770

 
$
12,579

Cumulative-effect adjustment from change in accounting principle
107

 
—

 
107

Comprehensive income
933

 
117

 
1,050

Preferred dividends of subsidiary
(1
)
 
—

 
(1
)
Share-based compensation expense
38

 
—

 
38

Common stock dividends declared
(565
)
 
—

 
(565
)
Issuances of common stock
80

 
—

 
80

Repurchases of common stock
(55
)
 
—

 
(55
)
Equity contributed by noncontrolling interests
—

 
2

 
2

Distributions to noncontrolling interests
—

 
(44
)
 
(44
)
Balance at September 30, 2016
$
12,346

 
$
845

 
$
13,191

Balance at December 31, 2014
$
11,326

 
$
774

 
$
12,100

Comprehensive income
717

 
56

 
773

Preferred dividends of subsidiary
(1
)
 
—

 
(1
)
Share-based compensation expense
39

 
—

 
39

Common stock dividends declared
(520
)
 
—

 
(520
)
Issuances of common stock
82

 
—

 
82

Repurchases of common stock
(74
)
 
—

 
(74
)
Tax benefit related to share-based compensation
56

 
—

 
56

Equity contributed by noncontrolling interest
—

 
1

 
1

Distributions to noncontrolling interests
—

 
(60
)
 
(60
)
Balance at September 30, 2015
$
11,625

 
$
771

 
$
12,396

(1)
Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under “Other Noncontrolling Interests.”
SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E
(Dollars in millions)
 
SDG&E
shareholder’s
equity
 
Non-
controlling
interest
 
Total
equity
Balance at December 31, 2015
$
5,223

 
$
53

 
$
5,276

Cumulative-effect adjustment from change in accounting principle
23

 
—

 
23

Comprehensive income
419

 
3

 
422

Common stock dividends declared
(175
)
 
—

 
(175
)
Equity contributed by noncontrolling interest
—

 
1

 
1

Distributions to noncontrolling interest
—

 
(7
)
 
(7
)
Balance at September 30, 2016
$
5,490

 
$
50

 
$
5,540

Balance at December 31, 2014
$
4,932

 
$
60

 
$
4,992

Comprehensive income
443

 
20

 
463

Common stock dividends declared
(150
)
 
—

 
(150
)
Distributions to noncontrolling interest
—

 
(16
)
 
(16
)
Balance at September 30, 2015
$
5,225

 
$
64

 
$
5,289

SHAREHOLDERS’ EQUITY – SOCALGAS
(Dollars in millions)
 
SoCalGas
shareholders’
equity
Balance at December 31, 2015
$
3,149

Cumulative-effect adjustment from change in accounting principle
15

Comprehensive income
200

Preferred stock dividends declared
(1
)
Balance at September 30, 2016
$
3,363

Balance at December 31, 2014
$
2,781

Comprehensive income
277

Preferred stock dividends declared
(1
)
Common stock dividends declared
(50
)
Balance at September 30, 2015
$
3,007
Ownership Interests Held By Others Table
At September 30, 2016 and December 31, 2015, we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets:
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
 
 
 
Percent ownership held by others
 
 
 
 
September 30,
2016
 
December 31,
2015
 
September 30,
2016
 
December 31,
2015
SDG&E:
 
 
 
 
 
 
 
Otay Mesa VIE
100
%
100
%
$
50

 
$
53

Sempra South American Utilities:
 
 
 
 
 
 
 
Chilquinta Energía subsidiaries(1)
23.1 – 43.4
 
23.5 – 43.4
 
22

 
21

Luz del Sur
16.4
 
16.4
 
171

 
164

Tecsur
9.8
 
9.8
 
4

 
4

Sempra Mexico:
 
 
 
 
 
 
 
IEnova(2)
18.9
 
18.9
 
537

 
468

Sempra Natural Gas:
 
 
 
 
 
 
 
Bay Gas Storage Company, Ltd.
9.1
 
9.1
 
26

 
25

Liberty Gas Storage, LLC
23.3
 
23.2
 
14

 
14

Southern Gas Transmission Company
49.0
 
49.0
 
1

 
1

Total Sempra Energy
 
 
 
 
$
825

 
$
750

(1)
Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
(2) On October 19, 2016, IEnova completed follow-on equity offerings that increased the 18.9 percent ownership held by others to 33.6 percent, as we discuss in Note 13.
Transactions with Affiliates Table
Amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas are as follows:
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
 
September 30, 2016
 
December 31, 2015
Sempra Energy Consolidated:
 
 
 
Total due from various unconsolidated affiliates - current
$
8

 
$
6

 
 
 
 
Sempra South American Utilities(1):
 
 
 
Eletrans S.A. and Eletrans II S.A.:
 
 
 
4% Note(2)
$
83

 
$
72

Other related party receivables
1

 
—

Sempra Mexico(1):
 
 
 
Affiliate of joint venture with DEN:
 
 
 
Note due November 13, 2017(3)
3

 
3

Note due November 14, 2018(3)
43

 
42

Note due November 14, 2018(3)
35

 
34

Note due November 14, 2018(3)
8

 
8

Energía Sierra Juárez:
 
 
 
Note due June 15, 2018(4)
14

 
24

Sempra Natural Gas:
 
 
 
Cameron LNG JV
8

 
3

Total due from unconsolidated affiliates - noncurrent
$
195

 
$
186

 
 
 
 
Total due to various unconsolidated affiliates - current
$
(9
)
 
$
(14
)
SDG&E:
 
 
 
Sempra Energy(5)
$
88

 
$
—

Other affiliates
—

 
1

Total due from unconsolidated affiliates - current
$
88

 
$
1

 
 
 
 
Sempra Energy
$
—

 
$
(34
)
SoCalGas
(5
)
 
(13
)
Other affiliates
(5
)
 
(8
)
Total due to unconsolidated affiliates - current
$
(10
)
 
$
(55
)
 
 
 
 
Income taxes due from Sempra Energy(6)
$
109

 
$
28

SoCalGas:
 
 
 
Sempra Energy(7)
$
30

 
$
35

SDG&E
5

 
13

Total due from unconsolidated affiliates - current
$
35

 
$
48

 
 
 
 
Income taxes due from Sempra Energy(6)
$
16

 
$
1

(1)
Amounts include principal balances plus accumulated interest outstanding.
(2)
U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans S.A. and Eletrans II S.A., both of which are joint ventures of Chilquinta Energía.
(3)
U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (5.03 percent at September 30, 2016), to finance the Los Ramones Norte pipeline project.
(4)
U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.91 percent at September 30, 2016), to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.
(5)
At September 30, 2016, net receivable included outstanding advances to Sempra Energy of $107 million at an interest rate of 0.60 percent.
(6)
SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from each company having always filed a separate return.
(7)
At September 30, 2016, net receivable included outstanding advances to Sempra Energy of $51 million at an interest rate of 0.57 percent. At December 31, 2015, net receivable included outstanding advances to Sempra Energy of $50 million at an interest rate of 0.11 percent.

Revenues and cost of sales from unconsolidated affiliates are as follows:
REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
REVENUES
 
 
 
 
 
 
 
Sempra Energy Consolidated
$
5

 
$
6

 
$
15

 
$
22

SDG&E
2

 
3

 
5

 
8

SoCalGas
21

 
19

 
56

 
55

COST OF SALES
 
 
 
 
 
 
 
Sempra Energy Consolidated
$
10

 
$
29

 
$
60

 
$
78

SDG&E
16

 
15

 
46

 
33
Other Income and Expense Table
Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following:
OTHER INCOME, NET
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
Three months ended
September 30,
 
Nine months ended
September 30,
 
2016
 
2015
 
2016
 
2015
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
29

 
$
26

 
$
86

 
$
84

Investment gains (losses)(1)
9

 
(12
)
 
29

 
(5
)
Losses on interest rate and foreign exchange instruments, net
(11
)
 
(4
)
 
(23
)
 
(7
)
Foreign currency transaction losses
(2
)
 
(3
)
 
(9
)
 
(6
)
Sale of other investments
1

 
2

 
3

 
8

Electrical infrastructure relocation income(2)
1

 
—

 
4

 
4

Regulatory interest, net(3)
1

 
1

 
4

 
3

Sundry, net
(2
)
 
2

 
4

 
7

Total
$
26

 
$
12

 
$
98

 
$
88

SDG&E:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
11

 
$
9

 
$
35

 
$
27

Regulatory interest, net(3)
—

 
1

 
3

 
3

Sundry, net
—

 
(2
)
 
—

 
(4
)
Total
$
11

 
$
8

 
$
38

 
$
26

SoCalGas:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
10

 
$
10

 
$
30

 
$
29

Regulatory interest, net(3)
1

 
—

 
1

 
—

Sundry, net
(3
)
 
(2
)
 
(7
)
 
(4
)
Total
$
8

 
$
8

 
$
24

 
$
25

(1)
Represents investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.
(2)
Income at Luz del Sur associated with the relocation of electrical infrastructure.
(3)
Interest on regulatory balancing accounts.
Income Tax Expense and Effective Income Tax Rates Table
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
 
Income tax
expense
 
Effective
income
tax rate
 
Income tax
expense (benefit)
 
Effective
income
tax rate
 
Three months ended September 30,
 
2016
 
2015
Sempra Energy Consolidated
$
282

 
29
%
 
$
15

 
6
%
SDG&E
91

 
32

 
75

 
29

SoCalGas
21

 
100

 
(20
)
 
71

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2016
 
2015
Sempra Energy Consolidated
$
284

 
21
%
 
$
276

 
22
%
SDG&E
204

 
33

 
217

 
32

SoCalGas
75

 
27

 
91

 
25