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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2018
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
 
September 30,
2018
 
December 31,
2017
Sempra Energy Consolidated:
 
 
 
 
 
Natural gas
MMBtu
 
38

 
46

Electricity
MWh
 
2

 
3

Congestion revenue rights
MWh
 
49

 
59

SDG&E:
 
 
 
 
 
Natural gas
MMBtu
 
35

 
39

Electricity
MWh
 
2

 
3

Congestion revenue rights
MWh
 
49

 
59
Notional Amounts of Derivatives Table The following table presents the net notional amounts of our interest rate derivatives, excluding joint ventures.
INTEREST RATE DERIVATIVES
(Dollars in millions)
 
September 30, 2018
 
December 31, 2017
 
Notional debt
 
Maturities
 
Notional debt
 
Maturities
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Cash flow hedges(1)
$
808

 
2018-2032
 
$
861

 
2018-2032
SDG&E:
 
 
 
 
 
 
 
Cash flow hedge(1)
287

 
2018-2019
 
295

 
2018-2019
(1) 
Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.
The following table presents the net notional amounts of our foreign currency derivatives, excluding joint ventures.
FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
 
September 30, 2018
 
December 31, 2017
 
Notional amount
 
Maturities
 
Notional amount
 
Maturities
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Cross-currency swaps
$
306

 
2018-2023
 
$
408

 
2018-2023
Other foreign currency derivatives
1,122

 
2018-2020
 
345

 
2018-2019
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, as the cash collateral was in excess of liability positions.
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
 
September 30, 2018
 
Current
assets:
Fixed-price
contracts
and other
derivatives(1)
 
Other
assets:
Sundry
 
Current liabilities:
Fixed-price
contracts
and other
derivatives(2)
 
Deferred
credits
and other
liabilities:
Fixed-price
contracts
and other
derivatives
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate and foreign exchange instruments(3)(4)
$
1

 
$
6

 
$
(7
)
 
$
(125
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange instruments
38

 
—

 
—

 
—

Commodity contracts not subject to rate recovery
93

 
10

 
(95
)
 
(9
)
Associated offsetting commodity contracts
(86
)
 
(6
)
 
86

 
6

Commodity contracts subject to rate recovery
17

 
98

 
(49
)
 
(81
)
Associated offsetting commodity contracts
(6
)
 
(3
)
 
6

 
3

Associated offsetting cash collateral
—

 
—

 
2

 
1

Net amounts presented on the balance sheet
57

 
105

 
(57
)
 
(205
)
Additional cash collateral for commodity contracts
not subject to rate recovery
11

 
—

 
—

 
—

Additional cash collateral for commodity contracts
subject to rate recovery
29

 
—

 
—

 
—

Total(5)
$
97

 
$
105

 
$
(57
)
 
$
(205
)
SDG&E:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate instruments(3)
$
—

 
$
—

 
$
(4
)
 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
14

 
98

 
(44
)
 
(81
)
Associated offsetting commodity contracts
(6
)
 
(3
)
 
6

 
3

Associated offsetting cash collateral
—

 
—

 
2

 
1

Net amounts presented on the balance sheet
8

 
95

 
(40
)
 
(77
)
Additional cash collateral for commodity contracts
subject to rate recovery
26

 
—

 
—

 
—

Total(5)
$
34

 
$
95


$
(40
)

$
(77
)
SoCalGas:
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
$
3

 
$
—

 
$
(5
)
 
$
—

Net amounts presented on the balance sheet
3

 
—

 
(5
)
 
—

Additional cash collateral for commodity contracts
subject to rate recovery
3

 
—

 
—

 
—

Total
$
6

 
$
—

 
$
(5
)
 
$
—

 
(1) 
Included in Current Assets: Other for SoCalGas.
(2) 
Included in Current Liabilities: Other for SoCalGas.
(3) 
Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.
(4) 
Includes $1 million of current assets and $2 million of noncurrent assets in Assets Held for Sale, as we discuss in Note 5.
(5) 
Normal purchase contracts previously measured at fair value are excluded.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
 
December 31, 2017
 
Current
assets:
Fixed-price
contracts
and other
derivatives(1)
 
Other
assets:
Sundry
 
Current liabilities:
Fixed-price
contracts
and other
derivatives(2)
 
Deferred
credits
and other
liabilities:
Fixed-price
contracts
and other
derivatives
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate and foreign exchange instruments(3)
$
5

 
$
2

 
$
(51
)
 
$
(165
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange instruments
—

 
—

 
(1
)
 
—

Commodity contracts not subject to rate recovery
81

 
8

 
(72
)
 
(6
)
Associated offsetting commodity contracts
(67
)
 
(5
)
 
67

 
5

Commodity contracts subject to rate recovery
28

 
101

 
(65
)
 
(120
)
Associated offsetting commodity contracts
—

 
(1
)
 
—

 
1

Associated offsetting cash collateral
—

 
—

 
19

 
4

Net amounts presented on the balance sheet
47

 
105

 
(103
)
 
(281
)
Additional cash collateral for commodity contracts
not subject to rate recovery
2

 
—

 
—

 
—

Additional cash collateral for commodity contracts
subject to rate recovery
17

 
—

 
—

 
—

Total(4)
$
66

 
$
105

 
$
(103
)
 
$
(281
)
SDG&E:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate instruments(3)
$
—

 
$
—

 
$
(10
)
 
$
(3
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
26

 
101

 
(63
)
 
(120
)
Associated offsetting commodity contracts
—

 
(1
)
 
—

 
1

Associated offsetting cash collateral
—

 
—

 
19

 
4

Net amounts presented on the balance sheet
26

 
100

 
(54
)
 
(118
)
Additional cash collateral for commodity contracts
subject to rate recovery
16

 
—

 
—

 
—

Total(4)
$
42

 
$
100

 
$
(54
)
 
$
(118
)
SoCalGas:
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
$
2

 
$
—

 
$
(2
)
 
$
—

Net amounts presented on the balance sheet
2

 
—

 
(2
)
 
—

Additional cash collateral for commodity contracts
subject to rate recovery
1

 
—

 
—

 
—

Total
$
3

 
$
—

 
$
(2
)
 
$
—

(1) Included in Current Assets: Other for SoCalGas.
(2) Included in Current Liabilities: Other for SoCalGas.
(3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.
(4) Normal purchase contracts previously measured at fair value are excluded.
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table The table below 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 gain (loss)
recognized in OCI
 
 
 
Pretax gain (loss) reclassified
from AOCI into earnings
 
Three months ended September 30,
 
 
 
Three months ended September 30,
 
2018
 
2017
 
Location
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
Interest rate and foreign
exchange instruments(1)
$
16

 
$
14

 
Interest Expense(1)
 
$
—

 
$
—

 
 
 
 
 
Other Income, Net
 
11

 
—

Interest rate and foreign
exchange instruments
20

 
(2
)
 
Equity Earnings
 
(3
)
 
—

Foreign exchange instruments
(5
)
 
5

 
Revenues: Energy-
Related Businesses
 
—

 
2

Total
$
31

 
$
17

 
 
 
$
8

 
$
2

SDG&E:
 
 
 
 
 
 
 
 
 
Interest rate instruments(1)
$
—

 
$
—

 
Interest Expense(1)
 
$
(2
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
 
 
Nine months ended September 30,
 
2018
 
2017
 
Location
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
Interest rate and foreign
exchange instruments(1)
$
57

 
$
22

 
Interest Expense(1)
 
$
1

 
$
4

 
 
 
 
 
Other Income, Net
 
11

 
—

Interest rate and foreign
exchange instruments
123

 
(57
)
 
Equity Earnings
 
(8
)
 
(9
)
Foreign exchange instruments
(7
)
 
(5
)
 
Revenues: Energy-
Related Businesses
 
1

 
1

Commodity contracts not subject
to rate recovery
—

 
3

 
Revenues: Energy-
Related Businesses
 
—

 
(9
)
Total
$
173

 
$
(37
)
 
 
 
$
5

 
$
(13
)
SDG&E:
 
 
 
 
 
 
 
 
 
Interest rate instruments(1)
$
1

 
$
(2
)
 
Interest Expense(1)
 
$
(6
)
 
$
(9
)
(1) 
Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.
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 gain (loss) on derivatives recognized in earnings
 
 
Three months ended
September 30,
 
Nine months ended
September 30,
 
Location
2018
 
2017
 
2018
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Foreign exchange instruments
Other Income, Net
$
28

 
$
4

 
$
35

$
101

Foreign exchange instruments
Equity Earnings
—

 
1

 
—

1

Commodity contracts not subject
to rate recovery
Revenues: Energy-Related
Businesses
9

 
(3
)
 
—

27

Commodity contracts not subject
to rate recovery
Operation and Maintenance
—

 
—

 
—

(1
)
Commodity contracts subject
to rate recovery
Cost of Electric Fuel
and Purchased Power
62

 
59

 
70

36

Commodity contracts subject
to rate recovery
Cost of Natural Gas
(2
)
 
(1
)
 
(1
)
(1
)
Total
 
$
97

 
$
60

 
$
104

$
163

SDG&E:
 
 
 
 
 
 
 
Commodity contracts subject
to rate recovery
Cost of Electric Fuel
and Purchased Power
$
62

 
$
59

 
$
70

$
36

SoCalGas:
 
 
 
 
 
 
 
Commodity contracts not subject
to rate recovery
Operation and Maintenance
$
—

 
$
1

 
$
—

$
—

Commodity contracts subject
to rate recovery
Cost of Natural Gas
(2
)
 
(1
)
 
(1
)
(1
)
Total
 
$
(2
)
 
$
—

 
$
(1
)
$
(1
)