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SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table summarizes the financial statement line items that were affected by this reclassification:



SEMPRA ENERGY – RECLASSIFICATION
(Dollars in millions)
	Years ended December 31,
	2017				2016
	As previously presented		As currently presented		As previously presented		As currently presented
Consolidated Statements of Operations:
Equity earnings, before income tax	$	34	$	—	$	6	$	—
Income before income taxes and equity earnings
of certain unconsolidated subsidiaries	1,585		—		1,830		—
Income before income taxes and equity earnings of
unconsolidated entities	—		1,551		—		1,824
Equity earnings, net of income tax	42		—		78		—
Equity earnings	—		76		—		84

Schedule of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets to the sum of such amounts reported on the Consolidated Statements of Cash Flows.



RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
	At December 31,
	2018		2017
Sempra Energy Consolidated:
Cash and cash equivalents	$	190	$	288
Restricted cash, current	35		62
Restricted cash, noncurrent	21		14
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	246	$	364
SDG&E:
Cash and cash equivalents	$	8	$	12
Restricted cash, current	11		6
Restricted cash, noncurrent	18		11
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	37	$	29

Schedule Of Receivables Collection Allowances

We record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables. We show the changes in these allowances in the table below:



COLLECTION ALLOWANCES
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Allowances for collection of receivables at January 1	$	33		$	35		$	32
Provisions for uncollectible accounts	14			16			23
Write-offs of uncollectible accounts	(17		)	(18		)	(20		)
Allowances for collection of receivables at December 31	$	30		$	33		$	35
SDG&E:
Allowances for collection of receivables at January 1	$	9		$	8		$	9
Provisions for uncollectible accounts	9			8			6
Write-offs of uncollectible accounts	(7		)	(7		)	(7		)
Allowances for collection of receivables at December 31	$	11		$	9		$	8
SoCalGas:
Allowances for collection of receivables at January 1	$	16		$	21		$	17
Provisions for uncollectible accounts	1			4			14
Write-offs of uncollectible accounts	(7		)	(9		)	(10		)
Allowances for collection of receivables at December 31	$	10		$	16		$	21

Schedule of Inventory

The components of inventories by segment are as follows:



INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
	Natural gas				LNG				Materials and supplies				Total
	2018		2017		2018		2017		2018		2017		2018		2017
SDG&E	$	—	$	4	$	—	$	—	$	102	$	101	$	102	$	105
SoCalGas	92		75		—		—		42		49		134		124
Sempra South American Utilities	—		—		—		—		38		30		38		30
Sempra Mexico	—		—		4		7		15		2		19		9
Sempra Renewables	—		—		—		—		—		5		—		5
Sempra LNG & Midstream	3		30		—		4		—		—		3		34
Sempra Energy Consolidated	$	95	$	109	$	4	$	11	$	197	$	187	$	296	$	307

Schedule of Property, Plant and Equipment



PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
	PP&E at December 31,				Depreciation rates for years ended December 31,
	2018		2017		2018		2017			2016
SDG&E:
Natural gas operations	$	2,382	$	2,186	2.44	%	2.40	%		2.40	%
Electric distribution	7,462		6,975		3.91		3.92			3.86
Electric transmission⁽¹⁾	6,222		5,626		2.76		2.71			2.66
Electric generation⁽²⁾	2,967		2,435		4.12		4.05			4.00
Other electric⁽³⁾	1,408		1,114		6.43		5.54			5.66
Construction work in progress⁽¹⁾	1,221		1,451		NA		NA			NA
Total SDG&E	21,662		19,787
SoCalGas:
Natural gas operations⁽⁴⁾	17,268		15,759		3.60		3.63			3.64
Other non-utility	34		32		5.39		5.28			6.55
Construction work in progress	836		981		NA		NA			NA
Total SoCalGas	18,138		16,772

					Estimated				Weighted-average
Other operating units and parent⁽⁵⁾:					useful lives				useful life
Land and land rights	429		416		16 to 50 years⁽⁶⁾				30
Machinery and equipment:
Utility electric distribution operations	1,977		1,751		10 to 45 years				41
Generating plants	1,051		2,242		5 to 100 years				30
LNG terminals	1,134		1,133		43 years				43
Pipelines and storage	3,413		4,408		5 to 50 years				41
Other	205		269		1 to 50 years				7
Construction work in progress	684		691		NA				NA
Other⁽⁷⁾	622		639		3 to 80 years				31
	9,515		11,549
Total Sempra Energy Consolidated	$	49,315	$	48,108

⁽¹⁾

At December 31, 2018, includes $457 million in electric transmission assets and $26 million in construction work in progress related to SDG&E’s 92-percent interest in the Southwest Powerlink transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Consolidated Statements of Operations.


⁽²⁾	Includes capital lease assets of $1.3 billion and $757 million at December 31, 2018 and 2017, respectively.


⁽³⁾	Includes capital lease assets of $13 million and $22 million at December 31, 2018 and 2017, respectively.


⁽⁴⁾	Includes capital lease assets of $40 million and $34 million at December 31, 2018 and 2017, respectively.


⁽⁵⁾	Includes $154 million and $145 million at December 31, 2018 and 2017, respectively, of utility plant, primarily pipelines and other distribution assets at Ecogas.


⁽⁶⁾	Estimated useful lives are for land rights.


⁽⁷⁾	Includes capital lease assets of $136 million and associated leasehold improvements of $24 million at both December 31, 2018 and 2017 related to a build-to-suit lease.



DEPRECIATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,528	$	1,422	$	1,236
SDG&E	686		621		583
SoCalGas	553		514		474



ACCUMULATED DEPRECIATION
(Dollars in millions)
	December 31,
	2018		2017
SDG&E:
Accumulated depreciation:
Electric⁽¹⁾	$	4,558	$	4,193
Natural gas	794		756
Total SDG&E	5,352		4,949
SoCalGas:
Accumulated depreciation of natural gas utility plant in service⁽²⁾	5,685		5,352
Accumulated depreciation – other non-utility	14		14
Total SoCalGas	5,699		5,366
Other operating units and parent and other:
Accumulated depreciation – other⁽³⁾	1,125		972
Accumulated depreciation of utility electric distribution operations	343		318
	1,468		1,290
Total Sempra Energy Consolidated	$	12,519	$	11,605


⁽¹⁾	Includes accumulated depreciation for capital lease assets of $48 million and $47 million at December 31, 2018 and 2017, respectively. Includes $252 million at December 31, 2018 related to SDG&E’s 92-percent interest in the Southwest Powerlink transmission line, jointly owned by SDG&E and other utilities.


⁽²⁾	Includes accumulated depreciation for capital lease assets of $37 million and $33 million at December 31, 2018 and 2017, respectively.

⁽³⁾

Includes accumulated depreciation for capital lease assets of $10 million and $7 million and for associated leasehold improvements of $3 million and $2 million at December 31, 2018 and 2017, respectively, related to a build-to-suit lease. Includes $43 million and $39 million at December 31, 2018 and 2017, respectively, of accumulated depreciation for utility plant at Ecogas.

Schedule Of Capitalized Financing Costs

Interest capitalized and AFUDC are as follows:



CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	202	$	256	$	236
SDG&E	82		85		62
SoCalGas	48		60		55

Schedule Of Goodwill

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			Total
Balance at December 31, 2016	$	749		$	1,615		$	2,364
Acquisition of business – measurement period adjustment	—			(13		)	(13		)
Foreign currency translation⁽¹⁾	46			—			46
Balance at December 31, 2017	795			1,602			2,397
Acquisition of business	38			—			38
Foreign currency translation⁽¹⁾	(62		)	—			(62		)
Balance at December 31, 2018	$	771		$	1,602		$	2,373

⁽¹⁾

We record the offset of this fluctuation to OCI.

Schedule Of Other Intangible Assets

Other Intangible Assets included on the Sempra Energy Consolidated Balance Sheets are as follows:



OTHER INTANGIBLE ASSETS
(Dollars in millions)
	Amortization period (years)	December 31,
	Amortization period (years)	2018			2017
Development rights	50	$	—		$	322
Renewable energy transmission and consumption permit	19	154			154
Storage rights	46	—			138
O&M agreement	23	66			66
Concession permits	Indefinite	50			—
Other	10 years to indefinite	28			18
		298			698
Less accumulated amortization:
Development rights		—			(60		)
Renewable energy transmission and consumption permit		(16		)	(8		)
Storage rights		—			(28		)
O&M agreement		(3		)	—
Other		(7		)	(6		)
		(26		)	(102		)
		$	272		$	596

Schedule Of Variable Interest Entities



AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS
(Dollars in millions)
	December 31,
	2018		2017
Cash and cash equivalents	$	7	$	23
Accounts receivable – trade, net	2		5
Inventories	—		1
Other	1		1
Total current assets	10		30
Sundry	—		2
Property, plant and equipment, net	286		1,412
Total assets	296		1,444

Accounts payable	2		42
Other	1		1
Total current liabilities	3		43
Asset retirement obligations	6		40
Deferred income taxes	7		10
Deferred credits and other	—		1
Total liabilities	16		94

Other noncontrolling interests	158		631
Net assets less other noncontrolling interests	$	122	$	719



	Years ended December 31,
	2018			2017			2016
REVENUES
Energy-related businesses	$	92		$	61		$	2
EXPENSES
Operation and maintenance	(16		)	(9		)	(1		)
Depreciation and amortization	(47		)	(32		)	—
Income before income taxes	29			20			1
Income tax expense	(18		)	(4		)	—
Net income	11			16			1
Losses attributable to noncontrolling interests⁽¹⁾	58			23			4
Earnings	$	69		$	39		$	5

⁽¹⁾Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.The Consolidated Financial Statements 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 tables below correspond to SDG&E’s Consolidated Balance Sheets and Consolidated Statements of Operations.



AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	December 31,
	2018		2017
Cash and cash equivalents	$	—	$	4
Restricted cash	11		6
Inventories	4		4
Other	2		1
Total current assets	17		15
Restricted cash	18		11
Property, plant and equipment, net	295		321
Total assets	$	330	$	347

Current portion of long-term debt	$	28	$	10
Fixed-price contracts and other derivatives	1		10
Other	3		5
Total current liabilities	32		25
Long-term debt	190		284
Fixed-price contracts and other derivatives	—		3
Deferred credits and other	8		7
Noncontrolling interest	100		28
Total liabilities and equity	$	330	$	347



	Years ended December 31,
	2018			2017			2016
Operating expenses
Cost of electric fuel and purchased power	$	(75	)	$	(79	)	$	(79	)
Operation and maintenance	17			17			29
Depreciation and amortization	30			28			35
Total operating expenses	(28		)	(34		)	(15		)
Operating income	28			34			15
Other income	2			2			—
Interest expense	(23		)	(22		)	(20		)
Income (loss) before income taxes/Net income (loss)	7			14			(5		)
(Earnings) losses attributable to noncontrolling interest	(7		)	(14		)	5
Earnings attributable to common shares	$	—		$	—		$	—

Schedule Of Asset Retirement Obligations

The changes in ARO are as follows:



CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
	Sempra Energy Consolidated						SDG&E						SoCalGas
	2018			2017			2018			2017			2018			2017
Balance as of January 1⁽¹⁾	$	2,877		$	2,553		$	839		$	830		$	1,953		$	1,659
Accretion expense	121			109			39			39			78			66
Liabilities incurred	7			34			—			17			—			—
Deconsolidation and reclassification⁽²⁾	(61		)	—			—			—			—			—
Payments	(42		)	(63		)	(39		)	(61		)	(3		)	(2		)
Revisions⁽³⁾	71			244			35			14			35			230
Balance at December 31⁽¹⁾	$	2,973		$	2,877		$	874		$	839		$	2,063		$	1,953


⁽¹⁾	Current portion of the ARO for Sempra Energy Consolidated is included in Other Current Liabilities on the Consolidated Balance Sheets.


⁽²⁾	In 2018, we reclassified $6 million at Sempra Renewables and $8 million at Sempra LNG & Midstream to Liabilities Held for Sale, and $5 million related to TdM from Liabilities Held for Sale, and deconsolidated $52 million at Sempra Renewables, as we discuss in Note 5.

⁽³⁾

In 2017, revised estimates were primarily related to underground natural gas storage facilities and wells at SoCalGas.

Schedule Of Changes In Accumulated Other Comprehensive Income By Component

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)
Sempra Energy Consolidated:
Balance as of December 31, 2015	$	(582	)		$	(137	)	$	(87	)	$	(806	)

OCI before reclassifications	42				(7		)	(15		)	20
Amounts reclassified from AOCI⁽²⁾	13				19			6			38
Net OCI	55				12			(9		)	58
Balance as of December 31, 2016	(527		)		(125		)	(96		)	(748		)

OCI before reclassifications	107				(4		)	—			103
Amounts reclassified from AOCI	—				7			12			19
Net OCI	107				3			12			122
Balance as of December 31, 2017	(420		)		(122		)	(84		)	(626		)
Cumulative-effect adjustment from change in accounting principle⁽³⁾	—				(3		)	—			(3		)

OCI before reclassifications	(144		)		40			(52		)	(156		)
Amounts reclassified from AOCI	—				3			18			21
Net OCI	(144		)		43			(34		)	(135		)
Balance as of December 31, 2018	$	(564	)		$	(82	)	$	(118	)	$	(764	)
SDG&E:
Balance as of December 31, 2015								$	(8	)	$	(8	)

OCI before reclassifications								(1		)	(1		)
Amounts reclassified from AOCI								1			1
Net OCI								—			—
Balance as of December 31, 2016								(8		)	(8		)

OCI before reclassifications								(1		)	(1		)
Amounts reclassified from AOCI								1			1
Net OCI								—			—
Balance as of December 31, 2017								(8		)	(8		)

OCI before reclassifications								(6		)	(6		)
Amounts reclassified from AOCI								4			4
Net OCI								(2		)	(2		)
Balance as of December 31, 2018								$	(10	)	$	(10	)
SoCalGas:
Balance as of December 31, 2015					$	(14	)	$	(5	)	$	(19	)

OCI before reclassifications					—			(4		)	(4		)
Amounts reclassified from AOCI					1			—			1
Net OCI					1			(4		)	(3		)
Balance as of December 31, 2016					(13		)	(9		)	(22		)

Amounts reclassified from AOCI					—			1			1
Net OCI					—			1			1
Balance as of December 31, 2017					(13		)	(8		)	(21		)

OCI before reclassifications					—			(1		)	(1		)
Amounts reclassified from AOCI					1			1			2
Net OCI					1			—			1
Balance as of December 31, 2018					$	(12	)	$	(8	)	$	(20	)


⁽¹⁾	All amounts are net of income tax, if subject to tax, and exclude NCI.


⁽²⁾	Total AOCI includes $20 million associated with the October 2016 sale of NCI, discussed below in “Sale of Noncontrolling Interests – Sempra Mexico – Follow-On Offerings,” which does not impact the Consolidated Statement of Comprehensive Income.

⁽³⁾

Represents impact from adoption of ASU 2017-12, which we discuss in Note 2.

Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income



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 Consolidated Statements of Operations
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments⁽¹⁾	$	—		$	(4	)	$	17		Interest Expense
	(2		)	—			—			Other Income, Net
Interest rate instruments	9			—			—			Gain on Sale of Assets
Interest rate and foreign exchange instruments	7			20			15			Equity Earnings
Interest rate and foreign exchange instruments	—			—			7			Remeasurement of Equity Method Investment
Foreign exchange instruments	(1		)	(2		)	—			Revenues: Energy-Related Businesses
Commodity contracts not subject to rate recovery	—			9			(6		)	Revenues: Energy-Related Businesses
Total before income tax	13			23			33
	(4		)	(6		)	(6		)	Income Tax Expense
Net of income tax	9			17			27
	(6		)	(10		)	(15		)	Earnings Attributable to Noncontrolling Interests
	$	3		$	7		$	12
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	12		$	10		$	10		Other Income, Net
Amortization of prior service cost⁽²⁾	2			1			1			Other Income, Net
Settlements⁽²⁾	12			8			—			Other Income, Net
Total before income tax	26			19			11
	(8		)	(7		)	(5		)	Income Tax Expense
Net of income tax	$	18		$	12		$	6

Total reclassifications for the period, net of tax	$	21		$	19		$	18
SDG&E:
Financial instruments:
Interest rate instruments⁽¹⁾	$	7		$	13		$	12		Interest Expense
	(7		)	(13		)	(12		)	(Earnings) Losses Attributable to Noncontrolling Interest
	$	—		$	—		$	—
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	1		$	1		$	1		Other Income, Net
Settlements⁽²⁾	4			—			—			Other Income, Net
Total before income tax	5			1			1
	(1		)	—			—			Income Tax Expense
Net of income tax	$	4		$	1		$	1

Total reclassifications for the period, net of tax	$	4		$	1		$	1
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		$	1		Interest Expense
Pension and other postretirement benefits:
Amortization of prior service cost⁽²⁾	$	1		$	1		$	—		Other Income, Net

Total reclassifications for the period, net of tax	$	2		$	1		$	1


⁽¹⁾	Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.

⁽²⁾

Amounts are included in the computation of net periodic benefit cost (see “Net Periodic Benefit Cost” in Note 9).

Schedule Of Noncontrolling Interests

The following table provides information about noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Consolidated Balance Sheets:



OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by noncontrolling interests				Equity (deficit) held by noncontrolling interests
	December 31,				December 31,
	2018		2017		2018			2017
SDG&E:
Otay Mesa VIE	100	%	100	%	$	100		$	28
Sempra South American Utilities:
Chilquinta Energía subsidiaries⁽¹⁾	19.7 - 43.4		22.9 - 43.4		23			24
Luz del Sur	16.4		16.4		193			189
Tecsur	9.8		9.8		4			4
Sempra Mexico:
IEnova⁽²⁾⁽³⁾	33.5		33.6		1,605			1,532
Sempra Renewables:
Tax equity arrangements – wind⁽⁴⁾	NA		NA		158			181
Tax equity arrangements – solar⁽⁴⁾	—		NA		—			450
PXiSE Energy Solutions, LLC	11.1		—		1			—
Sempra LNG & Midstream:
Bay Gas	9.1		9.1		18			28
Liberty Gas Storage, LLC	24.6		24.6		(12		)	14
Total Sempra Energy					$	2,090		$	2,450


⁽¹⁾	Chilquinta Energía has four subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.


⁽²⁾	IEnova has a subsidiary with a 10-percent NCI held by others. The equity held by NCI is negligible at both December 31, 2018 and 2017.


⁽³⁾	IEnova has a subsidiary with a 49-percent NCI held by others. The equity held by NCI is $13 million at December 31, 2018.

⁽⁴⁾

Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.

Schedule of Related Party Transactions

We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table.



AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	December 31,
	2018			2017
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates – current	$	39		$	37

Sempra South American Utilities⁽¹⁾:
Eletrans – 4% Note⁽²⁾	$	43		$	103
Other related party receivables	1			1
Sempra Mexico⁽¹⁾:
IMG – Note due March 15, 2022⁽³⁾	641			487
Energía Sierra Juárez – Note⁽⁴⁾	3			7
Total due from unconsolidated affiliates – noncurrent	$	688		$	598

Total due to various unconsolidated affiliates – current	$	(10	)	$	(7	)

Sempra Mexico⁽¹⁾:
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021⁽⁵⁾	$	(37	)	$	(35	)
SDG&E:
Sempra Energy	$	(43	)	$	(30	)
SoCalGas	(6		)	(4		)
Various affiliates	(12		)	(6		)
Total due to unconsolidated affiliates – current	$	(61	)	$	(40	)

Income taxes due from Sempra Energy⁽⁶⁾	$	5		$	27
SoCalGas:
SDG&E	$	6		$	4
Various affiliates	1			—
Total due from unconsolidated affiliates – current	$	7		$	4

Total due to unconsolidated affiliates – current – Sempra Energy	$	(34	)	$	(35	)

Income taxes due (to) from Sempra Energy⁽⁶⁾	$	(4	)	$	10


⁽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, comprising JVs of Chilquinta Energía.


⁽³⁾	Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $721 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (10.84 percent at December 31, 2018), to finance construction of the natural gas marine pipeline.


⁽⁴⁾	U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps (8.89 percent at December 31, 2018) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.


⁽⁵⁾	U.S. dollar-denominated loan, at a variable interest rate based on 6-month LIBOR plus 290 bps (5.77 percent at December 31, 2018).


⁽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.

The following table summarizes revenues and cost of sales from unconsolidated affiliates.



REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Revenues:
Sempra Energy Consolidated	$	64	$	43	$	25
SDG&E	5		8		7
SoCalGas	64		74		76
Cost of Sales:
Sempra Energy Consolidated	$	46	$	47	$	72
SDG&E	73		71		64

Schedule Of Other Income (Expense)

Other Income, Net on the Consolidated Statements of Operations consists of the following:



OTHER INCOME, NET
(Dollars in millions)
	Years ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Sempra Energy Consolidated:
Allowance for equity funds used during construction	$	98		$	168		$	116
Investment (losses) gains⁽²⁾	(6		)	56			23
Gains (losses) on interest rate and foreign exchange instruments, net	7			47			(32		)
Foreign currency transaction losses⁽³⁾	(5		)	(35		)	(1		)
Non-service component of net periodic benefit (cost) credit	(37		)	(21		)	6
Electrical infrastructure relocation income	7			3			10
Interest on regulatory balancing accounts, net	2			3			4
Sundry, net	6			12			12
Total	$	72		$	233		$	138
SDG&E:
Allowance for equity funds used during construction	$	61		$	63		$	46
Non-service component of net periodic benefit (cost) credit	(6		)	4			14
Interest on regulatory balancing accounts, net	4			3			3
Sundry, net	(3		)	—			1
Total	$	56		$	70		$	64
SoCalGas:
Allowance for equity funds used during construction	$	36		$	44		$	40
Non-service component of net periodic benefit (cost) credit	(10		)	(5		)	6
Interest on regulatory balancing accounts, net	(2		)	—			1
Sundry, net	(9		)	(8		)	(9		)
Total	$	15		$	31		$	38


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.


⁽²⁾	Represents investment (losses) gains 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, recorded in O&M on the Consolidated Statements of Operations.

⁽³⁾

Includes losses of $3 million and $35 million in 2018 and 2017, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to the IMG JV, which are offset by corresponding amounts included in Equity Earnings on the Consolidated Statements of Operations.