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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT (Tables)
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Schedule of Condensed Statements of Operations
SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
 
Years ended December 31,
 
2018
 
2017(1)
 
2016(1)
Interest income
$
14

 
$
—

 
$
—

Interest expense
(495
)
 
(293
)
 
(277
)
Operating expenses
(82
)
 
(80
)
 
(76
)
Other (expense) income, net
(16
)
 
100

 
(7
)
Income tax benefit
154

 
33

 
181

Loss before equity in earnings of subsidiaries
(425
)
 
(240
)
 
(179
)
Equity in earnings of subsidiaries, net of income taxes
1,474

 
496

 
1,549

Net income
1,049

 
256

 
1,370

Mandatory convertible preferred stock dividends
(125
)
 
—

 
—

Earnings
$
924

 
$
256

 
$
1,370

Basic earnings per common share
$
3.45

 
$
1.02

 
$
5.48

Weighted-average shares outstanding, basic (thousands)
268,072

 
251,545

 
250,217

Diluted earnings per common share
$
3.42

 
$
1.01

 
$
5.46

Weighted-average shares outstanding, diluted (thousands)
269,852

 
252,300

 
251,155


(1) 
As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.
See Notes to Condensed Financial Information of Parent.
Schedule Of Condensed Statements Of Comprehensive Income
SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
 
Years ended December 31, 2018, 2017 and 2016
 
Pretax
amount
 
Income tax
benefit (expense)
 
Net-of-tax
amount
2018:
 
 
 
 
 
Net income
$
895

 
$
154

 
$
1,049

Other comprehensive income (loss):
 

 
 

 
 

Foreign currency translation adjustments
(144
)
 
—

 
(144
)
Financial instruments
64

 
(21
)
 
43

Pension and other postretirement benefits
(38
)
 
4

 
(34
)
Total other comprehensive loss
(118
)
 
(17
)
 
(135
)
Comprehensive income
$
777

 
$
137

 
$
914

2017:
 

 
 

 
 

Net income
$
223

 
$
33

 
$
256

Other comprehensive income (loss):
 

 
 

 
 

Foreign currency translation adjustments
107

 
—

 
107

Financial instruments
2

 
1

 
3

Pension and other postretirement benefits
20

 
(8
)
 
12

Total other comprehensive income
129

 
(7
)
 
122

Comprehensive income
$
352

 
$
26

 
$
378

2016:
 

 
 

 
 

Net income
$
1,189

 
$
181

 
$
1,370

Other comprehensive income (loss):
 

 
 

 
 

Foreign currency translation adjustments
42

 
—

 
42

Financial instruments
(6
)
 
11

 
5

Pension and other postretirement benefits
(13
)
 
4

 
(9
)
Total other comprehensive income
23

 
15

 
38

Comprehensive income
$
1,212

 
$
196

 
$
1,408


See Notes to Condensed Financial Information of Parent.
Schedule Of Condensed Balance Sheets
SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
 
December 31,
2018
 
December 31,
2017
Assets:
 
 
 
Cash and cash equivalents
$
14

 
$
104

Due from affiliates
93

 
83

Income taxes receivable
397

 
272

Other current assets
9

 
6

Total current assets
513

 
465

 
 
 
 
Investments in subsidiaries
28,778

 
17,924

Due from affiliates
3

 
2

Deferred income taxes
1,554

 
1,802

Other assets
572

 
656

Total assets
$
31,420

 
$
20,849

 
 
 
 
Liabilities and shareholders’ equity:
 

 
 

Current portion of long-term debt
$
1,498

 
$
500

Due to affiliates
287

 
280

Other current liabilities
527

 
396

Total current liabilities
2,312

 
1,176

 
 
 
 
Long-term debt
9,647

 
6,198

Due to affiliates
1,812

 
300

Other long-term liabilities
511

 
505

 
 
 
 
Commitments and contingencies (Note 4)


 


 
 
 
 
Shareholders’ equity
17,138

 
12,670

Total liabilities and shareholders’ equity
$
31,420

 
$
20,849


See Notes to Condensed Financial Information of Parent.
Schedule of Condensed Statements of Cash Flows
SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
 
Years ended December 31,
 
2018
 
2017
 
2016
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
213

 
$
89

 
$
(3
)
 
 
 
 
 
 
Expenditures for property, plant and equipment
(11
)
 
(11
)
 
(5
)
Expenditures for acquisition
(329
)
 
—

 
—

Capital contributions to investees
(9,457
)
 
—

 
—

(Increase) decrease in loans to affiliates, net
(1
)
 
—

 
457

Expenditures for Merger-related costs
—

 
(12
)
 
—

Net cash (used in) provided by investing activities
(9,798
)

(23
)

452

 
 
 
 
 
 
Common stock dividends paid
(877
)
 
(755
)
 
(686
)
Preferred dividends paid
(89
)
 
—

 
—

Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018
2,258

 
—

 
—

Issuances of common stock, net of $41 in offering costs in 2018
2,272

 
47

 
51

Repurchases of common stock
(21
)
 
(15
)
 
(56
)
Issuances of long-term debt
4,969

 
1,595

 
499

Payments on long-term debt
(500
)
 
(600
)
 
(750
)
Increase (decrease) in loans from affiliates, net
1,520

 
(239
)
 
504

Debt issuance costs
(37
)
 
(7
)
 
(3
)
Net cash provided by (used in) financing activities
9,495

 
26

 
(441
)
 
 
 
 
 
 
(Decrease) increase in cash and cash equivalents
(90
)
 
92

 
8

Cash and cash equivalents, January 1
104

 
12

 
4

Cash and cash equivalents, December 31
$
14

 
$
104

 
$
12

 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
 

 
 

 
 

Accrued Merger-related transaction costs
$
—

 
$
31

 
$
—

Preferred dividends declared but not paid
36

 
—

 
—

Common dividends issued in stock
54

 
53

 
53

Common dividends declared but not paid
245

 
207

 
189
Schedule of New Accounting Pronouncements and Changes in Accounting Principles Upon adoption of ASU 2017-07, our Consolidated Statements of Operations were impacted as follows:
IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
 
Years ended December 31,
 
2017
 
2016
 
As previously reported
 
Effect of adoption
 
As adjusted
 
As previously reported
 
Effect of adoption
 
As adjusted
Sempra Energy:
 
 
 
 
 
 
 
 
 
 
 
Operation and maintenance
$
3,117

 
$
(21
)
 
$
3,096

 
$
2,970

 
$
6

 
$
2,976

Other income, net
254

 
(21
)
 
233

 
132

 
6

 
138

SDG&E:
 
 
 
 
 
 
 
 
 
 
 
Operation and maintenance
$
1,020

 
$
4

 
$
1,024

 
$
1,048

 
$
14

 
$
1,062

Total operating expenses
3,763

 
4

 
3,767

 
3,263

 
14

 
3,277

Operating income
713

 
(4
)
 
709

 
990

 
(14
)
 
976

Other income, net
66

 
4

 
70

 
50

 
14

 
64

SoCalGas:
 
 
 
 
 
 
 
 
 
 
 
Operation and maintenance
$
1,479

 
$
(5
)
 
$
1,474

 
$
1,385

 
$
6

 
$
1,391

Total operating expenses
3,163

 
(5
)
 
3,158

 
2,914

 
6

 
2,920

Operating income
622

 
5

 
627

 
557

 
(6
)
 
551

Other income, net
36

 
(5
)
 
31

 
32

 
6

 
38

The following table shows the expected (decrease) increase on our balance sheets at January 1, 2019 from adoption of the lease standard.
EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
 
 
Sempra Energy Consolidated
 
SDG&E
 
SoCalGas
Other current assets
 
$
(68
)
 
$
—

 
$
—

Property, plant and equipment, net
 
(147
)
 
—

 
—

Right-of-use assets – operating leases
 
623

 
130

 
116

Deferred income taxes
 
(3
)
 
—

 
—

Other current liabilities
 
81

 
20

 
23

Long-term debt
 
(138
)
 
—

 
—

Deferred credits and other
 
445

 
110

 
93

Retained earnings
 
17

 
—

 
—


The following table shows the expected increase (decrease) from adoption of the lease standard on our balance sheet at January 1, 2019.
EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
Right-of-use assets – operating leases
 
$
191

Deferred income taxes
 
(3
)
Property, plant and equipment, net(1)
 
(147
)
Other current liabilities
 
3

Long-term debt
 
(138
)
Other long-term liabilities
 
159

Retained earnings(2)
 
17

(1) 
Included in Other Assets.
(2) 
Included in Shareholders’ Equity.

Upon adoption of ASU 2017-07, our Condensed Statements of Operations were impacted as follows:
IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
 
Years ended December 31,
 
2017
 
2016
 
As previously reported
Effect of adoption
As adjusted
 
As previously reported
Effect of adoption
As adjusted
Sempra Energy:
 
 
 
 
 
 
 
Operation and maintenance
$
(87
)
$
7

$
(80
)
 
$
(81
)
$
5

$
(76
)
Other income (expense), net
107

(7
)
100

 
(2
)
(5
)
(7
)
Schedule Of Long-term Debt The following tables show the detail and maturities of long-term debt outstanding:
LONG-TERM DEBT
(Dollars in millions)
 
December 31,
 
2018
 
2017
SDG&E
 
 
 
First mortgage bonds (collateralized by plant assets):
 
 
 
1.65% July 1, 2018(1)
$
—

 
$
161

3% August 15, 2021
350

 
350

1.914% payable 2015 through February 2022
125

 
161

3.6% September 1, 2023
450

 
450

2.5% May 15, 2026
500

 
500

6% June 1, 2026
250

 
250

5.875% January and February 2034(1)
176

 
176

5.35% May 15, 2035
250

 
250

6.125% September 15, 2037
250

 
250

4% May 1, 2039(1)
75

 
75

6% June 1, 2039
300

 
300

5.35% May 15, 2040
250

 
250

4.5% August 15, 2040
500

 
500

3.95% November 15, 2041
250

 
250

4.3% April 1, 2042
250

 
250

3.75% June 1, 2047
400

 
400

4.15% May 15, 2048
400

 
—

 
4,776

 
4,573

Other long-term debt:
 

 
 

OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007),
 
 


payable 2013 through April 2019 (collateralized by OMEC plant assets)
—

 
295

OMEC LLC variable-rate loan (4.7896% at December 31, 2018 except for $142 at 5.2925%
 
 
 
after floating-to-fixed rate swaps through April 1, 2019), payable 2019 through 2024
 
 
 
(collateralized by OMEC plant assets)
220

 
—

 
 
 
 
Capital lease obligations:
 

 
 

Purchased-power contracts
1,270

 
731

Other
2

 
1

 
1,492

 
1,027

 
6,268

 
5,600

Current portion of long-term debt
(81
)
 
(220
)
Unamortized discount on long-term debt
(12
)
 
(11
)
Unamortized debt issuance costs
(37
)
 
(34
)
Total SDG&E
6,138

 
5,335

 
 
 
 
SoCalGas
 

 
 

First mortgage bonds (collateralized by plant assets):
 

 
 

5.45% April 15, 2018
—

 
250

1.55% June 15, 2018
—

 
250

3.15% September 15, 2024
500

 
500

3.2% June 15, 2025
350

 
350

2.6% June 15, 2026
500

 
500

5.75% November 15, 2035
250

 
250

5.125% November 15, 2040
300

 
300

3.75% September 15, 2042
350

 
350

4.45% March 15, 2044
250

 
250

4.125% June 1, 2048
400

 
—

4.3% January 15, 2049
550

 
—

 
3,450

 
3,000

Other long-term debt (uncollateralized):
 

 
 

1.875% Notes payable 2016 through May 2026(1)
4

 
4

5.67% Notes January 18, 2028
5

 
5

Capital lease obligations
3

 
1

 
12

 
10

 
3,462

 
3,010

Current portion of long-term debt
(3
)
 
(501
)
Unamortized discount on long-term debt
(6
)
 
(7
)
Unamortized debt issuance costs
(26
)
 
(17
)
Total SoCalGas
3,427

 
2,485

LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
 
December 31,
 
2018
 
2017
Sempra Energy
 
 
 
Other long-term debt (uncollateralized):
 
 
 
6.15% Notes June 15, 2018
—

 
500

9.8% Notes February 15, 2019
500

 
500

Notes at variable rates (2.69% at December 31, 2018) July 15, 2019
500

 
—

1.625% Notes October 7, 2019
500

 
500

2.4% Notes February 1, 2020
500

 
—

2.4% Notes March 15, 2020
500

 
500

2.85% Notes November 15, 2020
400

 
400

Notes at variable rates (2.94% at December 31, 2018) January 15, 2021(1)
700

 
—

Notes at variable rates (3.24% at December 31, 2018) March 15, 2021
850

 
850

2.875% Notes October 1, 2022
500

 
500

2.9% Notes February 1, 2023
500

 
—

4.05% Notes December 1, 2023
500

 
500

3.55% Notes June 15, 2024
500

 
500

3.75% Notes November 15, 2025
350

 
350

3.25% Notes June 15, 2027
750

 
750

3.4% Notes February 1, 2028
1,000

 
—

3.8% Notes February 1, 2038
1,000

 
—

6% Notes October 15, 2039
750

 
750

4% Notes February 1, 2048
800

 
—

Fair value adjustments for interest rate swaps, net
—

 
(1
)
Build-to-suit lease(2)
138

 
138

Sempra South American Utilities
 
 
 

Other long-term debt (uncollateralized):
 

 
 

Chilquinta Energía – 4.25% Series B Bonds October 30, 2030
186

 
205

Luz del Sur
 

 
 

Bank loans 4.3% to 5.7% payable 2017 through December 2021
105

 
53

Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029
432

 
415

Other bonds at 3.77% to 4.61% payable 2020 through May 2022
4

 
6

Capital lease obligations
6

 
6

Sempra Mexico
 

 
 

Other long-term debt (uncollateralized unless otherwise noted):
 

 
 

Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency
 

 
 

swaps effective 2013)
—

 
66

6.3% Notes February 2, 2023 (4.12% after cross-currency swap)
198

 
198

Notes at variable rates (4.88% after floating-to-fixed rate swaps effective 2014),


 


payable 2016 through December 2026, collateralized by plant assets
275

 
314

3.75% Notes January 14, 2028
300

 
300

Bank loans including $246 at a weighted-average fixed rate of 6.67%, $164 at variable rates
 
 
 
(weighted-average rate of 6.33% after floating-to-fixed rate swaps effective 2014) and $37 at variable
 
 
 
rates (5.82% at December 31, 2018), payable 2016 through March 2032, collateralized by plant assets
447

 
468

4.875% Notes January 14, 2048
540

 
540

Loan at variables rates (6.07% at December 31, 2018) July 31, 2028
4

 
—

Sempra Renewables
 

 
 

Other long-term debt (collateralized by project assets):
 

 
 

Loan at variable rates (3.325% at December 31, 2017) payable 2012 through December 2028
 

 
 

except for $59 at 3.668% after floating-to-fixed rate swaps effective June 2012(1)
—

 
77

Sempra LNG & Midstream
 

 
 

Other long-term debt (uncollateralized):
 

 
 

Notes at 2.87% to 3.51% October 1, 2026(1)
21

 
20

 
13,756

 
9,405

Current portion of long-term debt
(1,589
)
 
(706
)
Unamortized discount on long-term debt
(38
)
 
(13
)
Unamortized premium on long-term debt
4

 
4

Unamortized debt issuance costs
(87
)
 
(65
)
Total other Sempra Energy
12,046

 
8,625

Total Sempra Energy Consolidated
$
21,611

 
$
16,445

(1) 
Callable long-term debt not subject to make-whole provisions.
(2) 
We discuss this lease in Notes 2 and 16.Sempra Energy
On January 12, 2018, we issued the following debt securities and received net proceeds of $4.9 billion (after deducting discounts and debt issuance costs of $68 million):
NOTES ISSUED IN LONG-TERM DEBT OFFERING
(Dollars in millions)
Title of each class of securities
Aggregate principal amount
 
Maturity
 
Interest payments
Notes at variable rates(1) due 2019
$
500

 
July 15, 2019
 
Quarterly
Notes at variable rates(2) due 2021
700

 
January 15, 2021
 
Quarterly
2.4% Notes due 2020
500

 
February 1, 2020
 
Semi-annually
2.9% Notes due 2023
500

 
February 1, 2023
 
Semi-annually
3.4% Notes due 2028
1,000

 
February 1, 2028
 
Semi-annually
3.8% Notes due 2038
1,000

 
February 1, 2038
 
Semi-annually
4% Notes due 2048
800

 
February 1, 2048
 
Semi-annually
(1) 
Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 25 bps.
(2) 
Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 50 bps.The following table shows the detail and maturities of long-term debt outstanding:
LONG-TERM DEBT
(Dollars in millions)
 
December 31,
 
2018
 
2017
 
 
 
 
6.15% Notes June 15, 2018
$
—

 
$
500

9.8% Notes February 15, 2019
500

 
500

Notes at variable rates (2.69% at December 31, 2018) July 15, 2019
500

 
—

1.625% Notes October 7, 2019
500

 
500

2.4% Notes February 1, 2020
500

 
—

2.4% Notes March 15, 2020
500

 
500

2.85% Notes November 15, 2020
400

 
400

Notes at variable rates (2.94% at December 31, 2018) January 15, 2021(1)
700

 
—

Notes at variable rates (3.24% at December 31, 2018) March 15, 2021
850

 
850

2.875% Notes October 1, 2022
500

 
500

2.9% Notes February 1, 2023
500

 
—

4.05% Notes December 1, 2023
500

 
500

3.55% Notes June 15, 2024
500

 
500

3.75% Notes November 15, 2025
350

 
350

3.25% Notes June 15, 2027
750

 
750

3.4% Notes February 1, 2028
1,000

 
—

3.8% Notes February 1, 2038
1,000

 
—

6% Notes October 15, 2039
750

 
750

4% Notes February 1, 2048
800

 
—

Fair value adjustments for interest rate swaps, net
—

 
(1
)
Build-to-suit lease
138

 
138

 
11,238

 
6,737

Current portion of long-term debt
(1,498
)
 
(500
)
Unamortized discount on long-term debt
(38
)
 
(13
)
Unamortized debt issuance costs
(55
)
 
(26
)
Total long-term debt
$
9,647

 
$
6,198