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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Parent
SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts; shares in thousands)
 Years ended December 31,
 202120202019
Interest income$11 $4 $3 
Interest expense(576)(495)(521)
Operating expenses(92)(86)(124)
Other income (expense), net20 (38)59 
Income tax benefit190 176 163 
Loss before equity in earnings of subsidiaries(447)(439)(420)
Equity in earnings of subsidiaries, net of income taxes1,764 4,371 2,617 
Net income1,317 3,932 2,197 
Preferred dividends(63)(168)(142)
Earnings$1,254 $3,764 $2,055 
Basic EPS:
Earnings$4.03 $12.93 $7.40 
Weighted-average common shares outstanding311,755 291,077 277,904 
Diluted EPS:
Earnings$4.01 $12.88 $7.29 
Weighted-average common shares outstanding313,036 292,252 282,033 
See Notes to Condensed Financial Information of Parent.
SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
 Years ended December 31, 2021, 2020 and 2019
 Pretax
amount
Income tax
benefit (expense)
Net-of-tax
amount
2021:   
Net income$1,127 $190 $1,317 
Other comprehensive income (loss):   
Foreign currency translation adjustments(6)— (6)
Financial instruments191 (47)144 
Pension and other postretirement benefits28 (6)22 
Total other comprehensive income213 (53)160 
Comprehensive income$1,340 $137 $1,477 
2020:   
Net income$3,756 $176 $3,932 
Other comprehensive income (loss):   
Foreign currency translation adjustments547 — 547 
Financial instruments(146)33 (113)
Pension and other postretirement benefits11 1 12 
Total other comprehensive income412 34 446 
Comprehensive income$4,168 $210 $4,378 
2019:   
Net income$2,034 $163 $2,197 
Other comprehensive income (loss):   
Foreign currency translation adjustments(43)— (43)
Financial instruments(161)53 (108)
Pension and other postretirement benefits25 (7)18 
Total other comprehensive loss(179)46 (133)
Comprehensive income$1,855 $209 $2,064 
See Notes to Condensed Financial Information of Parent.
SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
December 31,
 202120202019
Assets:  
Cash and cash equivalents$186 $366 $6 
Restricted cash2 — — 
Due from affiliates446 58 98 
Income taxes receivable, net — 42 — 
Other current assets31 26 34 
Total current assets665 492 138 
Investments in subsidiaries33,308 33,898 32,604 
Due from affiliates21 1 3 
Deferred income taxes626 2,187 1,766 
Other long-term assets1,090 717 682 
Total assets$35,710 $37,295 $35,193 
Liabilities and shareholders’ equity:  
Short-term debt$1,240 $— $— 
Current portion of long-term debt— 850 1,399 
Due to affiliates185 224 369 
Income taxes payable, net4 — 274 
Other current liabilities531 536 561 
Total current liabilities1,960 1,610 2,603 
Long-term debt5,969 7,317 8,856 
Due to affiliates1,151 4,375 3,138 
Other long-term liabilities649 620 667 
Commitments and contingencies (Note 4)
Shareholders’ equity25,981 23,373 19,929 
Total liabilities and shareholders’ equity$35,710 $37,295 $35,193 
See Notes to Condensed Financial Information of Parent.
SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
 Years ended December 31,
 202120202019
Net cash (used in) provided by operating activities$(255)$(978)$294 
Expenditures for property, plant and equipment(8)(9)(8)
Capital contributions to investees(1,005)(364)(1,528)
Disbursement for note receivable(305)— — 
Distribution from investments1,552 3,616 — 
(Increase) decrease in loans to affiliates, net(20)2 — 
Other— — 4 
Net cash provided by (used in) investing activities214 3,245 (1,532)
Common stock dividends paid(1,331)(1,174)(993)
Preferred dividends paid(99)(157)(142)
Issuances of preferred stock, net — 891 — 
Issuances of common stock, net 5 11 1,830 
Repurchases of common stock(339)(566)(26)
Issuances of long-term debt990 1,599 758 
Payments on long-term debt(3,200)(3,700)(1,500)
Increase in short-term debt1,240 — — 
Increase in loans from affiliates, net1,092 1,194 1,328 
Purchases of noncontrolling interest(217)— — 
Proceeds from sale of noncontrolling interest1,846 — — 
Equity transaction costs with third parties— (4)— 
Debt issuance costs— (1)(25)
Make-whole premiums related to early redemptions of debt(121)— — 
Other financing(2)— — 
Net cash (used in) provided by financing activities(136)(1,907)1,230 
Effect of exchange rate changes on cash and cash equivalents(1)— — 
(Decrease) increase in cash and cash equivalents(178)360 (8)
Cash and cash equivalents, January 1366 6 14 
Cash, cash equivalents and restricted cash, December 31$188 $366 $6 
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES   
Issuance of common stock in exchange for NCI and related AOCI$1,373 $— $— 
Common dividends issued in stock— 22 55 
Common dividends declared but not paid349 301 283 
Conversion of mandatory convertible preferred stock 2,258 — — 
Preferred dividends declared but not paid11 47 36 
Equitization of amounts due from affiliates4,351 — — 
See Notes to Condensed Financial Information of Parent.
BASIS OF PRESENTATION
The condensed financial information of Sempra Energy has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04. We apply the same accounting policies as in the financial statements of Sempra, except that Sempra Energy accounts for the earnings of its subsidiaries under the equity method in this unconsolidated financial information.
Sempra Energy received cash dividends from its consolidated subsidiaries totaling $375 million, $300 million and $150 million in 2021, 2020 and 2019, respectively.
NEW ACCOUNTING STANDARDS
We describe below and in Note 2 of the Notes to Consolidated Financial Statements recent pronouncements that have had or may have a significant effect on Sempra Energy’s results of operations, financial condition, cash flows or disclosures.
ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”: ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. In addition to other changes, this standard amends ASC 470-20, “Debt with Conversion and Other Options,” by removing the accounting models for instruments with beneficial and cash conversion features. The standard also amends certain guidance in ASC 260, “Earnings Per Share,” for the computation of EPS for convertible instruments and contracts on an entity’s own equity. For public entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. An entity can use either a full or modified retrospective approach to adopt ASU 2020-06 and must disclose, in the period of adoption, EPS transition information about the effect of the change on affected per-share amounts. We will adopt the standard on January 1, 2022 using a modified retrospective approach and do not expect the adoption will materially impact our financial statements or per-share amounts.
SHORT-TERM DEBT
Committed Line of Credit
At December 31, 2021, Sempra Energy had an aggregate capacity of $4.4 billion under two primary committed lines of credit and available unused credit of $3.1 billion, which provide liquidity and support its commercial paper program. The amount of commercial paper outstanding, before reduction of any unamortized discount, and any letters of credit outstanding is reflected as a reduction to the available unused credit.
The principal terms of Sempra Energy’s committed lines of credit include the following:
▪Each facility has a syndicate of 23 lenders. No single lender has greater than a 6% share in the facility.
▪One facility provides for the issuance of $200 million of letters of credit. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, Sempra Energy has the right to increase its letter of credit commitment to $500 million. No letters of credit were outstanding at December 31, 2021.
▪Borrowings bear interest at a benchmark rate plus a margin that varies with Sempra Energy’s credit rating.
▪Sempra Energy must maintain a ratio of indebtedness to total capitalization (as defined in its credit facility) of no more than 65% at the end of each quarter. At December 31, 2021, Sempra Energy was in compliance with this ratio under credit facility.
LONG-TERM DEBT
The following table shows the detail and maturities of long-term debt outstanding:
LONG-TERM DEBT
(Dollars in millions)
December 31,
 202120202019
2.4% Notes February 1, 2020
$— $— $500 
2.4% Notes March 15, 2020
— — 500 
2.85% Notes November 15, 2020
— — 400 
Notes at variable rates (2.50% at December 31, 2019) January 15, 2021(1)
— — 700 
Notes at variable rates (3.069% after floating-to-fixed rate swaps effective 2019) March 15, 2021
— 850 850 
2.875% Notes October 1, 2022
— 500 500 
2.9% Notes February 1, 2023
— 500 500 
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
750 750 750 
3.4% Notes February 1, 2028
1,000 1,000 1,000 
3.8% Notes February 1, 2038
1,000 1,000 1,000 
6% Notes October 15, 2039
750 750 750 
4% Notes February 1, 2048
800 800 800 
4.125% Junior Subordinated Notes April 1, 2052(1)
1,000 — — 
5.75% Junior Subordinated Notes July 1, 2079(1)
758 758 758 
 6,058 8,258 10,358 
Current portion of long-term debt— (850)(1,399)
Unamortized discount on long-term debt(37)(32)(35)
Unamortized debt issuance costs(52)(59)(68)
Total long-term debt$5,969 $7,317 $8,856 
(1)    Callable long-term debt not subject to make-whole provisions.

In December 2021, Sempra Energy redeemed, at respective make-whole redemption prices, an aggregate principal amount of $2.35 billion of senior unsecured notes prior to scheduled maturities in 2022 through 2025. Upon the early redemptions, we recognized $126 million ($92 million after tax) in charges associated with the make-whole premiums and a write-off of unamortized discount and debt issuance costs.
In November 2021, we issued $1.0 billion of 4.125% fixed-to-fixed reset rate junior subordinated notes maturing on April 1, 2052. Interest on the notes accrues from and including November 19, 2021 and is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2022. The notes will bear interest (i) from and including November 19, 2021 to, but excluding, April 1, 2027 at the rate of 4.125% per annum and (ii) from and including April 1, 2027, during each subsequent five-year period beginning on April 1 of every fifth year, at a rate per annum equal to the Five-year U.S. Treasury Rate (as defined in the notes) as of the day falling two business days before the first day of such five-year period plus a spread of 2.868%, to be reset on April 1 of every fifth year beginning in 2027. We received proceeds of $988 million (net of underwriting discounts and debt issuance costs of $12 million). We used the proceeds from the offering to repay a portion of the aggregate principal amount of the $2.35 billion of senior unsecured notes that we discuss above.
At December 31, 2021, long-term debt maturities totaling $6.1 billion commence after 2026.
Additional information on Sempra Energy’s long-term debt is provided in Note 7 of the Notes to Consolidated Financial Statements.
COMMITMENTS AND CONTINGENCIES
Sempra Energy has an operating lease commitment related to its corporate headquarters building of approximately $279 million. Sempra Energy expects payments for its operating lease to be $11 million in 2022, $12 million in each of 2023 through 2026 and $220 million thereafter.
For other contingencies and guarantees related to Sempra Energy, refer to Notes 6 and 16 of the Notes to Consolidated Financial Statements.