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SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash

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


RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
	At December 31,
	2021		2020		2019
Cash and cash equivalents	$	559	$	960	$	108
Restricted cash, current	19		22		31
Restricted cash, noncurrent	3		3		3
Cash, cash equivalents and restricted cash in discontinued operations	—		—		75
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	581	$	985	$	217

Schedule of Accounts Receivable, Allowance for Credit Loss

We provide below allowances and changes in allowances for credit losses for trade receivables and other receivables. SDG&E and SoCalGas record changes in the allowances for credit losses related to Accounts Receivable – Trade in regulatory accounts.


RECEIVABLES – ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
	Years ended December 31,
	2021		2020		2019
Sempra:
Allowances for credit losses at January 1	$	138	$	29	$	21
Incremental allowance upon adoption of ASU 2016-13	—		1		—
Provisions for expected credit losses	45		124		22
Write-offs	(47)		(16)		(14)
Allowances for credit losses at December 31	$	136	$	138	$	29
SDG&E:
Allowances for credit losses at January 1	$	69	$	14	$	11
Provisions for expected credit losses	23		65		10
Write-offs	(26)		(10)		(7)
Allowances for credit losses at December 31	$	66	$	69	$	14
SoCalGas:
Allowances for credit losses at January 1	$	68	$	15	$	10
Provisions for expected credit losses	22		59		12
Write-offs	(21)		(6)		(7)
Allowances for credit losses at December 31	$	69	$	68	$	15

Allowances for credit losses are included in the Consolidated Balance Sheets as follows:


ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
	December 31,
	2021		2020		2019
Sempra:
Accounts receivable – trade, net	$	94	$	111	$	7
Accounts receivable – other, net	39		27		22
Other long-term assets	3		—		—
Total allowances for credit losses	$	136	$	138	$	29
SDG&E:
Accounts receivable – trade, net	$	42	$	55	$	4
Accounts receivable – other, net	22		14		10
Other long-term assets	2		—		—
Total allowances for credit losses	$	66	$	69	$	14
SoCalGas:
Accounts receivable – trade, net	$	51	$	55	$	3
Accounts receivable – other, net	17		13		12
Other long-term assets	1		—		—
Total allowances for credit losses	$	69	$	68	$	15

Schedule of Inventory

The components of inventories are as follows:


INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
	Sempra						SDG&E						SoCalGas
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Natural gas	$	164	$	118	$	110	$	—	$	—	$	1	$	114	$	94	$	90
LNG	27		7		9		—		—		—		—		—		—
Materials and supplies	198		183		158		123		104		93		58		59		46
Total	$	389	$	308	$	277	$	123	$	104	$	94	$	172	$	153	$	136

Wildfire Fund

The following table summarizes the location of balances related to the Wildfire Fund on Sempra’s and SDG&E’s Consolidated Balance Sheets and Consolidated Statements of Operations.


WILDFIRE FUND
(Dollars in millions)
		December 31,
	Location	2021		2020		2019
Wildfire Fund asset:
Current	Prepaid Expenses	$	29	$	29	$	29
Noncurrent	Wildfire Fund	331		363		392
Wildfire Fund obligation:
Current	Other Current Liabilities	$	13	$	13	$	13
Noncurrent	Deferred Credits and Other	64		75		86
		Years ended December 31,
		2021		2020		2019
Amortization of Wildfire Fund asset	Operation and Maintenance	$	29	$	29	$	12
Impairment of Wildfire Fund asset	Impairment Losses(1)	3		—		—
Accretion of Wildfire Fund obligation	Operation and Maintenance	2		2		1

(1) Included in O&M for SDG&E.

The increases include separately authorized components for O&M and capital-related costs, as follows:


AUTHORIZED REVENUE REQUIREMENT INCREASES FOR 2020 AND 2021
(Dollars in millions)
	2020 increase from 2019				2021 increase from 2020
	Revenue increase		Percent increase		Revenue increase		Percent increase
SDG&E:
O&M	$	20	2.64	%	$	19	2.47	%
Capital-related costs	114		9.74		83		6.47
Total increase	$	134	6.74		$	102	4.83
SoCalGas:
O&M	$	36	2.64	%	$	34	2.40	%
Capital-related costs	184		14.36		116		7.93
Total increase	$	220	7.92		$	150	5.00

In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that became effective on January 1, 2020 and will remain in effect through December 31, 2022, subject to the CCM.


CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE, SUBJECT TO THE CCM

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.59	%	2.08	%	Long-Term Debt	45.60	%	4.23	%	1.93	%
2.75		6.22		0.17		Preferred Equity	2.40		6.00		0.14
52.00		10.20		5.30		Common Equity	52.00		10.05		5.23
100.00	%			7.55	%		100.00	%			7.30	%

Schedule of Property, Plant and Equipment


PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
	December 31,						Depreciation rates for years ended December 31,
	2021		2020		2019		2021		2020			2019
SDG&E:
Natural gas operations	$	3,200	$	2,805	$	2,534	2.55	%	2.51	%		2.47	%
Electric distribution	9,471		8,592		7,985		3.93		3.90			3.94
Electric transmission(1)	7,577		7,156		6,577		3.02		3.10			2.79
Electric generation	2,446		2,440		2,415		4.74		4.56			4.50
Other electric	2,100		1,743		1,492		7.23		6.92			6.61
Construction work in progress(1)	1,662		1,700		1,501		NA		NA			NA
Total SDG&E	26,456		24,436		22,504
SoCalGas:
Natural gas operations	21,894		19,961		18,370		3.65		3.63			3.60
Other non-utility	50		45		34		2.23		3.80			5.08
Construction work in progress	1,160		1,174		958		NA		NA			NA
Total SoCalGas	23,104		21,180		19,362

Sempra Infrastructure and parent(2):							Estimated useful lives				Weighted-average useful life
Land and land rights	291		283		278		16 to 50 years(3)					36
Machinery and equipment:
Pipelines and storage	3,698		3,482		3,596		5 to 50 years					42
Generating plants	1,659		1,288		1,154		11 to 30 years					27
LNG terminals	1,138		1,138		1,134		43 years					43
Liquid fuels terminals	420		—		—		37 years					37
Other	370		359		180		3 to 50 years					13
Construction work in progress	1,494		1,514		895		NA					NA
Other	310		248		226		4 to 50 years					21
	9,380		8,312		7,463
Total Sempra	$	58,940	$	53,928	$	49,329

(1) At December 31, 2021, includes $542 in electric transmission assets and $5 in construction work in progress related to SDG&E’s 86% 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’s and SDG&E’s Consolidated Statements of Operations.

(2) Includes $211, $191 and $178 at December 31, 2021, 2020, and 2019, respectively, of utility plant, primarily pipelines and other distribution assets at Ecogas.

(3) Estimated useful lives are for land rights.


DEPRECIATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2021		2020		2019
Sempra	$	1,833	$	1,646	$	1,551
SDG&E	884		797		757
SoCalGas	711		649		598


ACCUMULATED DEPRECIATION AND AMORTIZATION
(Dollars in millions)
	December 31,
	2021		2020		2019
SDG&E:
Accumulated depreciation:
Natural gas operations	$	919	$	870	$	832
Electric transmission, distribution and generation(1)	5,489		5,145		4,705
Total SDG&E	6,408		6,015		5,537
SoCalGas:
Accumulated depreciation:
Natural gas operations	6,845		6,422		6,023
Other non-utility	16		15		15
Total SoCalGas	6,861		6,437		6,038
Sempra Infrastructure and parent:
Accumulated depreciation – other(2)	1,777		1,473		1,302
Total Sempra	$	15,046	$	13,925	$	12,877

(1) Includes $292 at December 31, 2021 related to SDG&E’s 86% interest in the Southwest Powerlink transmission line, jointly owned by SDG&E and other utilities.

(2) Includes $55, $51 and $49 at December 31, 2021, 2020, and 2019, respectively, of accumulated depreciation for utility plant at Ecogas.

Schedule Of Capitalized Financing Costs

The table below summarizes capitalized financing costs, comprised of AFUDC and capitalized interest.


CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2021		2020		2019
Sempra	$	217	$	202	$	183
SDG&E	106		104		75
SoCalGas	64		55		47

Schedule Of Other Intangible Assets

Other Intangible Assets included on Sempra’s Consolidated Balance Sheets are as follows:


OTHER INTANGIBLE ASSETS
(Dollars in millions)
	Amortization period (years)	December 31,
		2021		2020		2019
Renewable energy transmission and consumption permits	15 to 19	$	169	$	169	$	169
O&M agreement	23	66		66		66
ESJ PPA	14	190		—		—
Other	10 to indefinite	15		15		15
		440		250		250
Less accumulated amortization:
Renewable energy transmission and consumption permits		(40)		(32)		(24)
O&M agreement		(12)		(9)		(6)
ESJ PPA		(10)		—		—
Other		(8)		(7)		(7)
		(70)		(48)		(37)
		$	370	$	202	$	213

Schedule Of Asset Retirement Obligations

The changes in AROs are as follows:


CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
	Sempra						SDG&E						SoCalGas
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Balance as of January 1(1)	$	3,289	$	3,083	$	2,972	$	876	$	866	$	874	$	2,368	$	2,177	$	2,063
Accretion expense	133		127		123		38		39		39		92		86		81
Liabilities incurred and acquired	20		2		2		2		—		—		—		—		—
Deconsolidation	—		—		(2)		—		—		(2)		—		—		—
Payments	(63)		(63)		(46)		(60)		(60)		(44)		(3)		(2)		(2)
Revisions(2)	159		140		34		34		31		(1)		125		107		35
Balance at December 31(1)	$	3,538	$	3,289	$	3,083	$	890	$	876	$	866	$	2,582	$	2,368	$	2,177

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

(2) SDG&E’s increase in ARO in 2021 includes $22 million due to a revised estimate related to the decommissioning of SONGS, which is offset in noncurrent Regulatory Assets.

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(2):
Balance as of December 31, 2018	$	(564)	$	(82)	$	(118)	$	(764)
Adoption of ASU 2018-02	—		(25)		(17)		(42)
OCI before reclassifications(3)	(43)		(116)		(18)		(177)
Amounts reclassified from AOCI(3)	—		8		36		44
Net OCI	(43)		(108)		18		(133)
Balance as of December 31, 2019	(607)		(215)		(117)		(939)
OCI before reclassifications(3)(4)	(102)		(163)		(26)		(291)
Amounts reclassified from AOCI(3)	645		47		38		730
Net OCI(4)	543		(116)		12		439
Balance as of December 31, 2020	(64)		(331)		(105)		(500)
OCI before reclassifications(4)	(34)		62		8		36
Amounts reclassified from AOCI(5)	19		113		14		146
Net OCI(4)(5)	(15)		175		22		182
Balance as of December 31, 2021	$	(79)	$	(156)	$	(83)	$	(318)
SDG&E:
Balance as of December 31, 2018					$	(10)	$	(10)
Adoption of ASU 2018-02					(2)		(2)
OCI before reclassifications					(5)		(5)
Amounts reclassified from AOCI					1		1
Net OCI					(4)		(4)
Balance as of December 31, 2019					(16)		(16)

OCI before reclassifications(3)					(4)		(4)
Amounts reclassified from AOCI(3)					10		10
Net OCI					6		6
Balance as of December 31, 2020					(10)		(10)
OCI before reclassifications					(1)		(1)
Amounts reclassified from AOCI					1		1
Net OCI					—		—
Balance as of December 31, 2021					$	(10)	$	(10)
SoCalGas:

Balance as of December 31, 2018			$	(12)	$	(8)	$	(20)
Adoption of ASU 2018-02			(2)		(2)		(4)
OCI before reclassifications			—		(4)		(4)
Amounts reclassified from AOCI(3)			1		4		5
Net OCI			1		—		1
Balance as of December 31, 2019			(13)		(10)		(23)


OCI before reclassifications(3)			—		(10)		(10)
Amounts reclassified from AOCI(3)			—		2		2
Net OCI			—		(8)		(8)
Balance as of December 31, 2020			(13)		(18)		(31)

OCI before reclassifications			—		(2)		(2)
Amounts reclassified from AOCI			—		2		2
Net OCI			—		—		—
Balance as of December 31, 2021			$	(13)	$	(18)	$	(31)

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

(2) Includes discontinued operations in 2020 and 2019.

(3) Pension and Other Postretirement Benefits and Total AOCI include $6 in transfers of liabilities from SDG&E to SoCalGas and $3 in transfers of liabilities from SDG&E to Sempra in 2020 and $4 in transfers of liabilities from SoCalGas to Sempra in 2019 related to the nonqualified pension plans.

(4) Total AOCI includes $28 of foreign currency translation adjustments and $16 of financial instruments associated with the IEnova exchange and cash tender offers in 2021. Total AOCI includes $4 of foreign currency translation adjustments and $3 of financial instruments associated with IEnova’s repurchases of NCI in 2020. We discuss these transactions below in “Other Noncontrolling Interests – Sempra Infrastructure.” These transactions do not impact the Consolidated Statements of Comprehensive Income (Loss).

(5) Total AOCI includes $19 of foreign currency translation adjustments and $47 of financial instruments associated with the sale of NCI to KKR in 2021. We discuss this transaction below in “Other Noncontrolling Interests – Sempra Infrastructure.” This transaction does not impact the Consolidated Statements of Comprehensive Income (Loss).

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,
	2021		2020		2019
Sempra:
Foreign currency translation adjustments	$	—	$	645	$	—	Income from Discontinued Operations, Net of Income Tax

Financial instruments:
Interest rate instruments	$	—	$	—	$	10	Gain (Loss) on Sale of Assets
Interest rate instruments(1)	11		10		3		Interest Expense
Interest rate instruments	73		46		3		Equity Earnings(2)
Foreign exchange instruments	1		(1)		2		Revenues: Energy-Related Businesses

Foreign exchange instruments	—		—		2		Equity Earnings(2)
Interest rate and foreign exchange instruments	1		1		—		Interest Expense
	6		11		(9)		Other Income (Expense) , Net
Total before income tax	92		67		11
	(24)		(19)		(2)		Income Tax Expense
Net of income tax	68		48		9
	(2)		(1)		(1)		Earnings Attributable to Noncontrolling Interests
	$	66	$	47	$	8
Pension and other postretirement benefits(3):
Amortization of actuarial loss	$	8	$	8	$	12	Other Income (Expense), Net
Amortization of actuarial loss	—		6		1		Income from Discontinued Operations, Net of Income Tax
Amortization of prior service cost	4		4		3		Other Income (Expense), Net
Settlement charges	7		22		28		Other Income (Expense), Net
Total before income tax	19		40		44
	—		(2)		—		Income from Discontinued Operations, Net of Income Tax
	(5)		(9)		(12)		Income Tax Expense
Net of income tax	$	14	$	29	$	32

Total reclassifications for the period, net of tax	$	80	$	721	$	40
SDG&E:
Financial instruments:
Interest rate instruments(1)	$	—	$	—	$	3	Interest Expense
	—		—		(3)		Earnings Attributable to Noncontrolling Interest
	$	—	$	—	$	—
Pension and other postretirement benefits(3):
Amortization of actuarial loss	$	—	$	1	$	—	Other Income, Net
Amortization of prior service cost	1		1		1		Other Income, Net

Total before income tax	1		2		1
	—		(1)		—		Income Tax Expense
Net of income tax	$	1	$	1	$	1

Total reclassifications for the period, net of tax	$	1	$	1	$	1
SoCalGas:
Financial instruments:
Interest rate instruments	$	—	$	—	$	1	Interest Expense


Pension and other postretirement benefits(3):
Amortization of actuarial loss	$	1	$	1	$	1	Other Expense, Net
Amortization of prior service cost	1		1		—		Other Expense, Net
Total before income tax	2		2		1
	—		—		(1)		Income Tax Benefit (Expense)
Net of income tax	$	2	$	2	$	—

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

(1) Amounts in 2019 include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.

(2) Equity earnings at our foreign equity method investees are recognized after tax.

(3) 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 NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra’s Consolidated Balance Sheets.


OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by noncontrolling interests						Equity held by noncontrolling interests
	December 31,						December 31,
	2021		2020		2019		2021		2020		2019
Sempra Infrastructure:
SI Partners	20.0	%	—	%	—	%	$	1,384	$	—	$	—
SI Partners subsidiaries(1)	0.1 - 16.6		17.5 - 29.8		10.0 - 46.3		34		1,540		1,622
Parent and other:
PXiSE	—		20.0		20.0		—		1		1
Discontinued Operations:
Chilquinta Energía subsidiaries(1)	—		—		19.7 - 43.4		—		—		23
Luz del Sur	—		—		16.4		—		—		205
Tecsur	—		—		9.8		—		—		5
Total Sempra							$	1,418	$	1,541	$	1,856

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

Schedule of Related Party Transactions

TRANSACTIONS WITH AFFILIATES

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


AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	December 31,
	2021		2020		2019
Sempra:
Total due from various unconsolidated affiliates – current	$	23	$	20	$	32

Sempra Infrastructure:
ESJ JV – Note due December 31, 2022, net of negligible allowance for credit losses at December 31, 2020(1)	$	—	$	85	$	—
IMG JV – Note due March 15, 2022, net of allowance for credit losses of $1 and $3 at December 31, 2021 and 2020, respectively(2)	637		695		742
Total due from unconsolidated affiliates – noncurrent	$	637	$	780	$	742
Sempra Infrastructure – TAG Pipelines Norte, S. de R.L. de C.V. – Note due December 20, 2021(3)(4)	$	—	$	(41)	$	—
Various affiliates	—		(4)		(5)
Total due to unconsolidated affiliates – current	$	—	$	(45)	$	(5)

Sempra Infrastructure(4):
TAG Pipelines Norte, S. de R.L. de C.V.:
Note due December 20, 2021(3)	$	—	$	—	$	(39)
5.5% Note due January 9, 2024(5)	(69)		(68)		—
5.5% Note due January 14, 2025(5)	(21)		—		—
5.5% Note due July 16, 2025(5)	(20)		—		—
TAG JV – 5.74% Note due December 17, 2029(5)	(177)		(166)		(156)
Total due to unconsolidated affiliates – noncurrent	$	(287)	$	(234)	$	(195)
SDG&E:


Sempra	$	(40)	$	(38)	$	(37)
SoCalGas	(48)		(21)		(10)

Various affiliates	(9)		(5)		(6)
Total due to unconsolidated affiliates – current	$	(97)	$	(64)	$	(53)

Income taxes due from Sempra(6)	$	19	$	—	$	130
SoCalGas:
SDG&E	$	48	$	21	$	10
Various affiliates	1		1		1
Total due from unconsolidated affiliates – current	$	49	$	22	$	11

Sempra	$	(36)	$	(31)	$	(45)

Various affiliates	—		—		(2)
Total due to unconsolidated affiliates – current	$	(36)	$	(31)	$	(47)

Income taxes due from (to) Sempra(6)	$	6	$	(37)	$	152

(1) U.S. dollar-denominated loan at a variable interest rate based on 1-month LIBOR plus 196 bps (2.11% at December 31, 2020). At December 31, 2020, $1 of accrued interest receivable is included in Due from Unconsolidated Affiliates – Current. In March 2021, Sempra Infrastructure acquired the remaining 50% equity interest in ESJ that it did not already own, and ESJ became a wholly owned, consolidated subsidiary, resulting in the elimination of this note receivable.

(2) Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $691 U.S. dollar-equivalent at December 31, 2021, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (8.06% at December 31, 2021), to finance construction of a natural gas marine pipeline. At both December 31, 2021 and 2020, $2 of accrued interest receivable is included in Due from Unconsolidated Affiliates – Current. At December 31, 2021, we classified this revolving line of credit as noncurrent because we expect to extend the maturity date on a long-term basis prior to its stated maturity date.

(3) U.S. dollar-denominated loan at a variable interest rate based on 6-month LIBOR plus 290 bps (3.16% at December 31, 2020).

(4) Amounts include principal balances plus accumulated interest outstanding.

(5) U.S. dollar-denominated loan at a fixed interest rate.

(6) SDG&E and SoCalGas are included in the consolidated income tax return of Sempra, and their respective income tax expense is computed as an amount equal to that which would result from each company having always filed a separate return.

The following table summarizes income statement information from unconsolidated affiliates.


INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Years ended December 31,
	2021		2020		2019
Sempra:
Revenues	$	31	$	37	$	52
Cost of sales	11		45		50
Interest income	50		56		74
Interest expense	15		14		2
SDG&E:
Revenues	$	11	$	6	$	6
Cost of sales	103		79		74
SoCalGas:
Revenues	$	98	$	88	$	69
Cost of sales(1)	1		—		8

(1) Includes net commodity costs from natural gas transactions with unconsolidated affiliates.

Schedule Of Other Income (Expense)

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


OTHER INCOME (EXPENSE), NET
(Dollars in millions)
	Years ended December 31,
	2021		2020		2019
Sempra:
Allowance for equity funds used during construction	$	133	$	128	$	94
Investment gains, net(1)	50		41		61
(Losses) gains on interest rate and foreign exchange instruments, net	(28)		(67)		34
Foreign currency transaction (losses) gains, net(2)	(18)		(25)		21
Non-service component of net periodic benefit cost	(67)		(102)		(132)


Interest on regulatory balancing accounts, net	6		14		14

Sundry, net	(18)		(37)		(15)
Total	$	58	$	(48)	$	77
SDG&E:
Allowance for equity funds used during construction	$	81	$	79	$	56
Non-service component of net periodic benefit cost	(13)		(20)		(20)

Interest on regulatory balancing accounts, net	6		9		13

Sundry, net	(10)		(16)		(10)
Total	$	64	$	52	$	39
SoCalGas:
Allowance for equity funds used during construction	$	48	$	41	$	34
Non-service component of net periodic benefit cost	(40)		(54)		(72)

Interest on regulatory balancing accounts, net	—		5		1

Sundry, net	(22)		(20)		(18)
Total	$	(14)	$	(28)	$	(55)

(1) Represents net investment gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Consolidated Statements of Operations.

(2) Includes losses of $23 in 2021, losses of $42 in 2020 and gains of $30 in 2019 from translation to U.S. dollars of a Mexican peso-denominated loan to IMG JV, which are offset by corresponding amounts included in Equity Earnings on the Consolidated Statements of Operations.