XML 45 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
OTHER FINANCIAL DATA (Tables)
 9 Months Ended
Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Inventory Table The components of inventories by segment are as follows:
INVENTORY BALANCES
(Dollars in millions)
 
Natural gas
 
 
Liquefied natural gas
 
 
Materials and supplies
 
 
Total
 
September 30, 2017
 
December 31, 2016
 
 
September 30, 2017
 
December 31, 2016
 
 
September 30, 2017
 
December 31, 2016
 
 
September 30, 2017
 
December 31, 2016
SDG&E
$
2

 
$
2

 
 
$
—

 
$
—

 
 
$
95

 
$
78

 
 
$
97

 
$
80

SoCalGas(1)
50

 
11

 
 
—

 
—

 
 
47

 
47

 
 
97

 
58

Sempra South American Utilities
—

 
—

 
 
—

 
—

 
 
43

 
27

 
 
43

 
27

Sempra Mexico
—

 
—

 
 
7

 
6

 
 
2

 
1

 
 
9

 
7

Sempra Renewables
—

 
—

 
 
—

 
—

 
 
4

 
4

 
 
4

 
4

Sempra LNG & Midstream
43

 
79

 
 
3

 
3

 
 
—

 
—

 
 
46

 
82

Sempra Energy Consolidated
$
95

 
$
92

 
 
$
10

 
$
9

 
 
$
191

 
$
157

 
 
$
296

 
$
258

(1)
At September 30, 2017 and December 31, 2016, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas leak, which we discuss in Note 11.
Schedule of Greenhouse Gas Allowances and Obligations Table The Condensed Consolidated Balance Sheets include the following amounts associated with GHG allowances and obligations.
GHG ALLOWANCES AND OBLIGATIONS
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Sempra Energy
Consolidated
 
SDG&E
 
SoCalGas
 
September 30,
2017
 
December 31,
2016
 
September 30,
2017
 
December 31,
2016
 
September 30,
2017
 
December 31,
2016
Assets:
 
 
 
 
 
 
 
 
 
 
 
Other current assets
$
40

 
$
40

 
$
16

 
$
16

 
$
24

 
$
24

Sundry
352

 
295

 
190

 
182

 
159

 
109

Total assets
$
392

 
$
335

 
$
206

 
$
198

 
$
183

 
$
133

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Other current liabilities
$
40

 
$
40

 
$
16

 
$
16

 
$
24

 
$
24

Deferred credits and other
240

 
171

 
105

 
72

 
131

 
96

Total liabilities
$
280

 
$
211

 
$
121

 
$
88

 
$
155

 
$
120
Variable Interest Entity Table The Condensed Consolidated Statements of Operations 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 table below correspond to SDG&E’s Condensed Consolidated Statements of Operations.
AMOUNTS ASSOCIATED WITH OTAY MESA VIE
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Operating expenses
 
 
 
 
 
 
 
Cost of electric fuel and purchased power
$
(26
)
 
$
(28
)
 
$
(65
)
 
$
(62
)
Operation and maintenance
4

 
4

 
13

 
23

Depreciation and amortization
7

 
8

 
21

 
25

Total operating expenses
(15
)
 
(16
)
 
(31
)
 
(14
)
Operating income
15

 
16

 
31

 
14

Interest expense
(6
)
 
(5
)
 
(16
)
 
(15
)
Income (loss) before income taxes/Net income (loss)
9

 
11

 
15

 
(1
)
(Earnings) losses attributable to noncontrolling interest
(9
)
 
(11
)
 
(15
)
 
1

Earnings attributable to common shares
$
—

 
$
—

 
$
—

 
$
—

Sempra Energy’s Condensed Consolidated Statements of Operations include the following amounts associated with the tax equity limited liability companies. The amounts are net of eliminations of transactions between Sempra Energy and these entities.
AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS
 
 
(Dollars in millions)
 
 
 
 
Three months ended September 30, 2017
 
Nine months ended September 30, 2017
REVENUES
 
 
 
Energy-related businesses
$
17

 
$
48

EXPENSES
 
 
 
Operation and maintenance
(5
)
 
(14
)
Depreciation and amortization
(8
)
 
(24
)
Income before income taxes
4

 
10

Income tax expense
(3
)
 
(9
)
Net income
1

 
1

Losses attributable to noncontrolling interests(1)
6

 
16

Earnings
$
7

 
$
17

 
 
 
 
 
(1)
Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages.
Net Periodic Benefit Cost Table The following three tables provide the components of net periodic benefit cost:
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
31

 
$
26

 
$
4

 
$
4

Interest cost
39

 
40

 
9

 
9

Expected return on assets
(41
)
 
(41
)
 
(16
)
 
(17
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost
3

 
2

 
—

 
—

Actuarial loss (gain)
11

 
10

 
(2
)
 
(1
)
Settlements
8

 
—

 
—

 
—

Special termination benefits
—

 
—

 
16

 
—

Regulatory adjustment
(18
)
 
(28
)
 
(11
)
 
5

Total net periodic benefit cost
$
33

 
$
9

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
88

 
$
81

 
$
15

 
$
15

Interest cost
113

 
120

 
29

 
31

Expected return on assets
(121
)
 
(124
)
 
(49
)
 
(52
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost
8

 
8

 
—

 
—

Actuarial loss (gain)
27

 
23

 
(3
)
 
(1
)
Settlements
8

 
—

 
—

 
—

Special termination benefits
—

 
—

 
16

 
—

Regulatory adjustment
(59
)
 
(84
)
 
(7
)
 
9

Total net periodic benefit cost
$
64

 
$
24

 
$
1

 
$
2

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
7

 
$
7

 
$
1

 
$
1

Interest cost
9

 
10

 
2

 
2

Expected return on assets
(11
)
 
(12
)
 
(2
)
 
(3
)
Amortization of:
 
 
 
 
 
 
 
Actuarial loss
3

 
2

 
—

 
—

Regulatory adjustment
(7
)
 
(7
)
 
(1
)
 
—

Total net periodic benefit cost
$
1

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
22

 
$
22

 
$
4

 
$
3

Interest cost
28

 
31

 
6

 
6

Expected return on assets
(35
)
 
(37
)
 
(9
)
 
(8
)
Amortization of:

 
 
 

 
 
Prior service cost
1

 
1

 
2

 
2

Actuarial loss (gain)
7

 
7

 
—

 
(1
)
Regulatory adjustment
(21
)
 
(22
)
 
(3
)
 
(2
)
Total net periodic benefit cost
$
2

 
$
2

 
$
—

 
$
—

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 
Pension benefits
 
Other postretirement benefits
 
Three months ended September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
21

 
$
16

 
$
4

 
$
4

Interest cost
25

 
26

 
6

 
7

Expected return on assets
(26
)
 
(26
)
 
(14
)
 
(15
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost (credit)
3

 
3

 
(1
)
 
(1
)
Actuarial loss (gain)
6

 
3

 
(1
)
 
—

Special termination benefits
—

 
—

 
16

 
—

Regulatory adjustment
(11
)
 
(21
)
 
(10
)
 
5

Total net periodic benefit cost
$
18

 
$
1

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
57

 
$
51

 
$
11

 
$
11

Interest cost
73

 
76

 
21

 
24

Expected return on assets
(77
)
 
(78
)
 
(40
)
 
(43
)
Amortization of:
 
 
 
 

 
 
Prior service cost (credit)
7

 
7

 
(2
)
 
(3
)
Actuarial loss (gain)
14

 
8

 
(2
)
 
—

Special termination benefits
—

 
—

 
16

 
—

Regulatory adjustment
(38
)
 
(62
)
 
(4
)
 
11

Total net periodic benefit cost
$
36

 
$
2

 
$
—

 
$
—
Contributions to Benefit Plans Table The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2017:
BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
 
 
Sempra Energy
Consolidated
 
SDG&E
 
SoCalGas
Contributions through September 30, 2017:
 
 
 
 
 
 
Pension plans
 
$
64

 
$
3

 
$
35

Other postretirement benefit plans
 
5

 
1

 
2

Total expected contributions in 2017:
 
 
 
 
 
 
Pension plans
 
$
174

 
$
25

 
$
94

Other postretirement benefit plans
 
10

 
5

 
3
Earnings Per Share Computations Table The following table provides EPS computations for the three months and nine months ended September 30, 2017 and 2016. Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
(Dollars in millions, except per share amounts; shares in thousands)
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Earnings/Income attributable to common shares
$
57

 
$
622

 
$
757

 
$
991

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average common shares outstanding for basic EPS(1)
251,692

 
250,386

 
251,425

 
250,073

Dilutive effect of stock options, RSAs and RSUs(2)
1,672

 
2,019

 
1,562

 
1,903

Weighted-average common shares outstanding for diluted EPS
253,364

 
252,405

 
252,987

 
251,976

 
 
 
 
 
 
 
 
EPS:
 
 
 
 
 
 
 
Basic
$
0.23

 
$
2.48

 
$
3.01

 
$
3.96

Diluted
0.22

 
2.46

 
2.99

 
3.93

(1)
Includes 612 and 572 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended September 30, 2017 and 2016, respectively, and 607 and 565 of such RSUs for the nine months ended September 30, 2017 and 2016, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued.
(2)
Due to market fluctuations of both Sempra Energy stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period.
Capitalized Financing Costs Table Interest capitalized and AFUDC are as follows:
CAPITALIZED FINANCING COSTS
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Sempra Energy Consolidated
$
54

 
$
62

 
$
198

 
$
172

SDG&E
21

 
15

 
62

 
47

SoCalGas
15

 
14

 
45

 
41
Schedule of Accumulated Other Comprehensive Income (Loss) Table The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to noncontrolling interests:
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)
 
 
Three months ended September 30, 2017 and 2016
 
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2017
$
(478
)
 
$
(147
)
 
$
(93
)
 
$
(718
)
 
OCI before reclassifications
27

 
8

 
—

 
35

 
Amounts reclassified from AOCI
—

 
(2
)
 
7

 
5

 
Net OCI
27

 
6

 
7

 
40

 
Balance as of September 30, 2017
$
(451
)
 
$
(141
)
 
$
(86
)
 
$
(678
)
 
 
 
 
 
 
.
 
 
 
Balance as of June 30, 2016
$
(503
)
 
$
(264
)
 
$
(85
)
 
$
(852
)
 
OCI before reclassifications
(28
)
 
8

 
—

 
(20
)
 
Amounts reclassified from AOCI
—

 
5

 
2

 
7

 
Net OCI
(28
)
 
13

 
2

 
(13
)
 
Balance as of September 30, 2016
$
(531
)
 
$
(251
)
 
$
(83
)
 
$
(865
)
 
SDG&E:
 
 
 
 
 
 
 
 
Balance as of June 30, 2017
 
 
 
 
$
(8
)
 
$
(8
)
 
Amounts reclassified from AOCI
 
 
 
 
1

 
1

 
Net OCI
 
 
 
 
1

 
1

 
Balance as of September 30, 2017
 
 
 
 
$
(7
)
 
$
(7
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2016 and September 30, 2016
 
 
 
 
$
(8
)
 
$
(8
)
 
SoCalGas:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2017 and September 30, 2017
 
 
$
(13
)
 
$
(8
)
 
$
(21
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2016
 
 
$
(14
)
 
$
(5
)
 
$
(19
)
 
Amounts reclassified from AOCI
 
 
1

 
—

 
1

 
Net OCI
 
 
1

 
—

 
1

 
Balance as of September 30, 2016
 
 
$
(13
)
 
$
(5
)
 
$
(18
)
 
(1)
All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.

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)
 
 
Nine months ended September 30, 2017 and 2016
 
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2016
$
(527
)
 
$
(125
)
 
$
(96
)
 
$
(748
)
 
OCI before reclassifications
76

 
(20
)
 
—

 
56

 
Amounts reclassified from AOCI
—

 
4

 
10

 
14

 
Net OCI
76

 
(16
)
 
10

 
70

 
Balance as of September 30, 2017
$
(451
)
 
$
(141
)
 
$
(86
)
 
$
(678
)
 
 
 
 
 
 
.
 
 
 
Balance as of December 31, 2015
$
(582
)
 
$
(137
)
 
$
(87
)
 
$
(806
)
 
OCI before reclassifications
51

 
(122
)
 
—

 
(71
)
 
Amounts reclassified from AOCI
—

 
8

 
4

 
12

 
Net OCI
51

 
(114
)
 
4

 
(59
)
 
Balance as of September 30, 2016
$
(531
)
 
$
(251
)
 
$
(83
)
 
$
(865
)
 
SDG&E:
 
 
 
 
 
 
 
 
Balance as of December 31, 2016
 
 
 
 
$
(8
)
 
$
(8
)
 
Amounts reclassified from AOCI
 
 
 
 
1

 
1

 
Net OCI
 
 
 
 
1

 
1

 
Balance as of September 30, 2017
 
 
 
 
$
(7
)
 
$
(7
)
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2015 and September 30, 2016
 
 
 
 
$
(8
)
 
$
(8
)
 
SoCalGas:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2016
 
 
$
(13
)
 
$
(9
)
 
$
(22
)
 
Amounts reclassified from AOCI
 
 
—

 
1

 
1

 
Net OCI
 
 
—

 
1

 
1

 
Balance as of September 30, 2017
 
 
$
(13
)
 
$
(8
)
 
$
(21
)
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2015
 
 
$
(14
)
 
$
(5
)
 
$
(19
)
 
Amounts reclassified from AOCI
 
 
1

 
—

 
1

 
Net OCI
 
 
1

 
—

 
1

 
Balance as of September 30, 2016
 
 
$
(13
)
 
$
(5
)
 
$
(18
)
 
(1)
All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests.
Reclassifications out of AOCI Table
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 Condensed
Consolidated Statements of Operations
 
Three months ended September 30,
 
 
 
2017
 
2016
 
 
Sempra Energy Consolidated:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate and foreign exchange instruments(1)
$
—

 
$
4

 
Interest Expense
Interest rate instruments
2

 
3

 
Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments
—

 
7

 
Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments
(2
)
 
(2
)
 
Equity Earnings (Losses), Net of Income Tax
Foreign exchange instruments
(2
)
 
—

 
Revenues: Energy-Related Businesses
Total before income tax
(2
)
 
12

 
 
 
1

 
(3
)
 
Income Tax Benefit (Expense)
Net of income tax
(1
)
 
9

 
 
 
(1
)
 
(4
)
 
Earnings Attributable to Noncontrolling Interests
 
$
(2
)
 
$
5

 
 
Pension and other postretirement benefits:
 
 
 
 
 
Amortization of actuarial loss
$
11

 
$
4

 
See note (2) below
 
(4
)
 
(2
)
 
Income Tax Benefit (Expense)
Net of income tax
$
7

 
$
2

 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
5

 
$
7

 
 
SDG&E:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments(1)
$
3

 
$
3

 
Interest Expense
 
(3
)
 
(3
)
 
(Earnings) Losses Attributable to Noncontrolling Interest
 
$
—

 
$
—

 
 
Pension and other postretirement benefits:
 
 
 
 
 
Amortization of actuarial loss
$
1

 
$
—

 
See note (2) below
Total reclassifications for the period, net of tax
$
1

 
$
—

 
 
SoCalGas:
 

 
 

 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments
$
—

 
$
1

 
Interest Expense
Total reclassifications for the period, net of tax
$
—

 
$
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 “Pension and Other Postretirement Benefits” above).

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 Condensed
Consolidated Statements of Operations
 
Nine months ended September 30,
 
 
 
2017
 
2016
 
 
Sempra Energy Consolidated:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate and foreign exchange instruments(1)
$
(4
)
 
$
11

 
Interest Expense
Interest rate instruments
6

 
8

 
Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments
—

 
7

 
Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments
3

 
4

 
Equity Earnings (Losses), Net of Income Tax
Foreign exchange instruments
(1
)
 
—

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

 
(7
)
 
Revenues: Energy-Related Businesses
Total before income tax
13

 
23

 
 
 
(4
)
 
(4
)
 
Income Tax Benefit (Expense)
Net of income tax
9

 
19

 
 
 
(5
)
 
(11
)
 
Earnings Attributable to Noncontrolling Interests
 
$
4

 
$
8

 
 
Pension and other postretirement benefits:
 
 
 
 
 
Amortization of actuarial loss
$
16

 
$
8

 
See note (2) below
 
(6
)
 
(4
)
 
Income Tax Benefit (Expense)
Net of income tax
$
10

 
$
4

 
 
 
 
 
 
 
 
Total reclassifications for the period, net of tax
$
14

 
$
12

 
 
SDG&E:
 
 
 
 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments(1)
$
9

 
$
9

 
Interest Expense
 
(9
)
 
(9
)
 
(Earnings) Losses Attributable to Noncontrolling Interest
 
$
—

 
$
—

 
 
Pension and other postretirement benefits:
 
 
 
 
 
Amortization of actuarial loss
$
1

 
$
—

 
See note (2) below
Total reclassifications for the period, net of tax
$
1

 
$
—

 
 
SoCalGas:
 

 
 

 
 
Financial instruments:
 
 
 
 
 
Interest rate instruments
$
—

 
$
1

 
Interest Expense
Pension and other postretirement benefits:
 

 
 

 
 
Amortization of actuarial loss
1

 
—

 
See note (2) below
Total reclassifications for the period, net of tax
$
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 “Pension and Other Postretirement Benefits” above).
Shareholders' Equity and Noncontrolling Interests Table The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and noncontrolling interests for the nine months ended September 30, 2017 and 2016.
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
 
Sempra Energy
shareholders’
equity
 
Non-
controlling
interests(1)
 
Total
equity
Balance at December 31, 2016
$
12,951

 
$
2,290

 
$
15,241

Comprehensive income
828

 
60

 
888

Preferred dividends of subsidiary
(1
)
 
—

 
(1
)
Share-based compensation expense
44

 
—

 
44

Common stock dividends declared
(619
)
 
—

 
(619
)
Issuances of common stock
77

 
—

 
77

Repurchases of common stock
(15
)
 
—

 
(15
)
Equity contributed by noncontrolling interests
—

 
2

 
2

Distributions to noncontrolling interests
—

 
(115
)
 
(115
)
Balance at September 30, 2017
$
13,265

 
$
2,237

 
$
15,502

Balance at December 31, 2015
$
11,809

 
$
770

 
$
12,579

Cumulative-effect adjustment from change in accounting principle
107

 
—

 
107

Comprehensive income
933

 
117

 
1,050

Preferred dividends of subsidiary
(1
)
 
—

 
(1
)
Share-based compensation expense
38

 
—

 
38

Common stock dividends declared
(565
)
 
—

 
(565
)
Issuances of common stock
80

 
—

 
80

Repurchases of common stock
(55
)
 
—

 
(55
)
Equity contributed by noncontrolling interests
—

 
2

 
2

Distributions to noncontrolling interests
—

 
(44
)
 
(44
)
Balance at September 30, 2016
$
12,346

 
$
845

 
$
13,191

(1)
Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under “Other Noncontrolling Interests.”
SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E
(Dollars in millions)
 
SDG&E
shareholder’s
equity
 
Non-
controlling
interest
 
Total
equity
Balance at December 31, 2016
$
5,641

 
$
37

 
$
5,678

Comprehensive income
277

 
22

 
299

Common stock dividends declared
(450
)
 
—

 
(450
)
Equity contributed by noncontrolling interest
—

 
1

 
1

Distributions to noncontrolling interest
—

 
(25
)
 
(25
)
Balance at September 30, 2017
$
5,468

 
$
35

 
$
5,503

Balance at December 31, 2015
$
5,223

 
$
53

 
$
5,276

Cumulative-effect adjustment from change in accounting principle
23

 
—

 
23

Comprehensive income
419

 
3

 
422

Common stock dividends declared
(175
)
 
—

 
(175
)
Equity contributed by noncontrolling interest
—

 
1

 
1

Distributions to noncontrolling interest
—

 
(7
)
 
(7
)
Balance at September 30, 2016
$
5,490

 
$
50

 
$
5,540



SHAREHOLDERS’ EQUITY – SOCALGAS
(Dollars in millions)
 
Total
equity
Balance at December 31, 2016
$
3,510

Comprehensive income
270

Preferred stock dividends declared
(1
)
Balance at September 30, 2017
$
3,779

Balance at December 31, 2015
$
3,149

Cumulative-effect adjustment from change in accounting principle
15

Comprehensive income
200

Preferred stock dividends declared
(1
)
Balance at September 30, 2016
$
3,363
Ownership Interests Held By Others Table At September 30, 2017 and December 31, 2016, we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets:
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
 
 
 
Percent ownership held by noncontrolling interests
 
 Equity held by
noncontrolling interests
 
September 30,
2017
 
December 31,
2016
 
September 30,
2017
 
December 31,
2016
SDG&E:
 
 
 
 
 
 
 
Otay Mesa VIE
100
%
100
%
$
35

 
$
37

Sempra South American Utilities:
 
 
 
 
 
 
 
Chilquinta Energía subsidiaries(1)
22.9 – 43.4
 
23.1 – 43.4
 
23

 
22

Luz del Sur
16.4
 
16.4
 
185

 
173

Tecsur S.A.
9.8
 
9.8
 
4

 
4

Sempra Mexico:
 
 
 
 
 
 
 
IEnova
33.6
 
33.6
 
1,483

 
1,524

Sempra Renewables:
 
 
 
 
 
 
 
Tax equity arrangement – wind(2)
NA
 
 NA
 
91

 
92

Tax equity arrangement – solar(2)
NA
 
NA
 
354

 
376

Sempra LNG & Midstream:
 
 
 
 
 
 
 
Bay Gas
9.1
 
9.1
 
28

 
27

Liberty Gas Storage, LLC
23.3
 
23.3
 
14

 
14

Southern Gas Transmission Company(3)
—
 
49.0
 
—

 
1

Total Sempra Energy
 
 
 
 
$
2,217

 
$
2,270

(1)
Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
(2)
Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages, as we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
(3)
We sold our assets in Southern Gas Transmission Company in August 2017.
Transactions with Affiliates Table Amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas are as follows:
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
 
September 30, 2017
 
December 31, 2016
Sempra Energy Consolidated:
 
 
 
Total due from various unconsolidated affiliates – current
$
31

 
$
26

 
 
 
 
Sempra South American Utilities(1):
 
 
 
Eletrans – 4% Note(2)
$
98

 
$
96

Other related party receivables
1

 
1

Sempra Mexico(1):
 
 
 
IMG – Note due March 15, 2022(3)
307

 
—

Affiliate of joint venture with DEN – Notes due November 14, 2018(4)
93

 
90

Energía Sierra Juárez – Note(5)
7

 
14

Total due from unconsolidated affiliates – noncurrent
$
506

 
$
201

 
 
 
 
Total due to various unconsolidated affiliates – current
$
(10
)
 
$
(11
)
SDG&E:
 
 
 
Sempra Energy(6)
$
—

 
$
3

Various affiliates
1

 
1

Total due from unconsolidated affiliates – current
$
1

 
$
4

 
 
 
 
Sempra Energy
$
(29
)
 
$
—

SoCalGas
(6
)
 
(8
)
Various affiliates
(7
)
 
(7
)
Total due to unconsolidated affiliates – current
$
(42
)
 
$
(15
)
 
 
 
 
Income taxes due from Sempra Energy(7)
$
101

 
$
159

SoCalGas:
 
 
 
Due from SDG&E – current
$
6

 
$
8

 
 
 
 
Due to Sempra Energy – current
$
(35
)
 
$
(28
)
 
 
 
 
Income taxes due from Sempra Energy(7)
$
10

 
$
5

(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, which includes, collectively, joint ventures of Chilquinta Energía.
(3)
Mexican peso-denominated revolving line of credit for up to $9.0 billion Mexican pesos or approximately $495 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 basis points (9.58 percent at September 30, 2017), to finance construction of the natural gas marine pipeline.
(4)
Four U.S. dollar-denominated loans, at variable interest rates based on the 30-day LIBOR plus 450 basis points (5.73 percent at September 30, 2017), to finance the Los Ramones Norte pipeline.
(5)
U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 basis points (7.61 percent at September 30, 2017) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.
(6)
At December 31, 2016, net receivable included outstanding advances to Sempra Energy of $31 million at an interest rate of 0.68 percent.
(7)
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.


Revenues and cost of sales from unconsolidated affiliates are as follows:
REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Sempra Energy Consolidated
$
13

 
$
5

 
$
28

 
$
15

SDG&E
2

 
2

 
6

 
5

SoCalGas
21

 
21

 
56

 
56

Cost of Sales:
 
 
 
 
 
 
 
Sempra Energy Consolidated
$
8

 
$
10

 
$
36

 
$
60

SDG&E
16

 
16

 
55

 
46
Other Income and Expense Table Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following:
OTHER INCOME, NET
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
27

 
$
29

 
$
139

 
$
86

Investment gains(1)
13

 
9

 
43

 
29

Gains (losses) on interest rate and foreign exchange instruments, net
5

 
(11
)
 
99

 
(23
)
Foreign currency transaction (losses) gains
(10
)
 
(2
)
 
7

 
(9
)
Electrical infrastructure relocation income(2)
2

 
1

 
2

 
4

Regulatory interest, net(3)
1

 
1

 
3

 
4

Sundry, net
3

 
(1
)
 
8

 
7

Total
$
41

 
$
26

 
$
301

 
$
98

SDG&E:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
15

 
$
11

 
$
46

 
$
35

Regulatory interest, net(3)
1

 
—

 
3

 
3

Total
$
16

 
$
11

 
$
49

 
$
38

SoCalGas:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
11

 
$
10

 
$
33

 
$
30

Regulatory interest, net(3)
—

 
1

 
—

 
1

Sundry, net
(3
)
 
(3
)
 
(5
)
 
(7
)
Total
$
8

 
$
8

 
$
28

 
$
24

(1)
Represents investment 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 Operation and Maintenance on the Condensed Consolidated Statements of Operations.
(2)
Income at Luz del Sur associated with the relocation of electrical infrastructure.
(3)
Interest on regulatory balancing accounts.
Income Tax Expense and Effective Income Tax Rates Table
INCOME TAX (BENEFIT) EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
 
Income tax
(benefit) expense
 
Effective
income tax rate
 
Income tax
expense
 
Effective
income tax rate
 
Three months ended September 30,
 
2017
 
2016
Sempra Energy Consolidated
$
(84
)
 
(560
)%
 
$
282

 
29
%
SDG&E
(72
)
 
79

 
91

 
32

SoCalGas
(14
)
 
200

 
21

 
100

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2017
 
2016
Sempra Energy Consolidated
$
378

 
32
 %
 
$
284

 
21
%
SDG&E
72

 
20

 
204

 
33

SoCalGas
103

 
28

 
75

 
27