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SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

These reclassifications and related disclosures had no effect on our financial position as of December 31, 2016 and are intended to provide additional clarity into the financial position of Sempra Energy, SDG&E and SoCalGas. The following tables summarize the balance sheet line items affected by these reclassifications:



SEMPRA ENERGY CONSOLIDATED – BALANCE SHEET RECLASSIFICATIONS AT DECEMBER 31, 2016
(Dollars in millions)
	As previously presented		As currently presented
Current assets:
Regulatory assets	$	—	$	348
Greenhouse gas allowances	—		40
Regulatory balancing accounts – undercollected	259		—
Other	271		142
Other assets:
Greenhouse gas allowances	—		295
Sundry	815		520
Current liabilities:
Regulatory liabilities	—		122
Greenhouse gas obligations	—		40
Regulatory balancing accounts – overcollected	122		—
Other	557		517
Deferred credits and other liabilities:
Regulatory liabilities	—		2,876
Greenhouse gas obligations	—		171
Regulatory liabilities arising from removal obligations	2,697		—
Deferred credits and other	1,523		1,173



SDG&E – BALANCE SHEET RECLASSIFICATIONS AT DECEMBER 31, 2016
(Dollars in millions)
	As previously presented		As currently presented
Current assets:
Regulatory assets	$	81	$	340
Greenhouse gas allowances	—		16
Regulatory balancing accounts – net undercollected	259		—
Other	19		3
Other assets:
Regulatory assets	—		2,012
Greenhouse gas allowances	—		182
Deferred taxes recoverable in rates	1,014		—
Other regulatory assets	998		—
Sundry	358		176
Current liabilities:
Greenhouse gas obligations	—		16
Other	82		66
Deferred credits and other liabilities:
Regulatory liabilities	—		1,725
Greenhouse gas obligations	—		72
Regulatory liabilities arising from removal obligations	1,725		—
Deferred credits and other	421		349



SOCALGAS – BALANCE SHEET RECLASSIFICATIONS AT DECEMBER 31, 2016
(Dollars in millions)
	As previously presented		As currently presented
Current assets:
Greenhouse gas allowances	$	—	$	24
Other	63		39
Other assets:
Regulatory assets	—		1,331
Greenhouse gas allowances	—		109
Regulatory assets arising from pension obligations	742		—
Other regulatory assets	589		—
Sundry	399		290
Current liabilities:
Regulatory liabilities	—		122
Greenhouse gas obligations	—		24
Regulatory balancing accounts – net overcollected	122		—
Other	195		171
Deferred credits and other liabilities:
Regulatory liabilities	—		1,151
Greenhouse gas obligations	—		96
Regulatory liabilities arising from removal obligations	972		—
Deferred credits and other	521		246

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,
	2017		2016
Sempra Energy Consolidated:
Cash and cash equivalents	$	288	$	349
Restricted cash, current	62		66
Restricted cash, noncurrent	14		10
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	364	$	425
SDG&E:
Cash and cash equivalents	$	12	$	8
Restricted cash, current	6		11
Restricted cash, noncurrent	11		1
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	29	$	20

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,
	2017		2016		2015
Sempra Energy Consolidated:
Allowances for collection of receivables at January 1	$	35	$	32	$	34



Provisions for uncollectible accounts	16			23			20
Write-offs of uncollectible accounts	(18		)	(20		)	(22		)
Allowances for collection of receivables at December 31	$	33		$	35		$	32
SDG&E:
Allowances for collection of receivables at January 1	$	8		$	9		$	7
Provisions for uncollectible accounts	8			6			7
Write-offs of uncollectible accounts	(7		)	(7		)	(5		)
Allowances for collection of receivables at December 31	$	9		$	8		$	9
SoCalGas:
Allowances for collection of receivables at January 1	$	21		$	17		$	17
Provisions for uncollectible accounts	4			14			11
Write-offs of uncollectible accounts	(9		)	(10		)	(11		)
Allowances for collection of receivables at December 31	$	16		$	21		$	17

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
	2017		2016		2017		2016		2017		2016		2017		2016
SDG&E	$	4	$	2	$	—	$	—	$	101	$	78	$	105	$	80
SoCalGas⁽¹⁾	75		11		—		—		49		47		124		58
Sempra South American Utilities	—		—		—		—		30		27		30		27
Sempra Mexico	—		—		7		6		2		1		9		7
Sempra Renewables	—		—		—		—		5		4		5		4
Sempra LNG & Midstream	30		79		4		3		—		—		34		82
Sempra Energy Consolidated	$	109	$	92	$	11	$	9	$	187	$	157	$	307	$	258


⁽¹⁾	At December 31, 2016, SoCalGas’ natural gas inventory for core customers is net of an inventory loss related to the Aliso Canyon natural gas storage facility leak, which we discuss in Note 15.

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,
	2017		2016		2017		2016			2015
SDG&E:
Natural gas operations	$	2,186	$	1,897	2.40	%	2.40	%		2.52	%
Electric distribution	6,975		6,497		3.92		3.86			3.79
Electric transmission⁽¹⁾	5,626		5,152		2.71		2.66			2.62
Electric generation⁽²⁾	2,435		1,932		4.05		4.00			3.89
Other electric⁽³⁾	1,114		1,059		5.54		5.66			5.73
Construction work in progress⁽¹⁾	1,451		1,307		NA		NA			NA
Total SDG&E	19,787		17,844
SoCalGas:
Natural gas operations⁽⁴⁾	15,759		14,428		3.63		3.64			3.83
Other non-utility	32		34		5.28		6.55			3.95
Construction work in progress	981		882		NA		NA			NA
Total SoCalGas	16,772		15,344

					Estimated				Weighted-average
Other operating units and parent⁽⁵⁾:					useful lives				useful life
Land and land rights	416		381		22 to 55 years⁽⁶⁾				33
Machinery and equipment:
Utility electric distribution operations	1,751		1,519		12 to 60 years				52
Generating plants	2,242		1,874		2 to 100 years				31
LNG terminals	1,133		1,129		43 years				43
Pipelines and storage	4,408		3,242		3 to 55 years				43
Other	269		235		1 to 50 years				13
Construction work in progress	691		1,488		NA				NA
Other⁽⁷⁾	639		568		1 to 80 years				33
	11,549		10,436
Total Sempra Energy Consolidated	$	48,108	$	43,624

⁽¹⁾

At December 31, 2017, includes $440 million in electric transmission assets and $29 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 $757 million and $258 million at December 31, 2017 and 2016, respectively.


⁽³⁾	Includes capital lease assets of $22 million and $21 million at December 31, 2017 and 2016, respectively.


⁽⁴⁾	Includes capital lease assets of $34 million and $32 million at December 31, 2017 and 2016, respectively.


⁽⁵⁾	Includes $145 million and $128 million at December 31, 2017 and 2016, 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 at both December 31, 2017 and 2016, related to a build-to-suit lease.

Accumulated depreciation on our Consolidated Balance Sheets is as follows:



ACCUMULATED DEPRECIATION
(Dollars in millions)
	December 31,
	2017		2016
SDG&E:
Accumulated depreciation:
Electric⁽¹⁾	$	4,193	$	3,873
Natural gas	756		721
Total SDG&E	4,949		4,594
SoCalGas:
Accumulated depreciation of natural gas utility plant in service⁽²⁾	5,352		5,079
Accumulated depreciation – other non-utility	14		13
Total SoCalGas	5,366		5,092
Other operating units and parent and other:
Accumulated depreciation – other⁽³⁾	972		755
Accumulated depreciation of utility electric distribution operations	318		252
	1,290		1,007
Total Sempra Energy Consolidated	$	11,605	$	10,693


⁽¹⁾	Includes accumulated depreciation for capital lease assets of $47 million and $39 million at December 31, 2017 and 2016, respectively. Includes $241 million at December 31, 2017 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 $33 million and $31 million at December 31, 2017 and 2016, respectively.


⁽³⁾	Includes $39 million and $33 million at December 31, 2017 and 2016, respectively, of accumulated depreciation for utility plant at Ecogas.

Depreciation expense on our Consolidated Statements of Operations is as follows:



DEPRECIATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2017		2016		2015
Sempra Energy Consolidated	$	1,422	$	1,236	$	1,178
SDG&E	621		583		544
SoCalGas	514		474		459

Schedule Of Capitalized Financing Costs

Interest capitalized and AFUDC are as follows:



CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2017		2016		2015
Sempra Energy Consolidated	$	256	$	236	$	201
SDG&E	85		62		51
SoCalGas	60		55		49

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			Sempra LNG & Midstream			Total
Balance at December 31, 2015	$	722	$	25		$	72		$	819
Acquisition of businesses	—		1,590			—			1,590
Sale of business	—		—			(72		)	(72		)
Foreign currency translation⁽¹⁾	27		—			—			27
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


⁽¹⁾	We record the offset of this fluctuation to Other Comprehensive Income (Loss).

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)	2017		2016
Development rights	50	$	322	$	322
Renewable energy transmission and consumption permit	19	154		154



Storage rights	46	138			138
O&M agreement	23	66			—
Other	10 years to indefinite	18			18
		698			632
Less accumulated amortization:
Development rights		(60		)	(53		)
Renewable energy transmission and consumption permit		(8		)	—
Storage rights		(28		)	(25		)
Other		(6		)	(6		)
		(102		)	(84		)
		$	596		$	548

Schedule Of Variable Interest Entities

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,
	2017		2016
Cash and cash equivalents	$	4	$	6
Restricted cash	6		11
Inventories	4		3
Other	1		2
Total current assets	15		22
Restricted cash	11		1
Property, plant and equipment, net	321		354
Total assets	$	347	$	377

Current portion of long-term debt	$	10	$	10
Fixed-price contracts and other derivatives	10		13
Other	5		5
Total current liabilities	25		28
Long-term debt	284		293
Fixed-price contracts and other derivatives	3		12
Deferred credits and other	7		7
Noncontrolling interest	28		37
Total liabilities and equity	$	347	$	377



	Years ended December 31,
	2017			2016			2015
Operating expenses
Cost of electric fuel and purchased power	$	(79	)	$	(79	)	$	(83	)
Operation and maintenance	17			29			19
Depreciation and amortization	28			35			26
Total operating expenses	(34		)	(15		)	(38		)
Operating income	34			15			38
Other income	2			—			—
Interest expense	(22		)	(20		)	(19		)
Income (loss) before income taxes/Net Income (loss)	14			(5		)	19
(Earnings) losses attributable to noncontrolling interest	(14		)	5			(19		)
Earnings attributable to common shares	$	—		$	—		$	—



AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS
(Dollars in millions)
	December 31,
	2017		2016
Cash and cash equivalents	$	23	$	88
Accounts receivable – trade, net	5		3
Inventories	1		—
Other	1		—
Total current assets	30		91
Sundry	2		—
Property, plant and equipment, net	1,412		926
Total assets	1,444		1,017

Accounts payable	42		68
Other	1		7
Total current liabilities	43		75
Asset retirement obligations	40		27
Deferred income taxes	10		—
Deferred credits and other	1		—
Total deferred credits and other liabilities	94		102

Other noncontrolling interests	631		468
Net assets less other noncontrolling interests	$	719	$	447



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

⁽¹⁾Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages.

Schedule Of Asset Retirement Obligations

The changes in asset retirement obligations are as follows:



CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
	Sempra Energy Consolidated						SDG&E						SoCalGas
	2017			2016			2017			2016			2017			2016
Balance as of January 1⁽¹⁾	$	2,553		$	2,255		$	830		$	828		$	1,659		$	1,383
Accretion expense	109			101			39			38			66			61
Liabilities incurred and acquired	34			35			17			—			—			—
Deconsolidation and reclassification⁽²⁾	—			(16		)	—			—			—			—
Payments	(63		)	(47		)	(61		)	(46		)	(2		)	—
Revisions⁽³⁾	244			225			14			10			230			215
Balance at December 31⁽¹⁾	$	2,877		$	2,553		$	839		$	830		$	1,953		$	1,659


⁽¹⁾	Current portions of the obligations for Sempra Energy Consolidated and SoCalGas are included in Other Current Liabilities on the Consolidated Balance Sheets.


⁽²⁾	Deconsolidated $12 million due to the September 2016 sale of EnergySouth and reclassified $4 million to Liabilities Held for Sale, as we discuss in Note 3.


⁽³⁾	In 2017, revised estimates were primarily related to underground natural gas storage facilities and wells at SoCalGas. In 2016, revised estimates were related to changes in the cost of removal rates primarily for natural gas assets based on updated cost studies approved in the 2016 GRC FD.

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 noncontrolling interests, for the years ended December 31:



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, 2014	$	(322	)		$	(90	)	$	(85	)	$	(497	)

OCI before reclassifications	(260		)		(57		)	(10		)	(327		)
Amounts reclassified from AOCI	—				10			8			18
Net OCI	(260		)		(47		)	(2		)	(309		)
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	)
SDG&E:
Balance as of December 31, 2014								$	(12	)	$	(12	)

OCI before reclassifications								3			3
Amounts reclassified from AOCI								1			1
Net OCI								4			4
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	)
SoCalGas:
Balance as of December 31, 2014					$	(14	)	$	(4	)	$	(18	)

OCI before reclassifications					—			(1		)	(1		)
Net OCI					—			(1		)	(1		)
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	)


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


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

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,
	2017			2016			2015
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments⁽¹⁾	$	(4	)	$	17		$	18		Interest Expense
Interest rate instruments	8			10			12			Equity Earnings, Before Income Tax
Interest rate and foreign exchange instruments	—			7			—			Remeasurement of Equity Method Investment
Interest rate and foreign exchange instruments	12			5			13			Equity Earnings, Net of Income Tax
Foreign exchange instruments	(2		)	—			—			Revenues: Energy-Related Businesses
Commodity contracts not subject to rate recovery	9			(6		)	(14		)	Revenues: Energy-Related Businesses
Total before income tax	23			33			29
	(6		)	(6		)	(4		)	Income Tax Expense
Net of income tax	17			27			25
	(10		)	(15		)	(15		)	Earnings Attributable to Noncontrolling Interests
	$	7		$	12		$	10
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	18		$	10		$	14
Amortization of prior service cost⁽²⁾	1			1			—
Total before income tax	19			11			14
	(7		)	(5		)	(6		)	Income Tax Expense
Net of income tax	$	12		$	6		$	8

Total reclassifications for the period, net of tax	$	19		$	18		$	18
SDG&E:
Financial instruments:
Interest rate instruments⁽¹⁾	$	13		$	12		$	12		Interest Expense
	(13		)	(12		)	(12		)	(Earnings) Losses Attributable to Noncontrolling Interest
	$	—		$	—		$	—
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	1		$	1		$	1

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

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 “Net Periodic Benefit Cost” in Note 7).

Schedule Of Noncontrolling Interests

At December 31, 2017 and 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 Consolidated Balance Sheets:



OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by others				Equity held by noncontrolling interests
	December 31,				December 31,
	2017		2016		2017		2016
SDG&E:
Otay Mesa VIE	100	%	100	%	$	28	$	37
Sempra South American Utilities:
Chilquinta Energía subsidiaries⁽¹⁾	22.9 - 43.4		23.1 - 43.4		24		22
Luz del Sur	16.4		16.4		189		173
Tecsur	9.8		9.8		4		4
Sempra Mexico:
IEnova⁽²⁾	33.6		33.6		1,532		1,524
Sempra Renewables:
Tax equity arrangements – wind⁽³⁾	NA		NA		181		92
Tax equity arrangements – solar⁽³⁾	NA		NA		450		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⁽⁴⁾	—		49.0		—		1
Total Sempra Energy					$	2,450	$	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⁾	IEnova has a subsidiary with a 10-percent noncontrolling interest held by others. The equity held by noncontrolling interests is negligible at December 31, 2017 and 2016.


⁽³⁾	Net income or loss attributable to the noncontrolling interests is computed using the HLBV method and is not based on ownership percentages.


⁽⁴⁾	We sold our assets in Southern Gas Transmission Company in August 2017.

Schedule Of Utilities Revenues

The table below shows the total utilities revenues in Sempra Energy’s Consolidated Statements of Operations for each of the last three years. The revenues include amounts for services rendered but unbilled (approximately one-half month’s deliveries) at the end of each year.



TOTAL UTILITIES REVENUES AT SEMPRA ENERGY CONSOLIDATED⁽¹⁾
(Dollars in millions)
	Years ended December 31,
	2017		2016		2015
Electric revenues	$	5,415	$	5,211	$	5,158
Natural gas revenues	4,361		4,050		4,096
Total	$	9,776	$	9,261	$	9,254


⁽¹⁾	Excludes intercompany revenues.

Schedule of Related Party Transactions

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)
	December 31,
	2017			2016
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates – current	$	37		$	26

Sempra South American Utilities⁽¹⁾:
Eletrans – 4% Note⁽²⁾	$	103		$	96
Other related party receivables	1			1
Sempra Mexico⁽¹⁾:
IMG – Note due March 15, 2022⁽³⁾	487			—
DEN – Notes due November 14, 2018⁽⁴⁾	—			90
Energía Sierra Juárez – Note⁽⁵⁾	7			14
Total due from unconsolidated affiliates – noncurrent	$	598		$	201

Total due to various unconsolidated affiliates – current	$	(7	)	$	(11	)

Sempra Mexico⁽¹⁾:
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021⁽⁶⁾	$	(35	)	$	—
SDG&E:
Sempra Energy⁽⁷⁾	$	—		$	3
Various affiliates	—			1
Total due from unconsolidated affiliates – current	$	—		$	4

Sempra Energy	$	(30	)	$	—
SoCalGas	(4		)	(8		)
Various affiliates	(6		)	(7		)
Total due to unconsolidated affiliates – current	$	(40	)	$	(15	)

Income taxes due from Sempra Energy⁽⁸⁾	$	27		$	159
SoCalGas:
Total due from unconsolidated affiliates – current – SDG&E	$	4		$	8

Total due to unconsolidated affiliates – current – Sempra Energy	$	(35	)	$	(28	)

Income taxes due from Sempra Energy⁽⁸⁾	$	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, comprising joint ventures of Chilquinta Energía.


⁽³⁾	Mexican peso-denominated revolving line of credit for up to $14.0 billion Mexican pesos or approximately $718 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (9.87 percent at December 31, 2017), to finance construction of the natural gas marine pipeline.


⁽⁴⁾	Four U.S. dollar-denominated loans, at a variable interest rate based on the 30-day LIBOR plus 450 bps (5.27 percent at December 31, 2016), to finance the Los Ramones Norte pipeline project. In November 2017, IEnova acquired the remaining 50-percent interest in DEN and DEN became a wholly owned, consolidated subsidiary of IEnova.


⁽⁵⁾	U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps (7.94 percent at December 31, 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⁾	U.S. dollar-denominated loan, at a variable interest rate based on 6-month LIBOR plus 290 bps (4.74 percent at December 31, 2017).


⁽⁷⁾	At December 31, 2016, net receivable included outstanding advances to Sempra Energy of $31 million at an interest rate of 0.68 percent.


⁽⁸⁾	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)
	Years ended December 31,
	2017		2016		2015
Revenues:
Sempra Energy Consolidated	$	43	$	25	$	26
SDG&E	8		7		10
SoCalGas	74		76		75
Cost of Sales:
Sempra Energy Consolidated	$	47	$	72	$	107
SDG&E	71		64		49

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,
	2017			2016			2015
Sempra Energy Consolidated:
Allowance for equity funds used during construction	$	168		$	116		$	107
Investment gains⁽¹⁾	56			23			3
Gains (losses) on interest rate and foreign exchange instruments, net	47			(32		)	(4		)
Foreign currency transaction losses⁽²⁾	(35		)	(1		)	(7		)
Sale of other investments	3			5			11
Electrical infrastructure relocation income	3			10			7
Interest on regulatory balancing accounts, net	3			4			3
Sundry, net	9			7			6
Total	$	254		$	132		$	126
SDG&E:
Allowance for equity funds used during construction	$	63		$	46		$	37
Interest on regulatory balancing accounts, net	3			3			3
Sundry, net	—			1			(4		)
Total	$	66		$	50		$	36
SoCalGas:
Allowance for equity funds used during construction	$	44		$	40		$	36
Interest on regulatory balancing accounts, net	—			1			—
Sundry, net	(8		)	(9		)	(6		)
Total	$	36		$	32		$	30


⁽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 Consolidated Statements of Operations.


⁽²⁾	Includes $35 million loss from translation of Mexican peso-denominated loan to IMG JV to U.S. dollars.