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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivative Volumes Table We summarize net energy derivative volumes at June 30, 2018 and December 31, 2017 as follows:
NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
Commodity
Unit of measure
 
June 30,
2018
 
December 31,
2017
California Utilities:
 
 
 
 
 
SDG&E:
 
 
 
 
 
Natural gas
MMBtu
 
41

 
39

Electricity
MWh
 
3

 
3

Congestion revenue rights
MWh
 
53

 
59

Energy-Related Businesses:
 
 
 
 
 
Sempra LNG & Midstream – natural gas
MMBtu
 
13

 
3

Sempra Mexico – natural gas
MMBtu
 
11

 
4
Notional Amounts of Derivatives Table At June 30, 2018 and December 31, 2017, the net notional amounts of our interest rate derivatives, excluding joint ventures, were:
INTEREST RATE DERIVATIVES
(Dollars in millions)
 
June 30, 2018
 
December 31, 2017
 
Notional debt
 
Maturities
 
Notional debt
 
Maturities
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Cash flow hedges(1)
$
827

 
2018-2032
 
$
861

 
2018-2032
SDG&E:
 
 
 
 
 
 
 
Cash flow hedge(1)
290

 
2018-2019
 
295

 
2018-2019
(1) 
Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE.
At June 30, 2018 and December 31, 2017, the net notional amounts of our foreign currency derivatives, excluding joint ventures, were:
FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
 
June 30, 2018
 
December 31, 2017
 
Notional amount
 
Maturities
 
Notional amount
 
Maturities
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Cross-currency swaps
$
306

 
2018-2023
 
$
408

 
2018-2023
Other foreign currency derivatives
1,055

 
2018-2019
 
345

 
2018-2019
Derivative Instruments on the Condensed Consolidated Balance Sheets Table The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions.
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
 
June 30, 2018
 
Current
assets:
Fixed-price
contracts
and other
derivatives(1)
 
Other
assets:
Sundry
 
Current liabilities:
Fixed-price
contracts
and other
derivatives(2)
 
Deferred
credits
and other
liabilities:
Fixed-price
contracts
and other
derivatives
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate and foreign exchange instruments(3)(4)
$
7

 
$
2

 
$
(8
)
 
$
(138
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange instruments
9

 
—

 
—

 
—

Commodity contracts not subject to rate recovery
44

 
13

 
(44
)
 
(11
)
Associated offsetting commodity contracts
(37
)
 
(10
)
 
37

 
10

Commodity contracts subject to rate recovery
16

 
99

 
(63
)
 
(109
)
Associated offsetting commodity contracts
(2
)
 
(1
)
 
2

 
1

Associated offsetting cash collateral
—

 
—

 
9

 
4

Net amounts presented on the balance sheet
37

 
103

 
(67
)
 
(243
)
Additional cash collateral for commodity contracts
not subject to rate recovery
14

 
—

 
—

 
—

Additional cash collateral for commodity contracts
subject to rate recovery
19

 
—

 
—

 
—

Total(5)
$
70

 
$
103

 
$
(67
)
 
$
(243
)
SDG&E:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate instruments(3)
$
—

 
$
—

 
$
(7
)
 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
14

 
98

 
(60
)
 
(109
)
Associated offsetting commodity contracts
(2
)
 
(1
)
 
2

 
1

Associated offsetting cash collateral
—

 
—

 
9

 
4

Net amounts presented on the balance sheet
12

 
97

 
(56
)
 
(104
)
Additional cash collateral for commodity contracts
subject to rate recovery
18

 
—

 
—

 
—

Total(5)
$
30

 
$
97


$
(56
)

$
(104
)
SoCalGas:
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
$
2

 
$
1

 
$
(3
)
 
$
—

Net amounts presented on the balance sheet
2

 
1

 
(3
)
 
—

Additional cash collateral for commodity contracts
subject to rate recovery
1

 
—

 
—

 
—

Total
$
3

 
$
1

 
$
(3
)
 
$
—

 
(1) 
Included in Current Assets: Other for SoCalGas.
(2) 
Included in Current Liabilities: Other for SoCalGas.
(3) 
Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.
(4) 
Includes $1 million of current assets and $2 million of noncurrent assets in Assets Held for Sale, as we discuss in Note 5.
(5) 
Normal purchase contracts previously measured at fair value are excluded.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
 
December 31, 2017
 
Current
assets:
Fixed-price
contracts
and other
derivatives(1)
 
Other
assets:
Sundry
 
Current liabilities:
Fixed-price
contracts
and other
derivatives(2)
 
Deferred
credits
and other
liabilities:
Fixed-price
contracts
and other
derivatives
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate and foreign exchange instruments(3)
$
5

 
$
2

 
$
(51
)
 
$
(165
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange instruments
—

 
—

 
(1
)
 
—

Commodity contracts not subject to rate recovery
81

 
8

 
(72
)
 
(6
)
Associated offsetting commodity contracts
(67
)
 
(5
)
 
67

 
5

Commodity contracts subject to rate recovery
28

 
101

 
(65
)
 
(120
)
Associated offsetting commodity contracts
—

 
(1
)
 
—

 
1

Associated offsetting cash collateral
—

 
—

 
19

 
4

Net amounts presented on the balance sheet
47

 
105

 
(103
)
 
(281
)
Additional cash collateral for commodity contracts
not subject to rate recovery
2

 
—

 
—

 
—

Additional cash collateral for commodity contracts
subject to rate recovery
17

 
—

 
—

 
—

Total(4)
$
66

 
$
105

 
$
(103
)
 
$
(281
)
SDG&E:
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate instruments(3)
$
—

 
$
—

 
$
(10
)
 
$
(3
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
26

 
101

 
(63
)
 
(120
)
Associated offsetting commodity contracts
—

 
(1
)
 
—

 
1

Associated offsetting cash collateral
—

 
—

 
19

 
4

Net amounts presented on the balance sheet
26

 
100

 
(54
)
 
(118
)
Additional cash collateral for commodity contracts
subject to rate recovery
16

 
—

 
—

 
—

Total(4)
$
42

 
$
100

 
$
(54
)
 
$
(118
)
SoCalGas:
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity contracts subject to rate recovery
$
2

 
$
—

 
$
(2
)
 
$
—

Net amounts presented on the balance sheet
2

 
—

 
(2
)
 
—

Additional cash collateral for commodity contracts
subject to rate recovery
1

 
—

 
—

 
—

Total
$
3

 
$
—

 
$
(2
)
 
$
—

(1) Included in Current Assets: Other for SoCalGas.
(2) Included in Current Liabilities: Other for SoCalGas.
(3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.
(4) Normal purchase contracts previously measured at fair value are excluded.
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months and six months ended June 30:
CASH FLOW HEDGE IMPACTS
(Dollars in millions)
 
Pretax (loss) gain
recognized in OCI
 
 
 
Pretax (loss) gain reclassified
from AOCI into earnings
 
Three months ended June 30,
 
 
 
Three months ended June 30,
 
2018
 
2017
 
Location
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
Interest rate and foreign
exchange instruments(1)
$
(13
)
 
$
(8
)
 
Interest Expense(1)
 
$
(1
)
 
$
1

 
 
 
 
 
Other (Expense) Income,
     Net
 
(18
)
 
—

Interest rate and foreign
exchange instruments
33

 
(41
)
 
Equity (Losses) Earnings
 
(1
)
 
(5
)
Foreign exchange instruments
5

 
(1
)
 
Revenues: Energy-
Related Businesses
 
1

 
1

Total
$
25

 
$
(50
)
 
 
 
$
(19
)
 
$
(3
)
SDG&E:
 
 
 
 
 
 
 
 
 
Interest rate instruments(1)
$
—

 
$
(2
)
 
Interest Expense(1)
 
$
(1
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
 
 
Six months ended June 30,
 
2018
 
2017
 
Location
 
2018
 
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
 
 
Interest rate and foreign
exchange instruments(1)
$
41

 
$
8

 
Interest Expense(1)
 
$
1

 
$
4

Interest rate and foreign
exchange instruments
103

 
(55
)
 
Equity (Losses) Earnings
 
(5
)
 
(9
)
Foreign exchange instruments
(2
)
 
(10
)
 
Revenues: Energy-
Related Businesses
 
1

 
(1
)
Commodity contracts not subject
to rate recovery
—

 
3

 
Revenues: Energy-
Related Businesses
 
—

 
(9
)
Total
$
142

 
$
(54
)
 
 
 
$
(3
)
 
$
(15
)
SDG&E:
 
 
 
 
 
 
 
 
 
Interest rate instruments(1)
$
1

 
$
(2
)
 
Interest Expense(1)
 
$
(4
)
 
$
(6
)
(1) 
Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE.
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and six months ended June 30 were:
UNDESIGNATED DERIVATIVE IMPACTS
 
 
 
(Dollars in millions)
 
 
 
 
 
Pretax gain (loss) on derivatives recognized in earnings
 
 
Three months ended
June 30,
 
Six months ended
June 30,
 
Location
2018
 
2017
 
2018
2017
Sempra Energy Consolidated:
 
 
 
 
 
 
 
Foreign exchange instruments
Other (Expense) Income, Net
$
(37
)
 
$
32

 
$
7

$
97

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

 
16

 
(9
)
30

Commodity contracts not subject
to rate recovery
Operation and Maintenance
—

 
—

 
—

(1
)
Commodity contracts subject
to rate recovery
Cost of Electric Fuel
and Purchased Power
6

 
6

 
8

(23
)
Commodity contracts subject
to rate recovery
Cost of Natural Gas
—

 
—

 
1

—

Total
 
$
(31
)
 
$
54

 
$
7

$
103

SDG&E:
 
 
 
 
 
 
 
Commodity contracts subject
to rate recovery
Cost of Electric Fuel
and Purchased Power
$
6

 
$
6

 
$
8

$
(23
)
SoCalGas:
 
 
 
 
 
 
 
Commodity contracts not subject
to rate recovery
Operation and Maintenance
$
—

 
$
—

 
$
—

$
(1
)
Commodity contracts subject
to rate recovery
Cost of Natural Gas
—

 
—

 
1

—

Total
 
$
—

 
$
—

 
$
1

$
(1
)