DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity Derivative Volumes Table

The following table summarizes net energy derivative volumes.

NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
Commodity	Unit of measure	September 30, 2022	December 31, 2021
Sempra:
Natural gas	MMBtu	222	184
Electricity	MWh	—	1
Congestion revenue rights	MWh	47	45
SDG&E:
Natural gas	MMBtu	13	7
Electricity	MWh	—	1
Congestion revenue rights	MWh	47	45
SoCalGas:
Natural gas	MMBtu	196	201

Notional Amounts of Derivatives Table

The following table presents the net notional amounts of our interest rate derivatives, excluding those in our equity method investments.

INTEREST RATE DERIVATIVES
(Dollars in millions)
	September 30, 2022			December 31, 2021
	Notional debt		Maturities	Notional debt		Maturities
Sempra:
Cash flow hedges	$	297	2022-2034	$	462	2022-2034

The following table presents the net notional amounts of our foreign currency derivatives, excluding those in our equity method investments.

FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	September 30, 2022			December 31, 2021
	Notional amount		Maturities	Notional amount		Maturities
Sempra:
Cross-currency swaps	$	306	2022-2023	$	306	2022-2023
Other foreign currency derivatives	135		2022-2024	106		2022-2023

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	September 30, 2022
	Other current assets		Other long-term assets		Other current liabilities		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate instruments	$	5	$	38	$	—	$	—
Foreign exchange instruments	—		1		(2)		—
Interest rate and foreign exchange instruments	—		—		(117)		—
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	200		103		(202)		(102)
Associated offsetting commodity contracts	(190)		(41)		190		41
Commodity contracts subject to rate recovery	31		25		(20)		(8)
Associated offsetting commodity contracts	(3)		(3)		3		3
Net amounts presented on the balance sheet	43		123		(148)		(66)
Additional cash collateral for commodity contracts not subject to rate recovery	80		—		—		—
Additional cash collateral for commodity contracts subject to rate recovery	39		—		—		—
Total(1)	$	162	$	123	$	(148)	$	(66)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	30	$	25	$	(3)	$	(7)
Associated offsetting commodity contracts	(3)		(3)		3		3
Net amounts presented on the balance sheet	27		22		—		(4)
Additional cash collateral for commodity contracts subject to rate recovery	37		—		—		—
Total(1)	$	64	$	22	$	—	$	(4)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	1	$	—	$	(17)	$	(1)
Net amounts presented on the balance sheet	1		—		(17)		(1)
Additional cash collateral for commodity contracts subject to rate recovery	2		—		—		—
Total	$	3	$	—	$	(17)	$	(1)

(1)    Normal purchase contracts previously measured at fair value are excluded.

DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	December 31, 2021
	Other current assets		Other long-term assets		Other current liabilities		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate instruments	$	—	$	6	$	(6)	$	(2)
Foreign exchange instruments	1		1		(1)		—
Interest rate and foreign exchange instruments	—		—		(1)		(130)
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	136		11		(122)		(10)
Associated offsetting commodity contracts	(93)		(8)		93		8
Commodity contracts subject to rate recovery	38		52		(58)		—
Associated offsetting commodity contracts	(8)		—		8		—
Net amounts presented on the balance sheet	74		62		(87)		(134)
Additional cash collateral for commodity contracts not subject to rate recovery	58		—		—		—
Additional cash collateral for commodity contracts subject to rate recovery	46		—		—		—
Total(1)	$	178	$	62	$	(87)	$	(134)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	34	$	52	$	(20)	$	—
Associated offsetting commodity contracts	(5)		—		5		—
Net amounts presented on the balance sheet	29		52		(15)		—
Additional cash collateral for commodity contracts subject to rate recovery	28		—		—		—
Total(1)	$	57	$	52	$	(15)	$	—
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	4	$	—	$	(38)	$	—
Associated offsetting commodity contracts	(3)		—		3		—
Net amounts presented on the balance sheet	1		—		(35)		—
Additional cash collateral for commodity contracts subject to rate recovery	18		—		—		—
Total	$	19	$	—	$	(35)	$	—

(1)    Normal purchase contracts previously measured at fair value are excluded.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table

The following table includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI.

CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI					Pretax (loss) gain reclassified from AOCI into earnings
	Three months ended September 30,					Three months ended September 30,
	2022		2021		Location	2022		2021
Sempra:
Interest rate instruments	$	4	$	7	Interest Expense	$	(2)	$	1
Interest rate instruments	68		3		Equity Earnings(1)	(1)		(19)
Foreign exchange instruments	2		5		Revenues: Energy- Related Businesses	—		—
Foreign exchange instruments	1		3		Equity Earnings(1)	—		—
Interest rate and foreign exchange instruments	—		(3)		Other (Expense) Income, Net	(3)		(5)
Total	$	75	$	15		$	(6)	$	(23)
	Nine months ended September 30,					Nine months ended September 30,
	2022		2021		Location	2022		2021
Sempra:
Interest rate instruments	$	39	$	27	Interest Expense	$	(1)	$	—
Interest rate instruments	212		54		Equity Earnings(1)	(28)		(57)
Foreign exchange instruments	(1)		7		Revenues: Energy- Related Businesses	2		(1)
					Other (Expense) Income, Net	(1)		—
Foreign exchange instruments	(1)		5		Equity Earnings(1)	1		(1)
Interest rate and foreign exchange instruments	13		(2)		Interest Expense	1		—
					Other (Expense) Income, Net	3		(4)
Total	$	262	$	91		$	(23)	$	(63)
SoCalGas:
Interest rate instruments	$	—	$	—	Interest Expense	$	(1)	$	—

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

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.

UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax (loss) gain on derivatives recognized in earnings
		Three months ended September 30,				Nine months ended September 30,
	Location	2022		2021		2022		2021
Sempra:
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	$	(227)	$	(154)	$	(455)	$	(344)
Commodity contracts subject to rate recovery	Cost of Natural Gas	(11)		(26)		(15)		(24)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	16		8		10		51
Foreign exchange instruments	Other (Expense) Income, Net	—		2		—		(22)
Total		$	(222)	$	(170)	$	(460)	$	(339)
SDG&E:
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	$	16	$	8	$	10	$	51
SoCalGas:
Commodity contracts subject to rate recovery	Cost of Natural Gas	$	(11)	$	(26)	$	(15)	$	(24)