v3.2.0.727

OTHER FINANCIAL DATA (Tables) | 3 Months Ended
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Jun. 30, 2015
Other Financial Data (Tables) [Abstract] |
Net Periodic Benefit Cost Table |
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
| Pension benefits | Other postretirement benefits
| Three months ended June 30,
| 2015 | 2014 | 2015 | 2014
Service cost | $ | 29 | $ | 26 | $ | 7 | $ | 6
Interest cost |  | 39 |  | 41 |  | 11 |  | 12
Expected return on assets |  | (44) |  | (43) |  | (17) |  | (16)
Amortization of: |  |  |  |  |  |  |  |
Prior service cost (credit) |  | 2 |  | 3 |  | ― |  | (1)
Actuarial loss |  | 11 |  | 5 |  | ― |  | ―
Settlement |  | ― |  | 6 |  | ― |  | ―
Regulatory adjustment |  | (30) |  | ― |  | ― |  | ―
Total net periodic benefit cost | $ | 7 | $ | 38 | $ | 1 | $ | 1
| Six months ended June 30,
| 2015 | 2014 | 2015 | 2014
Service cost | $ | 59 | $ | 52 | $ | 14 | $ | 12
Interest cost |  | 78 |  | 82 |  | 23 |  | 24
Expected return on assets |  | (88) |  | (86) |  | (34) |  | (32)
Amortization of: |  |  |  |  |  |  |  |
Prior service cost (credit) |  | 5 |  | 5 |  | (1) |  | (2)
Actuarial loss |  | 19 |  | 10 |  | ― |  | ―
Settlements |  | ― |  | 9 |  | ― |  | ―
Regulatory adjustment |  | (59) |  | (24) |  | ― |  | ―
Total net periodic benefit cost | $ | 14 | $ | 48 | $ | 2 | $ | 2
NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
| Pension benefits | Other postretirement benefits
| Three months ended June 30,
| 2015 | 2014 | 2015 | 2014
Service cost | $ | 8 | $ | 7 | $ | 2 | $ | 1
Interest cost |  | 10 |  | 11 |  | 2 |  | 2
Expected return on assets |  | (13) |  | (14) |  | (3) |  | (3)
Amortization of: |  |  |  |  |  |  |  |
Prior service cost |  | 1 |  | 1 |  | 1 |  | 1
Actuarial loss |  | 2 |  | 1 |  | ― |  | ―
Settlements |  | ― |  | 2 |  | ― |  | ―
Regulatory adjustment |  | (7) |  | 6 |  | (2) |  | (1)
Total net periodic benefit cost | $ | 1 | $ | 14 | $ | ― | $ | ―
| Six months ended June 30,
| 2015 | 2014 | 2015 | 2014
Service cost | $ | 16 | $ | 15 | $ | 4 | $ | 3
Interest cost |  | 20 |  | 22 |  | 4 |  | 4
Expected return on assets |  | (27) |  | (28) |  | (6) |  | (6)
Amortization of: |  |  |  |  |  |  |  |
Prior service cost |  | 1 |  | 1 |  | 2 |  | 2
Actuarial loss |  | 4 |  | 2 |  | ― |  | ―
Settlements |  | ― |  | 2 |  | ― |  | ―
Regulatory adjustment |  | (12) |  | 1 |  | (4) |  | (3)
Total net periodic benefit cost | $ | 2 | $ | 15 | $ | ― | $ | ―
NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
| Pension benefits | Other postretirement benefits
| Three months ended June 30,
| 2015 | 2014 | 2015 | 2014
Service cost | $ | 19 | $ | 16 | $ | 5 | $ | 4
Interest cost |  | 24 |  | 26 |  | 9 |  | 10
Expected return on assets |  | (27) |  | (26) |  | (14) |  | (13)
Amortization of: |  |  |  |  |  |  |  |
Prior service cost (credit) |  | 2 |  | 2 |  | (2) |  | (2)
Actuarial loss |  | 6 |  | 2 |  | ― |  | ―
Regulatory adjustment |  | (23) |  | (6) |  | 2 |  | 1
Total net periodic benefit cost | $ | 1 | $ | 14 | $ | ― | $ | ―
| Six months ended June 30,
| 2015 | 2014 | 2015 | 2014
Service cost | $ | 38 | $ | 32 | $ | 10 | $ | 8
Interest cost |  | 49 |  | 51 |  | 18 |  | 19
Expected return on assets |  | (54) |  | (52) |  | (28) |  | (26)
Amortization of: |  |  |  |  |  |  |  |
Prior service cost (credit) |  | 4 |  | 4 |  | (4) |  | (4)
Actuarial loss |  | 11 |  | 4 |  | ― |  | ―
Regulatory adjustment |  | (47) |  | (25) |  | 4 |  | 3
Total net periodic benefit cost | $ | 1 | $ | 14 | $ | ― | $ | ―
Contributions to Benefit Plans Table |
BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
| Sempra Energy |  |
| Consolidated | SDG&E | SoCalGas
Contributions through June 30, 2015: |  |  |  |  |  |
Pension plans | $ | 17 | $ | 2 | $ | 1
Other postretirement benefit plans |  | 1 |  | ― |  | ―
Total expected contributions in 2015: |  |  |  |  |  |
Pension plans | $ | 36 | $ | 3 | $ | 7
Other postretirement benefit plans |  | 11 |  | 8 |  | ―
Earnings Per Share Computations Table |
EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
|  | Three months ended June 30, |  | Six months ended June 30,
|  | 2015 | 2014 |  | 2015 | 2014
Numerator: |  |  |  |  |  |  |  |  |
Earnings/Income attributable to common shares | $ | 295 | $ | 269 |  | $ | 732 | $ | 516
Denominator: |  |  |  |  |  |  |  |  |
Weighted-average common shares |  |  |  |  |  |  |  |  |
| outstanding for basic EPS(1) |  | 248,108 |  | 245,688 |  |  | 247,916 |  | 245,484
Dilutive effect of stock options, restricted |  |  |  |  |  |  |  |  |
| stock awards and restricted stock units |  | 3,383 |  | 4,373 |  |  | 3,348 |  | 4,332
Weighted-average common shares |  |  |  |  |  |  |  |  |
| outstanding for diluted EPS |  | 251,491 |  | 250,061 |  |  | 251,264 |  | 249,816
Earnings per share: |  |  |  |  |  |  |  |  |
Basic | $ | 1.19 | $ | 1.10 |  | $ | 2.95 | $ | 2.10
Diluted |  | 1.17 |  | 1.08 |  |  | 2.91 |  | 2.07
(1) | Includes fully vested restricted stock units of 501 and 476 held in our Deferred Compensation Plan for the three months and six months ended June 30, 2015, respectively, and 221 and 202 for the three months and six months ended June 30, 2014, respectively. These fully vested restricted stock units 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.
Capitalized Financing Costs Table |
CAPITALIZED FINANCING COSTS |  |  |  |
(Dollars in millions) |  |  |  |
|  | Three months ended June 30, | Six months ended June 30,
|  | 2015 | 2014 | 2015 | 2014
Sempra Energy Consolidated: |  |  |  |  |  |  |  |
AFUDC related to debt | $ | 7 | $ | 4 | $ | 13 | $ | 10
AFUDC related to equity |  | 31 |  | 24 |  | 58 |  | 49
Other capitalized financing costs |  | 17 |  | 8 |  | 34 |  | 16
Total Sempra Energy Consolidated | $ | 55 | $ | 36 | $ | 105 | $ | 75
SDG&E: |  |  |  |  |  |  |  |
AFUDC related to debt | $ | 4 | $ | 3 | $ | 7 | $ | 7
AFUDC related to equity |  | 10 |  | 7 |  | 18 |  | 18
Total SDG&E | $ | 14 | $ | 10 | $ | 25 | $ | 25
SoCalGas: |  |  |  |  |  |  |  |
AFUDC related to debt | $ | 3 | $ | 1 | $ | 6 | $ | 3
AFUDC related to equity |  | 10 |  | 6 |  | 19 |  | 11
Total SoCalGas | $ | 13 | $ | 7 | $ | 25 | $ | 14
Changes in Components of Accumulated Comprehensive Income Table |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
|  |  |  | Pension and other |  |  |  |
|  |  |  | postretirement benefits |  |  |  |
|  | Foreign |  |  |  |  |  | Total
|  | currency | Unamortized | Unamortized |  | accumulated other
|  | translation | net actuarial | prior service | Financial | comprehensive
|  | adjustments | gain (loss) | cost | instruments | income (loss)
|  | Three months ended June 30, 2015 and 2014
2015: |  |  |  |  |  |  |  |  |  |
Balance as of March 31, 2015 | $ | (384) | $ | (82) | $ | (2) | $ | (145) | $ | (613)
Other comprehensive (loss) income before |  |  |  |  |  |  |  |  |  |
reclassifications |  | (43) |  | ― |  | ― |  | 57 |  | 14
Amounts reclassified from accumulated other |  |  |  |  |  |  |  |  |  |
comprehensive income |  | ― |  | 1 |  | ― |  | 2 |  | 3
Net other comprehensive (loss) income |  | (43) |  | 1 |  | ― |  | 59 |  | 17
Balance as of June 30, 2015 | $ | (427) | $ | (81) | $ | (2) | $ | (86) | $ | (596)
2014: |  |  |  |  |  |  |  |  |  |
Balance as of March 31, 2014 | $ | (172) | $ | (70) | $ | ― | $ | (31) | $ | (273)
Other comprehensive income (loss) before |  |  |  |  |  |  |  |  |  |
reclassifications |  | 2 |  | ― |  | ― |  | (12) |  | (10)
Amounts reclassified from accumulated other |  |  |  |  |  |  |  |  |  |
comprehensive income |  | ― |  | 5 |  | ― |  | 5 |  | 10
Net other comprehensive income (loss) |  | 2 |  | 5 |  | ― |  | (7) |  | ―
Balance as of June 30, 2014 | $ | (170) | $ | (65) | $ | ― | $ | (38) | $ | (273)
|  | Six months ended June 30, 2015 and 2014
2015: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2014 | $ | (322) | $ | (83) | $ | (2) | $ | (90) | $ | (497)
Other comprehensive (loss) income before |  |  |  |  |  |  |  |  |  |
reclassifications |  | (105) |  | ― |  | ― |  | 3 |  | (102)
Amounts reclassified from accumulated other |  |  |  |  |  |  |  |  |  |
comprehensive income |  | ― |  | 2 |  | ― |  | 1 |  | 3
Net other comprehensive (loss) income |  | (105) |  | 2 |  | ― |  | 4 |  | (99)
Balance as of June 30, 2015 | $ | (427) | $ | (81) | $ | (2) | $ | (86) | $ | (596)
2014: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2013 | $ | (129) | $ | (73) | $ | ― | $ | (26) | $ | (228)
Other comprehensive loss before |  |  |  |  |  |  |  |  |  |
reclassifications |  | (41) |  | ― |  | ― |  | (26) |  | (67)
Amounts reclassified from accumulated other |  |  |  |  |  |  |  |  |  |
comprehensive income |  | ― |  | 8 |  | ― |  | 14 |  | 22
Net other comprehensive (loss) income |  | (41) |  | 8 |  | ― |  | (12) |  | (45)
Balance as of June 30, 2014 | $ | (170) | $ | (65) | $ | ― | $ | (38) | $ | (273)
(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)
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
|  | Pension and other |  |  |
|  | postretirement benefits |  |  |
|  |  |  |  |  | Total
|  | Unamortized | Unamortized |  | accumulated other
|  | net actuarial | prior service |  | comprehensive
|  | gain (loss) | credit |  | income (loss)
|  | Three months ended June 30, 2015 and 2014
2015: |  |  |  |  |  |  |
Balance as of March 31, and June 30, 2015 | $ | (13) | $ | 1 |  | $ | (12)
2014: |  |  |  |  |  |  |
Balance as of March 31, 2014 | $ | (10) | $ | 1 |  | $ | (9)
Amounts reclassified from accumulated other |  |  |  |  |  |  |
comprehensive income |  | 1 |  | ― |  |  | 1
Net other comprehensive income |  | 1 |  | ― |  |  | 1
Balance as of June 30, 2014 | $ | (9) | $ | 1 |  | $ | (8)
|  | Six months ended June 30, 2015 and 2014
2015: |  |  |  |  |  |  |
Balance as of December 31, 2014 and June 30, 2015 | $ | (13) | $ | 1 |  | $ | (12)
2014: |  |  |  |  |  |  |
Balance as of December 31, 2013 | $ | (10) | $ | 1 |  | $ | (9)
Amounts reclassified from accumulated other |  |  |  |  |  |  |
comprehensive income |  | 1 |  | ― |  |  | 1
Net other comprehensive income |  | 1 |  | ― |  |  | 1
Balance as of June 30, 2014 | $ | (9) | $ | 1 |  | $ | (8)
(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 | Amounts reclassified |  |
other comprehensive income (loss) | from accumulated other |  | Affected line item on Condensed
components | comprehensive income (loss) |  | Consolidated Statements of Operations
|  |  | Three months ended June 30, |  |  |  |  |
|  |  | 2015 |  | 2014 |  |  |  |  |
Sempra Energy Consolidated: |  |  |  |  |  |  |  |  |  |
Financial instruments: |  |  |  |  |  |  |  |  |  |
Interest rate and foreign exchange instruments | $ | 3 |  | $ | 6 |  | Interest Expense
Interest rate instruments |  | 3 |  |  | 2 |  | Equity Earnings, Before Income Tax
Total before income tax |  | 6 |  |  | 8 |  |
|  |  |  | (1) |  |  | (1) |  | Income Tax Expense
Net of income tax |  | 5 |  |  | 7 |  |
|  |  |  | (3) |  |  | (2) |  | Earnings Attributable to Noncontrolling Interests
|  |  | $ | 2 |  | $ | 5 |  |  |  |  |
Pension and other postretirement benefits: |  |  |  |  |  |  |  |  |  |
Amortization of actuarial loss | $ | 2 |  | $ | 8 |  | See note (1) below
|  |  |  | (1) |  |  | (3) |  | Income Tax Expense
Net of income tax | $ | 1 |  | $ | 5 |  |
Total reclassifications for the period, net of tax | $ | 3 |  | $ | 10 |  |  |  |  |
SDG&E: |  |  |  |  |  |  |  |  |  |
Financial instruments: |  |  |  |  |  |  |  |  |  |
Interest rate instruments | $ | 3 |  | $ | 2 |  | Interest Expense
|  |  |  | (3) |  |  | (2) |  | Earnings Attributable to Noncontrolling Interest
| $ | ― |  | $ | ― |  |  |  |  |
Pension and other postretirement benefits: |  |  |  |  |  |  |  |  |  |
Amortization of actuarial loss | $ | ― |  | $ | 2 |  | See note (1) below
|  |  |  | ― |  |  | (1) |  | Income Tax Expense
Net of income tax | $ | ― |  | $ | 1 |  |
Total reclassifications for the period, net of tax | $ | ― |  | $ | 1 |  |  |  |  |
(1) | 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 | Amount reclassified |  |
other comprehensive income (loss) | from accumulated other |  | Affected line item on Condensed
components | comprehensive income (loss) |  | Consolidated Statements of Operations
|  |  | Six months ended June 30, |  |  |  |  |
|  |  | 2015 | 2014 |  |  |  |  |
Sempra Energy Consolidated: |  |  |  |  |  |  |  |  |
Financial instruments: |  |  |  |  |  |  |  |  |
Interest rate and foreign exchange instruments | $ | 9 | $ | 9 |  | Interest Expense
Interest rate instruments |  | ― |  | 2 |  | Gain on Sale of Equity Interest and Assets
Interest rate instruments |  | 6 |  | 5 |  | Equity Earnings, Before Income Tax
Commodity contracts not subject to |  |  |  |  |  | Revenues: Energy-Related
| rate recovery |  | (7) |  | 10 |  | Businesses
Total before income tax |  | 8 |  | 26 |  |
|  |  |  | ― |  | (7) |  | Income Tax Expense
Net of income tax |  | 8 |  | 19 |  |
|  |  |  | (7) |  | (5) |  | Earnings Attributable to Noncontrolling Interests
|  |  | $ | 1 | $ | 14 |  |  |  |  |
Pension and other postretirement benefits: |  |  |  |  |  |  |  |  |
Amortization of actuarial loss | $ | 4 | $ | 13 |  | See note (1) below
|  |  |  | (2) |  | (5) |  | Income Tax Expense
Net of income tax | $ | 2 | $ | 8 |  |
Total reclassifications for the period, net of tax | $ | 3 | $ | 22 |  |  |  |  |
SDG&E: |  |  |  |  |  |  |  |  |
Financial instruments: |  |  |  |  |  |  |  |  |
Interest rate instruments | $ | 6 | $ | 5 |  | Interest Expense
|  |  |  | (6) |  | (5) |  | Earnings Attributable to Noncontrolling Interest
|  |  | $ | ― | $ | ― |  |  |  |  |
Pension and other postretirement benefits: |  |  |  |  |  |  |  |  |
Amortization of actuarial loss | $ | ― | $ | 2 |  | See note (1) below
|  |  |  | ― |  | (1) |  | Income Tax Expense
Net of income tax | $ | ― | $ | 1 |  |
Total reclassifications for the period, net of tax | $ | ― | $ | 1 |  |  |  |  |
(1) | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above).
Shareholders' Equity and Noncontrolling Interests Table |
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
|  |  | Sempra Energy |  | Non- |  |
|  |  | shareholders’ |  | controlling |  | Total
|  |  | equity |  | interests |  | equity
Balance at December 31, 2014 | $ | 11,326 | $ | 774 | $ | 12,100
Comprehensive income |  | 634 |  | 33 |  | 667
Preferred dividends of subsidiary |  | (1) |  | ― |  | (1)
Share-based compensation expense |  | 26 |  | ― |  | 26
Common stock dividends declared |  | (347) |  | ― |  | (347)
Issuance of common stock |  | 59 |  | ― |  | 59
Repurchase of common stock |  | (66) |  | ― |  | (66)
Tax benefit related to share-based compensation |  | 52 |  | ― |  | 52
Equity contributed by noncontrolling interest |  | ― |  | 1 |  | 1
Distributions to noncontrolling interests |  | ― |  | (16) |  | (16)
Balance at June 30, 2015 | $ | 11,683 | $ | 792 | $ | 12,475
Balance at December 31, 2013 | $ | 11,008 | $ | 842 | $ | 11,850
Comprehensive income |  | 472 |  | 39 |  | 511
Preferred dividends of subsidiary |  | (1) |  | ― |  | (1)
Share-based compensation expense |  | 21 |  | ― |  | 21
Common stock dividends declared |  | (324) |  | ― |  | (324)
Issuance of common stock |  | 42 |  | ― |  | 42
Repurchase of common stock |  | (37) |  | ― |  | (37)
Tax benefit related to share-based compensation |  | 13 |  | ― |  | 13
Equity contributed by noncontrolling interest |  | ― |  | 1 |  | 1
Distributions to noncontrolling interests |  | ― |  | (25) |  | (25)
Balance at June 30, 2014 | $ | 11,194 | $ | 857 | $ | 12,051
SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST ― SDG&E
(Dollars in millions)
|  | SDG&E |  | Non- |  |
|  | shareholder’s |  | controlling |  | Total
|  | equity |  | interest |  | equity
Balance at December 31, 2014 | $ | 4,932 | $ | 60 | $ | 4,992
Comprehensive income |  | 273 |  | 9 |  | 282
Distributions to noncontrolling interest |  | ― |  | (8) |  | (8)
Balance at June 30, 2015 | $ | 5,205 | $ | 61 | $ | 5,266
Balance at December 31, 2013 | $ | 4,628 | $ | 91 | $ | 4,719
Comprehensive income |  | 223 |  | 7 |  | 230
Distributions to noncontrolling interest |  | ― |  | (13) |  | (13)
Balance at June 30, 2014 | $ | 4,851 | $ | 85 | $ | 4,936
SHAREHOLDERS' EQUITY ― SOCALGAS
(Dollars in millions)
|  | SoCalGas
|  | shareholders'
|  | equity
Balance at December 31, 2014 | $ | 2,781
Comprehensive income |  | 285
Preferred stock dividends declared |  | (1)
Balance at June 30, 2015 | $ | 3,065
Balance at December 31, 2013 | $ | 2,549
Comprehensive income |  | 159
Preferred stock dividends declared |  | (1)
Balance at June 30, 2014 | $ | 2,707
Amounts Due To and From Affiliates at SDG&E and SoCalGas Table |
AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS
(Dollars in millions)
|  | June 30, 2015 |  | December 31, 2014
SDG&E: |  |  |  |  |
Current: |  |  |  |  |
Due from various affiliates | $ | 1 |  | $ | 1
Due to Sempra Energy | $ | 7 |  | $ | 17
Due to SoCalGas |  | ― |  |  | 4
| $ | 7 |  | $ | 21
Income taxes due from Sempra Energy(1) | $ | 97 |  | $ | 16
SoCalGas: |  |  |  |  |
Current: |  |  |  |  |
Due from Sempra Energy(2) | $ | 273 |  | $ | ―
Due from SDG&E |  | ― |  |  | 4
|  | $ | 273 |  | $ | 4
Due to Sempra Energy | $ | ― |  | $ | 13
Income taxes due (to) from Sempra Energy(1) | $ | (19) |  | $ | 9
(1) | 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.
(2) | Net receivable includes a loan to Sempra Energy of $279 million at June 30, 2015 at an interest rate of 0.08 percent.
Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table |
REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS |  |  |  |
(Dollars in millions) |  |  |  |
| Three months ended June 30, | Six months ended June 30,
| 2015 | 2014 | 2015 |  | 2014
SDG&E | $ | 2 | $ | 3 | $ | 5 | $ | 6
SoCalGas |  | 17 |  | 16 |  | 36 |  | 34
Other Income and Expense Table |
OTHER INCOME, NET |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |
|  | Three months ended June 30, | Six months ended June 30,
|  |  | 2015 |  | 2014 |  | 2015 |  | 2014
Sempra Energy Consolidated: |  |  |  |  |  |  |  |
Allowance for equity funds used during construction | $ | 31 | $ | 24 | $ | 58 | $ | 49
Investment (losses) gains(1) |  | (2) |  | 15 |  | 7 |  | 23
(Losses) gains on interest rate and foreign exchange instruments, net |  | (3) |  | 11 |  | (3) |  | 16
Electrical infrastructure relocation income(2) |  | 4 |  | 3 |  | 4 |  | 3
Regulatory interest, net(3) |  | 1 |  | 2 |  | 2 |  | 3
Foreign currency (losses) gains |  | (2) |  | 1 |  | (3) |  | 1
Sundry, net |  | 8 |  | (7) |  | 11 |  | (6)
Total | $ | 37 | $ | 49 | $ | 76 | $ | 89
SDG&E: |  |  |  |  |  |  |  |
Allowance for equity funds used during construction | $ | 10 | $ | 7 | $ | 18 | $ | 18
Regulatory interest, net(3) |  | 1 |  | 2 |  | 2 |  | 3
Sundry, net |  | (2) |  | (2) |  | (2) |  | (1)
Total | $ | 9 | $ | 7 | $ | 18 | $ | 20
SoCalGas: |  |  |  |  |  |  |  |
Allowance for equity funds used during construction | $ | 10 | $ | 6 | $ | 19 | $ | 11
Sundry, net |  | (1) |  | (3) |  | (2) |  | (4)
Total | $ | 9 | $ | 3 | $ | 17 | $ | 7
(1) | Represents investment (losses) 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.
(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 EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
|  |  |  |  | Effective |  |  |  |  | Effective |
|  |  | Income tax |  | income |  |  | Income tax |  | income |
|  |  | expense |  | tax rate |  |  | expense |  | tax rate |
|  |  | Three months ended June 30,
|  |  | 2015 | 2014
Sempra Energy Consolidated | $ | 98 |  | 25 | % | $ | 93 |  | 25 | %
SDG&E |  | 54 |  | 29 |  |  | 69 |  | 35 |
SoCalGas |  | 16 |  | 18 |  |  | 28 |  | 26 |
|  |  | Six months ended June 30,
|  |  | 2015 | 2014
Sempra Energy Consolidated | $ | 261 |  | 26 | % | $ | 220 |  | 29 | %
SDG&E |  | 142 |  | 34 |  |  | 152 |  | 40 |
SoCalGas |  | 111 |  | 28 |  |  | 66 |  | 29 |
Variable Interest Entity Table |
AMOUNTS ASSOCIATED WITH OTAY MESA VIE |  |  |  |
(Dollars in millions) |  |  |  |
| Three months ended June 30, | Six months ended June 30,
| 2015 | 2014 | 2015 | 2014
Operating expenses |  |  |  |  |  |  |  |
Cost of electric fuel and purchased power | $ | (21) | $ | (22) | $ | (39) | $ | (40)
Operation and maintenance |  | 6 |  | 5 |  | 10 |  | 10
Depreciation |  | 6 |  | 7 |  | 12 |  | 14
Total operating expenses |  | (9) |  | (10) |  | (17) |  | (16)
Operating income |  | 9 |  | 10 |  | 17 |  | 16
Interest expense |  | (5) |  | (4) |  | (9) |  | (8)
Income before income taxes/Net income |  | 4 |  | 6 |  | 8 |  | 8
Earnings attributable to noncontrolling interest |  | (4) |  | (6) |  | (8) |  | (8)
Earnings attributable to common shares | $ | ― | $ | ― | $ | ― | $ | ―
Ownership Interests Held By Others Table |
OTHER NONCONTROLLING INTERESTS
(Dollars in millions) |  |
|  | Percent ownership held by others |  |  |  |  |
|  | June 30, |  | December 31, |  |  | June 30, |  | December 31,
|  | 2015 |  | 2014 |  |  | 2015 |  | 2014
SDG&E: |  |  |  |  |  |  |  |
Otay Mesa VIE | 100 | % | 100 | % | $ | 61 | $ | 60
Sempra South American Utilities: |  |  |  |  |  |  |  |
Chilquinta Energía subsidiaries(1) | 23.5 – 43.4 |  | 23.6 – 43.4 |  |  | 22 |  | 23
Luz del Sur | 16.4 |  | 16.4 |  |  | 171 |  | 177
Tecsur | 9.8 |  | 9.8 |  |  | 3 |  | 4
Sempra Mexico: |  |  |  |  |  |  |  |
IEnova, S.A.B. de C.V. | 18.9 |  | 18.9 |  |  | 476 |  | 452
Sempra Natural Gas: |  |  |  |  |  |  |  |
Bay Gas Storage Company, Ltd. | 9.1 |  | 9.1 |  |  | 24 |  | 23
Liberty Gas Storage, LLC | 25.0 |  | 25.0 |  |  | 14 |  | 14
Southern Gas Transmission Company | 49.0 |  | 49.0 |  |  | 1 |  | 1
Total Sempra Energy |  |  |  |  | $ | 772 | $ | 754
(1) | Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries.
Inventory Table |
INVENTORY BALANCES
(Dollars in millions)
|  | Natural gas | Liquefied natural gas | Materials and supplies | Total
|  | June 30, 2015 | December 31, 2014 | June 30, 2015 | December 31, 2014 | June 30, 2015 | December 31, 2014 | June 30, 2015 | December 31, 2014
SDG&E | $ | 3 | $ | 8 | $ | ― | $ | ― | $ | 64 | $ | 65 | $ | 67 | $ | 73
SoCalGas |  | 29 |  | 155 |  | ― |  | ― |  | 28 |  | 26 |  | 57 |  | 181
Sempra South American |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Utilities |  | ― |  | ― |  | ― |  | ― |  | 35 |  | 33 |  | 35 |  | 33
Sempra Mexico |  | ― |  | ― |  | 10 |  | 9 |  | 9 |  | 9 |  | 19 |  | 18
Sempra Renewables |  | ― |  | ― |  | ― |  | ― |  | 2 |  | 2 |  | 2 |  | 2
Sempra Natural Gas |  | 81 |  | 83 |  | 4 |  | 5 |  | 1 |  | 1 |  | 86 |  | 89
Sempra Energy |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | $ | 113 | $ | 246 | $ | 14 | $ | 14 | $ | 139 | $ | 136 | $ | 266 | $ | 396
Afiliate Loans Table |
DUE FROM UNCONSOLIDATED AFFILIATES(1)
(Dollars in millions)
|  |  | June 30, 2015 |  | December 31, 2014
Sempra South American Utilities: |  |  |  |
Eletrans S.A.: |  |  |  |
4% Note(2) | $ | 61 | $ | 41
Sempra Mexico: |  |  |  |
Affiliates of joint venture with PEMEX: |  |  |  |
Note due November 13, 2017(3)(4) |  | 3 |  | 44
Note due November 14, 2018(3) |  | 41 |  | 40
Note due November 14, 2018(3) |  | 33 |  | 33
Note due November 14, 2018(3) |  | 8 |  | 8
Energía Sierra Juárez: |  |  |  |
Note due June 15, 2018(5) |  | 23 |  | 22
Other(6) |  | 4 |  | 38
Total | $ | 173 | $ | 226
(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 S.A., an affiliate of Chilquinta Energía.
(3) | U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (4.68 percent at June 30, 2015), to finance the Los Ramones Norte pipeline project.
(4) | In May 2015, approximately $41 million was paid with proceeds from project financing at the joint venture.
(5) | U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.56 percent at June 30, 2015), to finance the first phase of the Energía Sierra Juárez wind project.
(6) | Amounts represent accounts receivable from various Sempra Renewables and Sempra Mexico joint venture investments.

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