v3.8.0.1

GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 3 Months Ended
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Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
(Dollars in millions)
| March 31,
| 2018
Sempra Energy Consolidated: |
Cash and cash equivalents | $ | 239 |
Restricted cash, current | 54 |
Restricted cash, noncurrent | 14 |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows | $ | 307 |
SDG&E: |  |
Cash and cash equivalents | $ | 9 |
Restricted cash, current | 5 |
Restricted cash, noncurrent | 11 |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows | $ | 25 |
Schedule of Prior Period Adjustments | We discuss this presentation further in Note 6. The following table summarizes the financial statement line items that were affected by this reclassification:
SEMPRA ENERGY – RECLASSIFICATION
(Dollars in millions) |  |
|  |  |  | Three months ended March 31, 2017
|  |  |  |  | As previously presented |  | As currently presented
Condensed Consolidated Statement of Operations: |  |  |  |  |  |  |
Equity earnings, before income tax |  |  |  |  | $ | 3 |  |  | $ | — |
Income before income taxes and equity losses of certain |  |  |  |  |  |  |
unconsolidated subsidiaries |  |  |  |  | 755 |  |  | — |
Income before income taxes and equity losses of |  |  |  |  |  |  |
unconsolidated subsidiaries |  |  |  |  | — |  |  | 752 |
Equity losses, net of income tax |  |  |  |  | (8 | ) |  | — |
Equity losses |  |  |  |  | — |  |  | (5 | )
Inventory Table | The components of inventories by segment are as follows:
INVENTORY BALANCES
(Dollars in millions)
| Natural gas |  |  | LNG |  |  | Materials and supplies |  |  | Total
| March 31, 2018 |  | December 31, 2017 |  |  | March 31, 2018 |  | December 31, 2017 |  |  | March 31, 2018 |  | December 31, 2017 |  |  | March 31, 2018 |  | December 31, 2017
SDG&E | $ | 2 |  |  | $ | 4 |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 104 |  |  | $ | 101 |  |  |  | $ | 106 |  |  | $ | 105 |
SoCalGas | 55 |  |  | 75 |  |  |  | — |  |  | — |  |  |  | 41 |  |  | 49 |  |  |  | 96 |  |  | 124 |
Sempra South American Utilities | — |  |  | — |  |  |  | — |  |  | — |  |  |  | 32 |  |  | 30 |  |  |  | 32 |  |  | 30 |
Sempra Mexico | 1 |  |  | — |  |  |  | 7 |  |  | 7 |  |  |  | 3 |  |  | 2 |  |  |  | 11 |  |  | 9 |
Sempra Renewables | — |  |  | — |  |  |  | — |  |  | — |  |  |  | 5 |  |  | 5 |  |  |  | 5 |  |  | 5 |
Sempra LNG & Midstream | 35 |  |  | 30 |  |  |  | — |  |  | 4 |  |  |  | — |  |  | — |  |  |  | 35 |  |  | 34 |
Sempra Energy Consolidated | $ | 93 |  |  | $ | 109 |  |  |  | $ | 7 |  |  | $ | 11 |  |  |  | $ | 185 |  |  | $ | 187 |  |  |  | $ | 285 |  |  | $ | 307 |
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 March 31,
| 2018 |  | 2017
Operating expenses |  |  |
Cost of electric fuel and purchased power | $ | (16 | ) |  | $ | (18 | )
Operation and maintenance | 4 |  |  | 4 |
Depreciation and amortization | 8 |  |  | 7 |
Total operating expenses | (4 | ) |  | (7 | )
Operating income | 4 |  |  | 7 |
Interest expense | (5 | ) |  | (5 | )
(Losses) income before income taxes/Net (loss) income | (1 | ) |  | 2 |
Losses (earnings) attributable to noncontrolling interest | 1 |  |  | (2 | )
Earnings attributable to common shares | $ | — |  |  | $ | — |
AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS |  |
(Dollars in millions) |  |
|  | Three months ended March 31,
|  | 2018 |  | 2017
REVENUES |  |  |
Energy-related businesses | $ | 17 |  |  | $ | 13 |
EXPENSES |  |  |
Operation and maintenance | (4 | ) |  | (2 | )
Depreciation and amortization | (11 | ) |  | (8 | )
Income before income taxes | 2 |  |  | 3 |
Income tax expense | (5 | ) |  | (2 | )
Net (loss) income | (3 | ) |  | 1 |
Losses attributable to noncontrolling interests(1) | 21 |  |  | 3 |
Earnings | $ | 18 |  |  | $ | 4 |
(1) Net income or loss attributable to NCI 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 March 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Service cost | $ | 33 |  |  | $ | 28 |  |  | $ | 6 |  |  | $ | 6 |
Interest cost | 35 |  |  | 37 |  |  | 9 |  |  | 9 |
Expected return on assets | (42 | ) |  | (40 | ) |  | (18 | ) |  | (16 | )
Amortization of: |  |  |  |  |  |  |
Prior service cost | 3 |  |  | 3 |  |  | — |  |  | — |
Actuarial loss (gain) | 9 |  |  | 8 |  |  | (1 | ) |  | (1 | )
Settlements | 14 |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | 52 |  |  | 36 |  |  | (4 | ) |  | (2 | )
Regulatory adjustment | (45 | ) |  | (12 | ) |  | 4 |  |  | 2 |
Total expense recognized | $ | 7 |  |  | $ | 24 |  |  | $ | — |  |  | $ | — |
NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
| Pension benefits |  | Other postretirement benefits
| Three months ended March 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Service cost | $ | 8 |  |  | $ | 8 |  |  | $ | 1 |  |  | $ | 1 |
Interest cost | 9 |  |  | 9 |  |  | 2 |  |  | 2 |
Expected return on assets | (13 | ) |  | (11 | ) |  | (3 | ) |  | (3 | )
Amortization of: |  |  |  |  |  |  |
Prior service cost | — |  |  | — |  |  | 1 |  |  | 1 |
Actuarial loss (gain) | 1 |  |  | 2 |  |  | (1 | ) |  | — |
Settlements | 14 |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost | 19 |  |  | 8 |  |  | — |  |  | 1 |
Regulatory adjustment | (19 | ) |  | (7 | ) |  | — |  |  | (1 | )
Total expense recognized | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |
NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
| Pension benefits |  | Other postretirement benefits
| Three months ended March 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Service cost | $ | 22 |  |  | $ | 18 |  |  | $ | 4 |  |  | $ | 4 |
Interest cost | 23 |  |  | 24 |  |  | 7 |  |  | 7 |
Expected return on assets | (26 | ) |  | (26 | ) |  | (14 | ) |  | (13 | )
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 2 |  |  | 2 |  |  | (1 | ) |  | (1 | )
Actuarial loss | 6 |  |  | 4 |  |  | — |  |  | — |
Net periodic benefit cost (credit) | 27 |  |  | 22 |  |  | (4 | ) |  | (3 | )
Regulatory adjustment | (26 | ) |  | (5 | ) |  | 4 |  |  | 3 |
Total expense recognized | $ | 1 |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |
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 2018:
BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
|  | Sempra Energy Consolidated |  | SDG&E |  | SoCalGas
Contributions through March 31, 2018: |  |  |  |  |  |
Pension plans |  | $ | 10 |  |  | $ | 2 |  |  | $ | — |
Other postretirement benefit plans |  | 1 |  |  | — |  |  | 1 |
Total expected contributions in 2018: |  |  |  |  |  |
Pension plans |  | $ | 226 |  |  | $ | 48 |  |  | $ | 113 |
Other postretirement benefit plans |  | 9 |  |  | 3 |  |  | 2 |
Earnings Per Share Computations Table | The following table provides EPS computations for the three months ended March 31, 2018 and 2017. 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 COMMON SHARE COMPUTATIONS |  |  |
(Dollars in millions, except per share amounts; shares in thousands) |  |  |
| Three months ended March 31,
| 2018 |  | 2017
Numerator: |  |  |
Earnings/Income attributable to common shares | $ | 347 |  |  | $ | 441 |
Denominator: |  |  |
Weighted-average common shares outstanding for basic EPS(1) | 257,932 |  |  | 251,131 |
Dilutive effect of stock options, RSAs and RSUs(2) | 933 |  |  | 1,115 |
Dilutive effect of common stock shares sold forward | 625 |  |  | — |
Weighted-average common shares outstanding for diluted EPS | 259,490 |  |  | 252,246 |
EPS: |  |  |
Basic | $ | 1.34 |  |  | $ | 1.76 |
Diluted | $ | 1.33 |  |  | $ | 1.75 |
(1) | Includes 628 and 600 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2018 and 2017, 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 common 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 March 31,
| 2018 |  | 2017
Sempra Energy Consolidated | $ | 51 |  |  | $ | 82 |
SDG&E | 24 |  |  | 20 |
SoCalGas | 13 |  |  | 15 |
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 NCI:
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 March 31, 2018 and 2017
Sempra Energy Consolidated: |  |  |  |  |  |  |
Balance as of December 31, 2017 | $ | (420 | ) |  | $ | (122 | ) |  | $ | (84 | ) |  | $ | (626 | )
Cumulative-effect adjustment from change in accounting principle | — |  |  | (3 | ) |  | — |  |  | (3 | )
OCI before reclassifications | 24 |  |  | 66 |  |  | — |  |  | 90 |
Amounts reclassified from AOCI | — |  |  | (8 | ) |  | 2 |  |  | (6 | )
Net OCI | 24 |  |  | 58 |  |  | 2 |  |  | 84 |
Balance as of March 31, 2018 | $ | (396 | ) |  | $ | (67 | ) |  | $ | (82 | ) |  | $ | (545 | )
|  |  |  |  | . |  |
Balance as of December 31, 2016 | $ | (527 | ) |  | $ | (125 | ) |  | $ | (96 | ) |  | $ | (748 | )
OCI before reclassifications | 46 |  |  | (2 | ) |  | — |  |  | 44 |
Amounts reclassified from AOCI | — |  |  | 6 |  |  | 2 |  |  | 8 |
Net OCI | 46 |  |  | 4 |  |  | 2 |  |  | 52 |
Balance as of March 31, 2017 | $ | (481 | ) |  | $ | (121 | ) |  | $ | (94 | ) |  | $ | (696 | )
SDG&E: |  |  |  |  |  |  |
Balance as of December 31, 2017 and March 31, 2018 |  |  |  |  | $ | (8 | ) |  | $ | (8 | )
Balance as of December 31, 2016 and March 31, 2017 |  |  |  |  | $ | (8 | ) |  | $ | (8 | )
SoCalGas: |  |  |  |  |  |  |
Balance as of December 31, 2017 and March 31, 2018 |  |  | $ | (13 | ) |  | $ | (8 | ) |  | $ | (21 | )
Balance as of December 31, 2016 and March 31, 2017 |  |  | $ | (13 | ) |  | $ | (9 | ) |  | $ | (22 | )
(1) | All amounts are net of income tax, if subject to tax, and exclude NCI.
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 March 31, |  |
| 2018 |  | 2017 |  |
Sempra Energy Consolidated: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate and foreign exchange instruments(1) | $ | (2 | ) |  | $ | (3 | ) |  | Interest Expense
| (18 | ) |  | — |  |  | Other Income, Net
Interest rate and foreign exchange instruments | 4 |  |  | 4 |  |  | Equity Losses
Foreign exchange instruments | — |  |  | 2 |  |  | Revenues: Energy-Related Businesses
Commodity contracts not subject to rate recovery | — |  |  | 9 |  |  | Revenues: Energy-Related Businesses
Total before income tax | (16 | ) |  | 12 |  |  |
| 3 |  |  | (4 | ) |  | Income Tax Expense
Net of income tax | (13 | ) |  | 8 |  |  |
| 5 |  |  | (2 | ) |  | Losses (Earnings) Attributable to Noncontrolling Interests
| $ | (8 | ) |  | $ | 6 |  |  |
Pension and other postretirement benefits: |  |  |  |  |
Amortization of actuarial loss(2) | $ | 3 |  |  | $ | 3 |  |  | Other Income, Net
| (1 | ) |  | (1 | ) |  | Income Tax Expense
Net of income tax | $ | 2 |  |  | $ | 2 |  |  |
Total reclassifications for the period, net of tax | $ | (6 | ) |  | $ | 8 |  |  |
SDG&E: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments(1) | $ | 3 |  |  | $ | 3 |  |  | Interest Expense
| (3 | ) |  | (3 | ) |  | Losses (Earnings) Attributable to Noncontrolling Interest
Total reclassifications for the period, net of tax | $ | — |  |  | $ | — |  |  |
(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 NCI for the three months ended March 31, 2018 and 2017.
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, 2017 | $ | 12,670 |  |  | $ | 2,470 |  |  | $ | 15,140 |
Cumulative-effect adjustment from change in accounting principle | (1 | ) |  | — |  |  | (1 | )
Comprehensive income (loss) | 459 |  |  | (2 | ) |  | 457 |
Share-based compensation expense | 15 |  |  | — |  |  | 15 |
Mandatory convertible preferred stock dividends declared | (28 | ) |  | — |  |  | (28 | )
Common stock dividends declared | (236 | ) |  | — |  |  | (236 | )
Issuances of mandatory convertible preferred stock | 1,693 |  |  | — |  |  | 1,693 |
Issuances of common stock | 1,291 |  |  | — |  |  | 1,291 |
Repurchases of common stock | (19 | ) |  | — |  |  | (19 | )
Distributions to noncontrolling interests | — |  |  | (7 | ) |  | (7 | )
Balance at March 31, 2018 | $ | 15,844 |  |  | $ | 2,461 |  |  | $ | 18,305 |
Balance at December 31, 2016 | $ | 12,951 |  |  | $ | 2,290 |  |  | $ | 15,241 |
Comprehensive income | 493 |  |  | 22 |  |  | 515 |
Share-based compensation expense | 10 |  |  | — |  |  | 10 |
Common stock dividends declared | (206 | ) |  | — |  |  | (206 | )
Issuances of common stock | 30 |  |  | — |  |  | 30 |
Repurchases of common stock | (14 | ) |  | — |  |  | (14 | )
Distributions to noncontrolling interests | — |  |  | (7 | ) |  | (7 | )
Balance at March 31, 2017 | $ | 13,264 |  |  | $ | 2,305 |  |  | $ | 15,569 |
(1) | NCI includes the preferred stock of SoCalGas and other NCI 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, 2017 | $ | 5,598 |  |  | $ | 28 |  |  | $ | 5,626 |
Comprehensive income | 170 |  |  | 3 |  |  | 173 |
Distributions to noncontrolling interest | — |  |  | (1 | ) |  | (1 | )
Balance at March 31, 2018 | $ | 5,768 |  |  | $ | 30 |  |  | $ | 5,798 |
Balance at December 31, 2016 | $ | 5,641 |  |  | $ | 37 |  |  | $ | 5,678 |
Comprehensive income | 155 |  |  | 5 |  |  | 160 |
Common stock dividends declared | (175 | ) |  | — |  |  | (175 | )
Distributions to noncontrolling interest | — |  |  | (3 | ) |  | (3 | )
Balance at March 31, 2017 | $ | 5,621 |  |  | $ | 39 |  |  | $ | 5,660 |
SHAREHOLDERS’ EQUITY – SOCALGAS
(Dollars in millions)
| Total equity
Balance at December 31, 2017 | $ | 3,907 |
Comprehensive income | 225 |
Balance at March 31, 2018 | $ | 4,132 |
Balance at December 31, 2016 | $ | 3,510 |
Comprehensive income | 203 |
Balance at March 31, 2017 | $ | 3,713 |
Ownership Interests Held By Others Table | At March 31, 2018 and December 31, 2017, we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) 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
| March 31, 2018 |  | December 31, 2017 |  | March 31, 2018 |  | December 31, 2017
SDG&E: |  |  |  |  |  |  |
Otay Mesa VIE | 100 | % | 100 | % | $ | 30 |  |  | $ | 28 |
Sempra South American Utilities: |  |  |  |  |  |  |
Chilquinta Energía subsidiaries(1) | 22.9 – 43.4 |  | 22.9 – 43.4 |  | 26 |  |  | 24 |
Luz del Sur | 16.4 |  | 16.4 |  | 193 |  |  | 189 |
Tecsur | 9.8 |  | 9.8 |  | 4 |  |  | 4 |
Sempra Mexico: |  |  |  |  |  |  |
IEnova(2) | 33.6 |  | 33.6 |  | 1,539 |  |  | 1,532 |
Sempra Renewables: |  |  |  |  |  |  |
Tax equity arrangements – wind(3) | NA |  | NA |  | 167 |  |  | 181 |
Tax equity arrangements – solar(3) | NA |  | NA |  | 440 |  |  | 450 |
Sempra LNG & Midstream: |  |  |  |  |  |  |
Bay Gas | 9.1 |  | 9.1 |  | 29 |  |  | 28 |
Liberty Gas Storage, LLC | 23.4 |  | 23.3 |  | 13 |  |  | 14 |
Total Sempra Energy |  |  |  |  | $ | 2,441 |  |  | $ | 2,450 |
(1) | Chilquinta Energía has four subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
(2) | IEnova has a subsidiary with a 10-percent NCI held by others. The equity held by NCI is negligible at both March 31, 2018 and December 31, 2017.
(3) | Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.
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)
| March 31, 2018 |  | December 31, 2017
Sempra Energy Consolidated: |  |  |
Total due from various unconsolidated affiliates – current | $ | 63 |  |  | $ | 37 |
Sempra South American Utilities(1): |  |  |
Eletrans – 4% Note(2) | $ | 38 |  |  | $ | 103 |
Other related party receivables | 1 |  |  | 1 |
Sempra Mexico(1): |  |  |
IMG – Note due March 15, 2022(3) | 621 |  |  | 487 |
Energía Sierra Juárez – Note(4) | 6 |  |  | 7 |
Total due from unconsolidated affiliates – noncurrent | $ | 666 |  |  | $ | 598 |
Total due to various unconsolidated affiliates – current | $ | (6 | ) |  | $ | (7 | )
Sempra Mexico(1): |  |  |
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021(5) | $ | (35 | ) |  | $ | (35 | )
SDG&E: |  |  |
Sempra Energy | $ | (32 | ) |  | $ | (30 | )
SoCalGas | (5 | ) |  | (4 | )
Various affiliates | (6 | ) |  | (6 | )
Total due to unconsolidated affiliates – current | $ | (43 | ) |  | $ | (40 | )
Income taxes due (to) from Sempra Energy(6) | $ | (39 | ) |  | $ | 27 |
SoCalGas: |  |  |
SDG&E | $ | 5 |  |  | $ | 4 |
Various affiliates | 1 |  |  | — |
Total due from unconsolidated affiliates – current | $ | 6 |  |  | $ | 4 |
Total due to unconsolidated affiliates – current – Sempra Energy | $ | (37 | ) |  | $ | (35 | )
Income taxes due (to) from Sempra Energy(6) | $ | (2 | ) |  | $ | 10 |
(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 $14.2 billion Mexican pesos or approximately $777 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (10.07 percent at March 31, 2018), to finance construction of the natural gas marine pipeline.
(4) | U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps (8.26 percent at March 31, 2018) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.
(5) | U.S. dollar-denominated loan, at a variable interest rate based on the 6-month LIBOR plus 290 bps (5.35 percent at March 31, 2018).
(6) | 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 March 31,
| 2018 |  | 2017
Revenues: |  |  |
Sempra Energy Consolidated | $ | 16 |  |  | $ | 7 |
SDG&E | 2 |  |  | 2 |
SoCalGas | 17 |  |  | 18 |
Cost of Sales: |  |  |
Sempra Energy Consolidated | $ | 12 |  |  | $ | 14 |
SDG&E | 19 |  |  | 20 |
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 March 31,
| 2018 |  | 2017(1)
Sempra Energy Consolidated: |  |  |
Allowance for equity funds used during construction | $ | 27 |  |  | $ | 72 |
Investment (losses) gains(2) | (1 | ) |  | 16 |
Gains on interest rate and foreign exchange instruments, net | 62 |  |  | 63 |
Foreign currency transaction gains, net(3) | 30 |  |  | 10 |
Non-service component of net periodic benefit credit | 32 |  |  | 5 |
Interest on regulatory balancing accounts, net | — |  |  | 2 |
Sundry, net | 3 |  |  | 6 |
Total | $ | 153 |  |  | $ | 174 |
SDG&E: |  |  |
Allowance for equity funds used during construction | $ | 18 |  |  | $ | 15 |
Non-service component of net periodic benefit credit | 9 |  |  | 4 |
Interest on regulatory balancing accounts, net | — |  |  | 2 |
Sundry, net | 1 |  |  | 1 |
Total | $ | 28 |  |  | $ | 22 |
SoCalGas: |  |  |
Allowance for equity funds used during construction | $ | 9 |  |  | $ | 11 |
Non-service component of net periodic benefit credit | 25 |  |  | 3 |
Sundry, net | (1 | ) |  | — |
Total | $ | 33 |  |  | $ | 14 |
(1) | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.
(2) | 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, recorded in Operation and Maintenance on the Condensed Consolidated Statements of Operations.
(3) Includes $39 million gain in 2018 from translation to U.S. dollars of a Mexican peso-denominated loan to the IMG joint venture, which is offset by a $39 million loss in Equity Losses on the Condensed Consolidated Statement of Operations.
Income Tax Expense and Effective Income Tax Rates Table |
INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
| Pretax income |  | Income tax expense |  | ETR |  | Pretax income |  | Income tax expense |  | ETR
| Three months ended March 31,
| 2018 |  | 2017
Sempra Energy Consolidated(1) | $ | 672 |  |  | $ | 289 |  |  | 43 | % |  | $ | 755 |  |  | $ | 295 |  |  | 39 | %
SDG&E | 225 |  |  | 56 |  |  | 25 |  |  | 247 |  |  | 90 |  |  | 36 |
SoCalGas | 284 |  |  | 59 |  |  | 21 |  |  | 301 |  |  | 98 |  |  | 33 |
(1) | Sempra Energy's pretax income represents Income Before Income Taxes and Equity Losses of Unconsolidated Subsidiaries plus equity earnings before income tax of $5 million and $3 million in the three months ended March 31, 2018 and 2017, respectively. We discuss how we recognize equity earnings in Note 6.

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