XML 60 R35.htm IDEA: XBRL DOCUMENT v3.22.1
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)
 3 Months Ended
Mar. 31, 2022
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 Sempra’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra’s 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,December 31,
 20222021
Cash and cash equivalents$2,519 $559 
Restricted cash, current14 19 
Restricted cash, noncurrent3 3 
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of
Cash Flows
$2,536 $581 
Accounts Receivable, Allowance for Credit Loss Table We provide below allowances and changes in allowances for credit losses for trade receivables and other receivables. SDG&E and SoCalGas record changes in the allowances for credit losses related to Accounts Receivable – Trade in regulatory accounts.
RECEIVABLES – ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
20222021
Sempra:
Allowances for credit losses at January 1$136 $138 
Provisions for expected credit losses48 43 
Write-offs (19)(5)
Allowances for credit losses at March 31$165 $176 
SDG&E:
Allowances for credit losses at January 1$66 $69 
Provisions for expected credit losses21 15 
Write-offs(9)(3)
Allowances for credit losses at March 31$78 $81 
SoCalGas:
Allowances for credit losses at January 1$69 $68 
Provisions for expected credit losses26 28 
Write-offs(10)(2)
Allowances for credit losses at March 31$85 $94 

Allowances for credit losses related to accounts receivable are included in the Condensed Consolidated Balance Sheets as follows:
ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
March 31,December 31,
20222021
Sempra:
Accounts receivable – trade, net$125 $94 
Accounts receivable – other, net38 39 
Other long-term assets2 3 
Total allowances for credit losses$165 $136 
SDG&E:
Accounts receivable – trade, net$55 $42 
Accounts receivable – other, net22 22 
Other long-term assets1 2 
Total allowances for credit losses$78 $66 
SoCalGas:
Accounts receivable – trade, net$68 $51 
Accounts receivable – other, net16 17 
Other long-term assets1 1 
Total allowances for credit losses$85 $69 
Inventory Table
The components of inventories are as follows:
INVENTORY BALANCES
(Dollars in millions)
 SempraSDG&ESoCalGas
 March 31, 2022 December 31, 2021March 31, 2022 December 31, 2021March 31, 2022 December 31, 2021
Natural gas$129 $164 $— $— $87 $114 
LNG22 27 — — — — 
Materials and supplies201 198 123 123 62 58 
Total$352 $389 $123 $123 $149 $172 
Capitalized Financing Costs Table
The table below summarizes capitalized financing costs, comprised of AFUDC and capitalized interest.
CAPITALIZED FINANCING COSTS
(Dollars in millions)
Three months ended March 31,
 20222021
Sempra$57 $59 
SDG&E28 30 
SoCalGas18 16 
Net Periodic Benefit Cost Table
The following three tables provide the components of net periodic benefit cost.
NET PERIODIC BENEFIT COST – SEMPRA
(Dollars in millions)
 Pension benefitsOther postretirement benefits
 Three months ended March 31,
 2022202120222021
Service cost$41 $37 $7 $6 
Interest cost30 28 7 7 
Expected return on assets(46)(43)(16)(15)
Amortization of:    
Prior service cost (credit)3 3 (1)(1)
Actuarial loss (gain)6 11 (4)(2)
Settlement charges— 7 — — 
Net periodic benefit cost (credit)34 43 (7)(5)
Regulatory adjustments(27)(29)7 5 
Total expense recognized$7 $14 $— $— 
NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
 Pension benefitsOther postretirement benefits
 Three months ended March 31,
 2022202120222021
Service cost$10 $8 $2 $1 
Interest cost7 6 1 1 
Expected return on assets(11)(12)(2)(2)
Amortization of:  
Actuarial gain— — (1)— 
Net periodic benefit cost 6 2 — — 
Regulatory adjustments(5)(2)— — 
Total expense recognized$1 $— $— $— 
NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
 Pension benefitsOther postretirement benefits
 Three months ended March 31,
 2022202120222021
Service cost$28 $25 $5 $4 
Interest cost20 20 5 5 
Expected return on assets(31)(28)(13)(12)
Amortization of:   
Prior service cost (credit)2 2 (1)(1)
Actuarial loss (gain)4 9 (3)(1)
Net periodic benefit cost (credit)23 28 (7)(5)
Regulatory adjustments(22)(27)7 5 
Total expense recognized$1 $1 $— $— 
Earnings Per Share Computations Table Basic EPS is calculated by dividing earnings attributable to common shares 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,
 20222021
Numerator:  
Earnings attributable to common shares for basic EPS$612 $874 
Add back dividends for dilutive mandatory convertible preferred stock(1)
— 10 
Earnings attributable to common shares for diluted EPS$612 $884 
Denominator:  
Weighted-average common shares outstanding for basic EPS(2)
316,353 300,905 
Dilutive effect of stock options and RSUs(3)
1,081 887 
Dilutive effect of mandatory convertible preferred stock— 6,666 
Weighted-average common shares outstanding for diluted EPS317,434 308,458 
EPS:
Basic$1.93 $2.91 
Diluted$1.93 $2.87 
(1)    In the three months ended March 31, 2021, due to the dilutive effect of mandatory convertible preferred stock, the numerator used to calculate diluted EPS includes an add-back of dividends declared on our mandatory convertible preferred stock.
(2)    Includes 407 and 460 fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2022 and 2021, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued.
(3)    Due to market fluctuations of both Sempra common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period.
Schedule of Accumulated Other Comprehensive Income (Loss) Table The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
(Dollars in millions)
 Foreign
currency
translation
adjustments		Financial
instruments		Pension
and other
postretirement
benefits		Total
accumulated other
comprehensive
income (loss)
 Three months ended March 31, 2022 and 2021
Sempra:
Balance at December 31, 2021$(79)$(156)$(83)$(318)
OCI before reclassifications3 74 6 83 
Amounts reclassified from AOCI— 4 2 6 
Net OCI3 78 8 89 
Balance at March 31, 2022$(76)$(78)$(75)$(229)
   
Balance at December 31, 2020$(64)$(331)$(105)$(500)
OCI before reclassifications(5)73 7 75 
Amounts reclassified from AOCI— 19 7 26 
Net OCI
(5)92 14 101 
Balance at March 31, 2021$(69)$(239)$(91)$(399)
SDG&E:
Balance at December 31, 2021 and March 31, 2022$(10)$(10)
Balance at December 31, 2020 and March 31, 2021
$(10)$(10)
SoCalGas:
Balance at December 31, 2021$(13)$(18)$(31)
Amounts reclassified from AOCI— 1 1 
Net OCI— 1 1 
Balance at March 31, 2022
$(13)$(17)$(30)
Balance at December 31, 2020 and March 31, 2021$(13)$(18)$(31)
(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,  
 20222021 
Sempra:
   
Financial instruments:   
Interest rate instruments
$(1)$2 Interest Expense
Interest rate instruments
14 19 
Equity Earnings(1)
Foreign exchange instruments(1)1 Revenues: Energy-Related Businesses
Foreign exchange instruments(1)1 
Equity Earnings(1)
Interest rate and foreign exchange instruments(6)6 Other Income, Net
Total before income tax5 29  
 (1)(8)Income Tax Expense
Net of income tax4 21  
 — (2)Earnings Attributable to Noncontrolling Interests
 $4 $19  
Pension and other postretirement benefits(2):
   
Amortization of actuarial loss$2 $2 Other Income, Net
Amortization of prior service cost1 1 Other Income, Net
Settlement charges— 7 Other Income, Net
Total before income tax3 10 
 (1)(3)Income Tax Expense
Net of income tax$2 $7  
Total reclassifications for the period, net of tax$6 $26  
SoCalGas:   
Pension and other postretirement benefits(2):
   
Amortization of actuarial loss
$1 $— Other Income, Net
Total reclassifications for the period, net of tax$1 $— 
(1)    Equity earnings at our foreign equity method investees are recognized after tax.
(2)    Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above).
Ownership Interests Held By Others Table
The following table provides information about NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra’s Condensed Consolidated Balance Sheets.
OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
 Percent ownership held by noncontrolling interests Equity held by
noncontrolling interests
 March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Sempra Infrastructure:    
SI Partners20.0 %20.0 %$1,387 $1,384 
SI Partners subsidiaries(1)
0.1 - 16.6
0.1 - 16.6
39 34 
Total Sempra  $1,426 $1,418 
(1)    SI Partners has subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
Transactions with Affiliates Table We summarize amounts due from and to unconsolidated affiliates at Sempra, SDG&E and SoCalGas in the following table.
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
 March 31,
2022		December 31,
2021
Sempra:  
Sempra Infrastructure – IMG – Note due March 15, 2023(1)
$626 $2 
Various affiliates45 21 
Total due from unconsolidated affiliates – current$671 $23 
Sempra Infrastructure – IMG – Note due March 15, 2022, net of allowance for credit losses
of $1 at December 31, 2021(1)
$— $637 
Total due from unconsolidated affiliates – noncurrent$— $637 
Sempra Infrastructure(2):
TAG Pipelines Norte, S. de R.L. de C.V.:
5.5% Note due January 9, 2024
$(70)$(69)
5.5% Note due January 14, 2025
(22)(21)
5.5% Note due July 16, 2025
(20)(20)
5.5% Note due January 14, 2026
(18)— 
TAG – 5.74% Note due December 17, 2029
(179)(177)
Total due to unconsolidated affiliates – noncurrent$(309)$(287)
SDG&E:  
Various affiliates$1 $— 
Total due from unconsolidated affiliates – current$1 $— 
Sempra $(51)$(40)
SoCalGas(43)(48)
Various affiliates(11)(9)
Total due to unconsolidated affiliates – current$(105)$(97)
Income taxes due (to) from Sempra(3)
$(41)$19 
SoCalGas:  
SDG&E$43 $48 
Various affiliates1 1 
Total due from unconsolidated affiliates – current$44 $49 
Sempra $(45)$(36)
Total due to unconsolidated affiliates – current$(45)$(36)
Income taxes due from Sempra(3)
$6 $6 
(1)    At December 31, 2021, represents a Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $691 U.S. dollar-equivalent at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps. On March 15, 2022, Sempra Infrastructure amended and restated the revolving line of credit to a U.S. dollar-denominated note in the amount of $625 at a variable interest rate based on the 1-month Secured Overnight Financing Rate plus 180 bps (2.22% at March 31, 2022) and extended the maturity date to March 15, 2023. At March 31, 2022 and December 31, 2021, $1 and $2 of accrued interest receivable, respectively, is included in Due from Unconsolidated Affiliates – Current.
(2)     U.S. dollar-denominated loans at fixed interest rates. Amounts include principal balances plus accumulated interest outstanding.
(3)    SDG&E and SoCalGas are included in the consolidated income tax return of Sempra, and their respective income tax expense is computed as an amount equal to that which would result from each company having always filed a separate return.
The following table summarizes income statement information from unconsolidated affiliates.
INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES  
(Dollars in millions)  
 Three months ended
March 31,
 20222021
Sempra:  
Revenues$7 $8 
Cost of sales— 11 
Interest income10 15 
Interest expense4 4 
SDG&E:  
Revenues$4 $2 
Cost of sales24 28 
SoCalGas:
Revenues$26 $25 
Cost of sales(1)
— 3 
(1)     Includes net commodity costs from natural gas transactions with unconsolidated affiliates.
Other Income and Expense Table
Other income, net, consists of the following:
OTHER INCOME, NET  
(Dollars in millions)  
 Three months ended March 31,
 20222021
Sempra:  
Allowance for equity funds used during construction$35 $38 
Investment (losses) gains, net(1)
(13)9 
Gains (losses) on interest rate and foreign exchange instruments, net
6 (30)
Foreign currency transaction losses, net(2)
(19)(19)
Non-service component of net periodic benefit credit
41 29 
Interest on regulatory balancing accounts, net1 1 
Sundry, net(13)7 
Total$38 $35 
SDG&E:  
Allowance for equity funds used during construction$21 $23 
Non-service component of net periodic benefit credit
11 9 
Interest on regulatory balancing accounts, net1 1 
Sundry, net1 2 
Total$34 $35 
SoCalGas:  
Allowance for equity funds used during construction$13 $12 
Non-service component of net periodic benefit credit
32 28 
Sundry, net(11)(1)
Total$34 $39 
(1)    Represents net investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Condensed Consolidated Statements of Operations.
(2)    Includes losses of $11 and $23 in the three months ended March 31, 2022 and 2021, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to IMG, which are offset by corresponding amounts included in Equity Earnings on the Condensed Consolidated Statements of Operations.
Income Tax Expense and Effective Income Tax Rates Table
We provide our calculations of ETRs in the following table.
INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
Three months ended March 31,
20222021
Sempra:
Income tax expense
$334 $158 
Income before income taxes and equity earnings
$665 $768 
Equity earnings, before income tax(1)
143 135 
Pretax income
$808 $903 
Effective income tax rate41 %18 %
SDG&E:
Income tax expense$64 $45 
Income before income taxes$298 $257 
Effective income tax rate21 %18 %
SoCalGas:
Income tax expense
$84 $94 
Income before income taxes
$418 $501 
Effective income tax rate20 %19 %
(1)    We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.