GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)

9 Months Ended

Sep. 30, 2023

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.

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
	September 30, 2023		December 31, 2022
Cash and cash equivalents	$	1,149	$	370
Restricted cash, current	238		40
Restricted cash, noncurrent	104		52
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows	$	1,491	$	462

Accounts Receivable, Allowance for Credit Loss Table

Changes in allowances for credit losses for trade receivables and other receivables are as follows:

CHANGES IN ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
	2023		2022
Sempra:
Allowances for credit losses at January 1	$	181	$	136
Provisions for expected credit losses	374		111
Write-offs	(74)		(57)
Allowances for credit losses at September 30	$	481	$	190
SDG&E:
Allowances for credit losses at January 1	$	78	$	66
Provisions for expected credit losses	96		51
Write-offs	(34)		(30)
Allowances for credit losses at September 30	$	140	$	87
SoCalGas:
Allowances for credit losses at January 1	$	98	$	69
Provisions for expected credit losses	276		58
Write-offs	(40)		(27)
Allowances for credit losses at September 30	$	334	$	100

Allowances for credit losses related to trade receivables and other receivables are included in the Condensed Consolidated Balance Sheets as follows:

ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
	September 30,		December 31,
	2023		2022
Sempra:
Accounts receivable – trade, net	$	432	$	140
Accounts receivable – other, net	48		40
Other long-term assets	1		1
Total allowances for credit losses	$	481	$	181
SDG&E:
Accounts receivable – trade, net	$	113	$	52
Accounts receivable – other, net	26		25
Other long-term assets	1		1
Total allowances for credit losses	$	140	$	78
SoCalGas:
Accounts receivable – trade, net	$	312	$	83
Accounts receivable – other, net	22		15
Total allowances for credit losses	$	334	$	98

Inventory Table

The components of inventories are as follows:

INVENTORY BALANCES
(Dollars in millions)
	Sempra				SDG&E				SoCalGas
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Natural gas	$	160	$	106	$	1	$	1	$	144	$	74
LNG	9		62		—		—		—		—
Materials and supplies	282		235		146		133		116		85
Total	$	451	$	403	$	147	$	134	$	260	$	159

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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Sempra	$	128	$	65	$	311	$	182
SDG&E	28		30		90		84
SoCalGas	20		19		55		54

Net Periodic Benefit Cost Table

The following tables provide the components of net periodic benefit cost. The components of net periodic benefit cost, other than the service cost component, are included in the Other Income (Expense), Net, table below.

NET PERIODIC BENEFIT COST – SEMPRA
(Dollars in millions)
	Pension				PBOP
	Three months ended September 30,
	2023		2022		2023		2022
Service cost	$	25	$	27	$	3	$	4
Interest cost	39		29		9		7
Expected return on assets	(42)		(46)		(17)		(16)
Amortization of:
Prior service cost (credit)	2		3		(1)		(1)
Actuarial loss (gain)	3		8		(5)		(4)
Net periodic benefit cost (credit)	27		21		(11)		(10)
Regulatory adjustments	30		87		10		10
Total expense (income) recognized	$	57	$	108	$	(1)	$	—
	Nine months ended September 30,
	2023		2022		2023		2022
Service cost	$	82	$	110	$	10	$	17
Interest cost	118		88		28		21
Expected return on assets	(127)		(137)		(52)		(48)
Amortization of:
Prior service cost (credit)	4		8		(2)		(2)
Actuarial loss (gain)	7		19		(17)		(11)
Net periodic benefit cost (credit)	84		88		(33)		(23)
Regulatory adjustments	88		84		32		23
Total expense (income) recognized	$	172	$	172	$	(1)	$	—

NET PERIODIC BENEFIT COST – SDG&E
(Dollars in millions)
	Pension				PBOP
	Three months ended September 30,
	2023		2022		2023		2022
Service cost	$	8	$	8	$	1	$	1
Interest cost	10		7		2		1
Expected return on assets	(9)		(13)		(2)		(2)
Amortization of:
Actuarial loss (gain)	2		—		—		(1)
Net periodic benefit cost (credit)	11		2		1		(1)
Regulatory adjustments	3		24		(1)		1
Total expense recognized	$	14	$	26	$	—	$	—
	Nine months ended September 30,
	2023		2022		2023		2022
Service cost	$	24	$	28	$	2	$	4
Interest cost	30		20		6		4
Expected return on assets	(29)		(35)		(6)		(7)
Amortization of:
Actuarial loss (gain)	4		1		(1)		(2)
Net periodic benefit cost (credit)	29		14		1		(1)
Regulatory adjustments	11		26		(1)		1
Total expense recognized	$	40	$	40	$	—	$	—

NET PERIODIC BENEFIT COST – SOCALGAS
(Dollars in millions)
	Pension				PBOP
	Three months ended September 30,
	2023		2022		2023		2022
Service cost	$	15	$	16	$	2	$	3
Interest cost	24		20		7		5
Expected return on assets	(29)		(30)		(14)		(13)
Amortization of:
Prior service cost (credit)	1		2		(1)		(1)
Actuarial loss (gain)	1		6		(5)		(3)
Net periodic benefit cost (credit)	12		14		(11)		(9)
Regulatory adjustments	27		63		11		9
Total expense recognized	$	39	$	77	$	—	$	—
	Nine months ended September 30,
	2023		2022		2023		2022
Service cost	$	49	$	72	$	7	$	13
Interest cost	75		61		21		16
Expected return on assets	(89)		(94)		(44)		(40)
Amortization of:
Prior service cost (credit)	3		6		(2)		(2)
Actuarial loss (gain)	1		14		(15)		(9)
Net periodic benefit cost (credit)	39		59		(33)		(22)
Regulatory adjustments	77		58		33		22
Total expense recognized	$	116	$	117	$	—	$	—

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, after 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 PBOP		Total AOCI
	Three months ended September 30, 2023 and 2022
Sempra:
Balance at June 30, 2023	$	(38)	$	14	$	(97)	$	(121)
OCI before reclassifications	(5)		116		—		111
Amounts reclassified from AOCI(2)	—		(51)		1		(50)
Net OCI(2)	(5)		65		1		61
Balance at September 30, 2023	$	(43)	$	79	$	(96)	$	(60)
Balance at June 30, 2022	$	(65)	$	(30)	$	(72)	$	(167)
OCI before reclassifications	—		40		—		40
Amounts reclassified from AOCI	—		5		2		7
Net OCI	—		45		2		47
Balance at September 30, 2022	$	(65)	$	15	$	(70)	$	(120)
SDG&E:
Balance at June 30, 2023 and September 30, 2023					$	(7)	$	(7)
Balance at June 30, 2022					$	(10)	$	(10)
Amounts reclassified from AOCI					1		1
Net OCI					1		1
Balance at September 30, 2022					$	(9)	$	(9)
SoCalGas:
Balance at June 30, 2023 and September 30, 2023			$	(11)	$	(11)	$	(22)
Balance at June 30, 2022			$	(12)	$	(17)	$	(29)
Amounts reclassified from AOCI			—		1		1
Net OCI			—		1		1
Balance at September 30, 2022			$	(12)	$	(16)	$	(28)

(1)    All amounts are net of income tax, if subject to tax, and after NCI.

(2)    Total AOCI includes ($46) of financial instruments associated with sale of NCI to KKR Denali, which we discuss below in “Other Noncontrolling Interests – Sempra Infrastructure.” This transaction did not impact the Condensed Consolidated Statement of Comprehensive Income (Loss).

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (CONTINUED)
(Dollars in millions)
	Foreign currency translation adjustments		Financial instruments		Pension and PBOP		Total AOCI
	Nine months ended September 30, 2023 and 2022
Sempra:
Balance at December 31, 2022	$	(59)	$	10	$	(86)	$	(135)
OCI before reclassifications	16		129		(13)		132
Amounts reclassified from AOCI(2)	—		(60)		3		(57)
Net OCI(2)	16		69		(10)		75
Balance at September 30, 2023	$	(43)	$	79	$	(96)	$	(60)
Balance at December 31, 2021	$	(79)	$	(156)	$	(83)	$	(318)
OCI before reclassifications	4		151		7		162
Amounts reclassified from AOCI(3)	10		20		6		36
Net OCI(3)	14		171		13		198
Balance at September 30, 2022	$	(65)	$	15	$	(70)	$	(120)
SDG&E:
Balance at December 31, 2022 and September 30, 2023					$	(7)	$	(7)
Balance at December 31, 2021					$	(10)	$	(10)
Amounts reclassified from AOCI					1		1
Net OCI					1		1
Balance at September 30, 2022					$	(9)	$	(9)
SoCalGas:
Balance at December 31, 2022			$	(12)	$	(12)	$	(24)
Amounts reclassified from AOCI			1		1		2
Net OCI			1		1		2
Balance at September 30, 2023			$	(11)	$	(11)	$	(22)
Balance at December 31, 2021			$	(13)	$	(18)	$	(31)
Amounts reclassified from AOCI			1		2		3
Net OCI			1		2		3
Balance at September 30, 2022			$	(12)	$	(16)	$	(28)

(1)    All amounts are net of income tax, if subject to tax, and after NCI.

(2)    Total AOCI includes ($46) of financial instruments associated with sale of NCI to KKR Denali, which we discuss below in “Other Noncontrolling Interests – Sempra Infrastructure.” This transaction did not impact the Condensed Consolidated Statement of Comprehensive Income (Loss).

(3)    Total AOCI includes $9 of foreign currency translation adjustments associated with sale of NCI to ADIA, which we discuss below in “Other Noncontrolling Interests – Sempra Infrastructure.” This transaction did not impact the Condensed Consolidated Statement of Comprehensive Income (Loss).

Reclassifications out of AOCI Table

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about AOCI	Amounts reclassified from AOCI				Affected line item on Condensed Consolidated Statements of Operations
	Three months ended September 30,
	2023		2022
Sempra:
Financial instruments:
Interest rate instruments	$	1	$	2	Interest Expense
Interest rate instruments	(12)		1		Equity Earnings(1)
Foreign exchange instruments	(1)		—		Other Income (Expense), Net
Foreign exchange instruments	(1)		—		Equity Earnings
Interest rate and foreign exchange instruments	—		3		Other Income (Expense), Net
Total, before income tax	(13)		6
	2		(2)		Income Tax Benefit (Expense)
Total, net of income tax	(11)		4
	6		1		Earnings Attributable to Noncontrolling Interests
Total, net of income tax and after NCI	$	(5)	$	5
Pension and PBOP(2):
Amortization of actuarial loss	$	1	$	2	Other Income (Expense), Net
Amortization of prior service cost	1		1		Other Income (Expense), Net
Total, before income tax	2		3
	(1)		(1)		Income Tax Benefit (Expense)
Total, net of income tax	$	1	$	2
Total reclassifications for the period, net of income  tax and after NCI	$	(4)	$	7
SDG&E:
Pension and PBOP(2):
Amortization of actuarial loss	$	—	$	1	Other Income, Net
Total reclassifications for the period, net of income  tax	$	—	$	1
SoCalGas:
Pension and PBOP(2):
Amortization of prior service cost	$	—	$	1	Other Expense, Net
Total reclassifications for the period, net of income  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 “Net Periodic Benefit Cost” above).

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)
(Dollars in millions)
Details about AOCI	Amounts reclassified from AOCI				Affected line item on Condensed Consolidated Statements of Operations
	Nine months ended September 30,
	2023		2022
Sempra:
Foreign currency translation adjustments	$	—	$	1	Operation and Maintenance
Financial instruments:
Interest rate instruments	$	1	$	1	Interest Expense
Interest rate instruments	(33)		28		Equity Earnings(1)
Foreign exchange instruments	—		(2)		Revenues: Energy-Related Businesses
	1		1		Other Income (Expense), Net
Foreign exchange instruments	1		(1)		Equity Earnings(1)
Interest rate and foreign exchange instruments	(1)		(1)		Interest Expense
	(6)		(3)		Other Income (Expense), Net
Total, before income tax	(37)		23
	5		(7)		Income Tax Benefit (Expense)
Total, net of income tax	(32)		16
	18		4		Earnings Attributable to Noncontrolling Interests
Total, net of income tax and after NCI	$	(14)	$	20
Pension and PBOP(2):
Amortization of actuarial loss	$	2	$	6	Other Income (Expense), Net
Amortization of prior service cost	2		3		Other Income (Expense), Net
Total, before income tax	4		9
	(1)		(3)		Income Tax Benefit (Expense)
Total, net of income tax	$	3	$	6
Total reclassifications for the period, net of income  tax and after NCI	$	(11)	$	27
SDG&E:
Pension and PBOP(2):
Amortization of actuarial loss	$	—	$	1	Other Income, Net
Total reclassifications for the period, net of income  tax	$	—	$	1
SoCalGas:
Financial instruments:
Interest rate instruments	$	1	$	1	Interest Expense
Pension and PBOP(2):
Amortization of actuarial loss	$	—	$	1	Other Expense, Net
Amortization of prior service cost	1		1		Other Expense, Net
Total, net of income tax	$	1	$	2
Total reclassifications for the period, net of income  tax	$	2	$	3

(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 “Net Periodic Benefit Cost” 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
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Sempra Infrastructure:
SI Partners	30.0	%	30.0	%	$	4,011	$	2,060
SI Partners subsidiaries(1)	0.1 - 42.0		0.1 - 16.6		989		61
Total Sempra					$	5,000	$	2,121

(1)    SI Partners has subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.

Earnings Per Share Computations Table

EARNINGS PER COMMON SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Numerator:
Earnings attributable to common shares	$	721	$	485	$	2,293	$	1,656
Denominator:
Weighted-average common shares outstanding for basic EPS(1)	630,036		629,447		629,963		630,603
Dilutive effect of stock options and RSUs(2)	2,288		2,728		2,268		2,311
Weighted-average common shares outstanding for diluted EPS	632,324		632,175		632,231		632,914
EPS:
Basic	$	1.14	$	0.77	$	3.64	$	2.63
Diluted	$	1.14	$	0.77	$	3.63	$	2.62

(1)    Includes 716 and 803 fully vested RSUs held in our Deferred Compensation Plan for the three months ended September 30, 2023 and 2022, respectively, and 716 and 805 of such RSUs for the nine months ended September 30, 2023 and 2022, 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 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.

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)
	September 30, 2023		December 31, 2022
Sempra:
Tax sharing arrangement with Oncor Holdings	$	34	$	41
Various affiliates	8		13
Total due from unconsolidated affiliates – current	$	42	$	54
Sempra Infrastructure(1):
TAG Pipelines Norte, S. de R.L. de C.V. – 5.5% Note due January 9, 2024	$	(5)	$	—
Total due to unconsolidated affiliates – current	$	(5)	$	—
Sempra Infrastructure(1):
TAG Pipelines Norte, S. de R.L. de C.V.:
5.5% Note due January 9, 2024	$	—	$	(40)
5.5% Note due January 14, 2025	(24)		(23)
5.5% Note due July 16, 2025	(22)		(21)
5.5% Note due January 14, 2026	(20)		(19)
5.5% Note due July 14, 2026	(11)		(11)
5.5% Note due January 19, 2027	(14)		—
5.5% Note due July 21, 2027	(17)		—
TAG – 5.74% Note due December 17, 2029	(195)		(187)
Total due to unconsolidated affiliates – noncurrent	$	(303)	$	(301)
SDG&E:
SoCalGas	$	8	$	—
Total due from unconsolidated affiliates – current	$	8	$	—
Sempra	$	(38)	$	(49)
SoCalGas	—		(72)
Various affiliates	(11)		(14)
Total due to unconsolidated affiliates – current	$	(49)	$	(135)
Income taxes due (to) from Sempra(2)	$	(43)	$	10
SoCalGas:
SDG&E	$	—	$	72
Various affiliates	1		5
Total due from unconsolidated affiliates – current	$	1	$	77
Sempra	$	(30)	$	(36)
SDG&E	(8)		—
Total due to unconsolidated affiliates – current	$	(38)	$	(36)
Income taxes due to Sempra(2)	$	(6)	$	(16)

(1)     U.S. dollar-denominated loans at fixed interest rates. Amounts include principal balances plus accumulated interest outstanding.

(2)    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. Amounts include current and noncurrent income taxes due to/from Sempra.

The following table summarizes income statement information from unconsolidated affiliates.

INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Sempra:
Revenues	$	10	$	10	$	34	$	32
Interest income	—		2		—		16
Interest expense	3		4		11		12
SDG&E:
Revenues	$	5	$	4	$	15	$	12
Cost of sales	25		17		82		67
SoCalGas:
Revenues	$	29	$	24	$	91	$	73
Cost of sales(1)	2		(1)		37		(5)

(1)     Includes net commodity costs from natural gas transactions with unconsolidated affiliates.

Other Income and Expense Table

Other Income (Expense), Net, consists of the following:

OTHER INCOME (EXPENSE), NET
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Sempra:
Allowance for equity funds used during construction	$	35	$	35	$	105	$	104
Investment losses, net(1)	(19)		(13)		(2)		(60)
Gains (losses) on interest rate and foreign exchange instruments, net	1		(3)		5		2
Foreign currency transaction (losses) gains, net(2)	(3)		4		1		(18)
Non-service components of net periodic benefit cost	(28)		(77)		(79)		(45)
Interest on regulatory balancing accounts, net	19		7		56		12
Sundry, net	(2)		7		(11)		2
Total	$	3	$	(40)	$	75	$	(3)
SDG&E:
Allowance for equity funds used during construction	$	21	$	22	$	67	$	64
Non-service components of net periodic benefit cost	(5)		(17)		(14)		(8)
Interest on regulatory balancing accounts, net	10		5		31		9
Sundry, net	(1)		2		(9)		3
Total	$	25	$	12	$	75	$	68
SoCalGas:
Allowance for equity funds used during construction	$	14	$	14	$	38	$	40
Non-service components of net periodic benefit cost	(22)		(58)		(60)		(32)
Interest on regulatory balancing accounts, net	9		2		25		3
Sundry, net	(3)		(1)		(12)		(16)
Total	$	(2)	$	(43)	$	(9)	$	(5)

(1)    Represents net investment losses 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 in the nine months ended September 30, 2022 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 Statement of Operations.

Income Tax Expense and Effective Income Tax Rates Table

We provide our calculations of ETRs in the following table.

INCOME TAX (BENEFIT) EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2023			2022			2023			2022
Sempra:
Income tax (benefit) expense	$	(52)		$	21		$	499		$	435
Income before income taxes and equity earnings	$	323		$	165		$	2,175		$	1,194
Equity earnings, before income tax(1)	133			134			418			436
Pretax income	$	456		$	299		$	2,593		$	1,630
Effective income tax rate	(11)		%	7		%	19		%	27		%
SDG&E:
Income tax (benefit) expense	$	(15)		$	35		$	(4)		$	141
Income before income taxes	$	259		$	306		$	712		$	822
Effective income tax rate	(6)		%	11		%	(1)		%	17		%
SoCalGas:
Income tax (benefit) expense	$	(5)		$	(28)		$	68		$	75
Income (loss) before income taxes	$	11		$	(110)		$	600		$	415
Effective income tax rate	(45)		%	25		%	11		%	18		%

(1)    We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.