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GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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)
	June 30, 2024		December 31, 2023
Sempra:
Cash and cash equivalents	$	228	$	236
Restricted cash, current	16		49
Restricted cash, noncurrent	107		104
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows	$	351	$	389

Accounts Receivable, Allowance for Credit Loss

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


CHANGES IN ALLOWANCES FOR CREDIT LOSSES
(Dollars in millions)
	2024		2023
Sempra:
Allowances for credit losses at January 1	$	533	$	181
Provisions for expected credit losses	94		228
Write-offs	(112)		(43)
Allowances for credit losses at June 30	$	515	$	366
SDG&E:
Allowances for credit losses at January 1	$	144	$	78
Provisions for expected credit losses	24		63
Write-offs	(42)		(23)
Allowances for credit losses at June 30	$	126	$	118
SoCalGas:
Allowances for credit losses at January 1	$	331	$	98
Provisions for expected credit losses	45		164
Write-offs	(70)		(20)
Allowances for credit losses at June 30	$	306	$	242

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)
	June 30,		December 31,
	2024		2023
Sempra:
Accounts receivable – trade, net	$	451	$	480
Accounts receivable – other, net	52		52
Other long-term assets	12		1
Total allowances for credit losses	$	515	$	533
SDG&E:
Accounts receivable – trade, net	$	96	$	116
Accounts receivable – other, net	26		27
Other long-term assets	4		1
Total allowances for credit losses	$	126	$	144
SoCalGas:
Accounts receivable – trade, net	$	272	$	306
Accounts receivable – other, net	26		25
Other long-term assets	8		—
Total allowances for credit losses	$	306	$	331

Schedule of Related Party Transactions

We summarize amounts due from and to unconsolidated affiliates at the Registrants in the following table.


AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	June 30, 2024		December 31, 2023
Sempra:
Tax sharing arrangement with Oncor Holdings	$	—	$	25
Various affiliates	7		6
Total due from unconsolidated affiliates – current	$	7	$	31

Tax sharing arrangement with Oncor Holdings	$	(3)	$	—
TAG Pipelines – 5.5% Note due January 9, 2024(1)	—		(5)
Total due to unconsolidated affiliates – current	$	(3)	$	(5)

TAG Pipelines(1):
5.5% Note due January 14, 2025	$	—	$	(24)
5.5% Note due July 16, 2025	—		(23)
5.5% Note due January 14, 2026	(8)		(20)
5.5% Note due July 14, 2026	(12)		(11)
5.5% Note due January 19, 2027	(15)		(14)
5.5% Note due July 21, 2027	(18)		(17)
5.5% Note due January 19, 2028	(46)		—
TAG Norte – 5.74% Note due December 17, 2029(1)	(203)		(198)
Total due to unconsolidated affiliates – noncurrent	$	(302)	$	(307)
SDG&E:
SoCalGas	$	9	$	—
Total due from unconsolidated affiliates – current	$	9	$	—

Sempra	$	(27)	$	(44)
SoCalGas	—		(21)
Various affiliates	(13)		(8)
Total due to unconsolidated affiliates – current	$	(40)	$	(73)

Income taxes due from Sempra(2)	$	223	$	246
SoCalGas:
SDG&E	$	—	$	21
Various affiliates	1		1
Total due from unconsolidated affiliates – current	$	1	$	22

Sempra	$	(34)	$	(38)
SDG&E	(8)		—
Total due to unconsolidated affiliates – current	$	(42)	$	(38)

Income taxes due from Sempra(2)	$	10	$	6

(1) U.S. dollar-denominated loans at fixed interest rates. Amounts include principal balances plus accumulated interest outstanding and VAT payable to the Mexican government.

(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.


INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Sempra:
Revenues	$	10	$	11	$	20	$	24
Interest expense	3		4		7		8
SDG&E:
Revenues	$	5	$	6	$	11	$	10
Cost of sales	35		27		75		57
SoCalGas:
Revenues	$	37	$	28	$	81	$	62
Cost of sales(1)	—		4		(3)		35

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

Schedule of Inventory, Current

The components of inventories are as follows:


INVENTORY BALANCES
(Dollars in millions)
	Sempra				SDG&E				SoCalGas
	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Natural gas	$	147	$	174	$	1	$	1	$	132	$	155
LNG	8		9		—		—		—		—
Materials and supplies	312		299		158		152		128		122
Total	$	467	$	482	$	159	$	153	$	260	$	277

Schedule of Capitalization

The table below summarizes capitalized financing costs, comprised of AFUDC and capitalized interest.


CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Sempra	$	155	$	110	$	300	$	183
SDG&E	27		31		53		62
SoCalGas	26		20		50		35

Schedule of Accumulated Other Comprehensive Income (Loss)

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 June 30, 2024 and 2023
Sempra:
Balance at March 31, 2024	$	(33)	$	42	$	(113)	$	(104)
OCI before reclassifications	(16)		3		(1)		(14)
Amounts reclassified from AOCI	—		(10)		7		(3)
Net OCI	(16)		(7)		6		(17)
Balance at June 30, 2024	$	(49)	$	35	$	(107)	$	(121)

Balance at March 31, 2023	$	(49)	$	(35)	$	(98)	$	(182)
OCI before reclassifications	11		53		—		64
Amounts reclassified from AOCI	—		(4)		1		(3)
Net OCI	11		49		1		61
Balance at June 30, 2023	$	(38)	$	14	$	(97)	$	(121)
SDG&E:
Balance at March 31, 2024 and June 30, 2024					$	(8)	$	(8)





Balance at March 31, 2023 and June 30, 2023					$	(7)	$	(7)
SoCalGas:
Balance at March 31, 2024			$	(11)	$	(11)	$	(22)

Amounts reclassified from AOCI			1		—		1
Net OCI			1		—		1
Balance at June 30, 2024			$	(10)	$	(11)	$	(21)

Balance at March 31, 2023			$	(12)	$	(11)	$	(23)
Amounts reclassified from AOCI			1		—		1
Net OCI			1		—		1
Balance at June 30, 2023			$	(11)	$	(11)	$	(22)

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


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
	Six months ended June 30, 2024 and 2023
Sempra:
Balance at December 31, 2023	$	(36)	$	3	$	(117)	$	(150)
OCI before reclassifications	(13)		48		1		36
Amounts reclassified from AOCI	—		(16)		9		(7)
Net OCI	(13)		32		10		29
Balance at June 30, 2024	$	(49)	$	35	$	(107)	$	(121)

Balance at December 31, 2022	$	(59)	$	10	$	(86)	$	(135)
OCI before reclassifications	21		13		(13)		21
Amounts reclassified from AOCI	—		(9)		2		(7)
Net OCI	21		4		(11)		14
Balance at June 30, 2023	$	(38)	$	14	$	(97)	$	(121)
SDG&E:
Balance at December 31, 2023 and June 30, 2024					$	(8)	$	(8)





Balance at December 31, 2022 and June 30, 2023					$	(7)	$	(7)
SoCalGas:
Balance at December 31, 2023			$	(11)	$	(12)	$	(23)

Amounts reclassified from AOCI			1		1		2
Net OCI			1		1		2
Balance at June 30, 2024			$	(10)	$	(11)	$	(21)

Balance at December 31, 2022			$	(12)	$	(12)	$	(24)
Amounts reclassified from AOCI			1		1		2
Net OCI			1		1		2
Balance at June 30, 2023			$	(11)	$	(11)	$	(22)

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

Reclassifications out of AOCI


RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about AOCI components	Amounts reclassified from AOCI				Affected line item on Condensed Consolidated Statements of Operations
	Three months ended June 30,
	2024		2023
Sempra:
Financial instruments:
Interest rate instruments	$	(3)	$	—	Interest Expense
Interest rate instruments	(10)		(14)		Equity Earnings(1)
Foreign exchange instruments	(2)		—		Revenues: Energy-Related Businesses
	(1)		1		Other Income, Net
Foreign exchange instruments	(2)		1		Equity Earnings(1)
Interest rate and foreign exchange instruments	—		(1)		Interest Expense
Total, before income tax	(18)		(13)
	3		—		Income Tax Benefit (Expense)
Total, net of income tax	(15)		(13)
	5		9		Earnings Attributable to Noncontrolling Interests
Total, net of income tax and after NCI	$	(10)	$	(4)

Pension and PBOP(2):
Amortization of actuarial loss	$	1	$	1	Other Income, Net

Settlement charges	9		—		Other Income, Net
Total, before income tax	10		1
	(3)		—		Income Tax Benefit (Expense)
Total, net of income tax	$	7	$	1

Total reclassifications for the period, net of income tax and after NCI	$	(3)	$	(3)





SoCalGas:
Financial instruments:
Interest rate instruments	$	1	$	1	Interest Expense






Total reclassifications for the period, net of income tax	$	1	$	1

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

(2) Amounts are included in the computation of net periodic benefit cost (see “Pension and PBOP” below).


RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)
(Dollars in millions)
Details about AOCI components	Amounts reclassified from AOCI				Affected line item on Condensed Consolidated Statements of Operations
	Six months ended June 30,
	2024		2023
Sempra:
Financial instruments:
Interest rate instruments	$	(6)	$	—	Interest Expense
Interest rate instruments	(15)		(21)		Equity Earnings(1)
Foreign exchange instruments	(5)		—		Revenues: Energy-Related Businesses
	(1)		2		Other Income, Net
Foreign exchange instruments	(4)		2		Equity Earnings(1)
Interest rate and foreign exchange instruments	—		(1)		Interest Expense
	—		(6)		Other Income, Net
Total, before income tax	(31)		(24)
	6		3		Income Tax Benefit (Expense)
Total, net of income tax	(25)		(21)
	9		12		Earnings Attributable to Noncontrolling Interests
Total, net of income tax and after NCI	$	(16)	$	(9)

Pension and PBOP(2):
Amortization of actuarial loss	$	3	$	1	Other Income, Net
Amortization of prior service cost	1		1		Other Income, Net
Settlement charges	9		—		Other Income, Net
Total, before income tax	13		2
	(4)		—		Income Tax Benefit (Expense)
Total, net of income tax	$	9	$	2

Total reclassifications for the period, net of income tax and after NCI	$	(7)	$	(7)





SoCalGas:
Financial instruments:
Interest rate instruments	$	1	$	1	Interest Expense

Pension and PBOP(2):

Amortization of prior service cost	$	1	$	1	Other Income (Expense), Net


Total reclassifications for the period, net of income tax	$	2	$	2

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

(2) Amounts are included in the computation of net periodic benefit cost (see “Pension and PBOP” below).

Schedule of Net Benefit Costs


NET PERIODIC BENEFIT COST
(Dollars in millions)
	Pension				PBOP
	Three months ended June 30,
	2024		2023		2024		2023
Sempra:
Service cost	$	33	$	29	$	3	$	3
Interest cost	41		39		9		10
Expected return on assets	(46)		(42)		(17)		(18)
Amortization of:
Prior service cost	2		1		—		—
Actuarial loss (gain)	3		2		(4)		(6)
Settlement charges	9		—		—		—
Net periodic benefit cost (credit)	42		29		(9)		(11)
Regulatory adjustments	26		29		9		11
Total expense recognized	$	68	$	58	$	—	$	—
SDG&E:
Service cost	$	9	$	8	$	1	$	—
Interest cost	11		10		1		2
Expected return on assets	(11)		(10)		(1)		(2)
Amortization of:
Actuarial loss (gain)	1		1		(1)		—
Net periodic benefit cost	10		9		—		—
Regulatory adjustments	3		4		—		—
Total expense recognized	$	13	$	13	$	—	$	—
SoCalGas:
Service cost	$	19	$	17	$	2	$	2
Interest cost	26		26		7		7
Expected return on assets	(31)		(31)		(15)		(15)
Amortization of:
Prior service cost	1		1		—		—
Actuarial gain	—		—		(3)		(5)
Net periodic benefit cost (credit)	15		13		(9)		(11)
Regulatory adjustments	23		25		9		11
Total expense recognized	$	38	$	38	$	—	$	—


NET PERIODIC BENEFIT COST (CONTINUED)
(Dollars in millions)
	Pension				PBOP
	Six months ended June 30,
	2024		2023		2024		2023
Sempra:
Service cost	$	65	$	57	$	7	$	7
Interest cost	83		79		18		19
Expected return on assets	(91)		(85)		(34)		(35)
Amortization of:
Prior service cost (credit)	3		2		(1)		(1)
Actuarial loss (gain)	6		4		(8)		(12)
Settlement charges	9		—		—		—
Net periodic benefit cost (credit)	75		57		(18)		(22)
Regulatory adjustments	1		58		18		22
Total expense recognized	$	76	$	115	$	—	$	—
SDG&E:
Service cost	$	19	$	16	$	2	$	1
Interest cost	22		20		3		4
Expected return on assets	(23)		(20)		(4)		(4)
Amortization of:
Actuarial loss (gain)	3		2		(1)		(1)
Net periodic benefit cost	21		18		—		—
Regulatory adjustments	(7)		8		—		—
Total expense recognized	$	14	$	26	$	—	$	—
SoCalGas:
Service cost	$	38	$	34	$	5	$	5
Interest cost	52		51		14		14
Expected return on assets	(61)		(60)		(30)		(30)
Amortization of:
Prior service cost (credit)	2		2		(1)		(1)
Actuarial gain	—		—		(6)		(10)
Net periodic benefit cost (credit)	31		27		(18)		(22)
Regulatory adjustments	8		50		18		22
Total expense recognized	$	39	$	77	$	—	$	—

Schedule of Other Nonoperating Income (Expense)

Other Income, Net, consists of the following:


OTHER INCOME (EXPENSE), NET
(Dollars in millions)
	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Sempra:
Allowance for equity funds used during construction	$	38	$	37	$	75	$	70
Investment gains, net(1)	3		5		19		17
Gains (losses) on interest rate and foreign exchange instruments, net	1		(1)		1		4
Foreign currency transaction (losses) gains, net	(2)		3		(1)		4
Non-service components of net periodic benefit cost	(32)		(26)		(4)		(51)
Interest on regulatory balancing accounts, net	24		19		42		37
Sundry, net	(2)		(6)		(3)		(9)
Total	$	30	$	31	$	129	$	72
SDG&E:
Allowance for equity funds used during construction	$	19	$	23	$	39	$	46
Non-service components of net periodic benefit cost	(3)		(5)		7		(9)
Interest on regulatory balancing accounts, net	11		11		18		21
Sundry, net	(4)		(7)		(8)		(8)
Total	$	23	$	22	$	56	$	50
SoCalGas:
Allowance for equity funds used during construction	$	19	$	14	$	36	$	24
Non-service components of net periodic benefit cost	(17)		(19)		4		(38)
Interest on regulatory balancing accounts, net	13		8		24		16
Sundry, net	(2)		(2)		(4)		(9)
Total	$	13	$	1	$	60	$	(7)

(1) Represents net investment 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.

Schedule of Effective Income Tax Rate Reconciliation

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 June 30,						Six months ended June 30,
	2024			2023			2024			2023
Sempra:
Income tax (benefit) expense	$	(130)		$	175		$	42		$	551

Income before income taxes and equity earnings	$	308		$	523		$	1,013		$	1,852
Equity earnings, before income tax(1)	160			153			294			285
Pretax income	$	468		$	676		$	1,307		$	2,137

Effective income tax rate	(28)		%	26		%	3		%	26		%
SDG&E:
Income tax expense	$	34		$	4		$	74		$	11
Income before income taxes	$	220		$	188		$	483		$	453
Effective income tax rate	15		%	2		%	15		%	2		%
SoCalGas:
Income tax expense (benefit)	$	10		$	(21)		$	53		$	73
Income before income taxes	$	141		$	135		$	543		$	589
Effective income tax rate	7		%	(16)		%	10		%	12		%

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