GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)

9 Months Ended

Sep. 30, 2024

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)
	September 30, 2024		December 31, 2023
Sempra:
Cash and cash equivalents	$	560	$	236
Restricted cash, current	22		49
Restricted cash, noncurrent	108		104
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows	$	690	$	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	149		374
Write-offs	(169)		(74)
Allowances for credit losses at September 30	$	513	$	481
SDG&E:
Allowances for credit losses at January 1	$	144	$	78
Provisions for expected credit losses	46		96
Write-offs	(63)		(34)
Allowances for credit losses at September 30	$	127	$	140
SoCalGas:
Allowances for credit losses at January 1	$	331	$	98
Provisions for expected credit losses	70		276
Write-offs	(107)		(40)
Allowances for credit losses at September 30	$	294	$	334

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,
	2024		2023
Sempra:
Accounts receivable – trade, net	$	441	$	480
Accounts receivable – other, net	57		52
Other long-term assets	15		1
Total allowances for credit losses	$	513	$	533
SDG&E:
Accounts receivable – trade, net	$	94	$	116
Accounts receivable – other, net	26		27
Other long-term assets	7		1
Total allowances for credit losses	$	127	$	144
SoCalGas:
Accounts receivable – trade, net	$	255	$	306
Accounts receivable – other, net	31		25
Other long-term assets	8		—
Total allowances for credit losses	$	294	$	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)
	September 30, 2024		December 31, 2023
Sempra:
Tax sharing arrangement with Oncor Holdings	$	8	$	25
Various affiliates	6		6
Total due from unconsolidated affiliates – current	$	14	$	31
TAG Pipelines – 5.5% Note due January 9, 2024(1)	$	—	$	(5)
Total due to unconsolidated affiliates – current	$	—	$	(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	(47)		—
5.5% Note due July 18, 2028	(41)		—
TAG Norte – 5.74% Note due December 17, 2029(1)	(206)		(198)
Total due to unconsolidated affiliates – noncurrent	$	(347)	$	(307)
SDG&E:
SoCalGas	$	8	$	—
Total due from unconsolidated affiliates – current	$	8	$	—
Sempra	$	(40)	$	(44)
SoCalGas	—		(21)
Various affiliates	(8)		(8)
Total due to unconsolidated affiliates – current	$	(48)	$	(73)
Income taxes due from Sempra(2)	$	251	$	246
SoCalGas:
SDG&E	$	—	$	21
Various affiliates	2		1
Total due from unconsolidated affiliates – current	$	2	$	22
Sempra	$	(35)	$	(38)
SDG&E	(8)		—
Total due to unconsolidated affiliates – current	$	(43)	$	(38)
Income taxes due from Sempra(2)	$	9	$	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.

We summarize income statement information from unconsolidated affiliates in the following table.

INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Sempra:
Revenues	$	11	$	10	$	31	$	34
Interest expense	5		3		12		11
SDG&E:
Revenues	$	6	$	5	$	17	$	15
Cost of sales	36		25		111		82
SoCalGas:
Revenues	$	43	$	29	$	124	$	91
Cost of sales(1)	(2)		2		(5)		37

(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
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Natural gas	$	166	$	174	$	1	$	1	$	153	$	155
LNG	13		9		—		—		—		—
Materials and supplies	340		299		181		152		130		122
Total	$	519	$	482	$	182	$	153	$	283	$	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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Sempra	$	166	$	128	$	466	$	311
SDG&E	27		28		80		90
SoCalGas	25		20		75		55

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 September 30, 2024 and 2023
Sempra:
Balance at June 30, 2024	$	(49)	$	35	$	(107)	$	(121)
OCI before reclassifications	(12)		(49)		—		(61)
Amounts reclassified from AOCI	—		(5)		2		(3)
Net OCI	(12)		(54)		2		(64)
Balance at September 30, 2024	$	(61)	$	(19)	$	(105)	$	(185)
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)
SDG&E:
Balance at June 30, 2024 and September 30, 2024					$	(8)	$	(8)
Balance at June 30, 2023 and September 30, 2023					$	(7)	$	(7)
SoCalGas:
Balance at June 30, 2024 and September 30, 2024			$	(10)	$	(11)	$	(21)
Balance at June 30, 2023 and September 30, 2023			$	(11)	$	(11)	$	(22)

(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 in 2023, which we discuss in Note 9 in “Noncontrolling Interests – SI Partners Subsidiaries.” 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, 2024 and 2023
Sempra:
Balance at December 31, 2023	$	(36)	$	3	$	(117)	$	(150)
OCI before reclassifications	(25)		(1)		1		(25)
Amounts reclassified from AOCI	—		(21)		11		(10)
Net OCI	(25)		(22)		12		(35)
Balance at September 30, 2024	$	(61)	$	(19)	$	(105)	$	(185)
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)
SDG&E:
Balance at December 31, 2023 and September 30, 2024					$	(8)	$	(8)
Balance at December 31, 2022 and September 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 September 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 September 30, 2023			$	(11)	$	(11)	$	(22)

(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 in 2023, which we discuss in Note 9 in “Noncontrolling Interests – SI Partners Subsidiaries.” This transaction did not impact the Condensed Consolidated Statement of Comprehensive Income (Loss).

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 September 30,
	2024		2023
Sempra:
Financial instruments:
Interest rate instruments	$	(3)	$	1	Interest expense
Interest rate instruments	(5)		(12)		Equity earnings(1)
Foreign exchange instruments	(1)		(1)		Other income, net
Foreign exchange instruments	(1)		(1)		Equity earnings(1)
Total, before income tax	(10)		(13)
	3		2		Income tax benefit (expense)
Total, net of income tax	(7)		(11)
	2		6		Earnings attributable to noncontrolling interests
Total, net of income tax and after NCI	$	(5)	$	(5)
Pension and PBOP(2):
Amortization of actuarial loss	$	2	$	1	Other income, net
Amortization of prior service cost	1		1		Other income, net
Total, before income tax	3		2
	(1)		(1)		Income tax benefit (expense)
Total, net of income tax	$	2	$	1
Total reclassifications for the period, net of income  tax and after NCI	$	(3)	$	(4)

(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
	Nine months ended September 30,
	2024		2023
Sempra:
Financial instruments:
Interest rate instruments	$	(9)	$	1	Interest expense
Interest rate instruments	(20)		(33)		Equity earnings(1)
Foreign exchange instruments	(5)		—		Revenues: Energy-related businesses
	(2)		1		Other income, net
Foreign exchange instruments	(5)		1		Equity earnings(1)
Interest rate and foreign exchange instruments	—		(1)		Interest expense
	—		(6)		Other income, net
Total, before income tax	(41)		(37)
	9		5		Income tax benefit (expense)
Total, net of income tax	(32)		(32)
	11		18		Earnings attributable to noncontrolling interests
Total, net of income tax and after NCI	$	(21)	$	(14)
Pension and PBOP(2):
Amortization of actuarial loss	$	5	$	2	Other income, net
Amortization of prior service cost	2		2		Other income, net
Settlement charges	9		—		Other income, net
Total, before income tax	16		4
	(5)		(1)		Income tax benefit (expense)
Total, net of income tax	$	11	$	3
Total reclassifications for the period, net of income  tax and after NCI	$	(10)	$	(11)
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

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 Other Income, Net.

NET PERIODIC BENEFIT COST
(Dollars in millions)
	Pension				PBOP
	Three months ended September 30,
	2024		2023		2024		2023
Sempra:
Service cost	$	34	$	25	$	4	$	3
Interest cost	41		39		9		9
Expected return on assets	(40)		(42)		(19)		(17)
Amortization of:
Prior service cost (credit)	1		2		(1)		(1)
Actuarial loss (gain)	4		3		(4)		(5)
Net periodic benefit cost (credit)	40		27		(11)		(11)
Regulatory adjustments	20		30		10		10
Total expense (income) recognized	$	60	$	57	$	(1)	$	(1)
SDG&E:
Service cost	$	10	$	8	$	—	$	1
Interest cost	10		10		3		2
Expected return on assets	(10)		(9)		(3)		(2)
Amortization of:
Actuarial loss	3		2		—		—
Net periodic benefit cost	13		11		—		1
Regulatory adjustments	—		3		—		(1)
Total expense recognized	$	13	$	14	$	—	$	—
SoCalGas:
Service cost	$	21	$	15	$	3	$	2
Interest cost	26		24		7		7
Expected return on assets	(29)		(29)		(15)		(14)
Amortization of:
Prior service cost (credit)	1		1		(1)		(1)
Actuarial loss (gain)	1		1		(4)		(5)
Net periodic benefit cost (credit)	20		12		(10)		(11)
Regulatory adjustments	20		27		10		11
Total expense recognized	$	40	$	39	$	—	$	—

NET PERIODIC BENEFIT COST (CONTINUED)
(Dollars in millions)
	Pension				PBOP
	Nine months ended September 30,
	2024		2023		2024		2023
Sempra:
Service cost	$	99	$	82	$	11	$	10
Interest cost	124		118		27		28
Expected return on assets	(131)		(127)		(53)		(52)
Amortization of:
Prior service cost (credit)	4		4		(2)		(2)
Actuarial loss (gain)	10		7		(12)		(17)
Settlement charges	9		—		—		—
Net periodic benefit cost (credit)	115		84		(29)		(33)
Regulatory adjustments	21		88		28		32
Total expense (income) recognized	$	136	$	172	$	(1)	$	(1)
SDG&E:
Service cost	$	29	$	24	$	2	$	2
Interest cost	32		30		6		6
Expected return on assets	(33)		(29)		(7)		(6)
Amortization of:
Actuarial loss (gain)	6		4		(1)		(1)
Net periodic benefit cost	34		29		—		1
Regulatory adjustments	(7)		11		—		(1)
Total expense recognized	$	27	$	40	$	—	$	—
SoCalGas:
Service cost	$	59	$	49	$	8	$	7
Interest cost	78		75		21		21
Expected return on assets	(90)		(89)		(45)		(44)
Amortization of:
Prior service cost (credit)	3		3		(2)		(2)
Actuarial loss (gain)	1		1		(10)		(15)
Net periodic benefit cost (credit)	51		39		(28)		(33)
Regulatory adjustments	28		77		28		33
Total expense recognized	$	79	$	116	$	—	$	—

Schedule of Other Nonoperating Income (Expense)

Other Income, Net, consists of the following:

OTHER INCOME (EXPENSE), NET
(Dollars in millions)
	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Sempra:
Allowance for equity funds used during construction	$	39	$	35	$	114	$	105
Investment gains (losses), net(1)	29		(19)		48		(2)
Gains on interest rate and foreign exchange instruments, net	1		1		2		5
Foreign currency transaction (losses) gains, net	(5)		(3)		(6)		1
Non-service components of net periodic benefit cost	(21)		(28)		(25)		(79)
Interest on regulatory balancing accounts, net	26		19		68		56
Sundry, net	(4)		(2)		(7)		(11)
Total	$	65	$	3	$	194	$	75
SDG&E:
Allowance for equity funds used during construction	$	21	$	21	$	60	$	67
Non-service components of net periodic benefit cost	(3)		(5)		4		(14)
Interest on regulatory balancing accounts, net	12		10		30		31
Sundry, net	—		(1)		(8)		(9)
Total	$	30	$	25	$	86	$	75
SoCalGas:
Allowance for equity funds used during construction	$	18	$	14	$	54	$	38
Non-service components of net periodic benefit cost	(16)		(22)		(12)		(60)
Interest on regulatory balancing accounts, net	14		9		38		25
Sundry, net	(3)		(3)		(7)		(12)
Total	$	13	$	(2)	$	73	$	(9)

(1)    Represents net investment gains (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.

Schedule of Effective Income Tax Rate Reconciliation

We provide our calculations of ETRs in the following table.

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Sempra:
Income tax (benefit) expense	$	(105)		$	(52)		$	(63)		$	499
Income before income taxes and equity earnings	$	200		$	323		$	1,213		$	2,175
Equity earnings, before income tax(1)	132			133			426			418
Pretax income	$	332		$	456		$	1,639		$	2,593
Effective income tax rate	(32)		%	(11)		%	(4)		%	19		%
SDG&E:
Income tax expense (benefit)	$	15		$	(15)		$	89		$	(4)
Income before income taxes	$	276		$	259		$	759		$	712
Effective income tax rate	5		%	(6)		%	12		%	(1)		%
SoCalGas:
Income tax (benefit) expense	$	(52)		$	(5)		$	1		$	68
(Loss) income before income taxes	$	(66)		$	11		$	477		$	600
Effective income tax rate	79		%	(45)		%	—		%	11		%

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