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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
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)
 Years ended December 31,
 202420232022
Sempra:
Income tax expense$219 $490 $556 
Income before income taxes and equity earnings$2,110 $2,627 $1,343 
Equity earnings, before income tax(1)
603 633 666 
Pretax income$2,713 $3,260 $2,009 
Effective income tax rate8 %15 %28 %
SDG&E:
Income tax expense (benefit)$153 $(26)$182 
Income before income taxes$1,044 $910 $1,097 
Effective income tax rate15 %(3)%17 %
SoCalGas:
Income tax expense (benefit)$31 $(5)$138 
Income before income taxes$987 $807 $738 
Effective income tax rate3 %(1)%19 %
(1)    We discuss how we recognize equity earnings in Note 5.
We present in the table below reconciliations of net U.S. statutory federal income tax rates to our ETRs.
RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES
 Years ended December 31,
 202420232022
Sempra:
U.S. federal statutory income tax rate21 %21 %21 %
Valuation allowances14 — (2)
Utility depreciation4 3 4 
Non-U.S. earnings taxed at rates different from the U.S. statutory income tax rate(2)
1 1 3 
State income taxes, net of federal income tax benefit1 1 1 
Outside basis differences— — 6 
Remeasurement of deferred taxes— (1)(3)
Tax credits(1)(5)(1)
Utility self-developed software expenditures(1)(1)— 
Allowance for equity funds used during construction(1)(1)(1)
Amortization of excess deferred income taxes(1)(1)(2)
Resolution of prior years’ income tax items(2)(2)(2)
Noncontrolling interests(3)(3)— 
Utility repairs expenditures(8)(6)(5)
Foreign exchange and inflation effects(1)
(14)9 9 
Other, net(2)— — 
Effective income tax rate8 %15 %28 %
SDG&E:
U.S. federal statutory income tax rate21 %21 %21 %
Depreciation5 5 3 
State income taxes, net of federal income tax benefit3 2 4 
Self-developed software expenditures(1)(1)— 
Resolution of prior years’ income tax items(1)(1)(2)
Amortization of excess deferred income taxes(1)(2)(2)
Allowance for equity funds used during construction(1)(2)(2)
Tax credits(1)(16)— 
Repairs expenditures(9)(8)(5)
Other, net— (1)— 
Effective income tax rate15 %(3)%17 %
SoCalGas:
U.S. federal statutory income tax rate21 %21 %21 %
Depreciation5 5 5 
Nondeductible expenditures— — 2 
State income taxes, net of federal income tax benefit(1)(2)2 
Amortization of excess deferred income taxes(1)(2)(2)
Allowance for equity funds used during construction(2)(1)(2)
Self-developed software expenditures(2)(2)— 
Resolution of prior years’ income tax items(3)(6)— 
Repairs expenditures(14)(14)(6)
Other, net— — (1)
Effective income tax rate3 %(1)%19 %
(1)    Due to fluctuation of the Mexican peso against the U.S. dollar. We record income tax expense (benefit) from the transactional effects of foreign currency and inflation because of appreciation (depreciation) of the Mexican peso.
(2)    Related to operations in Mexico.
Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries
The table below presents the geographic location of pretax income.
PRETAX INCOME BY GEOGRAPHIC LOCATION
(Dollars in millions)
 Years ended December 31,
 202420232022
Sempra:
U.S.$2,354 $2,678 $1,449 
Non-U.S.359 582 560 
Total(1)
$2,713 $3,260 $2,009 
(1)    See the Income Tax Expense (Benefit) and Effective Income Tax Rates table above for the calculation of pretax income.
Schedule Of Components Of Income Tax Expense
The components of income tax expense are as follows.
INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
 Years ended December 31,
 202420232022
Sempra:
Current:
U.S. federal$73 $102 $— 
U.S. state(4)3 (1)
Non-U.S.179 208 165 
Total248 313 164 
Deferred:
U.S. federal366 (56)248 
U.S. state28 18 50 
Non-U.S.(422)225 94 
Total(1)
(28)187 392 
Deferred investment tax credits(1)(10)— 
Total income tax expense$219 $490 $556 
SDG&E:
Current:
U.S. federal$(16)$(156)$76 
U.S. state— (5)13 
Total(16)(161)89 
Deferred:
U.S. federal129 111 54 
U.S. state41 35 38 
Total170 146 92 
Deferred investment tax credits(1)(11)1 
Total income tax expense (benefit)$153 $(26)$182 
SoCalGas:
Current:
U.S. federal$3 $(6)$(5)
U.S. state— (11)(3)
Total3 (17)(8)
Deferred:
U.S. federal45 22 125 
U.S. state(16)(11)22 
Total29 11 147 
Deferred investment tax credits(1)1 (1)
Total income tax expense (benefit)$31 $(5)$138 
(1)    In 2024 and 2023, Deferred Income Taxes and Investment Tax Credits on the Sempra Consolidated Statements of Cash Flows also includes $9 and $72, respectively, of income taxes included in equity earnings, which are recorded net of income tax under a tax sharing agreement with Oncor.
Schedule Of Components Of Deferred Tax Assets And Liabilities
The tables below present the components of deferred income taxes:
DEFERRED INCOME TAXES
(Dollars in millions)
 December 31,
 20242023
Sempra:
Deferred income tax liabilities:
Differences in financial and tax bases of fixed assets, investments and other assets(1)
$7,164 $6,875 
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings79 55 
Regulatory balancing accounts850 727 
Right-of-use assets – operating leases325 211 
Property taxes74 68 
Postretirement benefits150 47 
Other deferred income tax liabilities94 68 
Total deferred income tax liabilities8,736 8,051 
Deferred income tax assets:
Tax credits1,485 1,468 
Net operating losses1,105 982 
Compensation-related items225 157 
Operating lease liabilities301 179 
Other deferred income tax assets219 96 
Bad debt allowance151 144 
Accrued expenses not yet deductible80 89 
Deferred income tax assets before valuation allowances3,566 3,115 
Less: valuation allowances503 189 
Total deferred income tax assets3,063 2,926 
Net deferred income tax liability(2)
$5,673 $5,125 
(1)    In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries.
(2)    At December 31, 2024 and 2023, includes $172 and $129, respectively, recorded as a noncurrent asset and $5,845 and $5,254, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.

DEFERRED INCOME TAXES
(Dollars in millions)
 SDG&ESoCalGas
 December 31,
 2024202320242023
Deferred income tax liabilities:
Differences in financial and tax bases of utility plant and other assets$2,805 $2,641 $2,594 $2,272 
Regulatory balancing accounts545 418 306 309 
Right-of-use assets – operating leases222 103 5 8 
Property taxes47 43 27 25 
Postretirement benefits— — 124 71 
Other deferred income tax liabilities— — 2 4 
Total deferred income tax liabilities3,619 3,205 3,058 2,689 
Deferred income tax assets:
Tax credits8 7 2 7 
Compensation-related items8 9 26 31 
Operating lease liabilities222 103 5 8 
Bad debt allowance29 37 72 86 
Accrued expenses not yet deductible10 11 54 56 
Net operating losses122 146 874 890 
Other deferred income tax assets9 19 20 25 
Total deferred income tax assets408 332 1,053 1,103 
Net deferred income tax liability$3,211 $2,873 $2,005 $1,586 
Summary of Tax Credit Carryforwards
The following table summarizes our unused NOLs and tax credit carryforwards.
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
Unused amount at December 31, 2024Year expiration begins
Sempra:
U.S. federal:
NOLs(1)
$3,091 2037
General business tax credits(1)
126 2043
Corporate alternative minimum tax credits(1)
676 Indefinite
Foreign tax credits(2)
706 2025
U.S. state:
NOLs(2)
5,912 2027
General business tax credits(1)
24 2027
Non-U.S.(2):
NOLs782 2025
Foreign tax credits5 Indefinite
SDG&E:
U.S. federal(1):
NOLs$279 Indefinite
General business tax credits1 2044
U.S. state NOLs(1)
909 2043
SoCalGas:
U.S. federal NOLs(1)
$2,857 Indefinite
U.S. state NOLs(1)
3,917 2042
(1)    We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.
(2)    We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as we discuss below.
Summary of Operating Loss Carryforwards
The following table summarizes our unused NOLs and tax credit carryforwards.
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
Unused amount at December 31, 2024Year expiration begins
Sempra:
U.S. federal:
NOLs(1)
$3,091 2037
General business tax credits(1)
126 2043
Corporate alternative minimum tax credits(1)
676 Indefinite
Foreign tax credits(2)
706 2025
U.S. state:
NOLs(2)
5,912 2027
General business tax credits(1)
24 2027
Non-U.S.(2):
NOLs782 2025
Foreign tax credits5 Indefinite
SDG&E:
U.S. federal(1):
NOLs$279 Indefinite
General business tax credits1 2044
U.S. state NOLs(1)
909 2043
SoCalGas:
U.S. federal NOLs(1)
$2,857 Indefinite
U.S. state NOLs(1)
3,917 2042
(1)    We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.
(2)    We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as we discuss below.
Summary of Valuation Allowance
The following table provides the valuation allowances that we recorded against a portion of our total deferred income tax assets shown above in the “Deferred Income Taxes – Sempra” table.
VALUATION ALLOWANCES BY JURISDICTION
(Dollars in millions)
December 31,
20242023
Sempra:
U.S. federal$406 $108 
U.S. state47 51 
Non-U.S. 50 30 
$503 $189 
Schedule of Unrecognized Tax Benefits Roll Forward
Following is a reconciliation of the changes in unrecognized income tax benefits and the potential effect on our ETR for the years ended December 31:
RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 202420232022
Sempra:
Balance at January 1$492 $278 $304 
Increase in prior period tax positions40 308 16 
Decrease in prior period tax positions(8)(63)(2)
Decrease in current period tax positions— (21)— 
Settlements with tax authorities(15)(16)(43)
Expiration of statutes of limitations— — (1)
Increase in current period tax positions39 6 4 
Balance at December 31$548 $492 $278 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate(1)
$(229)$(224)$(117)
increase the effective tax rate(1)
1 1 38 
SDG&E:
Balance at January 1$14 $14 $14 
Increase in prior period tax positions— 2 — 
Settlements with tax authorities— (2)— 
Balance at December 31$14 $14 $14 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate(1)
$(11)$(11)$(11)
increase the effective tax rate(1)
1 1 1 
SoCalGas:
Balance at January 1$29 $77 $72 
Increase in prior period tax positions— 1 1 
Decrease in prior period tax positions— (47)— 
Increase in current period tax positions— — 4 
Settlements with tax authorities— (2)— 
Balance at December 31$29 $29 $77 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate(1)
$(29)$(29)$(67)
increase the effective tax rate(1)
— — 37 
(1)    Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above.
Summary of Income Tax Contingencies
It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following:
POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
 December 31,
 202420232022
Sempra: 
Potential resolution of audit issues with various U.S. federal, state and local
and non-U.S. taxing authorities
$15 $242 $8 
SDG&E: 
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
$6 $6 $6 
SoCalGas: 
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
$2 $2 $2