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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
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,
 202520242023
Sempra:
Income tax expense$701 $219 $490 
Income before income taxes and equity earnings$1,169 $2,110 $2,627 
Equity earnings, before income tax(1)
620 603 633 
Pretax income$1,789 $2,713 $3,260 
Effective income tax rate39 %8 %15 %
SDG&E:
Income tax (benefit) expense$(128)$153 $(26)
Income before income taxes$435 $1,044 $910 
Effective income tax rate(29)%15 %(3)%
SoCalGas:
Income tax (benefit) expense$(38)$31 $(5)
Income before income taxes$828 $987 $807 
Effective income tax rate(5)%3 %(1)%
(1)    We discuss how we recognize equity earnings in Note 5.
We present in the table below reconciliations of the U.S. federal statutory income tax rate to our ETRs.
RECONCILIATION OF FEDERAL INCOME TAX RATE TO EFFECTIVE INCOME TAX RATES
(Dollars in millions)
 Years ended December 31,
 202520242023
Sempra:
U.S. federal statutory income tax rate$376 21 %$570 21 %$684 21 %
State income taxes, net of federal
income tax benefit(1)
204 11 23 1 6 — 
Foreign tax effects:
Mexico:
Rate differential40 2 32 1 50 2 
Foreign exchange and inflation246 14 (368)(14)290 9 
Outside basis difference142 8 12 1 — — 
Other(20)(1)— — (33)(1)
Tax credits:
Investment tax credits(100)(6)(17)(1)(144)(4)
Other(2)— — — (3)— 
Change in valuation allowances(266)(15)347 13 — — 
Nontaxable or nondeductible items(23)(1)(25)(1)(14)(1)
Changes in unrecognized tax benefits3 — 2 — (35)(1)
Regulatory tax effects(2)
(304)(17)(246)(9)(203)(6)
Noncontrolling interests(43)(2)(79)(3)(91)(3)
Other adjustments(15)(1)(32)(1)(17)(1)
SI Partners held for sale outside basis
differences
463 26 — — — — 
Effective income tax rate$701 39 %$219 8 %$490 15 %
SDG&E:
U.S. federal statutory income tax rate$91 21 %$219 21 %$191 21 %
State income taxes, net of federal
income tax benefit(3)
(12)(3)36 3 19 2 
Tax credits:
Investment tax credits(100)(23)(17)(1)(144)(16)
Other— — (1)— — — 
Nontaxable or nondeductible items(2)— (1)— (1)— 
Changes in unrecognized tax benefits(1)— — — — — 
Regulatory tax effects(2)
(105)(24)(84)(8)(89)(10)
Other adjustments1 — 1 — (2)— 
Effective income tax rate$(128)(29)%$153 15 %$(26)(3)%
SoCalGas:
U.S. federal statutory income tax rate$174 21 %$208 21 %$169 21 %
State income taxes, net of federal
income tax benefit(3)
(11)(2)(14)(1)(23)(3)
Tax credits(3)— (3)— (2)— 
Nontaxable or nondeductible items2 — 2 — 2 — 
Changes in unrecognized tax benefits(1)— — — (44)(6)
Regulatory tax effects(2)
(199)(24)(162)(17)(114)(14)
Other adjustments— — — — 71 
Effective income tax rate$(38)(5)%$31 3 %$(5)(1)%
(1)    State taxes in California and Louisiana made up the majority (greater than 50%) of the tax effect in this category.
(2)    Includes federal impacts of flow-through rate-making treatment.
(3)    State taxes in California made up substantially all the tax effect in this category.
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,
 202520242023
Sempra:
U.S.$1,353 $2,354 $2,678 
Foreign436 359 582 
Total(1)
$1,789 $2,713 $3,260 
(1)    See the Income Tax Expense (Benefit) and Effective Income Tax Rates table above for the calculation of pretax income.
Schedule Of Components Of Income Tax Expense
The components of income tax expense are as follows.
INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
 Years ended December 31,
 202520242023
Sempra:
Current:
U.S. federal$(18)$73 $102 
U.S. state38 (4)3 
Foreign126 179 208 
Total146 248 313 
Deferred:
U.S. federal(45)366 (56)
U.S. state230 28 18 
Foreign383 (422)225 
Total(1)
568 (28)187 
Deferred investment tax credits(1)
(13)(1)(10)
Total income tax expense$701 $219 $490 
SDG&E:
Current:
U.S. federal$4 $(16)$(156)
U.S. state13 — (5)
Total17 (16)(161)
Deferred:
U.S. federal(114)129 111 
U.S. state(19)41 35 
Total(133)170 146 
Deferred investment tax credits(12)(1)(11)
Total income tax (benefit) expense$(128)$153 $(26)
SoCalGas:
Current:
U.S. federal$18 $3 $(6)
U.S. state51 — (11)
Total69 3 (17)
Deferred:
U.S. federal(40)45 22 
U.S. state(66)(16)(11)
Total(106)29 11 
Deferred investment tax credits(1)(1)1 
Total income tax (benefit) expense$(38)$31 $(5)
(1)    In 2025, 2024 and 2023, Deferred Income Taxes and Investment Tax Credits on the Sempra Consolidated Statements of Cash Flows also includes $22, $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,
 20252024
Sempra(1):
Deferred income tax liabilities:
Differences in financial and tax bases of fixed assets, investments and other assets(2)
$7,691 $7,164 
U.S. and foreign tax on repatriation of foreign earnings— 79 
Regulatory balancing accounts637 850 
Right-of-use assets – operating leases357 325 
Property taxes— 74 
Postretirement benefits— 150 
Other deferred income tax liabilities446 94 
Total deferred income tax liabilities9,131 8,736 
Deferred income tax assets:
Tax credits1,564 1,485 
Net operating losses935 1,105 
Compensation-related items212 225 
Operating lease liabilities363 301 
Other deferred income tax assets173 219 
Bad debt allowance— 151 
Accrued expenses not yet deductible— 80 
Deferred income tax assets before valuation allowances3,247 3,566 
Less: valuation allowances233 503 
Total deferred income tax assets3,014 3,063 
Net deferred income tax liability(3)
$6,117 $5,673 
(1)    At December 31, 2025, excludes $894 of net deferred income tax liability, comprised of $982 of deferred income tax liabilities and $88 of deferred income tax assets, that is included in Liabilities Held for Sale on the Sempra Consolidated Balance Sheet.
(2)    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.
(3)    At December 31, 2025 and 2024, includes $10 and $172, respectively, recorded as a noncurrent asset and $6,127 and $5,845, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.
DEFERRED INCOME TAXES
(Dollars in millions)
 SDG&ESoCalGas
 December 31,
 2025202420252024
Deferred income tax liabilities:
Differences in financial and tax bases of utility plant and other assets$2,971 $2,805 $2,902 $2,594 
Regulatory balancing accounts478 545 158 306 
Right-of-use assets – operating leases293 222 19 5 
Property taxes53 47 31 27 
Postretirement benefits— — 173 124 
Other deferred income tax liabilities4 — — 2 
Total deferred income tax liabilities3,799 3,619 3,283 3,058 
Deferred income tax assets:
Tax credits98 8 2 2 
Compensation-related items— 8 — 26 
Operating lease liabilities293 222 19 5 
Bad debt allowance— 29 54 72 
Accrued expenses not yet deductible— 10 53 54 
Net operating losses77 122 799 874 
Other deferred income tax assets45 9 85 20 
Total deferred income tax assets513 408 1,012 1,053 
Net deferred income tax liability$3,286 $3,211 $2,271 $2,005 
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,
20252024
Sempra:
U.S. federal$137 $406 
U.S. state9647 
Foreign(1)
—50 
$233 $503 
(1)    At December 31, 2025, excludes $50 of valuation allowances that are included in Assets Held for Sale on the Sempra Consolidated Balance Sheet.
Schedule of Cash Flow, Supplemental Disclosures
The following table presents the amount of income taxes paid (net of refunds received) disaggregated by jurisdiction for the years ended December 31:
INCOME TAXES PAID (NET OF REFUNDS RECEIVED)
(Dollars in millions)
 202520242023
Sempra:
U.S. federal$62 $100 $3 
U.S. state:
California55 — — 
Texas28 26 24 
Other2 2 2 
Foreign:
Mexico226 161 168 
Other3 — — 
Income tax payments, net$376 $289 $197 
SDG&E(1):
U.S. federal$9 $(199)$40 
U.S. state – California14 (26)36 
Income tax payments (refunds), net$23 $(225)$76 
SoCalGas(1):
U.S. federal$20 $(11)$6 
U.S. state – California49 2 — 
Income tax payments (refunds), net$69 $(9)$6 
(1)    SDG&E and SoCalGas are included in the consolidated income tax return of Sempra, and their respective income tax payments are computed as an amount equal to that which would result from each company having filed a separate return.
Cash paid for amounts included in the measurement of lease liabilities and supplemental noncash information were as follows:
LESSEE INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
SempraSDG&ESoCalGas
Years ended December 31,
202520242023202520242023202520242023
Operating activities:
Cash paid for operating leases
$159 $112 $85 $114 $70 $46 $8 $12 $13 
Cash paid for finance leases
161 163 167 154 158 162 7 6 5 
Financing activities:
Cash paid for finance leases
69 66 60 43 42 40 26 24 20 
Increase in operating lease obligations for ROU assets
386 520 143 319474 134 60 — — 
Increase in finance lease obligations capitalized to PP&E47 41 57 14 14 17 33 27 40 
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, 2025Year expiration begins
Sempra:
U.S. federal:
NOLs(1)
$3,169 2037
General business tax credits(1)
260 2043
Corporate alternative minimum tax credits(1)
630 Indefinite
Foreign tax credits(2)
704 2026
U.S. state:
NOLs(2)
5,762 2027
General business tax credits(1)
20 2027
Foreign(2)(3):
NOLs693 2026
Foreign tax credits5 Indefinite
SDG&E:
U.S. federal(1):
NOLs$94 Indefinite
General business tax credits92 2045
U.S. state NOLs(1)
818 2046
SoCalGas:
U.S. federal NOLs(1)
$2,489 Indefinite
U.S. state NOLs(1)
3,952 2045
(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.
(3)    Deferred tax assets related to foreign NOLs and foreign tax credits are included within the disposal group that is classified as held for sale.
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, 2025Year expiration begins
Sempra:
U.S. federal:
NOLs(1)
$3,169 2037
General business tax credits(1)
260 2043
Corporate alternative minimum tax credits(1)
630 Indefinite
Foreign tax credits(2)
704 2026
U.S. state:
NOLs(2)
5,762 2027
General business tax credits(1)
20 2027
Foreign(2)(3):
NOLs693 2026
Foreign tax credits5 Indefinite
SDG&E:
U.S. federal(1):
NOLs$94 Indefinite
General business tax credits92 2045
U.S. state NOLs(1)
818 2046
SoCalGas:
U.S. federal NOLs(1)
$2,489 Indefinite
U.S. state NOLs(1)
3,952 2045
(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.
(3)    Deferred tax assets related to foreign NOLs and foreign tax credits are included within the disposal group that is classified as held for sale.
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)
 202520242023
Sempra:
Balance at January 1$548 $492 $278 
Increase in prior period tax positions19 40 308 
Decrease in prior period tax positions(28)(8)(63)
Decrease in current period tax positions— — (21)
Settlements with tax authorities(19)(15)(16)
Increase in current period tax positions81 39 6 
Balance at December 31(1)
$601 $548 $492 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate$(500)$(229)$(224)
increase the effective tax rate— 1 1 
SDG&E:
Balance at January 1$14 $14 $14 
Increase in prior period tax positions— — 2 
Settlements with tax authorities(6)— (2)
Balance at December 31$8 $14 $14 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate$(8)$(11)$(11)
increase the effective tax rate— 1 1 
SoCalGas:
Balance at January 1$29 $29 $77 
Increase in prior period tax positions— — 1 
Decrease in prior period tax positions— — (47)
Settlements with tax authorities(2)— (2)
Balance at December 31$27 $29 $29 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate$(27)$(29)$(29)
(1)    At December 31, 2025, includes $33 that is within the disposal group that is classified as held for sale.