Company: SREA
Filing Date: 2025-06-11
Form Type: 11-K
Source: 0001032208-25-000035
Chunk: 25

Company: SEMPRA
Filing Date: 2025-06-11
Form: 11-K
Chunk 25
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#### Basis of Accounting
— The accompanying financial statements have been prepared in accordance with U.S. GAAP.

#### Use of Estimates
— The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

#### Risks and Uncertainties
— As discussed in Notes 1 and 4, the Plan invests in various investment instruments in the Master Trust. Investments, in general, are exposed to various risks and uncertainties, such as interest rate risk, credit risk, and market risk. Market risks include global events which could impact the value of investments, such as a pandemic or international conflict. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of investments will occur in the near-term and that such changes could materially affect the value of the participants’ account balances and the amounts reported in the financial statements.

#### Investment Valuation and Income/Loss Recognition
— The Plan’s investment consists of an interest in the Master Trust. The Plan’s interest in the Master Trust is presented at fair value, which has been determined based on the fair value of the underlying investments of the Master Trust. See Note 5 for discussion of fair value measurements.

Investment income related to the Plan’s interest in the Master Trust is presented in Net investment gain – Plan interest in Master Trust in the Statement of Changes in Net Assets Available for Benefits and consists of net appreciation (depreciation) in the fair value of investments and dividend income. Net appreciation (depreciation) includes realized gains and losses on investments sold during the year and unrealized gains and losses on investments held as of year-end. Purchases and sales of investments are recorded on a trade-date basis. Dividend income is recorded on the ex-dividend date.

#### Concentrations of Investments
— Included in the Plan’s investment held in the Master Trust at December 31, 2024 and 2023, are shares of Sempra common stock with a fair value of $430,893,000 and $393,621,000, respectively. This investment represents 20.54% and 21.37% of the Plan’s investment at December 31, 2024 and 2023, respectively. A significant decline in the market value of Sempra common stock would significantly affect the Plan’s net assets available