Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 50

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 50
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 assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs at SDG&E, as we discuss below in “Level 3 Information – SDG&E.” We further discuss derivative assets and liabilities in Note 8.▪Rabbi Trust investments include short-term investments that consist of money market and mutual funds that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1).▪As we discuss in Note 12, in July 2020, Sempra entered into a Support Agreement for the benefit of CFIN. We measure the Support Agreement, which includes a guarantee obligation, a put option and a call option, net of related guarantee fees, at fair value on a recurring basis. We use a discounted cash flow model to value the Support Agreement, net of related guarantee fees. Because some of the inputs that are significant to the valuation are less observable, the Support Agreement is classified as Level 3, as we describe below in “Level 3 Information – Other Sempra.”

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Table of Contents

RECURRING FAIR VALUE MEASURES(Dollars in millions)Level 1Level 2Level 3Netting(1)TotalFair value at March 31, 2025Sempra:Assets:    Nuclear decommissioning trusts:    Short-term investments, primarily cash equivalents$16 $2 $— $18 Equity securities277 3 — 280 Debt securities:    Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies35 26 — 61 Municipal bonds— 288 — 288 Other securities— 236 — 236 Total debt securities35 550 — 585 Total nuclear decommissioning trusts(2)328 555 — 883 Short-term investments held in Rabbi Trust46 —