Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 481

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 481
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 Sempra’s share-based awards was comprised as follows:SHARE-BASED COMPENSATION EXPENSE(Dollars in millions) Years ended December 31, 202420232022Sempra:Share-based compensation expense, before income taxes(1)$77 $71 $61 Income tax benefit(1)(9)(9)(17)$68 $62 $44 Capitalized share-based compensation cost$13 $12 $11 Excess income tax (benefit) deficiency(9)(6)(3)SDG&E:Share-based compensation expense, before income taxes$12 $13 $11 Income tax benefit(2)(2)(3)$10 $11 $8 Capitalized share-based compensation cost$7 $7 $6 Excess income tax (benefit) deficiency(1)(1)— SoCalGas:Share-based compensation expense, before income taxes$20 $18 $17 Income tax benefit(4)(3)(5)$16 $15 $12 Capitalized share-based compensation cost$6 $5 $5 Excess income tax (benefit) deficiency(2)(1)— (1)    Includes activity of awards issued from the IEnova 2013 LTIP, which settled in cash upon vesting based on the price of IEnova’s common stock.

2024 Form 10-K  |  F-119

SEMPRA NONQUALIFIED STOCK OPTIONSWe use a Black-Scholes option-pricing model to estimate the fair value of each nonqualified stock option grant. The use of a valuation model requires us to make certain assumptions about selected model inputs. Expected volatility is calculated based on a blend of the historical and implied volatility of Sempra’s common stock price. The average expected term for options is based on the vesting schedule, contractual term of the option, expected employee exercise and post-termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term estimated at the date of the grant. In 2024, 2023 and 2022, Sempra’s board of directors granted 414,812, 326,574 and 439,796 nonqualified stock options, respectively, that become exercisable over a three-year period. The weighted-average per-share fair value for options granted was $16.43, $17.50 and $10.99 in