Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 460

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 460
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 applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization.For Sempra, the total fair value of this group of derivative instruments in a liability position at December 31, 2024 and 2023 was $122 million and $215 million, respectively. For SoCalGas, the total fair value of this group of derivative instruments in a liability position at December 31, 2024 and 2023 was $42 million and $210 million, respectively. SDG&E had a negligible amount of derivative instruments in a liability position at December 31, 2024 and no such instruments at December 31, 2023. At December 31, 2024, if the credit ratings of Sempra or SoCalGas were reduced below investment grade, $120 million and $42 million, respectively, of additional assets could be required to be posted as collateral for these derivative contracts.For Sempra, SDG&E and SoCalGas, some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to request adequate assurance of our performance under the contracts. Such additional assurance, if needed, is not material and is not included in the amounts above.

2024 Form 10-K  |  F-105

NOTE 10. FAIR VALUE MEASUREMENTS

RECURRING FAIR VALUE MEASURESThe tables below set forth our financial assets and liabilities, by level within the fair value hierarchy, that were accounted for at fair value on a recurring basis at December 31, 2024 and 2023. We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair-valued assets and liabilities and their placement within the fair value hierarchy.The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests).Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following:▪N