Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 424

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 424
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 from the January 2025 issuance and the expected net proceeds from the April 2025 issuance were or will be used to pay transaction fees and repay borrowings under the existing Port Arthur LNG term loan facility. The senior secured notes mature in December 2042 and the January 2025 and April 2025 issuances bear interest at the rate of 6.27% and 6.32% per annum, respectively.

2024 Form 10-K  |  F-73

NOTE 7. INCOME TAXES

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, 202420232022Sempra:Income tax expense$219 $490 $556 Income before income taxes and equity earnings$2,110 $2,627 $1,343 Equity earnings, before income tax(1)603 633 666 Pretax income$2,713 $3,260 $2,009 Effective income tax rate8 %15 %28 %SDG&E:Income tax expense (benefit)$153 $(26)$182 Income before income taxes$1,044 $910 $1,097 Effective income tax rate15 %(3)%17 %SoCalGas:Income tax expense (benefit)$31 $(5)$138 Income before income taxes$987 $807 $738 Effective income tax rate3 %(1)%19 %(1)    We discuss how we recognize equity earnings in Note 5.For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. Items subject to flow-through treatment include:▪repairs expenditures related to certain utility plant fixed assets▪the equity component of AFUDC, which is non-taxable▪cost of