Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 394

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 394
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 SDG&E’s contract liabilities are presented below. There were no contract liabilities at SoCalGas in 2024, 2023 or 2022.CONTRACT LIABILITIES(Dollars in millions)202420232022Sempra:Contract liabilities at January 1$(198)$(252)(278)Revenue from performance obligations satisfied during reporting period11 14 131 Payments received in advance(7)(21)(105)Contract modification(2)61 — Contract liabilities at December 31(1)$(196)$(198)$(252)SDG&E:Contract liabilities at January 1$(75)$(79)$(83)Revenue from performance obligations satisfied during reporting period3 4 4 Contract liabilities at December 31(2)$(72)$(75)$(79)(1)     Balances at December 31, 2024 and 2023 include $105 and $5, respectively, in Other Current Liabilities and $91 and $193, respectively, in Deferred Credits and Other.(2)     Balances at December 31, 2024 and 2023 include $4 and $3, respectively, in Other Current Liabilities and $68 and $72, respectively, in Deferred Credits and Other. Sempra Infrastructure previously recorded a contract liability for funds held as collateral in lieu of a customer’s letters of credit primarily associated with its LNG storage and regasification agreement. In December 2024, Sempra Infrastructure and the customer agreed to modify their LNG storage and regasification agreement by reducing the remaining term of the agreement from approximately three years to one year, now expiring in December 2025. As a result of the modification, Sempra Infrastructure will recognize approximately $107 million, which the customer paid in advance, in revenue over the remaining one-year term. The net effect to our contract liabilities is reflected in “contract modification” in the table above.As we discuss in Note 1 in “Property, Plant and Equipment,” Sempra Infrastructure and the CFE have agreed to an amendment to their transportation services agreement for the Guaymas-El Oro segment of the Sonora pipeline. Sempra Infrastructure determined that the amended transportation services agreement met the definition of a lease. In December 2023, Sempra reclassified $61 million from contract liabilities to other noncurrent liabilities, both within Deferred Credits and Other on Sempra’s Consolidated Balance Sheet.

2024 Form 10-K  |  F-54

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