Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 364

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 364
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 LOSSES(Dollars in millions) December 31, 20242023Sempra:  Accounts receivable – trade, net$447 $480 Accounts receivable – other, net53 52 Other long-term assets14 1 Total allowances for credit losses$514 $533 SDG&E:  Accounts receivable – trade, net$81 $116 Accounts receivable – other, net25 27 Other long-term assets8 1 Total allowances for credit losses$114 $144 SoCalGas:  Accounts receivable – trade, net$251 $306 Accounts receivable – other, net28 25 Other long-term assets6 — Total allowances for credit losses$285 $331 As we discuss below in “Note Receivable,” we have an interest-bearing promissory note due from KKR Pinnacle. On a quarterly basis, we evaluate credit losses and record allowances for expected credit losses on this note receivable, including compounded interest and unamortized transaction costs, based on published default rate studies, the maturity date of the instrument and an internally developed credit rating. At December 31, 2024 and 2023, $5 million and $6 million, respectively, of expected credit losses are included in Other Long-Term Assets on Sempra’s Consolidated Balance Sheets. As we discuss in Note 5, Sempra provided a guarantee for the benefit of Cameron LNG JV related to amounts withdrawn by Sempra Infrastructure from the SDSRA. On a quarterly basis, we evaluate credit losses and record liabilities for expected credit losses on this off-balance sheet arrangement based on external credit ratings, published default rate studies and the maturity date of the arrangement. At both December 31, 2024 and 2023, $5 million of expected credit losses are included in Deferred Credits and Other on Sempra’s Consolidated Balance Sheets.

2024 Form 10-K  |  F-32

CONCENTRATION OF CREDIT RISKCredit risk is the risk of loss that would be incurred as a result of nonperformance by our counterparties on their contractual obligations. We have policies governing the management of credit risk that are administered by the respective credit departments at each of the Registrants and overseen by their separate risk management committees.This oversight includes calculating current and potential credit risk on a regular basis and monitoring actual balances in comparison to approved limits. We establish credit limits based on risk and return considerations