Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 264

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 264
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 of $4 million, which are net of income tax expense, that are currently recorded in AOCI (with net gains of $3 million attributable to NCI) related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. SoCalGas expects that $1 million of losses, net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates and foreign currency rates in effect when derivative contracts mature.At June 30, 2025, the maximum length of time over which Sempra is hedging its exposure to the variability in future cash flows for forecasted transactions, excluding those forecasted transactions related to the payment of variable interest on existing financial instruments, is approximately one year.

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The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.UNDESIGNATED DERIVATIVE IMPACTS(Dollars in millions)  Pretax gain (loss) on derivatives recognized in earnings  Three months ended June 30,Six months ended June 30, Location2025202420252024Sempra:     Commodity contracts not subjectto rate recoveryRevenues: Energy-relatedbusinesses$33 $41 $39 $120 Commodity contracts not subjectto rate recoveryEnergy-related businessescost of sales(2)— (2)— Commodity contracts subjectto rate recoveryCost of natural gas(4)(21)(20)(27)Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power1 4 4 (19)Interest rate instrumentsInterest expense9 — (56)— Total $37 $24 $(35)$74 SDG&E:     Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power$1 $4 $4 $(19)SoCalGas:     Commodity contracts subjectto rate recoveryCost of natural gas$(4)$(21)$(20)$(27)CREDIT RISK RELATED CONTINGENT FEATURESFor Sempra, SDG&E and SoCalGas, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit