Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 197

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 197
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 to higher non-service components of net periodic benefit cost. 

In the nine months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ other income, net, decreased by $36 million (49%) to $37 million primarily due to:

▪$22 million higher non-service components of net periodic benefit cost

▪$7 million reduction in regulatory interest from disallowed regulatory recovery of COVID-19 costs

▪$5 million lower net interest income on regulatory balancing accounts

115

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Three months ended September 30,Nine months ended September 30, 2025202420252024SoCalGas:Income tax (benefit) expense$(95)$(52)$(51)$1 (Loss) income before income taxes$(49)$(66)$523 $477 Effective income tax rate194 %79 %(10)%— %

In the three months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ income tax benefit increased by $43 million primarily due to:

▪higher income tax benefit from flow-through items, including $47 million income tax benefit in 2025 from the election to accelerate self-developed software deductions, which we discuss in Note 1 of the Notes to Condensed Consolidated Financial Statements 

Offset by:

▪$19 million lower income tax benefit from the resolution of prior year income tax items, including benefits that are flowed to customers and recorded as a regulatory liability

In the nine months ended September 30, 2025 compared to the same period in 2024, SoCalGas had an income tax benefit in 2025 compared to an income tax expense in 2024 primarily due to:

▪higher income tax benefit from flow-through items, including $47 million income tax benefit in 2025 from the election to accelerate self-developed software deductions 

Offset by:

▪$19 million lower income tax benefit from the resolution of prior year income tax items, including benefits that are flowed to customers and recorded as a regulatory liability

116

CAPITAL RESOURCES AND LIQUIDITY

OVERVIEW

Sempra

Capital Recycling Program

We regularly review our portfolio of assets with a view toward allocating capital to the businesses we believe can further improve shareholder value. Following a comprehensive strategic review of our