Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 455

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 455
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 December 31, 2024, Port Arthur LNG voluntarily de-designated the remaining interest rate swaps, which are currently hedging interest payments until March 2026. At the time of de-designation, $37 million of deferred gains related to the de-designated notional amount were included in AOCI, which will remain in AOCI until either the hedged interest payments impact net income or such hedged interest payments become probable of not occurring.The following table presents the notional amounts of our interest rate derivatives, excluding those in our equity method investments.INTEREST RATE DERIVATIVES(Dollars in millions)December 31, 2024December 31, 2023 Notional amountMaturitiesNotional amountMaturitiesSempra:    Cash flow hedges(1)$271 2025-2034$4,451 2024-2048Undesignated derivatives3,189 2025-2048— — (1)    At December 31, 2024 and 2023, cash flow hedges accrued interest based on a notional amount of $271 and $488, respectively.FOREIGN CURRENCY DERIVATIVESWe may utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican fixed interest rates for U.S. fixed interest rates. From time to time, Sempra Infrastructure and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar.In May 2024, Oncor entered into cross-currency swaps designated as fair value hedges intended to offset foreign currency exchange rate risk related to its Euro-denominated debt.We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We may utilize foreign currency derivatives as a means to manage the risk of exposure to