Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 33

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 33
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31 $23 $71 $56 SoCalGas: Allowance for equity funds used during construction$18 $19 $36 $36 Non-service components of net periodic benefit cost(23)(17)(6)4 Interest on regulatory balancing accounts, net5 13 15 24 Sundry, net(2)(2)(5)(4)Total$(2)$13 $40 $60 (1)    Represents net investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Condensed Consolidated Statements of Operations.

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Table of Contents

INCOME TAXESWe provide our calculations of ETRs in the following table.INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES(Dollars in millions)Three months ended June 30,Six months ended June 30,2025202420252024Sempra:Income tax expense (benefit)$172 $(130)$229 $42 Income before income taxes and equity earnings$298 $308 $949 $1,013 Equity earnings, before income tax(1)169 160 310 294 Pretax income$467 $468 $1,259 $1,307 Effective income tax rate37 %(28)%18 %3 %SDG&E:Income tax expense$7 $34 $21 $74 Income before income taxes$182 $220 $477 $483 Effective income tax rate4 %15 %4 %15 %SoCalGas:Income tax expense$6 $10 $44 $53 Income before income taxes$91 $141 $572 $543 Effective income tax rate7 %7 %8 %10 %(1)    We discuss how we recognize equity earnings in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.Sempra, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted ETR anticipated for the full year. Unusual and infrequent items and items that cannot be reliably estimated are recorded in the interim period in which they occur, which can result in variability in the ETR. For SDG&E and SoCalGas,