Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 274

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 274
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 Partners. Sempra Services Corporation employs U.S. employees performing services for SI Partners and is a participating employer in Sempra’s noncontributory defined benefit pension and PBOP plans. Upon closing the sale, which we expect to occur in the second or third quarter of 2026, Sempra Services Corporation will cease to be a participating employer in Sempra’s pension and PBOP plans. This will result in a partial termination of Sempra’s pension plan due to a reduction in the number of active participants by more than 20%. All impacted participants will be fully vested in their pension benefits as of the termination date. We expect to recognize the financial statement impact, which is currently probable but not estimable, including adjustments to pension and PBOP liabilities, AOCI, curtailment and special termination benefit accounting at the close of the sale. The financial impact for settlement accounting will be recognized when the lump sum payout crosses the annual settlement threshold. 

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Net Periodic Benefit CostThe following tables provide the components of net periodic benefit cost. The components of net periodic benefit cost, other than the service cost component, are included in Other Income, Net.NET PERIODIC BENEFIT COST(Dollars in millions)PensionPBOP Three months ended September 30, 2025202420252024Sempra:Service cost$32 $34 $3 $4 Interest cost42 41 10 9 Expected return on assets(41)(40)(17)(19)Amortization of:    Prior service cost (credit)1 1 (1)(1)Actuarial loss (gain)3 4 (3)(4)Settlement charges12 — — — Net periodic benefit cost (credit)49 40 (8)(11)Regulatory adjustments26 20 8 10 Total expense (income) recognized$75 $60 $— $(1)SDG&E:Service cost$10 $10 $— $— Interest cost11 10 2 3 Expected return on assets(11)(10)(2)(3)Amortization of:Actuarial loss 1 3 — — Net periodic benefit cost 11 13 — — Regulatory adjustments2 — — — Total expense recognized$13 $13 $— $— SoCalGas:Service cost$19 $21 $2 $