Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 309

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 309
---
 rate instruments$— $— Interest expense$(1)$(1)(1)    Equity earnings at Oncor Holdings and our foreign equity method investees are recognized after tax.For Sempra, we expect that net gains before NCI 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 September 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.

69

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 (loss) gain on derivatives recognized in earnings  Three months ended September 30,Nine months ended September 30, Location2025202420252024Sempra:     Commodity contracts notsubject to rate recoveryRevenues: Energy-relatedbusinesses$(35)$98 $4 $218 Commodity contracts notsubject to rate recoveryEnergy-related businessescost of sales1 — (1)— Commodity contracts subjectto rate recoveryCost of natural gas(91)(16)(111)(43)Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power(7)(10)(3)(29)Interest rate instrumentsInterest expense(2)— (58)— Total $(134)$72 $(169)$146 SDG&E:     Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power$(7)$(10)$(3)$(29)SoCalGas:     Commodity contracts subjectto rate recoveryCost of natural gas$(91)$(16)$(111)$(43)CREDIT RISK RELATED CONTINGENT FEATURESFor Sem