Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 70

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 70
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10 SoCalGas:Cash flow hedges:Interest rate instruments$— $— Interest expense$(1)$—  Nine months ended September 30, Nine months ended September 30, 20252024Location20252024Sempra:     Cash flow hedges:Interest rate instruments$(4)$5 Interest expense$6 $9 Interest rate instruments(39)(8)Equity earnings(1)10 20 Foreign exchange instruments(11)14 Revenues: Energy-related businesses(3)5 Other income, net(2)2 Foreign exchange instruments(10)12 Equity earnings(1)(4)5 Fair value hedges:Foreign exchange instruments(30)(10)Equity earnings(1)— — Total$(94)$13  $7 $41 SoCalGas:Cash flow hedges:Interest rate instruments$— $— Interest expense$(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