Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 426

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 426
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reciation5 5 5 Nondeductible expenditures— — 2 State income taxes, net of federal income tax benefit(1)(2)2 Amortization of excess deferred income taxes(1)(2)(2)Allowance for equity funds used during construction(2)(1)(2)Self-developed software expenditures(2)(2)— Resolution of prior years’ income tax items(3)(6)— Repairs expenditures(14)(14)(6)Other, net— — (1)Effective income tax rate3 %(1)%19 %(1)    Due to fluctuation of the Mexican peso against the U.S. dollar. We record income tax expense (benefit) from the transactional effects of foreign currency and inflation because of appreciation (depreciation) of the Mexican peso.(2)    Related to operations in Mexico.

We expect to repatriate approximately $3.1 billion of foreign undistributed earnings in the foreseeable future, and have accrued $100 million of U.S. state deferred income tax liability at December 31, 2024. We repatriated approximately $100 million and $108 million to the U.S. in 2024 and 2023, respectively. 

2024 Form 10-K  |  F-75

In the year ended December 31, 2022, we recognized income tax expense of $120 million for a deferred income tax liability related to outside basis differences in our foreign subsidiaries that we had previously considered to be indefinitely reinvested. We have not recorded deferred income taxes with respect to remaining basis differences of approximately $700 million between financial statement and income tax investment amounts in our non-U.S. subsidiaries because we consider them to be indefinitely reinvested as of December 31, 2024. The remaining basis differences are calculated pursuant to U.S. federal tax law, which may differ from tax law in California and foreign jurisdictions. It is currently not practicable to determine the hypothetical amount of tax that might be payable if the underlying basis differences were realized.

The table below presents the geographic location of pretax income.PRETAX INCOME BY GEOGRAPHIC LOCATION(Dollars in millions) Years ended December 31, 202420232022Sempra:U.S.$2,354 $2,678 $1,449 Non-U.S.359 582 560 Total(1)$2,713 $3,260