Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 22

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 22
---
,” we have an interest-bearing promissory note due from KKR Pinnacle. On a quarterly basis, we evaluate credit losses and record allowances for expected credit losses on this note receivable, including compounded interest and unamortized transaction costs, based on published default rate studies, the maturity date of the instrument and an internally developed credit rating.SDG&E and SoCalGas have regulatory mechanisms to recover credit losses and thus record changes in the allowances for credit losses related to Accounts Receivable – Trade that are probable of recovery in regulatory accounts. We discuss regulatory accounts in Note 4.

32

Table of Contents

Changes in allowances for credit losses for trade receivables, other receivables and a note receivable are as follows:CHANGES IN ALLOWANCES FOR CREDIT LOSSES(Dollars in millions)20252024Sempra:Allowances for credit losses at January 1$519 $539 Provisions for expected credit losses33 94 Write-offs (94)(112)Allowances for credit losses at June 30$458 $521 SDG&E:Allowances for credit losses at January 1$114 $144 Provisions for expected credit losses25 24 Write-offs(40)(42)Allowances for credit losses at June 30$99 $126 SoCalGas:Allowances for credit losses at January 1$285 $331 Provisions for expected credit losses21 45 Write-offs(54)(70)Allowances for credit losses at June 30$252 $306 Allowances for credit losses related to trade receivables, other receivables and a note receivable are included in the Condensed Consolidated Balance Sheets as follows:ALLOWANCES FOR CREDIT LOSSES(Dollars in millions)June 30,December 31,20252024Sempra:Accounts receivable – trade, net$381 $447 Accounts receivable – other, net59 53 Other long-term assets(1)(2)18 19 Total allowances for credit losses$458 $519 SDG&E:Accounts receivable – trade, net$66 $81 Accounts receivable – other, net27 25 Other long-term assets(1)6 8 Total allowances for credit losses$99 $114 SoCalGas:Accounts receivable – trade, net$212 $251 Accounts receivable – other, net32 28 Other long-term assets(