Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 483

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 483
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 F-120

SEMPRA RESTRICTED STOCK UNITSWe use Sempra’s common stock price at the grant date to estimate the fair value of our service-based RSUs and our RSUs that vest based on the compound annual growth rate of Sempra’s EPS.We use a Monte-Carlo simulation model to estimate the fair value of our RSUs that vest based on Sempra’s total return to shareholders. Our determination of fair value is affected by the historical volatility of the common stock price for Sempra and its peer group companies. The valuation also is affected by the risk-free rates of return and a number of other variables. Below are key assumptions for RSUs granted in the last three years:KEY ASSUMPTIONS FOR RSUs GRANTED Years ended December 31, 202420232022Sempra:Stock price volatility21.27 %35.31 %32.82 %Risk-free rate of return4.06 %4.13 %1.05 %The following table shows a summary of RSUs at December 31, 2024 and activity for the year then ended:RESTRICTED STOCK UNITS Performance-based restricted stock unitsService-based restricted stock units UnitsWeighted- average grant-date fair valueUnitsWeighted- average grant-date fair valueSempra:Nonvested at January 1, 20241,829,984 $74.46 524,969 $70.63 Granted721,049 $75.70 321,576 $75.86 Vested(571,322)$66.52 (281,494)$68.68 Forfeited(73,987)$76.78 (21,963)$88.74 Nonvested at December 31, 2024(1)1,905,724 $77.22 543,088 $74.55 Expected to vest at December 31, 20241,865,938 $77.19 525,029 $74.49 (1)    Each RSU represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based RSUs, up to an additional 100% of the shares represented by the RSUs may be issued if Sempra exceeds target performance conditions.In 2024, 2023 and 2022, the total fair value of RSU shares vested during the year was $57 million, $52