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GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on Sempra’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra’s Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
| September 30, 2025 | December 31, 2024
Sempra: |  |
Cash and cash equivalents | $ | 5 |  | $ | 1,565 |
Restricted cash, current | 2 |  | 21 |
Restricted cash, noncurrent | — |  | 3 |
Assets held for sale | 3,018 |  | — |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ | 3,025 |  | $ | 1,589 |
Accounts Receivable, Allowance for Credit Loss | 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)
| 2025 | 2024
Sempra: |  |
Allowances for credit losses at January 1 | $ | 519 |  | $ | 539 |
Provisions for expected credit losses(1) | 106 |  | 148 |
Write-offs(1) | (147) |  | (169) |
Reclassification to assets held for sale | (134) |  | — |
Allowances for credit losses at September 30 | $ | 344 |  | $ | 518 |
SDG&E: |  |
Allowances for credit losses at January 1 | $ | 114 |  | $ | 144 |
Provisions for expected credit losses | 40 |  | 46 |
Write-offs | (61) |  | (63) |
Allowances for credit losses at September 30 | $ | 93 |  | $ | 127 |
SoCalGas: |  |
Allowances for credit losses at January 1 | $ | 285 |  | $ | 331 |
Provisions for expected credit losses | 42 |  | 70 |
Write-offs | (80) |  | (107) |
Allowances for credit losses at September 30 | $ | 247 |  | $ | 294 |
(1) Includes activities within the disposal group that is held for sale. 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)
| September 30, | December 31,
| 2025 | 2024
Sempra: |  |
Accounts receivable – trade, net | $ | 270 |  | $ | 447 |
Accounts receivable – other, net | 53 |  | 53 |
Other long-term assets(1)(2) | 21 |  | 19 |
Total allowances for credit losses | $ | 344 |  | $ | 519 |
SDG&E: |  |
Accounts receivable – trade, net | $ | 61 |  | $ | 81 |
Accounts receivable – other, net | 27 |  | 25 |
Other long-term assets(1) | 5 |  | 8 |
Total allowances for credit losses | $ | 93 |  | $ | 114 |
SoCalGas: |  |
Accounts receivable – trade, net | $ | 209 |  | $ | 251 |
Accounts receivable – other, net | 26 |  | 28 |
Other long-term assets(1) | 12 |  | 6 |
Total allowances for credit losses | $ | 247 |  | $ | 285 |
(1) In January 2024, the CPUC directed SDG&E and SoCalGas to offer long-term repayment plans to eligible residential customers with past-due balances. (2) At September 30, 2025 and December 31, 2024, includes $4 and $5, respectively, of expected credit losses on an interest-bearing promissory note due from KKR Pinnacle.
Schedule of Related Party Transactions | We summarize amounts due from and to unconsolidated affiliates at the Registrants in the following table.
AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
| September 30, 2025 |  | December 31, 2024
Sempra: |  |  |
Tax sharing agreement with Oncor Holdings | $ | — |  |  | $ | 8 |
Various affiliates | — |  |  | 5 |
Total due from unconsolidated affiliates – current(1) | $ | — |  |  | $ | 13 |
Tax sharing arrangement with Oncor Holdings | $ | (17) |  |  | $ | — |
Total due to unconsolidated affiliates – current | $ | (17) |  |  | $ | — |
TAG Pipelines Norte, S. de R.L. de C.V.(2): |  |  |
5.5% Note due January 14, 2026 | $ | — |  |  | $ | (8) |
5.5% Note due July 14, 2026 | — |  |  | (12) |
5.5% Note due January 19, 2027 | — |  |  | (15) |
5.5% Note due July 21, 2027 | — |  |  | (19) |
5.5% Note due January 19, 2028 | — |  |  | (48) |
5.5% Note due July 18, 2028 | — |  |  | (41) |
TAG Norte – 5.74% Note due December 17, 2029(2) | — |  |  | (209) |
Total due to unconsolidated affiliates – noncurrent(1) | $ | — |  |  | $ | (352) |
SDG&E: |  |  |
SoCalGas | $ | 13 |  |  | $ | — |
Total due from unconsolidated affiliates – current | $ | 13 |  |  | $ | — |
Sempra | $ | (57) |  |  | $ | (42) |
SoCalGas | — |  |  | (14) |
Various affiliates | (8) |  |  | (3) |
Total due to unconsolidated affiliates – current | $ | (65) |  |  | $ | (59) |
Income taxes due from Sempra(3) | $ | 46 |  |  | $ | 38 |
SoCalGas: |  |  |
SDG&E | $ | — |  |  | $ | 14 |
Various affiliates | 2 |  |  | 2 |
Total due from unconsolidated affiliates – current | $ | 2 |  |  | $ | 16 |
Sempra | $ | (49) |  |  | $ | (38) |
SDG&E | (13) |  |  | — |
Total due to unconsolidated affiliates – current | $ | (62) |  |  | $ | (38) |
Income taxes due from (to) Sempra(3) | $ | 20 |  |  | $ | (6) |
(1) At September 30, 2025, $3 due from unconsolidated affiliates is classified as Assets Held For Sale and $417 due to unconsolidated affiliates is classified as Liabilities Held For Sale on the Sempra Condensed Consolidated Balance Sheet. (2) U.S. dollar-denominated loans at fixed interest rates. Amounts include principal balances plus accumulated interest outstanding and value added tax payable to the Mexican government. (3) SDG&E and SoCalGas are included in the consolidated income tax return of Sempra, and their respective income tax expense/benefit is computed as an amount equal to that which would result from each company having always filed a separate return. Amounts include current and noncurrent income taxes due from/to Sempra. The following table summarizes income statement information from unconsolidated affiliates.
INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sempra: |  |  |  |  |  |  |
Revenues | $ | 9 |  |  | $ | 11 |  |  | $ | 26 |  |  | $ | 31 |
Interest expense | 4 |  |  | 5 |  |  | 13 |  |  | 12 |
SDG&E: |  |  |  |  |  |  |
Revenues | $ | 6 |  |  | $ | 6 |  |  | $ | 17 |  |  | $ | 17 |
Cost of sales | 35 |  |  | 36 |  |  | 103 |  |  | 111 |
SoCalGas: |  |  |  |  |  |  |
Revenues | $ | 47 |  |  | $ | 43 |  |  | $ | 128 |  |  | $ | 124 |
Cost of sales(1) | (2) |  |  | (2) |  |  | (3) |  |  | (5) |
(1) Includes net commodity costs from natural gas transactions with unconsolidated affiliates.
Schedule of Inventory, Current | The components of inventories are as follows:
INVENTORY BALANCES
(Dollars in millions)
| Sempra |  | SDG&E |  | SoCalGas
| September 30, 2025(1) |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Natural gas | $ | 162 |  |  | $ | 163 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 160 |  |  | $ | 148 |
LNG | — |  |  | 27 |  |  | — |  |  | — |  |  | — |  |  | — |
Materials and supplies | 403 |  |  | 369 |  |  | 261 |  |  | 201 |  |  | 142 |  |  | 139 |
Total | $ | 565 |  |  | $ | 559 |  |  | $ | 263 |  |  | $ | 202 |  |  | $ | 302 |  |  | $ | 287 |
(1) Total inventories of $103 is classified as Assets Held For Sale on the Sempra Condensed Consolidated Balance Sheet, which consists of $10 of natural gas, $11 of LNG and $82 of materials and supplies.
Schedule of Capitalization | The table below summarizes capitalized financing costs, comprised of capitalized interest and AFUDC related to debt.
CAPITALIZED FINANCING COSTS |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sempra | $ | 205 |  |  | $ | 166 |  |  | $ | 574 |  |  | $ | 466 |
SDG&E | 25 |  |  | 27 |  |  | 82 |  |  | 80 |
SoCalGas | 25 |  |  | 25 |  |  | 75 |  |  | 75 |
Schedule of Asset Retirement Obligations | We summarize changes in AROs in the following table.
CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
| Sempra |  | SDG&E |  | SoCalGas
| 2025 | 2024 |  | 2025 | 2024 |  | 2025 | 2024
Balance at January 1(1) | $ | 3,925 |  | $ | 3,831 |  |  | $ | 900 |  | $ | 894 |  |  | $ | 2,930 |  | $ | 2,847 |
Accretion expense(2) | 121 |  | 115 |  |  | 30 |  | 27 |  |  | 88 |  | 84 |
Liabilities incurred | 9 |  | — |  |  | 9 |  | — |  |  | — |  | — |
Payments | (48) |  | (45) |  |  | (39) |  | (40) |  |  | (9) |  | (5) |
Revisions(2) | 50 |  | (9) |  |  | (6) |  | — |  |  | 59 |  | (9) |
Reclassification to liabilities held for sale | (93) |  | — |  |  | — |  | — |  |  | — |  | — |
Balance at September 30(1) | $ | 3,964 |  | $ | 3,892 |  |  | $ | 894 |  | $ | 881 |  |  | $ | 3,068 |  | $ | 2,917 |
(1) Current portion of the ARO for Sempra is included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. (2) Sempra includes activities within the disposal group that is held for sale.
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, after amounts attributable to NCI.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1)
(Dollars in millions)
| Foreign currency translation adjustments |  | Financial instruments |  | Pension and PBOP |  | Total AOCI
| Three months ended September 30, 2025 and 2024
Sempra: |  |  |  |  |  |  |
Balance at June 30, 2025 | $ | (55) |  |  | $ | (50) |  |  | $ | (110) |  |  | $ | (215) |
OCI before reclassifications | 5 |  |  | (11) |  |  | (1) |  |  | (7) |
Amounts reclassified from AOCI | — |  |  | (2) |  |  | 12 |  |  | 10 |
Net OCI | 5 |  |  | (13) |  |  | 11 |  |  | 3 |
Balance at September 30, 2025 | $ | (50) |  |  | $ | (63) |  |  | $ | (99) |  |  | $ | (212) |
Balance at June 30, 2024 | $ | (49) |  |  | $ | 35 |  |  | $ | (107) |  |  | $ | (121) |
OCI before reclassifications | (12) |  |  | (49) |  |  | — |  |  | (61) |
Amounts reclassified from AOCI | — |  |  | (5) |  |  | 2 |  |  | (3) |
Net OCI | (12) |  |  | (54) |  |  | 2 |  |  | (64) |
Balance at September 30, 2024 | $ | (61) |  |  | $ | (19) |  |  | $ | (105) |  |  | $ | (185) |
SDG&E: |  |  |  |  |  |  |
Balance at June 30, 2025 and September 30, 2025 |  |  |  |  | $ | (12) |  |  | $ | (12) |
Balance at June 30, 2024 and September 30, 2024 |  |  |  |  | $ | (8) |  |  | $ | (8) |
SoCalGas: |  |  |  |  |  |  |
Balance at June 30, 2025 |  |  | $ | (10) |  |  | $ | (14) |  |  | $ | (24) |
Amounts reclassified from AOCI |  |  | 1 |  |  | 5 |  |  | 6 |
Net OCI |  |  | 1 |  |  | 5 |  |  | 6 |
Balance at September 30, 2025 |  |  | $ | (9) |  |  | $ | (9) |  |  | $ | (18) |
Balance at June 30, 2024 and September 30, 2024 |  |  | $ | (10) |  |  | $ | (11) |  |  | $ | (21) |
(1) All amounts are net of income tax, if subject to tax, and after NCI.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) (CONTINUED)
(Dollars in millions)
| Foreign currency translation adjustments |  | Financial instruments |  | Pension and PBOP |  | Total AOCI
| Nine months ended September 30, 2025 and 2024
Sempra: |  |  |  |  |  |  |
Balance at December 31, 2024 | $ | (66) |  |  | $ | 15 |  |  | $ | (115) |  |  | $ | (166) |
OCI before reclassifications | 16 |  |  | (76) |  |  | (3) |  |  | (63) |
Amounts reclassified from AOCI | — |  |  | (2) |  |  | 19 |  |  | 17 |
Net OCI | 16 |  |  | (78) |  |  | 16 |  |  | (46) |
Balance at September 30, 2025 | $ | (50) |  |  | $ | (63) |  |  | $ | (99) |  |  | $ | (212) |
Balance at December 31, 2023 | $ | (36) |  |  | $ | 3 |  |  | $ | (117) |  |  | $ | (150) |
OCI before reclassifications | (25) |  |  | (1) |  |  | 1 |  |  | (25) |
Amounts reclassified from AOCI | — |  |  | (21) |  |  | 11 |  |  | (10) |
Net OCI | (25) |  |  | (22) |  |  | 12 |  |  | (35) |
Balance at September 30, 2024 | $ | (61) |  |  | $ | (19) |  |  | $ | (105) |  |  | $ | (185) |
SDG&E: |  |  |  |  |  |  |
Balance at December 31, 2024 and September 30, 2025 |  |  |  |  | $ | (12) |  |  | $ | (12) |
Balance at December 31, 2023 and September 30, 2024 |  |  |  |  | $ | (8) |  |  | $ | (8) |
SoCalGas: |  |  |  |  |  |  |
Balance at December 31, 2024 |  |  | $ | (10) |  |  | $ | (17) |  |  | $ | (27) |
OCI before reclassifications |  |  | — |  |  | (2) |  |  | (2) |
Amounts reclassified from AOCI |  |  | 1 |  |  | 10 |  |  | 11 |
Net OCI |  |  | 1 |  |  | 8 |  |  | 9 |
Balance at September 30, 2025 |  |  | $ | (9) |  |  | $ | (9) |  |  | $ | (18) |
Balance at December 31, 2023 |  |  | $ | (11) |  |  | $ | (12) |  |  | $ | (23) |
Amounts reclassified from AOCI |  |  | 1 |  |  | 1 |  |  | 2 |
Net OCI |  |  | 1 |  |  | 1 |  |  | 2 |
Balance at September 30, 2024 |  |  | $ | (10) |  |  | $ | (11) |  |  | $ | (21) |
(1) All amounts are net of income tax, if subject to tax, and after NCI.
Reclassifications out of AOCI |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about AOCI components | Amounts reclassified from AOCI |  | Affected line item on Condensed Consolidated Statements of Operations
| Three months ended September 30, |  |
| 2025 |  | 2024 |  |
Sempra: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments | $ | (4) |  |  | $ | (3) |  |  | Interest expense
Interest rate instruments | (6) |  |  | (5) |  |  | Equity earnings(1)
Foreign exchange instruments | 2 |  |  | — |  |  | Revenues: Energy-related businesses
Foreign exchange instruments | 1 |  |  | (1) |  |  | Other income, net
Foreign exchange instruments | 3 |  |  | (1) |  |  | Equity earnings(1)
Total, before income tax | (4) |  |  | (10) |  |  |
| 1 |  |  | 3 |  |  | Income tax (expense) benefit
Total, net of income tax | (3) |  |  | (7) |  |  |
| 1 |  |  | 2 |  |  | Earnings attributable to noncontrolling interests
Total, net of income tax and after NCI | $ | (2) |  |  | $ | (5) |  |  |
Pension and PBOP(2): |  |  |  |  |
Amortization of actuarial loss | $ | 2 |  |  | $ | 2 |  |  | Other income, net
Amortization of prior service cost | — |  |  | 1 |  |  | Other income, net
Settlement charges | 12 |  |  | — |  |  | Other income, net
Total, before income tax | 14 |  |  | 3 |  |  |
| (2) |  |  | (1) |  |  | Income tax (expense) benefit
Total, net of income tax | $ | 12 |  |  | $ | 2 |  |  |
Total reclassifications for the period, net of income tax and after NCI | $ | 10 |  |  | $ | (3) |  |  |
SoCalGas: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments | $ | 1 |  |  | $ | — |  |  | Interest expense
Pension and PBOP(2): |  |  |  |  |
Settlement charges | $ | 6 |  |  | $ | — |  |  | Other (expense) income, net
Total, before income tax | 6 |  |  | — |  |  |
| (1) |  |  | — |  |  | Income tax benefit (expense)
Total, net of income tax | $ | 5 |  |  | $ | — |  |  |
Total reclassifications for the period, net of income tax | $ | 6 |  |  | $ | — |  |  |
(1) Equity earnings at Oncor Holdings and our foreign equity method investees are recognized after tax. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and PBOP” below).
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)
(Dollars in millions)
Details about AOCI components | Amounts reclassified from AOCI |  | Affected line item on Condensed Consolidated Statements of Operations
| Nine months ended September 30, |  |
| 2025 |  | 2024 |  |
Sempra: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments | $ | (6) |  |  | $ | (9) |  |  | Interest expense
Interest rate instruments | (10) |  |  | (20) |  |  | Equity earnings(1)
Foreign exchange instruments | 3 |  |  | (5) |  |  | Revenues: Energy-related businesses
| 2 |  |  | (2) |  |  | Other income, net
Foreign exchange instruments | 4 |  |  | (5) |  |  | Equity earnings(1)
Total, before income tax | (7) |  |  | (41) |  |  |
| 2 |  |  | 9 |  |  | Income tax (expense) benefit
Total, net of income tax | (5) |  |  | (32) |  |  |
| 3 |  |  | 11 |  |  | Earnings attributable to noncontrolling interests
Total, net of income tax and after NCI | $ | (2) |  |  | $ | (21) |  |  |
Pension and PBOP(2): |  |  |  |  |
Amortization of actuarial loss | $ | 5 |  |  | $ | 5 |  |  | Other income, net
Amortization of prior service cost | 1 |  |  | 2 |  |  | Other income, net
Settlement charges | 16 |  |  | 9 |  |  | Other income, net
Total, before income tax | 22 |  |  | 16 |  |  |
| (3) |  |  | (5) |  |  | Income tax (expense) benefit
Total, net of income tax | $ | 19 |  |  | $ | 11 |  |  |
Total reclassifications for the period, net of income tax and after NCI | $ | 17 |  |  | $ | (10) |  |  |
SoCalGas: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments | $ | 1 |  |  | $ | 1 |  |  | Interest expense
Pension and PBOP(2): |  |  |  |  |
Amortization of actuarial loss | $ | 1 |  |  | $ | — |  |  | Other (expense) income, net
Amortization of prior service cost | 1 |  |  | 1 |  |  | Other (expense) income, net
Settlement charges | 10 |  |  | — |  |  | Other (expense) income, net
Total, before income tax | 12 |  |  | 1 |  |  |
| (2) |  |  | — |  |  | Income tax benefit (expense)
Total, net of income tax | $ | 10 |  |  | $ | 1 |  |  |
Total reclassifications for the period, net of income tax | $ | 11 |  |  | $ | 2 |  |  |
(1) Equity earnings at Oncor Holdings and our foreign equity method investees are recognized after tax. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and PBOP” below).
Schedule of Net Benefit Costs | The following tables provide the components of net periodic benefit cost. The components of net periodic benefit cost, other than the service cost component, are included in Other Income, Net.
NET PERIODIC BENEFIT COST
(Dollars in millions)
| Pension |  | PBOP
| Three months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sempra: |  |  |  |  |  |  |
Service cost | $ | 32 |  |  | $ | 34 |  |  | $ | 3 |  |  | $ | 4 |
Interest cost | 42 |  |  | 41 |  |  | 10 |  |  | 9 |
Expected return on assets | (41) |  |  | (40) |  |  | (17) |  |  | (19) |
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 1 |  |  | 1 |  |  | (1) |  |  | (1) |
Actuarial loss (gain) | 3 |  |  | 4 |  |  | (3) |  |  | (4) |
Settlement charges | 12 |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | 49 |  |  | 40 |  |  | (8) |  |  | (11) |
Regulatory adjustments | 26 |  |  | 20 |  |  | 8 |  |  | 10 |
Total expense (income) recognized | $ | 75 |  |  | $ | 60 |  |  | $ | — |  |  | $ | (1) |
SDG&E: |  |  |  |  |  |  |
Service cost | $ | 10 |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |
Interest cost | 11 |  |  | 10 |  |  | 2 |  |  | 3 |
Expected return on assets | (11) |  |  | (10) |  |  | (2) |  |  | (3) |
Amortization of: |  |  |  |  |  |  |
Actuarial loss | 1 |  |  | 3 |  |  | — |  |  | — |
Net periodic benefit cost | 11 |  |  | 13 |  |  | — |  |  | — |
Regulatory adjustments | 2 |  |  | — |  |  | — |  |  | — |
Total expense recognized | $ | 13 |  |  | $ | 13 |  |  | $ | — |  |  | $ | — |
SoCalGas: |  |  |  |  |  |  |
Service cost | $ | 19 |  |  | $ | 21 |  |  | $ | 2 |  |  | $ | 3 |
Interest cost | 28 |  |  | 26 |  |  | 7 |  |  | 7 |
Expected return on assets | (30) |  |  | (29) |  |  | (13) |  |  | (15) |
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 1 |  |  | 1 |  |  | (1) |  |  | (1) |
Actuarial gain (loss) | 1 |  |  | 1 |  |  | (3) |  |  | (4) |
Settlement charges | 6 |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | 25 |  |  | 20 |  |  | (8) |  |  | (10) |
Regulatory adjustments | 24 |  |  | 20 |  |  | 8 |  |  | 10 |
Total expense recognized | $ | 49 |  |  | $ | 40 |  |  | $ | — |  |  | $ | — |
NET PERIODIC BENEFIT COST (CONTINUED)
(Dollars in millions)
| Pension |  | PBOP
| Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sempra: |  |  |  |  |  |  |
Service cost | $ | 96 |  |  | $ | 99 |  |  | $ | 10 |  |  | $ | 11 |
Interest cost | 132 |  |  | 124 |  |  | 29 |  |  | 27 |
Expected return on assets | (130) |  |  | (131) |  |  | (50) |  |  | (53) |
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 3 |  |  | 4 |  |  | (2) |  |  | (2) |
Actuarial loss (gain) | 9 |  |  | 10 |  |  | (9) |  |  | (12) |
Settlement charges | 16 |  |  | 9 |  |  | — |  |  | — |
Special termination benefits | — |  |  | — |  |  | 40 |  |  | — |
Net periodic benefit cost (credit) | 126 |  |  | 115 |  |  | 18 |  |  | (29) |
Regulatory adjustments | 25 |  |  | 21 |  |  | (15) |  |  | 28 |
Total expense (income) recognized | $ | 151 |  |  | $ | 136 |  |  | $ | 3 |  |  | $ | (1) |
SDG&E: |  |  |  |  |  |  |
Service cost | $ | 29 |  |  | $ | 29 |  |  | $ | 1 |  |  | $ | 2 |
Interest cost | 35 |  |  | 32 |  |  | 6 |  |  | 6 |
Expected return on assets | (35) |  |  | (33) |  |  | (6) |  |  | (7) |
Amortization of: |  |  |  |  |  |  |
Actuarial loss (gain) | 3 |  |  | 6 |  |  | (1) |  |  | (1) |
Special termination benefits | — |  |  | — |  |  | 17 |  |  | — |
Net periodic benefit cost | 32 |  |  | 34 |  |  | 17 |  |  | — |
Regulatory adjustments | (6) |  |  | (7) |  |  | (14) |  |  | — |
Total expense recognized | $ | 26 |  |  | $ | 27 |  |  | $ | 3 |  |  | $ | — |
SoCalGas: |  |  |  |  |  |  |
Service cost | $ | 57 |  |  | $ | 59 |  |  | $ | 7 |  |  | $ | 8 |
Interest cost | 84 |  |  | 78 |  |  | 22 |  |  | 21 |
Expected return on assets | (89) |  |  | (90) |  |  | (42) |  |  | (45) |
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 3 |  |  | 3 |  |  | (2) |  |  | (2) |
Actuarial loss (gain) | 2 |  |  | 1 |  |  | (7) |  |  | (10) |
Settlement charges | 10 |  |  | — |  |  | — |  |  | — |
Special termination benefits | — |  |  | — |  |  | 23 |  |  | — |
Net periodic benefit cost (credit) | 67 |  |  | 51 |  |  | 1 |  |  | (28) |
Regulatory adjustments | 31 |  |  | 28 |  |  | (1) |  |  | 28 |
Total expense recognized | $ | 98 |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |
Schedule of Defined Benefit Plans Disclosures | The following table shows our year-to-date contributions to pension and PBOP plans and the amounts we expect to contribute in 2025.
BENEFIT PLAN CONTRIBUTIONS
(Dollars in millions)
|  | Sempra |  | SDG&E |  | SoCalGas
Contributions through September 30, 2025: |  |  |  |  |  |
Pension plans |  | $ | 158 |  |  | $ | 26 |  |  | $ | 110 |
PBOP plans |  | 2 |  | — |  |  | 1
Total expected contributions in 2025: |  |  |  |  |  |
Pension plans |  | $ | 292 |  |  | $ | 56 |  |  | $ | 196 |
PBOP plans |  | 16 |  | 13 |  | 1 |
Schedule of Other Nonoperating Income (Expense) | Other Income, Net, consists of the following:
OTHER INCOME (EXPENSE), NET
(Dollars in millions)
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sempra: |  |  |  |  |  |  |
Allowance for equity funds used during construction | $ | 43 |  |  | $ | 39 |  |  | $ | 130 |  |  | $ | 114 |
Investment gains, net(1) | 22 |  |  | 29 |  |  | 47 |  |  | 48 |
(Losses) gains on interest rate and foreign exchange instruments, net | (1) |  |  | 1 |  |  | (2) |  |  | 2 |
Foreign currency transaction gains (losses), net | 4 |  |  | (5) |  |  | 10 |  |  | (6) |
Non-service components of net periodic benefit cost | (40) |  |  | (21) |  |  | (48) |  |  | (25) |
Interest on regulatory balancing accounts, net | 29 |  |  | 26 |  |  | 70 |  |  | 68 |
Sundry, net | (8) |  |  | (4) |  |  | (8) |  |  | (7) |
Total | $ | 49 |  |  | $ | 65 |  |  | $ | 199 |  |  | $ | 194 |
SDG&E: |  |  |  |  |  |  |
Allowance for equity funds used during construction | $ | 19 |  |  | $ | 21 |  |  | $ | 61 |  |  | $ | 60 |
Non-service components of net periodic benefit cost | (3) |  |  | (3) |  |  | 1 |  |  | 4 |
Interest on regulatory balancing accounts, net | 18 |  |  | 12 |  |  | 44 |  |  | 30 |
Sundry, net | (2) |  |  | — |  |  | (3) |  |  | (8) |
Total | $ | 32 |  |  | $ | 30 |  |  | $ | 103 |  |  | $ | 86 |
SoCalGas: |  |  |  |  |  |  |
Allowance for equity funds used during construction | $ | 17 |  |  | $ | 18 |  |  | $ | 53 |  |  | $ | 54 |
Non-service components of net periodic benefit cost | (28) |  |  | (16) |  |  | (34) |  |  | (12) |
Interest on regulatory balancing accounts, net | 11 |  |  | 14 |  |  | 26 |  |  | 38 |
Sundry, net | (3) |  |  | (3) |  |  | (8) |  |  | (7) |
Total | $ | (3) |  |  | $ | 13 |  |  | $ | 37 |  |  | $ | 73 |
(1) Represents net investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Condensed Consolidated Statements of Operations.
Schedule of Effective Income Tax Rate Reconciliation | We provide our calculations of ETRs in the following table.
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sempra: |  |  |  |  |  |  |
Income tax expense (benefit) | $ | 482 |  |  | $ | (105) |  |  | $ | 711 |  |  | $ | (63) |
Income before income taxes and equity earnings | $ | 160 |  |  | $ | 200 |  |  | $ | 1,109 |  |  | $ | 1,213 |
Equity earnings, before income tax(1) | 133 |  |  | 132 |  |  | 443 |  |  | 426 |
Pretax income | $ | 293 |  |  | $ | 332 |  |  | $ | 1,552 |  |  | $ | 1,639 |
Effective income tax rate | 165 | % |  | (32) | % |  | 46 | % |  | (4) | %
SDG&E: |  |  |  |  |  |  |
Income tax (benefit) expense | $ | (33) |  |  | $ | 15 |  |  | $ | (12) |  |  | $ | 89 |
Income before income taxes | $ | 291 |  |  | $ | 276 |  |  | $ | 768 |  |  | $ | 759 |
Effective income tax rate | (11) | % |  | 5 | % |  | (2) | % |  | 12 | %
SoCalGas: |  |  |  |  |  |  |
Income tax (benefit) expense | $ | (95) |  |  | $ | (52) |  |  | $ | (51) |  |  | $ | 1 |
(Loss) income before income taxes | $ | (49) |  |  | $ | (66) |  |  | $ | 523 |  |  | $ | 477 |
Effective income tax rate | 194 | % |  | 79 | % |  | (10) | % |  | — | %
(1) We discuss how we recognize equity earnings in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.

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