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GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 6 Months Ended
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Jun. 30, 2026
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)
| June 30, 2026 | December 31, 2025
Sempra: |  |
Cash and cash equivalents | $ | 48 |  | $ | 29 |
Restricted cash, current | 2 |  | 2 |
Assets held for sale | 2,650 |  | 3,521 |
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ | 2,700 |  | $ | 3,552 |
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)
| 2026 | 2025
Sempra: |  |
Allowances for credit losses at January 1 | $ | 298 |  | $ | 519 |
Provisions for expected credit losses(1) | 50 |  | 33 |
Write-offs | (78) |  | (94) |
Reclassification to assets held for sale | 6 |  | — |
Allowances for credit losses at June 30 | $ | 276 |  | $ | 458 |
SDG&E: |  |
Allowances for credit losses at January 1 | $ | 80 |  | $ | 114 |
Provisions for expected credit losses | 34 |  | 25 |
Write-offs | (35) |  | (40) |
Allowances for credit losses at June 30 | $ | 79 |  | $ | 99 |
SoCalGas: |  |
Allowances for credit losses at January 1 | $ | 214 |  | $ | 285 |
Provisions for expected credit losses | 22 |  | 21 |
Write-offs | (43) |  | (54) |
Allowances for credit losses at June 30 | $ | 193 |  | $ | 252 |
(1) Includes activities in 2026 within the disposal group that is classified as 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)
| June 30, | December 31,
| 2026 | 2025
Sempra: |  |
Accounts receivable – trade, net | $ | 212 |  | $ | 235 |
Accounts receivable – other, net | 48 |  | 47 |
Other long-term assets(1)(2) | 16 |  | 16 |
Total allowances for credit losses | $ | 276 |  | $ | 298 |
SDG&E: |  |
Accounts receivable – trade, net | $ | 48 |  | $ | 49 |
Accounts receivable – other, net | 27 |  | 26 |
Other long-term assets(1) | 4 |  | 5 |
Total allowances for credit losses | $ | 79 |  | $ | 80 |
SoCalGas: |  |
Accounts receivable – trade, net | $ | 164 |  | $ | 186 |
Accounts receivable – other, net | 21 |  | 21 |
Other long-term assets(1) | 8 |  | 7 |
Total allowances for credit losses | $ | 193 |  | $ | 214 |
(1) In January 2024, the CPUC directed SDG&E and SoCalGas to offer long-term payment plans to eligible residential customers with past-due balances. (2) At both June 30, 2026 and December 31, 2025, includes $4 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)
| June 30, 2026 |  | December 31, 2025
Sempra: |  |  |
Tax sharing agreement with Oncor Holdings | $ | 15 |  |  | $ | — |
Sharyland Utilities – 5.14% Note due May 1, 2027(1) | 30 |  |  | — |
Total due from unconsolidated affiliates – current | $ | 45 |  |  | $ | — |
Tax sharing agreement with Oncor Holdings | $ | — |  |  | $ | (8) |
Total due to unconsolidated affiliates – current | $ | — |  |  | $ | (8) |
SDG&E: |  |  |
SoCalGas | $ | 17 |  |  | $ | — |
Various affiliates | 1 |  |  | 1 |
Total due from unconsolidated affiliates – current | $ | 18 |  |  | $ | 1 |
Sempra | $ | (32) |  |  | $ | (48) |
SoCalGas | — |  |  | (6) |
Various affiliates | (8) |  |  | (5) |
Total due to unconsolidated affiliates – current | $ | (40) |  |  | $ | (59) |
Income taxes due from Sempra(2) | $ | 88 |  |  | $ | 43 |
SoCalGas: |  |  |
SDG&E | $ | — |  |  | $ | 6 |
Various affiliates | 5 |  |  | 2 |
Total due from unconsolidated affiliates – current | $ | 5 |  |  | $ | 8 |
Sempra | $ | (46) |  |  | $ | (35) |
SDG&E | (17) |  |  | — |
Total due to unconsolidated affiliates – current | $ | (63) |  |  | $ | (35) |
Income taxes due from (to) Sempra(2) | $ | 24 |  |  | $ | (6) |
(1) Note bears interest at the lower of Sempra’s intercompany borrowing rate or the maximum rate permitted under applicable California law, which was 5.14% at June 30, 2026. Amount includes principal balance plus accumulated interest outstanding. (2) 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 June 30, |  | Six months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Sempra: |  |  |  |  |  |  |
Revenues | $ | 8 |  |  | $ | 8 |  |  | $ | 16 |  |  | $ | 17 |
Interest expense | 6 |  |  | 5 |  |  | 12 |  |  | 9 |
SDG&E: |  |  |  |  |  |  |
Revenues | $ | 6 |  |  | $ | 5 |  |  | $ | 12 |  |  | $ | 11 |
Cost of sales | 35 |  |  | 30 |  |  | 63 |  |  | 68 |
SoCalGas: |  |  |  |  |  |  |
Revenues | $ | 46 |  |  | $ | 40 |  |  | $ | 92 |  |  | $ | 81 |
Cost of sales(1) | (2) |  |  | — |  |  | (2) |  |  | (1) |
(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
| June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025
Natural gas | $ | 104 |  |  | $ | 158 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 102 |  |  | $ | 156 |
Materials and supplies | 392 |  |  | 403 |  |  | 262 |  |  | 265 |  |  | 130 |  |  | 138 |
Total | $ | 496 |  |  | $ | 561 |  |  | $ | 264 |  |  | $ | 267 |  |  | $ | 232 |  |  | $ | 294 |
Schedule of Capitalization | The table below summarizes capitalized financing costs.
CAPITALIZED FINANCING COSTS |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |
| Three months ended June 30, |  | Six months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Sempra: |  |  |  |  |  |  |
Capitalized interest | $ | 195 |  |  | $ | 133 |  |  | $ | 379 |  |  | $ | 253 |
AFUDC debt | 14 |  |  | 16 |  |  | 27 |  |  | 29 |
AFUDC equity | 38 |  |  | 46 |  |  | 80 |  |  | 87 |
SDG&E: |  |  |  |  |  |  |
AFUDC debt | $ | 7 |  |  | $ | 9 |  |  | $ | 13 |  |  | $ | 15 |
AFUDC equity | 16 |  |  | 23 |  |  | 33 |  |  | 42 |
SoCalGas: |  |  |  |  |  |  |
AFUDC debt | $ | 7 |  |  | $ | 7 |  |  | $ | 14 |  |  | $ | 14 |
AFUDC equity | 15 |  |  | 18 |  |  | 30 |  |  | 36 |
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 June 30, 2026 and 2025
Sempra: |  |  |  |  |  |  |
Balance at March 31, 2026 | $ | (47) |  |  | $ | (52) |  |  | $ | (92) |  |  | $ | (191) |
OCI before reclassifications | 7 |  |  | 37 |  |  | — |  |  | 44 |
Amounts reclassified from AOCI | — |  |  | 1 |  |  | 2 |  |  | 3 |
Net OCI | 7 |  |  | 38 |  |  | 2 |  |  | 47 |
Balance at June 30, 2026 | $ | (40) |  |  | $ | (14) |  |  | $ | (90) |  |  | $ | (144) |
Balance at March 31, 2025 | $ | (66) |  |  | $ | (17) |  |  | $ | (112) |  |  | $ | (195) |
OCI before reclassifications | 11 |  |  | (34) |  |  | — |  |  | (23) |
Amounts reclassified from AOCI | — |  |  | 1 |  |  | 2 |  |  | 3 |
Net OCI | 11 |  |  | (33) |  |  | 2 |  |  | (20) |
Balance at June 30, 2025 | $ | (55) |  |  | $ | (50) |  |  | $ | (110) |  |  | $ | (215) |
SDG&E: |  |  |  |  |  |  |
Balance at March 31, 2026 and June 30, 2026 |  |  |  |  | $ | (6) |  |  | $ | (6) |
Balance at March 31, 2025 and June 30, 2025 |  |  |  |  | $ | (12) |  |  | $ | (12) |
SoCalGas: |  |  |  |  |  |  |
Balance at March 31, 2026 and June 30, 2026 |  |  | $ | (9) |  |  | $ | (8) |  |  | $ | (17) |
Balance at March 31, 2025 |  |  | $ | (10) |  |  | $ | (15) |  |  | $ | (25) |
Amounts reclassified from AOCI |  |  | — |  |  | 1 |  |  | 1 |
Net OCI |  |  | — |  |  | 1 |  |  | 1 |
Balance at June 30, 2025 |  |  | $ | (10) |  |  | $ | (14) |  |  | $ | (24) |
(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
| Six months ended June 30, 2026 and 2025
Sempra: |  |  |  |  |  |  |
Balance at December 31, 2025 | $ | (45) |  |  | $ | (54) |  |  | $ | (98) |  |  | $ | (197) |
OCI before reclassifications | 5 |  |  | 42 |  |  | 5 |  |  | 52 |
Amounts reclassified from AOCI | — |  |  | (2) |  |  | 3 |  |  | 1 |
Net OCI | 5 |  |  | 40 |  |  | 8 |  |  | 53 |
Balance at June 30, 2026 | $ | (40) |  |  | $ | (14) |  |  | $ | (90) |  |  | $ | (144) |
Balance at December 31, 2024 | $ | (66) |  |  | $ | 15 |  |  | $ | (115) |  |  | $ | (166) |
OCI before reclassifications | 11 |  |  | (65) |  |  | (2) |  |  | (56) |
Amounts reclassified from AOCI | — |  |  | — |  |  | 7 |  |  | 7 |
Net OCI | 11 |  |  | (65) |  |  | 5 |  |  | (49) |
Balance at June 30, 2025 | $ | (55) |  |  | $ | (50) |  |  | $ | (110) |  |  | $ | (215) |
SDG&E: |  |  |  |  |  |  |
Balance at December 31, 2025 and June 30, 2026 |  |  |  |  | $ | (6) |  |  | $ | (6) |
Balance at December 31, 2024 and June 30, 2025 |  |  |  |  | $ | (12) |  |  | $ | (12) |
SoCalGas: |  |  |  |  |  |  |
Balance at December 31, 2025 and June 30, 2026 |  |  | $ | (9) |  |  | $ | (8) |  |  | $ | (17) |
Balance at December 31, 2024 |  |  | $ | (10) |  |  | $ | (17) |  |  | $ | (27) |
OCI before reclassifications |  |  | — |  |  | (2) |  |  | (2) |
Amounts reclassified from AOCI |  |  | — |  |  | 5 |  |  | 5 |
Net OCI |  |  | — |  |  | 3 |  |  | 3 |
Balance at June 30, 2025 |  |  | $ | (10) |  |  | $ | (14) |  |  | $ | (24) |
(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 June 30, |  |
| 2026 |  | 2025 |  |
Sempra: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments | $ | (2) |  |  | $ | — |  |  | Interest expense
Interest rate instruments | 1 |  |  | 1 |  |  | Equity earnings(1)
Foreign exchange instruments | (1) |  |  | (1) |  |  | Revenues: Energy-related businesses
| 1 |  |  | 1 |  |  | Other income, net
Foreign exchange instruments | 1 |  |  | (1) |  |  | Equity earnings(1)
Total, net of income tax | — |  |  | — |  |  |
| 1 |  |  | 1 |  |  | Earnings attributable to noncontrolling interests
Total, net of income tax and after NCI | $ | 1 |  |  | $ | 1 |  |  |
Pension and PBOP(2): |  |  |  |  |
Amortization of actuarial loss | $ | 1 |  |  | $ | 1 |  |  | Other income, net
Amortization of prior service cost | 1 |  |  | 1 |  |  | Other income, net
Total, net of income tax | $ | 2 |  |  | $ | 2 |  |  |
Total reclassifications for the period, net of income tax and after NCI | $ | 3 |  |  | $ | 3 |  |  |
SoCalGas: |  |  |  |  |
Pension and PBOP(2): |  |  |  |  |
Amortization of prior service cost | $ | — |  |  | $ | 1 |  |  | Other income (expense), net
Total, net of income tax | $ | — |  |  | $ | 1 |  |  |
Total reclassifications for the period, net of income tax | $ | — |  |  | $ | 1 |  |  |
(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
| Six months ended June 30, |  |
| 2026 |  | 2025 |  |
Sempra: |  |  |  |  |
Financial instruments: |  |  |  |  |
Interest rate instruments | $ | (3) |  |  | $ | (2) |  |  | Interest expense
Interest rate instruments | — |  |  | (4) |  |  | Equity earnings(1)
Foreign exchange instruments | (3) |  |  | 1 |  |  | Revenues: Energy-related businesses
| 1 |  |  | 1 |  |  | Other income, net
Foreign exchange instruments | (1) |  |  | 1 |  |  | Equity earnings(1)
Total, before income tax | (6) |  |  | (3) |  |  |
| 1 |  |  | 1 |  |  | Income tax expense
Total, net of income tax | (5) |  |  | (2) |  |  |
| 3 |  |  | 2 |  |  | Earnings attributable to noncontrolling interests
Total, net of income tax and after NCI | $ | (2) |  |  | $ | — |  |  |
Pension and PBOP(2): |  |  |  |  |
Amortization of actuarial loss | $ | 2 |  |  | $ | 3 |  |  | Other income, net
Amortization of prior service cost | 1 |  |  | 1 |  |  | Other income, net
Settlement charges | — |  |  | 4 |  |  | Other income, net
Total, before income tax | 3 |  |  | 8 |  |  |
| — |  |  | (1) |  |  | Income tax expense
Total, net of income tax | $ | 3 |  |  | $ | 7 |  |  |
Total reclassifications for the period, net of income tax and after NCI | $ | 1 |  |  | $ | 7 |  |  |
SoCalGas: |  |  |  |  |
Pension and PBOP(2): |  |  |  |  |
Amortization of actuarial loss | $ | — |  |  | $ | 1 |  |  | Other income (expense), net
Amortization of prior service cost | — |  |  | 1 |  |  | Other income (expense), net
Settlement charges | — |  |  | 4 |  |  | Other income (expense), net
Total, before income tax | — |  |  | 6 |  |  |
| — |  |  | (1) |  |  | Income tax expense
Total, net of income tax | $ | — |  |  | $ | 5 |  |  |
Total reclassifications for the period, net of income tax | $ | — |  |  | $ | 5 |  |  |
(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 |
NET PERIODIC BENEFIT COST
(Dollars in millions)
| Pension |  | PBOP
| Three months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Sempra: |  |  |  |  |  |  |
Service cost | $ | 33 |  |  | $ | 32 |  |  | $ | 4 |  |  | $ | 4 |
Interest cost | 44 |  |  | 45 |  |  | 11 |  |  | 9 |
Expected return on assets | (45) |  |  | (44) |  |  | (19) |  |  | (17) |
Amortization of: |  |  |  |  |  |  |
Prior service cost | 1 |  |  | 1 |  |  | — |  |  | — |
Actuarial loss (gain) | 3 |  |  | 3 |  |  | (2) |  |  | (3) |
Special termination benefits | — |  |  | — |  |  | 1 |  |  | 40 |
Net periodic benefit cost (credit) | 36 |  |  | 37 |  |  | (5) |  |  | 33 |
Regulatory adjustments | (16) |  |  | 27 |  |  | 5 |  |  | (30) |
Total expense recognized | $ | 20 |  |  | $ | 64 |  |  | $ | — |  |  | $ | 3 |
SDG&E: |  |  |  |  |  |  |
Service cost | $ | 11 |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |
Interest cost | 12 |  |  | 12 |  |  | 2 |  |  | 2 |
Expected return on assets | (13) |  |  | (12) |  |  | (1) |  |  | (2) |
Amortization of: |  |  |  |  |  |  |
Actuarial gain | — |  |  | — |  |  | (1) |  |  | — |
Special termination benefits | — |  |  | — |  |  | 2 |  |  | 17 |
Net periodic benefit cost | 10 |  |  | 10 |  |  | 2 |  |  | 17 |
Regulatory adjustments | 2 |  |  | 2 |  |  | (2) |  |  | (14) |
Total expense recognized | $ | 12 |  |  | $ | 12 |  |  | $ | — |  |  | $ | 3 |
SoCalGas: |  |  |  |  |  |  |
Service cost | $ | 20 |  |  | $ | 19 |  |  | $ | 3 |  |  | $ | 2 |
Interest cost | 28 |  |  | 28 |  |  | 9 |  |  | 8 |
Expected return on assets | (28) |  |  | (29) |  |  | (16) |  |  | (15) |
Amortization of: |  |  |  |  |  |  |
Prior service cost | — |  |  | 1 |  |  | — |  |  | — |
Actuarial gain | — |  |  | — |  |  | (2) |  |  | (2) |
Special termination benefits | — |  |  | — |  |  | (1) |  |  | 23 |
Net periodic benefit cost (credit) | 20 |  |  | 19 |  |  | (7) |  |  | 16 |
Regulatory adjustments | (18) |  |  | 25 |  |  | 7 |  |  | (16) |
Total expense recognized | $ | 2 |  |  | $ | 44 |  |  | $ | — |  |  | $ | — |
NET PERIODIC BENEFIT COST (CONTINUED)
(Dollars in millions)
| Pension |  | PBOP
| Six months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Sempra: |  |  |  |  |  |  |
Service cost | $ | 67 |  |  | $ | 64 |  |  | $ | 7 |  |  | $ | 7 |
Interest cost | 89 |  |  | 90 |  |  | 22 |  |  | 19 |
Expected return on assets | (90) |  |  | (89) |  |  | (37) |  |  | (33) |
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 2 |  |  | 2 |  |  | (1) |  |  | (1) |
Actuarial loss (gain) | 4 |  |  | 6 |  |  | (5) |  |  | (6) |
Settlement charges | — |  |  | 4 |  |  | — |  |  | — |
Special termination benefits | — |  |  | — |  |  | 19 |  |  | 40 |
Net periodic benefit cost | 72 |  |  | 77 |  |  | 5 |  |  | 26 |
Regulatory adjustments | (44) |  |  | (1) |  |  | (5) |  |  | (23) |
Total expense recognized | $ | 28 |  |  | $ | 76 |  |  | $ | — |  |  | $ | 3 |
SDG&E: |  |  |  |  |  |  |
Service cost | $ | 21 |  |  | $ | 19 |  |  | $ | 1 |  |  | $ | 1 |
Interest cost | 24 |  |  | 24 |  |  | 4 |  |  | 4 |
Expected return on assets | (26) |  |  | (24) |  |  | (4) |  |  | (4) |
Amortization of: |  |  |  |  |  |  |
Actuarial loss (gain) | 1 |  |  | 2 |  |  | (1) |  |  | (1) |
Special termination benefits | — |  |  | — |  |  | 8 |  |  | 17 |
Net periodic benefit cost | 20 |  |  | 21 |  |  | 8 |  |  | 17 |
Regulatory adjustments | (8) |  |  | (8) |  |  | (8) |  |  | (14) |
Total expense recognized | $ | 12 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 3 |
SoCalGas: |  |  |  |  |  |  |
Service cost | $ | 39 |  |  | $ | 38 |  |  | $ | 5 |  |  | $ | 5 |
Interest cost | 56 |  |  | 56 |  |  | 17 |  |  | 15 |
Expected return on assets | (58) |  |  | (59) |  |  | (31) |  |  | (29) |
Amortization of: |  |  |  |  |  |  |
Prior service cost (credit) | 1 |  |  | 2 |  |  | (1) |  |  | (1) |
Actuarial loss (gain) | — |  |  | 1 |  |  | (4) |  |  | (4) |
Settlement charges | — |  |  | 4 |  |  | — |  |  | — |
Special termination benefits | — |  |  | — |  |  | 11 |  |  | 23 |
Net periodic benefit cost (credit) | 38 |  |  | 42 |  |  | (3) |  |  | 9 |
Regulatory adjustments | (36) |  |  | 7 |  |  | 3 |  |  | (9) |
Total expense recognized | $ | 2 |  |  | $ | 49 |  |  | $ | — |  |  | $ | — |
Schedule of Other Nonoperating Income (Expense) |
OTHER INCOME (EXPENSE), NET
(Dollars in millions)
| Three months ended June 30, |  | Six months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Sempra: |  |  |  |  |  |  |
AFUDC equity | $ | 38 |  |  | $ | 46 |  |  | $ | 80 |  |  | $ | 87 |
Investment gains, net(1) | 25 |  |  | 23 |  |  | 26 |  |  | 25 |
Losses on foreign exchange instruments, net | (41) |  |  | (1) |  |  | (32) |  |  | (1) |
Foreign currency transaction gains, net | 7 |  |  | 2 |  |  | 6 |  |  | 6 |
Non-service components of net periodic benefit cost | 17 |  |  | (31) |  |  | 46 |  |  | (8) |
Interest on regulatory balancing accounts, net | 23 |  |  | 20 |  |  | 42 |  |  | 41 |
Sundry, net | (2) |  |  | — |  |  | (1) |  |  | — |
Total | $ | 67 |  |  | $ | 59 |  |  | $ | 167 |  |  | $ | 150 |
SDG&E: |  |  |  |  |  |  |
AFUDC equity | $ | 16 |  |  | $ | 23 |  |  | $ | 33 |  |  | $ | 42 |
Non-service components of net periodic benefit cost | (1) |  |  | (5) |  |  | 10 |  |  | 4 |
Interest on regulatory balancing accounts, net | 13 |  |  | 15 |  |  | 25 |  |  | 26 |
Sundry, net | (4) |  |  | (2) |  |  | (6) |  |  | (1) |
Total | $ | 24 |  |  | $ | 31 |  |  | $ | 62 |  |  | $ | 71 |
SoCalGas: |  |  |  |  |  |  |
AFUDC equity | $ | 15 |  |  | $ | 18 |  |  | $ | 30 |  |  | $ | 36 |
Non-service components of net periodic benefit cost | 21 |  |  | (23) |  |  | 42 |  |  | (6) |
Interest on regulatory balancing accounts, net | 10 |  |  | 5 |  |  | 17 |  |  | 15 |
Sundry, net | (5) |  |  | (2) |  |  | (5) |  |  | (5) |
Total | $ | 41 |  |  | $ | (2) |  |  | $ | 84 |  |  | $ | 40 |
(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 |
INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
| Three months ended June 30, |  | Six months ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Sempra: |  |  |  |  |  |  |
Income tax expense | $ | 112 |  |  | $ | 172 |  |  | $ | 177 |  |  | $ | 229 |
Income before income taxes and equity earnings | $ | 507 |  |  | $ | 298 |  |  | $ | 1,355 |  |  | $ | 949 |
Equity earnings, before income tax(1) | 167 |  |  | 169 |  |  | 315 |  |  | 310 |
Pretax income | $ | 674 |  |  | $ | 467 |  |  | $ | 1,670 |  |  | $ | 1,259 |
Effective income tax rate | 17 | % |  | 37 | % |  | 11 | % |  | 18 | %
SDG&E: |  |  |  |  |  |  |
Income tax expense | $ | 39 |  |  | $ | 7 |  |  | $ | 108 |  |  | $ | 21 |
Income before income taxes | $ | 229 |  |  | $ | 182 |  |  | $ | 594 |  |  | $ | 477 |
Effective income tax rate | 17 | % |  | 4 | % |  | 18 | % |  | 4 | %
SoCalGas: |  |  |  |  |  |  |
Income tax expense | $ | — |  |  | $ | 6 |  |  | $ | 20 |  |  | $ | 44 |
Income before income taxes | $ | 108 |  |  | $ | 91 |  |  | $ | 552 |  |  | $ | 572 |
Effective income tax rate | — | % |  | 7 | % |  | 4 | % |  | 8 | %
(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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