GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables)
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3 Months Ended |
Mar. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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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. | | | | | | | | | RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (Dollars in millions) | | March 31, 2023 | December 31, 2022 | Cash and cash equivalents | $ | 534 | | $ | 370 | | Restricted cash, current | 85 | | 40 | | Restricted cash, noncurrent | 84 | | 52 | | Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | $ | 703 | | $ | 462 | |
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Accounts Receivable, Allowance for Credit Loss Table |
We provide below the changes in allowances for credit losses for trade receivables and other receivables. SDG&E and SoCalGas record changes in the allowances for credit losses related to Accounts Receivable – Trade in regulatory accounts. | | | | | | | | | CHANGES IN ALLOWANCES FOR CREDIT LOSSES | (Dollars in millions) | | | 2023 | 2022 | Sempra: | | | Allowances for credit losses at January 1 | $ | 181 | | $ | 136 | | Provisions for expected credit losses | 117 | | 48 | | Write-offs | (20) | | (19) | | Allowances for credit losses at March 31 | $ | 278 | | $ | 165 | | SDG&E: | | | Allowances for credit losses at January 1 | $ | 78 | | $ | 66 | | Provisions for expected credit losses | 38 | | 21 | | Write-offs | (11) | | (9) | | Allowances for credit losses at March 31 | $ | 105 | | $ | 78 | | SoCalGas: | | | Allowances for credit losses at January 1 | $ | 98 | | $ | 69 | | Provisions for expected credit losses | 77 | | 26 | | Write-offs | (9) | | (10) | | Allowances for credit losses at March 31 | $ | 166 | | $ | 85 | |
Allowances for credit losses related to trade receivables and other receivables are included in the Condensed Consolidated Balance Sheets as follows: | | | | | | | | | ALLOWANCES FOR CREDIT LOSSES | | (Dollars in millions) | | | March 31, | December 31, | | 2023 | 2022 | Sempra: | | | Accounts receivable – trade, net | $ | 238 | | $ | 140 | | Accounts receivable – other, net | 40 | | 40 | | Other long-term assets | — | | 1 | | Total allowances for credit losses | $ | 278 | | $ | 181 | | SDG&E: | | | Accounts receivable – trade, net | $ | 80 | | $ | 52 | | Accounts receivable – other, net | 25 | | 25 | | Other long-term assets | — | | 1 | | Total allowances for credit losses | $ | 105 | | $ | 78 | | SoCalGas: | | | Accounts receivable – trade, net | $ | 151 | | $ | 83 | | Accounts receivable – other, net | 15 | | 15 | | Total allowances for credit losses | $ | 166 | | $ | 98 | |
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Inventory Table |
The components of inventories are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INVENTORY BALANCES | (Dollars in millions) | | Sempra | | SDG&E | | SoCalGas | | March 31, 2023 | | December 31, 2022 | | March 31, 2023 | | December 31, 2022 | | March 31, 2023 | | December 31, 2022 | Natural gas | $ | 41 | | | $ | 106 | | | $ | 1 | | | $ | 1 | | | $ | 24 | | | $ | 74 | | LNG | 7 | | | 62 | | | — | | | — | | | — | | | — | | Materials and supplies | 267 | | | 235 | | | 142 | | | 133 | | | 106 | | | 85 | | Total | $ | 315 | | | $ | 403 | | | $ | 143 | | | $ | 134 | | | $ | 130 | | | $ | 159 | |
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Capitalized Financing Costs Table |
The table below summarizes capitalized financing costs, comprised of AFUDC and capitalized interest. | | | | | | | | | | | | | | | | CAPITALIZED FINANCING COSTS | (Dollars in millions) | | | | Three months ended March 31, | | | | | | 2023 | | 2022 | Sempra | | | | | $ | 73 | | | $ | 57 | | SDG&E | | | | | 31 | | | 28 | | SoCalGas | | | | | 15 | | | 18 | |
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Net Periodic Benefit Cost Table |
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 the Other Income, Net, table below. | | | | | | | | | | | | | | | | | | | | | | | | NET PERIODIC BENEFIT COST – SEMPRA | (Dollars in millions) | | Pension | | PBOP | | Three months ended March 31, | | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost | $ | 28 | | | $ | 41 | | | $ | 4 | | | $ | 7 | | Interest cost | 40 | | | 30 | | | 9 | | | 7 | | Expected return on assets | (43) | | | (46) | | | (17) | | | (16) | | Amortization of: | | | | | | | | Prior service cost (credit) | 1 | | | 3 | | | (1) | | | (1) | | Actuarial loss (gain) | 2 | | | 6 | | | (6) | | | (4) | | Net periodic benefit cost (credit) | 28 | | | 34 | | | (11) | | | (7) | | Regulatory adjustments | 29 | | | (27) | | | 11 | | | 7 | | Total expense recognized | $ | 57 | | | $ | 7 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | NET PERIODIC BENEFIT COST – SDG&E | (Dollars in millions) | | Pension | | PBOP | | Three months ended March 31, | | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost | $ | 8 | | | $ | 10 | | | $ | 1 | | | $ | 2 | | Interest cost | 10 | | | 7 | | | 2 | | | 1 | | Expected return on assets | (10) | | | (11) | | | (2) | | | (2) | | Amortization of: | | | | | | | | Actuarial loss (gain) | 1 | | | — | | | (1) | | | (1) | | Net periodic benefit cost | 9 | | | 6 | | | — | | | — | | Regulatory adjustments | 4 | | | (5) | | | — | | | — | | Total expense recognized | $ | 13 | | | $ | 1 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | NET PERIODIC BENEFIT COST – SOCALGAS | (Dollars in millions) | | Pension | | PBOP | | Three months ended March 31, | | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost | $ | 17 | | | $ | 28 | | | $ | 3 | | | $ | 5 | | Interest cost | 25 | | | 20 | | | 7 | | | 5 | | Expected return on assets | (29) | | | (31) | | | (15) | | | (13) | | Amortization of: | | | | | | | | Prior service cost (credit) | 1 | | | 2 | | | (1) | | | (1) | | Actuarial loss (gain) | — | | | 4 | | | (5) | | | (3) | | Net periodic benefit cost (credit) | 14 | | | 23 | | | (11) | | | (7) | | Regulatory adjustments | 25 | | | (22) | | | 11 | | | 7 | | Total expense recognized | $ | 39 | | | $ | 1 | | | $ | — | | | $ | — | |
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Earnings Per Share Computations Table |
Basic EPS is calculated by dividing earnings attributable to common shares by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | | | | | | | | | | | | | | | | EARNINGS PER COMMON SHARE COMPUTATIONS | | | | | | | | (Dollars in millions, except per share amounts; shares in thousands) | | | | | | | | | | | Three months ended March 31, | | | | | | 2023 | | 2022 | Numerator: | | | | | | | | Earnings attributable to common shares | | | | | $ | 969 | | | $ | 612 | | | | | | | | | | Denominator: | | | | | | | | Weighted-average common shares outstanding for basic EPS(1) | | | | | 314,919 | | | 316,353 | | Dilutive effect of stock options and RSUs(2) | | | | | 1,205 | | | 1,081 | | Weighted-average common shares outstanding for diluted EPS | | | | | 316,124 | | | 317,434 | | | | | | | | | | EPS: | | | | | | | | Basic | | | | | $ | 3.08 | | | $ | 1.93 | | Diluted | | | | | $ | 3.07 | | | $ | 1.93 | |
(1) Includes 360 and 407 fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2023 and 2022, respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (2) Due to market fluctuations of both Sempra common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period.
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Schedule of Accumulated Other Comprehensive Income (Loss) Table |
The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding 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 accumulated other comprehensive income (loss) | | Three months ended March 31, 2023 and 2022 | Sempra: | | | | | | | | Balance at December 31, 2022 | $ | (59) | | | $ | 10 | | | $ | (86) | | | $ | (135) | | OCI before reclassifications | 10 | | | (40) | | | (13) | | | (43) | | Amounts reclassified from AOCI | — | | | (5) | | | 1 | | | (4) | | Net OCI | 10 | | | (45) | | | (12) | | | (47) | | Balance at March 31, 2023 | $ | (49) | | | $ | (35) | | | $ | (98) | | | $ | (182) | | | | | | | | | | Balance at December 31, 2021 | $ | (79) | | | $ | (156) | | | $ | (83) | | | $ | (318) | | OCI before reclassifications | 3 | | | 74 | | | 6 | | | 83 | | Amounts reclassified from AOCI | — | | | 4 | | | 2 | | | 6 | | Net OCI | 3 | | | 78 | | | 8 | | | 89 | | Balance at March 31, 2022 | $ | (76) | | | $ | (78) | | | $ | (75) | | | $ | (229) | | SDG&E: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2022 and March 31, 2023 | | | | | $ | (7) | | | $ | (7) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2021 and March 31, 2022 | | | | | $ | (10) | | | $ | (10) | | SoCalGas: | | | | | | | | Balance at December 31, 2022 | | | $ | (12) | | | $ | (12) | | | $ | (24) | | | | | | | | | | Amounts reclassified from AOCI | | | — | | | 1 | | | 1 | | Net OCI | | | — | | | 1 | | | 1 | | Balance at March 31, 2023 | | | $ | (12) | | | $ | (11) | | | $ | (23) | | | | | | | | | | Balance at December 31, 2021 | | | $ | (13) | | | $ | (18) | | | $ | (31) | | Amounts reclassified from AOCI | | | — | | | 1 | | | 1 | | Net OCI | | | — | | | 1 | | | 1 | | Balance at March 31, 2022 | | | $ | (13) | | | $ | (17) | | | $ | (30) | |
(1) All amounts are net of income tax, if subject to tax, and exclude NCI.
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Reclassifications out of AOCI Table |
| | | | | | | | | | | | | | | | | | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (Dollars in millions) | Details about accumulated other comprehensive income (loss) components | Amounts reclassified from accumulated other comprehensive income (loss) | | Affected line item on Condensed Consolidated Statements of Operations | | Three months ended March 31, | | | | 2023 | | 2022 | | | Sempra: | | | | | | Financial instruments: | | | | | | Interest rate instruments | $ | — | | | $ | (1) | | | Interest Expense | Interest rate instruments | (7) | | | 14 | | | Equity Earnings(1) | Foreign exchange instruments | — | | | (1) | | | Revenues: Energy-Related Businesses | | 1 | | | — | | | Other Income, Net | Foreign exchange instruments | 1 | | | (1) | | | Equity Earnings(1) | | | | | | | Interest rate and foreign exchange instruments | (6) | | | (6) | | | Other Income, Net | Total, before income tax | (11) | | | 5 | | | | | 3 | | | (1) | | | Income Tax Expense | Total, net of income tax | (8) | | | 4 | | | | | 3 | | | — | | | Earnings Attributable to Noncontrolling Interests | | $ | (5) | | | $ | 4 | | | | Pension and PBOP(2): | | | | | | Amortization of actuarial loss | $ | — | | | $ | 2 | | | Other Income, Net | Amortization of prior service cost | 1 | | | 1 | | | Other Income, Net | | | | | | | Total, before income tax | 1 | | | 3 | | | | | — | | | (1) | | | Income Tax Expense | Total, net of income tax | $ | 1 | | | $ | 2 | | | | | | | | | | Total reclassifications for the period, net of income tax and after NCI | $ | (4) | | | $ | 6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SoCalGas: | | | | | | | | | | | | | | | | | | Pension and PBOP(2): | | | | | | Amortization of actuarial loss | $ | — | | | $ | 1 | | | Other (Expense) Income, Net | Amortization of prior service cost | 1 | | | — | | | Other (Expense) Income, Net | | | | | | | | | | | | | | | | | | | | | | | | | Total reclassifications for the period, net of income tax | $ | 1 | | | $ | 1 | | | |
(1) Equity earnings at 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” above).
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Ownership Interests Held By Others Table |
The following table provides information about NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra’s Condensed Consolidated Balance Sheets. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | OTHER NONCONTROLLING INTERESTS | (Dollars in millions) | | Percent ownership held by noncontrolling interests | | | Equity held by noncontrolling interests | | March 31, 2023 | | | December 31, 2022 | | | March 31, 2023 | | December 31, 2022 | Sempra Infrastructure: | | | | | | | | | | SI Partners | 30.0 | | % | | 30.0 | | % | | $ | 2,198 | | | $ | 2,060 | | SI Partners subsidiaries(1) | 0.1 - 30.0 | | | 0.1 - 16.6 | | | 360 | | | 61 | | Total Sempra | | | | | | | $ | 2,558 | | | $ | 2,121 | |
(1) SI Partners has subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries.
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Transactions with Affiliates Table |
We summarize amounts due from and to unconsolidated affiliates at Sempra, SDG&E and SoCalGas in the following table. | | | | | | | | | | | | AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES | (Dollars in millions) | | March 31, 2023 | | December 31, 2022 | Sempra: | | | | Tax sharing arrangement with Oncor Holdings | $ | 57 | | | $ | 41 | | Various affiliates | 17 | | | 13 | | Total due from unconsolidated affiliates – current | $ | 74 | | | $ | 54 | | | | | | Sempra Infrastructure(1): | | | | TAG Pipelines Norte, S. de R.L. de C.V. – 5.5% Note due January 9, 2024 | $ | (41) | | | $ | — | | Total due to unconsolidated affiliates – current | $ | (41) | | | $ | — | | | | | | Sempra Infrastructure(1): | | | | TAG Pipelines Norte, S. de R.L. de C.V.: | | | | 5.5% Note due January 9, 2024 | $ | — | | | $ | (40) | | 5.5% Note due January 14, 2025 | (23) | | | (23) | | 5.5% Note due July 16, 2025 | (21) | | | (21) | | 5.5% Note due January 14, 2026 | (19) | | | (19) | | 5.5% Note due July 14, 2026 | (11) | | | (11) | | 5.5% Note due January 19, 2027 | (14) | | | — | | TAG – 5.74% Note due December 17, 2029 | (190) | | | (187) | | Total due to unconsolidated affiliates – noncurrent | $ | (278) | | | $ | (301) | | SDG&E: | | | | | | | | | | | | | | | | Sempra | $ | (52) | | | $ | (49) | | SoCalGas | (75) | | | (72) | | Various affiliates | (16) | | | (14) | | Total due to unconsolidated affiliates – current | $ | (143) | | | $ | (135) | | | | | | Income taxes due (to) from Sempra(2) | $ | (8) | | | $ | 10 | | SoCalGas: | | | | SDG&E | $ | 75 | | | $ | 72 | | Various affiliates | 1 | | | 5 | | Total due from unconsolidated affiliates – current | $ | 76 | | | $ | 77 | | | | | | Sempra | $ | (36) | | | $ | (36) | | Total due to unconsolidated affiliates – current | $ | (36) | | | $ | (36) | | | | | | Income taxes due to Sempra(2) | $ | (25) | | | $ | (16) | |
(1) U.S. dollar-denominated loans at fixed interest rates. Amounts include principal balances 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 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 to/from Sempra. The following table summarizes income statement information from unconsolidated affiliates. | | | | | | | | | | | | | | | | INCOME STATEMENT IMPACT FROM UNCONSOLIDATED AFFILIATES | (Dollars in millions) | | | | Three months ended March 31, | | | | | | 2023 | | 2022 | Sempra: | | | | | | | | Revenues | | | | | $ | 13 | | | $ | 7 | | | | | | | | | | Interest income | | | | | — | | | 10 | | Interest expense | | | | | 4 | | | 4 | | SDG&E: | | | | | | | | Revenues | | | | | $ | 4 | | | $ | 4 | | Cost of sales | | | | | 30 | | | 24 | | SoCalGas: | | | | | | | | Revenues | | | | | $ | 34 | | | $ | 26 | | Cost of sales(1) | | | | | 31 | | | — | |
(1) Includes net commodity costs from natural gas transactions with unconsolidated affiliates.
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Other Income and Expense Table |
Other Income, Net, consists of the following: | | | | | | | | | | | | | | | | OTHER INCOME (EXPENSE), NET | | | | | | | | (Dollars in millions) | | | | | | | | | | | Three months ended March 31, | | | | | | 2023 | | 2022 | Sempra: | | | | | | | | Allowance for equity funds used during construction | | | | | $ | 33 | | | $ | 35 | | Investment gains (losses), net(1) | | | | | 12 | | | (13) | | Gains on interest rate and foreign exchange instruments, net | | | | | 5 | | | 6 | | Foreign currency transaction gains (losses), net(2) | | | | | 1 | | | (19) | | Non-service components of net periodic benefit cost | | | | | (25) | | | 41 | | Interest on regulatory balancing accounts, net | | | | | 18 | | | 1 | | Sundry, net | | | | | (3) | | | (13) | | Total | | | | | $ | 41 | | | $ | 38 | | SDG&E: | | | | | | | | Allowance for equity funds used during construction | | | | | $ | 23 | | | $ | 21 | | Non-service components of net periodic benefit cost | | | | | (4) | | | 11 | | Interest on regulatory balancing accounts, net | | | | | 10 | | | 1 | | Sundry, net | | | | | (1) | | | 1 | | Total | | | | | $ | 28 | | | $ | 34 | | SoCalGas: | | | | | | | | Allowance for equity funds used during construction | | | | | $ | 10 | | | $ | 13 | | Non-service components of net periodic benefit cost | | | | | (19) | | | 32 | | Interest on regulatory balancing accounts, net | | | | | 8 | | | — | | Sundry, net | | | | | (7) | | | (11) | | Total | | | | | $ | (8) | | | $ | 34 | |
(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. (2) Includes losses of $11 in the three months ended March 31, 2022 from translation to U.S. dollars of a Mexican peso-denominated loan to IMG, which are offset by corresponding amounts included in Equity Earnings on the Condensed Consolidated Statement of Operations.
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Income Tax Expense and Effective Income Tax Rates Table |
We provide our calculations of ETRs in the following table. | | | | | | | | | | | | | | | | INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES | (Dollars in millions) | | | | Three months ended March 31, | | | | | | 2023 | | 2022 | Sempra: | | | | | | | | Income tax expense | | | | | $ | 376 | | | $ | 334 | | | | | | | | | | Income before income taxes and equity earnings | | | | | $ | 1,329 | | | $ | 665 | | Equity earnings, before income tax(1) | | | | | 132 | | | 143 | | Pretax income | | | | | $ | 1,461 | | | $ | 808 | | | | | | | | | | Effective income tax rate | | | | | 26 | % | | 41 | % | SDG&E: | | | | | | | | Income tax expense | | | | | $ | 7 | | | $ | 64 | | Income before income taxes | | | | | $ | 265 | | | $ | 298 | | Effective income tax rate | | | | | 3 | % | | 21 | % | SoCalGas: | | | | | | | | Income tax expense | | | | | $ | 94 | | | $ | 84 | | Income before income taxes | | | | | $ | 454 | | | $ | 418 | | Effective income tax rate | | | | | 21 | % | | 20 | % |
(1) We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.
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