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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
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)
 Years ended December 31,
 202320222021
Sempra:
Income tax expense$490 $556 $99 
Income before income taxes and equity earnings$2,627 $1,343 $219 
Equity earnings, before income tax(1)
633 666 614 
Pretax income$3,260 $2,009 $833 
Effective income tax rate15 %28 %12 %
SDG&E:
Income tax (benefit) expense$(26)$182 $201 
Income before income taxes$910 $1,097 $1,020 
Effective income tax rate(3)%17 %20 %
SoCalGas:
Income tax (benefit) expense$(5)$138 $(310)
Income (loss) before income taxes$807 $738 $(736)
Effective income tax rate(1)%19 %42 %
(1)    We discuss how we recognize equity earnings in Note 6.
We present in the table below reconciliations of net U.S. statutory federal income tax rates to our ETRs.
RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES
 Years ended December 31,
 202320222021
Sempra:
U.S. federal statutory income tax rate21 %21 %21 %
Foreign exchange and inflation effects(1)
9 9 1 
Utility depreciation3 4 8 
Non-U.S. earnings taxed at rates different from the U.S. statutory income tax rate(2)
1 3 5 
State income taxes, net of federal income tax benefit1 1 (4)
Outside basis differences— 6 9 
Impairment losses— — (1)
Compensation-related items— — (1)
Valuation allowances— (2)1 
Utility self-developed software expenditures(1)— (5)
Allowance for equity funds used during construction(1)(1)(3)
Amortization of excess deferred income taxes(1)(2)(3)
Remeasurement of deferred taxes(1)(3)(4)
Resolution of prior years’ income tax items(2)(2)— 
Noncontrolling interests(3)— (2)
Tax credits(5)(1)— 
Utility repairs expenditures(6)(5)(9)
Other, net— — (1)
Effective income tax rate15 %28 %12 %
SDG&E:
U.S. federal statutory income tax rate21 %21 %21 %
Depreciation5 3 3 
State income taxes, net of federal income tax benefit2 4 5 
Self-developed software expenditures(1)— (1)
Resolution of prior years’ income tax items(1)(2)— 
Amortization of excess deferred income taxes(2)(2)(2)
Allowance for equity funds used during construction(2)(2)(2)
Repairs expenditures(8)(5)(4)
Tax credits(16)— — 
Other, net(1)— — 
Effective income tax rate(3)%17 %20 %
SoCalGas:
U.S. federal statutory income tax rate21 %21 %21 %
Depreciation5 5 (5)
Nondeductible expenditures— 2 — 
Allowance for equity funds used during construction(1)(2)1 
State income taxes, net of federal income tax benefit(2)2 11 
Self-developed software expenditures(2)— 5 
Amortization of excess deferred income taxes(2)(2)2 
Resolution of prior years’ income tax items(6)— — 
Repairs expenditures(14)(6)5 
Other, net— (1)2 
Effective income tax rate(1)%19 %42 %
(1)    Due to fluctuation of the Mexican peso against the U.S. dollar. We record income tax expense (benefit) from the transactional effects of foreign currency and inflation because of appreciation (depreciation) of the Mexican peso. In 2021, we also recognized losses in Other Income, Net, on the Consolidated Statement of Operations from foreign currency derivatives that were partially hedging Sempra Infrastructure’s exposure to movements in the Mexican peso from its controlling interest in IEnova.
(2)    Related to operations in Mexico.
Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries
The table below presents the geographic components of pretax income.
PRETAX INCOME
(Dollars in millions)
 Years ended December 31,
 202320222021
Sempra:
By geographic components:
U.S.$2,678 $1,449 $346 
Non-U.S.582 560 487 
Total(1)
$3,260 $2,009 $833 
(1)    See the Income Tax Expense (Benefit) and Effective Income Tax Rates table above for the calculation of pretax income.
Schedule Of Components Of Income Tax Expense
The components of income tax expense are as follows.
INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
 Years ended December 31,
 202320222021
Sempra:
Current:
U.S. federal$102 $— $— 
U.S. state3 (1)(6)
Non-U.S.208 165 183 
Total313 164 177 
Deferred:
U.S. federal(56)248 (9)
U.S. state18 50 (37)
Non-U.S.225 94 (31)
Total187 392 (77)
Deferred investment tax credits(10)— (1)
Total income tax expense$490 $556 $99 
SDG&E:
Current:
U.S. federal$(156)$76 $35 
U.S. state(5)13 13 
Total(161)89 48 
Deferred:
U.S. federal111 54 99 
U.S. state35 38 54 
Total146 92 153 
Deferred investment tax credits(11)1 — 
Total income tax (benefit) expense$(26)$182 $201 
SoCalGas:
Current:
U.S. federal$(6)$(5)$134 
U.S. state(11)(3)50 
Total(17)(8)184 
Deferred:
U.S. federal22 125 (334)
U.S. state(11)22 (159)
Total11 147 (493)
Deferred investment tax credits1 (1)(1)
Total income tax (benefit) expense$(5)$138 $(310)
Schedule Of Components Of Deferred Tax Assets And Liabilities
The tables below present the components of deferred income taxes:
DEFERRED INCOME TAXES
(Dollars in millions)
 December 31,
 20232022
Sempra:
Deferred income tax liabilities:
Differences in financial and tax bases of fixed assets, investments and other assets(1)
$6,875 $5,533 
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings55 53 
Regulatory balancing accounts727 632 
Right-of-use assets – operating leases211 177 
Property taxes68 60 
Postretirement benefits47 31 
Other deferred income tax liabilities68 55 
Total deferred income tax liabilities8,051 6,541 
Deferred income tax assets:
Tax credits1,468 1,210 
Net operating losses982 579 
Compensation-related items157 144 
Operating lease liabilities179 164 
Other deferred income tax assets96 40 
Bad debt allowance144 48 
Accrued expenses not yet deductible89 92 
Deferred income tax assets before valuation allowances3,115 2,277 
Less: valuation allowances189 192 
Total deferred income tax assets2,926 2,085 
Net deferred income tax liability(2)
$5,125 $4,456 
(1)    In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries.
(2)    At December 31, 2023 and 2022, includes $129 and $135, respectively, recorded as a noncurrent asset and $5,254 and $4,591, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.

DEFERRED INCOME TAXES
(Dollars in millions)
 SDG&ESoCalGas
 December 31,
 2023202220232022
Deferred income tax liabilities:
Differences in financial and tax bases of utility plant and other assets$2,641 $2,157 $2,272 $1,568 
Regulatory balancing accounts418 397 309 236 
Right-of-use assets – operating leases103 79 8 12 
Property taxes43 38 25 21 
Postretirement benefits— — 71 45 
Other deferred income tax liabilities— — 4 — 
Total deferred income tax liabilities3,205 2,671 2,689 1,882 
Deferred income tax assets:
Tax credits7 5 7 2 
Compensation-related items9 9 31 27 
Operating lease liabilities103 79 8 12 
Bad debt allowance37 19 86 23 
Accrued expenses not yet deductible11 10 56 59 
Net operating losses146 — 890 441 
Other deferred income tax assets19 9 25 12 
Total deferred income tax assets332 131 1,103 576 
Net deferred income tax liability$2,873 $2,540 $1,586 $1,306 
Summary of Tax Credit Carryforwards
The following table summarizes our unused NOLs and tax credit carryforwards.
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
Unused amount at December 31, 2023Year expiration begins
Sempra:
U.S. federal:
NOLs(1)
$3,416 2037
General business tax credits(1)
318 2035
Corporate alternative minimum tax credits(1)
389 Indefinite
Foreign tax credits(2)
766 2024
U.S. state(2):
NOLs
6,043 2026
General business tax credits
27 2024
Non-U.S. NOLs(2)
119 2026
SDG&E:
U.S. federal(1):
NOLs$365 Indefinite
U.S. state NOLs(1)
989 2043
SoCalGas:
U.S. federal(1):
NOLs$2,909 Indefinite
General business tax credits4 2042
U.S. state NOLs(1)
3,991 2042
(1)    We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.
(2)    We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as we discuss below.
Summary of Operating Loss Carryforwards
The following table summarizes our unused NOLs and tax credit carryforwards.
NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
Unused amount at December 31, 2023Year expiration begins
Sempra:
U.S. federal:
NOLs(1)
$3,416 2037
General business tax credits(1)
318 2035
Corporate alternative minimum tax credits(1)
389 Indefinite
Foreign tax credits(2)
766 2024
U.S. state(2):
NOLs
6,043 2026
General business tax credits
27 2024
Non-U.S. NOLs(2)
119 2026
SDG&E:
U.S. federal(1):
NOLs$365 Indefinite
U.S. state NOLs(1)
989 2043
SoCalGas:
U.S. federal(1):
NOLs$2,909 Indefinite
General business tax credits4 2042
U.S. state NOLs(1)
3,991 2042
(1)    We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.
(2)    We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as we discuss below.
Summary of Valuation Allowance The following table provides the valuation allowances that we recorded against a portion of our total deferred income tax assets shown above in the “Deferred Income Taxes – Sempra” table.
VALUATION ALLOWANCES
(Dollars in millions)
December 31,
20232022
Sempra:
U.S. federal$108 $115 
U.S. state51 51 
Non-U.S. 30 26 
$189 $192 
Summary of Income Tax Contingencies
Following is a reconciliation of the changes in unrecognized income tax benefits and the potential effect on our ETR for the years ended December 31:
RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
 202320222021
Sempra:
Balance at January 1$278 $304 $99 
Increase in prior period tax positions308 16 3 
Decrease in prior period tax positions(63)(2)(2)
Decrease in current period tax positions(21)— — 
Settlements with tax authorities(16)(43)— 
Expiration of statutes of limitations— (1)— 
Increase in current period tax positions6 4 204 
Balance at December 31$492 $278 $304 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate(1)
$(224)$(117)$(105)
increase the effective tax rate(1)
1 38 34 
SDG&E:
Balance at January 1$14 $14 $13 
Increase in prior period tax positions2 — 1 
Settlements with tax authorities(2)— — 
Balance at December 31$14 $14 $14 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate(1)
$(11)$(11)$(11)
increase the effective tax rate(1)
1 1 1 
SoCalGas:
Balance at January 1$77 $72 $68 
Increase in prior period tax positions1 1 1 
Decrease in prior period tax positions(47)— — 
Increase in current period tax positions— 4 3 
Settlements with tax authorities(2)— — 
Balance at December 31$29 $77 $72 
Of December 31 balance, amounts related to tax positions that if recognized
in future years would
decrease the effective tax rate(1)
$(29)$(67)$(63)
increase the effective tax rate(1)
— 37 33 
(1)    Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above.
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible
It is reasonably possible that within the next 12 months, unrecognized income tax benefits could decrease due to the following:
POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
 December 31,
 202320222021
Sempra: 
Potential resolution of audit issues with various U.S. federal, state and local
and non-U.S. taxing authorities
$242 $8 $8 
SDG&E: 
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
$6 $6 $6 
SoCalGas: 
Potential resolution of audit issues with various U.S. federal, state and local
taxing authorities
$2 $2 $2