| Schedule I - Condensed Financial Information of Parent |
| | | | | | | | | | | | | | | | | | | SEMPRA | | CONDENSED STATEMENTS OF OPERATIONS | | (Dollars in millions, except per share amounts; shares in thousands) | | | Years ended December 31, | | | 2023 | | 2022 | | 2021 | | Interest income | $ | 31 | | | $ | 35 | | | $ | 11 | | | Interest expense | (444) | | | (326) | | | (576) | | | Operating expenses | (101) | | | (92) | | | (92) | | | Other income (expense), net | 31 | | | (58) | | | 20 | | | Income tax benefit | 134 | | | 111 | | | 190 | | | Loss before equity in earnings of subsidiaries | (349) | | | (330) | | | (447) | | | Equity in earnings of subsidiaries, net of income taxes | 3,423 | | | 2,468 | | | 1,764 | | | Net income | 3,074 | | | 2,138 | | | 1,317 | | | Preferred dividends | (44) | | | (44) | | | (63) | | | Earnings | $ | 3,030 | | | $ | 2,094 | | | $ | 1,254 | | | | | | | | | Basic EPS: | | | | | | | Earnings | $ | 4.81 | | | $ | 3.32 | | | $ | 2.01 | | | Weighted-average common shares outstanding | 630,296 | | | 630,318 | | | 623,510 | | | | | | | | | Diluted EPS: | | | | | | | Earnings | $ | 4.79 | | | $ | 3.31 | | | $ | 2.01 | | | Weighted-average common shares outstanding | 632,733 | | | 632,757 | | | 626,073 | |
See Notes to Condensed Financial Information of Parent. | | | | | | | | | | | | | | | | | | | SEMPRA | | CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | | (Dollars in millions) | | | Years ended December 31, 2023, 2022 and 2021 | | | Pretax
amount | | Income tax benefit (expense) | | Net-of-tax
amount | | 2023: | | | | | | | Net income | $ | 2,940 | | | $ | 134 | | | $ | 3,074 | | | Other comprehensive income (loss): | | | | | | | Foreign currency translation adjustments | 23 | | | — | | | 23 | | | Financial instruments | 57 | | | (18) | | | 39 | | | Pension and other postretirement benefits | (39) | | | 8 | | | (31) | | | Total other comprehensive income | 41 | | | (10) | | | 31 | | | Comprehensive income | $ | 2,981 | | | $ | 124 | | | $ | 3,105 | | | 2022: | | | | | | | Net income | $ | 2,027 | | | $ | 111 | | | $ | 2,138 | | | Other comprehensive income (loss): | | | | | | | Foreign currency translation adjustments | 11 | | | — | | | 11 | | | Financial instruments | 221 | | | (55) | | | 166 | | | Pension and other postretirement benefits | 3 | | | (6) | | | (3) | | | Total other comprehensive income | 235 | | | (61) | | | 174 | | | Comprehensive income | $ | 2,262 | | | $ | 50 | | | $ | 2,312 | | | 2021: | | | | | | | Net income | $ | 1,127 | | | $ | 190 | | | $ | 1,317 | | | Other comprehensive income (loss): | | | | | | | Foreign currency translation adjustments | (6) | | | — | | | (6) | | | Financial instruments | 191 | | | (47) | | | 144 | | | Pension and other postretirement benefits | 28 | | | (6) | | | 22 | | | Total other comprehensive income | 213 | | | (53) | | | 160 | | | Comprehensive income | $ | 1,340 | | | $ | 137 | | | $ | 1,477 | |
See Notes to Condensed Financial Information of Parent. | | | | | | | | | | | | | SEMPRA | | CONDENSED BALANCE SHEETS | | (Dollars in millions) | | December 31, | | | 2023 | | 2022 | | Assets: | | | | | Cash and cash equivalents | $ | 3 | | | $ | 219 | | | Restricted cash | 2 | | | 1 | | | Due from affiliates | 105 | | | 102 | | | Income taxes receivable, net | — | | | 104 | | | Other current assets | 11 | | | 17 | | | Total current assets | 121 | | | 443 | | | | | | | Investments in subsidiaries | 38,499 | | | 35,209 | | | Due from affiliates | 18 | | | 20 | | | Deferred income taxes | 429 | | | 233 | | | Other long-term assets | 1,095 | | | 1,050 | | | Total assets | $ | 40,162 | | | $ | 36,955 | | | | | | | Liabilities and shareholders’ equity: | | | | | Short-term debt | $ | 365 | | | $ | 454 | | | Due to affiliates | 235 | | | 226 | | | Other current liabilities | 819 | | | 566 | | | Total current liabilities | 1,419 | | | 1,246 | | | | | | | Long-term debt | 8,461 | | | 7,215 | | | Due to affiliates | 988 | | | 776 | | | Other long-term liabilities | 619 | | | 603 | | | | | | | Commitments and contingencies (Note 4) | | | | | | | | | Shareholders’ equity | 28,675 | | | 27,115 | | | Total liabilities and shareholders’ equity | $ | 40,162 | | | $ | 36,955 | |
See Notes to Condensed Financial Information of Parent. | | | | | | | | | | | | | | | | | | | SEMPRA | | CONDENSED STATEMENTS OF CASH FLOWS | | (Dollars in millions) | | | Years ended December 31, | | | 2023 | | 2022 | | 2021 | | Net cash provided by (used in) operating activities | $ | 1,576 | | | $ | 775 | | | $ | (255) | | | | | | | | | Expenditures for property, plant and equipment | (5) | | | (7) | | | (8) | | | Proceeds from sale of assets | 2 | | | — | | | — | | | Capital contributions to investees | (1,749) | | | (661) | | | (1,005) | | | Disbursement for note receivable | — | | | — | | | (305) | | | Distributions from investments | 108 | | | — | | | 1,552 | | | Purchases of trust assets | (78) | | | (114) | | | — | | | Proceeds from sales of trust assets | 69 | | | 123 | | | — | | | Increase in loans to affiliates, net | (90) | | | (92) | | | (20) | | | Other | (1) | | | (3) | | | — | | | Net cash (used in) provided by investing activities | (1,744) | | | (754) | | | 214 | | | | | | | | | Common dividends paid | (1,483) | | | (1,430) | | | (1,331) | | | Preferred dividends paid | (44) | | | (44) | | | (99) | | | Issuances of common stock, net | 145 | | | 4 | | | 5 | | | Repurchases of common stock | (32) | | | (478) | | | (339) | | | Issuances of debt (maturities greater than 90 days) | 1,918 | | | 1,569 | | | 990 | | | Payments on debt (maturities greater than 90 days) | (672) | | | (322) | | | (3,200) | | | (Decrease) increase in short-term debt | (89) | | | (785) | | | 1,240 | | | Increase (decrease) in loans from affiliates, net | 220 | | | (226) | | | 1,092 | | | Purchases of noncontrolling interests | — | | | — | | | (217) | | | Proceeds from sale of noncontrolling interests | — | | | 1,732 | | | 1,846 | | | Make-whole premiums related to early redemptions of debt | — | | | — | | | (121) | | | Other | (10) | | | (8) | | | (2) | | | Net cash (used in) provided by financing activities | (47) | | | 12 | | | (136) | | | | | | | | | Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | | | (1) | | | (1) | | | | | | | | | (Decrease) increase in cash, cash equivalents and restricted cash | (215) | | | 32 | | | (178) | | | Cash, cash equivalents and restricted cash, January 1 | 220 | | | 188 | | | 366 | | | Cash, cash equivalents and restricted cash, December 31 | $ | 5 | | | $ | 220 | | | $ | 188 | | | | | | | | | SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | | | | | | | Issuance of common stock in exchange for NCI and related AOCI | $ | — | | | $ | — | | | $ | 1,373 | | | Conversion of mandatory convertible preferred stock | — | | | — | | | 2,258 | | | Preferred dividends declared but not paid | 11 | | | 11 | | | 11 | | | Common dividends declared but not paid | 376 | | | 360 | | | 349 | | | Equitization of amounts due from affiliates | 92 | | | 93 | | | 4,351 | | | Interest capitalized to note receivable from unconsolidated affiliates | 16 | | | 18 | | | — | |
See Notes to Condensed Financial Information of Parent. BASIS OF PRESENTATIONThe condensed financial information of Sempra has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04. We apply the same accounting policies as in the consolidated financial statements of Sempra, except that Sempra accounts for the earnings of its subsidiaries under the equity method in this unconsolidated financial information. This financial information should be read in conjunction with Sempra’s consolidated financial statements and the accompanying notes thereto included in this Form 10-K. Sempra received cash dividends from its subsidiaries totaling $1,900 million, $832 million and $375 million in 2023, 2022 and 2021, respectively. NEW ACCOUNTING STANDARDSWe describe in Note 2 of the Notes to Consolidated Financial Statements recent pronouncements that have had or may have a significant effect on Sempra’s results of operations, financial condition, cash flows or disclosures. DEBT AND CREDIT FACILITYSHORT-TERM DEBT Committed Line of Credit At December 31, 2023, Sempra had capacity of $4,000 million under a committed line of credit, which provides liquidity and supports its commercial paper program, with available unused credit of $3,634 million before reductions of any unamortized discounts. The principal terms of Sempra’s committed line of credit include the following: ▪The facility has a syndicate of 23 lenders. No single lender has greater than a 6% share in the facility. ▪The facility provides for the issuance of $200 million of letters of credit. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, Sempra has the right to increase its letter of credit commitment to up to $500 million. No letters of credit were outstanding at December 31, 2023. ▪Borrowings bear interest at a benchmark rate plus a margin that varies with Sempra’s credit rating. ▪Sempra must maintain a ratio of indebtedness to total capitalization (as defined in its credit facility) of no more than 65% at the end of each quarter. At December 31, 2023, Sempra was in compliance with this ratio under its credit facility. LONG-TERM DEBT The following table shows the detail and maturities of uncollateralized long-term debt outstanding. | | | | | | | | | | | | | LONG-TERM DEBT | | (Dollars in millions) | | December 31, | | | 2023 | | 2022 | 3.3% Notes April 1, 2025 | $ | 750 | | | $ | 750 | | 5.40% Notes August 1, 2026 | 550 | | | — | | 3.25% Notes June 15, 2027 | 750 | | | 750 | | 3.4% Notes February 1, 2028 | 1,000 | | | 1,000 | | 3.7% Notes April 1, 2029 | 500 | | | 500 | | 5.50% Notes August 1, 2033 | 700 | | | — | | 3.8% Notes February 1, 2038 | 1,000 | | | 1,000 | | 6% Notes October 15, 2039 | 750 | | | 750 | | 4% Notes February 1, 2048 | 800 | | | 800 | | 4.125% Junior Subordinated Notes April 1, 2052(1) | 1,000 | | | 1,000 | | 5.75% Junior Subordinated Notes July 1, 2079(1) | 758 | | | 758 | | | | 8,558 | | | 7,308 | | | Unamortized discount on long-term debt | (29) | | | (28) | | | Unamortized debt issuance costs | (68) | | | (65) | | | Total long-term debt | $ | 8,461 | | | $ | 7,215 | |
(1) Callable long-term debt not subject to make-whole provisions.
In June 2023, Sempra issued $550 million aggregate principal amount of 5.40% senior unsecured notes due in full upon maturity on August 1, 2026 and received proceeds of $545 million (net of debt discount, underwriting discounts and debt issuance costs of $5 million), and $700 million aggregate principal amount of 5.50% senior unsecured notes due in full upon maturity on August 1, 2033 and received proceeds of $692 million (net of debt discount, underwriting discounts and debt issuance costs of $8 million). Each series of notes is redeemable prior to maturity, subject to its terms, and in certain circumstances subject to make-whole provisions. We used the net proceeds for general corporate purposes, including repayment of commercial paper and other indebtedness. At December 31, 2023, scheduled maturities of Sempra’s long-term debt are $750 million in 2025, $550 million in 2026, $750 million in 2027, $1.0 billion in 2028 and $5.5 billion thereafter. Additional information on Sempra’s short-term and long-term debt is provided in Note 7 of the Notes to Consolidated Financial Statements. COMMITMENTS AND CONTINGENCIESAt December 31, 2023, Sempra has an operating lease commitment related to its corporate headquarters building of approximately $228 million. Sempra expects payments for its operating lease to be $12 million in each of 2024 through 2026, $13 million in each of 2027 and 2028 and $166 million thereafter. For other contingencies and guarantees related to Sempra, refer to Notes 6 and 16 of the Notes to Consolidated Financial Statements.
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