Adjusted Earnings and Adjusted EPS Presentation
Adjusted Earnings and Adjusted EPS
(Unaudited)
Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2022 and
2017 as follows:
Year ended December 31, 2022:
•
$(199) million impact associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at Southern California Gas Company
(SoCalGas)
°
$(164) million impact from foreign currency and inflation on our monetary positions in Mexico
•
•
$(355) million net unrealized losses on commodity derivatives
$17 million net unrealized gains on a contingent interest rate swap related to the proposed initial phase of the Port Arthur LNG liquefaction project
(PA LNG Phase 1 project)
$(120) million deferred income tax expense associated with the change in our indefinite reinvestment assertion as a result of progress in obtaining
regulatory approvals necessary to close the sale of a 10% NCI in Sempra Infrastructure Partners (SI Partners) to Abu Dhabi Investment Authority
(ADIA)
Year ended December 31, 2017:
.
°
$(25) million impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$4 million net unrealized gains on commodity derivatives
$(208) million write-off of wildfire regulatory asset at San Diego Gas & Electric Company
$(20) million associated with Aliso Canyon litigation reserves at SoCalGas
$(47) million impairment of Termoeléctrica de Mexicali (TdM) assets that were held for sale until June 2018 at Sempra Infrastructure
$5 million deferred income tax benefit on the TdM assets that were held for sale
$28 million of recoveries related to 2016 permanent releases of pipeline capacity at Sempra Infrastructure
$(870) million income tax expense from the impact of the Tax Cuts and Jobs Act of 2017 (TCJA)
Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United
States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or
are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation on our monetary positions in
Mexico and associated undesignated derivatives and net unrealized gains and losses on commodity derivatives, which we expect to occur in future periods,
and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a
meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary
information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below
reconciles for historical periods these non-GAAP financial measures to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly
comparable financial measures calculated in accordance with GAAP.
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