Efficient Financing & Incremental Investment Opportunities
2020 AND 2017 ADJUSTED EARNINGS AND ADJUSTED EPS
(UNAUDITED)
1.
234
4.
(Dollars in millions, except per share amounts; shares in thousands)
Sempra GAAP Earnings
Income tax
(benefit)
Pretax amount
expense
Non-
controlling
interests
Income tax
expense
Earnings
Pretax amount
(benefit)
Non-
controlling
interests
Earnings
Year ended December 31, 2020
Year ended December 31, 2017
$
3,764
$
256
Excluded items:
Impacts associated with Aliso Canyon litigation and regulatory matters
$
307
$
Impact from foreign currency and inflation and associated undesignated derivatives²
51
(74) $
(74)
233
$
$
$
24
1
84
(29)
25
Net unrealized gains on commodity derivatives
(9)
2
(2)
(9)
3
(4)
Losses from investment in RBS Sempra Commodities LLP
100
(2,899)
100
1,152
(1,747)
Gain on sale of South American businesses
Write-off of wildfire regulatory asset
Aliso Canyon litigation reserves
Impairment of TdM assets held for sale
Deferred income tax benefit associated with TdM
Recoveries related to 2016 permanent release of pipeline capacity
Impact from TCJA
Sempra Adjusted Earnings³
Diluted EPS:
Sempra GAAP Earnings
Weighted-average common shares outstanding, diluted - GAAP
Sempra GAAP EPS
3
Sempra Adjusted Earnings³
Add back dividends for dilutive series A preferred stock
Sempra Adjusted Earnings for Adjusted EPS³
Weighted-average common shares outstanding, diluted - Adjusted *
Sempra Adjusted EPS³
Sempra GAAP Earnings CAGR (2017 to 2020)
Sempra Adjusted Earnings CAGR (2017 to 2020)
145%
19%
351
20
(143)
208
20
71
(8)
23
(24)
47
(5)
(47)
19
(28)
870
870
$
2,342
$
1,389
$
3,764
292,252
$
12.88
$
2,342
104
$
2,446
$
305,669
8.00
Sempra GAAP EPS CAGR (2017 to 2020)
Sempra Adjusted EPS CAGR (2017 to 2020)
$
256
252,300
$
1.01
$
1,389
$
1,389
252,300
$
5.51
133%
13%
Except for adjustments that are solely income tax, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We did not record an income tax benefit for the equity losses from our investment in RBS Sempra
Commodities LLP because, even though a portion of the liabilities may be deductible under United Kingdom tax law, it is not probable that the deduction will reduce United Kingdom taxes. Income taxes on the impairment of TdM were calculated based on
the applicable statutory rate, including translation from historic to current exchange rates. An income tax benefit of $12 million associated with the 2017 TdM impairment has been fully reserved.
Amounts include impacts recorded in equity earnings from our unconsolidated equity method investments.
Amounts have been updated to reflect the impact from foreign currency and inflation and associated undesignated derivatives and net unrealized gains on commodity derivatives.
In the year ended December 31, 2020, because the assumed conversion of the 6% Mandatory Convertible Preferred Stock, Series A (series A preferred stock) is dilutive for Adjusted Earnings, 13,417 series A preferred stock shares are added
back to the denominator used to calculate Adjusted EPS.
97
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