Efficient Financing & Incremental Investment Opportunities
2020 AND 2017 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) in 2020 and 2017 as follows:
Year ended December 31, 2020:
•
$(233) million from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at SoCal Gas
$(1) million impact from foreign currency and inflation and associated undesignated derivatives¹
$9 million net unrealized gains on commodity derivatives
$(100) million equity losses at RBS Sempra Commodities LLP, which represent an estimate of our obligations to settle pending tax matters and related legal costs
at our equity method investment at Parent and Other
$1,747 million gain on the sale of our South American businesses
Year ended December 31, 2017:
•
•
$(25) million impact from foreign currency and inflation and associated undesignated derivatives¹
$4 million net unrealized gains on commodity derivatives
$(208) million write-off of wildfire regulatory asset at SDG&E
$(20) million associated with Aliso Canyon litigation reserves at SoCalGas
$(47) million impairment of Termoeléctrica de Mexicali (TdM) assets held for sale
$5 million deferred income tax benefit on the TdM assets held for sale
$(870) million income tax expense from the impact of the Tax Cuts and Jobs Act of 2017 (TCJA)
$28 million of recoveries related to 2016 permanent releases of pipeline capacity at Sempra LNG
Sempra Adjusted Earnings, Weighted-Average Common Shares Outstanding – Adjusted 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
effects and associated undesignated derivatives and 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, Weighted-Average Common Shares Outstanding - GAAP and GAAP EPS, which we consider to be the most directly
comparable financial measures calculated in accordance with GAAP.
1.
Amounts include impacts recorded in equity earnings from our unconsolidated equity method investments.
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