Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | EDISON INTERNATIONAL | ||
Entity Central Index Key | 827,052 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 325,811,206 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 18.1 | ||
Southern California Edison | |||
Entity Information [Line Items] | |||
Entity Registrant Name | SOUTHERN CALIFORNIA EDISON CO | ||
Entity Central Index Key | 92,103 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 434,888,104 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Total operating revenue | $ 11,524 | $ 13,413 | $ 12,581 | ||
Purchased power and fuel | 4,266 | 5,593 | 4,891 | ||
Operation and maintenance | 2,990 | 3,149 | 3,473 | ||
Depreciation, decommissioning and amortization | 1,919 | 1,720 | 1,622 | ||
Property and other taxes | 336 | 322 | 309 | ||
Impairment and other charges | 5 | 157 | 571 | ||
Total operating expenses | 9,516 | 10,941 | 10,866 | ||
Loss before equity in earnings of subsidiaries | 2,008 | 2,472 | 1,715 | ||
Interest and other income | 174 | 147 | 124 | ||
Interest expense | (555) | (560) | (544) | ||
Other expenses | (59) | (80) | (74) | ||
Income from continuing operations before income taxes | 1,568 | 1,979 | 1,221 | ||
Income tax expense | 486 | 443 | 242 | ||
Income from continuing operations | 1,082 | [1] | 1,536 | [2] | 979 |
Income (loss) from discontinued operations, net | 35 | 185 | 36 | ||
Net income | 1,117 | 1,721 | 1,015 | ||
Preferred and preference stock dividend requirements of utility | 113 | 112 | 100 | ||
Other noncontrolling interests | (16) | (3) | 0 | ||
Income from continuing operations available to common shareholders | 1,020 | 1,612 | 915 | ||
Basic earnings per common share attributable to Edison International common shareholders: | |||||
Income from continuing operations, net of tax | 985 | 1,427 | 879 | ||
Income (loss) from discontinued operations, net | 35 | 185 | 36 | ||
Income from continuing operations available to common shareholders | $ 1,020 | $ 1,612 | $ 915 | ||
Basic earnings per common share attributable to Edison International common shareholders: | |||||
Weighted-average shares of common stock outstanding | 326 | 326 | 326 | ||
Continuing operations (in dollars per share) | $ 3.02 | $ 4.38 | $ 2.70 | ||
Discontinued operations (in dollars per share) | 0.11 | 0.57 | 0.11 | ||
Total (in dollars per share) | $ 3.13 | $ 4.95 | $ 2.81 | ||
Diluted earnings per common share attributable to Edison International common shareholders: | |||||
Weighted-average shares of common stock outstanding, including effect of dilutive securities | 329 | 329 | 329 | ||
Continuing operations (in dollars per share) | $ 2.99 | $ 4.33 | $ 2.67 | ||
Discontinued operations (in dollars per share) | 0.11 | 0.56 | 0.11 | ||
Total (in dollars per share) | 3.10 | 4.89 | 2.78 | ||
Dividends declared per common share | $ 1.7325 | $ 1.4825 | $ 1.3675 | ||
Southern California Edison | |||||
Total operating revenue | $ 11,485 | $ 13,380 | $ 12,562 | ||
Purchased power and fuel | 4,266 | 5,593 | 4,891 | ||
Operation and maintenance | 2,890 | 3,057 | 3,416 | ||
Depreciation, decommissioning and amortization | 1,915 | 1,720 | 1,622 | ||
Property and other taxes | 334 | 318 | 307 | ||
Impairment and other charges | 0 | 163 | 575 | ||
Total operating expenses | 9,405 | 10,851 | 10,811 | ||
Loss before equity in earnings of subsidiaries | 2,080 | 2,529 | 1,751 | ||
Interest and other income | 123 | 122 | 122 | ||
Interest expense | (526) | (533) | (520) | ||
Other expenses | (59) | (79) | (74) | ||
Income from continuing operations before income taxes | 1,618 | 2,039 | 1,279 | ||
Income tax expense | 507 | 474 | 279 | ||
Net income | 1,111 | [3] | 1,565 | [4] | 1,000 |
Preferred and preference stock dividend requirements of utility | 113 | 112 | 100 | ||
Income from continuing operations available to common shareholders | 998 | 1,453 | 900 | ||
Basic earnings per common share attributable to Edison International common shareholders: | |||||
Income from continuing operations available to common shareholders | $ 998 | $ 1,453 | $ 900 | ||
[1] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions, except per-share amounts)Total Fourth Third Second FirstOperating revenue$13,413 $3,114 $4,356 $3,016 $2,926Operating income 2,472 693 874 575 331Income from continuing operations11,536 406 524 382 224Income (loss) from discontinued operations, net185 39 (16) 184 (22)Net income attributable to common shareholders1,612 420 480 536 176Basic earnings (loss) per share: Continuing operations$4.38 $1.17 $1.52 $1.08 $0.61 Discontinued operations0.57 0.12 (0.05) 0.56 (0.07)Total$4.95 $1.29 $1.47 $1.64 $0.54Diluted earnings (loss) per share: Continuing operations$4.33 $1.15 $1.51 $1.07 $0.61 Discontinued operations0.56 0.12 (0.05) 0.56 (0.07)Total$4.89 $1.27 $1.46 $1.63 $0.54Dividends declared per share1.4825 0.4175 0.3550 0.3550 0.3550Common stock prices: High68.74 68.74 59.54 58.24 56.61Low44.74 55.88 54.12 53.63 44.74Close65.48 65.48 55.92 58.11 56.61 | ||||
[2] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. | ||||
[3] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions)Total Fourth Third Second FirstOperating revenue$13,380 $3,104 $4,338 $3,014 $2,924Operating income2,529 715 881 593 342Net income11,565 408 531 392 234Net income available for common stock1,453 380 503 362 208Common dividends declared525 147 126 126 126 | ||||
[4] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Net income | $ 1,117 | $ 1,721 | $ 1,015 | ||
Pension and postretirement benefits other than pensions: | |||||
Net gain (loss) arising during the period plus amortization included in net income (loss) | 1 | (47) | 72 | ||
Prior service cost arising during the period plus amortization included in net loss | 1 | 0 | 0 | ||
Other | 0 | 2 | 2 | ||
Other comprehensive income (loss), net of tax | 2 | (45) | 74 | ||
Comprehensive income | 1,119 | 1,676 | 1,089 | ||
Less: Comprehensive income attributable to noncontrolling interests | 97 | 109 | 100 | ||
Comprehensive income | 1,022 | 1,567 | 989 | ||
Southern California Edison | |||||
Net income | 1,111 | [1] | 1,565 | [2] | 1,000 |
Pension and postretirement benefits other than pensions: | |||||
Net gain (loss) arising during the period plus amortization included in net income (loss) | 5 | (19) | 16 | ||
Prior service cost arising during the period plus amortization included in net loss | 1 | 0 | 0 | ||
Other | 0 | 2 | 2 | ||
Other comprehensive income (loss), net of tax | 6 | (17) | 18 | ||
Comprehensive income | $ 1,117 | $ 1,548 | $ 1,018 | ||
[1] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions)Total Fourth Third Second FirstOperating revenue$13,380 $3,104 $4,338 $3,014 $2,924Operating income2,529 715 881 593 342Net income11,565 408 531 392 234Net income available for common stock1,453 380 503 362 208Common dividends declared525 147 126 126 126 | ||||
[2] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 161 | $ 132 |
Receivables, less allowances for uncollectible accounts at respective dates | 771 | 790 |
Accrued unbilled revenue | 565 | 632 |
Inventory | 267 | 281 |
Derivative assets | 79 | 102 |
Regulatory assets | 560 | 1,254 |
Other current assets | 251 | 376 |
Total current assets | 2,654 | 3,567 |
Nuclear decommissioning trusts | 4,331 | 4,799 |
Other investments | 203 | 207 |
Total investments | 4,534 | 5,006 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 34,945 | 32,859 |
Nonutility property, plant and equipment, less accumulated depreciation | 140 | 122 |
Total property, plant and equipment | 35,085 | 32,981 |
Derivative assets | 84 | 219 |
Regulatory assets | 7,512 | 7,612 |
Other long-term assets | 441 | 349 |
Total long-term assets | 8,037 | 8,180 |
Total assets | 50,310 | 49,734 |
LIABILITIES AND EQUITY | ||
Short-term debt | 695 | 1,291 |
Current portion of long-term debt | 295 | 504 |
Accounts payable | 1,310 | 1,580 |
Accrued taxes | 72 | 81 |
Customer deposits | 242 | 221 |
Derivative liabilities | 218 | 196 |
Regulatory liabilities | 1,128 | 401 |
Other current liabilities | 967 | 1,205 |
Total current liabilities | 4,927 | 5,479 |
Long-term debt | 10,964 | 10,234 |
Deferred income taxes and credits | 7,480 | 6,861 |
Derivative liabilities | 1,100 | 1,052 |
Pensions and benefits | 1,759 | 2,155 |
Asset retirement obligations | 2,764 | 2,821 |
Regulatory liabilities | 5,676 | 5,889 |
Other deferred credits and other long-term liabilities | 2,246 | 2,255 |
Total deferred credits and other liabilities | 21,025 | 21,033 |
Total liabilities | $ 36,916 | $ 36,746 |
Commitments and contingencies (Note 11) | ||
Redeemable noncontrolling interest | $ 6 | $ 6 |
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) and (560,000 shares authorized; 434,888,104 shares issued and outstanding at each date for SCE) | 2,484 | 2,445 |
Accumulated other comprehensive loss | (56) | (58) |
Retained earnings | 8,940 | 8,573 |
Total common shareholders' equity | 11,368 | 10,960 |
Noncontrolling interests – preferred and preference stock of utility | 2,020 | 2,022 |
Total equity | 13,388 | 12,982 |
Total liabilities and equity | 50,310 | 49,734 |
Southern California Edison | ||
ASSETS | ||
Cash and cash equivalents | 26 | 38 |
Receivables, less allowances for uncollectible accounts at respective dates | 724 | 749 |
Accrued unbilled revenue | 564 | 632 |
Inventory | 256 | 275 |
Derivative assets | 79 | 102 |
Regulatory assets | 560 | 1,254 |
Other current assets | 234 | 390 |
Total current assets | 2,443 | 3,440 |
Nuclear decommissioning trusts | 4,331 | 4,799 |
Other investments | 168 | 158 |
Total investments | 4,499 | 4,957 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 34,945 | 32,859 |
Nonutility property, plant and equipment, less accumulated depreciation | 73 | 69 |
Total property, plant and equipment | 35,018 | 32,928 |
Derivative assets | 84 | 219 |
Regulatory assets | 7,512 | 7,612 |
Other long-term assets | 316 | 300 |
Total long-term assets | 7,912 | 8,131 |
Total assets | 49,872 | 49,456 |
LIABILITIES AND EQUITY | ||
Short-term debt | 49 | 667 |
Current portion of long-term debt | 79 | 300 |
Accounts payable | 1,299 | 1,556 |
Accrued taxes | 46 | 87 |
Customer deposits | 242 | 221 |
Derivative liabilities | 218 | 196 |
Regulatory liabilities | 1,128 | 401 |
Other current liabilities | 760 | 1,183 |
Total current liabilities | 3,821 | 4,611 |
Long-term debt | 10,537 | 9,624 |
Deferred income taxes and credits | 9,073 | 8,497 |
Derivative liabilities | 1,100 | 1,052 |
Pensions and benefits | 1,284 | 1,672 |
Asset retirement obligations | 2,762 | 2,819 |
Regulatory liabilities | 5,676 | 5,889 |
Other deferred credits and other long-term liabilities | 1,947 | 2,010 |
Total deferred credits and other liabilities | 21,842 | 21,939 |
Total liabilities | $ 36,200 | $ 36,174 |
Commitments and contingencies (Note 11) | ||
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) and (560,000 shares authorized; 434,888,104 shares issued and outstanding at each date for SCE) | $ 2,168 | $ 2,168 |
Additional paid-in capital | 652 | 618 |
Accumulated other comprehensive loss | (22) | (28) |
Retained earnings | 8,804 | 8,454 |
Total common shareholders' equity | 11,602 | 11,212 |
Noncontrolling interests – preferred and preference stock of utility | 2,070 | 2,070 |
Total equity | 13,672 | 13,282 |
Total liabilities and equity | $ 49,872 | $ 49,456 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables, allowances for uncollectible accounts (in dollars) | $ 62 | $ 68 |
Utility property, plant and equipment, accumulated depreciation (in dollars) | 8,548 | 8,132 |
Nonutility property, plant and equipment, accumulated depreciation (in dollars) | $ 85 | $ 76 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 325,811,206 | 325,811,206 |
Common stock, shares outstanding | 325,811,206 | 325,811,206 |
Southern California Edison | ||
Receivables, allowances for uncollectible accounts (in dollars) | $ 62 | $ 68 |
Utility property, plant and equipment, accumulated depreciation (in dollars) | 8,548 | 8,132 |
Nonutility property, plant and equipment, accumulated depreciation (in dollars) | $ 81 | $ 75 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 560,000,000 | 560,000,000 |
Common stock, shares issued | 434,888,104 | 434,888,104 |
Common stock, shares outstanding | 434,888,104 | 434,888,104 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Cash flows from operating activities: | |||||
Net income | $ 1,117 | $ 1,721 | $ 1,015 | ||
Income (loss) from discontinued operations, net of tax | 35 | 185 | 36 | ||
Income from continuing operations | 1,082 | [1] | 1,536 | [2] | 979 |
Adjustments to reconcile to net cash provided by operating activities: | |||||
Depreciation, decommissioning and amortization | 2,005 | 1,815 | 1,696 | ||
Allowance for equity during construction | (87) | (65) | (72) | ||
Impairment and other charges | 5 | 157 | 571 | ||
Deferred income taxes and investment tax credits | 449 | 522 | 345 | ||
Other | (28) | 20 | 18 | ||
Nuclear decommissioning trusts | (428) | 39 | 76 | ||
EME settlement insurance proceeds and settlement payments | (176) | (225) | 0 | ||
Changes in operating assets and liabilities: | |||||
Receivables | 49 | 64 | (56) | ||
Inventory | 14 | (25) | 80 | ||
Accounts payable | 8 | 14 | 45 | ||
Prepaid and accrued taxes | (28) | (100) | (92) | ||
Other current assets and liabilities | (24) | (103) | (155) | ||
Derivative assets and liabilities, net | 45 | (40) | (30) | ||
Regulatory assets and liabilities, net | 1,729 | (358) | (322) | ||
Other noncurrent assets and liabilities | (106) | (3) | (116) | ||
Net cash provided by operating activities | 4,509 | 3,248 | 2,967 | ||
Cash flows from financing activities: | |||||
Long-term debt issued or remarketed, net of discount and issuance costs | 1,420 | 494 | 2,168 | ||
Long-term debt matured or repurchased | (762) | (607) | (1,017) | ||
Preference stock issued, net | 319 | 269 | 387 | ||
Preference stock redeemed | (325) | 0 | (400) | ||
Short-term debt financing, net | (572) | 1,079 | 32 | ||
Cash contribution from redeemable noncontrolling interest | 17 | 9 | 0 | ||
Dividends to noncontrolling interests | (116) | (111) | (101) | ||
Dividends paid | (544) | (463) | (440) | ||
Other | (25) | (25) | (48) | ||
Net cash (used in) provided by financing activities | (588) | 645 | 581 | ||
Cash flows from investing activities: | |||||
Capital expenditures | (4,225) | (3,906) | (3,599) | ||
Proceeds from sale of nuclear decommissioning trust investments | 3,506 | 2,617 | 1,204 | ||
Purchases of nuclear decommissioning trust investments | (3,132) | (2,661) | (1,302) | ||
Proceeds from sale of assets | 47 | 6 | 181 | ||
Other | (88) | 37 | (56) | ||
Net cash used in investing activities | (3,892) | (3,907) | (3,572) | ||
Net increase (decrease) in cash and cash equivalents | 29 | (14) | (24) | ||
Cash and cash equivalents, beginning of year | 132 | 146 | 170 | ||
Cash and cash equivalents, end of year | 161 | 132 | 146 | ||
Southern California Edison | |||||
Cash flows from operating activities: | |||||
Net income | 1,111 | [3] | 1,565 | [4] | 1,000 |
Adjustments to reconcile to net cash provided by operating activities: | |||||
Depreciation, decommissioning and amortization | 1,996 | 1,810 | 1,694 | ||
Allowance for equity during construction | (87) | (65) | (72) | ||
Impairment and other charges | 0 | 163 | 575 | ||
Deferred income taxes and investment tax credits | 308 | 462 | 420 | ||
Other | 14 | 11 | 14 | ||
Nuclear decommissioning trusts | (428) | 39 | 76 | ||
Changes in operating assets and liabilities: | |||||
Receivables | 25 | 64 | (57) | ||
Inventory | 19 | (19) | 80 | ||
Accounts payable | 30 | 12 | 59 | ||
Prepaid and accrued taxes | (16) | 129 | (93) | ||
Other current assets and liabilities | (42) | (107) | (171) | ||
Derivative assets and liabilities, net | 45 | (40) | (30) | ||
Regulatory assets and liabilities, net | 1,729 | (358) | (322) | ||
Other noncurrent assets and liabilities | (80) | (6) | (125) | ||
Net cash provided by operating activities | 4,624 | 3,660 | 3,048 | ||
Cash flows from financing activities: | |||||
Long-term debt issued or remarketed, net of discount and issuance costs | 1,413 | 498 | 2,168 | ||
Long-term debt matured or repurchased | (761) | (607) | (1,016) | ||
Preference stock issued, net | 319 | 269 | 387 | ||
Preference stock redeemed | (325) | 0 | (400) | ||
Short-term debt financing, net | (619) | 490 | (1) | ||
Dividends paid | (874) | (489) | (587) | ||
Other | 35 | 20 | (43) | ||
Net cash (used in) provided by financing activities | (812) | 181 | 508 | ||
Cash flows from investing activities: | |||||
Capital expenditures | (4,210) | (3,857) | (3,598) | ||
Proceeds from sale of nuclear decommissioning trust investments | 3,506 | 2,617 | 1,204 | ||
Purchases of nuclear decommissioning trust investments | (3,132) | (2,661) | (1,302) | ||
Proceeds from sale of assets | 0 | 4 | 181 | ||
Other | 12 | 40 | (32) | ||
Net cash used in investing activities | (3,824) | (3,857) | (3,547) | ||
Net increase (decrease) in cash and cash equivalents | (12) | (16) | 9 | ||
Cash and cash equivalents, beginning of year | 38 | 54 | 45 | ||
Cash and cash equivalents, end of year | $ 26 | $ 38 | $ 54 | ||
[1] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions, except per-share amounts)Total Fourth Third Second FirstOperating revenue$13,413 $3,114 $4,356 $3,016 $2,926Operating income 2,472 693 874 575 331Income from continuing operations11,536 406 524 382 224Income (loss) from discontinued operations, net185 39 (16) 184 (22)Net income attributable to common shareholders1,612 420 480 536 176Basic earnings (loss) per share: Continuing operations$4.38 $1.17 $1.52 $1.08 $0.61 Discontinued operations0.57 0.12 (0.05) 0.56 (0.07)Total$4.95 $1.29 $1.47 $1.64 $0.54Diluted earnings (loss) per share: Continuing operations$4.33 $1.15 $1.51 $1.07 $0.61 Discontinued operations0.56 0.12 (0.05) 0.56 (0.07)Total$4.89 $1.27 $1.46 $1.63 $0.54Dividends declared per share1.4825 0.4175 0.3550 0.3550 0.3550Common stock prices: High68.74 68.74 59.54 58.24 56.61Low44.74 55.88 54.12 53.63 44.74Close65.48 65.48 55.92 58.11 56.61 | ||||
[2] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. | ||||
[3] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions)Total Fourth Third Second FirstOperating revenue$13,380 $3,104 $4,338 $3,014 $2,924Operating income2,529 715 881 593 342Net income11,565 408 531 392 234Net income available for common stock1,453 380 503 362 208Common dividends declared525 147 126 126 126 | ||||
[4] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discounts and issuance costs of long term debt | $ 17 | $ 6 | $ 19 |
Southern California Edison | |||
Discounts and issuance costs of long term debt | $ 17 | $ 2 | $ 19 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Southern California Edison | Common Stock | Common StockSouthern California Edison | Additional Paid-in CapitalSouthern California Edison | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossSouthern California Edison | Retained Earnings | Retained EarningsSouthern California Edison | Subtotal | Preferred and Preference Stock | Preferred and Preference StockSouthern California Edison |
Balance, at the beginning of the period at Dec. 31, 2012 | $ 11,191 | $ 11,743 | $ 2,373 | $ 2,168 | $ 581 | $ (87) | $ (29) | $ 7,146 | $ 7,228 | $ 9,432 | $ 1,759 | $ 1,795 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,015 | 1,000 | 0 | 0 | 0 | 0 | 0 | 915 | 1,000 | 915 | 100 | 0 |
Other comprehensive income (loss), net of tax | 74 | 18 | 0 | 0 | 0 | 74 | 18 | 0 | 0 | 74 | 0 | 0 |
Dividends declared on common stock | (446) | (486) | 0 | 0 | 0 | 0 | 0 | (446) | (486) | (446) | 0 | 0 |
Dividends declared on preferred and preference stock | (100) | 0 | 0 | 0 | (100) | 0 | ||||||
Dividends and distributions to noncontrolling interests and other | (100) | 0 | 0 | 0 | 0 | (100) | ||||||
Stock-based compensation and other | (48) | (43) | 5 | 0 | 1 | 0 | 0 | (53) | (44) | (48) | 0 | 0 |
Noncash stock-based compensation and other | 18 | 19 | 25 | 0 | 15 | 0 | 0 | (6) | 4 | 19 | (1) | 0 |
Issuance of preference stock | 387 | 387 | 0 | 0 | (13) | 0 | 0 | 0 | 0 | 387 | 400 | |
Redemption of preference stock | (400) | (400) | 0 | 0 | 8 | 0 | 0 | (8) | (8) | (8) | (392) | (400) |
Balance, at the end of the period at Dec. 31, 2013 | 11,691 | 12,138 | 2,403 | 2,168 | 592 | (13) | (11) | 7,548 | 7,594 | 9,938 | 1,753 | 1,795 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,724 | 1,565 | 0 | 0 | 0 | 0 | 1,612 | 1,565 | 1,612 | 112 | ||
Other comprehensive income (loss), net of tax | (45) | (17) | 0 | 0 | (45) | (17) | 0 | 0 | (45) | 0 | 0 | |
Dividends declared on common stock | (483) | (525) | 0 | 0 | 0 | 0 | 0 | (483) | (525) | (483) | 0 | 0 |
Dividends declared on preferred and preference stock | (112) | 0 | 0 | 0 | (112) | 0 | ||||||
Dividends and distributions to noncontrolling interests and other | (112) | 0 | 0 | 0 | 0 | (112) | ||||||
Stock-based compensation and other | (89) | (44) | 15 | 0 | 20 | 0 | 0 | (104) | (64) | (89) | 0 | 0 |
Noncash stock-based compensation and other | 27 | 8 | 27 | 0 | 12 | 0 | 0 | 0 | (4) | 27 | 0 | 0 |
Issuance of preference stock | 269 | 269 | 0 | 0 | (6) | 0 | 0 | 0 | 0 | 0 | 269 | 275 |
Balance, at the end of the period at Dec. 31, 2014 | 12,982 | 13,282 | 2,445 | 2,168 | 618 | (58) | (28) | 8,573 | 8,454 | 10,960 | 2,022 | 2,070 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,133 | 1,111 | 0 | 0 | 0 | 0 | 0 | 1,020 | 1,111 | 1,020 | 113 | 0 |
Other comprehensive income (loss), net of tax | 2 | 6 | 0 | 0 | 0 | 2 | 6 | 0 | 0 | 2 | 0 | 0 |
Dividends declared on common stock | (564) | (611) | 0 | 0 | 0 | 0 | 0 | (564) | (611) | (564) | 0 | 0 |
Dividends declared on preferred and preference stock | (113) | 0 | 0 | 0 | (113) | 0 | ||||||
Dividends and distributions to noncontrolling interests and other | (113) | 0 | 0 | 0 | 0 | (113) | ||||||
Stock-based compensation and other | (70) | (10) | 15 | 0 | 23 | 0 | 0 | (85) | (33) | (70) | 0 | 0 |
Noncash stock-based compensation and other | 24 | 13 | 24 | 0 | 13 | 0 | 0 | 0 | 0 | 24 | 0 | 0 |
Issuance of preference stock | 319 | 319 | 0 | 0 | (6) | 0 | 0 | 0 | 0 | 0 | 319 | 325 |
Redemption of preference stock | (325) | (325) | 0 | 0 | 4 | 0 | 0 | (4) | (4) | (4) | (321) | (325) |
Balance, at the end of the period at Dec. 31, 2015 | $ 13,388 | $ 13,672 | $ 2,484 | $ 2,168 | $ 652 | $ (56) | $ (22) | $ 8,940 | $ 8,804 | $ 11,368 | $ 2,020 | $ 2,070 |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared per common share | $ 0.48 | $ 0.4175 | $ 0.4175 | $ 0.4175 | $ 0.4175 | $ 0.3550 | $ 0.3550 | $ 0.3550 | $ 1.7325 | $ 1.4825 | $ 1.3675 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of Edison Energy Group, a company that holds interests in subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in competitive transmission opportunities, and exploring distributed water treatment and recycling. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 10 for composition of regulatory assets and liabilities. The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Furthermore, certain prior year amounts have been reclassified for consistency with the current period presentation. The proceeds from the sales and purchases of nuclear decommissioning trust investments in the consolidated statement of cash flows of Edison International and SCE net quick turnaround investment activity in the amount of $13.7 billion , $7.5 billion , and $4.4 billion for the years ended December 31, 2015 , 2014 and 2013 , respectively. Cash Equivalents Cash equivalents includes investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows: Edison International SCE December 31, (in millions) 2015 2014 2015 2014 Money market funds $ 37 $ 35 $ 8 $ 5 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows: Edison International SCE December 31, (in millions) 2015 2014 2015 2014 Book balances reclassified to accounts payable $ 162 $ 180 $ 158 $ 177 Allowance for Uncollectible Accounts Allowances for uncollectible accounts are provided based upon a variety of factors, including historical amounts written-off, current economic conditions and assessment of customer collectability. Inventory Inventory is primarily composed of materials, supplies and spare parts, and stated at the lower of cost or market, cost being determined by the average cost method. Energy Credits and Allowances Renewable energy certificates or credits ("RECs") represent rights established by governmental agencies for the environmental, social, and other non-power qualities of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets, including California. Retail sellers of electricity obtain RECs through renewable power purchase agreements, internal generation or separate purchases in the market to comply with renewables portfolio standards ("RPS") established by certain governmental agencies. RECs are the mechanism used to verify renewables portfolio standard compliance and are recognized at the lower of weighted-average cost or market when amounts purchased are in excess of the amounts needed to comply with RPS requirements. The cost of purchased RECs is recoverable as part of the cost of purchased power. SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted-average cost or market. SCE had GHG allowances of $79 million and $204 million at December 31, 2015 and 2014 , respectively. GHG emission obligations were $86 million and $211 million at December 31, 2015 and 2014 , respectively and are classified as "Other current liabilities" on the consolidated balance sheets. Property, Plant and Equipment Plant additions, including replacements and betterments, are capitalized. SCE capitalizes as part of plant additions direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes. The CPUC authorizes a rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives (authorized by the CPUC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful Lives Weighted-Average Useful Lives Generation plant 10 years to 57 years 38 years Distribution plant 20 years to 60 years 43 years Transmission plant 40 years to 65 years 52 years General plant and other 5 years to 60 years 22 years Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. Depreciation expense was $1.42 billion , $1.33 billion and $1.31 billion for 2015 , 2014 and 2013 , respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.9% , 4.0% and 4.2% for 2015 , 2014 and 2013 , respectively. Replaced or retired property costs are charged to accumulated depreciation. Nuclear fuel for the Palo Verde Nuclear Power Plant is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Nuclear fuel is amortized using the units of production method. AFUDC represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $87 million , $65 million and $72 million in 2015 , 2014 and 2013 , respectively. AFUDC debt was $31 million , $25 million and $33 million in 2015 , 2014 and 2013 , respectively. Major Maintenance Major maintenance costs for SCE's power plant facilities and equipment are expensed as incurred. Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income based valuation techniques, as appropriate. SCE's impaired assets are recorded as a regulatory asset if it is deemed probable that such amounts will be recovered from customers. Due to the decision to early retire San Onofre Units 2 and 3, GAAP required reclassification of the amounts recorded in property, plant and equipment and related tangible operating assets to a regulatory asset to the extent that management concluded it was probable of recovery through future rates. Regulatory assets may also be recorded to the extent management concludes it is probable that direct and indirect costs incurred to retire Units 2 and 3 as of each reporting date are recoverable through future rates. In accordance with these requirements and as a result of its decision to retire San Onofre Units 2 and 3, SCE reclassified $1,521 million of its total investment in San Onofre at May 31, 2013 to a regulatory asset ("San Onofre Regulatory Asset") and recorded an impairment charge of $575 million ( $365 million after-tax) in the second quarter of 2013. In March 2014, SCE entered into a settlement agreement with The Utility Reform Network ("TURN"), the CPUC's Office of Ratepayer Advocates ("ORA"), SDG&E, the Coalition of California Utility Employees, and Friends of the Earth (together, the "Settling Parties"). In September 2014, SCE and the Settling Parties entered into an Amended and Restated Settlement Agreement (the "San Onofre OII Settlement Agreement") which was approved by the CPUC on November 20, 2014. As a result of these developments, SCE recorded an additional pre-tax charge of approximately $163 million (approximately $72 million after-tax) during 2014. Including amounts previously recorded in 2013, the total impact of the San Onofre OII Settlement Agreement was a pre-tax charge of $738 million (approximately $437 million after-tax). See Note 11 for further information. Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. SCE adjusts its nuclear decommissioning obligation into a nuclear-related ARO regulatory asset and also records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further discussion, see Notes 9 and 10. The following table summarizes the changes in SCE's ARO liability, including San Onofre and Palo Verde: December 31, (in millions) 2015 2014 Beginning balance $ 2,819 $ 3,418 Accretion 1 173 192 Revisions (14 ) (790 ) Liabilities settled (216 ) (1 ) Ending balance $ 2,762 $ 2,819 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. SCE has not recorded an asset retirement obligation for assets that are expected to operate indefinitely. As SCE cannot estimate a settlement date (or range of potential settlement dates) or make reasonable estimates of fair value of these assets. As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. Decommissioning costs, which are recovered through non-bypassable customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as increases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future costs of removal of its nuclear assets, and has placed those amounts in independent trusts. The cost of removal amounts, in excess of amounts collected for assets not legally required to be removed, are classified as regulatory liabilities. The recorded liability to decommission SCE's nuclear power facilities is $2.7 billion as of December 31, 2015, based on decommissioning studies performed in 2010 for Palo Verde, in 2011 for San Onofre Unit 1 and in 2014 for San Onofre Units 2 and 3 following the decision to permanently retire San Onofre. During 2014, an updated cost estimate for San Onofre Units 2 and 3 resulted in a decrease to the ARO liability of $688 million . In December 2014, SCE received a decision on its NDCTP for Palo Verde and San Onofre Unit 1. The decision resulted in a $253 million decrease for Palo Verde and $124 million increase for San Onofre Unit 1 ARO liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $7.2 billion through 2075 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 1.4% to 7.3% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 3.3% to 4.1% . If the assumed return on trust assets is not earned or costs escalate at higher rates, it is probable that additional funds needed for decommissioning will be recoverable through rates in the future. Decommissioning expense amounts collected in rates were $5 million in 2014 and $22 million in 2013 . Total expenditures for the decommissioning of San Onofre Unit 1 were $484 million (SCE's share) from the beginning of the project in 1998 through December 31, 2015. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the tri-annual regulatory proceeding. SCE's nuclear decommissioning trust investments primarily consist of debt and equity investments that are classified as available-for-sale. Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on electric utility revenue. Unrealized gains and losses on decommissioning trust funds increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each security for other-than-temporary impairment on the last day of each month. If the fair value on the last day of two consecutive months is less than the cost for that security, SCE recognizes a loss for the other-than-temporary impairment. If the fair value is greater or less than the cost for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. SCE had unamortized losses on reacquired debt of $201 million for both December 31, 2015 and 2014 reflected as long-term "Regulatory assets" in the consolidated balance sheets. Edison International and SCE had unamortized debt issuance costs of $92 million and $84 million at December 31, 2015 , respectively, and $83 million and $75 million at December 31, 2014 , respectively, reflected in "Other long-term assets" on the consolidated balance sheets. Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Amortization of deferred financing costs charged to interest expense $ 33 $ 36 $ 33 $ 28 $ 32 $ 32 Revenue Recognition Revenue is recognized when electricity is delivered and includes amounts for services rendered but unbilled at the end of each reporting period and reflected in "Operating revenue" on the consolidated statements of income. Rates charged to customers are based on CPUC- and FERC-authorized revenue requirements. CPUC rates are implemented subsequent to final approval. CPUC rates decouple authorized revenue from the volume of electricity sales. Differences between amounts collected and authorized levels are either collected from or refunded to customers, and therefore, SCE earns revenue equal to amounts authorized. FERC rates also decouple revenue from volume of electricity sales. In November 2013, the FERC approved a formula rate effective January 1, 2012 to determine SCE's FERC transmission revenue requirement, including its construction work in progress ("CWIP") revenue requirement. Under operation of the formula rate, transmission revenue will be updated to actual cost of service annually. Differences between amounts collected and determined under the formula rate are either collected from or refunded to customers, and therefore, SCE earns revenue based on estimates of recorded rate base costs under the FERC formula rate. SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis and reflected in electric utility revenue and other operation and maintenance expense. SCE's franchise fees billed to customers and recorded as revenue were $138 million , $134 million and $116 million in 2015 , 2014 and 2013 , respectively. When SCE bills and collects taxes from customers, these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue. Power Purchase Agreements SCE enters into power purchase agreements in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity. Under this classification, the power purchase agreement is evaluated to determine if SCE is the primary beneficiary in the variable interest entity, in which case, such entity would be consolidated. None of SCE's power purchase agreements resulted in consolidation of a variable interest entity at December 31, 2015 and 2014 . See Note 3 for further discussion of power purchase agreements that are considered variable interests. A power purchase agreement may also contain a lease for accounting purposes. This generally occurs when a power purchase agreement (signed or modified after June 30, 2003) designates a specific power plant in which the buyer purchases substantially all of the output and does not otherwise meet a fixed price per unit of output exception. SCE has a number of power purchase agreements that contain leases. SCE's recognition of lease expense conforms to the ratemaking treatment for SCE's recovery of the cost of electricity and is recorded in purchased power. The majority of these agreements are classified as leases as electricity is delivered at rates defined in power sales agreements. See Note 11 for further discussion of SCE's power purchase agreements, including agreements that are classified as operating and capital leases for accounting purposes. A power purchase agreement that does not contain a lease may be classified as a derivative subject to a normal purchase and sale exception, in which case the power purchase agreement is classified as an executory contract and accounted for on an accrual basis. Most of SCE's QF contracts are not required to be recorded on the consolidated balance sheets because they either do not meet the definition of a derivative or meet the normal purchase and sale exception. SCE purchases power under certain contracts that are not eligible for the normal purchase and sale exception and are recorded as a derivative on the consolidated balance sheets at fair value. See Note 6 for further information on derivative instruments. Power purchase agreements that do not meet the above classifications are accounted for on an accrual basis. Derivative Instruments SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. Leases SCE enters into power purchase agreements that may contain leases, as discussed under "Power Purchase Agreements" above. SCE has also entered into a number of agreements to lease property and equipment in the normal course of business. Minimum lease payments under operating leases are levelized (total minimum lease payments divided by the number of years of the lease) and recorded as rent expense over the terms of the leases. Lease payments in excess of the minimum are recorded as rent expense in the year incurred. Capital leases are reported as long-term obligations on the consolidated balance sheets in "Other deferred credits and other long-term liabilities." As a rate-regulated enterprise, SCE's capital lease amortization expense and interest expense are reflected in "Purchased power and fuel" on the consolidated statements of income. Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. Generally, Edison International does not issue new common stock for settlement of equity awards. Rather, a third party is used to purchase shares from the market and delivery for settlement of option exercises, performance shares and restricted stock units. Performance shares earned are settled half in cash and half in common stock; however, Edison International has discretion under certain of the awards to pay the half subject to cash settlement in common stock. Deferred stock units granted to management are settled in cash and represent a liability. Restricted stock units are settled in common stock; however, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For awards granted to retirement-eligible participants stock compensation expenses are recognized on a prorated basis over the initial year or over the period between the date of grant and the date the participant first becomes eligible for retirement. Tax benefits related to stock-based compensation are recognized as a reduction to deferred taxes until the related tax deductions reduce current income taxes. When such event occurs, the tax benefits are then recognized through additional paid in capital. SCE allocates the tax benefits based on the provisions in the tax laws that identify the sequence in which the amounts are utilized for tax purposes. SCE Dividend Restrictions The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above 48% on a 13 -month weighted average basis. At December 31, 2015 , SCE's 13 -month weighted-average common equity component of total capitalization was 49.9% and the maximum additional dividend that SCE could pay to Edison International under this limitation was approximately $441 million . The remaining $13.2 billion of SCE's net assets are restricted. Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31, (in millions) 2015 2014 2013 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 985 $ 1,427 $ 879 Participating securities dividends (1 ) (1 ) — Income from continuing operations available to common shareholders $ 984 $ 1,426 $ 879 Weighted average common shares outstanding 326 326 326 Basic earnings per share – continuing operations $ 3.02 $ 4.38 $ 2.70 Diluted earnings per share – continuing operations: Income from continuing operations available to common shareholders $ 984 $ 1,426 $ 879 Income impact of assumed conversions 1 1 1 Income from continuing operations available to common shareholders and assumed conversions $ 985 $ 1,427 $ 880 Weighted average common shares outstanding 326 326 326 Incremental shares from assumed conversions 3 3 3 Adjusted weighted average shares – diluted 329 329 329 Diluted earnings per share – continuing operations $ 2.99 $ 4.33 $ 2.67 In addition to the participating securities discussed above, Edison International also may award stock options which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 2,046,045 , 125,345 and 3,977,894 shares of common stock for the years ended December 31, 2015 , 2014 and 2013 , respectively, were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of the awards was greater than the average market price of the common shares during the respective periods and, therefore, the effect would have been antidilutive. Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Investment tax credits are deferred and amortized to income tax expense over the lives of the properties or the term of the power purchase agreement of the respective project while production tax credits are recognized in income tax expense in the period in which they are earned. Interest income, interest expense and penalties associated with income taxes are reflected in "Income tax expense" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. Redeemable Noncontrolling Interest Redeemable noncontrolling interest represents the portion of equity ownership in an entity that is not attributable to the equity holders of Edison International and which have rights to put their ownership back to a subsidiary of Edison International. Noncontrolling interest is initially recorded at fair value and is subsequently adjusted for income allocated to the noncontrolling interest and any distributions paid to the noncontrolling interest. Certain solar projects for commercial customers are organized as limited liability companies and have a noncontrolling equity investor (referred to as tax equity investor) which is entitled to allocations of earnings, tax attributes and cash flows in accordance with contractual agreements that vary over time. This entity is consolidated for financial reporting purposes but is not subject to income taxes as the taxable income (loss) and investment tax credits are allocated to the respective owners. The total assets and liabilities of this entity consolidated at December 31, 2015 were $82 million and $32 million , respectively. Income (loss) of this entity is allocated to the noncontrolling interest based on the hypothetical liquidation at book value ("HLBV") accounting method. The HLBV accounting method is an approach that calculates the change in the claims of each member on the net assets of the investment at the beginning and end of each period. Each member’s claim is equal to the amount each party would receive or pay if the net ass |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31, (in millions) 2015 2014 Transmission $ 11,592 $ 10,391 Distribution 20,871 19,255 Generation 3,138 2,986 General plant and other 4,543 4,889 Accumulated depreciation (8,548 ) (8,132 ) 31,596 29,389 Construction work in progress 3,218 3,339 Nuclear fuel, at amortized cost 131 131 Total utility property, plant and equipment $ 34,945 $ 32,859 Capitalized Software Costs SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant, and equipment. SCE amortizes capitalized software costs ratably over the expected lives of the software, ranging from 5 to 15 years and commencing upon operational use. At December 31, 2015 and 2014 , capitalized software costs included in general plant and other above, were $1.4 billion and $1.7 billion and accumulated amortization was $892 million and $1.0 billion , respectively. Amortization expense for capitalized software was $268 million , $271 million and $251 million in 2015 , 2014 and 2013 , respectively. At December 31, 2015 , amortization expense is estimated to be approximately $237 million annually for 2016 through 2020 . Jointly Owned Utility Projects SCE owns undivided interests in several generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income. A portion of the investments in Palo Verde generating stations is included in regulatory assets on the consolidated balance sheets. For further information see Note 10. The following is SCE's investment in each asset as of December 31, 2015 : (in millions) Plant in Service Construction Work in Progress Accumulated Depreciation Nuclear Fuel (at amortized cost) Net Book Value Ownership Interest Transmission systems: Eldorado $ 186 $ 38 $ 20 $ — $ 204 59% Pacific Intertie 191 11 79 — 123 50% Generating station: Palo Verde (nuclear) 1,928 62 1,538 131 583 16% Total $ 2,305 $ 111 $ 1,637 $ 131 $ 910 In addition, SCE has ownership interests in jointly owned power poles with other companies. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities Disclosure [Abstract] | |
Variable Interest Entities | Variable Interest Entities A variable interest entity ("VIE") is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. A subsidiary of Edison International is the primary beneficiary of an entity that owns rooftop solar projects (for further information, see Note 1—Redeemable Noncontrolling Interests). Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements. Variable Interest in VIEs that are not Consolidated Power Purchase Contracts SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities ("QFs") that contain variable pricing provisions based on the price of natural gas. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants. As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to its involvement with VIEs result from amounts due under the PPAs or the fair value of those derivative contracts. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 11. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 4,062 MW and 5,641 MW at December 31, 2015 and 2014 , respectively, and the amounts that SCE paid to these projects were $640 million and $739 million for the years ended December 31, 2015 and 2014 , respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust I, Trust II, Trust III and Trust IV were formed in 2012, 2013, 2014 and 2015 respectively, for the exclusive purpose of issuing the 5.625% , 5.10% , 5.75% and 5.375% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust I, Trust II, Trust III and Trust IV issued trust securities in the face amount of $475 million , $400 million , $275 million and $325 million , respectively, (cumulative, liquidation amount of $25 per share) to the public and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series F, Series G, Series H and Series J Preference Stock issued by SCE in the principal amount of $475 million , $400 million , $275 million and $325 million (cumulative, $2,500 per share liquidation value), respectively, which have substantially the same payment terms as the trust securities. The Series F, Series G, Series H and Series J Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series F, Series G, Series H or Series J Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (see Note 12 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities when and if the SCE board of directors declares and makes dividend payments on the related Preference Stock. The applicable trusts will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. The Trust I, Trust II and Trust III balance sheets as of December 31, 2015 , and 2014 consisted of investments of $475 million , $400 million and $275 million in the Series F, Series G and Series H Preference Stock respectively, $475 million , $400 million and $275 million of trust securities, respectively and $10,000 each of common stock. The Trust IV balance sheet as of December 31, 2015 consisted of investments of $325 million in the Series J Preference Stock, $325 million of trust securities, and $10,000 of common stock. The following table provides a summary of the trusts' income statements: Years ended December 31, (in millions) Trust I Trust II Trust III Trust IV 2015 Dividend income $ 27 $ 20 $ 16 $ 6 Dividend distributions 27 20 16 6 2014 Dividend income $ 27 $ 20 $ 13 * Dividend distributions 27 20 13 * 2013 Dividend income $ 27 $ 19 * * Dividend distributions 27 19 * * * Not applicable |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2015 and 2014 , nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds and money market funds. Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from exchanges (New York Mercantile Exchange and Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes over-the-counter options, tolling arrangements and derivative contracts that trade infrequently such as congestion revenue rights ("CRRs") and other power agreements. Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. Changes in fair value are based on changes to forward market prices, including extrapolation of short-term observable inputs into forecasted prices for illiquid forward periods. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of fair value of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: December 31, 2015 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 163 $ — $ 163 Other 28 — — — 28 Nuclear decommissioning trusts: Stocks 2 1,460 — — — 1,460 Fixed income 3 947 1,776 — — 2,723 Short-term investments, primarily cash equivalents 91 81 — — 172 Subtotal of nuclear decommissioning trusts 4 2,498 1,857 — — 4,355 Total assets 2,526 1,857 163 — 4,546 Liabilities at fair value Derivative contracts — 22 1,311 (15 ) 1,318 Total liabilities — 22 1,311 (15 ) 1,318 Net assets (liabilities) $ 2,526 $ 1,835 $ (1,148 ) $ 15 $ 3,228 December 31, 2014 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 321 $ — $ 321 Other 33 — — — 33 Nuclear decommissioning trusts: Stocks 2 2,031 — — — 2,031 Fixed income 3 703 1,350 — — 2,053 Short-term investments, primarily cash equivalents 606 166 — — 772 Subtotal of nuclear decommissioning trusts 4 3,340 1,516 — — 4,856 Total assets 3,373 1,516 321 — 5,210 Liabilities at fair value Derivative contracts — 86 1,223 (61 ) 1,248 Total liabilities — 86 1,223 (61 ) 1,248 Net assets (liabilities) $ 3,373 $ 1,430 $ (902 ) $ 61 $ 3,962 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. 2 Approximately 70% and 73% of SCE's equity investments were located in the United States at December 31, 2015 and 2014 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $111 million and $49 million at December 31, 2015 and 2014 , respectively. 4 Excludes net payables of $24 million and $57 million at December 31, 2015 and 2014 , which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. Edison International Parent and Other Edison International Parent and Other assets measured at fair value consisted of money market funds of $29 million and $30 million at December 31, 2015 and 2014 , respectively, classified as Level 1. SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: December 31, (in millions) 2015 2014 Fair value of net liabilities at beginning of period $ (902 ) $ (805 ) Total realized/unrealized gains (losses): Included in regulatory assets and liabilities 1 (246 ) (97 ) Purchases — 27 Settlements — (27 ) Fair value of net liabilities at end of period $ (1,148 ) $ (902 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (311 ) $ (166 ) 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no significant transfers between any levels during 2015 and 2014 . Valuation Techniques Used to Determine Fair Value The process of determining fair value is the responsibility of SCE's risk management department, which report to SCE's chief financial officer. This department obtains observable and unobservable inputs through broker quotes, exchanges and internal valuation techniques that use both standard and proprietary models to determine fair value. Each reporting period, the risk and finance departments collaborate to determine the appropriate fair value methodologies and classifications for each derivative. Inputs are validated for reasonableness by comparison against prior prices, other broker quotes and volatility fluctuation thresholds. Inputs used and valuations are reviewed period-over-period and compared with market conditions to determine reasonableness. The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Range Assets Liabilities Valuation Technique(s) Unobservable Input (Weighted Average) Congestion revenue rights December 31, 2015 $ 152 $ — Market simulation model and auction prices Load forecast 6,289 MW - 24,349 MW Power prices 1 $0 - $110.44 Gas prices 2 $1.98 - $5.72 December 31, 2014 317 — Market simulation model and auction prices Load forecast 7,630 MW - 25,431 MW Power prices 1 $1.65 - $109.95 Gas prices 2 $3.65 - $6.53 Tolling December 31, 2015 10 1,297 Option model Volatility of gas prices 15% - 58% (20%) Volatility of power prices 26% - 38% (30%) Power prices $24.15 - $46.93 ($34.80) December 31, 2014 4 1,207 Option model Volatility of gas prices 13% - 53% (20%) Volatility of power prices 25% - 42% (30%) Power prices $30.60 - $61.40 ($44.60) 1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. Level 3 Fair Value Sensitivity Congestion Revenue Rights For CRRs, where SCE is the buyer, generally increases (decreases) in forecasted load in isolation would result in increases (decreases) to the fair value. In general, an increase (decrease) in electricity and gas prices at illiquid locations tends to result in increases (decreases) to fair value; however, changes in electricity and gas prices in opposite directions may have varying results on fair value. Tolling Arrangements The fair values of SCE's tolling arrangements contain intrinsic value and time value. Intrinsic value is the difference between the market price and strike price of the underlying commodity. Time value is made up of several components, including volatility, time to expiration, and interest rates. The option model for tolling arrangements reflects plant specific information such as operating and start-up costs. For tolling arrangements where SCE is the buyer, increases in volatility of the underlying commodity prices would result in increases to fair value as it represents greater price movement risk. As power and gas prices increase, the fair value of tolling arrangements tends to increase. The valuation of tolling arrangements is also impacted by the correlation between gas and power prices. As the correlation increases, the fair value of tolling arrangements tends to decline. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information. SCE's investment policies and CPUC requirements place limitations on the types and investment grade ratings of the securities that may be held by the nuclear decommissioning trust funds. These policies restrict the trust funds from holding alternative investments and limit the trust funds' exposures to investments in highly illiquid markets. With respect to equity and fixed income securities, the trustee obtains prices from third-party pricing services which SCE is able to independently corroborate as described below. A primary price source is identified by the trustee based on asset type, class or issue for each security. The trustee monitors prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the trustee or SCE's investment managers challenge an assigned price and determine that another price source is considered to be preferable. Parameters and predetermined tolerance thresholds are established by asset class based on past experience and an understanding of valuation process techniques. The trustee "scrubs" prices against defined parameters' tolerances and performs research and resolves variances beyond the set parameters. SCE reviewed the process/procedures of both the pricing services and the trustee to gain an understanding of the inputs/assumptions and valuation techniques used to price each asset type/class and to reach a conclusion that their pricing controls are satisfactory. This consisted of SCE's review of their written detailed process/procedures and service organization control reports, as well as follow-up conversations based on our written questions. This assists SCE in determining if the valuations represent exit price fair value and that investments are appropriately classified in the fair value hierarchy. Additionally, SCE corroborates the fair values of securities by comparison to other market-based price sources obtained by SCE's investment managers. Differences outside established thresholds are followed-up with the trustee and resolved. The results of this process have demonstrated that vendor and trustee pricing controls are satisfactory. For each reporting period, SCE reviews the trustee determined fair value hierarchy and overrides the trustee level classification when appropriate. Fair Value of Debt Recorded at Carrying Value The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: December 31, 2015 December 31, 2014 (in millions) Carrying Value Fair Value Carrying Value Fair Value Edison International $ 11,259 $ 12,252 $ 10,738 $ 12,319 SCE 10,616 11,592 9,924 11,479 The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2 and is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes of new issue prices and relevant credit information. The carrying value of Edison International's and SCE's trade receivables and payables, other investments, and short-term debt approximates fair value. |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt The following table summarizes long-term debt (rates and terms are as of December 31, 2015 ) of Edison International and SCE: December 31, (in millions) 2015 2014 Edison International Parent and Other: Debentures and notes: 2016 – 2017 (0% to 3.75%) $ 614 $ 817 Other long-term debt 31 2 Current portion of long-term debt (216 ) (204 ) Unamortized debt discount, net (2 ) (5 ) Total Edison International Parent and Other 427 610 SCE: First and refunding mortgage bonds: 2017 – 2045 (1.125% to 6.05%) 9,436 8,875 Pollution-control bonds: 2028 – 2035 (1.375% to 5.0% and variable) 1 909 779 Debentures and notes: 2029 – 2053 (5.06% to 6.65%) 307 307 Current portion of long-term debt (79 ) (300 ) Unamortized debt discount, net (36 ) (37 ) Total SCE 10,537 9,624 Total Edison International $ 10,964 $ 10,234 1 Includes outstanding bonds that have not been retired and may be remarketed to investors in the future. These bonds have variable rates and are due in 2031 at December 31, 2015. Edison International and SCE long-term debt maturities over the next five years are the following: (in millions) Edison International SCE 2016 $ 295 $ 79 2017 903 500 2018 402 400 2019 2 — 2020 1 — During the first quarter of 2015, SCE issued $550 million of 1.845% amortizing first and refunding mortgage bonds due in 2022, $325 million of 2.4% first and refunding mortgage bonds due in 2022, and $425 million of 3.6% first and refunding mortgage bonds due in 2045. The proceeds from these bonds were used to repay outstanding debt and for general corporate purposes. The $550 million amortizing first and refunding mortgage bonds and the $325 million of first and refunding mortgage bonds have been designated as a financing of the San Onofre regulatory asset. During the second quarter of 2015, SCE reissued $56 million of 1.875% pollution-control bonds due in 2029 and $75 million of 1.875% pollution-control bonds due in 2031. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. Project Financings Indirect subsidiaries of Edison International entered into a non-recourse debt financing to support investment in approximately 29 megawatts of solar rooftop projects. Borrowings under this financing agreement, were converted to a 7 -year term loan during September 2015. As of December 31, 2015, there was approximately $25 million outstanding under this financing at a weighted average interest rate of 3.11% which is classified as long-term debt. As of December 31, 2014, there was $5.1 million outstanding under this financing at a weighted average interest rate of 2.67% which was classified as short-term debt. During 2014, an indirect subsidiary of Edison International entered into an $80 million non-recourse debt financing to support equity contributions in solar projects. The maturity date of any borrowings under this agreement is December 31, 2036. As of December 31, 2015, there was $6 million outstanding under this agreement at a weighted average interest rate of 9% . At December 31, 2014, there were no loans outstanding under this agreement. Liens and Security Interests Almost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies. SCE has a debt covenant that requires a debt to total capitalization ratio be met. At December 31, 2015 , SCE was in compliance with this debt covenant. All of the properties subject to the Edison Energy Group project financings discussed above are subject to a lien. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at December 31, 2015 : (in millions) Edison International Parent SCE Commitment $ 1,250 $ 2,750 Outstanding borrowings (646 ) (49 ) Outstanding letters of credit — (125 ) Amount available $ 604 $ 2,576 SCE and Edison International have multi-year revolving credit facilities of $2.75 billion and $1.25 billion , with both maturing in July 2020. SCE's credit facility is generally used to support commercial paper borrowings and letters of credit issued for procurement-related collateral requirements, balancing account undercollections and for general corporate purposes, including working capital requirements to support operations and capital expenditures. Edison International Parent's credit facility is used to support commercial paper borrowings and for general corporate purposes. At December 31, 2015 , commercial paper supported by SCE's credit facility was $49 million at a weighted-average interest rate of 0.51% . At December 31, 2015 , letters of credit issued under SCE's credit facility aggregated $125 million and are scheduled to expire in twelve months or less. At December 31, 2014 , the outstanding commercial paper was $367 million at a weighted-average interest rate of 0.40% . At December 31, 2015 , Edison International Parent's outstanding commercial paper was $646 million at a weighted-average interest rate of 0.78% . This commercial paper was supported by the $1.25 billion multi-year revolving credit facility. At December 31, 2014 , the outstanding commercial paper was $619 million at a weighted-average interest rate of 0.45% . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Commodity Price Risk Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and power purchase agreements. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and power purchase agreements in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements. Credit and Default Risk Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments. Certain power contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to setoff amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Certain power contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $38 million and $53 million as of December 31, 2015 and 2014 , respectively, for which SCE has posted no collateral and $13 million of collateral to its counterparties at December 31, 2015 and 2014 , respectively. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2015 , SCE would be required to post $22 million of additional collateral of which $8 million is related to outstanding payables that are net of collateral already posted. Fair Value of Derivative Instruments SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: December 31, 2015 Derivative Assets Derivative Liabilities Net Liability (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 81 $ 84 $ 165 $ 235 $ 1,100 $ 1,335 $ 1,170 Gross amounts offset in consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — (15 ) — (15 ) (15 ) Net amounts presented in the consolidated balance sheets $ 79 $ 84 $ 163 $ 218 $ 1,100 $ 1,318 $ 1,155 December 31, 2014 Derivative Assets Derivative Liabilities Net Liability (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 104 $ 219 $ 323 $ 259 $ 1,052 $ 1,311 $ 988 Gross amounts offset in consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — (61 ) — (61 ) (61 ) Net amounts presented in the consolidated balance sheets $ 102 $ 219 $ 321 $ 196 $ 1,052 $ 1,248 $ 927 1 In addition, at December 31, 2015 and 2014 , SCE had posted $31 million and $36 million , respectively, of collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. Income Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchase power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are recorded in cash flows from operating activities in the consolidated statements of cash flows. The following table summarizes the components of SCE's economic hedging activity: Years ended December 31, (in millions) 2015 2014 2013 Realized losses $ (148 ) $ (57 ) $ (56 ) Unrealized (losses) gains (182 ) (147 ) 93 Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE hedging activities: Economic Hedges Unit of December 31, Commodity Measure 2015 2014 Electricity options, swaps and forwards GWh 6,221 3,618 Natural gas options, swaps and forwards Bcf 32 83 Congestion revenue rights GWh 109,740 122,859 Tolling arrangements GWh 70,663 79,989 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Current and Deferred Taxes Edison International's sources of income (loss) before income taxes are: Years ended December 31, (in millions) 2015 2014 2013 Income from continuing operations before income taxes $ 1,568 $ 1,979 $ 1,221 Income (loss) from discontinued operations before income taxes 15 (525 ) — Income before income tax $ 1,583 $ 1,454 $ 1,221 The components of income tax expense (benefit) by location of taxing jurisdiction are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Current: Federal $ 18 $ (99 ) $ (97 ) $ 72 $ (89 ) $ (119 ) State 19 20 (9 ) 127 101 (19 ) 37 (79 ) (106 ) 199 12 (138 ) Deferred: Federal 340 454 317 298 476 345 State 109 68 31 10 (14 ) 72 449 522 348 308 462 417 Total continuing operations 486 443 242 507 474 279 Discontinued operations 1 (21 ) (710 ) (36 ) — — — Total $ 465 $ (267 ) $ 206 $ 507 $ 474 $ 279 1 See Note 15 for a discussion of discontinued operations related to EME. The components of net accumulated deferred income tax liability are: Edison International SCE December 31, (in millions) 2015 2014 2015 2014 Deferred tax assets: Property and software related $ 675 $ 572 $ 675 $ 571 Nuclear decommissioning trust assets in excess of nuclear ARO liability 360 441 360 441 Loss and credit carryforwards 1,388 1,657 — 205 Regulatory balancing accounts 21 18 21 18 Pension and PBOPs 337 510 154 321 Other 499 582 411 445 Sub-total 3,280 3,780 1,621 2,001 Less valuation allowance 32 29 — — Total 3,248 3,751 1,621 2,001 Deferred tax liabilities: Property-related 9,606 8,709 9,600 8,699 Capitalized software costs 207 285 207 285 Regulatory balancing accounts 202 577 202 577 Nuclear decommissioning trust assets 360 441 360 441 PBOPs 71 227 71 227 Other 189 274 161 171 Total 10,635 10,513 10,601 10,400 Accumulated deferred income tax liability, net 1 $ 7,387 $ 6,762 $ 8,980 $ 8,399 1 Included in deferred income taxes and credits. Net Operating Loss and Tax Credit Carryforwards The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison International SCE December 31, 2015 (in millions) Loss Carryforwards Credit Carryforwards Loss Carryforwards Credit Carryforwards Expire between 2021 to 2034 $ 1,136 $ 409 $ 39 $ 22 No expiration date — 54 — 39 Total 1 $ 1,136 $ 463 $ 39 $ 61 1 Deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $211 million and $100 million for Edison International and SCE, respectively. Edison International has recorded a valuation allowance of $32 million for state net operating loss carryforwards estimated to expire unused. As of December 31, 2015 , Edison International and SCE had federal net operating loss carryforwards related to the tax benefit on employee stock plans that would be recorded to additional paid-in capital when realized for the amount of $42 million and $6 million . Edison International consolidates for federal income tax purposes a group of wind projects referred to as Capistrano Wind. The amount of net operating loss and tax credit carryforwards recognized as part of deferred income taxes includes $210 million related to Capistrano Wind. Under a tax allocation agreement, Edison International has recorded the liability as part of other long-term liabilities related to its obligation to make payments to Capistrano Wind of these tax benefits when realized. Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Income from continuing operations before income taxes $ 1,568 $ 1,979 $ 1,221 $ 1,618 $ 2,039 $ 1,279 Provision for income tax at federal statutory rate of 35% 549 693 427 566 714 448 Increase in income tax from: Items presented with related state income tax, net: Regulatory asset write-off 1 382 — — 382 — — State tax, net of federal benefit 5 56 18 34 55 34 Property-related 2 (341 ) (252 ) (216 ) (341 ) (252 ) (216 ) Change related to uncertain tax positions (67 ) 5 14 (94 ) 12 14 San Onofre OII settlement — (23 ) 24 — (23 ) 24 Other (42 ) (36 ) (25 ) (40 ) (32 ) (25 ) Total income tax expense from continuing operations $ 486 $ 443 $ 242 $ 507 $ 474 $ 279 Effective tax rate 31.0 % 22.4 % 19.8 % 31.3 % 23.2 % 21.8 % 1 Includes federal and state. 2 Includes incremental repair benefit recorded in 2013 to 2015. See discussion of repair deductions below. The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. Repair Deductions Edison International made voluntary elections in 2009 and 2011 to change its tax accounting method for certain tax repair costs incurred on SCE's transmission, distribution and generation assets. Incremental repair deductions represent amounts recognized for regulatory accounting purposes in excess of amounts included in the authorized revenue requirements through the General Rate Case ("GRC") proceedings. Incremental repair deductions for the years 2012 – 2014 resulted in additional income tax benefits of $133 million in 2014 and $89 million in 2013. As part of the final decision in SCE's 2015 GRC, the CPUC adopted a rate base offset associated with these incremental tax repair deductions during 2012 – 2014. The 2015 rate base offset is $324 million and amortizes on a straight line basis over 27 years. As a result of the rate base offset included in the final decision, SCE recorded an after tax charge of $382 million during the fourth quarter of 2015 to write down the net regulatory asset for recovery of deferred income taxes related to 2012 – 2014 incremental tax repair deductions which is reflected in "Income tax expense" on the consolidated statements of income. Accounting for Uncertainty in Income Taxes Authoritative guidance related to accounting for uncertainty in income taxes requires an enterprise to recognize, in its financial statements, the best estimate of the impact of a tax position by determining if the weight of the available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained upon examination. The guidance requires the disclosure of all unrecognized tax benefits, which includes both the reserves recorded for tax positions on filed tax returns and the unrecognized portion of affirmative claims. Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations: Edison International SCE December 31, (in millions) 2015 2014 2013 2015 2014 2013 Balance at January 1, $ 576 $ 815 $ 812 $ 441 $ 532 $ 571 Tax positions taken during the current year: Increases 54 65 19 48 57 22 Tax positions taken during a prior year: Increases 66 1 43 23 — 45 Decreases 1 (165 ) (143 ) (109 ) (159 ) (93 ) (106 ) Increases – deconsolidation of EME 2 — — 50 — — — Decreases for settlements during the period 3 (2 ) (162 ) — — (55 ) — Balance at December 31, $ 529 $ 576 $ 815 $ 353 $ 441 $ 532 1 Decreases in prior year tax positions relate primarily to re-measurement of uncertain tax positions in connection with receipt of the IRS Revenue Agent Report in June 2015. See discussions in Tax Disputes below. 2 Unrecognized tax benefits of EME have been deconsolidated as a result of the bankruptcy filing by EME, except for tax liabilities for which Edison International and EME are jointly liable under the Internal Revenue Code and applicable state statutes. See Note 15 for further information. During 2013, Edison International increased the amount of unrecognized tax benefits related to the taxable gain on sale of EME’s international assets by approximately $50 million as a result of unfavorable developments during the fourth quarter of 2013. 3 In the fourth quarter of 2014, Edison International has settled all open tax positions with the IRS for taxable year 2003 through 2006. As of December 31, 2015 and 2014 , if recognized, $440 million and $503 million respectively, of the unrecognized tax benefits would impact Edison International's effective tax rate; and $256 million and $370 million , respectively, of the unrecognized tax benefits would impact SCE's effective tax rate. Tax Disputes Tax Years 2007 – 2009 Edison International received a Revenue Agent Report from the IRS in February 2013 which included a proposed adjustment to disallow deductions related to certain capitalized overhead costs. Edison International has tentatively reached an agreement with the IRS regarding this matter, which if finalized, would result in a federal tax liability of approximately $64 million , including interest through December 31, 2015 . Tax Years 2010 – 2012 The IRS Revenue Agent Report was received in June 2015. As a result, Edison International and SCE have re-measured its Federal and State uncertain tax positions and recorded $94 million and $100 million , respectively, of income tax benefits including interest and penalty during the second quarter of 2015. The Revenue Agent Report included a proposed adjustment to disallow deductions related to certain capitalized overhead expenses. Edison International has tentatively reached an agreement with the IRS regarding this matter, which if finalized, would result in a federal tax liability of approximately $9 million , including interest through December 31, 2015 . Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2007 – 2015 and 2003 – 2015, respectively. Accrued Interest and Penalties The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Accrued interest and penalties $ 122 $ 338 $ 40 $ 64 The net after-tax interest and penalties recognized in income tax expense for continuing and discontinued operations are: Edison International SCE December 31, (in millions) 2015 2014 2013 2015 2014 2013 Net after-tax interest and penalties tax benefit (expense) $ 9 $ 41 $ (3 ) $ 14 $ 16 $ 2 |
Compensation and Benefit Plans
Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Benefit Plans | Compensation and Benefit Plans Employee Savings Plan The 401(k) defined contribution savings plan is designed to supplement employees' retirement income. The following employer contributions were made for continuing operations: Edison International SCE (in millions) Years ended December 31, 2015 $ 73 $ 72 2014 71 70 2013 76 76 Pension Plans and Postretirement Benefits Other Than Pensions Pension Plans Noncontributory defined benefit pension plans (some with cash balance features) cover most employees meeting minimum service requirements. SCE recognizes pension expense for its nonexecutive plan as calculated by the actuarial method used for ratemaking. The expected contributions (all by the employer) for Edison International and SCE are approximately $123 million and $94 million , respectively, for the year ending December 31, 2016 . Annual contributions made by SCE to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense. The funded position of Edison International's pension is sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's pension are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, a regulatory asset has been recorded equal to the unfunded status (See Note 1). Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below. Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 4,517 $ 4,178 $ 3,999 $ 3,721 Service cost 142 133 133 124 Interest cost 170 181 150 159 Actuarial (gain) loss (149 ) 469 (143 ) 386 Curtailment gain — (5 ) — — Benefits paid (305 ) (449 ) (261 ) (391 ) Other (1 ) 10 — — Projected benefit obligation at end of year $ 4,374 $ 4,517 $ 3,878 $ 3,999 Change in plan assets Fair value of plan assets at beginning of year $ 3,454 $ 3,477 $ 3,217 $ 3,236 Actual return on plan assets 30 257 27 240 Employer contributions 119 169 97 132 Benefits paid (305 ) (449 ) (261 ) (391 ) Fair value of plan assets at end of year $ 3,298 $ 3,454 $ 3,080 $ 3,217 Funded status at end of year $ (1,076 ) $ (1,063 ) $ (798 ) $ (782 ) Amounts recognized in the consolidated balance sheets consist of 1 : Current liabilities $ (27 ) $ (27 ) $ (4 ) $ (5 ) Long-term liabilities (1,049 ) (1,036 ) (794 ) (777 ) $ (1,076 ) $ (1,063 ) $ (798 ) $ (782 ) Amounts recognized in accumulated other comprehensive loss consist of: Net loss 1 $ 96 $ 102 $ 27 $ 31 Amounts recognized as a regulatory asset: Prior service cost $ 15 $ 20 $ 15 $ 20 Net loss 660 640 660 640 $ 675 $ 660 $ 675 $ 660 Total not yet recognized as expense $ 771 $ 762 $ 702 $ 691 Accumulated benefit obligation at end of year $ 4,200 $ 4,356 $ 3,744 $ 3,881 Pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 4,374 $ 4,517 $ 3,878 $ 3,999 Accumulated benefit obligation 4,200 4,356 3,744 3,881 Fair value of plan assets 3,298 3,454 3,080 3,217 Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.18 % 3.85 % 4.18 % 3.85 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 4.00 % 1 The SCE liability excludes a long-term payable due to Edison International Parent of $123 million and $121 million at December 31, 2015 and 2014 , respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $27 million and $31 million at December 31, 2015 and 2014 , respectively, excludes net loss of $ 18 million and $22 million related to these benefits. In 2015 and 2014, Edison International and SCE adopted new mortality tables that the Society of Actuaries released in October each year that reflect changes in life expectancy. At December 31, 2015 and 2014, this adoption resulted in a change in Edison International's pension plans' projected benefit obligation of $(34) million and $214 million , respectively, including $(31) million and $199 million , respectively, for SCE. Pension expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Service cost $ 142 $ 133 $ 162 $ 139 $ 128 $ 159 Interest cost 170 181 170 155 164 167 Expected return on plan assets (233 ) (229 ) (222 ) (217 ) (213 ) (222 ) Settlement costs 1 — 45 87 — 42 85 Curtailment gain — (4 ) — — — — Amortization of prior service cost 5 5 5 5 5 5 Amortization of net loss 2 40 12 39 35 7 35 Expense under accounting standards 124 143 241 117 133 229 Regulatory adjustment (deferred) (6 ) 8 (53 ) (6 ) 8 (53 ) Total expense recognized $ 118 $ 151 $ 188 $ 111 $ 141 $ 176 1 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was zero for the year ended December 31, 2015 and $3 million for the year ended December 31, 2014 . 2 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $14 million and $8 million , respectively, for the year ended December 31, 2015 . The amount reclassified for Edison International and SCE was $9 million and $4 million , respectively, for the year ended December 31, 2014 . Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump-sum payments to employees retiring in 2014 and 2013 from the SCE Retirement Plan (primarily due to workforce reductions described below) exceeded the estimated service and interest costs for those years. A settlement requires re-measurement of both the plan pension obligations and plan assets as of the date of the settlement. Re-measurement assumption changes result in actuarial gains and losses which are combined with previous unrecognized gains and losses. After re-measurement, GAAP requires an acceleration of a portion of unrecognized net losses attributable to such lump-sum payments as additional pension expense as reflected in the above table. The additional pension expense related to SCE did not impact net income as such amounts are probable of recovery through future rates. The SCE Retirement Plan experienced total actuarial losses of $374 million , including $357 million for SCE during 2014. The actuarial losses in 2014 were primarily due to a decrease in the discount rate (from 4.75% at December 31, 2013 to 4.00% as of August 31, 2014 and 3.85% as of December 31, 2014) due to lower interest rates. Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Net loss (gain) $ 7 $ 85 $ (33 ) $ (9 ) $ 37 $ (24 ) Amortization of net loss and other (15 ) (13 ) (13 ) (9 ) (4 ) (7 ) Total recognized in other comprehensive loss $ (8 ) $ 72 $ (46 ) $ (18 ) $ 33 $ (31 ) Total recognized in expense and other comprehensive loss $ 110 $ 223 $ 142 $ 93 $ 174 $ 145 In accordance with authoritative guidance on rate-regulated enterprises, SCE records regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. The estimated pension amounts that will be amortized to expense in 2016 for continuing operations are as follows: (in millions) Edison International SCE Unrecognized net loss to be amortized 1 $ 36 $ 32 Unrecognized prior service cost to be amortized 4 4 1 The amount of net loss expected to be reclassified from other comprehensive loss for Edison International's continuing operations and SCE is $11 million and $6 million , respectively. Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations: Years ended December 31, 2015 2014 2013 Discount rate 3.85 % 4.50 % 4.13 % Rate of compensation increase 4.00 % 4.00 % 4.50 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % The following benefit payments, which reflect expected future service, are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2016 $ 311 $ 265 2017 310 270 2018 314 280 2019 327 286 2020 327 290 2021 – 2025 1,590 1,447 Postretirement Benefits Other Than Pensions ("PBOP(s)") Most employees retiring at or after age 55 with at least 10 years of service may be eligible for postretirement medical, dental, vision and life insurance benefits. Eligibility for a company contribution toward the cost of these benefits in retirement depends on a number of factors, including the employee's years of service, hire date, and retirement date. Under the terms of the Edison International Health and Welfare Plan ("PBOP Plan") each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of all PBOP benefits with respect to its employees and former employees. A participating employer may terminate the PBOP benefits with respect to its employees and former employees, as may SCE (as Plan sponsor), and, accordingly, the participants' PBOP benefits are not vested benefits. The expected contributions (substantially all of which are expected to be made by SCE) for PBOP benefits are $33 million for the year ended December 31, 2016 . Annual contributions related to SCE employees made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans. SCE has established three voluntary employee beneficiary associations trusts ("VEBA Trusts") that can only be used to pay for retiree health care benefits of SCE. Once funded into the VEBA Trusts, neither SCE nor Edison International can subsequently terminate benefits and recover remaining amounts in the VEBA Trusts. Participants of the PBOP Plan do not have a beneficial interest in the VEBA Trusts. The VEBA Trust assets are sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's other postretirement benefits are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, the unfunded status is offset by a regulatory asset. Information on PBOP Plan assets and benefit obligations is shown below: Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 2,784 $ 2,220 $ 2,775 $ 2,211 Service cost 46 40 46 40 Interest cost 102 117 102 117 Special termination benefits (2 ) 3 (2 ) 3 Actuarial (gain) loss (500 ) 582 (500 ) 582 Plan participants' contributions 20 19 20 19 Benefits paid (100 ) (197 ) (100 ) (197 ) Benefit obligation at end of year $ 2,350 $ 2,784 $ 2,341 $ 2,775 Change in plan assets Fair value of plan assets at beginning of year $ 2,086 $ 2,065 $ 2,086 $ 2,065 Actual return on assets 6 180 6 180 Employer contributions 24 19 24 19 Plan participants' contributions 20 19 20 19 Benefits paid (100 ) (197 ) (100 ) (197 ) Fair value of plan assets at end of year $ 2,036 $ 2,086 $ 2,036 $ 2,086 Funded status at end of year $ (314 ) $ (698 ) $ (305 ) $ (689 ) Amounts recognized in the consolidated balance sheets consist of: Current liabilities $ (15 ) $ (15 ) $ (15 ) $ (15 ) Long-term liabilities (299 ) (683 ) (290 ) (674 ) $ (314 ) $ (698 ) $ (305 ) $ (689 ) Amounts recognized in accumulated other comprehensive loss consist of: Net loss $ 4 $ 4 $ — $ — Amounts recognized as a regulatory (liability) asset: Prior service credit $ (9 ) $ (19 ) $ (9 ) $ (19 ) Net loss 183 577 183 577 $ 174 $ 558 $ 174 $ 558 Total not yet recognized as expense $ 178 $ 562 $ 174 $ 558 Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.55 % 4.16 % 4.55 % 4.16 % Assumed health care cost trend rates: Rate assumed for following year 7.50 % 7.75 % 7.50 % 7.75 % Ultimate rate 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2022 2021 2022 2021 During 2015, the PBOP plan had actuarial gains of $500 million primarily related to $300 million in experience gains, $140 million of income from an increase in the discount rate (from 4.16% at December 31, 2014 to 4.55% as of December 31, 2015) due to higher interest rates, and the adoption of new mortality tables, as discussed below. In 2015 and 2014, Edison International and SCE adopted new mortality tables that the Society of Actuaries released in October each year that reflect changes in life expectancy. At December 31, 2015 and 2014, this adoption resulted in a change in Edison International's PBOP plans' accumulated postretirement benefit obligation of $(62) million and $308 million , respectively, including $(61) million and $307 million , respectively, for SCE. PBOP expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Service cost $ 46 $ 40 $ 49 $ 46 $ 40 $ 48 Interest cost 102 117 98 102 117 97 Expected return on plan assets (116 ) (108 ) (114 ) (116 ) (108 ) (114 ) Special termination benefits 1 1 3 11 1 3 11 Amortization of prior service credit (12 ) (36 ) (36 ) (12 ) (35 ) (35 ) Amortization of net loss 3 6 24 2 5 24 Total expense $ 24 $ 22 $ 32 $ 23 $ 22 $ 31 1 Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage. In accordance with authoritative guidance on rate-regulated enterprises, SCE records regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. The estimated PBOP amounts that will be amortized to expense in 2016 for continuing operations are as follows: Edison International SCE Unrecognized prior service credit to be amortized $ (3 ) $ (3 ) Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations: Years ended December 31, 2015 2014 2013 Discount rate 4.16 % 5.00 % 4.25 % Expected long-term return on plan assets 5.50 % 5.50 % 6.70 % Assumed health care cost trend rates: Current year 7.75 % 7.75 % 8.50 % Ultimate rate 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2021 2020 2020 A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations: Edison International SCE (in millions) One-Percentage-Point Increase One-Percentage-Point Decrease One-Percentage-Point Increase One-Percentage-Point Decrease Effect on accumulated benefit obligation as of December 31, 2015 $ 251 $ (206 ) $ 250 $ (205 ) Effect on annual aggregate service and interest costs 12 (9 ) 12 (9 ) The following benefit payments are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2016 $ 101 $ 101 2017 106 106 2018 111 110 2019 115 114 2020 119 118 2021 – 2025 649 646 Plan Assets Description of Pension and Postretirement Benefits Other than Pensions Investment Strategies The investment of plan assets is overseen by a fiduciary investment committee. Plan assets are invested using a combination of asset classes, and may have active and passive investment strategies within asset classes. Target allocations for 2015 pension plan assets were 29% for U.S. equities, 17% for non-U.S. equities, 35% for fixed income, 15% for opportunistic and/or alternative investments and 4% for other investments. Target allocations for 2015 PBOP plan assets (except for Represented VEBA which is 85% for fixed income, 10% for opportunistic/private equities, and 5% global equities) are 41% for U.S. equities, 17% for non-U.S. equities, 34% for fixed income, 7% for opportunistic and/or alternative investments, and 1% for other investments. Edison International employs multiple investment management firms. Investment managers within each asset class cover a range of investment styles and approaches. Risk is managed through diversification among multiple asset classes, managers, styles and securities. Plan asset classes and individual manager performances are measured against targets. Edison International also monitors the stability of its investment managers' organizations. Allowable investment types include: • United States Equities: Common and preferred stocks of large, medium, and small companies which are predominantly United States-based. • Non-United States Equities: Equity securities issued by companies domiciled outside the United States and in depository receipts which represent ownership of securities of non-United States companies. • Fixed Income: Fixed income securities issued or guaranteed by the United States government, non-United States governments, government agencies and instrumentalities including municipal bonds, mortgage backed securities and corporate debt obligations. A portion of the fixed income positions may be held in debt securities that are below investment grade. Opportunistic, Alternative and Other Investments: • Opportunistic: Investments in short to intermediate term market opportunities. Investments may have fixed income and/or equity characteristics and may be either liquid or illiquid. • Alternative: Limited partnerships that invest in non-publicly traded entities. • Other: Investments diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns. Asset class portfolio weights are permitted to range within plus or minus 3% . Where approved by the fiduciary investment committee, futures contracts are used for portfolio rebalancing and to reallocate portfolio cash positions. Where authorized, a few of the plans' investment managers employ limited use of derivatives, including futures contracts, options, options on futures and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. Derivatives are not used to leverage the plans or any portfolios. Determination of the Expected Long-Term Rate of Return on Assets The overall expected long-term rate of return on assets assumption is based on the long-term target asset allocation for plan assets and capital markets return forecasts for asset classes employed. A portion of the PBOP trust asset returns are subject to taxation, so the expected long-term rate of return for these assets is determined on an after-tax basis. Capital Markets Return Forecasts SCE's capital markets return forecast methodologies primarily use a combination of historical market data, current market conditions, proprietary forecasting expertise, complex models to develop asset class return forecasts and a building block approach. The forecasts are developed using variables such as real risk-free interest, inflation, and asset class specific risk premiums. For equities, the risk premium is based on an assumed average equity risk premium of 5% over cash. The forecasted return on private equity and opportunistic investments are estimated at a 2% premium above public equity, reflecting a premium for higher volatility and lower liquidity. For fixed income, the risk premium is based off of a comprehensive modeling of credit spreads. Fair Value of Plan Assets The PBOP Plan and the Southern California Edison Company Retirement Plan Trust (Master Trust) assets include investments in equity securities, U.S. treasury securities, other fixed-income securities, common/collective funds, mutual funds, other investment entities, foreign exchange and interest rate contracts, and partnership/joint ventures. Equity securities, U.S. treasury securities, mutual and money market funds are classified as Level 1 as fair value is determined by observable, unadjusted quoted market prices in active or highly liquid and transparent markets. Common/collective funds are valued at the net asset value ("NAV") of shares held. Although common/collective funds are determined by observable prices, they are classified as Level 2 because they trade in markets that are less active and transparent. The fair value of the underlying investments in equity mutual funds and equity common/collective funds are based upon stock-exchange prices. The fair value of the underlying investments in fixed-income common/collective funds, fixed-income mutual funds and other fixed income securities including municipal bonds are based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information. Foreign exchange and interest rate contracts are classified as Level 2 because the values are based on observable prices but are not traded on an exchange. Futures contracts trade on an exchange and therefore are classified as Level 1. The partnerships classified as Level 2 can be readily redeemed at NAV and the underlying investments are liquid, publicly traded fixed-income securities which have observable prices. The remaining partnerships/joint ventures are classified as Level 3 because fair value is determined primarily based upon management estimates of future cash flows. Other investment entities are valued similarly to common/collective funds and are therefore classified as Level 2. The Level 1 registered investment companies are either mutual or money market funds. The remaining funds in this category are readily redeemable at NAV and classified as Level 2 and are discussed further at footnote 7 to the pension plan master trust investments table below. Edison International reviews the process/procedures of both the pricing services and the trustee to gain an understanding of the inputs/assumptions and valuation techniques used to price each asset type/class. The trustee and Edison International's validation procedures for pension and PBOP equity and fixed income securities are the same as the nuclear decommissioning trusts. For further discussion see Note 4. The values of Level 1 mutual and money market funds are publicly quoted. The trustees obtain the values of common/collective and other investment funds from the fund managers. The values of partnerships are based on partnership valuation statements updated for cash flows. SCE's investment managers corroborate the trustee fair values. Pension Plan The following table sets forth the Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2015 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total U.S. government and agency securities 1 $ 127 $ 298 $ — $ 425 Corporate stocks 2 720 16 — 736 Corporate bonds 3 — 755 — 755 Common/collective funds 4 — 640 — 640 Partnerships/joint ventures 5 — 111 214 325 Other investment entities 6 — 263 — 263 Registered investment companies 7 117 4 — 121 Interest-bearing cash 6 — — 6 Other 1 96 — 97 Total $ 971 $ 2,183 $ 214 $ 3,368 Receivables and payables, net (70 ) Net plan assets available for benefits $ 3,298 SCE's share of net plan assets $ 3,080 The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2014 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total U.S. government and agency securities 1 $ 140 $ 329 $ — $ 469 Corporate stocks 2 716 14 — 730 Corporate bonds 3 — 801 — 801 Common/collective funds 4 — 524 — 524 Partnerships/joint ventures 5 — 110 289 399 Other investment entities 6 — 278 — 278 Registered investment companies 7 113 30 — 143 Interest-bearing cash 10 — — 10 Other 5 100 — 105 Total $ 984 $ 2,186 $ 289 $ 3,459 Receivables and payables, net (5 ) Net plan assets available for benefits $ 3,454 SCE's share of net plan assets $ 3,217 1 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 2 Corporate stocks are diversified. For both 2015 and 2014 , performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 59% ) and Morgan Stanley Capital International (MSCI) index ( 41% ). 3 Corporate bonds are diversified. At December 31, 2015 and 2014 , respectively, this category includes $123 million and $102 million for collateralized mortgage obligations and other asset backed securities of which $25 million and $15 million are below investment grade. 4 At December 31, 2015 and 2014 , respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's (S&P 500) Index ( 46% and 32% ), Russell 1000 indexes ( 14% and 18% ) and the MSCI Europe, Australasia and Far East (EAFE) Index ( 16% and 20% ). A non-index U.S. equity fund representing 22% and 27% of this category for 2015 and 2014 , respectively, is actively managed. 5 Partnerships/joint venture Level 2 investments consist primarily of a partnership which invests in publicly traded fixed income securities. At December 31, 2015 and 2014 , respectively, 22% and 55% of the Level 3 partnerships are invested in (1) asset backed securities, including distressed mortgages and (2) commercial and residential loans and debt and equity of banks. At December 31, 2015 and 2014 , respectively, 78% and 45% of the Level 3 partnerships are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies. 6 Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities. 7 Level 1 of registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. Level 2 primarily consisted of a short-term bond fund. At December 31, 2015 and 2014 , approximately 63% and 65% , respectively, of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States. The following table sets forth a summary of changes in the fair value of Edison International's and SCE's Level 3 investments: (in millions) 2015 2014 Fair value, net at beginning of period $ 289 $ 390 Actual return on plan assets: Relating to assets still held at end of period 47 114 Relating to assets sold during the period (17 ) (44 ) Purchases 38 13 Dispositions (143 ) (184 ) Transfers in and/or out of Level 3 — — Fair value, net at end of period $ 214 $ 289 Postretirement Benefits Other than Pensions The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2015 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total Common/collective funds 1 $ — $ 424 $ — $ 424 Corporate stocks 2 222 — — 222 Corporate notes and bonds 3 — 867 — 867 Partnerships 4 — 20 73 93 U.S. government and agency securities 5 200 42 — 242 Registered investment companies 6 60 3 — 63 Interest bearing cash 31 — — 31 Other 7 5 113 — 118 Total $ 518 $ 1,469 $ 73 $ 2,060 Receivables and payables, net (24 ) Combined net plan assets available for benefits $ 2,036 The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2014 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total Common/collective funds 1 $ — $ 431 $ — $ 431 Corporate stocks 2 250 — — 250 Corporate notes and bonds 3 — 883 — 883 Partnerships 4 — 19 105 124 U.S. government and agency securities 5 207 36 — 243 Registered investment companies 6 64 5 — 69 Interest bearing cash 29 — — 29 Other 7 5 125 — 130 Total $ 555 $ 1,499 $ 105 $ 2,159 Receivables and payables, net (73 ) Combined net plan assets available for benefits $ 2,086 1 At both December 31, 2015 and 2014 , 38% of the common/collective assets are invested in a large cap index fund which seeks to track performance of the Russell 1000 index. 41% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and MSCI Europe, Australasia and Far East (EAFE) Index. 17% in a non-index U.S. equity fund which is actively managed. 2 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 47% ) and the MSCI All Country World Index ( 53% ) for both 2015 and 2014 . 3 Corporate notes and bonds are diversified and include approximately $27 million and $31 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2015 and 2014 , respectively. 4 At December 31, 2015 and 2014 , respectively, 29% and 50% of the Level 3 partnerships category is invested in (1) asset backed securities including distressed mortgages, (2) distressed companies and (3) commercial and residential loans and debt and equity of banks. At December 31, 2015 and 2014 , respectively, 71% and 50% of the Level 3 partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. 5 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. 6 Level 1 registered investment companies consist of a money market fund. 7 Other includes $97 million and $111 million of municipal securities at December 31, 2015 and 2014 , respectively. At both December 31, 2015 and 2014 , approximately 71% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States. The following table sets forth a summary of changes in the fair value of PBOP Level 3 investments: (in millions) 2015 2014 Fair value, net at beginning of period $ 105 $ 164 Actual return on plan assets Relating to assets still held at end of period (6 ) 18 Relating to assets sold during the period 15 (1 ) Purchases 7 9 Dispositions (47 ) (85 ) Transfers in and/or out of Level 3 — — Fair value, net at end of period $ 74 $ 105 Stock-Based Compensation Edison International maintains a shareholder approved incentive plan (the 2007 Performance Incentive Plan) that includes stock-based compensation. The maximum number of shares of Edison International's common stock authorized to be issued or transferred pursuant to awards under the 2007 Performance Incentive Plan, as amended, is 49.5 million shares, plus the number of any shares subject to awards issued under Edison International's prior plans and outstanding as of April 26, 2007, which expire, cancel or terminate without being exercised or shares being issued ("carry-over shares"). As of December 31, 2015 , Edison International had approximately 18 million shares remaining for future issuance under its stock-based compensation plans. The following table summarizes total expense and tax benefits (expense) associated with stock based compensation: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Stock-based compensation expense 1 : Stock options $ 14 $ 16 $ 15 $ 8 $ 8 $ 11 Performance shares 7 16 4 4 8 2 Restricted stock units 7 7 7 4 4 4 Other 1 1 1 — — — Total stock-based compensation expense $ 29 $ 40 $ 27 $ 16 $ 20 $ 17 Income tax benefits related to stock compensation expense $ 12 $ 16 $ 11 $ 7 $ 8 $ 7 Excess tax benefits 2 15 15 5 23 20 2 1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. 2 Reflected in "Settl |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Entity, Other Assets, Noncurrent [Abstract] | |
Other Investments | Investments Nuclear Decommissioning Trusts Future decommissioning costs of removal of SCE's nuclear assets are expected to be funded from independent decommissioning trusts. The following table sets forth amortized cost and fair value of the trust investments: Longest Maturity Date Amortized Cost Fair Value December 31, (in millions) 2015 2014 2015 2014 Stocks — $ 304 $ 524 $ 1,460 $ 2,031 Municipal bonds 2054 691 681 840 822 U.S. government and agency securities 2046 1,070 777 1,128 836 Corporate bonds 2057 708 346 755 395 Short-term investments and receivables/payables 1 One-year 144 692 148 715 Total $ 2,917 $ 3,020 $ 4,331 $ 4,799 1 Short-term investments include $81 million and $164 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 5, 2016 and January 7, 2015 as of December 31, 2015 and 2014 , respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $1.4 billion and $1.8 billion at December 31, 2015 and 2014 , respectively. The following table sets forth a summary of changes in the fair value of the trusts: Years ended December 31, (in millions) 2015 2014 2013 Balance at beginning of period $ 4,799 $ 4,494 $ 4,048 Gross realized gains 326 197 300 Gross realized losses (26 ) (5 ) (32 ) Unrealized (losses) gains (364 ) 75 160 Other-than-temporary impairments (29 ) (14 ) (47 ) Interest, dividends and other 115 118 113 Contributions 54 5 22 Income taxes (64 ) (62 ) (66 ) Decommissioning disbursements (471 ) (4 ) — Administrative expenses and other (9 ) (5 ) (4 ) Balance at end of period $ 4,331 $ 4,799 $ 4,494 Trust assets are used to pay income taxes as the Trust files separate income taxes returns from SCE. Deferred income taxes related to unrealized gains at December 31, 2015 were $360 million . Accordingly, the fair value of Trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion at December 31, 2015 . Due to regulatory mechanisms, changes in assets of the trusts from income items have no impact on operating revenue or earnings. For the year ended December 31, 2015 , the trust reimbursed SCE for $471 million of 2013, 2014 and 2015 Units 2 and 3 decommissioning costs. Under the San Onofre OII Settlement Agreement, recoveries from the nuclear decommissioning trusts of 2013 and 2014 decommissioning costs were refunded to customers primarily through ERRA. Acquisitions On December 31, 2015, Edison Energy acquired three businesses for an aggregate purchase price of approximately $100 million . Under the terms of the acquisition agreements, the sellers are entitled to additional consideration in the event that certain financial thresholds are achieved. The maximum amount that could be earned under these agreements is approximately $50 million over a four year period. The majority of the purchase price was allocated to goodwill and identifiable intangibles ( $90 million ). Purchase price allocations are preliminary and subject to change. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Included in SCE's regulatory assets and liabilities are regulatory balancing accounts. CPUC authorized balancing account mechanisms require SCE to refund or recover any differences between forecasted and actual costs. The CPUC has authorized balancing accounts for specified costs or programs such as fuel, purchased-power, demand-side management programs, nuclear decommissioning and public purpose programs. Certain of these balancing accounts include a return on rate base of 7.90% in 2015 and 2014 . The CPUC also authorizes the use of a balancing account to recover from or refund to customers differences in revenue resulting from actual and forecasted electricity sales. Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to the applicable income statement accounts. Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are: December 31, (in millions) 2015 2014 Current: Regulatory balancing accounts $ 382 $ 1,088 Energy derivatives 159 159 Other 19 7 Total current 560 1,254 Long-term: Deferred income taxes, net 3,757 3,405 Pensions and other postretirement benefits 849 1,218 Energy derivatives 1,027 850 Unamortized investments, net 182 255 San Onofre 1,043 1,288 Unamortized loss on reacquired debt 201 201 Regulatory balancing accounts 36 44 Environmental remediation 129 107 Other 288 244 Total long-term 7,512 7,612 Total regulatory assets $ 8,072 $ 8,866 SCE's regulatory assets related to energy derivatives are primarily an offset to unrealized losses on derivatives. The regulatory asset changes based on fluctuations in the fair market value of the contracts, in which the original contracts expire in 2 to 45 years. SCE's regulatory assets related to deferred income taxes represent tax benefits passed through to customers. The CPUC requires SCE to flow through certain deferred income tax benefits to customers by reducing electricity rates, thereby deferring recovery of such amounts to future periods. Based on current regulatory ratemaking and income tax laws, SCE expects to recover its regulatory assets related to deferred income taxes over the life of the assets that give rise to the accumulated deferred income taxes, approximately from 1 to 60 years. SCE's regulatory assets related to pensions and other post-retirement plans represent the unfunded net loss and prior service costs of the plans (see "Pension Plans and Postretirement Benefits Other than Pensions" discussion in Note 8). This amount is being recovered through rates charged to customers. SCE's unamortized investments primarily include nuclear assets related to Palo Verde and legacy meters retired as part of the Edison SmartConnect ® program. Nuclear assets related to Palo Verde are expected to be recovered by 2047 and earned a return of 7.90% in 2015 and 2014. SCE's unamortized investments related to legacy meters are expected to be recovered by 2017 and earned a rate of return of 6.46% in 2015 and 2014. In accordance with the San Onofre OII Settlement Agreement, SCE is authorized to recover in rates its San Onofre regulatory asset, generally over a ten -year period commencing February 1, 2012. Under the San Onofre OII Settlement Agreement (see Note 11), SCE was allowed to earn a rate of return of 2.62% for the period 2014 – 2015 and is authorized to continue to earn this rate as adjusted during the amortization period thereafter with changes in SCE's authorized return on debt and preferred equity. SCE's regulatory assets related to San Onofre nuclear fuel will earn a return equal to commercial paper rate that the CPUC uses to calculate interest on balancing accounts. SCE's net regulatory asset related to its unamortized loss on reacquired debt will be recovered over the original amortization period of the reacquired debt over periods ranging from 1 to 35 years. SCE's regulatory assets related to environmental remediation represents a portion of the costs incurred at certain sites that SCE is allowed to recover through customer rates. See "Environmental Remediation" discussed in Note 11. Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: December 31, (in millions) 2015 2014 Current: Regulatory balancing accounts $ 1,106 $ 380 Other 22 21 Total current 1,128 401 Long-term: Costs of removal 2,781 2,826 Recoveries in excess of ARO liabilities 1 1,502 1,956 Regulatory balancing accounts 1,314 1,083 Other 79 24 Total long-term 5,676 5,889 Total regulatory liabilities $ 6,804 $ 6,290 1 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments (see Note 9). SCE's regulatory liabilities related to costs of removal represent differences between asset removal costs recorded and amounts collected in rates for those costs. SCE's regulatory liability equal to nuclear decommissioning trust assets in excess of the related asset retirement obligations which represent future refunds to customers if such assets are not used to decommission the related nuclear facilities. The decrease in this regulatory liability resulted from SCE's obtaining access of decommissioning funds for Units 2 and 3 and changes in market value for decommissioning trust funds for nuclear assets. For further information, see Note 1 and Note 9. Net Regulatory Balancing Accounts Balancing account over and under collections represent differences between cash collected in current rates for specified forecasted costs and such costs that are actually incurred. Undercollections are recorded as regulatory balancing account assets. Overcollections are recorded as regulatory balancing account liabilities. With some exceptions, SCE seeks to adjust rates on an annual basis or at other designated times to recover or refund the balances recorded in its balancing accounts. Regulatory balancing accounts that SCE does not expect to collect or refund in the next 12 months are reflected in the long-term section of the consolidated balance sheets. Regulatory balancing accounts do not have the right of offset and are presented gross in the consolidated balance sheets. Under and over collections accrue interest based on a three-month commercial paper rate published by the Federal Reserve. The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: December 31, (in millions) 2015 2014 Asset (liability) Energy resource recovery account $ (439 ) $ 1,028 New system generation balancing account (171 ) 35 Public purpose programs and energy efficiency programs (683 ) (874 ) Base rate recovery balancing account (319 ) (5 ) Tax accounting memorandum account and pole loading (248 ) — Greenhouse gas auction revenue (75 ) (182 ) FERC balancing accounts 74 (32 ) Generator settlements (4 ) (197 ) Other (137 ) (104 ) Liability $ (2,002 ) $ (331 ) The 2015 GRC established a tax accounting memorandum account (referred to as "TAMA"), which provides that additional 2015 – 2017 tax benefits or costs associated with the following events be tracked: (1) tax accounting method changes, (2) changes in tax laws and regulations impacting depreciation or tax repair deductions, (3) forecasted and actual differences in tax repair deductions, and (4) the impact, if any, of a private letter ruling related to compliance with normalization regulations of the IRS. As a result of this memorandum account, together with the balancing account for pole loading expenditures, any differences between the forecasted tax repair deductions and actual tax repair deductions for 2015 – 2017 will be adjusted annually through customer rates. The TAMA will also reflect the revenue requirement impact of the extension of bonus depreciation. SCE had participated in proceedings seeking recovery of refunds from certain sellers of electricity and natural gas during the energy crisis in California in 2000 – 2001. SCE is authorized to refund to customers any refunds actually realized by SCE, net of litigation costs and amounts retained by SCE as a shareholder incentive pursuant to an established sharing arrangement. During 2014, the FERC approved generator settlement agreements which resulted in total refunds to customers of $219 million of which $15 million is subject to a shareholder incentive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Third-Party Power Purchase Agreements SCE entered into various agreements, which were approved by the CPUC and met critical contract provisions (including completion of major milestones for construction), to purchase power and electric capacity, including: • Renewable Energy Contracts – California law requires retail sellers of electricity to comply with a RPS by delivering renewable energy, primarily through power purchase contracts. Renewable energy contracts generally contain escalation clauses requiring increases in payments. As of December 31, 2015 , SCE had 93 renewable energy contracts which expire at various dates through 2038 . • Qualifying Facility Power Purchase Agreements – Under the Public Utility Regulatory Policies Act of 1978 ("PURPA"), electric utilities are required, with exceptions, to purchase energy and capacity from independent power producers that are qualifying co-generation facilities and qualifying small power production facilities ("QFs"). As of December 31, 2015 , SCE had 71 QF contracts. • Other Power Purchase Agreements – SCE has entered into agreements with third parties, including 6 combined heat and power contracts, 9 tolling arrangements and 11 resource adequacy contracts which expire at various dates through 2025. At December 31, 2015 , the undiscounted future minimum expected payments for the SCE power purchase agreements that have been approved by the CPUC and have completed major milestones for construction were as follows: (in millions) Renewable Energy Contracts QF Power Purchase Agreements Other Purchase Agreements 2016 $ 1,234 $ 223 $ 741 2017 1,417 189 758 2018 1,472 149 589 2019 1,562 87 503 2020 1,605 39 459 Thereafter 21,439 69 1,022 Total future commitments $ 28,729 $ 756 $ 4,072 The table above includes contractual obligations for power procurement contracts that met the critical contract provisions as of December 31, 2015. Additionally, as of December 31, 2015, SCE has signed contracts that have not met the critical contract provisions that would increase contractual obligations by $29 million in 2016, $166 million in 2017, $257 million in 2018, $352 million in 2019, $747 million in 2020 and $16.4 billion thereafter, if all principal provisions are completed. Many of the power purchase agreements that SCE entered into with independent power producers are treated as operating and capital leases. The following table shows the future minimum lease payments due under the contracts that are treated as operating and capital leases (these amounts are also included in the table above). Due to the inherent uncertainty associated with the reliability of the fuel source, expected purchases from most renewable energy contracts do not meet the definition of a minimum lease payment and have been excluded from the operating and capital lease table below but remain in the table above. The future minimum lease payments for capital leases are discounted to their present value in the table below using SCE's incremental borrowing rate at the inception of the leases. The amount of this discount is shown in the table below as the amount representing interest. (in millions) Operating Leases Capital Leases 2016 $ 374 $ 1 2017 354 1 2018 250 2 2019 186 2 2020 174 2 Thereafter 1,745 10 Total future commitments $ 3,083 $ 18 Amount representing executory costs (7 ) Amount representing interest (3 ) Net commitments $ 8 Operating lease expense for power purchase agreements was $1.7 billion in 2015 , $1.7 billion in 2014 and $1.5 billion in 2013 (including contingent rents of $1.1 billion in 2015 , $944 million in 2014 and $843 million in 2013 ). The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power. At December 31, 2015 and 2014 , SCE's net capital leases reflected in utility plant on the consolidated balance sheets were $8 million and $203 million , including accumulated amortization of $2 million and $46 million , respectively. SCE had $1 million and $7 million included in "Other current liabilities" and $7 million and $196 million included in "Other deferred credits and other long-term liabilities" at December 31, 2015 and 2014 , respectively, representing the present value of the minimum lease payments due under these contracts recorded on the consolidated balance sheets. Other Lease Commitments The following summarizes the estimated minimum future commitments for SCE's noncancelable other operating leases (excluding SCE's power purchase agreements discussed above): (in millions) Operating Leases – Other 2016 $ 68 2017 52 2018 44 2019 35 2020 27 Thereafter 271 Total future commitments $ 497 Operating lease expense for other leases (primarily related to vehicles, office space, nuclear fuel storage space and other equipment) were $80 million in 2015 , $96 million in 2014 and $78 million in 2013 . Certain leases on office facilities contain escalation clauses requiring annual increases in rent. The rentals payable under these leases may increase by a fixed amount each year, a percentage over base year, or the customer price index. Other Commitments The following summarizes the estimated minimum future commitments for SCE's other commitments: (in millions) 2016 2017 2018 2019 2020 Thereafter Total Other contractual obligations $ 181 $ 140 $ 101 $ 56 $ 59 $ 547 $ 1,084 Costs incurred for other commitments were $182 million in 2015 , $90 million in 2014 and $153 million in 2013 . SCE has fuel supply contracts for Palo Verde which require payment only if the fuel is made available for purchase. SCE also has commitments related to maintaining reliability and expanding SCE's transmission and distribution system. The table above excludes other contractual obligations that have not met the critical contract provisions. As of December 31, 2015, SCE has signed capacity reduction contracts that have not met critical contract provisions and are, therefore, not included in the table above. These contracts would increase the contractual obligations by $10 million in 2017, $98 million in 2018, $82 million in 2019, $79 million in 2020 and $483 million thereafter, if all principal provisions are completed. Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. Edison International and SCE have provided indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated. SCE has indemnified the City of Redlands, California in connection with Mountainview's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. SCE has not recorded a liability related to this indemnity. Contingencies In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its results of operations or liquidity. San Onofre Related Matters Replacement steam generators were installed at San Onofre in 2010 and 2011. On January 31, 2012, a leak suddenly occurred in one of the heat transfer tubes in San Onofre's Unit 3 steam generators. The Unit was safely taken off-line and subsequent inspections revealed excessive tube wear. Unit 2 was off-line for a planned outage when areas of unexpected tube wear were also discovered. On June 6, 2013, SCE decided to permanently retire Units 2 and 3. Settlement of San Onofre CPUC Proceedings In November 2014, the CPUC approved the San Onofre OII Settlement Agreement that SCE had entered into with TURN, ORA, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth. The San Onofre OII Settlement Agreement resolved the CPUC's investigation regarding the Steam Generator Replacement Project at San Onofre and the related outages and subsequent shutdown of San Onofre. The San Onofre OII Settlement Agreement does not affect proceedings related to recoveries from third parties described below, but does describe how shareholders and customers will share any recoveries. Challenges related to San Onofre CPUC Proceedings A federal lawsuit challenging the CPUC's authority to permit rate recovery of San Onofre costs and an application to the CPUC for rehearing of its decision approving the San Onofre OII Settlement Agreement were filed in November and December 2014, respectively. In April 2015, the federal lawsuit was dismissed with prejudice and the plaintiffs in that case appealed the dismissal to the Ninth Circuit in May 2015. Both the appeal and the application for rehearing remain pending. In April 2015, the Alliance for Nuclear Responsibility ("A4NR") filed a petition to modify the CPUC's decision approving the San Onofre OII Settlement Agreement based on SCE's alleged failures to disclose communications between SCE and CPUC decision-makers pertaining to issues in the San Onofre OII. The petition seeks the reversal of the decision approving the San Onofre OII Settlement Agreement and reopening of the OII proceeding. Subsequently, TURN and ORA filed responses supporting A4NR's petition to reopen the San Onofre OII proceeding. In August 2015, ORA filed its own petition to modify the CPUC's decision approving the San Onofre OII Settlement Agreement seeking to set aside the settlement and reopen the San Onofre OII proceeding. SCE and SDG&E responded to this petition in September 2015. Both petitions remain pending before the CPUC. In July 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its Chief Executive Officer and Chief Financial Officer and was later amended to include SCE's former President as a defendant. The lawsuit alleges that the defendants violated the securities laws by failing to disclose that Edison International had ex parte contacts with CPUC decision-makers regarding the San Onofre OII that were either unreported or more extensive than initially reported. The complaint purports to be filed on behalf of a class of persons who acquired Edison International common stock between March 21, 2014 and June 24, 2015. Subsequently and also in July 2015, a federal shareholder derivative lawsuit was filed against members of the Edison International Board of Directors for breach of fiduciary duty and other claims. The federal derivative lawsuit is based on similar allegations to the federal class action securities lawsuit and seeks monetary damages, including punitive damages, and various corporate governance reforms. An additional federal shareholder derivative lawsuit making essentially the same allegations was filed in August and was subsequently consolidated with the July 2015 federal derivative lawsuit. In October 2015, a shareholder derivative lawsuit was filed in California state court against members of the Edison International Board of Directors for breach of fiduciary duty and other claims, making similar allegations to those in the federal derivative lawsuits discussed above. In November 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its Chief Executive Officer and Treasurer by an Edison International employee, alleging claims under the Employee Retirement Income Security Act ("ERISA"). The complaint purports to be filed on behalf of a class of Edison International employees who were participants in the Edison 401(k) Savings Plan and invested in the Edison International Stock Fund between March 27, 2014 and June 24, 2015. The complaint alleges that defendants breached their fiduciary duties because they knew or should have known that investment in the Edison International Stock Fund was imprudent because the price of Edison International common stock was artificially inflated due to Edison International's alleged failure to disclose certain ex parte communications with CPUC decision-makers related to the San Onofre OII. Edison International and SCE cannot predict the outcome of these proceedings. Ex Parte Communications In February 2015, SCE filed in the San Onofre OII proceeding a Late-Filed Notice of Ex Parte Communication regarding a meeting in March 2013 between an SCE senior executive and the president of the CPUC, both of whom have since retired from their respective positions. In August 2015, the OII Administrative Law Judge issued a ruling that nine additional communications should have been reported in addition to a March 2013 communication that SCE had reported in February 2015. In December 2015, the CPUC issued a final decision that imposed a penalty of $16.74 million in connection with eight communications that the decision finds should have been reported and two violations of a CPUC ethical rule (reflected in "Operation and maintenance" on the consolidated statements of income). NRC Proceedings As part of the NRC's review of the San Onofre outage and proceedings related to the possible restart of Unit 2, the NRC appointed an Augmented Inspection Team to review SCE's performance. In December 2013, the NRC finalized an Inspection Report in connection with the Augmented Inspection Team's review and SCE's response to an earlier NRC Confirmatory Action Letter. The NRC's report identified a "white" finding (low to moderate safety significance) for failing to ensure that MHI's modeling and analysis were adequate. In November 2014, the NRC closed the "white" finding, confirming that there were no additional issues identified that could impact SCE's ability to safely decommission San Onofre. The NRC also issued an Inspection Report to MHI containing a Notice of Nonconformance for its flawed computer modeling in the design of San Onofre's steam generators. On October 2, 2014, the NRC's Office of Inspector General ("OIG") published a report on the NRC's oversight of SCE's evaluation process for the RSGs, which was used to determine whether changes in the design of a component would require an amendment to the operating license of a nuclear power plant. The OIG determined that the NRC "missed opportunities" in connection with its 2009 inspection of SCE's evaluation process, and concluded that without further review of information concerning SCE's evaluation conclusions, there is no assurance that the NRC reached the correct conclusion in its 2009 inspection that San Onofre did not need a license amendment for its steam generator replacement. In July 2015, the NRC issued a final decision regarding SCE's compliance with the license amendment regulatory process related to the RSGs, finding the issue to be moot, given the permanent cessation of operation of San Onofre. In March 2015, the NRC issued a lessons learned report in which it restated earlier NRC inspection findings that SCE properly concluded that the replacement steam generators at San Onofre did not require a formal license amendment prior to installation using a common NRC process for replacement components. Certain anti-nuclear groups and individual members of Congress have alleged that SCE knew of deficiencies in the steam generators when they were installed or otherwise did not correctly follow NRC requirements for the design and installation of the replacement steam generators, all of which SCE has vigorously denied, and have called for investigations, including by the Department of Justice. SCE cannot predict when or whether ongoing proceedings by the NRC will be completed or whether inquiries by other government agencies concerning how the RSG project was conducted will be initiated or reopened. NEIL Insurance Claims San Onofre carries accidental property damage and carried accidental outage insurance issued by Nuclear Electric Insurance Limited ("NEIL"). Through August 30, 2014, the San Onofre owners had submitted approximately $433 million in claims (SCE's share of which is approximately $339 million ) under the accidental outage insurance. The accidental outage insurance at San Onofre has been canceled prospectively as a result of the permanent retirement. In October 2015, San Onofre owners reached an agreement with NEIL to resolve all insurance claims arising out of the failures of the San Onofre replacement steam generators for a total payment by NEIL of $400 million (SCE's share of which is approximately $313 million ). According to the terms of the San Onofre OII Settlement Agreement, the settlement proceeds will be applied to reimburse the costs of pursuing the recovery and then allocated 95% to customers and 5% to SCE ( $20 million pre-tax). SCE customers' portion of amounts recovered from NEIL has been distributed to SCE customers via a credit to SCE's ERRA account. MHI Claims SCE is also pursuing claims against Mitsubishi Heavy Industries, Ltd. and a related company ("MHI"), which designed and supplied the RSGs. MHI warranted the RSGs for an initial period of 20 years from acceptance and is contractually obligated to repair or replace defective items with dispatch and to pay specified damages for certain repairs. MHI's stated liability under the purchase agreement is limited to $138 million and excludes consequential damages, defined to include "the cost of replacement power;" however, limitations in the contract are subject to applicable exceptions both in the contract and under law. SCE has advised MHI that it believes one or more of such exceptions apply and that MHI's liability is not limited to $138 million . MHI has advised SCE that it disagrees. In October 2013, SCE sent MHI a formal request for binding arbitration under the auspices of the International Chamber of Commerce in accordance with the purchase contract seeking damages for all losses. In the request for arbitration, SCE alleges contract and tort claims and seeks at least $4 billion in damages on behalf of itself and its customers and in its capacity as Operating Agent for San Onofre. MHI has denied any liability and has asserted counterclaims for $41 million , for which SCE has denied any liability. Each of the other San Onofre owners sued MHI, alleging claims arising from MHI's supplying the faulty steam generators. These litigation claims have been stayed pending the arbitration. The other co-owners (SDG&E and Riverside) have been added as additional claimants in the arbitration. The arbitration is being conducted pursuant to a confidentiality order issued by the arbitration panel. Hearings are expected to occur in the first half of 2016 and a decision may be issued by year-end 2016. SCE, on behalf of itself and the other San Onofre co-owners, has submitted seven invoices to MHI totaling $149 million for steam generator repair costs incurred through April 30, 2013. MHI paid the first invoice of $45 million , while reserving its right to challenge it and subsequently rejected a portion of the first invoice and has not paid further invoices, claiming further documentation is required, which SCE disputes. SCE recorded its share of the invoice paid (approximately $35 million ) as a reduction of repair and inspection costs in 2012. Under the San Onofre OII Settlement Agreement, recoveries from MHI (including amounts paid by MHI under the first invoice), if any, will first be applied to reimburse costs incurred in pursuing such recoveries, including litigation costs. To the extent SCE's share of recoveries from MHI exceed such costs, they will be allocated 50% to customers and 50% to SCE. The first $282 million of SCE's customers' portion of such recoveries from MHI will be distributed to customers via a credit to a sub-account of SCE's Base Revenue Requirement Balancing Account ("BRRBA"), reducing revenue requirements from customers. Amounts in excess of the first $282 million distributable to SCE customers will reduce SCE's regulatory asset represented by the unamortized balance of investment in San Onofre base plant, reducing the revenue requirement needed to amortize such investment. The amortization period, however, will be unaffected. Any additional amounts received after the regulatory asset is recovered will be applied to the BRRBA. The San Onofre OII Settlement Agreement provides the utilities with the discretion to resolve the NEIL and MHI disputes without CPUC approval or review, but the utilities are obligated to use their best efforts to inform the CPUC of any settlement or other resolution of these disputes to the extent this is possible without compromising any aspect of the resolution. SCE and SDG&E have also agreed to allow the CPUC to review the documentation of any final resolution of the NEIL and MHI disputes and the litigation costs incurred in pursuing claims against NEIL and MHI to ensure they are not exorbitant in relation to the recovery obtained. There is no assurance that there will be any recovery from MHI or, if there is a recovery, that it will equal or exceed the litigation costs incurred to pursue the recovery. Long Beach Service Interruptions In July 2015, SCE's customers who are served via the network portion of SCE's electric system in Long Beach, California experienced service interruptions due to multiple underground vault fires and underground cable failures. No personal injuries have been reported in connection with these events. SCE instituted an internal investigation and commissioned an external investigation of these events and their causes, which revealed that the main cause of the interruptions was a lack of adequate management oversight of the downtown network system. The investigations also revealed deficiencies in maintaining the knowledge base on the configuration and operation of the system, and a lack of sophisticated controls needed to more efficiently and effectively prevent and respond to the cascading events that occurred. These events and their causes are also being investigated by the CPUC's SED. SCE is unable to estimate a possible loss or range of loss associated with any penalties that may be imposed by the CPUC related to this matter. Subject to applicable deductibles, SCE is generally insured against customer claims arising from these service interruptions. Environmental Remediation SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain. At December 31, 2015 , SCE's recorded estimated minimum liability to remediate its 19 identified material sites (sites in which the upper end of the range of the costs is at least $1 million ) was $131 million , including $80 million related to San Onofre. In addition to these sites, SCE also has 39 immaterial sites for which the total minimum recorded liability was $3 million . Of the $134 million total environmental remediation liability for SCE, $129 million has been recorded as a regulatory asset. SCE expects to recover $47 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $82 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites. The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $164 million and $8 million , respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes. SCE expects to clean up and mitigate its identified sites over a period of up to 30 years . Remediation costs for each of the next five years are expected to range from $7 million to $26 million . Costs incurred for years ended December 31, 2015, 2014 and 2013 were $5 million , $4 million and $8 million , respectively. Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates. Nuclear Insurance Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately $13.5 billion . SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available ( $375 million ) through a Facility Form issued by American Nuclear Insurers ("ANI"). The balance is covered by a loss sharing program among nuclear reactor licensees. If a nuclear incident at any licensed reactor in the United States results in claims and/or costs which exceed the primary insurance at that plant site, all nuclear reactor licensees could be required to contribute their share of the liability in the form of a deferred premium. The ANI Facility Form coverage includes broad liability protection for bodily injury or offsite property damage caused by nuclear material at San Onofre, or while in transit to or from San Onofre. The Facility Form, however, includes several exclusions. First, it excludes onsite property damage to the nuclear facility itself and onsite cleanup costs, but as discussed below SCE maintains separate NEIL property damage coverage for such events. Second, tort claims of onsite workers are excluded, but SCE also maintains an ANI Master Worker Form policy that provides coverage for non-licensee workers. This program provides a shared industry aggregate limit of $375 million . Industry losses covered by this program could reduce limits available to SCE. Third, offsite environmental costs arising out of government orders or directives, including those issued under the Comprehensive Environmental Response, Compensation and Liability Act, also known as CERCLA, are excluded, with minor exceptions from clearly identifiable accidents. Based on its ownership interests, SCE could be required to pay a maximum of approximately $255 million per nuclear incident. However, it would have to pay no more than approximately $38 million per incident in any one year. If the public liability limit above is insufficient, federal law contemplates that additional funds may be appropriated by Congress. This could include an additional assessment on all licensed reactor operators as a measure for raising further federal revenue. NEIL, a mutual insurance company owned by entities with nuclear facilities, issues nuclear property damage and accidental outage insurance policies. The amount of nuclear property insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $1.06 billion . These policies include coverage for decontamination liability. Property damage insurance also covers damages caused by acts of terrorism up to specified limits. Additional outage insurance covers part of replacement power expenses during an accident-related nuclear unit outage. The accidental outage insurance at San Onofre has been canceled as a result of the permanent retirement, but that insurance continues to be in effect at Palo Verde. If losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $45 million per year. Insurance premiums are charged to operating expense. Wildfire Insurance Severe wildfires in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of the failure of electric and other utility equipment. Invoking a California Court of Appeal decision, plaintiffs pursuing these claims have relied on the doctrine of inverse condemnation, which can impose strict liability (including liability for a claimant's attorneys' fees) for property damage. Prolonged drought conditions in California have also increased the risk of severe wildfire events. On June 1, 2015, Edison International renewed its liability insurance coverage, which included coverage for SCE's wildfire liabilities up to a $610 million limit (with a self-insured retention of $10 million per wildfire occurrence). Various coverage limitations within the policies that make up this insurance coverage could result in additional self-insured costs in the event of multiple wildfire occurrences during the policy period (June 1, 2015 to May 31, 2016). SCE also has additional coverage for certain wildfire liabilities of $390 million , which applies when total covered wildfire claims exceed $610 million , through June 14, 2016. SCE may experience coverage reductions and/or increased insurance costs in future years. No assurance can be given that future losses will not exceed the limits of SCE's insurance coverage. Spent Nuclear Fuel Under federal law, the Department of Energy ("DOE") is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE has not met its contractual obligation to accept of spent nuclear fuel. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for their current license period. In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million (SCE share $112 million ) to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award. SCE, as operating agent, filed a lawsuit on behalf of the San Onofre owners against the DOE in the Court of Federal Claims se |
Preferred and Preference Stock
Preferred and Preference Stock of Utility | 12 Months Ended |
Dec. 31, 2015 | |
Preferred And Preference Stock Of Utility Disclosure [Abstract] | |
Preferred and Preference Stock of Utility | Preferred and Preference Stock of Utility SCE's authorized shares are: $100 cumulative preferred – 12 million shares, $25 cumulative preferred – 24 million shares and preference with no par value – 50 million shares. SCE's outstanding shares are not subject to mandatory redemption. There are no dividends in arrears for the preferred or preference shares. Shares of SCE's preferred stock have liquidation and dividend preferences over shares of SCE's common stock and preference stock. All cumulative preferred shares are redeemable. When preferred shares are redeemed, the premiums paid, if any, are charged to common equity. No preferred shares were issued or redeemed in the years ended December 31, 2015 , 2014 and 2013 . There is no sinking fund requirement for redemptions or repurchases of preferred shares. Shares of SCE's preference stock rank junior to all of the preferred stock and senior to all common stock. Shares of SCE's preference stock are not convertible into shares of any other class or series of SCE's capital stock or any other security. There is no sinking fund requirement for redemptions or repurchases of preference shares. Preferred stock and preference stock is: Shares Outstanding Redemption Price December 31, (in millions, except shares and per-share amounts) 2015 2014 Cumulative preferred stock $25 par value: 4.08% Series 650,000 $ 25.50 $ 16 $ 16 4.24% Series 1,200,000 25.80 30 30 4.32% Series 1,653,429 28.75 41 41 4.78% Series 1,296,769 25.80 33 33 Preference stock No par value: 4.51% Series A (variable and noncumulative) 3,250,000 100.00 — 325 6.50% Series D (cumulative) 1,250,000 100.00 125 125 6.25% Series E (cumulative) 350,000 1,000.00 350 350 5.625% Series F (cumulative) 190,004 2,500.00 475 475 5.10% Series G (cumulative) 160,004 2,500.00 400 400 5.75% Series H (cumulative) 110,004 2,500.00 275 275 5.375% Series J (cumulative) 130,004 2,500.00 325 — SCE's preferred and preference stock 2,070 2,070 Less issuance costs (50 ) (48 ) Edison International's preferred and preference stock of utility $ 2,020 $ 2,022 Shares of Series D and E preference stock, issued in 2011 and 2012 , respectively, may be redeemed at par, in whole or in part, after March 1, 2016 and February 1, 2022, respectively. Shares of Series F, G, H and J preference stock, issued in 2012 , 2013 , 2014 and 2015, respectively, may be redeemed at par, in whole, but not in part, at any time prior to June 15, 2017, March 15, 2018, March 15, 2024 and September 15, 2025, respectively, if certain changes in tax or investment company laws occur. After June 15, 2017, March 15, 2018, March 15, 2024 and September 15, 2025, SCE may redeem the Series F, G, H and J shares, respectively, at par, in whole or in part. For shares of Series H and J preference stock, distributions will accrue and be payable at a floating rate from and including March 15, 2024 and September 15, 2025, respectively. Shares of Series F, G, H and J preference stock were issued to SCE Trust I, SCE Trust II, SCE Trust III and SCE Trust IV, respectively, special purpose entities formed to issue trust securities as discussed in Note 3. The proceeds from the sale of the shares of Series J were used to redeem $325 million of the Company's Series A preference stock. Preference shares are not subject to mandatory redemption. At December 31, 2015 , declared dividends related to SCE's preferred and preference stock were $14 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Beginning balance $ (58 ) $ (13 ) $ (28 ) $ (11 ) Pension and PBOP – net gain (loss): Other comprehensive income (loss) before reclassifications (8 ) (58 ) 1 (21 ) Reclassified from accumulated other comprehensive loss 1 10 11 5 2 Other — 2 — 2 Change 2 (45 ) 6 (17 ) Ending balance $ (56 ) $ (58 ) $ (22 ) $ (28 ) 1 These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information. |
Interest and Other Income and O
Interest and Other Income and Other Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income and Other Expenses | Interest and Other Income and Other Expenses Interest and other income and other expenses are as follows: Years ended December 31, (in millions) 2015 2014 2013 SCE interest and other income: Equity allowance for funds used during construction $ 87 $ 65 $ 72 Increase in cash surrender value of life insurance policies and life insurance benefits 26 36 30 Interest income 4 5 10 Other 6 16 10 Total SCE interest and other income 123 122 122 Other income of Edison International Parent and Other 1 51 25 2 Total Edison International interest and other income $ 174 $ 147 $ 124 SCE other expenses: Civic, political and related activities and donations $ (35 ) $ (35 ) $ (37 ) Other (24 ) (44 ) (37 ) Total SCE other expenses (59 ) (79 ) (74 ) Other expense of Edison International Parent and Other — (1 ) — Total Edison International other expenses $ (59 ) $ (80 ) $ (74 ) 1 Reflects Edison Capital's income related to the sale of affordable housing projects. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations EME Chapter 11 Bankruptcy In December 2012, EME and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division. The Amended Plan of Reorganization, including the EME Settlement Agreement, was completed on April 1, 2014 with the sale of substantially all of EME's assets to NRG Energy, Inc. and the transactions called for in the EME Settlement Agreement, including an initial cash payment to the Reorganization Trust (as defined below) of $225 million in April 2014. In August 2014, Edison International entered into an amendment of the EME Settlement Agreement that finalized the remaining matters related to the EME Settlement including setting the amount of the two installment payments. Edison International made an installment payment of $204 million on September 30, 2015 and is scheduled to make the remaining $214 million payment in September, 2016. Income from discontinued operations, net of tax, was $35 million (pre-tax income of $15 million ), $185 million (pre-tax loss of $525 million ) and $36 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The 2015 income was primarily due to income tax benefits (from revised estimates based on filing of the 2014 tax returns) and insurance recoveries. The 2014 income was related to the impact of completing the transactions called for in the EME Settlement Agreement and income tax benefits from resolution of uncertain tax positions and other impacts related to EME. The pre-tax loss of $525 million in 2014 was primarily related to the $225 million initial cash payment to the Reorganization Trust, the two installment payments discussed above and the other assumed liabilities. The 2013 income was from income tax benefits of $36 million from revised estimates of the tax impact of a tax deconsolidation of EME from Edison International as originally contemplated prior to the EME Settlement. See Note 7 for more information. |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental Cash Flows Information Supplemental cash flows information is: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Cash payments (receipts) for interest and taxes: Interest, net of amounts capitalized $ 512 $ 504 $ 477 $ 478 $ 487 $ 462 Tax payments (refunds), net 1 32 28 144 (88 ) 28 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 156 $ 136 $ 116 $ — $ 147 $ — Preferred and preference stock 14 18 30 14 18 30 Details of debt exchange: Pollution-control bonds redeemed (2.875%) (203 ) — — (203 ) — — Pollution-control bonds issued (1.875%) 203 — — 203 — — Notes issued under EME Settlement Agreement $ — $ 418 $ — $ — $ — $ — SCE's accrued capital expenditures at December 31, 2015 , 2014 and 2013 were $543 million , $837 million and $661 million , respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid. During 2015, an SCE power contract classified as a capital lease was amended, which resulted in a reduction in the lease obligations and asset by $147 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions Edison International and SCE provide and receive various services to and from its subsidiaries and affiliates. Services provided to Edison International by SCE are priced at fully loaded cost (i.e., direct cost of good or service and allocation of overhead cost). Specified administrative services such as payroll, employee benefit programs, all performed by Edison International or SCE employees, are shared among all affiliates of Edison International. Costs are allocated based on one of the following formulas: percentage of time worked, equity in investment and advances, number of employees, or multi-factor (operating revenues, operating expenses, total assets and number of employees). Edison International allocates various corporate administrative and general costs to SCE and other subsidiaries using established allocation factors. At December 31, 2015 and 2014, Edison International has recorded liabilities of $210 million and $184 million , respectively, related to Capistrano Wind Holdings and Capistrano Wind for future payments due under the tax allocation agreements assuming net operating losses and credits generated by these entities are monetized. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Edison International's quarterly financial data is as follows: 2015 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 11,524 $ 2,341 $ 3,763 $ 2,908 $ 2,512 Operating income 2,008 340 608 524 538 Income (loss) from continuing operations 1 1,082 (47 ) 405 406 318 Income (loss) from discontinued operations, net 35 (8 ) 43 — — Net income (loss) attributable to common shareholders 1,020 (79 ) 421 379 299 Basic earnings (loss) per share: Continuing operations $ 3.02 $ (0.22 ) $ 1.16 $ 1.16 $ 0.92 Discontinued operations 0.11 (0.02 ) 0.13 — — Total $ 3.13 $ (0.24 ) $ 1.29 $ 1.16 $ 0.92 Diluted earnings (loss) per share: Continuing operations $ 2.99 $ (0.22 ) $ 1.15 $ 1.15 $ 0.91 Discontinued operations 0.11 (0.02 ) 0.13 — — Total $ 3.10 $ (0.24 ) $ 1.28 $ 1.15 $ 0.91 Dividends declared per share 1.7325 0.4800 0.4175 0.4175 0.4175 Common stock prices: High 69.59 66.29 63.18 64.55 69.59 Low 55.18 57.51 55.52 55.18 61.02 Close 59.21 59.21 63.07 55.58 62.47 1 In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 13,413 $ 3,114 $ 4,356 $ 3,016 $ 2,926 Operating income 2,472 693 874 575 331 Income from continuing operations 1 1,536 406 524 382 224 Income (loss) from discontinued operations, net 185 39 (16 ) 184 (22 ) Net income attributable to common shareholders 1,612 420 480 536 176 Basic earnings (loss) per share: Continuing operations $ 4.38 $ 1.17 $ 1.52 $ 1.08 $ 0.61 Discontinued operations 0.57 0.12 (0.05 ) 0.56 (0.07 ) Total $ 4.95 $ 1.29 $ 1.47 $ 1.64 $ 0.54 Diluted earnings (loss) per share: Continuing operations $ 4.33 $ 1.15 $ 1.51 $ 1.07 $ 0.61 Discontinued operations 0.56 0.12 (0.05 ) 0.56 (0.07 ) Total $ 4.89 $ 1.27 $ 1.46 $ 1.63 $ 0.54 Dividends declared per share 1.4825 0.4175 0.3550 0.3550 0.3550 Common stock prices: High 68.74 68.74 59.54 58.24 56.61 Low 44.74 55.88 54.12 53.63 44.74 Close 65.48 65.48 55.92 58.11 56.61 1 During the first quarter of 2014, SCE recorded an impairment charge of $231 million ( $96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ( $24 million after-tax) consistent with the advice for reimbursement of recorded costs. SCE's quarterly financial data is as follows: 2015 (in millions) Total Fourth Third Second First Operating revenue $ 11,485 $ 2,319 $ 3,757 $ 2,901 $ 2,508 Operating income 2,080 366 626 536 550 Net income (loss) 1 1,111 (51 ) 417 412 333 Net income (loss) available for common stock 998 (80 ) 389 384 305 Common dividends declared 611 170 147 147 147 1 In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014 (in millions) Total Fourth Third Second First Operating revenue $ 13,380 $ 3,104 $ 4,338 $ 3,014 $ 2,924 Operating income 2,529 715 881 593 342 Net income 1 1,565 408 531 392 234 Net income available for common stock 1,453 380 503 362 208 Common dividends declared 525 147 126 126 126 1 During the first quarter of 2014, SCE recorded an impairment charge of $231 million ( $96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ( $24 million after-tax) consistent with the advice for reimbursement of recorded costs. Due to the seasonal nature of Edison International and SCE's business, a significant amount of revenue and earnings are recorded in the third quarter of each year. As a result of rounding, the total of the four quarters does not always equal the amount for the year. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent | EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED BALANCE SHEETS December 31, (in millions) 2015 2014 Assets: Cash and cash equivalents $ 7 $ 8 Other current assets 259 531 Total current assets 266 539 Investments in subsidiaries 12,696 12,416 Deferred income taxes 626 547 Other long-term assets 111 172 Total assets $ 13,699 $ 13,674 Liabilities and equity: Short-term debt $ 646 $ 619 Current portion of long-term debt 214 204 Other current liabilities 368 377 Total current liabilities 1,228 1,200 Long-term debt 399 610 Other long-term liabilities 704 904 Total equity 11,368 10,960 Total liabilities and equity $ 13,699 $ 13,674 EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2015 , 2014 and 2013 (in millions) 2015 2014 2013 Operating revenue and other income $ 3 $ 3 $ — Operating expenses and interest expense 78 94 72 Loss before equity in earnings of subsidiaries (75 ) (91 ) (72 ) Equity in earnings of subsidiaries 1,025 1,482 922 Income before income taxes 950 1,391 850 Income tax benefit (35 ) (36 ) (29 ) Income from continuing operations 985 1,427 879 Income from discontinued operations, net of tax 35 185 36 Net income $ 1,020 $ 1,612 $ 915 CONDENSED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2015 , 2014 and 2013 (in millions) 2015 2014 2013 Net income $ 1,020 $ 1,612 $ 915 Other comprehensive income (loss), net of tax 2 (45 ) 74 Comprehensive income $ 1,022 $ 1,567 $ 989 EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2015 , 2014 and 2013 (in millions) 2015 2014 2013 Net cash provided by (used in) operating activities $ 641 $ (73 ) $ 387 Cash flows from financing activities: Payable due to affiliate 54 66 10 Short-term debt financing, net 26 584 33 Settlements of stock-based compensation, net (42 ) (24 ) (6 ) Dividends paid (544 ) (463 ) (440 ) Net cash (used in) provided by financing activities (506 ) 163 (403 ) Net cash used in investing activities: (136 ) (95 ) (35 ) Net decrease in cash and cash equivalents (1 ) (5 ) (51 ) Cash and cash equivalents, beginning of year 8 13 64 Cash and cash equivalents, end of year $ 7 $ 8 $ 13 Note 1. Basis of Presentation The accompanying condensed financial statements of Edison International Parent should be read in conjunction with the consolidated financial statements and notes thereto of Edison International and subsidiaries ("Registrant") included in this Form 10-K. Edison International's Parent significant accounting policies are consistent with those of the Registrant, SCE and other wholly owned and controlled subsidiaries. Dividends Received Edison International Parent received cash dividends from SCE of $758 million , $378 million and $486 million in 2015 , 2014 and 2013 , respectively. Dividend Restrictions The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above the 48% on a 13 -month weighted average basis. At December 31, 2015 , SCE's 13 -month weighted-average common equity component of total capitalization was 49.9% and the maximum additional dividend that SCE could pay to Edison International under this limitation was approximately $441 million , resulting in a restriction on SCE's net assets of $13.2 billion . Note 2. Debt and Credit Agreements Long-Term Debt At December 31, 2015 and 2014 , Edison International Parent had 3.75% senior notes outstanding of $ 400 million , which matures in 2017 . In connection with a settlement agreement between Edison International, EME and the Consenting Noteholders, in September 2014, Edison International Parent issued non-interest bearing promissory notes of which $204 million was paid on September 30, 2015 and $214 million is due on September 30, 2016 . Credit Agreements and Short-Term Debt In 2015, Edison International Parent amended the credit facility to extend the maturity date for the $1.25 billion credit facility to July 2020. At December 31, 2015 , the outstanding commercial paper was $646 million at a weighted-average interest rate of 0.78% . This short-term debt was supported by the $1.25 billion multi-year revolving credit facility. At December 31, 2014 , the outstanding commercial paper was $619 million at a weighted-average interest rate of 0.45% . The following table summarizes the status of the credit facility at December 31, 2015 : (in millions) Commitment $ 1,250 Outstanding borrowings (646 ) Amount available $ 604 The debt covenant in Edison International's credit facility requires a consolidated debt to total capitalization ratio of less than or equal to 0.65 to 1 . The ratio is defined in the credit agreement and generally excluded the consolidated debt and total capital of EME during the periods it was consolidated for financial reporting purposes. At December 31, 2015 , Edison International's consolidated debt to total capitalization ratio was 0.47 to 1 . Note 3. Related-Party Transactions Edison International's Parent expenses from services provided by SCE were $3 million annually in 2015, 2014 and 2013. Edison International Parent had current related-party receivables of $252 million and $267 million and current related-party payables of $149 million and $213 million at December 31, 2015 and 2014 , respectively. Edison International Parent had long-term related-party receivables of $105 million and $125 million at December 31, 2015 and 2014 , respectively, and long-term related-party payables of $213 million and $179 million at December 31, 2015 and 2014 , respectively. Note 4. Contingencies For a discussion of material contingencies see "Notes to Consolidated Financial Statements—Note 7. Income Taxes," "—Note 11. Commitments and Contingencies" and "—Note 15. Discontinued Operations." |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | EDISON INTERNATIONAL SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions (in millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period For the Year ended December 31, 2015 Allowance for uncollectible accounts Customers $ 48.9 $ 23.9 $ — $ 26.6 $ 46.2 All others 23.3 23.0 — 21.2 25.1 Total allowance for uncollectible amounts $ 72.2 $ 46.9 $ — $ 47.8 a $ 71.3 Tax valuation allowance $ 29.0 $ 3.0 $ — $ — $ 32.0 For the Year ended December 31, 2014 Allowance for uncollectible accounts Customers $ 52.2 $ 24.1 $ — $ 27.4 $ 48.9 All others 17.8 19.7 — 14.2 23.3 Total allowance for uncollectible amounts $ 70.0 $ 43.8 $ — $ 41.6 a $ 72.2 Tax valuation allowance $ 1,380.0 b $ — b $ — $ 1,351 c $ 29.0 For the Year ended December 31, 2013 Allowance for uncollectible accounts Customers $ 46.6 $ 36.0 $ — $ 30.4 $ 52.2 All others 79.5 19.3 — 81.0 17.8 Total allowance for uncollectible amounts $ 126.1 $ 55.3 $ — $ 111.4 a $ 70.0 Tax valuation allowance $ 1,016.5 $ 363.5 b $ — $ — $ 1,380 a Accounts written off, net. b Edison International recorded deferred tax assets of $2.2 billion related to net operating losses and tax carryforwards that pertain to Edison International's consolidated or combined federal and state tax returns, including approximately $1.6 billion related to EME. Edison International continues to consolidate EME for federal and certain combined state tax returns. EME's Plan of Reorganization, filed in December 2013 ("December Plan of Reorganization"), provides for the transfer of EIX's ownership interest to the creditors, which would result in a tax deconsolidation of EME. Under federal and state tax regulations, the tax deconsolidation of EME would reduce the amounts of net operating loss and tax credits carryforwards that Edison International would be eligible to use in future periods. As a result of the EME's December Plan of Reorganization, which would result in a tax deconsolidation of EME, Edison International has recorded a $1.380 billion valuation allowance based on the estimated amount of such benefits as calculated under the applicable federal and state tax regulations as of December 31, 2013. The deferred income tax benefits recognized by Edison International less the valuation allowance for amounts that would no longer be available upon tax deconsolidation of EME was approximately $220 million . c On April 1, 2014, under the Amended Plan of Reorganization, EME emerged from bankruptcy free of liabilities but remained an indirect wholly-owned subsidiary of Edison International, which will continue to be consolidated with Edison International for income tax purposes. Edison International anticipates realization of the federal and California tax benefits before they expire. Therefore, the valuation allowance on federal and California tax benefits that Edison International recorded in 2013 was released in 2014. The remaining valuation allowance is related to non California state tax benefits. SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions (in millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period For the Year ended December 31, 2015 For the Year ended Customers $ 48.9 $ 23.9 $ — $ 26.6 $ 46.2 All others 18.7 18.0 — 21.2 15.5 Total allowance for uncollectible accounts $ 67.6 $ 41.9 $ — $ 47.8 a $ 61.7 For the Year ended December 31, 2014 Allowance for uncollectible accounts Customers $ 52.2 $ 24.1 $ — $ 27.4 $ 48.9 All others 13.3 19.6 — 14.2 18.7 Total allowance for uncollectible accounts $ 65.5 $ 43.7 $ — $ 41.6 a $ 67.6 For the Year ended December 31, 2013 Allowance for uncollectible accounts Customers $ 46.6 $ 36.0 $ — $ 30.4 $ 52.2 All others 28.3 19.3 — 34.3 13.3 Total allowance for uncollectible accounts $ 74.9 $ 55.3 $ — $ 64.7 a $ 65.5 a Accounts written off, net. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of Edison Energy Group, a company that holds interests in subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in competitive transmission opportunities, and exploring distributed water treatment and recycling. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 10 for composition of regulatory assets and liabilities. |
Use of Estimates | The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents Cash equivalents includes investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. |
Restricted Cash | Cash is temporarily invested until required for check clearing. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts Allowances for uncollectible accounts are provided based upon a variety of factors, including historical amounts written-off, current economic conditions and assessment of customer collectability. |
Inventory | Inventory Inventory is primarily composed of materials, supplies and spare parts, and stated at the lower of cost or market, cost being determined by the average cost method. |
Energy Credits and Allowances | Energy Credits and Allowances Renewable energy certificates or credits ("RECs") represent rights established by governmental agencies for the environmental, social, and other non-power qualities of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets, including California. Retail sellers of electricity obtain RECs through renewable power purchase agreements, internal generation or separate purchases in the market to comply with renewables portfolio standards ("RPS") established by certain governmental agencies. RECs are the mechanism used to verify renewables portfolio standard compliance and are recognized at the lower of weighted-average cost or market when amounts purchased are in excess of the amounts needed to comply with RPS requirements. The cost of purchased RECs is recoverable as part of the cost of purchased power. SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted-average cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment Plant additions, including replacements and betterments, are capitalized. SCE capitalizes as part of plant additions direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes. The CPUC authorizes a rate for each of the indirect costs which are allocated to each project based on either labor or total costs. |
Impairment Of Long Live Assets | Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income based valuation techniques, as appropriate. SCE's impaired assets are recorded as a regulatory asset if it is deemed probable that such amounts will be recovered from customers. |
Nuclear Decommissioning and Asset Retirement Obligations | Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. SCE adjusts its nuclear decommissioning obligation into a nuclear-related ARO regulatory asset and also records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further discussion, see Notes 9 and 10. |
Deferred Financing Costs | Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. |
Revenue Recognition | Revenue Recognition Revenue is recognized when electricity is delivered and includes amounts for services rendered but unbilled at the end of each reporting period and reflected in "Operating revenue" on the consolidated statements of income. Rates charged to customers are based on CPUC- and FERC-authorized revenue requirements. CPUC rates are implemented subsequent to final approval. CPUC rates decouple authorized revenue from the volume of electricity sales. Differences between amounts collected and authorized levels are either collected from or refunded to customers, and therefore, SCE earns revenue equal to amounts authorized. FERC rates also decouple revenue from volume of electricity sales. In November 2013, the FERC approved a formula rate effective January 1, 2012 to determine SCE's FERC transmission revenue requirement, including its construction work in progress ("CWIP") revenue requirement. Under operation of the formula rate, transmission revenue will be updated to actual cost of service annually. Differences between amounts collected and determined under the formula rate are either collected from or refunded to customers, and therefore, SCE earns revenue based on estimates of recorded rate base costs under the FERC formula rate. SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis and reflected in electric utility revenue and other operation and maintenance expense. |
Power Purchase Agreements | Power Purchase Agreements SCE enters into power purchase agreements in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity. Under this classification, the power purchase agreement is evaluated to determine if SCE is the primary beneficiary in the variable interest entity, in which case, such entity would be consolidated. None of SCE's power purchase agreements resulted in consolidation of a variable interest entity at December 31, 2015 and 2014 . See Note 3 for further discussion of power purchase agreements that are considered variable interests. A power purchase agreement may also contain a lease for accounting purposes. This generally occurs when a power purchase agreement (signed or modified after June 30, 2003) designates a specific power plant in which the buyer purchases substantially all of the output and does not otherwise meet a fixed price per unit of output exception. SCE has a number of power purchase agreements that contain leases. SCE's recognition of lease expense conforms to the ratemaking treatment for SCE's recovery of the cost of electricity and is recorded in purchased power. The majority of these agreements are classified as leases as electricity is delivered at rates defined in power sales agreements. See Note 11 for further discussion of SCE's power purchase agreements, including agreements that are classified as operating and capital leases for accounting purposes. A power purchase agreement that does not contain a lease may be classified as a derivative subject to a normal purchase and sale exception, in which case the power purchase agreement is classified as an executory contract and accounted for on an accrual basis. Most of SCE's QF contracts are not required to be recorded on the consolidated balance sheets because they either do not meet the definition of a derivative or meet the normal purchase and sale exception. SCE purchases power under certain contracts that are not eligible for the normal purchase and sale exception and are recorded as a derivative on the consolidated balance sheets at fair value. See Note 6 for further information on derivative instruments. Power purchase agreements that do not meet the above classifications are accounted for on an accrual basis. |
Derivatives Instruments | Derivative Instruments SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. |
Leases | Leases SCE enters into power purchase agreements that may contain leases, as discussed under "Power Purchase Agreements" above. SCE has also entered into a number of agreements to lease property and equipment in the normal course of business. Minimum lease payments under operating leases are levelized (total minimum lease payments divided by the number of years of the lease) and recorded as rent expense over the terms of the leases. Lease payments in excess of the minimum are recorded as rent expense in the year incurred. Capital leases are reported as long-term obligations on the consolidated balance sheets in "Other deferred credits and other long-term liabilities." As a rate-regulated enterprise, SCE's capital lease amortization expense and interest expense are reflected in "Purchased power and fuel" on the consolidated statements of income. |
Share-Based Compensation | Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. Generally, Edison International does not issue new common stock for settlement of equity awards. Rather, a third party is used to purchase shares from the market and delivery for settlement of option exercises, performance shares and restricted stock units. Performance shares earned are settled half in cash and half in common stock; however, Edison International has discretion under certain of the awards to pay the half subject to cash settlement in common stock. Deferred stock units granted to management are settled in cash and represent a liability. Restricted stock units are settled in common stock; however, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For awards granted to retirement-eligible participants stock compensation expenses are recognized on a prorated basis over the initial year or over the period between the date of grant and the date the participant first becomes eligible for retirement. Tax benefits related to stock-based compensation are recognized as a reduction to deferred taxes until the related tax deductions reduce current income taxes. When such event occurs, the tax benefits are then recognized through additional paid in capital. SCE allocates the tax benefits based on the provisions in the tax laws that identify the sequence in which the amounts are utilized for tax purposes. |
SEC Dividend Restrictions | SCE Dividend Restrictions The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above 48% on a 13 -month weighted average basis. |
Earnings Per Share | Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. |
Income Taxes | Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Investment tax credits are deferred and amortized to income tax expense over the lives of the properties or the term of the power purchase agreement of the respective project while production tax credits are recognized in income tax expense in the period in which they are earned. Interest income, interest expense and penalties associated with income taxes are reflected in "Income tax expense" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest Redeemable noncontrolling interest represents the portion of equity ownership in an entity that is not attributable to the equity holders of Edison International and which have rights to put their ownership back to a subsidiary of Edison International. Noncontrolling interest is initially recorded at fair value and is subsequently adjusted for income allocated to the noncontrolling interest and any distributions paid to the noncontrolling interest. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted On November 20, 2015, the FASB issued an accounting standards update on the balance sheet classification of deferred taxes. This standard requires that all deferred income tax assets and liabilities be presented as noncurrent in the consolidated balance sheet. Prior to this update, deferred income taxes for each tax-paying component of an entity would be presented in two classifications in the balance sheet: (1) a net current asset or liability and (2) a net noncurrent asset or liability. Edison International and SCE have retrospectively adopted this standard as of December 31, 2015. As a result of the adoption, Edison International reclassified $452 million of current deferred income tax assets to long-term deferred income tax liabilities on the 2014 consolidated balance sheet. SCE reclassified $209 million of current deferred income tax liabilities to long-term deferred income tax liabilities on the 2014 consolidated balance sheet. Accounting Guidance Not Yet Adopted On May 28, 2014, the FASB issued an accounting standards update on revenue recognition including enhanced disclosures. Under the new standard, revenue is recognized when (or as) a good or service is transferred to the customer and the customer obtains control of the good or service. On July 9, 2015, the FASB approved a one-year deferral, updating the effective date to January 1, 2018. The accounting standard update allows for the adoption using a retrospective application or a modified retrospective application. Edison International and SCE are currently evaluating this new guidance and cannot determine the impact of this standard at this time. Edison International and SCE anticipates adopting the standard using the modified retrospective application which means that we would recognize the cumulative effect of initially applying the revenue standard as an adjustment to the opening balance of retained earnings in 2018. On April 7, 2015, the FASB issued an accounting standards update that will require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. Currently, these costs are presented as a deferred charge asset. Edison International and SCE will adopt this guidance in the first quarter of 2016. The adoption of this accounting standards update will not have a material impact on Edison International's and SCE's consolidated financial statements. On April 15, 2015, the FASB issued an accounting standard update on fees paid by a customer for software licenses. This new standard provides guidance about whether a cloud computing arrangement includes a software license which may be capitalized in certain circumstances. If a cloud computing arrangement does not include a software license, then the arrangement should be accounted for as a service contract. Edison International and SCE will adopt this guidance prospectively, effective January 1, 2016. The adoption of this standard will not have a material impact on Edison International's and SCE's consolidated financial statements. On January 5, 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The amendments require equity investments (excluding those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value recognized in net income. Currently, these changes are recorded in other comprehensive income. It also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. Edison International and SCE will adopt this guidance effective January 1, 2018. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's consolidated financial statements. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Cash Equivalents | The cash equivalents were as follows: Edison International SCE December 31, (in millions) 2015 2014 2015 2014 Money market funds $ 37 $ 35 $ 8 $ 5 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows: Edison International SCE December 31, (in millions) 2015 2014 2015 2014 Book balances reclassified to accounts payable $ 162 $ 180 $ 158 $ 177 |
Estimated Useful Lives (Authorized by the CPUC) and Weighted-Average Useful Lives of Property, Plant and Equipment | Estimated useful lives (authorized by the CPUC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful Lives Weighted-Average Useful Lives Generation plant 10 years to 57 years 38 years Distribution plant 20 years to 60 years 43 years Transmission plant 40 years to 65 years 52 years General plant and other 5 years to 60 years 22 years |
Reconciliation of the Changes in ARO Liability | The following table summarizes the changes in SCE's ARO liability, including San Onofre and Palo Verde: December 31, (in millions) 2015 2014 Beginning balance $ 2,819 $ 3,418 Accretion 1 173 192 Revisions (14 ) (790 ) Liabilities settled (216 ) (1 ) Ending balance $ 2,762 $ 2,819 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. |
Amortization of deferred financing costs | Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Amortization of deferred financing costs charged to interest expense $ 33 $ 36 $ 33 $ 28 $ 32 $ 32 |
EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31, (in millions) 2015 2014 2013 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 985 $ 1,427 $ 879 Participating securities dividends (1 ) (1 ) — Income from continuing operations available to common shareholders $ 984 $ 1,426 $ 879 Weighted average common shares outstanding 326 326 326 Basic earnings per share – continuing operations $ 3.02 $ 4.38 $ 2.70 Diluted earnings per share – continuing operations: Income from continuing operations available to common shareholders $ 984 $ 1,426 $ 879 Income impact of assumed conversions 1 1 1 Income from continuing operations available to common shareholders and assumed conversions $ 985 $ 1,427 $ 880 Weighted average common shares outstanding 326 326 326 Incremental shares from assumed conversions 3 3 3 Adjusted weighted average shares – diluted 329 329 329 Diluted earnings per share – continuing operations $ 2.99 $ 4.33 $ 2.67 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31, (in millions) 2015 2014 Transmission $ 11,592 $ 10,391 Distribution 20,871 19,255 Generation 3,138 2,986 General plant and other 4,543 4,889 Accumulated depreciation (8,548 ) (8,132 ) 31,596 29,389 Construction work in progress 3,218 3,339 Nuclear fuel, at amortized cost 131 131 Total utility property, plant and equipment $ 34,945 $ 32,859 |
Schedule of Jointly Owned Utility Projects | The following is SCE's investment in each asset as of December 31, 2015 : (in millions) Plant in Service Construction Work in Progress Accumulated Depreciation Nuclear Fuel (at amortized cost) Net Book Value Ownership Interest Transmission systems: Eldorado $ 186 $ 38 $ 20 $ — $ 204 59% Pacific Intertie 191 11 79 — 123 50% Generating station: Palo Verde (nuclear) 1,928 62 1,538 131 583 16% Total $ 2,305 $ 111 $ 1,637 $ 131 $ 910 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities Disclosure [Abstract] | |
Variable Interest Entity, Condensed Income Statement | The following table provides a summary of the trusts' income statements: Years ended December 31, (in millions) Trust I Trust II Trust III Trust IV 2015 Dividend income $ 27 $ 20 $ 16 $ 6 Dividend distributions 27 20 16 6 2014 Dividend income $ 27 $ 20 $ 13 * Dividend distributions 27 20 13 * 2013 Dividend income $ 27 $ 19 * * Dividend distributions 27 19 * * * Not applicable |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value by Level | The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: December 31, 2015 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 163 $ — $ 163 Other 28 — — — 28 Nuclear decommissioning trusts: Stocks 2 1,460 — — — 1,460 Fixed income 3 947 1,776 — — 2,723 Short-term investments, primarily cash equivalents 91 81 — — 172 Subtotal of nuclear decommissioning trusts 4 2,498 1,857 — — 4,355 Total assets 2,526 1,857 163 — 4,546 Liabilities at fair value Derivative contracts — 22 1,311 (15 ) 1,318 Total liabilities — 22 1,311 (15 ) 1,318 Net assets (liabilities) $ 2,526 $ 1,835 $ (1,148 ) $ 15 $ 3,228 December 31, 2014 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 321 $ — $ 321 Other 33 — — — 33 Nuclear decommissioning trusts: Stocks 2 2,031 — — — 2,031 Fixed income 3 703 1,350 — — 2,053 Short-term investments, primarily cash equivalents 606 166 — — 772 Subtotal of nuclear decommissioning trusts 4 3,340 1,516 — — 4,856 Total assets 3,373 1,516 321 — 5,210 Liabilities at fair value Derivative contracts — 86 1,223 (61 ) 1,248 Total liabilities — 86 1,223 (61 ) 1,248 Net assets (liabilities) $ 3,373 $ 1,430 $ (902 ) $ 61 $ 3,962 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. 2 Approximately 70% and 73% of SCE's equity investments were located in the United States at December 31, 2015 and 2014 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $111 million and $49 million at December 31, 2015 and 2014 , respectively. 4 Excludes net payables of $24 million and $57 million at December 31, 2015 and 2014 , which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. |
Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities | The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: December 31, (in millions) 2015 2014 Fair value of net liabilities at beginning of period $ (902 ) $ (805 ) Total realized/unrealized gains (losses): Included in regulatory assets and liabilities 1 (246 ) (97 ) Purchases — 27 Settlements — (27 ) Fair value of net liabilities at end of period $ (1,148 ) $ (902 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (311 ) $ (166 ) 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. |
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Range Assets Liabilities Valuation Technique(s) Unobservable Input (Weighted Average) Congestion revenue rights December 31, 2015 $ 152 $ — Market simulation model and auction prices Load forecast 6,289 MW - 24,349 MW Power prices 1 $0 - $110.44 Gas prices 2 $1.98 - $5.72 December 31, 2014 317 — Market simulation model and auction prices Load forecast 7,630 MW - 25,431 MW Power prices 1 $1.65 - $109.95 Gas prices 2 $3.65 - $6.53 Tolling December 31, 2015 10 1,297 Option model Volatility of gas prices 15% - 58% (20%) Volatility of power prices 26% - 38% (30%) Power prices $24.15 - $46.93 ($34.80) December 31, 2014 4 1,207 Option model Volatility of gas prices 13% - 53% (20%) Volatility of power prices 25% - 42% (30%) Power prices $30.60 - $61.40 ($44.60) 1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. |
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion | The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: December 31, 2015 December 31, 2014 (in millions) Carrying Value Fair Value Carrying Value Fair Value Edison International $ 11,259 $ 12,252 $ 10,738 $ 12,319 SCE 10,616 11,592 9,924 11,479 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term debt | The following table summarizes long-term debt (rates and terms are as of December 31, 2015 ) of Edison International and SCE: December 31, (in millions) 2015 2014 Edison International Parent and Other: Debentures and notes: 2016 – 2017 (0% to 3.75%) $ 614 $ 817 Other long-term debt 31 2 Current portion of long-term debt (216 ) (204 ) Unamortized debt discount, net (2 ) (5 ) Total Edison International Parent and Other 427 610 SCE: First and refunding mortgage bonds: 2017 – 2045 (1.125% to 6.05%) 9,436 8,875 Pollution-control bonds: 2028 – 2035 (1.375% to 5.0% and variable) 1 909 779 Debentures and notes: 2029 – 2053 (5.06% to 6.65%) 307 307 Current portion of long-term debt (79 ) (300 ) Unamortized debt discount, net (36 ) (37 ) Total SCE 10,537 9,624 Total Edison International $ 10,964 $ 10,234 1 Includes outstanding bonds that have not been retired and may be remarketed to investors in the future. These bonds have variable rates and are due in 2031 at December 31, 2015. |
Long-term debt maturities | Edison International and SCE long-term debt maturities over the next five years are the following: (in millions) Edison International SCE 2016 $ 295 $ 79 2017 903 500 2018 402 400 2019 2 — 2020 1 — |
Summary for status of credit facilities | The following table summarizes the status of the credit facilities at December 31, 2015 : (in millions) Edison International Parent SCE Commitment $ 1,250 $ 2,750 Outstanding borrowings (646 ) (49 ) Outstanding letters of credit — (125 ) Amount available $ 604 $ 2,576 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Southern California Edison | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: December 31, 2015 Derivative Assets Derivative Liabilities Net Liability (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 81 $ 84 $ 165 $ 235 $ 1,100 $ 1,335 $ 1,170 Gross amounts offset in consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — (15 ) — (15 ) (15 ) Net amounts presented in the consolidated balance sheets $ 79 $ 84 $ 163 $ 218 $ 1,100 $ 1,318 $ 1,155 December 31, 2014 Derivative Assets Derivative Liabilities Net Liability (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 104 $ 219 $ 323 $ 259 $ 1,052 $ 1,311 $ 988 Gross amounts offset in consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — (61 ) — (61 ) (61 ) Net amounts presented in the consolidated balance sheets $ 102 $ 219 $ 321 $ 196 $ 1,052 $ 1,248 $ 927 1 In addition, at December 31, 2015 and 2014 , SCE had posted $31 million and $36 million , respectively, of collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. |
Derivative Instruments, Gain (Loss) | The following table summarizes the components of SCE's economic hedging activity: Years ended December 31, (in millions) 2015 2014 2013 Realized losses $ (148 ) $ (57 ) $ (56 ) Unrealized (losses) gains (182 ) (147 ) 93 |
Notional Volumes of Derivative Instruments | The following table summarizes the notional volumes of derivatives used for SCE hedging activities: Economic Hedges Unit of December 31, Commodity Measure 2015 2014 Electricity options, swaps and forwards GWh 6,221 3,618 Natural gas options, swaps and forwards Bcf 32 83 Congestion revenue rights GWh 109,740 122,859 Tolling arrangements GWh 70,663 79,989 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Sources of income (loss) before income taxes | Edison International's sources of income (loss) before income taxes are: Years ended December 31, (in millions) 2015 2014 2013 Income from continuing operations before income taxes $ 1,568 $ 1,979 $ 1,221 Income (loss) from discontinued operations before income taxes 15 (525 ) — Income before income tax $ 1,583 $ 1,454 $ 1,221 |
Components of income tax expense (benefit) by location of taxing jurisdiction | The components of income tax expense (benefit) by location of taxing jurisdiction are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Current: Federal $ 18 $ (99 ) $ (97 ) $ 72 $ (89 ) $ (119 ) State 19 20 (9 ) 127 101 (19 ) 37 (79 ) (106 ) 199 12 (138 ) Deferred: Federal 340 454 317 298 476 345 State 109 68 31 10 (14 ) 72 449 522 348 308 462 417 Total continuing operations 486 443 242 507 474 279 Discontinued operations 1 (21 ) (710 ) (36 ) — — — Total $ 465 $ (267 ) $ 206 $ 507 $ 474 $ 279 1 See Note 15 for a discussion of discontinued operations related to EME. |
Components of net accumulated deferred income tax liability | The components of net accumulated deferred income tax liability are: Edison International SCE December 31, (in millions) 2015 2014 2015 2014 Deferred tax assets: Property and software related $ 675 $ 572 $ 675 $ 571 Nuclear decommissioning trust assets in excess of nuclear ARO liability 360 441 360 441 Loss and credit carryforwards 1,388 1,657 — 205 Regulatory balancing accounts 21 18 21 18 Pension and PBOPs 337 510 154 321 Other 499 582 411 445 Sub-total 3,280 3,780 1,621 2,001 Less valuation allowance 32 29 — — Total 3,248 3,751 1,621 2,001 Deferred tax liabilities: Property-related 9,606 8,709 9,600 8,699 Capitalized software costs 207 285 207 285 Regulatory balancing accounts 202 577 202 577 Nuclear decommissioning trust assets 360 441 360 441 PBOPs 71 227 71 227 Other 189 274 161 171 Total 10,635 10,513 10,601 10,400 Accumulated deferred income tax liability, net 1 $ 7,387 $ 6,762 $ 8,980 $ 8,399 |
Summary of Tax Credit Carryforwards | The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison International SCE December 31, 2015 (in millions) Loss Carryforwards Credit Carryforwards Loss Carryforwards Credit Carryforwards Expire between 2021 to 2034 $ 1,136 $ 409 $ 39 $ 22 No expiration date — 54 — 39 Total 1 $ 1,136 $ 463 $ 39 $ 61 |
Reconciliation of income tax expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Income from continuing operations before income taxes $ 1,568 $ 1,979 $ 1,221 $ 1,618 $ 2,039 $ 1,279 Provision for income tax at federal statutory rate of 35% 549 693 427 566 714 448 Increase in income tax from: Items presented with related state income tax, net: Regulatory asset write-off 1 382 — — 382 — — State tax, net of federal benefit 5 56 18 34 55 34 Property-related 2 (341 ) (252 ) (216 ) (341 ) (252 ) (216 ) Change related to uncertain tax positions (67 ) 5 14 (94 ) 12 14 San Onofre OII settlement — (23 ) 24 — (23 ) 24 Other (42 ) (36 ) (25 ) (40 ) (32 ) (25 ) Total income tax expense from continuing operations $ 486 $ 443 $ 242 $ 507 $ 474 $ 279 Effective tax rate 31.0 % 22.4 % 19.8 % 31.3 % 23.2 % 21.8 % 1 Includes federal and state. 2 Includes incremental repair benefit recorded in 2013 to 2015. See discussion of repair deductions below. |
Reconciliation of unrecognized tax benefits | The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations: Edison International SCE December 31, (in millions) 2015 2014 2013 2015 2014 2013 Balance at January 1, $ 576 $ 815 $ 812 $ 441 $ 532 $ 571 Tax positions taken during the current year: Increases 54 65 19 48 57 22 Tax positions taken during a prior year: Increases 66 1 43 23 — 45 Decreases 1 (165 ) (143 ) (109 ) (159 ) (93 ) (106 ) Increases – deconsolidation of EME 2 — — 50 — — — Decreases for settlements during the period 3 (2 ) (162 ) — — (55 ) — Balance at December 31, $ 529 $ 576 $ 815 $ 353 $ 441 $ 532 1 Decreases in prior year tax positions relate primarily to re-measurement of uncertain tax positions in connection with receipt of the IRS Revenue Agent Report in June 2015. See discussions in Tax Disputes below. 2 Unrecognized tax benefits of EME have been deconsolidated as a result of the bankruptcy filing by EME, except for tax liabilities for which Edison International and EME are jointly liable under the Internal Revenue Code and applicable state statutes. See Note 15 for further information. During 2013, Edison International increased the amount of unrecognized tax benefits related to the taxable gain on sale of EME’s international assets by approximately $50 million as a result of unfavorable developments during the fourth quarter of 2013. 3 In the fourth quarter of 2014, Edison International has settled all open tax positions with the IRS for taxable year 2003 through 2006. |
Schedule of interest and penalties related to income tax liabilities | The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Accrued interest and penalties $ 122 $ 338 $ 40 $ 64 The net after-tax interest and penalties recognized in income tax expense for continuing and discontinued operations are: Edison International SCE December 31, (in millions) 2015 2014 2013 2015 2014 2013 Net after-tax interest and penalties tax benefit (expense) $ 9 $ 41 $ (3 ) $ 14 $ 16 $ 2 |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefits | |
Employee Savings Plan Employer Contributions | The following employer contributions were made for continuing operations: Edison International SCE (in millions) Years ended December 31, 2015 $ 73 $ 72 2014 71 70 2013 76 76 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes total expense and tax benefits (expense) associated with stock based compensation: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Stock-based compensation expense 1 : Stock options $ 14 $ 16 $ 15 $ 8 $ 8 $ 11 Performance shares 7 16 4 4 8 2 Restricted stock units 7 7 7 4 4 4 Other 1 1 1 — — — Total stock-based compensation expense $ 29 $ 40 $ 27 $ 16 $ 20 $ 17 Income tax benefits related to stock compensation expense $ 12 $ 16 $ 11 $ 7 $ 8 $ 7 Excess tax benefits 2 15 15 5 23 20 2 1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. 2 Reflected in "Settlements of stock-based compensation, net" in the financing section of Edison International's and SCE's consolidated statements of cash flows and in "Common stock" in Edison International's consolidated balance sheets and "Additional paid-in capital" in SCE's consolidated balance sheets. |
Black-Sholes Option-Pricing Model Assumptions | The Black-Scholes option-pricing model requires various assumptions noted in the following table: Years ended December 31, 2015 2014 2013 Expected terms (in years) 5.9 6.0 6.2 Risk-free interest rate 1.6% – 2.1% 1.8% – 2.1% 1.0% – 2.1% Expected dividend yield 2.6% – 3.2% 2.4% – 2.7% 2.7% – 3.1% Weighted-average expected dividend yield 2.6% 2.7% 2.8% Expected volatility 16.4% – 17.0% 17.8% – 19.1% 17.7% – 18.6% Weighted-average volatility 16.5% 18.9% 17.7% |
Summary of Stock Options Activity | The following is a summary of the status of Edison International's stock options: Weighted-Average Stock options Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Edison International: Outstanding at December 31, 2014 13,618,735 $ 42.84 Granted 2,030,342 63.57 Expired — — Forfeited (171,107 ) 51.87 Exercised (2,611,373 ) 43.14 Outstanding at December 31, 2015 12,866,597 45.93 5.84 Vested and expected to vest at December 31, 2015 12,762,577 45.81 5.82 $ 180 Exercisable at December 31, 2015 8,928,807 40.79 4.73 $ 165 SCE: Outstanding at December 31, 2014 6,002,160 $ 43.82 Granted 1,099,566 63.52 Expired — — Forfeited (109,719 ) 53.45 Exercised (1,085,438 ) 41.74 Transfers, net (66,512 ) 40.88 Outstanding at December 31, 2015 5,840,057 47.77 6.20 Vested and expected to vest at December 31, 2015 5,771,064 47.62 6.17 $ 72 Exercisable at December 31, 2015 3,751,272 42.17 4.99 $ 64 |
Schedule of Unrecognized Compensation Expense | At December 31, 2015 , total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows: (in millions) Edison International SCE Unrecognized compensation cost, net of expected forfeitures $ 13 $ 9 Weighted-average period (in years) 2.3 2.4 |
Supplemental Data on Stock-based Compensation | Supplemental Data on Stock Options Edison International SCE Years ended December 31, (in millions, except per award amounts) 2015 2014 2013 2015 2014 2013 Stock options: Weighted average grant date fair value per option granted $ 7.54 $ 7.26 $ 5.40 $ 7.53 $ 7.34 $ 5.38 Fair value of options vested 20 17 17 11 9 10 Cash used to purchase shares to settle options 170 300 199 69 181 130 Cash from participants to exercise stock options 113 205 140 45 125 92 Value of options exercised 57 95 59 24 56 38 Tax benefits from options exercised 23 39 24 10 23 15 |
Summary of Nonvested Share Activity | The following is a summary of the status of Edison International's nonvested performance shares: Equity Awards Liability Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Fair Value Edison International: Nonvested at December 31, 2014 128,300 $ 55.66 127,975 $ 92.92 Granted — — 109,154 Forfeited (4,035 ) 55.93 (5,183 ) Vested 1 (66,486 ) 50.85 (66,317 ) Nonvested at December 31, 2015 57,779 61.18 165,629 68.44 SCE: Nonvested at December 31, 2014 71,797 $ 56.06 71,520 $ 92.33 Granted — — 59,213 Forfeited (1,717 ) 56.89 (2,867 ) Vested 1 (36,891 ) 50.82 (36,748 ) Affiliate transfers, net (726 ) 54.81 (725 ) Nonvested at December 31, 2015 32,463 62.01 90,393 68.64 1 Relates to performance shares that will be paid in 2016 as performance targets were met at December 31, 2015 |
Summary of Nonvested Restricted Stock Units Activity | The following is a summary of the status of Edison International's nonvested restricted stock units: Edison International SCE Restricted Stock Units Weighted-Average Grant Date Fair Value Restricted Stock Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2014 433,319 $ 47.89 231,364 $ 48.26 Granted 120,469 63.57 65,237 63.52 Forfeited (10,210 ) 52.09 (5,108 ) 54.04 Vested (295,435 ) 45.74 (155,046 ) 45.98 Affiliate transfers, net — — (2,072 ) 45.35 Nonvested at December 31, 2015 248,143 57.89 134,375 58.13 |
Accrued Severance Liability Workforce Reduction | The following table provides a summary of changes in the accrued severance liability associated with these reductions: (in millions) Balance at January 1, 2015 $ 35 Additions 26 Payments (39 ) Balance at December 31, 2015 $ 22 |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below. Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 4,517 $ 4,178 $ 3,999 $ 3,721 Service cost 142 133 133 124 Interest cost 170 181 150 159 Actuarial (gain) loss (149 ) 469 (143 ) 386 Curtailment gain — (5 ) — — Benefits paid (305 ) (449 ) (261 ) (391 ) Other (1 ) 10 — — Projected benefit obligation at end of year $ 4,374 $ 4,517 $ 3,878 $ 3,999 Change in plan assets Fair value of plan assets at beginning of year $ 3,454 $ 3,477 $ 3,217 $ 3,236 Actual return on plan assets 30 257 27 240 Employer contributions 119 169 97 132 Benefits paid (305 ) (449 ) (261 ) (391 ) Fair value of plan assets at end of year $ 3,298 $ 3,454 $ 3,080 $ 3,217 Funded status at end of year $ (1,076 ) $ (1,063 ) $ (798 ) $ (782 ) Amounts recognized in the consolidated balance sheets consist of 1 : Current liabilities $ (27 ) $ (27 ) $ (4 ) $ (5 ) Long-term liabilities (1,049 ) (1,036 ) (794 ) (777 ) $ (1,076 ) $ (1,063 ) $ (798 ) $ (782 ) Amounts recognized in accumulated other comprehensive loss consist of: Net loss 1 $ 96 $ 102 $ 27 $ 31 Amounts recognized as a regulatory asset: Prior service cost $ 15 $ 20 $ 15 $ 20 Net loss 660 640 660 640 $ 675 $ 660 $ 675 $ 660 Total not yet recognized as expense $ 771 $ 762 $ 702 $ 691 Accumulated benefit obligation at end of year $ 4,200 $ 4,356 $ 3,744 $ 3,881 Pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 4,374 $ 4,517 $ 3,878 $ 3,999 Accumulated benefit obligation 4,200 4,356 3,744 3,881 Fair value of plan assets 3,298 3,454 3,080 3,217 Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.18 % 3.85 % 4.18 % 3.85 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 4.00 % 1 The SCE liability excludes a long-term payable due to Edison International Parent of $123 million and $121 million at December 31, 2015 and 2014 , respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $27 million and $31 million at December 31, 2015 and 2014 , respectively, excludes net loss of $ 18 million and $22 million related to these benefits. |
Expense Components for Plans | Pension expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Service cost $ 142 $ 133 $ 162 $ 139 $ 128 $ 159 Interest cost 170 181 170 155 164 167 Expected return on plan assets (233 ) (229 ) (222 ) (217 ) (213 ) (222 ) Settlement costs 1 — 45 87 — 42 85 Curtailment gain — (4 ) — — — — Amortization of prior service cost 5 5 5 5 5 5 Amortization of net loss 2 40 12 39 35 7 35 Expense under accounting standards 124 143 241 117 133 229 Regulatory adjustment (deferred) (6 ) 8 (53 ) (6 ) 8 (53 ) Total expense recognized $ 118 $ 151 $ 188 $ 111 $ 141 $ 176 1 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was zero for the year ended December 31, 2015 and $3 million for the year ended December 31, 2014 . 2 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $14 million and $8 million , respectively, for the year ended December 31, 2015 . The amount reclassified for Edison International and SCE was $9 million and $4 million , respectively, for the year ended December 31, 2014 . |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Net loss (gain) $ 7 $ 85 $ (33 ) $ (9 ) $ 37 $ (24 ) Amortization of net loss and other (15 ) (13 ) (13 ) (9 ) (4 ) (7 ) Total recognized in other comprehensive loss $ (8 ) $ 72 $ (46 ) $ (18 ) $ 33 $ (31 ) Total recognized in expense and other comprehensive loss $ 110 $ 223 $ 142 $ 93 $ 174 $ 145 |
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized | The estimated pension amounts that will be amortized to expense in 2016 for continuing operations are as follows: (in millions) Edison International SCE Unrecognized net loss to be amortized 1 $ 36 $ 32 Unrecognized prior service cost to be amortized 4 4 1 The amount of net loss expected to be reclassified from other comprehensive loss for Edison International's continuing operations and SCE is $11 million and $6 million , respectively. |
Schedule of Assumptions Used | Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations: Years ended December 31, 2015 2014 2013 Discount rate 3.85 % 4.50 % 4.13 % Rate of compensation increase 4.00 % 4.00 % 4.50 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2016 $ 311 $ 265 2017 310 270 2018 314 280 2019 327 286 2020 327 290 2021 – 2025 1,590 1,447 |
Schedule of Changes in Fair Value of Level 3 Investments | The following table sets forth a summary of changes in the fair value of Edison International's and SCE's Level 3 investments: (in millions) 2015 2014 Fair value, net at beginning of period $ 289 $ 390 Actual return on plan assets: Relating to assets still held at end of period 47 114 Relating to assets sold during the period (17 ) (44 ) Purchases 38 13 Dispositions (143 ) (184 ) Transfers in and/or out of Level 3 — — Fair value, net at end of period $ 214 $ 289 |
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels | The following table sets forth the Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2015 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total U.S. government and agency securities 1 $ 127 $ 298 $ — $ 425 Corporate stocks 2 720 16 — 736 Corporate bonds 3 — 755 — 755 Common/collective funds 4 — 640 — 640 Partnerships/joint ventures 5 — 111 214 325 Other investment entities 6 — 263 — 263 Registered investment companies 7 117 4 — 121 Interest-bearing cash 6 — — 6 Other 1 96 — 97 Total $ 971 $ 2,183 $ 214 $ 3,368 Receivables and payables, net (70 ) Net plan assets available for benefits $ 3,298 SCE's share of net plan assets $ 3,080 The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2014 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total U.S. government and agency securities 1 $ 140 $ 329 $ — $ 469 Corporate stocks 2 716 14 — 730 Corporate bonds 3 — 801 — 801 Common/collective funds 4 — 524 — 524 Partnerships/joint ventures 5 — 110 289 399 Other investment entities 6 — 278 — 278 Registered investment companies 7 113 30 — 143 Interest-bearing cash 10 — — 10 Other 5 100 — 105 Total $ 984 $ 2,186 $ 289 $ 3,459 Receivables and payables, net (5 ) Net plan assets available for benefits $ 3,454 SCE's share of net plan assets $ 3,217 1 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 2 Corporate stocks are diversified. For both 2015 and 2014 , performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 59% ) and Morgan Stanley Capital International (MSCI) index ( 41% ). 3 Corporate bonds are diversified. At December 31, 2015 and 2014 , respectively, this category includes $123 million and $102 million for collateralized mortgage obligations and other asset backed securities of which $25 million and $15 million are below investment grade. 4 At December 31, 2015 and 2014 , respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's (S&P 500) Index ( 46% and 32% ), Russell 1000 indexes ( 14% and 18% ) and the MSCI Europe, Australasia and Far East (EAFE) Index ( 16% and 20% ). A non-index U.S. equity fund representing 22% and 27% of this category for 2015 and 2014 , respectively, is actively managed. 5 Partnerships/joint venture Level 2 investments consist primarily of a partnership which invests in publicly traded fixed income securities. At December 31, 2015 and 2014 , respectively, 22% and 55% of the Level 3 partnerships are invested in (1) asset backed securities, including distressed mortgages and (2) commercial and residential loans and debt and equity of banks. At December 31, 2015 and 2014 , respectively, 78% and 45% of the Level 3 partnerships are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies. 6 Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities. 7 Level 1 of registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. Level 2 primarily consisted of a short-term bond fund. |
Postretirement Benefits Other Than Pensions | |
Pension and Other Postretirement Benefits | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information on PBOP Plan assets and benefit obligations is shown below: Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 2,784 $ 2,220 $ 2,775 $ 2,211 Service cost 46 40 46 40 Interest cost 102 117 102 117 Special termination benefits (2 ) 3 (2 ) 3 Actuarial (gain) loss (500 ) 582 (500 ) 582 Plan participants' contributions 20 19 20 19 Benefits paid (100 ) (197 ) (100 ) (197 ) Benefit obligation at end of year $ 2,350 $ 2,784 $ 2,341 $ 2,775 Change in plan assets Fair value of plan assets at beginning of year $ 2,086 $ 2,065 $ 2,086 $ 2,065 Actual return on assets 6 180 6 180 Employer contributions 24 19 24 19 Plan participants' contributions 20 19 20 19 Benefits paid (100 ) (197 ) (100 ) (197 ) Fair value of plan assets at end of year $ 2,036 $ 2,086 $ 2,036 $ 2,086 Funded status at end of year $ (314 ) $ (698 ) $ (305 ) $ (689 ) Amounts recognized in the consolidated balance sheets consist of: Current liabilities $ (15 ) $ (15 ) $ (15 ) $ (15 ) Long-term liabilities (299 ) (683 ) (290 ) (674 ) $ (314 ) $ (698 ) $ (305 ) $ (689 ) Amounts recognized in accumulated other comprehensive loss consist of: Net loss $ 4 $ 4 $ — $ — Amounts recognized as a regulatory (liability) asset: Prior service credit $ (9 ) $ (19 ) $ (9 ) $ (19 ) Net loss 183 577 183 577 $ 174 $ 558 $ 174 $ 558 Total not yet recognized as expense $ 178 $ 562 $ 174 $ 558 Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.55 % 4.16 % 4.55 % 4.16 % Assumed health care cost trend rates: Rate assumed for following year 7.50 % 7.75 % 7.50 % 7.75 % Ultimate rate 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2022 2021 2022 2021 |
Expense Components for Plans | PBOP expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Service cost $ 46 $ 40 $ 49 $ 46 $ 40 $ 48 Interest cost 102 117 98 102 117 97 Expected return on plan assets (116 ) (108 ) (114 ) (116 ) (108 ) (114 ) Special termination benefits 1 1 3 11 1 3 11 Amortization of prior service credit (12 ) (36 ) (36 ) (12 ) (35 ) (35 ) Amortization of net loss 3 6 24 2 5 24 Total expense $ 24 $ 22 $ 32 $ 23 $ 22 $ 31 1 Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage. |
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized | The estimated PBOP amounts that will be amortized to expense in 2016 for continuing operations are as follows: Edison International SCE Unrecognized prior service credit to be amortized $ (3 ) $ (3 ) |
Schedule of Assumptions Used | Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations: Years ended December 31, 2015 2014 2013 Discount rate 4.16 % 5.00 % 4.25 % Expected long-term return on plan assets 5.50 % 5.50 % 6.70 % Assumed health care cost trend rates: Current year 7.75 % 7.75 % 8.50 % Ultimate rate 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2021 2020 2020 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate | A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations: Edison International SCE (in millions) One-Percentage-Point Increase One-Percentage-Point Decrease One-Percentage-Point Increase One-Percentage-Point Decrease Effect on accumulated benefit obligation as of December 31, 2015 $ 251 $ (206 ) $ 250 $ (205 ) Effect on annual aggregate service and interest costs 12 (9 ) 12 (9 ) |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2016 $ 101 $ 101 2017 106 106 2018 111 110 2019 115 114 2020 119 118 2021 – 2025 649 646 |
Schedule of Changes in Fair Value of Level 3 Investments | The following table sets forth a summary of changes in the fair value of PBOP Level 3 investments: (in millions) 2015 2014 Fair value, net at beginning of period $ 105 $ 164 Actual return on plan assets Relating to assets still held at end of period (6 ) 18 Relating to assets sold during the period 15 (1 ) Purchases 7 9 Dispositions (47 ) (85 ) Transfers in and/or out of Level 3 — — Fair value, net at end of period $ 74 $ 105 |
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels | The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2015 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total Common/collective funds 1 $ — $ 424 $ — $ 424 Corporate stocks 2 222 — — 222 Corporate notes and bonds 3 — 867 — 867 Partnerships 4 — 20 73 93 U.S. government and agency securities 5 200 42 — 242 Registered investment companies 6 60 3 — 63 Interest bearing cash 31 — — 31 Other 7 5 113 — 118 Total $ 518 $ 1,469 $ 73 $ 2,060 Receivables and payables, net (24 ) Combined net plan assets available for benefits $ 2,036 The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2014 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 Total Common/collective funds 1 $ — $ 431 $ — $ 431 Corporate stocks 2 250 — — 250 Corporate notes and bonds 3 — 883 — 883 Partnerships 4 — 19 105 124 U.S. government and agency securities 5 207 36 — 243 Registered investment companies 6 64 5 — 69 Interest bearing cash 29 — — 29 Other 7 5 125 — 130 Total $ 555 $ 1,499 $ 105 $ 2,159 Receivables and payables, net (73 ) Combined net plan assets available for benefits $ 2,086 1 At both December 31, 2015 and 2014 , 38% of the common/collective assets are invested in a large cap index fund which seeks to track performance of the Russell 1000 index. 41% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and MSCI Europe, Australasia and Far East (EAFE) Index. 17% in a non-index U.S. equity fund which is actively managed. 2 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 47% ) and the MSCI All Country World Index ( 53% ) for both 2015 and 2014 . 3 Corporate notes and bonds are diversified and include approximately $27 million and $31 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2015 and 2014 , respectively. 4 At December 31, 2015 and 2014 , respectively, 29% and 50% of the Level 3 partnerships category is invested in (1) asset backed securities including distressed mortgages, (2) distressed companies and (3) commercial and residential loans and debt and equity of banks. At December 31, 2015 and 2014 , respectively, 71% and 50% of the Level 3 partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. 5 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. 6 Level 1 registered investment companies consist of a money market fund. 7 Other includes $97 million and $111 million of municipal securities at December 31, 2015 and 2014 , respectively. |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Entity, Other Assets, Noncurrent [Abstract] | |
Amortized Cost and Fair Value of the Trust Investments | The following table sets forth amortized cost and fair value of the trust investments: Longest Maturity Date Amortized Cost Fair Value December 31, (in millions) 2015 2014 2015 2014 Stocks — $ 304 $ 524 $ 1,460 $ 2,031 Municipal bonds 2054 691 681 840 822 U.S. government and agency securities 2046 1,070 777 1,128 836 Corporate bonds 2057 708 346 755 395 Short-term investments and receivables/payables 1 One-year 144 692 148 715 Total $ 2,917 $ 3,020 $ 4,331 $ 4,799 1 Short-term investments include $81 million and $164 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 5, 2016 and January 7, 2015 as of December 31, 2015 and 2014 , respectively. |
Summary of Changes in the Fair Value of Trust | The following table sets forth a summary of changes in the fair value of the trusts: Years ended December 31, (in millions) 2015 2014 2013 Balance at beginning of period $ 4,799 $ 4,494 $ 4,048 Gross realized gains 326 197 300 Gross realized losses (26 ) (5 ) (32 ) Unrealized (losses) gains (364 ) 75 160 Other-than-temporary impairments (29 ) (14 ) (47 ) Interest, dividends and other 115 118 113 Contributions 54 5 22 Income taxes (64 ) (62 ) (66 ) Decommissioning disbursements (471 ) (4 ) — Administrative expenses and other (9 ) (5 ) (4 ) Balance at end of period $ 4,331 $ 4,799 $ 4,494 |
Regulatory Assets and Liabili40
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets Included on the Consolidated Balance Sheets | SCE's regulatory assets included on the consolidated balance sheets are: December 31, (in millions) 2015 2014 Current: Regulatory balancing accounts $ 382 $ 1,088 Energy derivatives 159 159 Other 19 7 Total current 560 1,254 Long-term: Deferred income taxes, net 3,757 3,405 Pensions and other postretirement benefits 849 1,218 Energy derivatives 1,027 850 Unamortized investments, net 182 255 San Onofre 1,043 1,288 Unamortized loss on reacquired debt 201 201 Regulatory balancing accounts 36 44 Environmental remediation 129 107 Other 288 244 Total long-term 7,512 7,612 Total regulatory assets $ 8,072 $ 8,866 |
Regulatory Liabilities Included on the Consolidated Balance Sheets | SCE's regulatory liabilities included on the consolidated balance sheets are: December 31, (in millions) 2015 2014 Current: Regulatory balancing accounts $ 1,106 $ 380 Other 22 21 Total current 1,128 401 Long-term: Costs of removal 2,781 2,826 Recoveries in excess of ARO liabilities 1 1,502 1,956 Regulatory balancing accounts 1,314 1,083 Other 79 24 Total long-term 5,676 5,889 Total regulatory liabilities $ 6,804 $ 6,290 1 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments (see Note 9). |
Schedule of Regulatory Balancing Accounts | The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: December 31, (in millions) 2015 2014 Asset (liability) Energy resource recovery account $ (439 ) $ 1,028 New system generation balancing account (171 ) 35 Public purpose programs and energy efficiency programs (683 ) (874 ) Base rate recovery balancing account (319 ) (5 ) Tax accounting memorandum account and pole loading (248 ) — Greenhouse gas auction revenue (75 ) (182 ) FERC balancing accounts 74 (32 ) Generator settlements (4 ) (197 ) Other (137 ) (104 ) Liability $ (2,002 ) $ (331 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Summary of power purchase agreements treated as operating and capital leases | The amount of this discount is shown in the table below as the amount representing interest. (in millions) Operating Leases Capital Leases 2016 $ 374 $ 1 2017 354 1 2018 250 2 2019 186 2 2020 174 2 Thereafter 1,745 10 Total future commitments $ 3,083 $ 18 Amount representing executory costs (7 ) Amount representing interest (3 ) Net commitments $ 8 |
Summary of estimated minimum future commitments for noncancelable power plant facilities and other operating leases | The following summarizes the estimated minimum future commitments for SCE's noncancelable other operating leases (excluding SCE's power purchase agreements discussed above): (in millions) Operating Leases – Other 2016 $ 68 2017 52 2018 44 2019 35 2020 27 Thereafter 271 Total future commitments $ 497 |
Southern California Edison | |
Schedule Of Commitments And Contingencies [Line Items] | |
Summary of undiscounted future expected payments for power purchase agreements that have been approved by the CPUC and have completed major milestones for construction | At December 31, 2015 , the undiscounted future minimum expected payments for the SCE power purchase agreements that have been approved by the CPUC and have completed major milestones for construction were as follows: (in millions) Renewable Energy Contracts QF Power Purchase Agreements Other Purchase Agreements 2016 $ 1,234 $ 223 $ 741 2017 1,417 189 758 2018 1,472 149 589 2019 1,562 87 503 2020 1,605 39 459 Thereafter 21,439 69 1,022 Total future commitments $ 28,729 $ 756 $ 4,072 |
Summary of certain future other commitments | The following summarizes the estimated minimum future commitments for SCE's other commitments: (in millions) 2016 2017 2018 2019 2020 Thereafter Total Other contractual obligations $ 181 $ 140 $ 101 $ 56 $ 59 $ 547 $ 1,084 |
Preferred and Preference Stoc42
Preferred and Preference Stock of Utility (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Preferred And Preference Stock Of Utility Disclosure [Abstract] | |
Schedule of preferred stock and preference stock | Preferred stock and preference stock is: Shares Outstanding Redemption Price December 31, (in millions, except shares and per-share amounts) 2015 2014 Cumulative preferred stock $25 par value: 4.08% Series 650,000 $ 25.50 $ 16 $ 16 4.24% Series 1,200,000 25.80 30 30 4.32% Series 1,653,429 28.75 41 41 4.78% Series 1,296,769 25.80 33 33 Preference stock No par value: 4.51% Series A (variable and noncumulative) 3,250,000 100.00 — 325 6.50% Series D (cumulative) 1,250,000 100.00 125 125 6.25% Series E (cumulative) 350,000 1,000.00 350 350 5.625% Series F (cumulative) 190,004 2,500.00 475 475 5.10% Series G (cumulative) 160,004 2,500.00 400 400 5.75% Series H (cumulative) 110,004 2,500.00 275 275 5.375% Series J (cumulative) 130,004 2,500.00 325 — SCE's preferred and preference stock 2,070 2,070 Less issuance costs (50 ) (48 ) Edison International's preferred and preference stock of utility $ 2,020 $ 2,022 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Years ended December 31, (in millions) 2015 2014 2015 2014 Beginning balance $ (58 ) $ (13 ) $ (28 ) $ (11 ) Pension and PBOP – net gain (loss): Other comprehensive income (loss) before reclassifications (8 ) (58 ) 1 (21 ) Reclassified from accumulated other comprehensive loss 1 10 11 5 2 Other — 2 — 2 Change 2 (45 ) 6 (17 ) Ending balance $ (56 ) $ (58 ) $ (22 ) $ (28 ) 1 These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information. |
Interest and Other Income and44
Interest and Other Income and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Interest and other income and other expenses are as follows: Years ended December 31, (in millions) 2015 2014 2013 SCE interest and other income: Equity allowance for funds used during construction $ 87 $ 65 $ 72 Increase in cash surrender value of life insurance policies and life insurance benefits 26 36 30 Interest income 4 5 10 Other 6 16 10 Total SCE interest and other income 123 122 122 Other income of Edison International Parent and Other 1 51 25 2 Total Edison International interest and other income $ 174 $ 147 $ 124 SCE other expenses: Civic, political and related activities and donations $ (35 ) $ (35 ) $ (37 ) Other (24 ) (44 ) (37 ) Total SCE other expenses (59 ) (79 ) (74 ) Other expense of Edison International Parent and Other — (1 ) — Total Edison International other expenses $ (59 ) $ (80 ) $ (74 ) 1 Reflects Edison Capital's income related to the sale of affordable housing projects. |
Supplemental Cash Flows Infor45
Supplemental Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental cash flows information is: Edison International SCE Years ended December 31, (in millions) 2015 2014 2013 2015 2014 2013 Cash payments (receipts) for interest and taxes: Interest, net of amounts capitalized $ 512 $ 504 $ 477 $ 478 $ 487 $ 462 Tax payments (refunds), net 1 32 28 144 (88 ) 28 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 156 $ 136 $ 116 $ — $ 147 $ — Preferred and preference stock 14 18 30 14 18 30 Details of debt exchange: Pollution-control bonds redeemed (2.875%) (203 ) — — (203 ) — — Pollution-control bonds issued (1.875%) 203 — — 203 — — Notes issued under EME Settlement Agreement $ — $ 418 $ — $ — $ — $ — |
Quarterly Financial Data (Una46
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Edison International's quarterly financial data is as follows: 2015 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 11,524 $ 2,341 $ 3,763 $ 2,908 $ 2,512 Operating income 2,008 340 608 524 538 Income (loss) from continuing operations 1 1,082 (47 ) 405 406 318 Income (loss) from discontinued operations, net 35 (8 ) 43 — — Net income (loss) attributable to common shareholders 1,020 (79 ) 421 379 299 Basic earnings (loss) per share: Continuing operations $ 3.02 $ (0.22 ) $ 1.16 $ 1.16 $ 0.92 Discontinued operations 0.11 (0.02 ) 0.13 — — Total $ 3.13 $ (0.24 ) $ 1.29 $ 1.16 $ 0.92 Diluted earnings (loss) per share: Continuing operations $ 2.99 $ (0.22 ) $ 1.15 $ 1.15 $ 0.91 Discontinued operations 0.11 (0.02 ) 0.13 — — Total $ 3.10 $ (0.24 ) $ 1.28 $ 1.15 $ 0.91 Dividends declared per share 1.7325 0.4800 0.4175 0.4175 0.4175 Common stock prices: High 69.59 66.29 63.18 64.55 69.59 Low 55.18 57.51 55.52 55.18 61.02 Close 59.21 59.21 63.07 55.58 62.47 1 In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 13,413 $ 3,114 $ 4,356 $ 3,016 $ 2,926 Operating income 2,472 693 874 575 331 Income from continuing operations 1 1,536 406 524 382 224 Income (loss) from discontinued operations, net 185 39 (16 ) 184 (22 ) Net income attributable to common shareholders 1,612 420 480 536 176 Basic earnings (loss) per share: Continuing operations $ 4.38 $ 1.17 $ 1.52 $ 1.08 $ 0.61 Discontinued operations 0.57 0.12 (0.05 ) 0.56 (0.07 ) Total $ 4.95 $ 1.29 $ 1.47 $ 1.64 $ 0.54 Diluted earnings (loss) per share: Continuing operations $ 4.33 $ 1.15 $ 1.51 $ 1.07 $ 0.61 Discontinued operations 0.56 0.12 (0.05 ) 0.56 (0.07 ) Total $ 4.89 $ 1.27 $ 1.46 $ 1.63 $ 0.54 Dividends declared per share 1.4825 0.4175 0.3550 0.3550 0.3550 Common stock prices: High 68.74 68.74 59.54 58.24 56.61 Low 44.74 55.88 54.12 53.63 44.74 Close 65.48 65.48 55.92 58.11 56.61 1 During the first quarter of 2014, SCE recorded an impairment charge of $231 million ( $96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ( $24 million after-tax) consistent with the advice for reimbursement of recorded costs. SCE's quarterly financial data is as follows: 2015 (in millions) Total Fourth Third Second First Operating revenue $ 11,485 $ 2,319 $ 3,757 $ 2,901 $ 2,508 Operating income 2,080 366 626 536 550 Net income (loss) 1 1,111 (51 ) 417 412 333 Net income (loss) available for common stock 998 (80 ) 389 384 305 Common dividends declared 611 170 147 147 147 1 In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014 (in millions) Total Fourth Third Second First Operating revenue $ 13,380 $ 3,104 $ 4,338 $ 3,014 $ 2,924 Operating income 2,529 715 881 593 342 Net income 1 1,565 408 531 392 234 Net income available for common stock 1,453 380 503 362 208 Common dividends declared 525 147 126 126 126 1 During the first quarter of 2014, SCE recorded an impairment charge of $231 million ( $96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ( $24 million after-tax) consistent with the advice for reimbursement of recorded costs. |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | $ 37 | $ 35 |
Book balances reclassified to accounts payable | 162 | 180 |
Southern California Edison | ||
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | 8 | 5 |
Book balances reclassified to accounts payable | $ 158 | $ 177 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Property, Plant and Equipment and Asset Retirement Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Asset Retirement Obligation, Roll Forward | |||
Beginning balance | $ 2,821 | ||
Ending balance | 2,764 | $ 2,821 | |
Southern California Edison | |||
Asset Retirement Obligation, Roll Forward | |||
Beginning balance | 2,819 | 3,418 | |
Accretion | [1] | 173 | 192 |
Revisions | (14) | (790) | |
Liabilities settled | (216) | (1) | |
Ending balance | $ 2,762 | $ 2,819 | |
Southern California Edison | Generation plant | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 38 years | ||
Southern California Edison | Distribution plant | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 43 years | ||
Southern California Edison | Transmission plant | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 52 years | ||
Southern California Edison | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 22 years | ||
Southern California Edison | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Southern California Edison | Minimum | Generation plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 10 years | ||
Southern California Edison | Minimum | Distribution plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 20 years | ||
Southern California Edison | Minimum | Transmission plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 40 years | ||
Southern California Edison | Minimum | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Southern California Edison | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 15 years | ||
Southern California Edison | Maximum | Generation plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 57 years | ||
Southern California Edison | Maximum | Distribution plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 60 years | ||
Southern California Edison | Maximum | Transmission plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 65 years | ||
Southern California Edison | Maximum | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 60 years | ||
[1] | An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Deferred Financing Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Southern California Edison | |||
Amortization of deferred financing costs charged to interest expense | $ 28 | $ 32 | $ 32 |
Edison International | |||
Amortization of deferred financing costs charged to interest expense | $ 33 | $ 36 | $ 33 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic earnings per share – continuing operations: | |||||||||||
Income from continuing operations, net of tax | $ 985 | $ 1,427 | $ 879 | ||||||||
Participating securities dividends | (1) | (1) | 0 | ||||||||
Income from continuing operations available to common shareholders | $ 984 | $ 1,426 | $ 879 | ||||||||
Weighted average common shares outstanding (in shares) | 326 | 326 | 326 | ||||||||
Basic earnings (loss) per share – continuing operations (in dollars per share) | $ (0.22) | $ 1.16 | $ 1.16 | $ 0.92 | $ 1.17 | $ 1.52 | $ 1.08 | $ 0.61 | $ 3.02 | $ 4.38 | $ 2.70 |
Diluted earnings per share – continuing operations: | |||||||||||
Income from continuing operations available to common shareholders | $ 984 | $ 1,426 | $ 879 | ||||||||
Income impact of assumed conversions | 1 | 1 | 1 | ||||||||
Income from continuing operations available to common shareholders and assumed conversions | $ 985 | $ 1,427 | $ 880 | ||||||||
Weighted average common shares outstanding (in shares) | 326 | 326 | 326 | ||||||||
Incremental shares from assumed conversions (in shares) | 3 | 3 | 3 | ||||||||
Adjusted weighted average shares - diluted (in shares) | 329 | 329 | 329 | ||||||||
Diluted earnings (loss) per share – continuing operations (in dollars per share) | $ (0.22) | $ 1.15 | $ 1.15 | $ 0.91 | $ 1.15 | $ 1.51 | $ 1.07 | $ 0.61 | $ 2.99 | $ 4.33 | $ 2.67 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Narrative) (Details) mi² in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)MW | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($)mi²MWshares | Dec. 31, 2014USD ($)financingshares | Dec. 31, 2013USD ($)shares | Dec. 31, 2014USD ($) | May. 31, 2013USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||||
Reinvested Proceeds from Decommissioning Fund | $ 13,700,000,000 | $ 7,500,000,000 | $ 4,400,000,000 | |||||||
Maximum Maturity of Cash Equivalent Investments Period | 3 months | |||||||||
Depreciation | $ 1,420,000,000 | 1,330,000,000 | 1,310,000,000 | |||||||
Impairment and other charges | $ 382,000,000 | 5,000,000 | 157,000,000 | $ 571,000,000 | ||||||
Asset retirement obligations | $ 2,821,000,000 | 2,764,000,000 | $ 2,821,000,000 | 2,764,000,000 | 2,821,000,000 | $ 2,821,000,000 | ||||
Regulatory assets | 7,612,000,000 | 7,512,000,000 | 7,612,000,000 | 7,512,000,000 | 7,612,000,000 | 7,612,000,000 | ||||
Assets | 49,734,000,000 | 50,310,000,000 | 49,734,000,000 | 50,310,000,000 | 49,734,000,000 | 49,734,000,000 | ||||
Liabilities | 36,746,000,000 | 36,916,000,000 | 36,746,000,000 | 36,916,000,000 | 36,746,000,000 | 36,746,000,000 | ||||
Net current deferred tax liabilities | (6,861,000,000) | (7,480,000,000) | (6,861,000,000) | $ (7,480,000,000) | $ (6,861,000,000) | (6,861,000,000) | ||||
Stock Compensation Plan | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Antidilutive stock option awards excluded from earnings per share, number of shares | shares | 2,046,045 | 125,345 | 3,977,894 | |||||||
Southern California Edison | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Public Utilities Depreciation Expense Stated As A Percentage Of Average Original Cost Of Depreciable Utility Plant | 3.90% | 4.00% | 4.20% | |||||||
Estimated cost of debt and equity funds for construction, capitalized | $ 87,000,000 | $ 65,000,000 | $ 72,000,000 | |||||||
AFUDC debt capitalized during construction | 31,000,000 | 25,000,000 | 33,000,000 | |||||||
Impairment and other charges | 0 | 163,000,000 | 575,000,000 | |||||||
Asset retirement obligations | 2,819,000,000 | $ 2,762,000,000 | 2,819,000,000 | 2,762,000,000 | 2,819,000,000 | 3,418,000,000 | 2,819,000,000 | |||
Revisions to asset retirement obligation, increase (decrease) | $ (14,000,000) | (790,000,000) | ||||||||
Decommissioning Cost Escalated Rates, Low End of Range | 1.40% | 1.40% | ||||||||
Decommissioning Cost Escalated Rates, High End of Range | 7.30% | 7.30% | ||||||||
Decommissioning Funds Estimated Annual Earnings, Net of Tax Percentage, Low End of Range | 3.30% | |||||||||
Decommissioning Funds Estimated Annual Earnings, Net of Tax Percentage, High End of Range | 4.10% | |||||||||
Decommissioning Expense under Rate Making Method | 5,000,000 | 22,000,000 | ||||||||
Regulatory assets | 7,612,000,000 | $ 7,512,000,000 | 7,612,000,000 | $ 7,512,000,000 | 7,612,000,000 | 7,612,000,000 | ||||
Unamortized debt issuance expense | 75,000,000 | 84,000,000 | 75,000,000 | 84,000,000 | 75,000,000 | 75,000,000 | ||||
Franchise Fees Billed to Customers | $ 138,000,000 | 134,000,000 | 116,000,000 | |||||||
Period for calculation of weighted average common equity component (months) | 13 months | |||||||||
Weighted Average Common Equity Component, Percentage of Total Capitalization | 49.90% | |||||||||
Capacity to Pay Additional Dividends | $ 441,000,000 | |||||||||
Restriction on net assets | 13,200,000,000 | 13,200,000,000 | ||||||||
Assets | 49,456,000,000 | 49,872,000,000 | 49,456,000,000 | 49,872,000,000 | 49,456,000,000 | 49,456,000,000 | ||||
Liabilities | 36,174,000,000 | 36,200,000,000 | 36,174,000,000 | 36,200,000,000 | 36,174,000,000 | 36,174,000,000 | ||||
Net current deferred tax liabilities | (8,497,000,000) | (9,073,000,000) | (8,497,000,000) | (9,073,000,000) | (8,497,000,000) | (8,497,000,000) | ||||
Southern California Edison | Loss on Reacquired Debt | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Regulatory assets | 201,000,000 | 201,000,000 | 201,000,000 | 201,000,000 | 201,000,000 | 201,000,000 | ||||
Southern California Edison | San Onofre 2 and 3 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Reclassification To Regulatory Assets Amount | $ 1,521,000,000 | |||||||||
Impairment and other charges | 68,000,000 | $ 231,000,000 | $ 575,000,000 | 163,000,000 | 738,000,000 | |||||
Asset impairment net of tax | 24,000,000 | $ 96,000,000 | $ 365,000,000 | 72,000,000 | 437,000,000 | |||||
Revisions to asset retirement obligation, increase (decrease) | 688,000,000 | |||||||||
Southern California Edison | Palo Verde, San Onofre 1, 2 and 3 [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Decommissioning Active and Inactive Nuclear Facilities Asset Retirement Obligation | 2,700,000,000 | 2,700,000,000 | ||||||||
Decommissioning Estimated Cost | 7,200,000,000 | |||||||||
Southern California Edison | Palo Verde | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Increase (decrease) in asset retirement obligation | (253,000,000) | |||||||||
Southern California Edison | San Onofre 1 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Increase (decrease) in asset retirement obligation | 124,000,000 | |||||||||
Decommissioning Expenditures to Date | 484,000,000 | 484,000,000 | ||||||||
Southern California Edison | Other Current Assets | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Greenhouse Gas Allowances | 204,000,000 | 79,000,000 | 204,000,000 | 79,000,000 | 204,000,000 | 204,000,000 | ||||
Southern California Edison | Other Current Liabilities | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Greenhouse Gas Emission Obligations | 211,000,000 | 86,000,000 | 211,000,000 | 86,000,000 | 211,000,000 | 211,000,000 | ||||
Edison International | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Unamortized debt issuance expense | 83,000,000 | 92,000,000 | 83,000,000 | $ 92,000,000 | 83,000,000 | 83,000,000 | ||||
Weighted Average Common Equity Component Minimum Percentage Authorization Set By C P U C | 48.00% | |||||||||
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 13 months | |||||||||
Assets | $ 13,674,000,000 | 13,699,000,000 | $ 13,674,000,000 | $ 13,699,000,000 | 13,674,000,000 | $ 13,674,000,000 | ||||
Net income | 1,020,000,000 | $ 1,612,000,000 | $ 915,000,000 | |||||||
Unidentified Subsidiary, Limited Liability Company | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Assets | 82,000,000 | 82,000,000 | ||||||||
Liabilities | $ 32,000,000 | 32,000,000 | ||||||||
Net income | $ 16,000,000 | |||||||||
Unidentified Subsidiary, Limited Liability Company | Call Option | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Term of derivative contract | 9 months | |||||||||
Cooldown period after completion of project | 5 years | |||||||||
Indirect Subsidiaries | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Number of new financings | financing | 3 | |||||||||
Power generating capacity for majority interest (in megawatts) | MW | 29 | 29 | ||||||||
Debt Instrument, Term | 7 years | |||||||||
Percent of taxable profits and losses and tax credits attributable to tax equity investors, period one | 99.00% | |||||||||
Period of taxable profits and losses and tax credits attributable to tax equity investors, period one | 6 years | |||||||||
Priority return on investment for noncontrolling interest holders | 2.00% | |||||||||
Percent of taxable profits and losses and tax credits attributable to tax equity investors, period two | 5.00% | |||||||||
Electric Utility | Southern California Edison | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Supply Of Electricity Area Covered (in square miles) | mi² | 50 | |||||||||
Adjustments for New Accounting Principle, Early Adoption [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Net current deferred tax assets | $ 452,000,000 | $ 452,000,000 | ||||||||
Adjustments for New Accounting Principle, Early Adoption [Member] | Southern California Edison | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Net current deferred tax liabilities | $ 209,000,000 | $ 209,000,000 |
Property, Plant and Equipment52
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Public Utilities, Property, Plant and Equipment, Plant in Service [Abstract] | ||
Accumulated depreciation | $ (8,548) | $ (8,132) |
Total utility property, plant and equipment | 34,945 | 32,859 |
Southern California Edison | ||
Public Utilities, Property, Plant and Equipment, Plant in Service [Abstract] | ||
Transmission | 11,592 | 10,391 |
Distribution | 20,871 | 19,255 |
Generation | 3,138 | 2,986 |
General plant and other | 4,543 | 4,889 |
Accumulated depreciation | (8,548) | (8,132) |
Total utility property, plant and equipment, Gross | 31,596 | 29,389 |
Construction work in progress | 3,218 | 3,339 |
Nuclear fuel, at amortized cost | 131 | 131 |
Total utility property, plant and equipment | 34,945 | 32,859 |
Nuclear Fuel (at amortized cost) | 131 | $ 131 |
Southern California Edison | Eldorado | ||
Public Utilities, Property, Plant and Equipment, Plant in Service [Abstract] | ||
Nuclear fuel, at amortized cost | 0 | |
Plant in Service | 186 | |
Construction Work in Progress | 38 | |
Accumulated Depreciation | 20 | |
Nuclear Fuel (at amortized cost) | 0 | |
Net Book Value | $ 204 | |
Ownership Interest | 59.00% | |
Southern California Edison | Pacific Intertie | ||
Public Utilities, Property, Plant and Equipment, Plant in Service [Abstract] | ||
Nuclear fuel, at amortized cost | $ 0 | |
Plant in Service | 191 | |
Construction Work in Progress | 11 | |
Accumulated Depreciation | 79 | |
Nuclear Fuel (at amortized cost) | 0 | |
Net Book Value | $ 123 | |
Ownership Interest | 50.00% | |
Southern California Edison | Palo Verde (nuclear) | ||
Public Utilities, Property, Plant and Equipment, Plant in Service [Abstract] | ||
Nuclear fuel, at amortized cost | $ 131 | |
Plant in Service | 1,928 | |
Construction Work in Progress | 62 | |
Accumulated Depreciation | 1,538 | |
Nuclear Fuel (at amortized cost) | 131 | |
Net Book Value | $ 583 | |
Ownership Interest | 16.00% | |
Southern California Edison | Total | ||
Public Utilities, Property, Plant and Equipment, Plant in Service [Abstract] | ||
Nuclear fuel, at amortized cost | $ 131 | |
Plant in Service | 2,305 | |
Construction Work in Progress | 111 | |
Accumulated Depreciation | 1,637 | |
Nuclear Fuel (at amortized cost) | 131 | |
Net Book Value | $ 910 |
Property, Plant and Equipment53
Property, Plant and Equipment (Textual) (Details) - Southern California Edison - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized software costs | $ 1,400 | $ 1,700 | |
Capitalized software, accumulated amortization | 900 | 1,000 | |
Capitalized software, amortization expense | 268 | $ 271 | $ 251 |
Capitalized software, estimated annual amortization expense for 2015 through 2019 | $ 237 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 15 years |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Southern California Edison | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesMW | Dec. 31, 2014USD ($)$ / sharesMW | |
Series G Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.10% | |
Series H Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.75% | |
Series J Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.375% | |
Liquidation preference | $ 325,000,000 | |
Series F Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.625% | |
Variable Interest Entity, Not Primary Beneficiary | SCE Power Purchase Contracts | ||
Details of projects or entities | ||
Power generating capacity for majority interest (in megawatts) | MW | 4,062 | 5,641 |
Payments to unconsolidated VIEs for power purchase contracts | $ 640,000,000 | $ 739,000,000 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust I | ||
Unconsolidated Trust | ||
Common stock | $ 10,000 | $ 10,000 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust I | Trust Securities | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.625% | 5.625% |
Liquidation preference | $ 475,000,000 | $ 475,000,000 |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust I | Series F Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.625% | 5.625% |
Liquidation preference | $ 475,000,000 | $ 475,000,000 |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust II | ||
Unconsolidated Trust | ||
Common stock | $ 10,000 | $ 10,000 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust II | Trust Securities | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.10% | 5.10% |
Liquidation preference | $ 400,000,000 | $ 400,000,000 |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust II | Series G Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.10% | 5.10% |
Liquidation preference | $ 400,000,000 | $ 400,000,000 |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust III | ||
Unconsolidated Trust | ||
Common stock | $ 10,000 | $ 10,000 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust III | Trust Securities | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.75% | 5.75% |
Liquidation preference | $ 275,000,000 | $ 275,000,000 |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust III | Series H Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.75% | 5.75% |
Liquidation preference | $ 275,000,000 | $ 275,000,000 |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust IV | ||
Unconsolidated Trust | ||
Common stock | $ 10,000 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust IV | Trust Securities | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.375% | |
Liquidation preference | $ 325,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 25 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust IV | Series J Preferred Stock | ||
Unconsolidated Trust | ||
Security dividend rate, (as a percent) | 5.375% | |
Liquidation preference | $ 325,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 |
Variable Interest Entities (T55
Variable Interest Entities (Table) (Details) - Variable Interest Entity, Not Primary Beneficiary - Southern California Edison - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SCE Trust I | |||
Variable Interest Entity [Line Items] | |||
Dividend income | $ 27 | $ 27 | $ 27 |
Dividend distributions | 27 | 27 | 27 |
SCE Trust II | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 20 | 20 | 19 |
Dividend distributions | 20 | 20 | $ 19 |
SCE Trust III | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 13 | |
Dividend distributions | 16 | $ 13 | |
SCE Trust IV | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 6 | ||
Dividend distributions | $ 6 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets at fair value | |||||
Nuclear decommissioning trusts | $ 4,331 | $ 4,799 | |||
Liabilities at fair value | |||||
Money market funds | 37 | 35 | |||
Level 1 | |||||
Liabilities at fair value | |||||
Money market funds | 29 | 30 | |||
Southern California Edison | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | $ 4,331 | $ 4,799 | $ 4,494 | $ 4,048 | |
Liabilities at fair value | |||||
Percentage of equity investments located in the United States (as a percent) | 70.00% | 73.00% | |||
Collateralized mortgage obligations and other asset backed securities | $ 111 | $ 49 | |||
Receivables (payables) net related to investments | (24) | (57) | |||
Money market funds | 8 | 5 | |||
Southern California Edison | Stocks | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | 1,460 | 2,031 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | |||||
Assets at fair value | |||||
Derivative contracts | 0 | 0 | |||
Other | 28 | 33 | |||
Nuclear decommissioning trusts | [1] | 2,498 | 3,340 | ||
Total assets | 2,526 | 3,373 | |||
Liabilities at fair value | |||||
Derivative contracts | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Net assets (liabilities) | 2,526 | 3,373 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [2] | 1,460 | 2,031 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Fixed Income | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [3] | 947 | 703 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | 91 | 606 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | |||||
Assets at fair value | |||||
Derivative contracts | 0 | 0 | |||
Other | 0 | 0 | |||
Nuclear decommissioning trusts | [1] | 1,857 | 1,516 | ||
Total assets | 1,857 | 1,516 | |||
Liabilities at fair value | |||||
Derivative contracts | 22 | 86 | |||
Total liabilities | 22 | 86 | |||
Net assets (liabilities) | 1,835 | 1,430 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Stocks | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [2] | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Fixed Income | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [3] | 1,776 | 1,350 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | 81 | 166 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | |||||
Assets at fair value | |||||
Derivative contracts | 163 | 321 | |||
Other | 0 | 0 | |||
Nuclear decommissioning trusts | [1] | 0 | 0 | ||
Total assets | 163 | 321 | |||
Liabilities at fair value | |||||
Derivative contracts | 1,311 | 1,223 | |||
Total liabilities | 1,311 | 1,223 | |||
Net assets (liabilities) | (1,148) | (902) | |||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Stocks | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [2] | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Fixed Income | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [3] | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Short-term investments, primarily cash equivalents | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | 0 | 0 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in consolidated balance sheets | |||||
Assets at fair value | |||||
Derivative contracts | [4] | 0 | 0 | ||
Other | [4] | 0 | 0 | ||
Nuclear decommissioning trusts | [1],[4] | 0 | 0 | ||
Total assets | [4] | 0 | 0 | ||
Liabilities at fair value | |||||
Derivative contracts | [4] | (15) | (61) | ||
Total liabilities | [4] | (15) | (61) | ||
Net assets (liabilities) | [4] | 15 | 61 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in consolidated balance sheets | Stocks | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [2],[4] | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in consolidated balance sheets | Fixed Income | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [3],[4] | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in consolidated balance sheets | Short-term investments, primarily cash equivalents | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [4] | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | |||||
Assets at fair value | |||||
Derivative contracts | 163 | 321 | |||
Other | 28 | 33 | |||
Nuclear decommissioning trusts | [1] | 4,355 | 4,856 | ||
Total assets | 4,546 | 5,210 | |||
Liabilities at fair value | |||||
Derivative contracts | 1,318 | 1,248 | |||
Total liabilities | 1,318 | 1,248 | |||
Net assets (liabilities) | 3,228 | 3,962 | |||
Southern California Edison | Fair Value, Measurements, Recurring | Total | Stocks | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [2] | 1,460 | 2,031 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | Fixed Income | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | [3] | 2,723 | 2,053 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | Short-term investments, primarily cash equivalents | |||||
Assets at fair value | |||||
Nuclear decommissioning trusts | $ 172 | $ 772 | |||
[1] | Excludes net payables of $24 million and $57 million at December 31, 2015 and 2014, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. | ||||
[2] | Approximately 70% and 73% of SCE's equity investments were located in the United States at December 31, 2015 and 2014, respectively. | ||||
[3] | Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $111 million and $49 million at December 31, 2015 and 2014, respectively. | ||||
[4] | Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Rollforward) (Details) - Southern California Edison - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Disclosures Level 3 [Roll Forward] | |||
Fair value of net liabilities at beginning of period | $ (902) | $ (805) | |
Total realized/unrealized gains (losses): | |||
Included in regulatory assets and liabilities | [1] | (246) | (97) |
Purchases | 0 | 27 | |
Settlements | 0 | (27) | |
Fair value of net liabilities at end of period | (1,148) | (902) | |
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period | $ (311) | $ (166) | |
[1] | Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Level 3 $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / MWhMW | Dec. 31, 2014USD ($)$ / MWhMW | ||
Congestion revenue rights | Market simulation model and auction prices | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value, Assets | $ | $ 152 | $ 317 | |
Fair Value, Liabilities | $ | $ 0 | $ 0 | |
Congestion revenue rights | Market simulation model and auction prices | Load forecast | Minimum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair value inputs, power units (in megawatts) | MW | 6,289 | 7,630 | |
Congestion revenue rights | Market simulation model and auction prices | Load forecast | Maximum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair value inputs, power units (in megawatts) | MW | 24,349 | 25,431 | |
Congestion revenue rights | Market simulation model and auction prices | Gas Prices | Minimum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | [1] | 1.98 | 3.65 |
Congestion revenue rights | Market simulation model and auction prices | Gas Prices | Maximum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | [1] | 5.72 | 6.53 |
Congestion revenue rights | Market simulation model and auction prices | Power Prices | Minimum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | [2] | 0 | 1.65 |
Congestion revenue rights | Market simulation model and auction prices | Power Prices | Maximum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | [2] | 110.44 | 109.95 |
Tolling | Option model | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value, Assets | $ | $ 10 | $ 4 | |
Fair Value, Liabilities | $ | $ 1,297 | $ 1,207 | |
Tolling | Option model | Gas Prices | Minimum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Expected volatility rate (as a percent) | 15.00% | 13.00% | |
Tolling | Option model | Gas Prices | Maximum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Expected volatility rate (as a percent) | 58.00% | 53.00% | |
Tolling | Option model | Gas Prices | Weighted Average | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Expected volatility rate (as a percent) | 20.00% | 20.00% | |
Tolling | Option model | Power Prices | Minimum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | 24.15 | 30.60 | |
Expected volatility rate (as a percent) | 26.00% | 25.00% | |
Tolling | Option model | Power Prices | Maximum | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | 46.93 | 61.40 | |
Expected volatility rate (as a percent) | 38.00% | 42.00% | |
Tolling | Option model | Power Prices | Weighted Average | |||
Quantitative Information About Level 3 Measurements [Line Items] | |||
Fair Value Inputs, Price Level ($ per MWh) | 34.80 | 44.60 | |
Expected volatility rate (as a percent) | 30.00% | 30.00% | |
[1] | Prices are in dollars per million British thermal units. | ||
[2] | Prices are in dollars per megawatt-hour. |
Fair Value Measurements (Fair59
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 11,259 | $ 10,738 |
Fair Value | 12,252 | 12,319 |
Southern California Edison | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 10,616 | 9,924 |
Fair Value | $ 11,592 | $ 11,479 |
Debt and Credit Agreements (Lon
Debt and Credit Agreements (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ (295) | $ (504) | |
Long-term debt | 10,964 | 10,234 | |
Edison International Parent and Other: | |||
Debt Instrument [Line Items] | |||
Other long-term debt | 31 | 2 | |
Current portion of long-term debt | (216) | (204) | |
Unamortized debt discount, net | (2) | (5) | |
Long-term debt | 427 | 610 | |
Edison International Parent and Other: | Debentures and notes: | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 614 | 817 | |
Interest rate on debt, minimum (as a percent) | 0.00% | ||
Interest rate on debt, maximum (as a percent) | 3.75% | ||
Southern California Edison | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ (79) | (300) | |
Unamortized debt discount, net | (36) | (37) | |
Long-term debt | 10,537 | 9,624 | |
Southern California Edison | Debentures and notes: | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 307 | 307 | |
Interest rate on debt, minimum (as a percent) | 5.06% | ||
Interest rate on debt, maximum (as a percent) | 6.65% | ||
Southern California Edison | First and refunding mortgage bonds: | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 9,436 | 8,875 | |
Interest rate on debt, minimum (as a percent) | 1.125% | ||
Interest rate on debt, maximum (as a percent) | 6.05% | ||
Southern California Edison | Pollution-control bonds: | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [1] | $ 909 | $ 779 |
Interest rate on debt, minimum (as a percent) | 1.375% | ||
Interest rate on debt, maximum (as a percent) | 5.00% | ||
[1] | 1 Includes outstanding bonds that have not been retired and may be remarketed to investors in the future. These bonds have variable rates and are due in 2031 at December 31, 2015. |
Debt and Credit Agreements (L61
Debt and Credit Agreements (Long-term debt maturities) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Long-term Debt, Fiscal Year Maturity | |
Year one | $ 295 |
Year two | 903 |
Year three | 402 |
Year four | 2 |
Year five | 1 |
Southern California Edison | |
Long-term Debt, Fiscal Year Maturity | |
Year one | 79 |
Year two | 500 |
Year three | 400 |
Year four | 0 |
Year five | $ 0 |
Debt and Credit Agreements (Add
Debt and Credit Agreements (Additional Information) (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)MW | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Carrying Value | $ 11,259,000,000 | $ 10,738,000,000 | ||
Short-term debt | 695,000,000 | 1,291,000,000 | ||
Credit Facility July 2020 | ||||
Debt Instrument [Line Items] | ||||
Commitment | 1,250,000,000 | |||
Outstanding borrowings | 646,000,000 | |||
Outstanding letters of credit | 0 | |||
Amount available | 604,000,000 | |||
Non-recourse Solar Rooftop Project Equity Investment Financing | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | $ 6,000,000 | 0 | ||
Weighted average interest rate on long term debt | 9.00% | |||
Debt Instrument, Face Amount | $ 80,000,000 | |||
Non-recourse Solar Rooftop Project Investment Financing | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate (as a percent) | 2.67% | |||
Carrying Value | $ 25,000,000 | $ 5,100,000 | ||
Weighted average interest rate on long term debt | 3.11% | |||
Power generating capacity (in megawatts) | MW | 29 | |||
Debt Instrument, Term | 7 years | |||
Indirect Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Power generating capacity (in megawatts) | MW | 29 | |||
Debt Instrument, Term | 7 years | |||
Southern California Edison | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | $ 10,616,000,000 | 9,924,000,000 | ||
Short-term debt | 49,000,000 | 667,000,000 | ||
Southern California Edison | Credit Facility July 2020 | ||||
Debt Instrument [Line Items] | ||||
Commitment | 2,750,000,000 | |||
Outstanding borrowings | 49,000,000 | |||
Outstanding letters of credit | (125,000,000) | |||
Amount available | $ 2,576,000,000 | |||
Southern California Edison | Amortizing First and Refunding Mortgage Bonds Due in 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 550,000,000 | |||
Interest rate on debt (as a percent) | 1.845% | |||
Southern California Edison | First and Refunding Mortgage Bonds Due in 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 325,000,000 | |||
Interest rate on debt (as a percent) | 2.40% | |||
Southern California Edison | 1.875% Pollution-Control Bonds Due in 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 56,000,000 | |||
Interest rate on debt (as a percent) | 1.875% | |||
Southern California Edison | 1.875% Pollution-Control Bonds Due in 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 75,000,000 | |||
Interest rate on debt (as a percent) | 1.875% | |||
Southern California Edison | First and Refunding Mortgage Bonds Due in 2045 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 425,000,000 | |||
Interest rate on debt (as a percent) | 3.60% | |||
Edison International | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 619,000,000 | |||
Weighted average interest rate (as a percent) | 0.78% | 0.45% | ||
Short-term debt | $ 646,000,000 | $ 619,000,000 | ||
Edison International | Credit Facility July 2020 | ||||
Debt Instrument [Line Items] | ||||
Commitment | 1,250,000,000 | |||
Commercial paper | Southern California Edison | Credit Facility July 2020 | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 49,000,000 | |||
Weighted average interest rate (as a percent) | 0.51% | 0.40% | ||
Short-term debt | $ 367,000,000 | |||
Commercial paper | Edison International | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 646,000,000 | |||
Letters of credit | Southern California Edison | Credit Facility July 2020 | ||||
Debt Instrument [Line Items] | ||||
Letters of credit expiration period | 12 months |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Disclosures) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value of Derivative Instruments | |||
Short-Term, Derivative Assets | $ 79 | $ 102 | |
Long-Term, Derivative Assets | 84 | 219 | |
Short-Term, Derivative Liabilities | 218 | 196 | |
Long-Term, Derivative Liabilities | 1,100 | 1,052 | |
Southern California Edison | |||
Fair Value of Derivative Instruments | |||
Short-Term, Derivative Assets | 79 | 102 | |
Long-Term, Derivative Assets | 84 | 219 | |
Short-Term, Derivative Liabilities | 218 | 196 | |
Long-Term, Derivative Liabilities | 1,100 | 1,052 | |
Southern California Edison | Electric Utility | |||
Fair Value of Derivative Instruments | |||
Short-Term, Derivative Assets | 79 | 102 | |
Long-Term, Derivative Assets | 84 | 219 | |
Derivative Assets, Total | 163 | 321 | |
Short-Term, Derivative Liabilities | 218 | 196 | |
Long-Term, Derivative Liabilities | 1,100 | 1,052 | |
Derivative Liabilities, Total | 1,318 | 1,248 | |
Net Liability | 1,155 | 927 | |
Southern California Edison | Electric Utility | Gross amounts recognized | |||
Fair Value of Derivative Instruments | |||
Short-Term, Derivative Assets | 81 | 104 | |
Long-Term, Derivative Assets | 84 | 219 | |
Derivative Assets, Total | 165 | 323 | |
Short-Term, Derivative Liabilities | 235 | 259 | |
Long-Term, Derivative Liabilities | 1,100 | 1,052 | |
Derivative Liabilities, Total | 1,335 | 1,311 | |
Net Liability | 1,170 | 988 | |
Southern California Edison | Electric Utility | Gross amounts offset in consolidated balance sheets | |||
Fair Value of Derivative Instruments | |||
Short-Term, Derivative Assets | (2) | (2) | |
Long-Term, Derivative Assets | 0 | 0 | |
Derivative Assets, Total | (2) | (2) | |
Short-Term, Derivative Liabilities | (2) | (2) | |
Long-Term, Derivative Liabilities | 0 | 0 | |
Derivative Liabilities, Total | (2) | (2) | |
Net Liability | 0 | 0 | |
Southern California Edison | Electric Utility | Cash collateral posted | |||
Fair Value of Derivative Instruments | |||
Short-Term, Derivative Assets | [1] | 0 | 0 |
Long-Term, Derivative Assets | [1] | 0 | 0 |
Derivative Assets, Total | [1] | 0 | 0 |
Short-Term, Derivative Liabilities | [1] | (15) | (61) |
Long-Term, Derivative Liabilities | [1] | 0 | 0 |
Derivative Liabilities, Total | [1] | (15) | (61) |
Net Liability | [1] | $ (15) | $ (61) |
[1] | In addition, at December 31, 2015 and 2014, SCE had posted $31 million and $36 million, respectively, of collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. |
Derivative Instruments (Additio
Derivative Instruments (Additional Disclosures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Collateral provided to counterparties: | |||
Reflected in margin and collateral deposits | $ 31 | $ 36 | |
Gross amounts recognized | Southern California Edison | |||
Collateral provided to counterparties: | |||
Realized losses | (148) | (57) | $ (56) |
Unrealized (losses) gains | (182) | (147) | $ 93 |
Gross amounts recognized | Southern California Edison | Electric Utility | |||
Derivatives | |||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | 38 | 53 | |
Collateral already posted, fair value | 0 | $ 13 | |
Potential additional collateral | 22 | ||
Gross amounts recognized | Payables | Southern California Edison | Electric Utility | |||
Derivatives | |||
Potential additional collateral | $ 8 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - Southern California Edison - Electric Utility - Gross amounts recognized MWh in Thousands | Dec. 31, 2015MWhMMcf | Dec. 31, 2014MWhMMcf |
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 6,221 | 3,618 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | MMcf | 32 | 83 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 109,740 | 122,859 |
Tolling arrangements (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 70,663 | 79,989 |
Income Taxes (Source of Income
Income Taxes (Source of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sources of Income (Loss) Before Income Taxes | |||
Income from continuing operations before income taxes | $ 1,568 | $ 1,979 | $ 1,221 |
Income (loss) from discontinued operations before income taxes | 15 | (525) | 0 |
Income before income tax | $ 1,583 | $ 1,454 | $ 1,221 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit) by Location) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Current: | ||||
Federal | $ 18 | $ (99) | $ (97) | |
State | 19 | 20 | (9) | |
Total Current Income Tax Expense (Benefit) | 37 | (79) | (106) | |
Deferred: | ||||
Federal | 340 | 454 | 317 | |
State | 109 | 68 | 31 | |
Total Deferred Income Tax Expense (Benefit) | 449 | 522 | 348 | |
Total income tax expense from continuing operations | 486 | 443 | 242 | |
Discontinued operations | [1] | (21) | (710) | (36) |
Total | 465 | (267) | 206 | |
Southern California Edison | ||||
Current: | ||||
Federal | 72 | (89) | (119) | |
State | 127 | 101 | (19) | |
Total Current Income Tax Expense (Benefit) | 199 | 12 | (138) | |
Deferred: | ||||
Federal | 298 | 476 | 345 | |
State | 10 | (14) | 72 | |
Total Deferred Income Tax Expense (Benefit) | 308 | 462 | 417 | |
Total income tax expense from continuing operations | 507 | 474 | 279 | |
Discontinued operations | [1] | 0 | 0 | 0 |
Total | $ 507 | $ 474 | $ 279 | |
[1] | See Note 15 for a discussion of discontinued operations related to EME. |
Income Taxes (Components of Net
Income Taxes (Components of Net Accumulated Deferred Income Tax Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred tax assets: | ||||
Property and software related | $ 675 | $ 572 | ||
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 360 | 441 | ||
Loss and credit carryforwards | 1,388 | 1,657 | $ 2,200 | |
Regulatory balancing accounts | 21 | 18 | ||
Pension and PBOPs | 337 | 510 | ||
Other | 499 | 582 | ||
Sub-total | 3,280 | 3,780 | ||
Less valuation allowance | 32 | 29 | ||
Total | 3,248 | 3,751 | ||
Deferred tax liabilities: | ||||
Property-related | 9,606 | 8,709 | ||
Capitalized software costs | 207 | 285 | ||
Regulatory balancing accounts | 202 | 577 | ||
Nuclear decommissioning trust assets | 360 | 441 | ||
PBOPs | 71 | 227 | ||
Other | 189 | 274 | ||
Total | 10,635 | 10,513 | ||
Accumulated deferred income tax liability, net | [1] | 7,387 | 6,762 | |
Southern California Edison | ||||
Deferred tax assets: | ||||
Property and software related | 675 | 571 | ||
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 360 | 441 | ||
Loss and credit carryforwards | 0 | 205 | ||
Regulatory balancing accounts | 21 | 18 | ||
Pension and PBOPs | 154 | 321 | ||
Other | 411 | 445 | ||
Sub-total | 1,621 | 2,001 | ||
Less valuation allowance | 0 | 0 | ||
Total | 1,621 | 2,001 | ||
Deferred tax liabilities: | ||||
Property-related | 9,600 | 8,699 | ||
Capitalized software costs | 207 | 285 | ||
Regulatory balancing accounts | 202 | 577 | ||
Nuclear decommissioning trust assets | 360 | 441 | ||
PBOPs | 71 | 227 | ||
Other | 161 | 171 | ||
Total | 10,601 | 10,400 | ||
Accumulated deferred income tax liability, net | [1] | $ 8,980 | $ 8,399 | |
[1] | Included in deferred income taxes and credits. |
Income Taxes (Operating Loss an
Income Taxes (Operating Loss and Tax Carryforward) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits | $ 529 | $ 576 | $ 815 | $ 812 | |
Loss Carryforwards, Expiring 2021 to 2034 | 1,136 | ||||
Loss Carryforwards, No expiration date | 0 | ||||
Loss Carryforwards | [1] | 1,136 | |||
Credit Carryforward, Expiring 2021 to 2034 | 409 | ||||
Credit Carryforward, No expiration date | 54 | ||||
Credit Carryforwards | [1] | 463 | |||
Loss and credit carryforwards | 1,388 | 1,657 | 2,200 | ||
Southern California Edison | |||||
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits | 353 | 441 | $ 532 | $ 571 | |
Loss Carryforwards, Expiring 2021 to 2034 | 39 | ||||
Loss Carryforwards | [1] | 39 | |||
Credit Carryforward, Expiring 2021 to 2034 | 22 | ||||
Credit Carryforward, No expiration date | 39 | ||||
Credit Carryforwards | [1] | 61 | |||
Loss and credit carryforwards | 0 | $ 205 | |||
Capistrano Wind [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Loss and credit carryforwards | 210 | ||||
Loss And Credit Carryforwards [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits | 211 | ||||
Loss And Credit Carryforwards [Member] | Southern California Edison | |||||
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits | $ 100 | ||||
[1] | Deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $211 million and $100 million for Edison International and SCE, respectively. |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Line Items] | ||||
Federal statutory income tax rate, percent | 35.00% | 35.00% | 35.00% | |
Effective Tax Rate | ||||
Income from continuing operations before income taxes | $ 1,568 | $ 1,979 | $ 1,221 | |
Provision for income tax at federal statutory rate of 35% | 549 | 693 | 427 | |
Regulatory asset write-off1 | [1] | 382 | 0 | 0 |
State tax, net of federal benefit | 5 | 56 | 18 | |
Property-related | [2] | (341) | (252) | (216) |
Change related to uncertain tax positions | (67) | 5 | 14 | |
San Onofre OII settlement | 0 | (23) | 24 | |
Other | (42) | (36) | (25) | |
Total income tax expense from continuing operations | $ 486 | $ 443 | $ 242 | |
Effective tax rate, percent | 31.00% | 22.40% | 19.80% | |
Southern California Edison | ||||
Effective Tax Rate | ||||
Income from continuing operations before income taxes | $ 1,618 | $ 2,039 | $ 1,279 | |
Provision for income tax at federal statutory rate of 35% | 566 | 714 | 448 | |
Regulatory asset write-off1 | [1] | 382 | 0 | 0 |
State tax, net of federal benefit | 34 | 55 | 34 | |
Property-related | [2] | (341) | (252) | (216) |
Change related to uncertain tax positions | (94) | 12 | 14 | |
San Onofre OII settlement | 0 | (23) | 24 | |
Other | (40) | (32) | (25) | |
Total income tax expense from continuing operations | $ 507 | $ 474 | $ 279 | |
Effective tax rate, percent | 31.30% | 23.20% | 21.80% | |
[1] | Includes federal and state. | |||
[2] | Includes incremental repair benefit recorded in 2013 to 2015. See discussion of repair deductions below. |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Reconciliation of Unrecognized Tax Benefits | ||||||||
Balance at January 1, | $ 576 | $ 815 | $ 812 | |||||
Tax positions taken during the current year, Increases | 54 | 65 | 19 | |||||
Tax positions taken during a prior year, Increases | 66 | 1 | 43 | |||||
Tax positions taken during a prior year, Decreases | [1] | (165) | (143) | (109) | ||||
Tax positions taken during a prior year: Increases (decreases) - deconsolidation of EME | $ 50 | 0 | [2] | 0 | [2] | 50 | [2] | |
Tax positions taken during a prior year, Decreases for settlements during the period | [3] | (2) | (162) | 0 | ||||
Balance at December 31, | 815 | 529 | 576 | 815 | ||||
Southern California Edison | ||||||||
Reconciliation of Unrecognized Tax Benefits | ||||||||
Balance at January 1, | 441 | 532 | 571 | |||||
Tax positions taken during the current year, Increases | 48 | 57 | 22 | |||||
Tax positions taken during a prior year, Increases | 23 | 0 | 45 | |||||
Tax positions taken during a prior year, Decreases | [1] | (159) | (93) | (106) | ||||
Tax positions taken during a prior year: Increases (decreases) - deconsolidation of EME | [2] | 0 | 0 | 0 | ||||
Tax positions taken during a prior year, Decreases for settlements during the period | [3] | 0 | (55) | 0 | ||||
Balance at December 31, | $ 532 | $ 353 | $ 441 | $ 532 | ||||
[1] | Decreases in prior year tax positions relate primarily to re-measurement of uncertain tax positions in connection with receipt of the IRS Revenue Agent Report in June 2015. | |||||||
[2] | Unrecognized tax benefits of EME have been deconsolidated as a result of the bankruptcy filing by EME, except for tax liabilities for which Edison International and EME are jointly liable under the Internal Revenue Code and applicable state statutes. See Note 15 for further information. During 2013, Edison International increased the amount of unrecognized tax benefits related to the taxable gain on sale of EME’s international assets by approximately $50 million as a result of unfavorable developments during the fourth quarter of 2013. | |||||||
[3] | In the fourth quarter of 2014, Edison International has settled all open tax positions with the IRS for taxable year 2003 through 2006. |
Income Taxes (Interest and Pena
Income Taxes (Interest and Penalties Related to Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | |||
Accrued interest and penalties | $ 122 | $ 338 | |
Net after-tax interest and penalties tax benefit (expense) | 9 | 41 | $ (3) |
Southern California Edison | |||
Income Tax Disclosure [Line Items] | |||
Accrued interest and penalties | 40 | 64 | |
Net after-tax interest and penalties tax benefit (expense) | $ 14 | $ 16 | $ 2 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Line Items] | |||||
Loss Carryforwards | [1] | $ 1,136 | $ 1,136 | ||
Less valuation allowance | 32 | $ 32 | $ 29 | ||
Rate Base Offset Amortization Period | 27 years | ||||
Unrecognized tax benefits that would impact the effective tax rate | 440 | $ 440 | 503 | ||
Southern California Edison | |||||
Income Tax Disclosure [Line Items] | |||||
Loss Carryforwards | [1] | 39 | 39 | ||
Less valuation allowance | 0 | 0 | 0 | ||
Unrecognized tax benefits that would impact the effective tax rate | 256 | 256 | 370 | ||
Disallowance of Repair Allowance Deduction | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax liability | $ (133) | $ (89) | |||
Disallowance of Repair Allowance Deduction | Southern California Edison | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax liability | (382) | ||||
Deferred Tax Rate Base Offset | 324 | 324 | |||
Tax Years 2007 to 2009 | Disallowance of Repair Allowance Deduction | Southern California Edison | IRS Examination | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax liability | 64 | ||||
Tax Years 2010 to 2012, Federal | IRS Examination | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax liability | 94 | ||||
Tax Years 2010 to 2012, Federal | Disallowance of Repair Allowance Deduction | Southern California Edison | IRS Examination | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax liability | 9 | ||||
Tax Years 2010 to 2012, State | IRS Examination | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax liability | 100 | ||||
Stock Compensation Plan | |||||
Income Tax Disclosure [Line Items] | |||||
Loss Carryforwards | 42 | 42 | |||
Stock Compensation Plan | Southern California Edison | |||||
Income Tax Disclosure [Line Items] | |||||
Loss Carryforwards | $ 6 | $ 6 | |||
[1] | Deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $211 million and $100 million for Edison International and SCE, respectively. |
Compensation and Benefit Plan74
Compensation and Benefit Plans (Employee Savings Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 73 | $ 71 | $ 76 |
Southern California Edison | |||
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 72 | $ 70 | $ 76 |
Compensation and Benefit Plan75
Compensation and Benefit Plans (Plan Assets and Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | |
Change in projected benefit obligation | ||||
Actuarial (gain) loss | $ 374 | |||
Amounts recognized in the consolidated balance sheets consist of1: | ||||
Long-term liabilities | $ (1,759) | (2,155) | ||
Weighted-average assumptions used to determine obligations at end of year: | ||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | 0 | (3) | ||
Southern California Edison | ||||
Change in projected benefit obligation | ||||
Actuarial (gain) loss | 357 | |||
Amounts recognized in the consolidated balance sheets consist of1: | ||||
Long-term liabilities | (1,284) | (1,672) | ||
Pension Plans | ||||
Change in projected benefit obligation | ||||
Benefit obligation at beginning of year | 4,517 | 4,178 | ||
Service cost | 142 | 133 | ||
Interest cost | 170 | 181 | ||
Actuarial (gain) loss | (149) | 469 | ||
Curtailment gain | 0 | (5) | ||
Benefits paid | (305) | (449) | ||
Other | (1) | 10 | ||
Benefit obligation at beginning of year | 4,374 | 4,517 | $ 4,178 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 3,454 | 3,477 | ||
Actual return on plan assets | 30 | 257 | ||
Employer contributions | 119 | 169 | ||
Benefits paid | (305) | (449) | ||
Fair value of plan assets at end of year | 3,298 | 3,454 | $ 3,477 | |
Funded status at end of year | (1,076) | (1,063) | ||
Amounts recognized in the consolidated balance sheets consist of1: | ||||
Current liabilities | (27) | (27) | ||
Long-term liabilities | (1,049) | (1,036) | ||
Total liabilities | (1,076) | (1,063) | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Net loss1 | 96 | 102 | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Prior service cost | 15 | 20 | ||
Net loss | 660 | 640 | ||
Total amounts recognized as regulatory asset | 675 | 660 | ||
Total not yet recognized as expense | 771 | 762 | ||
Accumulated benefit obligation at end of year | 4,200 | 4,356 | ||
Pension plans with an accumulated benefit obligation in excess of plan assets: | ||||
Projected benefit obligation | 4,374 | 4,517 | ||
Accumulated benefit obligation | 4,200 | 4,356 | ||
Fair value of plan assets | $ 3,298 | $ 3,454 | ||
Weighted-average assumptions used to determine obligations at end of year: | ||||
Discount rate | 4.18% | 3.85% | 4.75% | 4.00% |
Rate of compensation increase | 4.00% | 4.00% | ||
Pension Plans | Southern California Edison | ||||
Change in projected benefit obligation | ||||
Benefit obligation at beginning of year | $ 3,999 | $ 3,721 | ||
Service cost | 133 | 124 | ||
Interest cost | 150 | 159 | ||
Actuarial (gain) loss | (143) | 386 | ||
Curtailment gain | 0 | 0 | ||
Benefits paid | (261) | (391) | ||
Other | 0 | 0 | ||
Benefit obligation at beginning of year | 3,878 | 3,999 | $ 3,721 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 3,217 | 3,236 | ||
Actual return on plan assets | 27 | 240 | ||
Employer contributions | 97 | 132 | ||
Benefits paid | (261) | (391) | ||
Fair value of plan assets at end of year | 3,080 | 3,217 | 3,236 | |
Funded status at end of year | (798) | (782) | ||
Amounts recognized in the consolidated balance sheets consist of1: | ||||
Current liabilities | (4) | (5) | ||
Long-term liabilities | (794) | (777) | ||
Total liabilities | (798) | (782) | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Net loss1 | 27 | 31 | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Prior service cost | 15 | 20 | ||
Net loss | 660 | 640 | ||
Total amounts recognized as regulatory asset | 675 | 660 | ||
Total not yet recognized as expense | 702 | 691 | ||
Accumulated benefit obligation at end of year | 3,744 | 3,881 | ||
Pension plans with an accumulated benefit obligation in excess of plan assets: | ||||
Projected benefit obligation | 3,878 | 3,999 | ||
Accumulated benefit obligation | 3,744 | 3,881 | ||
Fair value of plan assets | $ 3,080 | $ 3,217 | ||
Weighted-average assumptions used to determine obligations at end of year: | ||||
Discount rate | 4.18% | 3.85% | ||
Rate of compensation increase | 4.00% | 4.00% | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | $ 18 | $ 22 | ||
Postretirement Benefits Other Than Pensions | ||||
Change in projected benefit obligation | ||||
Benefit obligation at beginning of year | 2,784 | 2,220 | ||
Service cost | 46 | 40 | 49 | |
Interest cost | 102 | 117 | 98 | |
Special termination benefits | (2) | 3 | ||
Actuarial (gain) loss | (500) | 582 | ||
Plan participants' contributions | 20 | 19 | ||
Benefits paid | (100) | (197) | ||
Benefit obligation at beginning of year | 2,350 | 2,784 | 2,220 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 2,086 | 2,065 | ||
Actual return on plan assets | 6 | 180 | ||
Employer contributions | 24 | 19 | ||
Plan participants' contributions | 20 | 19 | ||
Benefits paid | (100) | (197) | ||
Fair value of plan assets at end of year | 2,036 | 2,086 | 2,065 | |
Funded status at end of year | (314) | (698) | ||
Amounts recognized in the consolidated balance sheets consist of1: | ||||
Current liabilities | (15) | (15) | ||
Long-term liabilities | (299) | (683) | ||
Total liabilities | (314) | (698) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | 4 | 4 | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Prior service cost | (9) | (19) | ||
Net loss | 183 | 577 | ||
Total amounts recognized as regulatory asset | 174 | 558 | ||
Total not yet recognized as expense | $ 178 | $ 562 | ||
Weighted-average assumptions used to determine obligations at end of year: | ||||
Discount rate | 4.55% | 4.16% | ||
Rate assumed for following year | 7.50% | 7.75% | ||
Ultimate rate | 5.00% | 5.00% | ||
Year ultimate rate reached | 2,022 | 2,021 | ||
Postretirement Benefits Other Than Pensions | Southern California Edison | ||||
Change in projected benefit obligation | ||||
Benefit obligation at beginning of year | $ 2,775 | $ 2,211 | ||
Service cost | 46 | 40 | 48 | |
Interest cost | 102 | 117 | 97 | |
Special termination benefits | (2) | 3 | ||
Actuarial (gain) loss | (500) | 582 | ||
Plan participants' contributions | 20 | 19 | ||
Benefits paid | (100) | (197) | ||
Benefit obligation at beginning of year | 2,341 | 2,775 | 2,211 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 2,086 | 2,065 | ||
Actual return on plan assets | 6 | 180 | ||
Employer contributions | 24 | 19 | ||
Plan participants' contributions | 20 | 19 | ||
Benefits paid | (100) | (197) | ||
Fair value of plan assets at end of year | 2,036 | 2,086 | $ 2,065 | |
Funded status at end of year | (305) | (689) | ||
Amounts recognized in the consolidated balance sheets consist of1: | ||||
Current liabilities | (15) | (15) | ||
Long-term liabilities | (290) | (674) | ||
Total liabilities | (305) | (689) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | 0 | 0 | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Prior service cost | (9) | (19) | ||
Net loss | 183 | 577 | ||
Total amounts recognized as regulatory asset | 174 | 558 | ||
Total not yet recognized as expense | $ 174 | $ 558 | ||
Weighted-average assumptions used to determine obligations at end of year: | ||||
Discount rate | 4.55% | 4.16% | ||
Rate assumed for following year | 7.50% | 7.75% | ||
Ultimate rate | 5.00% | 5.00% | ||
Year ultimate rate reached | 2,022 | 2,021 | ||
Edison International | Postretirement Benefits Other Than Pensions | ||||
Weighted-average assumptions used to determine obligations at end of year: | ||||
Long-term payable | $ 123 | $ 121 |
Compensation and Benefit Plan76
Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | $ 0 | $ 3 | ||
Other | 0 | 2 | ||
Postretirement Benefits Other Than Pensions | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 46 | 40 | $ 49 | |
Interest cost | 102 | 117 | 98 | |
Expected return on plan assets | (116) | (108) | (114) | |
Special termination benefits | [1] | (1) | (3) | (11) |
Amortization of prior service cost | (12) | (36) | (36) | |
Amortization of net loss | 3 | 6 | 24 | |
Expense under accounting standards | 24 | 22 | 32 | |
Pension Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 142 | 133 | ||
Interest cost | 170 | 181 | ||
Other | 14 | 9 | ||
Southern California Edison | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Other | 0 | 2 | ||
Southern California Edison | Postretirement Benefits Other Than Pensions | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 46 | 40 | 48 | |
Interest cost | 102 | 117 | 97 | |
Expected return on plan assets | (116) | (108) | (114) | |
Special termination benefits | [1] | (1) | (3) | (11) |
Amortization of prior service cost | (12) | (35) | (35) | |
Amortization of net loss | 2 | 5 | 24 | |
Expense under accounting standards | 23 | 22 | 31 | |
Southern California Edison | Pension Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 133 | 124 | ||
Interest cost | 150 | 159 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | (18) | (22) | ||
Other | (8) | (4) | ||
Continuing Operations | Pension Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 142 | 133 | 162 | |
Interest cost | 170 | 181 | 170 | |
Expected return on plan assets | (233) | (229) | (222) | |
Settlement costs | [2] | 0 | 45 | 87 |
Curtailment gain | 0 | (4) | 0 | |
Amortization of prior service cost | 5 | 5 | 5 | |
Amortization of net loss | [3] | 40 | 12 | 39 |
Expense under accounting standards | 124 | 143 | 241 | |
Regulatory adjustment (deferred) | (6) | 8 | (53) | |
Total expense recognized | 118 | 151 | 188 | |
Continuing Operations | Southern California Edison | Pension Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 139 | 128 | 159 | |
Interest cost | 155 | 164 | 167 | |
Expected return on plan assets | (217) | (213) | (222) | |
Settlement costs | [2] | 0 | 42 | 85 |
Curtailment gain | 0 | 0 | 0 | |
Amortization of prior service cost | 5 | 5 | 5 | |
Amortization of net loss | [3] | 35 | 7 | 35 |
Expense under accounting standards | 117 | 133 | 229 | |
Regulatory adjustment (deferred) | (6) | 8 | (53) | |
Total expense recognized | $ 111 | $ 141 | $ 176 | |
[1] | Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage. | |||
[2] | Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was zero for the year ended December 31, 2015 and $3 million for the year ended December 31, 2014. | |||
[3] | Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $14 million and $8 million, respectively, for the year ended December 31, 2015. The amount reclassified for Edison International and SCE was $9 million and $4 million, respectively, for the year ended December 31, 2014. |
Compensation and Benefit Plan77
Compensation and Benefit Plans (Changes in Plan Assets and Benefits Obligations Recognized in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Postretirement Benefits Other Than Pensions | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Unrecognized prior service cost to be amortized | $ (3) | |||
Pension Plans | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Net loss (gain) | 7 | $ 85 | $ (33) | |
Amortization of net loss and other | (15) | (13) | (13) | |
Total recognized in other comprehensive loss | (8) | 72 | (46) | |
Total recognized in expense and other comprehensive loss | 110 | 223 | 142 | |
Unrecognized net loss to be amortized | [1] | 36 | ||
Unrecognized prior service cost to be amortized | 4 | |||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 11 | |||
Southern California Edison | Postretirement Benefits Other Than Pensions | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Unrecognized prior service cost to be amortized | (3) | |||
Southern California Edison | Pension Plans | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Net loss (gain) | (9) | 37 | (24) | |
Amortization of net loss and other | (9) | (4) | (7) | |
Total recognized in other comprehensive loss | (18) | 33 | (31) | |
Total recognized in expense and other comprehensive loss | 93 | $ 174 | $ 145 | |
Unrecognized net loss to be amortized | [1] | 32 | ||
Unrecognized prior service cost to be amortized | 4 | |||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 6 | |||
[1] | The amount of net loss expected to be reclassified from other comprehensive loss for Edison International's continuing operations and SCE is $11 million and $6 million, respectively. |
Compensation and Benefit Plan78
Compensation and Benefit Plans (Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Postretirement Benefits Other Than Pensions | |||
Assumed health care cost trend rates: | |||
Ultimate rate | 5.00% | 5.00% | |
Year ultimate rate reached | 2,022 | 2,021 | |
Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.85% | 4.50% | 4.13% |
Rate of compensation increase | 4.00% | 4.00% | 4.50% |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% |
Continuing Operations | Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.16% | 5.00% | 4.25% |
Expected long-term return on plan assets | 5.50% | 5.50% | 6.70% |
Assumed health care cost trend rates: | |||
Current year | 7.75% | 7.75% | 8.50% |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Year ultimate rate reached | 2,021 | 2,020 | 2,020 |
Compensation and Benefit Plan79
Compensation and Benefit Plans (Expected Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Year one | $ 311 |
Year two | 310 |
Year three | 314 |
Year four | 327 |
Year five | 327 |
Years six through ten | 1,590 |
Postretirement Benefits Other Than Pensions | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Year one | 101 |
Year two | 106 |
Year three | 111 |
Year four | 115 |
Year five | 119 |
Years six through ten | 649 |
Southern California Edison | Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Year one | 265 |
Year two | 270 |
Year three | 280 |
Year four | 286 |
Year five | 290 |
Years six through ten | 1,447 |
Southern California Edison | Postretirement Benefits Other Than Pensions | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Year one | 101 |
Year two | 106 |
Year three | 110 |
Year four | 114 |
Year five | 118 |
Years six through ten | $ 646 |
Compensation and Benefit Plan80
Compensation and Benefit Plans (Pension Plan Assets - Fair Value Levels) (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | $ 3,368 | $ 3,459 | ||
Receivables and payables, net | (70) | (5) | ||
Fair Value of Plan Assets | 3,298 | 3,454 | $ 3,477 | |
Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 971 | 984 | ||
Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 2,183 | 2,186 | ||
Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 214 | 289 | ||
Fair Value of Plan Assets | 214 | 289 | 390 | |
U.S. government and agency securities | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [1] | 425 | 469 | |
U.S. government and agency securities | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [1] | 127 | 140 | |
U.S. government and agency securities | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [1] | 298 | 329 | |
U.S. government and agency securities | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [1] | 0 | 0 | |
Corporate stocks | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [2] | 736 | 730 | |
Corporate stocks | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [2] | 720 | 716 | |
Corporate stocks | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [2] | 16 | 14 | |
Corporate stocks | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [2] | 0 | 0 | |
Corporate bonds | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [3] | 755 | 801 | |
Corporate bonds | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [3] | 0 | 0 | |
Corporate bonds | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [3] | 755 | 801 | |
Corporate bonds | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [3] | 0 | 0 | |
Common/collective funds | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [4] | 640 | 524 | |
Common/collective funds | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [4] | 0 | 0 | |
Common/collective funds | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [4] | 640 | 524 | |
Common/collective funds | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [4] | 0 | 0 | |
Partnerships/joint ventures | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [5] | 325 | 399 | |
Partnerships/joint ventures | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [5] | 0 | 0 | |
Partnerships/joint ventures | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [5] | 111 | 110 | |
Partnerships/joint ventures | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [5] | 214 | 289 | |
Other investment entities | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [6] | 263 | 278 | |
Other investment entities | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [6] | 0 | 0 | |
Other investment entities | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [6] | 263 | 278 | |
Other investment entities | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [6] | 0 | 0 | |
Registered investment companies | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [7] | 121 | 143 | |
Registered investment companies | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [7] | 117 | 113 | |
Registered investment companies | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [7] | 4 | 30 | |
Registered investment companies | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | [7] | 0 | 0 | |
Interest-bearing cash | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 6 | 10 | ||
Interest-bearing cash | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 6 | 10 | ||
Interest-bearing cash | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 0 | 0 | ||
Interest-bearing cash | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 0 | 0 | ||
Other | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 97 | 105 | ||
Other | Level 1 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 1 | 5 | ||
Other | Level 2 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | 96 | 100 | ||
Other | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | $ 0 | $ 0 | ||
Asset backed securities including distressed mortgages | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Actual plan asset allocations, percentage | 22.00% | 55.00% | ||
Non-index fund | ||||
Pension and Other Postretirement Benefits | ||||
Performance percentage benchmark, percentage | 22.00% | 27.00% | ||
Collateralized mortgage obligations and other asset backed securities | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets, Gross | $ 123 | $ 102 | ||
Defined Benefit Plan, Fair Value of Plan Assets below Investment Grade | $ 25 | $ 15 | ||
Private Equity Funds Including Branded Consumer Products, Clean Technology and California Geographic Focus Companies | Level 3 | ||||
Pension and Other Postretirement Benefits | ||||
Actual plan asset allocations, percentage | 78.00% | 45.00% | ||
Russell 200 and Russell 1000 indexes | Corporate stocks | ||||
Pension and Other Postretirement Benefits | ||||
Performance percentage benchmark, percentage | 59.00% | |||
Russell 200 and Russell 1000 indexes | Undervalued Securities | ||||
Pension and Other Postretirement Benefits | ||||
Performance percentage benchmark, percentage | 14.00% | 18.00% | ||
Morgan Stanley Capital International | Corporate stocks | ||||
Pension and Other Postretirement Benefits | ||||
Performance percentage benchmark, percentage | 41.00% | |||
Standard And Poors 500 Index | Equity index fund | ||||
Pension and Other Postretirement Benefits | ||||
Performance percentage benchmark, percentage | 46.00% | 32.00% | ||
Morgan Stanley Capital International Europe Australasia And Far East Index | Equity index fund | ||||
Pension and Other Postretirement Benefits | ||||
Performance percentage benchmark, percentage | 16.00% | 20.00% | ||
Southern California Edison | ||||
Pension and Other Postretirement Benefits | ||||
Fair Value of Plan Assets | $ 3,080 | $ 3,217 | $ 3,236 | |
[1] | Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. | |||
[2] | Corporate stocks are diversified. For both 2015 and 2014, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (59%) and Morgan Stanley Capital International (MSCI) index (41%). | |||
[3] | Corporate bonds are diversified. At December 31, 2015 and 2014, respectively, this category includes $123 million and $102 million for collateralized mortgage obligations and other asset backed securities of which $25 million and $15 million are below investment grade. | |||
[4] | At December 31, 2015 and 2014, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's (S&P 500) Index (46% and 32%), Russell 1000 indexes (14% and 18%) and the MSCI Europe, Australasia and Far East (EAFE) Index (16% and 20%). A non-index U.S. equity fund representing 22% and 27% of this category for 2015 and 2014, respectively, is actively managed. | |||
[5] | Partnerships/joint venture Level 2 investments consist primarily of a partnership which invests in publicly traded fixed income securities. At December 31, 2015 and 2014, respectively, 22% and 55% of the Level 3 partnerships are invested in (1) asset backed securities, including distressed mortgages and (2) commercial and residential loans and debt and equity of banks. At December 31, 2015 and 2014, respectively, 78% and 45% of the Level 3 partnerships are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies. | |||
[6] | Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities. | |||
[7] | Level 1 of registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. Level 2 primarily consisted of a short-term bond fund. |
Compensation and Benefit Plan81
Compensation and Benefit Plans (Effect of Change in One Percent) (Details) - Postretirement Benefits Other Than Pensions $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect on ABO of one-percentage-point increase in assumed health care cost trend rate | $ 251 |
Effect on ABO of one-percentage-point decrease in assumed health care cost trend rate | (206) |
Effect on annual aggregate service and interest costs of one-percentage-point increase in assumed health care cost trend rate | 12 |
Effect on annual aggregate service and interest costs of one-percentage-point decrease in assumed health care cost trend rate | (9) |
Southern California Edison | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect on ABO of one-percentage-point increase in assumed health care cost trend rate | 250 |
Effect on ABO of one-percentage-point decrease in assumed health care cost trend rate | (205) |
Effect on annual aggregate service and interest costs of one-percentage-point increase in assumed health care cost trend rate | 12 |
Effect on annual aggregate service and interest costs of one-percentage-point decrease in assumed health care cost trend rate | $ (9) |
Compensation and Benefit Plan82
Compensation and Benefit Plans (Plan Assets - Changes in Level 3 Fair Value) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | $ 3,454 | $ 3,477 |
Actual return on plan assets: | ||
Fair value of plan assets at end of year | 3,298 | 3,454 |
Pension Plans | Level 3 | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 289 | 390 |
Actual return on plan assets: | ||
Relating to assets still held at end of period | 47 | 114 |
Relating to assets sold during the period | (17) | (44) |
Purchases | 38 | 13 |
Dispositions | (143) | (184) |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 214 | 289 |
Postretirement Benefits Other Than Pensions | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 2,086 | 2,065 |
Actual return on plan assets: | ||
Fair value of plan assets at end of year | 2,036 | 2,086 |
Postretirement Benefits Other Than Pensions | Level 3 | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 105 | 164 |
Actual return on plan assets: | ||
Relating to assets still held at end of period | (6) | 18 |
Relating to assets sold during the period | 15 | (1) |
Purchases | 7 | 9 |
Dispositions | (47) | (85) |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 74 | $ 105 |
Compensation and Benefit Plan83
Compensation and Benefit Plans (Other Postretirement Plan Assets - Fair Value Levels) (Details) - Postretirement Benefits Other Than Pensions - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets | $ 2,036 | $ 2,086 | $ 2,065 | |
Undervalued Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target asset allocation percentage of US equity securities | 17.00% | |||
Collateralized mortgage obligations and other asset backed securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Receivables and payables, net | $ 27 | 31 | ||
Municipal Notes | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | $ 97 | 111 | ||
Russell 200 and Russell 1000 indexes | Corporate stocks | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Performance percentage benchmark, percentage | 47.00% | |||
Russell 1000 index | Common or collective equity funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Performance percentage benchmark, percentage | 38.00% | |||
Morgan Stanley Capital International Europe Australasia And Far East Index | Equity index fund | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Performance percentage benchmark, percentage | 41.00% | |||
MSCI All Country World Index | Corporate stocks | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Performance percentage benchmark, percentage | 53.00% | |||
Level 3 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets | $ 74 | $ 105 | 164 | |
Level 3 | Asset backed securities including distressed mortgages | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Actual plan asset allocations, percentage | 29.00% | 50.00% | ||
Level 3 | Private Equity Funds Including Branded Consumer Products, Clean Technology and California Geographic Focus Companies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Actual plan asset allocations, percentage | 71.00% | 50.00% | ||
Southern California Edison | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | $ 2,060 | $ 2,159 | ||
Receivables and payables, net | (24) | (73) | ||
Fair Value of Plan Assets | 2,036 | 2,086 | $ 2,065 | |
Southern California Edison | Common/collective funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [1] | 424 | 431 | |
Southern California Edison | Corporate stocks | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [2] | 222 | 250 | |
Southern California Edison | Corporate notes and bonds securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [3] | 867 | 883 | |
Southern California Edison | Partnerships/joint ventures | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [4] | 93 | 124 | |
Southern California Edison | U.S. government and agency securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [5] | 242 | 243 | |
Southern California Edison | Registered investment companies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [6] | 63 | 69 | |
Southern California Edison | Interest bearing cash | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 31 | 29 | ||
Southern California Edison | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [7] | 118 | 130 | |
Southern California Edison | Level 1 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 518 | 555 | ||
Southern California Edison | Level 1 | Common/collective funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [1] | 0 | 0 | |
Southern California Edison | Level 1 | Corporate stocks | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [2] | 222 | 250 | |
Southern California Edison | Level 1 | Corporate notes and bonds securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [3] | 0 | 0 | |
Southern California Edison | Level 1 | Partnerships/joint ventures | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [4] | 0 | 0 | |
Southern California Edison | Level 1 | U.S. government and agency securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [5] | 200 | 207 | |
Southern California Edison | Level 1 | Registered investment companies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [6] | 60 | 64 | |
Southern California Edison | Level 1 | Interest bearing cash | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 31 | 29 | ||
Southern California Edison | Level 1 | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [7] | 5 | 5 | |
Southern California Edison | Level 2 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 1,469 | 1,499 | ||
Southern California Edison | Level 2 | Common/collective funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [1] | 424 | 431 | |
Southern California Edison | Level 2 | Corporate stocks | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [2] | 0 | 0 | |
Southern California Edison | Level 2 | Corporate notes and bonds securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [3] | 867 | 883 | |
Southern California Edison | Level 2 | Partnerships/joint ventures | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [4] | 20 | 19 | |
Southern California Edison | Level 2 | U.S. government and agency securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [5] | 42 | 36 | |
Southern California Edison | Level 2 | Registered investment companies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [6] | 3 | 5 | |
Southern California Edison | Level 2 | Interest bearing cash | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 0 | 0 | ||
Southern California Edison | Level 2 | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [7] | 113 | 125 | |
Southern California Edison | Level 3 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 73 | 105 | ||
Southern California Edison | Level 3 | Common/collective funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [1] | 0 | 0 | |
Southern California Edison | Level 3 | Corporate stocks | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [2] | 0 | 0 | |
Southern California Edison | Level 3 | Corporate notes and bonds securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [3] | 0 | 0 | |
Southern California Edison | Level 3 | Partnerships/joint ventures | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [4] | 73 | 105 | |
Southern California Edison | Level 3 | U.S. government and agency securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [5] | 0 | 0 | |
Southern California Edison | Level 3 | Registered investment companies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [6] | 0 | 0 | |
Southern California Edison | Level 3 | Interest bearing cash | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | 0 | 0 | ||
Southern California Edison | Level 3 | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair Value of Plan Assets, Gross | [7] | $ 0 | $ 0 | |
[1] | At both December 31, 2015 and 2014, 38% of the common/collective assets are invested in a large cap index fund which seeks to track performance of the Russell 1000 index. 41% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and MSCI Europe, Australasia and Far East (EAFE) Index. 17% in a non-index U.S. equity fund which is actively managed. | |||
[2] | Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (47%) and the MSCI All Country World Index (53%) for both 2015 and 2014. | |||
[3] | Corporate notes and bonds are diversified and include approximately $27 million and $31 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2015 and 2014, respectively. | |||
[4] | At December 31, 2015 and 2014, respectively, 29% and 50% of the Level 3 partnerships category is invested in (1) asset backed securities including distressed mortgages, (2) distressed companies and (3) commercial and residential loans and debt and equity of banks. At December 31, 2015 and 2014, respectively, 71% and 50% of the Level 3 partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. | |||
[5] | Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. | |||
[6] | Level 1 registered investment companies consist of a money market fund. | |||
[7] | Other includes $97 million and $111 million of municipal securities at December 31, 2015 and 2014, respectively. |
Compensation and Benefit Plan84
Compensation and Benefit Plans (Expense and Tax Benefits of Stock Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 29 | $ 40 | $ 27 | |
Income tax benefits related to stock compensation expense | 12 | 16 | 11 | |
Excess tax benefits (expense) | [1] | 15 | 15 | 5 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 14 | 16 | 15 |
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 7 | 16 | 4 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 7 | 7 | 7 |
Other | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 1 | 1 | 1 |
Southern California Edison | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 16 | 20 | 17 | |
Income tax benefits related to stock compensation expense | 7 | 8 | 7 | |
Excess tax benefits (expense) | [1] | 23 | 20 | 2 |
Southern California Edison | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 8 | 8 | 11 |
Southern California Edison | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 4 | 8 | 2 |
Southern California Edison | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | 4 | 4 | 4 |
Southern California Edison | Other | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | [2] | $ 0 | $ 0 | $ 0 |
[1] | Reflected in "Settlements of stock-based compensation, net" in the financing section of Edison International's and SCE's consolidated statements of cash flows and in "Common stock" in Edison International's consolidated balance sheets and "Additional paid-in capital" in SCE's consolidated balance sheets. | |||
[2] | Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. |
Compensation and Benefit Plan85
Compensation and Benefit Plans (Black-Scholes Option Pricing Model Assumptions) (Details) - Employee Stock Option | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected terms (in years) | 5 years 10 months 24 days | 6 years | 6 years 2 months 12 days |
Risk-free interest rate, maximum | 2.10% | 2.10% | 2.10% |
Risk-free interest rate, minimum | 1.60% | 1.80% | 1.00% |
Weighted-average expected dividend yield | 2.60% | 2.70% | 2.80% |
Expected volatility, maximum | 17.00% | 19.10% | 18.60% |
Expected volatility, minimum | 16.40% | 17.80% | 17.70% |
Weighted-average volatility | 16.50% | 18.90% | 17.70% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected dividend yield, maximum | 3.20% | 2.70% | 3.10% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected dividend yield, maximum | 2.60% | 2.40% | 2.70% |
Compensation and Benefit Plan86
Compensation and Benefit Plans (Stock Option Activity) (Details) - Employee Stock Option $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Stock options | |
Beginning balance (number of options) | shares | 13,618,735 |
Grants (number of options) | shares | 2,030,342 |
Expired (number of options) | shares | 0 |
Forfeited (number of options) | shares | (171,107) |
Exercised (number of options) | shares | (2,611,373) |
Ending balance (number of options) | shares | 12,866,597 |
Vested and expected to vest (number of options) | shares | 12,762,577 |
Exercisable (number of options) | shares | 8,928,807 |
Exercise Price | |
Beginning balance, weighted average exercise price (dollars per share) | $ / shares | $ 42.84 |
Granted, weighted average exercise price (dollars per share) | $ / shares | 63.57 |
Expired, weighted average exercise price (dollars per share) | $ / shares | 0 |
Forfeited, weighted average exercise price (dollars per share) | $ / shares | 51.87 |
Exercised, weighted average exercise price (dollars per share) | $ / shares | 43.14 |
Ending balance, weighted average exercise price (dollars per share) | $ / shares | 45.93 |
Vested and expected to vest, weighted average exercise price (dollars per share) | $ / shares | 45.81 |
Exercisable, weighted average exercise price (dollars per share) | $ / shares | $ 40.79 |
Remaining Contractual Term (Years) | |
Outstanding at December 31, 2015 | 5 years 10 months 2 days |
Vested and expected to vest at December 31, 2015 | 5 years 9 months 26 days |
Exercisable at December 31, 2015 | 4 years 8 months 23 days |
Aggregate Intrinsic Value (in millions) | |
Vested and expected to vest at December 31, 2015 | $ | $ 180 |
Exercisable at December 31, 2015 | $ | $ 165 |
Southern California Edison | |
Stock options | |
Beginning balance (number of options) | shares | 6,002,160 |
Grants (number of options) | shares | 1,099,566 |
Expired (number of options) | shares | 0 |
Forfeited (number of options) | shares | (109,719) |
Exercised (number of options) | shares | (1,085,438) |
Transfers, net (number of options) | shares | (66,512) |
Ending balance (number of options) | shares | 5,840,057 |
Vested and expected to vest (number of options) | shares | 5,771,064 |
Exercisable (number of options) | shares | 3,751,272 |
Exercise Price | |
Beginning balance, weighted average exercise price (dollars per share) | $ / shares | $ 43.82 |
Granted, weighted average exercise price (dollars per share) | $ / shares | 63.52 |
Expired, weighted average exercise price (dollars per share) | $ / shares | 0 |
Forfeited, weighted average exercise price (dollars per share) | $ / shares | 53.45 |
Exercised, weighted average exercise price (dollars per share) | $ / shares | 41.74 |
Transfers, net, weighted average exercise price (dollars per share) | $ / shares | 40.88 |
Ending balance, weighted average exercise price (dollars per share) | $ / shares | 47.77 |
Vested and expected to vest, weighted average exercise price (dollars per share) | $ / shares | 47.62 |
Exercisable, weighted average exercise price (dollars per share) | $ / shares | $ 42.17 |
Remaining Contractual Term (Years) | |
Outstanding at December 31, 2015 | 6 years 2 months 12 days |
Vested and expected to vest at December 31, 2015 | 6 years 2 months 1 day |
Exercisable at December 31, 2015 | 4 years 11 months 27 days |
Aggregate Intrinsic Value (in millions) | |
Vested and expected to vest at December 31, 2015 | $ | $ 72 |
Exercisable at December 31, 2015 | $ | $ 64 |
Compensation and Benefit Plan87
Compensation and Benefit Plans (Unrecognized Compensation Costs) (Details) - Employee Stock Option $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures | $ 13 |
Weighed-average period (in years) | 2 years 3 months 18 days |
Southern California Edison | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures | $ 9 |
Weighed-average period (in years) | 2 years 4 months 24 days |
Compensation and Benefit Plan88
Compensation and Benefit Plans (Supplemental Data on Stock Options) (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per option granted (dollars per share) | $ 7.54 | $ 7.26 | $ 5.40 |
Fair value of options vested | $ 20 | $ 17 | $ 17 |
Cash used to purchase shares to settle options | 170 | 300 | 199 |
Cash from participants to exercise stock options | 113 | 205 | 140 |
Value of options exercised | 57 | 95 | 59 |
Tax benefits from options exercised | $ 23 | $ 39 | $ 24 |
Southern California Edison | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per option granted (dollars per share) | $ 7.53 | $ 7.34 | $ 5.38 |
Fair value of options vested | $ 11 | $ 9 | $ 10 |
Cash used to purchase shares to settle options | 69 | 181 | 130 |
Cash from participants to exercise stock options | 45 | 125 | 92 |
Value of options exercised | 24 | 56 | 38 |
Tax benefits from options exercised | $ 10 | $ 23 | $ 15 |
Compensation and Benefit Plan89
Compensation and Benefit Plans (Nonvested Performance Share Activity) (Details) | 12 Months Ended | |
Dec. 31, 2015$ / sharesshares | ||
Performance Shares Classified As Equity Awards | ||
Restricted Stock Units | ||
Beginning balance (number of shares) | 128,300 | |
Granted (number of shares) | 0 | |
Forfeited (number of shares) | (4,035) | |
Vested (number of shares) | (66,486) | [1] |
Ending balance (number of shares) | 57,779 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 55.66 | |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | 0 | |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | 55.93 | |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 50.85 | [1] |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 61.18 | |
Performance Shares Classified As Liability Awards | ||
Restricted Stock Units | ||
Beginning balance (number of shares) | 127,975 | |
Granted (number of shares) | 109,154 | |
Forfeited (number of shares) | (5,183) | |
Vested (number of shares) | (66,317) | [1] |
Ending balance (number of shares) | 165,629 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 92.92 | |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 68.44 | |
Southern California Edison | Performance Shares Classified As Equity Awards | ||
Restricted Stock Units | ||
Beginning balance (number of shares) | 71,797 | |
Granted (number of shares) | 0 | |
Forfeited (number of shares) | (1,717) | |
Vested (number of shares) | (36,891) | [1] |
Affiliate transfers, net (number of shares) | (726) | |
Ending balance (number of shares) | 32,463 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 56.06 | |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | 0 | |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | 56.89 | |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 50.82 | [1] |
Affiliate transfers, net, weighted average grant date fair value (dollars per share) | $ / shares | 54.81 | |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 62.01 | |
Southern California Edison | Performance Shares Classified As Liability Awards | ||
Restricted Stock Units | ||
Beginning balance (number of shares) | 71,520 | |
Granted (number of shares) | 59,213 | |
Forfeited (number of shares) | (2,867) | |
Vested (number of shares) | (36,748) | [1] |
Affiliate transfers, net (number of shares) | (725) | |
Ending balance (number of shares) | 90,393 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 92.33 | |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 68.64 | |
[1] | 1 Relates to performance shares that will be paid in 2016 as performance targets were met at December 31, 2015 |
Compensation and Benefit Plan90
Compensation and Benefit Plans (Restricted Stock Unit Activity) (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Restricted Stock Units | |
Beginning balance (number of shares) | shares | 433,319 |
Granted (number of shares) | shares | 120,469 |
Forfeited (number of shares) | shares | (10,210) |
Vested (number of shares) | shares | (295,435) |
Affiliate transfers, net (number of shares) | shares | 0 |
Ending balance (number of shares) | shares | 248,143 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 47.89 |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | 63.57 |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | 52.09 |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 45.74 |
Affiliate transfers, net, weighted average grant date fair value (dollars per share) | $ / shares | 0 |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 57.89 |
Southern California Edison | |
Restricted Stock Units | |
Beginning balance (number of shares) | shares | 231,364 |
Granted (number of shares) | shares | 65,237 |
Forfeited (number of shares) | shares | (5,108) |
Vested (number of shares) | shares | (155,046) |
Affiliate transfers, net (number of shares) | shares | (2,072) |
Ending balance (number of shares) | shares | 134,375 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 48.26 |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | 63.52 |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | 54.04 |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 45.98 |
Affiliate transfers, net, weighted average grant date fair value (dollars per share) | $ / shares | 45.35 |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 58.13 |
Compensation and Benefit Plan91
Compensation and Benefit Plans (Workforce Reduction) (Details) - Employee Severance - Southern California Edison - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Balance at January 1, 2015 | $ 35 | |
Additions | 26 | |
Payments | (39) | |
Balance at December 31, 2015 | $ 35 | $ 22 |
Compensation and Benefit Plan92
Compensation and Benefit Plans (Textual) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | $ 0 | $ (3) | ||
Actuarial gain (loss) | $ (374) | |||
Percentage of Premium Included in Estimated Rate of Return of Equity Securities | 5.00% | |||
Percentage of Premium Included in Estimated Rate of Return of Public Equity and Hedge Funds | 2.00% | |||
Performance incentive plan award, shares | 49.5 | |||
Share-based compensation, shares available for grant | 18 | |||
Employee Stock Option | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Stock options, expiration period, years | 10 years | |||
Stock options, vesting period, years | 4 years | |||
Period of Historical Volatility Used to Compute Expected Volatility | 71 months | 72 months | 74 months | |
Performance shares | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Stock options, vesting period, years | 3 years | |||
Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | $ (96) | $ (102) | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 123 | |||
Actuarial gain (loss) | 149 | (469) | ||
Defined benefit obligation increase (decrease) during the period | $ (34) | $ 214 | ||
Discount rate, percent | 4.18% | 3.85% | 4.75% | 4.00% |
Permissible range of asset class weights, percent | 3.00% | |||
Allocation of publicly traded equity investments, percent | 63.00% | 65.00% | ||
Pension Plans | Non-US Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 17.00% | |||
Pension Plans | US Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 29.00% | |||
Pension Plans | Fixed Income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 35.00% | |||
Pension Plans | Opportunistic Alternative Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 15.00% | |||
Pension Plans | Other Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 4.00% | |||
Voluntary Employee Beneficiary Association (VEBA) | Non-US Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 5.00% | |||
Voluntary Employee Beneficiary Association (VEBA) | Fixed Income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 85.00% | |||
Voluntary Employee Beneficiary Association (VEBA) | Opportunistic Alternative Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 10.00% | |||
Postretirement Benefits Other Than Pensions | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 33 | |||
Actuarial gain (loss) | 500 | $ (582) | ||
Defined Benefit Plan, Experience Gain | 300 | |||
Defined Benefit Plan, Change in Discount Rate | 140 | |||
Defined benefit obligation increase (decrease) during the period | $ (62) | $ 308 | ||
Discount rate, percent | 4.55% | 4.16% | ||
Defined Benefit Plan, Eligibility Age | 55 years | |||
Defined Benefit Plan, Minimum Service Period for Eligibility | 10 years | |||
Allocation of publicly traded equity investments, percent | 71.00% | |||
Postretirement Benefits Other Than Pensions | Non-US Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 17.00% | |||
Postretirement Benefits Other Than Pensions | US Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 41.00% | |||
Postretirement Benefits Other Than Pensions | Fixed Income | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 34.00% | |||
Postretirement Benefits Other Than Pensions | Opportunistic Alternative Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 7.00% | |||
Postretirement Benefits Other Than Pensions | Other Investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target plan asset allocations, percent | 1.00% | |||
Southern California Edison | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Actuarial gain (loss) | $ (357) | |||
Southern California Edison | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | $ (27) | (31) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | 18 | 22 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 94 | |||
Actuarial gain (loss) | 143 | (386) | ||
Defined benefit obligation increase (decrease) during the period | $ (31) | $ 199 | ||
Discount rate, percent | 4.18% | 3.85% | ||
Southern California Edison | Postretirement Benefits Other Than Pensions | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Actuarial gain (loss) | $ 500 | $ (582) | ||
Defined benefit obligation increase (decrease) during the period | $ (61) | $ 307 | ||
Discount rate, percent | 4.55% | 4.16% |
Other Investments (Amortized Co
Other Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Nuclear Decommissioning Trusts Disclosures | |||||
Fair Value | $ 4,331 | $ 4,799 | |||
Southern California Edison | |||||
Nuclear Decommissioning Trusts Disclosures | |||||
Amortized Cost | 2,917 | 3,020 | |||
Fair Value | 4,331 | 4,799 | $ 4,494 | $ 4,048 | |
Southern California Edison | Stocks | |||||
Nuclear Decommissioning Trusts Disclosures | |||||
Amortized Cost | 304 | 524 | |||
Fair Value | $ 1,460 | 2,031 | |||
Southern California Edison | Municipal bonds | |||||
Nuclear Decommissioning Trusts Disclosures | |||||
Longest Maturity Dates (in years) | 2,054 | ||||
Amortized Cost | $ 691 | 681 | |||
Fair Value | $ 840 | 822 | |||
Southern California Edison | U.S. government and agency securities | |||||
Nuclear Decommissioning Trusts Disclosures | |||||
Longest Maturity Dates (in years) | 2,046 | ||||
Amortized Cost | $ 1,070 | 777 | |||
Fair Value | $ 1,128 | 836 | |||
Southern California Edison | Corporate bonds | |||||
Nuclear Decommissioning Trusts Disclosures | |||||
Longest Maturity Dates (in years) | 2,057 | ||||
Amortized Cost | $ 708 | 346 | |||
Fair Value | $ 755 | 395 | |||
Southern California Edison | Short-term investments and receivables/payables | |||||
Nuclear Decommissioning Trusts Disclosures | |||||
Longest Maturity Dates (in years) | [1] | One-year | |||
Amortized Cost | [1] | $ 144 | 692 | ||
Fair Value | [1] | $ 148 | $ 715 | ||
[1] | Short-term investments include $81 million and $164 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 5, 2016 and January 7, 2015 as of December 31, 2015 and 2014, respectively. |
Other Investments (Summary of C
Other Investments (Summary of Changes in Fair Value of the Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Changes In The Fair Value [Roll Forward] | |||
Balance at beginning of period | $ 4,799 | ||
Balance at end of period | 4,331 | $ 4,799 | |
Southern California Edison | |||
Summary Of Changes In The Fair Value [Roll Forward] | |||
Balance at beginning of period | 4,799 | 4,494 | $ 4,048 |
Gross realized gains | 326 | 197 | 300 |
Gross realized losses | (26) | (5) | (32) |
Unrealized (losses) gains | (364) | 75 | 160 |
Other-than-temporary impairments | (29) | (14) | (47) |
Interest, dividends and other | 115 | 118 | 113 |
Contributions | 54 | 5 | 22 |
Income taxes | (64) | (62) | (66) |
Decommissioning disbursements | (471) | (4) | 0 |
Administrative expenses and other | (9) | (5) | (4) |
Balance at end of period | $ 4,331 | $ 4,799 | $ 4,494 |
Other Investments (Textual) (De
Other Investments (Textual) (Details) $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)companies | Dec. 31, 2014USD ($) |
Southern California Edison | |||
Other Investments [Line Items] | |||
Repurchase agreements payable | $ 81 | $ 81 | $ 164 |
Unrealized holding gains, net of losses | 1,400 | 1,400 | $ 1,800 |
Deferred income taxes related to unrealized gains | 360 | 360 | |
Fair value, net of tax, in decommissioning trust fund | 4,000 | 4,000 | |
Reimbursed expenses from decommissioning trust fund | $ 471 | ||
Series of Individually Immaterial Business Acquisitions | |||
Other Investments [Line Items] | |||
Businesses acquired | companies | 3 | ||
Aggregate purchase price | 100 | ||
Maximum amount of contingent consideration | 50 | $ 50 | |
Contingent consideration earn out period | 4 years | ||
Goodwill and identifiable intangibles acquired | $ 90 | $ 90 |
Regulatory Assets and Liabili96
Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | Feb. 01, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Regulatory Assets | ||||
Regulatory Assets, Current | $ 560 | $ 1,254 | ||
Regulatory Asset, Long-term | 7,512 | 7,612 | ||
Regulatory Liabilities | ||||
Regulatory Liabilities, Current | 1,128 | 401 | ||
Regulatory Liabilities, Long-term | $ 5,676 | 5,889 | ||
Southern California Edison | ||||
Regulatory Assets and Liabilities | ||||
Regulatory assets, energy derivatives, low range of contract expiration (in years) | 2 years | |||
Regulatory assets, energy derivatives, high range of contract expiration (in years) | 45 years | |||
Regulatory assets related to deferred income taxes, recovery period, low range (in years) | 1 year | |||
Regulatory assets related to deferred income taxes, recovery period, high range (in years) | 60 years | |||
Low end of the range of remaining original amortization (in years) | 1 year | |||
High end of the range of remaining original amortization (in years) | 35 years | |||
Regulatory Assets | ||||
Regulatory Assets, Current | $ 560 | 1,254 | ||
Regulatory Asset, Long-term | 7,512 | 7,612 | ||
Total Regulatory Assets | 8,072 | 8,866 | ||
Regulatory Liabilities | ||||
Regulatory Liabilities, Current | 1,128 | 401 | ||
Regulatory Liabilities, Long-term | 5,676 | 5,889 | ||
Total Regulatory Liabilities | 6,804 | 6,290 | ||
Southern California Edison | FERC-Approved Settlement Agreements | ||||
Regulatory Liabilities | ||||
Litigation Settlement, Amount | 219 | |||
Litigation Settlement, Amount Subject to Shareholder Incentive | 15 | |||
Southern California Edison | Regulatory balancing accounts | ||||
Regulatory Assets | ||||
Regulatory Assets, Current | 382 | 1,088 | ||
Regulatory Asset, Long-term | 36 | 44 | ||
Southern California Edison | Pensions and other postretirement benefits | ||||
Regulatory Assets | ||||
Regulatory Asset, Long-term | 849 | 1,218 | ||
Southern California Edison | Environmental remediation | ||||
Regulatory Assets | ||||
Regulatory Asset, Long-term | 129 | 107 | ||
Southern California Edison | Energy derivatives | ||||
Regulatory Assets | ||||
Regulatory Assets, Current | 159 | 159 | ||
Regulatory Asset, Long-term | 1,027 | 850 | ||
Southern California Edison | Other | ||||
Regulatory Assets | ||||
Regulatory Assets, Current | 19 | 7 | ||
Regulatory Asset, Long-term | 288 | 244 | ||
Regulatory Liabilities | ||||
Regulatory Liabilities, Current | 22 | 21 | ||
Regulatory Liabilities, Long-term | 79 | 24 | ||
Southern California Edison | Deferred income taxes, net | ||||
Regulatory Assets | ||||
Regulatory Asset, Long-term | $ 3,757 | $ 3,405 | ||
Southern California Edison | Unamortized investments, net | ||||
Regulatory Assets and Liabilities | ||||
Return rate earned on assets included in rate base (as a percent) | 7.90% | 7.90% | ||
Regulatory Assets | ||||
Regulatory Asset, Long-term | $ 182 | $ 255 | ||
Southern California Edison | San Onofre | ||||
Regulatory Assets | ||||
Regulatory Asset, Long-term | 1,043 | 1,288 | ||
Southern California Edison | Unamortized loss on reacquired debt | ||||
Regulatory Assets | ||||
Regulatory Asset, Long-term | 201 | 201 | ||
Southern California Edison | Regulatory balancing accounts | ||||
Regulatory Liabilities | ||||
Regulatory Liabilities, Current | 1,106 | 380 | ||
Regulatory Liabilities, Long-term | 1,314 | 1,083 | ||
Southern California Edison | Costs of removal | ||||
Regulatory Liabilities | ||||
Regulatory Liabilities, Long-term | 2,781 | 2,826 | ||
Southern California Edison | Recoveries in excess of ARO liabilities1 | ||||
Regulatory Liabilities | ||||
Regulatory Liabilities, Long-term | [1] | $ 1,502 | $ 1,956 | |
Legacy Meters | Southern California Edison | Unamortized investments, net | ||||
Regulatory Assets and Liabilities | ||||
Return rate earned on assets included in rate base (as a percent) | 6.46% | 6.46% | ||
San Onofre | Southern California Edison | ||||
Regulatory Assets and Liabilities | ||||
Return rate earned on assets included in rate base (as a percent) | 2.62% | |||
Period for rate recovery | 10 years | |||
[1] | Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments (see Note 9). |
Regulatory Assets and Liabili97
Regulatory Assets and Liabilities (Regulatory Balancing Accounts) (Details) - Regulatory balancing accounts - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Energy resource recovery account | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | $ (439) | $ 1,028 |
New system generation balancing account | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (171) | 35 |
Public purpose programs and energy efficiency programs | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (683) | (874) |
Base rate recovery balancing account | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (319) | (5) |
Greenhouse gas auction revenue | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (75) | (182) |
FERC balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | 74 | (32) |
Tax accounting memorandum account and pole loading | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (248) | 0 |
Other | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (137) | (104) |
Liability | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | (2,002) | (331) |
Southern California Edison | Generator settlements | ||
Regulatory Assets and Liabilities | ||
Net Regulatory Assets Pertaining to Balancing Accounts | $ (4) | $ (197) |
Commitments and Contingencies98
Commitments and Contingencies (Undiscounted Future Minimum Expected Payments for Power Purchase Agreements) (Details) - Southern California Edison $ in Millions | Dec. 31, 2015USD ($) |
Renewable Energy Contracts | |
Power Purchase Agreements, Fiscal Year Maturity | |
2,016 | $ 1,234 |
2,017 | 1,417 |
2,018 | 1,472 |
2,019 | 1,562 |
2,020 | 1,605 |
Thereafter | 21,439 |
Total future commitments | 28,729 |
QF Power Purchase Agreements | |
Power Purchase Agreements, Fiscal Year Maturity | |
2,016 | 223 |
2,017 | 189 |
2,018 | 149 |
2,019 | 87 |
2,020 | 39 |
Thereafter | 69 |
Total future commitments | 756 |
Other Purchase Agreements | |
Power Purchase Agreements, Fiscal Year Maturity | |
2,016 | 741 |
2,017 | 758 |
2,018 | 589 |
2,019 | 503 |
2,020 | 459 |
Thereafter | 1,022 |
Total future commitments | 4,072 |
Signed contracts, not meeting critical contract provisions [Member] | |
Power Purchase Agreements, Fiscal Year Maturity | |
2,016 | 29 |
2,017 | 166 |
2,018 | 257 |
2,019 | 352 |
2,020 | 747 |
Thereafter | $ 16,429 |
Commitments and Contingencies99
Commitments and Contingencies (Power Purchase Agreement - Operating and Capital Leases) (Details) - Southern California Edison $ in Millions | Dec. 31, 2015USD ($) |
Operating Leases | |
Operating Leases | |
2,016 | $ 374 |
2,017 | 354 |
2,018 | 250 |
2,019 | 186 |
2,020 | 174 |
Thereafter | 1,745 |
Total future commitments | 3,083 |
Capital Leases | |
Capital Leases | |
2,016 | 1 |
2,017 | 1 |
2,018 | 2 |
2,019 | 2 |
2,020 | 2 |
Thereafter | 10 |
Total future commitments | 18 |
Amount representing executory costs | (7) |
Amount representing interest | (3) |
Net commitments | $ 8 |
Commitments and Contingencie100
Commitments and Contingencies (Other Lease Commitments) (Details) - Southern California Edison - Other Operating Leases $ in Millions | Dec. 31, 2015USD ($) |
Schedule Of Commitments And Contingencies [Line Items] | |
2,016 | $ 68 |
2,017 | 52 |
2,018 | 44 |
2,019 | 35 |
2,020 | 27 |
Thereafter | 271 |
Total future commitments | $ 497 |
Commitments and Contingencie101
Commitments and Contingencies (Other Commitments) (Details) - Southern California Edison - Other contractual obligations $ in Millions | Dec. 31, 2015USD ($) |
Other Commitments | |
2,016 | $ 181 |
2,017 | 140 |
2,018 | 101 |
2,019 | 56 |
2,020 | 59 |
Thereafter | 547 |
Total | $ 1,084 |
Commitments and Contingencie102
Commitments and Contingencies (Commitments Textual) (Details) - Southern California Edison $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)contractsagreements | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense | $ 80 | $ 96 | $ 78 |
Renewable Energy Contracts | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of Renewable Energy Contracts | contracts | 93 | ||
Signed contracts, due in next twelve months | $ 1,234 | ||
Signed contracts, due within two years | 1,417 | ||
Signed contracts, due within three years | 1,472 | ||
Signed contracts, due within four years | 1,562 | ||
Signed contracts, due within five years | 1,605 | ||
Signed contracts, due after five years | $ 21,439 | ||
Qualifying Facility Power Purchase Agreements | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Agreements with Number of Qualifying Small Power Production Facilities | contracts | 71 | ||
Signed contracts, due in next twelve months | $ 223 | ||
Signed contracts, due within two years | 189 | ||
Signed contracts, due within three years | 149 | ||
Signed contracts, due within four years | 87 | ||
Signed contracts, due within five years | 39 | ||
Signed contracts, due after five years | $ 69 | ||
Combined Heat and Power Contracts | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of Combined Heat and Power Contracts | agreements | 6 | ||
Other Power Purchase Agreements | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of Tolling Arrangements | agreements | 9 | ||
Number of Resource Adequacy Contracts | contracts | 11 | ||
Signed contracts, due in next twelve months | $ 741 | ||
Signed contracts, due within two years | 758 | ||
Signed contracts, due within three years | 589 | ||
Signed contracts, due within four years | 503 | ||
Signed contracts, due within five years | 459 | ||
Signed contracts, due after five years | 1,022 | ||
Signed contracts, not meeting critical contract provisions [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Signed contracts, due in next twelve months | 29 | ||
Signed contracts, due within two years | 166 | ||
Signed contracts, due within three years | 257 | ||
Signed contracts, due within four years | 352 | ||
Signed contracts, due within five years | 747 | ||
Signed contracts, due after five years | 16,429 | ||
Other Contractual Obligations | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Long Term Purchase Commitment Cost Incurred | 182 | 90 | 153 |
Other commitments due in next twelve months | 140 | ||
Other commitments due in third year | 101 | ||
Other commitments due in fourth year | 56 | ||
Other commitments due in fifth year | 59 | ||
Other commitments due after fifth year | 547 | ||
Other Contractual Obligations Not Meeting Critical Contract Provisions [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Other commitments due in next twelve months | 10 | ||
Other commitments due in third year | 98 | ||
Other commitments due in fourth year | 82 | ||
Other commitments due in fifth year | 79 | ||
Other commitments due after fifth year | 483 | ||
Operating Leases Purchase Power Contracts | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Net operating leases expense | 1,700 | 1,700 | 1,500 |
Contingent operating lease expense | 1,070 | 944 | $ 843 |
Capital Leases Power Contracts | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Capital Lease Power Purchase Agreement, Net | 8 | 203 | |
Capital lease accumulated depreciation | 2 | 46 | |
Capital Leases Future Minimum Payments, Present Value of Net Minimum Payments, Current | 1 | 7 | |
Capital Leases Future Minimum Payments, Present Value of Net Minimum Payments, Noncurrent | $ 7 | $ 196 |
Commitments and Contingencie103
Commitments and Contingencies (Contingencies Textual) (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)sitesinvoices | Oct. 31, 2015USD ($) | Aug. 31, 2015communication | Oct. 31, 2013USD ($) | Jun. 30, 2010USD ($) | Dec. 31, 2015USD ($)sitescommunicationinvoices | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Jun. 01, 2015USD ($) | Aug. 31, 2014USD ($) | Aug. 30, 2014USD ($) | |
Insurance Claims | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Federal Limit on Public Liability Claims from Nuclear Incident, Approximate | $ 13,500,000,000 | |||||||||||
San Onofre | Insurance Claims | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 433,000,000 | |||||||||||
Pre tax damages awarded to SCE | $ 400,000,000 | |||||||||||
Southern California Edison | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Loss Contingency, Damages Sought, Value | $ 112,000,000 | |||||||||||
Accrual for environmental loss contingencies (immaterial sites) | $ 3,000,000 | $ 3,000,000 | ||||||||||
Number of Material Sites Identified for Environmental Remediation | sites | 19 | 19 | ||||||||||
Minimum costs to be Identified Material Site | $ 1,000,000 | |||||||||||
Accrual for Environmental Loss Contingencies (material sites) | $ 131,000,000 | $ 131,000,000 | ||||||||||
Number of Immaterial Sites for Environmental Remediation | sites | 39 | |||||||||||
Accrued Environmental Loss Contingencies, Noncurrent | 134,000,000 | $ 134,000,000 | ||||||||||
Regulatory Assets, Noncurrent, Environmental Remediation | 129,000,000 | 129,000,000 | ||||||||||
Portion of Recorded Liability Recoverable From Incentive Mechanism | $ 47,000,000 | |||||||||||
Percentage of Environmental Remediation Costs Recoverable From Incentive Mechanism | 90.00% | |||||||||||
Recorded Liability Incurred at Majority of Remaining Sites Through Customer Rates | 82,000,000 | $ 82,000,000 | ||||||||||
Percentage of Environmental Remediation Costs to be Recovered | 100.00% | |||||||||||
Amount that Cleanup Costs for Identified Material Sites Could Exceed Recorded Liability | $ 164,000,000 | |||||||||||
Amount that Cleanup Costs for Immaterial Sites Could Exceed Recorded Liability | $ 8,000,000 | |||||||||||
Maximum Expected Period for Clean Up of Identified Sites | 30 years | |||||||||||
Expected Annual Environmental Remediation Costs, Period for Cost Estimates | 5 years | |||||||||||
Expected Annual Environmental Remediation Costs, Low End of Range | $ 7,000,000 | |||||||||||
Expected Annual Environmental Remediation Costs, High End of Range | 26,000,000 | |||||||||||
Environmental Remediation Expense | 5,000,000 | $ 4,000,000 | $ 8,000,000 | |||||||||
Insurance Coverage for Wildfire Liabilities Limit | $ 610,000,000 | |||||||||||
Increase In Self Insurance Retention Per Wildfire Occurrence | $ 10,000,000 | |||||||||||
Additional Coverage for Certain Wildfire Liabilities | 390,000,000 | 390,000,000 | ||||||||||
Wildfire Threshold For Additional Coverage | 610,000,000 | 610,000,000 | ||||||||||
Southern California Edison | Insurance Claims | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Maximum Deferred Insurance Premium Per Nuclear Incident | 255,000,000 | |||||||||||
Maximum Yearly Assessment Per Nuclear Incident | 38,000,000 | |||||||||||
Limit on Assessment of Retrospective Premium Adjustments, Per Year, Approximate | $ 45,000,000 | |||||||||||
Southern California Edison | San Onofre | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Number Of Communications That Should Have Been Reported | communication | 9 | 8 | ||||||||||
Penalties | 16,740,000 | |||||||||||
Accrual for Environmental Loss Contingencies (material sites) | 80,000,000 | $ 80,000,000 | ||||||||||
Southern California Edison | San Onofre | Mitsubishi Heavy Industries Ltd | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Ratepayer Allocation of Recovery from Recoveries | 50.00% | |||||||||||
Entity Allocation of Recovery from Recoveries (under accidental outage insurance) | 50.00% | |||||||||||
Ratepayer Allocation of Recovery from Recoveries, Initial Amount of Settlement | $ 282,000,000 | |||||||||||
Southern California Edison | San Onofre | Insurance Claims | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 339,000,000 | |||||||||||
Pre tax damages awarded to SCE | $ 313,000,000 | $ 20,000,000 | ||||||||||
Ratepayer Allocation of Recovery from Recoveries | 95.00% | |||||||||||
Entity Allocation of Recovery from Recoveries (under accidental outage insurance) | 5.00% | |||||||||||
Southern California Edison | Replacement Steam Generators | San Onofre | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Warranty Period | 20 years | |||||||||||
SCE And Other Owners Of San Onofre And Palo Verde | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Loss Contingency, Damages Sought, Value | $ 142,000,000 | $ 182,000,000 | ||||||||||
SCE And Other Owners Of San Onofre And Palo Verde | Insurance Claims | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Private Primary Insurance Purchased | 375,000,000 | |||||||||||
SCE And Other Owners Of San Onofre And Palo Verde | Tort Claims For Onsite Workers | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Private Primary Insurance Purchased | 375,000,000 | |||||||||||
SCE And Other Owners Of San Onofre And Palo Verde | San Onofre and Palo Verde | Insurance Claims | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Loss Limit, Property Damage Insurance, Federal Minimum Requirement | 1,060,000,000 | |||||||||||
Mitsubishi Heavy Industries Ltd | San Onofre | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Maximum Liability Per Purchase Agreement for Damages | $ 138,000,000 | $ 138,000,000 | ||||||||||
Loss Contingency Counter Claim Amount | $ 41,000,000 | |||||||||||
Mitsubishi Heavy Industries Ltd | Southern California Edison | San Onofre | ||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||||||
Loss Contingency, Damages Sought, Value | $ 4,000,000,000 | |||||||||||
Number of Invoices for Reimbursement | invoices | 7 | 7 | ||||||||||
Gain Contingency, Invoiced Amount for Reimbursement | $ 149,000,000 | $ 149,000,000 | ||||||||||
Gain Contingency, Invoiced Amount Paid for Reimbursement | $ 45,000,000 | |||||||||||
Public Utilities, Incremental Inspection and Repair Costs, Payments from Third Party | $ 35,000,000 |
Preferred and Preference Sto104
Preferred and Preference Stock of Utility (Schedule of Preferred and Preference Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Preferred and Preference Stock of Utility | ||
Preferred and preference stock of utility | $ 2,020 | $ 2,022 |
Southern California Edison | ||
Preferred and Preference Stock of Utility | ||
Preferred and preference stock of utility | $ 2,070 | 2,070 |
Southern California Edison | 4.08% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 4.08% | |
Shares Outstanding | 650,000 | |
Redemption Price (in dollars per share) | $ 25.5 | |
Preferred stock before issuance costs | $ 16 | 16 |
Southern California Edison | 4.24% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 4.24% | |
Shares Outstanding | 1,200,000 | |
Redemption Price (in dollars per share) | $ 25.8 | |
Preferred stock before issuance costs | $ 30 | 30 |
Southern California Edison | 4.32% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 4.32% | |
Shares Outstanding | 1,653,429 | |
Redemption Price (in dollars per share) | $ 28.75 | |
Preferred stock before issuance costs | $ 41 | 41 |
Southern California Edison | 4.78% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 4.78% | |
Shares Outstanding | 1,296,769 | |
Redemption Price (in dollars per share) | $ 25.8 | |
Preferred stock before issuance costs | $ 33 | 33 |
Southern California Edison | Preference stock | ||
Preferred and Preference Stock of Utility | ||
Preferred stock before issuance costs | 2,070 | 2,070 |
Less issuance costs | (50) | (48) |
Preferred and preference stock of utility | $ 2,020 | 2,022 |
Southern California Edison | 4.51% Series A (variable and noncumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 4.51% | |
Shares Outstanding | 3,250,000 | |
Redemption Price (in dollars per share) | $ 100 | |
Preferred stock before issuance costs | $ 0 | 325 |
Southern California Edison | 6.50% Series D (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 6.50% | |
Shares Outstanding | 1,250,000 | |
Redemption Price (in dollars per share) | $ 100 | |
Preferred stock before issuance costs | $ 125 | 125 |
Southern California Edison | 6.25% Series E (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 6.25% | |
Shares Outstanding | 350,000 | |
Redemption Price (in dollars per share) | $ 1,000 | |
Preferred stock before issuance costs | $ 350 | 350 |
Southern California Edison | 5.625% Series F (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.625% | |
Shares Outstanding | 190,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Preferred stock before issuance costs | $ 475 | 475 |
Southern California Edison | 5.10% Series G (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.10% | |
Shares Outstanding | 160,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Preferred stock before issuance costs | $ 400 | 400 |
Southern California Edison | 5.75% Series H (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.75% | |
Shares Outstanding | 110,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Preferred stock before issuance costs | $ 275 | 275 |
Southern California Edison | 5.375% Series J (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.375% | |
Shares Outstanding | 130,004 | |
Redemption Price (in dollars per share) | $ 2,500,000,000 | |
Preferred stock before issuance costs | $ 325 | $ 0 |
Variable Interest Entity, Not Primary Beneficiary | Southern California Edison Trust III | Southern California Edison | 5.75% Series H (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.75% | 5.75% |
Preferred and Preference Sto105
Preferred and Preference Stock of Utility (Textual) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Preferred and Preference Stock | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares redeemed | 0 | 0 | 0 |
Dividends payable | $ 14,000,000 | $ 18,000,000 | $ 30,000,000 |
Southern California Edison | Cumulative Preferred Stock 100 Dollars Par Value [Member] | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, par value, in dollars per share | $ 100 | ||
Preferred stock, shares authorized | 12,000,000 | ||
Southern California Edison | Cumulative preferred stock 25 dollars par value | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, par value, in dollars per share | $ 25 | ||
Preferred stock, shares authorized | 24,000,000 | ||
Southern California Edison | No par value: | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, shares authorized | 50,000,000 | ||
Southern California Edison | Series J Preferred Stock | |||
Preferred and Preference Stock of Utility | |||
Liquidation preference | $ 325,000,000 | ||
Southern California Edison | Preferred and Preference Stock | |||
Preferred and Preference Stock of Utility | |||
Dividends payable | $ 14,000,000 | $ 18,000,000 | $ 30,000,000 |
Accumulated Other Comprehens106
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income | |||
Beginning balance | $ (58) | $ (13) | |
Other | 0 | 2 | |
Change | 2 | (45) | |
Ending balance | (56) | (58) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Increase (Decrease) in Accumulated Other Comprehensive Income | |||
Other comprehensive income (loss) before reclassifications | (8) | (58) | |
Reclassified from accumulated other comprehensive loss | [1] | 10 | 11 |
Southern California Edison | |||
Increase (Decrease) in Accumulated Other Comprehensive Income | |||
Beginning balance | (28) | (11) | |
Other | 0 | 2 | |
Change | 6 | (17) | |
Ending balance | (22) | (28) | |
Southern California Edison | Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Increase (Decrease) in Accumulated Other Comprehensive Income | |||
Other comprehensive income (loss) before reclassifications | 1 | (21) | |
Reclassified from accumulated other comprehensive loss | [1] | $ 5 | $ 2 |
[1] | These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information. |
Interest and Other Income an107
Interest and Other Income and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
SCE interest and other income: | ||||
Total Edison International interest and other income | $ 174 | $ 147 | $ 124 | |
SCE other expenses: | ||||
Total Edison International other expenses | (59) | (80) | (74) | |
Southern California Edison | ||||
SCE interest and other income: | ||||
Equity allowance for funds used during construction | 87 | 65 | 72 | |
Increase in cash surrender value of life insurance policies and life insurance benefits | 26 | 36 | 30 | |
Interest income | 4 | 5 | 10 | |
Other | 6 | 16 | 10 | |
Total SCE interest and other income | 123 | 122 | 122 | |
Total Edison International interest and other income | 123 | 122 | 122 | |
SCE other expenses: | ||||
Civic, political and related activities and donations | (35) | (35) | (37) | |
Other | (24) | (44) | (37) | |
Total SCE other expenses | (59) | (79) | (74) | |
Total Edison International other expenses | (59) | (79) | (74) | |
Edison International | ||||
SCE interest and other income: | ||||
Other income of Edison International Parent and Other1 | [1] | 51 | 25 | 2 |
SCE other expenses: | ||||
Other expense of Edison International Parent and Other | $ 0 | $ (1) | $ 0 | |
[1] | Reflects Edison Capital's income related to the sale of affordable housing projects. |
Discontinued Operations (Textua
Discontinued Operations (Textual) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2014installment | Apr. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Cash portion of settlement payment | $ 176 | $ 225 | $ 0 | ||||||||||
Income (loss) from discontinued operations, net of tax | $ (8) | $ 43 | $ 0 | $ 0 | $ 39 | $ (16) | $ 184 | $ (22) | 35 | 185 | 36 | ||
Loss before income taxes | 15 | (525) | |||||||||||
Edison International | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Income (loss) from discontinued operations, net of tax | 35 | 185 | 36 | ||||||||||
Loss before income taxes | $ 525 | ||||||||||||
Edison Mission Energy | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Cash portion of settlement payment | $ 225 | ||||||||||||
Number of Installments | installment | 2 | ||||||||||||
Installment one, tax attribute settlement | $ 204 | ||||||||||||
Installment two, tax attribute settlement | $ 214 | $ 214 | |||||||||||
Homer City | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Impairment and other charges, after tax | $ 36 |
Supplemental Cash Flows Info109
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash payments (receipts) for interest and taxes: | |||
Interest, net of amounts capitalized | $ 512 | $ 504 | $ 477 |
Tax payments (refunds), net | 1 | 32 | 28 |
Details of debt exchange: | |||
Pollution-control bonds redeemed (2.875%) | (203) | 0 | 0 |
Pollution-control bonds issued (1.875%) | 203 | 0 | 0 |
Notes issued under EME Settlement Agreement | 0 | 418 | 0 |
Southern California Edison | |||
Cash payments (receipts) for interest and taxes: | |||
Interest, net of amounts capitalized | 478 | 487 | 462 |
Tax payments (refunds), net | 144 | (88) | 28 |
Details of debt exchange: | |||
Pollution-control bonds redeemed (2.875%) | (203) | 0 | 0 |
Pollution-control bonds issued (1.875%) | 203 | 0 | 0 |
Notes issued under EME Settlement Agreement | 0 | 0 | 0 |
Accrued capital expenditures | 543 | 837 | 661 |
Reduction of lease obligations | (147) | ||
Common Stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid: | 156 | 136 | 116 |
Common Stock | Southern California Edison | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid: | 0 | 147 | 0 |
Preference stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid: | 14 | 18 | 30 |
Preference stock | Southern California Edison | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid: | $ 14 | $ 18 | $ 30 |
2.875% Pollution-Control Bonds [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Debt Conversion, Original Debt, Interest Rate of Debt | 2.875% | 2.875% | 2.875% |
2.875% Pollution-Control Bonds [Member] | Southern California Edison | |||
Other Significant Noncash Transactions [Line Items] | |||
Debt Conversion, Original Debt, Interest Rate of Debt | 2.875% | 2.875% | 2.875% |
1.875% Pollution-Control Bonds Due in 2029 | |||
Other Significant Noncash Transactions [Line Items] | |||
Debt Conversion, Original Debt, Interest Rate of Debt | 1.875% | 1.875% | 1.875% |
1.875% Pollution-Control Bonds Due in 2029 | Southern California Edison | |||
Other Significant Noncash Transactions [Line Items] | |||
Debt Conversion, Original Debt, Interest Rate of Debt | 1.875% | 1.875% | 1.875% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Tax Allocation Agreement | Capistrano Wind Holdings | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Due to affiliate under tax allocation agreements | $ 210 | $ 184 |
Quarterly Financial Data (Un111
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||||||||||||||
Total operating revenue | $ 2,341,000,000 | $ 3,763,000,000 | $ 2,908,000,000 | $ 2,512,000,000 | $ 3,114,000,000 | $ 4,356,000,000 | $ 3,016,000,000 | $ 2,926,000,000 | $ 11,524,000,000 | $ 13,413,000,000 | $ 12,581,000,000 | ||||||||||||
Operating income | 340,000,000 | 608,000,000 | 524,000,000 | 538,000,000 | 693,000,000 | 874,000,000 | 575,000,000 | 331,000,000 | 2,008,000,000 | 2,472,000,000 | 1,715,000,000 | ||||||||||||
Income from continuing operations | (47,000,000) | [1] | 405,000,000 | [1] | 406,000,000 | [1] | 318,000,000 | [1] | 406,000,000 | [2] | 524,000,000 | [2] | 382,000,000 | [2] | 224,000,000 | [2] | 1,082,000,000 | [1] | 1,536,000,000 | [2] | 979,000,000 | ||
Income (loss) from discontinued operations, net | (8,000,000) | 43,000,000 | 0 | 0 | 39,000,000 | (16,000,000) | 184,000,000 | (22,000,000) | 35,000,000 | 185,000,000 | 36,000,000 | ||||||||||||
Net income | 1,117,000,000 | 1,721,000,000 | 1,015,000,000 | ||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ (79,000,000) | $ 421,000,000 | $ 379,000,000 | $ 299,000,000 | $ 420,000,000 | $ 480,000,000 | $ 536,000,000 | $ 176,000,000 | $ 1,020,000,000 | $ 1,612,000,000 | $ 915,000,000 | ||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Basic earnings (loss) per share – continuing operations (in dollars per share) | $ (0.22) | $ 1.16 | $ 1.16 | $ 0.92 | $ 1.17 | $ 1.52 | $ 1.08 | $ 0.61 | $ 3.02 | $ 4.38 | $ 2.70 | ||||||||||||
Basic earnings (loss) per share – discontinued operations (in dollars per share) | (0.02) | 0.13 | 0 | 0 | 0.12 | (0.05) | 0.56 | (0.07) | 0.11 | 0.57 | 0.11 | ||||||||||||
Total (in dollars per share) | (0.24) | 1.29 | 1.16 | 0.92 | 1.29 | 1.47 | 1.64 | 0.54 | 3.13 | 4.95 | 2.81 | ||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Diluted earnings (loss) per share – continuing operations (in dollars per share) | (0.22) | 1.15 | 1.15 | 0.91 | 1.15 | 1.51 | 1.07 | 0.61 | 2.99 | 4.33 | 2.67 | ||||||||||||
Diluted earnings (loss) per share – discontinued operations (in dollars per share) | (0.02) | 0.13 | 0 | 0 | 0.12 | (0.05) | 0.56 | (0.07) | 0.11 | 0.56 | 0.11 | ||||||||||||
Total (in dollars per share) | (0.24) | 1.28 | 1.15 | 0.91 | 1.27 | 1.46 | 1.63 | 0.54 | 3.10 | 4.89 | 2.78 | ||||||||||||
Dividends declared per share (in dollars per share) | 0.48 | 0.4175 | 0.4175 | 0.4175 | 0.4175 | 0.3550 | 0.3550 | 0.3550 | 1.7325 | 1.4825 | $ 1.3675 | ||||||||||||
Common stock prices: | |||||||||||||||||||||||
High (in dollars per share) | 66.29 | 63.18 | 64.55 | 69.59 | 68.74 | 59.54 | 58.24 | 56.61 | 69.59 | 68.74 | |||||||||||||
Low (in dollars per share) | 57.51 | 55.52 | 55.18 | 61.02 | 55.88 | 54.12 | 53.63 | 44.74 | 55.18 | 44.74 | |||||||||||||
Close (in dollars per share) | $ 59.21 | $ 63.07 | $ 55.58 | $ 62.47 | $ 65.48 | $ 55.92 | $ 58.11 | $ 56.61 | $ 59.21 | $ 65.48 | $ 65.48 | ||||||||||||
Impairment and other charges | $ 382,000,000 | $ 5,000,000 | $ 157,000,000 | $ 571,000,000 | |||||||||||||||||||
Southern California Edison | |||||||||||||||||||||||
Quarterly Financial Data [Line Items] | |||||||||||||||||||||||
Total operating revenue | 2,319,000,000 | $ 3,757,000,000 | $ 2,901,000,000 | $ 2,508,000,000 | $ 3,104,000,000 | $ 4,338,000,000 | $ 3,014,000,000 | $ 2,924,000,000 | 11,485,000,000 | 13,380,000,000 | 12,562,000,000 | ||||||||||||
Operating income | 366,000,000 | 626,000,000 | 536,000,000 | 550,000,000 | 715,000,000 | 881,000,000 | 593,000,000 | 342,000,000 | 2,080,000,000 | 2,529,000,000 | 1,751,000,000 | ||||||||||||
Net income | (51,000,000) | [3] | 417,000,000 | [3] | 412,000,000 | [3] | 333,000,000 | [3] | 408,000,000 | [4] | 531,000,000 | [4] | 392,000,000 | [4] | 234,000,000 | [4] | 1,111,000,000 | [3] | 1,565,000,000 | [4] | 1,000,000,000 | ||
Net income (loss) attributable to common shareholders | (80,000,000) | 389,000,000 | 384,000,000 | 305,000,000 | 380,000,000 | 503,000,000 | 362,000,000 | 208,000,000 | 998,000,000 | 1,453,000,000 | 900,000,000 | ||||||||||||
Common stock prices: | |||||||||||||||||||||||
Common dividends declared | $ 170,000,000 | $ 147,000,000 | $ 147,000,000 | $ 147,000,000 | 147,000,000 | $ 126,000,000 | 126,000,000 | $ 126,000,000 | 611,000,000 | 525,000,000 | |||||||||||||
Impairment and other charges | $ 0 | 163,000,000 | $ 575,000,000 | ||||||||||||||||||||
San Onofre | Southern California Edison | |||||||||||||||||||||||
Common stock prices: | |||||||||||||||||||||||
Impairment and other charges | 68,000,000 | 231,000,000 | $ 575,000,000 | 163,000,000 | $ 738,000,000 | ||||||||||||||||||
Asset impairment net of tax | $ 24,000,000 | $ 96,000,000 | $ 365,000,000 | $ 72,000,000 | $ 437,000,000 | ||||||||||||||||||
[1] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions, except per-share amounts)Total Fourth Third Second FirstOperating revenue$13,413 $3,114 $4,356 $3,016 $2,926Operating income 2,472 693 874 575 331Income from continuing operations11,536 406 524 382 224Income (loss) from discontinued operations, net185 39 (16) 184 (22)Net income attributable to common shareholders1,612 420 480 536 176Basic earnings (loss) per share: Continuing operations$4.38 $1.17 $1.52 $1.08 $0.61 Discontinued operations0.57 0.12 (0.05) 0.56 (0.07)Total$4.95 $1.29 $1.47 $1.64 $0.54Diluted earnings (loss) per share: Continuing operations$4.33 $1.15 $1.51 $1.07 $0.61 Discontinued operations0.56 0.12 (0.05) 0.56 (0.07)Total$4.89 $1.27 $1.46 $1.63 $0.54Dividends declared per share1.4825 0.4175 0.3550 0.3550 0.3550Common stock prices: High68.74 68.74 59.54 58.24 56.61Low44.74 55.88 54.12 53.63 44.74Close65.48 65.48 55.92 58.11 56.61 | ||||||||||||||||||||||
[2] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. | ||||||||||||||||||||||
[3] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions)Total Fourth Third Second FirstOperating revenue$13,380 $3,104 $4,338 $3,014 $2,924Operating income2,529 715 881 593 342Net income11,565 408 531 392 234Net income available for common stock1,453 380 503 362 208Common dividends declared525 147 126 126 126 | ||||||||||||||||||||||
[4] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. |
Schedule I - Condensed Finan112
Schedule I - Condensed Financial Information of Parent (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ 161,000,000 | $ 132,000,000 | $ 132,000,000 | $ 146,000,000 | $ 132,000,000 | $ 146,000,000 | $ 170,000,000 | $ 161,000,000 | $ 132,000,000 | $ 146,000,000 | $ 170,000,000 | ||||||||||||||
Other current assets | 251,000,000 | 376,000,000 | |||||||||||||||||||||||
Total current assets | 2,654,000,000 | 3,567,000,000 | |||||||||||||||||||||||
Other long-term assets | 441,000,000 | 349,000,000 | |||||||||||||||||||||||
Total assets | 50,310,000,000 | 49,734,000,000 | |||||||||||||||||||||||
Liabilities and equity: | |||||||||||||||||||||||||
Short-term debt | 695,000,000 | 1,291,000,000 | |||||||||||||||||||||||
Current portion of long-term debt | 295,000,000 | 504,000,000 | |||||||||||||||||||||||
Other current liabilities | 967,000,000 | 1,205,000,000 | |||||||||||||||||||||||
Total current liabilities | 4,927,000,000 | 5,479,000,000 | |||||||||||||||||||||||
Long-term debt | 10,964,000,000 | 10,234,000,000 | |||||||||||||||||||||||
Total equity | 13,388,000,000 | 12,982,000,000 | 11,691,000,000 | 11,191,000,000 | |||||||||||||||||||||
Total liabilities and equity | 50,310,000,000 | $ 49,734,000,000 | |||||||||||||||||||||||
Condensed Statements of Income: | |||||||||||||||||||||||||
Operating revenue and other income | 2,341,000,000 | $ 3,763,000,000 | $ 2,908,000,000 | 2,512,000,000 | 3,114,000,000 | $ 4,356,000,000 | $ 3,016,000,000 | 2,926,000,000 | 11,524,000,000 | 13,413,000,000 | 12,581,000,000 | ||||||||||||||
Operating expenses and interest expense | 9,516,000,000 | 10,941,000,000 | 10,866,000,000 | ||||||||||||||||||||||
Loss before equity in earnings of subsidiaries | 340,000,000 | 608,000,000 | 524,000,000 | 538,000,000 | 693,000,000 | 874,000,000 | 575,000,000 | 331,000,000 | 2,008,000,000 | 2,472,000,000 | 1,715,000,000 | ||||||||||||||
Income tax benefit | 486,000,000 | 443,000,000 | 242,000,000 | ||||||||||||||||||||||
Income from continuing operations | (47,000,000) | [1] | 405,000,000 | [1] | 406,000,000 | [1] | 318,000,000 | [1] | 406,000,000 | [2] | 524,000,000 | [2] | 382,000,000 | [2] | 224,000,000 | [2] | 1,082,000,000 | [1] | 1,536,000,000 | [2] | 979,000,000 | ||||
Income from discontinued operations, net of tax | (8,000,000) | 43,000,000 | 0 | 0 | 39,000,000 | (16,000,000) | 184,000,000 | (22,000,000) | 35,000,000 | 185,000,000 | 36,000,000 | ||||||||||||||
Other comprehensive income (loss), net of tax | 2,000,000 | (45,000,000) | 74,000,000 | ||||||||||||||||||||||
Comprehensive income | 1,022,000,000 | 1,567,000,000 | 989,000,000 | ||||||||||||||||||||||
Condensed Statements of Cash Flows: | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 4,509,000,000 | 3,248,000,000 | 2,967,000,000 | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Short-term debt financing, net | (572,000,000) | 1,079,000,000 | 32,000,000 | ||||||||||||||||||||||
Dividends paid | (544,000,000) | (463,000,000) | (440,000,000) | ||||||||||||||||||||||
Net cash (used in) provided by financing activities | (588,000,000) | 645,000,000 | 581,000,000 | ||||||||||||||||||||||
Net cash used in investing activities: | (3,892,000,000) | (3,907,000,000) | (3,572,000,000) | ||||||||||||||||||||||
Net decrease in cash and cash equivalents | 29,000,000 | (14,000,000) | (24,000,000) | ||||||||||||||||||||||
Cash and cash equivalents, beginning of year | 132,000,000 | 146,000,000 | 132,000,000 | 146,000,000 | 170,000,000 | ||||||||||||||||||||
Cash and cash equivalents, end of year | 161,000,000 | 132,000,000 | 161,000,000 | 132,000,000 | 146,000,000 | ||||||||||||||||||||
Senior Notes Due 2017 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Interest rate on debt (as a percent) | 3.75% | ||||||||||||||||||||||||
Credit Facility July 2020 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Commitment | 1,250,000,000 | ||||||||||||||||||||||||
Outstanding borrowings (outstanding commercial paper was $619 million at year-end) | (646,000,000) | ||||||||||||||||||||||||
Amount available | 604,000,000 | ||||||||||||||||||||||||
Edison International | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | 7,000,000 | 8,000,000 | 8,000,000 | 13,000,000 | 8,000,000 | 13,000,000 | 64,000,000 | 7,000,000 | $ 8,000,000 | 13,000,000 | 64,000,000 | ||||||||||||||
Other current assets | 259,000,000 | 531,000,000 | |||||||||||||||||||||||
Total current assets | 266,000,000 | 539,000,000 | |||||||||||||||||||||||
Investments in subsidiaries | 12,696,000,000 | 12,416,000,000 | |||||||||||||||||||||||
Deferred income taxes | 626,000,000 | 547,000,000 | |||||||||||||||||||||||
Other long-term assets | 111,000,000 | 172,000,000 | |||||||||||||||||||||||
Total assets | 13,699,000,000 | 13,674,000,000 | |||||||||||||||||||||||
Liabilities and equity: | |||||||||||||||||||||||||
Short-term debt | 646,000,000 | 619,000,000 | |||||||||||||||||||||||
Current portion of long-term debt | 214,000,000 | 204,000,000 | |||||||||||||||||||||||
Other current liabilities | 368,000,000 | 377,000,000 | |||||||||||||||||||||||
Total current liabilities | 1,228,000,000 | 1,200,000,000 | |||||||||||||||||||||||
Long-term debt | 399,000,000 | 610,000,000 | |||||||||||||||||||||||
Other long-term liabilities | 704,000,000 | 904,000,000 | |||||||||||||||||||||||
Total equity | 11,368,000,000 | 10,960,000,000 | |||||||||||||||||||||||
Total liabilities and equity | $ 13,699,000,000 | $ 13,674,000,000 | |||||||||||||||||||||||
Condensed Statements of Income: | |||||||||||||||||||||||||
Operating revenue and other income | 3,000,000 | 3,000,000 | 0 | ||||||||||||||||||||||
Operating expenses and interest expense | 78,000,000 | 94,000,000 | 72,000,000 | ||||||||||||||||||||||
Loss before equity in earnings of subsidiaries | (75,000,000) | (91,000,000) | (72,000,000) | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 1,025,000,000 | 1,482,000,000 | 922,000,000 | ||||||||||||||||||||||
Income before income taxes | 950,000,000 | 1,391,000,000 | 850,000,000 | ||||||||||||||||||||||
Income tax benefit | (35,000,000) | (36,000,000) | (29,000,000) | ||||||||||||||||||||||
Income from continuing operations | 985,000,000 | 1,427,000,000 | 879,000,000 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | 35,000,000 | 185,000,000 | 36,000,000 | ||||||||||||||||||||||
Net income | 1,020,000,000 | 1,612,000,000 | 915,000,000 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 2,000,000 | (45,000,000) | 74,000,000 | ||||||||||||||||||||||
Comprehensive income | 1,022,000,000 | 1,567,000,000 | 989,000,000 | ||||||||||||||||||||||
Condensed Statements of Cash Flows: | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 641,000,000 | (73,000,000) | 387,000,000 | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Payable due to affiliate | 54,000,000 | 66,000,000 | 10,000,000 | ||||||||||||||||||||||
Short-term debt financing, net | 26,000,000 | 584,000,000 | 33,000,000 | ||||||||||||||||||||||
Settlements of stock-based compensation, net | (42,000,000) | (24,000,000) | (6,000,000) | ||||||||||||||||||||||
Dividends paid | (544,000,000) | (463,000,000) | (440,000,000) | ||||||||||||||||||||||
Net cash (used in) provided by financing activities | (506,000,000) | 163,000,000 | (403,000,000) | ||||||||||||||||||||||
Net cash used in investing activities: | (136,000,000) | (95,000,000) | (35,000,000) | ||||||||||||||||||||||
Net decrease in cash and cash equivalents | (1,000,000) | (5,000,000) | (51,000,000) | ||||||||||||||||||||||
Cash and cash equivalents, beginning of year | 8,000,000 | 13,000,000 | 8,000,000 | 13,000,000 | 64,000,000 | ||||||||||||||||||||
Cash and cash equivalents, end of year | 7,000,000 | 8,000,000 | 7,000,000 | 8,000,000 | 13,000,000 | ||||||||||||||||||||
Dividends [Abstract] | |||||||||||||||||||||||||
Cash dividends received from consolidated subsidiaries | $ 758,000,000 | 378,000,000 | 486,000,000 | ||||||||||||||||||||||
Minimum percentage of weighted-average common equity component authorization, set by CPUC (as a percent) | 48.00% | ||||||||||||||||||||||||
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 13 months | ||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Weighted average interest rate (as a percent) | 0.78% | 0.45% | |||||||||||||||||||||||
Outstanding borrowings (outstanding commercial paper was $619 million at year-end) | $ (619,000,000) | ||||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||||
Current receivables due from affiliates | $ 252,000,000 | 267,000,000 | |||||||||||||||||||||||
Current payables due to affiliates | 149,000,000 | 213,000,000 | |||||||||||||||||||||||
Long-term receivables due from affiliate | 105,000,000 | 125,000,000 | |||||||||||||||||||||||
Long-term payables due to affiliates | $ 213,000,000 | 179,000,000 | |||||||||||||||||||||||
Edison International | Senior Notes Due 2017 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Interest rate on debt (as a percent) | 3.75% | ||||||||||||||||||||||||
Senior notes | $ 400,000,000 | 400,000,000 | |||||||||||||||||||||||
Edison International | Non-interest Bearing Promissory Notes Due in September 2015 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Debt Instrument, Face Amount | 204,000,000 | ||||||||||||||||||||||||
Edison International | Non-interest Bearing Promissory Notes Due in September 2016 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Debt Instrument, Face Amount | 214,000,000 | ||||||||||||||||||||||||
Edison International | Credit Facility July 2020 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Commitment | 1,250,000,000 | ||||||||||||||||||||||||
Edison International | Revolving credit facility maturing in July 2018 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Amount available | $ 604,000,000 | ||||||||||||||||||||||||
Covenant requirement, consolidated debt to total capitalization, ratio | 0.65 | ||||||||||||||||||||||||
Consolidated debt to total capitalization, ratio | 0.47 | ||||||||||||||||||||||||
Southern California Edison | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | 26,000,000 | 38,000,000 | 38,000,000 | 54,000,000 | $ 38,000,000 | 54,000,000 | 45,000,000 | $ 26,000,000 | 38,000,000 | 54,000,000 | 45,000,000 | ||||||||||||||
Other current assets | 234,000,000 | 390,000,000 | |||||||||||||||||||||||
Total current assets | 2,443,000,000 | 3,440,000,000 | |||||||||||||||||||||||
Other long-term assets | 316,000,000 | 300,000,000 | |||||||||||||||||||||||
Total assets | 49,872,000,000 | 49,456,000,000 | |||||||||||||||||||||||
Liabilities and equity: | |||||||||||||||||||||||||
Short-term debt | 49,000,000 | 667,000,000 | |||||||||||||||||||||||
Current portion of long-term debt | 79,000,000 | 300,000,000 | |||||||||||||||||||||||
Other current liabilities | 760,000,000 | 1,183,000,000 | |||||||||||||||||||||||
Total current liabilities | 3,821,000,000 | 4,611,000,000 | |||||||||||||||||||||||
Long-term debt | 10,537,000,000 | 9,624,000,000 | |||||||||||||||||||||||
Total equity | 13,672,000,000 | 13,282,000,000 | $ 12,138,000,000 | $ 11,743,000,000 | |||||||||||||||||||||
Total liabilities and equity | 49,872,000,000 | 49,456,000,000 | |||||||||||||||||||||||
Condensed Statements of Income: | |||||||||||||||||||||||||
Operating revenue and other income | 2,319,000,000 | 3,757,000,000 | 2,901,000,000 | 2,508,000,000 | 3,104,000,000 | 4,338,000,000 | 3,014,000,000 | 2,924,000,000 | 11,485,000,000 | 13,380,000,000 | 12,562,000,000 | ||||||||||||||
Operating expenses and interest expense | 9,405,000,000 | 10,851,000,000 | 10,811,000,000 | ||||||||||||||||||||||
Loss before equity in earnings of subsidiaries | 366,000,000 | $ 626,000,000 | $ 536,000,000 | 550,000,000 | 715,000,000 | $ 881,000,000 | $ 593,000,000 | 342,000,000 | 2,080,000,000 | 2,529,000,000 | 1,751,000,000 | ||||||||||||||
Income tax benefit | 507,000,000 | 474,000,000 | 279,000,000 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 6,000,000 | (17,000,000) | 18,000,000 | ||||||||||||||||||||||
Condensed Statements of Cash Flows: | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 4,624,000,000 | 3,660,000,000 | 3,048,000,000 | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Short-term debt financing, net | (619,000,000) | 490,000,000 | (1,000,000) | ||||||||||||||||||||||
Dividends paid | (874,000,000) | (489,000,000) | (587,000,000) | ||||||||||||||||||||||
Net cash (used in) provided by financing activities | (812,000,000) | 181,000,000 | 508,000,000 | ||||||||||||||||||||||
Net cash used in investing activities: | (3,824,000,000) | (3,857,000,000) | (3,547,000,000) | ||||||||||||||||||||||
Net decrease in cash and cash equivalents | (12,000,000) | (16,000,000) | 9,000,000 | ||||||||||||||||||||||
Cash and cash equivalents, beginning of year | $ 38,000,000 | $ 54,000,000 | 38,000,000 | 54,000,000 | 45,000,000 | ||||||||||||||||||||
Cash and cash equivalents, end of year | $ 26,000,000 | $ 38,000,000 | $ 26,000,000 | 38,000,000 | 54,000,000 | ||||||||||||||||||||
Dividends [Abstract] | |||||||||||||||||||||||||
Period for calculation of weighted average common equity component (months) | 13 months | ||||||||||||||||||||||||
Weighted-average common equity component of total capitalization (as a percent) | 49.90% | ||||||||||||||||||||||||
Capacity to pay additional dividends | $ 441,000,000 | ||||||||||||||||||||||||
Restriction on net assets | 13,200,000,000 | ||||||||||||||||||||||||
Southern California Edison | Credit Facility July 2020 | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Commitment | 2,750,000,000 | ||||||||||||||||||||||||
Outstanding borrowings (outstanding commercial paper was $619 million at year-end) | (49,000,000) | ||||||||||||||||||||||||
Amount available | 2,576,000,000 | ||||||||||||||||||||||||
Commercial paper | Edison International | |||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Outstanding borrowings (outstanding commercial paper was $619 million at year-end) | $ (646,000,000) | ||||||||||||||||||||||||
Commercial paper | Southern California Edison | Credit Facility July 2020 | |||||||||||||||||||||||||
Liabilities and equity: | |||||||||||||||||||||||||
Short-term debt | $ 367,000,000 | ||||||||||||||||||||||||
Debt and Credit Agreements | |||||||||||||||||||||||||
Weighted average interest rate (as a percent) | 0.51% | 0.40% | |||||||||||||||||||||||
Outstanding borrowings (outstanding commercial paper was $619 million at year-end) | $ (49,000,000) | ||||||||||||||||||||||||
Southern California Edison | Edison International | |||||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||||
Expenses from services provided by SCE | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | ||||||||||||||||||||||
[1] | In the fourth quarter of 2015, as result of the 2015 GRC Decision, SCE recorded a $382 million write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. 2014(in millions, except per-share amounts)Total Fourth Third Second FirstOperating revenue$13,413 $3,114 $4,356 $3,016 $2,926Operating income 2,472 693 874 575 331Income from continuing operations11,536 406 524 382 224Income (loss) from discontinued operations, net185 39 (16) 184 (22)Net income attributable to common shareholders1,612 420 480 536 176Basic earnings (loss) per share: Continuing operations$4.38 $1.17 $1.52 $1.08 $0.61 Discontinued operations0.57 0.12 (0.05) 0.56 (0.07)Total$4.95 $1.29 $1.47 $1.64 $0.54Diluted earnings (loss) per share: Continuing operations$4.33 $1.15 $1.51 $1.07 $0.61 Discontinued operations0.56 0.12 (0.05) 0.56 (0.07)Total$4.89 $1.27 $1.46 $1.63 $0.54Dividends declared per share1.4825 0.4175 0.3550 0.3550 0.3550Common stock prices: High68.74 68.74 59.54 58.24 56.61Low44.74 55.88 54.12 53.63 44.74Close65.48 65.48 55.92 58.11 56.61 | ||||||||||||||||||||||||
[2] | During the first quarter of 2014, SCE recorded an impairment charge of $231 million ($96 million after-tax) in 2014. During the fourth quarter of 2014, SCE reduced its estimated impact of the San Onofre OII Settlement by $68 million ($24 million after-tax) consistent with the advice for reimbursement of recorded costs. |
Schedule II - Valuation and 113
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | $ 72.2 | $ 70 | $ 126.1 | ||||
Charged to Costs and Expenses | 46.9 | 43.8 | 55.3 | ||||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | [1] | 47.8 | 41.6 | 111.4 | |||
Balance at End of Period | 71.3 | 72.2 | 70 | ||||
Deferred tax assets, loss and credit carryforwards | 1,388 | 1,657 | 2,200 | ||||
Customers | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | 48.9 | 52.2 | 46.6 | ||||
Charged to Costs and Expenses | 23.9 | 24.1 | 36 | ||||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | 26.6 | 27.4 | 30.4 | ||||
Balance at End of Period | 46.2 | 48.9 | 52.2 | ||||
All others | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | 23.3 | 17.8 | 79.5 | ||||
Charged to Costs and Expenses | 23 | 19.7 | 19.3 | ||||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | 21.2 | 14.2 | 81 | ||||
Balance at End of Period | 25.1 | 23.3 | 17.8 | ||||
Tax valuation allowance | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | 29 | [2] | 1,380 | [2] | 1,016.5 | ||
Charged to Costs and Expenses | 3 | 0 | [2] | 363.5 | [2] | ||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | 0 | 1,351 | [3] | 0 | |||
Balance at End of Period | 32 | 29 | [2] | 1,380 | [2] | ||
Edison Mission Energy | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Deferred tax assets, loss and credit carryforwards | 1,600 | ||||||
Deferred income tax benefits, net | 220 | ||||||
Southern California Edison | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | 67.6 | 65.5 | 74.9 | ||||
Charged to Costs and Expenses | 41.9 | 43.7 | 55.3 | ||||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | [4] | 47.8 | 41.6 | 64.7 | |||
Balance at End of Period | 61.7 | 67.6 | 65.5 | ||||
Deferred tax assets, loss and credit carryforwards | 0 | 205 | |||||
Southern California Edison | Customers | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | 48.9 | 52.2 | 46.6 | ||||
Charged to Costs and Expenses | 23.9 | 24.1 | 36 | ||||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | 26.6 | 27.4 | 30.4 | ||||
Balance at End of Period | 46.2 | 48.9 | 52.2 | ||||
Southern California Edison | All others | |||||||
Movement in Valuation and Qualifying Accounts | |||||||
Balance at Beginning of Period | 18.7 | 13.3 | 28.3 | ||||
Charged to Costs and Expenses | 18 | 19.6 | 19.3 | ||||
Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | 21.2 | 14.2 | 34.3 | ||||
Balance at End of Period | $ 15.5 | $ 18.7 | $ 13.3 | ||||
[1] | Accounts written off, net. | ||||||
[2] | Edison International recorded deferred tax assets of $2.2 billion related to net operating losses and tax carryforwards that pertain to Edison International's consolidated or combined federal and state tax returns, including approximately $1.6 billion related to EME. Edison International continues to consolidate EME for federal and certain combined state tax returns. EME's Plan of Reorganization, filed in December 2013 ("December Plan of Reorganization"), provides for the transfer of EIX's ownership interest to the creditors, which would result in a tax deconsolidation of EME. Under federal and state tax regulations, the tax deconsolidation of EME would reduce the amounts of net operating loss and tax credits carryforwards that Edison International would be eligible to use in future periods. As a result of the EME's December Plan of Reorganization, which would result in a tax deconsolidation of EME, Edison International has recorded a $1.380 billion valuation allowance based on the estimated amount of such benefits as calculated under the applicable federal and state tax regulations as of December 31, 2013. The deferred income tax benefits recognized by Edison International less the valuation allowance for amounts that would no longer be available upon tax deconsolidation of EME was approximately $220 million. | ||||||
[3] | On April 1, 2014, under the Amended Plan of Reorganization, EME emerged from bankruptcy free of liabilities but remained an indirect wholly-owned subsidiary of Edison International, which will continue to be consolidated with Edison International for income tax purposes. Edison International anticipates realization of the federal and California tax benefits before they expire. Therefore, the valuation allowance on federal and California tax benefits that Edison International recorded in 2013 was released in 2014. The remaining valuation allowance is related to non California state tax benefits. | ||||||
[4] | Accounts written off, net. |