SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
[X] Annual report pursuant to Section 15(d) of the Securities Exchange Act
of 1934
For the fiscal year ended December 31, 1995
------------------------------------------
Commission File Number 1-9936
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
(Full Title of the Plan)
EDISON INTERNATIONAL
(Name of Issuer)
2244 WALNUT GROVE AVENUE (P.O. Box 800), ROSEMEAD, CALIFORNIA 91770
(Address of principal executive office)
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Participants in the Southern California Edison Company Stock
Savings Plus Plan and the Employee Benefits/Health Care Committee:
We have audited the accompanying statements of financial condition
of the Southern California Edison Company Stock Savings Plus Plan (the
Plan) as of December 31, 1995, and 1994, and the related statements of
income and changes in plan equity for each of the three years in the
period ended December 31, 1995. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial condition of the Plan as
of December 31, 1995, and 1994, and the income and changes in plan equity
for each of the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
ARTHUR ANDERSEN LLP
Los Angeles, California
March 27, 1996
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1995
Edison Guaranteed
Int'l Income Common Money
Stock Fund-- Stock Market Balanced Bond Global
Total Fund 3 Yrs. Fund Fund Fund Fund Fund Loans
----- ------- ------- ------ ------- ------- ----- ------ -----
(Dollars in thousands)
Assets
Interest
receivable. . . . . $ 525 $ 30 $ -- $ -- $ 495 $ -- $ -- $ -- $ --
---------- ------- ------- ------ ------ ------ ------ ------ -------
Loan receivable . . . 65,507 -- -- -- -- -- -- -- 65,507
---------- ------- ------- ------ ------ ------ ------ ------ -------
Investments, at market
value:
Edison International
common stock --
48,501,813 shares
(cost -- $778,822). 854,845 854,845 -- -- -- -- -- -- --
Guaranteed income
contracts, at cost
plus reinvested
income. . . . . . . 1,924 -- 1,924 -- -- -- -- -- --
Collective funds:
Common stock
investments (cost --
$158,844). . . . 208,391 -- -- 208,391 -- -- -- -- --
Short-term income
investments,
at cost. . . . . 130,238 24,633 1,549 534 102,787 254 60 421 --
Balanced fund (cost --
$95,018) . . . . 115,301 -- -- -- -- 115,301 -- -- --
Bond fund (cost --
$25,414) . . . . 28,199 -- -- -- -- -- 28,199 -- --
Global fund (cost --
$128,434). . . . 156,695 -- -- -- -- -- -- 156,695 --
---------- -------- ------ -------- -------- -------- ------- -------- -------
Total
investments. . . 1,495,593 879,478 3,473 208,925 102,787 115,555 28,259 157,116 --
---------- -------- ------ -------- -------- -------- ------- -------- -------
Total assets $1,561,625 $879,508 $3,473 $208,925 $103,282 $115,555 $28,259 $157,116 $65,507
========== ======== ====== ======== ======== ======== ======= ======== =======
Liabilities and Plan equity
Payable to brokers
and others. . . . . $ 18,875 $ -- $ -- $ 8,566 $ -- $ 4,055 $ 768 $ 5,486 $ --
Plan equity . . . . . 1,542,750 879,508 3,473 200,359 103,282 111,500 27,491 151,630 65,507
---------- -------- ------ -------- -------- -------- ------- -------- -------
Total liabilities
and Plan
equity . . . . . $1,561,625 $879,508 $3,473 $208,925 $103,282 $115,555 $28,259 $157,116 $65,507
========== ======== ====== ======== ======== ======== ======= ======== =======
The accompanying notes are an integral part of these financial statements.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1994
Edison Guaranteed
Int'l Income Common Money
Stock Fund-- Stock Market Balanced Bond Global
Total Fund 3 Yrs. Fund Fund Fund Fund Fund Loans
----- ------- ------- ------ ------- ------- ----- ------ -----
(Dollars in thousands)
Assets
Interest
receivable. . . . . $ 403 $ 30 $ -- $ -- $ 373 $ -- $ -- $ -- $ --
---------- -------- ------- ------ ------- ------- ------ ------ -------
Loan receivable . . . 65,799 -- -- -- -- -- -- -- 65,799
---------- -------- ------- ------ ------- ------- ------ ------ -------
Receivable from
broker. . . . . . . 2,953 -- -- 126 -- 1,507 59 1,261 --
---------- -------- ------- ------ ------- ------- ------ ------ -------
Investments, at market
value:
Edison International
common stock --
54,709,915 shares
(cost -- $869,304). 800,133 800,133 -- -- -- -- -- -- --
Guaranteed income
contracts, at cost
plus reinvested
income. . . . . . . 14,437 -- 14,437 -- -- -- -- -- --
Collective funds:
Common stock
investments (cost --
$106,146) . . . . . 111,399 -- -- 111,399 -- -- -- -- --
Short-term income
investments,
at cost. . . . . 88,741 7,576 -- 374 80,186 192 49 364 --
Balanced fund (cost --
$63,655) . . . . 66,427 -- -- -- -- 66,427 -- -- --
Bond fund (cost --
$17,058) . . . . 17,606 -- -- -- -- -- 17,606 -- --
Global fund (cost --
$90,905) . . . . 94,443 -- -- -- -- -- -- 94,443 --
---------- -------- ------- -------- ------- ------- ------- ------- -------
Total
investments. . . 1,193,186 807,709 14,437 111,773 80,186 66,619 17,655 94,807 --
---------- -------- ------- -------- ------- ------- ------- ------- -------
Total assets $1,262,341 $807,739 $14,437 $111,899 $80,559 $68,126 $17,714 $96,068 $65,799
========== ======== ======= ======== ======= ======= ======= ======= =======
Liabilities and Plan equity
Payable to brokers
and others. . . . . $ 2,390 $ 2,120 $ -- $ -- $ -- $ 94 $ 20 $ 156 $ --
Plan equity . . . . . 1,259,951 805,619 14,437 111,899 80,559 68,032 17,694 95,912 65,799
---------- -------- ------- -------- ------- ------- ------- ------- -------
Total Liabilities and
Plan equity $1,262,341 $807,739 $14,437 $111,899 $80,559 $68,126 $17,714 $96,068 $65,799
========== ======== ======= ======== ======= ======= ======= ======= =======
The accompanying notes are an integral part of these financial statements.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1995
Edison Guaranteed
Int'l Income Common Money
Stock Fund-- Stock Market Balanced Bond Global
Total Fund 3 Yrs. Fund Fund Fund Fund Fund Loans
----- -------- ---------- ------ ------ -------- ---- ------ -----
(In thousands)
Investment income:
Cash dividends. . . $ 54,937 $54,937 $ -- $ -- $ -- $ -- $ -- $ -- $ --
Interest from:
Participant loans 4,952 3,727 -- 415 202 199 49 360 --
Investments . . . 6,169 236 388 21 5,494 12 3 15 --
---------- -------- ------- ------- ------- ------- ------- -------- -------
66,058 58,900 388 436 5,696 211 52 375 --
---------- -------- ------- ------- ------- ------- ------- -------- -------
Management fee . . . (1,306) -- -- -- -- (459) (100) (747) --
---------- -------- ------- ------- ------- ------- ------- -------- -------
Net investment
income (loss) . 64,752 58,900 388 436 5,696 (248) (48) (372) --
---------- -------- ------- ------- ------- ------- ------- -------- -------
Change in value of
investments:
Realized gain . . . 10,363 8,871 -- 253 -- 395 48 796 --
Unrealized gain . . 233,959 145,194 -- 44,294 -- 17,511 2,237 24,723 --
---------- -------- ------- ------- ------- ------- ------- -------- -------
244,322 154,065 -- 44,547 -- 17,906 2,285 25,519 --
---------- -------- ------- ------- ------- ------- ------- -------- -------
Contributions:
Employer, including
forfeitures . . . 19,904 13,409 -- 2,168 1,139 1,073 295 1,820 --
Participants . . . 64,019 42,771 -- 7,116 3,658 3,471 923 6,080 --
--------- -------- ------ ------- ------- ------- ------- -------- -------
83,923 56,180 -- 9,284 4,797 4,544 1,218 7,900 --
--------- -------- ------ ------- ------- ------- ------- -------- -------
Total net investment
income, change
in value of
investments, and
contributions . 392,997 269,145 388 54,267 10,493 22,202 3,455 33,047 --
--------- -------- ------ ------- ------- ------- ------- -------- -------
Deductions:
Distributions to Par-
ticipants or their
beneficiaries . . 106,794 65,518 660 9,171 16,129 6,473 1,774 7,069 --
Employer contributions
and earnings
forfeited . . . . 331 169 -- 62 20 32 5 43 --
Loans to Participants
net of repayments
and loan defaults
of $3,073 . . . . 3,073 2,257 -- 166 625 (50) 20 (237) 292
--------- -------- ------ ------- ------- ------- ------- -------- --------
110,198 67,944 660 9,399 16,774 6,455 1,799 6,875 292
--------- -------- ------ ------- ------- ------- ------- -------- -------
Interfund
conversions . . . . -- (127,312)(10,692) 43,592 29,004 27,721 8,141 29,546 --
--------- -------- ------- ------- ------- ------- ------- -------- -------
Increase (Decrease)
in Plan equity
for the year. . . . 282,799 73,889 (10,964) 88,460 22,723 43,468 9,797 55,718 (292)
Plan equity, at market
value, beginning
of year . . . . . . 1,259,951 805,619 14,437 111,899 80,559 68,032 17,694 95,912 65,799
---------- -------- ------- -------- ------- -------- ------- -------- -------
Plan equity, at
market value,
end of year . . . . $1,542,750 $879,508 $3,473 $200,359 $103,282 $111,500 $27,491 $151,630 $65,507
========== ======== ====== ======== ======== ======== ======= ======== =======
The accompanying notes are an integral part of these financial statements.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1994
Edison Guaranteed
Int'l Income Common Money
Stock Fund-- Stock Market Balanced Bond Global
Total Fund 3 Yrs. Fund Fund Fund Fund Fund Loans
----- ------- ------- ------ ------- ------- ----- ------ -----
(In thousands)
Investment income:
Cash dividends . . . . $ 53,552 $ 53,552 $ -- $ -- $ -- $ -- $ -- $ -- $ --
Interest from:
Participant loans . 4,476 3,606 -- 297 152 134 35 252 --
Investments . . . . 4,045 203 1,082 6 2,743 5 1 5 --
--------- -------- ------- ------- ------- ------- ------ ------ -------
62,073 57,361 1,082 303 2,895 139 36 257 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Management fee . . . . . (991) -- -- (1) -- (366) (75) (549) --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Net investment income
(loss). . . . . . . 61,082 57,361 1,082 302 2,895 (227) (39) (292) --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Change in value of
investments:
Realized gain (loss) . 9,829 (11,344) -- 19,756 -- 424 72 921 --
Unrealized gain
(loss). . . . . . . (232,460) (214,330) -- (18,236) -- (206) 110 202 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
(222,631) (225,674) -- 1,520 -- 218 182 1,123 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Contributions:
Employer, including
forfeitures . . . . 21,307 15,541 -- 1,920 1,007 986 272 1,581 --
Participants . . . . . 69,971 50,738 -- 6,385 3,236 3,277 879 5,456 --
ESOP transfers . . . . 130,332 130,332 -- -- -- -- -- -- --
---------- -------- ------- ------- ------- ------- ------ ------- -------
221,610 196,611 -- 8,305 4,243 4,263 1,151 7,037 --
---------- -------- ------- ------- ------- ------- ------ ------- -------
Total net investment
income, change in
value of invest-
ments, and
contributions . . 60,061 28,298 1,082 10,127 7,138 4,254 1,294 7,868 --
---------- -------- ------- ------- ------- ------- ------ ------- -------
Deductions:
Distributions to
Participants
or their
beneficiaries . . . 40,548 23,106 1,166 3,740 5,529 2,942 1,082 2,983 --
Employer contributions
and earnings
forfeited . . . . . 153 86 1 29 12 15 2 8 --
Loans to Participants
net of repayments
and loan defaults
of $1,214 . . . . . 1,214 7,245 -- 1,137 824 565 154 601 (9,312)
---------- ------- ------- ------- ------- ------- ------ ------- -------
41,915 30,437 1,167 4,906 6,365 3,522 1,238 3,592 (9,312)
---------- ------- ------- ------- ------- ------- ------ ------- -------
Interfund
conversions. . . . . . -- (75,498)(25,615) 14,160 38,327 8,415 (1,624) 41,835 --
---------- -------- ------- ------- ------- ------- ------ ------- -------
Increase (Decrease)
in Plan equity
for the year . . . . . 18,146 (77,637)(25,700) 19,381 39,100 9,147 (1,568) 46,111 9,312
Plan equity, at market
value, beginning
of year. . . . . . . . 1,241,805 883,256 40,137 92,518 41,459 58,885 19,262 49,801 56,487
---------- -------- ------- ------- ------- ------- ------- ------- -------
Plan equity, at market
value, end of year . . $1,259,951 $805,619 $14,437 $111,899 $80,559 $68,032 $17,694 $95,912 $65,799
========== ======== ======= ======== ======= ======= ======= ======= =======
The accompanying notes are an integral part of these financial statements.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1993
Edison Guaranteed
Int'l Income Common Money
Stock Fund-- Stock Market Balanced Bond Global
Total Fund 3 Yrs. Fund Fund Fund Fund Fund Loans
----- ------- ------- ------ ------- ------- ----- ------ -----
(In thousands)
Investment income:
Cash dividends . . . . $ 56,701 $ 53,040 $ -- $ 1,280 $ -- $ 1,513 $ 868 $ -- $ --
Interest from:
Participant loans . 1,778 1,561 -- 91 56 29 12 29 --
Investments . . . . 4,496 217 2,973 33 1,224 22 13 14 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
62,975 54,818 2,973 1,404 1,280 1,564 893 43 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Management fee . . . . . (52) -- -- (46) -- -- (6) -- --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Net investment
income . . . . . . . 62,923 54,818 2,973 1,358 1,280 1,564 887 43 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Change in value of
investments:
Realized gain
(loss) . . . . . . . 65,340 43,894 -- 5,121 -- 14,959 1,367 (1) --
Unrealized gain
(loss) . . . . . . . (150,753) (148,688) -- 2,020 -- (7,378) (43) 3,336 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
(85,413) (104,794) -- 7,141 -- 7,581 1,324 3,335 --
---------- -------- ------- ------- ------- ------- ------ ------ -------
Contributions:
Employer, including
forfeitures. . . . . 21,910 17,851 33 1,722 898 796 316 294 --
Participants . . . . . 72,162 58,520 132 5,786 2,224 3,187 1,315 998 --
ESOP transfers . . . . 163,063 163,063 -- -- -- -- -- -- --
---------- -------- ------- ------- ------- ------- ------ ------- -------
257,135 239,434 165 7,508 3,122 3,983 1,631 1,292 --
---------- -------- ------- ------- ------- ------- ------ ------- -------
Total net investment
income, change in
value of invest-
ments, and
contributions. . . 234,645 189,458 3,138 16,007 4,402 13,128 3,842 4,670 --
---------- -------- ------- ------- ------- ------- ------ ------- -------
Deductions:
Distributions to
Participants
or their
beneficiaries. . . . 40,470 30,478 2,357 1,704 3,292 1,955 462 222 --
Employer contributions
and earnings
forfeited. . . . . . 124 85 7 16 11 3 1 1 --
Loans to Participants
net of repayments
and loan defaults
of $149. . . . . . . 149 47,531 -- 4,031 1,604 2,235 1,057 178 (56,487)
---------- ------- ------- ------- ------- ------- ------ ------- -------
40,743 78,094 2,364 5,751 4,907 4,193 1,520 401 (56,487)
---------- ------- ------- ------- ------- ------- ------ ------- -------
Interfund
conversions. . . . . . -- (35,435) (6,603) 3,745 6,639 (12,986) (892) 45,532 --
---------- -------- ------- ------- ------- ------- ------ ------- -------
Increase (Decrease)
in Plan equity
for the year . . . . . 193,902 75,929 (5,829) 14,001 6,134 (4,051) 1,430 49,801 56,487
Plan equity, at market
value, beginning
of year. . . . . . . . 1,047,903 807,327 45,966 78,517 35,325 62,936 17,832 -- --
---------- -------- ------- ------- ------- ------- ------- ------- -------
Plan equity, at market
value, end of year . . $1,241,805 $883,256 $40,137 $92,518 $41,459 $58,885 $19,262 $49,801 $56,487
========== ======== ======= ======= ======= ======= ======= ======= =======
The accompanying notes are an integral part of these financial statements.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 1. Nature of Plan and Summary of Significant Accounting Policies
Nature of Plan
The Southern California Edison Company Stock Savings Plus Plan (Plan)
is a defined-contribution plan established for the benefit of qualifying
employees (Participants) of Edison International (formerly SCEcorp) and
its subsidiary companies, including Southern California Edison Company
(Plan Sponsor). The Plan is funded by Participant wage deferrals of up
to 15% of base pay, subject to statutory limits, which are matched by
employer contributions of one-half of the Participant's wage deferral up
to 6%. Participants vest in employer matching contributions upon
completing five years of service with Edison International or its
subsidiary companies. Plan assets are held in trust for the benefit of
Participants and their beneficiaries.
Participants may direct the investment of their contributions, the
employer's matching contributions, and the earnings on those contributions
into any of six investment funds. One additional fund (the Guaranteed
Income Fund) is being phased out and accepts no further investments. One
of the investment funds holds stock of the Plan Sponsor's parent holding
company (Edison International). Participants investing in that fund are
entitled to exercise voting rights attributable to the shares allocated
to their account, and are notified by First Interstate Bank of California
(Trustee) prior to the time such rights are to be exercised. The Trustee
may vote any shares for which instructions have not been given by the
Participant.
The Plan is designed to comply with Section 401(a) of the Internal
Revenue Code of 1986 (IRC) and applicable regulations thereunder. The
Plan is exempt from taxation under Section 501(a) of the IRC and meets the
requirements applicable to deferred compensation arrangements under
Section 401(k) of the IRC. Distributions from qualified plans are taxable
to recipients under the provisions of Section 402 of the IRC. The
Internal Revenue Service has determined and informed the Plan Sponsor, by
letter dated June 5, 1995, that the Plan and related Trust are designed
in accordance with applicable sections of the IRC. Although the Plan has
been amended since receiving the determination letter, the Plan
administrator and the Plan's tax counsel believe that the Plan continues
to be designed and operated in compliance with the applicable requirements
of the IRC.
Although it has not expressed an intent to do so, the Plan Sponsor has
the right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of the Employee Retirement
Income Security Act. In the event of Plan termination, Participants will
become fully vested in their accounts. The Trust will continue after
termination until all Trust assets have been distributed to Participants
and their beneficiaries.
Summary of Significant Accounting Policies
Basis of Accounting
The financial statements are presented on the accrual basis of
accounting and in conformance with generally accepted accounting
principles as they pertain to employee benefit plans.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1. Nature of Plan and Summary of Significant Accounting Policies
(Continued)
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value except for its
guaranteed income contract, which is stated at the value of the contract
with an insurance company.
Purchases and sales of Edison International common stock are recorded
on a trade-date basis. Both realized and unrealized gains and losses are
measured on historical cost.
Interest income is recorded on the accrual basis. Dividends are
recorded on the record date.
Derivatives
To the extent permitted by the Trust Agreement, fund managers may
participate in various derivative-based transactions. Derivative
securities are instruments or agreements whose value is derived from an
underlying security or index. They include but are not limited to
options, futures, swaps, forwards, structured notes and stripped
securities. These instruments offer unique characteristics and risks that
assist the fund managers to meet their investment strategies.
Fund managers typically use derivatives in three ways: cash
equitization; hedging; and return enhancement. Cash equitization is a
technique that may be used by certain funds through options and futures
to earn "market-like" returns with excess and liquidity reserve cash
balances. Hedging is used in some funds to limit or control risks, such
as adverse movements in exchange rates and interest rates. Return
enhancement may be achieved by purchasing certain instruments which more
effectively achieve the desired portfolio characteristics that allow the
fund to meet its investment objectives. Depending on how the derivatives
are utilized and their structure, the risks associated with them may vary
widely. These risks are generally categorized as market risk, liquidity
risk and counterparty or credit risk.
None of the Plan's investment funds are considered to be utilizing
derivatives to a material degree.
Payment of Benefits
Benefits are recorded when paid.
Note 2. Investment Program
The Trustee has invested all contributions in accordance with
Participant instructions. Funds not immediately allocated to investment
funds are invested by the Trustee in certain short-term investments.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 2. Investment Program (Continued)
The investment options available to Participants were changed effective
July 1, 1993. Participants with an accumulated balance in the Plan have
the ability each month to allocate their account balances among various
investment options in addition to the common stock of Edison International
(Edison International Stock Fund).
Collective investment in the Edison International Stock Fund consisted
of 111,261,609 units at a unit value of $7.9049 as of December 31, 1995.
Actual shares held by the fund were 48,501,813, at a market price of
$17.625 per share at December 31, 1995; additionally, the Fund held
$24,633,000 in cash and cash equivalents. Share figures reflect the two-
for-one split of Edison International common stock effective June 1, 1993.
The other investment options available as of December 31, 1995, were:
(a) Guaranteed Income Fund -- 3 years -- (Discontinued with respect to new
contributions effective April 1, 1993.) The value of the insurance
contract as of December 31, 1995, was $1,924,000. The contract is with
Hartford Life Insurance Company and has an interest rate of 4.61% and
a term of April 1, 1993, to March 31, 1996.
(b) Common Stock Fund -- Collective investment in the BZW Barclay's Global
Investors Equity Index Fund consisting of 13,617,250 units at a unit
value of $14.7136 as of December 31, 1995. As of December 31, 1995,
management of the Common Stock fund was transferred from Wells Fargo
Bank, which managed the Wells Fargo Bank Equity Index Fund, to
Barclay's Bank, which manages the current fund.
Interim unit participation and net asset value per unit were as
follows:
Date Units participating Unit Value
---- ------------------- ----------
March 31, 1995 10,425,331 $11.7417
June 30, 1995 10,939,747 $12.8578
September 30, 1995 11,336,233 $13.8817
(c) Money Market Fund -- Collective investment in the First Interstate
Bank Short-Term Income Fund consisting of 9,138,074 units at a unit
value of $11.3024 as of December 31, 1995.
Interim unit participation and net asset value per unit were as
follows:
Date Units participating Unit Value
---- ------------------- ----------
March 31, 1995 7,939,487 $10.8182
June 30, 1995 8,793,222 $10.9833
September 30, 1995 9,015,467 $11.1425
(d) Balanced Fund -- Collective investment in the Vanguard Group
Wellington Fund was discontinued effective July 1, 1993 and was
replaced with a collective investment in the Frank Russell Trust
Company Funds consisting of 8,114,727 units at a unit value of
$13.7404 as of December 31, 1995.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 2. Investment Program (Continued)
Interim unit participation and net asset value per unit were as
follows:
Date Units participating Unit Value
---- ------------------- ----------
March 31, 1995 5,926,112 $11.6537
June 30, 1995 6,217,183 $12.4994
September 30, 1995 6,524,439 $13.2193
(e) Bond Fund -- Collective investment in the Wells Fargo Bond Index Fund
was discontinued effective July 1, 1993 and was replaced with a
collective investment in the Frank Russell Trust Company Short-Term
Bond Fund consisting of 2,334,567 units at a unit value of $11.7756
as of December 31, 1995.
Interim unit participation and net asset value per unit were as
follows:
Date Units participating Unit Value
---- ------------------- ----------
March 31, 1995 1,667,135 $10.9595
June 30, 1995 1,831,842 $11.3189
September 30, 1995 2,024,176 $11.4848
(f) Global Fund -- Collective investment in three Frank Russell Trust
Company Equity-Based Funds (effective July 1, 1993) consisting of
10,733,642 units at a unit value of $14.1267 as of December 31, 1995.
Interim unit participation and net asset value per unit were as
follows:
Date Units participating Unit Value
---- ------------------- ----------
March 31, 1995 8,101,769 $11.7767
June 30, 1995 8,176,434 $12.6136
September 30, 1995 8,641,334 $13.6284
The number of Participant accounts in each fund was as follows:
December 31,
-----------------------------------
1995 1994 1993
------ ------ ------
Edison International Stock Fund. . . . . . . . . . . . . 15,471 16,738 16,975
Guaranteed Income Fund - 3 years . . . . . . . . . . . . 547 1,016 1,492
Common Stock Fund. . . . . . . . . . . . . . . . . . . . 6,702 5,332 4,501
Money Market Fund. . . . . . . . . . . . . . . . . . . . 3,804 3,606 2,832
Balanced Fund. . . . . . . . . . . . . . . . . . . . . . 4,236 3,060 2,257
Bond Fund. . . . . . . . . . . . . . . . . . . . . . . . 1,709 1,299 1,071
Global Fund. . . . . . . . . . . . . . . . . . . . . . . 5,582 4,253 2,220
The conversion of the Participants' investment from the Edison
International Stock Fund to all other funds is valued at the month-end
closing price. The conversion of Participants' investment from all other
funds to the Edison International Stock Fund, or to any other fund is
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 2. Investment Program (Continued)
based on the actual market value balance (including earnings and market
adjustments) in each Participant's account, as of the date of conversion.
As of January 1, 1996, Plan Participants elected to reallocate their
investment fund balances as indicated in the table below. In order to
reflect year-end market values for the January 1, 1996, conversion, the
Trustee converted securities necessary to reflect "post-allocation"
investment distributions prior to December 31, 1995. The post-allocation
amounts are not allocated to Plan Participants until January 1, 1996.
January 1, 1996
-------------------------------
Pre- Post-
Allocation Allocation
---------- ----------
(In thousands)
Fund balances, at market value:
Edison International Stock Fund. . . . . . . . . . . . . . . . . . $ 879,478 $ 856,362
Guaranteed Income Fund - 3 years . . . . . . . . . . . . . . . . . 3,473 1,924
Common Stock Fund. . . . . . . . . . . . . . . . . . . . . . . . . 208,925 218,381
Money Market Fund. . . . . . . . . . . . . . . . . . . . . . . . . 102,787 106,762
Balanced Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . 115,555 119,851
Bond Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,259 29,432
Global Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,116 162,881
---------- ----------
$1,495,593 $1,495,593
========== ==========
Effective June 1, 1993, the Plan offered a loan option to Participants.
As of December 31, 1995, 7,871 Participants had loans outstanding. Loans
are funded from the Participant's vested balance and repaid through
payroll deductions. The interest rate charged is the Wall-Street-Journal-
published prime plus 1%. At December 31, 1995, the loan interest rate was
9.75%.
Note 3. Unrealized Market Appreciation (Depreciation)
Unrealized market appreciation or depreciation of units in the Edison
International Stock Fund, Common Stock Fund, Balanced Fund, Global Fund,
and Bond Fund held by the Plan is the difference between the acquisition
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 3. Unrealized Market Appreciation (Depreciation) (Continued)
cost and the market value of such investments. Unrealized market
appreciation or depreciation at the beginning of each year is reconciled
to the unrealized market appreciation or depreciation at the end of each
year, by fund, as follows:
Unrealized Realized (Gain)/Loss
Market ------------------------ Unrealized
Appreciation Increase Market
(Depreciation), (Decrease) Transfer Withdrawals Appreciation
Beginning of in Value of from and Interfund (Depreciation),
Year Investments ESOP Forfeitures Conversions End of Year
------------- ----------- -------- ----------- ------------ -------------
(In thousands)
Year ended December 31, 1995:
Edison International
Stock Fund . . . . . $(69,171) $154,065 $ -- $ (3,929) $ (4,942) $ 76,023
Common Stock Fund. . . 5,253 44,547 -- (171) (82) 49,547
Balanced Fund. . . . . 2,772 17,906 -- (305) (90) 20,283
Bond Fund. . . . . . . 548 2,285 -- (53) 5 2,785
Global Fund. . . . . . 3,538 25,519 -- (461) (335) 28,261
-------- -------- -------- -------- -------- --------
Total. . . . . . . . $(57,060) $244,322 $ -- $ (4,919) $ (5,444) $176,899
======== ======== ======== ======== ======== ========
Year ended December 31, 1994:
Edison International
Stock Fund . . . . $123,126 $(225,674) $ 22,033 $ 600 $ 10,744 $(69,171)
Common Stock Fund. . 23,489 1,520 -- (151) (19,605) 5,253
Balanced Fund. . . . 2,978 218 -- (370) (54) 2,772
Bond Fund. . . . . . 438 182 -- (31) (41) 548
Global Fund. . . . . 3,336 1,123 -- (983) 62 3,538
-------- -------- -------- ------- -------- --------
Total. . . . . . . . $153,367 $(222,631) $ 22,033 $ (935) $ (8,894) $(57,060)
======== ======== ======== ======= ======== ========
Year ended December 31, 1993:
Edison International
Stock Fund . . . . . $197,033 $(104,794) $ 74,781 $(7,707) $(36,187) $123,126
Common Stock Fund. . . 21,469 7,141 -- (35) (5,086) 23,489
Balanced Fund. . . . . 10,356 7,581 -- (75) (14,884) 2,978
Bond Fund. . . . . . . 481 1,324 -- (12) (1,355) 438
Global Fund. . . . . . -- 3,335 -- 1 -- 3,336
-------- --------- -------- -------- -------- --------
Total. . . . . . . . $229,339 $ (85,413) $ 74,781 $(7,828) $(57,512) $153,367
======== ========= ======== ======== ======== ========
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 4. Distributions and Forfeitures
The balances in the accounts of Participants withdrawing from the Plan
during 1995, 1994 and 1993, and amounts disbursed to such Participants in
settlement thereof, were as follows:
Cash and
Securities Non-Vested
Balances in Disbursed in Portion of
Participants' Settlement of Balances
Accounts Withdrawals Forfeited
------------ ------------- -----------
(In thousands)
Year Ended December 31, 1995:
At average cost:
Edison International Stock Fund. . . . . . . . . $ 61,758 $ 61,584 $174
All other funds. . . . . . . . . . . . . . . . . 40,448 40,292 156
-------- -------- ----
Total at cost. . . . . . . . . . . . . . . . . $102,206 $101,876 $330
======== ======== ====
At market value:
Edison International Stock Fund. . . . . . . . . $ 65,687 $ 65,518 $169
All other funds. . . . . . . . . . . . . . . . . 41,438 41,276 162
-------- -------- ----
Total at market value. . . . . . . . . . . . . $107,125 $106,794 $331
======== ======== ====
Year Ended December 31, 1994:
At average cost:
Edison International Stock Fund. . . . . . . . . $23,792 $23,677 $115
All other funds. . . . . . . . . . . . . . . . . 15,974 15,913 61
------- ------- ----
Total at cost. . . . . . . . . . . . . . . . . $39,766 $39,590 $176
======= ======= ====
At market value:
Edison International Stock Fund. . . . . . . . . $23,192 $23,106 $86
All other funds. . . . . . . . . . . . . . . . . 17,509 17,442 67
------- ------- ----
Total at market value. . . . . . . . . . . . . $40,701 $40,548 $153
======= ======= ====
Year Ended December 31, 1993:
At average cost:
Edison International Stock Fund. . . . . . . . . $22,856 $22,777 $ 79
All other funds. . . . . . . . . . . . . . . . . 9,910 9,871 39
------- ------- ----
Total at cost. . . . . . . . . . . . . . . . . $32,766 $32,648 $118
======= ======= ====
At market value:
Edison International Stock Fund. . . . . . . . . $30,563 $30,478 $ 85
All other funds. . . . . . . . . . . . . . . . . 10,031 9,992 39
------- ------- ----
Total at market value. . . . . . . . . . . . . $40,594 $40,470 $124
======= ======= ====
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 4. Distributions and Forfeitures (Continued)
"All other funds" include: (a) the Guaranteed Income Fund -- 3 years,
(b) the Common Stock Fund, (c) the Money Market Fund, (d) the Balanced
Fund (e) the Bond Fund and (f) the Global Fund. The detail of the
distributions by fund is reflected, at market, in the accompanying
Statements of Income and Changes in Plan Equity for the years ended
December 31, 1995, 1994 and 1993.
The cost of funds reflects the increase due to diversification. Each
time funds are diversified, the market value of the funds invested becomes
the new cost. Thus, the cost basis is adjusted to the market value of the
previous fund prior to transfer.
Employer contributions are reduced by the difference between the
balances of the Participants' accounts (so calculated) and the amounts
disbursed in settlement thereof (so calculated). For purposes of the
Plan, this difference is deemed to be the funds forfeited by withdrawing
Participants.
Participant withdrawals which are settled in cash are funded through
sales of investments being distributed. Therefore, the market values
reflected in the preceding table represent the proceeds received by the
Plan upon disposition.
Note 5. Plan Equity
Included in Plan equity as of December 31, 1995, and 1994, are
distributions and withdrawals which Participants had elected to receive
but were not yet paid.
The December 31, 1995, distributions and withdrawals reconcile Plan
equity between the Department of Labor Form 5500 (Annual Return/Report of
Employee Benefit Plan) and the financial statements as follows:
(In thousands)
--------------
Edison International Stock Fund:
Edison International common stock, at market value
(194,846 shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,434
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,462
All other funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,359
----------
Amounts allocated to withdrawing Participants. . . . . . . . . . . . . . . . . . 10,255
Plan equity per Form 5500. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,532,495
----------
Plan equity per financial statements . . . . . . . . . . . . . . . . . . . . . . $1,542,750
==========
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 5. Plan Equity (Continued)
Benefits paid to Participants for the year ended December 31, 1995,
per the financial statements reconciles to the Form 5500 as follows:
(In thousands)
--------------
Benefits paid to Participants per the financial
statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,794
Amounts allocated to withdrawing Participants at
December 31, 1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,255
--------
Benefits paid to Participants per Form 5500. . . . . . . . . . . . . . . . . . . $117,049
========
Note 6. Related Party Transactions
The Money Market Fund is managed by First Interstate Bank, which also
serves as the Plan's Trustee. As such, transactions in the Money Market
Fund qualify as party-in-interest transactions. Fees earned by First
Interstate Bank in its capacity as fund manager for the Plan were
$196,000, $134,000, and $74,000 for 1995, 1994 and 1993, respectively.
Such fees are reported net of interest from investments on the Statement
of Income and Changes in Plan Equity.
Note 7. Amendments to the Plan
The Company elected in 1993 to amend the Plan to accept the systematic
transfer of amounts from the Employee Stock Ownership Plan (ESOP); the
remaining balance in the ESOP was transferred in 1994 and the ESOP was
terminated. The transfers resulted in an increase in net assets of $130
million and $163 million in 1994 and 1993, respectively.
The Plan was amended in 1993 to provide a Participant loan feature, to
provide for monthly processing of Plan transactions instead of quarterly,
to change the investment funds as described in Note 2, and to make certain
other administrative changes.
The Plan was amended and restated in 1994 to adopt changes required by
the Tax Reform Act of 1986 and various other laws.
Effective July 1, 1995, the Plan was amended to provide that a rehired
retiree may participate in the Plan. Effective January 1, 1996, the Plan
was amended to change the computation period for purposes of vesting from
an anniversary year to a calendar year; to clarify when a forfeiture
occurs upon termination of employment; and to provide for continuation of
loan amortization for non-represented Participants who are severed under
a severance program maintained by Edison International or its subsidiary
companies. Effective March 1, 1996, continued loan amortization was also
extended to non-represented Participants who retire under the terms of the
qualified retirement plan.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the plan) have duly caused
this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
SOUTHERN CALIFORNIA EDISON COMPANY
STOCK SAVINGS PLUS PLAN
By Emiko Banfield
----------------------------------------------
Emiko Banfield
Chair
Employee Benefits/Health Care Committee
March 27, 1996
EXHIBIT INDEX
Exhibit
Number Description
1 Summary Annual Report of Southern California Edison Company Stock
Savings Plus Plan for the year ended December 31, 1994.
2 Consent of Independent Public Accountants.