Compensation and Benefit Plans

3 Months Ended

Mar. 31, 2013

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Compensation and Benefit Plans

Compensation and Benefit Plans

Pension Plans

Edison International and SCE made contributions of $54 million and $45 million, respectively, during the three months ended March 31, 2013 and expect to make $153 million and $137 million, respectively, during the remainder of 2013. Annual contributions made 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.

Expense components are:

	Edison International						SCE
	Three months ended March 31,
(in millions)	2013			2012			2013			2012
Service cost	$	38		$	38		$	37		$	37
Interest cost	42			46			41			45
Expected return on plan assets	(57		)	(56		)	(57		)	(55		)
Amortization of prior service cost	1			1			1			1
Amortization of net loss1	15			17			14			15
Expense under accounting standards	$	39		$	46		$	36		$	43
Regulatory adjustment (deferred)	17			25			17			25
Total expense recognized	$	56		$	71		$	53		$	68

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $3 million and $2 million, respectively, for the three months ended March 31, 2013.

Postretirement Benefits Other Than Pensions

Edison International and SCE both made contributions of $5 million during the three months ended March 31, 2013 and expect to make $25 million during the remainder of 2013. Annual contributions 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. Benefits under these plans, with some exceptions, are generally unvested and subject to change.

Expense components are:

	Edison International						SCE
	Three months ended March 31,
(in millions)	2013			2012			2013			2012
Service cost	$	14		$	12		$	13		$	12
Interest cost	26			28			26			28
Expected return on plan assets	(30		)	(27		)	(30		)	(27		)
Amortization of prior service credit	(9		)	(9		)	(9		)	(9		)
Amortization of net loss1	7			12			7			11
Total expense	$	8		$	16		$	7		$	15

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was less than $1 million and zero, respectively, for the three months ended March 31, 2013.

Workforce Reduction

In 2012, SCE commenced multiple efforts to reduce its workforce in order to reflect SCE's strategic direction to optimize its cost structure, moderate customer rate increases and align its cost structure with its peers. The following table provides a summary of changes in the accrued severance liability associated with these reductions:

(in millions)
Balance at January 1, 2013	$	104
Additions	16
Payments	(61		)
Balance at March 31, 2013	$	59

The liability presented in the table above is reflected in "Other current liabilities" on the consolidated balance sheets. The severance costs are included in "Operation and maintenance" on the consolidated income statements.