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Income Taxes
 3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
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
 
Three months ended March 31,
(in millions)
2018
 
2017
 
2018
 
2017
Edison International:
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
211

 
$
352

 
$
310

 
$
392

Provision for income tax at federal statutory rate of 21% and 35%, respectively 1
44

 
124

 
65

 
137

Increase in income tax from:
 

 
 
 
 

 
 
State tax, net of federal benefit
(5
)
 
10

 
1

 
13

Property-related
(69
)
 
(113
)
 
(69
)
 
(113
)
Change related to uncertain tax positions
—

 
(12
)
 
(1
)
 
(11
)
Shared-based compensation2
—

 
(43
)
 
—

 
(8
)
Other
(1
)
 
(6
)
 
(2
)
 
(6
)
Total income tax (benefit) expense from continuing operations
$
(31
)
 
$
(40
)
 
$
(6
)
 
$
12

Effective tax rate
(14.7
)%
 
(11.4
)%
 
(1.9
)%
 
3.1
%

1 
In December 2017, Tax Reform was signed into law. This comprehensive reform of tax law reduces the federal corporate income tax rate from 35% to 21%, effective January 1, 2018.
2 Includes state taxes for Edison International and SCE of $6 million and $1 million, respectively, for the three months ended March 31, 2017.
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. For further information, see Note 10 included in the 2017 Form 10-K.
Unrecognized Tax Benefits
 The following table provides a reconciliation of unrecognized tax benefits:

Edison International
 
SCE
(in millions)
2018
 
2017
 
2018
 
2017
Balance at January 1,
$
432

 
$
471

 
$
331

 
$
371

Tax positions taken during the current year:
 
 
 
 
 
 
 
   Increases
8

 
10

 
8

 
10

Tax positions taken during a prior year:
 
 
 
 
 
 
 
   Increases
—

 
2

 
—

 
2

   Decreases
(3
)
 
(10
)
 
(3
)
 
(10
)
   Decreases for settlements during the period1
—

 
(82
)
 
—

 
(78
)
Balance at March 31,
$
437

 
$
391

 
$
336

 
$
295


1 In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012.
Tax Disputes
In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012. Edison International has previously made cash deposits to cover the estimated tax and interest liability from this audit cycle and expects a $7 million refund of this deposited amount.
Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2014 – 2016 and 2010 – 2016, respectively. Edison International has settled all open tax position with the IRS for taxable years prior to 2013. 
Tax years 1994 – 2006 are currently in settlement negotiations with the California Franchise Tax Board. While we expect to resolve these tax years within the next twelve months, the impacts cannot be reasonably estimated until further progress has been made. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board.