Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to 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 (see Note 4 for a discussion of fair value of the trust investments):



	Longest Maturity Dates	Amortized Cost				Fair Value
(in millions)	Longest Maturity Dates	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Stocks	—	*		$	236	$	1,520	$	1,596
Municipal bonds	2054	636		643		740		768
U.S. government and agency securities	2067	1,259		1,235		1,331		1,319
Corporate bonds	2057	593		579		644		643
Short-term investments and receivables/payables¹	One-year	95		110		99		114
Total		$	2,583	$	2,803	$	4,334	$	4,440


*	Effective January 1, 2018, SCE adopted an accounting standards update related to the classification and measurement of financial instruments in which equity investments are measured at fair value. See Note 1 for further information.


¹	Short-term investments include $37 million and $29 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 2, 2018 and January 2, 2018 as of March 31, 2018 and December 31, 2017, respectively.

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.5 billion and $1.6 billion at March 31, 2018 and December 31, 2017, respectively, and other-than-temporary impairments of $159 million and $143 million at the respective periods.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains at March 31, 2018 were $375 million. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion at March 31, 2018.

For the three months ended March 31, 2018 and 2017, gross realized gains were $61 million and $99 million, respectively, and gross realized losses were $8 million and $16 million, respectively. Unrealized losses, net of gains, for equity securities were $63 million and unrealized gains, net of losses, for equity securities were $20 million for the three months ended March 31, 2018 and 2017, respectively. Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.

Sale of SoCore Energy

On February 28, 2018, Edison International agreed to sell SoCore Energy to a third party, subject to the completion of closing conditions, which were satisfied April 16, 2018. As a result, Edison International accounted for the assets and liabilities of SoCore Energy as held for sale as of March 31, 2018 and recognized a pre-tax loss of $66 million ($48 million after-tax). The following table summarizes the assets and liabilities held for sale at March 31, 2018:



(in millions)	March 31, 2018
Assets:
Cash and cash equivalents	$	18
Short-term restricted cash	25
Receivables	6
Non-utility property, plant and equipment¹	203
Other assets	18
Total assets of business held for sale	$	270
Liabilities:
Accounts payable	$	1
Accrued liabilities	4
Debt obligations	82
Other liabilities	27
Noncontrolling interest (NCI)	28
Total liabilities and NCI of business held for sale¹	$	142


¹	During the first quarter of 2018, the carrying value of assets and liabilities was adjusted to fair value less transaction costs, which resulted in a pre-tax loss of $66 million recorded in "Impairment and other charges" in Edison International's consolidated income statements.