Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

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
	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.

Reconciliation of 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.