Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

The cash equivalents were as follows:



	Edison International				SCE
	December 31,
(in millions)	2018		2017		2018		2017
Money market funds	$	116	$	1,024	$	1	$	483

Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:



	Edison International				SCE
	December 31,
(in millions)	2018		2017		2018		2017
Book balances reclassified to accounts payable	$	65	$	64	$	65	$	63

Cash, Cash Equivalents and Restricted Cash

The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:



(in millions)	December 31, 2018		December 31, 2017
Edison International:
Cash and cash equivalents	$	144	$	1,091
Short-term restricted cash ¹	8		40
Long-term restricted cash ²	—		1
Total cash, cash equivalents, and restricted cash	$	152	$	1,132
SCE:
Cash and cash equivalents	$	21	$	515
Short-term restricted cash¹	1		—
Total cash, cash equivalents, and restricted cash	$	22	$	515


¹	Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.


²	Reflected in "Other long-term assets" on Edison International's consolidated balance sheets.

Estimated Useful Lives (Authorized by the CPUC) and Weighted-Average Useful Lives of Property, Plant and Equipment

Estimated useful lives (authorized by the CPUC in the 2015 GRC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows:



	Estimated Useful Lives	Weighted-Average Useful Lives
Generation plant	10 years to 54 years	37 years
Distribution plant	20 years to 60 years	43 years
Transmission plant	40 years to 65 years	52 years
General plant and other	5 years to 60 years	22 years

Reconciliation of the Changes in ARO Liability

The following table summarizes the changes in SCE's ARO liability:



	December 31,
(in millions)	2018			2017
Beginning balance	$	2,892		$	2,586
Accretion¹	169			166
Revisions	110			376
Liabilities settled	(140		)	(236		)
Ending balance	$	3,031		$	2,892


¹	An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting.

Amortization of Deferred Financing Costs

Amortization of deferred financing costs charged to interest expense is as follows:



	Edison International						SCE
	Years ended December 31,
(in millions)	2018		2017		2016		2018		2017		2016
Amortization of deferred financing costs charged to interest expense	$	30	$	30	$	31	$	26	$	27	$	27

EPS Attributable to Edison International Common Shareholders

EPS attributable to Edison International common shareholders was computed as follows:



	Years ended December 31,
(in millions, except per-share amounts)	2018			2017		2016
Basic (loss) earnings per share – continuing operations:
(Loss) income from continuing operations attributable to common shareholders	$	(457	)	$	565	$	1,299
Participating securities dividends	—			—		—
(Loss) income from continuing operations available to common shareholders	$	(457	)	$	565	$	1,299
Weighted average common shares outstanding	326			326		326
Basic (loss) earnings per share – continuing operations	$	(1.40	)	$	1.73	$	3.99
Diluted (loss) earnings per share – continuing operations:
(Loss) income from continuing operations attributable to common shareholders	$	(457	)	$	565	$	1,299
Participating securities dividends	—			—		—
(Loss) income from continuing operations available to common shareholders	$	(457	)	$	565	$	1,299
Income impact of assumed conversions	—			—		1
(Loss) income from continuing operations available to common shareholders and assumed conversions	$	(457	)	$	565	$	1,300
Weighted average common shares outstanding	326			326		326
Incremental shares from assumed conversions¹	—			2		4
Adjusted weighted average shares – diluted	326			328		330
Diluted (loss) earnings per share – continuing operations	$	(1.40	)	$	1.72	$	3.94


¹	Due to the loss reported for the year ended December 31, 2018, incremental shares were not included as the effect would be antidilutive.