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Compensation and Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Pension and Other Postretirement Benefits  
Employee Savings Plan Employer Contributions
The following employer contributions were made for continuing operations:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2018
$
74

 
$
74

2017
70

 
69

2016
69

 
68
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table summarizes total expense and tax benefits associated with stock based compensation:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Stock-based compensation expense1:
 
 
 
 
 
 
 
 
 
 
 
   Stock options
$
11

 
$
14

 
$
14

 
$
6

 
$
8

 
$
7

   Performance shares
1

 
2

 
13

 
1

 
2

 
6

   Restricted stock units
7

 
6

 
6

 
4

 
3

 
3

   Other
2

 
1

 
1

 
—

 
—

 
—

Total stock-based compensation expense
$
21

 
$
23

 
$
34

 
$
11

 
$
13

 
$
16

Income tax benefits related to stock compensation expense
$
6

 
$
72

 
$
41

 
$
3

 
$
15

 
$
20

1 
Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income.
Black-Sholes Option-Pricing Model Assumptions
The Black-Scholes option-pricing model requires various assumptions noted in the following table:
 
Years ended December 31,
 
2018
 
2017
 
2016
Expected terms (in years)
5.7
 
5.7
 
5.9
Risk-free interest rate
2.6% - 3.0%
 
2.1% - 2.3%
 
1.2% – 2.2%
Expected dividend yield
3.6% - 4.3%
 
2.7% - 3.8%
 
2.5% – 3.0%
Weighted-average expected dividend yield
3.8%
 
2.7%
 
2.9%
Expected volatility
20.9% - 21.9%
 
17.8% - 20.9%
 
17.2% – 17.5%
Weighted-average volatility
20.9%
 
17.9%
 
17.4%
Summary of Stock Options Activity
The following is a summary of the status of Edison International's stock options:
 
 
 
Weighted-Average
 
 
 
Stock options
 
Exercise
Price
 
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic Value
(in millions)
Edison International:
 
 
 
 
 
 
 
Outstanding at December 31, 2017
7,822,565

 
$
58.98

 
 
 
 

Granted
1,785,538

 
60.83

 
 
 
 

Forfeited or expired
(222,392
)
 
69.59

 
 
 
 

Exercised1
(552,101
)
 
47.33

 
 
 
 

Outstanding at December 31, 2018
8,833,610

 
59.81

 
6.13
 
 

Vested and expected to vest at December 31, 2018
8,726,445

 
59.76

 
6.10
 
$
34

Exercisable at December 31, 2018
5,145,292

 
$
54.77

 
4.74
 
$
34

SCE:
 
 
 
 
 
 
 
Outstanding at December 31, 2017
4,445,702

 
$
56.46

 
 
 
 

Granted
960,240

 
60.86

 
 
 
 

Forfeited or expired
(125,260
)
 
68.90

 
 
 
 

Exercised1
(288,302
)
 
41.57

 
 
 
 

Transfers, net
44,805

 
55.74

 
 
 
 
Outstanding at December 31, 2018
5,037,185

 
57.84

 
5.79
 
 

Vested and expected to vest at December 31, 2018
4,982,445

 
57.77

 
5.75
 
$
25

Exercisable at December 31, 2018
3,089,466

 
$
52.15

 
4.33
 
$
25


1 Edison International and SCE recognized tax benefits of $3 million and $2 million, respectively, from stock options exercised in 2018.
Schedule of Unrecognized Compensation Expense
At December 31, 2018, total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows:
(in millions)
Edison International
 
SCE
Unrecognized compensation cost, net of expected forfeitures
$
15

 
$
8

Weighted-average period (in years)
2.4

 
2.2
Supplemental Data on Stock-based Compensation
Supplemental Data on Stock Options
 
Edison International
 
SCE
 
Years ended December 31,
(in millions, except per award amounts)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Stock options:
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value per option granted
$
8.21

 
$
10.65

 
$
7.38

 
$
8.22

 
$
10.63

 
$
7.50

Fair value of options vested
14

 
11

 
11

 
7

 
5

 
5

Value of options exercised
10

 
126

 
84

 
7

 
29

 
41
Summary of Nonvested Share Activity
The following is a summary of the status of Edison International's nonvested performance shares:
 
Shares
 
Weighted-Average
Fair Value
Edison International:
 
 
 
Nonvested at December 31, 2017
179,122

 
$
63.85

Granted
119,345

 
 

Forfeited
(51,281
)
 
 
Vested1
(53,748
)
 
 

Nonvested at December 31, 2018
193,438

 
42.81

SCE:
 
 
 
Nonvested at December 31, 2017
88,722

 
$
64.01

Granted
64,335

 
 

Forfeited
(27,331
)
 
 
Vested1
(24,574
)
 
 

Affiliate transfers, net
706

 
 
Nonvested at December 31, 2018
101,858

 
42.96


1 
Relates to performance shares that will be paid in 2019 as performance targets were met at December 31, 2018.
Summary of Nonvested Restricted Stock Units Activity
The following is a summary of the status of Edison International's nonvested restricted stock units:
 
Edison International
 
SCE
 
Restricted
Stock Units
 
Weighted-Average
Grant Date
Fair Value
 
Restricted
Stock Units
 
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 2017
303,051

 
$
69.52

 
141,418

 
$
69.96

Granted
120,606

 
60.83

 
64,919

 
60.87

Forfeited
(8,225
)
 
68.76

 
(7,973
)
 
68.97

Vested
(123,646
)
 
64.43

 
(51,667
)
 
64.07

Affiliate transfers, net
—

 
—

 
1,129

 
68.64

Nonvested at December 31, 2018
291,786

 
68.11

 
147,826

 
68.08
Pension Plans  
Pension and Other Postretirement Benefits  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan
Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below.
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2018
 
2017
 
2018
 
2017
Change in projected benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
4,179

 
$
4,284

 
$
3,702

 
$
3,791

Service cost
126

 
137

 
121

 
129

Interest cost
141

 
164

 
124

 
144

Actuarial gain
(280
)
 
(46
)
 
(273
)
 
(74
)
Benefits paid
(286
)
 
(360
)
 
(243
)
 
(288
)
Projected benefit obligation at end of year
$
3,880

 
$
4,179

 
$
3,431

 
$
3,702

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
3,616

 
$
3,388

 
$
3,390

 
$
3,172

Actual return on plan assets
(86
)
 
483

 
(86
)
 
442

Employer contributions
77

 
105

 
52

 
64

Benefits paid
(286
)
 
(360
)
 
(232
)
 
(288
)
Fair value of plan assets at end of year
$
3,321

 
$
3,616

 
$
3,124

 
$
3,390

Funded status at end of year
$
(559
)
 
$
(563
)
 
$
(307
)
 
$
(312
)
Amounts recognized in the consolidated balance sheets consist of 1:
 
 
 
 
 
 
 
Long-term assets
$
2

 
$
7

 
$
—

 
$
—

Current liabilities
(29
)
 
(17
)
 
(5
)
 
(4
)
Long-term liabilities
(532
)
 
(553
)
 
(302
)
 
(308
)
 
$
(559
)
 
$
(563
)
 
$
(307
)
 
$
(312
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
Prior service cost
$
(1
)
 
$
(1
)
 
$
—

 
$
—

Net loss1
83

 
77

 
17

 
21

 
$
82

 
$
76

 
$
17

 
$
21

Amounts recognized as a regulatory asset
271

 
271

 
271

 
271

Total not yet recognized as expense
$
353

 
$
347

 
$
288

 
$
292

Accumulated benefit obligation at end of year
$
3,753

 
$
4,022

 
$
3,342

 
$
3,585

Pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
3,880

 
$
4,179

 
$
3,431

 
$
3,702

Accumulated benefit obligation
3,753

 
4,022

 
3,342

 
3,585

Fair value of plan assets
3,321

 
3,616

 
3,124

 
3,390

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
4.19
%
 
3.46
%
 
4.19
%
 
3.46
%
Rate of compensation increase
4.10
%
 
4.10
%
 
4.10
%
 
4.10
%
1 
The SCE liability excludes a long-term payable due to Edison International Parent of $117 million and $114 million at December 31, 2018 and 2017, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $17 million and $21 million at December 31, 2018 and 2017, respectively, excludes net loss of $21 million and $19 million related to these benefits.
Expense Components for Plans
Net periodic pension expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2018
 
2017 3
 
2016 3
 
2018
 
2017 3
 
2016 3
Service cost
$
126

 
$
138

 
$
139

 
$
123

 
$
133

 
$
136

Non-service cost
 
 
 
 
 
 
 
 
 
 
 
  Interest cost
140

 
164

 
172

 
128

 
149

 
156

  Expected return on plan assets
(228
)
 
(212
)
 
(220
)
 
(214
)
 
(199
)
 
(205
)
  Settlement costs1
—

 
6

 
—

 
—

 
—

 
—

  Amortization of prior service cost
3

 
3

 
4

 
3

 
3

 
4

  Amortization of net loss2
9

 
21

 
27

 
6

 
17

 
23

  Regulatory adjustment (deferred)
15

 
(28
)
 
(21
)
 
15

 
(28
)
 
(21
)
Total non-service benefit
$
(61
)

$
(46
)

$
(38
)

$
(62
)

$
(58
)

$
(43
)
Total expense recognized
$
65

 
$
92

 
$
101

 
$
61

 
$
75

 
$
93


1 
Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $6.4 million ($3.8 million after-tax) was recorded at Edison International for the year ended December 31, 2017.
2 
Includes the amount of net loss reclassified from accumulated other comprehensive loss. The amount reclassified for Edison International was $9 million, $10 million and $10 million for the years ended December 31, 2018, 2017 and 2016, respectively. The amount reclassified for SCE was $6 million for all the years ended December 31, 2018, 2017 and 2016.
3 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information.
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net loss
$
5

 
$
—

 
$
6

 
$
5

 
$
3

 
$
4

Settlement charges
—

 
(6
)
 
—

 
—

 
—

 
—

Amortization of net loss
(9
)
 
(10
)
 
(10
)
 
(6
)
 
(6
)
 
(6
)
Total recognized in other comprehensive loss
$
(4
)
 
$
(16
)
 
$
(4
)
 
$
(1
)
 
$
(3
)
 
$
(2
)
Total recognized in expense and other comprehensive loss
$
61

 
$
76

 
$
97

 
$
60

 
$
72

 
$
91
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated pension amounts that will be amortized to expense in 2019 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized net loss to be amortized1
$
8

 
$
6

Unrecognized prior service cost to be amortized
2

 
2


1 
The amount of net loss expected to be reclassified from accumulated other comprehensive loss for Edison International and SCE is $8 million and $6 million, respectively.
Schedule of Assumptions Used
Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations:
 
Years ended December 31,
 
2018
 
2017
 
2016
Discount rate
3.46
%
 
3.94
%
 
4.18
%
Rate of compensation increase
4.10
%
 
4.00
%
 
4.00
%
Expected long-term return on plan assets
6.50
%
 
6.50
%
 
7.00
%
Schedule of Expected Benefit Payments
The following benefit payments, which reflect expected future service, are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2019
$
342

 
$
299

2020
323

 
289

2021
323

 
285

2022
313

 
281

2023
301

 
274

2024 – 2028
1,446

 
1,280
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels
The following table sets forth the Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2018 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
110

 
$
937

 
$
—

 
$
—

 
$
1,047

Corporate stocks3
473

 
6

 
—

 
—

 
479

Corporate bonds4
—

 
582

 
—

 
—

 
582

Common/collective funds5
—

 
—

 
—

 
426

 
426

Partnerships/joint ventures6
—

 
—

 
—

 
434

 
434

Other investment entities7
—

 
—

 
—

 
236

 
236

Registered investment companies8
112

 
—

 
—

 
2

 
114

Interest-bearing cash
2

 
—

 
—

 
—

 
2

Other
—

 
73

 
—

 
—

 
73

Total
$
697

 
$
1,598

 
$
—

 
$
1,098

 
$
3,393

Receivables and payables, net
 

 
 

 
 
 
 

 
(72
)
Net plan assets available for benefits
 

 
 

 
 
 
 

 
$
3,321

SCE's share of net plan assets
 
 
 
 
 
 
 
 
$
3,124

The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
184

 
$
507

 
$
—

 
$
—

 
$
691

Corporate stocks3
718

 
11

 
—

 
—

 
729

Corporate bonds4
—

 
676

 
—

 
—

 
676

Common/collective funds5
—

 
—

 
—

 
705

 
705

Partnerships/joint ventures6
—

 
—

 
—

 
396

 
396

Other investment entities7
—

 
—

 
—

 
262

 
262

Registered investment companies8
140

 
—

 
—

 
—

 
140

Interest-bearing cash
9

 
—

 
—

 
—

 
9

Other
—

 
106

 
—

 
—

 
106

Total
$
1,051

 
$
1,300

 
$
—

 
$
1,363

 
$
3,714

Receivables and payables, net
 

 
 

 
 
 
 

 
(98
)
Net plan assets available for benefits
 

 
 

 
 
 
 

 
$
3,616

SCE's share of net plan assets
 
 
 
 
 
 
 
 
$
3,390

1 
These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits.
2 
Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
3 
Corporate stocks are diversified. At December 31, 2018 and 2017, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (43%) and (54%) and Morgan Stanley Capital International (MSCI) index (57%) and (46%).
4 
Corporate bonds are diversified. At December 31, 2018 and 2017, respectively, this category includes $60 million and $65 million for collateralized mortgage obligations and other asset backed securities.
5 
At December 31, 2018 and 2017, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index (43% and 41%) and Russell 1000 indexes (14% and 15%). In addition, at December 31, 2018 and 2017, respectively, 21% and 15% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 15% and 25% of this category are in non-index U.S. equity fund, which is actively managed.
6 
At December 31, 2018 and 2017, respectively, 50% and 55% are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies, 30% and 20% are invested in a broad range of financial assets in all global markets, and 16% and 23% are invested in publicly traded fixed income securities.
7 
Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities.
8 
Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index.
Postretirement Benefits Other Than Pensions  
Pension and Other Postretirement Benefits  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan
Information on PBOP Plan assets and benefit obligations is shown below:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2018
 
2017
 
2018
 
2017
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,337

 
$
2,276

 
$
2,325

 
$
2,266

Service cost
37

 
31

 
37

 
31

Interest cost
80

 
86

 
80

 
85

Special termination benefits
—

 
1

 
—

 
1

Actuarial (gain) loss1
(382
)
 
24

 
(379
)
 
23

Plan participants' contributions
28

 
24

 
28

 
24

Benefits paid
(114
)
 
(105
)
 
(114
)
 
(105
)
Benefit obligation at end of year
$
1,986

 
$
2,337

 
$
1,977

 
$
2,325

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
2,330

 
$
2,102

 
$
2,330

 
$
2,102

Actual return on assets
(123
)
 
297

 
(123
)
 
297

Employer contributions
13

 
12

 
12

 
12

Plan participants' contributions
28

 
24

 
28

 
24

Benefits paid
(115
)
 
(105
)
 
(114
)
 
(105
)
Fair value of plan assets at end of year
$
2,133

 
$
2,330

 
$
2,133

 
$
2,330

Funded status at end of year
$
147

 
$
(7
)
 
$
156

 
$
5

Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
 Long-term assets
$
159

 
$
6

 
$
168

 
$
17

Current liabilities
(12
)
 
(13
)
 
(12
)
 
(12
)
Long-term liabilities
—

 
—

 
—

 
—

 
$
147

 
$
(7
)
 
$
156

 
$
5

Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
    Net loss
$
1

 
$
4

 
$
—

 
$
—

Amounts recognized as a regulatory liability
(185
)
 
(26
)
 
(185
)
 
(26
)
Total not yet recognized as income
$
(184
)
 
$
(22
)
 
$
(185
)
 
$
(26
)
Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
4.35
%
 
3.70
%
 
4.35
%
 
3.70
%
Assumed health care cost trend rates:
 
 
 
 
 
 
 
Rate assumed for following year
6.75
%
 
6.75
%
 
6.75
%
 
6.75
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2029

 
2029

 
2029

 
2029
Expense Components for Plans
Net periodic PBOP expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2018
 
2017 2
 
2016 2
 
2018
 
2017 2
 
2016 2
Service cost
$
37

 
$
31

 
$
35

 
$
37

 
$
31

 
$
34

Non-service cost
 
 
 
 
 
 
 
 
 
 
 
  Interest cost
80

 
86

 
97

 
80

 
85

 
97

  Expected return on plan assets
(121
)
 
(110
)
 
(112
)
 
(122
)
 
(110
)
 
(112
)
  Special termination benefits1
—

 
1

 
2

 
—

 
1

 
2

  Amortization of prior service credit
(1
)
 
(3
)
 
(2
)
 
(1
)
 
(2
)
 
(2
)
  Regulatory adjustment (deferred)

24

 
—

 
—

 
24

 
—

 
—

Total non-service benefit
$
(18
)

$
(26
)

$
(15
)

$
(19
)

$
(26
)

$
(15
)
Total expense
$
19

 
$
5

 
$
20

 
$
18

 
$
5

 
$
19


1 
Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.
2 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information.
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated PBOP amounts that will be amortized to expense in 2019 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized net gain to be amortized
$
(3
)
 
$
(3
)
Unrecognized prior service credit to be amortized
(1
)
 
(1
)
Schedule of Assumptions Used
Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations:
 
Years ended December 31,
 
2018
 
2017
 
2016
Discount rate
3.70
%
 
4.29
%
 
4.55
%
Expected long-term return on plan assets
5.30
%
 
5.30
%
 
5.60
%
Assumed health care cost trend rates:
 
 
 
 
 
Current year
6.75
%
 
7.00
%
 
7.50
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2029

 
2022

 
2022
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate
A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations:
 
Edison International
 
SCE
(in millions)
One-Percentage-Point Increase
 
One-Percentage-Point Decrease
 
One-Percentage-Point Increase
 
One-Percentage-Point Decrease
Effect on accumulated benefit obligation as of December 31, 2018
$
210

 
$
(173
)
 
$
209

 
$
(172
)
Effect on annual aggregate service and interest costs
11

 
(9
)
 
11

 
(9
)
Schedule of Expected Benefit Payments
The following benefit payments (net of plan participants' contributions) are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2019
$
91

 
$
91

2020
94

 
94

2021
97

 
97

2022
100

 
99

2023
103

 
102

2024 – 2028
553

 
550
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels
The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2018 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
322

 
$
49

 
$
—

 
$
—

 
$
371

Corporate stocks3
204

 
—

 
—

 
—

 
204

Corporate notes and bonds4
—

 
832

 
—

 
—

 
832

Common/collective funds5
—

 
—

 
—

 
495

 
495

Partnerships6
—

 
—

 
—

 
89

 
89

Registered investment companies7
38

 
—

 
—

 
—

 
38

Interest bearing cash
22

 
—

 
—

 
—

 
22

Other8
5

 
99

 
—

 
—

 
104

Total
$
591

 
$
980

 
$
—

 
$
584

 
$
2,155

Receivables and payables, net
 

 
 

 
 
 
 

 
(22
)
Combined net plan assets available for benefits
 

 
 

 
 
 
 

 
$
2,133

The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
398

 
$
33

 
$
—

 
$
—

 
$
431

Corporate stocks3
254

 
—

 
—

 
—

 
254

Corporate notes and bonds4
—

 
845

 
—

 
—

 
845

Common/collective funds5
—

 
—

 
—

 
569

 
569

Partnerships6
—

 
—

 
—

 
82

 
82

Registered investment companies7
37

 
—

 
—

 
—

 
37

Interest bearing cash
42

 
—

 
—

 
—

 
42

Other8
5

 
84

 
—

 
—

 
89

Total
$
736

 
$
962

 
$
—

 
$
651

 
$
2,349

Receivables and payables, net
 

 
 

 
 
 
 

 
(19
)
Combined net plan assets available for benefits
 

 
 

 
 
 
 

 
$
2,330

1 
These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits.
2 
Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.
3 
Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (67% and 64%) and the MSCI All Country World Index (33% and 36%) for 2018 and 2017, respectively.
4 
Corporate notes and bonds are diversified and include approximately $59 million and $36 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2018 and 2017, respectively.
5 
At December 31, 2018 and 2017, respectively, 74% and 75% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and 19% and 17% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund.
6 
At December 31, 2018 and 2017, respectively, 48% and 56% of the partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. 34% and 33% are invested in a broad range of financial assets in all global markets. 17% and 9% of the remaining partnerships category are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks.
7 
At both December 31, 2018 and 2017, registered investment companies were primarily invested in (1) a money market fund, (2) exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index, and international small cap equities.
8 
Other includes $58 million and $60 million of municipal securities at December 31, 2018 and 2017, respectively.