XML 29 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Investments
 6 Months Ended
Jun. 30, 2019
Regulated Entity, Other Assets, Noncurrent [Abstract]  
Investments 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)
 
June 30,
2019
 
December 31,
2018
 
June 30,
2019
 
December 31, 2018
Stocks
—
 
*

 
*

 
$
1,611

 
$
1,381

Municipal bonds
2057
 
$
624

 
$
665

 
762

 
767

U.S. government and agency securities
2067
 
1,184

 
1,193

 
1,326

 
1,288

Corporate bonds
2068
 
621

 
573

 
693

 
611

Short-term investments and receivables/payables1
One-year
 
27

 
70

 
29

 
73

Total
 
 
$
2,456

 
$
2,501

 
$
4,421

 
$
4,120


*
Equity investments are measured at fair value.
1 
Short-term investments include $14 million and $71 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 1, 2019 and January 2, 2019 as of June 30, 2019 and December 31, 2018, 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 $1.7 billion and $1.4 billion at June 30, 2019 and December 31, 2018, respectively, and other-than-temporary impairments of $160 million and $170 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 were $383 million and $323 million at June 30, 2019 and December 31, 2018, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion and $3.8 billion at June 30, 2019 and December 31, 2018, respectively.
The following table summarizes the gains and (losses) for the trust investments:
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
2019
 
2018
 
2019
 
2018
Gross realized gains
$
22

 
$
26

 
$
45

 
$
87

Gross realized loss
—

 
(2
)
 
—

 
(10
)
Net unrealized gains (losses) for equity securities
38

 
(5
)
 
206

 
(68
)

Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.