Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

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:

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2019			2018			2019			2018
Edison International:
Income from operations before income taxes	$	480		$	627		$	1,020		$	1,127
Provision for income tax at federal statutory rate of 21%	101			132			214			237
Increase in income tax from:
State tax, net of federal benefit	5			26			—			21
Property-related	(124		)	(76		)	(267		)	(214		)
Change related to uncertain tax positions	—			1			—			1
Share-based compensation	(1		)	(1		)	(3		)	(1		)
2018 GRC Final Decision	—			—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	(3		)	1			(7		)	(1		)
Total income tax benefit	$	(22	)	$	83		$	(212	)	$	43
Effective tax rate	(4.6		)%	13.2		%	(20.8		)%	3.8		%
SCE:
Income from operations before income taxes	$	524		$	653		$	1,123		$	1,288
Provision for income tax at federal statutory rate of 21%	110			137			236			270
Increase in income tax from:
State tax, net of federal benefit	8			29			6			33
Property-related2	(124		)	(76		)	(267		)	(214		)
Change related to uncertain tax positions	—			(1		)	—			(2		)
Share-based compensation	—			(1		)	(2		)	(1		)
2018 GRC Final Decision	—			—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	(4		)	(2		)	(7		)	(8		)
Total income tax benefit	$	(10	)	$	86		$	(183	)	$	78
Effective tax rate	(1.9		)%	13.2		%	(16.3		)%	6.1		%

¹ Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.

²  In the third quarter of 2019, SCE recorded incremental tax benefits, primarily related to FERC settlement and prior year tax return true up.