Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

The cash equivalents were as follows:



	Edison International				SCE
	December 31,
(in millions)	2019		2018		2019		2018
Money market funds	$	31	$	116	$	—	$	1

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)	2019		2018		2019		2018
Book balances reclassified to accounts payable	$	75	$	65	$	74	$	65

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, 2019		December 31, 2018
Edison International:
Cash and cash equivalents	$	68	$	144
Short-term restricted cash¹	2		8
Total cash, cash equivalents, and restricted cash	$	70	$	152
SCE:
Cash and cash equivalents	$	24	$	21
Short-term restricted cash¹	—		1
Total cash, cash equivalents, and restricted cash	$	24	$	22

Reflected in "Other current assets" on Edison International's and SCE'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 2018 General Rate Case ("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 56 years	36 years
Distribution plant	20 years to 65 years	48 years
Transmission plant	45 years to 65 years	54 years
General plant and other	5 years to 60 years	25 years

Reconciliation of the Changes in ARO Liability

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



	December 31,
(in millions)	2019			2018
Beginning balance	$	3,031		$	2,892
Accretion¹	166			169
Revisions	4			110
Liabilities settled	(172		)	(140		)
Ending balance	$	3,029		$	3,031

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)	2019		2018		2017		2019		2018		2017
Amortization of deferred financing costs charged to interest expense	$	30	$	30	$	30	$	26	$	26	$	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)	2019		2018			2017
Basic earnings (loss) per share – continuing operations:
Income (loss) from continuing operations attributable to common shareholders	$	1,284	$	(457	)	$	565
Participating securities dividends	—		—			—
Income (loss) from continuing operations available to common shareholders	1,284		(457		)	565
Weighted average common shares outstanding	340		326			326
Basic earnings (loss) per share – continuing operations	3.78		(1.40		)	1.73
Diluted earnings (loss) per share – continuing operations:
Income (loss) from continuing operations attributable to common shareholders	1,284		(457		)	565
Participating securities dividends	—		—			—
Income (loss) from continuing operations available to common shareholders	1,284		(457		)	565
Income impact of assumed conversions	—		—			—
Income (loss) from continuing operations available to common shareholders and assumed conversions	1,284		(457		)	565
Weighted average common shares outstanding	340		326			326
Incremental shares from assumed conversions¹	1		—			2
Adjusted weighted average shares – diluted	341		326			328
Diluted earnings (loss) per share – continuing operations	$	3.77	$	(1.40	)	$	1.72

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