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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Components of Income Tax (Benefit) Expense by Location of Taxing Jurisdiction
The components of income tax (benefit) expense by location of taxing jurisdiction are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
 
 
 
 
 
 
Federal
$
—

 
$
(57
)
 
$
(221
)
 
$
—

 
$
(51
)
 
$
(253
)
State
6

 
(155
)
 
4

 
14

 
(93
)
 
(81
)
 
6

 
(212
)
 
(217
)
 
14

 
(144
)
 
(334
)
Deferred:
 
 
 
 
 
 
 
 
 
 
 
Federal
(243
)
 
(386
)
 
570

 
(206
)
 
(354
)
 
265

State
(41
)
 
(141
)
 
(72
)
 
(37
)
 
(198
)
 
39

 
(284
)
 
(527
)
 
498

 
(243
)
 
(552
)
 
304

Total continuing operations
(278
)
 
(739
)
 
281

 
(229
)
 
(696
)
 
(30
)
Discontinued operations1
—

 
(34
)
 
—

 
—

 
—

 
—

Total
$
(278
)
 
$
(773
)
 
$
281

 
$
(229
)
 
$
(696
)
 
$
(30
)

1  
In the fourth quarter of 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below.
Components of Net Accumulated Deferred Income Tax Liability
The components of net accumulated deferred income tax liability are:
 
Edison International
 
SCE
 
December 31,
(in millions)
2019
 
2018
 
2019
 
2018
Deferred tax assets:
 
 
 
 
 
 
 
Property
$
478

 
$
399

 
$
435

 
$
388

Wildfire-related1
847

 
709

 
847

 
709

Nuclear decommissioning trust assets in excess of nuclear ARO liability
449

 
323

 
449

 
323

Loss and credit carryforwards2
1,515

 
1,375

 
253

 
154

Regulatory asset
739

 
798

 
739

 
798

Pension and postretirement benefits other than pensions, net
170

 
171

 
40

 
46

Other
408

 
188

 
416

 
184

Sub-total
4,606

 
3,963

 
3,179

 
2,602

Less: valuation allowance3
35

 
36

 
—

 
—

Total
4,571

 
3,927

 
3,179

 
2,602

Deferred tax liabilities:
 
 
 
 
 
 
 
Property
8,244

 
7,685

 
8,234

 
7,685

Regulatory liability
570

 
367

 
570

 
367

Nuclear decommissioning trust assets
449

 
323

 
449

 
323

Other
320

 
57

 
310

 
54

Total
9,583

 
8,432

 
9,563

 
8,429

Accumulated deferred income tax liability, net4
$
5,012

 
$
4,505

 
$
6,384

 
$
5,827


1  
Relates to accrued estimated losses for wildfire-related claims, net of expected recoveries from insurance and FERC customers, and contributions to the Wildfire Insurance Fund. For further information, see Note 12 and Note 1.
2  
As of December 31, 2019, deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $212 million and $130 million for Edison International and SCE, respectively.
3  
As of December 31, 2019, Edison International has recorded a valuation allowance of $30 million for non-California state net operating loss carryforwards, and $5 million for California capital losses generated from sale of SoCore Energy in 2018, which are estimated to expire before being utilized.
4  
Included in "Deferred income taxes and credits" on the consolidated balance sheets.
Summary of Net Operating Loss and Tax Credit Carryforwards
The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows:
 
Edison International
 
SCE
 
December 31, 2019
(in millions)
Loss Carryforwards
 
Credit Carryforwards
 
Loss Carryforwards
 
Credit Carryforwards
Expire between 2029 to 2037
$
1,024

 
$
482

 
$
229

 
$
30

Expire between 2021 to 2024
29


—


24


—

No expiration date1
182

 
10

 
100

 
—

Total
$
1,235

 
$
492

 
$
353

 
$
30


1 
Under the Tax Reform, net operating losses generated after December 31, 2017 can carryforward indefinitely.
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:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Income (loss) from continuing operations before income taxes
$
1,127

 
$
(1,089
)
 
$
949

 
$
1,301

 
$
(885
)
 
$
1,106

Provision for income tax at federal statutory rate of 21% for 2019 and 2018, and 35% for 20171
237

 
(229
)
 
332

 
273

 
(186
)
 
387

Increase in income tax from:
 

 
 

 
 

 
 

 
 

 
 
Items presented with related state income tax, net:
 

 
 

 
 

 
 

 
 

 
 
State tax, net of federal benefit
(22
)
 
(168
)
 
2

 
(13
)
 
(155
)
 
8

Property-related
(303
)
 
(275
)
 
(439
)
 
(303
)
 
(275
)
 
(439
)
Change related to uncertain tax positions2
—

 
(66
)
 
(18
)
 
—

 
(71
)
 
(13
)
Revised San Onofre Settlement Agreement3
—

 
—

 
25

 
—

 
—

 
25

Share-based compensation4
(4
)
 
(2
)
 
(55
)
 
(3
)
 
(1
)
 
(11
)
Deferred tax re-measurement5
(88
)
 
—

 
466

 
(88
)
 
—

 
33

2018 GRC Final Decision
(80
)
 
—

 
—

 
(80
)
 
—

 
—

Other
(18
)
 
1

 
(32
)
 
(15
)
 
(8
)
 
(20
)
Total income tax (benefit) expense from continuing operations
$
(278
)
 
$
(739
)
 
$
281

 
$
(229
)
 
$
(696
)
 
$
(30
)
Effective tax rate
(24.7
)%
 
(67.9
)%
 
29.6
%
 
(17.6
)%
 
(78.6
)%
 
(2.7
)%
1 Tax Reform reduced the federal corporate income tax rate from 35% to 21%, effective January 1, 2018.
2 In 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below.
3 Includes the write-off of an unrecovered tax regulatory asset related to the Revised San Onofre Order Instituting Investigation Settlement Agreement among SCE, SDG&E and various intervening parties, dated January 30, 2018 and modified on August 2, 2018 ("Revised San Onofre Settlement Agreement").
4 
Includes state taxes of $(11) million for Edison International and $(2) million for SCE for the year ended December 31, 2017.
5 
In 2017, Edison International and SCE recorded a charge to earnings related to the re-measurement of deferred taxes resulting from Tax Reform. This charge was updated in 2019 to conform to a CPUC resolution which finalized the re-measurement amounts belonging to shareholders and those amounts are charged to earnings.
Reconciliation of Unrecognized Tax Benefits
The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations:
 
Edison International
 
SCE
 
December 31,
(in millions)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Balance at January 1,
$
338

 
$
432

 
$
471

 
$
249

 
$
331

 
$
371

Tax positions taken during the current year:
 
 
 
 
 
 
 
 
 
 
 
Increases
46

 
41

 
51

 
47

 
42

 
51

Tax positions taken during a prior year:
 
 
 
 
 
 
 
 
 
 
 
Increases
6

 
—

 
—

 
6

 
—

 
—

Decreases1
(20
)
 
(108
)
 
(7
)
 
(20
)
 
(121
)
 
(13
)
Settlements with taxing authorities2
—

 
(27
)
 
(83
)
 
—

 
(3
)
 
(78
)
Balance at December 31,
$
370

 
$
338

 
$
432

 
$
282

 
$
249

 
$
331


1
Decrease in 2018 was related to re-measurement as a result of a settlement with the California Franchise Tax Board for tax years 1994 – 2006.
2
In 2018, Edison International reached a settlement with the California Franchise Tax Board for tax years 1994 – 2006. In 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 – 2012.
Schedule of Interest and Penalties Related to Income Tax Liabilities
The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2019
 
2018
 
2019
 
2018
Accrued interest and penalties
$
56

 
$
37

 
$
29

 
$
6

The net after-tax interest and penalties recognized in income tax expense (benefit) for continuing and discontinued operations are:
 
Edison International
 
SCE
 
December 31,
(in millions)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Net after-tax interest and penalties tax expense (benefit)
$
4

 
$
(62
)
 
$
6

 
$
3

 
$
(25
)
 
$
4