Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of Finance Lease Payments

The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2019:

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2020	$	70	$	37	$	1
2021	48		30		1
2022	48		24		1
2023	47		19		2
2024	47		14		2
Thereafter	489		95		8
Total lease payments	749		219		15
Amount representing interest4	220		59		6
Lease liabilities	$	529	$	160	$	9

Summary of Operating Lease Payments

The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2019:

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2020	$	70	$	37	$	1
2021	48		30		1
2022	48		24		1
2023	47		19		2
2024	47		14		2
Thereafter	489		95		8
Total lease payments	749		219		15
Amount representing interest4	220		59		6
Lease liabilities	$	529	$	160	$	9

Summary of Capital Lease Payments

At December 31, 2018, SCE's future minimum lease payments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					25
Amount representing interest					33
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴ 

Lease payments are discounted to their present value using SCE's incremental borrowing rates.

Summary of Operating Lease Payments

At December 31, 2018, SCE's future minimum lease payments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					25
Amount representing interest					33
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴ 

Lease payments are discounted to their present value using SCE's incremental borrowing rates.

Supplemental Balance Sheet Information

Supplemental balance sheet information related to SCE's leases was as follows:

(in millions)	December 31, 2019
Operating leases:
Operating lease ROU assets	$	689
Current portion of operating lease liabilities	79
Operating lease liabilities	610
Total operating lease liabilities	$	689
Finance leases included in:
Utility property, plant and equipment, gross	$	14
Accumulated depreciation	(5		)
Utility property, plant and equipment, net	9
Other current liabilities	1
Other long-term liabilities	8
Total finance lease liabilities	$	9

Summary of Lease Expense Components

The following table summarizes the components of SCE's lease expense:

(in millions)	Year ended December 31, 2019
PPA leases:
Operating lease cost	$	118
Finance lease cost	1
Variable lease cost1	2,087
Total PPA lease cost	2,206
Other operating leases cost	46
Total lease cost	$	2,252

¹ 

Includes lease costs from renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation.

Other information related to leases was as follows:

(in millions, except lease term and discount rate)	Year ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases	$	118
Other leases	44
Financing cash flows from PPA finance leases	1
ROU assets obtained in exchange for lease obligations:
Other operating leases	34
Weighted average remaining lease term (in years):
Operating leases
PPA leases	16.05
Other leases	12.73
PPA Finance leases	11.51
Weighted average discount rate:
Operating leases
PPA leases	4.46		%
Other leases	3.88		%
PPA Finance leases	8.76		%

Schedule of Undiscounted Cash Flow Expected from Lease Payments

At December 31, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:

(in millions)
2020	$	11
2021	10
2022	10
2023	9
2024	8
Thereafter	148
Total	$	196