Compensation and Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Pension and Other Postretirement Benefits

Employee Savings Plan Employer Contributions

	Edison
	International		SCE
(in millions)	Years ended December 31,
2021	$	97	$	96
2020		93		92
2019		82		81

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes total expense and tax benefits associated with stock-based compensation:

	Edison International						SCE
	Years ended December 31,
(in millions)	2021		2020		2019		2021		2020		2019
Stock-based compensation expense1:
Stock options	$	16	$	15	$	13	$	8	$	7	$	7
Performance shares		9		5		8		4		2		4
Restricted stock units		12		8		6		8		4		3
Other		2		1		2		—		—		—
Total stock-based compensation expense		39		29		29		20		13		14
Income tax benefits related to stock compensation expense	$	4	$	4	$	10	$	3	$	3	$	6

1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income.

Black-Sholes Option-Pricing Model Assumptions

	Years ended December 31,
	2021	2020	2019
Expected terms (in years)	5.4	5.2	5.5
Risk-free interest rate	1.1% - 1.3%	0.4% - 0.6%	1.6% - 2.3%
Expected dividend yield	4.1% - 4.8%	4.2% - 5.0%	3.3% - 4.0%
Weighted average expected dividend yield	4.5%	4.7%	3.9%
Expected volatility	26.9% - 27.1%	24.9% - 26.9%	21.7% - 24.1%
Weighted average volatility	26.9%	25.0%	21.8%

Summary of Stock Options Activity

The following is a summary of the status of Edison International's stock options:

		Weighted Average
				Remaining	Aggregate
	Stock	Exercise		Contractual	Intrinsic Value
	Options	Price		Term (years)	(in millions)
Edison International:
Outstanding at December 31, 2020	10,709,383	$	63.85
Granted	2,515,015		55.04
Forfeited or expired	(330,916)		62.49
Exercised1	(538,656)		48.02
Outstanding at December 31, 2021	12,354,826		62.78	5.93
Vested and expected to vest at December 31, 2021	11,974,609		62.83	5.85	$	80
Exercisable at December 31, 2021	7,412,820	$	64.27	4.43	$	43
SCE:
Outstanding at December 31, 2020	5,490,488	$	62.85
Granted	1,404,603		55.14
Forfeited or expired	(307,607)		62.65
Exercised1	(407,330)		48.80
Outstanding at December 31, 2021	6,180,154		62.03	5.87
Vested and expected to vest at December 31, 2021	5,997,654		62.07	5.80	$	44
Exercisable at December 31, 2021	3,666,657	$	63.24	4.27	$	25

1 Edison International and SCE recognized tax benefits of $2 million and $2 million, respectively, from stock options exercised in 2021.

Schedule of Unrecognized Compensation Expense

At December 31, 2021, total unrecognized compensation cost related to stock options and the weighted average period the cost is expected to be recognized are as follows:

	Edison International		SCE
Unrecognized compensation cost, net of expected forfeitures (in millions)	$	18	$	9
Weighted average period (in years)		2.4		2.4

Supplemental Data on Stock-based Compensation

The following is a summary of supplemental data on stock options:

	Edison International						SCE
	Years ended December 31,
(in millions, except per award amounts)	2021		2020		2019		2021		2020		2019
Weighted average grant date fair value per option granted	$	7.26	$	8.18	$	8.80	$	7.30	$	8.16	$	8.83
Fair value of options vested		3		2		14		3		2		7
Value of options exercised		8		9		27		6		7		19

Summary of Nonvested Share Activity

The following is a summary of the status of Edison International's nonvested performance shares:

	Equity Awards
		Weighted Average
	Shares	Fair Value
Edison International:
Nonvested at December 31, 2020	233,624	$	66.80
Granted	158,442		57.70
Forfeited	(18,250)		62.51
Vested	(111,008)		66.06
Nonvested at December 31, 2021	262,808	$	61.92
SCE:
Nonvested at December 31, 2020	120,644	$	66.70
Granted	88,983		57.66
Forfeited	(17,306)		62.77
Vested	(54,514)		66.34
Nonvested at December 31, 2021	137,807	$	61.50

Summary of Nonvested Restricted Stock Units Activity

The following is a summary of the status of Edison International's nonvested restricted stock units:

	Edison International			SCE
		Weighted Average			Weighted Average
	Restricted	Grant Date		Restricted	Grant Date
	Stock Units	Fair Value		Stock Units	Fair Value
Nonvested at December 31, 2020	333,873	$	63.78	168,420	$	63.78
Granted	337,793		55.07	250,490		55.12
Forfeited	(27,622)		58.81	(25,275)		59.18
Vested	(97,889)		59.34	(48,703)		59.33
Nonvested at December 31, 2021	546,155	$	59.44	344,932	$	58.45

Pension Plans

Pension and Other Postretirement Benefits

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below.

	Edison International						SCE
	Years ended December 31,
(in millions)	2021			2020			2021			2020
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	4,476		$	4,139		$	3,984		$	3,662
Service cost		130			121			126			117
Interest cost		103			124			92			110
Actuarial (gain) loss		(245)			323			(246)			292
Benefits paid		(293)			(231)			(262)			(197)
Projected benefit obligation at end of year	$	4,171		$	4,476		$	3,694		$	3,984
Change in plan assets
Fair value of plan assets at beginning of year	$	4,171		$	3,755		$	3,940		$	3,541
Actual return on plan assets		368			584			348			551
Employer contributions		50			62			35			45
Benefits paid		(293)			(230)			(262)			(197)
Fair value of plan assets at end of year		4,296			4,171			4,061			3,940
Funded status at end of year	$	125		$	(305)		$	367		$	(44)
Amounts recognized in the consolidated balance sheets consist of 1:
Long-term assets	$	384		$	—		$	384		$	—
Current liabilities		(26)			(24)			(2)			(2)
Long-term liabilities		(233)			(281)			(15)			(42)
	$	125		$	(305)		$	367		$	(44)
Amounts recognized in accumulated other comprehensive loss consist of:
Prior service cost	$	—		$	(1)		$	—		$	—
Net loss1		74			96			12			16
		74			95			12			16
Amounts recognized as a regulatory (liability)/asset		(395)			12			(395)			12
Total not yet recognized as (income)/expense	$	(321)		$	107		$	(383)		$	28
Accumulated benefit obligation at end of year	$	3,947		$	4,238		$	3,491		$	3,776
Pension plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation		4,171			4,476			3,694			3,984
Accumulated benefit obligation		3,947			4,238			3,491			3,766
Fair value of plan assets		4,296			4,171			4,061			3,940
Weighted average assumptions used to determine obligations at end of year:
Discount rate		2.75	%		2.38	%		2.75	%		2.38	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%

1 The SCE liability excludes a long-term payable due to Edison International Parent of $132 million and $139 million at December 31, 2021 and 2020, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $12 million and $16 million at December 31, 2021 and 2020, excludes net losses of $32 million and $41 million related to these benefits, respectively.

Expense Components for Plans

Net periodic pension expense components are:

	Edison International						SCE
	Years ended December 31,
(in millions)	2021		2020		2019		2021		2020		2019
Service cost	$	130	$	121	$	114	$	127	$	119	$	111
Non-service cost (benefit)
Interest cost		103		124		155		95		114		143
Expected return on plan assets		(222)		(215)		(205)		(211)		(203)		(194)
Amortization of prior service cost		1		2		2		1		1		2
Amortization of net loss		11		10		7		7		7		5
Regulatory adjustment		25		16		(3)		25		16		(3)
Total non-service benefit		(82)		(63)		(44)		(83)		(65)		(47)
Total expense recognized	$	48	$	58	$	70	$	44	$	54	$	64

Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

Other changes in pension plan assets and benefit obligations recognized in other comprehensive income:

	Edison International						SCE
	Years ended December 31,
(in millions)	2021		2020		2019		2021		2020		2019
Net (gain) loss	$	(10)	$	11	$	19	$	(5)	$	9	$	21
Amortization of net loss		(11)		(10)		(7)		(7)		(7)		(5)
Total (gain) loss recognized in other comprehensive income		(21)		1		12		(12)		2		16
Total recognized in expense and other comprehensive income	$	27	$	59	$	82	$	32	$	56	$	80

Schedule of Assumptions Used

Edison International and SCE used the following weighted average assumptions to determine pension expense:

	Years ended December 31,
	2021		2020		2019
Discount rate	2.38	%	3.11	%	4.19	%
Rate of compensation increase	4.00	%	4.10	%	4.10	%
Expected long-term return on plan assets	5.50	%	6.00	%	6.50	%
Interest crediting rate for cash balance account
Starting rate	3.03	%	3.61	%	4.46	%
Ultimate rate	4.50	%	5.00	%	5.75	%
Year ultimate rate is reached	2025		2025		2022

Schedule of Expected Benefit Payments

The following benefit payments, which reflect service rendered and expected future service, are expected to be paid:

	Edison
	International		SCE
(in millions)	Years ended December 31,
2022	$	315	$	274
2023		315		273
2024		313		272
2025		308		269
2026		306		267
2027 – 2031		1,358		1,210

Schedule of Pension Plan Assets by Hierarchy Levels

The following table sets forth the investments for Edison International and SCE that were accounted for at fair value as of December 31, 2021 and December 31, 2020, respectively, by asset class and level within the fair value hierarchy:

	December 31, 2021
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	217	$	918	$	—	$	1,135
Corporate stocks3		466		4		—		470
Corporate bonds4		—		815		—		815
Common/collective funds5		—		—		964		964
Partnerships/joint ventures6		—		—		688		688
Other investment entities7		—		—		110		110
Registered investment companies8		57		—		31		88
Interest-bearing cash		8		—		—		8
Other		—		45		—		45
Total	$	748	$	1,782	$	1,793	$	4,323
Receivables and payables, net								(27)
Combined net plan assets available for benefits								4,296
SCE's share of net plan assets							$	4,061

	December 31, 2020
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	151	$	1,006	$	—	$	1,157
Corporate stocks3		570		5		—		575
Corporate bonds4		—		601		—		601
Common/collective funds5		—		—		1,017		1,017
Partnerships/joint ventures6		—		—		569		569
Other investment entities7		—		—		137		137
Registered investment companies8		69		—		23		92
Interest-bearing cash		7		—		—		7
Other		—		39		—		39
Total	$	797	$	1,651	$	1,746	$	4,194
Receivables and payables, net								(23)
Combined net plan assets available for benefits								4,171
SCE's share of net plan assets							$	3,940

1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits.

2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

3  Corporate stocks are diversified. At December 31, 2021 and 2020, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (44% and 40%) and Morgan Stanley Capital International (MSCI) index (56% and 60%).

4  Corporate bonds are diversified. At December 31, 2021 and 2020, respectively, this category includes $61 million and $54 million for collateralized mortgage obligations and other asset backed securities.

5 At December 31, 2021 and 2020, respectively, the common/collective assets are invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index (41% and 37%) and Russell 1000 indexes (10% and 13%). In addition, at December 31, 2021 and 2020, respectively, 38% and 40% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 9% and 8% of this category are in non-index U.S. equity fund, which is actively managed.

6 At December 31, 2021 and 2020, respectively, 62% and 49% are invested in private equity funds with investment strategies that include branded consumer products and clean technology companies, 17% and 23% are invested in ABS including distressed mortgages and commercial and residential loans, 15% and 19% are invested in publicly traded fixed income securities, and 3% and 4% are invested in a broad range of financial assets in all global markets.

7 At December 31, 2021 and 2020, respectively, 71% and 77% are invested in emerging market equity securities and 20% and 16% are invested in domestic mortgage backed securities.

8 At December 31, 2021 and 2020, respectively, registered investment companies were invested in Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index (63% and 73%) and investments included fixed income fund used for cash management (35% and 25%).

Postretirement Benefits Other Than Pensions

Pension and Other Postretirement Benefits

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

	Edison International						SCE
	Years ended December 31,
(in millions)	2021			2020			2021			2020
Change in benefit obligation
Benefit obligation at beginning of year	$	2,073		$	2,083		$	2,064		$	2,074
Service cost		40			38			40			37
Interest cost		52			63			52			63
Actuarial loss (gain)		(190)			(46)			(190)			(45)
Plan participants' contributions		29			29			29			29
Benefits paid		(100)			(94)			(100)			(94)
Benefit obligation at end of year	$	1,904		$	2,073		$	1,895		$	2,064
Change in plan assets
Fair value of plan assets at beginning of year	$	2,717		$	2,465		$	2,717		$	2,464
Actual return on assets		119			309			119			309
Employer contributions		7			8			7			8
Plan participants' contributions		29			29			29			29
Benefits paid		(100)			(94)			(100)			(93)
Fair value of plan assets at end of year		2,772			2,717			2,772			2,717
Funded status at end of year	$	868		$	644		$	877		$	653
Amounts recognized in the consolidated balance sheets consist of:
Long-term assets	$	876		$	663		$	885		$	663
Current liabilities		(8)			(10)			(8)			(10)
Long-term liabilities		—			(9)			—			—
	$	868		$	644		$	877		$	653
Amounts recognized in accumulated other comprehensive loss consist of:
Net loss	$	1		$	1		$	—		$	—
Amounts recognized as a regulatory liability		(886)			(671)			(886)			(671)
Total not yet recognized as income	$	(885)		$	(670)		$	(886)		$	(671)
Weighted average assumptions used to determine obligations at end of year:
Discount rate		2.95	%		2.67	%		2.95	%		2.67	%
Assumed health care cost trend rates:
Rate assumed for following year		6.25	%		6.50	%		6.25	%		6.50	%
Ultimate rate		5.00	%		5.00	%		5.00	%		5.00	%
Year ultimate rate reached		2029			2029			2029			2029

Expense Components for Plans

	Edison International						SCE
	Years ended December 31,
(in millions)	2021		2020		2019		2021		2020		2019
Service cost	$	40	$	38	$	30	$	40	$	37	$	30
Non-service cost (benefit)
Interest cost		52		63		77		52		63		77
Expected return on plan assets		(106)		(119)		(111)		(106)		(119)		(111)
Amortization of prior service cost		(1)		(1)		(1)		(1)		(1)		(1)
Amortization of net gain		(35)		(29)		(17)		(36)		(29)		(17)
Regulatory adjustment		51		49		29		51		49		29
Total non-service benefit		(39)		(37)		(23)		(40)		(37)		(23)
Total expense	$	1	$	1	$	7	$	—	$	—	$	7

Schedule of Assumptions Used

Edison International and SCE used the following weighted average assumptions to determine PBOP expense:

	Years ended December 31,
	2021		2020		2019
Discount rate	2.67	%	3.32	%	4.35	%
Expected long-term return on plan assets	4.00	%	4.90	%	5.30	%
Assumed health care cost trend rates:
Current year	6.50	%	6.50	%	6.75	%
Ultimate rate	5.00	%	5.00	%	5.00	%
Year ultimate rate reached	2029		2029		2029

Schedule of Expected Benefit Payments

The following benefit payments (net of plan participants' contributions) are expected to be paid:

	Edison
	International		SCE
(in millions)	Years ended December 31,
2022	$	78	$	78
2023		80		80
2024		83		82
2025		84		84
2026		86		86
2027 – 2031		454		452

Schedule of Pension Plan Assets by Hierarchy Levels

The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2021 and December 31, 2020, respectively, by asset class and level within the fair value hierarchy:

	December 31, 2021
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	813	$	10	$	—	$	823
Corporate stocks3		145		3		—		148
Corporate notes and bonds4		—		997		—		997
Common/collective funds5		—		—		544		544
Partnerships6		—		—		107		107
Registered investment companies7		44		—		—		44
Interest bearing cash		—		51		—		51
Other8		—		59		—		59
Total	$	1,002	$	1,120	$	651	$	2,773
Receivables and payables, net								(1)
Combined net plan assets available for benefits								2,772
SCE's share of net plan assets							$	2,772

	December 31, 2020
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	380	$	30	$	—	$	410
Corporate stocks3		224		3		—		227
Corporate notes and bonds4		—		1,079		—		1,079
Common/collective funds5		—		—		693		693
Partnerships6		—		—		81		81
Registered investment companies7		65		—		—		65
Interest bearing cash		—		26		—		26
Other8		—		132		—		132
Total	$	669	$	1,270	$	774	$	2,713
Receivables and payables, net								4
Combined net plan assets available for benefits							$	2,717
SCE's share of net plan assets							$	2,717

1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits.

2  Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.

3 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (73% and 70%) and the MSCI All Country World Index (27% and 30%) for 2021 and 2020, respectively.

4  Corporate notes and bonds are diversified and include approximately $150 million and $170 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2021 and 2020, respectively.

5  At December 31, 2021 and 2020, respectively, 65% and 70% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index. 25% and 22% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund.

6  At December 31, 2021 and 2020, respectively, 54% and 46% of the partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. Of the remaining partnerships category, 35% and 36% are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks, 11% and 18% are invested in a broad range of financial assets in all global markets.

7  At December 31, 2021 and 2020, respectively, registered investment companies were primarily invested in a money market fund (61% and 51%) and exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index and international small cap equities (39% and 49%)

8  Other includes $44 million and $61 million of municipal securities at December 31, 2021 and 2020, respectively.