Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Income Taxes

Note 8.Income Taxes

Effective Tax Rate

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 June 30,						Six months ended June 30,
(in millions)	2022			2021			2022			2021
Edison International:
Income from operations before income taxes	$	299		$	429		$	380		$	683
Provision for income tax at federal statutory rate of 21%		63			90			80			143
Increase (decrease) in income tax from:
State tax, net of federal benefit		(4)			18			(21)			11
Property-related		(48)			(43)			(93)			(126)
Corporate-owned life insurance cash surrender value		(1)			(3)			(4)			(5)
Other		(3)			6			(10)			9
Total income tax expense (benefit)	$	7		$	68		$	(48)		$	32
Effective tax rate		2.3	%		15.9	%		(12.6)	%		4.7	%
SCE:
Income from operations before income taxes	$	349		$	461		$	482		$	760
Provision for income tax at federal statutory rate of 21%		73			97			101			160
Increase (decrease) in income tax from:
State tax, net of federal benefit		—			19			(13)			15
Property-related		(48)			(43)			(93)			(126)
Corporate-owned life insurance cash surrender value		(1)			(3)			(4)			(5)
Other		(2)			6			(9)			8
Total income tax expense (benefit)	$	22		$	76		$	(18)		$	52
Effective tax rate		6.3	%		16.5	%		(3.7)	%		6.8	%

The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11.

Tax Disputes

Tax years that remain open for examination by the IRS and the California Franchise Tax Board ("FTB") are 2016 – 2021 and 2013 – 2021, respectively.