Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies

Cash Equivalents

The cash equivalents were as follows:

	Edison International				SCE
	December 31,
(in millions)	2022		2021		2022		2021
Money market funds	$	784	$	329	$	647	$	230

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:

	December 31,		December 31,
(in millions)	2022		2021
Edison International:
Cash and cash equivalents	$	914	$	390
Short-term restricted cash1		3		4
Total cash, cash equivalents and restricted cash	$	917	$	394
SCE:
Cash and cash equivalents	$	766	$	279
Short-term restricted cash1		—		1
Total cash, cash equivalents and restricted cash	$	766	$	280

1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.

Changes in Allowance for Uncollectible Accounts

The following table sets forth the changes in allowance for uncollectible accounts for SCE:

(in millions)	Customers			All others		Total
Balance at December 31, 2019	$	35	$	14	$	49
Current period provision for uncollectible accounts
Included in operation and maintenance expenses in earning activities1		36		9		45
Included in operation and maintenance expenses in cost-recovery activities2		15		—		15
Deferred to regulatory memorandum accounts		105		—		105
Write-offs, net of recoveries		(16)		(10)		(26)
Balance at December 31, 2020	$	175	$	13	$	188
Current period provision for uncollectible accounts
Included in operation and maintenance expenses in earning activities1		33		11		44
Included in operation and maintenance expenses in cost-recovery activities2		74		—		74
Deferred to regulatory memorandum accounts		17		—		17
Write-offs, net of recoveries		(6)		(8)		(14)
Balance at December 31, 2021³	$	293	$	16	$	309
Current period provision for uncollectible accounts
Included in operation and maintenance expenses in earning activities1		71		11		82
Included in operation and maintenance expenses in cost-recovery activities2,4		58		—		58
Deferred to regulatory memorandum accounts4		(18)		—		(18)
Write-offs, net of recoveries		(70)		(7)		(77)
Balance at December 31, 2022³	$	334	$	20	$	354

1 Earning activities is one of SCE's disaggregated revenue sources. See Note 7 for further details.

2 Cost-recovery activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. This portion of costs from the allowance for uncollectible expenses is recovered through the residential uncollectibles balancing account.

3 Approximately $7 million and $116 million of allowance for uncollectible accounts are included in long-term "Receivables" on SCE's consolidated balance sheets as of December 31, 2022 and December 31, 2021, respectively.

4 Represents current year changes in the allowance for uncollectible accounts and excludes authorized recovery of previously deferred balances.

Property, plant and equipment useful lives

Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows:

		Weighted Average
	Estimated Useful Lives	Useful Lives
Generation plant	10 years to 55 years	39 years
Distribution plant	20 years to 67 years	50 years
Transmission plant	30 years to 65 years	53 years
General plant and other	5 years to 60 years	20 years

Reconciliation of the Changes in ARO Liability

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

	December 31,
(in millions)	2022		2021
Beginning balance	$	2,772	$	2,930
Accretion1		143		157
Revisions		28		(77)
Liabilities settled		(189)		(238)
Ending balance	$	2,754	$	2,772

1 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)	2022		2021		2020		2022		2021		2020
Amortization of deferred financing costs charged to interest expense	$	37	$	34	$	32	$	31	$	29	$	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)	2022		2021		2020
Basic earnings per share:
Net income attributable to common shareholders	$	612	$	759	$	739
Net income available to common shareholders	$	612	$	759	$	739
Weighted average common shares outstanding		381		380		373
Basic earnings per share	$	1.61	$	2.00	$	1.98
Diluted earnings per share:
Net income attributable to common shareholders	$	612	$	759	$	739
Net income available to common shareholders	$	612	$	759	$	739
Income impact of assumed conversions		1		1		—
Net income available to common shareholders and assumed conversions	$	613	$	760	$	739
Weighted average common shares outstanding		381		380		373
Incremental shares from assumed conversions		2		—		1
Adjusted weighted average shares – diluted		383		380		374
Diluted earnings per share	$	1.60	$	2.00	$	1.98