Compensation and Benefit Plans

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Compensation and Benefit Plans

Compensation and Benefit Plans

Employee Savings Plan

The 401(k) defined contribution savings plan is designed to supplement employees' retirement income. The employer contributions were as follows:

	Edison International		SCE
(in millions)	Years ended December 31,
2024	$	136	$	134
2023	121		119
2022	103		101

Pension Plans and Postretirement Benefits Other Than Pensions

Pension Plans

Noncontributory defined benefit pension plans (some with cash balance features) cover most employees meeting minimum service requirements. Employees hired by the participating companies on or after December 31, 2017 are no longer eligible to participate in the pension plan. In lieu of that, an additional non-contributory employer contribution is deposited into the Edison 401(k) Savings Plan. SCE recognizes pension expense for its nonexecutive plan as calculated by the actuarial method used for ratemaking. The expected contributions (all by the employer) for Edison International and SCE are approximately $44 million and $15 million, respectively, for the year ending December 31, 2025. The majority of annual contributions made by SCE to its pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms.

The funded position of Edison International's pension is sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's pension are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, unrealized losses equal to the unfunded status are recorded to a regulatory asset and unrealized gains equal to the funded status are recorded to a regulatory liability. See Note 11 for further information.

Information on pension plan assets and benefit obligations is shown below.

	Edison International				SCE
	Years ended December 31,
(in millions)	2024		2023		2024		2023
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	3,647	$	3,524	$	3,278	$	3,159
Service cost	103		101		99		97
Interest cost	175		180		157		162
Actuarial (gain) loss	(59)		96		(47)		82
Benefits paid	(230)		(254)		(198)		(222)
Projected benefit obligation at end of year	$	3,636	$	3,647	$	3,289	$	3,278
Change in plan assets
Fair value of plan assets at beginning of year	$	3,609	$	3,462	$	3,415	$	3,275
Actual return on plan assets	192		369		182		349
Employer contributions	37		32		17		13
Benefits paid	(230)		(254)		(198)		(222)
Fair value of plan assets at end of year	3,608		3,609		3,416		3,415
(Underfunded)/Overfunded status at end of year	$	(28)	$	(38)	$	127	$	137
Amounts recognized in the consolidated balance sheets consist of 1:
Long-term assets	$	166	$	169	$	137	$	149
Current liabilities	(27)		(30)		(1)		(2)
Long-term liabilities	(167)		(177)		(9)		(10)
	$	(28)	$	(38)	$	127	$	137
Amounts recognized in accumulated other comprehensive loss consist of:
Net loss	$	8	$	21	$	13	$	8
Amounts recognized as a regulatory liability	(146)		(159)		(133)		(159)
Accumulated benefit obligation at end of year	$	3,508	$	3,495	$	3,172	$	3,136
Pension plans with plan assets in excess of an accumulated benefit obligation:
Projected benefit obligation	3,636		3,647		3,289		3,278
Accumulated benefit obligation	3,508		3,495		3,172		3,136
Fair value of plan assets	3,608		3,609		3,416		3,415
Weighted average assumptions used to determine obligations at end of year:
Discount rate	5.56%		5.04%		5.56%		5.04%
Rate of compensation increase	4.00%		4.00%		4.00%		4.00%

1The SCE liability excludes a long-term payable due to Edison International Parent of $88 million and $94 million at December 31, 2024 and 2023, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent.

For Edison International and SCE, respectively, the 2024 actuarial gains are primarily related to $159 million and $146 million from an increase of 52 basis points in the discount rate (from 5.04% as of December 31, 2023 to 5.56% as of December 31, 2024). For Edison International and SCE, respectively, the 2023 actuarial losses are primarily related to $96 million and $92 million in losses from a decrease of 32 basis points in the discount rate (from 5.36% as of December 31, 2022 to 5.04% as of December 31, 2023).

Net periodic pension expense components are:

	Edison International						SCE
	Years ended December 31,
(in millions)	2024		2023		2022		2024		2023		2022
Service cost	$	103	$	101	$	120	$	101	$	99	$	118
Non-service cost (benefit)
Interest cost	175		180		111		162		166		101
Expected return on plan assets	(232)		(214)		(227)		(219)		(202)		(215)
Settlement costs	—		—		4		—		—		4
Amortization of prior service cost	—		—		—		—		—		—
Amortization of net loss	4		3		5		2		2		2
Regulatory adjustment	(23)		(47)		6		(22)		(47)		6
Total non-service benefit1	(76)		(78)		(101)		(77)		(81)		(102)
Total expense	$	27	$	23	$	19	$	24	$	18	$	16

1Included in "Other income" on Edison International's and SCE's consolidated income statements. For further details, see Note 16.

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

	Edison International						SCE
	Years ended December 31,
(in millions)	2024		2023		2022		2024		2023		2022
Net (gain) loss	$	(9)	$	6	$	(45)	$	(2)	$	6	$	(24)
Settlement charges	—		—		(4)		—		—		(4)
Amortization of net gain	(4)		(2)		(8)		(2)		(2)		(5)
Total (gain) loss recognized in other comprehensive income	(13)		4		(57)		(4)		4		(33)
Total recognized in expense and other comprehensive income	$	14	$	27	$	(38)	$	20	$	22	$	(17)

In accordance with authoritative guidance on rate-regulated enterprises, SCE records amortization of net gains and losses into regulatory assets and liabilities instead of charges and credits to other comprehensive income for the portion of SCE's postretirement benefit plans that are recoverable in utility rates.

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

	Years ended December 31,
	2024		2023		2022
Discount rate	5.04	%	5.36	%	2.75	%
Rate of compensation increase	4.00	%	4.00	%	4.00	%
Expected long-term return on plan assets	6.75	%	6.50	%	5.50	%
Interest crediting rate for cash balance account1:
Starting rate	5.54	%	5.86	%	3.12	%
Ultimate rate	5.54	%	5.86	%	4.50	%
Year ultimate rate is reached	2024		2023		2026

1Edison International and SCE were using a graduated assumption for interest crediting rate for cash balance account, where current interest rate gradually increased to an ultimate rate at a certain year. Starting 2023, Edison International and SCE changed to use single interest crediting rate assumption to determine the pension expense for cash balance account.

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

(in millions)	Edison International		SCE
2025	$	332	$	291
2026	344		301
2027	338		304
2028	332		299
2029	324		294
2030 – 2034	1,496		1,370

PBOP(s)

Employees hired prior to December 31, 2017 who retire at or after age 55 with at least 10 years of service may be eligible for postretirement healthcare benefits. Eligibility for a company contribution toward the cost of these benefits in retirement depends on a number of factors, including the employee's years of service, age, hire date, and retirement date. Employees hired on or after December 31, 2017 are no longer eligible for retiree healthcare benefits. In lieu of those benefits, Edison International will provide a health reimbursement account of $200 per month available only after meeting certain age and service year requirements. Under the terms of the Edison International Welfare Benefit Plan ("PBOP Plan"), each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of PBOP Plan benefits with respect to its employees and former employees that exceed the participants' share of contributions. A participating employer may terminate the PBOP Plan benefits with respect to its employees and former employees, as may SCE (as PBOP Plan sponsor), and, accordingly, the participants' PBOP Plan benefits are not vested benefits.

There are no expected contributions for PBOP benefits for the year ended December 31, 2025. Annual contributions related to SCE employees made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans.

SCE has three voluntary employees' beneficiary association trusts ("VEBA Trusts") that can only be used to pay for retiree health care benefits of SCE and its subsidiaries. Once funded into the VEBA Trusts, neither SCE nor Edison International can subsequently recover the remaining amounts in the VEBA Trusts. Participants of the PBOP Plan do not have a beneficial interest in the VEBA Trusts. The VEBA Trust assets are sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's other postretirement benefits are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, the funded status is offset by a regulatory liability.

Information on PBOP Plan assets and benefit obligations is shown below:

	Edison International						SCE
	Years ended December 31,
(in millions)	2024			2023			2024			2023
Change in benefit obligation
Benefit obligation at beginning of year	$	773		$	1,331		$	769		$	1,323
Service cost	14			20			14			20
Interest cost	38			67			38			67
Change in plan provisions	23			—			23			—
Actuarial gain	(34)			(567)			(34)			(563)
Plan participants' contributions	26			28			26			28
Benefits paid	(99)			(106)			(99)			(106)
Benefit obligation at end of year	$	741		$	773		$	737		$	769
Change in plan assets
Fair value of plan assets at beginning of year	$	2,275		$	2,187		$	2,275		$	2,187
Actual return on assets	78			162			78			162
Employer contributions	1			4			1			4
Plan participants' contributions	26			28			26			28
Benefits paid	(99)			(106)			(99)			(106)
Fair value of plan assets at end of year	2,281			2,275			2,281			2,275
Overfunded status at end of year	$	1,540		$	1,502		$	1,544		$	1,506
Amounts recognized in the consolidated balance sheets consist of:
Long-term assets	$	1,544		$	1,506		$	1,544		$	1,506
Current liabilities	(1)			—			—			—
Long-term liabilities	(3)			(4)			—			—
	$	1,540		$	1,502		$	1,544		$	1,506
Amounts recognized in accumulated other comprehensive loss consist of:
Net gain	$	(4)		$	(5)		$	—		$	—
Amounts recognized as a regulatory liability	(1,544)			(1,505)			(1,544)			(1,505)
Weighted average assumptions used to determine obligations at end of year:
Discount rate	5.60		%	5.06		%	5.60		%	5.06		%
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

For both Edison International and SCE, the 2024 actuarial gains are primarily related to $41 million in gains from the change in discount rate. For Edison International and SCE, the 2023 actuarial gains are primarily related to $553 million and $550 million in gains from the change in postretirement medical carrier and retiree medical delivery mechanism effective in 2024, respectively.

Net periodic PBOP expense components are:

	Edison International						SCE
	Years ended December 31,
(in millions)	2024		2023		2022		2024		2023		2022
Service cost	$	14	$	20	$	34	$	14	$	20	$	34
Non-service cost (benefit)
Interest cost	38		67		56		38		67		55
Expected return on plan assets	(113)		(107)		(97)		(113)		(107)		(97)
Amortization of prior service cost	(1)		(1)		(2)		(1)		(1)		(2)
Amortization of net gain	(95)		(50)		(45)		(95)		(50)		(45)
Regulatory adjustment	157		71		55		157		71		55
Total non-service benefit1	(14)		(20)		(33)		(14)		(20)		(34)
Total expense	$	—	$	—	$	1	$	—	$	—	$	—

1Included in "Other income" on Edison International's and SCE's consolidated income statements. For further details, see Note 16.

In accordance with authoritative guidance on rate-regulated enterprises, SCE records amortization of net gains and losses to regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates.

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

	Years ended December 31,
	2024	2023	2022
Discount rate	5.06%	5.43%	2.95%
Expected long-term return on plan assets	4.88%	5.00%	3.50%
Assumed health care cost trend rates:
Current year	6.50%	6.75%	6.25%
Ultimate rate	5.00%	5.00%	5.00%
Year ultimate rate reached	2029	2029	2029

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

(in millions)	Edison International		SCE
2025	$	49	$	48
2026	50		50
2027	54		54
2028	55		54
2029	55		55
2030 – 2034	282		281

Plan Assets

Description of Pension and Postretirement Benefits Other than Pensions Investment Strategies

The investment of plan assets is overseen by a fiduciary investment committee. Plan assets are invested using a combination of asset classes and may have active and passive investment strategies within asset classes. Target allocations for 2024 pension plan assets were 17.3% for U.S. equities, 9.7% for non-U.S. equities, 55% for fixed income and 18% for opportunistic and/or alternative investments. Target allocations for 2024 PBOP plan assets (except for Represented VEBA which is 95% for fixed income and 5% for U.S. and non-U.S. equities) are 29% for U.S. and non-U.S. equities, 65% for fixed income and 6% for opportunistic and/or alternative investments. Edison International employs multiple investment management firms. Investment managers within each asset class cover a range of investment styles and approaches. Risk is managed through diversification among multiple asset classes, managers, styles and securities. Plan asset classes and

individual manager performances are measured against targets. Edison International also monitors the stability of its investment managers' organizations.

Allowable investment types under CPUC investment guidelines include:

•United States equities: common and preferred stocks of large, medium, and small companies which are predominantly United States-based.

•Non-United States equities: equity securities issued by companies domiciled outside the United States and in depository receipts which represent ownership of securities of non-United States companies.

•Fixed income: fixed income securities issued or guaranteed by the United States government, non-United States governments, government agencies and instrumentalities including municipal bonds, mortgage backed securities and corporate debt obligations. A portion of the fixed income positions may be held in debt securities that are below investment grade.

•Opportunistic, alternative and other investments: Opportunistic investments in short to intermediate term market opportunities. Investments may have fixed income and/or equity characteristics and may be either liquid or illiquid. Alternative investments are limited partnerships that invest in non-publicly traded entities. Other investments are diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid or illiquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns.

Asset class portfolio weights are permitted to range within plus or minus 5%. Where approved by the fiduciary investment committee, futures contracts are used for portfolio rebalancing and to reallocate portfolio cash positions. Where authorized, a few of the plans' investment managers employ limited use of derivatives, including futures contracts, options, options on futures and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. Derivatives are not used to leverage the plans or any portfolios.

Determination of the Expected Long-Term Rate of Return on Assets

The overall expected long-term rate of return on assets assumption is based on the long-term target asset allocation for plan assets and capital markets return forecasts for asset classes employed. A portion of the PBOP trust asset returns is subject to taxation, so the expected long-term rate of return for these assets is determined on an after-tax basis.

Capital Markets Return Forecasts

Edison International's capital markets return forecast methodologies primarily use a combination of historical market data, current market conditions, proprietary forecasting expertise, complex models to develop asset class return forecasts, and a building block approach. The forecasts are developed using variables such as real risk-free interest, inflation and asset class specific risk premiums. For equities, the risk premium is based on an implied average equity risk premium of 4% over cash. The forecasted return on private equity and opportunistic investments are estimated at a 3% premium above public equity, reflecting a premium for higher volatility and lower liquidity. For fixed income, the risk premium is based on a comprehensive modeling of credit spreads.

Fair Value of Plan Assets

The PBOP Plan and the Southern California Edison Company Retirement Plan Trust assets include investments in equity securities, U.S. treasury securities, other fixed-income securities, common/collective funds, mutual funds, other investment entities, foreign exchange and interest rate contracts, and partnership/joint ventures. Equity securities, U.S. treasury securities, and mutual and money market funds are classified as Level 1 as fair value is determined by observable, unadjusted quoted market prices in active or highly liquid and transparent markets. The fair value of the underlying investments in equity mutual funds are based on stock-exchange prices. The fair value of the underlying investments in fixed-income mutual funds and other fixed income securities including municipal bonds are based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers, and relevant credit information. Foreign exchange and interest rate contracts are classified as Level 2 because the values are based on observable prices but are not traded on an exchange. Futures contracts trade on an exchange and therefore are classified as Level 1. No investment is classified as Level 3 as of December 31, 2024 and 2023. Common/collective funds and partnerships are measured at fair value using the net asset value per share ("NAV") and have not been classified in the fair value hierarchy. Other investment entities are valued similarly to common/collective funds and are therefore classified as NAV. The Level 1 registered investment companies are either mutual or money market funds. The remaining funds in this category are readily redeemable and classified as NAV and are discussed further in the below pension plan trust investments table's note 8.

Edison International reviews the process/procedures of both the pricing services and the trustee to gain an understanding of the inputs/assumptions and valuation techniques used to price each asset type/class. The trustee and Edison International's validation procedures for pension and PBOP equity and fixed income securities are the same as the nuclear decommissioning trusts. For further discussion, see Note 4. The values of Level 1 mutual and money market funds are publicly quoted. The trustees obtain the values of common/collective and other investment funds from the fund managers. The values of partnerships are based on partnership valuation statements updated for cash flows. SCE's investment managers corroborate the trustee fair values.

Pension Plan

The following table sets forth the investments for Edison International and SCE that were accounted for at fair value as of December 31, 2024 and 2023, respectively, by asset class and level within the fair value hierarchy:

	December 31, 2024
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	244	$	353	$	—	$	597
Corporate stocks3	148		4		—		152
Corporate bonds4	—		1,084		—		1,084
Common/collective funds5	—		—		652		652
Partnerships/joint ventures6	—		—		680		680
Other investment entities7	—		—		58		58
Registered investment companies8	238		—		142		380
Interest-bearing cash	14		—		—		14
Other	—		57		8		65
Total	$	644	$	1,498	$	1,540	$	3,682
Receivables and payables, net							(74)
Combined net plan assets available for benefits							3,608
SCE's share of net plan assets							$	3,416

	December 31, 2023
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	256	$	352	$	—	$	608
Corporate stocks3	176		5		—		181
Corporate bonds4	—		1,057		—		1,057
Common/collective funds5	—		—		584		584
Partnerships/joint ventures6	—		—		657		657
Other investment entities7	—		—		58		58
Registered investment companies8	212		—		153		365
Interest-bearing cash	10		—		—		10
Other	—		46		8		54
Total	$	654	$	1,460	$	1,460	$	3,574
Receivables and payables, net							35
Combined net plan assets available for benefits							3,609
SCE's share of net plan assets							$	3,415

1These 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.

2Level 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.

3Corporate stocks are diversified. At December 31, 2024 and 2023, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (33% and 36%) and Morgan Stanley Capital International (MSCI) index (67% and 64%).

4Corporate bonds are diversified. At December 31, 2024 and 2023, respectively, this category includes $77 million and $78 million for collateralized mortgage obligations and other asset backed securities.

5The common/collective assets are invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index (38% and 41% at December 31, 2024 and 2023). In addition, at December 31, 2024 and 2023, 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 ex-US and 19% and 16% of this category are in a non-index U.S. equity fund, which is actively managed.

6At December 31, 2024 and 2023, respectively, 69% and 74% are invested in private equity funds with investment strategies that include branded consumer products and clean technology companies, 16% and 17% are invested in ABS including distressed mortgages and commercial and residential loans, 9% and zero are invested in fixed income securities, and 5% are invested in a broad range of financial assets in all global markets at both December 31, 2024 and 2023.

7At December 31, 2024 and 2023, respectively, 70% and 68% are invested in domestic mortgage backed securities and 30% and 32% in high yield debt securities.

8At December 31, 2024 and 2023, respectively, 56% and 57% are invested in Level 1 corporate bond funds, 10% and 13% in a fixed income fund used for cash management, and 34% and 28% in a US equity fund.

At December 31, 2024 and 2023, respectively, approximately 64% and 62% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States.

Postretirement Benefits Other than Pensions

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, 2024 and 2023, respectively, by asset class and level within the fair value hierarchy:

	December 31, 2024
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	489	$	51	$	—	$	540
Corporate stocks3	81		2		—		83
Corporate notes and bonds4	—		1,126		—		1,126
Common/collective funds5	—		—		235		235
Partnerships6	—		—		119		119
Registered investment companies7	52		—		—		52
Interest bearing cash	—		45		—		45
Other8	—		95		—		95
Total	$	622	$	1,319	$	354	$	2,295
Receivables and payables, net							(14)
Net plan assets available for benefits							$	2,281

	December 31, 2023
(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	569	$	84	$	—	$	653
Corporate stocks3	85		2		—		87
Corporate notes and bonds4	—		1,064		—		1,064
Common/collective funds5	—		—		222		222
Partnerships6	—		—		124		124
Registered investment companies7	47		—		—		47
Interest bearing cash	—		29		—		29
Other8	2		70		—		72
Total	$	703	$	1,249	$	346	$	2,298
Receivables and payables, net							(23)
Net plan assets available for benefits							$	2,275

1These 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.

2Level 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.

3Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (78% and 74% at December 31, 2024 and 2023, respectively) and the MSCI All Country World Index (22% and 26% at December 31, 2024 and 2023, respectively).

4Corporate notes and bonds are diversified and include approximately $343 million and $237 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2024 and 2023, respectively.

5At December 31, 2024 and 2023, respectively, 47% and 45% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Investable Market Index, 41% and 40% 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 and fixed income funds.

6At December 31, 2024 and 2023, respectively, 71% and 65% 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, 22% and 28% are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks; 7% are invested in a broad range of financial assets in all global markets at both December 31, 2024 and 2023.

7At December 31, 2024 and 2023, respectively, registered investment companies were primarily invested in a money market fund (73% and 70%) and exchange rate traded funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index and international small cap equities (27% and 30%).

8Other includes $52 million and $58 million of municipal securities at December 31, 2024 and 2023, respectively.

At both December 31, 2024 and 2023, approximately 78% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States.

Stock-Based Compensation

Edison International maintains a shareholder-approved incentive plan (the "2007 Performance Incentive Plan") that includes stock-based compensation. The maximum number of shares of Edison International's common stock authorized to be issued or transferred pursuant to awards under the 2007 Performance Incentive Plan, as amended, is approximately 71 million shares. As of December 31, 2024, Edison International had approximately 13 million shares remaining available for new award grants under its stock-based compensation plans.

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

	Edison International						SCE
	Years ended December 31,
(in millions)	2024		2023		2022		2024		2023		2022
Stock-based compensation expense1:
Stock options	$	13	$	12	$	13	$	7	$	6	$	7
Performance shares	21		15		13		10		8		6
Restricted stock units	21		17		14		15		12		9
Other	2		2		2		—		—		—
Total stock-based compensation expense	$	57	$	46	$	42	$	32	$	26	$	22
Income tax benefits related to stock-based compensation expense	$	23	$	7	$	9	$	14	$	5	$	5

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

Stock Options

Under the 2007 Performance Incentive Plan, Edison International has granted stock options at exercise prices equal to the closing price at the grant date. Edison International may grant stock options and other awards related to, or with a value derived from, its common stock to directors and certain employees. Options generally expire 10 years after the grant date and vest over a period of three or four years of continuous service in equal annual increments, except for awards granted to retirement-eligible participants, which vest on an accelerated basis.

The fair value for each option granted was determined as of the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires various assumptions noted in the following table:

	Years ended December 31,
	2024	2023	2022
Expected terms (in years)	4.7	4.8	5.0
Risk-free interest rate	3.7% - 4.5%	3.6% - 4.7%	1.6% - 4.1%
Expected dividend yield	3.6% - 4.7%	4.2% - 4.7%	4.0% - 5.0%
Weighted average expected dividend yield	4.7%	4.2%	4.0%
Expected volatility	23.6% - 30.4%	29.0% - 29.6%	27.8% - 28.6%
Weighted average volatility	30.3%	29.1%	27.8%

The expected term represents the period of time for which the options are expected to be outstanding and is primarily based on historical exercise and post-vesting cancellation experience and stock price history. The risk-free interest rate for periods within the contractual life of the option is based on a zero-coupon U.S. Treasury STRIPS (separate trading of registered interest and principal of securities) whose maturity corresponds to the option's expected term on the measurement date. Expected volatility is based on the historical volatility of Edison International's common stock for the length of the option's expected term. The volatility period used was 56 months, 58 months, and 60 months at December 31, 2024, 2023, and 2022, respectively.

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

		Weighted Average
	Shares	Exercise Price		Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Edison International:
Outstanding at December 31, 2023	11,418,243	$	64.30
Granted	749,968	66.70
Forfeited or expired	(107,158)	71.89
Exercised1	(3,417,478)	64.49
Outstanding at December 31, 2024	8,643,575	64.33		5.01
Exercisable and expected to vest at December 31, 2024	8,438,864	64.40		4.95	$	130
Exercisable at December 31, 2024	6,651,227	$	64.79	4.19	$	100
SCE:
Outstanding at December 31, 2023	5,192,275	$	64.22
Granted	390,760	66.82
Forfeited or expired	(98,077)	71.44
Exercised1	(1,892,980)	64.49
Affiliate transfers, net	14,472	64.22
Outstanding at December 31, 2024	3,606,450	64.18		5.27
Exercisable and expected to vest at December 31,2024	3,508,129	64.25		5.21	$	55
Exercisable at December 31, 2024	2,609,173	$	64.66	4.33	$	40

1Edison International and SCE recognized tax benefits of $13 million and $7 million, respectively, from stock options exercised in 2024.

At December 31, 2024, 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)	$	7	$	4
Weighted average period (in years)	1.3		1.3

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

	Edison International						SCE
	Years ended December 31,
(in millions, except per award amounts)	2024		2023		2022		2024		2023		2022
Weighted average grant date fair value per option granted	$	13.32	$	12.69	$	9.92	$	13.36	$	12.71	$	9.92
Fair value of options vested	14		8		8		7		7		5
Value of options exercised	45		14		17		25		11		12

Performance Shares

A target number of contingent performance shares were awarded to executives in 2024, 2023, and 2022 and vest as of December 31, 2026, 2025, and 2024, respectively. The vesting of the grants is dependent upon market and financial performance and service conditions as defined in the grants for each of the years. The number of performance shares earned from each year's grants could range from zero to twice the target number (plus additional units credited as dividend equivalents).

The fair value of market condition performance shares is determined using a Monte Carlo simulation valuation model for the total shareholder return. The fair value of financial performance condition performance shares is determined (i) at grant

as the target number of shares (which Edison International determined to be the probable outcome) valued at the closing price on the grant date of Edison International common stock and (ii) subsequently using Edison International's earnings per share compared to pre-established targets.

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

	Equity Awards
	Shares	Weighted Average Fair Value
Edison International:
Nonvested at December 31, 2023	496,841	$	71.93
Granted	276,838	72.21
Forfeited	(5,872)	72.57
Vested	(249,287)	67.90
Nonvested at December 31, 2024	518,520	$	74.01
SCE:
Nonvested at December 31, 2023	249,091	$	71.99
Granted	144,339	72.37
Forfeited	(5,282)	72.23
Vested	(123,197)	67.73
Affiliate transfers, net	23	71.99
Nonvested at December 31, 2024	264,974	$	74.17

Restricted Stock Units

Restricted stock units were awarded to executives in 2024, 2023, and 2022 and vest and become payable on January 4, 2027, January 2, 2026, and January 2, 2025, respectively. Each restricted stock unit awarded includes a dividend equivalent feature and is a contractual right to receive one share of Edison International common stock, if vesting requirements are satisfied. The vesting of Edison International's restricted stock units is dependent upon continuous service through the end of the vesting period, except for awards granted to retirement-eligible participants, which vest on an accelerated basis.

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

	Edison International			SCE
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2023	892,412	$	61.19	645,549	$	61.17
Granted	325,501	66.88		233,112	66.88
Forfeited	(22,886)	65.24		(18,908)	65.34
Vested	(318,579)	55.71		(238,921)	55.89
Affiliate transfers, net	—	—		(105)	61.17
Nonvested at December 31, 2024	876,448	$	65.19	620,727	$	65.22

The fair value for each restricted stock unit awarded is determined as the closing price of Edison International common stock on the grant date.