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Investments
 9 Months Ended
Sep. 30, 2016
Investments, All Other Investments [Abstract]  
Investments
Investments
Nuclear Decommissioning Trusts
Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.
The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments):
 
Longest
Maturity
Dates
 
Amortized Cost
 
Fair Value
(in millions)
 
September 30,
2016
 
December 31,
2015
 
September 30,
2016
 
December 31, 2015
Stocks
—
 
$
321

 
$
304

 
$
1,538

 
$
1,460

Municipal bonds
2054
 
653

 
691

 
813

 
840

U.S. government and agency securities
2055
 
1,114

 
1,070

 
1,215

 
1,128

Corporate bonds
2057
 
656

 
708

 
740

 
755

Short-term investments and receivables/payables1
One-year
 
67

 
144

 
70

 
148

Total
 
 
$
2,811

 
$
2,917

 
$
4,376

 
$
4,331


1
Short-term investments include $81 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and matured by January 5, 2016 as of December 31, 2015.
Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $1.6 billion and $1.4 billion at September 30, 2016 and December 31, 2015, respectively.
The following table sets forth a summary of changes in the fair value of the trust:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
 
2016
 
2015
 
2016
 
2015
Balance at beginning of period
 
$
4,344

 
$
4,836

 
$
4,331

 
$
4,799

Gross realized gains
 
18

 
183

 
61

 
215

Gross realized losses
 
(1
)
 
(10
)
 
(5
)
 
(15
)
Unrealized gains (losses), net
 
32

 
(316
)
 
153

 
(343
)
Other-than-temporary impairments
 
(2
)
 
(10
)
 
(10
)
 
(22
)
Interest and dividends
 
28

 
28

 
88

 
88

Contributions
 
—

 
—

 
—

 
7

Income taxes
 
(5
)
 
—

 
(47
)
 
(14
)
Decommissioning disbursements
 
(38
)
 
(319
)
 
(192
)
 
(319
)
Administrative expenses and other
 
—

 
(4
)
 
(3
)
 
(8
)
Balance at end of period
 
$
4,376

 
$
4,388

 
$
4,376

 
$
4,388


Trust assets are used to pay income taxes as the Trust files separate income tax returns from SCE. Deferred tax liabilities related to net unrealized gains at September 30, 2016 were $383 million. Accordingly, the fair value of Trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion at September 30, 2016. Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.
Acquisitions
During the third quarter, a subsidiary of SoCore Energy agreed to acquire equity interests in up to 20 solar garden development projects in Minnesota as part of the SunEdison bankruptcy proceedings, subject to certain conditions. The exclusivity period on six of the projects expired in October 2016 under the terms of the agreement and consequently, the projects were not acquired. There are 14 remaining projects totaling 94 MWdc with a purchase price up to $41.9 million, if all projects achieve the required conditions. SoCore Energy would also reimburse SunEdison up to $8.7 million of project specific interconnection costs. Not all of the projects are expected to achieve the closing conditions. Three of these development projects (21 MWdc) are expected to be acquired in the fourth quarter of 2016. SoCore Energy expects to fund construction costs and arrange third-party tax equity and debt financing by completion of construction.