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Compensation and Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Pension and Other Postretirement Benefits  
Employee Savings Plan Employer Contributions
The following employer contributions were made for continuing operations:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2016
$
69

 
$
68

2015
73

 
72

2014
71

 
70
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table summarizes total expense and tax benefits (expense) associated with stock based compensation:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Stock-based compensation expense1:
 
 
 
 
 
 
 
 
 
 
 
   Stock options
$
14

 
$
14

 
$
16

 
$
7

 
$
8

 
$
8

   Performance shares
13

 
7

 
16

 
6

 
4

 
8

   Restricted stock units
6

 
7

 
7

 
3

 
4

 
4

   Other
1

 
1

 
1

 
—

 
—

 
—

Total stock-based compensation expense
$
34

 
$
29

 
$
40

 
$
16

 
$
16

 
$
20

Income tax benefits related to stock compensation expense
$
41

 
$
12

 
$
16

 
$
20

 
$
7

 
$
8

Excess tax benefits2
—

 
15

 
15

 
—

 
23

 
20

1 
Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income.
2 
Reflected in "Settlements of stock-based compensation, net" in the financing section of Edison International's and SCE's consolidated statements of cash flows, "Common stock" in Edison International's consolidated balance sheets and "Additional paid-in capital" in SCE's consolidated balance sheets. Edison International and SCE adopted the new accounting guidance for shared-based payments, see Note 1 for further information.
Black-Sholes Option-Pricing Model Assumptions
The Black-Scholes option-pricing model requires various assumptions noted in the following table:
 
Years ended December 31,
 
2016
 
2015
 
2014
Expected terms (in years)
5.9
 
5.9
 
6.0
Risk-free interest rate
1.2% – 2.2%
 
1.6% – 2.1%
 
1.8% – 2.1%
Expected dividend yield
2.5% – 3.0%
 
2.6% – 3.2%
 
2.4% – 2.7%
Weighted-average expected dividend yield
2.9%
 
2.6%
 
2.7%
Expected volatility
17.2% – 17.5%
 
16.4% – 17.0%
 
17.8% – 19.1%
Weighted-average volatility
17.4%
 
16.5%
 
18.9%
Summary of Stock Options Activity
The following is a summary of the status of Edison International's stock options:
 
 
 
Weighted-Average
 
 
 
Stock options
 
Exercise
Price
 
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic Value
(in millions)
Edison International:
 
 
 
 
 
 
 
Outstanding at December 31, 2015
12,866,597

 
$
45.93

 
 
 
 

Granted
2,120,009

 
67.41

 
 
 
 

Expired
—

 
—

 
 
 
 

Forfeited
(274,166
)
 
64.02

 
 
 
 

Exercised
(3,167,939
)
 
42.93

 
 
 
 

Outstanding at December 31, 2016
11,544,501

 
50.26

 
6.02
 
 

Vested and expected to vest at December 31, 2016
11,437,110

 
50.12

 
5.99
 
$
250

Exercisable at December 31, 2016
7,685,341

 
$
43.99

 
4.93
 
$
215

SCE:
 
 
 
 
 
 
 
Outstanding at December 31, 2015
5,840,057

 
$
47.77

 
 
 
 

Granted
959,478

 
67.36

 
 
 
 

Expired
—

 
—

 
 
 
 

Forfeited
(120,842
)
 
61.96

 
 
 
 

Exercised
(1,705,053
)
 
44.59

 
 
 
 

Transfers, net
(246,224
)
 
59.29

 
 
 
 
Outstanding at December 31, 2016
4,727,416

 
51.81

 
6.24
 
 

Vested and expected to vest at December 31, 2016
4,667,784

 
51.63

 
6.21
 
$
95

Exercisable at December 31, 2016
2,782,770

 
$
44.04

 
4.84
 
$
78
Schedule of Unrecognized Compensation Expense
At December 31, 2016, total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows:
(in millions)
Edison International
 
SCE
Unrecognized compensation cost, net of expected forfeitures
$
13

 
$
8

Weighted-average period (in years)
2.3

 
2.3
Supplemental Data on Stock-based Compensation
Supplemental Data on Stock Options
 
Edison International
 
SCE
 
Years ended December 31,
(in millions, except per award amounts)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Stock options:
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value per option granted
$
7.38

 
$
7.54

 
$
7.26

 
$
7.50

 
$
7.53

 
$
7.34

Fair value of options vested
11

 
20

 
17

 
5

 
11

 
9

Cash used to purchase shares to settle options
220

 
170

 
300

 
118

 
69

 
181

Cash from participants to exercise stock options
136

 
113

 
205

 
77

 
45

 
125

Value of options exercised
84

 
57

 
95

 
41

 
24

 
56

Tax benefits from options exercised
34

 
23

 
39

 
17

 
10

 
23
Summary of Nonvested Share Activity
The following is a summary of the status of Edison International's nonvested performance shares:
 
Equity Awards
 
Liability Awards
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Shares
 
Weighted-Average
Fair Value
Edison International:
 
 
 
 
 
 
 
Nonvested at December 31, 2015
57,779

 
$
61.18

 
165,629

 
$
68.44

Granted
—

 
—

 
111,754

 
 

Forfeited
(1,258
)
 
60.83

 
(13,502
)
 
 
Vested1
(56,521
)
 
61.18

 
(56,384
)
 
 

Nonvested at December 31, 2016
—

 
—

 
207,497

 
84.30

SCE:
 
 
 
 
 
 
 
Nonvested at December 31, 2015
32,463

 
$
62.01

 
90,393

 
$
68.64

Granted
—

 
—

 
50,599

 
 

Forfeited
(1,012
)
 
49.73

 
(5,751
)
 
 
Vested1
(29,080
)
 
50.75

 
(28,963
)
 
 

Affiliate transfers, net
(2,371
)
 
72.10

 
(9,611
)
 
 
Nonvested at December 31, 2016
—

 
—

 
96,667

 
84.25


1 
Relates to performance shares that will be paid in 2017 as performance targets were met at December 31, 2016.
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
 
Restricted
Stock Units
 
Weighted-Average
Grant Date
Fair Value
 
Restricted
Stock Units
 
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 2015
248,143

 
$
57.89

 
134,375

 
$
58.13

Granted
123,266

 
67.42

 
55,800

 
67.37

Forfeited
(16,435
)
 
63.73

 
(7,580
)
 
61.45

Vested
(9,579
)
 
52.01

 
(8,032
)
 
56.53

Affiliate transfers, net
—

 
—

 
(13,775
)
 
62.09

Nonvested at December 31, 2016
345,395

 
61.05

 
160,788

 
60.80
Accrued Severance Liability Workforce Reduction
The following table provides a summary of changes in the accrued severance liability associated with these reductions:

(in millions)
 
 
Balance at January 1, 2016
 
$
22

Additions
 
21

Payments
 
(40
)
Balance at December 31, 2016
 
$
3
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)
2016
 
2015
 
2016
 
2015
Change in projected benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
4,374

 
$
4,517

 
$
3,878

 
$
3,999

Service cost
139

 
142

 
132

 
133

Interest cost
171

 
170

 
150

 
150

Actuarial gain
(125
)
 
(149
)
 
(140
)
 
(143
)
Benefits paid
(275
)
 
(305
)
 
(229
)
 
(261
)
Other
—

 
(1
)
 
—

 
—

Projected benefit obligation at end of year
$
4,284

 
$
4,374

 
$
3,791

 
$
3,878

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
3,298

 
$
3,454

 
$
3,080

 
$
3,217

Actual return on plan assets
262

 
30

 
239

 
27

Employer contributions
103

 
119

 
82

 
97

Benefits paid
(275
)
 
(305
)
 
(229
)
 
(261
)
Fair value of plan assets at end of year
$
3,388

 
$
3,298

 
$
3,172

 
$
3,080

Funded status at end of year
$
(896
)
 
$
(1,076
)
 
$
(619
)
 
$
(798
)
Amounts recognized in the consolidated balance sheets consist of 1:
 
 
 
 
 
 
 
Long-term assets
$
2

 
$
—

 
$
—

 
$
—

Current liabilities
(50
)
 
(27
)
 
(4
)
 
(4
)
Long-term liabilities
(848
)
 
(1,049
)
 
(615
)
 
(794
)
 
$
(896
)
 
$
(1,076
)
 
$
(619
)
 
$
(798
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
Prior service cost
$
(1
)
 
$
—

 
$
—

 
$
—

Net loss1
93

 
96

 
24

 
27

 
$
92

 
$
96

 
$
24

 
$
27

Amounts recognized as a regulatory asset
$
574

 
$
675

 
$
574

 
$
675

Total not yet recognized as expense
$
666

 
$
771

 
$
598

 
$
702

Accumulated benefit obligation at end of year
$
4,138

 
$
4,200

 
$
3,683

 
$
3,744

Pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
4,284

 
$
4,374

 
$
3,791

 
$
3,878

Accumulated benefit obligation
4,138

 
4,200

 
3,683

 
3,744

Fair value of plan assets
3,388

 
3,298

 
3,172

 
3,080

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
3.94
%
 
4.18
%
 
3.94
%
 
4.18
%
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 $124 million and $123 million at December 31, 2016 and 2015, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $24 million and $27 million at December 31, 2016 and 2015, respectively, excludes net loss of $20 million and $18 million related to these benefits.
Expense Components for Plans
Pension expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
$
139

 
$
142

 
$
133

 
$
136

 
$
139

 
$
128

Interest cost
172

 
170

 
181

 
156

 
155

 
164

Expected return on plan assets
(220
)
 
(233
)
 
(229
)
 
(205
)
 
(217
)
 
(213
)
Settlement costs1
—

 
—

 
45

 
—

 
—

 
42

Curtailment gain
—

 
—

 
(4
)
 
—

 
—

 
—

Amortization of prior service cost
4

 
5

 
5

 
4

 
5

 
5

Amortization of net loss2
27

 
40

 
12

 
23

 
35

 
7

Expense under accounting standards
122

 
124

 
143

 
114

 
117

 
133

Regulatory adjustment (deferred)
(21
)
 
(6
)
 
8

 
(21
)
 
(6
)
 
8

Total expense recognized
$
101

 
$
118

 
$
151

 
$
93

 
$
111

 
$
141


1 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was zero for the both the years ended December 31, 2016 and 2015 and $3 million for the year ended December 31, 2014.
2 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $10 million and $6 million, respectively, for the year ended December 31, 2016. The amount reclassified for Edison International and SCE was $14 million and $8 million, respectively, for the year ended December 31, 2015. The amount reclassified for Edison International and SCE was $9 million and $4 million, respectively, for the year ended December 31, 2014
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 loss for continuing operations:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net loss (gain)
$
6

 
$
7

 
$
85

 
$
4

 
$
(9
)
 
$
37

Amortization of net loss and other
(10
)
 
(15
)
 
(13
)
 
(6
)
 
(9
)
 
(4
)
Total recognized in other comprehensive loss
$
(4
)
 
$
(8
)
 
$
72

 
$
(2
)
 
$
(18
)
 
$
33

Total recognized in expense and other comprehensive loss
$
97

 
$
110

 
$
223

 
$
91

 
$
93

 
$
174
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated pension amounts that will be amortized to expense in 2017 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized net loss to be amortized1
$
19

 
$
15

Unrecognized prior service cost to be amortized
3

 
3


1 
The amount of net loss expected to be reclassified from other comprehensive loss for Edison International's continuing operations and SCE is $10 million and $6 million, respectively.
Schedule of Assumptions Used
Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations:
 
Years ended December 31,
 
2016
 
2015
 
2014
Discount rate
4.18
%
 
3.85
%
 
4.50
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
Expected long-term return on plan assets
7.00
%
 
7.00
%
 
7.00
%
Schedule of Expected Benefit Payments
The following benefit payments, which reflect expected future service, are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2017
$
346

 
$
271

2018
332

 
298

2019
344

 
300

2020
341

 
304

2021
341

 
304

2022 – 2026
1,566

 
1,396
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels
The following table sets forth the Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
217

 
$
309

 
$
—

 
$
—

 
$
526

Corporate stocks3
720

 
15

 
—

 
—

 
735

Corporate bonds4
—

 
725

 
—

 
—

 
725

Common/collective funds5
—

 
—

 
—

 
692

 
692

Partnerships/joint ventures6
—

 
—

 
—

 
333

 
333

Other investment entities7
—

 
—

 
—

 
253

 
253

Registered investment companies8
124

 
—

 
—

 
6

 
130

Interest-bearing cash
42

 
—

 
—

 
—

 
42

Other
—

 
112

 
—

 
—

 
112

Total
$
1,103

 
$
1,161

 
$
—

 
$
1,284

 
$
3,548

Receivables and payables, net
 

 
 

 
 
 
 

 
(160
)
Net plan assets available for benefits
 

 
 

 
 
 
 

 
$
3,388

SCE's share of net plan assets
 
 
 
 
 
 
 
 
$
3,172

The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2015 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
127

 
$
298

 
$
—

 
$
—

 
$
425

Corporate stocks3
720

 
16

 
—

 
—

 
736

Corporate bonds4
—

 
755

 
—

 
—

 
755

Common/collective funds5
—

 
—

 
—

 
640

 
640

Partnerships/joint ventures6
—

 
—

 
—

 
325

 
325

Other investment entities7
—

 
—

 
—

 
263

 
263

Registered investment companies8
117

 
—

 
—

 
4

 
121

Interest-bearing cash
6

 
—

 
—

 
—

 
6

Other
1

 
96

 
—

 
—

 
97

Total
$
971

 
$
1,165

 
$
—

 
$
1,232

 
$
3,368

Receivables and payables, net
 

 
 

 
 
 
 

 
(70
)
Net plan assets available for benefits
 

 
 

 
 
 
 

 
$
3,298

SCE's share of net plan assets
 
 
 
 
 
 
 
 
$
3,080

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, 2016 and 2015, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (62%) and (59%) and Morgan Stanley Capital International (MSCI) index (38%) and (41%).
4 
Corporate bonds are diversified. At December 31, 2016 and 2015, respectively, this category includes $76 million and $123 million for collateralized mortgage obligations and other asset backed securities of which $27 million and $25 million are below investment grade.
5 
At December 31, 2016 and 2015, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's (S&P 500) Index (45% and 46%) and Russell 1000 indexes (15% and 14%). At December 31, 2016 and 2015, 15% and 16% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and MSCI Europe, Australasia and Far East (EAFE) Index, respectively. A non-index U.S. equity fund representing 23% and 22% of this category for 2016 and 2015, respectively, is actively managed.
6 
At December 31, 2016 and 2015, respectively, 55% and 51% are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies, 22% and 20% are invested in publicly traded fixed income securities, 18% and 14% are invested in a broad range of financial assets in all global markets and 4% and 15% of the remaining partnerships are invested in asset backed securities, including distressed mortgages and commercial and residential loans and debt and equity of banks.
7 
Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities.
8 
Level 1 of registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. The funds classified as NAV primarily consisted of a fixed income securities fund.
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
Information on PBOP Plan assets and benefit obligations is shown below:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2016
 
2015
 
2016
 
2015
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,350

 
$
2,784

 
$
2,341

 
$
2,775

Service cost
35

 
46

 
34

 
46

Interest cost
97

 
102

 
97

 
102

Special termination benefits
2

 
(2
)
 
2

 
(2
)
Plan Amendments
(6
)
 
—

 
(6
)
 
—

Actuarial gain
(110
)
 
(500
)
 
(110
)
 
(500
)
Plan participants' contributions
19

 
20

 
19

 
20

Benefits paid
(111
)
 
(100
)
 
(111
)
 
(100
)
Benefit obligation at end of year
$
2,276

 
$
2,350

 
$
2,266

 
$
2,341

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
2,036

 
$
2,086

 
$
2,036

 
$
2,086

Actual return on assets
137

 
6

 
137

 
6

Employer contributions
21

 
24

 
21

 
24

Plan participants' contributions
19

 
20

 
19

 
20

Benefits paid
(111
)
 
(100
)
 
(111
)
 
(100
)
Fair value of plan assets at end of year
$
2,102

 
$
2,036

 
$
2,102

 
$
2,036

Funded status at end of year
$
(174
)
 
$
(314
)
 
$
(164
)
 
$
(305
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
Current liabilities
$
(14
)
 
$
(15
)
 
$
(13
)
 
$
(15
)
Long-term liabilities
(160
)
 
(299
)
 
(151
)
 
(290
)
 
$
(174
)
 
$
(314
)
 
$
(164
)
 
$
(305
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
    Net loss
$
4

 
$
4

 
$
—

 
$
—

Amounts recognized as a regulatory asset
$
136

 
$
174

 
$
136

 
$
174

Total not yet recognized as expense
$
140

 
$
178

 
$
136

 
$
174

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
4.29
%
 
4.55
%
 
4.29
%
 
4.55
%
Assumed health care cost trend rates:
 
 
 
 
 
 
 
Rate assumed for following year
7.00
%
 
7.50
%
 
7.00
%
 
7.50
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2022

 
2022

 
2022

 
2022
Expense Components for Plans
PBOP expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
$
35

 
$
46

 
$
40

 
$
34

 
$
46

 
$
40

Interest cost
97

 
102

 
117

 
97

 
102

 
117

Expected return on plan assets
(112
)
 
(116
)
 
(108
)
 
(112
)
 
(116
)
 
(108
)
Special termination benefits1
2

 
1

 
3

 
2

 
1

 
3

Amortization of prior service credit
(2
)
 
(12
)
 
(36
)
 
(2
)
 
(12
)
 
(35
)
Amortization of net loss
—

 
3

 
6

 
—

 
2

 
5

Total expense
$
20

 
$
24

 
$
22

 
$
19

 
$
23

 
$
22


1 
Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated PBOP amounts that will be amortized to expense in 2017 for continuing operations are as follows:
    
Edison International
 
SCE
Unrecognized prior service credit to be amortized
$
(2
)
 
$
(2
)
Schedule of Assumptions Used
Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations:
 
Years ended December 31,
 
2016
 
2015
 
2014
Discount rate
4.55
%
 
4.16
%
 
5.00
%
Expected long-term return on plan assets
5.60
%
 
5.50
%
 
5.50
%
Assumed health care cost trend rates:
 
 
 
 
 
Current year
7.50
%
 
7.75
%
 
7.75
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2022

 
2021

 
2020
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate
A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations:
 
Edison International
 
SCE
(in millions)
One-Percentage-Point Increase
 
One-Percentage-Point Decrease
 
One-Percentage-Point Increase
 
One-Percentage-Point Decrease
Effect on accumulated benefit obligation as of December 31, 2016
$
244

 
$
(200
)
 
$
243

 
$
(199
)
Effect on annual aggregate service and interest costs
11

 
(9
)
 
11

 
(9
)
Schedule of Expected Benefit Payments
The following benefit payments are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2017
$
98

 
$
98

2018
102

 
102

2019
105

 
105

2020
109

 
109

2021
113

 
112

2022 – 2026
612

 
609
Postretirement Benefits Other than 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, 2016 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
222

 
$
59

 
$
—

 
$
—

 
$
281

Corporate stocks3
230

 
—

 
—

 
—

 
230

Corporate notes and bonds4
—

 
877

 
—

 
—

 
877

Common/collective funds5
—

 
—

 
—

 
462

 
462

Partnerships6
—

 
—

 
—

 
79

 
79

Registered investment companies7
48

 
—

 
—

 
1

 
49

Interest bearing cash
48

 
—

 
—

 
—

 
48

Other8
4

 
103

 
—

 
—

 
107

Total
$
552

 
$
1,039

 
$
—

 
$
542

 
$
2,133

Receivables and payables, net
 

 
 

 
 
 
 

 
(31
)
Combined net plan assets available for benefits
 

 
 

 
 
 
 

 
$
2,102

The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2015 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
200

 
$
42

 
$
—

 
$
—

 
$
242

Corporate stocks3
222

 
—

 
—

 
—

 
222

Corporate notes and bonds4
—

 
867

 
—

 
—

 
867

Common/collective funds5
—

 
—

 
—

 
424

 
424

Partnerships6
—

 
—

 
—

 
93

 
93

Registered investment companies7
60

 
—

 
—

 
3

 
63

Interest bearing cash
31

 
—

 
—

 
—

 
31

Other8
5

 
113

 
—

 
—

 
118

Total
$
518

 
$
1,022

 
$
—

 
$
520

 
$
2,060

Receivables and payables, net
 

 
 

 
 
 
 

 
(24
)
Combined net plan assets available for benefits
 

 
 

 
 
 
 

 
$
2,036

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 (47%) and the MSCI All Country World Index (53%) for both 2016 and 2015.
4 
Corporate notes and bonds are diversified and include approximately $47 million and $27 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2016 and 2015, respectively.
5 
At December 31, 2016 and 2015, respectively, 39% and 38% of the common/collective assets are invested in a large cap index fund which seeks to track performance of the Russell 1000 index. 39% and 41% of the remaining assets in this category are in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and MSCI Europe, Australasia and Far East (EAFE) Index. 18% and 17% in a non-index U.S. equity fund which is actively managed.
6 
At December 31, 2016 and 2015, respectively, 59% and 56% 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. 31% and 21% are invested in a broad range of financial assets in all global markets. 9% and 23% of the remaining partnerships category is invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks.
7 
Level 1 registered investment companies consist of a money market fund.
8 
Other includes $76 million and $97 million of municipal securities at December 31, 2016 and 2015, respectively.