(Mark One) | |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2017 | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Commission File Number | Exact Name of Registrant as specified in its charter | State or Other Jurisdiction of Incorporation or Organization | IRS Employer Identification Number | |||
1-9936 | EDISON INTERNATIONAL | California | 95-4137452 | |||
1-2313 | SOUTHERN CALIFORNIA EDISON COMPANY | California | 95-1240335 |
EDISON INTERNATIONAL | SOUTHERN CALIFORNIA EDISON COMPANY | |
2244 Walnut Grove Avenue (P.O. Box 976) Rosemead, California 91770 (Address of principal executive offices) | 2244 Walnut Grove Avenue (P.O. Box 800) Rosemead, California 91770 (Address of principal executive offices) | |
(626) 302-2222 (Registrant's telephone number, including area code) | (626) 302-1212 (Registrant's telephone number, including area code) |
Title of each class | Name of each exchange on which registered | |
Edison International: Common Stock, no par value | NYSE LLC | |
Southern California Edison Company: Cumulative Preferred Stock | NYSE American LLC | |
4.08% Series, 4.24% Series, 4.32% Series, 4.78% Series |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-12 of the Exchange Act. (Check One): | |||||
Edison International | Large Accelerated Filer þ | Accelerated Filer o | Non-accelerated Filer o | Smaller Reporting Company o | Emerging growth company o |
Southern California Edison Company | Large Accelerated Filer o | Accelerated Filer o | Non-accelerated Filer þ | Smaller Reporting Company o | Emerging growth company o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | |||
Edison International | o | Southern California Edison Company | o |
Common Stock outstanding as of February 20, 2018: | ||
Edison International | 325,811,206 shares | |
Southern California Edison Company | 434,888,104 shares (wholly owned by Edison International) |
SEC Form 10-K Reference Number | |||||
Part II, Item 7 | |||||
Part I, Item 1A | |||||
Part II, Item 7A | |||||
Part II, Item 8 | |||||
Part II, Item 6 | |||||
Part II, Item 9A | |||||
Part II, Item 9B | |||||
Part II, Item 9 | |||||
Part I, Item 1 | |||||
Part I, Item 1B | |||||
Part I, Item 2 | |||||
Part I, Item 3 | |||||
Montecito Mudslides Litigation | |||||
Part III, Item 10 | |||||
Part III, Item 10 | |||||
Part III, Item 10 | |||||
Part III, Item 11 | |||||
Part III, Item 12 | |||||
Part III, Item 13 | |||||
Part III, Item 14 | |||||
Part II, Item 5 | |||||
Part IV, Item 15 | |||||
AFUDC | allowance for funds used during construction | |
ALJ | administrative law judge | |
ARO(s) | asset retirement obligation(s) | |
Bcf | billion cubic feet | |
bonus depreciation | Current federal tax deduction of a percentage of the qualifying property placed in service during periods permitted under tax laws | |
BRRBA | Base Revenue Requirement Balancing Account | |
CAISO | California Independent System Operator | |
Cal Fire | California Department of Forestry and Fire Protection | |
CCAs | Community Choice Aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses | |
CPUC | California Public Utilities Commission | |
DOE | U.S. Department of Energy | |
DERs | distributed energy resources | |
DRP | Distributed Resources Plan | |
Edison Energy | Edison Energy, LLC, a wholly-owned subsidiary of Edison Energy Group that advises and provides energy solutions to large energy users | |
Edison Energy Group | Edison Energy Group, Inc., the holding company for subsidiaries engaged in competitive businesses focused on providing energy services, including distributed generation and/or storage, to commercial and industrial customers | |
EME | Edison Mission Energy | |
EME Settlement Agreement | Settlement Agreement by and among Edison Mission Energy, Edison International and the Consenting Noteholders identified therein, dated February 18, 2014 | |
ERRA | Energy Resource Recovery Account | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
GAAP | generally accepted accounting principles | |
GHG | greenhouse gas | |
GRC | general rate case | |
GWh | gigawatt-hours | |
HLBV | hypothetical liquidation at book value | |
IRS | Internal Revenue Service | |
Joint Proxy Statement | Edison International's and SCE's definitive Proxy Statement to be filed with the SEC in connection with Edison International's and SCE's Annual Shareholders' Meeting to be held on April 26, 2018 | |
MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations in this report | |
MHI | Mitsubishi Heavy Industries, Inc. and related companies | |
MW | megawatts | |
MWdc | megawatts measured for solar projects representing the accumulated peak capacity of all the solar modules | |
NDCTP | Nuclear Decommissioning Cost Triennial Proceeding | |
NEIL | Nuclear Electric Insurance Limited | |
NEM | net energy metering | |
NERC | North American Electric Reliability Corporation | |
NOL | net operating loss | |
NRC | Nuclear Regulatory Commission | |
ORA | CPUC's Office of Ratepayers Advocates |
OII | Order Instituting Investigation | |
OII Parties | SCE, SDG&E, The Alliance for Nuclear Responsibility, The California Large Energy Consumers Association, California State University, Citizens Oversight dba Coalition to Decommission San Onofre, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, ORA, TURN, and Women's Energy Matters, all of whom are parties to the Revised San Onofre Settlement Agreement | |
Palo Verde | nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest | |
PBOP(s) | postretirement benefits other than pension(s) | |
Prior San Onofre Settlement Agreement | San Onofre OII Settlement Agreement by and among TURN, ORA, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth, dated November 20, 2014 | |
ROE | return on common equity | |
Revised San Onofre Settlement Agreement | Revised San Onofre OII Settlement Agreement among OII Parties, dated January 30, 2018 | |
S&P | Standard & Poor's Ratings Services | |
San Onofre | retired nuclear generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest | |
SCE | Southern California Edison Company | |
SDG&E | San Diego Gas & Electric | |
SEC | U.S. Securities and Exchange Commission | |
SED | Safety and Enforcement Division of the CPUC | |
SoCalGas | Southern California Gas Company | |
SoCore Energy | SoCore Energy LLC, a subsidiary of Edison Energy Group that provides solar energy and energy storage solutions | |
TAMA | Tax Accounting Memorandum Account | |
Tax Reform | Tax Cuts and Jobs Act signed into law on December 22, 2017 | |
TURN | The Utility Reform Network | |
US EPA | U.S. Environmental Protection Agency |
• | ability of SCE to recover its costs in a timely manner from its customers through regulated rates, including costs related to San Onofre, uninsured wildfire-related liabilities, and spending on grid modernization; |
• | ability to obtain sufficient insurance at a reasonable cost, including insurance relating to SCE's nuclear facilities and wildfire-related exposure, and to recover the costs of such insurance or, in the absence of insurance, the ability to recover uninsured losses; |
• | decisions and other actions by the CPUC, the FERC, the NRC and other regulatory authorities, including determinations of authorized rates of return or return on equity, the 2018 GRC, the recoverability of wildfire-related costs, and delays in regulatory actions; |
• | ability of Edison International or SCE to borrow funds and access the capital markets on reasonable terms; |
• | risks associated with the decommissioning of San Onofre, including those related to public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel, and cost overruns; |
• | extreme weather-related incidents and other natural disasters, including earthquakes and events caused, or exacerbated, by climate change, such as wildfires; |
• | risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure due to CCAs; |
• | risks inherent in SCE's transmission and distribution infrastructure investment program, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, power curtailment costs (payments due under power contracts in the event there is insufficient transmission to enable acceptance of power delivery), changes in the CAISO's transmission plans, and governmental approvals; |
• | risks associated with the operation of transmission and distribution assets and power generating facilities, including public safety issues, failure, availability, efficiency, and output of equipment and availability and cost of spare parts; |
• | physical security of Edison International's and SCE's critical assets and personnel and the cybersecurity of Edison International's and SCE's critical information technology systems for grid control, and business and customer data; |
• | ability of Edison International to develop competitive businesses, manage new business risks, and recover and earn a return on its investment in newly developed or acquired businesses; |
• | changes in tax laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could affect recorded deferred tax assets and liabilities and effective tax rate; |
• | changes in the fair value of investments and other assets; |
• | changes in interest rates and rates of inflation, including escalation rates, which may be adjusted by public utility regulators; |
• | governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the NERC, CAISO, Western Electricity Council, and similar regulatory bodies in adjoining regions; |
• | availability and creditworthiness of counterparties and the resulting effects on liquidity in the power and fuel markets and/or the ability of counterparties to pay amounts owed in excess of collateral provided in support of their obligations; |
• | cost and availability of labor, equipment and materials; |
• | potential for penalties or disallowance for non-compliance with applicable laws and regulations; |
• | cost of fuel for generating facilities and related transportation, which could be impacted by, among other things, disruption of natural gas storage facilities, to the extent not recovered through regulated rate cost escalation provisions or balancing accounts; and |
• | disruption of natural gas supply due to unavailability of storage facilities, which could lead to electricity service interruptions. |
(in millions) | 2017 | 2016 | 2017 vs 2016 Change | 2015 | |||||||||||
Net income (loss) attributable to Edison International | |||||||||||||||
Continuing operations | |||||||||||||||
SCE | $ | 1,012 | $ | 1,376 | $ | (364 | ) | $ | 998 | ||||||
Edison International Parent and Other | (447 | ) | (77 | ) | (370 | ) | (13 | ) | |||||||
Discontinued operations | — | 12 | (12 | ) | 35 | ||||||||||
Edison International | 565 | 1,311 | (746 | ) | 1,020 | ||||||||||
Less: Non-core items | |||||||||||||||
SCE | |||||||||||||||
Write-down, impairment and other charges | (448 | ) | — | (448 | ) | (382 | ) | ||||||||
NEIL insurance recoveries | — | — | — | 12 | |||||||||||
Re-measurement of deferred taxes | (33 | ) | — | (33 | ) | — | |||||||||
Edison International Parent and Other | |||||||||||||||
Re-measurement of deferred taxes | (433 | ) | — | (433 | ) | — | |||||||||
Edison Capital sale of affordable housing portfolio | — | — | — | 10 | |||||||||||
Income from allocation of losses to tax equity investor | 13 | 5 | 8 | 9 | |||||||||||
Discontinued operations | — | 12 | (12 | ) | 35 | ||||||||||
Total non-core items | (901 | ) | 17 | (918 | ) | (316 | ) | ||||||||
Core earnings (losses) | |||||||||||||||
SCE | 1,493 | 1,376 | 117 | 1,368 | |||||||||||
Edison International Parent and Other | (27 | ) | (82 | ) | 55 | (32 | ) | ||||||||
Edison International | $ | 1,466 | $ | 1,294 | $ | 172 | $ | 1,336 |
• | Impairment and other charges of $716 million ($448 million after-tax) in 2017 related to the Revised San Onofre Settlement Agreement. For further information, see "—Permanent Retirement of San Onofre" below. |
• | Charges of $433 million in 2017 for Edison International Parent and Other and $33 million for SCE from the re-measurement of deferred taxes as a result of the Tax Cuts and Jobs Act ("Tax Reform"). For further information see "— Tax Reform" below. |
• | Income of $21 million ($13 million after-tax), $9 million ($5 million after-tax) and $16 million ($9 million after-tax) for 2017, 2016 and 2015, respectively, related to losses (net of distributions) allocated to tax equity investors under the HLBV accounting method. Edison International core earnings reflected the operating results of the solar projects, related financings and the priority return to the tax equity investor. The losses allocated to the tax equity investor under HLBV accounting method results in income allocated to subsidiaries of Edison International, neither of which is due to the operating performance of the projects but rather due to the allocation of income tax attributes under the tax equity financing. Accordingly, Edison International has included the non-operating allocation of income as a non-core item. For further information on HLBV, see "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies." |
• | Income from discontinued operations was $1 million ($12 million after-tax) and $15 million ($35 million after-tax) for 2016 and 2015, respectively, which was primarily related to the resolution of tax issues related to EME. The discontinued operations from 2015 also reflects proceeds from insurance recoveries related to EME. See "Notes to Consolidated Financial Statements—Note 7. Income Taxes" for further information. |
• | Tax expense of $382 million in 2015 related to the write-down of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions resulting from the 2015 GRC decision. |
• | Income of $20 million ($12 million after-tax) in 2015 at SCE related to shareholder's portion of NEIL insurance recoveries arising from the outage and shutdown of the San Onofre Units 2 and 3 generating stations and the recovery of legal costs. |
• | Income of $16 million ($10 million after-tax) in 2015 related to completion of the sale of Edison Capital's affordable housing investment portfolio which represented the exit from this business activity. |
(in millions) | |||
San Onofre base regulatory asset | $ | 696 | |
DOE litigation regulatory liability | (72 | ) | |
MHI Arbitration regulatory liability | (47 | ) | |
GHG Reduction Program | (10 | ) | |
Other | 6 | ||
Present value of Utility Shareholder Agreement | 143 | ||
Total pre-tax charge | $ | 716 | |
Total after-tax charge | $ | 448 |
(in millions) | 2017 | 2018 | 2019 | 2020 | Total 2018 – 2020 | |||||||||||
Traditional capital expenditures1 | ||||||||||||||||
Distribution2 | $ | 3,131 | $ | 3,399 | $ | 3,161 | $ | 3,048 | $ | 9,608 | ||||||
Transmission | 501 | 609 | 762 | 874 | 2,245 | |||||||||||
Generation | 203 | 193 | 212 | 201 | 606 | |||||||||||
Total traditional capital expenditures1 | $ | 3,835 | $ | 4,201 | $ | 4,135 | $ | 4,123 | $ | 12,459 | ||||||
Grid modernization capital expenditures2 | $ | — | $ | — | $ | 649 | $ | 608 | $ | 1,257 | ||||||
Total capital expenditures | $ | 3,835 | $ | 4,201 | $ | 4,784 | $ | 4,731 | $ | 13,716 |
1 | Includes 2018 – 2020 capital expenditures of $49 million for Energy Storage, $10 million for Transportation Electrification, and $4 million for Charge Ready. |
2 | 2017 and 2018 capital expenditures related to grid modernization are included in traditional capital expenditures. |
(in millions) | 2018 | 2019 | 2020 | |||||||
Rate base for requested traditional capital expenditures | $ | 28,860 | $ | 31,070 | $ | 33,332 | ||||
Rate base for requested grid modernization capital expenditures | 264 | 743 | 1,279 | |||||||
Total rate base | $ | 29,124 | $ | 31,813 | $ | 34,611 |
• | Earning activities – representing revenue authorized by the CPUC and FERC which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances. |
• | Cost-recovery activities – representing CPUC- and FERC-authorized balancing accounts which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs) and certain operation and maintenance expenses. SCE earns no return on these activities. |
2017 | 2016 | 2015 | |||||||||||||||||||||||||
(in millions) | Earning Activities | Cost- Recovery Activities | Total Consolidated | Earning Activities | Cost- Recovery Activities | Total Consolidated | Earning Activities | Cost- Recovery Activities | Total Consolidated | ||||||||||||||||||
Operating revenue | $ | 6,611 | $ | 5,643 | $ | 12,254 | $ | 6,504 | $ | 5,326 | $ | 11,830 | $ | 6,305 | $ | 5,180 | $ | 11,485 | |||||||||
Purchased power and fuel | — | 4,873 | 4,873 | — | 4,527 | 4,527 | — | 4,266 | 4,266 | ||||||||||||||||||
Operation and maintenance | 1,902 | 769 | 2,671 | 1,939 | 798 | 2,737 | 1,977 | 913 | 2,890 | ||||||||||||||||||
Depreciation and amortization | 2,032 | — | 2,032 | 1,998 | — | 1,998 | 1,915 | — | 1,915 | ||||||||||||||||||
Property and other taxes | 372 | — | 372 | 351 | — | 351 | 334 | — | 334 | ||||||||||||||||||
Impairment and other charges | 716 | — | 716 | — | — | — | — | — | — | ||||||||||||||||||
Other operating income | (8 | ) | — | (8 | ) | — | — | — | — | — | — | ||||||||||||||||
Total operating expenses | 5,014 | 5,642 | 10,656 | 4,288 | 5,325 | 9,613 | 4,226 | 5,179 | 9,405 | ||||||||||||||||||
Operating income | 1,597 | 1 | 1,598 | 2,216 | 1 | 2,217 | 2,079 | 1 | 2,080 | ||||||||||||||||||
Interest expense | (588 | ) | (1 | ) | (589 | ) | (540 | ) | (1 | ) | (541 | ) | (525 | ) | (1 | ) | (526 | ) | |||||||||
Other income and expenses | 97 | — | 97 | 79 | — | 79 | 64 | — | 64 | ||||||||||||||||||
Income before income taxes | 1,106 | — | 1,106 | 1,755 | — | 1,755 | 1,618 | — | 1,618 | ||||||||||||||||||
Income tax (benefit) expense | (30 | ) | — | (30 | ) | 256 | — | 256 | 507 | — | 507 | ||||||||||||||||
Net income | 1,136 | — | 1,136 | 1,499 | — | 1,499 | 1,111 | — | 1,111 | ||||||||||||||||||
Preferred and preference stock dividend requirements | 124 | — | 124 | 123 | — | 123 | 113 | — | 113 | ||||||||||||||||||
Net income available for common stock | $ | 1,012 | $ | — | $ | 1,012 | $ | 1,376 | $ | — | $ | 1,376 | $ | 998 | $ | — | $ | 998 | |||||||||
Net income available for common stock | $ | 1,012 | $ | 1,376 | $ | 998 | |||||||||||||||||||||
Less: Non-core items | |||||||||||||||||||||||||||
Impairment and other charges | (448 | ) | — | (382 | ) | ||||||||||||||||||||||
Re-measurement of deferred taxes | (33 | ) | — | — | |||||||||||||||||||||||
NEIL insurance recoveries | — | — | 12 | ||||||||||||||||||||||||
Core earnings1 | $ | 1,493 | $ | 1,376 | $ | 1,368 |
1 | See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results." |
• | Higher operating revenue of $107 million is primarily due to: |
• | An increase in revenue of approximately $241 million related to the increase in authorized revenue from the escalation mechanism set forth in the 2015 GRC decision and $32 million of higher operating costs subject to balancing account treatment (primarily offset in depreciation expense below). These increases were partially offset by $33 million of lower revenue related to the extension of bonus depreciation and a $15 million revenue reduction for the expected refund to customers of prior overcollections identified in 2017. |
• | Energy efficiency incentive awards recognized in 2017 were $17 million compared to $5 million in 2016. During 2016, the CPUC approved a settlement agreement in which SCE agreed to refund $13 million related to incentive awards SCE received for savings achieved by its 2006 – 2008 energy efficiency programs. |
• | A decrease in revenue of $118 million related to tax benefits refunded to customers (offset in income taxes below). The decrease in revenue resulted from $116 million of higher year-over-year incremental tax repair benefits recognized and $135 million of benefits recognized for tax accounting method changes. These decreases were partially offset by a 2016 revenue refund to customers of $133 million related to 2012 – 2014 incremental tax repair deductions. |
• | A decrease in FERC-related revenue of $39 million primarily related to higher operating costs in 2016 including amortization of the regulatory asset associated with the Coolwater-Lugo transmission project and a $8 million reduction to FERC revenue due to a change in estimate under the FERC formula rate mechanism. |
• | An increase of $20 million for other operating revenue resulting from refunds to customers recorded in 2016 due to the retroactive extension of bonus depreciation in the PATH Act of 2015. |
• | Lower operation and maintenance expense of $37 million primarily due to the impact of SCE's operational and service excellence initiatives and lower legal costs partially offset by higher transmission and distribution costs for line clearing and maintenance and information technology costs. |
• | Higher depreciation and amortization expense of $34 million primarily related to depreciation and amortization on transmission and distribution investments partially offset by amortization of the regulatory asset related to Coolwater-Lugo plant recorded in 2016. |
• | Higher property and other taxes of $21 million primarily due to higher property assessed values in 2017. |
• | Impairment and other charges of $716 million in 2017 due to the Revised San Onofre Settlement Agreement (see "Management Overview—Highlights of Operating Results" for further information). |
• | Higher other operating income of $8 million due to the sale of utility property. |
• | Higher interest expense of $48 million primarily due to increased borrowings and higher interest on balancing account overcollections in 2017. |
• | Higher other income and expenses of $18 million primarily due to higher AFUDC equity income. See "Notes to Consolidated Financial Statements—Note 14. Interest and Other Income and Other Expenses" for further information. |
• | Lower income taxes of $286 million primarily due to the following: |
• | Higher non-core income tax benefits in 2017 of $235 million due to the impairment and other charges related to the Revised San Onofre Settlement Agreement partially offset by $33 million income tax expense related to the re-measurement of deferred taxes resulting from the implementation of Tax Reform. |
• | Higher income tax benefits in 2017 of $70 million due to $149 million related to flow through of incremental tax repair benefits and for tax accounting method changes (offset in revenue above) partially offset by $79 million flow-through of 2012 – 2014 incremental income tax benefits in 2016. |
• | Higher pre-tax income in 2017, excluding non-core items discussed above. |
• | Higher operating revenue of $199 million is primarily due to: |
• | An increase in revenue of approximately $191 million related to the increase in authorized revenue from the escalation mechanism set forth in the 2015 GRC decision. |
• | An increase in FERC-related revenue of $68 million primarily related to higher operating costs including amortization of the regulatory asset associated with the Coolwater-Lugo transmission project and rate base growth partially offset by a $15 million increase in 2015 due to a change in estimate under the FERC formula rate mechanism. |
• | An increase in revenue of $25 million ($15 million after-tax) related to the incremental return on the pole loading rate base recorded through the pole loading balancing account. |
• | An increase of $46 million primarily due to tax benefits recognized in 2015 related to net operating loss carrybacks for San Onofre decommissioning costs resulting in a reduction in revenue in 2015 (offset in income taxes). |
• | A decrease in revenue of $52 million for incremental tax benefits refunded to customers. In 2016, SCE recorded a revenue refund to customers of $133 million for 2012 – 2014 incremental tax benefits related to repair deductions (offset in income taxes as discussed below). This revenue refund resulted from the CPUC's approval of SCE's request to refund incremental tax repair deductions that were not addressed in SCE's 2015 GRC decision. Partially offsetting the refund of 2012 – 2014 incremental tax repair deductions, SCE recognized $81 million lower incremental tax repairs and other benefits refunded to customers through balancing accounts in 2016. |
• | Energy efficiency incentive awards were $18 million in 2016 compared to $29 million in 2015. In addition, in 2016, the CPUC approved a settlement agreement in which SCE agreed to refund $13 million related to incentive awards SCE received for savings achieved by its 2006 – 2008 energy efficiency programs. |
• | SCE's portion of NEIL insurance and legal cost recoveries of approximately $20 million in 2015 arising from the outage and shutdown of the San Onofre Units 2 and 3 generating stations. |
• | A decrease of $29 million for other operating revenue resulting from lower contributions received from customers due to the retroactive extension of bonus depreciation in the PATH Act of 2015. |
• | Lower operation and maintenance expense of $38 million primarily due to lower labor related to SCE's focus on operational and service excellence as well as lower outside services partially offset by higher transmission and distribution costs for rain and storm-related activities. |
• | Higher depreciation and amortization expense of $83 million primarily related to depreciation on higher rate base and amortization of the regulatory asset related to the Coolwater-Lugo plant, as discussed above. |
• | Higher property and other taxes of $17 million primarily due to higher property assessed values in 2016. |
• | Higher interest expense of $15 million primarily due to reduced interest capitalization (AFUDC debt) related to lower construction work in progress balances and a higher interest rate on balancing account overcollections in 2016. |
• | Higher other income and expenses of $15 million primarily due to higher insurance benefits and lower advertising expense in 2016. See "Notes to Consolidated Financial Statements—Note 14. Interest and Other Income and Other Expenses" for further information. |
• | Lower income taxes of $251 million primarily due to the following: |
• | Write-down of $382 million in 2015 of regulatory assets previously recorded for recovery of deferred income taxes from 2012 – 2014 incremental tax repair deductions. |
• | Higher income tax benefits in 2016 of $31 million primarily due to $79 million related to the flow-through of incremental tax benefits for 2012 – 2014 to customers partially offset by lower income tax benefits in 2016 of |
• | Lower income tax expense in 2016 of $13 million related to the adoption of the FASB guidance on accounting for share-based payments. |
• | A change in liabilities related to uncertain tax positions related to repair deductions, which resulted in income tax benefits of $100 million during the second quarter of 2015. See "—Income Taxes" below for more information. |
• | Higher pre-tax income in 2016, as discussed above. |
• | Higher preferred and preference stock dividends of $10 million primarily related to new issuances in 2016 and late 2015 partially offset by redemptions of preferred stock. |
• | Higher purchased power and fuel costs of $346 million primarily driven by higher power and gas prices experienced in 2017 relative to 2016, partially offset by lower realized losses on hedging activities ($14 million in 2017 compared to $59 million in 2016) and lower capacity costs. |
• | Lower operation and maintenance expense of $29 million primarily driven by lower employee benefit and other labor costs and lower spending on various public purpose programs, partially offset by an increase in transmission and distribution costs for line clearing and maintenance activities. |
• | Higher purchased power and fuel of $261 million primarily due to the NEIL insurance recoveries received in 2015 (discussed below) and a change in portfolio mix partially offset by lower load related to cooler weather. |
• | Lower operation and maintenance expense of $115 million primarily due to lower transmission access charges and lower spending on various public purpose programs partially offset by an increase in transmission and distribution costs for drought related activities. |
Years ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Edison Energy Group and subsidiaries1 | $ | (26 | ) | $ | (38 | ) | $ | (6 | ) | ||
Corporate expenses and other subsidiaries | (421 | ) | (39 | ) | (7 | ) | |||||
Total Edison International Parent and Other | $ | (447 | ) | $ | (77 | ) | $ | (13 | ) |
1 | Includes income of $13 million, $5 million and $9 million in 2017, 2016, 2015 related to losses (net of distributions) allocated to tax equity investors under the HLBV accounting method. |
• | Income tax expense of $433 million in 2017 from the re-measurement of deferred taxes as a result of Tax Reform. For further information, see "Management Overview—Tax Reform." |
• | Higher income tax benefits related to stock option exercises of $30 million for the year ended December 31, 2017, $17 million of tax benefits recorded in 2017 from net operating loss carrybacks that resulted from the filing of the 2016 tax returns and $6 million of tax benefits recorded in 2017 related to settlement with the IRS for taxable years 2007 – 2012. |
• | Edison Energy Group's 2017 results included HLBV income of $13 million, a $10 million after-tax goodwill impairment charge on the SoCore Energy reporting unit and net tax expense of $5 million from a change in tax law partially offset by tax benefits primarily related to stock option exercises. Edison Energy Group's 2016 results included HLBV income of $5 million, $13 million after-tax charge in 2016 from a buy-out of an earn-out provision contained in one of the 2015 acquisitions and net tax benefits of $5 million primarily related to stock option exercises. Excluding these items, Edison Energy Group net losses were $24 million in 2017 and $35 million in 2016. The reduction in these losses was due to lower expenses related to new business activities. Revenue for the Edison Energy Group was $69 million and $42 million for the years ended December 31, 2017 and 2016, respectively. The increase in revenue was primarily due to higher build transfer projects from SoCore Energy in 2017. |
• | An increase in losses of Edison Energy Group of $32 million, including a $13 million after-tax charge during 2016 (as discussed above), higher operating and development expenses and lower revenue and gross margin from the sale of solar systems in 2016 compared to 2015. The results for the twelve months ended December 31, 2016 include the three businesses acquired by Edison Energy in December 2015 and expanded sales and support personnel. Revenue for the Edison Energy Group was $42 million and $34 million for the twelve months ended December 31, 2016 and 2015, respectively. |
• | A decrease in income from Edison Mission Group and subsidiaries of $32 million in 2016 primarily due to income related to affordable housing projects in 2015. In December 2015, Edison Mission Group, Inc.'s subsidiary, Edison Capital, completed the sale of its remaining affordable housing investment portfolio which represents the exit of this business activity. |
Project Name | Project Lifecycle Phase | Direct Expenditures (in millions)1 | Inception to Date (in millions)1 | Scheduled In-Service Date |
West of Devers | Construction | $848 | $91 | 2021 |
Mesa Substation | Construction | $646 | $78 | 2022 |
Alberhill System | Licensing | $486 | $37 | 2021 |
Riverside Transmission Reliability | Licensing | $405 | $8 | 2023 |
Eldorado-Lugo-Mohave Upgrade | Planning | $233 | $31 | 2021 |
1 | Direct expenditures include direct labor, land and contract costs incurred for the respective projects and exclude overhead costs that are included in the capital expenditures forecast discussed in "Management Overview—Capital Program." |
(in millions) | ||||
Collateral posted as of December 31, 20171 | $ | 102 | ||
Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade | 35 | |||
Incremental collateral requirements for power procurement contracts resulting from adverse market price movement2 | 3 | |||
Posted and potential collateral requirements | $ | 140 |
1 | Net collateral provided to counterparties and other brokers consisted $101 million in letters of credit and surety bonds and $1 million of cash which was offset against net derivative liabilities on the consolidated balance sheets. |
2 | Incremental collateral requirements were based on potential changes in SCE's forward positions as of December 31, 2017 due to adverse market price movements over the remaining lives of the existing power procurement contracts using a 95% confidence level. |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Net cash provided by operating activities | $ | 3,725 | $ | 3,523 | $ | 4,624 | |||||
Net cash provided by (used in) financing activities | 243 | (219 | ) | (812 | ) | ||||||
Net cash used in investing activities | (3,492 | ) | (3,291 | ) | (3,824 | ) | |||||
Net increase (decrease) in cash and cash equivalents | $ | 476 | $ | 13 | $ | (12 | ) |
Years ended December 31, | Change in cash flows | |||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017/2016 | 2016/2015 | |||||||||||
Net income | $ | 1,136 | $ | 1,499 | $ | 1,111 | ||||||||||
Non-cash items1 | 3,046 | 2,108 | 2,231 | |||||||||||||
Subtotal | $ | 4,182 | $ | 3,607 | $ | 3,342 | $ | 575 | $ | 265 | ||||||
Changes in cash flow resulting from working capital2 | (120 | ) | 236 | 16 | (356 | ) | 220 | |||||||||
Derivative assets and liabilities, net | (28 | ) | 13 | 45 | (41 | ) | (32 | ) | ||||||||
Regulatory assets and liabilities, net | 4 | (292 | ) | 1,729 | 296 | (2,021 | ) | |||||||||
Other noncurrent assets and liabilities, net3 | (313 | ) | (41 | ) | (508 | ) | (272 | ) | 467 | |||||||
Net cash provided by operating activities | $ | 3,725 | $ | 3,523 | $ | 4,624 | $ | 202 | $ | (1,101 | ) |
1 | Non-cash items include depreciation and amortization, allowance for equity during construction, impairment and other charges, deferred income taxes and investment tax credits and other. |
2 | Changes in working capital items include receivables, inventory, accounts payable, prepaid and accrued taxes, and other current assets and liabilities. |
3 | Includes the nuclear decommissioning trusts. |
• | The 2015 GRC decision established the TAMA. As a result of this memorandum account, together with a balancing account for pole loading expenditures, 2015 – 2017 tax benefits or costs associated with certain events are tracked and adjusted annually through customer rates. Overcollections increased by $117 million during 2017 primarily due to higher tax repair deductions than forecasted in rates and $135 million of higher benefits recognized for tax accounting method changes, partially offset by a $226 million reclassification from TAMA to BRRBA to refund customers. |
• | Higher cash due to $153 million of overcollections for the public purpose and energy efficiency programs. The increase in cash was due to lower spending than billed to customers and recovery of prior year undercollections. |
• | Higher cash due to $136 million of overcollections related to FERC balancing accounts. The increase in cash was due to recovery of prior FERC undercollections and lower costs than previously forecasted. |
• | Higher cash due to proceeds of approximately $34 million from the Department of Energy related to spent nuclear fuel. For further information on the spent nuclear fuel, see "Notes to Consolidated Financial Statements—Note 11. Commitments and Contingencies—Contingencies—Spent Nuclear Fuel." |
• | The BRRBA tracks the differences between amounts authorized by the CPUC in the GRC proceedings and amounts billed to customers. BRRBA overcollections decreased by $226 million during 2017 primarily due to the refunds of 2015 TAMA overcollections, a revenue refund to customers of $133 million for 2012 – 2014 incremental tax benefits related to repair deductions, and 2015 overcollections resulting from the implementation of the 2015 GRC decision, which was authorized to be refunded to customers over a two year period, partially offset by a $226 million reclassification from TAMA to BRRBA to refund customers in January 2018 as discussed above. |
• | Net undercollections for ERRA and the new system generation program were $267 million at December 31, 2017 compared to net overcollections of $26 million at December 31, 2016. Lower cash due to $293 million of net undercollections in 2017 primarily due to a refund of prior year overcollections and an increase in costs due to higher than forecasted power and gas prices experienced in 2017 and higher load requirements than forecasted in rates. |
• | Lower cash due to a decrease in ERRA overcollections for fuel and purchased power of $419 million in 2016 primarily due to the implementation of the 2016 ERRA rate decrease in January 2016, partially offset by lower than forecasted power and gas prices experienced in 2016. |
• | The public purpose and energy efficiency programs track differences between amounts authorized by the CPUC and amounts incurred to fund programs established by the CPUC. Overcollections increased by $309 million in 2016 due to higher funding and lower spending for these programs. |
• | SCE had a decrease in cash of approximately $182 million primarily due to a 2016 refund of 2015 overcollections resulting from the implementation of the 2015 GRC decision which was authorized to be refunded to customers over a two year period. |
• | Higher cash due to a decrease in ERRA undercollections of $1.5 billion in 2015 primarily due to lower power and gas prices experienced in 2015, the 2015 application of 2013 and 2014 nuclear decommissioning costs refunds against ERRA undercollections and the NEIL settlement proceeds from insurance claims arising out of the failures of the San Onofre replacement steam generators. In January 2015, SCE reclassified the regulatory liability for generator settlements to ERRA to refund customers as required by the CPUC. |
• | During 2015, BRRBA overcollections increased by $314 million primarily due to revenue previously collected from customers that was expected to be refunded as part of the 2015 GRC decision. |
• | Overcollections for the public purpose and energy efficiency programs decreased by $191 million in 2015 primarily due to higher spending for these programs. The decrease was partially offset by an increase in funding of the new system generation program for 2015. |
• | The 2015 GRC Decision established the TAMA. As a result of this memorandum account, together with a balancing account for pole loading expenditures, any differences between the forecasted tax repair deductions and actual tax repair deductions will be adjusted through customer rates. At December 31, 2015, SCE had a regulatory liability of $248 million related to these accounts (impact of TAMA is offset in non-cash items above). |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Issuances of first and refunding mortgage bonds, net of premium (discount) and issuance costs | $ | 1,011 | $ | — | $ | 1,287 | |||||
Issuance of term loan | 300 | — | — | ||||||||
Remarketing and issuances of pollution control bonds, net of issuance costs | 134 | — | 126 | ||||||||
Long-term debt matured or repurchased | (882 | ) | (217 | ) | (761 | ) | |||||
Issuances of preference stock, net of issuance costs | 462 | 294 | 319 | ||||||||
Redemptions of preference stock | (475 | ) | (125 | ) | (325 | ) | |||||
Short-term debt borrowings, net of repayments and discount | 469 | 719 | (619 | ) | |||||||
Payments of common stock dividends to Edison International | (573 | ) | (701 | ) | (758 | ) | |||||
Payments of preferred and preference stock dividends | (124 | ) | (123 | ) | (116 | ) | |||||
Other | (79 | ) | (66 | ) | 35 | ||||||
Net cash provided by (used in) financing activities | $ | 243 | $ | (219 | ) | $ | (812 | ) |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Net cash used in operating activities: Net earnings from nuclear decommissioning trust investments | $ | 55 | $ | 45 | $ | 43 | |||||
SCE's decommissioning costs | (236 | ) | (168 | ) | (216 | ) | |||||
Net cash provided by investing activities: Proceeds from sale of investments | 5,239 | 3,212 | 3,506 | ||||||||
Purchases of investments | (5,042 | ) | (3,033 | ) | (3,132 | ) | |||||
Net cash impact | $ | 16 | $ | 56 | $ | 201 |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Net cash used in operating activities | $ | (138 | ) | $ | (267 | ) | $ | (115 | ) | ||
Net cash provided by financing activities | 764 | 314 | 224 | ||||||||
Net cash used in investing activities | (107 | ) | (125 | ) | (68 | ) | |||||
Net increase (decrease) in cash and cash equivalents | $ | 519 | $ | (78 | ) | $ | 41 |
• | $214 million and $204 million of cash payments made to the Reorganization Trust in September 2016 and 2015, respectively, related to the EME Settlement Agreement. |
• | $21 million outflow in June 2016 related to the buy-out of an earn-out provision with the former shareholders of a company acquired by Edison Energy in 2015. See "Results of Operations—Edison International Parent and Other—Loss from Continuing Operations" for further information. |
• | $143 million receipt of intercompany tax-allocation payments in 2015. |
• | $138 million, $32 million and $54 million cash outflow from operating activities in 2017, 2016 and 2015, respectively, due to payments and receipts relating to interest and operating costs. In addition, the cash outflow in 2017 included higher pension payments related to executive retirement plans. |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Dividends paid to Edison International common shareholders | $ | (707 | ) | $ | (626 | ) | $ | (544 | ) | |||
Dividends received from SCE | 573 | 701 | 758 | |||||||||
Payment for stock-based compensation, net of receipt from stock option exercises | (140 | ) | (51 | ) | (52 | ) | ||||||
Long-term debt issuance, net of discount and issuance costs | 788 | 397 | 7 | |||||||||
Long-term debt repayment | (403 | ) | (3 | ) | (1 | ) | ||||||
Short-term debt borrowings, net of repayments and discount | 615 | (108 | ) | 47 | ||||||||
Other | 38 | 4 | 9 | |||||||||
Net cash provided by financing activities | $ | 764 | $ | 314 | $ | 224 |
(in millions) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||||||
SCE: | |||||||||||||||||||
Long-term debt maturities and interest1 | $ | 20,060 | $ | 967 | $ | 1,103 | $ | 1,844 | $ | 16,146 | |||||||||
Power purchase agreements:2 | 39,877 | 2,513 | 5,127 | 5,144 | 27,093 | ||||||||||||||
Other operating lease obligations3 | 246 | 48 | 64 | 35 | 99 | ||||||||||||||
Purchase obligations:4 | |||||||||||||||||||
Other contractual obligations | 704 | 127 | 141 | 91 | 345 | ||||||||||||||
Total SCE5,6,7 | 60,887 | 3,655 | 6,435 | 7,114 | 43,683 | ||||||||||||||
Edison International Parent and Other: | |||||||||||||||||||
Long-term debt maturities and interest1 | 1,370 | 35 | 462 | 459 | 414 | ||||||||||||||
Total Edison International Parent and Other5 | 1,370 | 35 | 462 | 459 | 414 | ||||||||||||||
Total Edison International6,7 | $ | 62,257 | $ | 3,690 | $ | 6,897 | $ | 7,573 | $ | 44,097 |
1 | For additional details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements." Amount includes interest payments totaling $9.07 billion and $141 million over applicable period of the debt for SCE and Edison International Parent and Other, respectively. |
2 | Certain power purchase agreements entered into with independent power producers are treated as operating or capital leases. For further discussion, see "Notes to Consolidated Financial Statements—Note 11. Commitments and Contingencies." |
3 | At December 31, 2017, SCE's minimum other operating lease payments were primarily related to vehicles, office space and other equipment. For further discussion, see "Notes to Consolidated Financial Statements—Note 11. Commitments and Contingencies." |
4 | For additional details, see "Notes to Consolidated Financial Statements—Note 11. Commitments and Contingencies." At December 31, 2017, other commitments were primarily related to maintaining reliability and expanding SCE's transmission and distribution system and nuclear fuel supply contracts. |
5 | At December 31, 2017, Edison International Parent and Other and SCE had estimated contributions to the pension and PBOP plans. SCE estimated contributions are $62 million, $54 million, $47 million, $42 million and $39 million in 2018, 2019, 2020, 2021 and 2022, respectively, which are excluded from the table above. Edison International Parent and Other estimated contributions are $16 million, $24 million, $18 million, $21 million and $15 million for the same respective periods and are excluded from the table above. These amounts represent estimates that are based on assumptions that are subject to change. See "Notes to Consolidated Financial Statements—Note 8. Compensation and Benefit Plans" for further information. |
6 | At December 31, 2017, Edison International and SCE had a total net liability recorded for uncertain tax positions of $432 million and $331 million, respectively, which is excluded from the table. Edison International and SCE cannot make reliable estimates of the cash flows by period due to uncertainty surrounding the timing of resolving these open tax issues with the tax authorities. |
7 | The contractual obligations table does not include derivative obligations and asset retirement obligations, which are discussed in "Notes to Consolidated Financial Statements—Note 6. Derivative Instruments," and "—Note 1. Summary of Significant Accounting Policies" and "—Note 9. Investments," respectively. |
(in millions) | Carrying Value | Fair Value | 10% Increase | 10% Decrease | |||||||||||
Edison International | $ | 12,123 | $ | 13,760 | $ | 13,239 | $ | 14,308 | |||||||
SCE | 10,907 | 12,547 | 12,039 | 13,082 |
(in millions) | December 31, 2017 | ||
Increase in electricity prices by 10% | $ | 11 | |
Decrease in electricity prices by 10% | (11 | ) | |
Increase in gas prices by 10% | 10 | ||
Decrease in gas prices by 10% | (5 | ) |
December 31, 2017 | |||||||||||
(in millions) | Exposure2 | Collateral | Net Exposure | ||||||||
S&P Credit Rating1 | |||||||||||
A or higher | $ | 110 | $ | — | $ | 110 |
1 | SCE assigns a credit rating based on the lower of a counterparty's S&P, Fitch or Moody's rating. For ease of reference, the above table uses the S&P classifications to summarize risk, but reflects the lower of the three credit ratings. |
2 | Exposure excludes amounts related to contracts classified as normal purchases and sales and non-derivative contractual commitments that are not recorded on the consolidated balance sheets, except for any related net accounts receivable. |
• | Decommissioning Costs. The estimated costs for labor, "material, equipment and other," and low-level radioactive waste costs are included in each of the NRC decommissioning stages; license termination, site restoration, and spent fuel storage. The ARO for decommissioning San Onofre Units 2 and 3 was updated in 2017 after onboarding the decommissioning general contractor. |
• | Escalation Rates. Annual escalation rates are used to convert the decommissioning cost estimates in base year dollars to decommissioning cost estimates in future-year dollars. Escalation rates are primarily used for labor, material, equipment, and low level radioactive waste burial costs. SCE's current estimates are based upon SCE's decommissioning cost methodology used for ratemaking purposes. Average escalation rates range from 1.6% to 7.5% (depending on the cost element) annually. |
• | Timing. Cost estimates for Palo Verde are based on an assumption that decommissioning will commence promptly after the current NRC operating licenses expire. The Palo Verde 1, 2, 3 operating licenses currently expire in 2045, 2046 and 2047 respectively. San Onofre Unit 1 started decommissioning in 1998 and Units 2 and 3 began in 2013. Cost estimates for San Onofre Units are currently based on completion of decommissioning activities by 2051. |
• | Spent Fuel Dry Storage Costs. Cost estimates are based on an assumption that the DOE will begin to take spent fuel from the nuclear industry in 2028, and will remove the last spent fuel from the San Onofre and Palo Verde sites by 2049 and 2078, respectively. |
• | Changes in Decommissioning Technology, Regulation, and Economics. The current cost studies assume the use of current technologies under current regulations and at current cost levels. |
(in millions) | Increase to ARO and Regulatory Asset at December 31, 2017 | ||
Uniform increase in escalation rate of 1 percentage point | $ | 616 |
(in millions) | Pension Plans | Postretirement Benefits Other than Pensions | ||
Discount rate1 | 3.94 | % | 4.29 | % |
Expected long-term return on plan assets2 | 6.50 | % | 5.30 | % |
Assumed health care cost trend rates3 | * | 7.00 | % |
* | Not applicable to pension plans. |
1 | The discount rate enables Edison International and SCE to state expected future cash flows at a present value on the measurement date. Edison International and SCE select its discount rate by performing a yield curve analysis. This analysis determines the equivalent discount rate on projected cash flows, matching the timing and amount of expected benefit payments. The AON-Hewitt yield curve is considered in determining the discount rate. |
2 | To determine the expected long-term rate of return on pension plan assets, current and expected asset allocations are considered, as well as historical and expected returns on plan assets. A portion of PBOP trusts asset returns are subject to taxation, so the 5.3% rate of return on plan assets above is determined on an after-tax basis. Actual time-weighted, annualized returns on the pension plan assets were 15.1%, 9.7% and 6.4% for the one-year, five-year and ten-year periods ended December 31, 2017, respectively. Actual time-weighted, annualized returns on the PBOP plan assets were 14.1%, 9.5% and 5.7% over these same periods. Accounting principles provide that differences between expected and actual returns are recognized over the average future service of employees. |
3 | The health care cost trend rate gradually declines to 5.0% for 2022 and beyond. |
Edison International | SCE | ||||||||||||||
(in millions) | Increase in discount rate by 1% | Decrease in discount rate by 1% | Increase in discount rate by 1% | Decrease in discount rate by 1% | |||||||||||
Change to projected benefit obligation for pension | $ | (381 | ) | $ | 463 | $ | (342 | ) | $ | 417 | |||||
Change to accumulated benefit obligation for PBOP | (328 | ) | 382 | (327 | ) | 380 |
Edison International | SCE | ||||||||||||||
(in millions) | Increase in health care cost trend rate by 1% | Decrease in health care cost trend rate by 1% | Increase in health care cost trend rate by 1% | Decrease in health care cost trend rate by 1% | |||||||||||
Change to accumulated benefit obligation for PBOP | $ | 247 | $ | (203 | ) | $ | 246 | $ | (202 | ) | |||||
Change to annual aggregate service and interest costs | 9 | (8 | ) | 9 | (8 | ) |
Consolidated Statements of Income | Edison International | ||||||||||
Years ended December 31, | |||||||||||
(in millions, except per-share amounts) | 2017 | 2016 | 2015 | ||||||||
Total operating revenue | $ | 12,320 | $ | 11,869 | $ | 11,524 | |||||
Purchased power and fuel | 4,873 | 4,527 | 4,266 | ||||||||
Operation and maintenance | 2,807 | 2,868 | 2,990 | ||||||||
Depreciation and amortization | 2,041 | 2,007 | 1,919 | ||||||||
Property and other taxes | 377 | 354 | 336 | ||||||||
Impairment and other charges | 738 | 21 | 5 | ||||||||
Other operating income | (9 | ) | — | — | |||||||
Total operating expenses | 10,827 | 9,777 | 9,516 | ||||||||
Operating income | 1,493 | 2,092 | 2,008 | ||||||||
Interest and other income | 146 | 123 | 174 | ||||||||
Interest expense | (639 | ) | (581 | ) | (555 | ) | |||||
Other expenses | (51 | ) | (44 | ) | (59 | ) | |||||
Income from continuing operations before income taxes | 949 | 1,590 | 1,568 | ||||||||
Income tax expense | 281 | 177 | 486 | ||||||||
Income from continuing operations | 668 | 1,413 | 1,082 | ||||||||
Income from discontinued operations, net of tax | — | 12 | 35 | ||||||||
Net income | 668 | 1,425 | 1,117 | ||||||||
Preferred and preference stock dividend requirements of utility | 124 | 123 | 113 | ||||||||
Other noncontrolling interests | (21 | ) | (9 | ) | (16 | ) | |||||
Net income attributable to Edison International common shareholders | $ | 565 | $ | 1,311 | $ | 1,020 | |||||
Amounts attributable to Edison International common shareholders: | |||||||||||
Income from continuing operations, net of tax | $ | 565 | $ | 1,299 | $ | 985 | |||||
Income from discontinued operations, net of tax | — | 12 | 35 | ||||||||
Net income attributable to Edison International common shareholders | $ | 565 | $ | 1,311 | $ | 1,020 | |||||
Basic earnings per common share attributable to Edison International common shareholders: | |||||||||||
Weighted-average shares of common stock outstanding | 326 | 326 | 326 | ||||||||
Continuing operations | $ | 1.73 | $ | 3.99 | $ | 3.02 | |||||
Discontinued operations | — | 0.03 | 0.11 | ||||||||
Total | $ | 1.73 | $ | 4.02 | $ | 3.13 | |||||
Diluted earnings per common share attributable to Edison International common shareholders: | |||||||||||
Weighted-average shares of common stock outstanding, including effect of dilutive securities | 328 | 330 | 329 | ||||||||
Continuing operations | $ | 1.72 | $ | 3.94 | $ | 2.99 | |||||
Discontinued operations | — | 0.03 | 0.11 | ||||||||
Total | $ | 1.72 | $ | 3.97 | $ | 3.10 | |||||
Dividends declared per common share | $ | 2.2325 | $ | 1.9825 | $ | 1.7325 |
Consolidated Statements of Comprehensive Income | Edison International | |||||||||||
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Net income | $ | 668 | $ | 1,425 | $ | 1,117 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Pension and postretirement benefits other than pensions: | ||||||||||||
Net gain or loss arising during the period plus amortization included in net income | 10 | 2 | 1 | |||||||||
Prior service cost arising during the period plus amortization included in net income | — | — | 1 | |||||||||
Other | — | 1 | — | |||||||||
Other comprehensive income, net of tax | 10 | 3 | 2 | |||||||||
Comprehensive income | 678 | 1,428 | 1,119 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | 103 | 114 | 97 | |||||||||
Comprehensive income attributable to Edison International | $ | 575 | $ | 1,314 | $ | 1,022 |
Consolidated Balance Sheets | Edison International | |||||||
December 31, | ||||||||
(in millions) | 2017 | 2016 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 1,091 | $ | 96 | ||||
Receivables, less allowances of $54 million and $62 for uncollectible accounts at respective dates | 717 | 714 | ||||||
Accrued unbilled revenue | 212 | 370 | ||||||
Inventory | 242 | 239 | ||||||
Income tax receivables | 224 | 1 | ||||||
Prepaid expenses | 233 | 103 | ||||||
Derivative assets | 105 | 73 | ||||||
Regulatory assets | 703 | 350 | ||||||
Other current assets | 202 | 177 | ||||||
Total current assets | 3,729 | 2,123 | ||||||
Nuclear decommissioning trusts | 4,440 | 4,242 | ||||||
Other investments | 73 | 83 | ||||||
Total investments | 4,513 | 4,325 | ||||||
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,355 and $9,000 at respective dates | 38,708 | 36,806 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation of $114 and $99 at respective dates | 342 | 194 | ||||||
Total property, plant and equipment | 39,050 | 37,000 | ||||||
Regulatory assets | 4,914 | 7,455 | ||||||
Other long-term assets | 374 | 416 | ||||||
Total long-term assets | 5,288 | 7,871 | ||||||
Total assets | $ | 52,580 | $ | 51,319 |
Consolidated Balance Sheets | Edison International | |||||||
December 31, | ||||||||
(in millions, except share amounts) | 2017 | 2016 | ||||||
LIABILITIES AND EQUITY | ||||||||
Short-term debt | $ | 2,393 | $ | 1,307 | ||||
Current portion of long-term debt | 481 | 981 | ||||||
Accounts payable | 1,503 | 1,342 | ||||||
Accrued taxes | 23 | 50 | ||||||
Customer deposits | 281 | 269 | ||||||
Derivative liabilities | 1 | 216 | ||||||
Regulatory liabilities | 1,121 | 756 | ||||||
Other current liabilities | 1,265 | 991 | ||||||
Total current liabilities | 7,068 | 5,912 | ||||||
Long-term debt | 11,642 | 10,175 | ||||||
Deferred income taxes and credits | 4,567 | 8,327 | ||||||
Derivative liabilities | — | 941 | ||||||
Pensions and benefits | 943 | 1,354 | ||||||
Asset retirement obligations | 2,908 | 2,590 | ||||||
Regulatory liabilities | 8,614 | 5,726 | ||||||
Other deferred credits and other long-term liabilities | 2,953 | 2,102 | ||||||
Total deferred credits and other liabilities | 19,985 | 21,040 | ||||||
Total liabilities | 38,695 | 37,127 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Redeemable noncontrolling interest | 19 | 5 | ||||||
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates) | 2,526 | 2,505 | ||||||
Accumulated other comprehensive loss | (43 | ) | (53 | ) | ||||
Retained earnings | 9,188 | 9,544 | ||||||
Total Edison International's common shareholders' equity | 11,671 | 11,996 | ||||||
Noncontrolling interests – preferred and preference stock of utility | 2,193 | 2,191 | ||||||
Other noncontrolling interests | 2 | — | ||||||
Total equity | 13,866 | 14,187 | ||||||
Total liabilities and equity | $ | 52,580 | $ | 51,319 |
Consolidated Statements of Cash Flows | Edison International | |||||||||||
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 668 | $ | 1,425 | $ | 1,117 | ||||||
Less: Income from discontinued operations | — | 12 | 35 | |||||||||
Income from continuing operations | 668 | 1,413 | 1,082 | |||||||||
Adjustments to reconcile to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 2,115 | 2,098 | 2,005 | |||||||||
Allowance for equity during construction | (87 | ) | (74 | ) | (87 | ) | ||||||
Impairment and other charges | 738 | — | 5 | |||||||||
Deferred income taxes and investment tax credits | 498 | 190 | 449 | |||||||||
Other | 22 | 20 | (28 | ) | ||||||||
Nuclear decommissioning trusts | (197 | ) | (179 | ) | (428 | ) | ||||||
EME settlement payments, net of insurance proceeds | — | (209 | ) | (176 | ) | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables | 7 | 52 | 49 | |||||||||
Inventory | (12 | ) | 8 | 14 | ||||||||
Accounts payable | 50 | 35 | 8 | |||||||||
Tax receivables and payables | (250 | ) | (6 | ) | (28 | ) | ||||||
Other current assets and liabilities | 34 | 211 | (24 | ) | ||||||||
Derivative assets and liabilities, net | (28 | ) | 13 | 45 | ||||||||
Regulatory assets and liabilities, net | 4 | (292 | ) | 1,729 | ||||||||
Other noncurrent assets and liabilities | 25 | (24 | ) | (106 | ) | |||||||
Net cash provided by operating activities | 3,587 | 3,256 | 4,509 | |||||||||
Cash flows from financing activities: | ||||||||||||
Long-term debt issued or remarketed, net of premium, discount and issuance costs of $2, $7, and $17 for respective years | 2,233 | 397 | 1,420 | |||||||||
Long-term debt matured or repurchased | (1,285 | ) | (220 | ) | (762 | ) | ||||||
Preference stock issued, net | 462 | 294 | 319 | |||||||||
Preference stock redeemed | (475 | ) | (125 | ) | (325 | ) | ||||||
Short-term debt financing, net | 1,084 | 611 | (572 | ) | ||||||||
Payments for stock-based compensation | (393 | ) | (237 | ) | (197 | ) | ||||||
Receipts from stock option exercises | 215 | 135 | 128 | |||||||||
Dividends and distribution to noncontrolling interests | (125 | ) | (123 | ) | (116 | ) | ||||||
Dividends paid | (707 | ) | (626 | ) | (544 | ) | ||||||
Other | (2 | ) | (11 | ) | 61 | |||||||
Net cash provided by (used in) financing activities | 1,007 | 95 | (588 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (3,828 | ) | (3,734 | ) | (4,225 | ) | ||||||
Proceeds from sale of nuclear decommissioning trust investments | 5,239 | 3,212 | 3,506 | |||||||||
Purchases of nuclear decommissioning trust investments | (5,042 | ) | (3,033 | ) | (3,132 | ) | ||||||
Life insurance policy loans proceeds | 26 | 140 | — | |||||||||
Other | 6 | (1 | ) | (41 | ) | |||||||
Net cash used in investing activities | (3,599 | ) | (3,416 | ) | (3,892 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 995 | (65 | ) | 29 | ||||||||
Cash and cash equivalents at beginning of year | 96 | 161 | 132 | |||||||||
Cash and cash equivalents at end of year | $ | 1,091 | $ | 96 | $ | 161 |
Consolidated Statements of Changes in Equity | Edison International | ||||||||||||||||||||||||||
Equity Attributable to Common Shareholders | Noncontrolling Interests | ||||||||||||||||||||||||||
(in millions) | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Subtotal | Other | Preferred and Preference Stock | Total Equity | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 2,445 | $ | (58 | ) | $ | 8,573 | $ | 10,960 | $ | — | $ | 2,022 | $ | 12,982 | ||||||||||||
Net income | — | — | 1,020 | 1,020 | — | 113 | 1,133 | ||||||||||||||||||||
Other comprehensive loss | — | 2 | — | 2 | — | — | 2 | ||||||||||||||||||||
Common stock dividends declared ($1.7325 per share) | — | — | (564 | ) | (564 | ) | — | — | (564 | ) | |||||||||||||||||
Dividends and distributions to noncontrolling interests and other | — | — | — | — | — | (113 | ) | (113 | ) | ||||||||||||||||||
Stock-based compensation and other | 15 | — | (85 | ) | (70 | ) | — | — | (70 | ) | |||||||||||||||||
Noncash stock-based compensation and other | 24 | — | — | 24 | — | — | 24 | ||||||||||||||||||||
Issuance of preference stock | — | — | — | — | — | 319 | 319 | ||||||||||||||||||||
Redemption of preference stock | — | — | (4 | ) | (4 | ) | — | (321 | ) | (325 | ) | ||||||||||||||||
Balance at December 31, 2015 | $ | 2,484 | $ | (56 | ) | $ | 8,940 | $ | 11,368 | $ | — | $ | 2,020 | $ | 13,388 | ||||||||||||
Net income | — | — | 1,311 | 1,311 | — | 123 | 1,434 | ||||||||||||||||||||
Other comprehensive income | — | 3 | — | 3 | — | — | 3 | ||||||||||||||||||||
Common stock dividends declared ($1.9825 per share) | — | — | (646 | ) | (646 | ) | — | — | (646 | ) | |||||||||||||||||
Dividends and distributions to noncontrolling interests and other | — | — | — | — | — | (123 | ) | (123 | ) | ||||||||||||||||||
Stock-based compensation and other | (1 | ) | — | (59 | ) | (60 | ) | — | — | (60 | ) | ||||||||||||||||
Noncash stock-based compensation and other | 22 | — | — | 22 | — | — | 22 | ||||||||||||||||||||
Issuance of preference stock | — | — | — | — | — | 294 | 294 | ||||||||||||||||||||
Redemption of preference stock | — | — | (2 | ) | (2 | ) | — | (123 | ) | (125 | ) | ||||||||||||||||
Balance at December 31, 2016 | $ | 2,505 | $ | (53 | ) | $ | 9,544 | $ | 11,996 | $ | — | $ | 2,191 | $ | 14,187 | ||||||||||||
Net income | — | — | 565 | 565 | (18 | ) | 124 | 671 | |||||||||||||||||||
Other comprehensive income | — | 10 | — | 10 | — | — | 10 | ||||||||||||||||||||
Contribution from tax equity investor | — | — | — | — | 20 | — | 20 | ||||||||||||||||||||
Common stock dividends declared ($2.2325 per share) | — | — | (727 | ) | (727 | ) | — | — | (727 | ) | |||||||||||||||||
Dividends and distributions to noncontrolling interests and other | — | — | — | — | — | (124 | ) | (124 | ) | ||||||||||||||||||
Stock-based compensation and other | — | — | (179 | ) | (179 | ) | — | — | (179 | ) | |||||||||||||||||
Noncash stock-based compensation and other | 21 | — | — | 21 | — | — | 21 | ||||||||||||||||||||
Issuance of preference stock | — | — | — | — | — | 462 | 462 | ||||||||||||||||||||
Redemption of preference stock | — | — | (15 | ) | (15 | ) | — | (460 | ) | (475 | ) | ||||||||||||||||
Balance at December 31, 2017 | $ | 2,526 | $ | (43 | ) | $ | 9,188 | $ | 11,671 | $ | 2 | $ | 2,193 | $ | 13,866 |
Consolidated Statements of Income | Southern California Edison Company |
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Operating revenue | $ | 12,254 | $ | 11,830 | $ | 11,485 | ||||||
Purchased power and fuel | 4,873 | 4,527 | 4,266 | |||||||||
Operation and maintenance | 2,671 | 2,737 | 2,890 | |||||||||
Depreciation and amortization | 2,032 | 1,998 | 1,915 | |||||||||
Property and other taxes | 372 | 351 | 334 | |||||||||
Impairment and other charges | 716 | — | — | |||||||||
Other operating income | (8 | ) | — | — | ||||||||
Total operating expenses | 10,656 | 9,613 | 9,405 | |||||||||
Operating income | 1,598 | 2,217 | 2,080 | |||||||||
Interest and other income | 145 | 123 | 123 | |||||||||
Interest expense | (589 | ) | (541 | ) | (526 | ) | ||||||
Other expenses | (48 | ) | (44 | ) | (59 | ) | ||||||
Income before income taxes | 1,106 | 1,755 | 1,618 | |||||||||
Income tax expense | (30 | ) | 256 | 507 | ||||||||
Net income | 1,136 | 1,499 | 1,111 | |||||||||
Less: Preferred and preference stock dividend requirements | 124 | 123 | 113 | |||||||||
Net income available for common stock | $ | 1,012 | $ | 1,376 | $ | 998 |
Consolidated Statements of Comprehensive Income | ||||||||||||
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Net income | $ | 1,136 | $ | 1,499 | $ | 1,111 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Pension and postretirement benefits other than pensions: | ||||||||||||
Net loss arising during period plus amortization included in net income | 1 | 1 | 5 | |||||||||
Prior service cost arising during the period plus amortization included in net income | — | — | 1 | |||||||||
Other | — | 1 | — | |||||||||
Other comprehensive income, net of tax | 1 | 2 | 6 | |||||||||
Comprehensive income | $ | 1,137 | $ | 1,501 | $ | 1,117 |
Consolidated Balance Sheets | Southern California Edison Company |
December 31, | ||||||||
(in millions) | 2017 | 2016 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 515 | $ | 39 | ||||
Receivables, less allowances of $53 and $61 for uncollectible accounts at respective dates | 693 | 699 | ||||||
Accrued unbilled revenue | 212 | 369 | ||||||
Inventory | 242 | 239 | ||||||
Income tax receivables | 229 | 16 | ||||||
Prepaid expenses | 228 | 98 | ||||||
Derivative assets | 105 | 73 | ||||||
Regulatory assets | 703 | 350 | ||||||
Other current assets | 160 | 148 | ||||||
Total current assets | 3,087 | 2,031 | ||||||
Nuclear decommissioning trusts | 4,440 | 4,242 | ||||||
Other investments | 52 | 50 | ||||||
Total investments | 4,492 | 4,292 | ||||||
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,355 and $9,000 at respective dates | 38,708 | 36,806 | ||||||
Nonutility property, plant and equipment, less accumulated depreciation of $97 and $89 at respective dates | 77 | 75 | ||||||
Total property, plant and equipment | 38,785 | 36,881 | ||||||
Regulatory assets | 4,914 | 7,455 | ||||||
Other long-term assets | 237 | 232 | ||||||
Total long-term assets | 5,151 | 7,687 | ||||||
Total assets | $ | 51,515 | $ | 50,891 |
Consolidated Balance Sheets | Southern California Edison Company |
December 31, | ||||||||
(in millions, except share amounts) | 2017 | 2016 | ||||||
LIABILITIES AND EQUITY | ||||||||
Short-term debt | $ | 1,238 | $ | 769 | ||||
Current portion of long-term debt | 479 | 579 | ||||||
Accounts payable | 1,519 | 1,344 | ||||||
Accrued taxes | 24 | 45 | ||||||
Customer deposits | 281 | 269 | ||||||
Derivative liabilities | 1 | 216 | ||||||
Regulatory liabilities | 1,121 | 756 | ||||||
Other current liabilities | 1,224 | 729 | ||||||
Total current liabilities | 5,887 | 4,707 | ||||||
Long-term debt | 10,428 | 9,754 | ||||||
Deferred income taxes and credits | 5,890 | 9,886 | ||||||
Derivative liabilities | — | 941 | ||||||
Pensions and benefits | 483 | 896 | ||||||
Asset retirement obligations | 2,892 | 2,586 | ||||||
Regulatory liabilities | 8,614 | 5,726 | ||||||
Other deferred credits and other long-term liabilities | 2,649 | 1,912 | ||||||
Total deferred credits and other liabilities | 20,528 | 21,947 | ||||||
Total liabilities | 36,843 | 36,408 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at each date) | 2,168 | 2,168 | ||||||
Additional paid-in capital | 671 | 657 | ||||||
Accumulated other comprehensive loss | (19 | ) | (20 | ) | ||||
Retained earnings | 9,607 | 9,433 | ||||||
Total common shareholder's equity | 12,427 | 12,238 | ||||||
Preferred and preference stock | 2,245 | 2,245 | ||||||
Total equity | 14,672 | 14,483 | ||||||
Total liabilities and equity | $ | 51,515 | $ | 50,891 |
Consolidated Statements of Cash Flows | Southern California Edison Company | |||||||||||
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 1,136 | $ | 1,499 | $ | 1,111 | ||||||
Adjustments to reconcile to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 2,101 | 2,085 | 1,996 | |||||||||
Allowance for equity during construction | (87 | ) | (74 | ) | (87 | ) | ||||||
Impairment and other charges | 716 | — | — | |||||||||
Deferred income taxes and investment tax credits | 304 | 88 | 308 | |||||||||
Other | 12 | 9 | 14 | |||||||||
Nuclear decommissioning trusts | (197 | ) | (179 | ) | (428 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables | 6 | 25 | 25 | |||||||||
Inventory | (11 | ) | (3 | ) | 19 | |||||||
Accounts payable | 50 | 45 | 30 | |||||||||
Tax receivables and payables | (234 | ) | (16 | ) | (16 | ) | ||||||
Other current assets and liabilities | 69 | 185 | (42 | ) | ||||||||
Derivative assets and liabilities, net | (28 | ) | 13 | 45 | ||||||||
Regulatory assets and liabilities, net | 4 | (292 | ) | 1,729 | ||||||||
Other noncurrent assets and liabilities | (116 | ) | 138 | (80 | ) | |||||||
Net cash provided by operating activities | 3,725 | 3,523 | 4,624 | |||||||||
Cash flows from financing activities: | ||||||||||||
Long-term debt issued or remarketed, net of premium, discount and issuance costs of $10 and $(17) for the years ended 2017 and 2015, respectively | 1,445 | — | 1,413 | |||||||||
Long-term debt matured or repurchased | (882 | ) | (217 | ) | (761 | ) | ||||||
Preference stock issued, net | 462 | 294 | 319 | |||||||||
Preference stock redeemed | (475 | ) | (125 | ) | (325 | ) | ||||||
Short-term debt financing, net | 469 | 719 | (619 | ) | ||||||||
Payments for stock-based compensation | (86 | ) | (127 | ) | (78 | ) | ||||||
Receipts from stock option exercises | 48 | 76 | 68 | |||||||||
Dividends paid | (697 | ) | (824 | ) | (874 | ) | ||||||
Other | (41 | ) | (15 | ) | 45 | |||||||
Net cash provided by (used in) financing activities | 243 | (219 | ) | (812 | ) | |||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (3,740 | ) | (3,633 | ) | (4,210 | ) | ||||||
Proceeds from sale of nuclear decommissioning trust investments | 5,239 | 3,212 | 3,506 | |||||||||
Purchases of nuclear decommissioning trust investments | (5,042 | ) | (3,033 | ) | (3,132 | ) | ||||||
Life insurance policy loans proceeds | 26 | 140 | — | |||||||||
Other | 25 | 23 | 12 | |||||||||
Net cash used in investing activities | (3,492 | ) | (3,291 | ) | (3,824 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 476 | 13 | (12 | ) | ||||||||
Cash and cash equivalents, beginning of year | 39 | 26 | 38 | |||||||||
Cash and cash equivalents, end of year | $ | 515 | $ | 39 | $ | 26 |
Consolidated Statements of Changes in Equity | Southern California Edison Company |
Equity Attributable to Edison International | |||||||||||||||||||||||
(in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Preferred and Preference Stock | Total Equity | |||||||||||||||||
Balance at December 31, 2014 | $ | 2,168 | $ | 618 | $ | (28 | ) | $ | 8,454 | $ | 2,070 | $ | 13,282 | ||||||||||
Net income | — | — | — | 1,111 | — | 1,111 | |||||||||||||||||
Other comprehensive loss | — | — | 6 | — | — | 6 | |||||||||||||||||
Dividends declared on common stock | — | — | — | (611 | ) | — | (611 | ) | |||||||||||||||
Dividends declared on preferred and preference stock | — | — | — | (113 | ) | — | (113 | ) | |||||||||||||||
Stock-based compensation | — | 23 | — | (33 | ) | — | (10 | ) | |||||||||||||||
Noncash stock-based compensation | — | 13 | — | — | — | 13 | |||||||||||||||||
Issuance of preference stock | — | (6 | ) | — | — | 325 | 319 | ||||||||||||||||
Redemption of preference stock | — | 4 | — | (4 | ) | (325 | ) | (325 | ) | ||||||||||||||
Balance at December 31, 2015 | $ | 2,168 | $ | 652 | $ | (22 | ) | $ | 8,804 | $ | 2,070 | $ | 13,672 | ||||||||||
Net income | — | — | — | 1,499 | — | 1,499 | |||||||||||||||||
Other comprehensive income | — | — | 2 | — | — | 2 | |||||||||||||||||
Dividends declared on common stock | — | — | — | (701 | ) | — | (701 | ) | |||||||||||||||
Dividends declared on preferred and preference stock | — | — | — | (123 | ) | — | (123 | ) | |||||||||||||||
Stock-based compensation | — | — | — | (44 | ) | — | (44 | ) | |||||||||||||||
Noncash stock-based compensation | — | 9 | — | — | — | 9 | |||||||||||||||||
Issuance of preference stock | — | (6 | ) | — | — | 300 | 294 | ||||||||||||||||
Redemption of preference stock | — | 2 | — | (2 | ) | (125 | ) | (125 | ) | ||||||||||||||
Balance at December 31, 2016 | $ | 2,168 | $ | 657 | $ | (20 | ) | $ | 9,433 | $ | 2,245 | $ | 14,483 | ||||||||||
Net income | — | — | — | 1,136 | — | 1,136 | |||||||||||||||||
Other comprehensive income | — | — | 1 | — | — | 1 | |||||||||||||||||
Dividends declared on common stock | — | — | — | (785 | ) | — | (785 | ) | |||||||||||||||
Dividends declared on preferred and preference stock | — | — | — | (124 | ) | — | (124 | ) | |||||||||||||||
Stock-based compensation | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||
Noncash stock-based compensation | — | 12 | — | — | — | 12 | |||||||||||||||||
Issuance of preference stock | — | (13 | ) | — | — | 475 | 462 | ||||||||||||||||
Redemption of preference stock | — | 15 | — | (15 | ) | (475 | ) | (475 | ) | ||||||||||||||
Balance at December 31, 2017 | $ | 2,168 | $ | 671 | $ | (19 | ) | $ | 9,607 | $ | 2,245 | $ | 14,672 |
Edison International | SCE | ||||||||||||||
December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Money market funds | $ | 1,024 | $ | 41 | $ | 483 | $ | 18 |
Edison International | SCE | ||||||||||||||
December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Book balances reclassified to accounts payable | $ | 64 | $ | 138 | $ | 63 | $ | 136 |
Estimated Useful Lives | Weighted-Average Useful Lives | |
Generation plant | 10 years to 55 years | 37 years |
Distribution plant | 20 years to 60 years | 43 years |
Transmission plant | 40 years to 65 years | 52 years |
General plant and other | 5 years to 60 years | 22 years |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Beginning balance | $ | 2,586 | $ | 2,762 | |||
Accretion1 | 166 | 157 | |||||
Revisions | 376 | (165 | ) | ||||
Liabilities settled | (236 | ) | (168 | ) | |||
Ending balance | $ | 2,892 | $ | 2,586 |
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. |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Amortization of deferred financing costs charged to interest expense | $ | 30 | $ | 31 | $ | 33 | $ | 27 | $ | 27 | $ | 28 |
Years ended December 31, | |||||||||||
(in millions, except per-share amounts) | 2017 | 2016 | 2015 | ||||||||
Basic earnings per share – continuing operations: | |||||||||||
Income from continuing operations attributable to common shareholders | $ | 565 | $ | 1,299 | $ | 985 | |||||
Participating securities dividends | — | — | (1 | ) | |||||||
Income from continuing operations available to common shareholders | $ | 565 | $ | 1,299 | $ | 984 | |||||
Weighted average common shares outstanding | 326 | 326 | 326 | ||||||||
Basic earnings per share – continuing operations | $ | 1.73 | $ | 3.99 | $ | 3.02 | |||||
Diluted earnings per share – continuing operations: | |||||||||||
Income from continuing operations attributable to common shareholders | $ | 565 | $ | 1,299 | $ | 985 | |||||
Participating securities dividends | — | — | (1 | ) | |||||||
Income from continuing operations available to common shareholders | $ | 565 | $ | 1,299 | $ | 984 | |||||
Income impact of assumed conversions | — | 1 | 1 | ||||||||
Income from continuing operations available to common shareholders and assumed conversions | $ | 565 | $ | 1,300 | $ | 985 | |||||
Weighted average common shares outstanding | 326 | 326 | 326 | ||||||||
Incremental shares from assumed conversions | 2 | 4 | 3 | ||||||||
Adjusted weighted average shares – diluted | 328 | 330 | 329 | ||||||||
Diluted earnings per share – continuing operations | $ | 1.72 | $ | 3.94 | $ | 2.99 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Distribution | $ | 23,633 | $ | 22,332 | |||
Transmission | 13,127 | 12,549 | |||||
Generation | 3,468 | 3,376 | |||||
General plant and other | 4,534 | 4,633 | |||||
Accumulated depreciation | (9,355 | ) | (9,000 | ) | |||
35,407 | 33,890 | ||||||
Construction work in progress | 3,175 | 2,790 | |||||
Nuclear fuel, at amortized cost | 126 | 126 | |||||
Total utility property, plant and equipment | $ | 38,708 | $ | 36,806 |
(in millions) | Plant in Service | Construction Work in Progress | Accumulated Depreciation | Nuclear Fuel (at amortized cost) | Net Book Value | Ownership Interest | |||||||||||
Transmission systems: | |||||||||||||||||
Eldorado | $ | 237 | $ | 14 | $ | 24 | $ | — | $ | 227 | 59 | % | |||||
Pacific Intertie | 192 | 41 | 78 | — | 155 | 50 | % | ||||||||||
Generating station: | |||||||||||||||||
Palo Verde (nuclear) | 2,001 | 52 | 1,557 | 126 | 622 | 16 | % | ||||||||||
Total | $ | 2,430 | $ | 107 | $ | 1,659 | $ | 126 | $ | 1,004 |
Years ended December 31, | |||||||||||||||||||||||
(in millions) | Trust I | Trust II | Trust III | Trust IV | Trust V | Trust VI | |||||||||||||||||
2017 | |||||||||||||||||||||||
Dividend income | $ | 14 | $ | 20 | $ | 16 | $ | 17 | $ | 16 | $ | 12 | |||||||||||
Dividend distributions | 14 | 20 | 16 | 17 | 16 | 12 | |||||||||||||||||
2016 | |||||||||||||||||||||||
Dividend income | $ | 27 | $ | 20 | $ | 16 | $ | 17 | $ | 13 | * | ||||||||||||
Dividend distributions | 27 | 20 | 16 | 17 | 13 | * | |||||||||||||||||
2015 | |||||||||||||||||||||||
Dividend income | $ | 27 | $ | 20 | $ | 16 | $ | 6 | * | * | |||||||||||||
Dividend distributions | 27 | 20 | 16 | 6 | * | * |
December 31, 2017 | |||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral1 | Total | ||||||||||||||
Assets at fair value | |||||||||||||||||||
Derivative contracts | $ | — | $ | 9 | $ | 102 | $ | (1 | ) | $ | 110 | ||||||||
Money market funds and other | 495 | — | — | — | 495 | ||||||||||||||
Nuclear decommissioning trusts: | |||||||||||||||||||
Stocks2 | 1,596 | — | — | — | 1,596 | ||||||||||||||
Fixed Income3 | 1,065 | 1,665 | — | — | 2,730 | ||||||||||||||
Short-term investments, primarily cash equivalents | 101 | 72 | — | — | 173 | ||||||||||||||
Subtotal of nuclear decommissioning trusts4 | 2,762 | 1,737 | — | — | 4,499 | ||||||||||||||
Total assets | 3,257 | 1,746 | 102 | (1 | ) | 5,104 | |||||||||||||
Liabilities at fair value | |||||||||||||||||||
Derivative contracts | — | 2 | 1 | (2 | ) | 1 | |||||||||||||
Total liabilities | — | 2 | 1 | (2 | ) | 1 | |||||||||||||
Net assets | $ | 3,257 | $ | 1,744 | $ | 101 | $ | 1 | $ | 5,103 |
December 31, 2016 | |||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral1 | Total | ||||||||||||||
Assets at fair value | |||||||||||||||||||
Derivative contracts | $ | — | $ | 6 | $ | 68 | $ | — | $ | 74 | |||||||||
Other | 33 | — | — | — | 33 | ||||||||||||||
Nuclear decommissioning trusts: | |||||||||||||||||||
Stocks2 | 1,547 | — | — | — | 1,547 | ||||||||||||||
Fixed Income3 | 865 | 1,751 | — | — | 2,616 | ||||||||||||||
Short-term investments, primarily cash equivalents | 36 | 170 | — | — | 206 | ||||||||||||||
Subtotal of nuclear decommissioning trusts4 | 2,448 | 1,921 | — | — | 4,369 | ||||||||||||||
Total assets | 2,481 | 1,927 | 68 | — | 4,476 | ||||||||||||||
Liabilities at fair value | |||||||||||||||||||
Derivative contracts | — | — | 1,157 | — | 1,157 | ||||||||||||||
Total liabilities | — | — | 1,157 | — | 1,157 | ||||||||||||||
Net assets (liabilities) | $ | 2,481 | $ | 1,927 | $ | (1,089 | ) | $ | — | $ | 3,319 |
1 | Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. |
2 | Approximately 69% and 70% of SCE's equity investments were located in the United States at December 31, 2017 and 2016, respectively. |
3 | Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $102 million and $79 million at December 31, 2017 and 2016, respectively. |
4 | Excludes net payables of $59 million and $127 million at December 31, 2017 and 2016, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. |
December 31, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Fair value of net liabilities at beginning of period | $ | (1,089 | ) | $ | (1,148 | ) | ||
Total realized/unrealized gains: | ||||||||
Included in regulatory assets and liabilities1 | 133 | 59 | ||||||
Contract amendment2 | 143 | — | ||||||
Normal purchase and normal sale designation3 | 914 | — | ||||||
Fair value of net assets (liabilities) at end of period | $ | 101 | $ | (1,089 | ) | |||
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period | $ | 100 | $ | (70 | ) |
1 | Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. |
3 | During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. |
Fair Value (in millions) | Significant | |||||||||
Assets | Liabilities | Valuation Technique(s) | Unobservable Input | Range | ||||||
Congestion revenue rights | ||||||||||
December 31, 2017 | $ | 102 | $ | — | Market simulation model and auction prices | Load forecast | 5,002 MW - 22,970 MW | |||
Power prices1 | $(15.00) - $120.00 | |||||||||
Gas prices2 | $2.46 - $4.37 | |||||||||
CAISO CRR auction clearing prices | $(9.41) - $8.66 | |||||||||
December 31, 2016 | 67 | — | Market simulation model and auction prices | Load forecast | 3,708 MW - 22,840 MW | |||||
Power prices1 | $3.65 - $99.58 | |||||||||
Gas prices2 | $2.51 - $4.87 | |||||||||
Tolling3 | ||||||||||
December 31, 2016 | — | 1,154 | Option model | Volatility of gas prices | 15% - 48% | |||||
Volatility of power prices | 29% - 71% | |||||||||
Power prices | $23.40 - $51.24 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
(in millions) | Carrying Value1 | Fair Value | Carrying Value1 | Fair Value | |||||||||||
Edison International | $ | 12,123 | $ | 13,760 | $ | 11,156 | $ | 12,368 | |||||||
SCE | 10,907 | 12,547 | 10,333 | 11,539 |
1 | Carrying value is net of debt issuance costs. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Edison International Parent and Other: | |||||||
Debentures and notes: | |||||||
2020 – 2023 (2.125% to 2.95%) | $ | 1,200 | $ | 800 | |||
Other long-term debt | 29 | 32 | |||||
Current portion of long-term debt | (2 | ) | (402 | ) | |||
Unamortized debt discount and issuance costs, net | (13 | ) | (9 | ) | |||
Total Edison International Parent and Other | 1,214 | 421 | |||||
SCE: | |||||||
First and refunding mortgage bonds: | |||||||
2018 – 2047 (1.845% to 6.05%) | 9,779 | 9,357 | |||||
Pollution-control bonds: | |||||||
2028 – 2035 (1.375% to 5.0%)1 | 909 | 774 | |||||
Debentures and notes: | |||||||
2029 – 2053 (5.06% to 6.65%) | 307 | 307 | |||||
Current portion of long-term debt | (479 | ) | (579 | ) | |||
Unamortized debt discount and issuance costs, net | (88 | ) | (105 | ) | |||
Total SCE | 10,428 | 9,754 | |||||
Total Edison International | $ | 11,642 | $ | 10,175 |
1 | Excludes outstanding bonds that have not been retired and may be remarketed to investors in the future. These bonds have variable rates and are due in 2031 at December 31, 2017 and 2031 and 2033 at December 31, 2016. |
(in millions) | Edison International | SCE | |||||
2018 | $ | 481 | $ | 479 | |||
2019 | 81 | 79 | |||||
2020 | 481 | 79 | |||||
2021 | 580 | 579 | |||||
2022 | 777 | 364 |
(in millions) | Edison International Parent | SCE | |||||
Commitment | $ | 1,250 | $ | 2,750 | |||
Outstanding borrowings | (1,139 | ) | (1,238 | ) | |||
Outstanding letters of credit | — | (99 | ) | ||||
Amount available | $ | 111 | $ | 1,413 |
December 31, 2017 | ||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Net Asset | ||||||||||||||||||||||||||
(in millions) | Short-Term | Long-Term | Subtotal | Short-Term | Long-Term | Subtotal2 | ||||||||||||||||||||||
Commodity derivative contracts | ||||||||||||||||||||||||||||
Gross amounts recognized | $ | 106 | $ | 5 | $ | 111 | $ | 3 | $ | — | $ | 3 | $ | 108 | ||||||||||||||
Gross amounts offset in the consolidated balance sheets | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | — | |||||||||||||||||
Cash collateral posted1 | — | — | — | (1 | ) | — | (1 | ) | 1 | |||||||||||||||||||
Net amounts presented in the consolidated balance sheets | $ | 105 | $ | 5 | $ | 110 | $ | 1 | $ | — | $ | 1 | $ | 109 |
December 31, 2016 | ||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Net Liability | ||||||||||||||||||||||||||
(in millions) | Short-Term | Long-Term | Subtotal | Short-Term | Long-Term | Subtotal | ||||||||||||||||||||||
Commodity derivative contracts | ||||||||||||||||||||||||||||
Gross amounts recognized | $ | 74 | $ | 1 | $ | 75 | $ | 217 | $ | 941 | $ | 1,158 | $ | 1,083 | ||||||||||||||
Gross amounts offset in the consolidated balance sheets | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | — | |||||||||||||||||
Cash collateral posted1 | — | — | — | — | — | — | — | |||||||||||||||||||||
Net amounts presented in the consolidated balance sheets | $ | 73 | $ | 1 | $ | 74 | $ | 216 | $ | 941 | $ | 1,157 | $ | 1,083 |
1 | At December 31, 2016, SCE had received $2 million of cash collateral that is not offset against derivative assets and is reflected in "Other current liabilities" on the consolidated balance sheets. |
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Realized losses | $ | (14 | ) | $ | (59 | ) | $ | (148 | ) | |||
Unrealized gains (losses) | 106 | 84 | (182 | ) |
Economic Hedges | |||||
Unit of | December 31, | ||||
Commodity | Measure | 2017 | 2016 | ||
Electricity options, swaps and forwards | GWh | 475 | 1,816 | ||
Natural gas options, swaps and forwards | Bcf | 143 | 36 | ||
Congestion revenue rights | GWh | 78,765 | 93,319 | ||
Tolling arrangements | GWh | — | 61,093 |
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Income from continuing operations before income taxes | $ | 949 | $ | 1,590 | $ | 1,568 | ||||||
Income from discontinued operations before income taxes | — | 1 | 15 | |||||||||
Income before income tax | $ | 949 | $ | 1,591 | $ | 1,583 |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Current: | |||||||||||||||||||||||
Federal | $ | (221 | ) | $ | (46 | ) | $ | 18 | $ | (253 | ) | $ | 75 | $ | 72 | ||||||||
State | 4 | 33 | 19 | (81 | ) | 93 | 127 | ||||||||||||||||
(217 | ) | (13 | ) | 37 | (334 | ) | 168 | 199 | |||||||||||||||
Deferred: | |||||||||||||||||||||||
Federal | 570 | 176 | 340 | 265 | 112 | 298 | |||||||||||||||||
State | (72 | ) | 14 | 109 | 39 | (24 | ) | 10 | |||||||||||||||
498 | 190 | 449 | 304 | 88 | 308 | ||||||||||||||||||
Total continuing operations | 281 | 177 | 486 | (30 | ) | 256 | 507 | ||||||||||||||||
Discontinued operations | — | (11 | ) | (21 | ) | — | — | — | |||||||||||||||
Total | $ | 281 | $ | 166 | $ | 465 | $ | (30 | ) | $ | 256 | $ | 507 |
Edison International | SCE | ||||||||||||||
December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Deferred tax assets: | |||||||||||||||
Property and software related | $ | 358 | $ | 549 | $ | 357 | $ | 548 | |||||||
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 404 | 348 | 404 | 348 | |||||||||||
Loss and credit carryforwards1 | 1,346 | 1,418 | 150 | — | |||||||||||
Regulatory asset2 | 812 | 15 | 812 | 15 | |||||||||||
Pension and postretirement benefits other than pensions | 214 | 300 | 86 | 93 | |||||||||||
Other | 277 | 419 | 236 | 408 | |||||||||||
Sub-total | 3,411 | 3,049 | 2,045 | 1,412 | |||||||||||
Less valuation allowance | 28 | 24 | — | — | |||||||||||
Total | 3,383 | 3,025 | 2,045 | 1,412 | |||||||||||
Deferred tax liabilities: | |||||||||||||||
Property-related | 6,970 | 10,330 | 6,962 | 10,330 | |||||||||||
Capitalized software costs | 160 | 237 | 160 | 237 | |||||||||||
Regulatory liability | 158 | 134 | 158 | 134 | |||||||||||
Nuclear decommissioning trust assets | 404 | 348 | 404 | 348 | |||||||||||
Postretirement benefits other than pensions | 36 | 13 | 36 | 13 | |||||||||||
Other | 140 | 202 | 133 | 148 | |||||||||||
Total | 7,868 | 11,264 | 7,853 | 11,210 | |||||||||||
Accumulated deferred income tax liability, net3 | $ | 4,485 | $ | 8,239 | $ | 5,808 | $ | 9,798 |
1 | As of December 31, 2017, Edison International has recorded a valuation allowance of $28 million for non-California state net operating loss carryforwards estimated to expire unused. In addition, as of December 31, 2017, deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $77 million and $75 million for Edison International and SCE, respectively. |
3 | Included in deferred income taxes and credits on the consolidated balance sheets. |
Edison International | SCE | ||||||||||||||
December 31, 2017 | |||||||||||||||
(in millions) | Loss Carryforwards | Credit Carryforwards | Loss Carryforwards | Credit Carryforwards | |||||||||||
Expire between 2018 to 2036 | $ | 901 | $ | 451 | $ | 162 | $ | 25 | |||||||
No expiration date | — | 71 | — | 38 | |||||||||||
Total1 | $ | 901 | $ | 522 | $ | 162 | $ | 63 |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Income from continuing operations before income taxes | $ | 949 | $ | 1,590 | $ | 1,568 | $ | 1,106 | $ | 1,755 | $ | 1,618 | |||||||||||
Provision for income tax at federal statutory rate of 35% | 332 | 556 | 549 | 387 | 614 | 566 | |||||||||||||||||
Increase in income tax from: | |||||||||||||||||||||||
Items presented with related state income tax, net: | |||||||||||||||||||||||
Regulatory asset write-off1 | — | — | 382 | — | — | 382 | |||||||||||||||||
State tax, net of federal benefit | 2 | 29 | 5 | 8 | 43 | 34 | |||||||||||||||||
Property-related2 | (439 | ) | (362 | ) | (341 | ) | (439 | ) | (362 | ) | (341 | ) | |||||||||||
Change related to uncertain tax positions | (18 | ) | (4 | ) | (67 | ) | (13 | ) | (8 | ) | (94 | ) | |||||||||||
Revised San Onofre Settlement Agreement3 | 25 | — | — | 25 | — | — | |||||||||||||||||
Share-based compensation4 | (55 | ) | (28 | ) | — | (11 | ) | (13 | ) | — | |||||||||||||
Deferred tax re-measurement5 | 466 | — | — | 33 | — | — | |||||||||||||||||
Other | (32 | ) | (14 | ) | (42 | ) | (20 | ) | (18 | ) | (40 | ) | |||||||||||
Total income tax expense (income)from continuing operations | $ | 281 | $ | 177 | $ | 486 | $ | (30 | ) | $ | 256 | $ | 507 | ||||||||||
Effective tax rate | 29.6 | % | 11.1 | % | 31.0 | % | (2.7 | )% | 14.6 | % | 31.3 | % |
2 | Includes incremental repair benefits. See discussion of repair deductions below. In addition, during 2017, SCE recorded $80 million ($135 million pre-tax) of tax benefits related to tax accounting method changes resulting from the filing of SCE's 2016 tax returns. |
4 | Includes state taxes of $(11) million and $(2) million for Edison International and SCE, respectively, for the year ended December 31, 2017. Includes state taxes of $(4) million and $(1) million for Edison International and SCE, respectively, for the year ended December 31, 2016. Refer to Note 1 for further information. |
5 | In 2017, Edison International and SCE recorded a charge to earnings related to the re-measurement of deferred taxes resulting from Tax Reform. See further discussion above. |
Edison International | SCE | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Balance at January 1, | $ | 471 | $ | 529 | $ | 576 | $ | 371 | $ | 353 | $ | 441 | |||||||||||
Tax positions taken during the current year: | |||||||||||||||||||||||
Increases | 51 | 36 | 54 | 51 | 36 | 48 | |||||||||||||||||
Tax positions taken during a prior year: | |||||||||||||||||||||||
Increases | — | 2 | 66 | — | — | 23 | |||||||||||||||||
Decreases1 | (7 | ) | (96 | ) | (165 | ) | (13 | ) | (18 | ) | (159 | ) | |||||||||||
Decreases for settlements during the period2 | (83 | ) | — | (2 | ) | (78 | ) | — | — | ||||||||||||||
Balance at December 31, | $ | 432 | $ | 471 | $ | 529 | $ | 331 | $ | 371 | $ | 353 |
1 | Decreases in prior year tax positions for 2016 relate to state tax receivables on various claims. Due to the tax risks associated with these claims, the tax benefits were fully reserved at the time the asset was recorded. During 2016, the Company has determined that it will not recognize these assets so the tax benefit and related tax reserve were written off. Decreases in tax positions for 2015 relate primarily to re-measurement of uncertain tax positions in connection with receipt of the Internal Revenue Service ("IRS") Revenue Agent Report in June 2015. See discussions in Tax Disputes below. |
2 | In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012. |
Edison International | SCE | ||||||||||||||
Years ended December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Accrued interest and penalties | $ | 115 | $ | 128 | $ | 41 | $ | 41 |
Edison International | SCE | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Net after-tax interest and penalties tax expense (benefit) | $ | 6 | $ | 6 | $ | (9 | ) | $ | 4 | $ | 2 | $ | (14 | ) |
Edison International | SCE | ||||||
(in millions) | Years ended December 31, | ||||||
2017 | $ | 70 | $ | 69 | |||
2016 | 69 | 68 | |||||
2015 | 73 | 72 |
Edison International | SCE | ||||||||||||||
Years ended December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Change in projected benefit obligation | |||||||||||||||
Projected benefit obligation at beginning of year | $ | 4,284 | $ | 4,374 | $ | 3,791 | $ | 3,878 | |||||||
Service cost | 137 | 139 | 129 | 132 | |||||||||||
Interest cost | 164 | 171 | 144 | 150 | |||||||||||
Actuarial gain | (46 | ) | (125 | ) | (74 | ) | (140 | ) | |||||||
Benefits paid | (360 | ) | (275 | ) | (288 | ) | (229 | ) | |||||||
Projected benefit obligation at end of year | $ | 4,179 | $ | 4,284 | $ | 3,702 | $ | 3,791 | |||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 3,388 | $ | 3,298 | $ | 3,172 | $ | 3,080 | |||||||
Actual return on plan assets | 483 | 262 | 442 | 239 | |||||||||||
Employer contributions | 105 | 103 | 64 | 82 | |||||||||||
Benefits paid | (360 | ) | (275 | ) | (288 | ) | (229 | ) | |||||||
Fair value of plan assets at end of year | $ | 3,616 | $ | 3,388 | $ | 3,390 | $ | 3,172 | |||||||
Funded status at end of year | $ | (563 | ) | $ | (896 | ) | $ | (312 | ) | $ | (619 | ) | |||
Amounts recognized in the consolidated balance sheets consist of 1: | |||||||||||||||
Long-term assets | $ | 7 | $ | 2 | $ | — | $ | — | |||||||
Current liabilities | (17 | ) | (50 | ) | (4 | ) | (4 | ) | |||||||
Long-term liabilities | (553 | ) | (848 | ) | (308 | ) | (615 | ) | |||||||
$ | (563 | ) | $ | (896 | ) | $ | (312 | ) | $ | (619 | ) | ||||
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||||||||||
Prior service cost | $ | (1 | ) | $ | (1 | ) | $ | — | $ | — | |||||
Net loss1 | 77 | 93 | 21 | 24 | |||||||||||
$ | 76 | $ | 92 | $ | 21 | $ | 24 | ||||||||
Amounts recognized as a regulatory asset | $ | 271 | $ | 574 | $ | 271 | $ | 574 | |||||||
Total not yet recognized as expense | $ | 347 | $ | 666 | $ | 292 | $ | 598 | |||||||
Accumulated benefit obligation at end of year | $ | 4,022 | $ | 4,138 | $ | 3,585 | $ | 3,683 | |||||||
Pension plans with an accumulated benefit obligation in excess of plan assets: | |||||||||||||||
Projected benefit obligation | $ | 4,179 | $ | 4,284 | $ | 3,702 | $ | 3,791 | |||||||
Accumulated benefit obligation | 4,022 | 4,138 | 3,585 | 3,683 | |||||||||||
Fair value of plan assets | 3,616 | 3,388 | 3,390 | 3,172 | |||||||||||
Weighted-average assumptions used to determine obligations at end of year: | |||||||||||||||
Discount rate | 3.46 | % | 3.94 | % | 3.46 | % | 3.94 | % | |||||||
Rate of compensation increase | 4.10 | % | 4.00 | % | 4.10 | % | 4.00 | % |
1 | The SCE liability excludes a long-term payable due to Edison International Parent of $114 million and $124 million at December 31, 2017 and 2016, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $21 million and $24 million at December 31, 2017 and 2016, respectively, excludes net loss of $19 million and $20 million related to these benefits. |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 138 | $ | 139 | $ | 142 | $ | 133 | $ | 136 | $ | 139 | |||||||||||
Interest cost | 164 | 172 | 170 | 149 | 156 | 155 | |||||||||||||||||
Expected return on plan assets | (212 | ) | (220 | ) | (233 | ) | (199 | ) | (205 | ) | (217 | ) | |||||||||||
Settlement costs1 | 6 | — | — | — | — | — | |||||||||||||||||
Amortization of prior service cost | 3 | 4 | 5 | 3 | 4 | 5 | |||||||||||||||||
Amortization of net loss2 | 21 | 27 | 40 | 17 | 23 | 35 | |||||||||||||||||
Expense under accounting standards | 120 | 122 | 124 | 103 | 114 | 117 | |||||||||||||||||
Regulatory adjustment (deferred) | (28 | ) | (21 | ) | (6 | ) | (28 | ) | (21 | ) | (6 | ) | |||||||||||
Total expense recognized | $ | 92 | $ | 101 | $ | 118 | $ | 75 | $ | 93 | $ | 111 |
1 | Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $6.4 million ($3.8 million after-tax) was recorded at Edison International for the year ended December 31, 2017. |
2 | Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was $10 million, $10 million and $14 million for the years ended December 31, 2017, 2016 and 2015, respectively. The amount reclassified for SCE was $6 million, $6 million and $8 million, respectively, for the years ended December 31, 2017, 2016 and 2015, respectively. |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Net loss (gain) | $ | — | $ | 6 | $ | 7 | $ | 3 | $ | 4 | $ | (9 | ) | ||||||||||
Settlement charges | (6 | ) | — | — | — | — | — | ||||||||||||||||
Amortization of net loss | (10 | ) | (10 | ) | (15 | ) | (6 | ) | (6 | ) | (9 | ) | |||||||||||
Total recognized in other comprehensive loss | $ | (16 | ) | $ | (4 | ) | $ | (8 | ) | $ | (3 | ) | $ | (2 | ) | $ | (18 | ) | |||||
Total recognized in expense and other comprehensive loss | $ | 76 | $ | 97 | $ | 110 | $ | 72 | $ | 91 | $ | 93 |
(in millions) | Edison International | SCE | |||||
Unrecognized net loss to be amortized1 | $ | 8 | $ | 6 | |||
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 $8 million and $6 million, respectively. |
Years ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Discount rate | 3.94 | % | 4.18 | % | 3.85 | % | ||
Rate of compensation increase | 4.00 | % | 4.00 | % | 4.00 | % | ||
Expected long-term return on plan assets | 6.50 | % | 7.00 | % | 7.00 | % |
Edison International | SCE | ||||||
(in millions) | Years ended December 31, | ||||||
2018 | $ | 338 | $ | 304 | |||
2019 | 343 | 303 | |||||
2020 | 327 | 293 | |||||
2021 | 324 | 287 | |||||
2022 | 309 | 281 | |||||
2023 – 2027 | 1,453 | 1,299 |
Edison International | SCE | ||||||||||||||
Years ended December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Change in benefit obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 2,276 | $ | 2,350 | $ | 2,266 | $ | 2,341 | |||||||
Service cost | 31 | 35 | 31 | 34 | |||||||||||
Interest cost | 86 | 97 | 85 | 97 | |||||||||||
Special termination benefits | 1 | 2 | 1 | 2 | |||||||||||
Plan Amendments | — | (6 | ) | — | (6 | ) | |||||||||
Actuarial loss (gain) | 24 | (110 | ) | 23 | (110 | ) | |||||||||
Plan participants' contributions | 24 | 19 | 24 | 19 | |||||||||||
Benefits paid | (105 | ) | (111 | ) | (105 | ) | (111 | ) | |||||||
Benefit obligation at end of year | $ | 2,337 | $ | 2,276 | $ | 2,325 | $ | 2,266 | |||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 2,102 | $ | 2,036 | $ | 2,102 | $ | 2,036 | |||||||
Actual return on assets | 297 | 137 | 297 | 137 | |||||||||||
Employer contributions | 12 | 21 | 12 | 21 | |||||||||||
Plan participants' contributions | 24 | 19 | 24 | 19 | |||||||||||
Benefits paid | (105 | ) | (111 | ) | (105 | ) | (111 | ) | |||||||
Fair value of plan assets at end of year | $ | 2,330 | $ | 2,102 | $ | 2,330 | $ | 2,102 | |||||||
Funded status at end of year | $ | (7 | ) | $ | (174 | ) | $ | 5 | $ | (164 | ) | ||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||
Long-term assets | $ | 6 | $ | — | $ | 17 | $ | — | |||||||
Current liabilities | (13 | ) | (14 | ) | (12 | ) | (13 | ) | |||||||
Long-term liabilities | — | (160 | ) | — | (151 | ) | |||||||||
$ | (7 | ) | $ | (174 | ) | $ | 5 | $ | (164 | ) | |||||
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||||||||||
Net loss | $ | 4 | $ | 4 | $ | — | $ | — | |||||||
Amounts recognized as a regulatory (liability) asset | (26 | ) | 136 | (26 | ) | 136 | |||||||||
Total not yet recognized as (income) expense | $ | (22 | ) | $ | 140 | $ | (26 | ) | $ | 136 | |||||
Weighted-average assumptions used to determine obligations at end of year: | |||||||||||||||
Discount rate | 3.70 | % | 4.29 | % | 3.70 | % | 4.29 | % | |||||||
Assumed health care cost trend rates: | |||||||||||||||
Rate assumed for following year | 6.75 | % | 7.00 | % | 6.75 | % | 7.00 | % | |||||||
Ultimate rate | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||||
Year ultimate rate reached | 2029 | 2022 | 2029 | 2022 |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 31 | $ | 35 | $ | 46 | $ | 31 | $ | 34 | $ | 46 | |||||||||||
Interest cost | 86 | 97 | 102 | 85 | 97 | 102 | |||||||||||||||||
Expected return on plan assets | (110 | ) | (112 | ) | (116 | ) | (110 | ) | (112 | ) | (116 | ) | |||||||||||
Special termination benefits1 | 1 | 2 | 1 | 1 | 2 | 1 | |||||||||||||||||
Amortization of prior service credit | (3 | ) | (2 | ) | (12 | ) | (2 | ) | (2 | ) | (12 | ) | |||||||||||
Amortization of net loss | — | — | 3 | — | — | 2 | |||||||||||||||||
Total expense | $ | 5 | $ | 20 | $ | 24 | $ | 5 | $ | 19 | $ | 23 |
1 | Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage. |
(in millions) | Edison International | SCE | |||||
Unrecognized prior service credit to be amortized | $ | (1 | ) | $ | (1 | ) |
Years ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Discount rate | 4.29 | % | 4.55 | % | 4.16 | % | ||
Expected long-term return on plan assets | 5.30 | % | 5.60 | % | 5.50 | % | ||
Assumed health care cost trend rates: | ||||||||
Current year | 7.00 | % | 7.50 | % | 7.75 | % | ||
Ultimate rate | 5.00 | % | 5.00 | % | 5.00 | % | ||
Year ultimate rate reached | 2022 | 2022 | 2021 |
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, 2017 | $ | 247 | $ | (203 | ) | $ | 246 | $ | (202 | ) | |||||
Effect on annual aggregate service and interest costs | 9 | (8 | ) | 9 | (8 | ) |
Edison International | SCE | ||||||
(in millions) | Years ended December 31, | ||||||
2018 | $ | 93 | $ | 93 | |||
2019 | 96 | 96 | |||||
2020 | 100 | 100 | |||||
2021 | 103 | 103 | |||||
2022 | 107 | 106 | |||||
2023 – 2027 | 582 | 580 |
• | 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: 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: Limited partnerships that invest in non-publicly traded entities. |
• | Other: Investments diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns. |
(in millions) | Level 1 | Level 2 | Level 3 | NAV1 | Total | ||||||||||||||
U.S. government and agency securities2 | $ | 184 | $ | 507 | $ | — | $ | — | $ | 691 | |||||||||
Corporate stocks3 | 718 | 11 | — | — | 729 | ||||||||||||||
Corporate bonds4 | — | 676 | — | — | 676 | ||||||||||||||
Common/collective funds5 | — | — | — | 705 | 705 | ||||||||||||||
Partnerships/joint ventures6 | — | — | — | 396 | 396 | ||||||||||||||
Other investment entities7 | — | — | — | 262 | 262 | ||||||||||||||
Registered investment companies8 | 140 | — | — | — | 140 | ||||||||||||||
Interest-bearing cash | 9 | — | — | — | 9 | ||||||||||||||
Other | — | 106 | — | — | 106 | ||||||||||||||
Total | $ | 1,051 | $ | 1,300 | $ | — | $ | 1,363 | $ | 3,714 | |||||||||
Receivables and payables, net | (98 | ) | |||||||||||||||||
Net plan assets available for benefits | $ | 3,616 | |||||||||||||||||
SCE's share of net plan assets | $ | 3,390 |
(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 |
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, 2017 and 2016, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (54%) and (62%) and Morgan Stanley Capital International (MSCI) index (46%) and (38%). |
4 | Corporate bonds are diversified. At December 31, 2017 and 2016, respectively, this category includes $65 million and $76 million for collateralized mortgage obligations and other asset backed securities of which $18 million and $27 million are below investment grade. |
5 | At December 31, 2017 and 2016, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index (41% and 45%) and Russell 1000 indexes (15%). At both December 31, 2017 and 2016, 15% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS. At December 31, 2017 and 2016, a non-index U.S. equity fund representing 25% and 23% of this category for 2017 and 2016, respectively, is actively managed. |
6 | At both December 31, 2017 and 2016, 55% are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies. At December 31, 2017 and 2016, respectively, 23% and 22% are invested in publicly traded fixed income securities, 20% and 18% are invested in a broad range of financial assets in all global markets and 2% and 4% 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 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. |
(in millions) | Level 1 | Level 2 | Level 3 | NAV1 | Total | ||||||||||||||
U.S. government and agency securities2 | $ | 398 | $ | 33 | $ | — | $ | — | $ | 431 | |||||||||
Corporate stocks3 | 254 | — | — | — | 254 | ||||||||||||||
Corporate notes and bonds4 | — | 845 | — | — | 845 | ||||||||||||||
Common/collective funds5 | — | — | — | 569 | 569 | ||||||||||||||
Partnerships6 | — | — | — | 82 | 82 | ||||||||||||||
Registered investment companies7 | 37 | — | — | — | 37 | ||||||||||||||
Interest bearing cash | 42 | — | — | — | 42 | ||||||||||||||
Other8 | 5 | 84 | — | — | 89 | ||||||||||||||
Total | $ | 736 | $ | 962 | $ | — | $ | 651 | $ | 2,349 | |||||||||
Receivables and payables, net | (19 | ) | |||||||||||||||||
Combined net plan assets available for benefits | $ | 2,330 |
(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 |
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 (64% and 47%) and the MSCI All Country World Index (36% and 53%) for 2017 and 2016, respectively. |
4 | Corporate notes and bonds are diversified and include approximately $36 million and $47 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2017 and 2016, respectively. |
5 | At December 31, 2017 and 2016, respectively, 75% and 39% of the common/collective assets are invested 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. 17% and 18% 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 at December 31, 2017 and a large cap index fund which seeks to track performance of the Russell 1000 index at December 31, 2016. |
6 | At December 31, 2017 and 2016, respectively, 56% and 59% 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. 33% and 31% are invested in a broad range of financial assets in all global markets. 9% of the remaining partnerships category for both years is invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks. |
7 | At December 31, 2017, registered investment companies were primarily invested in (1) a money market fund, (2) exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index, and international small cap equities. At December 31, 2016, Level 1 registered investment companies consist of a money market fund. |
8 | Other includes $60 million and $76 million of municipal securities at December 31, 2017 and 2016, respectively. |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Stock-based compensation expense1: | |||||||||||||||||||||||
Stock options | $ | 14 | $ | 14 | $ | 14 | $ | 8 | $ | 7 | $ | 8 | |||||||||||
Performance shares | 2 | 13 | 7 | 2 | 6 | 4 | |||||||||||||||||
Restricted stock units | 6 | 6 | 7 | 3 | 3 | 4 | |||||||||||||||||
Other | 1 | 1 | 1 | — | — | — | |||||||||||||||||
Total stock-based compensation expense | $ | 23 | $ | 34 | $ | 29 | $ | 13 | $ | 16 | $ | 16 | |||||||||||
Income tax benefits related to stock compensation expense2 | $ | 72 | $ | 41 | $ | 12 | $ | 15 | $ | 20 | $ | 7 | |||||||||||
Excess tax benefits2 | — | — | 15 | — | — | 23 |
1 | Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. |
2 | Under new accounting guidance adopted in 2016, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. Beginning January 1, 2016, the excess tax impact of this permanent difference is recognized in earnings in the period it is created. |
Years ended December 31, | |||||
2017 | 2016 | 2015 | |||
Expected terms (in years) | 5.7 | 5.9 | 5.9 | ||
Risk-free interest rate | 2.1% - 2.3% | 1.2% – 2.2% | 1.6% – 2.1% | ||
Expected dividend yield | 2.7% - 3.8% | 2.5% – 3.0% | 2.6% – 3.2% | ||
Weighted-average expected dividend yield | 2.7% | 2.9% | 2.6% | ||
Expected volatility | 17.8% - 20.9% | 17.2% – 17.5% | 16.4% – 17.0% | ||
Weighted-average volatility | 17.9% | 17.4% | 16.5% |
Weighted-Average | ||||||||||||
Stock options | Exercise Price | Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | |||||||||
Edison International: | ||||||||||||
Outstanding at December 31, 2016 | 11,544,501 | $ | 50.26 | |||||||||
Granted | 1,359,599 | 79.23 | ||||||||||
Expired | — | — | ||||||||||
Forfeited | (163,449 | ) | 69.76 | |||||||||
Exercised | (4,918,086 | ) | 43.77 | |||||||||
Outstanding at December 31, 2017 | 7,822,565 | 58.98 | 6.37 | |||||||||
Vested and expected to vest at December 31, 2017 | 7,740,798 | 58.81 | 6.35 | $ | 62 | |||||||
Exercisable at December 31, 2017 | 4,241,658 | $ | 50.48 | 5.09 | $ | 58 | ||||||
SCE: | ||||||||||||
Outstanding at December 31, 2016 | 4,727,416 | $ | 51.81 | |||||||||
Granted | 699,538 | 79.12 | ||||||||||
Expired | — | — | ||||||||||
Forfeited | (77,165 | ) | 66.27 | |||||||||
Exercised | (987,161 | ) | 48.63 | |||||||||
Transfers, net | 83,074 | 46.47 | ||||||||||
Outstanding at December 31, 2017 | 4,445,702 | 56.46 | 5.99 | |||||||||
Vested and expected to vest at December 31, 2017 | 4,402,254 | 56.28 | 5.96 | $ | 45 | |||||||
Exercisable at December 31, 2017 | 2,555,160 | $ | 46.94 | 4.52 | $ | 43 |
(in millions) | Edison International | SCE | |||||
Unrecognized compensation cost, net of expected forfeitures | $ | 13 | $ | 7 | |||
Weighted-average period (in years) | 2.4 | 2.3 |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions, except per award amounts) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Stock options: | |||||||||||||||||||||||
Weighted average grant date fair value per option granted | $ | 10.65 | $ | 7.38 | $ | 7.54 | $ | 10.63 | $ | 7.50 | $ | 7.53 | |||||||||||
Fair value of options vested | 11 | 11 | 20 | 5 | 5 | 11 | |||||||||||||||||
Cash used to purchase shares to settle options | 293 | 220 | 170 | 77 | 118 | 69 | |||||||||||||||||
Cash from participants to exercise stock options | 167 | 136 | 113 | 48 | 77 | 45 | |||||||||||||||||
Value of options exercised | 126 | 84 | 57 | 29 | 41 | 24 | |||||||||||||||||
Tax benefits from options exercised | 51 | 34 | 23 | 12 | 17 | 10 |
Shares | Weighted-Average Fair Value | |||||
Edison International: | ||||||
Nonvested at December 31, 2016 | 207,497 | $ | 84.30 | |||
Granted | 81,874 | |||||
Forfeited | (53,002 | ) | ||||
Vested1 | (57,247 | ) | ||||
Nonvested at December 31, 2017 | 179,122 | 63.85 | ||||
SCE: | ||||||
Nonvested at December 31, 2016 | 96,667 | $ | 84.25 | |||
Granted | 42,569 | |||||
Forfeited | (25,061 | ) | ||||
Vested1 | (26,427 | ) | ||||
Affiliate transfers, net | 974 | |||||
Nonvested at December 31, 2017 | 88,722 | 64.01 |
1 | Relates to performance shares that will be paid in 2018 as performance targets were met at December 31, 2017. |
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, 2016 | 345,395 | $ | 61.05 | 160,788 | $ | 60.80 | |||||||
Granted | 91,528 | 79.23 | 47,100 | 79.12 | |||||||||
Forfeited | (7,311 | ) | 71.16 | (3,903 | ) | 67.65 | |||||||
Vested | (126,561 | ) | 51.08 | (64,266 | ) | 53.64 | |||||||
Affiliate transfers, net | — | — | 1,699 | 60.35 | |||||||||
Nonvested at December 31, 2017 | 303,051 | 69.52 | 141,418 | 69.96 |
Longest Maturity Date | Amortized Cost | Fair Value | |||||||||||||||
December 31, | |||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Stocks | — | $ | 236 | $ | 319 | $ | 1,596 | $ | 1,547 | ||||||||
Municipal bonds | 2054 | 643 | 659 | 768 | 766 | ||||||||||||
U.S. government and agency securities | 2067 | 1,235 | 1,131 | 1,319 | 1,191 | ||||||||||||
Corporate bonds | 2057 | 579 | 600 | 643 | 659 | ||||||||||||
Short-term investments and receivables/payables1 | One-year | 110 | 75 | 114 | 79 | ||||||||||||
Total | $ | 2,803 | $ | 2,784 | $ | 4,440 | $ | 4,242 |
1 | Short-term investments include $29 million and $114 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 2, 2018 and January 4, 2017 as of December 31, 2017 and 2016, respectively. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Current: | |||||||
Regulatory balancing accounts | $ | 484 | $ | 135 | |||
Power contracts and energy derivatives | 203 | 150 | |||||
Unamortized investments, net of accumulated amortization | 5 | 49 | |||||
Other | 11 | 16 | |||||
Total current | 703 | 350 | |||||
Long-term: | |||||||
Deferred income taxes, net of liabilities | 3,143 | 4,478 | |||||
Pensions and other postretirement benefits | 271 | 710 | |||||
Power contracts and energy derivatives | 799 | 947 | |||||
Unamortized investments, net of accumulated amortization | 123 | 80 | |||||
San Onofre | 72 | 857 | |||||
Unamortized loss on reacquired debt | 168 | 184 | |||||
Regulatory balancing accounts | 143 | 66 | |||||
Environmental remediation | 144 | 126 | |||||
Other | 51 | 7 | |||||
Total long-term | 4,914 | 7,455 | |||||
Total regulatory assets | $ | 5,617 | $ | 7,805 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Current: | |||||||
Regulatory balancing accounts | $ | 1,009 | $ | 736 | |||
Energy derivatives | 74 | — | |||||
Other | 38 | 20 | |||||
Total current | 1,121 | 756 | |||||
Long-term: | |||||||
Costs of removal | 2,741 | 2,847 | |||||
Re-measurement of deferred taxes | 2,892 | — | |||||
Recoveries in excess of ARO liabilities | 1,575 | 1,639 | |||||
Regulatory balancing accounts | 1,316 | 1,180 | |||||
Other postretirement benefits | 26 | — | |||||
Other | 64 | 60 | |||||
Total long-term | 8,614 | 5,726 | |||||
Total regulatory liabilities | $ | 9,735 | $ | 6,482 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Asset (liability) | |||||||
Energy resource recovery account | $ | 464 | $ | (20 | ) | ||
New system generation balancing account | (197 | ) | (6 | ) | |||
Public purpose programs and energy efficiency programs | (1,145 | ) | (992 | ) | |||
Base revenue requirement balancing account | (200 | ) | (426 | ) | |||
Tax accounting memorandum account and pole loading balancing account | (259 | ) | (142 | ) | |||
DOE litigation memorandum account | (156 | ) | (122 | ) | |||
Greenhouse gas auction revenue | (22 | ) | 31 | ||||
FERC balancing accounts | (205 | ) | (69 | ) | |||
Other | 22 | 31 | |||||
Liability | $ | (1,698 | ) | $ | (1,715 | ) |
(in millions) | Total | ||
2018 | $ | 2,513 | |
2019 | 2,513 | ||
2020 | 2,614 | ||
2021 | 2,582 | ||
2022 | 2,562 | ||
Thereafter | 27,093 | ||
Total future commitments | $ | 39,877 |
(in millions) | Operating Leases | Capital Leases | |||||
2018 | $ | 335 | $ | 2 | |||
2019 | 262 | 2 | |||||
2020 | 234 | 2 | |||||
2021 | 198 | 3 | |||||
2022 | 174 | 3 | |||||
Thereafter | 1,222 | 21 | |||||
Total future commitments | $ | 2,425 | $ | 33 | |||
Amount representing executory costs | (15 | ) | |||||
Amount representing interest | (8 | ) | |||||
Net commitments | $ | 10 |
(in millions) | Total | ||
2018 | $ | 48 | |
2019 | 37 | ||
2020 | 27 | ||
2021 | 20 | ||
2022 | 15 | ||
Thereafter | 99 | ||
Total future commitments | $ | 246 |
(in millions) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||
Other contractual obligations | $ | 127 | $ | 72 | $ | 69 | $ | 45 | $ | 46 | $ | 345 | $ | 704 |
(in millions) | |||
San Onofre base regulatory asset | $ | 696 | |
DOE litigation regulatory liability | (72 | ) | |
MHI Arbitration regulatory liability | (47 | ) | |
GHG Reduction Program | (10 | ) | |
Other | 6 | ||
Present value of Utility Shareholder Agreement | 143 | ||
Total pre-tax charge | $ | 716 | |
Total after-tax charge | $ | 448 |
Shares Outstanding | Redemption Price | December 31, | ||||||||||||
(in millions, except shares and per-share amounts) | 2017 | 2016 | ||||||||||||
Cumulative preferred stock | ||||||||||||||
$25 par value: | ||||||||||||||
4.08% Series | 650,000 | $ | 25.50 | $ | 16 | $ | 16 | |||||||
4.24% Series | 1,200,000 | 25.80 | 30 | 30 | ||||||||||
4.32% Series | 1,653,429 | 28.75 | 41 | 41 | ||||||||||
4.78% Series | 1,296,769 | 25.80 | 33 | 33 | ||||||||||
Preference stock | ||||||||||||||
No par value: | ||||||||||||||
6.25% Series E (cumulative) | 350,000 | 1,000.00 | 350 | 350 | ||||||||||
5.625% Series F (cumulative) | 190,004 | 2,500.00 | — | 475 | ||||||||||
5.10% Series G (cumulative) | 160,004 | 2,500.00 | 400 | 400 | ||||||||||
5.75% Series H (cumulative) | 110,004 | 2,500.00 | 275 | 275 | ||||||||||
5.375% Series J (cumulative) | 130,004 | 2,500.00 | 325 | 325 | ||||||||||
5.45% Series K (cumulative) | 120,004 | 2,500.00 | 300 | 300 | ||||||||||
5.00% Series L (cumulative) | 190,004 | 2,500.00 | 475 | — | ||||||||||
SCE's preferred and preference stock | 2,245 | 2,245 | ||||||||||||
Less issuance costs | (52 | ) | (54 | ) | ||||||||||
Edison International's preferred and preference stock of utility | $ | 2,193 | $ | 2,191 |
Edison International | SCE | ||||||||||||||
Years ended December 31, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Beginning balance | $ | (53 | ) | $ | (56 | ) | $ | (20 | ) | $ | (22 | ) | |||
Pension and PBOP – net gain (loss): | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 3 | (4 | ) | (2 | ) | (2 | ) | ||||||||
Reclassified from accumulated other comprehensive loss1 | 7 | 6 | 3 | 3 | |||||||||||
Other | — | 1 | — | 1 | |||||||||||
Change | 10 | 3 | 1 | 2 | |||||||||||
Ending balance | $ | (43 | ) | $ | (53 | ) | $ | (19 | ) | $ | (20 | ) |
1 | These items are included in the computation of net periodic pension and PBOP expenses. See Note 8 for additional information. |
Years ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
SCE interest and other income: | ||||||||||||
Equity allowance for funds used during construction | $ | 87 | $ | 74 | $ | 87 | ||||||
Increase in cash surrender value of life insurance policies and life insurance benefits | 42 | 39 | 26 | |||||||||
Interest income | 7 | 3 | 4 | |||||||||
Other | 9 | 7 | 6 | |||||||||
Total SCE interest and other income | 145 | 123 | 123 | |||||||||
Other income of Edison International Parent and Other1 | 1 | — | 51 | |||||||||
Total Edison International interest and other income | $ | 146 | $ | 123 | $ | 174 | ||||||
SCE other expenses: | ||||||||||||
Civic, political and related activities and donations | $ | (34 | ) | $ | (32 | ) | $ | (35 | ) | |||
Other | (14 | ) | (12 | ) | (24 | ) | ||||||
Total SCE other expenses | (48 | ) | (44 | ) | (59 | ) | ||||||
Other expenses of Edison International Parent and Other | (3 | ) | — | — | ||||||||
Total Edison International other expenses | $ | (51 | ) | $ | (44 | ) | $ | (59 | ) |
Edison International | SCE | ||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Cash payments for interest and taxes: | |||||||||||||||||||||||
Interest, net of amounts capitalized | $ | 548 | $ | 504 | $ | 512 | $ | 509 | $ | 475 | $ | 478 | |||||||||||
Tax payments, net of refunds | 1 | 18 | 1 | 2 | 78 | 144 | |||||||||||||||||
Non-cash financing and investing activities: | |||||||||||||||||||||||
Dividends declared but not paid: | |||||||||||||||||||||||
Common stock | $ | 197 | $ | 177 | $ | 156 | $ | 212 | $ | — | $ | — | |||||||||||
Preferred and preference stock | 12 | 12 | 14 | 12 | 12 | 14 | |||||||||||||||||
Details of debt exchange: | |||||||||||||||||||||||
Pollution-control bonds redeemed (2.875%) | — | — | (203 | ) | — | — | (203 | ) | |||||||||||||||
Pollution-control bonds issued (1.875%) | — | — | 203 | — | — | 203 |
2017 | |||||||||||||||||||
(in millions, except per-share amounts) | Total | Fourth | Third | Second | First | ||||||||||||||
Operating revenue | $ | 12,320 | $ | 3,220 | $ | 3,672 | $ | 2,965 | $ | 2,463 | |||||||||
Operating income (loss) | 1,493 | (16 | ) | 561 | 469 | 479 | |||||||||||||
Income (loss) from continuing operations1,2 | 668 | (534 | ) | 501 | 309 | 392 | |||||||||||||
Income (loss) from discontinued operations, net | — | — | — | — | — | ||||||||||||||
Net income (loss) attributable to common shareholders | 565 | (545 | ) | 470 | 278 | 362 | |||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 1.73 | $ | (1.67 | ) | $ | 1.44 | $ | 0.85 | $ | 1.11 | ||||||||
Discontinued operations | — | — | — | — | — | ||||||||||||||
Total | $ | 1.73 | $ | (1.67 | ) | $ | 1.44 | $ | 0.85 | $ | 1.11 | ||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 1.72 | $ | (1.66 | ) | $ | 1.43 | $ | 0.85 | $ | 1.10 | ||||||||
Discontinued operations | — | — | — | — | — | ||||||||||||||
Total | $ | 1.72 | $ | (1.66 | ) | $ | 1.43 | $ | 0.85 | $ | 1.10 | ||||||||
Dividends declared per share | 2.2325 | 0.6050 | 0.5425 | 0.5425 | 0.5425 | ||||||||||||||
Common stock prices: | |||||||||||||||||||
High | $ | 83.38 | $ | 83.38 | $ | 81.58 | $ | 82.82 | $ | 81.33 | |||||||||
Low | 62.67 | 62.67 | 76.38 | 77.21 | 70.57 | ||||||||||||||
Close | 63.24 | 63.24 | 77.17 | 78.19 | 79.61 |
1 | In the fourth quarter of 2017, Edison International Parent and Other recorded a charge of $433 million related to the re-measurement of deferred taxes as a result of Tax Reform. |
2 | In the fourth quarter of 2017, SCE recorded impairment and other charges of $716 million ($448 million after-tax) related to the Revised San Onofre Settlement Agreement. |
2016 | |||||||||||||||||||
(in millions, except per-share amounts) | Total | Fourth | Third | Second | First | ||||||||||||||
Operating revenue | $ | 11,869 | $ | 2,884 | $ | 3,767 | $ | 2,777 | $ | 2,440 | |||||||||
Operating income | 2,092 | 566 | 695 | 381 | 448 | ||||||||||||||
Income from continuing operations | 1,413 | 347 | 451 | 310 | 305 | ||||||||||||||
Income (loss) from discontinued operations, net | 12 | 13 | — | (2 | ) | 1 | |||||||||||||
Net income attributable to common shareholders | 1,311 | 329 | 421 | 280 | 281 | ||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 3.99 | $ | 0.97 | $ | 1.29 | $ | 0.87 | $ | 0.86 | |||||||||
Discontinued operations | 0.03 | 0.04 | — | (0.01 | ) | — | |||||||||||||
Total | $ | 4.02 | $ | 1.01 | $ | 1.29 | $ | 0.86 | $ | 0.86 | |||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 3.94 | $ | 0.96 | $ | 1.27 | $ | 0.86 | $ | 0.85 | |||||||||
Discontinued operations | 0.03 | 0.04 | — | (0.01 | ) | — | |||||||||||||
Total | $ | 3.97 | $ | 1.00 | $ | 1.27 | $ | 0.85 | $ | 0.85 | |||||||||
Dividends declared per share | 1.9825 | 0.5425 | 0.4800 | 0.4800 | 0.4800 | ||||||||||||||
Common stock prices: | |||||||||||||||||||
High | $ | 78.72 | $ | 73.81 | $ | 78.72 | $ | 77.71 | $ | 72.34 | |||||||||
Low | 57.97 | 67.44 | 71.31 | 67.71 | 57.97 | ||||||||||||||
Close | 71.99 | 71.99 | 72.25 | 77.67 | 71.89 |
2017 | |||||||||||||||||||
(in millions) | Total | Fourth | Third | Second | First | ||||||||||||||
Operating revenue | $ | 12,254 | $ | 3,193 | $ | 3,652 | $ | 2,953 | $ | 2,456 | |||||||||
Operating income (loss) | 1,598 | (4 | ) | 578 | 517 | 507 | |||||||||||||
Net income (loss)1 | 1,136 | (79 | ) | 497 | 338 | 380 | |||||||||||||
Net income (loss) available for common stock | 1,012 | (109 | ) | 465 | 307 | 349 | |||||||||||||
Common dividends declared | 785 | 212 | 191 | 191 | 191 |
1 | In the fourth quarter of 2017, SCE recorded impairment and other charges of $716 million ($448 million after-tax) related to the Revised San Onofre Settlement Agreement. |
2016 | |||||||||||||||||||
(in millions) | Total | Fourth | Third | Second | First | ||||||||||||||
Operating revenue | $ | 11,830 | $ | 2,874 | $ | 3,752 | $ | 2,768 | $ | 2,435 | |||||||||
Operating income | 2,217 | 594 | 721 | 429 | 472 | ||||||||||||||
Net income | 1,499 | 359 | 466 | 349 | 325 | ||||||||||||||
Net income available for common stock | 1,376 | 328 | 435 | 318 | 295 | ||||||||||||||
Common dividends declared | 701 | 191 | 170 | 170 | 170 |
(in millions, except per-share amounts) | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Edison International | |||||||||||||||||||
Operating revenue | $ | 12,320 | $ | 11,869 | $ | 11,524 | $ | 13,413 | $ | 12,581 | |||||||||
Operating expenses | 10,827 | 9,777 | 9,516 | 10,941 | 10,866 | ||||||||||||||
Income from continuing operations | 668 | 1,413 | 1,082 | 1,536 | 979 | ||||||||||||||
Income from discontinued operations, net of tax | — | 12 | 35 | 185 | 36 | ||||||||||||||
Net income | 668 | 1,425 | 1,117 | 1,721 | 1,015 | ||||||||||||||
Net income attributable to common shareholders | 565 | 1,311 | 1,020 | 1,612 | 915 | ||||||||||||||
Weighted-average shares of common stock outstanding | 326 | 326 | 326 | 326 | 326 | ||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 1.73 | $ | 3.99 | $ | 3.02 | $ | 4.38 | $ | 2.70 | |||||||||
Discontinued operations | — | 0.03 | 0.11 | 0.57 | 0.11 | ||||||||||||||
Total | $ | 1.73 | $ | 4.02 | $ | 3.13 | $ | 4.95 | $ | 2.81 | |||||||||
Diluted earnings per share: | |||||||||||||||||||
Continuing operations | $ | 1.72 | $ | 3.94 | $ | 2.99 | $ | 4.33 | $ | 2.67 | |||||||||
Discontinued operations | — | 0.03 | 0.11 | 0.56 | 0.11 | ||||||||||||||
Total | $ | 1.72 | $ | 3.97 | $ | 3.10 | $ | 4.89 | $ | 2.78 | |||||||||
Dividends declared per share | 2.2325 | 1.9825 | 1.7325 | 1.4825 | 1.3675 | ||||||||||||||
Total assets1, 2 | $ | 52,580 | $ | 51,319 | $ | 50,229 | $ | 49,734 | $ | 46,225 | |||||||||
Long-term debt excluding current portion | 11,642 | 10,175 | 10,883 | 10,234 | 9,825 | ||||||||||||||
Capital lease obligations excluding current portion | 10 | 6 | 7 | 196 | 203 | ||||||||||||||
Preferred and preference stock of utility | 2,193 | 2,191 | 2,020 | 2,022 | 1,753 | ||||||||||||||
Common shareholders' equity | 11,671 | 11,996 | 11,368 | 10,960 | 9,938 | ||||||||||||||
Southern California Edison Company | |||||||||||||||||||
Operating revenue | $ | 12,254 | $ | 11,830 | $ | 11,485 | $ | 13,380 | $ | 12,562 | |||||||||
Operating expenses | 10,656 | 9,613 | 9,405 | 10,851 | 10,811 | ||||||||||||||
Net income | 1,136 | 1,499 | 1,111 | 1,565 | 1,000 | ||||||||||||||
Net income available for common stock | 1,012 | 1,376 | 998 | 1,453 | 900 | ||||||||||||||
Total assets2 | $ | 51,515 | $ | 50,891 | $ | 49,795 | $ | 49,456 | $ | 45,786 | |||||||||
Long-term debt excluding current portion | 10,428 | 9,754 | 10,460 | 9,624 | 9,422 | ||||||||||||||
Capital lease obligations excluding current portion | 10 | 6 | 7 | 196 | 203 | ||||||||||||||
Preferred and preference stock | 2,245 | 2,245 | 2,070 | 2,070 | 1,795 | ||||||||||||||
Common shareholder's equity | 12,427 | 12,238 | 11,602 | 11,212 | 10,343 | ||||||||||||||
Capital structure3: | |||||||||||||||||||
Common shareholder's equity | 49.5 | % | 50.5 | % | 48.1 | % | 49.0 | % | 48.0 | % | |||||||||
Preferred and preference stock | 9.0 | % | 9.3 | % | 8.6 | % | 9.0 | % | 8.3 | % | |||||||||
Long-term debt | 41.5 | % | 40.2 | % | 43.3 | % | 42.0 | % | 43.7 | % |
1 | Total assets includes assets from continuing and discontinued operations. |
2 | Effective December 31, 2015, Edison International and SCE adopted an accounting standard, retrospectively, that requires all deferred income tax assets and liabilities be presented as noncurrent in the consolidated balance sheet. |
(in thousands) | 2017 | 2016 | 2015 | |||
Residential | 4,448 | 4,417 | 4,393 | |||
Commercial | 569 | 565 | 561 | |||
Industrial | 10 | 10 | 11 | |||
Public authorities | 46 | 46 | 46 | |||
Agricultural and other | 22 | 23 | 22 | |||
Total | 5,095 | 644 | 5,033 |
Generating Facility | Location (in CA, unless otherwise noted) | Fuel Type | Operator | SCE's Ownership Interest (%) | Net Physical Capacity (in MW) | SCE's Capacity pro rata share (in MW) | ||||||||||
Hydroelectric Plants (33) | Various | Hydroelectric | SCE | 100 | % | 1,153 | 1,153 | |||||||||
Pebbly Beach Generating Station (including battery storage) | Catalina Island | Diesel/Liquid Petroleum Gas | SCE | 100 | % | 11 | 1 | 11 | 1 | |||||||
Mountainview Units 3 and 4 | Redlands | Natural Gas | SCE | 100 | % | 1,050 | 1,050 | |||||||||
Peaker Plants (3) | Various | Natural Gas | SCE | 100 | % | 147 | 147 | |||||||||
Enhanced Peaker Plants (2) (gas turbine and battery storage) | Various | Natural gas | SCE | 100 | % | 98 | 2 | 98 | 2 | |||||||
Palo Verde Nuclear Generating Station | Phoenix, AZ | Nuclear | APS | 15.8 | % | 3,739 | 591 | |||||||||
Solar PV Plants (25) | Various | Photovoltaic | SCE | 100 | % | 91 | 91 | |||||||||
Fuel Cells (2) | Various | Natural Gas | SCE | 100 | % | 2 | 2 | |||||||||
Mira Loma Energy Storage | Mira Loma | Electricity | SCE | 100 | % | 20 | 20 | |||||||||
Energy Storage Projects (4) | Various | Electricity | SCE | 100 | % | 12.4 | 12.4 | |||||||||
Total | 6,323.4 | 3,175.4 |
1 | Pebbly Beach Generating Station consists of 11 MW of diesel generators and liquid petroleum gas micro-turbines supported by 1 MW of battery storage capacity. |
2 | Enhanced peaker plants consist of 98 MW of gas turbine supported by 20 MW of battery storage capacity. |
Executive Officer | Age at February 22, 2018 | Company Position | ||
Pedro J. Pizarro | 52 | President and Chief Executive Officer | ||
Maria Rigatti | 54 | Executive Vice President and Chief Financial Officer | ||
Adam S. Umanoff | 58 | Executive Vice President and General Counsel | ||
Janet T. Clayton | 62 | Senior Vice President, Corporate Communications | ||
J. Andrew Murphy | 57 | Senior Vice President, Strategic Planning | ||
Gaddi H. Vasquez | 63 | Senior Vice President, Government Affairs | ||
Jacqueline Trapp | 50 | Vice President, Human Resources | ||
Kevin M. Payne | 57 | Chief Executive Officer, SCE | ||
Ronald O. Nichols | 64 | President, SCE |
Executive Officers | Company Position | Effective Dates | ||
Pedro J. Pizarro | Chief Executive Officer, Edison International President, Edison International President, SCE President, EME1 | September 2016 to present June 2016 to present October 2014 to June 2016 January 2011 to March 2014 | ||
Maria Rigatti | Executive Vice President, Chief Financial Officer Senior Vice President and Chief Financial Officer, SCE President, Edison Mission Reorganization Trust (EME Reorg Trust)2 Senior Vice President, Chief Financial Officer, EME1 | September 2016 to present July 2014 to September 2016 April 2014 to June 2014 March 2011 to March 2014 | ||
Adam S. Umanoff | Executive Vice President and General Counsel Edison International Partner, Akin Gump Strauss Hauer & Feld3 | January 2015 to present May 2011 to December 2014 | ||
Janet T. Clayton | Senior Vice President, Corporate Communications, Edison International Senior Vice President, Corporate Communications, SCE | April 2011 to present April 2013 to present | ||
J. Andrew Murphy | Senior Vice President, Strategic Planning, Edison International Senior Managing Director, Macquarie Infrastructure and Real Assets4 | September 2015 to present January 2012 to August 2015 | ||
Gaddi H. Vasquez | Senior Vice President, Government Affairs, Edison International and SCE Senior Vice President, Public Affairs, SCE | May 2013 to present July 2009 to May 2013 | ||
Jacqueline Trapp | Vice President, Human Resources, Edison International and SCE Director, Executive Talent and Rewards, Edison International | June 2016 to present July 2012 to June 2016 | ||
Kevin M. Payne | Chief Executive Officer, SCE Senior Vice President, Customer Service, SCE Vice President, Engineering and Technical Services, SCE | June 2016 to present March 2014 to June 2016 September 2011 to February 2014 | ||
Ronald O. Nichols | President, SCE Senior Vice President, Regulatory Affairs, SCE General Manager/Chief Executive Officer, Los Angeles Department of Water and Power5 | June 2016 to present April 2014 to June 2016 January 2011 to February 2014 |
1 | EME is a wholly-owned subsidiary of Edison International and an affiliate of SCE. EME filed for bankruptcy on December 17, 2012. |
2 | EME Reorg Trust was an entity formed as part of the EME bankruptcy to hold creditors' interests after the sale of EME's assets to NRG and is not a parent, affiliate or subsidiary of SCE. |
3 | Akin Gump Strauss Hauer & Feld is a global law firm and is not a parent, affiliate or subsidiary of Edison International. |
4 | Macquarie Infrastructure and Real Assets is a global infrastructure management company and is not a parent, affiliate or subsidiary of Edison International. |
5 | Los Angeles Department of Water and Power is a municipal water and power utility company and is not a parent, affiliate or subsidiary of Edison International. |
Executive Officer | Age at February 22, 2018 | Company Position | ||
Kevin M. Payne | 57 | Chief Executive Officer | ||
Ronald O. Nichols | 64 | President | ||
William M. Petmecky III | 48 | Senior Vice President and Chief Financial Officer | ||
Russell C. Swartz | 66 | Senior Vice President and General Counsel | ||
Philip R. Herrington | 55 | Senior Vice President, Transmission and Distribution | ||
Stuart R. Hemphill | 54 | Senior Vice President, Customer and Operational Services | ||
Caroline Choi | 49 | Senior Vice President, Regulatory Affairs |
Executive Officer | Company Position | Effective Dates | ||
Kevin M. Payne | Chief Executive Officer, SCE Senior Vice President, Customer Service, SCE Vice President, Engineering and Technical Services, SCE | June 2016 to present March 2014 to June 2016 September 2011 to March 2014 | ||
Ronald O. Nichols | President, SCE Senior Vice President, Regulatory Affairs, SCE General Manager/Chief Executive Officer, Los Angeles Department of Water and Power1 | June 2016 to present April 2014 to June 2016 January 2011 to February 2014 | ||
William M. Petmecky III | Senior Vice President and Chief Financial Officer, SCE Vice President and Treasurer, SCE Vice President and Treasurer, EME2 | September 2016 to present September 2014 to September 2016 September 2011 to March 2014 | ||
Russell C. Swartz | Senior Vice President and General Counsel, SCE | February 2011 to present | ||
Philip R. Herrington | Senior Vice President, Transmission and Distribution, SCE Vice President, Power Production, SCE President, US Competitive Generation/Market Business Lead, The AES Corporation President and Chief Executive Officer, Dayton Power and Light | September 2017 to present August 2015 to September 2017 July 2013 to July 2015 March 2012 to March 2014 | ||
Stuart R. Hemphill | Senior Vice President, Customer and Operational Services, SCE Senior Vice President, Power Supply and Operational Services, SCE Senior Vice President, Power Supply, SCE | June 2016 to present July 2014 to June 2016 January 2011 to July 2014 | ||
Caroline Choi | Senior Vice President, Regulatory Affairs, SCE Vice President Integrated Planning and Environmental Affairs, SCE | June 2016 to present January 2012 to June 2016 |
1 | Los Angeles Department of Water and Power is a municipal water and power utility company and is not a parent, affiliate or subsidiary of SCE. |
2 | EME is a wholly-owned subsidiary of Edison International and an affiliate of SCE. EME filed for bankruptcy on December 17, 2012. |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining for future issuance under equity compensation plans (excluding securities reflected in column (a)(c) | ||||
Equity compensation plans approved by security holders | 8,305,488 1 | 58.98 | 30,388,425 2 |
1 | This amount includes 7,822,565 shares covered by outstanding stock options, 322,281 shares covered by outstanding restricted stock unit awards, and 160,642 shares covered by outstanding deferred stock unit awards, with the outstanding shares covered by outstanding restricted stock unit and deferred stock unit awards including the crediting of dividend equivalents through December 31, 2017. The weighted-average exercise price of awards outstanding under equity compensation plans approved by security holders reflected in column (b) above is calculated based on the outstanding stock options under these plans as the other forms of awards outstanding have no exercise price. Awards payable solely in cash are not reflected in this table. |
2 | This amount is the aggregate number of shares available for new awards under the Edison International 2007 Performance Incentive Plan as of December 31, 2017, and includes shares that have become available from the Edison International Equity Compensation Plan and the Edison International 2000 Equity Plan (together, the "Prior Plans"). However, no additional awards may be granted under the Prior Plans. The maximum number of shares of Edison International Common Stock that may be issued or transferred pursuant to awards under the Edison International 2007 Performance Incentive Plan is 66,000,000 shares, plus the number of any shares subject to awards issued under the Prior Plans and outstanding as of April 26, 2007 that expire, cancel or terminate without being exercised or shares being issued. Shares available under the Edison International 2007 Performance Incentive Plan may generally, subject to certain limits set forth in the plan, be used for any type of award authorized under that plan, including stock options, restricted stock, performance shares, restricted or deferred units, and stock bonuses. |
Period | (a) Total Number of Shares (or Units) Purchased1 | (b) Average Price Paid per Share (or Unit)1 | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||
October 1, 2017 to October 31, 2017 | 47,999 | $ | 78.25 | — | — | |||||||
November 1, 2017 to November 30, 2017 | 410,890 | 81.45 | — | — | ||||||||
December 1, 2017 to December 31, 2017 | 668,154 | 69.63 | — | — | ||||||||
Total | 1,127,043 | $ | 74.31 | — | — |
1 | The shares were purchased by agents acting on Edison International's behalf for delivery to plan participants to fulfill requirements in connection with Edison International's: (i) 401(k) Savings Plan; (ii) Dividend Reinvestment and Direct Stock Purchase Plan; and (iii) long-term incentive compensation plans. The shares were purchased in open-market transactions pursuant to plan terms or participant elections. The shares were never registered in Edison International's name and none of the shares purchased were retired as a result of the transactions. |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||
Edison International | $ | 100 | $ | 105 | $ | 153 | $ | 142 | $ | 178 | $ | 161 | ||||||||||||
S & P 500 Index | 100 | 132 | 150 | 153 | 171 | 208 | ||||||||||||||||||
Philadelphia Utility Index | 100 | 111 | 143 | 134 | 157 | 178 |
Report of Independent Registered Public Accounting Firm - Edison International |
Schedule I – Condensed Financial Information of Edison International Parent |
Schedule II – Valuation and Qualifying Accounts of Edison International |
Report of Independent Registered Public Accounting Firm - SCE |
Exhibit Number | Description | |
Edison International | ||
3.1 | ||
3.2 | ||
Southern California Edison Company | ||
3.3 | ||
3.4 | ||
Edison International | ||
4.1 | ||
Southern California Edison Company | ||
4.2 | ||
4.3 | ||
Edison International and Southern California Edison Company | ||
10.1** | ||
10.2** | ||
10.3** | ||
10.3.1** | ||
10.3.2** | ||
10.4** | ||
10.5** | ||
10.6** | ||
10.6.1** | ||
10.7** | ||
10.7.1** | ||
10.8** | ||
10.9** | ||
Exhibit Number | Description | |
10.10** | ||
10.10.1** | ||
10.10.2** | ||
10.10.3** | ||
10.10.4** | ||
10.10.5** | ||
10.10.6** | ||
10.10.7** | ||
10.10.8** | ||
10.10.9** | ||
10.10.10** | ||
10.11** | ||
10.12** | ||
10.12.1** | ||
10.13** | ||
10.14** | ||
10.15** | ||
10.16 | ||
10.16.1 | ||
10.16.2 | ||
10.16.3 | ||
Exhibit Number | Description | |
10.16.4 | ||
10.16.5 | ||
10.17** | ||
10.18** | ||
10.19** | ||
10.19.1** | ||
10.2 | ||
10.21 | ||
10.22 | ||
10.23 | ||
10.24 | ||
21 | ||
23.1 | ||
23.2 | ||
24.1 | ||
24.2 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.1 | Financial statements from the annual report on Form 10-K of Edison International for the year ended December 31, 2017, filed on February 22, 2018, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; (v) Consolidated Statements of Changes in Equity and (vi) the Notes to Consolidated Financial Statements | |
Exhibit Number | Description | |
101.2 | Financial statements from the annual report on Form 10-K of Southern California Edison Company for the year ended December 31, 2017, filed on February 22, 2018, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; (v) Consolidated Statements of Changes in Equity and (vi) the Notes to Consolidated Financial Statements |
* | Incorporated by reference pursuant to Rule 12b-32. |
** | Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3). |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Assets: | |||||||
Cash and cash equivalents | $ | 524 | $ | 6 | |||
Other current assets | 340 | 261 | |||||
Total current assets | 864 | 267 | |||||
Investments in subsidiaries | 13,659 | 13,459 | |||||
Deferred income taxes | 500 | 646 | |||||
Other long-term assets | 91 | 108 | |||||
Total assets | $ | 15,114 | $ | 14,480 | |||
Liabilities and equity: | |||||||
Short-term debt | $ | 1,139 | $ | 539 | |||
Current portion of long-term debt | — | 400 | |||||
Other current liabilities | 467 | 484 | |||||
Total current liabilities | 1,606 | 1,423 | |||||
Long-term debt | 1,193 | 397 | |||||
Other long-term liabilities | 644 | 664 | |||||
Total equity | 11,671 | 11,996 | |||||
Total liabilities and equity | $ | 15,114 | $ | 14,480 |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Interest income from affiliates | $ | — | $ | 6 | $ | 3 | |||||
Operating expenses and interest expense | 92 | 86 | 78 | ||||||||
Loss before equity in earnings of subsidiaries | (92 | ) | (80 | ) | (75 | ) | |||||
Equity in earnings of subsidiaries | 739 | 1,337 | 1,025 | ||||||||
Income before income taxes | 647 | 1,257 | 950 | ||||||||
Income tax expense (benefit) | 82 | (42 | ) | (35 | ) | ||||||
Income from continuing operations | 565 | 1,299 | 985 | ||||||||
Income from discontinued operations, net of tax | — | 12 | 35 | ||||||||
Net income | $ | 565 | $ | 1,311 | $ | 1,020 |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 565 | $ | 1,311 | $ | 1,020 | |||||
Other comprehensive income, net of tax | 10 | 3 | 2 | ||||||||
Comprehensive income | $ | 575 | $ | 1,314 | $ | 1,022 |
(in millions) | 2017 | 2016 | 2015 | ||||||||
Net cash provided by operating activities | $ | 462 | $ | 493 | $ | 641 | |||||
Cash flows from financing activities: | |||||||||||
Long-term debt issued | 798 | 400 | — | ||||||||
Long-term debt issuance costs | (5 | ) | (3 | ) | — | ||||||
Long-term debt matured | (400 | ) | — | — | |||||||
Payable due to affiliates | 8 | 34 | 54 | ||||||||
Short-term debt financing, net | 600 | (108 | ) | 26 | |||||||
Payments for stock-based compensation | (260 | ) | (95 | ) | (114 | ) | |||||
Receipts for stock-based compensation | 144 | 51 | 72 | ||||||||
Dividends paid | (707 | ) | (626 | ) | (544 | ) | |||||
Net cash provided by (used in) financing activities | 178 | (347 | ) | (506 | ) | ||||||
Capital contributions to affiliate | (122 | ) | (147 | ) | (30 | ) | |||||
Loans to affiliate | — | — | (106 | ) | |||||||
Net cash used in investing activities: | (122 | ) | (147 | ) | (136 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 518 | (1 | ) | (1 | ) | ||||||
Cash and cash equivalents, beginning of year | 6 | 7 | 8 | ||||||||
Cash and cash equivalents, end of year | $ | 524 | $ | 6 | $ | 7 |
(in millions) | |||
Commitment | $ | 1,250 | |
Outstanding borrowings | (1,139 | ) | |
Amount available | $ | 111 |
Additions | |||||||||||||||||||
(in millions) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period | ||||||||||||||
For the Year ended December 31, 2017 | |||||||||||||||||||
Allowance for uncollectible accounts | |||||||||||||||||||
Customers | $ | 41.2 | $ | 12.9 | $ | — | $ | 17.5 | $ | 36.6 | |||||||||
All others | 20.6 | 13.5 | — | 16.8 | 17.3 | ||||||||||||||
Total allowance for uncollectible amounts | $ | 61.8 | $ | 26.4 | $ | — | $ | 34.3 | a | $ | 53.9 | ||||||||
Tax valuation allowance | $ | 24.0 | $ | — | $ | 4.0 | c | $ | — | $ | 28.0 | ||||||||
For the Year ended December 31, 2016 | |||||||||||||||||||
Allowance for uncollectible accounts | |||||||||||||||||||
Customers | $ | 46.2 | $ | 17.7 | $ | — | $ | 22.7 | $ | 41.2 | |||||||||
All others | 15.5 | 15.9 | — | 10.8 | 20.6 | ||||||||||||||
Total allowance for uncollectible amounts | $ | 61.7 | $ | 33.6 | $ | — | $ | 33.5 | a | $ | 61.8 | ||||||||
Tax valuation allowance | $ | 32.0 | $ | — | $ | — | $ | 8.0 | b | $ | 24.0 | ||||||||
For the Year ended December 31, 2015 | |||||||||||||||||||
Allowance for uncollectible accounts | |||||||||||||||||||
Customers | $ | 48.9 | $ | 23.9 | $ | — | $ | 26.6 | $ | 46.2 | |||||||||
All others | 23.3 | 18.0 | — | 25.8 | 15.5 | ||||||||||||||
Total allowance for uncollectible amounts | $ | 72.2 | $ | 41.9 | $ | — | $ | 52.4 | a | $ | 61.7 | ||||||||
Tax valuation allowance | $ | 29.0 | $ | 3.0 | $ | — | $ | — | $ | 32.0 |
a | Accounts written off, net. |
b | In 2016, Edison International determined that $8 million of the assets subject to a valuation allowance had no expectation of recovery and were written off. |
c | As a result of Tax Reform, Edison International recorded an additional valuation allowance of $4 million for non-California state net operating loss carryforwards estimated to expire unused. |
Additions | |||||||||||||||||||
(in millions) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period | ||||||||||||||
For the Year ended December 31, 2017 | |||||||||||||||||||
For the Year ended | |||||||||||||||||||
Customers | $ | 40.5 | $ | 12.9 | $ | — | $ | 17.4 | $ | 36.0 | |||||||||
All others | 20.6 | 13.5 | — | 16.8 | 17.3 | ||||||||||||||
Total allowance for uncollectible accounts | $ | 61.1 | $ | 26.4 | $ | — | $ | 34.2 | a | $ | 53.3 | ||||||||
For the Year ended December 31, 2016 | |||||||||||||||||||
Allowance for uncollectible accounts | |||||||||||||||||||
Customers | $ | 46.2 | $ | 17.0 | $ | — | $ | 22.7 | $ | 40.5 | |||||||||
All others | 15.5 | 15.9 | — | 10.8 | 20.6 | ||||||||||||||
Total allowance for uncollectible accounts | $ | 61.7 | $ | 32.9 | $ | — | $ | 33.5 | a | $ | 61.1 | ||||||||
For the Year ended December 31, 2015 | |||||||||||||||||||
Allowance for uncollectible accounts | |||||||||||||||||||
Customers | $ | 48.9 | $ | 23.9 | $ | — | $ | 26.6 | $ | 46.2 | |||||||||
All others | 18.7 | 18.0 | — | 21.2 | 15.5 | ||||||||||||||
Total allowance for uncollectible accounts | $ | 67.6 | $ | 41.9 | $ | — | $ | 47.8 | a | $ | 61.7 |
a | Accounts written off, net. |
EDISON INTERNATIONAL | SOUTHERN CALIFORNIA EDISON COMPANY | |||
By: | /s/ Aaron D. Moss | By: | /s/ Aaron D. Moss | |
Aaron D. Moss Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer) | Aaron D. Moss Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer) | |||
Date: | February 22, 2018 | Date: | February 22, 2018 |
Signature | Title | |
A. Principal Executive Officers | ||
Pedro J. Pizarro* | President, Chief Executive Officer and Director (Edison International) | |
Kevin Payne* | Chief Executive Officer and SCE Director (Southern California Edison Company) | |
B. Principal Financial Officers | ||
Maria Rigatti* | Executive Vice President and Chief Financial Officer (Edison International) | |
William M. Petmecky III* | Senior Vice President and Chief Financial Officer (Southern California Edison Company) | |
C. Principal Accounting Officers | ||
Aaron D. Moss | Vice President and Controller (Edison International) | |
Aaron D. Moss | Vice President and Controller (Southern California Edison Company) | |
D. Directors (Edison International and Southern California Edison Company, unless otherwise noted) | ||
Michael C. Camuñez* | Director | |
Vanessa C.L. Chang* | Director | |
Louis Hernandez, Jr.* | Director | |
James T. Morris* | Director | |
Pedro J. Pizarro* | Director | |
Kevin Payne (SCE only)* | Director | |
Timothy T. O’Toole* | Director | |
Linda G. Stuntz* | Director | |
William P. Sullivan* | Chair of the Edison International Board and Director | |
Ellen O. Tauscher* | Director | |
Peter J. Taylor* | Director | |
Brett White* | Director |
*By: | /s/ Aaron D. Moss | *By: | /s/ Aaron D. Moss |
Aaron D. Moss Vice President and Controller (Attorney-in-fact for EIX Directors and Officers) | Aaron D. Moss Vice President and Controller (Attorney-in-fact for SCE Directors and Officers) | ||
Date: | February 22, 2018 | Date: | February 22, 2018 |
§310(a)(1) .......................................................................... | 609 |
(a)(2) .................................................................................. | 609 |
(a)(3) .................................................................................. | Not Applicable |
(a)(4) .................................................................................. | Not Applicable |
(a)(5) .................................................................................. | 609 |
(b)........................................................................................ | 608 |
............................................................................................ | 610 |
(c)........................................................................................ | Not Applicable |
§311 ................................................................................... | 613 |
§312(a)................................................................................ | 701 |
............................................................................................ | 702 |
(b)........................................................................................ | 702 |
(c)........................................................................................ | 702 |
§313(a)................................................................................ | 703 |
(b)........................................................................................ | 703 |
(c)........................................................................................ | 703 |
(d)........................................................................................ | 703 |
§314(a)(1)(2)(3) .................................................................. | 704 |
(a)(4) .................................................................................. | 1008 |
(b)........................................................................................ | Not Applicable |
(c)(1) ................................................................................... | 102 |
(c)(2) ................................................................................... | 102 |
(c)(3) ................................................................................... | Not Applicable |
(d)........................................................................................ | Not Applicable |
(e)........................................................................................ | 102 |
§315(a)................................................................................ | 601 |
(b)........................................................................................ | 602 |
(c)........................................................................................ | 601 |
(d)........................................................................................ | 601 |
(e)........................................................................................ | 514 |
§316(a)............................................................................... | 101 |
(a)(1)(A)............................................................................... | 502 |
............................................................................................ | 512 |
(a)(1)(B).............................................................................. | 513 |
(a)(2) ......................................................................... | Not Applicable |
(b)............................................................................... | 508 |
(c)............................................................................... | 104 |
§317(a)(1) ................................................................. | 503 |
(a)(2) ......................................................................... | 504 |
(b)............................................................................... | 1003 |
§318(a)....................................................................... | 107 |
TABLE OF CONTENTS | ||
PAGE | ||
PARTIES | 1 | |
RECITALS | 1 | |
ARTICLE ONE | ||
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION | ||
SECTION 101 | Definitions: | |
Act | 2 | |
Article | 2 | |
Affiliate; control | 2 | |
Authenticating Agent | 2 | |
Authorized Newspaper | 2 | |
Bearer Security | 2 | |
Board of Directors | 2 | |
Board Resolution | 2 | |
Business Day | 2 | |
Commission | 3 | |
Company | 3 | |
Company Request; Company Order | 3 | |
Components | 3 | |
Conversion Date | 3 | |
Corporate Trust Office | 3 | |
Corporation | 3 | |
Coupon | 3 | |
Debt Securities | 4 | |
Defaulted Interest | 4 | |
Depositary | 4 | |
Designated Currency | 4 | |
Dollar | 4 | |
ECU | 4 | |
European Communities | 4 | |
Event of Default | 4 | |
Exchange Rate | 4 | |
Exchange Rate Officer's Certificate | 5 | |
Foreign Currency | 5 | |
Global Security | 5 | |
Government Obligations | 5 | |
Herein | 2 | |
ii |
Hereof | 2 | |
Hereunder | 2 | |
Holder | 6 | |
Indenture | 6 | |
Interest | 6 | |
Interest Payment Date | 6 | |
Maturity | 6 | |
Officers' Certificate | 6 | |
Opinion of Counsel | 6 | |
Original Issue Discount Security | 6 | |
Outstanding | 6 | |
Paying Agent | 8 | |
Person | 8 | |
Place of Payment | 8 | |
Predecessor Security | 8 | |
Redemption Date | 8 | |
Redemption Price | 8 | |
Registered Security | 8 | |
Regular Record Date | 8 | |
Repayment Date | 8 | |
Repayment Price | 8 | |
Responsible Officer | 8 | |
Section | 2 | |
Security Register; Security Registrar | 9 | |
Special Record Date | 9 | |
Stated Maturity | 9 | |
Subsidiary | 9 | |
Tranche | 9 | |
Trust Indenture Act or TIA | 9 | |
Trustee | 9 | |
United States | 10 | |
United States Alien | 10 | |
Yield to Maturity | 10 | |
SECTION 102 | Compliance Certificates and Opinions | 10 |
SECTION 103 | Form of Documents Delivered to Trustee | 11 |
SECTION 104 | Acts of Holders | 11 |
SECTION 105 | Notices, etc , to Trustee and Company | 14 |
SECTION 106 | Notice to Holders; Waiver | 15 |
SECTION 107 | Conflict with Trust Indenture Act | 16 |
SECTION 108 | Effect of Headings and Table of Contents | 16 |
SECTION 109 | Successors and Assigns | 16 |
SECTION 110 | Separability Clause | 16 |
SECTION 111 | Benefits of Indenture | 16 |
iii | ||
SECTION 112 | Governing Law | 17 |
SECTION 113 | Legal Holidays | 17 |
SECTION 114 | No Security Interest Created | 17 |
ARTICLE TWO | ||
DEBT SECURITY FORMS | ||
SECTION 201 | Forms Generally | 17 |
SECTION 202 | Forms of Debt Securities | 18 |
SECTION 203 | Form of Trustee's Certificate of Authentication | 18 |
ARTICLE THREE | ||
THE DEBT SECURITIES | ||
SECTION 301 | Amount Unlimited; Issuable in Series | 19 |
SECTION 302 | Denominations | 22 |
SECTION 303 | Execution, Authentication, Delivery and Dating | 22 |
SECTION 304 | Temporary Debt Securities | 25 |
SECTION 305 | Registration, Registration of Transfer and Exchange | 26 |
SECTION 306 | Mutilated, Destroyed, Lost and Stolen Debt Securities | 30 |
SECTION 307 | Payment of Interest; Interest Rights Preserved | 31 |
SECTION 308 | Persons Deemed Owners | 33 |
SECTION 309 | Cancellation | 33 |
SECTION 310 | Computation of Interest | 34 |
SECTION 311 | Payment in Currencies | 34 |
SECTION 312 | Certification by a Person Entitled to Delivery of a Bearer Security | 37 |
SECTION 313 | Judgments | 37 |
ARTICLE FOUR | ||
SATISFACTION AND DISCHARGE | ||
SECTION 401 | Satisfaction and Discharge of Indenture | 38 |
SECTION 402 | Application of Trust Money | 39 |
iv | ||
ARTICLE FIVE | ||
REMEDIES | ||
SECTION 501 | Events of Default | 40 |
SECTION 502 | Acceleration of Maturity; Rescission and Annulment | 42 |
SECTION 503 | Collection Of Indebtedness and Suits for Enforcement by Trustee | 43 |
SECTION 504 | Trustee May File Proofs of Claim | 44 |
SECTION 505 | Trustee May Enforce Claims Without Possession of Debt Securities or Coupons | 45 |
SECTION 506 | Application of Money Collected | 45 |
SECTION 507 | Limitation on Suits | 46 |
SECTION 508 | Unconditional Right of Holders to Receive Principal, Premium and Interest | 47 |
SECTION 509 | Restoration of Rights and Remedies | 47 |
SECTION 510 | Rights and Remedies Cumulative | 47 |
SECTION 511 | Delay or Omission Not Waiver | 47 |
SECTION 512 | Control by Holders of Debt Securities | 48 |
SECTION 513 | Waiver of Past Defaults | 48 |
SECTION 514 | Undertaking for Costs | 48 |
SECTION 515 | Waiver of Usury or Extension Laws | 49 |
ARTICLE SIX | ||
THE TRUSTEE | ||
SECTION 601 | Certain Duties and Responsibilities | 49 |
SECTION 602 | Notice of Defaults | 51 |
SECTION 603 | Certain Rights of Trustee | 51 |
SECTION 604 | Not Responsible for Recitals or Issuance of Debt Securities | 52 |
SECTION 605 | May Hold Debt Securities or Coupons | 52 |
SECTION 606 | Money Held in Trust | 52 |
SECTION 607 | Compensation and Reimbursement | 53 |
SECTION 608 | Disqualification; Conflicting Interests | 53 |
SECTION 609 | Corporate Trustee Required; Eligibility | 53 |
SECTION 610 | Resignation and Removal Appointment of Successor | 54 |
SECTION 611 | Acceptance of Appointment by Successor | 56 |
SECTION 612 | Merger, Conversion, Consolidation or Succession to Business | 57 |
SECTION 613 | Preferential Collection of Claims Against Company | 57 |
SECTION 614 | Appointment of Authenticating Agent | 57 |
v | ||
ARTICLE SEVEN | ||
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY | ||
SECTION 701 | Company to Furnish Trustee Names and Addresses of Holders | 58 |
SECTION 702 | Preservation of Information; Communication to Holders | 59 |
SECTION 703 | Reports by Trustee | 60 |
SECTION 704 | Reports by Company | 61 |
ARTICLE EIGHT | ||
CONSOLIDATION, MERGER, CONVEYANCE, SALE OR LEASE |
SECTION 801 | Company May Consolidate, etc , Only on Certain Terms | 61 |
SECTION 802 | Successor Substituted | 62 |
ARTICLE NINE | ||
SUPPLEMENTAL INDENTURES | ||
SECTION 901 | Supplemental Indentures Without Consent of Holders | 63 |
SECTION 902 | Supplemental Indentures with Consent of Holders | 64 |
SECTION 903 | Execution of Supplemental Indentures | 65 |
SECTION 904 | Effect of Supplemental Indentures | 66 |
SECTION 905 | Conformity with Trust Indenture Act | 66 |
SECTION 906 | Reference in Debt Securities to Supplemental Indentures | 66 |
ARTICLE TEN | ||
COVENANTS | ||
SECTION 1001 | Payment of Principal, Premium and Interest | 66 |
SECTION 1002 | Maintenance of Office or Agency | 67 |
SECTION 1003 | Money for Debt Securities Payments to Be Held in Trust | 68 |
SECTION 1004 | Existence | 69 |
SECTION 1005 | Appointments to Fill Vacancies in Trustee's Office | 69 |
SECTION 1006 | Payment of Additional Amounts | 70 |
SECTION 1007 | Purchase of Debt Securities by Company or Subsidiary | 70 |
SECTION 1008 | Officers' Certificate as to Default | 71 |
SECTION 1009 | Waiver of Certain Covenants | 71 |
vi | ||
ARTICLE ELEVEN |
REDEMPTION OF DEBT SECURITIES | ||
SECTION 1101 | Applicability of Article | 70 |
SECTION 1102 | Election to Redeem; Notice to Trustee | 72 |
SECTION 1103 | Selection by Trustee of Debt Securities to Be Redeemed | 72 |
SECTION 1104 | Notice of Redemption | 72 |
SECTION 1105 | Deposit of Redemption Price | 73 |
SECTION 1106 | Debt Securities Payable on Redemption Date | 73 |
SECTION 1107 | Debt Securities Redeemed in Part | 74 |
ARTICLE TWELVE | ||
SINKING FUNDS | ||
SECTION 1201 | Applicability of Article | 75 |
SECTION 1202 | Satisfaction of Sinking Fund Payments with Debt Securities | 75 |
SECTION 1203 | Redemption of Debt Securities for Sinking Fund | 76 |
ARTICLE THIRTEEN | ||
DEFEASANCE | ||
SECTION 1301 | Discharge and Defeasance of Debt Securities of any Series | 76 |
SECTION 1302 | Repayment to Company | 79 |
SECTION 1303 | Indemnity for Government Obligations | 79 |
SECTION 1304 | Application of Trust Money | 79 |
SECTION 1305 | Reinstatement | 80 |
ARTICLE FOURTEEN | ||
MEETINGS OF HOLDERS OF DEBT SECURITIES | ||
SECTION 1401 | Purposes for Which Meetings May Be Called | 80 |
SECTION 1402 | Call, Notice and Place of Meetings | 80 |
SECTION 1403 | Persons Entitled to Vote at Meetings | 81 |
SECTION 1404 | Quorum; Action | 81 |
SECTION 1405 | Determination of Voting Rights, Conduct and Adjournment of Meetings | 82 |
SECTION 1406 | Counting Votes and Recording Action of Meetings | 83 |
vii | ||
ARTICLE FIFTEEN | ||
REPAYMENT AT OPTION OF HOLDERS | ||
SECTION 1501 | Applicability of Article | 83 |
SECTION 1502 | Repayment of Debt Securities | 84 |
SECTION 1503 | Exercise of Option | 84 |
SECTION 1504 | When Securities Presented for Repayment Become Due and Payable | 85 |
SECTION 1505 | Debt Securities Repaid in Part | 85 |
TESTIMONIUM | 86 | |
SIGNATURES AND SEALS | 86 | |
ACKNOWLEDGMENTS | 87 | |
EXHIBIT A | A-1 | |
EXHIBIT B | B-1 |
(3) | a statement that, in the opinion of such individual, the individual has |
(d) | (i) If the Foreign Currency in which Debt Securities of a series are denominated ceases to be used both by the government of the country which issued such currency and for the settlement of transactions by public institutions of or within the international banking community, then with respect to each date for the payment of principal of (and premium, if any) and interest on such Debt Securities and any coupons appertaining thereto occurring after the final date on which the Foreign Currency was so used, all payments with respect to such Debt Securities and any coupons appertaining thereto shall be made in Dollars, provided that payment to a Holder of a Registered Security of such series shall be made in a different Foreign Currency if that Holder has elected or elects payment in such Foreign Currency as provided for by subsection (a) above. If payment is to be made in Dollars to the Holders of any such Debt Securities or coupons pursuant to the provisions of the preceding sentence, then the amount to be paid in Dollars on a payment date by the Company to the Trustee and by the Trustee or any Paying Agent to Holders shall be determined by the |
(3) | the Company has delivered to the Trustee an Officer's Certificate and |
(c) | default in the payment of any sinking fund instalment as and when the |
(d) | If at any time: |
(4) | the Trustee shall commence a voluntary case under the Federal |
(b) | A copy of each such report shall, at the time of such transmission to |
(2) | the Redemption Price, |
(6) | that the redemption is for a sinking fund, if such is the case, and |
(7) | the CUSIP number, if any. |
1 |
2 |
3 |
4 |
5 |
6 |
PREAMBLE | 1 |
2.1 | Right to Severance Benefits 5 |
2.2 | Right to Change in Control Severance Benefits 6 |
2.3 | Severance Benefit - Termination by Employer Without Cause (Other than a Qualifying Termination Event or Termination due to the Eligible Employee’s Disability) 6 |
2.3.1 | Cash Benefit 6 |
2.3.2 | Health Care Coverage Benefit 7 |
2.3.3 | [Reserved] 8 |
2.3.4 | [Reserved] 8 |
2.3.5 | Outplacement Benefit 8 |
2.3.6 | Educational Assistance Benefit 8 |
2.3.7 | [Reserved] 8 |
2.4 | Change in Control Severance Benefits 8 |
2.4.1 | Senior Officer Enhanced Benefit 8 |
2.4.2 | Certain Additional Enhanced Benefits 9 |
2.5 | Termination for Other Reasons 9 |
2.6 | Termination and Repayment of Benefits 10 |
2.7 | Notice of Termination 11 |
6.1 | Nonassignability 12 |
6.2 | No Right to Assets 12 |
6.3 | Payment of Obligations Absolute 13 |
6.4 | Other Benefit Plans 13 |
6.5 | Incapacity 14 |
6.6 | Six Month Delay 14 |
6.7 | Termination of Employment 14 |
6.8 | Re-Employment 14 |
7.1 | Claims Procedures 15 |
7.2 | Dispute Arbitration 15 |
8.1 | Successors to an Employer 16 |
8.2 | Sale, Spin-Off, or Liquidation of an Employer 17 |
9.1 | Administrator Action 17 |
9.2 | Powers and Duties of the Administrator 17 |
9.3 | Plan Interpretation 18 |
9.4 | Information 18 |
9.5 | Compensation, Expenses and Indemnity 18 |
10.1 | Release and Agreement 19 |
10.2 | Term of the Plan 19 |
10.3 | Employment Status 20 |
10.4 | Gender, Singular and Plural 20 |
10.5 | Validity 20 |
10.6 | Modification 21 |
10.7 | Notice 21 |
10.8 | Applicable Law 21 |
10.9 | WARN Act 21 |
10.10 | Statutes and Regulations 22 |
3.1 | Overview |
3.2 | Benefit Features |
3.3 | Benefit Computation |
3.4 | Executive Retirement Account Credits |
3.5 | Vesting |
3.6 | Adjustment for Final Bonus |
3.7 | Valuation Date Notional Account |
4.1 | Primary Payment Election |
4.2 | Contingent Payment Elections |
4.3 | Changes to Payment Elections |
4.4 | Small Benefit Exception |
4.5 | Six-Month Delay in Payment for Specified Employees |
4.6 | Conflict of Interest Exception, Etc. |
5.1 | Payment |
5.2 | Benefit Computation |
7.1 | Nonassignability |
7.2 | Unforeseeable Emergency |
7.3 | No Right to Assets |
7.4 | Protective Provisions |
7.5 | Constructive Receipt |
7.6 | Withholding |
7.7 | Incapacity |
8.1 | Plan Interpretation |
8.2 | Limited Liability |
9.1 | Authority to Amend or Terminate |
9.2 | Limitations |
10.1 | Claims Procedure for Claims Other Than Due to Disability |
10.2 | Claims Procedure for Claims Due to Disability |
10.3 | Dispute Arbitration |
11.1 | Participation in Other Plans |
11.2 | Relationship to Qualified Plan |
11.3 | Forfeiture |
11.4 | Successors |
11.5 | Trust |
11.6 | Employment Not Guaranteed |
11.7 | Gender, Singular and Plural |
11.8 | Captions |
11.9 | Validity |
11.10 | Waiver of Breach |
11.11 | Applicable Law |
11.12 | Notice |
11.13 | ERISA Plan |
11.14 | Statutes and Regulations |
Parent of Significant Subsidiary | Name of Significant Subsidiary | Jurisdiction of Formation of Subsidiary | Name under which Significant Subsidiary does business | |||
Edison International | Southern California Edison Company | CA | Southern California Edison Company; SCE | |||
Southern California Edison Company | None | — | — | |||
Kevin M. Payne | Chief Executive Officer and Director |
/s/ Michael C. Camuñez | Director | /s/ Linda G. Stuntz | Director |
Michael C. Camuñez | Director | Linda G. Stuntz | Director |
/s/ Vanessa C.L. Chang | Director | /s/ William P. Sullivan | Director |
Vanessa C.L. Chang | Director | William P. Sullivan | Director |
/s/ Louis Hernandez, Jr. | Director | /s/ Ellen O. Tauscher | Director |
Louis Hernandez, Jr. | Director | Ellen O. Tauscher | Director |
/s/ James T. Morris | Director | /s/ Peter J. Taylor | Director |
James T. Morris | Director | Peter J. Taylor | Director |
/s/ Timothy T. O’Toole | Director | /s/ Brett White | Director |
Timothy T. O’Toole | Director | Brett White | |
/s/ Pedro J. Pizarro | Director | ||
Pedro J. Pizarro |
Pedro J. Pizarro | President, Chief Executive Officer, and Director |
Maria Rigatti | Executive Vice President and Chief Financial Officer |
/s/ Michael C. Camuñez | Director | /s/ Linda G. Stuntz | Director |
Michael C. Camuñez | Linda G. Stuntz | ||
/s/ Vanessa C.L. Chang | Director | /s/ William P. Sullivan | Director |
Vanessa C.L. Chang | William P. Sullivan | ||
/s/ Louis Hernandez, Jr. | Director | /s/ Ellen O. Tauscher | Director |
Louis Hernandez, Jr. | Ellen O. Tauscher | ||
/s/ James T. Morris | Director | /s/ Peter J. Taylor | Director |
James T. Morris | Peter J. Taylor | ||
/s/ Timothy T. O’Toole | Director | /s/ Brett White | Director |
Timothy T. O’Toole | Brett White |
/s/ PEDRO J. PIZARRO |
PEDRO J. PIZARRO Chief Executive Officer |
/s/ MARIA RIGATTI |
MARIA RIGATTI Chief Financial Officer |
/s/ KEVIN M. PAYNE |
KEVIN M. PAYNE Chief Executive Officer |
/s/ WILLIAM M PETMECKY III |
WILLIAM M. PETMECKY III Chief Financial Officer |
1. | The Annual Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
2. | The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ PEDRO J. PIZARRO |
PEDRO J. PIZARRO Chief Executive Officer Edison International |
/s/ MARIA RIGATTI |
MARIA RIGATTI Chief Financial Officer Edison International |
1. | The Annual Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
2. | The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ KEVIN M. PAYNE |
KEVIN M. PAYNE Chief Executive Officer Southern California Edison Company |
/s/ WILLIAM M. PETMECKY III |
WILLIAM M. PETMECKY III Chief Financial Officer Southern California Edison Company |
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Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Discounts and issuance costs of long term debt | $ 2 | $ 7 | $ 17 |
Southern California Edison Company | |||
Discounts and issuance costs of long term debt | $ 10 | $ (17) |
Consolidated Statements of Changes in Equity - USD ($) $ in Millions |
Total |
Southern California Edison Company |
Common Stock |
Common Stock
Southern California Edison Company
|
Additional Paid-in Capital
Southern California Edison Company
|
Accumulated Other Comprehensive Loss |
Accumulated Other Comprehensive Loss
Southern California Edison Company
|
Retained Earnings |
Retained Earnings
Southern California Edison Company
|
Equity Attributable to Common Shareholders |
Other |
Preferred and Preference Stock |
Preferred and Preference Stock
Southern California Edison Company
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance, at the beginning of the period at Dec. 31, 2014 | $ 12,982 | $ 13,282 | $ 2,445 | $ 2,168 | $ 618 | $ (58) | $ (28) | $ 8,573 | $ 8,454 | $ 10,960 | $ 0 | $ 2,022 | $ 2,070 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 1,133 | 1,111 | 1,020 | 1,111 | 1,020 | 113 | |||||||
Other comprehensive income (loss) | 2 | 6 | 2 | 6 | 2 | ||||||||
Dividends declared on common stock | (564) | (611) | (564) | (611) | (564) | ||||||||
Dividends declared on preferred and preference stock | (113) | (113) | |||||||||||
Dividends and distributions to noncontrolling interests and other | (113) | (113) | |||||||||||
Stock-based compensation and other | (70) | (10) | 15 | 23 | (85) | (33) | (70) | ||||||
Noncash stock-based compensation and other | 24 | 13 | 24 | 13 | 0 | 24 | |||||||
Issuance of preference stock | 319 | 319 | (6) | 319 | 325 | ||||||||
Redemption of preference stock | (325) | (325) | 4 | (4) | (4) | (4) | (321) | (325) | |||||
Balance, at the end of the period at Dec. 31, 2015 | 13,388 | 13,672 | 2,484 | 2,168 | 652 | (56) | (22) | 8,940 | 8,804 | 11,368 | 0 | 2,020 | 2,070 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 1,434 | 1,499 | 1,311 | 1,499 | 1,311 | 123 | |||||||
Other comprehensive income (loss) | 3 | 2 | 3 | 2 | 3 | ||||||||
Dividends declared on common stock | (646) | (701) | (646) | (701) | (646) | ||||||||
Dividends declared on preferred and preference stock | (123) | (123) | |||||||||||
Dividends and distributions to noncontrolling interests and other | (123) | (123) | |||||||||||
Stock-based compensation and other | (60) | (44) | (1) | (59) | (44) | (60) | |||||||
Noncash stock-based compensation and other | 22 | 9 | 22 | 9 | 22 | ||||||||
Issuance of preference stock | 294 | 294 | (6) | 294 | 300 | ||||||||
Redemption of preference stock | (125) | (125) | 2 | (2) | (2) | (2) | (123) | (125) | |||||
Balance, at the end of the period at Dec. 31, 2016 | 14,187 | 14,483 | 2,505 | 2,168 | 657 | (53) | (20) | 9,544 | 9,433 | 11,996 | 0 | 2,191 | 2,245 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 671 | 1,136 | 565 | 1,136 | 565 | (18) | 124 | ||||||
Other comprehensive income (loss) | 10 | 1 | 10 | 1 | 10 | ||||||||
Contribution from tax equity investor | 20 | 20 | |||||||||||
Dividends declared on common stock | (727) | (785) | (727) | (785) | (727) | ||||||||
Dividends declared on preferred and preference stock | (124) | (124) | |||||||||||
Dividends and distributions to noncontrolling interests and other | (124) | (124) | |||||||||||
Stock-based compensation and other | (179) | (38) | (179) | (38) | (179) | ||||||||
Noncash stock-based compensation and other | 21 | 12 | 21 | 12 | 21 | ||||||||
Issuance of preference stock | 462 | 462 | (13) | 462 | 475 | ||||||||
Redemption of preference stock | (475) | (475) | 15 | (15) | (15) | (15) | (460) | (475) | |||||
Balance, at the end of the period at Dec. 31, 2017 | $ 13,866 | $ 14,672 | $ 2,526 | $ 2,168 | $ 671 | $ (43) | $ (19) | $ 9,188 | $ 9,607 | $ 11,671 | $ 2 | $ 2,193 | $ 2,245 |
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.6050 | $ 0.5425 | $ 0.5425 | $ 0.5425 | $ 0.5425 | $ 0.4800 | $ 0.4800 | $ 0.4800 | $ 2.2325 | $ 1.9825 | $ 1.7325 |
Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for subsidiaries, including Edison Energy, LLC ("Edison Energy") and SoCore Energy LLC ("SoCore Energy"), engaged in pursuing competitive business opportunities across energy services, managed portfolio solutions, and distributed solar solutions for commercial and industrial customers. Such business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its competitive subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. In addition, SCE recognizes revenue and regulatory assets from alternative revenue programs, which enables the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not qualify for recognition of "traditional" regulatory assets and liabilities. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 10 for composition of regulatory assets and liabilities. The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Cash Equivalents Cash equivalents includes investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows:
Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:
Restricted Cash Edison International's restricted cash at December 31, 2017 and 2016 were $41 million and $18 million, respectively. Restricted cash primarily relates to funds held by SoCore Energy and its consolidated affiliates pursuant to project financing or purchase agreements; most of which are expected to lapse by the end of 2018. Allowance for Uncollectible Accounts Allowances for uncollectible accounts are provided based upon a variety of factors, including historical amounts written-off, current economic conditions and assessment of customer collectability. Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at average cost. Emission Allowances SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted-average cost or market. SCE had GHG allowances of $127 million and $113 million at December 31, 2017 and 2016, respectively. GHG emission obligations were $129 million and $95 million at December 31, 2017 and 2016, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets. Property, Plant and Equipment SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives (authorized by the CPUC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows:
Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. Depreciation expense was $1.61 billion, $1.52 billion and $1.42 billion for 2017, 2016 and 2015, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.8%, 3.8% and 3.9% for 2017, 2016 and 2015, respectively. The original costs of retired property is charged to accumulated depreciation. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $87 million, $74 million and $87 million in 2017, 2016 and 2015, respectively, and is reflected in "Interest and other income." AFUDC debt was $28 million, $23 million and $31 million in 2017, 2016 and 2015, respectively and is reflected as a reduction of "Interest expense." Major Maintenance Major maintenance costs for SCE's power plant facilities and equipment are expensed as incurred. Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income based valuation techniques, as appropriate. Goodwill Edison International assesses goodwill through annual goodwill impairment tests, at the reporting unit level as of October 1st of each year. Edison International will update these tests between annual tests if events occur or circumstances change such that it is more likely than not that the fair value of a reporting unit is below its carrying value. During 2017, Edison International completed a strategic review of Edison Energy Group's competitive businesses. Edison International has concluded that it will evaluate strategic options, including potential sale opportunities, for SoCore Energy. In connection with the strategic review of the Edison Energy Group's competitive businesses, Edison International evaluated the recoverability of goodwill and recorded an impairment of SoCore Energy's goodwill totaling $16.5 million ($10 million after-tax) in the second quarter of 2017. The fair value of the Edison Energy and SoCore Energy reporting units exceeded their carrying values at the date of the impairment analysis. As of December 31, 2017 and 2016, goodwill is comprised of $78 million at each year end at the Edison Energy reporting unit and $5 million and $22 million, respectively, at the SoCore Energy reporting unit. Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. SCE adjusts its nuclear decommissioning obligation into a nuclear-related ARO regulatory asset and also records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Notes 9 and 10. SCE has not recorded an asset retirement obligation for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability, including San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde:
The recorded liability to decommission SCE's nuclear power facilities (included in the table above) is $2.6 billion as of December 31, 2017. In 2016, SCE updated the recorded liability for Palo Verde and San Onofre Unit 1 based on the 2013 decommissioning study performed for Palo Verde and the 2014 study for San Onofre Unit 1. In 2017, SCE further revised the recorded liability for Palo Verde and San Onofre Units 2 and 3 based on updated cost estimates, including changes related to onboarding the general contractor. The final site specific study for San Onofre Units 2 and 3 is expected to be filed in March 2018 as part of the 2018 NDCTP which may result in additional changes to the ARO estimate. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as increases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets, and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $7.2 billion through 2079 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 1.6% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 2.4% to 3.8%. Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates. See Note 9 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceeding. SCE's nuclear decommissioning trust investments primarily consist of fixed income and equity investments that are classified as available-for-sale. Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on earnings. Unrealized gains and losses on decommissioning trust funds increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each security for other-than-temporary impairment on the last day of each month. If the fair value on the last day of two consecutive months is less than the cost for that security, SCE recognizes a loss for the other-than-temporary impairment. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. SCE had unamortized losses on reacquired debt of $168 million and $184 million at December 31, 2017 and 2016, respectively, reflected as long-term "Regulatory assets" in the consolidated balance sheets. Edison International and SCE had unamortized debt issuance costs related to issuances under the credit facilities of $15 million and $7 million at December 31, 2017, respectively, and $10 million and $7 million at December 31, 2016, respectively, reflected in "Other long-term assets" on the consolidated balance sheets. In addition, Edison International and SCE had debt issuance costs related to issuances of long-term debt of $88 million and $77 million at December 31, 2017, respectively, and $81 million and $71 million at December 31, 2016, respectively, reflected as a reduction of "Long-term debt" on the consolidated balance sheets. Amortization of deferred financing costs charged to interest expense is as follows:
Revenue Recognition Revenue is recognized when electricity is delivered and includes amounts for services rendered but unbilled at the end of each reporting period as reflected in "Operating revenue" on the consolidated statements of income. Rates charged to customers are based on CPUC- and FERC-authorized revenue requirements. CPUC rates are implemented subsequent to final approval. CPUC rates decouple authorized revenue from the volume of electricity sales. Differences between amounts collected and authorized levels are either collected from or refunded to customers, and therefore, SCE earns revenue equal to amounts authorized. FERC rates also decouple revenue from volume of electricity sales. In November 2013, the FERC approved a formula rate effective January 1, 2012 to determine SCE's FERC transmission revenue requirement, including its construction work in progress ("CWIP") revenue requirement. Under operation of the formula rate, transmission revenue will be updated to actual cost of service annually. Differences between amounts collected and determined under the formula rate are either collected from or refunded to customers, and therefore, SCE earns revenue based on estimates of recorded rate base costs under the FERC formula rate. SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis and reflected in electric utility revenue and other operation and maintenance expense. SCE's franchise fees billed to customers and recorded as revenue were $133 million, $111 million and $138 million in 2017, 2016 and 2015, respectively. When SCE acts as an agent, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue. Power Purchase Agreements SCE enters into power purchase agreements in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE should consolidate the VIE. None of SCE's power purchase agreements resulted in consolidation of a VIE at December 31, 2017 and 2016. See Note 3 for further discussion of power purchase agreements that are considered variable interests. A power purchase agreement may also contain a lease for accounting purposes. This generally occurs when a power purchase agreement designates a specific power plant in which the buyer purchases substantially all of the output and does not otherwise meet a fixed price per unit of output exception. SCE has a number of power purchase agreements that contain leases. SCE's recognition of lease expense conforms to the ratemaking treatment for SCE's recovery of the cost of electricity and is recorded in "Purchased power and fuel" on the consolidated statements of income. See Note 11 for further discussion of SCE's power purchase agreements, including agreements that are classified as operating and capital leases for accounting purposes. A power purchase agreement that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets. These power purchase agreements may be eligible for an election to designate as a normal purchase and sale, which is accounted for on an accrual basis as an executory contract. See Note 6 for further information on derivative instruments. Power purchase agreements that do not meet the above classifications are accounted for on an accrual basis. Derivative Instruments SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. Leases SCE enters into power purchase agreements that may contain leases, as discussed under "Power Purchase Agreements" above. SCE also enters into a number of agreements to lease property and equipment in the normal course of business. Minimum lease payments under SCE's operating leases for property and equipment are reflected in "Operation and maintenance" on the consolidated statements of income. Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. Generally, Edison International does not issue new common stock for settlement of equity awards, which are recorded as part of retained earnings. Rather, a third party is used to purchase shares from the market and deliver such shares for the settlement of option exercises, performance shares, deferred stock units and restricted stock units. The performance shares awarded that are earned are settled solely in cash. Deferred stock units and restricted stock units are settled in common stock; however, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period and is based on the number of awards that are expected to vest. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. For awards granted to retirement-eligible participants, stock compensation expenses are recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expenses are recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Under new accounting guidance adopted in 2016, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. Effective January 1, 2016, the excess tax benefits are classified as an operating activity along with other income tax cash flows on the statement of cash flows. SCE Dividend Restrictions The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. Under CPUC regulations, SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above 48% on a 13-month average basis, or otherwise satisfies the CPUC requirements. If the Revised San Onofre Settlement Agreement is approved by the CPUC, SCE may exclude the $448 million after-tax charge resulting from the implementation of the Revised San Onofre Settlement Agreement from its ratemaking capital structure. See Note 11 for discussion of the Revised San Onofre Settlement Agreement. At December 31, 2017, without excluding the $448 million after-tax charge, SCE's 13-month average common equity component of total capitalization was 50.0% and the maximum additional dividend that SCE could pay to Edison International under this limitation was approximately $511 million, resulting in a restriction on net assets of approximately $14.2 billion. If the Revised San Onofre Settlement Agreement had been approved by the CPUC at December 31, 2017, the common equity component of SCE's capital structure would have been 50.1% on a 13-month average basis. Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. Performance shares awarded prior to 2015 that are earned are settled half in common shares and half in cash, while the performance shares awarded on or after 2015 that are earned are settled solely in cash. For further information, see Note 8. EPS attributable to Edison International common shareholders was computed as follows:
In addition to the participating securities discussed above, Edison International also may award stock options which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 1,334,451, 167,795 and 2,046,045 shares of common stock for the years ended December 31, 2017, 2016 and 2015, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. In December 2017, the Tax Cuts and Jobs Act ("Tax Reform") was signed into law. This comprehensive reform of tax law reduces the federal corporate income tax rate from 35% to 21% which resulted in the re-measurement of deferred taxes using the new tax rate. See Note 7 for further information. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Investment tax credits are deferred and amortized to income tax expense over the lives of the properties or the term of the power purchase agreement of the respective project. Interest income, interest expense and penalties associated with income taxes are reflected in "Income tax expense" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. Noncontrolling Interest Noncontrolling interest represents the portion of equity ownership in an entity that is not attributable to the equity holders of Edison International. Noncontrolling interests held by third parties that have rights to put their ownership back to a subsidiary of Edison International are classified outside shareholders' equity as redeemable noncontrolling interest. Noncontrolling interest is initially recorded at fair value and is subsequently adjusted for income allocated to the noncontrolling interest and any distributions paid to the noncontrolling interest. Certain solar projects for commercial customers are organized as limited liability companies and have noncontrolling equity investors (referred to as tax equity investors) which are entitled to allocations of earnings, tax attributes and cash flows in accordance with contractual agreements that vary over time. These entities are consolidated for financial reporting purposes but are not subject to income taxes as the taxable income (loss) and investment tax credits are allocated to the respective owners. The total consolidated assets and liabilities of these entities were $299 million and $41 million, respectively, at December 31, 2017 and $74 million and $23 million, respectively, at December 31, 2016. Income (loss) of these entities is allocated to the noncontrolling interest based on the hypothetical liquidation at book value ("HLBV") accounting method. The HLBV accounting method is an approach that calculates the change in the claims of each member on the net assets of the investment at the beginning and end of each period. Each member's claim is equal to the amount each party would receive or pay if the net assets of the investment were to liquidate at book value. Under the contract provisions, the tax equity investors' claim on net assets decreases rapidly in early years due to allocation of tax benefits resulting in additional non-operating income allocated to Edison International ($21 million, $9 million and $16 million in 2017, 2016 and 2015, respectively). New Accounting Guidance Accounting Guidance Not Yet Adopted In May 2014, the FASB issued an accounting standards update on revenue recognition and further amended the standard in 2016 and 2017. Under the new standard, revenue from contracts with customers is recognized when (or as) a good or service is transferred to the customer and the customer obtains control of the good or service. For the year ended December 31, 2017, approximately 95% of total operating revenue arises from SCE's tariff offerings that provide electricity to customers. For such arrangements, revenue from contracts with customers will be equivalent to the electricity supplied and billed in that period (including estimated billings). As such, there will not be a change in the timing or pattern of revenue recognition for such sales. Edison International and SCE have implemented process changes necessary to comply with this standard's enhanced disclosure requirements. SCE will disaggregate customer contract revenue between revenue from earnings activities and revenue from cost-recovery activities. Some revenue arrangements, such as alternative revenue programs which include balancing account overcollections and undercollections, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenue recognized from contracts with customers in the disclosures. Edison International and SCE will adopt the standard by using the modified retrospective method. Edison International will recognize an immaterial cumulative effect adjustment to the opening balance of retained earnings on January 1, 2018. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The amendments require equity investments (excluding those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value through net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial assets. Edison International and SCE will adopt this guidance effective January 1, 2018. SCE's nuclear decommissioning trust investments contain equity investments that are classified as available-for-sale. Due to regulatory mechanisms, the change in fair value of these investments has no impact on net income and, therefore, the adoption of this standard will not have a material impact on Edison International's and SCE's consolidated financial statements. In February 2016, the FASB issued an accounting standards update related to lease accounting, effective January 1, 2019. Under the new standard, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. Lessees will need to recognize leases on the balance sheet as a right-of-use asset and a related lease liability, and classify the leases as either operating or finance. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustments, such as initial direct costs. Edison International operating leases will result in straight-line expense while finance leases will result in a higher initial expense pattern due to the interest component. SCE, as a regulated entity, is permitted to continue to recognize expense using the timing that conforms to the regulatory rate treatment. Lessees can elect to exclude from the balance sheet short-term contracts of one year or less. The standard requires retrospective application to previously issued financial statements for 2018 and 2017. Although permitted, Edison and SCE will not elect to adopt this standard prior to January 1, 2019. The standard will provide entities with an optional transition method to apply the new requirements in the period of adoption without retrospective application to previous periods. Edison International and SCE are evaluating whether to elect this optional transition method. The adoption of this standard will increase right-of-use assets and lease liabilities in Edison International's and SCE's consolidated balance sheets. Edison International and SCE are currently implementing a new lease accounting system and are evaluating the impact this standard will have on the consolidated balance sheets and lease disclosures. The FASB issued an accounting standards update related to the impairment of financial instruments, effective January 1, 2020. The new guidance provides an impairment model, known as the current expected credit loss model, which is based on expected credit losses rather than incurred losses. Edison International and SCE are currently evaluating the impact of this new guidance. The FASB issued two accounting standards updates related to the statement of cash flows. One standards update clarifies the presentation and classification of certain cash receipts and payments in the statement of cash flows and the other requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. These standards are effective January 1, 2018 and require retrospective application. Restricted cash as of December 31, 2017 was $41 million at Edison International and was less than $1 million at SCE. Currently, the changes in restricted cash balances are reflected as operating or investing activities dependent on the nature of the activities. In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment. This accounting standards update changes the procedural steps in applying the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to the goodwill impairment test beginning in 2020. In March 2017, the FASB issued an accounting standards update which amends the current requirements related to the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's financial position or results of operations, but will result in the separate presentation of service costs as an operating expense and non-service costs within other income and expense and limit the capitalization of benefit costs to the service cost component. For the year ended December 31, 2017, service costs totaled $169 million for Edison International and $164 million for SCE and the non-service component of net periodic benefit cost was income of $72 million for Edison International and $84 million for SCE. The new standards update is effective on January 1, 2018 and is required to be adopted retrospectively with respect to the income statement presentation requirement and prospectively for the capitalization requirement. |
Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following:
Capitalized Software Costs SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant, and equipment. SCE amortizes capitalized software costs ratably over the expected lives of the software, primarily ranging from 5 to 10 years and commencing upon operational use. Capitalized software costs, included in general plant and other above, were $1.1 billion and $1.4 billion at December 31, 2017 and 2016, respectively, and accumulated amortization was $0.6 billion and $0.8 billion, at December 31, 2017 and 2016, respectively. Amortization expense for capitalized software was $233 million, $249 million and $268 million in 2017, 2016 and 2015, respectively. At December 31, 2017, amortization expense is estimated to be $176 million, $127 million, $92 million, $62 million and $26 million for 2018 through 2022, respectively. Jointly Owned Utility Projects SCE owns undivided interests in several generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income. A portion of the investments in Palo Verde generating stations is included in regulatory assets on the consolidated balance sheets. For further information, see Note 10. The following is SCE's investment in each asset as of December 31, 2017:
In addition, SCE has ownership interests in jointly owned power poles with other companies. |
Variable Interest Entities |
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Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities A VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. A subsidiary of Edison International is the primary beneficiary of entities that own solar projects (for further information, see Note 1—Noncontrolling Interests). Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include site and equipment selection, construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements. Variable Interest in VIEs that are not Consolidated Power Purchase Agreements SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities ("QFs") that contain variable pricing provisions based on the price of natural gas. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants. As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to its involvement with VIEs result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its California Public Utilities Commission ("CPUC")-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 11. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 4,898 megawatts ("MW") and 4,353 MW at December 31, 2017 and 2016, respectively, and the amounts that SCE paid to these projects were $767 million and $788 million for the years ended December 31, 2017 and 2016, respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust I, Trust II, Trust III, Trust IV, Trust V and Trust VI were formed in 2012, 2013, 2014, 2015, 2016 and 2017, respectively, for the exclusive purpose of issuing the 5.625%, 5.10%, 5.75%, 5.375%, 5.45% and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust I, Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $475 million, $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series F, Series G, Series H, Series J, Series K and Series L Preference Stock issued by SCE in the principal amounts of $475 million, $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series F, Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series F, Series G, Series H, Series J, Series K or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (see Note 12 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. In July 2017, SCE Trust I redeemed $475 million of trust securities from the public and $10,000 of common stock from SCE. As a result in September 2017, SCE Trust I was terminated. The Trust II, Trust III, Trust IV, and Trust V balance sheets as of December 31, 2017 and 2016, consisted of investments of $400 million, $275 million, $325 million, and $300 million in the Series G, Series H, Series J, and Series K Preference Stock, respectively, $400 million, $275 million, $325 million, and $300 million of trust securities, respectively, and $10,000 each of common stock. The Trust VI balance sheet as of December 31, 2017 consisted of investments of $475 million in the Series L Preference Stock, $475 million of trust securities, and $10,000 of common stock. The following table provides a summary of the trusts' income statements:
* Not applicable |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2017 and 2016, nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds and money market funds. Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from exchanges (New York Mercantile Exchange and Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:
Edison International Parent and Other Edison International Parent and Other assets measured at fair value consisted of money market funds of $541 million and $23 million at December 31, 2017 and 2016, respectively, classified as Level 1. SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:
2 Represents a tolling contract that was amended during the second quarter of 2017, which is no longer accounted for as a derivative as of December 31, 2017.
Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no material transfers between any levels during 2017 and 2016. Valuation Techniques Used to Determine Fair Value The process of determining fair value is the responsibility of SCE's risk management department, which reports to SCE's chief financial officer. This department obtains observable and unobservable inputs through broker quotes, exchanges and internal valuation techniques that use both standard and proprietary models to determine fair value. Each reporting period, the risk and finance departments collaborate to determine the appropriate fair value methodologies and classifications for each derivative. Inputs are validated for reasonableness by comparison against prior prices, other broker quotes and volatility fluctuation thresholds. Inputs used and valuations are reviewed period-over-period and compared with market conditions to determine reasonableness. The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities:
1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. 3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. Level 3 Fair Value Sensitivity Congestion Revenue Rights For CRRs, where SCE is the buyer, generally increases (decreases) in forecasted load in isolation would result in increases (decreases) to the fair value. In general, an increase (decrease) in electricity and gas prices at illiquid locations tends to result in increases (decreases) to fair value; however, changes in electricity and gas prices in opposite directions may have varying results on fair value. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is 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. There are no securities classified as Level 3 in the nuclear decommissioning trusts. SCE's investment policies and CPUC requirements place limitations on the types and investment grade ratings of the securities that may be held by the nuclear decommissioning trust funds. These policies restrict the trust funds from holding alternative investments and limit the trust funds' exposures to investments in highly illiquid markets. With respect to equity and fixed income securities, the trustee obtains prices from third-party pricing services which SCE is able to independently corroborate as described below. The trustee monitors prices supplied by pricing services, including reviewing prices against defined parameters' tolerances and performs research and resolves variances beyond the set parameters. SCE corroborates the fair values of securities by comparison to other market-based price sources obtained by SCE's investment managers. Differences outside established thresholds are followed-up with the trustee and resolved. For each reporting period, SCE reviews the trustee determined fair value hierarchy and overrides the trustee level classification when appropriate. Fair Value of Debt Recorded at Carrying Value The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows:
The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2 and is 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 of new issue prices and relevant credit information. The carrying value of Edison International's and SCE's trade receivables and payables, other investments, and short-term debt approximates fair value. |
Debt and Credit Agreements |
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Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt The following table summarizes long-term debt (rates and terms are as of December 31, 2017) of Edison International and SCE:
Edison International and SCE long-term debt maturities over the next five years are the following:
Project Financings As of December 31, 2017 and 2016, indirect subsidiaries of Edison Energy Group owning solar projects had approximately $31 million (includes short-term debt of $16 million) and $22 million outstanding project debt financings with maturity dates to 2022 with weighted average interest rates of 4.50% and 4.86%. Remaining borrowings available under these agreements are approximately $67 million. Under two of the tax equity financings, tax equity investors in related solar projects receive 99% of taxable profits and losses and tax credits of the projects as determined for federal income tax purposes for a 6-year period following the completion of the portfolio of projects and receive a priority return of 2% of their investment per year. After the 6-year period, the tax equity investors receive 5% of the taxable profits and losses and cash flow. A subsidiary of Edison Energy Group has a call option for a 9-month period following 5 years after completion of the portfolio of projects to purchase the tax equity investors interest and each tax equity investor has the right to put its ownership interest to such subsidiary in the event that the call option is not exercised. Remaining tax equity financings under these agreements are approximately $21 million. Under a third tax equity financing completed in 2017, the tax equity investor in the related solar projects will receive an initial allocation of 99% of taxable losses and tax credits, followed by 67% of taxable income and losses after the initial period and 28.4% of cash flows until certain conditions are met, including attaining a specified rate of return. A subsidiary of Edison Energy Group has the option after certain conditions are met to purchase the tax equity investor's interest at the higher of fair value or the after-tax amount necessary to achieve a specified 20-year rate of return. Remaining tax equity financings under these agreements are approximately $38 million. An indirect subsidiary of Edison Energy Group also entered into a non-recourse debt financing to support equity contributions in certain solar projects. The maturity date of the borrowings under this agreement is December 31, 2036. As of December 31, 2017 and 2016, there was $10 million outstanding under this agreement at a weighted average interest rate of 9%. Liens and Security Interests Almost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies. SCE has a debt covenant that requires a debt to total capitalization ratio be met. At December 31, 2017, SCE was in compliance with this debt covenant and all other financial covenants that affect access to capital. All of the properties subject to the Edison Energy Group project financings discussed above are subject to a lien. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at December 31, 2017:
SCE and Edison International Parent have multi-year revolving credit facilities of $2.75 billion and $1.25 billion, respectively, with both maturing in July 2022. SCE's credit facility is generally used to support commercial paper borrowings and letters of credit issued for procurement-related collateral requirements, balancing account undercollections and for general corporate purposes, including working capital requirements to support operations and capital expenditures. Edison International Parent's credit facility is used to support commercial paper borrowings and for general corporate purposes. At December 31, 2017, commercial paper supported by SCE's credit facility, net of discount, was $738 million at a weighted-average interest rate of 1.75%. In December 2017, SCE borrowed $500 million from the credit facility which had an interest rate of 2.46% on December 31, 2017. In January 2018, SCE repaid its $500 million borrowings with cash on hand. At December 31, 2017, letters of credit issued under SCE's credit facility aggregated $99 million and are scheduled to expire in twelve months or less. At December 31, 2016, the outstanding commercial paper, net of discount, was $769 million at a weighted-average interest rate of 0.9%. At December 31, 2017, Edison International Parent's outstanding commercial paper, net of discount, was $639 million at a weighted-average interest rate of 1.70%. This commercial paper was supported by the $1.25 billion multi-year revolving credit facility. In December 2017, Edison International borrowed $500 million from the credit facility which had an interest rate of 2.56% on December 31, 2017. In January 2018, Edison International repaid its $500 million borrowings with cash on hand. At December 31, 2016, the outstanding commercial paper, net of discount, was $538 million at a weighted-average interest rate of 0.97%. Debt Financing Subsequent to December 31, 2017 In January 2018, Edison International Parent borrowed $500 million under a Term Loan Agreement due in January 2019, with a variable interest rate based on the London Interbank Offered Rate plus 60 basis points. The proceeds were used to repay Edison International Parent's commercial paper borrowings discussed above. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Commodity Price Risk Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and PPAs in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements. Credit and Default Risk Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments. Certain power contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Certain power contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $1 million and $12 million as of December 31, 2017 and 2016, respectively, for which SCE has posted collateral of less than $1 million and $12 million collateral to its counterparties at the respective dates for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2017, SCE would be required to post $20 million of additional collateral of which $19 million is related to outstanding payables that are net of collateral already posted. Fair Value of Derivative Instruments SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:
2 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. Income Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are reported in cash flows from operating activities in the consolidated statements of cash flows. The following table summarizes the components of SCE's economic hedging activity:
Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE hedging activities:
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Income Taxes | Income Taxes Current and Deferred Taxes Edison International's sources of income before income taxes are:
The components of income tax expense (benefit) by location of taxing jurisdiction are:
The components of net accumulated deferred income tax liability are:
2 Includes an $809 million deferred tax asset, related to certain regulatory liabilities established as part of Tax Reform discussed below.
On December 22, 2017, Tax Reform was signed into law. This comprehensive reform of tax law reduces the federal corporate income tax rate from 35% to 21% and is generally effective beginning January 1, 2018. US GAAP requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. At the date of enactment, Edison International and SCE's deferred taxes were re-measured based upon the new tax rate. Accumulated deferred income tax liabilities, net, were reduced by $4.5 billion and $5.0 billion at Edison International and SCE, respectively. Edison International recorded income tax expense of $466 million at December 31, 2017, primarily related to the re-measurement of the federal net operating loss carryforwards (see below for more information). SCE's re-measurement of deferred taxes was recorded against regulatory assets and liabilities when the pre-tax amounts giving rise to the deferred taxes were created through ratemaking activities. SCE also had shareholder-funded pre-tax amounts that gave rise to the deferred tax assets resulting in income tax expense of $33 million. For property acquired and placed in service by regulated utilities after September 27, 2017, Tax Reform repeals 50% bonus depreciation. As a result, SCE is required to evaluate the contractual terms of its fourth quarter 2017 capital additions to determine whether they still qualify for the prior tax law's 50% bonus depreciation, as compared to no bonus depreciation pursuant to Tax Reform. As of December 31, 2017, SCE has not completed this analysis, but recorded a reasonable estimate of the effects of these changes. SCE expects to complete this analysis during 2018. Net Operating Loss and Tax Credit Carryforwards The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows:
As a result of Tax Reform, Edison International and SCE's federal net operating losses were re-measured at 21%. The reduction in the federal corporate income tax rate does not change the gross dollar value of taxable income that may be offset by NOLs, however that taxable income will only be taxable at 21% in future periods, thus reducing the value of NOLs utilized after 2017. Tax Reform did not impact the valuation of tax credit carryforwards, which directly offset taxes due. Edison International consolidates for federal income tax purposes, but not for financial accounting purposes, a group of wind projects referred to as Capistrano Wind. As a result of Tax Reform, the amount of net operating loss and tax credit carryforwards recognized as part of deferred income taxes was re-measured ($199 million and $242 million related to Capistrano Wind at December 31, 2017 and 2016, respectively). Under a tax allocation agreement, Edison International has recorded a corresponding liability, which was also re-measured, as part of other long-term liabilities related to its obligation to make payments to Capistrano Wind of these tax benefits when realized. 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:
1 Includes federal and state.
3 Includes the write-off of an unrecovered tax regulatory asset related to the Revised San Onofre Settlement Agreement. See Note 11 for further information.
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 10. Repair Deductions Edison International made voluntary elections in 2009 and 2011 to change its tax accounting method for certain tax repair costs incurred on SCE's transmission, distribution and generation assets. Incremental repair deductions represent amounts recognized for regulatory accounting purposes in excess of amounts included in the authorized revenue requirements through the general rate case ("GRC") proceedings. As part of the final decision in SCE's 2015 GRC, the CPUC adopted a rate base offset associated with the incremental tax repair deductions during 2012 – 2014. The 2015 rate base offset is $324 million and amortizes on a straight line basis over 27 years. As a result of the rate base offset included in the final decision, SCE recorded an after tax charge of $382 million in 2015 to write down the net regulatory asset for recovery of deferred income taxes related to 2012 – 2014 incremental tax repair deductions which is reflected in "Income tax expense" on the consolidated statements of income. The amount of tax repair deductions the CPUC used to establish the rate base offset was based on SCE's forecast of 2012 – 2014 tax repair deductions from the Notice of Intent filed in the 2015 GRC. The amount of tax repair deductions included in the Notice of Intent was less than the actual tax repair deductions SCE reported on its 2012 through 2014 income tax returns. In April 2016, the CPUC granted SCE's request to reduce SCE's base revenue requirement balancing account ("BRRBA") by $234 million in future periods subject to the timing and final outcome of audits that may be conducted by tax authorities. The refunds resulted in flowing incremental tax benefits for 2012 – 2014 to customers. SCE refunded $133 million ($79 million after-tax) during the second quarter of 2016. SCE did not record a gain or loss from this reduction. Regulatory assets recorded from flow through tax benefits are recovered through SCE's GRC proceedings. Accounting for Uncertainty in Income Taxes Authoritative guidance related to accounting for uncertainty in income taxes requires an enterprise to recognize, in its financial statements, the best estimate of the impact of a tax position by determining if the weight of the available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained upon examination. The guidance requires the disclosure of all unrecognized tax benefits, which includes both the reserves recorded for tax positions on filed tax returns and the unrecognized portion of affirmative claims. Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations:
As of December 31, 2017 and 2016, if recognized, $308 million and $347 million, respectively, of the unrecognized tax benefits would impact Edison International's effective tax rate; and $167 million and $243 million, respectively, of the unrecognized tax benefits would impact SCE's effective tax rate. Tax Disputes In the first quarter of 2017, Edison International resolved all open tax positions with the IRS for taxable years 2007 through 2012. Edison International has previously made cash deposits to cover the estimated tax and interest liability from this audit cycle and expects a $7 million refund of this deposited amount. Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2014 – 2016 and 2010 – 2016 respectively. Edison International has settled all open tax position with the IRS for taxable years prior to 2013. Tax years 1994 – 2006 are currently in settlement negotiations with the California Franchise Tax Board. While we expect to resolve these tax years within the next twelve months, the impacts cannot be reasonably estimated until further progress has been made. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board. Accrued Interest and Penalties The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are:
The net after-tax interest and penalties recognized in income tax expense for continuing and discontinued operations are:
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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 following employer contributions were made for continuing operations:
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. 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 $66 million and $50 million, respectively, for the year ending December 31, 2018. Annual contributions made by SCE to most of SCE's 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, a regulatory asset has been recorded equal to the unfunded status (See Note 10). Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below.
Net periodic pension expense components for continuing operations are:
Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations:
In accordance with authoritative guidance on rate-regulated enterprises, SCE records 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. The estimated pension amounts that will be amortized to expense in 2018 for continuing operations are as follows:
Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations:
The following benefit payments, which reflect expected future service, are expected to be paid:
Postretirement Benefits Other Than Pensions ("PBOP(s)") Employees hired prior to December 31, 2017 who are retiring at or after age 55 with at least 10 years of service may be eligible for postretirement medical, dental, and vision 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. Under the terms of the Edison International Health and Welfare Benefit Plan ("PBOP Plan"), each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of all PBOP Plan benefits with respect to its employees and former employees. 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. The expected contributions (substantially all of which are expected to be made by SCE) for PBOP benefits are $12 million for the year ended December 31, 2018. 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 established three voluntary employee beneficiary associations trusts ("VEBA Trusts") that can only be used to pay for retiree health care benefits of SCE. Once funded into the VEBA Trusts, neither SCE nor Edison International can subsequently terminate benefits and recover 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 unfunded status is offset by a regulatory asset. Information on PBOP Plan assets and benefit obligations is shown below:
Net periodic PBOP expense components for continuing operations are:
In accordance with authoritative guidance on rate-regulated enterprises, SCE records 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. The estimated PBOP amounts that will be amortized to expense in 2018 for continuing operations are as follows:
Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations:
A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations:
The following benefit payments are expected to be paid:
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 2017 pension plan assets were 29% for U.S. equities, 17% for non-U.S. equities, 35% for fixed income, 15% for opportunistic and/or alternative investments and 4% for other investments. Target allocations for 2017 PBOP plan assets (except for Represented VEBA which is 85% for fixed income, 5% for opportunistic/private equities, and 10% global equities) are 58% for global equities, 29% for fixed income, and 13% 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 include:
Opportunistic, Alternative and Other Investments:
Asset class portfolio weights are permitted to range within plus or minus 3%. 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 are 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 SCE'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 assumed average equity risk premium of 5% over cash. The forecasted return on private equity and opportunistic investments are estimated at a 2% premium above public equity, reflecting a premium for higher volatility and lower liquidity. For fixed income, the risk premium is based off of a comprehensive modeling of credit spreads. Fair Value of Plan Assets The PBOP Plan and the Southern California Edison Company Retirement Plan Trust (Master 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, 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. 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 at Note 8 to the pension plan master trust investments table below. 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 Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy:
The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
At December 31, 2017 and 2016, respectively, approximately 67% and 69% 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, 2017 by asset class and level within the fair value hierarchy:
The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
At December 31, 2017 and 2016, respectively, approximately 61% and 63% 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 66 million shares, plus the number of any shares subject to awards issued under Edison International's prior plans and outstanding as of April 26, 2007, which expire, cancel or terminate without being exercised or shares being issued. As of December 31, 2017, Edison International had approximately 30 million shares remaining available for new award grants under its stock-based compensation plans. The following table summarizes total expense and tax benefits (expense) associated with stock based compensation:
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 four years of continuous service, with expense recognized evenly over the requisite service period, except for awards granted to retirement-eligible participants, as discussed in "Stock-Based Compensation" in Note 1. Additionally, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. 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:
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 equals 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 for 2017. The volatility period used was 68 months, 71 months and 71 months at December 31, 2017, 2016 and 2015, respectively. The following is a summary of the status of Edison International's stock options:
At December 31, 2017, total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows:
Supplemental Data on Stock Options
Performance Shares A target number of contingent performance shares were awarded to executives in March 2017, 2016 and 2015 and vest at December 31, 2019, 2018 and 2017, 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). Performance shares that are earned are settled solely in cash, and are classified as a share-based liability award. The fair value of these shares is re-measured at each reporting period, and the related compensation expense is adjusted. Performance shares expense is recognized ratably over the requisite service period based on the fair values determined (subject to the adjustments discussed above), except for awards granted to retirement-eligible participants. 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 the financial performance condition is determined 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:
Restricted Stock Units Restricted stock units were awarded to executives in March 2017, 2016 and 2015 and vest and become payable on January 2, 2020, 2019 and 2018, 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. The following is a summary of the status of Edison International's nonvested restricted stock units:
The fair value for each restricted stock unit awarded is determined as the closing price of Edison International common stock on the grant date. |
Investments |
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Regulated Entity, Other Assets, Noncurrent [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):
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 $1.5 billion at December 31, 2017 and 2016, respectively, and other-than-temporary impairments of $143 million and $170 million at the respective periods. Trust assets are used to pay income taxes. Deferred tax liabilities related to net unrealized gains at December 31, 2017 were $404 million. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion at December 31, 2017. Gross realized gains were $244 million, $92 million and $326 million for the years ended December 31, 2017, 2016 and 2015, respectively. Gross realized losses were $23 million, $19 million and $26 million for the years ended December 31, 2017, 2016 and 2015, respectively. Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings. Acquisitions On December 31, 2015, Edison Energy acquired three businesses for an aggregate purchase price of approximately $100 million, of which $90 million was allocated to goodwill and identifiable intangibles. Under the terms of the acquisition of one of the agreements, the sellers were entitled to additional consideration (earn-out) in the event that certain financial thresholds were achieved. During the second quarter of 2016, Edison Energy entered into an agreement to buy-out this earn-out provision and recorded an after-tax charge of $13 million. The buy-out was completed, together with modification to employment contracts, in order to align long-term incentive compensation. During 2016 and 2017, a subsidiary of SoCore Energy acquired 100% equity interests in six solar garden development projects (42 MWdc) in Minnesota from SunEdison for $19.4 million. SoCore Energy also reimbursed SunEdison $2.6 million of project-specific interconnection costs. |
Regulatory Assets and Liabilities |
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Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Included in SCE's regulatory assets and liabilities are regulatory balancing accounts. CPUC authorized balancing account mechanisms require SCE to refund or recover any differences between forecasted and actual costs. The CPUC has authorized balancing accounts for specified costs or programs such as fuel, purchased-power, demand-side management programs, nuclear decommissioning and public purpose programs. Certain of these balancing accounts include a return on rate base of 7.90% in 2017 and 2016. The CPUC authorizes the use of a balancing account to recover from or refund to customers differences in revenue resulting from actual and forecasted electricity sales. The CPUC has also established a tax accounting memorandum account ("TAMA") to track tax benefits or costs associated with certain events to be adjusted annually in rates, including tax accounting method changes, changes in tax laws and regulations impacting depreciation or tax repair deductions, forecasted and actual differences in tax repair deductions. Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to the applicable income statement accounts. Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are:
SCE's regulatory assets related to power contracts and energy derivatives are primarily an offset to unrealized losses on derivatives. The liabilities for the power contracts will be amortized over the remaining contract terms, approximately 3 to 6 years and will not earn a rate of return. SCE's current and long-term unamortized investments include legacy meters retired as part of the Edison SmartConnect® program and beyond the meters. SCE's unamortized investments related to legacy meters were fully recovered in 2017 and earned a rate of return of 6.46% in 2017 and 2016. SCE's regulatory assets related to deferred income taxes represent tax benefits passed through to customers. The CPUC requires SCE to flow through certain deferred income tax benefits to customers by reducing electricity rates, thereby deferring recovery of such amounts to future periods. Based on current regulatory ratemaking and income tax laws, SCE expects to recover its regulatory assets related to deferred income taxes over the life of the assets that give rise to the accumulated deferred income taxes, approximately from 1 to 60 years. As a result of Tax Reform, SCE re-measured its deferred tax assets and liabilities as of December 31, 2017. For further information, see Note 7. SCE's regulatory assets related to pensions and other post-retirement plans represent the unfunded net loss and prior service costs of the plans (see "Pension Plans and Postretirement Benefits Other than Pensions" discussion in Note 8). This amount is being recovered through rates charged to customers. SCE has long-term unamortized investments which primarily include nuclear assets related to Palo Verde. Nuclear assets related to Palo Verde are expected to be recovered by 2047 and earned a return of 7.90% in 2017 and 2016. In accordance with the Revised San Onofre Settlement Agreement, SCE wrote down the San Onofre regulatory asset. SCE has requested to apply $72 million of the U.S. Department of Energy ("DOE") proceeds, currently reflected as a regulatory liability in the DOE litigation memorandum account, against the remaining San Onofre regulatory asset. See Note 11 for further information. SCE's net regulatory asset related to its unamortized loss on reacquired debt will be recovered over the original amortization period of the reacquired debt over periods ranging from 10 to 35 years or the amortization period of life of the new issue if the debt is refunded or refinanced. SCE's regulatory assets related to environmental remediation represents a portion of the costs incurred at certain sites that SCE is allowed to recover through customer rates. See "Environmental Remediation" discussed in Note 11. Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are:
SCE's regulatory liabilities related to costs of removal represent differences between asset removal costs recorded and amounts collected in rates for those costs. As a result of Tax Reform, SCE's deferred tax assets and liabilities were re-measured at December 31, 2017 resulting in an increase in regulatory liabilities which is subject to change based on the outcome of the regulatory process. The regulatory liabilities are generally expected to be refunded to customers over the lives of the assets and liabilities that gave rise to the deferred taxes. For further information, see Note 7. SCE's regulatory liabilities related to recoveries in excess of ARO liabilities represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9 for further discussion. Net Regulatory Balancing Accounts Balancing account over and under collections represent differences between cash collected in current rates for specified forecasted costs and such costs that are actually incurred. Undercollections are recorded as regulatory balancing account assets. Overcollections are recorded as regulatory balancing account liabilities. With some exceptions, SCE seeks to adjust rates on an annual basis or at other designated times to recover or refund the balances recorded in its balancing accounts. Regulatory balancing accounts that SCE does not expect to collect or refund in the next 12 months are reflected in the long-term section of the consolidated balance sheets. Regulatory balancing accounts do not have the right of offset and are presented gross in the consolidated balance sheets. Under and over collections accrue interest based on a three-month commercial paper rate published by the Federal Reserve. The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Power Purchase Agreements SCE entered into various agreements to purchase power, electric capacity and other energy products. At December 31, 2017, the undiscounted future expected payments for the SCE power purchase agreements (primarily related to renewable energy contracts), which were approved by the CPUC and met other critical contract provisions (including completion of major milestones for construction), were as follows:
Additionally, SCE has signed contracts (including capacity reduction contracts with customers) that have not met the critical contract provisions that would increase contractual obligations by $29 million in 2018, $109 million in 2019, $231 million in 2020, $312 million in 2021, $301 million in 2022 and $3.8 billion thereafter, if all critical contract provisions are completed. Costs incurred for power purchase agreements were $3.6 billion in 2017, $3.3 billion in 2016 and $3.2 billion in 2015, which include costs associated with contracts with terms of less than one year. Certain power purchase agreements that SCE entered into with independent power producers are accounted for as leases. The following table shows the future minimum lease payments due under the contracts that are treated as operating and capital leases (these amounts are also included in the table above). Due to the inherent uncertainty associated with the reliability of the fuel source, expected purchases from most renewable energy contracts do not meet the definition of a minimum lease payment and have been excluded from the operating and capital lease table below but remain in the table above. The future minimum lease payments for capital leases are discounted to their present value in the table below using SCE's incremental borrowing rate at the inception of the leases. The amount of this discount is shown in the table below as the amount representing interest.
Operating lease expense for power purchase agreements was $2.3 billion in 2017, and $1.9 billion in 2016 and $1.7 billion in 2015 (including contingent rents of $1.8 billion in 2017, $1.4 billion in 2016 and $1.1 billion in 2015). Contingent rents for capital leases were $99 million in 2017, $109 million in 2016 and less than $1 million in 2015. The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power. Other Lease Commitments The following summarizes the estimated minimum future commitments for SCE's non-cancelable other operating leases (primarily related to vehicles, office space and other equipment):
Operating lease expense for other leases were $59 million in 2017, $68 million in 2016 and $80 million in 2015. Certain leases on office facilities contain escalation clauses requiring annual increases in rent. The rentals payable under these leases may increase by a fixed amount each year, a percentage over base year, or the consumer price index. Other Commitments The following summarizes the estimated minimum future commitments for SCE's other commitments:
Costs incurred for other commitments were $75 million in 2017, $141 million in 2016 and $182 million in 2015. SCE has fuel supply contracts for Palo Verde which require payment only if the fuel is made available for purchase. SCE also has commitments related to maintaining reliability and expanding SCE's transmission and distribution system. The table above does not include asset retirement obligations, which are discussed in Note 1. Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. Edison International and SCE have provided indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated. SCE has indemnified the City of Redlands, California in connection with the Mountainview power plant's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. SCE has not recorded a liability related to this indemnity. Contingencies In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its financial position, results of operations and cash flows. Southern California Wildfires In December 2017, several wind-driven wildfires (the "December 2017 Wildfires") impacted portions of SCE's service territory and caused substantial damage to both residential and business properties and service outages for SCE customers. The largest of these fires, known as the Thomas Fire, originated in Ventura County and burned acreage located in both Ventura and Santa Barbara Counties. According to the most recent California Department of Forestry and Fire Protection ("Cal Fire") incident information reports, the Thomas Fire burned over 280,000 acres, destroyed an estimated 1,063 structures, damaged an estimated 280 structures and resulted in two fatalities. During 2017, SCE incurred approximately $35 million of capital expenditures related to restoration of service resulting from the December 2017 Wildfires. The causes of the December 2017 Wildfires are being investigated by Cal Fire and other fire agencies. SCE believes the investigations include the possible role of SCE's facilities. SCE expects that one or more of the fire agencies will ultimately issue reports concerning the origins and causes of the December 2017 Wildfires but cannot predict when these reports will be released or if any findings will be issued before the investigations are completed. Any potential liability of SCE for December 2017 Wildfire-related damages will depend on a number of factors, including whether SCE is determined to have substantially caused, or contributed to, the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. Certain California courts have previously found utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale stated by these courts for applying this theory to investor-owned utilities is that property losses resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement. However, in December 2017, the CPUC issued a decision denying the investor-owned utility's request to include in its rates uninsured wildfire-related costs arising from several 2007 fires, finding that the investor-owned utility did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. In addition to liability for property damages, when inverse condemnation is found to be applicable to a utility, the utility may be held liable, without regard to fault, for associated interest and attorney's fees (collectively, "Property Losses"). If inverse condemnation is held to be inapplicable to SCE in connection with the December 2017 Wildfires, SCE could still be held liable for Property Losses if those losses were found to have been proximately caused by SCE’s negligence. If SCE was found negligent, SCE also could be held liable for fire suppression costs, business interruption losses, evacuation costs, medical expenses and personal injury/wrongful death claims. These potential liabilities, in the aggregate, could be substantial. Additionally, SCE could potentially be subject to fines for alleged violations of CPUC rules and laws in connection with the December 2017 Wildfires. SCE is aware of multiple lawsuits filed related to the December 2017 Wildfires naming SCE as a defendant. One of these lawsuits also named Edison International as a defendant. At least four of these lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utility and health and safety codes. SCE expects to be the subject of additional lawsuits related to the December 2017 Wildfires. The litigation could take a number of years to be resolved because of the complexity of the matters and the time needed to complete the ongoing investigations. Given the preliminary stages of the investigations and the uncertainty as to the causes of the December 2017 Wildfires, and the extent and magnitude of potential damages, Edison International and SCE are currently unable to reasonably estimate whether SCE will incur material losses and, if so, the range of possible losses that could be incurred. SCE has approximately $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence, for wildfire-related claims for the period ending on May 31, 2018. SCE also has approximately $300 million of additional insurance coverage for wildfire-related occurrences for the period from December 31, 2017 to December 31, 2018 which may be used in addition to the $1 billion in wildfire insurance for wildfire events occurring on or after December 31, 2017 and on or before May 31, 2018, and would be available for new wildfire events, if any, occurring after May 31, 2018 and on or before December 30, 2018. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in material self-insured costs in the event of multiple wildfire occurrences during a policy period. SCE also has other general liability insurance coverage of approximately $450 million but it is uncertain whether these other policies would apply to liabilities alleged to be related to wildfires. Should responsibility for damages be attributed to SCE for a significant portion of the losses related to the December 2017 Wildfires, SCE's insurance may not be sufficient to cover all such damages. SCE or its vegetation management contractors may experience coverage reductions and/or increased insurance costs in future years. No assurance can be given that future losses will not exceed the limits of insurance coverage. In addition, SCE may not be authorized to recover its uninsured damages through customer rates if, for example, the CPUC finds that the damages were incurred because SCE was not a prudent manager of its facilities. The CPUC's Safety and Enforcement Division ("SED") is conducting an investigation to assess the compliance of SCE’s facilities with applicable rules and regulations in areas impacted by the December 2017 Wildfires. Edison International and SCE are pursuing legislative, regulatory and legal solutions to the application of a strict liability standard to wildfire-related damages without the ability to recover resulting costs from customers. Edison International and SCE cannot predict whether or when a solution mitigating the significant risk faced by a California investor-owned utility related to wildfires will be achieved. Montecito Mudslides In January 2018, torrential rains in Santa Barbara County produced mudslides and flooding in Montecito and surrounding areas (the "Montecito Mudslides"). According to Santa Barbara County, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in at least 21 fatalities, with two additional fatalities presumed. Six of the lawsuits mentioned above allege that SCE has responsibility for the Thomas Fire and that the Thomas Fire proximately caused the Montecito Mudslides, resulting in the plaintiffs' claimed damages. SCE expects that additional lawsuits related to the Montecito Mudslides will be filed. As noted above, the cause of the Thomas Fire has not been determined. In the event that SCE is determined to have liability for damages caused by the Thomas Fire, SCE cannot predict whether the courts will conclude that the Montecito Mudslides were caused by the Thomas Fire or that SCE is responsible or liable for damages caused by the Montecito Mudslides. As a result, Edison International and SCE are currently unable to reasonably estimate whether SCE will incur material losses and, if so, the range of possible losses that could be incurred. If it is determined that the Montecito Mudslides were caused by the Thomas Fire and that SCE is responsible or liable for damages caused by the Montecito Mudslides, then SCE's insurance coverage for such losses may be limited to its wildfire insurance. Additionally, if SCE is determined to be liable for a significant portion of costs associated with the Montecito Mudslides, SCE's insurance may not be sufficient to cover all such damages and SCE may be unable to recover any uninsured losses. If it is ultimately determined that SCE is legally responsible for losses caused by the Montecito Mudslides, SCE could be held liable for resulting Property Losses if inverse condemnation is found applicable. If SCE is determined to have been negligent, in addition to Property Losses, SCE could be liable for business interruption losses, evacuation costs, clean-up costs, medical expenses and personal injury/wrongful death claims associated with the Montecito Mudslides. These liabilities, in the aggregate, could be substantial. SCE cannot predict whether it will be subjected to regulatory fines related to the Montecito Mudslides. Permanent Retirement of San Onofre Replacement steam generators were installed at San Onofre in 2010 and 2011. On January 31, 2012, a leak suddenly occurred in one of the heat transfer tubes in San Onofre's Unit 3 steam generators. The Unit was safely taken off-line and subsequent inspections revealed excessive tube wear. Unit 2 was off-line for a planned outage when areas of unexpected tube wear were also discovered. On June 6, 2013, SCE decided to permanently retire Units 2 and 3. San Onofre CPUC Proceedings In November 2014, the CPUC approved the San Onofre OII Settlement Agreement by and among The Utility Reform Network ("TURN"), the CPUC's Office of Ratepayers Advocates ("ORA"), San Diego Gas & Electric ("SDG&E"), the Coalition of California Utility Employees, and Friends of the Earth (the "Prior San Onofre Settlement Agreement"), which, at the time, resolved the CPUC's investigation regarding the steam generator replacement project at San Onofre and the related outages and subsequent shutdown of San Onofre. Subsequently, the San Onofre Order Instituting Investigation ("OII") proceeding record was reopened by a joint ruling of the Assigned Commissioner and the Assigned administrative law judge ("ALJ") to consider whether, in light of the Company not reporting certain ex parte communications on a timely basis, the Prior San Onofre Settlement Agreement remained reasonable, consistent with the law and in the public interest, which is the standard the CPUC applies in reviewing settlements submitted for approval. Entry into Revised Settlement and Utility Shareholder Agreements On January 30, 2018, SCE, SDG&E, The Alliance for Nuclear Responsibility, The California Large Energy Consumers Association, California State University, Citizens Oversight dba Coalition to Decommission San Onofre, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, ORA, TURN, and Women's Energy Matters (the "OII Parties") entered into a Revised San Onofre Settlement Agreement in the San Onofre OII proceeding (the "Revised San Onofre Settlement Agreement"). If approved by the CPUC, the Revised San Onofre Settlement Agreement will resolve all issues under consideration in the San Onofre OII and will modify the Prior San Onofre Settlement Agreement. If approved by the CPUC, the Revised San Onofre Settlement Agreement will also result in the dismissal of a federal lawsuit currently pending in the 9th Circuit Court of Appeals challenging the CPUC's authority to permit rate recovery of San Onofre costs. The Revised San Onofre Settlement Agreement was the result of multiple mediation sessions in 2017 and January 2018 and was signed on January 30, 2018 following a settlement conference in the OII, as required under CPUC rules. Implementation of the terms of the Revised San Onofre Settlement Agreement is subject to the approval of the CPUC, as to which there is no assurance. The OII Parties have agreed to exercise their best efforts to obtain CPUC approval, but there can be no certainty of when or what the CPUC will actually decide. On February 6, 2018, the San Onofre OII Assigned Commissioner and Assigned ALJ issued a joint ruling advising the parties, among other things, that (i) the CPUC will need additional information and that the parties should be prepared to submit joint testimony in support of the Revised San Onofre Settlement Agreement on March 26, 2018; (ii) there will be public participation hearings and at least one additional status conference; and (iii) another ruling will be issued with further direction. Disallowances, Refunds and Recoveries If the Revised San Onofre Settlement Agreement is approved by the CPUC, SCE and SDG&E (the "Utilities") will cease rate recovery of San Onofre costs as of the date their combined remaining San Onofre regulatory assets equal $775 million (the "Cessation Date"). SCE has previously requested the CPUC to authorize SCE to reduce the San Onofre regulatory asset by applying $72 million of proceeds received from litigation with the DOE related to DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. If that request is approved by the CPUC, the Cessation Date is estimated to be December 19, 2017. If that request is not approved by the CPUC, the Cessation Date is estimated to be April 21, 2018. The Utilities will refund to customers San Onofre-related amounts recovered in rates after the Cessation Date. SCE will retain amounts collected under the Prior San Onofre Settlement Agreement before the Cessation Date. SCE also will retain $47 million of proceeds received in 2017 from arbitration with Mitsubishi Heavy Industries ("MHI") over MHI's delivery of faulty steam generators. In the Revised San Onofre Settlement Agreement, SCE retains the right to sell its stock of nuclear fuel and not share such proceeds with customers, as was provided in the Prior San Onofre Settlement Agreement. SCE intends to sell its nuclear fuel inventory as market conditions warrant. Sales of nuclear fuel may be significant. Under the Prior San Onofre Settlement Agreement, the Utilities agreed to fund $25 million for a Research, Development and Demonstration program that is intended to develop technologies and methodologies to reduce greenhouse gas emissions ("GHG Reduction Program"). The Utilities' funding obligation is reduced to $12.5 million under the Revised San Onofre Settlement Agreement. If approved by the CPUC, the Revised San Onofre Settlement Agreement will also provide certain exclusions from the determination of SCE's ratemaking capital structure. Notwithstanding that SCE will no longer recover its San Onofre regulatory asset, the debt borrowed to finance the regulatory asset will continue to be excluded from SCE's ratemaking capital structure. Additionally, SCE may exclude the after-tax charge resulting from the implementation of the Revised San Onofre Settlement Agreement from its ratemaking capital structure. Accounting and Financial Impacts Under the Prior San Onofre Settlement Agreement, GAAP required that previously incurred costs related to San Onofre Units 2 & 3 be reflected as a regulatory asset to the extent that management concluded the costs were probable of recovery through future rates. GAAP also requires that amounts collected that are probable of refund to customers be recorded as regulatory liabilities. In the fourth quarter of 2017, regulatory assets and liabilities were adjusted based on the probable approval of the Revised San Onofre Settlement Agreement. In connection with the Revised San Onofre Settlement Agreement, and in exchange for the release of certain San Onofre-related claims, the Utilities entered into an agreement ("Utility Shareholder Agreement") in which SCE has agreed to pay SDG&E the amounts SDG&E would have received in rates under the Prior San Onofre Settlement Agreement but will not receive upon implementation of the Revised San Onofre Settlement Agreement. As of December 19, 2017, SDG&E's regulatory asset was approximately $151 million. In the fourth quarter of 2017, SCE recorded an accrued liability of $143 million for the estimated present value of this obligation. The following table summarizes the financial impact of the Revised San Onofre Settlement Agreement and the Utility Shareholder Agreement:
Additional Challenges related to the Settlement of San Onofre CPUC Proceedings A federal lawsuit challenging the CPUC's authority to permit rate recovery of San Onofre costs and an application to the CPUC for rehearing of its decision approving the San Onofre OII Settlement Agreement were filed in November and December 2014, respectively. In April 2015, the federal lawsuit was dismissed with prejudice and the plaintiffs in that case appealed the dismissal to the Ninth Circuit in May 2015. In light of the San Onofre OII meet-and-confer sessions, the Ninth Circuit cancelled the hearing that had been scheduled for February 9, 2017 and ordered the parties to notify the Ninth Circuit of the status of the San Onofre OII by May 1, 2017 and periodically thereafter. In October 2017, the Ninth Circuit scheduled a hearing for February 13, 2018 and directed the parties to file a status report on January 30, 2018. As part of the Revised San Onofre Settlement Agreement, the plaintiffs agreed to dismiss this case with prejudice. In July 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its then Chief Executive Officer and its then Chief Financial Officer. The complaint was later amended to include SCE's former President as a defendant. The lawsuit alleges that the defendants violated the securities laws by failing to disclose that Edison International had ex parte contacts with CPUC decision-makers regarding the San Onofre OII that were either unreported or more extensive than initially reported. The initial complaint purports to be filed on behalf of a class of persons who acquired Edison International common stock between March 21, 2014 and June 24, 2015 (the "Class Period"). In September 2016, the federal court granted defendants' motion to dismiss the complaint, with an opportunity for plaintiff to amend the complaint. Plaintiff filed an amended complaint, which the federal court dismissed again with an opportunity for the plaintiff to amend the complaint. Plaintiff filed a third amended complaint and defendants again moved to dismiss the complaint in October 2016. Also in July 2015, a federal shareholder derivative lawsuit was filed against members of the Edison International Board of Directors for breach of fiduciary duty and other claims. The federal derivative lawsuit is based on similar allegations to the federal class action securities lawsuit and seeks monetary damages, including punitive damages, and various corporate governance reforms. An additional federal shareholder derivative lawsuit making essentially the same allegations was filed in August 2015 and was subsequently consolidated with the July 2015 federal derivative lawsuit. In September 2016, the federal court granted defendants' motion to dismiss the consolidated complaint, with an opportunity for plaintiff to amend the complaint. Plaintiff did not file an amended complaint by the required date. Plaintiffs' deadline to appeal the federal court's order granting defendants' motion to dismiss lapsed in March 2017 and no appeal was filed. In October 2015, a shareholder derivative lawsuit was filed in California state court against members of the Edison International Board of Directors for breach of fiduciary duty and other claims, making similar allegations to those in the federal derivative lawsuits discussed above. In light of the ruling in the parallel federal derivative lawsuit discussed above, plaintiff requested that the court voluntarily dismiss the state court action. The action was dismissed in April 2017. In November 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its then Chief Executive Officer and its Treasurer by an Edison International employee, alleging claims under the Employee Retirement Income Security Act. The complaint purports to be filed on behalf of a class of Edison International employees who were participants in the Edison 401(k) Savings Plan and invested in the Edison International Stock Fund between March 27, 2014 and June 24, 2015. The complaint alleges that defendants breached their fiduciary duties because they knew or should have known that investment in the Edison International Stock Fund was imprudent because the price of Edison International common stock was artificially inflated due to Edison International's alleged failure to disclose certain ex parte communications with CPUC decision-makers related to the San Onofre OII. In July 2016, the federal court granted the defendants' motion to dismiss the lawsuit with an opportunity for the plaintiff to amend her complaint. Plaintiff filed an amended complaint in July 2016, that dismissed Edison International as a named defendant and the remaining defendants filed a motion to dismiss in August 2016. These defendants' motion was heard by the court in November 2016. In June 2017, the federal court again granted defendants' motion to dismiss the lawsuit with an opportunity for the plaintiff to amend her complaint. Plaintiff filed an amended complaint in early July 2017. Defendants have filed motion to dismiss the amended complaint, which was heard by the court in October 2017, and are awaiting a ruling. Edison International and SCE cannot predict the outcome of these proceedings. Environmental Remediation SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain. At December 31, 2017, SCE's recorded estimated minimum liability to remediate its 20 identified material sites (sites with a liability balance as of December 31, 2017, in which the upper end of the range of the costs is at least $1 million) was $146 million, including $93 million related to San Onofre. In addition to these sites, SCE also has 16 immaterial sites with a liability balance at December 31, 2017 for which the total minimum recorded liability was $4 million. Of the $150 million total environmental remediation liability for SCE, $144 million has been recorded as a regulatory asset. SCE expects to recover $49 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $95 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites. The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $129 million and $8 million, respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes. SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for each of the next 4 years are expected to range from $5 million to $21 million. Costs incurred for years ended December 31, 2017, 2016 and 2015 were $9 million, $4 million and $5 million, respectively. Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates. Nuclear Insurance Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately $13.4 billion. As of January 1, 2017, SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available ($450 million) through a Facility Form issued by American Nuclear Insurers ("ANI"). The balance is covered by a loss sharing program among nuclear reactor licensees. If a nuclear incident at any licensed reactor in the United States results in claims and/or costs which exceed the primary insurance at that plant site, all nuclear reactor licensees could be required to contribute their share of the liability in the form of a deferred premium. The ANI Facility Form coverage includes broad liability protection for bodily injury or offsite property damage caused by the nuclear energy hazard at San Onofre, or while in transit to or from San Onofre. The Facility Form, however, includes several exclusions. First, it excludes onsite property damage to the nuclear facility itself and onsite cleanup costs, but as discussed below SCE maintains separate Nuclear Electric Insurance Limited ("NEIL") property damage coverage for such events. Second, tort claims of onsite workers are excluded, but SCE also maintains an ANI Master Worker Form policy that provides coverage for non-licensee workers. This program provides a shared industry aggregate limit of $450 million. Industry losses covered by this program could reduce limits available to SCE. Third, offsite environmental costs arising out of government orders or directives, including those issued under the Comprehensive Environmental Response, Compensation and Liability Act, also known as CERCLA, are excluded, with minor exceptions from clearly identifiable accidents. Based on its ownership interests, SCE could be required to pay a maximum of approximately $255 million per nuclear incident. However, it would have to pay no more than approximately $38 million per incident in any one year. If the public liability limit above is insufficient, federal law contemplates that additional funds may be appropriated by Congress. This could include an additional assessment on all licensed reactor operators as a measure for raising further federal revenue. NEIL, a mutual insurance company owned by entities with nuclear facilities, issues nuclear property damage and accidental outage insurance policies. The amount of nuclear property insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $1.06 billion. These policies include coverage for decontamination liability. Property damage insurance also covers damages caused by acts of terrorism up to specified limits. Additional outage insurance covers part of replacement power expenses during an accident-related nuclear unit outage. The accidental outage insurance at San Onofre has been canceled as a result of the permanent retirement, but that insurance continues to be in effect at Palo Verde. If losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $52 million per year. Insurance premiums are charged to operating expense. Spent Nuclear Fuel Under federal law, the DOE is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE has not met its contractual obligation to accept spent nuclear fuel. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for their current license period. In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million (SCE share $112 million) to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award. In April 2016, SCE, as operating agent, settled a lawsuit on behalf of the San Onofre owners against the DOE for $162 million, including reimbursement for legal costs (SCE share $124 million) to compensate for damages caused by the DOE's failure to meet its obligation to begin accepting spent nuclear fuel for the period from January 1, 2006 to December 31, 2013. The settlement also provides for a claim submission/audit process for expenses incurred from 2014 – 2016, where SCE will submit a claim for damages caused by the DOE failure to accept spent nuclear fuel each year, followed by a government audit and payment of the claim. This process will make additional legal action to recover damages incurred in 2014 – 2016 unnecessary. The first such claim covering damages for 2014 – 2015 was filed on September 30, 2016 for approximately $56 million. In February 2017, the DOE reviewed the 2014 – 2015 claim submission and reduced the original request to approximately $43 million (SCE share was approximately $34 million) primarily due to DOE allocation limits. SCE accepted the DOE's determination, and the government paid the 2014 – 2015 claim under the terms of the settlement. In October 2017, SCE filed a claim covering damages for 2016 for approximately $59 million. All damages recovered by SCE are subject to CPUC review as to how these amounts would be distributed among customers, shareholders, or to offset fuel decommissioning or storage costs. |
Preferred and Preference Stock of Utility |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred and Preference Stock of Utility | Preferred and Preference Stock of Utility SCE's authorized shares are: $100 cumulative preferred – 12 million shares, $25 cumulative preferred – 24 million shares and preference with no par value – 50 million shares. SCE's outstanding shares are not subject to mandatory redemption. There are no dividends in arrears for the preferred or preference shares. Shares of SCE's preferred stock have liquidation and dividend preferences over shares of SCE's common stock and preference stock. All cumulative preferred shares are redeemable. When preferred shares are redeemed, the premiums paid, if any, are charged to common equity. No preferred shares were issued or redeemed in the years ended December 31, 2017, 2016 and 2015. There is no sinking fund requirement for redemptions or repurchases of preferred shares. Shares of SCE's preference stock rank junior to all of the preferred stock and senior to all common stock. Shares of SCE's preference stock are not convertible into shares of any other class or series of SCE's capital stock or any other security. There is no sinking fund requirement for redemptions or repurchases of preference shares. Preferred stock and preference stock is:
Shares of Series E preference stock issued in 2012 may be redeemed at par, in whole or in part, on or after February 1, 2022. Shares of Series G, H, J, K and L preference stock, issued in 2013, 2014, 2015, 2016 and 2017, respectively, may be redeemed at par, in whole, but not in part, at any time prior to March 15, 2018, March 15, 2024, September 15, 2025, March 15, 2026 and June 26, 2022, respectively, if certain changes in tax or investment company law or interpretation (or applicable rating agency equity credit criteria for Series L only) occur and certain other conditions are satisfied. On or after March 15, 2018, March 15, 2024, September 15, 2025, March 15, 2026 and June 26, 2022, SCE may redeem the Series G, H, J, K and L shares, respectively, at par, in whole or in part. For shares of Series H, J and K preference stock, distributions will accrue and be payable at a floating rate from and including March 15, 2024, September 15, 2025 and March 15, 2026, respectively. Shares of Series G, H, J, K and L preference stock were issued to SCE Trust II, SCE Trust III, SCE Trust IV, SCE Trust V and SCE Trust VI, respectively, special purpose entities formed to issue trust securities as discussed in Note 3. The proceeds from the sale of the shares of Series L were used to redeem $475 million of the Company's Series F preference stock. Preference shares are not subject to mandatory redemption. At December 31, 2017, declared and unpaid dividends related to SCE's preferred and preference stock were $12 million. |
Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, consist of:
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Interest and Other Income and Other Expenses |
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Interest and Other Income and Other Expenses | Interest and Other Income and Other Expenses Interest and other income and other expenses are as follows:
1 Reflects Edison Capital's income related to the sale of affordable housing projects for the year ended December 31, 2015. |
Supplemental Cash Flows Information |
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Supplemental Cash Flows Information | Supplemental Cash Flows Information Supplemental cash flows information for continuing operations is:
SCE's accrued capital expenditures at December 31, 2017, 2016 and 2015 were $652 million, $540 million, and $543 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid. During 2015, SCE amended a power contract classified as a capital lease, which resulted in a reduction in the lease obligation and asset by $147 million. |
Related Party Transactions |
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Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions Edison International and SCE provide and receive various services to and from its subsidiaries and affiliates. Services provided to Edison International by SCE are priced at fully loaded cost (i.e., direct cost of good or service and allocation of overhead cost). Specified administrative services such as payroll, employee benefit programs, all performed by Edison International or SCE employees, are shared among all affiliates of Edison International. Costs are allocated based on one of the following formulas: percentage of time worked, equity in investment and advances, number of employees, or multi-factor (operating revenue, operating expenses, total assets and number of employees). Edison International allocates various corporate administrative and general costs to SCE and other subsidiaries using established allocation factors. |
Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Edison International's quarterly financial data is as follows:
SCE's quarterly financial data is as follows:
Due to the seasonal nature of Edison International and SCE's business, a significant amount of revenue and earnings are recorded in the third quarter of each year. As a result of rounding, the total of the four quarters does not always equal the amount for the year. |
Schedule I - Condensed Financial Information of Parent |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule I - Condensed Financial Information of Parent | EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED BALANCE SHEETS
EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2017, 2016 and 2015
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2017, 2016 and 2015
EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2017, 2016 and 2015
Note 1. Basis of Presentation The accompanying condensed financial statements of Edison International Parent should be read in conjunction with the consolidated financial statements and notes thereto of Edison International and subsidiaries ("Registrant") included in this Form 10-K. Edison International's Parent significant accounting policies are consistent with those of the Registrant, SCE and other wholly owned and controlled subsidiaries. Dividends Received Edison International Parent received cash dividends from SCE of $573 million, $701 million and $758 million in 2017, 2016 and 2015, respectively. During the fourth quarter of 2017, SCE declared a dividend to Edison International of $212 million, which was paid on January 31, 2018. Dividend Restrictions The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. Under CPUC regulations, SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above 48% on a 13-month average basis, or otherwise satisfies the CPUC requirements. If the Revised San Onofre Settlement Agreement is approved by the CPUC, SCE may exclude the $448 million after-tax charge resulting from the implementation of the Revised San Onofre Settlement Agreement from its ratemaking capital structure. At December 31, 2017, without excluding the $448 million after-tax charge, SCE's 13-month average common equity component of total capitalization was 50.0% and the maximum additional dividend that SCE could pay to Edison International under this limitation was approximately $511 million, resulting in a restriction on net assets of approximately $14.2 billion. If the Revised San Onofre Settlement Agreement had been approved by the CPUC at December 31, 2017, the common equity component of SCE's capital structure would have been 50.1% on a 13-month average basis. Note 2. Debt and Credit Agreements Long-Term Debt During the first quarter of 2017, Edison International issued $400 million of 2.125% senior notes due in 2020. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. In August 2017, Edison International issued $400 million of 2.40% senior notes due in 2022. In addition, at December 31, 2017 and 2016, respectively, Edison International Parent had $400 million of 2.95% senior notes due in 2023 and $400 million of 3.75% senior notes, which were paid in September 2017 with the proceeds from the August 2017 issuance as discussed above. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facility at December 31, 2017:
During the second quarter of 2017, Edison International Parent amended the credit facility to extend the maturity date for the $1.25 billion credit facility to July 2022. At December 31, 2017, the outstanding commercial paper, net of discount, was $639 million at a weighted-average interest rate of 1.70%. This commercial paper was supported by the $1.25 billion multi-year revolving credit facility. In December 2017, Edison International Parent borrowed $500 million from the credit facility which had an interest rate of 2.56% on December 31, 2017. In January 2018, Edison International repaid its $500 million borrowings with cash on hand. At December 31, 2016, the outstanding commercial paper, net of discount, was $538 million at a weighted-average interest rate of 0.97%. In January 2018, Edison International Parent borrowed $500 million under a Term Loan Agreement due in January 2019, with a variable interest rate based on the London Interbank Offered Rate plus 60 basis points. The proceeds were used to repay Edison International Parent's commercial paper borrowings discussed above. The debt covenant in Edison International's credit facility requires a consolidated debt to total capitalization ratio of less than or equal to 0.65 to 1. At December 31, 2017, Edison International's consolidated debt to total capitalization ratio was 0.51 to 1. Note 3. Related-Party Transactions Edison International's Parent expense from services provided by SCE was $3 million annually in 2017, 2016 and 2015. Edison International's Parent interest expense from loans due to affiliates was $5 million in 2017, $3 million in 2016 and $6 million in 2015. Edison International Parent had current related-party receivables of $256 million and $262 million and current related-party payables of $235 million and $221 million at December 31, 2017 and 2016, respectively. During 2017, a related-party note receivable of $184 million was converted into a capital contribution. Edison International Parent had long-term related-party receivables of $81 million and $103 million at December 31, 2017 and 2016, respectively, and long-term related-party payables of $200 million and $243 million at December 31, 2017 and 2016, respectively. Note 4. Contingencies For a discussion of material contingencies see "Notes to Consolidated Financial Statements—Note 7. Income Taxes" and "—Note 11. Commitments and Contingencies." |
Schedule II - Valuation and Qualifying Accounts |
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Schedule II - Valuation and Qualifying Accounts | EDISON INTERNATIONAL SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentation | Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for subsidiaries, including Edison Energy, LLC ("Edison Energy") and SoCore Energy LLC ("SoCore Energy"), engaged in pursuing competitive business opportunities across energy services, managed portfolio solutions, and distributed solar solutions for commercial and industrial customers. Such business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its competitive subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. In addition, SCE recognizes revenue and regulatory assets from alternative revenue programs, which enables the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not qualify for recognition of "traditional" regulatory assets and liabilities. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 10 for composition of regulatory assets and liabilities. |
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Use of Estimates | The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. |
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Cash Equivalents and Restricted Cash | Cash Equivalents Cash equivalents includes investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows:
Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:
Restricted Cash Edison International's restricted cash at December 31, 2017 and 2016 were $41 million and $18 million, respectively. Restricted cash primarily relates to funds held by SoCore Energy and its consolidated affiliates pursuant to project financing or purchase agreements; most of which are expected to lapse by the end of 2018. |
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Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts Allowances for uncollectible accounts are provided based upon a variety of factors, including historical amounts written-off, current economic conditions and assessment of customer collectability. |
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Inventory | Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at average cost. |
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Emission Allowances | Emission Allowances SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted-average cost or market. |
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Property, Plant and Equipment | Property, Plant and Equipment SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives (authorized by the CPUC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows:
Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. Depreciation expense was $1.61 billion, $1.52 billion and $1.42 billion for 2017, 2016 and 2015, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.8%, 3.8% and 3.9% for 2017, 2016 and 2015, respectively. The original costs of retired property is charged to accumulated depreciation. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $87 million, $74 million and $87 million in 2017, 2016 and 2015, respectively, and is reflected in "Interest and other income." AFUDC debt was $28 million, $23 million and $31 million in 2017, 2016 and 2015, respectively and is reflected as a reduction of "Interest expense." Major Maintenance Major maintenance costs for SCE's power plant facilities and equipment are expensed as incurred. |
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Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income based valuation techniques, as appropriate. |
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Goodwill | Goodwill Edison International assesses goodwill through annual goodwill impairment tests, at the reporting unit level as of October 1st of each year. Edison International will update these tests between annual tests if events occur or circumstances change such that it is more likely than not that the fair value of a reporting unit is below its carrying value. During 2017, Edison International completed a strategic review of Edison Energy Group's competitive businesses. Edison International has concluded that it will evaluate strategic options, including potential sale opportunities, for SoCore Energy. In connection with the strategic review of the Edison Energy Group's competitive businesses, Edison International evaluated the recoverability of goodwill and recorded an impairment of SoCore Energy's goodwill totaling $16.5 million ($10 million after-tax) in the second quarter of 2017. The fair value of the Edison Energy and SoCore Energy reporting units exceeded their carrying values at the date of the impairment analysis. As of December 31, 2017 and 2016, goodwill is comprised of $78 million at each year end at the Edison Energy reporting unit and $5 million and $22 million, respectively, at the SoCore Energy reporting unit. |
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Nuclear Decommissioning and Asset Retirement Obligations | Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. SCE adjusts its nuclear decommissioning obligation into a nuclear-related ARO regulatory asset and also records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Notes 9 and 10. SCE has not recorded an asset retirement obligation for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability, including San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde:
The recorded liability to decommission SCE's nuclear power facilities (included in the table above) is $2.6 billion as of December 31, 2017. In 2016, SCE updated the recorded liability for Palo Verde and San Onofre Unit 1 based on the 2013 decommissioning study performed for Palo Verde and the 2014 study for San Onofre Unit 1. In 2017, SCE further revised the recorded liability for Palo Verde and San Onofre Units 2 and 3 based on updated cost estimates, including changes related to onboarding the general contractor. The final site specific study for San Onofre Units 2 and 3 is expected to be filed in March 2018 as part of the 2018 NDCTP which may result in additional changes to the ARO estimate. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as increases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets, and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $7.2 billion through 2079 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 1.6% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 2.4% to 3.8%. Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates. See Note 9 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceeding. SCE's nuclear decommissioning trust investments primarily consist of fixed income and equity investments that are classified as available-for-sale. Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on earnings. Unrealized gains and losses on decommissioning trust funds increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each security for other-than-temporary impairment on the last day of each month. If the fair value on the last day of two consecutive months is less than the cost for that security, SCE recognizes a loss for the other-than-temporary impairment. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. |
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Deferred Financing Costs | Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. |
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Revenue Recognition | Revenue Recognition Revenue is recognized when electricity is delivered and includes amounts for services rendered but unbilled at the end of each reporting period as reflected in "Operating revenue" on the consolidated statements of income. Rates charged to customers are based on CPUC- and FERC-authorized revenue requirements. CPUC rates are implemented subsequent to final approval. CPUC rates decouple authorized revenue from the volume of electricity sales. Differences between amounts collected and authorized levels are either collected from or refunded to customers, and therefore, SCE earns revenue equal to amounts authorized. FERC rates also decouple revenue from volume of electricity sales. In November 2013, the FERC approved a formula rate effective January 1, 2012 to determine SCE's FERC transmission revenue requirement, including its construction work in progress ("CWIP") revenue requirement. Under operation of the formula rate, transmission revenue will be updated to actual cost of service annually. Differences between amounts collected and determined under the formula rate are either collected from or refunded to customers, and therefore, SCE earns revenue based on estimates of recorded rate base costs under the FERC formula rate. SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis and reflected in electric utility revenue and other operation and maintenance expense. |
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Power Purchase Agreements | Power Purchase Agreements SCE enters into power purchase agreements in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE should consolidate the VIE. None of SCE's power purchase agreements resulted in consolidation of a VIE at December 31, 2017 and 2016. See Note 3 for further discussion of power purchase agreements that are considered variable interests. A power purchase agreement may also contain a lease for accounting purposes. This generally occurs when a power purchase agreement designates a specific power plant in which the buyer purchases substantially all of the output and does not otherwise meet a fixed price per unit of output exception. SCE has a number of power purchase agreements that contain leases. SCE's recognition of lease expense conforms to the ratemaking treatment for SCE's recovery of the cost of electricity and is recorded in "Purchased power and fuel" on the consolidated statements of income. See Note 11 for further discussion of SCE's power purchase agreements, including agreements that are classified as operating and capital leases for accounting purposes. A power purchase agreement that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets. These power purchase agreements may be eligible for an election to designate as a normal purchase and sale, which is accounted for on an accrual basis as an executory contract. See Note 6 for further information on derivative instruments. Power purchase agreements that do not meet the above classifications are accounted for on an accrual basis. |
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Derivatives Instruments | Derivative Instruments SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. |
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Leases | Leases SCE enters into power purchase agreements that may contain leases, as discussed under "Power Purchase Agreements" above. SCE also enters into a number of agreements to lease property and equipment in the normal course of business. Minimum lease payments under SCE's operating leases for property and equipment are reflected in "Operation and maintenance" on the consolidated statements of income. |
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Stock-Based Compensation | Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. Generally, Edison International does not issue new common stock for settlement of equity awards, which are recorded as part of retained earnings. Rather, a third party is used to purchase shares from the market and deliver such shares for the settlement of option exercises, performance shares, deferred stock units and restricted stock units. The performance shares awarded that are earned are settled solely in cash. Deferred stock units and restricted stock units are settled in common stock; however, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period and is based on the number of awards that are expected to vest. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. For awards granted to retirement-eligible participants, stock compensation expenses are recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expenses are recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Under new accounting guidance adopted in 2016, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. |
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SCE Dividend Restrictions | SCE Dividend Restrictions The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. Under CPUC regulations, SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above 48% on a 13-month average basis, or otherwise satisfies the CPUC requirements. |
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Earnings Per Share | Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. Performance shares awarded prior to 2015 that are earned are settled half in common shares and half in cash, while the performance shares awarded on or after 2015 that are earned are settled solely in cash. For further information, see Note 8. |
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Income Taxes | Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. In December 2017, the Tax Cuts and Jobs Act ("Tax Reform") was signed into law. This comprehensive reform of tax law reduces the federal corporate income tax rate from 35% to 21% which resulted in the re-measurement of deferred taxes using the new tax rate. See Note 7 for further information. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Investment tax credits are deferred and amortized to income tax expense over the lives of the properties or the term of the power purchase agreement of the respective project. Interest income, interest expense and penalties associated with income taxes are reflected in "Income tax expense" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. |
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Redeemable Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the portion of equity ownership in an entity that is not attributable to the equity holders of Edison International. Noncontrolling interests held by third parties that have rights to put their ownership back to a subsidiary of Edison International are classified outside shareholders' equity as redeemable noncontrolling interest. Noncontrolling interest is initially recorded at fair value and is subsequently adjusted for income allocated to the noncontrolling interest and any distributions paid to the noncontrolling interest. |
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New Accounting Guidance | New Accounting Guidance Accounting Guidance Not Yet Adopted In May 2014, the FASB issued an accounting standards update on revenue recognition and further amended the standard in 2016 and 2017. Under the new standard, revenue from contracts with customers is recognized when (or as) a good or service is transferred to the customer and the customer obtains control of the good or service. For the year ended December 31, 2017, approximately 95% of total operating revenue arises from SCE's tariff offerings that provide electricity to customers. For such arrangements, revenue from contracts with customers will be equivalent to the electricity supplied and billed in that period (including estimated billings). As such, there will not be a change in the timing or pattern of revenue recognition for such sales. Edison International and SCE have implemented process changes necessary to comply with this standard's enhanced disclosure requirements. SCE will disaggregate customer contract revenue between revenue from earnings activities and revenue from cost-recovery activities. Some revenue arrangements, such as alternative revenue programs which include balancing account overcollections and undercollections, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenue recognized from contracts with customers in the disclosures. Edison International and SCE will adopt the standard by using the modified retrospective method. Edison International will recognize an immaterial cumulative effect adjustment to the opening balance of retained earnings on January 1, 2018. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The amendments require equity investments (excluding those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value through net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial assets. Edison International and SCE will adopt this guidance effective January 1, 2018. SCE's nuclear decommissioning trust investments contain equity investments that are classified as available-for-sale. Due to regulatory mechanisms, the change in fair value of these investments has no impact on net income and, therefore, the adoption of this standard will not have a material impact on Edison International's and SCE's consolidated financial statements. In February 2016, the FASB issued an accounting standards update related to lease accounting, effective January 1, 2019. Under the new standard, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. Lessees will need to recognize leases on the balance sheet as a right-of-use asset and a related lease liability, and classify the leases as either operating or finance. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustments, such as initial direct costs. Edison International operating leases will result in straight-line expense while finance leases will result in a higher initial expense pattern due to the interest component. SCE, as a regulated entity, is permitted to continue to recognize expense using the timing that conforms to the regulatory rate treatment. Lessees can elect to exclude from the balance sheet short-term contracts of one year or less. The standard requires retrospective application to previously issued financial statements for 2018 and 2017. Although permitted, Edison and SCE will not elect to adopt this standard prior to January 1, 2019. The standard will provide entities with an optional transition method to apply the new requirements in the period of adoption without retrospective application to previous periods. Edison International and SCE are evaluating whether to elect this optional transition method. The adoption of this standard will increase right-of-use assets and lease liabilities in Edison International's and SCE's consolidated balance sheets. Edison International and SCE are currently implementing a new lease accounting system and are evaluating the impact this standard will have on the consolidated balance sheets and lease disclosures. The FASB issued an accounting standards update related to the impairment of financial instruments, effective January 1, 2020. The new guidance provides an impairment model, known as the current expected credit loss model, which is based on expected credit losses rather than incurred losses. Edison International and SCE are currently evaluating the impact of this new guidance. The FASB issued two accounting standards updates related to the statement of cash flows. One standards update clarifies the presentation and classification of certain cash receipts and payments in the statement of cash flows and the other requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. These standards are effective January 1, 2018 and require retrospective application. Restricted cash as of December 31, 2017 was $41 million at Edison International and was less than $1 million at SCE. Currently, the changes in restricted cash balances are reflected as operating or investing activities dependent on the nature of the activities. In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment. This accounting standards update changes the procedural steps in applying the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to the goodwill impairment test beginning in 2020. In March 2017, the FASB issued an accounting standards update which amends the current requirements related to the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's financial position or results of operations, but will result in the separate presentation of service costs as an operating expense and non-service costs within other income and expense and limit the capitalization of benefit costs to the service cost component. For the year ended December 31, 2017, service costs totaled $169 million for Edison International and $164 million for SCE and the non-service component of net periodic benefit cost was income of $72 million for Edison International and $84 million for SCE. The new standards update is effective on January 1, 2018 and is required to be adopted retrospectively with respect to the income statement presentation requirement and prospectively for the capitalization requirement. |
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents | The cash equivalents were as follows:
Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:
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Estimated Useful Lives (Authorized by the CPUC) and Weighted-Average Useful Lives of Property, Plant and Equipment | Estimated useful lives (authorized by the CPUC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows:
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Reconciliation of the Changes in ARO Liability | The following table summarizes the changes in SCE's ARO liability, including San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde:
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Amortization of Deferred Financing Costs | Amortization of deferred financing costs charged to interest expense is as follows:
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EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows:
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Property, Plant and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant, and Equipment | SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following:
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Schedule of Jointly Owned Utility Projects | The following is SCE's investment in each asset as of December 31, 2017:
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Variable Interest Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Condensed Income Statement | The following table provides a summary of the trusts' income statements:
* Not applicable |
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion | The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows:
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SCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value by Level | The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:
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Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities | The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:
2 Represents a tolling contract that was amended during the second quarter of 2017, which is no longer accounted for as a derivative as of December 31, 2017.
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Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities:
1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. 3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. |
Debt and Credit Agreements (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | The following table summarizes long-term debt (rates and terms are as of December 31, 2017) of Edison International and SCE:
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Long-term Debt Maturities | Edison International and SCE long-term debt maturities over the next five years are the following:
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Summary for Status of Credit Facilities | The following table summarizes the status of the credit facilities at December 31, 2017:
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Derivative Instruments (Tables) - SCE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Liabilities in Statement of Financial Position, Fair Value | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:
2 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. |
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Schedule of Derivative Assets in Statement of Financial Position, Fair Value | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:
2 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. |
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Components of Economic Hedging Activity | The following table summarizes the components of SCE's economic hedging activity:
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Notional Volumes of Derivative Instruments | The following table summarizes the notional volumes of derivatives used for SCE hedging activities:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sources of Income (Loss) Before Income Taxes | Edison International's sources of income before income taxes are:
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Components of Income Tax Expense (Benefit) by Location of Taxing Jurisdiction | The components of income tax expense (benefit) by location of taxing jurisdiction are:
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Components of Net Accumulated Deferred Income Tax Liability | The components of net accumulated deferred income tax liability are:
2 Includes an $809 million deferred tax asset, related to certain regulatory liabilities established as part of Tax Reform discussed below.
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Summary of Net Operating Loss and Tax Credit Carryforwards | The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows:
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Reconciliation of Income Tax Expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:
1 Includes federal and state.
3 Includes the write-off of an unrecovered tax regulatory asset related to the Revised San Onofre Settlement Agreement. See Note 11 for further information.
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Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations:
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Schedule of Interest and Penalties Related to Income Tax Liabilities | The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are:
The net after-tax interest and penalties recognized in income tax expense for continuing and discontinued operations are:
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Compensation and Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Savings Plan Employer Contributions | The following employer contributions were made for continuing operations:
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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:
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Black-Sholes Option-Pricing Model Assumptions | The Black-Scholes option-pricing model requires various assumptions noted in the following table:
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Summary of Stock Options Activity | The following is a summary of the status of Edison International's stock options:
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Schedule of Unrecognized Compensation Expense | At December 31, 2017, total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows:
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Supplemental Data on Stock-based Compensation | Supplemental Data on Stock Options
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Summary of Nonvested Share Activity | The following is a summary of the status of Edison International's nonvested performance shares:
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Summary of Nonvested Restricted Stock Units Activity | The following is a summary of the status of Edison International's nonvested restricted stock units:
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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.
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Expense Components for Plans | pension expense components for continuing operations are:
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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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized | The estimated pension amounts that will be amortized to expense in 2018 for continuing operations are as follows:
|
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Schedule of Assumptions Used | Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations:
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Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid:
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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, 2017 by asset class and level within the fair value hierarchy:
The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
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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:
|
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Expense Components for Plans | Net periodic PBOP expense components for continuing operations are:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized | The estimated PBOP amounts that will be amortized to expense in 2018 for continuing operations are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations:
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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:
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Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid:
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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, 2017 by asset class and level within the fair value hierarchy:
The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
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Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulated Entity, Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of the Trust Investments | 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):
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Regulatory Assets and Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets Included on the Consolidated Balance Sheets | SCE's regulatory assets included on the consolidated balance sheets are:
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Regulatory Liabilities Included on the Consolidated Balance Sheets | SCE's regulatory liabilities included on the consolidated balance sheets are:
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Schedule of Regulatory Balancing Accounts | The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Power Purchase Agreements Treated as Operating and Capital Leases | The amount of this discount is shown in the table below as the amount representing interest.
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Summary of Estimated Minimum Future Commitments for Other Operating Leases | The following summarizes the estimated minimum future commitments for SCE's non-cancelable other operating leases (primarily related to vehicles, office space and other equipment):
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Schedule of Settlement Agreement | The following table summarizes the financial impact of the Revised San Onofre Settlement Agreement and the Utility Shareholder Agreement:
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SCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Undiscounted Future Expected Payments for Power Purchase Agreements That Have Been Approved by the CPUC and Have Completed Major Milestones for Construction | At December 31, 2017, the undiscounted future expected payments for the SCE power purchase agreements (primarily related to renewable energy contracts), which were approved by the CPUC and met other critical contract provisions (including completion of major milestones for construction), were as follows:
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Summary of Certain Future Other Commitments | The following summarizes the estimated minimum future commitments for SCE's other commitments:
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Preferred and Preference Stock of Utility (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class [Table Text Block] | Preferred stock and preference stock is:
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Accumulated Other Comprehensive Loss (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, consist of:
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Interest and Other Income and Other Expenses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and Other Income and Other Expenses | Interest and other income and other expenses are as follows:
1 Reflects Edison Capital's income related to the sale of affordable housing projects for the year ended December 31, 2015. |
Supplemental Cash Flows Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flows Information | Supplemental cash flows information for continuing operations is:
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Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data | Edison International's quarterly financial data is as follows:
SCE's quarterly financial data is as follows:
|
Summary of Significant Accounting Policies (Organization and Basis of Presentation) (Details) mi² in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
mi²
| |
Electric Utility | SCE | |
Segment Reporting Information [Line Items] | |
Supply Of Electricity Area Covered (in square miles) | 50 |
Summary of Significant Accounting Policies (Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | $ 1,024 | $ 41 |
Book balances reclassified to accounts payable | 64 | 138 |
Restricted cash | 41 | 18 |
SCE | ||
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | 483 | 18 |
Book balances reclassified to accounts payable | 63 | $ 136 |
Restricted cash | $ 1 |
Summary of Significant Accounting Policies (Emission Allowances) (Details) - SCE - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Current Assets | ||
Significant Accounting Policies [Line Items] | ||
GHG allowances | $ 127 | $ 113 |
Other Current Liabilities | ||
Significant Accounting Policies [Line Items] | ||
GHG emission obligations | $ 129 | $ 95 |
Summary of Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
SoCore Energy | ||
Goodwill [Line Items] | ||
Goodwill impairment | $ 16.5 | |
Goodwill impairment after tax | 10.0 | |
Goodwill | 5.0 | $ 22.0 |
Edison Energy Group | ||
Goodwill [Line Items] | ||
Goodwill | $ 78.0 | $ 78.0 |
Summary of Significant Accounting Policies (Nuclear Decommissioning and Asset Retirement Obligations) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Asset Retirement Obligation, Roll Forward | ||
Beginning balance | $ 2,590 | |
Ending balance | 2,908 | $ 2,590 |
SCE | ||
Asset Retirement Obligation, Roll Forward | ||
Beginning balance | 2,586 | 2,762 |
Accretion | 166 | 157 |
Revisions | 376 | (165) |
Liabilities settled | (236) | (168) |
Ending balance | $ 2,892 | $ 2,586 |
Threshold period to be recognized as a loss for other-than-temporary impairment | 2 months | |
SCE | Palo Verde and San Onofre Units | ||
Asset Retirement Obligation, Roll Forward | ||
Recorded liability to decommission nuclear power facilities | $ 2,600 | |
Estimated cost to decommission nuclear facilities | $ 7,200 | |
Decommissioning cost escalated rates, low end (percent) | 1.60% | |
Decommissioning cost escalated rates, high end (percent) | 7.50% | |
Estimated annual net of tax earnings, low end (percent) | 2.40% | |
Estimated annual net of tax earnings, high end (percent) | 3.80% |
Summary of Significant Accounting Policies (Revenue Recognition) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
SCE | |||
Significant Accounting Policies [Line Items] | |||
Franchise fees billed to customers | $ 133 | $ 111 | $ 138 |
Summary of Significant Accounting Policies (Derivative Instruments) (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
SCE | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Reclassified derivative liabilities | $ 914 |
Summary of Significant Accounting Policies (Noncontrolling Interest) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Redeemable Noncontrolling Interest [Line Items] | |||
Assets | $ 52,580 | $ 51,319 | |
Liabilities | 38,695 | 37,127 | |
Unnamed subsidiary | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Assets | 299 | 74 | |
Liabilities | 41 | 23 | |
Net income | $ 21 | $ 9 | $ 16 |
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash | $ 41 | $ 18 | |
Service cost | 169 | ||
Non-service costs | 72 | ||
SCE | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash | 1 | ||
Service cost | 164 | ||
Non-service costs | $ 84 | ||
SCE | Sales | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Sales from tariff offerings, percentage of total operating revenues | 95.00% |
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (9,355) | $ (9,000) |
Total utility property, plant and equipment | 38,708 | 36,806 |
SCE | ||
Property, Plant and Equipment [Line Items] | ||
Distribution | 23,633 | 22,332 |
Transmission | 13,127 | 12,549 |
Generation | 3,468 | 3,376 |
General plant and other | 4,534 | 4,633 |
Accumulated depreciation | (9,355) | (9,000) |
Total utility property, plant and equipment, Gross | 35,407 | 33,890 |
Construction work in progress | 3,175 | 2,790 |
Nuclear fuel, at amortized cost | 126 | 126 |
Total utility property, plant and equipment | $ 38,708 | $ 36,806 |
Property, Plant and Equipment (Textual) (Details) - SCE - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Line Items] | |||
Capitalized software costs | $ 1,100 | $ 1,400 | |
Capitalized software, accumulated amortization | 600 | 800 | |
Capitalized software, amortization expense | 233 | $ 249 | $ 268 |
Capitalized software, estimated amortization year 1 | 176 | ||
Capitalized software, estimated amortization year 2 | 127 | ||
Capitalized software, estimated amortization year 3 | 92 | ||
Capitalized software, estimated amortization year 4 | 62 | ||
Capitalized software, estimated amortization year 5 | $ 26 | ||
Capitalized software costs | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Capitalized software costs | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years |
Variable Interest Entities (Summary of Trusts' Income Statement) (Details) - SCE - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
SCE Trust I | |||
Variable Interest Entity [Line Items] | |||
Dividend income | $ 14 | $ 27 | $ 27 |
Dividend distributions | 14 | 27 | 27 |
SCE Trust II | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 20 | 20 | 20 |
Dividend distributions | 20 | 20 | 20 |
SCE Trust III | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 16 | 16 |
Dividend distributions | 16 | 16 | 16 |
SCE Trust IV | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 17 | 17 | 6 |
Dividend distributions | 17 | 17 | $ 6 |
SCE Trust V | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 13 | |
Dividend distributions | 16 | $ 13 | |
Trust VI | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 12 | ||
Dividend distributions | $ 12 |
Fair Value Measurements (Textual) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 1,024 | $ 41 |
Edison International Parent and Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 541 | $ 23 |
Fair Value Measurements (Level 3 Rollforward) (Details) - SCE - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Total realized/unrealized gains: | |||
Reclassified derivative liabilities | $ 914 | ||
Level 3 | |||
Fair Value Disclosures Level 3 [Roll Forward] | |||
Fair value of net liabilities at beginning of period | $ (1,089) | $ (1,148) | |
Total realized/unrealized gains: | |||
Included in regulatory assets and liabilities | 133 | 59 | |
Contract amendment | 143 | 0 | |
Normal purchase and normal sale designation | 914 | 0 | |
Fair value of net assets (liabilities) at end of period | 101 | (1,089) | |
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period | $ 100 | $ (70) | |
Reclassified derivative liabilities | $ 914 |
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 12,123 | $ 11,156 |
Fair Value | 13,760 | 12,368 |
SCE | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 10,907 | 10,333 |
Fair Value | $ 12,547 | $ 11,539 |
Debt and Credit Agreements (Long-term debt maturities) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2018 | $ 481 |
2019 | 81 |
2020 | 481 |
2021 | 580 |
2022 | 777 |
SCE | |
Debt Instrument [Line Items] | |
2018 | 479 |
2019 | 79 |
2020 | 79 |
2021 | 579 |
2022 | $ 364 |
Debt and Credit Agreements (Summary for status of credit facilities) (Details) - Multi-year credit facilities - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Commitment | $ 1,250,000,000 | |
Outstanding borrowings | (1,139,000,000) | $ (538,000,000) |
Outstanding letters of credit | 0 | |
Amount available | 111,000,000 | |
SCE | ||
Line of Credit Facility [Line Items] | ||
Commitment | 2,750,000,000 | |
Outstanding borrowings | (1,238,000,000) | |
Outstanding letters of credit | (99,000,000) | |
Amount available | $ 1,413,000,000 |
Derivative Instruments (Textual) (Details) - SCE - Electric Utility - Economic hedges - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivatives | ||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | $ 1 | $ 12 |
Posted collateral | 1 | $ 12 |
Potential amount of collateral to be posted if contingencies triggered | 20 | |
Payables | ||
Derivatives | ||
Potential amount of collateral to be posted if contingencies triggered | $ 19 |
Derivative Instruments (Summarization of Economic Hedging Activities) (Details) - SCE - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized losses | $ (14) | $ (59) | $ (148) |
Unrealized gains (losses) | $ 106 | $ 84 | $ (182) |
Derivative Instruments (Notional Values) (Details) - SCE - Electric Utility - Gross amounts recognized MWh in Thousands |
Dec. 31, 2017
Bcfe
MWh
|
Dec. 31, 2016
Bcfe
MWh
|
---|---|---|
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 475 | 1,816 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | Bcfe | 143 | 36 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 78,765 | 93,319 |
Tolling arrangements (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 0 | 61,093 |
Income Taxes (Source of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Income from continuing operations before income taxes | $ 949 | $ 1,590 | $ 1,568 |
Income from discontinued operations before income taxes | 0 | 1 | 15 |
Income before income tax | $ 949 | $ 1,591 | $ 1,583 |
Income Taxes (Components of Income Tax Expense (Benefit) by Location) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current: | |||
Federal | $ (221) | $ (46) | $ 18 |
State | 4 | 33 | 19 |
Total current | (217) | (13) | 37 |
Deferred: | |||
Federal | 570 | 176 | 340 |
State | (72) | 14 | 109 |
Total deferred | 498 | 190 | 449 |
Total continuing operations | 281 | 177 | 486 |
Discontinued operations | 0 | (11) | (21) |
Total | 281 | 166 | 465 |
SCE | |||
Current: | |||
Federal | (253) | 75 | 72 |
State | (81) | 93 | 127 |
Total current | (334) | 168 | 199 |
Deferred: | |||
Federal | 265 | 112 | 298 |
State | 39 | (24) | 10 |
Total deferred | 304 | 88 | 308 |
Total continuing operations | (30) | 256 | 507 |
Discontinued operations | 0 | 0 | 0 |
Total | $ (30) | $ 256 | $ 507 |
Income Taxes (Net Operating Loss and Tax Credit Carryforwards) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Tax Credit Carryforward [Line Items] | |
Loss Carryforwards, Expiring 2018 to 2036 | $ 901 |
Loss Carryforwards, No expiration date | 0 |
Loss Carryforwards | 901 |
Credit Carryforward, Expiring 2018 to 2036 | 451 |
Credit Carryforward, No expiration date | 71 |
Credit Carryforwards | 522 |
SCE | |
Tax Credit Carryforward [Line Items] | |
Loss Carryforwards, Expiring 2018 to 2036 | 162 |
Loss Carryforwards, No expiration date | 0 |
Loss Carryforwards | 162 |
Credit Carryforward, Expiring 2018 to 2036 | 25 |
Credit Carryforward, No expiration date | 38 |
Credit Carryforwards | $ 63 |
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | $ 471 | $ 529 | $ 576 |
Tax positions taken during the current year, Increases | 51 | 36 | 54 |
Tax positions taken during a prior year, Increases | 0 | 2 | 66 |
Tax positions taken during a prior year, Decreases | (7) | (96) | (165) |
Tax positions taken during a prior year, Decreases for settlements during the period | (83) | 0 | (2) |
Balance at December 31, | 432 | 471 | 529 |
SCE | |||
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | 371 | 353 | 441 |
Tax positions taken during the current year, Increases | 51 | 36 | 48 |
Tax positions taken during a prior year, Increases | 0 | 0 | 23 |
Tax positions taken during a prior year, Decreases | (13) | (18) | (159) |
Tax positions taken during a prior year, Decreases for settlements during the period | (78) | 0 | 0 |
Balance at December 31, | $ 331 | $ 371 | $ 353 |
Income Taxes (Interest and Penalties Related to Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Line Items] | |||
Accrued interest and penalties | $ 115 | $ 128 | |
Net after-tax interest and penalties tax expense (benefit) | 6 | 6 | $ (9) |
SCE | |||
Income Tax Disclosure [Line Items] | |||
Accrued interest and penalties | 41 | 41 | |
Net after-tax interest and penalties tax expense (benefit) | $ 4 | $ 2 | $ (14) |
Compensation and Benefit Plans (Employee Savings Plan) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 70 | $ 69 | $ 73 |
SCE | |||
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 69 | $ 68 | $ 72 |
Compensation and Benefit Plans (Weighted Average Assumptions) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Postretirement Benefits Other Than Pensions | |||
Assumed health care cost trend rates: | |||
Ultimate rate | 5.00% | 5.00% | |
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Discount rate | 3.94% | 4.18% | 3.85% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Expected long-term return on plan assets | 6.50% | 7.00% | 7.00% |
Continuing Operations | Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Discount rate | 4.29% | 4.55% | 4.16% |
Expected long-term return on plan assets | 5.30% | 5.60% | 5.50% |
Assumed health care cost trend rates: | |||
Current year | 7.00% | 7.50% | 7.75% |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Compensation and Benefit Plans (Expected Future Benefit Payments) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Pension Plans | |
Years ended December 31, | |
2018 | $ 338 |
2019 | 343 |
2020 | 327 |
2021 | 324 |
2022 | 309 |
2023 – 2027 | 1,453 |
Postretirement Benefits Other Than Pensions | |
Years ended December 31, | |
2018 | 93 |
2019 | 96 |
2020 | 100 |
2021 | 103 |
2022 | 107 |
2023 – 2027 | 582 |
SCE | Pension Plans | |
Years ended December 31, | |
2018 | 304 |
2019 | 303 |
2020 | 293 |
2021 | 287 |
2022 | 281 |
2023 – 2027 | 1,299 |
SCE | Postretirement Benefits Other Than Pensions | |
Years ended December 31, | |
2018 | 93 |
2019 | 96 |
2020 | 100 |
2021 | 103 |
2022 | 106 |
2023 – 2027 | $ 580 |
Compensation and Benefit Plans (Black-Scholes Option Pricing Model Assumptions) (Details) - Stock options |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected terms (in years) | 5 years 8 months 12 days | 5 years 10 months 24 days | 5 years 10 months 24 days |
Risk-free interest rate, minimum | 2.10% | 1.20% | 1.60% |
Risk-free interest rate, maximum | 2.30% | 2.20% | 2.10% |
Weighted-average expected dividend yield | 2.70% | 2.90% | 2.60% |
Expected volatility, minimum | 17.80% | 17.20% | 16.40% |
Expected volatility, maximum | 20.90% | 17.50% | 17.00% |
Weighted-average volatility | 17.90% | 17.40% | 16.50% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 2.70% | 2.50% | 2.60% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 3.80% | 3.00% | 3.20% |
Compensation and Benefit Plans (Unrecognized Compensation Costs) (Details) - Stock options $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures | $ 13 |
Weighted-average period (in years) | 2 years 4 months 24 days |
SCE | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures | $ 7 |
Weighted-average period (in years) | 2 years 3 months 18 days |
Investments (Nuclear Decommissioning Trusts) (Details) - SCE - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investment Holdings [Line Items] | |||
Unrealized holding gains, net of losses | $ 1,600 | $ 1,500 | |
Other-than-temporary impairments | 143 | 170 | |
Deferred income taxes related to unrealized gains | 404 | ||
Nuclear decommissioning trusts | 4,000 | ||
Gross realized gains | 244 | 92 | $ 326 |
Gross realized losses | $ (23) | $ (19) | $ (26) |
Commitments and Contingencies (Undiscounted Future Minimum Expected Payments for Power Purchase Agreements) (Details) - SCE - Power Purchase Agreements $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2018 | $ 2,513 |
2019 | 2,513 |
2020 | 2,614 |
2021 | 2,582 |
2022 | 2,562 |
Thereafter | 27,093 |
Total future commitments | $ 39,877 |
Commitments and Contingencies (Power Purchase Agreements Narrative) (Details) - SCE - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Costs incurred for power purchase agreements | $ 3,600 | $ 3,300 | $ 3,200 |
Signed contracts, not meeting critical contract provisions | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2018 | 29 | ||
2019 | 109 | ||
2020 | 231 | ||
2021 | 312 | ||
2022 | 301 | ||
Thereafter | 3,800 | ||
Operating Leases Purchase Power Contracts | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Net operating leases expense | 2,300 | 1,900 | 1,700 |
Contingent operating lease expense | 1,800 | 1,400 | 1,100 |
Contingent capital lease expense | $ 99 | $ 109 | $ 1 |
Commitments and Contingencies (Power Purchase Agreement - Operating and Capital Leases) (Details) - SCE $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Operating Leases | |
Operating Leases | |
2018 | $ 335 |
2019 | 262 |
2020 | 234 |
2021 | 198 |
2022 | 174 |
Thereafter | 1,222 |
Total future commitments | 2,425 |
Capital Leases | |
Capital Leases | |
2018 | 2 |
2019 | 2 |
2020 | 2 |
2021 | 3 |
2022 | 3 |
Thereafter | 21 |
Total future commitments | 33 |
Amount representing executory costs | (15) |
Amount representing interest | (8) |
Net commitments | $ 10 |
Commitments and Contingencies (Other Lease Commitments) (Details) - SCE - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating Leased Assets [Line Items] | |||
Operating leases expense | $ 59 | $ 68 | $ 80 |
Total | |||
Operating Leased Assets [Line Items] | |||
2018 | 48 | ||
2019 | 37 | ||
2020 | 27 | ||
2021 | 20 | ||
2022 | 15 | ||
Thereafter | 99 | ||
Total future commitments | $ 246 |
Commitments and Contingencies (Other Commitments) (Details) - SCE - Other contractual obligations - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2018 | $ 127 | ||
2019 | 72 | ||
2020 | 69 | ||
2021 | 45 | ||
2022 | 46 | ||
Thereafter | 345 | ||
Total | 704 | ||
Costs incurred | $ 75 | $ 141 | $ 182 |
Commitments and Contingencies (San Onofre CPUC Proceedings) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 19, 2017 |
|
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 4,914.0 | $ 7,455.0 | ||
Impairment and other charges | 738.0 | 21.0 | $ 5.0 | |
SCE | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 4,914.0 | 7,455.0 | ||
Impairment and other charges | 716.0 | 0.0 | $ 0.0 | |
SCE | Utility Shareholder Agreement | ||||
Regulatory Assets [Line Items] | ||||
Impairment and other charges | 143.0 | |||
SCE | San Onofre | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 72.0 | $ 857.0 | $ 775.0 | |
The Utilities | ||||
Regulatory Assets [Line Items] | ||||
Funding commitment for GHG Reduction Program | 25.0 | |||
Funding obligation reduction | $ 12.5 | |||
SDG&E | San Onofre | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 151.0 |
Commitments and Contingencies (Schedule of Settlement Agreement) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Loss Contingencies [Line Items] | |||
Total pre-tax charge | $ 738 | $ 21 | $ 5 |
SCE | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | 716 | $ 0 | $ 0 |
Total after-tax charge | 448 | ||
SCE | Utility Shareholder Agreement | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | 143 | ||
SCE | DOE litigation regulatory liability | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | (72) | ||
SCE | Arbitration with Mitsubishi Heavy Industries | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | (47) | ||
SCE | GHG Reduction Program | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | (10) | ||
SCE | San Onofre base regulatory asset | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | 696 | ||
SCE | Other | |||
Loss Contingencies [Line Items] | |||
Total pre-tax charge | $ 6 |
Commitments and Contingencies (Nuclear Insurance) (Details) - Insurance Claims |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Loss Contingencies [Line Items] | |
Federal loss limit, bodily injury and property damage from nuclear incident | $ 13,400,000,000 |
SCE and other owners of San Onofre and Palo Verde | San Onofre and Palo Verde | |
Loss Contingencies [Line Items] | |
Maximum private primary insurance | 450,000,000 |
ANI Facility Form coverage aggregate limit | 450,000,000 |
Minimum federal requirement of nuclear property insurance | 1,060,000,000 |
SCE | |
Loss Contingencies [Line Items] | |
Maximum assessment per each nuclear incident | 255,000,000 |
Maximum yearly assessment per nuclear incident | 38,000,000 |
Limit on assessment of retrospective premium adjustments, per year, approximate | $ 52,000,000 |
Commitments and Contingencies (Spent Nuclear Fuel) (Details) - USD ($) $ in Millions |
1 Months Ended | ||||
---|---|---|---|---|---|
Apr. 30, 2016 |
Jun. 30, 2010 |
Oct. 30, 2017 |
Feb. 28, 2017 |
Sep. 30, 2016 |
|
Loss Contingencies [Line Items] | |||||
Claim to recover damages incurred | $ 56 | ||||
SCE and other owners of San Onofre and Palo Verde | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 142 | ||||
Litigation settlement | $ 162 | ||||
Claim to recover damages incurred | $ 43 | ||||
SCE | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 112 | ||||
Litigation settlement | $ 124 | ||||
Claim to recover damages incurred | $ 59 | $ 34 |
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Financial Data [Line Items] | |||||||||||
Total operating revenue | $ 3,220 | $ 3,672 | $ 2,965 | $ 2,463 | $ 2,884 | $ 3,767 | $ 2,777 | $ 2,440 | $ 12,320 | $ 11,869 | $ 11,524 |
Operating income (loss) | (16) | 561 | 469 | 479 | 566 | 695 | 381 | 448 | 1,493 | 2,092 | 2,008 |
Net income (loss) | 668 | 1,425 | 1,117 | ||||||||
Income (loss) from continuing operations | (534) | 501 | 309 | 392 | 347 | 451 | 310 | 305 | 668 | 1,413 | 1,082 |
Income (loss) from discontinued operations, net | 0 | 0 | 0 | 0 | 13 | 0 | (2) | 1 | 0 | 12 | 35 |
Net income attributable to common shareholders | $ (545) | $ 470 | $ 278 | $ 362 | $ 329 | $ 421 | $ 280 | $ 281 | $ 565 | $ 1,311 | $ 1,020 |
Basic earnings per share – continuing operations: | |||||||||||
Continuing operations (in dollars per share) | $ (1.67) | $ 1.44 | $ 0.85 | $ 1.11 | $ 0.97 | $ 1.29 | $ 0.87 | $ 0.86 | $ 1.73 | $ 3.99 | $ 3.02 |
Discontinued operations (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.00 | (0.01) | 0.00 | 0.00 | 0.03 | 0.11 |
Total (in dollars per share) | (1.67) | 1.44 | 0.85 | 1.11 | 1.01 | 1.29 | 0.86 | 0.86 | 1.73 | 4.02 | 3.13 |
Diluted earnings per share – continuing operations: | |||||||||||
Continuing operations (in dollars per share) | (1.66) | 1.43 | 0.85 | 1.10 | 0.96 | 1.27 | 0.86 | 0.85 | 1.72 | 3.94 | 2.99 |
Diluted earnings (loss) per share – discontinued operations (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.00 | (0.01) | 0.00 | 0.00 | 0.03 | 0.11 |
Total (in dollars per share) | (1.66) | 1.43 | 0.85 | 1.10 | 1.00 | 1.27 | 0.85 | 0.85 | 1.72 | 3.97 | 3.10 |
Dividends declared per common share (in dollars per share) | 0.6050 | 0.5425 | 0.5425 | 0.5425 | 0.5425 | 0.4800 | 0.4800 | 0.4800 | 2.2325 | 1.9825 | $ 1.7325 |
Common stock prices: | |||||||||||
High (in dollars per share) | 83.38 | 81.58 | 82.82 | 81.33 | 73.81 | 78.72 | 77.71 | 72.34 | 83.38 | 78.72 | |
Low (in dollars per share) | 62.67 | 76.38 | 77.21 | 70.57 | 67.44 | 71.31 | 67.71 | 57.97 | 62.67 | 57.97 | |
Close (in dollars per share) | $ 63.24 | $ 77.17 | $ 78.19 | $ 79.61 | $ 71.99 | $ 72.25 | $ 77.67 | $ 71.89 | $ 63.24 | $ 71.99 | |
Impairment and other charges | $ 738 | $ 21 | $ 5 | ||||||||
Edison International Parent and Other | |||||||||||
Common stock prices: | |||||||||||
Write-down for re-measurement of deferred taxes as a result of the Tax Cuts and Jobs Act | $ 433 | ||||||||||
SCE | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||
Total operating revenue | 3,193 | $ 3,652 | $ 2,953 | $ 2,456 | $ 2,874 | $ 3,752 | $ 2,768 | $ 2,435 | 12,254 | 11,830 | 11,485 |
Operating income (loss) | (4) | 578 | 517 | 507 | 594 | 721 | 429 | 472 | 1,598 | 2,217 | 2,080 |
Net income (loss) | (79) | 497 | 338 | 380 | 359 | 466 | 349 | 325 | 1,136 | 1,499 | 1,111 |
Net income attributable to common shareholders | (109) | 465 | 307 | 349 | 328 | 435 | 318 | 295 | 1,012 | 1,376 | 998 |
Common stock prices: | |||||||||||
Common dividends declared | 212 | $ 191 | $ 191 | $ 191 | $ 191 | $ 170 | $ 170 | $ 170 | 785 | 701 | |
Impairment and other charges | $ 716 | $ 0 | $ 0 | ||||||||
SCE | Revised San Onofre settlement agreement | |||||||||||
Common stock prices: | |||||||||||
Impairment and other charges | 716 | ||||||||||
Impairment and other charges, net of tax | $ 448 |
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