Compensation and Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Pension and Other Postretirement Benefits [Line Items]

Employee Savings Plan Employer Contributions

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

	Edison International		SCE
(in millions)	Years ended December 31,
2020	$	93	$	92
2019	82		81
2018	74		74

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

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

	Edison International						SCE
	Years ended December 31,
(in millions)	2020		2019		2018		2020		2019		2018
Stock-based compensation expense1:
Stock options	$	15	$	13	$	11	$	7	$	7	$	6
Performance shares	5		8		1		2		4		1
Restricted stock units	8		6		7		4		3		4
Other	1		2		2		—		—		—
Total stock-based compensation expense	29		29		21		13		14		11
Income tax benefits related to stock compensation expense	$	4	$	10	$	6	$	3	$	6	$	3

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

Black-Sholes Option-Pricing Model Assumptions

The Black-Scholes option-pricing model requires various assumptions noted in the following table:

	Years ended December 31,
	2020	2019	2018
Expected terms (in years)	5.2	5.5	5.7
Risk-free interest rate	0.4% - 0.6%	1.6% - 2.3%	2.6% - 3.0%
Expected dividend yield	4.2% - 5.0%	3.3% - 4.0%	3.6% - 4.3%
Weighted average expected dividend yield	4.7%	3.9%	3.8%
Expected volatility	24.9% - 26.9%	21.7% -24.1%	20.9% - 21.9%
Weighted average volatility	25.0%	21.8%	20.9%

Summary of Stock Options Activity

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

		Weighted Average
	Stock Options	Exercise Price		Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Edison International:
Outstanding at December 31, 2019	9,278,677	$	62.27
Granted	1,993,954	68.60
Forfeited or expired	(203,340)	65.75
Exercised1	(359,908)	48.59
Outstanding at December 31, 2020	10,709,383	63.85		6.03
Vested and expected to vest at December 31, 2020	10,391,796	63.60		6.17	$	30
Exercisable at December 31, 2020	6,489,876	$	62.08	4.83	$	27
SCE:
Outstanding at December 31, 2019	4,934,702	$	61.01
Granted	1,053,923	68.27
Forfeited or expired	(189,691)	65.75
Exercised1	(302,911)	49.49
Affiliate transfers, net	(5,535)	63.36
Outstanding at December 31, 2020	5,490,488	62.85		5.86
Vested and expected to vest at December 31, 2020	5,325,052	62.50		5.98	$	20
Exercisable at December 31, 2020	3,361,238	$	60.41	4.56	$	19

1 Edison International and SCE recognized tax benefits of $2 million and $2 million, respectively, from stock options exercised in 2020.

Schedule of Unrecognized Compensation Expense

At December 31, 2020, total unrecognized compensation cost related to stock options and the weighted average period the cost is expected to be recognized are as follows:

	Edison International		SCE
Unrecognized compensation cost, net of expected forfeitures (in millions)	$	17	$	9
Weighted average period (in years)	2.3		2.3

Supplemental Data on Stock-based Compensation

Supplemental Data on Stock Options

	Edison International						SCE
	Years ended December 31,
(in millions, except per award amounts)	2020		2019		2018		2020		2019		2018
Stock options:
Weighted average grant date fair value per option granted	$	8.18	$	8.80	$	8.21	$	8.16	$	8.83	$	8.22
Fair value of options vested	2		14		14		2		7		7
Value of options exercised	9		27		10		7		19		7

Summary of Nonvested Share Activity

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

	Equity Awards			Liability Awards
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Edison International:
Nonvested at December 31, 2019	119,843	$	66.03	113,186	$	67.30
Granted	120,938	67.55		—
Forfeited	(7,157)	66.76		(3,825)
Vested1	—	—		(109,361)
Nonvested at December 31, 2020	233,624	$	66.80	—	$	—
SCE:
Nonvested at December 31, 2019	63,172	$	66.27	58,399	$	67.34
Granted	64,133	67.15		—
Forfeited	(6,408)	66.78		(3,409)
Vested1	—	—		(54,578)
Affiliate transfers, net	(253)	71.27		(412)
Nonvested at December 31, 2020	120,644	$	66.70	—	$	—

1    Relates to performance shares that will be paid in 2021 as performance targets were met at December 31, 2020.

Summary of Nonvested Restricted Stock Units Activity

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

	Edison International			SCE
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2019	311,682	$	66.11	159,985	$	66.16
Granted	119,038	68.58		63,042	68.24
Forfeited	(11,294)	63.90		(10,095)	63.93
Vested	(85,553)	78.94		(42,549)	79.11
Affiliate transfers, net	—	—		(1,963)	68.16
Nonvested at December 31, 2020	333,873	$	63.78	168,420	$	63.78

Pension Plans

Pension and Other Postretirement Benefits [Line Items]

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below.

	Edison International						SCE
	Years ended December 31,
(in millions)	2020			2019			2020			2019
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	4,139		$	3,880		$	3,662		$	3,431
Service cost	121			114			117			110
Interest cost	124			155			110			138
Actuarial loss	323			240			292			199
Benefits paid	(231)			(250)			(197)			(216)
Projected benefit obligation at end of year	$	4,476		$	4,139		$	3,984		$	3,662
Change in plan assets
Fair value of plan assets at beginning of year	$	3,755		$	3,321		$	3,541		$	3,124
Actual return on plan assets	584			611			551			576
Employer contributions	62			73			45			57
Benefits paid	(230)			(250)			(197)			(216)
Fair value of plan assets at end of year	4,171			3,755			3,940			3,541
Funded status at end of year	$	(305)		$	(384)		$	(44)		$	(121)
Amounts recognized in the consolidated balance sheets consist of 1:
Current liabilities	(24)			(19)			(2)			(2)
Long-term liabilities	(281)			(365)			(42)			(119)
	$	(305)		$	(384)		$	(44)		$	(121)
Amounts recognized in accumulated other comprehensive loss consist of:
Prior service cost	$	(1)		$	(1)		$	—		$	—
Net loss1	96			95			16			17
	95			94			16			17
Amounts recognized as a regulatory asset	12			87			12			87
Total not yet recognized as expense	$	107		$	181		$	28		$	104
Accumulated benefit obligation at end of year	$	4,238		$	3,968		$	3,776		$	3,529
Pension plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	4,476			4,139			3,984			3,662
Accumulated benefit obligation	4,238			3,968			3,776			3,529
Fair value of plan assets	4,171			3,755			3,940			3,541
Weighted average assumptions used to determine obligations at end of year:
Discount rate	2.38		%	3.11		%	2.38		%	3.11		%
Rate of compensation increase	4.00		%	4.10		%	4.00		%	4.10		%

1    The SCE liability excludes a long-term payable due to Edison International Parent of $139 million and $133 million at December 31, 2020 and 2019, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $16 million and $17 million at December 31, 2020 and 2019, excludes net losses of $41 million and $37 million related to these benefits, respectively.

Expense Components for Plans

Net periodic pension expense components for continuing operations are:

	Edison International						SCE
	Years ended December 31,
(in millions)	2020		2019		2018		2020		2019		2018
Service cost	$	121	$	114	$	126	$	119	$	111	$	123
Non-service cost
Interest cost	124		155		140		114		143		128
Expected return on plan assets	(215)		(205)		(228)		(203)		(194)		(214)
Amortization of prior service cost	2		2		3		1		2		3
Amortization of net loss	10		7		9		7		5		6
Regulatory adjustment (deferred)	16		(3)		15		16		(3)		15
Total non-service benefit	(63)		(44)		(61)		(65)		(47)		(62)
Total expense recognized	$	58	$	70	$	65	$	54	$	64	$	61

Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations:

	Edison International						SCE
	Years ended December 31,
(in millions)	2020		2019		2018		2020		2019		2018
Net loss	$	11	$	19	$	5	$	9	$	21	$	5
Amortization of net loss	(10)		(7)		(9)		(7)		(5)		(6)
Total recognized in other comprehensive loss	1		12		(4)		2		16		(1)
Total recognized in expense and other comprehensive loss	$	59	$	82	$	61	$	56	$	80	$	60

Schedule of Assumptions Used

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

	Years ended December 31,
	2020		2019		2018
Discount rate	3.11	%	4.19	%	3.46	%
Rate of compensation increase	4.10	%	4.10	%	4.10	%
Expected long-term return on plan assets	6.00	%	6.50	%	6.50	%
Interest crediting rate for cash balance account
Starting rate	3.61	%	4.46	%	4.36	%
Ultimate rate	5.00	%	5.75	%	5.75	%
Year ultimate rate is reached	2025		2022		2022

Schedule of Expected Benefit Payments

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

(in millions)	Edison International		SCE
2021	$	294	$	254
2022	297		259
2023	298		262
2024	299		266
2025	302		268
2026 – 2030	1,403		1,317

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, 2020 by asset class and level within the fair value hierarchy:

(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	151	$	1,006	$	—	$	1,157
Corporate stocks3	570		5		—		575
Corporate bonds4	—		601		—		601
Common/collective funds5	—		—		1,017		1,017
Partnerships/joint ventures6	—		—		569		569
Other investment entities7	—		—		137		137
Registered investment companies8	69		—		23		92
Interest-bearing cash	7		—		—		7
Other	—		39		—		39
Total	$	797	$	1,651	$	1,746	$	4,194
Receivables and payables, net							(23)
Combined net plan assets available for benefits							4,171
SCE's share of net plan assets							$	3,940

The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2019 by asset class and level within the fair value hierarchy:

(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	146	$	992	$	—	$	1,138
Corporate stocks3	547		7		—		554
Corporate bonds4	—		572		—		572
Common/collective funds5	—		—		693		693
Partnerships/joint ventures6	—		—		471		471
Other investment entities7	—		—		130		130
Registered investment companies8	133		—		—		133
Interest-bearing cash	7		—		—		7
Other	—		79		—		79
Total	$	833	$	1,650	$	1,294	$	3,777
Receivables and payables, net							(22)
Combined net plan assets available for benefits							3,755
SCE's share of net plan assets							$	3,541

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. Performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (40%) and Morgan Stanley Capital International (MSCI) index (60%), at both December 31, 2020 and 2019.

4    Corporate bonds are diversified. At December 31, 2020 and 2019, respectively, this category includes $54 million and $45 million for collateralized mortgage obligations and other asset backed securities.

5 At December 31, 2020 and 2019, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index (37% and 35%) and Russell 1000 indexes (13% and 17%). In addition, at December 31, 2020 and 2019, respectively, 40% and 28% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 8% and 12% of this category are in non-index U.S. equity fund, which is actively managed.

6    At December 31, 2020 and 2019, respectively, 49% and 51% are invested in private equity funds with investment strategies that include branded consumer products and clean technology companies, 23% and 17% are invested in ABS including distressed mortgages and commercial and residential loans, 4% and 8% are invested in a broad range of financial assets in all global markets. 19% are invested in publicly traded fixed income securities for both periods.

7    At both December 31, 2020 and 2019, other investment entities were invested in (1) emerging market equity securities and (2) 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 addition, investments included fixed income fund used for cash management at December 31, 2020.

PBOP

Pension and Other Postretirement Benefits [Line Items]

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

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

	Edison International						SCE
	Years ended December 31,
(in millions)	2020			2019			2020			2019
Change in benefit obligation
Benefit obligation at beginning of year	$	2,083		$	1,986		$	2,074		$	1,977
Service cost	38			30			37			30
Interest cost	63			77			63			77
Actuarial (gain) loss	(46)			70			(45)			70
Plan participants' contributions	29			29			29			29
Benefits paid	(94)			(109)			(94)			(109)
Benefit obligation at end of year	$	2,073		$	2,083		$	2,064		$	2,074
Change in plan assets
Fair value of plan assets at beginning of year	$	2,465		$	2,133		$	2,464		$	2,133
Actual return on assets	309			401			309			401
Employer contributions	8			11			8			10
Plan participants' contributions	29			29			29			29
Benefits paid	(94)			(109)			(93)			(109)
Fair value of plan assets at end of year	2,717			2,465			2,717			2,464
Funded status at end of year	$	644		$	382		$	653		$	390
Amounts recognized in the consolidated balance sheets consist of:
Long-term assets	$	663		$	393		$	663		$	402
Current liabilities	(10)			(11)			(10)			(12)
Long-term liabilities	(9)			—			—			—
	$	644		$	382		$	653		$	390
Amounts recognized in accumulated other comprehensive loss consist of:
Net loss	$	1		$	2		$	—		$	—
Amounts recognized as a regulatory liability	(671)			(416)			(671)			(416)
Total not yet recognized as income	$	(670)		$	(414)		$	(671)		$	(416)
Weighted average assumptions used to determine obligations at end of year:
Discount rate	2.67		%	3.32		%	2.67		%	3.32		%
Assumed health care cost trend rates:
Rate assumed for following year	6.50		%	6.50		%	6.50		%	6.50		%
Ultimate rate	5.00		%	5.00		%	5.00		%	5.00		%
Year ultimate rate reached	2029			2029			2029			2029

Expense Components for Plans

Net periodic PBOP expense components for continuing operations are:

	Edison International						SCE
	Years ended December 31,
(in millions)	2020		2019		2018		2020		2019		2018
Service cost	$	38	$	30	$	37	$	37	$	30	$	37
Non-service cost
Interest cost	63		77		80		63		77		80
Expected return on plan assets	(119)		(111)		(121)		(119)		(111)		(122)
Amortization of prior service credit	(1)		(1)		(1)		(1)		(1)		(1)
Amortization of net gain	(29)		(17)		—		(29)		(17)		—
Regulatory adjustment	49		29		24		49		29		24
Total non-service benefit	(37)		(23)		(18)		(37)		(23)		(19)
Total expense	$	1	$	7	$	19	$	—	$	7	$	18

Schedule of Assumptions Used

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

	Years ended December 31,
	2020		2019		2018
Discount rate	3.32	%	4.35	%	3.70	%
Expected long-term return on plan assets	4.90	%	5.30	%	5.30	%
Assumed health care cost trend rates:
Current year	6.50	%	6.75	%	6.75	%
Ultimate rate	5.00	%	5.00	%	5.00	%
Year ultimate rate reached	2029		2029		2029

Schedule of Expected Benefit Payments

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

(in millions)	Edison International		SCE
2021	$	83	$	82
2022	84		84
2023	86		86
2024	89		88
2025	90		90
2026 – 2030	475		472

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, 2020 by asset class and level within the fair value hierarchy:

(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	380	$	30	$	—	$	410
Corporate stocks3	224		3		—		227
Corporate notes and bonds4	—		1,079		—		1,079
Common/collective funds5	—		—		693		693
Partnerships6	—		—		81		81
Registered investment companies7	65		—		—		65
Interest bearing cash	—		26		—		26
Other8	—		132		—		132
Total	$	669	$	1,270	$	774	$	2,713
Receivables and payables, net							4
Combined net plan assets available for benefits							2,717
SCE's share of net plan assets							$	2,717

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, 2019 by asset class and level within the fair value hierarchy:

(in millions)	Level 1		Level 2		NAV1		Total
U.S. government and agency securities2	$	386	$	63	$	—	$	449
Corporate stocks3	242		2		—		244
Corporate notes and bonds4	—		885		—		885
Common/collective funds5	—		—		652		652
Partnerships6	—		—		68		68
Registered investment companies7	66		—		—		66
Interest bearing cash	—		17		—		17
Other8	2		101		—		103
Total	$	696	$	1,068	$	720	$	2,484
Receivables and payables, net							(19)
Combined net plan assets available for benefits							2,465
SCE's share of net plan assets							$	2,464

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 (70% and 68%) and the MSCI All Country World Index (30% and 32%) for 2020 and 2019, respectively.

4    Corporate notes and bonds are diversified and include approximately $170 million and $49 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2020 and 2019, respectively.

5    At December 31, 2020 and 2019, respectively, 70% and 74% 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. 22% and 19% 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.

6    At December 31, 2020 and 2019, respectively, 46% and 55% 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. 36%

and 28% of the remaining partnerships category are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks. 18% and 15% are invested in a broad range of financial assets in all global markets.

7    At both December 31, 2020 and 2019, registered investment companies were primarily invested in a money market fund and exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index and international small cap equities.

8    Other includes $61 million and $66 million of municipal securities at December 31, 2020 and 2019, respectively.