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Income Taxes
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8.Income Taxes

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:

    

Edison International

    

SCE

    

Three months ended March 31, 

(in millions)

    

2021

    

2020

    

2021

    

2020

Income from operations before income taxes

$

254

$

129

$

299

$

174

Provision for income tax at federal statutory rate of 21%

 

53

 

27

 

63

 

37

Increase (decrease) in income tax from:

 

  

 

  

 

  

 

  

State tax, net of federal benefit

 

(7)

 

(13)

 

(4)

 

(12)

Property-related

 

(83)

 

(78)

 

(83)

 

(78)

Change related to uncertain tax position1

 

 

(15)

 

 

(17)

Other

 

1

 

(5)

 

 

(5)

Total income tax benefit

$

(36)

$

(84)

$

(24)

$

(75)

Effective tax rate

 

(14.2)

%  

 

(65.1)

%

 

(8.0)

%  

 

(43.1)

%

1Primarily relates to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit.

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 11.

Tax Disputes

Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2016 – 2019 and 2013 – 2019, respectively. Tax years 2007 – 2012 are currently subject to a settlement proceeding with the California Franchise Tax Board. Edison International does not expect to resolve these tax years within the next 12 months. Any impacts cannot be reasonably estimated until further progress is made.