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Compensation and Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Pension and Other Postretirement Benefits  
Employee Savings Plan Employer Contributions
The following employer contributions were made for continuing operations:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2013
$
76

 
$
76

2012
85

 
84

2011
84

 
83
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]
The following table summarizes total expense and tax benefits (expense) associated with stock based compensation:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Stock-based compensation expense1:
 
 
 
 
 
 
 
 
 
 
 
   Stock options
$
15

 
$
18

 
$
14

 
$
11

 
$
10

 
$
9

   Performance shares
4

 
7

 
5

 
2

 
4

 
3

   Restricted stock units
7

 
9

 
6

 
4

 
5

 
4

   Other
1

 
1

 
5

 
—

 
—

 
4

Total stock-based compensation expense
$
27

 
$
35

 
$
30

 
$
17

 
$
19

 
$
20

Income tax benefits related to stock compensation expense
$
11

 
$
14

 
$
12

 
$
7

 
$
8

 
$
8

Excess tax benefits (expense)2
5

 
(6
)
 
12

 
2

 
(13
)
 
11

1 
Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income.
2 Reflected in "Settlements of stock-based compensation, net" in the financing section of Edison International's and SCE's consolidated statements of cash flows.
Black-Sholes Option-Pricing Model Assumptions
The Black-Scholes option-pricing model requires various assumptions noted in the following table:
 
Years ended December 31,
 
2013
 
2012
 
2011
Expected terms (in years)
6.2
 
6.9
 
7.0
Risk-free interest rate
1.0% – 2.1%
 
1.1% – 1.7%
 
1.4% – 3.1%
Expected dividend yield
2.7% – 3.1%
 
2.8% – 3.1%
 
3.1% – 3.5%
Weighted-average expected dividend yield
2.8%
 
3.0%
 
3.4%
Expected volatility
17.7% – 18.6%
 
17.4% – 18.3%
 
18.2% – 19.0%
Weighted-average volatility
17.7%
 
18.3%
 
18.9%
Summary of Stock Options Activity
The following is a summary of the status of Edison International's stock options:
 
 
 
Weighted-Average
 
 
 
Stock options
 
Exercise
Price
 
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic Value
(in millions)
Edison International:
 
 
 
 
 
 
 
Outstanding at December 31, 2012
19,231,723

 
$
37.96

 
 
 
 

Granted
2,778,766

 
48.46

 
 
 
 

Expired
(158,107
)
 
49.69

 
 
 
 

Forfeited
(540,782
)
 
42.55

 
 
 
 

Exercised
(4,084,755
)
 
34.54

 
 
 
 

Outstanding at December 31, 2013
17,226,845

 
40.22

 
5.78
 
 

Vested and expected to vest at December 31, 2013
16,715,413

 
40.13

 
5.71
 
$
115

Exercisable at December 31, 2013
10,118,484

 
38.26

 
4.24
 
88

SCE:
 
 
 
 
 
 
 
Outstanding at December 31, 2012
10,308,461

 
$
37.73

 
 
 
 

Granted
1,792,688

 
48.48

 
 
 
 

Expired
(97,000
)
 
49.63

 
 
 
 

Forfeited
(402,548
)
 
43.47

 
 
 
 

Exercised
(2,643,487
)
 
34.94

 
 
 
 

Transfers, net
87,884

 
36.67

 
 
 
 
Outstanding at December 31, 2013
9,045,998

 
40.28

 
5.92
 
 

Vested and expected to vest at December 31, 2013
8,737,930

 
40.17

 
5.84
 
$
60

Exercisable at December 31, 2013
5,080,978

 
37.96

 
4.29
 
46
Schedule of Unrecognized Compensation Expense
At December 31, 2013, total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows:
(in millions)
Edison International
 
SCE
Unrecognized compensation cost, net of expected forfeitures
$
13

 
$
10

Weighted-average period (in years)
2.2

 
2.3
Supplemental Data on Stock-based Compensation [Table Text Block]
Supplemental Data on Stock Options
 
Edison International
 
SCE
 
Years ended December 31,
(in millions, except per award amounts)
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Stock options:
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value per option granted
$
5.40

 
$
5.22

 
$
5.61

 
$
5.38

 
$
5.22

 
$
5.61

Fair value of options vested
17

 
17

 
18

 
10

 
10

 
10

Cash used to purchase shares to settle options
199

 
169

 
90

 
130

 
96

 
46

Cash from participants to exercise stock options
140

 
101

 
59

 
92

 
59

 
28

Value of options exercised
59

 
68

 
31

 
38

 
37

 
18

Tax benefits from options exercised
24

 
27

 
12

 
15

 
15

 
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
Fair Value
Edison International:
 
 
 
 
 
 
 
Nonvested at December 31, 2012
242,421

 
$
38.86

 
242,071

 
$
46.23

Granted
73,679

 
50.87

 
73,483

 
 

Forfeited
(19,239
)
 
42.10

 
(19,197
)
 
 
Vested1
(140,164
)
 
30.97

 
(140,053
)
 
 

Nonvested at December 31, 2013
156,697

 
51.17

 
156,304

 
51.72

SCE:
 
 
 
 
 
 
 
Nonvested at December 31, 2012
131,940

 
$
38.87

 
131,691

 
$
46.19

Granted
47,548

 
50.92

 
47,377

 
 

Forfeited
(13,065
)
 
43.42

 
(13,029
)
 
 
Vested1
(76,705
)
 
31.02

 
(76,624
)
 
 

Affiliate transfers, net
943

 
40.15

 
942

 
 
Nonvested at December 31, 2013
90,661

 
51.19

 
90,357

 
51.22


1 
Relates to performance shares that will be paid in 2014 as performance targets were met at December 31, 2013
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, 2012
679,468

 
$
38.09

 
368,553

 
$
38.07

Granted
154,401

 
48.45

 
99,616

 
48.47

Forfeited
(38,343
)
 
42.15

 
(26,328
)
 
42.96

Vested
(255,837
)
 
34.17

 
(151,836
)
 
34.59

Affiliate transfers, net
—

 
—

 
2,834

 
38.10

Nonvested at December 31, 2013
539,689

 
42.70

 
292,839

 
42.98
Accrued Severance Liability Workforce Reduction [Table Text Block]
The following table provides a summary of changes in the accrued severance liability associated with these reductions:
(in millions)
 
 
Balance at January 1, 2013
 
$
104

Additions
 
101

Payments
 
(151
)
Balance at December 31, 2013
 
$
54
Pension Plans
  
Pension and Other Postretirement Benefits  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]
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)
2013
 
2012
 
2013
 
2012
Change in projected benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
4,948

 
$
4,493

 
$
4,434

 
$
4,112

Service cost
174

 
179

 
154

 
156

Interest cost
182

 
196

 
164

 
176

Liability transferred to Edison International
—

 
23

 
—

 
(92
)
Actuarial (gain) loss
(330
)
 
370

 
(277
)
 
318

Curtailment
—

 
(26
)
 
—

 
—

Benefits paid
(796
)
 
(253
)
 
(754
)
 
(236
)
Deconsolidation of EME1
—

 
(34
)
 
—

 
—

Projected benefit obligation at end of year
$
4,178

 
$
4,948

 
$
3,721

 
$
4,434

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
3,542

 
$
3,153

 
$
3,320

 
$
2,971

Actual return on plan assets
540

 
460

 
505

 
431

Employer contributions
191

 
182

 
165

 
154

Benefits paid
(796
)
 
(253
)
 
(754
)
 
(236
)
Fair value of plan assets at end of year
$
3,477

 
$
3,542

 
$
3,236

 
$
3,320

Funded status at end of year
$
(701
)
 
$
(1,406
)
 
$
(485
)
 
$
(1,114
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
Current liabilities
$
(15
)
 
$
(19
)
 
$
(5
)
 
$
(6
)
Long-term liabilities
(686
)
 
(1,387
)
 
(480
)
 
(1,108
)
 
$
(701
)
 
$
(1,406
)
 
$
(485
)
 
$
(1,114
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
Net loss
$
30

 
$
127

 
$
33

 
$
40

Amounts recognized as a regulatory asset:
 
 
 
 
 
 
 
Prior service cost
$
25

 
$
30

 
$
25

 
$
30

Net loss
328

 
999

 
328

 
999

 
$
353

 
$
1,029

 
$
353

 
$
1,029

Total not yet recognized as expense
$
383

 
$
1,156

 
$
386

 
$
1,069

Accumulated benefit obligation at end of year
$
4,015

 
$
4,609

 
$
3,599

 
$
4,171

Pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
4,178

 
$
4,948

 
$
3,721

 
$
4,434

Accumulated benefit obligation
4,015

 
4,609

 
3,599

 
4,171

Fair value of plan assets
3,477

 
3,542

 
3,236

 
3,320

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
4.75
%
 
3.75
%
 
4.75
%
 
3.75
%
Rate of compensation increase
4.0
%
 
4.5
%
 
4.0
%
 
4.5
%

1 
The retirement plan liabilities of EME have been deconsolidated as a result of the bankruptcy filing by EME, except for qualified pension plans that Edison International is jointly liable with EME under the Internal Revenue Code. See Note 16 for further information.
Expense Components for Plans
Pension expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Service cost
$
162

 
$
163

 
$
149

 
$
159

 
$
160

 
$
145

Interest cost
170

 
183

 
196

 
167

 
180

 
192

Expected return on plan assets
(222
)
 
(217
)
 
(226
)
 
(222
)
 
(217
)
 
(225
)
Settlement costs1
87

 
5

 
—

 
85

 
4

 
—

Amortization of prior service cost
5

 
3

 
7

 
5

 
3

 
7

Amortization of net loss2
39

 
61

 
25

 
35

 
57

 
22

Expense under accounting standards
241

 
198

 
151

 
229

 
187

 
141

Regulatory adjustment (deferred)
(53
)
 
(19
)
 
(28
)
 
(53
)
 
(19
)
 
(28
)
Total expense recognized
$
188

 
$
179

 
$
123

 
$
176

 
$
168

 
$
113


1 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was $2 million for the year ended December 31, 2013.
2 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $11 million and $7 million for the year ended December 31, 2013, respectively.
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 income for continuing operations:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Net (gain) loss
$
(33
)
 
$
36

 
$
13

 
$
(24
)
 
$
20

 
$
8

Amortization of net loss
(13
)
 
(10
)
 
(11
)
 
(7
)
 
(6
)
 
(7
)
Total recognized in other comprehensive loss
$
(46
)
 
$
26

 
$
2

 
$
(31
)
 
$
14

 
$
1

Total recognized in expense and other comprehensive income
$
142

 
$
205

 
$
125

 
$
145

 
$
182

 
$
114
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2013
The estimated pension amounts that will be amortized to expense in 2014 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized net loss to be amortized1
$
5

 
$
2

Unrecognized prior service cost to be amortized
5

 
5
Schedule of Assumptions Used [Table Text Block]
Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations:
 
Years ended December 31,
 
2013
 
2012
 
2011
Discount rate
4.13
%
 
4.5
%
 
5.25
%
Rate of compensation increase
4.5
%
 
4.5
%
 
5.0
%
Expected long-term return on plan assets
7.0
%
 
7.5
%
 
7.5
%
Schedule of Expected Benefit Payments [Table Text Block]
The following benefit payments, which reflect expected future service, are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2014
$
265

 
$
202

2015
240

 
208

2016
249

 
214

2017
254

 
219

2018
257

 
227

2019 – 2023
1,323

 
1,196
Schedule of Changes in Fair Value of Level 3 Investments
The following table sets forth a summary of changes in the fair value of Edison International's and SCE's Level 3 investments:
(in millions)
2013
 
2012
Fair value, net at beginning of period
$
414

 
$
448

Actual return on plan assets:
 
 
 
Relating to assets still held at end of period
61

 
88

Relating to assets sold during the period
10

 
13

Purchases
45

 
98

Dispositions
(140
)
 
(233
)
Transfers in and/or out of Level 3
—

 
—

Fair value, net at end of period
$
390

 
$
414
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, 2013 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
U.S. government and agency securities1
$
195

 
$
471

 
$
—

 
$
666

Corporate stocks2
653

 
—

 
—

 
653

Corporate bonds3
—

 
553

 
—

 
553

Common/collective funds4
—

 
546

 
—

 
546

Partnerships/joint ventures5
—

 
148

 
390

 
538

Other investment entities6
—

 
282

 
—

 
282

Registered investment companies7
112

 
81

 
—

 
193

Interest-bearing cash
12

 
—

 
—

 
12

Other
6

 
109

 
—

 
115

Total
$
978

 
$
2,190

 
$
390

 
$
3,558

Receivables and payables, net
 

 
 

 
 

 
(81
)
Net plan assets available for benefits
 

 
 

 
 

 
$
3,477

SCE's share of net plan assets
 
 
 
 
 
 
$
3,236

Edison International Parent and Other's share of net plan assets
 
 
 
 
 
 
6

EME's share of net plan assets
 
 
 
 
 
 
235

The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2012 by asset class and level within the fair value hierarchy:
(in millions)
Level 1

 
Level 2

 
Level 3

 
Total

U.S. government and agency securities1
$
242

 
$
350

 
$
—

 
$
592

Corporate stocks2
743

 
—

 
—

 
743

Corporate bonds3
—

 
508

 
—

 
508

Common/collective funds4
—

 
635

 
—

 
635

Partnerships/joint ventures5
—

 
166

 
414

 
580

Other investment entities6
—

 
271

 
—

 
271

Registered investment companies7
98

 
28

 
—

 
126

Interest-bearing cash
24

 
—

 
—

 
24

Other
1

 
100

 
—

 
101

Total
$
1,108

 
$
2,058

 
$
414

 
$
3,580

Receivables and payables, net
 

 
 

 
 

 
(38
)
Net plan assets available for benefits
 

 
 

 
 

 
$
3,542

SCE's share of net plan assets
 
 
 
 
 
 
$
3,320

Edison International Parent and Other's share of net plan assets
 
 
 
 
 
 
7

EME's share of net plan assets
 
 
 
 
 
 
215

1 
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.
2 
Corporate stocks are diversified. For 2013 and 2012, respectively, performance is primarily benchmarked against the Russell Indexes (51% and 60%) and Morgan Stanley Capital International (MSCI) index (49% and 40%).
3 
Corporate bonds are diversified. At December 31, 2013 and 2012, respectively, this category includes $78 million and $65 million for collateralized mortgage obligations and other asset backed securities of which $15 million and $7 million are below investment grade.
4 
At December 31, 2013 and 2012, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's (S&P 500) Index (27% and 29%), Russell 1000 indexes (28% and 28%) and the MSCI Europe, Australasia and Far East (EAFE) Index (15% and 11%). A non-index U.S. equity fund representing 23% and 25% of this category for 2013 and 2012, respectively, is actively managed. Another fund representing 6% and 6% of this category for 2013 and 2012, respectively, is a global asset allocation fund.
5 
Partnerships/joint venture Level 2 investments consist primarily of a partnership which invests in publicly traded fixed income securities, primarily from the banking and finance industry and U.S. government agencies. At December 31, 2013 and 2012, respectively, approximately 64% and 56% of the Level 3 partnerships are invested in (1) asset backed securities, including distressed mortgages and (2) commercial and residential loans and debt and equity of banks. The remaining Level 3 partnerships are invested in small private equity and venture capital funds. Investment strategies for these funds include branded consumer products, early stage technology, California geographic focus, and diversified US and non-US fund-of-funds.
6 
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.
7 
Level 1 of registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. Level 2 primarily consisted of a short-term bond fund.
Postretirement Benefits Other Than Pensions
  
Pension and Other Postretirement Benefits  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]
Information on PBOP Plan assets and benefit obligations for continuing and discontinued operations is shown below:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2013
 
2012
 
2013
 
2012
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,460

 
$
2,553

 
$
2,452

 
$
2,415

Service cost
49

 
47

 
48

 
47

Interest cost
98

 
108

 
97

 
108

Special termination benefits
11

 
2

 
11

 
2

Actuarial gain
(313
)
 
(86
)
 
(312
)
 
(86
)
Plan participants' contributions
18

 
16

 
18

 
16

Medicare Part D subsidy received
—

 
4

 
—

 
4

Benefits paid
(103
)
 
(54
)
 
(103
)
 
(54
)
Deconsolidation of EME1
—

 
(130
)
 
—

 
—

Benefit obligation at end of year
$
2,220

 
$
2,460

 
$
2,211

 
$
2,452

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
1,800

 
$
1,570

 
$
1,800

 
$
1,570

Actual return on assets
317

 
212

 
317

 
212

Employer contributions
33

 
52

 
33

 
52

Plan participants' contributions
18

 
16

 
18

 
16

Medicare Part D subsidy received
—

 
4

 
—

 
4

Benefits paid
(103
)
 
(54
)
 
(103
)
 
(54
)
Fair value of plan assets at end of year
$
2,065

 
$
1,800

 
$
2,065

 
$
1,800

Funded status at end of year
$
(155
)
 
$
(660
)
 
$
(146
)
 
$
(652
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
Current liabilities
$
(17
)
 
$
(18
)
 
$
(16
)
 
$
(18
)
Long-term liabilities
(138
)
 
(642
)
 
(130
)
 
(634
)
 
$
(155
)
 
$
(660
)
 
$
(146
)
 
$
(652
)
Amounts recognized in accumulated other comprehensive loss (income) consist of:
 
 
 
 
 
 
 
    Net loss
$
4

 
$
5

 
$
—

 
$
—

Amounts recognized as a regulatory asset (liability):
 
 
 
 
 
 
 
Prior service credit
$
(54
)
 
$
(89
)
 
$
(54
)
 
$
(89
)
Net loss
69

 
610

 
69

 
610

 
$
15

 
$
521

 
$
15

 
$
521

Total not yet recognized as expense
$
19

 
$
526

 
$
15

 
$
521

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
5.0
%
 
4.25
%
 
5.0
%
 
4.25
%
Assumed health care cost trend rates:
 
 
 
 
 
 
 
Rate assumed for following year
7.75
%
 
8.5
%
 
7.75
%
 
8.5
%
Ultimate rate
5.0
%
 
5.0
%
 
5.0
%
 
5.0
%
Year ultimate rate reached
2020

 
2020

 
2020

 
2020

1
The postretirement plan liabilities of EME have been deconsolidated as a result of the bankruptcy filing by EME. EME Homer City, a subsidiary of EME terminated the benefits of its employees in the PBOP Plan during 2012. In January 2014, EME settled and the Bankruptcy Court approved the settlement of all the EME Homer City employee claims to the EME Homer City PBOP Plan. EME has requested approval of the Bankruptcy Court to terminate the benefits of its employees and employees of its subsidiaries in the PBOP Plan upon confirmation of their Plan of Reorganization. Participation in the PBOP Plan by employees of EME and its subsidiaries (other than Homer City) has been permitted under EME's shared services agreement approved by the Bankruptcy Court subject to funding of paid claims. Edison International is not obligated to continue to provide benefits to EME employees under the PBOP Plan, nor can the VEBA Trusts be used to pay for benefits of EME participants. See Note 16 for further information.
Expense Components for Plans
expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Service cost
$
49

 
$
47

 
$
40

 
$
48

 
$
47

 
$
40

Interest cost
98

 
108

 
115

 
97

 
108

 
114

Expected return on plan assets
(114
)
 
(108
)
 
(111
)
 
(114
)
 
(109
)
 
(111
)
Special termination benefits1
11

 
2

 
—

 
11

 
2

 
—

Amortization of prior service credit
(36
)
 
(35
)
 
(35
)
 
(35
)
 
(35
)
 
(35
)
Amortization of net loss
24

 
39

 
26

 
24

 
39

 
26

Total expense
$
32

 
$
53

 
$
35

 
$
31

 
$
52

 
$
34
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized During 2013
The estimated PBOP amounts that will be amortized to expense in 2014 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized prior service credit to be amortized
$
(36
)
 
$
(36
)
Schedule of Assumptions Used [Table Text Block]
Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations:
 
Years ended December 31,
 
2013
 
2012
 
2011
Discount rate
4.25
%
 
4.75
%
 
5.5
%
Expected long-term return on plan assets
6.7
%
 
7.0
%
 
7.0
%
Assumed health care cost trend rates:
 
 
 
 
 
Current year
8.5
%
 
9.5
%
 
9.75
%
Ultimate rate
5.0
%
 
5.25
%
 
5.5
%
Year ultimate rate reached
2020

 
2019

 
2019
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate
A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations:
 
Edison International
 
SCE
(in millions)
One-Percentage-Point Increase
 
One-Percentage-Point Decrease
 
One-Percentage-Point Increase
 
One-Percentage-Point Decrease
Effect on accumulated benefit obligation as of December 31, 2013
$
229

 
$
(191
)
 
$
228

 
$
(190
)
Effect on annual aggregate service and interest costs
11

 
(9
)
 
11

 
(9
)
Schedule of Expected Benefit Payments [Table Text Block]
The following benefit payments are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2014
$
92

 
$
92

2015
101

 
100

2016
107

 
106

2017
113

 
113

2018
119

 
119

2019 – 2023
668

 
666
Schedule of Changes in Fair Value of Level 3 Investments
The following table sets forth a summary of changes in the fair value of PBOP Level 3 investments:
(in millions)
2013
 
2012
Fair value, net at beginning of period
$
166

 
$
130

Actual return on plan assets
 
 
 
Relating to assets still held at end of period
24

 
20

Relating to assets sold during the period
5

 
5

Purchases
23

 
35

Dispositions
(54
)
 
(24
)
Transfers in and/or out of Level 3
—

 
—

Fair value, net at end of period
$
164

 
$
166
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels
The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2013 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Common/collective funds1
$
—

 
$
863

 
$
—

 
$
863

Corporate stocks2
451

 
—

 
—

 
451

Corporate notes and bonds3
—

 
250

 
—

 
250

Partnerships4
—

 
20

 
164

 
184

U.S. government and agency securities5
118

 
36

 
—

 
154

Registered investment companies6
52

 
5

 
—

 
57

Interest bearing cash
19

 
—

 
—

 
19

Other7
7

 
78

 
—

 
85

Total
$
647

 
$
1,252

 
$
164

 
$
2,063

Receivables and payables, net
 

 
 

 
 

 
2

Combined net plan assets available for benefits
 

 
 

 
 

 
$
2,065

The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2012 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Common/collective funds1
$
—

 
$
723

 
$
—

 
$
723

Corporate stocks2
361

 
—

 
—

 
361

Corporate notes and bonds3
—

 
210

 
—

 
210

Partnerships4
—

 
17

 
166

 
183

U.S. government and agency securities5
131

 
31

 
—

 
162

Registered investment companies6
68

 
—

 
—

 
68

Interest bearing cash
24

 
—

 
—

 
24

Other7
6

 
104

 
—

 
110

Total
$
590

 
$
1,085

 
$
166

 
$
1,841

Receivables and payables, net
 

 
 

 
 

 
(41
)
Combined net plan assets available for benefits
 

 
 

 
 

 
$
1,800

1 
At December 31, 2013 and 2012, respectively, 60% and 60% of the common/collective assets are invested in a large cap index fund which seeks to track performance of the Russell 1000 index. 23% and 23% of the assets in this category are in index funds which seek to track performance in the MSCI Europe, Australasia and Far East (EAFE) Index. 6% and 6% of this category are invested in a privately managed bond fund and 7% and 6% in a fund which invests in equity securities the fund manager believes are undervalued.
2 
Corporate stock performance is primarily benchmarked against the Russell Indexes (50% and 50%) and the MSCI All Country World (ACWI) index (50% and 50%) for 2013 and 2012, respectively.
3 
Corporate notes and bonds are diversified and include approximately $29 million and $20 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2013 and 2012, respectively.
4 
At December 31, 2013 and 2012, respectively, 78% and 82% of the Level 3 partnerships category is invested in (1) asset backed securities including distressed mortgages, (2) distressed companies and (3) commercial and residential loans and debt and equity of banks.
5 
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.
6 
Level 1 registered investment companies consist of an investment grade corporate bond mutual fund and a money market fund.
7 
Other includes $76 million and $73 million of municipal securities at December 31, 2013 and 2012, respectively.