Compensation and Benefit Plans

Pension Plans

Edison International made contributions of $45 million during the six months ended June 30, 2015, which includes contributions of $38 million by SCE. Edison International expects to make contributions of $76 million during the remainder of 2015, which includes $54 million from SCE. Annual contributions made by SCE to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms, pending the outcome of the 2015 GRC decision. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense.

Pension expense components for continuing operations are:



	Three months ended June 30,						Six months ended June 30,
(in millions)	2015			2014			2015			2014
Edison International:
Service cost	$	35		$	29		$	70		$	59
Interest cost	42			48			83			93
Expected return on plan assets	(57		)	(60		)	(114		)	(117		)
Amortization of prior service cost	1			2			2			3
Amortization of net loss¹	9			1			18			2
Expense under accounting standards	$	30		$	20		$	59		$	40
Regulatory adjustment	(2		)	30			(3		)	61
Total expense recognized	$	28		$	50		$	56		$	101
SCE:
Service cost	$	34		$	29		$	69		$	58
Interest cost	37			44			75			88
Expected return on plan assets	(54		)	(56		)	(107		)	(112		)
Amortization of prior service cost	2			1			3			2
Amortization of net loss¹	8			1			15			1
Expense under accounting standards	$	27		$	19		$	55		$	37
Regulatory adjustment	(1		)	30			(2		)	61
Total expense recognized	$	26		$	49		$	53		$	98

Includes the amount of net loss reclassified from other comprehensive income. The amount reclassified for Edison International and SCE was $4 million and $2 million, respectively, for the three months ended June 30, 2015, and $7 million and $4 million, respectively, for the six months ended June 30, 2015. The amount reclassified for Edison International and SCE was $1 million and $1 million, respectively, for the three months ended June 30, 2014 and $3 million and $2 million, respectively, for the six months ended June 30, 2014.

Postretirement Benefits Other Than Pensions

Edison International made contributions of $30 million during the six months ended June 30, 2015 and expects to make contributions of $29 million during the remainder of 2015, substantially all of which are expected to be made by SCE. Annual contributions 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, pending the outcome of the 2015 GRC decision. Benefits under these plans, with some exceptions, are generally unvested and subject to change. Under the terms of the Edison International Health and Welfare Plan ("PBOP Plan") each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of all PBOP benefits with respect to its employees and former employees. A participating employer may terminate the PBOP benefits with respect to its employees and former employees, as may SCE (as Plan sponsor), and, accordingly, the participants' PBOP benefits are not vested benefits.

PBOP expense components for continuing operations are:



	Three months ended June 30,						Six months ended June 30,
(in millions)	2015			2014			2015			2014
Edison International:
Service cost	$	12		$	11		$	24		$	22
Interest cost	28			27			57			54
Expected return on plan assets	(29		)	(28		)	(57		)	(56		)
Amortization of prior service cost	(3		)	(9		)	(6		)	(18		)
Amortization of net loss	6			—			12			—
Total expense	$	14		$	1		$	30		$	2
SCE:
Service cost	$	12		$	11		$	24		$	22
Interest cost	28			27			56			54
Expected return on plan assets	(28		)	(28		)	(56		)	(56		)
Amortization of prior service cost	(3		)	(9		)	(6		)	(18		)
Amortization of net loss	5			—			11			—
Total expense	$	14		$	1		$	29		$	2

Workforce Reductions

SCE continues to focus on productivity improvements to mitigate rate pressure from its capital program, optimize its cost structure and improve operational efficiency, which is expected to result in further workforce reductions through 2016. During the second quarter of 2015, SCE increased the estimated impact for workforce reduction approved through the end of the quarter. During the second quarter of 2014, SCE increased the estimated impact for workforce reductions related to transferring certain information technology activities to third parties.

The following table provides a summary of changes in the accrued severance liability associated with these reductions:



(in millions)
Balance at January 1, 2015	$	35
Additions	10
Payments	(24		)
Balance at June 30, 2015	$	21

The liability presented in the table above is reflected in "Other current liabilities" on the consolidated balance sheets. The severance costs are included in "Operation and maintenance" on the consolidated income statements.