Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

The cash equivalents were as follows:



	Edison International				SCE
	December 31,
(in millions)	2015		2014		2015		2014
Money market funds	$	37	$	35	$	8	$	5

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:



	Edison International				SCE
	December 31,
(in millions)	2015		2014		2015		2014
Book balances reclassified to accounts payable	$	162	$	180	$	158	$	177

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:



	Estimated Useful Lives	Weighted-Average Useful Lives
Generation plant	10 years to 57 years	38 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

Reconciliation of the Changes in ARO Liability

The following table summarizes the changes in SCE's ARO liability, including San Onofre and Palo Verde:



	December 31,
(in millions)	2015			2014
Beginning balance	$	2,819		$	3,418
Accretion¹	173			192
Revisions	(14		)	(790		)
Liabilities settled	(216		)	(1		)
Ending balance	$	2,762		$	2,819


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.

Amortization of deferred financing costs

Amortization of deferred financing costs charged to interest expense is as follows:



	Edison International						SCE
	Years ended December 31,
(in millions)	2015		2014		2013		2015		2014		2013
Amortization of deferred financing costs charged to interest expense	$	33	$	36	$	33	$	28	$	32	$	32

EPS Attributable to Edison International Common Shareholders

EPS attributable to Edison International common shareholders was computed as follows:



	Years ended December 31,
(in millions)	2015			2014			2013
Basic earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	985		$	1,427		$	879
Participating securities dividends	(1		)	(1		)	—
Income from continuing operations available to common shareholders	$	984		$	1,426		$	879
Weighted average common shares outstanding	326			326			326
Basic earnings per share – continuing operations	$	3.02		$	4.38		$	2.70
Diluted earnings per share – continuing operations:
Income from continuing operations available to common shareholders	$	984		$	1,426		$	879
Income impact of assumed conversions	1			1			1
Income from continuing operations available to common shareholders and assumed conversions	$	985		$	1,427		$	880
Weighted average common shares outstanding	326			326			326
Incremental shares from assumed conversions	3			3			3
Adjusted weighted average shares – diluted	329			329			329
Diluted earnings per share – continuing operations	$	2.99		$	4.33		$	2.67