XML 58 R38.htm IDEA: XBRL DOCUMENT v3.3.1.900
Compensation and Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2015
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,
2015
$
73

 
$
72

2014
71

 
70

2013
76

 
76
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table summarizes total expense and tax benefits (expense) associated with stock based compensation:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Stock-based compensation expense1:
 
 
 
 
 
 
 
 
 
 
 
   Stock options
$
14

 
$
16

 
$
15

 
$
8

 
$
8

 
$
11

   Performance shares
7

 
16

 
4

 
4

 
8

 
2

   Restricted stock units
7

 
7

 
7

 
4

 
4

 
4

   Other
1

 
1

 
1

 
—

 
—

 
—

Total stock-based compensation expense
$
29

 
$
40

 
$
27

 
$
16

 
$
20

 
$
17

Income tax benefits related to stock compensation expense
$
12

 
$
16

 
$
11

 
$
7

 
$
8

 
$
7

Excess tax benefits2
15

 
15

 
5

 
23

 
20

 
2

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 and in "Common stock" in Edison International's consolidated balance sheets and "Additional paid-in capital" in SCE's consolidated balance sheets.
Black-Sholes Option-Pricing Model Assumptions
The Black-Scholes option-pricing model requires various assumptions noted in the following table:
 
Years ended December 31,
 
2015
 
2014
 
2013
Expected terms (in years)
5.9
 
6.0
 
6.2
Risk-free interest rate
1.6% – 2.1%
 
1.8% – 2.1%
 
1.0% – 2.1%
Expected dividend yield
2.6% – 3.2%
 
2.4% – 2.7%
 
2.7% – 3.1%
Weighted-average expected dividend yield
2.6%
 
2.7%
 
2.8%
Expected volatility
16.4% – 17.0%
 
17.8% – 19.1%
 
17.7% – 18.6%
Weighted-average volatility
16.5%
 
18.9%
 
17.7%
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, 2014
13,618,735

 
$
42.84

 
 
 
 

Granted
2,030,342

 
63.57

 
 
 
 

Expired
—

 
—

 
 
 
 

Forfeited
(171,107
)
 
51.87

 
 
 
 

Exercised
(2,611,373
)
 
43.14

 
 
 
 

Outstanding at December 31, 2015
12,866,597

 
45.93

 
5.84
 
 

Vested and expected to vest at December 31, 2015
12,762,577

 
45.81

 
5.82
 
$
180

Exercisable at December 31, 2015
8,928,807

 
40.79

 
4.73
 
$
165

SCE:
 
 
 
 
 
 
 
Outstanding at December 31, 2014
6,002,160

 
$
43.82

 
 
 
 

Granted
1,099,566

 
63.52

 
 
 
 

Expired
—

 
—

 
 
 
 

Forfeited
(109,719
)
 
53.45

 
 
 
 

Exercised
(1,085,438
)
 
41.74

 
 
 
 

Transfers, net
(66,512
)
 
40.88

 
 
 
 
Outstanding at December 31, 2015
5,840,057

 
47.77

 
6.20
 
 

Vested and expected to vest at December 31, 2015
5,771,064

 
47.62

 
6.17
 
$
72

Exercisable at December 31, 2015
3,751,272

 
42.17

 
4.99
 
$
64
Schedule of Unrecognized Compensation Expense
At December 31, 2015, 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

 
$
9

Weighted-average period (in years)
2.3

 
2.4
Supplemental Data on Stock-based Compensation
Supplemental Data on Stock Options
 
Edison International
 
SCE
 
Years ended December 31,
(in millions, except per award amounts)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Stock options:
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value per option granted
$
7.54

 
$
7.26

 
$
5.40

 
$
7.53

 
$
7.34

 
$
5.38

Fair value of options vested
20

 
17

 
17

 
11

 
9

 
10

Cash used to purchase shares to settle options
170

 
300

 
199

 
69

 
181

 
130

Cash from participants to exercise stock options
113

 
205

 
140

 
45

 
125

 
92

Value of options exercised
57

 
95

 
59

 
24

 
56

 
38

Tax benefits from options exercised
23

 
39

 
24

 
10

 
23

 
15
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, 2014
128,300

 
$
55.66

 
127,975

 
$
92.92

Granted
—

 
—

 
109,154

 
 

Forfeited
(4,035
)
 
55.93

 
(5,183
)
 
 
Vested1
(66,486
)
 
50.85

 
(66,317
)
 
 

Nonvested at December 31, 2015
57,779

 
61.18

 
165,629

 
68.44

SCE:
 
 
 
 
 
 
 
Nonvested at December 31, 2014
71,797

 
$
56.06

 
71,520

 
$
92.33

Granted
—

 
—

 
59,213

 
 

Forfeited
(1,717
)
 
56.89

 
(2,867
)
 
 
Vested1
(36,891
)
 
50.82

 
(36,748
)
 
 

Affiliate transfers, net
(726
)
 
54.81

 
(725
)
 
 
Nonvested at December 31, 2015
32,463

 
62.01

 
90,393

 
68.64


1 
Relates to performance shares that will be paid in 2016 as performance targets were met at December 31, 2015
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, 2014
433,319

 
$
47.89

 
231,364

 
$
48.26

Granted
120,469

 
63.57

 
65,237

 
63.52

Forfeited
(10,210
)
 
52.09

 
(5,108
)
 
54.04

Vested
(295,435
)
 
45.74

 
(155,046
)
 
45.98

Affiliate transfers, net
—

 
—

 
(2,072
)
 
45.35

Nonvested at December 31, 2015
248,143

 
57.89

 
134,375

 
58.13
Accrued Severance Liability Workforce Reduction
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
 
26

Payments
 
(39
)
Balance at December 31, 2015
 
$
22
Pension Plans  
Pension and Other Postretirement Benefits  
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)
2015
 
2014
 
2015
 
2014
Change in projected benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
4,517

 
$
4,178

 
$
3,999

 
$
3,721

Service cost
142

 
133

 
133

 
124

Interest cost
170

 
181

 
150

 
159

Actuarial (gain) loss
(149
)
 
469

 
(143
)
 
386

Curtailment gain
—

 
(5
)
 
—

 
—

Benefits paid
(305
)
 
(449
)
 
(261
)
 
(391
)
Other
(1
)
 
10

 
—

 
—

Projected benefit obligation at end of year
$
4,374

 
$
4,517

 
$
3,878

 
$
3,999

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
3,454

 
$
3,477

 
$
3,217

 
$
3,236

Actual return on plan assets
30

 
257

 
27

 
240

Employer contributions
119

 
169

 
97

 
132

Benefits paid
(305
)
 
(449
)
 
(261
)
 
(391
)
Fair value of plan assets at end of year
$
3,298

 
$
3,454

 
$
3,080

 
$
3,217

Funded status at end of year
$
(1,076
)
 
$
(1,063
)
 
$
(798
)
 
$
(782
)
Amounts recognized in the consolidated balance sheets consist of1:
 
 
 
 
 
 
 
Current liabilities
$
(27
)
 
$
(27
)
 
$
(4
)
 
$
(5
)
Long-term liabilities
(1,049
)
 
(1,036
)
 
(794
)
 
(777
)
 
$
(1,076
)
 
$
(1,063
)
 
$
(798
)
 
$
(782
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
Net loss1
$
96

 
$
102

 
$
27

 
$
31

Amounts recognized as a regulatory asset:
 
 
 
 
 
 
 
Prior service cost
$
15

 
$
20

 
$
15

 
$
20

Net loss
660

 
640

 
660

 
640

 
$
675

 
$
660

 
$
675

 
$
660

Total not yet recognized as expense
$
771

 
$
762

 
$
702

 
$
691

Accumulated benefit obligation at end of year
$
4,200

 
$
4,356

 
$
3,744

 
$
3,881

Pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
4,374

 
$
4,517

 
$
3,878

 
$
3,999

Accumulated benefit obligation
4,200

 
4,356

 
3,744

 
3,881

Fair value of plan assets
3,298

 
3,454

 
3,080

 
3,217

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
4.18
%
 
3.85
%
 
4.18
%
 
3.85
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
1 
The SCE liability excludes a long-term payable due to Edison International Parent of $123 million and $121 million at December 31, 2015 and 2014, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $27 million and $31 million at December 31, 2015 and 2014, respectively, excludes net loss of $18 million and $22 million related to these benefits.
Expense Components for Plans
Pension expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Service cost
$
142

 
$
133

 
$
162

 
$
139

 
$
128

 
$
159

Interest cost
170

 
181

 
170

 
155

 
164

 
167

Expected return on plan assets
(233
)
 
(229
)
 
(222
)
 
(217
)
 
(213
)
 
(222
)
Settlement costs1
—

 
45

 
87

 
—

 
42

 
85

Curtailment gain
—

 
(4
)
 
—

 
—

 
—

 
—

Amortization of prior service cost
5

 
5

 
5

 
5

 
5

 
5

Amortization of net loss2
40

 
12

 
39

 
35

 
7

 
35

Expense under accounting standards
124

 
143

 
241

 
117

 
133

 
229

Regulatory adjustment (deferred)
(6
)
 
8

 
(53
)
 
(6
)
 
8

 
(53
)
Total expense recognized
$
118

 
$
151

 
$
188

 
$
111

 
$
141

 
$
176


1 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was zero for the year ended December 31, 2015 and $3 million for the year ended December 31, 2014.
2 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $14 million and $8 million, respectively, for the year ended December 31, 2015. The amount reclassified for Edison International and SCE was $9 million and $4 million, respectively, for the year ended December 31, 2014.
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)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Net loss (gain)
$
7

 
$
85

 
$
(33
)
 
$
(9
)
 
$
37

 
$
(24
)
Amortization of net loss and other
(15
)
 
(13
)
 
(13
)
 
(9
)
 
(4
)
 
(7
)
Total recognized in other comprehensive loss
$
(8
)
 
$
72

 
$
(46
)
 
$
(18
)
 
$
33

 
$
(31
)
Total recognized in expense and other comprehensive loss
$
110

 
$
223

 
$
142

 
$
93

 
$
174

 
$
145
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated pension amounts that will be amortized to expense in 2016 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized net loss to be amortized1
$
36

 
$
32

Unrecognized prior service cost to be amortized
4

 
4


1 
The amount of net loss expected to be reclassified from other comprehensive loss for Edison International's continuing operations and SCE is $11 million and $6 million, respectively.
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,
 
2015
 
2014
 
2013
Discount rate
3.85
%
 
4.50
%
 
4.13
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.50
%
Expected long-term return on plan assets
7.00
%
 
7.00
%
 
7.00
%
Schedule of Expected Benefit Payments
The following benefit payments, which reflect expected future service, are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2016
$
311

 
$
265

2017
310

 
270

2018
314

 
280

2019
327

 
286

2020
327

 
290

2021 – 2025
1,590

 
1,447
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)
2015
 
2014
Fair value, net at beginning of period
$
289

 
$
390

Actual return on plan assets:
 
 
 
Relating to assets still held at end of period
47

 
114

Relating to assets sold during the period
(17
)
 
(44
)
Purchases
38

 
13

Dispositions
(143
)
 
(184
)
Transfers in and/or out of Level 3
—

 
—

Fair value, net at end of period
$
214

 
$
289
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, 2015 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
$
127

 
$
298

 
$
—

 
$
425

Corporate stocks2
720

 
16

 
—

 
736

Corporate bonds3
—

 
755

 
—

 
755

Common/collective funds4
—

 
640

 
—

 
640

Partnerships/joint ventures5
—

 
111

 
214

 
325

Other investment entities6
—

 
263

 
—

 
263

Registered investment companies7
117

 
4

 
—

 
121

Interest-bearing cash
6

 
—

 
—

 
6

Other
1

 
96

 
—

 
97

Total
$
971

 
$
2,183

 
$
214

 
$
3,368

Receivables and payables, net
 

 
 

 
 

 
(70
)
Net plan assets available for benefits
 

 
 

 
 

 
$
3,298

SCE's share of net plan assets
 
 
 
 
 
 
$
3,080

The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2014 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
$
140

 
$
329

 
$
—

 
$
469

Corporate stocks2
716

 
14

 
—

 
730

Corporate bonds3
—

 
801

 
—

 
801

Common/collective funds4
—

 
524

 
—

 
524

Partnerships/joint ventures5
—

 
110

 
289

 
399

Other investment entities6
—

 
278

 
—

 
278

Registered investment companies7
113

 
30

 
—

 
143

Interest-bearing cash
10

 
—

 
—

 
10

Other
5

 
100

 
—

 
105

Total
$
984

 
$
2,186

 
$
289

 
$
3,459

Receivables and payables, net
 

 
 

 
 

 
(5
)
Net plan assets available for benefits
 

 
 

 
 

 
$
3,454

SCE's share of net plan assets
 
 
 
 
 
 
$
3,217

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 both 2015 and 2014, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (59%) and Morgan Stanley Capital International (MSCI) index (41%).
3 
Corporate bonds are diversified. At December 31, 2015 and 2014, respectively, this category includes $123 million and $102 million for collateralized mortgage obligations and other asset backed securities of which $25 million and $15 million are below investment grade.
4 
At December 31, 2015 and 2014, 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 (46% and 32%), Russell 1000 indexes (14% and 18%) and the MSCI Europe, Australasia and Far East (EAFE) Index (16% and 20%). A non-index U.S. equity fund representing 22% and 27% of this category for 2015 and 2014, respectively, is actively managed.
5 
Partnerships/joint venture Level 2 investments consist primarily of a partnership which invests in publicly traded fixed income securities. At December 31, 2015 and 2014, respectively, 22% and 55% 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. At December 31, 2015 and 2014, respectively, 78% and 45% of the Level 3 partnerships are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies.
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
Information on PBOP Plan assets and benefit obligations is shown below:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2015
 
2014
 
2015
 
2014
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,784

 
$
2,220

 
$
2,775

 
$
2,211

Service cost
46

 
40

 
46

 
40

Interest cost
102

 
117

 
102

 
117

Special termination benefits
(2
)
 
3

 
(2
)
 
3

Actuarial (gain) loss
(500
)
 
582

 
(500
)
 
582

Plan participants' contributions
20

 
19

 
20

 
19

Benefits paid
(100
)
 
(197
)
 
(100
)
 
(197
)
Benefit obligation at end of year
$
2,350

 
$
2,784

 
$
2,341

 
$
2,775

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
2,086

 
$
2,065

 
$
2,086

 
$
2,065

Actual return on assets
6

 
180

 
6

 
180

Employer contributions
24

 
19

 
24

 
19

Plan participants' contributions
20

 
19

 
20

 
19

Benefits paid
(100
)
 
(197
)
 
(100
)
 
(197
)
Fair value of plan assets at end of year
$
2,036

 
$
2,086

 
$
2,036

 
$
2,086

Funded status at end of year
$
(314
)
 
$
(698
)
 
$
(305
)
 
$
(689
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
Current liabilities
$
(15
)
 
$
(15
)
 
$
(15
)
 
$
(15
)
Long-term liabilities
(299
)
 
(683
)
 
(290
)
 
(674
)
 
$
(314
)
 
$
(698
)
 
$
(305
)
 
$
(689
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
    Net loss
$
4

 
$
4

 
$
—

 
$
—

Amounts recognized as a regulatory (liability) asset:
 
 
 
 
 
 
 
Prior service credit
$
(9
)
 
$
(19
)
 
$
(9
)
 
$
(19
)
Net loss
183

 
577

 
183

 
577

 
$
174

 
$
558

 
$
174

 
$
558

Total not yet recognized as expense
$
178

 
$
562

 
$
174

 
$
558

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
4.55
%
 
4.16
%
 
4.55
%
 
4.16
%
Assumed health care cost trend rates:
 
 
 
 
 
 
 
Rate assumed for following year
7.50
%
 
7.75
%
 
7.50
%
 
7.75
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2022

 
2021

 
2022

 
2021
Expense Components for Plans
PBOP expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Service cost
$
46

 
$
40

 
$
49

 
$
46

 
$
40

 
$
48

Interest cost
102

 
117

 
98

 
102

 
117

 
97

Expected return on plan assets
(116
)
 
(108
)
 
(114
)
 
(116
)
 
(108
)
 
(114
)
Special termination benefits1
1

 
3

 
11

 
1

 
3

 
11

Amortization of prior service credit
(12
)
 
(36
)
 
(36
)
 
(12
)
 
(35
)
 
(35
)
Amortization of net loss
3

 
6

 
24

 
2

 
5

 
24

Total expense
$
24

 
$
22

 
$
32

 
$
23

 
$
22

 
$
31


1 
Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated PBOP amounts that will be amortized to expense in 2016 for continuing operations are as follows:
    
Edison International
 
SCE
Unrecognized prior service credit to be amortized
$
(3
)
 
$
(3
)
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,
 
2015
 
2014
 
2013
Discount rate
4.16
%
 
5.00
%
 
4.25
%
Expected long-term return on plan assets
5.50
%
 
5.50
%
 
6.70
%
Assumed health care cost trend rates:
 
 
 
 
 
Current year
7.75
%
 
7.75
%
 
8.50
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2021

 
2020

 
2020
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, 2015
$
251

 
$
(206
)
 
$
250

 
$
(205
)
Effect on annual aggregate service and interest costs
12

 
(9
)
 
12

 
(9
)
Schedule of Expected Benefit Payments
The following benefit payments are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2016
$
101

 
$
101

2017
106

 
106

2018
111

 
110

2019
115

 
114

2020
119

 
118

2021 – 2025
649

 
646
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)
2015
 
2014
Fair value, net at beginning of period
$
105

 
$
164

Actual return on plan assets
 
 
 
Relating to assets still held at end of period
(6
)
 
18

Relating to assets sold during the period
15

 
(1
)
Purchases
7

 
9

Dispositions
(47
)
 
(85
)
Transfers in and/or out of Level 3
—

 
—

Fair value, net at end of period
$
74

 
$
105
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, 2015 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Common/collective funds1
$
—

 
$
424

 
$
—

 
$
424

Corporate stocks2
222

 
—

 
—

 
222

Corporate notes and bonds3
—

 
867

 
—

 
867

Partnerships4
—

 
20

 
73

 
93

U.S. government and agency securities5
200

 
42

 
—

 
242

Registered investment companies6
60

 
3

 
—

 
63

Interest bearing cash
31

 
—

 
—

 
31

Other7
5

 
113

 
—

 
118

Total
$
518

 
$
1,469

 
$
73

 
$
2,060

Receivables and payables, net
 

 
 

 
 

 
(24
)
Combined net plan assets available for benefits
 

 
 

 
 

 
$
2,036

The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2014 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Common/collective funds1
$
—

 
$
431

 
$
—

 
$
431

Corporate stocks2
250

 
—

 
—

 
250

Corporate notes and bonds3
—

 
883

 
—

 
883

Partnerships4
—

 
19

 
105

 
124

U.S. government and agency securities5
207

 
36

 
—

 
243

Registered investment companies6
64

 
5

 
—

 
69

Interest bearing cash
29

 
—

 
—

 
29

Other7
5

 
125

 
—

 
130

Total
$
555

 
$
1,499

 
$
105

 
$
2,159

Receivables and payables, net
 

 
 

 
 

 
(73
)
Combined net plan assets available for benefits
 

 
 

 
 

 
$
2,086

1 
At both December 31, 2015 and 2014, 38% of the common/collective assets are invested in a large cap index fund which seeks to track performance of the Russell 1000 index. 41% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and MSCI Europe, Australasia and Far East (EAFE) Index. 17% in a non-index U.S. equity fund which is actively managed.
2 
Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (47%) and the MSCI All Country World Index (53%) for both 2015 and 2014.
3 
Corporate notes and bonds are diversified and include approximately $27 million and $31 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2015 and 2014, respectively.
4 
At December 31, 2015 and 2014, respectively, 29% and 50% 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. At December 31, 2015 and 2014, respectively, 71% and 50% of the Level 3 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.
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 a money market fund.
7 
Other includes $97 million and $111 million of municipal securities at December 31, 2015 and 2014, respectively.