XML 27 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Compensation and Benefit Plans
 6 Months Ended
Jun. 30, 2017
Retirement Benefits [Abstract]  
Compensation and Benefit Plans
Compensation and Benefit Plans
Pension Plans
Edison International made contributions of $76 million during the six months ended June 30, 2017, which includes contributions of $44 million by SCE. Edison International expects to make contributions of $60 million during the remainder of 2017, which includes $41 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.
Pension expense components for continuing operations are:
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
2017
 
2016
 
2017
 
2016
Edison International:
 
 
 
 
 
 
 
Service cost
$
36

 
$
39

 
$
72

 
$
78

Interest cost
41

 
44

 
82

 
88

Expected return on plan assets
(53
)
 
(56
)
 
(106
)
 
(112
)
Settlement costs1
8

 
—

 
8

 
—

Amortization of prior service cost
1

 
1

 
2

 
2

Amortization of net loss2
5

 
9

 
10

 
18

Expense under accounting standards
$
38

 
$
37

 
$
68

 
$
74

Regulatory adjustment
(3
)
 
(9
)
 
(6
)
 
(18
)
Total expense recognized
$
35

 
$
28

 
$
62

 
$
56

SCE:
 
 
 
 
 
 
 
Service cost
$
35

 
$
38

 
$
70

 
$
76

Interest cost
37

 
41

 
74

 
82

Expected return on plan assets
(50
)
 
(53
)
 
(100
)
 
(106
)
Amortization of prior service cost
1

 
1

 
2

 
2

Amortization of net loss2
4

 
8

 
8

 
16

Expense under accounting standards
$
27

 
$
35

 
$
54

 
$
70

Regulatory adjustment
(3
)
 
(9
)
 
(6
)
 
(18
)
Total expense recognized
$
24


$
26


$
48


$
52


1 
Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in April 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $7.7 million ($4.6 million after tax) was recorded at Edison International in the second quarter of 2017.
2 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $2 million and $1 million, respectively, for the three months ended June 30, 2017, and $5 million and $3 million, respectively, for the six months ended June 30, 2017. The amount reclassified for Edison International and SCE was $3 million and $1 million, respectively, for the three months ended June 30, 2016, and $6 million and $3 million, respectively, for the six months ended June 30, 2016.
Postretirement Benefits Other Than Pensions
Edison International made contributions of $10 million during the six months ended June 30, 2017 and expects to make contributions of $11 million during the remainder of 2017, substantially all of which are expected to be made by SCE. Annual contributions related to SCE employees 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. 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 Plan benefits with respect to its employees and former employees. A participating employer may terminate the PBOP Plan benefits with respect to its employees and former employees, as may SCE (as PBOP Plan sponsor), and, accordingly, the participants' PBOP Plan benefits are not vested benefits.
PBOP expense components for continuing operations are:
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
2017
 
2016
 
2017
 
2016
Edison International:
 
 
 
 
 
 
 
Service cost
$
9

 
$
10

 
$
18

 
$
20

Interest cost
24

 
26

 
48

 
52

Expected return on plan assets
(27
)
 
(28
)
 
(54
)
 
(56
)
Amortization of prior service cost
(1
)
 
(1
)
 
(2
)
 
(2
)
Total expense
$
5

 
$
7

 
$
10

 
$
14

SCE:
 
 
 
 
 
 
 
Service cost
$
9

 
$
10

 
$
18

 
$
20

Interest cost
24

 
26

 
48

 
52

Expected return on plan assets
(27
)
 
(28
)
 
(54
)
 
(56
)
Amortization of prior service cost
(1
)
 
(1
)
 
(2
)
 
(2
)
Total expense
$
5

 
$
7

 
$
10

 
$
14