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Compensation and Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
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,
2017
$
70

 
$
69

2016
69

 
68

2015
73

 
72
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)
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Stock-based compensation expense1:
 
 
 
 
 
 
 
 
 
 
 
   Stock options
$
14

 
$
14

 
$
14

 
$
8

 
$
7

 
$
8

   Performance shares
2

 
13

 
7

 
2

 
6

 
4

   Restricted stock units
6

 
6

 
7

 
3

 
3

 
4

   Other
1

 
1

 
1

 
—

 
—

 
—

Total stock-based compensation expense
$
23

 
$
34

 
$
29

 
$
13

 
$
16

 
$
16

Income tax benefits related to stock compensation expense2
$
72

 
$
41

 
$
12

 
$
15

 
$
20

 
$
7

Excess tax benefits2
—

 
—

 
15

 
—

 
—

 
23

1 
Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income.
2 
Under new accounting guidance adopted in 2016, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. Beginning January 1, 2016, the excess tax impact of this permanent difference is recognized in earnings in the period it is created.
Black-Sholes Option-Pricing Model Assumptions
The Black-Scholes option-pricing model requires various assumptions noted in the following table:
 
Years ended December 31,
 
2017
 
2016
 
2015
Expected terms (in years)
5.7
 
5.9
 
5.9
Risk-free interest rate
2.1% - 2.3%
 
1.2% – 2.2%
 
1.6% – 2.1%
Expected dividend yield
2.7% - 3.8%
 
2.5% – 3.0%
 
2.6% – 3.2%
Weighted-average expected dividend yield
2.7%
 
2.9%
 
2.6%
Expected volatility
17.8% - 20.9%
 
17.2% – 17.5%
 
16.4% – 17.0%
Weighted-average volatility
17.9%
 
17.4%
 
16.5%
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, 2016
11,544,501

 
$
50.26

 
 
 
 

Granted
1,359,599

 
79.23

 
 
 
 

Expired
—

 
—

 
 
 
 

Forfeited
(163,449
)
 
69.76

 
 
 
 

Exercised
(4,918,086
)
 
43.77

 
 
 
 

Outstanding at December 31, 2017
7,822,565

 
58.98

 
6.37
 
 

Vested and expected to vest at December 31, 2017
7,740,798

 
58.81

 
6.35
 
$
62

Exercisable at December 31, 2017
4,241,658

 
$
50.48

 
5.09
 
$
58

SCE:
 
 
 
 
 
 
 
Outstanding at December 31, 2016
4,727,416

 
$
51.81

 
 
 
 

Granted
699,538

 
79.12

 
 
 
 

Expired
—

 
—

 
 
 
 

Forfeited
(77,165
)
 
66.27

 
 
 
 

Exercised
(987,161
)
 
48.63

 
 
 
 

Transfers, net
83,074

 
46.47

 
 
 
 
Outstanding at December 31, 2017
4,445,702

 
56.46

 
5.99
 
 

Vested and expected to vest at December 31, 2017
4,402,254

 
56.28

 
5.96
 
$
45

Exercisable at December 31, 2017
2,555,160

 
$
46.94

 
4.52
 
$
43
Schedule of Unrecognized Compensation Expense
At December 31, 2017, 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

 
$
7

Weighted-average period (in years)
2.4

 
2.3
Supplemental Data on Stock-based Compensation
Supplemental Data on Stock Options
 
Edison International
 
SCE
 
Years ended December 31,
(in millions, except per award amounts)
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Stock options:
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value per option granted
$
10.65

 
$
7.38

 
$
7.54

 
$
10.63

 
$
7.50

 
$
7.53

Fair value of options vested
11

 
11

 
20

 
5

 
5

 
11

Cash used to purchase shares to settle options
293

 
220

 
170

 
77

 
118

 
69

Cash from participants to exercise stock options
167

 
136

 
113

 
48

 
77

 
45

Value of options exercised
126

 
84

 
57

 
29

 
41

 
24

Tax benefits from options exercised
51

 
34

 
23

 
12

 
17

 
10
Summary of Nonvested Share Activity
The following is a summary of the status of Edison International's nonvested performance shares:
 
Shares
 
Weighted-Average
Fair Value
Edison International:
 
 
 
Nonvested at December 31, 2016
207,497

 
$
84.30

Granted
81,874

 
 

Forfeited
(53,002
)
 
 
Vested1
(57,247
)
 
 

Nonvested at December 31, 2017
179,122

 
63.85

SCE:
 
 
 
Nonvested at December 31, 2016
96,667

 
$
84.25

Granted
42,569

 
 

Forfeited
(25,061
)
 
 
Vested1
(26,427
)
 
 

Affiliate transfers, net
974

 
 
Nonvested at December 31, 2017
88,722

 
64.01


1 
Relates to performance shares that will be paid in 2018 as performance targets were met at December 31, 2017.
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, 2016
345,395

 
$
61.05

 
160,788

 
$
60.80

Granted
91,528

 
79.23

 
47,100

 
79.12

Forfeited
(7,311
)
 
71.16

 
(3,903
)
 
67.65

Vested
(126,561
)
 
51.08

 
(64,266
)
 
53.64

Affiliate transfers, net
—

 
—

 
1,699

 
60.35

Nonvested at December 31, 2017
303,051

 
69.52

 
141,418

 
69.96
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)
2017
 
2016
 
2017
 
2016
Change in projected benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
4,284

 
$
4,374

 
$
3,791

 
$
3,878

Service cost
137

 
139

 
129

 
132

Interest cost
164

 
171

 
144

 
150

Actuarial gain
(46
)
 
(125
)
 
(74
)
 
(140
)
Benefits paid
(360
)
 
(275
)
 
(288
)
 
(229
)
Projected benefit obligation at end of year
$
4,179

 
$
4,284

 
$
3,702

 
$
3,791

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
3,388

 
$
3,298

 
$
3,172

 
$
3,080

Actual return on plan assets
483

 
262

 
442

 
239

Employer contributions
105

 
103

 
64

 
82

Benefits paid
(360
)
 
(275
)
 
(288
)
 
(229
)
Fair value of plan assets at end of year
$
3,616

 
$
3,388

 
$
3,390

 
$
3,172

Funded status at end of year
$
(563
)
 
$
(896
)
 
$
(312
)
 
$
(619
)
Amounts recognized in the consolidated balance sheets consist of 1:
 
 
 
 
 
 
 
Long-term assets
$
7

 
$
2

 
$
—

 
$
—

Current liabilities
(17
)
 
(50
)
 
(4
)
 
(4
)
Long-term liabilities
(553
)
 
(848
)
 
(308
)
 
(615
)
 
$
(563
)
 
$
(896
)
 
$
(312
)
 
$
(619
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
Prior service cost
$
(1
)
 
$
(1
)
 
$
—

 
$
—

Net loss1
77

 
93

 
21

 
24

 
$
76

 
$
92

 
$
21

 
$
24

Amounts recognized as a regulatory asset
$
271

 
$
574

 
$
271

 
$
574

Total not yet recognized as expense
$
347

 
$
666

 
$
292

 
$
598

Accumulated benefit obligation at end of year
$
4,022

 
$
4,138

 
$
3,585

 
$
3,683

Pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
4,179

 
$
4,284

 
$
3,702

 
$
3,791

Accumulated benefit obligation
4,022

 
4,138

 
3,585

 
3,683

Fair value of plan assets
3,616

 
3,388

 
3,390

 
3,172

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
3.46
%
 
3.94
%
 
3.46
%
 
3.94
%
Rate of compensation increase
4.10
%
 
4.00
%
 
4.10
%
 
4.00
%
1 
The SCE liability excludes a long-term payable due to Edison International Parent of $114 million and $124 million at December 31, 2017 and 2016, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $21 million and $24 million at December 31, 2017 and 2016, respectively, excludes net loss of $19 million and $20 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)
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Service cost
$
138

 
$
139

 
$
142

 
$
133

 
$
136

 
$
139

Interest cost
164

 
172

 
170

 
149

 
156

 
155

Expected return on plan assets
(212
)
 
(220
)
 
(233
)
 
(199
)
 
(205
)
 
(217
)
Settlement costs1
6

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
3

 
4

 
5

 
3

 
4

 
5

Amortization of net loss2
21

 
27

 
40

 
17

 
23

 
35

Expense under accounting standards
120

 
122

 
124

 
103

 
114

 
117

Regulatory adjustment (deferred)
(28
)
 
(21
)
 
(6
)
 
(28
)
 
(21
)
 
(6
)
Total expense recognized
$
92

 
$
101

 
$
118

 
$
75

 
$
93

 
$
111


1 
Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in 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 $6.4 million ($3.8 million after-tax) was recorded at Edison International for the year ended December 31, 2017.
2 
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International was $10 million, $10 million and $14 million for the years ended December 31, 2017, 2016 and 2015, respectively. The amount reclassified for SCE was $6 million, $6 million and $8 million, respectively, for the years ended December 31, 2017, 2016 and 2015, 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 loss for continuing operations:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Net loss (gain)
$
—

 
$
6

 
$
7

 
$
3

 
$
4

 
$
(9
)
Settlement charges
(6
)
 
—

 
—

 
—

 
—

 
—

Amortization of net loss
(10
)
 
(10
)
 
(15
)
 
(6
)
 
(6
)
 
(9
)
Total recognized in other comprehensive loss
$
(16
)
 
$
(4
)
 
$
(8
)
 
$
(3
)
 
$
(2
)
 
$
(18
)
Total recognized in expense and other comprehensive loss
$
76

 
$
97

 
$
110

 
$
72

 
$
91

 
$
93
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized
The estimated pension amounts that will be amortized to expense in 2018 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized net loss to be amortized1
$
8

 
$
6

Unrecognized prior service cost to be amortized
3

 
3


1 
The amount of net loss expected to be reclassified from other comprehensive loss for Edison International's continuing operations and SCE is $8 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,
 
2017
 
2016
 
2015
Discount rate
3.94
%
 
4.18
%
 
3.85
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
Expected long-term return on plan assets
6.50
%
 
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,
2018
$
338

 
$
304

2019
343

 
303

2020
327

 
293

2021
324

 
287

2022
309

 
281

2023 – 2027
1,453

 
1,299
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, 2017 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
184

 
$
507

 
$
—

 
$
—

 
$
691

Corporate stocks3
718

 
11

 
—

 
—

 
729

Corporate bonds4
—

 
676

 
—

 
—

 
676

Common/collective funds5
—

 
—

 
—

 
705

 
705

Partnerships/joint ventures6
—

 
—

 
—

 
396

 
396

Other investment entities7
—

 
—

 
—

 
262

 
262

Registered investment companies8
140

 
—

 
—

 
—

 
140

Interest-bearing cash
9

 
—

 
—

 
—

 
9

Other
—

 
106

 
—

 
—

 
106

Total
$
1,051

 
$
1,300

 
$
—

 
$
1,363

 
$
3,714

Receivables and payables, net
 

 
 

 
 
 
 

 
(98
)
Net plan assets available for benefits
 

 
 

 
 
 
 

 
$
3,616

SCE's share of net plan assets
 
 
 
 
 
 
 
 
$
3,390

The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
217

 
$
309

 
$
—

 
$
—

 
$
526

Corporate stocks3
720

 
15

 
—

 
—

 
735

Corporate bonds4
—

 
725

 
—

 
—

 
725

Common/collective funds5
—

 
—

 
—

 
692

 
692

Partnerships/joint ventures6
—

 
—

 
—

 
333

 
333

Other investment entities7
—

 
—

 
—

 
253

 
253

Registered investment companies8
124

 
—

 
—

 
6

 
130

Interest-bearing cash
42

 
—

 
—

 
—

 
42

Other
—

 
112

 
—

 
—

 
112

Total
$
1,103

 
$
1,161

 
$
—

 
$
1,284

 
$
3,548

Receivables and payables, net
 

 
 

 
 
 
 

 
(160
)
Net plan assets available for benefits
 

 
 

 
 
 
 

 
$
3,388

SCE's share of net plan assets
 
 
 
 
 
 
 
 
$
3,172

1 
These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits.
2 
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.
3 
Corporate stocks are diversified. At December 31, 2017 and 2016, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (54%) and (62%) and Morgan Stanley Capital International (MSCI) index (46%) and (38%).
4 
Corporate bonds are diversified. At December 31, 2017 and 2016, respectively, this category includes $65 million and $76 million for collateralized mortgage obligations and other asset backed securities of which $18 million and $27 million are below investment grade.
5 
At December 31, 2017 and 2016, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index (41% and 45%) and Russell 1000 indexes (15%). At both December 31, 2017 and 2016, 15% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS. At December 31, 2017 and 2016, a non-index U.S. equity fund representing 25% and 23% of this category for 2017 and 2016, respectively, is actively managed.
6 
At both December 31, 2017 and 2016, 55% are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies. At December 31, 2017 and 2016, respectively, 23% and 22% are invested in publicly traded fixed income securities, 20% and 18% are invested in a broad range of financial assets in all global markets and 2% and 4% of the remaining partnerships are invested in asset backed securities, including distressed mortgages and commercial and residential loans and debt and equity of banks.
7 
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.
8 
Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index.
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)
2017
 
2016
 
2017
 
2016
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,276

 
$
2,350

 
$
2,266

 
$
2,341

Service cost
31

 
35

 
31

 
34

Interest cost
86

 
97

 
85

 
97

Special termination benefits
1

 
2

 
1

 
2

Plan Amendments
—

 
(6
)
 
—

 
(6
)
Actuarial loss (gain)
24

 
(110
)
 
23

 
(110
)
Plan participants' contributions
24

 
19

 
24

 
19

Benefits paid
(105
)
 
(111
)
 
(105
)
 
(111
)
Benefit obligation at end of year
$
2,337

 
$
2,276

 
$
2,325

 
$
2,266

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
2,102

 
$
2,036

 
$
2,102

 
$
2,036

Actual return on assets
297

 
137

 
297

 
137

Employer contributions
12

 
21

 
12

 
21

Plan participants' contributions
24

 
19

 
24

 
19

Benefits paid
(105
)
 
(111
)
 
(105
)
 
(111
)
Fair value of plan assets at end of year
$
2,330

 
$
2,102

 
$
2,330

 
$
2,102

Funded status at end of year
$
(7
)
 
$
(174
)
 
$
5

 
$
(164
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
 Long-term assets
$
6

 
$
—

 
$
17

 
$
—

Current liabilities
(13
)
 
(14
)
 
(12
)
 
(13
)
Long-term liabilities
—

 
(160
)
 
—

 
(151
)
 
$
(7
)
 
$
(174
)
 
$
5

 
$
(164
)
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
    Net loss
$
4

 
$
4

 
$
—

 
$
—

Amounts recognized as a regulatory (liability) asset
(26
)
 
136

 
(26
)
 
136

Total not yet recognized as (income) expense
$
(22
)
 
$
140

 
$
(26
)
 
$
136

Weighted-average assumptions used to determine obligations at end of year:
 
 
 
 
 
 
 
Discount rate
3.70
%
 
4.29
%
 
3.70
%
 
4.29
%
Assumed health care cost trend rates:
 
 
 
 
 
 
 
Rate assumed for following year
6.75
%
 
7.00
%
 
6.75
%
 
7.00
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2029

 
2022

 
2029

 
2022
Expense Components for Plans
Net periodic PBOP expense components for continuing operations are:
 
Edison International
 
SCE
 
Years ended December 31,
(in millions)
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Service cost
$
31

 
$
35

 
$
46

 
$
31

 
$
34

 
$
46

Interest cost
86

 
97

 
102

 
85

 
97

 
102

Expected return on plan assets
(110
)
 
(112
)
 
(116
)
 
(110
)
 
(112
)
 
(116
)
Special termination benefits1
1

 
2

 
1

 
1

 
2

 
1

Amortization of prior service credit
(3
)
 
(2
)
 
(12
)
 
(2
)
 
(2
)
 
(12
)
Amortization of net loss
—

 
—

 
3

 
—

 
—

 
2

Total expense
$
5

 
$
20

 
$
24

 
$
5

 
$
19

 
$
23


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 2018 for continuing operations are as follows:
(in millions)
Edison International
 
SCE
Unrecognized prior service credit to be amortized
$
(1
)
 
$
(1
)
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,
 
2017
 
2016
 
2015
Discount rate
4.29
%
 
4.55
%
 
4.16
%
Expected long-term return on plan assets
5.30
%
 
5.60
%
 
5.50
%
Assumed health care cost trend rates:
 
 
 
 
 
Current year
7.00
%
 
7.50
%
 
7.75
%
Ultimate rate
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate reached
2022

 
2022

 
2021
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, 2017
$
247

 
$
(203
)
 
$
246

 
$
(202
)
Effect on annual aggregate service and interest costs
9

 
(8
)
 
9

 
(8
)
Schedule of Expected Benefit Payments
The following benefit payments are expected to be paid:
 
Edison International
 
SCE
(in millions)
Years ended December 31,
2018
$
93

 
$
93

2019
96

 
96

2020
100

 
100

2021
103

 
103

2022
107

 
106

2023 – 2027
582

 
580
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels
The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
398

 
$
33

 
$
—

 
$
—

 
$
431

Corporate stocks3
254

 
—

 
—

 
—

 
254

Corporate notes and bonds4
—

 
845

 
—

 
—

 
845

Common/collective funds5
—

 
—

 
—

 
569

 
569

Partnerships6
—

 
—

 
—

 
82

 
82

Registered investment companies7
37

 
—

 
—

 
—

 
37

Interest bearing cash
42

 
—

 
—

 
—

 
42

Other8
5

 
84

 
—

 
—

 
89

Total
$
736

 
$
962

 
$
—

 
$
651

 
$
2,349

Receivables and payables, net
 

 
 

 
 
 
 

 
(19
)
Combined net plan assets available for benefits
 

 
 

 
 
 
 

 
$
2,330

The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2016 by asset class and level within the fair value hierarchy:
(in millions)
Level 1
 
Level 2
 
Level 3
 
NAV1
 
Total
U.S. government and agency securities2
$
222

 
$
59

 
$
—

 
$
—

 
$
281

Corporate stocks3
230

 
—

 
—

 
—

 
230

Corporate notes and bonds4
—

 
877

 
—

 
—

 
877

Common/collective funds5
—

 
—

 
—

 
462

 
462

Partnerships6
—

 
—

 
—

 
79

 
79

Registered investment companies7
48

 
—

 
—

 
1

 
49

Interest bearing cash
48

 
—

 
—

 
—

 
48

Other8
4

 
103

 
—

 
—

 
107

Total
$
552

 
$
1,039

 
$
—

 
$
542

 
$
2,133

Receivables and payables, net
 

 
 

 
 
 
 

 
(31
)
Combined net plan assets available for benefits
 

 
 

 
 
 
 

 
$
2,102

1 
These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits.
2 
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.
3 
Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes (64% and 47%) and the MSCI All Country World Index (36% and 53%) for 2017 and 2016, respectively.
4 
Corporate notes and bonds are diversified and include approximately $36 million and $47 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2017 and 2016, respectively.
5 
At December 31, 2017 and 2016, respectively, 75% and 39% of the common/collective assets are invested 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% and 18% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund at December 31, 2017 and a large cap index fund which seeks to track performance of the Russell 1000 index at December 31, 2016.
6 
At December 31, 2017 and 2016, respectively, 56% and 59% of the 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. 33% and 31% are invested in a broad range of financial assets in all global markets. 9% of the remaining partnerships category for both years is invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks.
7 
At December 31, 2017, registered investment companies were primarily invested in (1) a money market fund, (2) exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index, and international small cap equities. At December 31, 2016, Level 1 registered investment companies consist of a money market fund.
8 
Other includes $60 million and $76 million of municipal securities at December 31, 2017 and 2016, respectively.