| Compensation and Benefit Plans |
Compensation and Benefit Plans Pension Plans Edison International made contributions of $23 million during the six months ended June 30, 2018, which includes contributions of $14 million by SCE. Edison International expects to make contributions of $43 million during the remainder of 2018, which includes $36 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. Net periodic pension expense components for continuing operations are: | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | (in millions) | 2018 | | 2017 3 | | 2018 | | 2017 3 | Edison International: | | | | | | | | Service cost | $ | 32 |
| | $ | 36 |
| | $ | 64 |
| | $ | 72 |
| Non-service cost | | | | | | | | Interest cost | 35 |
| | 41 |
| | 70 |
| | 82 |
| Expected return on plan assets | (56 | ) | | (53 | ) | | (113 | ) | | (106 | ) | Settlement costs1 | — |
| | 8 |
| | — |
| | 8 |
| Amortization of prior service cost | — |
| | 1 |
| | 1 |
| | 2 |
| Amortization of net loss2 | 2 |
| | 5 |
| | 4 |
| | 10 |
| Regulatory adjustment (deferred) | 3 |
| | (3 | ) | | 5 |
| | (6 | ) | Total non-service cost | (16 | ) | | (1 | ) | | (33 | ) | | (10 | ) | Total expense recognized | $ | 16 |
| | $ | 35 |
| | $ | 31 |
| | $ | 62 |
| SCE: | | | | | | | | Service cost | $ | 31 |
| | $ | 35 |
| | $ | 62 |
| | $ | 70 |
| Non-service cost | | | | | | | | Interest cost | 32 |
| | 37 |
| | 64 |
| | 74 |
| Expected return on plan assets | (54 | ) | | (50 | ) | | (107 | ) | | (100 | ) | Amortization of prior service cost | — |
| | 1 |
| | 1 |
| | 2 |
| Amortization of net loss2 | 2 |
| | 4 |
| | 3 |
| | 8 |
| Regulatory adjustment (deferred) | 3 |
| | (3 | ) | | 5 |
| | (6 | ) | Total non-service cost | (17 | ) | | (11 | ) | | (34 | ) | | (22 | ) | Total expense recognized | $ | 14 |
|
| $ | 24 |
|
| $ | 28 |
|
| $ | 48 |
|
| | 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 $8 million ($5 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 $2 million, respectively, for the three months ended June 30, 2018, and $4 million and $3 million, respectively, for the six months ended June 30, 2018. 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. |
| | 3 | During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
Postretirement Benefits Other Than Pensions ("PBOP(s)") Edison International made contributions of $6 million during the six months ended June 30, 2018 and expects to make an additional $6 million of contributions during the remainder of 2018, 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 in retirement depends on a number of factors, including the employee's years of service, age, hire date, and retirement date. Under the terms of the Edison International Health and Welfare Benefit 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. Net periodic PBOP expense components for continuing operations are: | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | (in millions) | 2018 | | 2017 1 | | 2018 | | 2017 1 | Edison International: | | | | | | | | Service cost | $ | 10 |
| | $ | 9 |
| | $ | 19 |
| | $ | 18 |
| Non-service cost | | | | | | | | Interest cost | 21 |
| | 24 |
| | 42 |
| | 48 |
| Expected return on plan assets | (30 | ) | | (27 | ) | | (60 | ) | | (54 | ) | Amortization of prior service cost | (1 | ) | | (1 | ) | | (1 | ) | | (2 | ) | Total non-service cost | (10 | ) | | (4 | ) | | (19 | ) | | (8 | ) | Total expense | $ | — |
| | $ | 5 |
| | $ | — |
| | $ | 10 |
| SCE: | | | | | | | | Service cost | $ | 10 |
| | $ | 9 |
| | $ | 19 |
| | $ | 18 |
| Non-service cost | | | | | | | | Interest cost | 21 |
| | 24 |
| | 42 |
| | 48 |
| Expected return on plan assets | (30 | ) | | (27 | ) | | (60 | ) | | (54 | ) | Amortization of prior service cost | (1 | ) | | (1 | ) | | (1 | ) | | (2 | ) | Total non-service cost | (10 | ) | | (4 | ) | | (19 | ) | | (8 | ) | Total expense | $ | — |
| | $ | 5 |
| | $ | — |
| | $ | 10 |
|
| | 1 | During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
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