Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Reconciliation of Income Tax Expense

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2020			2019			2020			2019
Edison International:
(Loss) income from operations before income taxes	$	(517)		$	480		$	(36)		$	1,020
Provision for income tax at federal statutory rate of 21%	(108)			101			(7)			214
Increase (decrease) in income tax from:
State tax, net of federal benefit	(67)			5			(74)			—
Property-related	(81)			(124)			(228)			(267)
Change related to uncertain tax position1	—			—			(15)			—
Deferred tax re-measurement2	—			—			—			(69)
2018 GRC Decision	—			—			—			(80)
Other	(19)			(4)			(31)			(10)
Total income tax benefit	$	(275)		$	(22)		$	(355)		$	(212)
Effective tax rate	(53.2)		%	(4.6)		%	(986.1)		%	(20.8)		%
SCE:
(Loss) income from operations before income taxes	$	(469)		$	524		$	142		$	1,123
Provision for income tax at federal statutory rate of 21%	(98)			110			30			236
Increase (decrease) in income tax from:
State tax, net of federal benefit	(61)			8			(62)			6
Property-related	(81)			(124)			(228)			(267)
Change related to uncertain tax positions1	—			—			(18)			—
Deferred tax re-measurement2	—			—			—			(69)
2018 GRC Decision	—			—			—			(80)
Other	(11)			(4)			(22)			(9)
Total income tax benefit	$	(251)		$	(10)		$	(300)		$	(183)
Effective tax rate	(53.5)		%	(1.9)		%	(211.3)		%	(16.3)		%

¹    Primarily relates to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit.

²     Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.

Reconciliation of Unrecognized Tax Benefits

The following table provides a reconciliation of unrecognized tax benefits:

	Edison International				SCE
(in millions)	2020		2019		2020		2019
Balance at January 1,	$	370	$	338	$	282	$	249
Tax positions taken during the current year:
Increases	38		32		39		32
Tax positions taken during a prior year:
Increases1	273		—		4		—
Decreases	(18)		(11)		(21)		(11)
Balance at September 30,	$	663	$	359	$	304	$	270

¹    Edison International recorded favorable tax positions for the quarter ended September 30, 2020, in connection with the Edison Mission Energy ("EME") bankruptcy that required a revaluation of the reserve for uncertain tax positions.