Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Reconciliation of Income Tax Expense

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2021			2020			2021			2020
Edison International:
(Loss) income from operations before income taxes	$	(326)		$	(517)		$	357		$	(36)
Provision for income tax at federal statutory rate of 21%		(68)			(108)			75			(7)
Increase (decrease) in income tax from:
State tax, net of federal benefit		(39)			(67)			(28)			(74)
Property-related		(33)			(81)			(159)			(228)
Average rate assumption method ("ARAM") adjustment 1		87			—			87			—
Change related to uncertain tax position2		—			—			—			(15)
Insurance benefits		(2)			(5)			(7)			(12)
Wildfire related charges3		31			—			31			—
Other		(5)			(14)			4			(19)
Total income tax expense (benefit)	$	(29)		$	(275)		$	3		$	(355)
Effective tax rate		(8.9)	%		(53.2)	%		0.8	%		(986.1)	%
SCE:
(Loss) income from operations before income taxes	$	(268)		$	(469)		$	492		$	142
Provision for income tax at federal statutory rate of 21%		(56)			(98)			103			30
Increase (decrease) in income tax from:
State tax, net of federal benefit		(32)			(61)			(17)			(62)
Property-related		(33)			(81)			(159)			(228)
ARAM adjustment 1		87			—			87			—
Change related to uncertain tax position2		—			—			—			(18)
Insurance benefits		(2)			(5)			(7)			(12)
Wildfire related charges3		31			—			31			—
Other		(6)			(6)			3			(10)
Total income tax expense (benefit)	$	(11)		$	(251)		$	41		$	(300)
Effective tax rate		(4.1)	%		(53.5)	%		8.3	%		(211.3)	%

1 In July 2021, SCE received the IRS's response to its private letter ruling request, regarding the scope of the deferred tax normalization requirements and the computations required to comply with the average rate assumption method. As a result, SCE's estimate changed and a cumulative true up of $87 million reduction in tax benefits was recorded in the third quarter of 2021, for the period of January 1, 2018 to June 30, 2021. The above true up has an offsetting revenue adjustment resulting in no impact on earnings.

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

3 Relates to portions of the estimated charge for the 2017/2018 Wildfire/Mudslide Events recorded in the third quarter of 2021, assumed to be non-deductible for tax purposes.