Investments

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Investments

Note 10.Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.

The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments):

		Amortized Cost				Fair Value
	Longest	March 31,		December 31,		March 31,		December 31,
(in millions)	Maturity Dates	2022		2021		2022		2021
Stocks	—		*		*	$	1,879	$	1,972
Municipal bonds	2057	$	872	$	875		955		1,033
Government and agency securities	2067		1,023		1,095		1,092		1,212
Corporate bonds	2070		415		386		458		446
Short-term investments and receivables/payables1	One-year		134		199		143		207
Total		$	2,444	$	2,555	$	4,527	$	4,870

* Not applicable

1 Short-term investments include $11 million and $37 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 1, 2022 and January 3, 2022 as of March 31, 2022 and December 31, 2021, respectively.

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.9 billion and $2.1 billion at March 31, 2022 and December 31, 2021, respectively.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $434 million and $517 million at March 31, 2022 and December 31, 2021, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.1 billion and $4.4 billion at March 31, 2022 and December 31, 2021, respectively.

The following table summarizes the gains and losses for the trust investments:

	Three months ended March 31,
(in millions)	2022		2021
Gross realized gains	$	15	$	111
Gross realized losses		16		12
Net unrealized (losses) gains for equity securities		(100)		18

Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.

Edison International's Investments

Edison International holds strategic investments in companies focused on developing electric technologies and services. As of March 31, 2022 and December 31, 2021, these investments consist of $10 million and $12 million of marketable securities, respectively, and $3 million of equity investments without readily determinable fair values for both periods (included as "Other investments" on Edison International's consolidated balance sheets). The unrealized loss for equity investments held is $2 million for the three months ended March 31, 2022, recorded as "Other income" on Edison International's consolidated statement of income. There were no unrealized gains or losses for equity investments for the three months ended March 31, 2021. For further information, see Note 4 and Note 15.