Investments

6 Months Ended

Jun. 30, 2023

Investments

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 Costs				Fair Values
	Longest	June 30,		December 31,		June 30,		December 31,
(in millions)	Maturity Dates	2023		2022		2023		2022
Municipal bonds	2061	$	617	$	672	$	704	$	754
Government and agency securities	2073		1,151		1,025		1,222		1,091
Corporate bonds	2070		386		351		414		377
Short-term investments and receivables/payables1	One-year		146		110		154		116
Total debt securities and other		$	2,300	$	2,158		2,494		2,338
Equity securities							1,632		1,610
Total						$	4,126	$	3,948

1 Short-term investments included $9 million and $41 million of repurchase agreements payable by financial institutions which earn interest, were fully and 97% secured by U.S. Treasury securities and mature by July 3, 2023 and January 3, 2023 as of June 30, 2023 and December 31, 2022, 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 $1.6 billion at both June 30, 2023 and December 31, 2022.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $352 million and $321 million at June 30, 2023 and December 31, 2022, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.8 billion and $3.6 billion at June 30, 2023 and December 31, 2022, respectively.

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

	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Gross realized gains	$	124	$	74	$	195	$	89
Gross realized losses		(8)		(45)		(31)		(61)
Net unrealized (losses)/gains for equity securities		(11)		(332)		64		(432)

Due to regulatory mechanisms, changes in assets of the trusts from income or loss items do not materially affect earnings.

Edison International Parent and Other's Investments

Edison International Parent and Other hold strategic investments in companies focused on developing electric technologies and services, included as "Other investments" on Edison International's consolidated balance sheets. As of June 30, 2023 and December 31, 2022, these investments consist of $1 million and $5 million of marketable securities, respectively, and $12 million of equity investments without readily determinable fair values at both dates. For further information of fair value and unrealized gains/(losses) of marketable securities, which are recorded in "Other income" on Edison Internationals' consolidated statements of income, see Note 4 and Note 15, respectively. The equity investments without readily determinable fair values balances included cumulative upward adjustments of $9 million at both June 30, 2023 and December 31, 2022. The cumulative upward adjustments resulted primarily from values determined by additional capital infusions.