Investments

9 Months Ended

Sep. 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	September 30,		December 31,		September 30,		December 31,
(in millions)	Maturity Dates	2023		2022		2023		2022
Municipal bonds	2061	$	632	$	672	$	682	$	754
Government and agency securities	2073		1,146		1,025		1,210		1,091
Corporate bonds	2070		350		351		376		377
Short-term investments and receivables/payables1	One-year		115		110		125		116
Total debt securities and other		$	2,243	$	2,158		2,393		2,338
Equity securities							1,550		1,610
Total						$	3,943	$	3,948

1 As of December 31, 2022, short-term investments included $41 million of repurchase agreement payable by financial institutions which earned interest, was 97% secured by U.S. Treasury securities and matured on January 3, 2023.

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 $1.5 billion and $1.6 billion at September 30, 2023 and December 31, 2022, respectively.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $313 million and $321 million at September 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 $3.6 billion at both September 30, 2023 and December 31, 2022.

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

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Gross realized gains	$	48	$	22	$	243	$	111
Gross realized losses		(38)		(35)		(69)		(96)
Net unrealized (losses)/gains for equity securities		(81)		(83)		(17)		(515)

Due to regulatory mechanisms, changes in the 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 September 30, 2023, these investments consisted of $13 million of equity investments without readily determinable fair values. As of December 31, 2022, these investments consisted of $5 million of marketable securities and $12 million of equity investments without readily determinable fair values. 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, resulting primarily from values determined by additional capital infusions, at both September 30, 2023 and December 31, 2022.