Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies

Cash Equivalents

The cash equivalents were as follows:

	Edison International				SCE
	December 31,
(in millions)	2023		2022		2023		2022
Money market funds	$	199	$	784	$	78	$	647

Cash, Cash Equivalents and Restricted Cash

The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:

	December 31,
(in millions)	2023		2022
Edison International:
Cash and cash equivalents	$	345	$	914
Short-term restricted cash1		35		3
Long-term restricted cash2		152		—
Total cash, cash equivalents and restricted cash	$	532	$	917
SCE:
Cash and cash equivalents	$	214	$	766
Short-term restricted cash1		33		—
Long-term restricted cash2		151		—
Total cash, cash equivalents and restricted cash	$	398	$	766

1 Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.

2 The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information.

Changes in Allowance for Uncollectible Accounts

The following table sets forth the changes in allowance for uncollectible accounts for SCE:

(in millions)	Customers		All others		Total
Balance at December 31, 2020	$	175	$	13	$	188
Current period provision for uncollectible accounts1		124		11		135
Write-offs, net of recoveries		(6)		(8)		(14)
Balance at December 31, 2021	$	293	$	16	$	309
Current period provision for uncollectible accounts1		111		11		122
Write-offs, net of recoveries		(70)		(7)		(77)
Balance at December 31, 2022²	$	334	$	20	$	354
Current period provision for uncollectible accounts1		109		6		115
Write-offs, net of recoveries		(96)		(9)		(105)
Balance at December 31, 2023²	$	347	$	17	$	364

1 This includes $78 million, $40 million and $91 million of incremental costs for the years ended December 31, 2023, 2022 and 2021, respectively, which were probable of recovery from customers and recorded as regulatory assets.

2 Approximately $4 million and $7 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively.

Property, plant and equipment useful lives

Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows:

		Weighted Average
	Estimated Useful Lives	Useful Lives
Generation plant	10 years to 54 years	39 years
Distribution plant	20 years to 67 years	50 years
Transmission plant	30 years to 65 years	54 years
General plant and other	5 years to 60 years	20 years

Reconciliation of the Changes in ARO Liability

The following table summarizes the changes in SCE's ARO liability:

	December 31,
(in millions)	2023		2022
Beginning balance	$	2,754	$	2,772
Accretion1		144		143
Revisions		(3)		28
Liabilities settled		(229)		(189)
Ending balance	$	2,666	$	2,754

1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting.

Amortization of Deferred Financing Costs

Amortization of deferred financing costs charged to interest expense is as follows:

	Edison International						SCE
	Years ended December 31,
(in millions)	2023		2022		2021		2023		2022		2021
Amortization of deferred financing costs charged to interest expense	$	39	$	37	$	34	$	32	$	31	$	29

EPS Attributable to Edison International Common Shareholders

EPS attributable to Edison International common shareholders was computed as follows:

	Years ended December 31,
(in millions, except per-share amounts)	2023		2022		2021
Basic earnings per share:
Net income attributable to common shareholders	$	1,197	$	612	$	759
Net income available to common shareholders	$	1,197	$	612	$	759
Weighted average common shares outstanding		383		381		380
Basic earnings per share	$	3.12	$	1.61	$	2.00
Diluted earnings per share:
Net income attributable to common shareholders	$	1,197	$	612	$	759
Net income available to common shareholders	$	1,197	$	612	$	759
Income impact of assumed conversions		1		1		1
Net income available to common shareholders and assumed conversions	$	1,198	$	613	$	760
Weighted average common shares outstanding		383		381		380
Incremental shares from assumed conversions		2		2		—
Adjusted weighted average shares – diluted		385		383		380
Diluted earnings per share	$	3.11	$	1.60	$	2.00