EX-99.1 2 d299619dex991.htm EDISON INTERNATIONAL PRESS RELEASE Edison International Press Release

Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE  

Media relations contact:

Charles Coleman, (626) 302-7982

 

Investor relations contact:

Scott Cunningham, (626) 302-2540

Edison International Reports 2011 Results

 

  •  

Company reported full-year 2011 basic losses of $(0.11) per share, compared to earnings of $3.84 per share in 2010. Core earnings for 2011 were $3.22 per share, compared to $3.48 per share last year.

 

  •  

Company reported fourth quarter 2011 basic losses of $(2.57) per share, compared to earnings of $0.51 per share in the same quarter last year. Fourth quarter core earnings for 2011 were $0.75 per share, compared to $0.58 per share in the same quarter last year.

 

  •  

The basic losses primarily relate to Edison Mission Group’s (EMG) impairment of its Homer City plant and three Midwest Generation stations.

ROSEMEAD, Calif., Feb. 29, 2012 – Edison International (NYSE: EIX) today reported fourth quarter 2011 basic losses of $(2.57) per share, compared to basic earnings of $0.51 per share in the same quarter last year. Fourth quarter 2011 core earnings were $0.75 per share, compared to core earnings of $0.58 per share in the fourth quarter of 2010. Higher fourth quarter core earnings at Southern California Edison (SCE) were partially offset by losses at EMG driven by lower energy prices, capacity prices, and generation.

For 2011, the company reported basic losses of $(0.11) per share compared to basic earnings of $3.84 per share in 2010, while core earnings for 2011 decreased 7 percent to $3.22 per share compared to $3.48 per share in 2010. The increase in core earnings at SCE was more than offset by losses at EMG driven by lower energy prices, capacity prices, and generation.

“For 2011, Edison International posted core earnings above its earnings guidance range and above Street consensus, although we reported a full-year loss due to impairment charges at our competitive generation subsidiary, EMG,” said Ted Craver, chairman and chief executive officer of Edison International. “Southern California Edison continued to contribute strong earnings growth from its ongoing capital investment program. Given the challenging market conditions facing EMG, we have taken important steps at EMG to preserve and enhance liquidity.”

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Note: GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release. Core earnings are a non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP Earnings and Reconciliation of Core Earnings Per Share Guidance to Basic Earnings Per Share Guidance.

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 2 of 14

 

Fourth Quarter Earnings Detail

SCE’s fourth quarter 2011 basic and core earnings were $0.76 per share compared to $0.56 per share in the fourth quarter of 2010. Core earnings increased primarily due to rate base growth and also included a $0.09 per share benefit related to cumulative changes to deferred income taxes.

EMG’s fourth quarter 2011 basic losses were $(3.29) per share compared to earnings of $0.03 per share in the fourth quarter of 2010. Core losses were $(0.03) per share compared to earnings of $0.10 per share in the same quarter last year. Core losses resulted from lower capacity revenues, realized energy prices, and generation, and higher interest expense, partially offset by higher trading and renewables project income. Fourth quarter 2011 results included the following non-core items: impairment charges for Homer City, three Midwest Generation facilities, and certain wind assets, charges resulting from reduced wind development activity, and charges from the write-off of an American Airlines aircraft lease receivable. Also included was a benefit related to the prior March Point sale. Fourth quarter 2010 results included a non-core charge related to the write-off of capitalized costs at Midwest Generation.

The Homer City impairment charge reflects EMG’s expectation that it is likely to lose substantially all beneficial economic interest in Homer City as a result of an inability to secure third-party financing of environmental controls and the current process underway to transfer Homer City to the owner-lessors. Reflecting low power prices and required retrofits which are less economical for some smaller coal-fired generation stations, EMG decided to shut down Midwest Generation’s Fisk by the end of 2012 and Crawford by the end of 2014. It also concluded it was less likely to retrofit Waukegan than the remaining larger stations, though no final decision has been made. These decisions resulted in impairments of all three Midwest Generation stations.

Edison International parent company and other reported a fourth quarter 2011 basic loss of $(0.04) per share compared to a $(0.08) per share basic loss in the same quarter last year. Core earnings were $0.02 per share in the fourth quarter of 2011 compared to core losses of $(0.08) per share in the fourth quarter of 2010. Non-core charges in the fourth quarter of 2011 included a $(0.06) per share consolidated deferred tax adjustment related to EMG asset impairments.

Full-Year Earnings Detail

SCE’s basic earnings in 2011 were $3.33 per share compared to $3.19 per share in 2010. Core earnings were $3.33 per share compared to $3.01 per share in 2010. The increase in core earnings was primarily driven by rate base growth.

EMG’s basic losses in 2011 were $(3.34) per share compared to earnings of $0.69 per share in 2010. Core losses were $(0.07) per share compared to earnings of $0.59 per share in 2010. EMG’s core losses were driven by lower average realized energy prices, capacity prices, and generation for the merchant coal plants, higher interest expense, and lower trading revenue. Losses were partially offset by an increase in renewable project income. Non-core items in 2011 included the fourth quarter non-core items discussed above together with impacts from discontinued operations. Non-core items in 2010 included benefits from tax settlements and discontinued operations, and a charge from the write-off of capitalized costs.

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Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 3 of 14

 

Edison International parent company and other reported 2011 basic losses of $(0.10) per share compared to a loss of $(0.04) per share in 2010. Core losses were $(0.04) per share in 2011 compared to a loss of $(0.12) per share in 2010. Non-core items included a charge for consolidated deferred tax adjustment related to asset impairment in 2011 and a benefit associated with the global settlement in 2010.

2012 Earnings Guidance

The company will provide 2012 earnings guidance after SCE has received a final decision on its 2012 General Rate Case from the California Public Utilities Commission. See the risk disclosure statement on page 4 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.

About Edison International

Edison International, through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities, and Edison Mission Group, a competitive power generation business.

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Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 4 of 14

 

Appendix

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (core EPS) by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and core EPS by principal operating subsidiary when communicating with analysts and investors regarding our earnings results and outlook to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of losses or losses per share.

Core earnings are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings and core EPS are defined as GAAP earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. GAAP earnings refer to net income attributable to Edison International common shareholders or attributable to the common shareholders of each subsidiary. Core earnings are reconciled to GAAP earnings in the attached tables. EPS by principal operating subsidiary is based on the principal operating subsidiaries’ net income attributable to the common shareholders of each operating subsidiary, respectively, and Edison International’s weighted average outstanding common shares. The impact of participating securities (vested stock options that earn dividend equivalents that may participate in undistributed earnings with common stock) for each principal operating subsidiary is not material to each principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which we refer to as EIX parent company and other. EIX core EPS and core EPS by principal operating subsidiary are reconciled to basic EPS.

About Asset Impairment Charges

Long-lived assets, including intangible assets, are evaluated for impairment in accordance with applicable authoritative guidance. Authoritative guidance requires that if the undiscounted expected future cash flow from a company’s assets or group of assets (without interest charges) is less than its carrying value, asset impairment must be recognized on the financial statements. The impairment charges, if applicable, are calculated as the excess of the asset’s carrying value over its fair value, which represents the discounted expected future cash flows attributable to the asset or, in the case of assets expected to be sold, at fair value less costs to sell. Long-lived assets for impairment are evaluated whenever indicators of impairment exist or when there is a commitment to sell or dispose of the asset. These evaluations may result from significant decreases in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used in its physical condition, a significant adverse change in legal factors or in the business climate that could affect the value of an asset, as well as economic or operational analyses.

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Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 5 of 14

 

Risk Disclosure Statement

      Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s 2011 Form 10-K and other reports filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

Reminder: Edison International Will Hold a Conference Call Today

 

When:

    Wednesday, February 29, 2012, 2:00 p.m. (Pacific Standard Time)

Telephone Numbers:

    1-800-369-2198 (US) and 1-773-756-4618 (Int’l) - Passcode: Edison

Telephone Replay:

   

1-800-839-4843 (US) and 1-203-369-3590 (Int’l) - Passcode: 468529

Telephone replay available through March 9, 2012

Webcast:

    www.edisoninvestor.com

The prepared remarks made on the conference call by Ted Craver, chairman and chief executive officer of Edison International, will be available at www.edisoninvestor.com.

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 6 of 14

 

Summary Financial Schedules

Fourth Quarter Basic Earnings (Loss) Per Share

 

    

Quarter Ended December 31,

  

Earnings (Loss) Per Common Share

Attributable to Edison International (Unaudited)

          2011      2010      Change  

SCE

         $0.76         $0.56         $0.20   

EMG

         (3.29)         0.03         (3.32)   

EIX parent company and other

           (0.04)         (0.08)         0.04   

EIX earnings (loss) from continuing operations

           (2.57)         0.51         (3.08)   

EIX earnings (loss) from discontinued operations

           —         —         —   

EIX basic earnings (loss)1

         $(2.57)         $0.51         $(3.08)   
                                 

EIX diluted earnings (loss)

         $(2.57)         $0.51         $(3.08)   
                                 
1 The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for both quarters.

Fourth Quarter Reconciliation of Core Earnings (Loss) Per Share

to Basic Earnings (Loss) Per Share

 

     Quarter Ended December 31,  

Earnings (Loss) Per Common Share

Attributable to Edison International (Unaudited)

          2011      2010      Change  

Core Earnings (Loss)1

            

SCE

         $0.76         $0.56         $0.20   

EMG

         (0.03)         0.10         (0.13)   

EIX parent company and other

           0.02         (0.08)         0.10   

EIX core earnings

         0.75         0.58         0.17   
                                 

Non-core items

            

EMG – write-off of capitalized costs

         —         (0.07)         0.07   

EMG – gain on sale of March Point

         0.02         —         0.02   

EMG – impairment of three Midwest Generation

facilities

         (1.19)         —         (1.19)   

EMG – impairment of Homer City

         (1.91)         —         (1.91)   

EMG – impairment of wind portfolio and charges

         (0.13)         —         (0.13)   

EMG – write-off of American Airlines aircraft lease

receivable

         (0.05)         —         (0.05)   

EIX – deferred tax adjustment related to impairment

           (0.06)         —         (0.06)   

Total non-core items

           (3.32)         (0.07)         (3.25)   

EIX basic earnings (loss)1

         $(2.57)         $0.51         $(3.08)   
                                 
1 See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for both quarters.

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 7 of 14

 

Fourth Quarter Basic Earnings (Loss)

 

     Quarter Ended December 31,         

  Earnings (Loss) (in millions)

  Attributable to Edison International (Unaudited)

          2011      2010      Change  

SCE

         $    247         $  181         $  66   

EMG

         (1,071)         10         (1,081)   

EIX parent company and other

         (15)         (25)         10   
                                 

  EIX earnings (loss) from continuing operations

         (839)         166         (1,005)   
                                 

  EIX earnings (loss) from discontinued operations

         —         —         —   
                                 

  EIX basic earnings (loss)

         $  (839)         $  166         $  (1,005)   
                                 

Fourth Quarter Reconciliation of Core Earnings (Loss) to Basic Earnings (Loss)

 

     Quarter Ended December 31,         

  Earnings (Loss) (in millions)

  Attributable to Edison International (Unaudited)

          2011      2010      Change  

  Core Earnings (Loss)1

            

SCE

         $    247         $  181         $  66   

EMG

         (10)         34         (44)   

EIX parent company and other

         6         (25)         31   
                                 

  EIX core earnings

         243         190         53   
                                 

  Non-core items

            

EMG – write-off of capitalized costs

         —         (24)         24   

EMG – gain on sale of March Point

         5         —         5   

EMG – impairment of three Midwest Generation
        facilities

         (386)         —         (386)   

EMG – impairment of Homer City

         (623)         —         (623)   

EMG – impairment of wind portfolio and charges

         (41)         —         (41)   

EMG – write-off of American Airlines aircraft lease
        receivable

         (16)         —         (16)   

EIX – deferred tax adjustment related to impairment

         (21)         —         (21)   
                                 

  Total non-core items

         (1,082)         (24)         (1,058)   
                                 

  EIX basic earnings (loss)

         $  (839)         $  166         $  (1,005)   
                                 

  1     See Use of Non-GAAP Financial Measures on page 4.

 

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 8 of 14

 

Full-Year Basic Earnings (Loss) Per Share

 

     Year Ended December 31,  

  Earnings (Loss) Per Common Share

  Attributable to Edison International (Unaudited)

          2011      2010      Change  

   SCE

         $ 3.33         $ 3.19         $ 0.14   

   EMG

         (3.33)         0.68         (4.01)   

   EIX parent company and other

         (0.10)         (0.04)         (0.06)   
                                 

  EIX earnings (loss) from continuing operations

         (0.10)         3.83         (3.93)   
                                 

  EIX earnings (loss) from discontinued operations

         (0.01)         0.01         (0.02)   
                                 

  EIX basic earnings (loss)1

         $  (0.11)         $  3.84         $  (3.95)   
                                 

  EIX diluted earnings (loss)

         $  (0.11)         $  3.82         $  (3.93)   
                                 
  1    The impact of participating securities is included in EIX parent company and other and was zero per share for 2011 and $(0.01) for 2010.

Full-Year Reconciliation of Core Earnings (Loss) Per Share

to Basic Earnings (Loss) Per Share

 

     Year Ended December 31,  

  Earnings (Loss) Per Common Share

  Attributable to Edison International (Unaudited)

          2011      2010      Change  

  Core Earnings (Loss)1

            

   SCE

         $ 3.33         $ 3.01         $ 0.32   

   EMG

         (0.07)         0.59         (0.66)   

   EIX parent company and other

         (0.04)         (0.12)         0.08   
                                 

  EIX core earnings

         3.22         3.48         (0.26)   
                                 

  Non-core items

            

  SCE – regulatory items

         —         (0.12)         0.12   

  Global settlement

            

   SCE

         —         0.30         (0.30)   

   EMG

         —         0.16         (0.16)   

   EIX parent company and other

         —         0.08         (0.08)   

  EMG – write-off of capitalized costs

         —         (0.07)         0.07   

  EMG – gain on sale of March Point

         0.02         —         0.02   

  EMG – impairment of three Midwest Generation
          facilities

         (1.19)         —         (1.19)   

  EMG – impairment of Homer City

         (1.91)         —         (1.91)   

  EMG – impairment of wind portfolio and charges

         (0.13)         —         (0.13)   

  EMG – write-off of American Airlines aircraft lease
          receivable

         (0.05)         —         (0.05)   

  EMG – discontinued operations

         (0.01)         0.01         (0.02)   

  EIX – deferred tax adjustment related to impairment

         (0.06)         —         (0.06)   
                                 

  Total non-core items

         (3.33)         0.36         (3.69)   
                                 

  EIX basic earnings (loss)1

         $  (0.11)         $  3.84         $  (3.95)   
                                 
  1    See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities is included in EIX parent company and other and was zero per share for 2011 and $(0.01) for 2010.

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 9 of 14

 

Full-Year Basic Earnings (Loss)

 

     Year Ended December 31,  

  Earnings (Loss) (in millions)

  Attributable to Edison International (Unaudited)

          2011      2010      Change  

  SCE

         $ 1,085         $ 1,040         $ 45   

  EMG

         (1,086)         220         (1,306)   

  EIX parent company and other

           (33)         (8)         (25)   

  EIX earnings (loss) from continuing operations

           (34)         1,252         (1,286)   

  EIX earnings (loss) from discontinued operations

           (3)         4         (7)   

  EIX basic earnings (loss)

         $ (37)         $1,256         $ (1,293)   
                                 

Full-Year Reconciliation of Core Earnings (Loss) to Basic Earnings (Loss)

 

     Year Ended December 31,  

  Earnings (Loss) (in millions)

  Attributable to Edison International (Unaudited)

          2011      2010      Change  

  Core Earnings (Loss)1

            

SCE

         $ 1,085         $ 984         $ 101   

EMG

         (25)         192         (217)   

EIX parent company and other

           (12)         (36)         24   

  EIX core earnings

           1,048         1,140         (92)   

  Non-core items

            

  SCE – regulatory items

         —         (39)         39   

  Global settlement

            

  SCE

         —         95         (95)   

  EMG

         —         52         (52)   

  EIX parent company and other

         —         28         (28)   

  EMG – write-off of capitalized costs

         —         (24)         24   

  EMG – gain on sale of March Point

         5         —         5   

  EMG – impairment of three Midwest Generation
          facilities

         (386)         —         (386)   

  EMG – impairment of Homer City

         (623)         —         (623)   

  EMG – impairment of wind portfolio and charges

         (41)         —         (41)   

  EMG – write-off of American Airlines aircraft lease
          receivable

         (16)         —         (16)   

  EMG – discontinued operations

         (3)         4         (7)   

  EIX – deferred tax adjustment related to impairment

           (21)         —         (21)   

  Total non-core items

           (1,085)         116         (1,201)   

  EIX basic earnings (loss)

         $ (37)         $ 1,256         $ (1,293)   
                                 

  1     See Use of Non-GAAP Financial Measures on page 4.

 

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 10 of 14

 

 

 

Consolidated Statements of Income    Edison International  
     

Quarter Ended

December 31,

     

Year Ended

December 31,

  
  (in millions, except per-share amounts)    2011          2010          2011          2010      

  Electric utility

    $ 2,513       $ 2,479       $ 10,574       $ 9,980   

  Competitive power generation

      500         590         2,186         2,429   

  Total operating revenue

      3,013         3,069         12,760         12,409   

  Fuel

      299         295         1,166         1,172   

  Purchased power

      568         593         2,989         2,930   

  Operation and maintenance

      1,252         1,327         4,776         4,612   

  Depreciation, decommissioning and amortization

      449         395         1,737         1,522   

  Asset impairments, lease terminations and other

      1,764         45         1,772         47   

  Total operating expenses

      4,332         2,655         12,440         10,283   

  Operating income (loss)

      (1,319)         414         320         2,126   

  Interest and dividend income (expense)

      (1)         3         37         31   

  Equity in income from unconsolidated affiliates – net

      19         6         86         106   

  Other income

      45         46         156         148   

  Interest expense

      (207)         (185)         (808)         (703)   

  Other expenses

      (18)         (13)         (55)         (51)   

  Income (loss) from continuing operations before income taxes

      (1,481)         271         (264)         1,657   

  Income tax expense (benefit)

      (657)         93         (288)         354   

  Income (loss) from continuing operations

      (824)         178         24         1,303   

  Income (loss) from discontinued operations – net of tax

      —         —         (3)         4   

  Net income (loss)

      (824)         178         21         1,307   

  Dividends on preferred and preference stock of utility

      15         13         59         52   

  Other noncontrolling interest

      —         (1)         (1)         (1)   

  Net income (loss) attributable to Edison International common
shareholders

    $ (839)       $ 166       $ (37)       $ 1,256   

  Amounts attributable to Edison International common shareholders:

            

  Income (loss) from continuing operations, net of tax

    $ (839)       $ 166       $ (34)       $ 1,252   

  Income (loss) from discontinued operations, net of tax

      —         —         (3)         4   

  Net income (loss) attributable to Edison International common
shareholders

    $ (839)       $ 166       $ (37)       $ 1,256   

  Basic earnings (loss) per common share attributable to Edison
International common shareholders:

            

  Weighted-average shares of common stock outstanding

      326         326         326         326   

  Continuing operations

    $ (2.57)       $ 0.51       $ (0.10)       $ 3.83   

  Discontinued operations

      —         —         (0.01)         0.01   

  Total

    $ (2.57)       $ 0.51       $ (0.11)       $ 3.84   

  Diluted earnings per common share attributable to Edison
International common shareholders:

            

  Weighted-average shares of common stock outstanding, including
effect of dilutive securities

      326         329         326         329   

  Continuing operations

    $ (2.57)       $ 0.51       $ (0.10)       $ 3.81   

  Discontinued operations

      —         (0.01)         (0.01)         0.01   

  Total

    $ (2.57)       $ 0.50       $ (0.11)       $ 3.82   

  Dividends declared per common share

      $    0.325       $ 0.320         $    1.285       $ 1.265   

 

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 11 of 14

 

 

 

  Consolidated Balance Sheets    Edison International  
     December 31,   

  (in millions)

      2011             2010       

  ASSETS

      

  Cash and cash equivalents

      $    1,469         $    1,389   

  Receivables, less allowances of $75 and $85 for uncollectible accounts at respective dates

      908         931   

  Accrued unbilled revenue

      519         442   

  Inventory

      624         568   

  Prepaid taxes

      88         390   

  Derivative assets

      106         133   

  Restricted cash and cash equivalents

      103         2   

  Margin and collateral deposits

      58         65   

  Regulatory assets

      494         378   

  Other current assets

      115         124   

  Total current assets

      4,484         4,422   

  Nuclear decommissioning trusts

      3,592         3,480   

  Investments in unconsolidated affiliates

      525         559   

  Other investments

      211         223   

  Total investments

      4,328         4,262   

  Utility property, plant and equipment, less accumulated depreciation of $6,894 and $6,319 at respective dates

      27,569         24,778   

  Competitive power generation and other property, plant and equipment, less accumulated depreciation of $1,408 and $1,865 at respective dates

      4,547         5,406   

  Total property, plant and equipment

      32,116         30,184   

  Derivative assets

      128         437   

  Restricted deposits

      51         47   

  Rent payments in excess of levelized rent expense under plant operating leases

      760         1,187   

  Regulatory assets

      5,466         4,347   

  Other long-term assets

      706         644   

  Total long-term assets

      7,111         6,662   

  Total assets

      $   48,039         $   45,530   

 

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 12 of 14

 

 

 

  Consolidated Balance Sheets    Edison International  
     December 31,   

  (in millions, except share amounts)

      2011             2010        

  LIABILITIES AND EQUITY

     

  Short-term debt

      $      429        $      115   

  Current portion of long-term debt

      57        48   

  Accounts payable

      1,419        1,362   

  Accrued taxes

      52        52   

  Accrued interest

      205        205   

  Customer deposits

      199        217   

  Derivative liabilities

      268        217   

  Regulatory liabilities

      670        738   

  Other current liabilities

      1,049        998   

  Total current liabilities

      4,348        3,952   

  Long-term debt

      13,689        12,371   

  Deferred income taxes

      5,396        5,625   

  Deferred investment tax credits

      89        122   

  Customer advances

      138        112   

  Derivative liabilities

      547        468   

  Pensions and benefits

      2,912        2,260   

  Asset retirement obligations

      2,688        2,561   

  Regulatory liabilities

      4,670        4,524   

  Other deferred credits and other long-term liabilities

      2,476        2,041   

  Total deferred credits and other liabilities

      18,916        17,713   

  Total liabilities

      36,953        34,036   

  Commitments and contingencies

     

  Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date)

      2,360        2,331   

  Accumulated other comprehensive income

      (139 )      (76 ) 

  Retained earnings

      7,834        8,328   

  Total Edison International’s common shareholders’ equity

      10,055        10,583   

  Preferred and preference stock of utility

      1,029        907   

  Other noncontrolling interest

      2        4   

  Total noncontrolling interests

      1,031        911   

  Total equity

      11,086        11,494   

  Total liabilities and equity

      $   48,039        $   45,530   

 

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 13 of 14

 

 

 

  Consolidated Statement of Cash Flows    Edison International  
     Years Ended December 31,  
  (in millions)    2011          2010          2009      

  Cash flows from operating activities:

         

  Net income

    $ 21       $     1,307         $        945   

  Less: Income (loss) from discontinued operations

      (3)         4         (7)   

  Income from continuing operations

      24         1,303         952   

  Adjustments to reconcile to net cash provided by operating activities:

         

  Depreciation, decommissioning and amortization

      1,737         1,522         1,418   

  Regulatory impacts of net nuclear decommissioning trust earnings

      146         189         158   

  Other amortization

      152         118         120   

  Asset impairments, lease terminations and other

      1,759         47         888   

  Stock-based compensation

      30         30         22   

  Equity in income unconsolidated affiliates

      (86)         (106)         (42)   

  Distributions unconsolidated affiliates

      82         92         31   

  Deferred income taxes and investment tax credits

      (188)         1,139         (1,457)   

  Income from leveraged leases

      (5)         (5)         (14)   

  Proceeds from U.S. treasure grants

      388         92         —   

  Changes in operating assets and liabilities:

         

  Receivables

      19         (155)         80   

  Inventory

      (56)         (49)         20   

  Margin and collateral deposits – net of collateral received

      25         63         30   

  Prepaid taxes

      302         (357)         178   

  Other current assets

      (85)         (24)         (45)   

  Rent payments in excess of levelized rent expense

      (136)         (149)         (160)   

  Accounts payable

      56         (3)         152   

  Accrued taxes

      —         (135)         (402)   

  Other current liabilities

      (33)         13         31   

  Derivative assets and liabilities – net

      383         (44)         (581)   

  Regulatory assets and liabilities – net

      (1,080)         278         1,457   

  Other assets

      (120)         (71)         62   

  Other liabilities

      595         (315)         154   

  Operating cash flows from discontinued operations

      (3)         4         (7)   

  Net cash provided by operating activities

      3,906         3,477         3,045   

  Cash flows from financing activities:

         

  Long-term debt issued

      1,376         1,936         939   

  Long-term debt issuance costs

      (35)         (38)         (25)   

  Long-term debt repaid

      (67)         (396)         (1,044)   

  Bonds purchased

      (86)         —         (219)   

  Preference stock issued – net

      123         —         —   

  Short-term debt financing – net

      389         30         (2,058)   

  Borrowing held in escrow pending completion of project construction

      (97)         —         —   

  Settlements of stock-based compensation – net

      (20)         (16)         (3)   

  Cash contributions from noncontrolling interests

      —         —         2   

  Dividends and distributions to noncontrolling interests

      (59)         (52)         (117)   

  Dividends paid

      (417)         (411)         (404)   

  Net cash provided (used) by financing activities

    $ 1,107       $ 1,053         $  (2,929)   

 

Edison International Reports Fourth Quarter and Full Year 2011 Financial Results

Page 14 of 14

 

 

 

  Consolidated Statement of Cash Flows    Edison International  
     Years Ended December 31,   

  (in millions)

      2011         2010         2009   

  Cash flows from investing activities:

         

  Capital expenditures

      $  (4,808)         $  (4,543)         $  (3,282)   

  Purchase of interest in acquired companies

      (3)         (4)         (22)   

  Proceeds from termination of leases

      —         —         1,420   

  Proceeds from sale of nuclear decommissioning trust investments

      2,773         1,432         2,217   

  Purchases of nuclear decommissioning trust investments and other

      (2,940)         (1,651)         (2,416)   

  Proceeds from partnerships and unconsolidated subsidiaries, net of investment

      41         44         11   

  Investments in other assets

      4         (1)         (287)   

  Effect of consolidation and deconsolidation of variable interest entities

      —         (91)         —   

  Net cash used by investing activities

      (4,933)         (4,841)         (2,359)   

  Net increase (decrease) in cash and equivalents

      80         (284)         (2,243)   

  Cash and cash equivalents, beginning of year

      1,389         1,673         3,916   

  Cash and cash equivalents, end of year

      $    1,469         $    1,389         $    1,673