Consolidated Statement of Changes in Equity

6 Months Ended

Jun. 30, 2011

Consolidated Statement of Changes in Equity

Consolidated Statement of Changes in Equity

Note 2. Consolidated Statement of Changes in Equity

The following table provides the changes in equity for the six months ended June 30, 2011:

	EME Shareholder's Equity

(in millions)	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Non- controlling Interest			Total Equity

Balance at December 31, 2010	$	64	$	1,336		$	1,448		$	(31	)	$	4		$	2,821
Net loss		—		—			(52	)		—			—			(52	)
Other comprehensive loss		—		—			—			(24	)		—			(24	)
Payments to Edison International for stock purchases related to stock-based compensation		—		—			(3	)		—			—			(3	)
Excess tax benefits related to stock option exercises		—		1			—			—			—			1
Other stock transactions, net		—		2			—			—			—			2
Purchase of noncontrolling interests¹		—		(4	)		—			—			(1	)		(5	)

Balance at June 30, 2011	$	64	$	1,335		$	1,393		$	(55	)	$	3		$	2,740

¹: During the second quarter of 2011, EME purchased a noncontrolling interest in Pinnacle Wind Force, LLC, which is now 100% owned by EME.

The following table provides the changes in equity for the six months ended June 30, 2010:

	EME Shareholder's Equity

(in millions)	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income			Non- controlling Interest			Total Equity

Balance at December 31, 2009	$	64	$	1,339		$	1,280		$	78		$	76		$	2,837
Impact of consolidation and deconsolidation of variable interest entities¹		—		—			10			—			(71	)		(61	)
Net income		—		—			64			—			—			64
Other comprehensive loss		—		—			—			(55	)		—			(55	)
Payments to Edison International for stock purchases related to stock-based compensation		—		—			(2	)		—			—			(2	)
Other stock transactions, net		—		3			—			—			—			3
Purchase of noncontrolling interests²		—		(5	)		—			—			—			(5	)

Balance at June 30, 2010	$	64	$	1,337		$	1,352		$	23		$	5		$	2,781

¹: For the six months ended June 30, 2010, reflects the impact of adopting accounting guidance related to variable interest entities.
²: During the second quarter of 2010, EME purchased a noncontrolling interest in Laredo Ridge, which is now 100% owned by EME. The purchase of the noncontrolling interest was accounted for as an equity transaction between controlling and noncontrolling interest holders.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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