Consolidated Statement of Changes in Equity

9 Months Ended

Sep. 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 nine months ended September 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		—		—			(18	)		—			(1	)		(19	)
Other comprehensive loss		—		—			—			(53	)		—			(53	)
Payments to Edison International for stock purchases related to stock-based compensation		—		—			(4	)		—			—			(4	)
Excess tax benefits related to stock option exercises		—		1			—			—			—			1
Other stock transactions, net		—		3			—			—			—			3
Purchase of noncontrolling interests1		—		(14	)		—			—			(1	)		(15	)
Balance at September 30, 2011	$	64	$	1,326		$	1,426		$	(84	)	$	2		$	2,734

¹

During the nine months ended September 30, 2011, EME purchased the remaining interests in Pinnacle Wind Force, LLC, and Broken Bow I, LLC and all assets of the Crofton Bluffs project. All three projects are now 100% owned by EME. The purchases of the noncontrolling interests were accounted for as equity transactions between controlling and noncontrolling interest holders.

The following table provides the changes in equity for the nine months ended September 30, 2010:

	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, 2009	$	64	$	1,339		$	1,280		$	78		$	76		$	2,837
Impact of deconsolidation of variable interest entities1		—		—			10			—			(71	)		(61	)
Net income		—		—			177			—			—			177
Other comprehensive loss		—		—			—			(19	)		—			(19	)
Payments to Edison International for stock purchases related to stock-based compensation		—		—			(3	)		—			—			(3	)
Other stock transactions, net		—		5			—			—			—			5
Purchase of noncontrolling interests2		—		(5	)		—			—			—			(5	)
Balance at September 30, 2010	$	64	$	1,339		$	1,464		$	59		$	5		$	2,931

¹

For the nine months ended September 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.