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Compensation and Benefit Plans
9 Months Ended
Sep. 30, 2011
Compensation And Benefit Plans Disclosure [Abstract] 
Compensation and Benefit Plans
Compensation and Benefit Plans
Pension Plans and Postretirement Benefits Other Than Pensions
Pension Plans
During the nine months ended September 30, 2011, SCE made contributions of $90 million and during the remainder of 2011, expects to make $24 million of additional contributions. SCE's 2011 annual contributions made to most of its pension plans are recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the annual expense.
Expense components are:
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2011
 
2010
 
2011
 
2010
Service cost
$
38

 
$
29

 
$
114

 
$
87

Interest cost
47

 
49

 
141

 
147

Expected return on plan assets
(56
)
 
(49
)
 
(168
)
 
(147
)
Amortization of prior service cost
2

 
2

 
6

 
6

Amortization of net loss
4

 
6

 
12

 
18

Expense under accounting standards
35

 
37

 
105

 
111

Regulatory adjustment – deferred
(6
)
 
(14
)
 
(18
)
 
(42
)
Total expense recognized
$
29

 
$
23

 
$
87

 
$
69

Postretirement Benefits Other Than Pensions
During the nine months ended September 30, 2011, SCE made contributions of $17 million and during the remainder of 2011, expects to make $37 million of additional contributions. SCE's annual contributions are recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the annual expense.
Expense components are:
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2011
 
2010
 
2011
 
2010
Service cost
$
10

 
$
7

 
$
30

 
$
21

Interest cost
31

 
30

 
93

 
90

Expected return on plan assets
(27
)
 
(25
)
 
(81
)
 
(75
)
Amortization of prior service cost (credit)
(9
)
 
(9
)
 
(27
)
 
(27
)
Amortization of net loss
9

 
8

 
27

 
24

Total expense
$
14

 
$
11

 
$
42

 
$
33

Stock-Based Compensation
During 2011, Edison International granted stock-based compensation awards to SCE employees, which included stock options, performance shares and restricted stock units.
Stock Options
The following is a summary of the status of Edison International stock options granted to SCE employees:
 
 
 
Weighted-Average
 
 
 
Stock Options
 
Exercise
Price
 
Remaining
Contractual
Term
(Years)
 
Aggregate
Intrinsic
Value
(in millions)
Outstanding at December 31, 2010
10,064,736

 
$
32.86

 
 

 
 

Granted
1,850,749

 
37.98

 
 

 
 

Expired
(50,811
)
 
48.90

 
 

 
 

Forfeited
(288,776
)
 
33.54

 
 

 
 

Exercised
(677,595
)
 
24.32

 
 

 
 

Affiliate transfers – net
110,287

 
31.98

 
 

 
 

Outstanding at September 30, 2011
11,008,590

 
34.15

 
6.11

 
 

Vested and expected to vest at September 30, 2011
10,752,504

 
34.15

 
6.06

 
$
69

Exercisable at September 30, 2011
6,300,938

 
34.42

 
4.51

 
46

At September 30, 2011, there was $12 million of total unrecognized compensation cost related to stock options, net of expected forfeitures. That cost is expected to be recognized over a weighted-average period of approximately three years.
Performance Shares
The following is a summary of the status of Edison International nonvested performance shares granted to SCE employees:
 
Equity Awards
 
Liability Awards
 
 
 
Weighted-Average
Grant Date
Fair Value
 
 
 
Weighted-Average
Fair Value
 
Shares
 
 
Shares
 
Nonvested at December 31, 2010
219,904

 
$
32.15

 
219,904

 
$
37.68

Granted
83,235

 
29.66

 
83,235

 
 

Forfeited1
(54,654
)
 
49.94

 
(54,654
)
 
 

Affiliate transfers – net
3,496

 
26.90

 
3,496

 
 

Nonvested at September 30, 2011
251,981

 
27.96

 
251,981

 
23.35

1 Includes performance shares that expired with zero value as performance targets were not met.
The current portion of nonvested performance shares classified as liability awards is reflected in "Other current liabilities" and the long-term portion is reflected in "Pensions and benefits" on the consolidated balance sheets.
At September 30, 2011, there was $3 million of total unrecognized compensation cost related to performance shares. That cost is expected to be recognized over a weighted-average period of approximately two years.
Restricted Stock Units
The following is a summary of the status of Edison International nonvested restricted stock units granted to SCE employees:
 
Restricted
Stock Units
 
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 2010
385,877

 
$
32.90

Granted
137,445

 
37.98

Forfeited
(23,243
)
 
31.83

Paid Out
(96,802
)
 
48.20

Affiliate transfers – net
6,747

 
30.56

Nonvested at September 30, 2011
410,024

 
32.06

At September 30, 2011, there was $5 million of total unrecognized compensation cost related to restricted stock units, net of expected forfeitures, which is expected to be recognized as follows: $1 million in 2011, $3 million in 2012 and $1 million in 2013.
Supplemental Data on Stock Based Compensation
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2011
 
2010
 
2011
 
2010
Stock based compensation expense1
$
4

 
$
6

 
$
13

 
$
16

Income tax benefits related to stock compensation expense
1

 
2

 
5

 
6

Excess tax benefits2
2

 
1

 
5

 
3

Stock options
 
 
 
 
 
 
 
Cash used to purchase shares to settle options
4

 
5

 
26

 
12

Cash from participants to exercise stock options
3

 
3

 
17

 
8

Value of options exercised
1

 
2

 
9

 
4

Restricted stock units
 
 
 
 
 
 
 
Value of shares settled
1

 
—

 
5

 
—

Tax benefits realized from settlement of awards
—

 
—

 
2

 
—

1 Reflected in "Operations and maintenance" on the consolidated statements of income.
2 Reflected in "Settlements of stock based compensation—net" in the financing section of the consolidated statements of cash flows.