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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2012
Fair Value Disclosures [Abstract] |
Fair Value by Level | The following table sets forth assets and liabilities that were accounted for at fair value by level within the fair value hierarchy:
| June 30, 2012
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral 1 |  | Total
Assets at Fair Value |  |  |  |  |  |  |  |  |
Money market funds 2 | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |
Derivative contracts: |  |  |  |  |  |  |  |  |
Electricity | — |  |  | 2 |  |  | 21 |  |  | (11 | ) |  | 12 |
CRRs | — |  |  | — |  |  | 92 |  |  |  |  |  | 92 |
Subtotal of derivative contracts | — |  |  | 2 |  |  | 113 |  |  | (11 | ) |  | 104 |
Long-term disability plan | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Nuclear decommissioning trusts: |  |  |  |  |  |  |  |  |
Stocks 3 | 2,090 |  |  | — |  |  | — |  |  | — |  |  | 2,090 |
Municipal bonds | — |  |  | 714 |  |  | — |  |  | — |  |  | 714 |
U.S. government and agency securities | 389 |  |  | 160 |  |  | — |  |  | — |  |  | 549 |
Corporate bonds 4 | — |  |  | 382 |  |  | — |  |  | — |  |  | 382 |
Short-term investments, primarily cash equivalents 5 | 2 |  |  | 90 |  |  | — |  |  | — |  |  | 92 |
Subtotal of nuclear decommissioning trusts | 2,481 |  |  | 1,346 |  |  | — |  |  | — |  |  | 3,827 |
Total assets 6 | 2,494 |  |  | 1,348 |  |  | 113 |  |  | (11 | ) |  | 3,944 |
Liabilities at Fair Value |  |  |  |  |  |  |  |  |
Derivative contracts: |  |  |  |  |  |  |  |  |
Electricity | — |  |  | — |  |  | 21 |  |  | (11 | ) |  | 10 |
Natural gas | — |  |  | 194 |  |  | 28 |  |  | (66 | ) |  | 156 |
Tolling | — |  |  | — |  |  | 803 |  |  | — |  |  | 803 |
Subtotal of derivative contracts | — |  |  | 194 |  |  | 852 |  |  | (77 | ) |  | 969 |
Total liabilities | — |  |  | 194 |  |  | 852 |  |  | (77 | ) |  | 969 |
Net assets (liabilities) | $ | 2,494 |  |  | $ | 1,154 |  |  | $ | (739 | ) |  | $ | 66 |  |  | $ | 2,975 |
| December 31, 2011
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral 1 |  | Total
Assets at Fair Value |  |  |  |  |  |  |  |  |
Money market funds 2 | $ | 21 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |
Derivative contracts: |  |  |  |  |  |  |  |  |
Electricity | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Natural gas | — |  |  | 5 |  |  | — |  |  | (3 | ) |  | 2 |
CRRs | — |  |  | — |  |  | 122 |  |  | — |  |  | 122 |
Tolling | — |  |  | — |  |  | 10 |  |  | — |  |  | 10 |
Subtotal of derivative contracts | — |  |  | 5 |  |  | 133 |  |  | (3 | ) |  | 135 |
Long-term disability plan | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Nuclear decommissioning trusts: |  |  |  |  |  |  |  |  |
Stocks 3 | 1,899 |  |  | — |  |  | — |  |  | — |  |  | 1,899 |
Municipal bonds | — |  |  | 756 |  |  | — |  |  | — |  |  | 756 |
U.S. government and agency securities | 433 |  |  | 147 |  |  | — |  |  | — |  |  | 580 |
Corporate bonds 4 | — |  |  | 317 |  |  | — |  |  | — |  |  | 317 |
Short-term investments, primarily cash equivalents 5 | — |  |  | 15 |  |  | — |  |  | — |  |  | 15 |
Subtotal of nuclear decommissioning trusts | 2,332 |  |  | 1,235 |  |  | — |  |  | — |  |  | 3,567 |
Total assets 6 | 2,361 |  |  | 1,240 |  |  | 133 |  |  | (3 | ) |  | 3,731 |
Liabilities at Fair Value |  |  |  |  |  |  |  |  |
Derivative contracts: |  |  |  |  |  |  |  |  |
Electricity | — |  |  | 5 |  |  | 65 |  |  | (2 | ) |  | 68 |
Natural gas | — |  |  | 234 |  |  | 23 |  |  | (53 | ) |  | 204 |
Tolling | — |  |  | — |  |  | 799 |  |  | — |  |  | 799 |
Subtotal of derivative contracts | — |  |  | 239 |  |  | 887 |  |  | (55 | ) |  | 1,071 |
Total liabilities | — |  |  | 239 |  |  | 887 |  |  | (55 | ) |  | 1,071 |
Net assets (liabilities) | $ | 2,361 |  |  | $ | 1,001 |  |  | $ | (754 | ) |  | $ | 52 |  |  | $ | 2,660 |
1 | Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level.
2 | Money market funds are included in cash and cash equivalents on SCE's consolidated balance sheets.
3 | Approximately 67% and 70% of the equity investments were located in the United States at June 30, 2012 and December 31, 2011, respectively.
4 | At June 30, 2012 and December 31, 2011, corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $44 million and $22 million, respectively.
5 | Excludes net payables of $17 million and net receivables of $25 million at June 30, 2012 and December 31, 2011, respectively, of interest and dividend receivables as well as receivables and payables related to pending securities sales and purchases.
6 | Excludes other investments of $98 million and $81 million at June 30, 2012 and December 31, 2011, respectively, primarily related to the cash surrender value of company owned life insurance investments which are used to fund certain executive benefits including deferred compensation.
Summary of Changes in Fair Value of Level 3 Assets and Liabilities | The following table sets forth a summary of changes in the fair value of Level 3 net derivative assets and liabilities:
| Three months ended June 30, |  | Six months ended June 30,
(in millions) | 2012 |  | 2011 |  | 2012 |  | 2011
Fair value of net assets (liabilities) at beginning of period | $ | (1,097 | ) |  | $ | (127 | ) |  | $ | (754 | ) |  | $ | 6 |
Total realized/unrealized gains (losses), net: |  |  |  |  |  |  |
Included in regulatory assets 1 | 341 |  |  | (247 | ) |  | (23 | ) |  | (382 | )
Purchases | 29 |  |  | 16 |  |  | 50 |  |  | 17 |
Settlements | (12 | ) |  | (1 | ) |  | (12 | ) |  | — |
Transfers into Level 3 | — |  |  | — |  |  | — |  |  | — |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |
Fair value of net liabilities at end of period | $ | (739 | ) |  | $ | (359 | ) |  | $ | (739 | ) |  | $ | (359 | )
Change during the period in unrealized gains (losses) related to assets and liabilities held at the end of the period | $ | 335 |  |  | $ | (240 | ) |  | $ | (8 | ) |  | $ | (376 | )
1 | Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth the valuation techniques and significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:
June 30, 2012 |  |  | Quantitative Information About Level 3 Fair Value Measurements
| Fair Value (in millions) |  | Significant | Range
| Assets |  | Liabilities | Valuation Technique(s) | Unobservable Input | (Weighted Average)
Electricity: |  |  |  |  |  |
Options | $ | 42 |  |  | $ | 40 |  | Option model | Volatility of gas prices | 24% – 57% (41%)
|  |  |  |  | Volatility of power prices | 30% – 97% (54%)
|  |  |  |  | Power prices | $34.17 – $56.92 ($42.70)
Forwards | 2 |  |  | 4 |  | Discounted cash flow | Power prices | $13.00 – $47.10 ($28.70)
Gas Options | — |  |  | 28 |  | Option model | Volatility of gas prices | 27% – 57% (47%)
CRRs | 92 |  |  | — |  | Market simulation model | Load forecast | 7,645 MW – 26,334 MW
|  |  |  |  | Power prices | $(46.19) – $240.30
|  |  |  |  | Gas prices | $3.79 – $9.32
Tolling | — |  |  | 803 |  | Option model | Volatility of gas prices | 18% – 57% (23%)
|  |  |  |  | Volatility of power prices | 26% – 97% (31%)
|  |  |  |  | Power prices | $29.89 – $88.04 ($57.30)
Netting | (23 | ) |  | (23 | ) |  |  |
Total derivative contracts | $ | 113 |  |  | $ | 852 |  |  |  |
Carrying Amounts and Fair Values of Long-Term Debt, Including Current Portion | The carrying value and fair value of long-term debt are:
| June 30, 2012 |  | December 31, 2011
(in millions) | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Long-term debt, including current portion | $ | 8,827 |  |  | $ | 10,368 |  |  | $ | 8,431 |  |  | $ | 10,129 |

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- Definition Tabular disclosure of the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets and liabilities) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets and liabilities) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset and liabilities. + References No definition available. + Details
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- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258 + Details
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