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Income Taxes | 6 Months Ended
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Jun. 30, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:
| Three months ended June 30, |  | Six months ended June 30,
(in millions) | 2013 |  | 2012 |  | 2013 |  | 2012
Edison International: |  |  |  |  |  |  |
Income (loss) from continuing operations before income taxes | $ | (184 | ) |  | $ | 307 |  |  | $ | 199 |  |  | $ | 593 |
Provision for income tax at federal statutory rate of 35% | (64 | ) |  | 107 |  |  | 70 |  |  | 207 |
Increase (decrease) in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | (20 | ) |  | 8 |  |  | (17 | ) |  | 14 |
Property-related | (22 | ) |  | (10 | ) |  | (64 | ) |  | (19 | )
Uncertain tax positions | 11 |  |  | — |  |  | 18 |  |  | 1 |
Other | (7 | ) |  | (5 | ) |  | (11 | ) |  | (11 | )
Total income tax expense (benefit) from continuing operations | $ | (102 | ) |  | $ | 100 |  |  | $ | (4 | ) |  | $ | 192 |
Effective tax rate | * |  |  | 32.6 | % |  | * |  |  | 32.4 | %
SCE: |  |  |  |  |  |  |
Income (loss) from continuing operations before income taxes | $ | (166 | ) |  | $ | 322 |  |  | $ | 229 |  |  | $ | 622 |
Provision for income tax at federal statutory rate of 35% | (58 | ) |  | 113 |  |  | 80 |  |  | 218 |
Increase (decrease) in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | (23 | ) |  | 10 |  |  | (9 | ) |  | 20 |
Property-related | (22 | ) |  | (10 | ) |  | (64 | ) |  | (20 | )
Uncertain tax positions | 11 |  |  | (1 | ) |  | 17 |  |  | — |
Other | (7 | ) |  | (4 | ) |  | (11 | ) |  | (10 | )
Total income tax expense (benefit) from continuing operations | $ | (99 | ) |  | $ | 108 |  |  | $ | 13 |  |  | $ | 208 |
Effective tax rate | * |  |  | 33.5 | % |  | 5.7 | % |  | 33.4 | %
* | Not meaningful
The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. The accounting treatment for these temporary differences results in recording regulatory assets and liabilities for amounts that would otherwise be recorded to deferred income tax expense. Property-related items include recognition of income tax benefits from repair deductions for income tax purposes. Tax Disputes Edison International's federal income tax returns and its California combined franchise tax returns are currently open for years subsequent to 2002. In addition, specific California refund claims made by Edison International for years 1991 through 2002 are currently under review by the Franchise Tax Board. Tax Years 2003 – 2006 The IRS examination phase of tax years 2003 through 2006 was completed in the fourth quarter of 2010, which included proposed adjustments for the following two items:
• | A proposed adjustment increasing the taxable gain on the 2004 sale of EME's international assets, which if sustained, would result in a federal tax payment of approximately $203 million, including interest and penalties through June 30, 2013 (the IRS has asserted a 40% penalty for understatement of tax liability related to this matter).
• | A proposed adjustment to disallow a component of SCE's repair allowance deduction, which if sustained, would result in a federal tax payment of approximately $98 million, including interest through June 30, 2013.
Edison International disagrees with the proposed adjustments and filed a protest with the IRS in the first quarter of 2011. The appeals process to date has not resulted in a change in the proposed adjustment by the IRS on the taxable gain on the 2004 sale of EME's international assets. If a deficiency notice is issued on this item, it would require payment of the tax, interest and any penalties within 90 days of its issuance or a filing of a petition in United States Tax Court. Tax Years 2007 – 2009 The IRS examination phase of tax years 2007 through 2009 was completed during the first quarter of 2013. Edison International received a Revenue Agent Report from the IRS on February 28, 2013 which included a proposed adjustment to disallow a component of SCE's repair allowance deduction (similar to the 2003 – 2006 tax years). The proposed adjustment to disallow a component of SCE's repair allowance deduction, which if sustained, would result in a federal tax payment of approximately $74 million, including interest through June 30, 2013. Edison International disagrees with the proposed adjustments and filed a protest with the IRS in April 2013.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -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 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -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. + Details
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