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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Sources of income (loss) before income taxes | Edison International's sources of income (loss) before income taxes are:
|  | Years ended December 31,
(in millions) |  | 2013 |  | 2012 |  | 2011
Income from continuing operations before income taxes |  | $ | 1,221 |  |  | $ | 1,861 |  |  | $ | 1,668 |
Discontinued operations before income taxes |  | — |  |  | (2,235 | ) |  | (1,931 | )
Income (loss) before income tax |  | $ | 1,221 |  |  | $ | (374 | ) |  | $ | (263 | )
Components of income tax expense (benefit) by location of taxing jurisdiction | The components of income tax expense (benefit) by location of taxing jurisdiction are:
| Edison International |  | SCE
| Years ended December 31,
(in millions) | 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |  |  |  |  |  |  |
Federal | $ | (97 | ) |  | $ | — |  |  | $ | (279 | ) |  | $ | (119 | ) |  | $ | — |  |  | $ | (275 | )
State | (9 | ) |  | — |  |  | 80 |  |  | (19 | ) |  | 50 |  |  | 91 |
| (106 | ) |  | — |  |  | (199 | ) |  | (138 | ) |  | 50 |  |  | (184 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |
Federal | 317 |  |  | 132 |  |  | 727 |  |  | 345 |  |  | 136 |  |  | 757 |
State | 31 |  |  | 135 |  |  | 40 |  |  | 72 |  |  | 28 |  |  | 28 |
| 348 |  |  | 267 |  |  | 767 |  |  | 417 |  |  | 164 |  |  | 785 |
Total continuing operations | 242 |  |  | 267 |  |  | 568 |  |  | 279 |  |  | 214 |  |  | 601 |
Discontinued operations | (36 | ) |  | (549 | ) |  | (853 | ) |  | — |  |  | — |  |  | — |
Total | $ | 206 |  |  | $ | (282 | ) |  | $ | (285 | ) |  | $ | 279 |  |  | $ | 214 |  |  | $ | 601 |
Components of net accumulated deferred income tax liability | The components of net accumulated deferred income tax liability are:
| Edison International |  | SCE
| December 31,
(in millions) | 2013 |  | 2012 |  | 2013 |  | 2012
Deferred tax assets: |  |  |  |  |  |  |
Property and software related | $ | 523 |  |  | $ | 600 |  |  | $ | 523 |  |  | $ | 600 |
Unrealized gains and losses | 579 |  |  | 491 |  |  | 569 |  |  | 477 |
Loss and credit carryforwards | 2,228 |  |  | 1,515 |  |  | 427 |  |  | 125 |
Regulatory balancing accounts | 139 |  |  | 80 |  |  | 139 |  |  | 80 |
Pension and PBOPs | 264 |  |  | 275 |  |  | 86 |  |  | 99 |
Other | 721 |  |  | 723 |  |  | 563 |  |  | 625 |
Sub-total | 4,454 |  |  | 3,684 |  |  | 2,307 |  |  | 2,006 |
Less valuation allowance | 1,380 |  |  | 1,017 |  |  | — |  |  | — |
Total | 3,074 |  |  | 2,667 |  |  | 2,307 |  |  | 2,006 |
Deferred tax liabilities: |  |  |  |  |  |  |
Property-related | 7,879 |  |  | 7,289 |  |  | 7,869 |  |  | 7,279 |
Capitalized software costs | 318 |  |  | 325 |  |  | 318 |  |  | 325 |
Regulatory balancing accounts | 625 |  |  | 296 |  |  | 625 |  |  | 296 |
Unrealized gains and losses | 569 |  |  | 477 |  |  | 569 |  |  | 477 |
Other | 503 |  |  | 471 |  |  | 399 |  |  | 379 |
Total | 9,894 |  |  | 8,858 |  |  | 9,780 |  |  | 8,756 |
Accumulated deferred income tax liability, net | $ | 6,820 |  |  | $ | 6,191 |  |  | $ | 7,473 |  |  | $ | 6,750 |
Classification of accumulated deferred income taxes, net: |  |  |  |  |  |  |
Included in deferred credits and other liabilities | $ | 7,241 |  |  | $ | 6,127 |  |  | $ | 7,737 |  |  | $ | 6,669 |
Included in current liabilities (assets) | (421 | ) |  | 64 |  |  | (264 | ) |  | 81 |
Reconciliation of income tax expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:
| Edison International |  | SCE
| Years ended December 31,
(in millions) | 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011
Income from continuing operations before income taxes | $ | 1,221 |  |  | $ | 1,861 |  |  | $ | 1,668 |  |  | $ | 1,279 |  |  | $ | 1,874 |  |  | $ | 1,745 |
Provision for income tax at federal statutory rate of 35% | 427 |  |  | 652 |  |  | 584 |  |  | 448 |  |  | 656 |  |  | 611 |
Increase (decrease) in income tax from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Items presented with related state income tax, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Repair deductions 1 | — |  |  | (231 | ) |  | — |  |  | — |  |  | (231 | ) |  | — |
State tax, net of federal benefit | 18 |  |  | 108 |  |  | 85 |  |  | 34 |  |  | 54 |  |  | 80 |
Property-related 2 | (192 | ) |  | (223 | ) |  | (46 | ) |  | (192 | ) |  | (223 | ) |  | (46 | )
Accumulated deferred income tax adjustments | — |  |  | (41 | ) |  | (30 | ) |  | — |  |  | (41 | ) |  | (30 | )
Change related to uncertain tax positions | 14 |  |  | 40 |  |  | — |  |  | 14 |  |  | 36 |  |  | (3 | )
Other | (25 | ) |  | (38 | ) |  | (25 | ) |  | (25 | ) |  | (37 | ) |  | (11 | )
Total income tax expense from continuing operations | $ | 242 |  |  | $ | 267 |  |  | $ | 568 |  |  | $ | 279 |  |  | $ | 214 |  |  | $ | 601 |
Effective tax rate | 19.8 | % |  | 14.3 | % |  | 34.1 | % |  | 21.8 | % |  | 11.4 | % |  | 34.4 | %
1 | Edison International made a voluntary election in 2009 to change its tax accounting method for certain repair costs incurred on SCE's transmission, distribution and generation assets. Regulatory treatment for the 2009 – 2011 incremental repairs deductions taken after the 2009 tax accounting method change resulted in SCE recognizing a $231 million earnings benefit in 2012.
2 | Includes incremental repair benefit recorded in 2013 and 2012. See discussion of repair deductions below
Reconciliation of unrecognized tax benefits | The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations:
| Edison International |  | SCE
| December 31,
(in millions) | 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011
Balance at January 1, | $ | 812 |  |  | $ | 631 |  |  | $ | 565 |  |  | $ | 571 |  |  | $ | 373 |  |  | $ | 329 |
Tax positions taken during the current year: |  |  |  |  |  |  |  |  |  |  |
Increases | 19 |  |  | 33 |  |  | 39 |  |  | 22 |  |  | 35 |  |  | 34 |
Tax positions taken during a prior year: |  |  |  |  |  |  |  |  |  |  |
Increases | 43 |  |  | 177 |  |  | 102 |  |  | 45 |  |  | 169 |  |  | 82 |
Decreases | (109 | ) |  | (11 | ) |  | (75 | ) |  | (106 | ) |  | (6 | ) |  | (72 | )
Increases (decreases) – deconsolidation of EME 1 | 50 |  |  | (18 | ) |  | — |  |  | — |  |  | — |  |  | — |
Decreases for settlements during the period | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at December 31, | $ | 815 |  |  | $ | 812 |  |  | $ | 631 |  |  | $ | 532 |  |  | $ | 571 |  |  | $ | 373 |
1 | Unrecognized tax benefits of EME have been deconsolidated as a result of the bankruptcy filing by EME, except for tax liabilities that Edison International is jointly liable with EME under the Internal Revenue Code and applicable state statues. See Note 16 for further information. During 2013, Edison International increased the amount of unrecognized tax benefits related to the taxable gain on sale of EME’s international assets by $50 million as a result of unfavorable developments during the fourth quarter of 2013.
Schedule of interest and penalties related to income tax liabilities | The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are:
| Edison International |  | SCE
| December 31,
(in millions) | 2013 |  | 2012 |  | 2013 |  | 2012
Accrued interest and penalties | $ | 406 |  |  | $ | 278 |  |  | $ | 88 |  |  | $ | 87 |
The net after-tax interest and penalties recognized in income tax expense are:
| Edison International |  | SCE
| December 31,
(in millions) | 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011
Net after-tax interest and penalties tax benefit (expense) | $ | (3 | ) |  | $ | (10 | ) |  | $ | (8 | ) |  | $ | 2 |  |  | $ | (11 | ) |  | $ | (8 | )

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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 + Details
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