EX-99.1 2 exh99-1pressrelease4qx2014.htm EXHIBIT 99.1

|  | NEWS

FOR IMMEDIATE RELEASE
Media relations contact:
Charles Coleman, (626) 302-7982
Investor relations contact:
Scott Cunningham, (626) 302-2540
Edison International Reports Fourth Quarter and Full-Year 2014 Results
ROSEMEAD, Calif., February 24, 2015 - Edison International (NYSE: EIX) today reported fourth quarter 2014 net income on a GAAP basis of $420 million, or $1.29 per share, compared to $301 million, or $0.92 per share, in the fourth quarter of 2013. On an adjusted basis, Edison International’s fourth quarter 2014 core earnings were $355 million, or $1.08 per share, compared to $264 million, or $0.81 per share, in the fourth quarter of 2013.
Southern California Edison’s (SCE) fourth quarter 2014 core earnings increased $98 million, or $0.30 per share, primarily due to higher authorized revenue from rate base growth, higher income tax benefits, and lower severance costs. In the fourth quarter of 2014, the California Public Utilities Commission (CPUC) authorized an increase in SCE's revenue due to a revised determination of rate base for deferred income taxes that increased earnings by $18 million, or $0.05 per share. Edison International Parent and Other’s fourth quarter 2014 core earnings decreased $7 million, or $0.03 per share, primarily due to lower income tax benefits and higher corporate expenses, partially offset by higher income from Edison Capital’s investments in affordable housing projects.
Edison International's fourth quarter 2014 core earnings exclude income of $24 million, or $0.08 per share, related to a revised estimated impact of the San Onofre Nuclear Generating Station (SONGS) Settlement, and income of $41 million, or $0.13 per share, primarily due to discontinued operations. Edison International's fourth quarter 2013 core earnings exclude income of $37 million, or $0.11 per share, from discontinued operations.
"Edison International delivered strong financial results in 2014," said Ted Craver, chairman and chief executive officer of Edison International. "Southern California Edison’s continued electric grid investments and good cost management are key factors in this performance. Our stock performed well as we resolved key uncertainties and took an important first step to return the dividend to our target payout ratio of 45-55% of SCE’s earnings. Looking ahead, we see sustained high levels of SCE investment to help meet California’s public policy objectives and assure grid reliability for our customers."
Full-Year Earnings
For the year ended December 31, 2014, Edison International reported net income on a GAAP basis of $1,612 million, or $4.95 per share, compared to $915 million, or $2.81 per share, during the same period in 2013. On an adjusted basis, Edison International’s core earnings were $1,497 million, or $4.59 per share, compared to $1,237 million, or $3.80 per share, in 2013.
SCE’s core earnings for 2014 increased $260 million, or $0.80 per share, from 2013 primarily due to higher authorized revenue from rate base growth, higher income tax benefits and lower severance costs. In the fourth quarter of 2014, the CPUC authorized an increase in SCE's revenue due to a revised determination of rate base for deferred income taxes that increased earnings by $18 million, or $0.05 per share. In addition, during 2014, SCE recorded earnings of $11 million, or $0.03 per share, from a change in estimate of revenues under its Federal Energy Regulatory Commission formula rate, and $9 million, or $0.03 per share, of benefits related to generator settlements. Edison International Parent and Other's core losses for 2014 included higher corporate and new business expenses, offset by higher income from Edison Capital's investments in affordable housing projects.
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Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Edison International's full-year 2014 core earnings exclude charges of $72 million, or $0.22 per share, related to the SONGS Settlement Agreement, and income of $187 million, or $0.58 per share, primarily due to discontinued operations. Edison International' s 2013 core earnings excludes a $365 million charge, or $1.12 per share, related to the permanent retirement of SONGS Units 2 and 3, and income of $43 million, or $0.13 per share, primarily due to discontinued operations.
Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for significant discrete items that management does not consider representative of ongoing earnings. Edison International management believes that core earnings provide more meaningful comparisons of performance from period to period. Please see the attached tables for a reconciliation of core earnings to basic earnings.
2015 Earnings Guidance
Edison International will provide 2015 earnings guidance after a final decision has been issued by the California Public Utilities Commission on the Southern California Edison 2015 General Rate Case. See the presentation accompanying the company’s conference call for further information.
About Edison International
Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in energy services and technologies, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities.
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Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Appendix
Use of Non-GAAP Financial Measures
Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of earnings or earnings per share.
Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.
Risk Disclosure Statement
Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s Form 10-K, most recent Form 10-Q, and other reports and presentations filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.
Reminder: Edison International Will Hold a Conference Call Today
When: Tuesday, February 24, 2015, 2:00 p.m. (Pacific Time)
Telephone Numbers: 1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay: 1-866-443-2924 (US) and 1-203-369-1100 (Int’l) - Passcode: 254516
Telephone replay available through March 5, 2015
Webcast: www.edisoninvestor.com

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Fourth Quarter and Full-Year Reconciliation of
Core Earnings Per Share to Basic Earnings Per Share

| Three months ended December 31, |  |  |  | Years ended December 31, |  |
| 2014 |  | 2013 |  | Change |  | 2014 |  | 2013 |  | Change
Earnings (loss) per share attributable to Edison International |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  |  |  |  |  |  |  |  |  |  |
SCE | $ | 1.17 |  |  | $ | 0.79 |  |  | $ | 0.38 |  |  | $ | 4.46 |  |  | $ | 2.76 |  |  | $ | 1.70 |
Edison International Parent and Other | — |  |  | 0.02 |  |  | (0.02 | ) |  | (0.08 | ) |  | (0.06 | ) |  | (0.02 | )
Discontinued operations | 0.12 |  |  | 0.11 |  |  | 0.01 |  |  | 0.57 |  |  | 0.11 |  |  | 0.46 |
Edison International | 1.29 |  |  | 0.92 |  |  | 0.37 |  |  | 4.95 |  |  | 2.81 |  |  | 2.14 |
Less: Non-core items |  |  |  |  |  |  |  |  |  |  |
SCE | 0.08 |  |  | — |  |  | 0.08 |  |  | (0.22 | ) |  | (1.12 | ) |  | 0.90 |
Edison International Parent and Other | 0.01 |  |  | — |  |  | 0.01 |  |  | 0.01 |  |  | 0.02 |  |  | (0.01 | )
Discontinued operations | 0.12 |  |  | 0.11 |  |  | 0.01 |  |  | 0.57 |  |  | 0.11 |  |  | 0.46 |
Total non-core items | 0.21 |  |  | 0.11 |  |  | 0.10 |  |  | 0.36 |  |  | (0.99 | ) |  | 1.35 |
Core earnings (losses) |  |  |  |  |  |  |  |  |  |  |
SCE | 1.09 |  |  | 0.79 |  |  | 0.30 |  |  | 4.68 |  |  | 3.88 |  |  | 0.80 |
Edison International Parent and Other | (0.01 | ) |  | 0.02 |  |  | (0.03 | ) |  | (0.09 | ) |  | (0.08 | ) |  | (0.01 | )
Edison International | $ | 1.08 |  |  | $ | 0.81 |  |  | $ | 0.27 |  |  | $ | 4.59 |  |  | $ | 3.80 |  |  | $ | 0.79 |

Note: Diluted earnings were $1.27 and $0.92 per share for the three months ended December 31, 2014 and 2013, respectively, and $4.89 and $2.78 per share for the years ended December 31, 2014 and 2013, respectively.
Fourth Quarter and Full-Year Reconciliation of
Core Earnings to Basic Earnings (in millions)

| Three months ended December 31, |  |  |  | Years ended December 31, |  |
(in millions) | 2014 |  | 2013 |  | Change |  | 2014 |  | 2013 |  | Change
Net income (loss) attributable to Edison International |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  |  |  |  |  |  |  |  |  |  |
SCE | $ | 380 |  |  | $ | 258 |  |  | $ | 122 |  |  | $ | 1,453 |  |  | $ | 900 |  |  | $ | 553 |
Edison International Parent and Other | 1 |  |  | 6 |  |  | (5 | ) |  | (26 | ) |  | (21 | ) |  | (5 | )
Discontinued operations | 39 |  |  | 37 |  |  | 2 |  |  | 185 |  |  | 36 |  |  | 149 |
Edison International | 420 |  |  | 301 |  |  | 119 |  |  | 1,612 |  |  | 915 |  |  | 697 |
Less: Non-core items |  |  |  |  |  |  |  |  |  |  |
SCE | 24 |  |  | — |  |  | 24 |  |  | (72 | ) |  | (365 | ) |  | 293 |
Edison International Parent and Other | 2 |  |  | — |  |  | 2 |  |  | 2 |  |  | 7 |  |  | (5 | )
Discontinued operations | 39 |  |  | 37 |  |  | 2 |  |  | 185 |  |  | 36 |  |  | 149 |
Total non-core items | 65 |  |  | 37 |  |  | 28 |  |  | 115 |  |  | (322 | ) |  | 437 |
Core earnings (losses) |  |  |  |  |  |  |  |  |  |  |
SCE | 356 |  |  | 258 |  |  | 98 |  |  | 1,525 |  |  | 1,265 |  |  | 260 |
Edison International Parent and Other | (1 | ) |  | 6 |  |  | (7 | ) |  | (28 | ) |  | (28 | ) |  | — |
Edison International | $ | 355 |  |  | $ | 264 |  |  | $ | 91 |  |  | $ | 1,497 |  |  | $ | 1,237 |  |  | $ | 260 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Consolidated Statements of Income |  | Edison International |
|  | Quarters ended December 31, |  | Years ended December 31,
(in millions, except per-share amounts) |  | 2014 |  | 2013 |  | 2014 |  | 2013
Total operating revenue |  | $ | 3,114 |  |  | $ | 2,943 |  |  | $ | 13,413 |  |  | $ | 12,581 |
Purchased power and fuel |  | 1,029 |  |  | 1,073 |  |  | 5,593 |  |  | 4,891 |
Operation and maintenance |  | 901 |  |  | 892 |  |  | 3,149 |  |  | 3,473 |
Depreciation, decommissioning and amortization |  | 472 |  |  | 398 |  |  | 1,720 |  |  | 1,622 |
Property and other taxes |  | 87 |  |  | 79 |  |  | 322 |  |  | 309 |
Impairment and other charges |  | (68 | ) |  | (4 | ) |  | 157 |  |  | 571 |
Total operating expenses |  | 2,421 |  |  | 2,438 |  |  | 10,941 |  |  | 10,866 |
Operating income |  | 693 |  |  | 505 |  |  | 2,472 |  |  | 1,715 |
Interest and other income |  | 39 |  |  | 33 |  |  | 147 |  |  | 124 |
Interest expense |  | (138 | ) |  | (143 | ) |  | (560 | ) |  | (544 | )
Other expenses |  | (29 | ) |  | (36 | ) |  | (80 | ) |  | (74 | )
Income from continuing operations before income taxes |  | 565 |  |  | 359 |  |  | 1,979 |  |  | 1,221 |
Income tax expense |  | 159 |  |  | 70 |  |  | 443 |  |  | 242 |
Income from continuing operations |  | 406 |  |  | 289 |  |  | 1,536 |  |  | 979 |
Income (loss) from discontinued operations, net of tax |  | 39 |  |  | 37 |  |  | 185 |  |  | 36 |
Net income (loss) |  | 445 |  |  | 326 |  |  | 1,721 |  |  | 1,015 |
Preferred and preference stock dividend requirements of utility |  | 28 |  |  | 25 |  |  | 112 |  |  | 100 |
Other noncontrolling interests |  | (3 | ) |  | — |  |  | (3 | ) |  | — |
Net income (loss) attributable to Edison International common shareholders |  | $ | 420 |  |  | $ | 301 |  |  | $ | 1,612 |  |  | $ | 915 |
Amounts attributable to Edison International common shareholders: |  |  |  |  |  |  |  |
Income from continuing operations, net of tax |  | $ | 381 |  |  | $ | 264 |  |  | $ | 1,427 |  |  | $ | 879 |
Income (loss) from discontinued operations, net of tax |  | 39 |  |  | 37 |  |  | 185 |  |  | 36 |
Net income (loss) attributable to Edison International common shareholders |  | $ | 420 |  |  | $ | 301 |  |  | $ | 1,612 |  |  | $ | 915 |
Basic earnings (loss) per common share attributable to Edison International common shareholders: |  |  |  |  |  |  |  |
Weighted-average shares of common stock outstanding |  | 326 |  |  | 326 |  |  | 326 |  |  | 326 |
Continuing operations |  | $ | 1.17 |  |  | $ | 0.81 |  |  | $ | 4.38 |  |  | $ | 2.70 |
Discontinued operations |  | 0.12 |  |  | 0.11 |  |  | 0.57 |  |  | 0.11 |
Total |  | $ | 1.29 |  |  | $ | 0.92 |  |  | $ | 4.95 |  |  | $ | 2.81 |
Diluted earnings (loss) per common share attributable to Edison International common shareholders: |  |  |  |  |  |  |  |
Weighted-average shares of common stock outstanding, including effect of dilutive securities |  | 329 |  |  | 328 |  |  | 329 |  |  | 329 |
Continuing operations |  | $ | 1.15 |  |  | $ | 0.81 |  |  | $ | 4.33 |  |  | $ | 2.67 |
Discontinued operations |  | 0.12 |  |  | 0.11 |  |  | 0.56 |  |  | 0.11 |
Total |  | $ | 1.27 |  |  | $ | 0.92 |  |  | $ | 4.89 |  |  | $ | 2.78 |
Dividends declared per common share |  | $ | 0.4175 |  |  | $ | 0.3550 |  |  | $ | 1.4825 |  |  | $ | 1.3675 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Consolidated Balance Sheets | Edison International |
| December 31,
(in millions) | 2014 |  | 2013
ASSETS |  |  |
Cash and cash equivalents | $ | 132 |  |  | $ | 146 |
Receivables, less allowances of $68 and $66 for uncollectible accounts at respective dates | 790 |  |  | 838 |
Accrued unbilled revenue | 632 |  |  | 596 |
Inventory | 281 |  |  | 256 |
Derivative assets | 102 |  |  | 122 |
Regulatory assets | 1,254 |  |  | 538 |
Deferred income taxes | 452 |  |  | 421 |
Other current assets | 376 |  |  | 395 |
Total current assets | 4,019 |  |  | 3,312 |
Nuclear decommissioning trusts | 4,799 |  |  | 4,494 |
Other investments | 207 |  |  | 207 |
Total investments | 5,006 |  |  | 4,701 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,132 and $7,493 at respective dates | 32,859 |  |  | 30,379 |
Nonutility property, plant and equipment, less accumulated depreciation of $76 and $74 at respective dates | 122 |  |  | 76 |
Total property, plant and equipment | 32,981 |  |  | 30,455 |
Derivative assets | 219 |  |  | 251 |
Regulatory assets | 7,612 |  |  | 7,241 |
Other long-term assets | 349 |  |  | 686 |
Total long-term assets | 8,180 |  |  | 8,178 |
Total assets | $ | 50,186 |  |  | $ | 46,646 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Consolidated Balance Sheets |  | Edison International |
|  | December 31,
(in millions, except share amounts) |  | 2014 |  | 2013
LIABILITIES AND EQUITY |  |  |  |
Short-term debt |  | $ | 1,291 |  |  | $ | 209 |
Current portion of long-term debt |  | 504 |  |  | 601 |
Accounts payable |  | 1,580 |  |  | 1,407 |
Accrued taxes |  | 81 |  |  | 358 |
Customer deposits |  | 221 |  |  | 201 |
Derivative liabilities |  | 196 |  |  | 152 |
Regulatory liabilities |  | 401 |  |  | 767 |
Other current liabilities |  | 1,205 |  |  | 1,186 |
Total current liabilities |  | 5,479 |  |  | 4,881 |
Long-term debt |  | 10,234 |  |  | 9,825 |
Deferred income taxes and credits |  | 7,313 |  |  | 7,346 |
Derivative liabilities |  | 1,052 |  |  | 1,042 |
Pensions and benefits |  | 2,155 |  |  | 1,378 |
Asset retirement obligations |  | 2,821 |  |  | 3,418 |
Regulatory liabilities |  | 5,889 |  |  | 4,995 |
Other deferred credits and other long-term liabilities |  | 2,255 |  |  | 2,070 |
Total deferred credits and other liabilities |  | 21,485 |  |  | 20,249 |
Total liabilities |  | 37,198 |  |  | 34,955 |
Commitments and contingencies |  |  |  |
Redeemable noncontrolling interest |  | 6 |  |  | — |
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates) |  | 2,445 |  |  | 2,403 |
Accumulated other comprehensive loss |  | (58 | ) |  | (13 | )
Retained earnings |  | 8,573 |  |  | 7,548 |
Total Edison International's common shareholders' equity |  | 10,960 |  |  | 9,938 |
Noncontrolling interests - preferred and preference stock of utility |  | 2,022 |  |  | 1,753 |
Total equity |  | 12,982 |  |  | 11,691 |
Total liabilities and equity |  | $ | 50,186 |  |  | $ | 46,646 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Consolidated Statements of Cash Flows |  | Edison International |
|  | Years ended December 31,
(in millions) |  | 2014 |  | 2013 |  | 2012
Cash flows from operating activities: |  |  |  |  |  |
Net income (loss) |  | $ | 1,721 |  |  | $ | 1,015 |  |  | $ | (92 | )
Less: Income (loss) from discontinued operations |  | 185 |  |  | 36 |  |  | (1,686 | )
Income from continuing operations |  | 1,536 |  |  | 979 |  |  | 1,594 |
Adjustments to reconcile to net cash provided by operating activities: |  |  |  |  |  |
Depreciation, decommissioning and amortization |  | 1,815 |  |  | 1,696 |  |  | 1,634 |
Allowance for equity during construction |  | (65 | ) |  | (72 | ) |  | (96 | )
Impairment and other charges |  | 157 |  |  | 571 |  |  | (28 | )
Deferred income taxes and investment tax credits |  | 522 |  |  | 345 |  |  | 141 |
Other |  | 20 |  |  | 18 |  |  | 94 |
EME settlement payments |  | (225 | ) |  | — |  |  | — |
Changes in operating assets and liabilities: |  |  |  |  |  |  |
Receivables |  | 64 |  |  | (56 | ) |  | (13 | )
Inventory |  | (25 | ) |  | 80 |  |  | 10 |
Accounts payable |  | 14 |  |  | 45 |  |  | 14 |
Prepaid and accrued taxes |  | (100 | ) |  | (92 | ) |  | 189 |
Other current assets and liabilities |  | (103 | ) |  | (155 | ) |  | 114 |
Derivative assets and liabilities, net |  | (40 | ) |  | (30 | ) |  | 262 |
Regulatory assets and liabilities, net |  | (358 | ) |  | (322 | ) |  | (314 | )
Nuclear decommissioning trusts |  | 39 |  |  | 76 |  |  | 192 |
Other noncurrent assets and liabilities |  | (3 | ) |  | (116 | ) |  | 178 |
Operating cash flows from continuing operations |  | 3,248 |  |  | 2,967 |  |  | 3,971 |
Operating cash flows from discontinued operations, net |  | — |  |  | — |  |  | (637 | )
Net cash provided by operating activities |  | 3,248 |  |  | 2,967 |  |  | 3,334 |
Cash flows from financing activities: |  |  |  |  |  |
Long-term debt issued, net of discount and issuance costs of $6, $18 and $4 at respective periods |  | 494 |  |  | 1,973 |  |  | 391 |
Long-term debt matured or repurchased |  | (607 | ) |  | (1,017 | ) |  | (6 | )
Bonds remarketed, net |  | — |  |  | 195 |  |  | — |
Preference stock issued, net |  | 269 |  |  | 387 |  |  | 804 |
Preference stock redeemed |  | — |  |  | (400 | ) |  | (75 | )
Short-term debt financing, net |  | 1,079 |  |  | 32 |  |  | (264 | )
Cash contribution from redeemable noncontrolling interest |  | 9 |  |  | — |  |  | — |
Dividends to noncontrolling interests |  | (111 | ) |  | (101 | ) |  | (82 | )
Dividends paid |  | (463 | ) |  | (440 | ) |  | (424 | )
Other |  | (25 | ) |  | (48 | ) |  | (68 | )
Financing cash flows from continuing operations |  | 645 |  |  | 581 |  |  | 276 |
Financing cash flows from discontinued operations, net |  | — |  |  | — |  |  | 374 |
Net cash provided by financing activities |  | 645 |  |  | 581 |  |  | 650 |
Cash flows from investing activities: |  |  |  |  |  |
Capital expenditures |  | (3,906 | ) |  | (3,599 | ) |  | (4,149 | )
Proceeds from sale of nuclear decommissioning trust investments |  | 10,079 |  |  | 5,617 |  |  | 2,122 |
Purchases of nuclear decommissioning trust investments |  | (10,123 | ) |  | (5,715 | ) |  | (2,337 | )
Proceeds from sale of assets |  | 6 |  |  | 181 |  |  | 114 |
Other |  | 37 |  |  | (56 | ) |  | 4 |
Investing cash flows from continuing operations |  | (3,907 | ) |  | (3,572 | ) |  | (4,246 | )
Investing cash flows from discontinued operations, net |  | — |  |  | — |  |  | (1,037 | )
Net cash used by investing activities |  | (3,907 | ) |  | (3,572 | ) |  | (5,283 | )
Net decrease in cash and cash equivalents |  | (14 | ) |  | (24 | ) |  | (1,299 | )
Cash and cash equivalents at beginning of year |  | 146 |  |  | 170 |  |  | 1,469 |
Cash and cash equivalents at end of year |  | $ | 132 |  |  | $ | 146 |  |  | $ | 170 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Consolidated Statements of Income |  |  |  | Southern California Edison Company |
|  | Quarters ended December 31, |  | Years ended December 31,
(in millions) |  | 2014 |  | 2013 |  | 2014 |  | 2013
Operating revenue |  | $ | 3,104 |  |  | $ | 2,931 |  |  | $ | 13,380 |  |  | $ | 12,562 |
Purchased power and fuel |  | 1,029 |  |  | 1,073 |  |  | 5,593 |  |  | 4,891 |
Operation and maintenance |  | 870 |  |  | 876 |  |  | 3,057 |  |  | 3,416 |
Depreciation, decommissioning and amortization |  | 472 |  |  | 398 |  |  | 1,720 |  |  | 1,622 |
Property and other taxes |  | 86 |  |  | 79 |  |  | 318 |  |  | 307 |
Impairment and other charges |  | (68 | ) |  | — |  |  | 163 |  |  | 575 |
Total operating expenses |  | 2,389 |  |  | 2,426 |  |  | 10,851 |  |  | 10,811 |
Operating income |  | 715 |  |  | 505 |  |  | 2,529 |  |  | 1,751 |
Interest and other income |  | 17 |  |  | 33 |  |  | 122 |  |  | 122 |
Interest expense |  | (131 | ) |  | (136 | ) |  | (533 | ) |  | (520 | )
Other expenses |  | (29 | ) |  | (36 | ) |  | (79 | ) |  | (74 | )
Income before income taxes |  | 572 |  |  | 366 |  |  | 2,039 |  |  | 1,279 |
Income tax expense |  | 164 |  |  | 83 |  |  | 474 |  |  | 279 |
Net income |  | 408 |  |  | 283 |  |  | 1,565 |  |  | 1,000 |
Less: Preferred and preference stock dividend requirements |  | 28 |  |  | 25 |  |  | 112 |  |  | 100 |
Net income available for common stock |  | $ | 380 |  |  | $ | 258 |  |  | $ | 1,453 |  |  | $ | 900 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
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Consolidated Balance Sheets | Southern California Edison Company |
|  |  | December 31,
(in millions) |  |  | 2014 |  | 2013
ASSETS |  |  |  |  |
Cash and cash equivalents |  |  | $ | 38 |  |  | $ | 54 |
Receivables, less allowances of $68 and $66 for uncollectible accounts at respective dates |  |  | 749 |  |  | 813 |
Accrued unbilled revenue |  |  | 632 |  |  | 596 |
Inventory |  |  | 275 |  |  | 256 |
Derivative assets |  |  | 102 |  |  | 122 |
Regulatory assets |  |  | 1,254 |  |  | 538 |
Deferred income taxes |  |  | — |  |  | 303 |
Other current assets |  |  | 390 |  |  | 393 |
Total current assets |  |  | 3,440 |  |  | 3,075 |
Nuclear decommissioning trusts |  |  | 4,799 |  |  | 4,494 |
Other investments |  |  | 158 |  |  | 140 |
Total investments |  |  | 4,957 |  |  | 4,634 |
Utility property, plant and equipment, less accumulated depreciation of $8,132 and $7,493 at respective dates |  |  | 32,859 |  |  | 30,379 |
Nonutility property, plant and equipment, less accumulated depreciation of $75 and $70 at respective dates |  |  | 69 |  |  | 72 |
Total property, plant and equipment |  |  | 32,928 |  |  | 30,451 |
Derivative assets |  |  | 219 |  |  | 251 |
Regulatory assets |  |  | 7,612 |  |  | 7,241 |
Other long-term assets |  |  | 300 |  |  | 398 |
Total long-term assets |  |  | 8,131 |  |  | 7,890 |
Total assets |  |  | $ | 49,456 |  |  | $ | 46,050 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
Page 11 of 12

Consolidated Balance Sheets | Southern California Edison Company |
|  |  | December 31,
(in millions, except share amounts) |  |  | 2014 |  | 2013
LIABILITIES AND EQUITY |  |  |  |  |
Short-term debt |  |  | $ | 667 |  |  | $ | 175 |
Current portion of long-term debt |  |  | 300 |  |  | 600 |
Accounts payable |  |  | 1,556 |  |  | 1,373 |
Accrued taxes |  |  | 87 |  |  | 57 |
Customer deposits |  |  | 221 |  |  | 201 |
Derivative liabilities |  |  | 196 |  |  | 152 |
Regulatory liabilities |  |  | 401 |  |  | 767 |
Deferred income taxes |  |  | 209 |  |  | 39 |
Other current liabilities |  |  | 1,183 |  |  | 1,034 |
Total current liabilities |  |  | 4,820 |  |  | 4,398 |
Long-term debt |  |  | 9,624 |  |  | 9,422 |
Deferred income taxes and credits |  |  | 8,288 |  |  | 7,841 |
Derivative liabilities |  |  | 1,052 |  |  | 1,042 |
Pensions and benefits |  |  | 1,672 |  |  | 951 |
Asset retirement obligations |  |  | 2,819 |  |  | 3,418 |
Regulatory liabilities |  |  | 5,889 |  |  | 4,995 |
Other deferred credits and other long-term liabilities |  |  | 2,010 |  |  | 1,845 |
Total deferred credits and other liabilities |  |  | 21,730 |  |  | 20,092 |
Total liabilities |  |  | 36,174 |  |  | 33,912 |
Commitments and contingencies |  |  |  |  |
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at each date) |  |  | 2,168 |  |  | 2,168 |
Additional paid-in capital |  |  | 618 |  |  | 592 |
Accumulated other comprehensive loss |  |  | (28 | ) |  | (11 | )
Retained earnings |  |  | 8,454 |  |  | 7,594 |
Total common shareholder's equity |  |  | 11,212 |  |  | 10,343 |
Preferred and preference stock |  |  | 2,070 |  |  | 1,795 |
Total equity |  |  | 13,282 |  |  | 12,138 |
Total liabilities and equity |  |  | $ | 49,456 |  |  | $ | 46,050 |

Edison International Reports Fourth Quarter and Full-Year 2014 Financial Results
Page 12 of 12

Consolidated Statements of Cash Flows | Southern California Edison Company |
|  | Years ended December 31,
(in millions) |  | 2014 |  | 2013 |  | 2012
Cash flows from operating activities: |  |  |  |  |  |
Net income |  | $ | 1,565 |  |  | $ | 1,000 |  |  | $ | 1,660 |
Adjustments to reconcile to net cash provided by operating activities: |  |  |  |  |  |
Depreciation, decommissioning and amortization |  | 1,810 |  |  | 1,694 |  |  | 1,633 |
Allowance for equity during construction |  | (65 | ) |  | (72 | ) |  | (96 | )
Impairment and other charges |  | 163 |  |  | 575 |  |  | 32 |
Deferred income taxes and investment tax credits |  | 462 |  |  | 420 |  |  | 256 |
Other |  | 11 |  |  | 14 |  |  | 86 |
Changes in operating assets and liabilities: |  |  |  |  |  |
Receivables |  | 64 |  |  | (57 | ) |  | (23 | )
Inventory |  | (19 | ) |  | 80 |  |  | 10 |
Accounts payable |  | 12 |  |  | 59 |  |  | (9 | )
Prepaid and accrued taxes |  | 129 |  |  | (93 | ) |  | 254 |
Other current assets and liabilities |  | (107 | ) |  | (171 | ) |  | 114 |
Derivative assets and liabilities, net |  | (40 | ) |  | (30 | ) |  | (86 | )
Regulatory assets and liabilities, net |  | (358 | ) |  | (322 | ) |  | 34 |
Nuclear decommissioning trusts |  | 39 |  |  | 76 |  |  | 192 |
Other noncurrent assets and liabilities |  | (6 | ) |  | (125 | ) |  | 29 |
Net cash provided by operating activities |  | 3,660 |  |  | 3,048 |  |  | 4,086 |
Cash flows from financing activities: |  |  |  |  |  |
Long-term debt issued, net of discount and issuance costs of $2, $18 and $4, at respective dates |  | 498 |  |  | 1,973 |  |  | 391 |
Long-term debt matured or repurchased |  | (607 | ) |  | (1,016 | ) |  | (6 | )
Bonds remarketed, net |  | — |  |  | 195 |  |  | — |
Preferred stock issued, net |  | 269 |  |  | 387 |  |  | 804 |
Preference stock redeemed |  | — |  |  | (400 | ) |  | (75 | )
Short-term debt financing, net |  | 490 |  |  | (1 | ) |  | (250 | )
Dividends paid |  | (489 | ) |  | (587 | ) |  | (551 | )
Other |  | 20 |  |  | (43 | ) |  | (57 | )
Net cash provided by financing activities |  | 181 |  |  | 508 |  |  | 256 |
Cash flows from investing activities: |  |  |  |  |  |
Capital expenditures |  | (3,857 | ) |  | (3,598 | ) |  | (4,149 | )
Proceeds from sale of nuclear decommissioning trust investments |  | 10,079 |  |  | 5,617 |  |  | 2,122 |
Purchases of nuclear decommissioning trust investments |  | (10,123 | ) |  | (5,715 | ) |  | (2,337 | )
Proceeds from sale of assets |  | 4 |  |  | 181 |  |  | — |
Other |  | 40 |  |  | (32 | ) |  | 10 |
Net cash used by investing activities |  | (3,857 | ) |  | (3,547 | ) |  | (4,354 | )
Net (decrease) increase in cash and cash equivalents |  | (16 | ) |  | 9 |  |  | (12 | )
Cash and cash equivalents, beginning of year |  | 54 |  |  | 45 |  |  | 57 |
Cash and cash equivalents, end of year |  | $ | 38 |  |  | $ | 54 |  |  | $ | 45 |