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Income Taxes | 9 Months Ended
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Sep. 30, 2016
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 September 30, |  | Nine months ended September 30,
(in millions) | 2016 |  | 2015 |  | 2016 |  | 2015
Edison International: |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 571 |  |  | $ | 487 |  |  | $ | 1,162 |  |  | $ | 1,324 |
Provision for income tax at federal statutory rate of 35% | 200 |  |  | 170 |  |  | 407 |  |  | 463 |
Increase in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | 20 |  |  | 6 |  |  | 30 |  |  | 23 |
Property-related1 | (79 | ) |  | (79 | ) |  | (296 | ) |  | (207 | )
Change related to uncertain tax positions | (5 | ) |  | 10 |  |  | (4 | ) |  | (53 | )
Other | (14 | ) |  | (25 | ) |  | (24 | ) |  | (31 | )
Total income tax (benefit) expense from continuing operations | $ | 122 |  |  | $ | 82 |  |  | $ | 113 |  |  | $ | 195 |
Effective tax rate | 21.4 | % |  | 16.8 | % |  | 9.7 | % |  | 14.7 | %
SCE: |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 607 |  |  | $ | 509 |  |  | $ | 1,291 |  |  | $ | 1,370 |
Provision for income tax at federal statutory rate of 35% | 212 |  |  | 178 |  |  | 452 |  |  | 480 |
Increase in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | 25 |  |  | 8 |  |  | 40 |  |  | 23 |
Property-related1 | (79 | ) |  | (79 | ) |  | (296 | ) |  | (207 | )
Change related to uncertain tax positions | (7 | ) |  | 9 |  |  | (9 | ) |  | (56 | )
Other | (10 | ) |  | (24 | ) |  | (25 | ) |  | (33 | )
Total income tax (benefit) expense from continuing operations | $ | 141 |  |  | $ | 92 |  |  | $ | 162 |  |  | $ | 207 |
Effective tax rate | 23.2 | % |  | 18.1 | % |  | 12.5 | % |  | 15.1 | %
1 | During the second quarter of 2016, SCE recorded $79 million for 2012 – 2014 incremental tax benefits related to repair deductions, which were flowed-through to customers ($133 million pre-tax).
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. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. Repair Deductions Previously, SCE recognized earnings and a regulatory asset for deferred income taxes related to 2012 – 2014 tax repair deductions. As a result of the CPUC's rate base offset in the 2015 GRC decision, SCE wrote down this regulatory asset in full during 2015. The after-tax charge was reflected in "Income tax expense" on the December 31, 2015 consolidated statement of income. The amount of tax repair deductions the CPUC used to establish the rate base offset was based on SCE's forecast of 2012 – 2014 tax repair deductions from the Notice of Intent filed in the 2015 GRC. The amount of tax repair deductions included in the Notice of Intent was less than the actual tax repair deductions SCE reported on its 2012 through 2014 income tax returns. In April 2016, the CPUC granted SCE's request to reduce SCE's Base Revenue Requirement Balancing Account ("BRRBA") by $234 million in future periods subject to the timing and final outcome of audits that may be conducted by tax authorities. The refunds will result in flowing incremental tax benefits for 2012 – 2014 to customers. SCE refunded $133 million ($79 million after-tax) during the second quarter of 2016. SCE did not record a gain or loss from this reduction. Regulatory assets recorded from flow through tax benefits are recovered through SCE's general rate case proceedings. Tax Disputes Tax Years 2007 – 2012 Edison International has reached a tentative settlement agreement with the IRS for the 2007 – 2012 tax years. The final agreement, when approved, is not expected to have a material impact on the financial statements. During the second quarter of 2015, the Company received the IRS Revenue Agent Report for the 2010 – 2012 tax years. Edison International's and SCE's tax reserves were re-measured at that time and $94 million and $100 million, respectively, of income tax benefits were recorded in the comparable quarter for the prior year. Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2007 – 2015 and 2003 – 2015, respectively.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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