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Income Taxes (Tables) | 9 Months Ended
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Sep. 30, 2018
Income Tax Disclosure [Abstract] |
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:
| Three months ended September 30, |  | Nine months ended September 30,
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Edison International: |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 627 |  |  | $ | 432 |  |  | $ | 1,127 |  |  | $ | 1,119 |
Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 | 132 |  |  | 151 |  |  | 237 |  |  | 392 |
Increase in income tax from: |  |  |  |  |  |  |  |  |
State tax, net of federal benefit | 26 |  |  | 7 |  |  | 21 |  |  | 23 |
Property-related 2 | (76 | ) |  | (201 | ) |  | (214 | ) |  | (396 | )
Change related to uncertain tax positions | 1 |  |  | — |  |  | 1 |  |  | (17 | )
Shared-based compensation 3 | (1 | ) |  | (4 | ) |  | (1 | ) |  | (50 | )
Other | 1 |  |  | (22 | ) |  | (1 | ) |  | (35 | )
Total income tax expense (benefit) from continuing operations | $ | 83 |  |  | $ | (69 | ) |  | $ | 43 |  |  | $ | (83 | )
Effective tax rate | 13.2 | % |  | (16.0 | )% |  | 3.8 | % |  | (7.4 | )%
SCE: |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 653 |  |  | $ | 462 |  |  | $ | 1,288 |  |  | $ | 1,249 |
Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 | 137 |  |  | 162 |  |  | 270 |  |  | 437 |
Increase in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | 29 |  |  | 12 |  |  | 33 |  |  | 34 |
Property-related 2 | (76 | ) |  | (201 | ) |  | (214 | ) |  | (396 | )
Change related to uncertain tax positions | (1 | ) |  | (1 | ) |  | (2 | ) |  | (13 | )
Shared-based compensation 3 | (1 | ) |  | (1 | ) |  | (1 | ) |  | (10 | )
Other | (2 | ) |  | (6 | ) |  | (8 | ) |  | (18 | )
Total income tax expense (benefit) from continuing operations | $ | 86 |  |  | $ | (35 | ) |  | $ | 78 |  |  | $ | 34 |
Effective tax rate | 13.2 | % |  | (7.6 | )% |  | 6.1 | % |  | 2.7 | %
1 | Tax Reform reduced the federal corporate income tax rate from 35% to 21%, effective January 1, 2018.
2 In March 2017, SCE received the final decision on claims against, and counterclaims of, Mitsubishi Heavy Industries, Inc. and related companies (together, "MHI") from the arbitration tribunal, the International Chamber of Commerce. With the resolution of the insurance claim against Nuclear Electric Insurance Limited ("NEIL") in October 2015 and the conclusion of the arbitration proceeding against MHI, a tax abandonment loss of $691 million and $1.13 billion for federal and state income tax purposes, respectively, was claimed in the first six months of 2017, resulting in a flow-through tax benefit of approximately $39 million, impacting the 2017 effective tax rate. In addition, during the third quarter of 2017, SCE recorded $70 million ($118 million pre-tax) of tax benefits related to tax accounting method changes resulting from the filing of SCE's 2016 tax returns. Incremental tax benefits related to repair deductions and tax accounting method changes are required to be flowed back to customers. 3 Includes state taxes for Edison International and SCE of $10 million and $2 million, respectively, for the nine months ended September 30, 2017.
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits:
| Edison International |  | SCE
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Balance at January 1, | $ | 432 |  |  | $ | 471 |  |  | $ | 331 |  |  | $ | 371 |
Tax positions taken during the current year: |  |  |  |  |  |  |
Increases | 31 |  |  | 39 |  |  | 31 |  |  | 39 |
Tax positions taken during a prior year: |  |  |  |  |  |  |
Increases | — |  |  | 1 |  |  | — |  |  | 1 |
Decreases | (11 | ) |  | (5 | ) |  | (11 | ) |  | (4 | )
Decreases for settlements during the period 1 | — |  |  | (83 | ) |  | — |  |  | (78 | )
Balance at September 30, | $ | 452 |  |  | $ | 423 |  |  | $ | 351 |  |  | $ | 329 |
1 In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012.

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