XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.19.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2019
Leases [Abstract] |
Leases | Leases Leases as Lessee SCE has entered into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are 5 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases. The following table summarizes SCE's lease payments for operating and finance leases as of March 31, 2019.
(in millions) | PPA Operating Leases 1 |  | Other Operating Leases 2 |  | PPA Finance Leases 1
2019 | $ | 118 |  |  | $ | 32 |  |  | $ | 1 |
2020 | 124 |  |  | 33 |  |  | 1 |
2021 | 103 |  |  | 27 |  |  | 1 |
2022 | 79 |  |  | 22 |  |  | 2 |
2023 | 47 |  |  | 17 |  |  | 2 |
Thereafter | 536 |  |  | 101 |  |  | 9 |
Total lease payments | $ | 1,007 |  |  | $ | 232 |  |  | $ | 16 |
Amount representing interest 3 | 249 |  |  | 62 |  |  | 6 |
Lease liabilities | $ | 758 |  |  | $ | 170 |  |  | $ | 10 |
At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:
(in millions) | PPA Operating Leases 1 |  | Other Operating Leases 2 |  | PPA Capital Leases 1
2019 | $ | 148 |  |  | $ | 42 |  |  | $ | 5 |
2020 | 124 |  |  | 31 |  |  | 6 |
2021 | 103 |  |  | 27 |  |  | 6 |
2022 | 79 |  |  | 22 |  |  | 6 |
2023 | 47 |  |  | 17 |  |  | 5 |
Thereafter | 536 |  |  | 101 |  |  | 66 |
Total lease payments | $ | 1,037 |  |  | $ | 240 |  |  | $ | 94 |
Amount representing executory costs |  |  |  |  | (25 | )
Amount representing interest |  |  |  |  | (33 | )
Net commitments 4 |  |  |  |  | $ | 36 |
1 | Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.
2 | Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.
3 | Lease payments are discounted to their present value using SCE's incremental borrowing rates.
4 | Includes two contracts with net commitments of $26 million that will commence in 2019.
Supplemental balance sheet information related to SCE's leases was as follows:
(in millions) | March 31, 2019
Operating leases: |
Operating lease ROU assets | $ | 928 |
Current portion of operating lease liabilities | 156 |
Operating lease liabilities | 772 |
Total operating lease liabilities | $ | 928 |
Finance leases included in: |
Utility property, plant and equipment, gross | $ | 14 |
Accumulated depreciation | (4 | )
Utility property, plant and equipment, net | 10 |
Other current liabilities | 1 |
Other long-term liabilities | 9 |
Total finance lease liabilities | $ | 10 |
The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:
(in millions) | Three months ended March 31, 2019
PPA leases: |
Operating lease cost | $ | 30 |
Variable lease cost | 372 |
Total PPA lease cost | 402 |
Other operating leases cost | 11 |
Total lease cost | $ | 413 |
Other information related to leases was as follows:
(in millions, except lease term and discount rate) | Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases |
PPA leases | $ | 30 |
Other leases | 11 |
ROU assets obtained in exchange for lease obligations: |
Other operating leases | 9 |
Weighted average remaining lease term (in years): |
Operating leases |
PPA leases | 12.85 |
Other leases | 12.54 |
PPA Finance leases | 12.14 |
Weighted average discount rate: |
Operating leases |
PPA leases | 4.24 | %
Other leases | 3.85 | %
PPA Finance leases | 8.70 | %
Leases as Lessor SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years. During the three months ended March 31, 2019, SCE recognized $5 million in lease income, which is included in operating revenue on the consolidated statements of income. At March 31, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:
(in millions) |
2019 | $ | 11 |
2020 | 15 |
2021 | 10 |
2022 | 10 |
2023 | 9 |
Thereafter | 141 |
Total | $ | 196 |
Leases | Leases Leases as Lessee SCE has entered into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are 5 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases. The following table summarizes SCE's lease payments for operating and finance leases as of March 31, 2019.
(in millions) | PPA Operating Leases 1 |  | Other Operating Leases 2 |  | PPA Finance Leases 1
2019 | $ | 118 |  |  | $ | 32 |  |  | $ | 1 |
2020 | 124 |  |  | 33 |  |  | 1 |
2021 | 103 |  |  | 27 |  |  | 1 |
2022 | 79 |  |  | 22 |  |  | 2 |
2023 | 47 |  |  | 17 |  |  | 2 |
Thereafter | 536 |  |  | 101 |  |  | 9 |
Total lease payments | $ | 1,007 |  |  | $ | 232 |  |  | $ | 16 |
Amount representing interest 3 | 249 |  |  | 62 |  |  | 6 |
Lease liabilities | $ | 758 |  |  | $ | 170 |  |  | $ | 10 |
At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:
(in millions) | PPA Operating Leases 1 |  | Other Operating Leases 2 |  | PPA Capital Leases 1
2019 | $ | 148 |  |  | $ | 42 |  |  | $ | 5 |
2020 | 124 |  |  | 31 |  |  | 6 |
2021 | 103 |  |  | 27 |  |  | 6 |
2022 | 79 |  |  | 22 |  |  | 6 |
2023 | 47 |  |  | 17 |  |  | 5 |
Thereafter | 536 |  |  | 101 |  |  | 66 |
Total lease payments | $ | 1,037 |  |  | $ | 240 |  |  | $ | 94 |
Amount representing executory costs |  |  |  |  | (25 | )
Amount representing interest |  |  |  |  | (33 | )
Net commitments 4 |  |  |  |  | $ | 36 |
1 | Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.
2 | Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.
3 | Lease payments are discounted to their present value using SCE's incremental borrowing rates.
4 | Includes two contracts with net commitments of $26 million that will commence in 2019.
Supplemental balance sheet information related to SCE's leases was as follows:
(in millions) | March 31, 2019
Operating leases: |
Operating lease ROU assets | $ | 928 |
Current portion of operating lease liabilities | 156 |
Operating lease liabilities | 772 |
Total operating lease liabilities | $ | 928 |
Finance leases included in: |
Utility property, plant and equipment, gross | $ | 14 |
Accumulated depreciation | (4 | )
Utility property, plant and equipment, net | 10 |
Other current liabilities | 1 |
Other long-term liabilities | 9 |
Total finance lease liabilities | $ | 10 |
The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:
(in millions) | Three months ended March 31, 2019
PPA leases: |
Operating lease cost | $ | 30 |
Variable lease cost | 372 |
Total PPA lease cost | 402 |
Other operating leases cost | 11 |
Total lease cost | $ | 413 |
Other information related to leases was as follows:
(in millions, except lease term and discount rate) | Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases |
PPA leases | $ | 30 |
Other leases | 11 |
ROU assets obtained in exchange for lease obligations: |
Other operating leases | 9 |
Weighted average remaining lease term (in years): |
Operating leases |
PPA leases | 12.85 |
Other leases | 12.54 |
PPA Finance leases | 12.14 |
Weighted average discount rate: |
Operating leases |
PPA leases | 4.24 | %
Other leases | 3.85 | %
PPA Finance leases | 8.70 | %
Leases as Lessor SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years. During the three months ended March 31, 2019, SCE recognized $5 million in lease income, which is included in operating revenue on the consolidated statements of income. At March 31, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:
(in millions) |
2019 | $ | 11 |
2020 | 15 |
2021 | 10 |
2022 | 10 |
2023 | 9 |
Thereafter | 141 |
Total | $ | 196 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration