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Income Taxes | 9 Months Ended
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Sep. 30, 2019
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) | 2019 |  | 2018 |  | 2019 |  | 2018
Edison International: |  |  |  |  |  |  |
Income from operations before income taxes | $ | 480 |  |  | $ | 627 |  |  | $ | 1,020 |  |  | $ | 1,127 |
Provision for income tax at federal statutory rate of 21% | 101 |  |  | 132 |  |  | 214 |  |  | 237 |
Increase in income tax from: |  |  |  |  |  |  |  |  |
State tax, net of federal benefit | 5 |  |  | 26 |  |  | — |  |  | 21 |
Property-related | (124 | ) |  | (76 | ) |  | (267 | ) |  | (214 | )
Change related to uncertain tax positions | — |  |  | 1 |  |  | — |  |  | 1 |
Share-based compensation | (1 | ) |  | (1 | ) |  | (3 | ) |  | (1 | )
2018 GRC Final Decision | — |  |  | — |  |  | (80 | ) |  | — |
Deferred tax re-measurement 1 | — |  |  | — |  |  | (69 | ) |  | — |
Other | (3 | ) |  | 1 |  |  | (7 | ) |  | (1 | )
Total income tax benefit | $ | (22 | ) |  | $ | 83 |  |  | $ | (212 | ) |  | $ | 43 |
Effective tax rate | (4.6 | )% |  | 13.2 | % |  | (20.8 | )% |  | 3.8 | %
SCE: |  |  |  |  |  |  |
Income from operations before income taxes | $ | 524 |  |  | $ | 653 |  |  | $ | 1,123 |  |  | $ | 1,288 |
Provision for income tax at federal statutory rate of 21% | 110 |  |  | 137 |  |  | 236 |  |  | 270 |
Increase in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | 8 |  |  | 29 |  |  | 6 |  |  | 33 |
Property-related 2 | (124 | ) |  | (76 | ) |  | (267 | ) |  | (214 | )
Change related to uncertain tax positions | — |  |  | (1 | ) |  | — |  |  | (2 | )
Share-based compensation | — |  |  | (1 | ) |  | (2 | ) |  | (1 | )
2018 GRC Final Decision | — |  |  | — |  |  | (80 | ) |  | — |
Deferred tax re-measurement 1 | — |  |  | — |  |  | (69 | ) |  | — |
Other | (4 | ) |  | (2 | ) |  | (7 | ) |  | (8 | )
Total income tax benefit | $ | (10 | ) |  | $ | 86 |  |  | $ | (183 | ) |  | $ | 78 |
Effective tax rate | (1.9 | )% |  | 13.2 | % |  | (16.3 | )% |  | 6.1 | %
1 Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.
2 | In the third quarter of 2019, SCE recorded incremental tax benefits, primarily related to FERC settlement and prior year tax return true up.
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. For further information, see Note 11. 2018 GRC Final Decision During the second quarter of 2019, SCE recorded a tax benefit of $80 million related to the adoption of the 2018 GRC final decision mainly related to tax benefits on property-related items. This change results primarily from an updated estimate in the amount of excess deferred taxes returned to ratepayers for the year 2018. Tax Disputes Tax years that remain open for examination by the Internal Revenue Service ("IRS") and the California Franchise Tax Board are 2016 – 2018 and 2010 – 2017, respectively. Edison International has settled all open tax positions with the IRS for taxable years prior to 2013. In the fourth quarter of 2018, Edison International recorded the impacts of a settlement reached with the California Franchise Tax Board for tax years 1994 – 2006 that resulted in a $65 million refund of tax and interest. This refund was received in the second quarter of 2019. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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