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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of Income Tax (Benefit) Expense by Location of Taxing Jurisdiction | The components of income tax (benefit) expense by location of taxing jurisdiction are:
| Edison International |  | SCE
| Years ended December 31,
(in millions) | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |  |  |  |  |  |
Federal | $ | — |  |  | $ | (57 | ) |  | $ | (221 | ) |  | $ | — |  |  | $ | (51 | ) |  | $ | (253 | )
State | 6 |  |  | (155 | ) |  | 4 |  |  | 14 |  |  | (93 | ) |  | (81 | )
| 6 |  |  | (212 | ) |  | (217 | ) |  | 14 |  |  | (144 | ) |  | (334 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |
Federal | (243 | ) |  | (386 | ) |  | 570 |  |  | (206 | ) |  | (354 | ) |  | 265 |
State | (41 | ) |  | (141 | ) |  | (72 | ) |  | (37 | ) |  | (198 | ) |  | 39 |
| (284 | ) |  | (527 | ) |  | 498 |  |  | (243 | ) |  | (552 | ) |  | 304 |
Total continuing operations | (278 | ) |  | (739 | ) |  | 281 |  |  | (229 | ) |  | (696 | ) |  | (30 | )
Discontinued operations 1 | — |  |  | (34 | ) |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | (278 | ) |  | $ | (773 | ) |  | $ | 281 |  |  | $ | (229 | ) |  | $ | (696 | ) |  | $ | (30 | )
1 In the fourth quarter of 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below.
Components of Net Accumulated Deferred Income Tax Liability | The components of net accumulated deferred income tax liability are:
| Edison International |  | SCE
| December 31,
(in millions) | 2019 |  | 2018 |  | 2019 |  | 2018
Deferred tax assets: |  |  |  |  |  |  |
Property | $ | 478 |  |  | $ | 399 |  |  | $ | 435 |  |  | $ | 388 |
Wildfire-related 1 | 847 |  |  | 709 |  |  | 847 |  |  | 709 |
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 449 |  |  | 323 |  |  | 449 |  |  | 323 |
Loss and credit carryforwards 2 | 1,515 |  |  | 1,375 |  |  | 253 |  |  | 154 |
Regulatory asset | 739 |  |  | 798 |  |  | 739 |  |  | 798 |
Pension and postretirement benefits other than pensions, net | 170 |  |  | 171 |  |  | 40 |  |  | 46 |
Other | 408 |  |  | 188 |  |  | 416 |  |  | 184 |
Sub-total | 4,606 |  |  | 3,963 |  |  | 3,179 |  |  | 2,602 |
Less: valuation allowance 3 | 35 |  |  | 36 |  |  | — |  |  | — |
Total | 4,571 |  |  | 3,927 |  |  | 3,179 |  |  | 2,602 |
Deferred tax liabilities: |  |  |  |  |  |  |
Property | 8,244 |  |  | 7,685 |  |  | 8,234 |  |  | 7,685 |
Regulatory liability | 570 |  |  | 367 |  |  | 570 |  |  | 367 |
Nuclear decommissioning trust assets | 449 |  |  | 323 |  |  | 449 |  |  | 323 |
Other | 320 |  |  | 57 |  |  | 310 |  |  | 54 |
Total | 9,583 |  |  | 8,432 |  |  | 9,563 |  |  | 8,429 |
Accumulated deferred income tax liability, net 4 | $ | 5,012 |  |  | $ | 4,505 |  |  | $ | 6,384 |  |  | $ | 5,827 |
1 | Relates to accrued estimated losses for wildfire-related claims, net of expected recoveries from insurance and FERC customers, and contributions to the Wildfire Insurance Fund. For further information, see Note 12 and Note 1.
2 | As of December 31, 2019, deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $212 million and $130 million for Edison International and SCE, respectively.
3 | As of December 31, 2019, Edison International has recorded a valuation allowance of $30 million for non-California state net operating loss carryforwards, and $5 million for California capital losses generated from sale of SoCore Energy in 2018, which are estimated to expire before being utilized.
4 Included in "Deferred income taxes and credits" on the consolidated balance sheets.
Summary of Net Operating Loss and Tax Credit Carryforwards | The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows:
| Edison International |  | SCE
| December 31, 2019
(in millions) | Loss Carryforwards |  | Credit Carryforwards |  | Loss Carryforwards |  | Credit Carryforwards
Expire between 2029 to 2037 | $ | 1,024 |  |  | $ | 482 |  |  | $ | 229 |  |  | $ | 30 |
Expire between 2021 to 2024 | 29 |  |  | — |  |  | 24 |  |  | — |
No expiration date 1 | 182 |  |  | 10 |  |  | 100 |  |  | — |
Total | $ | 1,235 |  |  | $ | 492 |  |  | $ | 353 |  |  | $ | 30 |
1 | Under the Tax Reform, net operating losses generated after December 31, 2017 can carryforward indefinitely.
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:
| Edison International |  | SCE
| Years ended December 31,
(in millions) | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Income (loss) from continuing operations before income taxes | $ | 1,127 |  |  | $ | (1,089 | ) |  | $ | 949 |  |  | $ | 1,301 |  |  | $ | (885 | ) |  | $ | 1,106 |
Provision for income tax at federal statutory rate of 21% for 2019 and 2018, and 35% for 2017 1 | 237 |  |  | (229 | ) |  | 332 |  |  | 273 |  |  | (186 | ) |  | 387 |
Increase in income tax from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Items presented with related state income tax, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State tax, net of federal benefit | (22 | ) |  | (168 | ) |  | 2 |  |  | (13 | ) |  | (155 | ) |  | 8 |
Property-related | (303 | ) |  | (275 | ) |  | (439 | ) |  | (303 | ) |  | (275 | ) |  | (439 | )
Change related to uncertain tax positions 2 | — |  |  | (66 | ) |  | (18 | ) |  | — |  |  | (71 | ) |  | (13 | )
Revised San Onofre Settlement Agreement 3 | — |  |  | — |  |  | 25 |  |  | — |  |  | — |  |  | 25 |
Share-based compensation 4 | (4 | ) |  | (2 | ) |  | (55 | ) |  | (3 | ) |  | (1 | ) |  | (11 | )
Deferred tax re-measurement 5 | (88 | ) |  | — |  |  | 466 |  |  | (88 | ) |  | — |  |  | 33 |
2018 GRC Final Decision | (80 | ) |  | — |  |  | — |  |  | (80 | ) |  | — |  |  | — |
Other | (18 | ) |  | 1 |  |  | (32 | ) |  | (15 | ) |  | (8 | ) |  | (20 | )
Total income tax (benefit) expense from continuing operations | $ | (278 | ) |  | $ | (739 | ) |  | $ | 281 |  |  | $ | (229 | ) |  | $ | (696 | ) |  | $ | (30 | )
Effective tax rate | (24.7 | )% |  | (67.9 | )% |  | 29.6 | % |  | (17.6 | )% |  | (78.6 | )% |  | (2.7 | )%
1 Tax Reform reduced the federal corporate income tax rate from 35% to 21%, effective January 1, 2018. 2 In 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below. 3 Includes the write-off of an unrecovered tax regulatory asset related to the Revised San Onofre Order Instituting Investigation Settlement Agreement among SCE, SDG&E and various intervening parties, dated January 30, 2018 and modified on August 2, 2018 ("Revised San Onofre Settlement Agreement").
4 | Includes state taxes of $(11) million for Edison International and $(2) million for SCE for the year ended December 31, 2017.
5 | In 2017, Edison International and SCE recorded a charge to earnings related to the re-measurement of deferred taxes resulting from Tax Reform. This charge was updated in 2019 to conform to a CPUC resolution which finalized the re-measurement amounts belonging to shareholders and those amounts are charged to earnings.
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations:
| Edison International |  | SCE
| December 31,
(in millions) | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Balance at January 1, | $ | 338 |  |  | $ | 432 |  |  | $ | 471 |  |  | $ | 249 |  |  | $ | 331 |  |  | $ | 371 |
Tax positions taken during the current year: |  |  |  |  |  |  |  |  |  |  |
Increases | 46 |  |  | 41 |  |  | 51 |  |  | 47 |  |  | 42 |  |  | 51 |
Tax positions taken during a prior year: |  |  |  |  |  |  |  |  |  |  |
Increases | 6 |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | — |
Decreases 1 | (20 | ) |  | (108 | ) |  | (7 | ) |  | (20 | ) |  | (121 | ) |  | (13 | )
Settlements with taxing authorities 2 | — |  |  | (27 | ) |  | (83 | ) |  | — |  |  | (3 | ) |  | (78 | )
Balance at December 31, | $ | 370 |  |  | $ | 338 |  |  | $ | 432 |  |  | $ | 282 |  |  | $ | 249 |  |  | $ | 331 |
1 | Decrease in 2018 was related to re-measurement as a result of a settlement with the California Franchise Tax Board for tax years 1994 – 2006.
2 In 2018, Edison International reached a settlement with the California Franchise Tax Board for tax years 1994 – 2006. In 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 – 2012.
Schedule of Interest and Penalties Related to Income Tax Liabilities | The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are:
| Edison International |  | SCE
| Years ended December 31,
(in millions) | 2019 |  | 2018 |  | 2019 |  | 2018
Accrued interest and penalties | $ | 56 |  |  | $ | 37 |  |  | $ | 29 |  |  | $ | 6 |
The net after-tax interest and penalties recognized in income tax expense (benefit) for continuing and discontinued operations are:
| Edison International |  | SCE
| December 31,
(in millions) | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Net after-tax interest and penalties tax expense (benefit) | $ | 4 |  |  | $ | (62 | ) |  | $ | 6 |  |  | $ | 3 |  |  | $ | (25 | ) |  | $ | 4 |

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