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Income Taxes | 9 Months Ended
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Sep. 30, 2020
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) | 2020 |  | 2019 |  | 2020 |  | 2019
Edison International: |  |  |  |  |  |  |
(Loss) income from operations before income taxes | $ | (517) |  |  | $ | 480 |  |  | $ | (36) |  |  | $ | 1,020 |
Provision for income tax at federal statutory rate of 21% | (108) |  |  | 101 |  |  | (7) |  |  | 214 |
Increase (decrease) in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | (67) |  |  | 5 |  |  | (74) |  |  | — |
Property-related | (81) |  |  | (124) |  |  | (228) |  |  | (267) |
Change related to uncertain tax position1 | — |  |  | — |  |  | (15) |  |  | — |
Deferred tax re-measurement2 | — |  |  | — |  |  | — |  |  | (69) |
2018 GRC Decision | — |  |  | — |  |  | — |  |  | (80) |
Other | (19) |  |  | (4) |  |  | (31) |  |  | (10) |
Total income tax benefit | $ | (275) |  |  | $ | (22) |  |  | $ | (355) |  |  | $ | (212) |
Effective tax rate | (53.2) | % |  | (4.6) | % |  | (986.1) | % |  | (20.8) | %
SCE: |  |  |  |  |  |  |
(Loss) income from operations before income taxes | $ | (469) |  |  | $ | 524 |  |  | $ | 142 |  |  | $ | 1,123 |
Provision for income tax at federal statutory rate of 21% | (98) |  |  | 110 |  |  | 30 |  |  | 236 |
Increase (decrease) in income tax from: |  |  |  |  |  |  |
State tax, net of federal benefit | (61) |  |  | 8 |  |  | (62) |  |  | 6 |
Property-related | (81) |  |  | (124) |  |  | (228) |  |  | (267) |
Change related to uncertain tax positions1 | — |  |  | — |  |  | (18) |  |  | — |
Deferred tax re-measurement2 | — |  |  | — |  |  | — |  |  | (69) |
2018 GRC Decision | — |  |  | — |  |  | — |  |  | (80) |
Other | (11) |  |  | (4) |  |  | (22) |  |  | (9) |
Total income tax benefit | $ | (251) |  |  | $ | (10) |  |  | $ | (300) |  |  | $ | (183) |
Effective tax rate | (53.5) | % |  | (1.9) | % |  | (211.3) | % |  | (16.3) | %
1 Primarily relates to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit. 2 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. 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. Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits:
| Edison International |  |  | SCE |
(in millions) | 2020 | 2019 |  | 2020 | 2019
Balance at January 1, | $ | 370 |  | $ | 338 |  |  | $ | 282 |  | $ | 249 |
Tax positions taken during the current year: |  |  |  |  |
Increases | 38 |  | 32 |  |  | 39 |  | 32 |
Tax positions taken during a prior year: |  |  |  |  |
Increases1 | 273 |  | — |  |  | 4 |  | — |
Decreases | (18) |  | (11) |  |  | (21) |  | (11) |
Balance at September 30, | $ | 663 |  | $ | 359 |  |  | $ | 304 |  | $ | 270 |
1 Edison International recorded favorable tax positions for the quarter ended September 30, 2020, in connection with the Edison Mission Energy ("EME") bankruptcy that required a revaluation of the reserve for uncertain tax positions. As of September 30, 2020, if recognized, $446 million of unrecognized tax benefits would impact Edison International's effective tax rate and $87 million of the unrecognized tax benefits would impact SCE's effective tax rate. Tax Disputes Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2016 – 2019 and 2013 – 2019, respectively. Tax years 2007 – 2012 are currently subject to a settlement proceeding with the California Franchise Tax Board. Edison International does not expect to resolve these tax years within the next 12 months. Any impacts cannot be reasonably estimated until further progress is made.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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