XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases | Leases Leases as Lessee SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases when SCE has dispatch rights that determine when and how a plant runs. 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 primarily 3 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 September 30, 2020:
(in millions) | PPA Operating Leases1 |  | Other Operating Leases2,3 |  | PPA Finance Leases1
2020 | $ | 37 |  |  | $ | 10 |  |  | $ | — |
2021 | 205 |  |  | 36 |  |  | 1 |
2022 | 208 |  |  | 30 |  |  | 1 |
2023 | 159 |  |  | 24 |  |  | 2 |
2024 | 47 |  |  | 19 |  |  | 2 |
Thereafter | 489 |  |  | 114 |  |  | 8 |
Total lease payments | 1,145 |  |  | 233 |  |  | 14 |
Amount representing interest3 | 209 |  |  | 60 |  |  | 5 |
Lease liabilities | $ | 936 |  |  | $ | 173 |  |  | $ | 9 |
1Excludes 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. 2Excludes 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. 3Lease payments are discounted to their present value using SCE's incremental borrowing rates. Supplemental balance sheet information related to SCE's leases was as follows:
(in millions) | September 30, 2020 |  | December 31, 2019
Operating leases: |  |  |
Operating lease right-of-use ("ROU") assets1 | $ | 1,109 |  |  | $ | 689 |
Current portion of operating lease liabilities | 210 |  |  | 79 |
Operating lease liabilities | 899 |  |  | 610 |
Total operating lease liabilities1 | $ | 1,109 |  |  | $ | 689 |
Finance leases included in: |  |  |
Utility property, plant and equipment, gross | $ | 10 |  |  | $ | 14 |
Accumulated depreciation | (1) |  |  | (5) |
Utility property, plant and equipment, net | 9 |  |  | 9 |
Other current liabilities | 1 |  |  | 1 |
Other long-term liabilities | 8 |  |  | 8 |
Total finance lease liabilities | $ | 9 |  |  | $ | 9 |
1 During the third quarter of 2020, a PPA operating lease contract commenced and one PPA contract was amended that resulted in a total of $463 million additions in ROU assets and lease liabilities. 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:
|  | Three months ended September 30, |  |  |  | Nine months ended September 30, |  |
(in millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
PPA leases: |  |  |  |  |  |  |  |
Operating lease cost |  | 35 |  |  | 38 |  |  | 74 |  |  | 98 |
Finance lease cost |  | 1 |  |  | 1 |  |  | 2 |  |  | 1 |
Variable lease cost1 |  | 676 |  |  | 751 |  |  | 1,582 |  |  | 1,742 |
Total PPA lease cost |  | 712 |  |  | 790 |  |  | 1,658 |  |  | 1,841 |
Other operating leases cost |  | 11 |  |  | 12 |  |  | 35 |  |  | 35 |
Total lease cost |  | $ | 723 |  |  | $ | 802 |  |  | $ | 1,693 |  |  | $ | 1,876 |
1Includes lease costs from renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation. Other information related to leases was as follows:
(in millions, except lease term and discount rate) | Nine month ended September 30, 2020 |  | Nine month ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases |  |  |
PPA leases | $ | 74 |  |  | $ | 98 |
Other leases | 33 |  |  | 34 |
ROU assets obtained in exchange for lease obligations: |  |  |
PPA operating leases | 463 |  |  | — |
Other operating leases | 42 |  |  | 23 |
Weighted average remaining lease term (in years): |  |  |
Operating leases |  |  |
PPA leases | 9.83 |  | 16.03
Other leases | 12.35 |  | 12.75
PPA Finance leases | 10.90 |  | 11.71
Weighted average discount rate: |  |  |
Operating leases |  |  |
PPA leases | 3.08 | % |  | 4.44 | %
Other leases | 3.74 | % |  | 3.89 | %
PPA Finance leases | 8.83 | % |  | 8.74 | %
Leases as lessor EME is a wholly-owned subsidiary of Edison International. EME emerged from bankruptcy in 2014 and retained a lease investment in a hydroelectric power plant in Vidalia, Louisiana. During 2020, the lessee exercised an option in the lease agreement to purchase the asset upon expiration of the lease term in November 2020. Edison International has no remaining investment balance as of September 30, 2020 related to the lease investment. Upon completion of the sale, Edison International expects to receive net proceeds of approximately $131 million. The revenue recognized for the lease in 2020 is immaterial to Edison International's consolidated financial statements.
Leases | Leases Leases as Lessee SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases when SCE has dispatch rights that determine when and how a plant runs. 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 primarily 3 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 September 30, 2020:
(in millions) | PPA Operating Leases1 |  | Other Operating Leases2,3 |  | PPA Finance Leases1
2020 | $ | 37 |  |  | $ | 10 |  |  | $ | — |
2021 | 205 |  |  | 36 |  |  | 1 |
2022 | 208 |  |  | 30 |  |  | 1 |
2023 | 159 |  |  | 24 |  |  | 2 |
2024 | 47 |  |  | 19 |  |  | 2 |
Thereafter | 489 |  |  | 114 |  |  | 8 |
Total lease payments | 1,145 |  |  | 233 |  |  | 14 |
Amount representing interest3 | 209 |  |  | 60 |  |  | 5 |
Lease liabilities | $ | 936 |  |  | $ | 173 |  |  | $ | 9 |
1Excludes 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. 2Excludes 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. 3Lease payments are discounted to their present value using SCE's incremental borrowing rates. Supplemental balance sheet information related to SCE's leases was as follows:
(in millions) | September 30, 2020 |  | December 31, 2019
Operating leases: |  |  |
Operating lease right-of-use ("ROU") assets1 | $ | 1,109 |  |  | $ | 689 |
Current portion of operating lease liabilities | 210 |  |  | 79 |
Operating lease liabilities | 899 |  |  | 610 |
Total operating lease liabilities1 | $ | 1,109 |  |  | $ | 689 |
Finance leases included in: |  |  |
Utility property, plant and equipment, gross | $ | 10 |  |  | $ | 14 |
Accumulated depreciation | (1) |  |  | (5) |
Utility property, plant and equipment, net | 9 |  |  | 9 |
Other current liabilities | 1 |  |  | 1 |
Other long-term liabilities | 8 |  |  | 8 |
Total finance lease liabilities | $ | 9 |  |  | $ | 9 |
1 During the third quarter of 2020, a PPA operating lease contract commenced and one PPA contract was amended that resulted in a total of $463 million additions in ROU assets and lease liabilities. 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:
|  | Three months ended September 30, |  |  |  | Nine months ended September 30, |  |
(in millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
PPA leases: |  |  |  |  |  |  |  |
Operating lease cost |  | 35 |  |  | 38 |  |  | 74 |  |  | 98 |
Finance lease cost |  | 1 |  |  | 1 |  |  | 2 |  |  | 1 |
Variable lease cost1 |  | 676 |  |  | 751 |  |  | 1,582 |  |  | 1,742 |
Total PPA lease cost |  | 712 |  |  | 790 |  |  | 1,658 |  |  | 1,841 |
Other operating leases cost |  | 11 |  |  | 12 |  |  | 35 |  |  | 35 |
Total lease cost |  | $ | 723 |  |  | $ | 802 |  |  | $ | 1,693 |  |  | $ | 1,876 |
1Includes lease costs from renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation. Other information related to leases was as follows:
(in millions, except lease term and discount rate) | Nine month ended September 30, 2020 |  | Nine month ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases |  |  |
PPA leases | $ | 74 |  |  | $ | 98 |
Other leases | 33 |  |  | 34 |
ROU assets obtained in exchange for lease obligations: |  |  |
PPA operating leases | 463 |  |  | — |
Other operating leases | 42 |  |  | 23 |
Weighted average remaining lease term (in years): |  |  |
Operating leases |  |  |
PPA leases | 9.83 |  | 16.03
Other leases | 12.35 |  | 12.75
PPA Finance leases | 10.90 |  | 11.71
Weighted average discount rate: |  |  |
Operating leases |  |  |
PPA leases | 3.08 | % |  | 4.44 | %
Other leases | 3.74 | % |  | 3.89 | %
PPA Finance leases | 8.83 | % |  | 8.74 | %
Leases as lessor EME is a wholly-owned subsidiary of Edison International. EME emerged from bankruptcy in 2014 and retained a lease investment in a hydroelectric power plant in Vidalia, Louisiana. During 2020, the lessee exercised an option in the lease agreement to purchase the asset upon expiration of the lease term in November 2020. Edison International has no remaining investment balance as of September 30, 2020 related to the lease investment. Upon completion of the sale, Edison International expects to receive net proceeds of approximately $131 million. The revenue recognized for the lease in 2020 is immaterial to Edison International's consolidated financial statements.

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=121580752&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=121580752&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