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Income Taxes | 9 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 8.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) |  | 2021 |  | 2020 |  | 2021 |  | 2020 | ​
Edison International: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Loss) income from operations before income taxes | ​ | $ | (326) | ​ | $ | (517) | ​ | $ | 357 | ​ | $ | (36) | ​
Provision for income tax at federal statutory rate of 21% | ​ |  | (68) | ​ |  | (108) | ​ |  | 75 | ​ |  | (7) | ​
Increase (decrease) in income tax from: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
State tax, net of federal benefit | ​ |  | (39) | ​ |  | (67) | ​ |  | (28) | ​ |  | (74) | ​
Property-related | ​ |  | (33) | ​ |  | (81) | ​ |  | (159) | ​ |  | (228) | ​
Average rate assumption method ("ARAM") adjustment 1 | ​ | ​ | 87 | ​ | ​ | — | ​ | ​ | 87 | ​ | ​ | — | ​
Change related to uncertain tax position2 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | (15) | ​
Insurance benefits | ​ | ​ | (2) | ​ | ​ | (5) | ​ | ​ | (7) | ​ | ​ | (12) | ​
Wildfire related charges3 | ​ | ​ | 31 | ​ | ​ | — | ​ | ​ | 31 | ​ | ​ | — | ​
Other | ​ |  | (5) | ​ |  | (14) | ​ |  | 4 | ​ |  | (19) | ​
Total income tax expense (benefit) | ​ | $ | (29) | ​ | $ | (275) | ​ | $ | 3 | ​ | $ | (355) | ​
Effective tax rate | ​ |  | (8.9) | % |  | (53.2) | % |  | 0.8 | % |  | (986.1) | %
SCE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Loss) income from operations before income taxes | ​ | $ | (268) | ​ | $ | (469) | ​ | $ | 492 | ​ | $ | 142 | ​
Provision for income tax at federal statutory rate of 21% | ​ |  | (56) | ​ |  | (98) | ​ |  | 103 | ​ |  | 30 | ​
Increase (decrease) in income tax from: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
State tax, net of federal benefit | ​ |  | (32) | ​ |  | (61) | ​ |  | (17) | ​ |  | (62) | ​
Property-related | ​ |  | (33) | ​ |  | (81) | ​ |  | (159) | ​ |  | (228) | ​
ARAM adjustment 1 | ​ | ​ | 87 | ​ | ​ | — | ​ | ​ | 87 | ​ | ​ | — | ​
Change related to uncertain tax position2 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (18) | ​
Insurance benefits | ​ | ​ | (2) | ​ | ​ | (5) | ​ | ​ | (7) | ​ | ​ | (12) | ​
Wildfire related charges3 | ​ | ​ | 31 | ​ | ​ | — | ​ | ​ | 31 | ​ | ​ | — | ​
Other | ​ |  | (6) | ​ |  | (6) | ​ |  | 3 | ​ |  | (10) | ​
Total income tax expense (benefit) | ​ | $ | (11) | ​ | $ | (251) | ​ | $ | 41 | ​ | $ | (300) | ​
Effective tax rate | ​ |  | (4.1) | % |  | (53.5) | % |  | 8.3 | % |  | (211.3) | %
1 | In July 2021, SCE received the IRS's response to its private letter ruling request, regarding the scope of the deferred tax normalization requirements and the computations required to comply with the average rate assumption method. As a result, SCE's estimate changed and a cumulative true up of $87 million reduction in tax benefits was recorded in the third quarter of 2021, for the period of January 1, 2018 to June 30, 2021. The above true up has an offsetting revenue adjustment resulting in no impact on earnings.
2 | Primarily relates to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit.
3 | Relates to portions of the estimated charge for the 2017/2018 Wildfire/Mudslide Events recorded in the third quarter of 2021, assumed to be non-deductible for tax purposes.
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. Tax Disputes Tax years that remain open for examination by the IRS and the California Franchise Tax Board ("FTB") are 2016 – 2020 and 2013 – 2020, respectively. In October 2021, Edison International and subsidiaries reached a settlement with the FTB for tax years 2007 – 2012. Edison International anticipates recording a $60 million cash refund and approximately $148 million of earnings benefit resulting from the settlement in the fourth quarter of 2021.

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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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