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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Taxes |
Components of Income Tax (Benefit) Expense | The components of income tax (benefit) expense by location of taxing jurisdiction are: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Edison International | ​ | SCE
​ | ​ | Years ended December 31,
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Current: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Federal | ​ | $ | 2 | ​ | $ | — | ​ | $ | 13 | ​ | $ | — | ​ | $ | — | ​ | $ | 12
State | ​ |  | 13 | ​ |  | (179) | ​ |  | (22) | ​ |  | 2 | ​ |  | (45) | ​ |  | (26)
​ | ​ |  | 15 | ​ |  | (179) | ​ |  | (9) | ​ |  | 2 | ​ |  | (45) | ​ |  | (14)
Deferred: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Federal | ​ |  | (103) | ​ |  | 83 | ​ |  | (230) | ​ |  | (44) | ​ |  | 83 | ​ |  | (207)
State | ​ |  | (74) | ​ |  | (40) | ​ |  | (66) | ​ |  | (67) | ​ |  | (21) | ​ |  | (56)
​ | ​ |  | (177) | ​ |  | 43 | ​ |  | (296) | ​ |  | (111) | ​ |  | 62 | ​ |  | (263)
Total | ​ | $ | (162) | ​ | $ | (136) | ​ | $ | (305) | ​ | $ | (109) | ​ | $ | 17 | ​ | $ | (277)
Components of Net Accumulated Deferred Income Tax Liability | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Edison International | ​ | SCE
​ | ​ | Years ended December 31,
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Current: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Federal | ​ | $ | 2 | ​ | $ | — | ​ | $ | 13 | ​ | $ | — | ​ | $ | — | ​ | $ | 12
State | ​ |  | 13 | ​ |  | (179) | ​ |  | (22) | ​ |  | 2 | ​ |  | (45) | ​ |  | (26)
​ | ​ |  | 15 | ​ |  | (179) | ​ |  | (9) | ​ |  | 2 | ​ |  | (45) | ​ |  | (14)
Deferred: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Federal | ​ |  | (103) | ​ |  | 83 | ​ |  | (230) | ​ |  | (44) | ​ |  | 83 | ​ |  | (207)
State | ​ |  | (74) | ​ |  | (40) | ​ |  | (66) | ​ |  | (67) | ​ |  | (21) | ​ |  | (56)
​ | ​ |  | (177) | ​ |  | 43 | ​ |  | (296) | ​ |  | (111) | ​ |  | 62 | ​ |  | (263)
Total | ​ | $ | (162) | ​ | $ | (136) | ​ | $ | (305) | ​ | $ | (109) | ​ | $ | 17 | ​ | $ | (277)
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, 2022
​ | ​ | Loss | ​ | Credit | ​ | Loss | ​ | Credit
(in millions) |  | Carryforwards |  | Carryforwards |  | Carryforwards |  | Carryforwards
Expire in 2023 | ​ | $ | 10 | ​ | $ | — | ​ | $ | 6 | ​ | $ | —
Expire between 2024 to 2027 | ​ |  | 26 | ​ |  | — | ​ |  | 25 | ​ |  | —
Expire between 2029 to 2042 | ​ |  | 1,670 | ​ |  | 544 | ​ |  | 870 | ​ |  | 60
No expiration date1 | ​ |  | 1,529 | ​ |  | 10 | ​ |  | 1,450 | ​ |  | —
Total | ​ | $ | 3,235 | ​ | $ | 554 | ​ | $ | 2,351 | ​ | $ | 60
1 | Under the Tax Cut and Jobs Act signed into law on December 22, 2017 ("Tax Reform"), that it was an event vs. 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) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020 |
Income from operations before income taxes | ​ | $ | 662 | ​ | $ | 789 | ​ | $ | 566 | ​ | $ | 845 | ​ | $ | 952 | ​ | $ | 665 | ​
Provision for income tax at federal statutory rate of 21% | ​ |  | 139 | ​ |  | 166 | ​ |  | 119 | ​ |  | 177 | ​ |  | 200 | ​ |  | 140 | ​
Increase (decrease) in income tax from: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
State tax, net of federal benefit | ​ |  | (70) | ​ |  | (47) | ​ |  | (61) | ​ |  | (57) | ​ |  | (33) | ​ |  | (52) | ​
Property-related | ​ |  | (219) | ​ |  | (233) | ​ |  | (320) | ​ |  | (219) | ​ |  | (233) | ​ |  | (320) | ​
Change related to uncertain tax position1 | ​ |  | — | ​ |  | (147) | ​ |  | (15) | ​ |  | — | ​ |  | (37) | ​ |  | (19) | ​
Wildfire related charges2 | ​ | ​ | — | ​ | ​ | 31 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 31 | ​ | ​ | — | ​
Average rate assumption method ("ARAM") adjustment3 | ​ | ​ | — | ​ | ​ | 87 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 87 | ​ | ​ | — | ​
Corporate-owned life insurance cash surrender value | ​ |  | (9) | ​ |  | (8) | ​ |  | (8) | ​ |  | (9) | ​ |  | (8) | ​ |  | (8) | ​
Other | ​ |  | (3) | ​ |  | 15 | ​ |  | (20) | ​ |  | (1) | ​ |  | 10 | ​ |  | (18) | ​
Total income tax (benefit) expense | ​ | $ | (162) | ​ | $ | (136) | ​ | $ | (305) | ​ | $ | (109) | ​ | $ | 17 | ​ | $ | (277) | ​
Effective tax rate | ​ |  | (24.5) | % |  | (17.2) | % |  | (53.9) | % |  | (12.9) | % |  | 1.8 | % |  | (41.7) | %
1 | In 2021, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board "FTB" for tax years 2007 – 2012. See further discussion in Tax Disputes below. In 2020, Edison International and SCE recognized tax expense and benefit, respectively, primarily due to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit.
2 | Relates to the non-tax deductible portions of the SED Agreement (as defined in Note 12). See Note 12 for further discussion under 2017/2018 Wildfire/Mudslide Events.
3 | In July 2021, SCE received the IRS' 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.
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Edison International | ​ | SCE
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Balance at January 1, | ​ | $ | 613 | ​ | $ | 679 | ​ | $ | 370 | ​ | $ | 340 | ​ | $ | 320 | ​ | $ | 282
Tax positions taken during the current year: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Increases | ​ |  | 54 | ​ |  | 53 | ​ |  | 55 | ​ |  | 54 | ​ |  | 53 | ​ |  | 56
Tax positions taken during a prior year: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Increases1 | ​ |  | — | ​ |  | 3 | ​ |  | 274 | ​ |  | — | ​ |  | 1 | ​ |  | 4
Decreases2 | ​ |  | (21) | ​ |  | (118) | ​ |  | (20) | ​ |  | (20) | ​ |  | (29) | ​ |  | (22)
Settlements with taxing authorities3 | ​ |  | — | ​ |  | (4) | ​ |  | — | ​ |  | — | ​ |  | (5) | ​ |  | —
Balance at December 31, | ​ | $ | 646 | ​ | $ | 613 | ​ | $ | 679 | ​ | $ | 374 | ​ | $ | 340 | ​ | $ | 320
1 | Edison International recorded favorable tax positions in 2020 in connection with the Edison Mission Energy bankruptcy that required a revaluation of the reserve for uncertain tax positions.
2 | Decrease in 2021 was related to re-measurement as a result of a settlement with the FTB for tax years 2007 – 2012.
3 | In 2021, Edison International reached a settlement with the FTB for tax 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 are:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Edison International | ​ | SCE
​ | ​ | December 31,
(in millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Accrued interest and penalties | ​ | $ | — | ​ | $ | — | ​ | $ | 23 | ​ | $ | 20
​ The net after-tax interest and penalties recognized in income tax (benefit) expense are:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Edison International | ​ | SCE
​ | ​ | Years ended December 31,
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Net after-tax interest and penalties tax (benefit) expense | ​ | $ | — | ​ | $ | (41) | ​ | $ | 4 | ​ | $ | 2 | ​ | $ | (2) | ​ | $ | 6

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