XML 20 R8.htm IDEA: XBRL DOCUMENT
v3.23.2

Summary of Significant Accounting Policies | 6 Months Ended
--- | ---
Jun. 30, 2023
Summary of Significant Accounting Policies |
Summary of Significant Accounting Policies | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1.Summary of Significant Accounting Policies Organization and Basis of Presentation Edison International is the ultimate parent holding company of Southern California Edison Company ("SCE") and Edison Energy, LLC ("Edison Energy"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of Southern California. Edison Energy is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Edison Energy's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE, its controlled subsidiaries and a variable interest entity, SCE Recovery Funding LLC., of which SCE is the primary beneficiary. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2022 Form 10-K. In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the interim periods presented are not necessarily indicative of the operating results for the full year. The December 31, 2022 financial statement data was derived from the audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements. Certain prior period amounts have been conformed to the current period's presentation, including the separate presentation of common stock and preference stock dividends in SCE's consolidated statements of cash flows. Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Edison International | ​ | SCE
​ | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | December 31,
(in millions) |  | 2023 |  | 2022 | ​ | 2023 |  | 2022
Money market funds | ​ | $ | 123 | ​ | $ | 784 | ​ | $ | 5 | ​ | $ | 647
​ Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, |  | December 31,
(in millions) |  | 2023 |  | 2022
Edison International: | ​ |  | ​ | ​ |  | ​
Cash and cash equivalents | ​ | $ | 195 | ​ | $ | 914
Short-term restricted cash1 | ​ |  | 3 | ​ |  | 3
Total cash, cash equivalents and restricted cash | ​ | $ | 198 | ​ | $ | 917
1 | Reflected in "Other current assets" on Edison International's consolidated balance sheets.
Allowance for Uncollectible Accounts The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. The following table sets forth the changes in allowance for uncollectible accounts for SCE: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended | ​ | ​ | Three months ended
​ | ​ | June 30, 2023 | ​ | ​ | June 30, 2022
(in millions) | ​ | Customers | ​ | All others | ​ | Total | ​ | ​ | Customers | ​ | All others | ​ | Total
Beginning balance | ​ | $ | 326 |  | $ | 18 | ​ | $ | 344 | ​ | ​ | $ | 337 |  | $ | 16 | ​ | $ | 353
Current period provision for uncollectible accounts2 | ​ | ​ | 20 | ​ | ​ | 1 | ​ | ​ | 21 | ​ | ​ | ​ | 37 | ​ | ​ | 2 | ​ | ​ | 39
Write-offs, net of recoveries | ​ |  | (20) | ​ | ​ | (2) | ​ |  | (22) | ​ | ​ |  | (10) | ​ |  | (1) | ​ |  | (11)
Ending balance | ​ | $ | 326 |  | $ | 17 | ​ | $ | 343 | 1 | ​ | $ | 364 |  | $ | 17 | ​ | $ | 381
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six months ended | ​ | ​ | Six months ended
​ | ​ | June 30, 2023 | ​ | ​ | June 30, 2022
(in millions) | ​ | Customers | ​ | All others | ​ | Total | ​ | ​ | Customers | ​ | All others | ​ | Total
Beginning balance | ​ | $ | 334 |  | $ | 20 | ​ | $ | 354 | 1 | ​ | $ | 293 |  | $ | 16 | ​ | $ | 309
Current period provision for uncollectible accounts3 | ​ | ​ | 40 | ​ | ​ | 1 | ​ | ​ | 41 | ​ | ​ | ​ | 91 | ​ | ​ | 9 | ​ | ​ | 100
Write-offs, net of recoveries | ​ |  | (48) | ​ | ​ | (4) | ​ |  | (52) | ​ | ​ | ​ | (20) | ​ | ​ | (8) | ​ | ​ | (28)
Ending balance | ​ | $ | 326 |  | $ | 17 | ​ | $ | 343 | 1 | ​ | $ | 364 |  | $ | 17 | ​ | $ | 381
1 | Approximately $8 million and $7 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively.
2 | This includes $13 million and $17 million of incremental costs, for the three months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets.
3 | This includes $27 million and $58 million of incremental costs, for the six months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets.
Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 13 for further information. EPS attributable to Edison International common shareholders was computed as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended June 30, |  | Six months ended June 30,
(in millions, except per-share amounts) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Basic earnings per share: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income attributable to common shareholders | ​ | $ | 354 | ​ | $ | 241 | ​ | $ | 664 | ​ | $ | 325
Net income available to common shareholders | ​ | $ | 354 | ​ | $ | 241 | ​ | $ | 664 | ​ | $ | 325
Weighted average common shares outstanding | ​ |  | 383 | ​ |  | 381 | ​ |  | 383 | ​ | ​ | 381
Basic earnings per share | ​ | $ | 0.92 | ​ | $ | 0.63 | ​ | $ | 1.73 | ​ | $ | 0.85
Diluted earnings per share: | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​
Net income attributable to common shareholders | ​ | $ | 354 | ​ | $ | 241 | ​ | $ | 664 | ​ | $ | 325
Net income available to common shareholders | ​ | $ | 354 | ​ | $ | 241 | ​ | $ | 664 | ​ | $ | 325
Income impact of assumed conversions | ​ |  | — | ​ |  | — | ​ |  | 1 | ​ | ​ | —
Net income available to common shareholders and assumed conversions | ​ | $ | 354 | ​ | $ | 241 | ​ | $ | 665 | ​ | $ | 325
Weighted average common shares outstanding | ​ |  | 383 | ​ |  | 381 | ​ |  | 383 | ​ | ​ | 381
Incremental shares from assumed conversions | ​ |  | 2 | ​ |  | 2 | ​ |  | 2 | ​ | ​ | 1
Adjusted weighted average shares – diluted | ​ |  | 385 | ​ |  | 383 | ​ |  | 385 | ​ | ​ | 382
Diluted earnings per share | ​ | $ | 0.92 | ​ | $ | 0.63 | ​ | $ | 1.73 | ​ | $ | 0.85
​ In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 2,046,312 and 3,990,270 shares of common stock for the three months ended June 30, 2023 and 2022, respectively, and 3,230,213 and 5,261,914 shares of common stock for the six months ended June 30, 2023 and 2022, respectively were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Revenue Recognition Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. Regulatory Proceedings FERC 2023 Formula Rate Update In November 2022, SCE filed its 2023 annual update with the FERC with the proposed rates effective January 1, 2023, subject to settlement procedures and refund. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in the first six months of 2023 based on the FERC 2023 annual update rate, subject to refund. Edison Carrier Solutions SCE operates commercial telecommunications service under the name of Edison Carrier Solutions ("ECS"), leveraging the temporarily available capacity of SCE's telecommunications network. As technology evolves, management is implementing strategic shifts in ECS services, including potential disposition of assets and ceasing to offer certain wire data services. ECS has notified affected customers of its intent to discontinue certain services over time and gave customers the option to discontinue those services. As a result of customer cancellations in the quarter ended June 30, 2023, materials and supplies inventory supporting data services are expected to be sold instead of placed into service and have been written-down to net realizable value, resulting in a charge of $13 million. Labor and other costs of $4 million previously recorded as construction work in progress for projects no longer probable of completion were also charged to expense in the period.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration