Edison International is the ultimate parent holding company of SCE and Edison Energy, LLC, doing business as Trio. 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 across Southern, Central, and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial, and institutional customers. Trio's business activities are currently not material to report as a separate business segment, and SCE is the single reportable segment. See "Segment Information" below for further discussion.

These combined notes to the condensed consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's condensed 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 condensed 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 condensed consolidated financial statements.

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 condensed 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.

For information on Edison International's and SCE's segment information, see Note 1 in the 2024 Form 10-K. In addition, for the three and nine months ended September 30, 2025 and 2024, Edison International's and SCE's significant segment expenses agree to those disclosed in the condensed consolidated statements of income. As of September 30, 2025 and 2024, the measures of Edison International's and SCE's segment assets are reported on Edison International's and SCE's condensed consolidated balance sheets, respectively, as total assets.


	Edison International				SCE
(in millions)	September 30, 2025		December 31, 2024		September 30, 2025		December 31, 2024
Cash and cash equivalents1	$	364	$	193	$	305	$	78
Short-term restricted cash2	92		40		88		36
Long-term restricted cash3	441		451		441		451
Total cash, cash equivalents and restricted cash	$	897	$	684	$	834	$	565

2Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and cash collected for customer-funded wildfire self-insurance related to the Eaton Subrogation Settlement (see Note 12 for further information). Both are reflected in "Other current assets" on Edison International's and SCE's condensed consolidated balance sheets.

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 which 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 increase in the provision of uncollectible accounts and write-offs for the three and nine months ended September 30, 2025, is driven primarily by consumer protection programs that limit disconnections for nonpayment.


	Three months ended September 30, 2025						Three months ended September 30, 2024
(in millions)	Customers		All others		Total3		Customers		All others		Total
Beginning balance	$	335	$	22	$	357	$	349	$	15	$	364
Current period provision for uncollectible accounts1	96		1		97		90		—		90
Write-offs, net of recoveries	(89)		(3)		(92)		(75)		(3)		(78)
Ending balance	$	342	$	20	$	362	$	364	$	12	$	376

	Nine months ended September 30, 2025						Nine months ended September 30, 2024
(in millions)	Customers		All others		Total3		Customers		All others		Total
Beginning balance	$	372	$	18	$	390	$	347	$	17	$	364
Current period provision for uncollectible accounts2	256		10		266		204		4		208
Write-offs, net of recoveries	(286)		(8)		(294)		(187)		(9)		(196)
Ending balance	$	342	$	20	$	362	$	364	$	12	$	376

The administrator of the Wildfire Insurance Fund will determine, on or before December 31, 2028, whether contributions to the Continuation Account are required, based on either of the following conditions: (a) the fund administrator projects that the original Wildfire Insurance Fund will be depleted within three years, or (b) a participating IOU notifies the fund administrator that it anticipates more than $1 billion in eligible claims in a single coverage year for one or more wildfires that ignite after the SB 254 Effective Date. If the fund administrator determines contributions are required, the CPUC will extend the non-bypassable charge imposed under AB 1054 until January 1, 2046 to collect customer contributions for the Continuation Account of $9 billion, and the IOUs will be required to contribute an initial aggregate amount of $5.1 billion (SCE's share is $2.4 billion) over the period 2029 through 2045. Additionally, if the fund administrator determines that additional contribution from IOUs are needed to enable the Continuation Account to fund the timely payment of eligible claims due to the likelihood of exhaustion of the fund, the fund administrator may require an additional aggregate contribution from the IOUs of $3.9 billion (the "Contingent Contribution" and SCE's share is $1.9 billion). If the administrator terminates the Continuation Account prior to the final installment of the Contingent Contribution, one-half of the remaining unpaid installment payments will be credited to customer rates.

As of September 30, 2025, and as of the date of this filing, the conditions required to trigger IOU contributions to the Continuation Account have not been met. Accordingly, SCE has not recorded a contribution obligation associated with the Continuation Account on its condensed consolidated balance sheets as of September 30, 2025.

The Wildfire Insurance Fund does not have a defined life and instead will terminate when the fund administrator determines that the fund has been exhausted. SCE estimates the period of coverage of the fund and amortizes contributions made to the Wildfire Insurance Fund ratably over the period of coverage similar to prepaid insurance. Estimating the period of coverage of the fund requires significant judgment. Frequency of wildfire events and estimated costs associated with wildfire events caused by participating utilities are among the significant factors used to estimate the fund's period of coverage.

SCE reassesses the period of coverage of the fund at least annually in the first quarter each year and when new or additional information becomes available. As of the date of this filing, SCE does not have new or additional information that would enable it to change its prior assessment that the Wildfire Insurance Fund would provide coverage for an estimated 20 years from the date SCE committed to participate in the Wildfire Insurance Fund. When updating its estimate, SCE includes all its fires for which losses can be reasonably estimated, and relies on publicly disclosed wildfire-related losses related to other participating utilities. As discussed in Note 12, while SCE believes that it will incur material losses in connection with the Eaton Fire, it is currently unable to reasonably estimate a range of losses that may be incurred. The Wildfire Insurance Fund amortization period will be evaluated and adjusted as new or additional information on contributions and wildfire events, including reasonably estimated losses related to the Eaton Fire, becomes available. As of September 30, 2025, the Wildfire Insurance Fund does not have any contribution associated with the Continuation Account.

Edison International and SCE adjust the period of coverage on a prospective basis and amortize the Wildfire Insurance Fund contribution asset ratably over the remaining estimated life of the fund. An impairment will be recorded to the Wildfire Insurance Fund contribution asset, if the asset exceeds SCE's ability to benefit from the remaining coverage provided by the Wildfire Insurance Fund.

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.


	Three months ended September 30,				Nine months ended September 30,
(in millions, except per-share amounts)	2025		2024		2025		2024
Basic earnings per share:
Net income available to Edison International common shareholders	$	832	$	516	$	2,611	$	944
Earnings allocated to participating securities	—		—		(1)		—
Income available to common shareholders	$	832	$	516	$	2,610	$	944
Weighted average common shares outstanding	385		387		385		386
Basic earnings per share	$	2.16	$	1.33	$	6.78	$	2.45
Diluted earnings per share:
Income available to common shareholders	$	832	$	516	$	2,610	$	944
Add back: Earnings allocated to participating securities	—		—		1		1
Net income available to Edison International common shareholders	$	832	$	516	$	2,611	$	945
Weighted average common shares outstanding	385		387		385		386
Effect of dilutive securities	1		3		1		2
Adjusted weighted average shares – diluted	386		390		386		388
Diluted earnings per share	$	2.16	$	1.32	$	6.76	$	2.44

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 9,956,033 and 20,371 shares of common stock for the three months ended September 30, 2025 and 2024, respectively, 9,346,533 and 2,040,879 shares of common stock for the nine months ended September 30, 2025 and 2024, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.

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.

SCE accounts for regulatory decisions in the period in which they are received and, accordingly, recorded the impact of the 2025 GRC final decision in the third quarter of 2025. In the absence of a final GRC decision, SCE recognized revenue in the first and second quarters of 2025 based on the 2024 authorized revenue requirement. The final decision received in September 2025 authorized a base revenue requirement of $9.7 billion for 2025, an increase of $1.1 billion over the revenue requirements authorized for 2024. The CPUC has approved the establishment of a memorandum account, making the authorized revenue requirement changes effective January 1, 2025. Under the final decision, the increase in authorized revenues of $902 million for January 2025 through September 2025 will be collected over a 24-month period beginning October 1, 2025.

In November 2024, SCE filed its 2025 annual transmission revenue requirement update with the FERC, with rates effective January 1, 2025. The update reflects a 2025 transmission revenue requirement of $1.3 billion, which is a $220 million, or 20%, increase from the 2024 annual revenue requirement. The lower revenue in 2024 was due to a return of prior year

In December 2023, the FASB issued an accounting standards update requiring additional disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosures related to uncertain tax positions and unrecognized deferred tax liabilities. Edison International and SCE will apply this standard beginning in their annual filing for the year ended December 31, 2025, and the standard is not expected to materially affect the annual disclosures.

In November 2024, the FASB issued an accounting standards update requiring public entities to provide disaggregated disclosure of income statement expenses. The guidance does not change the expense captions an entity presents on the face of the income statement, rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The guidance is effective for annual disclosure for the year ended December 31, 2027 and subsequent interim periods with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance.

In July 2025, the FASB issued an accounting standards update allowing entities to elect a practical expedient when developing forecasts as part of estimating the expected credit losses on current accounts receivable and current contract assets. The practical expedient permits entities to assume that current conditions as of the balance sheet date do not change for the remaining life of such assets. The guidance is effective for annual periods after January 1, 2026 and interim reporting periods within those annual reporting periods with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of this guidance.

In September 2025, the FASB issued an accounting standards update to amend certain aspects of the accounting for and disclosure of internal-use software. Among other things, the guidance removes all references to prescriptive and sequential software development stages and instead requires entities to begin capitalizing software costs when certain criteria are met. The guidance is effective for annual periods after January 1, 2028 and interim reporting periods within those annual reporting periods with early adoption permitted. The guidance can be applied prospectively, retrospectively, or via a modified prospective transition method. Edison International and SCE are currently evaluating the impact of this new guidance.