Edison International EIX · USD

RevenueThe following table is a summary of SCE's revenue:Years ended December 31,(in millions)202520242023Revenue from contracts with customers Commercial$8,215 $8,000 $7,333 Residential6,773 7,060 6,421 Other3,024 3,335 3,266 Total revenue from contracts with customer1,218,012 18,395 17,020 Alternative revenue program and other31,264 (848)(745)Total operating revenue$19,276 $17,547 $16,275 1SCE recorded CPUC revenue based on annual revenue requirement set by a methodology established in the GRC proceedings and FERC revenue authorized through a formula rate. For further information, see Note 1.2At December 31, 2025 and 2024, SCE's receivables related to contracts from customers were $2.7 billion and $2.9 billion, which included accrued unbilled revenue of $1,236 million and $845 million, respectively.3Includes differences between revenues from contracts with customers and authorized levels for certain CPUC and FERC revenues.Deferred RevenueAs of December 31, 2025, SCE has deferred revenue of $341 million related to the sale of the use of transfer capability of West of Devers transmission line, of which $13 million and $328 million are included in "Other current liabilities" and "Other deferred credits and other long-term liabilities," respectively, on SCE's consolidated balance sheets. The deferred revenue is amortized straight-line over a period of 30 years starting 2021.

Commitments and ContingenciesPower Purchase AgreementsSCE entered into various agreements to purchase power, electric capacity and other energy products. At December 31, 2025, the undiscounted future expected minimum payments for the SCE PPAs (primarily related to renewable energy contracts), which were approved by the CPUC and met other critical contract provisions (including completion of major milestones for construction), were as follows:(in millions)Total2026$3,244 20273,098 20282,603 20292,604 20302,550 Thereafter15,709 Total future commitments1 $29,808 1Certain power purchase agreements are treated as operating leases. For further discussion, see Note 13. Additionally, as of December 31, 2025, SCE has executed contracts that have not met the critical contract provisions that would increase contractual obligations by $44 million in 2026, $172 million in 2027, $368 million in 2028, $534 million in 2029, $597 million in 2030, and $7,237 million thereafter, if all critical contract provisions are completed. Costs incurred for PPAs were $4.0 billion in 2025, $4.0 billion in 2024 and $4.5 billion in 2023, which include costs associated with contracts with terms of less than one year.Other CommitmentsThe following summarizes the estimated minimum future commitments for SCE's other commitments:(in millions)20262027202820292030ThereafterTotalOther contractual obligations$74$73$68$56$34$133$438Costs incurred for other commitments were $65 million in 2025, $65 million in 2024 and $60 million in 2023. Other commitments include fuel supply contracts for Palo Verde which require payment only if the fuel is made available for purchase. Also included are commitments related to maintaining reliability and expanding SCE's transmission and distribution system.The table above does not include asset retirement obligations, which are discussed in Note 1.IndemnitiesEdison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, indemnities for specified environmental liabilities and income taxes or other contractual arrangements. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties.

Note 5. Debt and Credit AgreementsLong-Term DebtThe following table summarizes long-term debt (rates and terms are as of December 31, 2025) of Edison International and SCE:December 31,(in millions)20252024Edison International Parent:Debentures and notes:2027 – 2054 (4.125% to 8.125%)$4,850 $5,100 Current portion of long-term debt— (800)Unamortized debt discount/premium and issuance costs, net(35)(32)Total Edison International Parent4,815 4,268 SCE:First and refunding mortgage bonds:2026 – 2055 (1.20% to 6.20%)29,200 27,400 Pollution-control bonds:2028 – 2035 (1.45% to 4.50%)752 752 Debentures and notes:2029 – 2053 (5.06% to 6.65%)306 306 Senior secured recovery bonds1:2028 – 2050 (0.86% to 5.54%)3,126 1,532 Other long-term debt2— 706 Current portion of long-term debt(1,928)(1,249)Unamortized debt discount/premium and issuance costs, net(201)(181)Total SCE31,255 29,266 Total Edison International$36,070 $33,534 1The senior secured recovery bonds are payable only from and secured by the Recovery Property at SCE Recovery Funding LLC, and do not constitute a debt or other legal obligation of, or interest in, SCE or any of its affiliates, except for SCE Recovery Funding LLC. For further details, see Note 3.2Subsequent to December 31, 2024, SCE issued first and refunding mortgage bonds which were used to partially pay down its commercial paper balance. As a result, SCE included the paydown amount of $706 million in other long-term debt at December 31, 2024.Edison International and SCE long-term debt maturities over the next five years are as follows:(in millions)Edison InternationalSCE2026$1,928 $1,928 20272,538 1,938 20282,981 1,831 20293,404 2,354 20302,048 1,498 Senior Secured Recovery BondsIn December 2025, SCE Recovery Funding LLC issued $1.6 billion of Senior Secured Recovery Bonds, Series 2025-A, in three tranches ("Recovery Bonds") consisting of: $443 million, 4.45% with final maturity in 2038; $600 million, 5.34% with final maturity in 2047; and $600 million, 5.54% with final maturity in 2052. SCE used the proceeds it received from the sale of Recovery Property to reimburse itself for costs approved for recovery under the TKM Settlement Agreement. For further details, see Note 3.Liens and Security InterestsAlmost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies.

Income TaxesCurrent and Deferred TaxesThe components of income tax expense (benefit) by location of taxing jurisdiction are:Edison InternationalSCEYears ended December 31,(in millions)202520242023202520242023Current:Federal$— $1 $— $28 $3 $— State83 7 — 99 48 5 83 8 — 127 51 5 Deferred:Federal925 59 101976 118 149 State308 (50)7 337 (49)30 1,233 9 1081,313 69 179 Tax Credits(25)——(25)——Total$1,291 $17 $108$1,415 $120 $184 The components of net accumulated deferred income tax liability are:Edison InternationalSCEDecember 31,(in millions)2025202420252024Deferred tax assets:Property$1,005 $943 $992 $929 Wildfire-related1339 254 336 251 Nuclear decommissioning trust assets in excess of nuclear ARO liability455 373 455 373 Loss and credit carryforwards23,246 3,703 1,702 2,242 Regulatory balances600 610 600 610 Pension and postretirement benefits other than pensions, net115 117 21 21 Leases331 335 331 335 Other199 177 188 167 Sub-total6,290 6,512 4,625 4,928 Less: valuation allowance314 17 — — Total6,276 6,495 4,625 4,928 Deferred tax liabilities:Property11,618 11,220 11,598 11,202 Regulatory balances2,551 1,299 2,551 1,299 Nuclear decommissioning trust assets455 373 455 373 Leases331 335 331 335 Other195 187 162 155 Total15,150 13,414 15,097 13,364 Accumulated deferred income tax liability, net4$8,874 $6,919 $10,472 $8,436 1Relates to estimated losses accrual for wildfire-related claims, net of expected insurance and regulatory recoveries, and contributions to the Wildfire Fund. For further information, see Note 12 and Note 1.2As of December 31, 2025, unrecognized tax benefits of $404 million and $326 million for Edison International and SCE, respectively, are presented net against the deferred tax asset for the loss and tax credit carryforwards. As of December 31, 2024, the unrecognized tax benefits netted against deferred tax assets and tax credit carryforwards were $397 million and $327 million for Edison International and SCE, respectively.3As of December 31, 2025 and 2024, Edison International has recorded $14 million and $17 million valuation allowance on deferred tax assets. The valuation allowance is related to non-California state net operating loss carryforwards which are expected to expire before being utilized. 4Included in "Deferred income taxes and credits" on the consolidated balance sheets.

LeasesLeases as LesseeSCE 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 lease contracts included in the table below are primarily 15 to 20 years for PPA leases, 3 to 72 years for office leases, and 5 to 13 years for the remaining other operating leases. Finance leases are immaterial to the periods presented.The following table summarizes SCE's future lease payments for operating leases as of December 31, 2025:(in millions)PPA Operating LeasesOther Operating Leases12026$94 $72 202788 67 202887 61 202989 54 203089 43 Thereafter629 98 Total lease payments1,076 395 Amount representing interest237 79 Lease liabilities$839 $316 1Excludes 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.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 PPA operating leases. The following table summarizes the components of SCE's lease expense:Years ended December 31,(in millions)202520242023PPA leases:Operating lease cost$108 $115 $503 Variable lease cost11,702 1,700 2,277 Total PPA lease cost1,810 1,815 2,780 Other operating leases cost75 64 56 Total lease cost$1,885 $1,879 $2,836 1Includes lease costs from legacy 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:Years ended December 31,(in millions, except lease term and discount rate)202520242023Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from:PPA operating leases$108 $115 $503 Other operating leases72 62 55 ROU assets obtained in exchange for lease obligations:PPA operating leases$30 $11 $226 Other operating leases83 79 69 Weighted average remaining lease term (in years):PPA operating leases11.6512.5013.37Other operating leases8.318.869.56Weighted average discount rate:PPA operating leases4.34%4.30%4.30%Other operating leases4.77%4.50%4.22%Leases as LessorSCE also enters into operating leases to rent certain land and facilities as a lessor.

Risk Management, Strategy and Oversight SCE assesses and monitors cybersecurity risks to current infrastructure, new projects, and third parties, including vendors. SCE maintains incident response plans, utilizes cybersecurity incident response exercises, performs targeted audits, leverages third party assessments and uses the National Institute of Standards and Technology ("NIST") Cybersecurity Framework ("CSF") as a guideline to identify, evaluate and manage material risks from cybersecurity threats. SCE also engages consultants, and coordinates with the Federal government and industry peers, to assist in identifying, evaluating and managing its cybersecurity risks, and uses contractual terms to establish cybersecurity requirements with certain third parties. Identified cybersecurity risks are documented and presented to management to review and advise on cybersecurity strategies and mitigation measures. Based on management reviews, cybersecurity strategies and remediation plans are developed or adjusted to address pertinent risks. Edison International and SCE leverage training, policies, technical and procedural controls, and mitigation plans to address risks from cybersecurity threats.Management has established a cybersecurity oversight group comprised of a multidisciplinary senior management team, including its Vice President of Enterprise Risk Management, to monitor and provide strategic direction for the prevention, detection, mitigation, and remediation of risks from cybersecurity threats. A Boards of Directors’ liaison regularly attends meetings of the cybersecurity oversight group and provides reports to the Safety and Operations Committees of the Boards of Directors. Other members of the Boards of Directors are invited to attend meetings and typically attend at least one meeting annually. The Edison International and SCE Audit and Finance Committees of the Boards of Directors oversee enterprise risk management, including risks from cybersecurity threats. Annually, Edison International and SCE’s enterprise risk management team conducts a review of enterprise risks, including risks from cybersecurity threats, and presents the results of its review to management and the Audit and Finance Committees.

EquityCommon StockStock Repurchase ProgramsThe Edison International Board of Directors authorizes stock repurchase programs to repurchase common stock. These programs are intended to offset dilution from common stock issued under Edison International's long-term incentive compensation programs and are funded using Edison International's working capital. The timing and the amount of any repurchased common stock will be determined by Edison International's management based on their evaluation of market conditions and other factors. Repurchases may be executed through various methods, including open market purchases, privately negotiated transactions, and other transactions in accordance with applicable securities laws. Any repurchased shares of common stock will be retired. The programs do not obligate Edison International to acquire any particular amount of common stock, and may be suspended or discontinued at any time at its discretion.In December 2025, the Edison International Board of Directors authorized a program that provides for the repurchase of up to $70 million of common stock from February 20, 2026 to March 2, 2027.In July 2024, the Edison International Board of Directors authorized a program for repurchase of up to $200 million of its common stock until December 2025 (the "2024 Share Repurchase Program"). By December 2024, no authorized repurchase amount remained under the 2024 Share Repurchase Program. In December 2024, the Edison International Board of Directors authorized a program for repurchase of up to $75 million of its common stock from February 2025 until February 2026 (the "2025 Share Repurchase Program").During the years ended December 31, 2025 and 2024, Edison International repurchased and retired 550,999 and 2,412,203 shares, respectively. As of December 31, 2025, $43 million of common stock remained for repurchase under the 2025 Share Repurchase Program.Preferred StockAs of December 31, 2025, Edison International had 414,342 shares of 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") and 87,937 shares of 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock") outstanding, each with a liquidation value of $1,000 per share. The dividends are payable on a semi-annual basis. Beginning March 15, 2026, the dividend rate for Series A Preferred Stock will reset every five years to equal the then-current five-year U.S.

InvestmentsNuclear Decommissioning TrustsFuture decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion on fair value of the trust investments):Amortized CostsFair Values(in millions)Longest Maturity DatesDecember 31,2025December 31,2024December 31,2025December 31,2024Municipal bonds2067$718 $729 $899 $860 Government and agency securities20741,149 1,201 1,367 1,341 Corporate bonds2072315 346 380 392 Short-term investments and receivables/payables1One-year200 152 (20)62 Total debt securities and other2,382 2,428 2,626 2,655 Equity securities1,909 1,631 Total2$4,535 $4,286 1As of December 31, 2025 and 2024, short-term investments included $27 million and $18 million of repurchase agreement payable by financial institutions which earned interest, were fully secured by U.S. Treasury securities, and mature by January 2, 2026 and January 2, 2025, respectively.2Represents amounts before reduction for deferred tax liabilities on net unrealized gains of $455 million and $373 million as of December 31, 2025 and 2024, respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $2.0 billion and $1.7 billion at December 31, 2025 and 2024, respectively.The following table summarizes the gains and losses for the trust investments:Years ended December 31,(in millions)202520242023Gross realized gains$89 $326 $323 Gross realized losses(14)(24)(73)Net unrealized gains (losses) for equity securities256 (19)103 Due to regulatory mechanisms, changes in the assets of the trusts from income or loss items do not materially affect earnings.