EDISON INTERNATIONALEIX

EDISON INTERNATIONAL PP&E Disclosure

10-KFiled Feb 27, 20202 min read
Property, Plant and Equipment
SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following:
 
December 31,
(in millions)
2019
 
2018
Distribution
$
26,929

 
$
25,026

Transmission
14,720

 
13,800

Generation
3,664

 
3,598

General plant and other
4,583

 
4,398

Accumulated depreciation
(9,958
)
 
(9,566
)
 
39,938

 
37,256

Construction work in progress
4,131

 
3,883

Nuclear fuel, at amortized cost
129

 
130

Total utility property, plant and equipment
$
44,198

 
$
41,269


Capitalized Software Costs
SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over the expected lives of the software, primarily ranging from 5 to 7 years and commencing upon operational use. Capitalized software costs, included in general plant and other above, were $1.0 billion and $1.0 billion at December 31, 2019 and 2018, respectively, and accumulated amortization was $0.4 billion and $0.5 billion, at December 31, 2019 and 2018, respectively. Amortization expense for capitalized software was $190 million, $198 million and $233 million in 2019, 2018 and 2017, respectively. At December 31, 2019, amortization expense is estimated to be $191 million, $163 million, $116 million, $76 million and $27 million for 2020 through 2024, respectively.
Jointly Owned Utility Projects
SCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income.
The following is SCE's investment in each asset as of December 31, 2019:
(in millions)
Plant in Service
Construction Work in Progress
Accumulated
Depreciation
Nuclear Fuel
(at amortized cost)
Net Book Value
Ownership
Interest
Transmission systems:
 
 
 
 
 
 
Eldorado
$
257

$
94

$
35

$
—

$
316

80
%
Pacific Intertie
248

80

72

—

256

50
%
Generating station:
 
 
 
 
 
 
Palo Verde (nuclear)
2,065

61

1,586

129

669

16
%
Total
$
2,570

$
235

$
1,693

$
129

$
1,241

 

In addition, SCE has ownership interests in jointly owned power poles with other companies.

Historical Timeline

Fiscal YearFiled
2019Feb 27, 2020Showing above
2018Feb 28, 2019
2017Feb 22, 2018
2016Feb 21, 2017
2015Feb 23, 2016

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.

Other Available Disclosures

Income TaxesRevenueFair ValueLeasesDebtCommitmentsNew Standards