eix11k0610
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
__________
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK
PURCHASE, SAVINGS AND SIMILAR PLANS
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
|X|ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from ______________ to ______________
Commission File Number 1-9936
EDISON 401(K) SAVINGS PLAN
(Full Title of the Plan)
EDISON INTERNATIONAL
(Name of Issuer)
2244 Walnut Grove Avenue (P.O. Box 976), Rosemead, California 91770
(Address of principal executive office)
Edison 401(k)
Savings Plan
Financial Statements and
Supplemental Schedule
As of December 31, 2009 and 2008 and
for the Year Ended December 31, 2009
Edison 401(k)Savings Plan
Contents
Page 2
Report of Independent Registered Public Accounting Firm 3
Financial Statements
Statements of Net Assets Available for Plan Benefits as of
December 31, 2009 and 2008 4
Statement of Changes in Net Assets Available for Plan Benefits
for the Year Ended December 31, 2009 5
Notes to Financial Statements 6 - 19
Supplemental Schedule
Schedule I: Form 5500 - Schedule H - Line 4i -
Schedule of Assets (Held at End of Year) as of
December 31, 2009 20 - 22
Consent of Independent Registered Public Accounting Firm 23
Note: All schedules other than that listed above have been
omitted since the information is either disclosed elsewhere
in the financial statements or not required by 29 CFR
2520.103-10 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, as amended.
Page 3
Report of Independent Registered Public Accounting Firm
Southern California Edison Company
Benefits Committee
Edison 401(k) Savings Plan
Rosemead, California
We have audited the accompanying statements of net assets available for plan
benefits of the Edison 401(k) Savings Plan (the "Plan") as of December 31,
2009 and 2008 and the related statement of changes in net assets available
for plan benefits for the year ended December 31, 2009. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The Plan
is not required to have, nor were we engaged to perform, an audit of its
internal controls over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Plan's
internal control over financial reporting. Accordingly we express no such
opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits as of
December 31, 2009 and 2008, and the changes in net assets available for plan
benefits for the year ended December 31, 2009 in conformity with accounting
principles generally accepted in the United States of America.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets
(held at end of year) as of December 31, 2009 is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedule has been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ BDO Seidman, LLP
-----------------------
BDO Seidman, LLP
Costa Mesa, California
June 24, 2010
Edison 401(k) Savings Plan
Statements of Net Assets Available for Plan Benefits
Page 4
December 31, 2009 2008
-------------------------------------------------------------------------------
(in 000's)
Assets
Cash $ 2,382 $ 868
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Investments, at fair value 3,323,968 2,742,470
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Receivables
Dividends receivable 7,946 7,338
Interest receivable 122 653
Profit sharing receivable 3,513 2,821
Receivable from brokers 2,268 5,118
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total receivables 13,849 15,930
-------------------------------------------------------------------------------
Total assets 3,340,199 2,759,268
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Liabilities
Payable to brokers and others 9,296 10,226
-------------------------------------------------------------------------------
Total liabilities 9,296 10,226
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net assets available for plan benefits $ 3,330,903 $ 2,749,042
-------------------------------------------------------------------------------
See accompanying notes to financial statements.
Edison 401(k) Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Page 5
Year ended December 31, 2009
-------------------------------------------------------------------------------
(in 000's)
Additions
Net investment income
Dividends $ 52,833
Interest 8,975
Net appreciation in fair value of investments 432,758
-------------------------------------------------------------------------------
494,566
Less: Management fees 612
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net investment income 493,954
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Contributions
Employer contributions, net of forfeitures 83,529
Participant and rollover contributions 156,363
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total net contributions 239,892
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total additions 733,846
-------------------------------------------------------------------------------
Deductions
Distributions to participants 151,967
Loans in default 18
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total deductions 151,985
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net increase 581,861
Net assets available for plan benefits
Beginning of year 2,749,042
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
End of year $ 3,330,903
-------------------------------------------------------------------------------
See accompanying notes to financial statements.
Edison 401(k) Savings Plan
Notes to Financial Statements
Page 6
1. Plan Description The following description of the Edison 401(k) Savings
Plan (the "Plan"), provides only general information. The
Plan sponsor is the Southern California Edison Company
(the "Plan Sponsor"). Participants should refer to the
summary plan description and Plan document, as amended,
for a more complete description of the Plan's provisions.
Nature of Plan
Eligibility
The Plan is a defined-contribution plan with a 401(k)
feature, in which qualifying full-time and part-time
employees of Edison International (the "Company") and many
of its subsidiary companies are eligible to participate.
The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), as
amended. An employee, as defined by the Plan document, is
eligible to participate in the Plan immediately upon
employment.
Contributions
Subject to statutory limits, all participants may defer up
to 84 percent of eligible pay. Participating employers
provide matching contributions up to 6.0 percent of a
participant's eligible pay. Employees who attain age fifty
before the close of a Plan year are allowed to make
catch-up contributions subject to IRS limitations. The
Plan was amended effective January 1, 2009 to provide that
most participants may designate certain contributions
under the Plan as Roth elective deferrals, and make and
receive Roth rollovers. Certain participating subsidiaries
also provide a fixed profit sharing contribution of 3.0
percent of eligible pay each pay period and a variable
profit sharing contribution annually (if certain business
objectives are reached) to eligible employees. The Plan
also accepts rollover contributions from other qualified
plans.
Vesting
Participants immediately vest in their contributions plus
actual earnings thereon. Employer contributions plus
actual earnings thereon vest at a rate of 20 percent per
year. After five years of service or reaching age 65, all
existing and future employer contributions are fully
vested.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 7
1. Plan Description Forfeitures
(Continued)
At December 31, 2009, and 2008, the unused portion of
forfeited non-vested accounts totaled $7,595, and $6,256,
respectively. These accounts are used to reduce future
employer contributions. During 2009, employer
contributions were reduced by $882,145 from forfeited
non-vested accounts.
Plan Trust
Plan assets are held in trust with State Street Bank and
Trust Company (the "Trustee") for the benefit of
participants and their beneficiaries. The mutual
covenants to which the Plan Sponsor and the Trustee agree
are disclosed in the trust agreement between the Plan
Sponsor and the Trustee.
Plan Administration
The Plan is administered by the Southern California Edison
Company Benefits Committee (the "Plan Administrator").
Hewitt Associates LLC is the Plan's record keeper. As of
December 31, 2009 and 2008, the Plan provided investment
choices in 41 and 43 investment funds, respectively. The
Plan provides to participants a detailed description of
each investment fund choice and lists the respective
investment manager.
Administrative and Investment Expenses
The Plan Sponsor pays the cost of administering the Plan,
including fees and expenses of the Trustee and record
keeper. The fees, taxes and other expenses incurred by
the Trustee or investment managers in making investments
are paid out of the applicable investment funds. These
expenses also include brokerage fees for sales or
purchases of Edison International Common Stock on the open
market. No additional costs are incurred in connection
with sales of Edison International Common Stock within the
trust or the transfer of assets between funds.
Mutual funds pay fees to the Plan record keeper for
administrative services to participants that would
otherwise have to be provided by the mutual funds. The
majority of fees received by the Plan record keeper are
used to reduce the record keeping and communication
expenses of the Plan paid by the Plan Sponsor. See Note 7
for a discussion of party-in-interest transactions.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 8
1. Plan Description Participant Accounts
(Continued)
Each participant account is adjusted for the
participant's contribution, the employer's contribution,
if applicable, and allocations of investment
earnings/losses, and redemption fees, if applicable.
Allocation of earnings/losses is based on account
balances. The benefit to which a participant is entitled
is the benefit that can be provided from the vested
portion of the participant's account.
Participant Loans
Participants may borrow from their account, a minimum of
$1,000 to a maximum of $50,000, with certain
restrictions. Loan transactions are treated as a
transfer from (to) the investment fund to (from)
participant loans. Loan terms range from one to four
years for general purpose loans or up to 15 years for the
purchase of a primary residence. Loans bear interest at
prime rate plus one percent. Interest rates on
outstanding loans range from 4.25 percent to 10.5 percent
as of December 31, 2009 and mature on various dates
through November 2024. Principal and interest are paid
ratably through payroll deductions. Some separated
participants may repay loan obligations directly, rather
than through payroll deductions. Participant loans
amounted to approximately $83,350,000 and $73,260,000 as
of December 31, 2009, and 2008, respectively.
Distribution to Participants
Account balances are distributed as soon as practicable
after a participant dies, becomes entitled to a
distribution and requests a distribution, or terminates
employment with an account balance of $5,000 or less.
Participants may otherwise delay distribution, subject to
the minimum distribution requirements under Internal
Revenue Code Section 401(a)(9). The Plan was amended
effective 2010 to require most terminated participants to
receive their entire nonforfeitable account balance no
later than the end of the year in which they attain age
70-1/2. Prior to 2010, participants were allowed to
choose a lump sum, partial distribution or an installment
form of payment. The Plan was amended to eliminate
partial and installment distribution options for most
participants effective 2010. In-service withdrawals may be
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 9
1. Plan Description taken from after-tax contributions or for certain
(Continued) financial hardships. The Plan was amended in 2008, 2009,
and 2010 to allow additional in-service withdrawals for
most participants who have attained age 59-1/2.
Participants taking in-service withdrawals are required
to pay applicable taxes on the withdrawals and may be
subject to penalty taxes for early withdrawals taken
prior to age 59-1/2. Participants who terminate
employment with a vested account balance greater than
$1,000 but less than or equal to $5,000 will have their
vested account balance automatically rolled over to
individual retirement accounts ("IRA") selected by the
Chair or Secretary of the Plan Administrator, unless the
participants make a timely distribution election.
Profit Sharing
Certain non-represented employees of Edison Mission Group
Inc.'s ("EMG") participating subsidiaries are eligible
for two types of profit sharing contributions:
(i) Fixed profit sharing is comprised of a 3.0 percent
profit sharing contribution each pay period to the
Plan on behalf of eligible employees. Fixed profit
sharing contributions in 2009 amounted to
$2,779,328.
(ii) Variable profit sharing is comprised of an
additional annual profit sharing contribution to
the Plan on behalf of eligible employees if
certain business objectives are reached. Variable
profit sharing contributions made in 2010 and 2009
for the 2009 and 2008 plan years were 4.0% and
3.25% of eligible earnings for eligible EMG
employees for a total amount of $3,512,696 and
$2,820,832, respectively. Such amounts are
presented as "Profit sharing receivable" on the
Statements of Net Assets Available for Plan
Benefits as of December 31, 2009 and 2008,
respectively.
2. Summary Basis of Accounting
of Significant
Accounting The financial statements are presented on the accrual
Policies basis of accounting and in conformity with accounting
principles generally accepted in the United States of
America ("U.S.A.") applicable to employee benefit plans
and ERISA.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 10
2. Summary Use of Estimates
of Significant
Accounting The preparation of financial statements in conformity
Policies with accounting principles generally accepted in the
(Continued) U.S.A. requires management to make estimates and
assumptions that affect the reported amounts of assets,
liabilities, and changes therein, and disclosure of
contingent assets and liabilities. Actual results could
differ materially from those estimates.
New Accounting Pronouncements
As of December 31, 2009, the Plan adopted Financial
Accounting Standards Board ("FASB") Accounting Standards
Codification ("Codification") which became the single
source of authoritative non-governmental accounting
principles generally accepted in the United States of
America ("GAAP"), superseding various existing
authoritative accounting pronouncements. The Codification
establishes one level of authoritative GAAP. All other
literature is considered non-authoritative. There were no
changes to the Plan's financial statements due to the
implementation of the Codification other than changes in
reference to various authoritative accounting
pronouncements in the financial statements.
As of December 31, 2009, the Plan adopted FASB updated
guidance regarding fair value measurement of investments
in certain entities that calculate net asset value per
share (or its equivalent). This update applies to
investments that do not have a readily determinable fair
value and are held by an entity that is required to
report investments assets at fair value. This update
creates a practical expedient to measure the fair value
of such investments on the basis of the net asset value
per share (or its equivalent) and requires disclosures by
major category of the investments about the attributes of
investments, such as the nature of any restrictions on
the investor's ability to redeem its investments at the
measurement date, any unfunded commitments, and the
investment strategies of the investees. The adoption of
this update did not materially impact the Plan's
financial statements.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 11
2. Summary In January, 2010, the FASB issued updated guidance to
of Significant improve disclosures regarding the fair value
Accounting measurements. This update requires entities to (i)
Policies disclose separately the amounts of significant transfers
(Continued) in and out of Level 1 and Level 2 fair value measurements
and describe the reasons for the transfers and (ii)
present separately (i.e., on a gross basis rather than as
one net number), information about purchases, sales,
issuances, and settlements in the roll forward of changes
in Level 3 fair value measurements. The update requires
fair value disclosures by class of assets and liabilities
rather than by major category or line item in the
statement of financial position. Disclosures regarding
the valuation techniques and inputs used to measure fair
value for both recurring and nonrecurring fair value
measurements for assets and liabilities in both Level 2
and Level 3 are also required. For all portions of the
update except the gross presentation of activity in the
Level 3 roll forward, this standard is effective for
interim and annual reporting periods beginning after
December 15, 2009. For the gross presentation of activity
in the Level 3 roll forward, this guidance is effective
for fiscal years beginning after December 15, 2010. As
this guidance is only disclosure-related, it will not
have a material impact on the Plan's financial statements.
Risks and Uncertainties
The Plan's investment in Edison International Common
Stock amounted to approximately $843,338,000 and
$762,101,000 as of December 31, 2009, and 2008,
respectively. Such investments represented approximately
25 and 28 percent of the Plan's total net assets as of
December 31, 2009, and 2008, respectively. For risks and
uncertainties regarding investment in the Company's
common stock, participants should refer to the annual
report on Form 10-K for the period ended December 31,
2009, and the quarterly report on Form
10-Q for the period ended March 31, 2010, of Edison
International, and its affiliate entities listed below:
Southern California Edison Company
Edison Mission Energy
Midwest Generation, LLC
EME Homer City Generation L.P.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 12
2. Summary The Plan provides for various funds that hold investment
of Significant securities. Investment securities are exposed to
Accounting various risks such as interest rate, market, and credit
Policies risk. Due to the level of risk associated with certain
(Continued) investment securities and the level of uncertainty
related to changes in the value of investment
securities, it is at least reasonably possible that
changes in risk in the near term would materially affect
participants' account balances and the amounts reported
in Statements of Net Assets Available for Plan Benefits
and the Statement of Changes in Net Assets Available for
Plan Benefits.
The Plan participates in various investment options that
comprise securities of foreign companies, which involve
special risks and considerations not typically
associated with investing in U.S.A. companies. These
risks include devaluation of currencies, less reliable
information about issuers, different securities
transaction clearance and settlement practices, and
possible adverse political and economic developments.
Moreover, securities of many foreign companies and their
markets may be less liquid and their prices more
volatile than securities of comparable U.S.A. companies.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value or
estimated fair value. Investments in mutual funds
valued at quoted market prices represent units held by
the Plan at year end. Investments in the common
collective funds invest in premixed portfolios and
institutional funds (see Note 4). Investments in the
common collective funds are valued at net asset value of
shares held by the Plan at year-end. Edison
International Common Stock is valued at its quoted
market price at year-end. Participant loans are valued
at cost, which approximates fair value. Purchases and
sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date.
Participant loans that are in default as provided in the
Plan document, are treated as deemed distributions for
tax purposes and also reported as such in the Form
5500. Management has determined these loans in default
as uncollectible. For the year ended December 31, 2009,
$17,559 of participant loans in default were deemed to
be uncollectible and written-off. Such amount is
included as loans in default in the Statement of Changes
in Net Assets Available for Plan Benefits.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 13
2. Summary Net Appreciation (Depreciation) in Fair Value of
of Significant Investments
Accounting
Policies Realized and unrealized appreciation (depreciation) in
(Continued) the fair value of investments is based on the difference
between the fair value of the assets at the beginning of
the year, or at the time of purchase for assets
purchased during the year, and the related fair value on
the day investments are sold with respect to realized
appreciation (depreciation), or on the last day of the
year for unrealized appreciation (depreciation).
Distributions to Participants
Distributions to participants, other than loans, are
recorded when paid.
Fair Value Measurements
Financial assets and liabilities that are re-measured
and reported at fair value at each reporting period are
classified and disclosed on one of the following three
levels:
o Level 1 - Quoted prices in active markets for
identical assets.
o Level 2 - Inputs other than Level 1 that are
observable, either directly or indirectly, such as
quoted prices for similar assets; quoted prices in
markets that are not active; or other inputs that
are observable or can be corroborated by observable
market data for substantially the full term of the
assets or liabilities.
o Level 3 - Inputs that are unobservable for the
assets and that are significant to the fair value of
the assets.
Plan assets carried at fair value consist of the
following investments: Edison International Common
Stock, a money market fund, common/collective funds and
mutual funds. Edison International common stock and
mutual funds are classified as Level 1 as fair value is
determined by observable, unadjusted quoted market
prices in active or highly liquid and transparent
markets. Common/collective funds are valued at the net
asset value of shares held by the Plan. Although
common/collective funds and the money market fund fair
values are determined by observable prices, they are
classified as Level 2 because
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 14
2. Summary they trade in markets that are less active and
of Significant transparent. The fair value of the underlying
Accounting investments in equity mutual funds and equity
Policies common/collective funds are based upon stock-exchange
(Continued) prices. The fair value of the underlying investments in
fixed-income common/collective funds and fixed-income
mutual funds are based on evaluated prices that reflect
significant observable market information such as
reported trades, actual trade information of similar
securities, benchmark yields, broker/dealer quotes,
issuer spreads, bids, offers and relevant credit
information.
The following presents information about the Plan's
financial assets that are measured at fair value on a
recurring basis as of December 31, 2009, by level within
the fair value hierarchy (in thousands):
Level 1 Level 2 Level 3 Total
----------------------------------------------------------
----------------------------------------------------------
Equity Securities
Large Cap US(a) $ 105,480 $ 322,134 $ - $ 427,614
Mid Cap US 175,648 - - 175,648
Small Cap US 105,003 32,377 - 137,380
International(b) 313,714 - - 313,714
----------------------------------------------------------
----------------------------------------------------------
Total Equity Securities 699,845 354,511 - 1,054,356
----------------------------------------------------------
----------------------------------------------------------
Fixed Income Securities
Corporate(c) 143,700 97,719 - 241,419
US Government 82,039 - - 82,039
----------------------------------------------------------
----------------------------------------------------------
Total Fixed Income
Securities 225,739 97,719 - 323,458
----------------------------------------------------------
----------------------------------------------------------
Balanced Funds (d) 38,004 294,548 - 332,552
Other Mutual Funds (e) 130,508 - - 130,508
Money Market Funds - 556,408 - 556,408
Edison International
Common Stock 843,338 - - 843,338
Participant Loans - 83,348 - 83,348
----------------------------------------------------------
Total $ 1,937,434 $1,386,534 $ - $3,323,968
----------------------------------------------------------
(a) 83% of Level 2 consists of an index fund that seeks to track the
performance of the Standard and Poor's 500.
(b) Approximately 30% is a mutual fund that invests in emerging
markets.
(c) Consists of low duration, total return and high yield bond mutual
funds as well as a diversified common collective bond fund.
(d) Level 2 consists of common collective funds with investment
strategies of balanced moderate, aggressive growth and
conservative growth.
(e) Other consists of mutual funds invested in global technology,
real estate, utilities, health science and financial services.
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 15
2. Summary The following table sets forth financial assets that were
of Significant accounted for at fair value as of December 31, 2008 by Accounting
Policies hierarchy (in thousands):
(Continued) Level 1 Level 2 Level 3 Total
----------------------------------------------------------
----------------------------------------------------------
Investments
Edison International
Common Stock $ 762,101 $ - $ - $ 762,101
Common Collective
Funds - 568,304 - 568,304
Participant Loans - 73,260 - 73,260
Money Market Funds - 659,780 - 659,780
Mutual Funds 679,025 - - 679,025
----------------------------------------------------------
Total $ 1,441,126 $ 1,301,344 $ - $ 2,742,470
----------------------------------------------------------
3. Investment The Trustee invests contributions in accordance with
Elections participant instructions.
Participants may elect changes to their investment mix
effective each business day, with certain restrictions.
The Plan imposes a seven-day trading restriction for most
participants that applies to all funds except the Edison
International Common Stock Fund. Reallocation elections
are also subject to trading restrictions, redemption
fees, or other measures imposed by investment fund
managers. Participants may effect changes to their
deferral percentages and deferral investment elections
coincident with their pay frequency.
4. Investment The transfer of a participant's investment from one fund
Options to any other fund is based on the net asset value of the
units allocated to the participant's account, as of close
of market on the date of transfer.
As of December 31, 2009, all participants were able to
choose from among 41 investment fund offerings. These
investment funds consisted of the following:
o Three Pre-mixed Portfolios - Funds are invested in
portfolios which include U.S. stocks, non-U.S. stocks
and corporate and government bonds;
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 16
4. Investment o Six Institutional Funds - Funds are invested in a
Options broad selection of asset classes; and
(Continued)
o Thirty Two Mutual Funds - Funds are invested in a
variety of retail mutual funds from multiple asset
classes.
The Plan Sponsor's Trust Investment Committee may direct
the Trustee to establish new investment funds or
discontinue existing ones as well as change the investment
medium for each investment fund. Participants should refer
to the summary plan description for a more complete
discussion of the various investment options.
5. Investments The following presents investments that represent 5
percent or more of the Plan's net assets:
December 31, 2009 2008
------------------------------------------------------------
------------------------------------------------------------
(in 000's)
Investments at Fair Value as
Determined by Quoted Market
Prices:
Edison International Common
Stock Fund, 24,227,255 and
23,858,578 shares,
respectively (See Note 7) $ 854,269 $ 772,516
Others - Mutual funds (less
than 5%) 1,094,096 679,025
------------------------------------------------------------
------------------------------------------------------------
1,948,365 1,451,541
------------------------------------------------------------
Investments at Estimated Fair Value:
State Street Bank & Trust Co.
- Money Market Fund,
545,476,680 and 649,365,366
units, respectively (See
Note 7) 545,477 649,365
BlackRock - Common Stock Fund,
7,195,531 and 7,136,110
units, respectively 267,561 208,811
Others - Frank Russell Trust
Company Funds (less than 5%) 479,217 359,493
Participant Loans (less than
5%) 83,348 73,260
------------------------------------------------------------
------------------------------------------------------------
1,375,603 1,290,929
------------------------------------------------------------
------------------------------------------------------------
Total Investments $ 3,323,968 $ 2,742,470
------------------------------------------------------------
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 17
5. Investments During 2009, the Plan's investments (including gains and
(Continued) losses on investments bought and sold, as well as held
during the year) appreciated in value as follows:
Net Appreciation in Fair Value of Investments:
For the year ended December 31, 2009
------------------------------------------------------------
------------------------------------------------------------
(in 000's)
Investments at Fair Value as Determined
by Quoted Market Prices
Edison International Common Stock Fund $ 65,608
Mutual Funds 219,007
------------------------------------------------------------
284,615
Investments at Estimated Fair Value
Common Collective Funds 148,143
------------------------------------------------------------
------------------------------------------------------------
Net appreciation in fair value of
investments $ 432,758
------------------------------------------------------------
6. Reconciliation The following is a reconciliation of net assets available
of Financial for plan benefits per the financial statements to the
Statements Form 5500:
to Form 5500
December 31, 2009 2008
-----------------------------------------------------------
(in 000's)
Net assets available for plan
benefits per the financial
statements $ 3,330,903 $ 2,749,042
Less: Amounts allocated to
withdrawing participants 879 324
-----------------------------------------------------------
-----------------------------------------------------------
Net assets available for plan
benefits per the Form 5500 $ 3,330,024 $ 2,748,718
-----------------------------------------------------------
-----------------------------------------------------------
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 18
6. Reconciliation
of Financial
Statements
to Form 5500
(Continued)
For the year ended December 31, 2009
----------------------------------------------------------
(in 000's)
Benefits paid to participants per the
financial statements $ 151,967
Add: Amounts allocated to withdrawing
participants at December 31, 2009 879
Less: Amounts allocated to withdrawing
participants at December 31, 2008 (324)
----------------------------------------------------------
----------------------------------------------------------
Benefits paid to participants per the Form 5500 $ 152,522
----------------------------------------------------------
Amounts allocated to withdrawing participants are
recorded on the Form 5500 for benefit claims that have
been processed and approved for payment prior to December
31 but not paid as of that date.
7. Party-In-Interest The Money Market Fund is managed by State Street Bank and
Transactions Trust Company, which also serves as the Plan's Trustee.
Fees earned by the Trustee in its capacity as fund
manager for the Plan were $494,798 for 2009 and were
reported as management fees on the Statement of Changes
in Net Assets Available for Plan Benefits.
The Plan's investment options include the Company's
Common Stock as a fund option. See Note 2 for a
discussion of the amount of the Plan's investment in the
Company's Common Stock. In addition, State Street Global
Advisors, an affiliate of State Street Bank and Trust
Company, is the investment manager of the Edison
International Common Stock Fund. Fees earned by State
Street Global Advisors in its capacity as the investment
manager of the Edison International Common Stock Fund
were $116,772 for 2009 and were reported as management
fees on the Statement of Changes in Net Assets Available
for Plan Benefits.
Fees paid by the Plan Sponsor for administrative and
other services rendered to the Plan were based on
customary rates for such services. Various mutual funds
offered as investment options in the Plan transfer to
Hewitt Associates, the Plan's record keeper, certain fees
they charge to Plan participants who invest in the mutual
funds (these fees are charged to all investors in the
mutual funds).
Edison 401(k) Savings Plan
Notes to Financial Statements (Continued)
Page 19
7. Party-In-Interest These transferred fees, which totaled $1,376,220 for
Transactions 2009, were used to reduce Hewitt Associates' charge to
(Continued) the Plan Sponsor for services Hewitt Associates provided
to the Plan.
See Note 10 below regarding Edison International Common
Stock Fund dividend payments.
8. Plan Termination Although it has not expressed intent to do so, the Plan
Sponsor has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan
termination, participants will become fully vested in
their accounts. The Trust will continue after
termination until all Trust assets have been distributed
to participants and their beneficiaries.
9. Tax Status The Internal Revenue Service has determined and informed
the Plan Sponsor by a letter dated May 22, 2002, that the
Plan and related trust as amended through November 29,
2001, are designed in accordance with the applicable
qualification sections of the Internal Revenue Code
("IRC"). The Plan has been amended since receiving the
determination letter. However, the Plan Administrator
believes that the Plan, as amended, is designed in
compliance with the applicable qualification requirements
of the IRC. In addition, the Plan Administrator is not
aware of any operational issues that will prevent the
continuation of the Plan's qualified tax status.
10. Employee Stock The Edison International Common Stock Fund constitutes an
Ownership Plan employee stock ownership plan that allows for the current
distribution of dividends to all participants. Such
distributions paid from Plan net assets amounted to
$5,822,621 for the year ended December 31, 2009 and were
included in distributions to participants in the
accompanying financial statements. On December 10, 2009,
the board of directors of Edison International declared a
common stock dividend of $0.315 per share payable on
January 31, 2010, to the shareholders of record as of
December 31, 2009. As the record date was at year end,
dividend income of $0.315 per share amounting to
$7,562,288 was accrued and included in dividends
receivable in the accompanying financial statements at
December 31, 2009.
Edison 401(k) Savings Plan
Schedule I: Form 5500 - Schedule H - Line 4i-
Schedule of Assets (Held at End of Year) as of December 31, 2009
Page 20
EIN: 95-1240335
Plan Number: 002
(a) (b) (c) (d) (e)
Current
Identity of Description of Investment Including Value
Issuer, Maturity Date, Rate of Interest, Par or (in
Borrower, Maturity Value Cost** 000's)
Lessor, or
Similar Party
Edison International Common Stock Fund
* Edison Common Stock - No Par Value $ 843,338
International
* State Street Short Term Investment Fund 10,931
Bank &
Trust Co.
Total Edison International Common Stock Fund 854,269
Money Market Fund
* State Street Money Market Fund - Collective 545,477
Bank & Investment in the State Street Bank
Trust Co. Short-Term Income Fund
Common Collective Funds
BlackRock Common Stock Fund - Collective 267,561
Global Investment in the BZW Barclay's
Investors Global Investors Equity Index Fund
Frank Russell Balanced Fund - Collective Investment 153,462
Trust in Frank Russell Balanced Fund
Company
Frank Russell Bond Fund - Collective Investment in 97,719
Trust Frank Russell Intermediate-Term Bond
Company Fund
Frank Russell US Large Company - Collective 54,573
Trust Investment in Frank Russell US Large
Company Company Equity I Fund
Frank Russell US Small Company - Collective 32,377
Trust Investment in Frank Russell US Small
Company Company Equity II Fund
Frank Russell Conservative Growth Portfolio - 48,998
Trust Collective Investment in Frank
Company Russell Conservative Balanced Fund
Frank Russell Aggressive Growth Portfolio - 92,088
Trust Collective Investment in Frank
Company Russell Aggressive Balanced Fund
Total Common Collective Funds 746,778
Edison 401(k) Savings Plan
Schedule I: Form 5500 - Schedule H - Line 4i-
Schedule of Assets (Held at End of Year) as of December 31, 2009
Page 21
(a) (b) (c) (d) (e)
Current
Identity of Description of Investment Including Value
Issuer, Maturity Date, Rate of Interest, Par or (in
Borrower, Maturity Value Cost** 000's)
Lessor, or
Similar Party
Mutual Funds
Allianz/PIMCO Collective Investment in Total Return 84,806
Advisors Fund Admin Shares
Allianz/PIMCO Collective Investment in Low Duration 20,032
Advisors Admin Fund
Allianz/PIMCO Collective Investment in RCM Global 44,164
Advisors Technology Fund A
Allianz/PIMCO Collective Investment in Capital 10,331
Advisors Appreciation Admin Fund
Allianz/PIMCO Collective Investment in Long Term US 21,684
Advisors Government Bonds
Artisan Funds Collective Investment in Small Cap Value 42,838
Fund
Artisan Funds Collective Investment in Mid Cap Fund A 17,242
C&S Realty Collective Investment in C&S
Institutional Realty Share Value Fund 31,137
Capital Collective Investment in The American 96,695
Research & Funds Group Europacific Growth Fund
Management
Capital Collective Investment in Washington 36,466
Research & Mutual Investors Fund
Management
Capital Collective Investment in American Funds 45,974
Research & - New Perspective A
Management
Capital Collective Investment in American 38,004
Research & Balance Fund
Management
Columbia Acorn Collective Investment in Columbia Acorn 17,596
Int'l Z International Z Fund
Dimensional Collective Investment in Dimensional 91,709
Fund Advisors Emerging Markets Fund
Dreyfus Collective Investment in Appreciation 10,186
Management Fund
Franklin Collective Investment in Franklin 22,168
Advisors Utilities A
Harbor Capital Collective Investment in Capital 22,059
Advisors Appreciation Fund
MFS Investment Collective Investment in Institutional 44,286
Management TR International Equity Funds
Morgan Stanley Collective Investment in Institutional 9,388
Investment International Equity Fund
Mgmt.
Oppenheimer Collective Investment in Oppenheimer 15,488
Funds Main Street Small Cap Y Fund
Edison 401(k) Savings Plan
Schedule I: Form 5500 - Schedule H - Line 4i-
Schedule of Assets (Held at End of Year) as of December 31, 2009
Page 22
(a) (b) (c) (d) (e)
Current
Identity of Description of Investment Including Value
Issuer, Maturity Date, Rate of Interest, Par (in
Borrower, or Maturity Value Cost** 000's)
Lessor, or
Similar Party
Salomon Collective Investment in Salomon High 38,862
Brothers Yield Value Bond
T. Rowe Price Collective Investment in T. Rowe Price 26,437
Blue Chip Fund
T. Rowe Price Collective Investment in Mid-Cap Growth 52,800
T. Rowe Price Collective Investment in T. Rowe Price 21,716
Health and Science Fund
T. Rowe Price Collective Investment in Mid Cap Value 41,286
Fund
T. Rowe Price Collective Investment in Financial 11,323
Services Value Fund
T. Rowe Price Collective Investment in Small Cap 10,275
Stock Fund
Turner Collective Investment in Turner Small 13,647
Investment Cap Growth Fund
Partners
Vanguard Group Collective Investment in 60,355
Vanguard/Inflation Protected
Securities Fund
Vanguard Group Collective Investment in Mid Cap Index 64,321
Fund
William Blair Collective Investment in Small Cap 22,755
& Co Growth Fund
William Blair Collective Investment in International 8,066
& Co. Equity Fund CL 1
Total Mutual Funds 1,094,096
Participant Loans With Maturities Varying From One 83,348
Loans to Four Years (or up to 15 Years for
Purchase of a Primary Residence)
through November 2024 and Interest
Rates of 4.25 % to 10.5%
Total $ 3,323,968
* Party-In-Interest
** Investments are participant-directed; therefore,
disclosure of cost is not required.
Edison 401(k) Savings Plan
Page 23
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
Date: June 24, 2010
EDISON 401(K) SAVINGS PLAN
By: /s/ Daryl D. David
--------------------------------
Daryl D. David
Chair of the Southern California Edison
Company Benefits Committee