Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 140

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 140
---
 in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income.Stock OptionsUnder the 2007 Performance Incentive Plan, Edison International has granted stock options at exercise prices equal to the closing price at the grant date. Edison International may grant stock options and other awards related to, or with a value derived from, its common stock to directors and certain employees. Options generally expire 10 years after the grant date and vest over a period of three or four years of continuous service in equal annual increments, except for awards granted to retirement-eligible participants, which vest on an accelerated basis.The fair value for each option granted was determined as of the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires various assumptions noted in the following table:Years ended December 31,202420232022Expected terms (in years)4.74.85.0Risk-free interest rate3.7% - 4.5%3.6% - 4.7%1.6% - 4.1%Expected dividend yield3.6% - 4.7%4.2% - 4.7%4.0% - 5.0%Weighted average expected dividend yield4.7%4.2%4.0%Expected volatility23.6% - 30.4%29.0% - 29.6%27.8% - 28.6%Weighted average volatility30.3%29.1%27.8%The expected term represents the period of time for which the options are expected to be outstanding and is primarily based on historical exercise and post-vesting cancellation experience and stock price history. The risk-free interest rate for periods within the contractual life of the option is based on a zero-coupon U.S. Treasury STRIPS (separate trading of registered interest and principal of securities) whose maturity corresponds to the option's expected term on the measurement date. Expected volatility is based on the historical volatility of Edison International's common stock for the length of the option's expected term. The volatility period used was 56 months, 58 months, and 60 months at December 31, 2024, 2023, and 2022, respectively.

93

Table of Contents

The following is a summary of the status of Edison International's stock options:Weighted AverageSharesExercisePriceRemainingContractualTerm (years)AggregateIntrinsic Value(in millions)