MANAGEMENT OVERVIEW Highlights of Operating Results Edison International is the ultimate parent holding company of SCE, which 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. In the second quarter of 2026, Edison International completed the disposition of Trio, a former indirect wholly-owned subsidiary. Trio's business activities have not been material to Edison International. See "Results of Operations—Edison International Parent and Other—Trio" and "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information. Edison International's earnings are prepared in accordance with GAAP. Management uses core earnings (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Core earnings (loss) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (loss) are defined as earnings available to Edison International shareholders less non-core items. Non-core items include income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as write-downs, asset impairments, and other income and expense related to changes in law, outcomes in tax, regulatory or legal proceedings, and exit activities, including sale of certain assets and other activities that are no longer continuing. SCE implemented a customer-funded wildfire self-insurance program in 2023. With the commencement of this program, Edison International and SCE no longer consider wildfire-related claim losses to be representative of ongoing earnings and treat such costs as non-core items. Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 Change 2026 2025 Change Net income (loss) available to Edison International SCE $ 643 $ 443 $ 200 $ 1,262 $ 2,010 $ (748) Edison International Parent and Other (109) (100) (9) (197) (231) 34 Edison International 534 343 191 1,065 1,779 (714) Less: Non-core items SCE Wildfire-related (claims and expenses), net of recoveries (4) (8) 4 9 1,343 (1,334) Wildfire Fund expense (36) (36) — (71) (72) 1 Income tax benefit (expense)1 11 13 (2) 17 (355) 372 SCE non-core items (29) (31) 2 (45) 916 (961) Edison International Parent and Other Trio disposition and related losses2 (30) — (30) (36) — (36) Changes to wildfire claims and expenses insured by EIS — — — 1 (50) 51 Income tax benefit1 1 — 1 3 11 (8) Edison International Parent and Other non-core items (29) — (29) (32) (39) 7 Total non-core items (58) (31) (27) (77) 877 (954) Core earnings (loss) SCE 672 474 198 1,307 1,094 213 Edison International Parent and Other (80) (100) 20 (165) (192) 27 Edison International $ 592 $ 374 $ 218 $ 1,142 $ 902 $ 240 4 Table of Contents 1SCE and Edison International Parent and Other non-core items are tax-effected at an estimated statutory rate of approximately 28%; wildfire claims and expenses insured by EIS are tax-effected at the federal statutory rate of 21%. No net tax benefit was recognized for the Trio disposition loss as the related tax benefits are not expected to be realized. 2As a result of the disposition of Trio in the second quarter of 2026, Trio-related income and expenses are classified as non-core items. Trio's after-tax operating losses of $4 million from the first quarter of 2026 were recast to non-core and included in the six months ended June 30, 2026 amount. Trio's after-tax operating losses of $2 million and $7 million for the three and six months ended June 30, 2025, respectively, were included in core earnings as originally reported. Edison International's second quarter 2026 earnings increased $191 million from the second quarter of 2025, resulting from an increase in SCE's earnings of $200 million, partially offset by an increase in Edison International Parent and Other's loss of $9 million. SCE's higher net income reflected $198 million of higher core earnings and a $2 million lower non-core loss. Edison International Parent and Other's loss increased by $9 million due to a $29 million non-core loss in 2026, partially offset by $20 million of lower core loss compared to 2025. Edison International's earnings for the six months ended June 30, 2026 decreased $714 million from the same period ended June 30, 2025, resulting from a decrease in SCE's earnings of $748 million, partially offset by a decrease in Edison International Parent and Other's loss of $34 million. SCE's lower net income reflected a $45 million non-core loss in 2026 compared to a $916 million non-core benefit in 2025, partially offset by $213 million of higher core earnings. Edison International Parent and Other's loss decreased by $34 million due to $27 million of lower core loss and $7 million of lower non-core loss. The increase in SCE's core earnings for the three and six months ended June 30, 2026, compared to the same periods in 2025, was primarily due to the adoption of the 2025 GRC final decision in the third quarter of 2025. The increase for the six-month period was partially offset by the absence of a benefit to interest expense related to cost recoveries authorized under the TKM Settlement Agreement in 2025. The decrease in Edison International Parent and Other's core loss for the three and six months ended June 30, 2026, was primarily due to lower preferred stock dividends, partially offset by higher interest expense. Consolidated non-core items for the six months ended June 30, 2026 and 2025 for Edison International included: •Wildfire-related recoveries, net of claims and expenses: •Net earnings of $9 million ($6 million after-tax) recorded in 2026 primarily due to expected recoveries, partially offset by claims and legal expenses associated with Other Wildfire Events. •Net earnings of $1,343 million ($968 million after-tax) in 2025 primarily related to the TKM Settlement Agreement and insurance reimbursements related to Other Wildfire Events. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information. •Charges of $71 million ($51 million after-tax) and $72 million ($52 million after-tax) recorded in 2026 and 2025, respectively, from amortization of SCE's contributions to the Wildfire Fund. See "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information. •Losses of $36 million ($33 million after-tax) in 2026 related to the disposition of Trio, including Trio's operating losses, the loss on disposition, and related transaction and employee costs. See "Results of Operations—Edison International Parent and Other—Trio" and "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information. •Net earnings of $1 million ($1 million after-tax) recorded in 2026 primarily due to updated estimates of claims accruals, net of legal expenses, and charges of $50 million ($39 million after-tax) recorded in 2025, both related to wildfire claims insured by EIS. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information. See "Results of Operations" for discussion of SCE's and Edison International Parent and Other's results of operations. Capital Program Total capital expenditures (including accruals) were $3.1 billion for both six months ended June 30, 2026 and 2025. As discussed in the 2025 Form 10-K, SCE forecasts total capital expenditures ranging from $37.5 billion to $40.6 billion for 2026 – 2030, and weighted average annual rate base from $50.8 billion to $67.9 billion for 2026 – 2030. These capital program and rate base projections incorporate the planned CPUC-jurisdictional spending as informed by the 2025 GRC 5 Table of Contents final decision and expected FERC capital expenditures, see "Liquidity and Capital Resources—SCE—Capital Investment Plan" below and "Management Overview—Capital Program" in the 2025 MD&A. In May 2026, the CAISO approved its 2025-2026 Transmission Plan, which identified new transmission projects expected to be constructed by SCE and finalized the CAISO's reassessment of certain SCE projects from the 2022-2023 Transmission Plan. As a result of this reassessment, certain previously approved projects were removed or modified and offset by newly approved projects. SCE's total anticipated capital expenditures for CAISO-approved transmission projects remain approximately $3 billion, of which approximately $1 billion is included in the total forecasted capital expenditures from 2026 – 2030. For further information, see "Management Overview—Capital Program" in the 2025 MD&A. Southern California Wildfires Unprecedented weather conditions in California due to climate change and greater concentrations of residents in high-fire risk areas, among other things, have contributed to wildfires, including those where SCE's equipment has been alleged to be associated with the fire's ignition, that have caused loss of life and substantial damage in SCE's service area. SCE continues to implement its WMP to reduce the risk of SCE equipment contributing to the ignition of wildfires. Further to the investments SCE is making as part of its WMP, SCE also uses its PSPS program to proactively de-energize power lines as a last resort to mitigate the risk of significant wildfires during extreme weather events. In addition, California has increased its investment in wildfire prevention and fire suppression capabilities. Yet, the potential for catastrophic wildfire activity in SCE's service area still exists. In February 2026, the OEIS issued a final decision approving SCE’s 2026 – 2028 WMP. In March 2026, the OEIS issued SCE's safety certification which is valid until the later of March 2, 2027, and when OEIS acts on SCE's timely submittal of a request for its next safety certification. In April 2026, the CEA submitted to the California Legislature and the Governor a report required by SB 254 that evaluates California’s approach to natural catastrophe risk, including wildfires. The report identifies increasing natural catastrophe risk driven by climate‑related factors, development in wildfire‑prone areas, fuel conditions, and other systematic factors, and highlights challenges in wildfire mitigation, insurance availability, liability allocation, and post‑event recovery. The report observes that failure to address escalating wildfire risk would prolong recovery for affected communities, significantly increase electric utility costs, driving higher customer rates, and also could elevate insurance premiums statewide. The report further observes that inaction would expose SCE to risk of credit downgrades and heightened financial stress, limiting access to capital needed to maintain safe and reliable infrastructure. Taken together, these dynamics would exacerbate affordability pressures, undermine market stability, and impede SCE's ability to support long‑term reliability and California's climate‑related objectives. Against this backdrop, the report presents a framework of policy options organized around three non‑exclusive pathways: committing to community‑level wildfire mitigation, including measures to reduce the severity and scale of catastrophic events through coordinated community‑based risk reduction, home‑ and neighborhood‑level hardening, and risk-informed targeting of mitigation investments; equitably allocating catastrophe burdens among stakeholders, including through insurance and liability‑related mechanisms such as insurance market reforms, quicker compensation and claims‑handling structures, and potential changes to utility wildfire liability frameworks; and defining potential state roles in catastrophe resilience, including options such as expanded or restructured catastrophe financing mechanisms, state‑level risk pooling or backstops, and other approaches intended to address extreme loss events. The report discusses options with varying implementation timeframes and fiscal impacts and does not recommend or endorse any specific policy approach. Edison International and SCE are engaging with stakeholders in the legislative process related to wildfire-related risks, however, they cannot predict whether or when there will be a comprehensive economy-wide solution mitigating the significant risk faced by California investor-owned utilities related to wildfires. Eaton Fire In January 2025, several wind-driven wildfires impacted portions of SCE's service area, causing loss of life, substantial damage to both residential and business properties, and service outages for SCE customers. One of the largest of these wildfires, the Eaton Fire, ignited in SCE's service area in Los Angeles County and spread due to a number of contributing factors under conditions of an extreme Santa Ana windstorm. The Los Angeles County Fire Department is leading the investigation into the origin and cause of the Eaton Fire, with the assistance of CAL FIRE, and has identified a preliminary area of origin of the fire. SCE has transmission facilities in the preliminary area of origin and the SED is conducting an investigation with respect to the Eaton Fire. Edison International and SCE are also aware of an ongoing investigation by the Los Angeles District Attorney's Office of the Eaton Fire for the purpose of determining whether any criminal violations have occurred. SCE could be subject to material fines, penalties, or restitution if it is determined that it failed to comply with applicable laws and regulations. SCE is not aware of any basis for 6 Table of Contents felony liability with regards to the Eaton Fire. Any fines and penalties incurred in connection with the Eaton Fire will not be recoverable from insurance, from the Wildfire Fund, or through electric rates. Multiple lawsuits related to the Eaton Fire have been initiated against SCE and Edison International by individual plaintiffs, subrogation plaintiffs, and public entity plaintiffs related to the Eaton Fire. A bellwether jury trial in the Eaton Fire litigation has been set for January 2027. SCE’s internal review into the facts and circumstances of the Eaton Fire is complex and ongoing. SCE's review includes ongoing inspections of its facilities and records and of third-party information and testing. While SCE has not conclusively determined that its equipment caused the ignition of the Eaton Fire, a viable explanation is that a de-energized idle SCE transmission facility in the preliminary area of origin was associated with the ignition of the fire, and SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment was associated with the ignition of the Eaton Fire and is pursuing settlement of claims through its Wildfire Recovery Compensation Program, a program designed to enable eligible individuals and businesses impacted by the Eaton Fire to seek expedited resolution of their claims. SCE has entered into settlements with insurance claimants and claimants under its Wildfire Recovery Compensation Program related to the Eaton Fire. As of June 30, 2026, SCE had recorded $1.6 billion in losses related to these settlements. SCE also recorded expected recoveries from customer-funded self-insurance of $917 million, from the Wildfire Fund of $645 million, and through FERC electric rates of $70 million. In total, through June 30, 2026, the net after-tax charge to earnings recorded related to the settlements was $9 million, the after-tax impact of the required $12.5 million shareholder contribution related to SCE's customer-funded self-insurance coverage. For more information about settlements under SCE’s Wildfire Recovery Compensation Program, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides—Settlement of Claims." In light of pending litigation, it is probable that Edison International and SCE will incur additional material losses in connection with the Eaton Fire. Given, among other things, the complexities associated with estimating damages, the large number and varying types of claims and the interrelationship among the claims, uncertainties related to the sufficiency of insurance held by plaintiffs and potential plaintiffs, and uncertainties related to litigation processes and the Wildfire Recovery Compensation Program, Edison International and SCE are currently unable to reasonably estimate a range of losses that may be incurred in connection with the Eaton Fire. In January 2026, SCE filed a cross-complaint against certain public and private entities whose actions or inaction may have caused, contributed to or exacerbated the losses that resulted from the fire. SCE exhausted self-insurance recoveries available for losses related to the Eaton Fire as a result of costs incurred and settlements entered into as of February 11, 2026. SCE has advised the administrator of the Wildfire Fund that it anticipates that it will seek reimbursement of eligible claims arising from the Eaton Fire from the Initial Account and the administrator has confirmed that the Eaton Fire is a "covered wildfire" for purposes of accessing the Initial Account. SCE will be reimbursed for losses incurred in excess of $1.0 billion for eligible claims for third-party damages related to the Eaton Fire from the Initial Account, subject to approval of the fund administrator and the Initial Account's claims-paying capacity. The fund administrator has reported that approximately $21 billion in the fund's claims-paying capacity will be available for the Eaton Fire. SCE will file an application with the CPUC for review of its costs and expenses related to the Eaton Fire after it has resolved all or, if authorized by the CPUC, substantially all third-party damage claims related to the fire, or upon earlier request of the fund administrator. Because SCE held a valid safety certification at the time of the Eaton Fire, SCE will be presumed to have acted prudently unless a party in the proceeding creates "serious doubt" as to the reasonableness of its conduct, in which case SCE will have the burden of dispelling that doubt and proving its conduct was prudent. The prudency standard does not necessitate perfect conduct and California Wildfire Legislation requires that the CPUC allow recovery if it determines that SCE's conduct related to the ignition of the Eaton Fire was consistent with actions of a reasonable utility. SCE believes that the CPUC's determination regarding the reasonableness of its ignition-related conduct should be based on an evaluation of the reasonableness of its overall policies, systems, and practices. The CPUC has not yet issued a final decision applying the California Wildfire Legislation prudency framework to a wildfire cost-recovery proceeding. SCE believes that it is a reasonable operator of its electric system. Based on the information it has reviewed, SCE believes that it will be able to make a good faith showing that its conduct with respect to its transmission facilities in the preliminary area of origin was consistent with the actions of a reasonable utility. The CPUC will determine the prudency of SCE's ignition-related conduct in a formal proceeding. If the CPUC finds that SCE's conduct related to the ignition of the Eaton Fire was not prudent, it may nevertheless allow cost recovery in full or in part taking into account factors both within and beyond SCE's control that may have exacerbated the costs, including, for 7 Table of Contents example, winds, humidity, temperature, emergency response, evacuation timing and availability of firefighting resources. Because SCE held a safety certification at the time of the ignition, it will be required to reimburse the Initial Account only for amounts disallowed by the CPUC up to the applicable Liability Cap of approximately $4.3 billion, unless the fund administrator finds that SCE's actions or inactions relative to the ignition of the Eaton Fire constitute conscious or willful disregard of the rights and safety of others, in which case SCE will be required to reimburse the Initial Account for all withdrawn amounts that the CPUC disallowed. SCE will be able to seek recovery of prudently incurred uninsured wildfire costs not covered by the Initial Account, assessed under the prudency standard clarified under the California Wildfire Legislation, through electric rates. For further information on Southern California Wildfires, see "MD&A—Management Overview—Southern California Wildfires and Mudslides," "Risk Factors," "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Wildfire Fund," "Business—Southern California Wildfires" and "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in the 2025 Form 10-K; and "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Wildfire Fund," and "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in this report. 8 Table of Contents RESULTS OF OPERATIONS SCE The following discusses SCE's condensed consolidated statements of income for the three and six months ended June 30, 2026 and 2025. In general, expenses SCE is authorized to pass through directly to customers (such as purchased power and fuel expenses, flow-through taxes, as well as costs incurred for various programs and activities, such as public purpose programs and vegetation management activities) and the corresponding amount of revenues collected to recover those pass-through costs do not impact net income. The following tables summarize SCE's results of operations for the periods indicated. Three months ended June 30, 2026 versus June 30, 2025 Three months ended June 30, Favorable (Unfavorable) (in millions) 2026 2025 2026 to 2025 Operating revenue $ 4,348 $ 4,532 $ (184) Purchased power and fuel 1,137 1,157 20 Operation and maintenance 1,041 1,553 512 Wildfire-related claims, net of (recoveries) 17 — (17) Wildfire Fund expense 36 36 — Depreciation and amortization 833 825 (8) Property and other taxes 169 167 (2) Other (2) — 2 Total operating expenses 3,231 3,738 507 Operating income 1,117 794 323 Interest expense (415) (421) 6 Other income, net 117 117 — Income before income taxes 819 490 329 Income tax expense 150 14 (136) Net income 669 476 193 Less: Preference stock dividend requirements 26 33 7 Net income available to common stock $ 643 $ 443 $ 200 Operating Revenue A decrease in operating revenue of $184 million was primarily due to: •A decrease in revenue of $400 million related to net lower expenses that are passed through to customers, which mainly included decreases in: •Operation and maintenance expense of $425 million; •Depreciation and amortization expense of $30 million; •Purchased power and fuel expense of $20 million; partially offset by increases in: •Income tax expense of $56 million; •Wildfire-related claims, net of recoveries, of $17 million. •A decrease in revenue of $57 million primarily due to the recognition of return on wildfire-related balancing account rate base resulting from regulatory decisions received in the second quarter of 2025. 9 Table of Contents partially offset by: •An increase in revenue of $273 million driven by the 2025 GRC final decision, including the 2026 escalation mechanism set forth in the 2025 GRC decision. SCE's results of operations for the three months ended June 30, 2025 were based on the 2024 authorized revenue. SCE received the final 2025 GRC decision in the third quarter of 2025 and the authorized revenue attributable to the second quarter of 2025 but recorded subsequently in 2025 was approximately $193 million. Purchased Power and Fuel A decrease in purchased power and fuel costs of $20 million was primarily due to lower energy prices and higher congestion revenue rights credits, partially offset by higher capacity costs (offset in "Operating Revenue" above). Operation and Maintenance A decrease in operation and maintenance expense of $512 million was primarily due to: •A net decrease of $425 million pass-through costs (offset in "Operating Revenue" above), which is mainly related to the recognition of previously deferred wildfire mitigation and vegetation management costs authorized for recovery in 2025. •A charge of $62 million recorded in 2025 primarily associated with disallowed historical expenses related to 2021 GRC wildfire mitigation memorandum account balances. Wildfire-related Claims, Net of Recoveries An increase of $17 million in wildfire-related claims, net of recoveries, was primarily due to the net recognition of previously deferred claim costs to be recovered through FERC rates (offset in "Operating Revenue" above). For further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides." Depreciation and Amortization An increase in depreciation and amortization expense of $8 million was primarily due to higher plant balances, partially offset by $30 million of lower pass-through costs mainly associated with wildfire-related regulatory decisions received in 2025 (offset in "Operating Revenue" above). Income Taxes An increase in income tax expense of $136 million was primarily due to $94 million of higher tax expense on higher pre-tax income and $42 million of lower flow-through tax benefits that were passed through to customers (offset the corresponding pre-tax amount in "Operating Revenue"). See "Notes to Condensed Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate. 10 Table of Contents Six months ended June 30, 2026 versus June 30, 2025 Six months ended June 30, Favorable (Unfavorable) (in millions) 2026 2025 2026 to 2025 Operating revenue $ 8,444 $ 8,334 $ 110 Purchased power and fuel 2,107 2,204 97 Operation and maintenance 2,039 2,515 476 Wildfire-related claims, net of (recoveries) 14 (1,355) (1,369) Wildfire Fund expense 71 72 1 Depreciation and amortization 1,666 1,566 (100) Property and other taxes 347 332 (15) Other (2) 8 10 Total operating expenses 6,242 5,342 (900) Operating income 2,202 2,992 (790) Interest expense (845) (641) (204) Other income, net 238 228 10 Income before income taxes 1,595 2,579 (984) Income tax expense 278 502 224 Net income 1,317 2,077 (760) Less: Preference stock dividend requirements 55 67 12 Net income available to common stock $ 1,262 $ 2,010 $ (748) Operating Revenue An increase in operating revenue of $110 million was primarily due to: •An increase in revenue of $553 million driven by the 2025 GRC final decision, including the 2026 escalation mechanism set forth in the 2025 GRC decision. SCE's results of operations for the six months ended June 30, 2025 were based on the 2024 authorized revenue. SCE received the final 2025 GRC decision in the third quarter of 2025 and the authorized revenue attributable to the first and second quarters of 2025 but recorded subsequently in 2025 was approximately $394 million. partially offset by: •A decrease in revenue of $390 million related to net lower expenses that are passed through to customers, which mainly included decreases in: •Operation and maintenance expense of $408 million; •Purchased power and fuel expense of $97 million; •Depreciation and amortization expense of $6 million; and increases in: •Other income of $9 million; partially offset by increases in: •Income tax expense of $65 million; •Interest expense of $38 million; •Wildfire-related claims, net of recoveries, of $25 million; •Property and other taxes of $2 million. 11 Table of Contents •A decrease in revenue of $53 million primarily due to the recognition of return on wildfire-related balancing account rate base resulting from regulatory decisions received in the second quarter of 2025. Purchased Power and Fuel A decrease in purchased power and fuel costs of $97 million was primarily due to lower energy prices, partially offset by higher capacity costs (offset in "Operating Revenue" above). Operation and Maintenance A decrease in operation and maintenance expense of $476 million was primarily due to: •A net decrease of $408 million pass-through costs (offset in "Operating Revenue" above), which is mainly related to the recognition of previously deferred wildfire mitigation and vegetation management costs authorized for recovery in 2025. •A charge of $62 million recorded in 2025 primarily associated with disallowed historical expenses related to 2021 GRC wildfire mitigation memorandum account balances. Wildfire-related Claims, Net of Recoveries A decrease in recoveries of wildfire-related claims of $1,369 million was primarily due to: •$1,341 million claim costs recovery authorized and recorded in 2025 under the TKM Settlement Agreement; •$14 million insurance reimbursements recorded in 2025 related to Other Wildfire Events; •$25 million of net recognition of previously deferred claim costs to be recovered through FERC rates (offset in "Operating Revenue" above); partially offset by: •Benefits of $11 million mainly due to expected recoveries related to Other Wildfire Events. For further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides." Depreciation and Amortization An increase in depreciation and amortization expense of $100 million was primarily due to higher plant balances, partially offset by $6 million of lower pass-through costs (offset in "Operating Revenue" above). Property and Other Taxes An increase in property and other taxes of $15 million was primarily related to higher assessed property values and $2 million of higher pass-through costs (offset in "Operating Revenue" above). Interest Expense An increase in interest expense of $204 million was primarily due to: •$171 million cost recovery authorized and recorded in 2025 under the TKM Settlement Agreement. •$38 million pass-through expense mainly associated with increased securitization debt (offset in "Operating Revenue" above). Other Income, Net An increase in other income of $10 million was primarily due to an increase in equity allowance for funds used during construction and $9 million of higher pass-through costs (offset in "Operating Revenue" above), partially offset by lower insurance benefits. Income Taxes A decrease in income tax expense of $224 million was primarily due to $276 million of lower tax expense on lower pre-tax income, partially offset by $52 million of lower flow-through tax benefits that were passed through to customers (offset the 12 Table of Contents corresponding pre-tax amount in "Operating Revenue"). See "Notes to Condensed Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate. Edison International Parent and Other Results of operations for Edison International Parent and Other include amounts from other subsidiaries that are not reportable segments, as well as intercompany eliminations. Trio In the second quarter of 2026, Edison International completed the disposition of Trio and recognized a $23 million loss on disposition, including transaction costs. In addition, Edison International recognized an additional $5 million of employee-related expenses in connection with the disposition. See "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information. Loss from Operations The following table summarizes the results of Edison International Parent and Other: Three months ended June 30, Favorable (Unfavorable) Six months ended June 30, Favorable (Unfavorable) (in millions) 2026 2025 2026 to 2025 2026 2025 2026 to 2025 Edison International Parent and Other net loss $ (108) $ (78) $ (30) $ (186) $ (187) $ 1 Less: Preferred stock dividend requirements 1 22 21 11 44 33 Edison International Parent and Other net loss available to common shareholders $ (109) $ (100) $ (9) $ (197) $ (231) $ 34 The net loss available to common shareholders from operations of Edison International Parent and Other increased $9 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to the Trio disposition and related losses (see "—Trio" above for further information) and higher interest expense, partially offset by lower preferred stock dividends. The net loss available to common shareholders from operations of Edison International Parent and Other decreased $34 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower expenses from wildfire claims insured by an EIS insurance contract (see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies" and "Note 16. Related-Party Transactions" for further information) and lower preferred stock dividends, partially offset by the Trio disposition and related losses (see "—Trio" above for further information) and higher interest expense. 13 Table of Contents LIQUIDITY AND CAPITAL RESOURCES SCE SCE's ability to operate its business, fund capital expenditures, and implement its business strategy is dependent upon its operating cash flow and access to the bank and capital markets. SCE's overall cash flows fluctuate based on, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest obligations, dividend payments to and equity contributions from Edison International, obligations to preference shareholders, and the outcome of tax, regulatory, and legal matters. In the next 12 months, SCE expects to fund its cash requirements through operating cash flows, capital market and bank financings, and equity contributions from Edison International Parent, as needed. In addition, SCE expects to fund costs related to the Eaton Fire through customer-funded self-insurance and reimbursement from the Initial Account of the Wildfire Fund. SCE also has availability under its credit facility and agreements with lenders to issue bilateral unsecured standby letters of credit to fund cash requirements. In July 2026, SCE Recovery Funding LLC issued approximately $2.0 billion of securitized recovery bonds to finance cost recoveries authorized under the Woolsey Settlement Agreement. For further details, see "Management Overview—Southern California Wildfires and Mudslides" in the 2025 Form 10-K and "Notes to Condensed Consolidated Financial Statements—Note 3. Variable Interest Entities." During the six months ended June 30, 2026, SCE issued a total of $1.7 billion of first and refunding mortgage bonds. In February 2026, SCE entered into a term loan agreement to borrow $1.5 billion due in March 2027, which was partially used to repay all borrowings under a February 2026 $300 million unsecured term loan agreement. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements." In the first quarter of 2026, SCE redeemed all the outstanding shares of its Series K preference stock for an aggregate paid amount of $119 million, which caused SCE Trust V to redeem all of its outstanding 5.45% Series K Trust Securities. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 13. Equity." For restrictions on SCE's ability to pay dividends, see "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—SCE Dividends" in the 2025 Form 10-K. Credit Ratings SCE's credit ratings may be affected by various factors, including failure by regulators or legislators to successfully implement the California Wildfire Legislation and adopt additional measures in a timely, consistent, and credit-supportive manner that adequately mitigates the significant wildfire-related risk faced by California investor-owned utilities, as well as the outcome of investigations into wildfire events or associated settlements that result in material utility liability exposure. In April 2026, the CEA submitted to the California Legislature and the Governor a report required under SB 254. The report observes that inaction to address escalating wildfire risk would expose utilities to risk of credit downgrades and heightened financial stress, limiting access to capital needed to maintain safe and reliable infrastructure. SCE cannot predict whether or when legislation or other measures will be adopted that adequately mitigate the significant risk faced by California investor-owned utilities related to wildfires. For further discussion about the report, see "Management Overview—Southern California Wildfires." Additionally, a persistent increase in the frequency and severity of wildfires in California, or the absence of legislation or other measures that credit rating agencies view as sufficient to mitigate wildfire-related risks, may lead the credit rating agencies to reassess SCE's wildfire-related operational risk exposure or believe the Wildfire Fund is at risk of material depletion and therefore downgrade SCE's credit rating. Credit rating downgrades may increase the cost of debt and equity capital and may also impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, bond financings, or other borrowings, which could lead to higher customer rates over time. In addition, some of SCE's power procurement and energy contracts, environmental remediation obligations and workers' compensation self-insurance would require SCE to pay related liabilities or post additional collateral if SCE's credit rating were to fall below investment grade. For further details, see "—Margin and Collateral Deposits" below. Available Liquidity At June 30, 2026, SCE had cash and cash equivalents of $171 million and restricted cash of $378 million collected from customer-funded wildfire self-insurance. SCE also has approximately $2.6 billion available to borrow on its $3.4 billion revolving credit facility. In June 2026, SCE extended its credit facility through May 2030, pursuant to an option to extend, and may extend its credit facility for one additional year with the lenders' approval. The aggregate maximum principal amount under the SCE revolving credit facility may be increased up to $4.0 billion, provided that additional lender commitments are obtained. SCE also had standby letters of credit with total capacity of $635 million, and the unused 14 Table of Contents amount was $524 million as of June 30, 2026. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements." SCE may finance balancing account undercollections and working capital requirements to support operations and capital expenditures with commercial paper, its credit facilities, or other borrowings, subject to availability in the bank and capital markets and within levels authorized by the CPUC. As necessary, SCE will utilize its available liquidity, capital market financings, other borrowings, or parent company equity contributions to SCE in order to meet its obligations as they become due. SCE primarily expects to use customer-funded wildfire self-insurance and reimbursement from the Initial Account to fund wildfire claims. For further information, see "Management Overview—Southern California Wildfires." Debt Covenant SCE's credit facilities and term loan require a debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.65 to 1. At June 30, 2026, SCE's debt to total capitalization ratio was 0.57 to 1. At June 30, 2026, SCE was in compliance with all financial covenants that affect access to capital. Regulatory Proceedings 2024 Multi-year Wildfire Mitigation and Catastrophic Events Filing ("WMCE") Filing In December 2025, SCE filed its 2024 WMCE Filing, seeking to recover incremental operating and maintenance expenses of $55 million and incremental capital expenditures of $78 million, recorded in the wildfire risk mitigation balancing account, as well as incremental storm-related costs associated with certain 2017 – 2021 events recorded in the catastrophic event memorandum account. The application also seeks recovery of $36 million in wildfire mitigation related capital expenditures incurred in 2022 that were previously denied without prejudice and permitted to be included in base rates as part of the post-test year ratemaking mechanism. In April 2026, the CPUC adopted a schedule with a proposed decision expected in the first quarter of 2027. 2021 GRC Wildfire Mitigation Memorandum Account Balance In June 2025, the CPUC issued a final decision authorizing recovery of certain requested costs and disallowing recovery of $65 million in operations and maintenance expenses and $36 million of requested capital expenditures. SCE subsequently filed an application for rehearing regarding the disallowances. In May 2026, the CPUC granted a limited rehearing to reconsider certain amounts that were disallowed. NextGen Enterprise Resource Planning ("ERP") Program In March 2025, SCE filed an application with the CPUC seeking authorization to recover costs related to its NextGen ERP Program. In April and June 2026, the CPUC issued a procedural ruling requesting additional information from SCE, which SCE timely provided. SCE anticipates that a proposed decision will be issued by the CPUC in 2026. Advanced Metering Infrastructure ("AMI") 2.0 Program In March 2026, SCE filed an application with the CPUC requesting approval of the AMI 2.0 program, which is intended to replace SCE's existing metering infrastructure, including meters, network communications, software systems, and data analytics, as well as to enable new customer programs. The application seeks authorization for forecasted capital expenditures of $3.1 billion and operations and maintenance costs of $366 million to be incurred between 2026 and 2033, as well as authorization to establish an AMI 2.0 Memorandum Account and an AMI 2.0 Balancing Account to record the associated costs. 2027 FERC Formula Rate Annual Update In June 2026, SCE provided its preliminary 2027 annual transmission revenue requirement update to interested parties. The update proposes a 2027 transmission revenue requirement of $1.7 billion, which is a $159 million, or 11%, increase from the 2026 annual rates. The increase is primarily due to 2027 rates reflecting recovery of previous undercollections. SCE expects to file its 2027 annual update with the FERC by December 1, 2026, with the proposed rates effective January 1, 2027. 15 Table of Contents Capital Investment Plan Alberhill System Project In March 2026, the CPUC approved the Certificate of Public Convenience and Necessity for the project, authorizing the construction to proceed. Construction for the project is expected to begin in the third quarter of 2026. For further details on the project, see "Liquidity and Capital Resources—Southern California Edison Company—Capital Investment Plan" in the 2025 Form 10-K. Margin and Collateral Deposits Certain derivative instruments, power and energy procurement contracts, and other contractual arrangements contain collateral requirements. Future collateral requirements may differ from the requirements at June 30, 2026, due to the addition of incremental power and energy procurement contracts with collateral requirements, if any, the impact of changes in wholesale power and natural gas prices on SCE's contractual obligations, and the impact of SCE's credit ratings falling below investment grade. See "—SCE" above for further information on SCE's credit ratings. The table below provides the amount of collateral posted by SCE to its counterparties as well as the potential collateral that would have been required as of June 30, 2026, if SCE's credit rating had been downgraded to below investment grade as of that date. The table below also provides the potential collateral that could be required due to adverse changes in wholesale power and natural gas prices over the remaining lives of existing power and fuel contracts. In addition to amounts shown in the table, power and fuel contract counterparties may also institute new collateral requirements, applicable to future transactions to allow SCE to continue trading in power and fuel contracts at the time of a downgrade or upon significant increases in market prices. (in millions) Collateral posted as of June 30, 20261 $ 202 Incremental collateral requirements for purchased power and fuel contracts resulting from a potential downgrade of SCE's credit rating to below investment grade2 9 Incremental collateral requirements for purchased power and fuel contracts resulting from adverse market price movements3 59 Posted and potential collateral requirements $ 270 1Net collateral provided to counterparties and other brokers consisted of $120 million in letters of credit and surety bonds and $82 million of cash collateral. 2Represents potential collateral requirements for accounts payable and mark-to-market valuation at June 30, 2026. Requirement varies throughout the period and is generally lower at the end of the month. 3Incremental collateral requirements were based on potential changes in SCE's forward positions as of June 30, 2026, due to adverse market price movements over the remaining lives of the existing power and fuel derivative contracts using a 95% confidence level. Furthermore, SCE may be required to post collateral for workers' compensation in excess of standard formula amounts, currently up to $137 million, in the event of volatile credit rating conditions, during which the Office of Self-Insurance Plans, which oversees workers' compensation self-insurance within California, may exercise discretion to impose higher collateral requirements. As of June 30, 2026, SCE had $14 million of collateral posted under such discretionary authority. SCE may also be required to post up to $50 million in collateral in connection with its environmental remediation obligations, within 120 days of the end of the fiscal year in which a downgrade below investment grade occurs. 16 Table of Contents Edison International Parent and Other In the next 12 months, Edison International Parent expects to fund its net cash requirements through cash on hand, dividends from SCE, and capital market and bank financings. Edison International Parent may finance its ongoing cash requirements, including dividends, working capital requirements, payment of obligations, and capital investments, including capital contributions to subsidiaries, with short-term or other financings, subject to availability in the bank and capital markets. At June 30, 2026, Edison International Parent and Other had cash and cash equivalents of $71 million and $1.3 billion available to borrow on its $1.5 billion revolving credit facility. In June 2026, Edison International Parent extended its credit facility through May 2030, pursuant to an option to extend, and may extend its credit facility for one additional year with the lenders' approval. The aggregate maximum principal amount under the Edison International Parent revolving credit facility may be increased up to $2.0 billion, provided that additional lender commitments are obtained. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements." In the first quarter of 2026, Edison International Parent issued $550 million of 4.80% senior notes due in 2031. In the second quarter of 2026, Edison International Parent issued $500 million of 5.00% senior notes due in 2028. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements." In the first quarter of 2026, Edison International redeemed all remaining shares of its 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") and repurchased 4,434 shares of 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock") for $414 million and $4 million, respectively. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 13. Equity." Edison International Parent and Other's liquidity and its ability to pay operating expenses and pay dividends to preferred and common shareholders are dependent on access to the bank and capital markets, dividends from SCE, realization of tax benefits, and its ability to meet California law requirements for the declaration of dividends. For information on the California law requirements on the declaration of dividends, see "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—SCE Dividends" in the 2025 Form 10-K. Edison International intends to maintain its target payout ratio of 45% – 55% of SCE's core earnings, subject to the factors identified above. Edison International's ability to declare and pay common dividends may be restricted under the terms of its Series B Preferred Stock. For further information, see "Notes to Consolidated Financial Statements—Note 14. Equity" in the 2025 Form 10-K. Edison International Parent's credit facility and term loan require a consolidated debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.70 to 1. At June 30, 2026, Edison International's consolidated debt to total capitalization ratio was 0.66 to 1. At June 30, 2026, Edison International Parent was in compliance with all financial covenants that affect access to capital. Credit Ratings Edison International Parent's credit ratings may be affected by various factors, including failure by regulators or legislators to successfully implement the California Wildfire Legislation and adopt additional measures in a timely, consistent, and credit-supportive manner that adequately mitigates the significant wildfire-related risk faced by California investor-owned utilities, as well as the outcome of investigations into wildfire events or associated settlements that result in material utility liability exposure. In April 2026, the CEA submitted to the California Legislature and the Governor a report required under SB 254. The report observes that inaction to address escalating wildfire risk would expose utilities to risk of credit downgrades and heightened financial stress, limiting access to capital needed to maintain safe and reliable infrastructure. Edison International Parent cannot predict whether or when legislation or other measures will be adopted that adequately mitigate the significant risk faced by California investor-owned utilities related to wildfires. For further discussion about the report see "Management Overview—Southern California Wildfires." Additionally, a persistent increase in the frequency and severity of wildfires in California, or the absence of legislation or other measures that credit rating agencies view as sufficient to mitigate wildfire-related risks, may lead the credit rating agencies to reassess Edison International Parent's wildfire-related operational risk exposure or believe the Wildfire Fund is at risk of material depletion and therefore downgrade Edison International Parent's credit rating. Credit rating downgrades may increase the cost of debt and capital and may also impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, note financings, or other borrowings, which could lead to higher customer rates over time. 17 Table of Contents Edison International Income Taxes Inflation Reduction Act of 2022 The IRA imposed a corporate alternative minimum tax ("CAMT"), which Edison International and SCE are subject to beginning in 2026. Edison International and SCE expect that any CAMT paid will be creditable against future income taxes. In addition, under the IRA, SCE expects to generate $158 million investment tax credit in future periods related to utility owned storage projects. The associated tax benefits will be recognized and returned to customers as the credits are utilized. Historical Cash Flows SCE Six months ended June 30, Change (in millions) 2026 2025 2026 vs. 2025 Net cash provided by operating activities $ 2,900 $ 2,251 $ 649 Net cash provided by financing activities 500 897 (397) Net cash used in investing activities (3,404) (2,999) (405) Net (decrease) increase in cash, cash equivalents and restricted cash $ (4) $ 149 $ (153) Net Cash Provided by Operating Activities The following table summarizes major categories of net cash provided by operating activities as provided in more detail in SCE's condensed consolidated statements of cash flows for the six months ended June 30, 2026 and 2025. Six months ended June 30, Change (in millions) 2026 2025 2026 vs. 2025 Net income $ 1,317 $ 2,077 Non-cash items 1,820 2,065 Subtotal 3,137 4,142 (1,005) Changes in working capital (310) 29 (339) Regulatory assets and liabilities 460 (1,600) 2,060 Wildfire-related claims, net of insurance recoveries (354) (211) (143) Other noncurrent assets and liabilities1 (33) (109) 76 Net cash provided by operating activities $ 2,900 $ 2,251 $ 649 1Includes nuclear decommissioning trusts. See "Nuclear Decommissioning Activities" below for further information. Net cash provided by operating activities increased by $649 million during the six months ended June 30, 2026 compared to the same period of 2025. The change was primarily due to the increase in 2026 escalation mechanism for rates set forth in the 2025 GRC final decision and the change in timing of climate credit disbursement as reflected in the change in regulatory assets and liabilities, partially offset by a decrease from changes in working capital. The net (outflows) inflows in cash resulting from working capital was $(310) million and $29 million during the six months ended June 30, 2026 and 2025, respectively. Net cash outflows in 2026 were primarily due to net increase in customer receivables and unbilled revenue driven by higher customer rates and sales volume. Net cash inflows in 2025 were primarily due to cash collected from the sale of renewable energy credits under a CPUC-established program. Net cash provided by (used in) regulatory assets and liabilities, including changes in net over or undercollections recorded in balancing accounts, was $460 million and $(1.6) billion during the six months ended June 30, 2026 and 2025, respectively. Net cash inflows in 2026 were mainly driven by GHG revenue received but not yet disbursed to residential customers as climate credits. In 2026, the timing of climate credits distribution shifted from April to August and September of the year. Net cash outflow in 2025 was primarily due to cost recoveries authorized under the TKM Settlement Agreement in 2025, which was a non-cash offset in net income. 18 Table of Contents Net Cash Provided by Financing Activities The following table summarizes cash provided by financing activities for the six months ended June 30, 2026 and 2025. Issuances of debt are discussed in "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements." Six months ended June 30, Change (in millions) 2026 2025 2026 vs. 2025 Long-term debt issued, net of premium, discount and issuance costs $ 3,503 $ 2,962 $ 541 Long-term debt repaid (1,677) (326) (1,351) Short-term debt repaid (282) — (282) Commercial paper financing, net (6) (795) 789 Preference stock redeemed (119) — (119) Payment of common stock dividends to Edison International Parent (860) (860) — Payment of preference stock dividends (52) (67) 15 Other (7) (17) 10 Net cash provided by financing activities $ 500 $ 897 $ (397) Net Cash Used in Investing Activities Cash flows used in investing activities are primarily due to total capital expenditures of $3.4 billion and $3.1 billion for six months ended June 30, 2026 and 2025, respectively. In addition, SCE had a net (purchase) redemption of nuclear decommissioning trust investments of $(18) million and $100 million during the six months ended June 30, 2026 and 2025, respectively. See "Nuclear Decommissioning Activities" below for further discussion. Nuclear Decommissioning Activities SCE's condensed consolidated statements of cash flows include nuclear decommissioning activities, which are reflected in the following line items: Six months ended June 30, Change (in millions) 2026 2025 2026 vs. 2025 Net cash provided by (used in) operating activities: Net earnings from nuclear decommissioning trust investments $ 52 $ 13 $ 39 SCE's decommissioning costs (44) (103) 59 8 (90) 98 Net cash (used in) provided by investing activities: Proceeds from sale of investments 3,666 2,680 986 Purchases of investments (3,684) (2,580) (1,104) (18) 100 (118) Net cash (outflow) inflow $ (10) $ 10 $ (20) Net cash provided by (used in) operating activities relates to interest and dividends less administrative expenses, taxes, and SCE's decommissioning costs. Investing activities represent the purchase and sale of investments within the nuclear decommissioning trusts, including the reinvestment of earnings from nuclear decommissioning trust investments. The net cash impact reflects timing of decommissioning payments ($44 million and $103 million in 2026 and 2025, respectively) and reimbursements to SCE from the nuclear decommissioning trust ($41 million and $115 million in 2026 and 2025, respectively). The net cash outflow in 2026 also includes a $7 million insurance distribution that SCE received and contributed to the decommissioning trust. 19 Table of Contents Edison International Parent and Other The table below sets forth condensed historical cash flow from operations for Edison International Parent and Other, including intercompany eliminations. Six months ended June 30, Change (in millions) 2026 2025 2026 vs. 2025 Net cash used in operating activities $ (203) $ (145) $ (58) Net cash provided by financing activities 202 94 108 Net cash provided by (used in) investing activities 9 (3) 12 Net increase (decrease) in cash, cash equivalents and restricted cash $ 8 $ (54) $ 62 Net Cash Used in Operating Activities Net cash used in operating activities increased by $58 million in 2026 compared to 2025. This was primarily due to a $77 million cash inflow in 2025 from an intercompany tax settlement with SCE, offset by $19 million lower operating expense in 2026. Net Cash Provided by Financing Activities Net cash provided by financing activities was as follows: Six months ended June 30, Change (in millions) 2026 2025 2026 vs. 2025 Dividends paid to Edison International common shareholders $ (675) $ (637) $ (38) Dividends paid to Edison International preferred shareholders (13) (44) 31 Dividends received from SCE 860 860 — Long-term debt issuance, net of discount and issuance costs 1,042 539 503 Long-term debt repayments — (400) 400 Issuance of short-term debt 3 18 (15) Repayments of short-term debt (155) — (155) Common stock repurchased (30) (29) (1) Preferred stock repurchased (419) — (419) Commercial paper financing, net (420) (217) (203) Other 9 4 5 Net cash provided by financing activities $ 202 $ 94 $ 108 Contingencies Edison International's and SCE's material contingencies are discussed in "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies." MARKET RISK EXPOSURES Edison International's and SCE's primary market risks are described in the 2025 Form 10-K, and there have been no material changes during the six months ended June 30, 2026. For further discussion of market risk exposures, including commodity price risk, and credit risk, see "Notes to Condensed Consolidated Financial Statements—Note 4. Fair Value Measurements" and "Note 6. Derivative Instruments." CRITICAL ACCOUNTING ESTIMATES AND POLICIES For a discussion of Edison International's and SCE's critical accounting policies, see "Critical Accounting Estimates and Policies" in the 2025 MD&A. In addition, for information regarding the Wildfire Fund, see "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Wildfire Fund." 20 Table of Contents NEW ACCOUNTING GUIDANCE New accounting guidance is discussed in "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—New Accounting Guidance."