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Goodwill and Intangible Assets
Nov. 18, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
NOTE 11. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in Dominion Energy and Dominion Energy Gas’ carrying amount and segment allocation of goodwill are presented below:
                                 
 
Power
        Generation
 
Gas
      Infrastructure
   
Power
            Delivery
   
Corporate
      and Other
(1)
   
                Total
 
                                 
(millions)
 
 
   
   
   
 
Dominion Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
(2)
  $
 
 
 
 
 
 
 
 
 
 
 
 
1,422
  $
 
 
 
 
 
 
 
 
 
 
 
 
4,051
    $
 
 
 
 
 
926
    $
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    $
 
 
 
 
6,399
 
Dominion Energy Questar Combination
   
   
6
(3)
     
     
     
6
 
                                 
Balance at December 31, 2017
(2)
  $
1,422
  $
4,057
    $
926
    $
    $
6,405
 
Purchase Accounting Adjustment
 
 
 
 
5
 
 
 
 
 
 
 
 
 
5
 
                                 
Balance at December 31, 2018
(2)
 
$
1,422
 
$
4,062
 
 
$
926
 
 
$
 
 
$
6,410
 
                                 
Dominion Energy Gas
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
(2)
  $
  $
1,466
    $
    $
    $
1,466
 
No events affecting goodwill
   
   
     
     
     
 
                                 
Balance at December 31, 2017
(2)
  $
  $
1,466
    $
    $
    $
1,466
 
Purchase Accounting Adjustment
 
 
 
 
5
 
 
 
 
 
 
 
 
 
5
 
                                 
Balance at December 31, 2018
(2)
 
$
 
$
1,471
 
 
$
 
 
$
 
 
$
1,471
 
                                 
(1)
Goodwill recorded at the Corporate and Other segment is allocated to the primary operating segments for goodwill impairment testing purposes.
(2)
Goodwill amounts do not contain any accumulated impairment losses.
(3)
See Note 3.
 
Other Intangible Assets
The Companies’ other intangible assets are subject to amortization over their estimated useful lives. Dominion Energy’s amortization expense for intangible assets was $82 million, $80 million and $73 million for 2018, 2017 and 2016, respectively. In 2018, Dominion Energy acquired $127 million of intangible assets, primarily representing software and
right-of-use
assets, with an estimated weighted-average amortization period of approximately 15 years. Amortization expense for Virginia Power’s intangible assets was $31 million for both 2018 and 2017 and $29 million for 2016. In 2018, Virginia Power acquired $49 million of intangible assets, primarily representing software, with an estimated weighted-average amortization period of 11 years. Dominion Energy Gas’ amortization expense for intangible assets was $11 million, $9 million and $11 million for 2018, 2017 and 2016, respectively. In 2018, Dominion Energy Gas acquired $35 million of intangible assets, primarily representing a contractual agreement with a local taxing authority, software and
right-of-use
assets, with an estimated weighted-average amortization period of approximately 13 years. The components of intangible assets are as follows:
       
 
2018
   
2017
 
       
At December 31,
 
Gross Carrying    
Amount
 
 
    Accumulated
    Amortization      
 
 
    Gross Carrying      
    Amount
   
    Accumulated
    Amortization      
 
                         
(millions)
 
   
   
   
 
Dominion Energy
 
 
 
 
 
 
 
 
 
 
 
 
Software, licenses and other
 
$
1,033
 
 
    $
363
 
 
    $
1,043
   
    $
358
 
                         
Virginia Power
 
 
 
 
 
 
 
 
 
 
 
 
Software, licenses and other
 
$
384
 
 
    $
134
 
 
    $
347
   
    $
114
 
                         
Dominion Energy Gas
 
 
 
 
 
 
 
 
 
 
 
 
Software, licenses and other
 
$
179
 
 
    $
64
 
 
    $
151
   
    $
60
 
                         
Annual amortization expense for these intangible assets is estimated to be as follows:
                                 
 
2019
   
2020
   
2021
   
2022
   
2023
 
                                 
(millions)
 
   
   
   
   
 
Dominion Energy
 
$
                 
67
 
 
$
             
56
 
 
$
                 
44
 
 
$
             
34
 
 
$
             
23
 
                                 
Virginia Power
 
$
29
 
 
$
23
 
 
$
16
 
 
$
12
 
 
$
6
 
                                 
Dominion Energy Gas
 
$
10
 
 
$
9
 
 
$
9
 
 
$
7
 
 
$
6