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Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The table below shows the allocation of the purchase price to the assets acquired and liabilities assumed at closing, which reflects certain adjustments related to income taxes, as discussed in Note 5, from the preliminary valuation recognized during the measurement period.

	Amount
(millions)
Total current assets⁽¹⁾		$	1,782
Investments⁽²⁾			224
Property, plant and equipment⁽³⁾⁽⁴⁾			11,006
Goodwill			2,609
Regulatory assets⁽⁵⁾			3,940
Other deferred charges and other assets, including intangible assets⁽⁶⁾			430
Total Assets			19,991
Total current liabilities⁽⁷⁾			1,556
Long-term debt			6,707
Deferred income taxes			1,068
Regulatory liabilities			2,706
Other deferred credits and other liabilities⁽⁸⁾			1,115
Total Liabilities			13,152
Total purchase price⁽⁹⁾		$	6,839

(1)	Includes $389 million of cash, restricted cash and equivalents, of which $115 million is considered restricted.

(2)	Includes $31 million for equity method investments. The fair value adjustment on the equity method investments is considered to be equity method goodwill and is not amortized.

(3)

Includes $105 million of certain property, plant and equipment associated with the NND Project for which Dominion Energy committed to forgo recovery in accordance with the SCANA Merger Approval Order. As a result, Dominion Energy’s Consolidated Statements of Income for the year ended December 31, 2019 include a charge of $105 million ($79 million after-tax), included in impairment of assets and other charges (reflected in the Corporate and Other segment).

(4)	Nonregulated property, plant and equipment, excluding land, will be depreciated on a straight-line basis over the remaining useful lives of such property, primarily ranging from 5 to 78 years.

(5)	Includes $258 million of certain income tax-related regulatory assets associated with the NND Project for which Dominion Energy committed to forgo recovery in accordance with the SCANA Merger Approval Order. See Note 5 for additional information.

(6)	Intangible assets have an estimated weighted-average amortization period of approximately five years.

(7)	Includes $40 million outstanding under letters of credit advances, which were repaid in January 2019, as well as $173 million outstanding commercial paper under various credit facilities. All such credit facilities were terminated in 2019.

(8)	Includes a $379 million pension and other postretirement benefit liability.

(9)	Includes stock-based compensation awards with a fair value of $21 million.

Business Acquisition, Pro Forma Information

The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of the combined company.

	Twelve Months Ended December 31,
	2019⁽¹⁾		2018⁽¹⁾
(millions, except EPS)
Operating Revenue	$	15,408	$	15,344
Net income attributable to Dominion Energy		3,266		2,081
Earnings Per Common Share – Basic	$	4.04	$	2.78
Earnings Per Common Share – Diluted	$	4.00	$	2.77

(1)	Amounts include adjustments for non-recurring costs directly related to the SCANA Combination.

GT&S Transaction | Dominion Energy Gas Holdings, LLC

Results of Operations Reported within Discontinued Operations

The following table represents selected information regarding the results of operations, which are reported within discontinued operations in Dominion Energy’s Consolidated Statements of Income:

	Year Ended December 31, 2020						Year Ended December 31, 2019				Year Ended December 31, 2018
	GT&S Transaction⁽¹⁾			Q-Pipe Transaction			GT&S Transaction		Q-Pipe Transaction		GT&S Transaction		Q-Pipe Transaction
(millions)
Operating revenue	$	1,710		$	246		$	2,213	$	251	$	2,134	$	247
Operating Expense⁽²⁾⁽³⁾		1,289			96			1,367		131		1,663		135
Other income (loss)		88			1			58		4		68		5
Interest and related charges⁽⁴⁾		372			20			267		20		183		20
Income (loss) before income taxes		137			131			637		104		356		97
Income tax expense (benefit)		334			(9	)		120		23		40		18
Net income (loss) including noncontrolling interests		(197	)		140			517		81		316		79
Noncontrolling interests		106			—			11		—		92		—
Net income (loss) attributable to Dominion Energy	$	(303	)	$	140		$	506	$	81	$	224	$	79

(1)	Operations associated with the GT&S Transaction are through the November 1, 2020 settlement date.

(2)

GT&S Transaction includes a charge of $482 million ($359 million after-tax) recorded in the second quarter of 2020 associated with the probable abandonment of a significant portion of the Supply Header Project as well as the establishment of a $75 million ARO as a result of the cancellation of the Atlantic Coast Pipeline Project. It also includes charges of $219 million ($165 million after-tax) associated with the impairment of certain gathering and processing assets, $127 million ($92 million after-tax) associated with the disallowance of FERC-regulated plant and $37 million ($28 million after-tax) write-off associated with the Eastern Market Access Project all recorded in 2018.

(3)	GT&S Transaction includes gains on sales of assets recorded in 2018 totaling $115 million ($83 million after-tax), associated with the conveyance of Marcellus Shale and Utica and Point Pleasant Shale acreage underneath its natural gas storage fields.

(4)	GT&S Transaction includes a loss of $237 million ($178 million after-tax) recorded in the third quarter of 2020 associated with cash flow hedges of debt-related items that were determined to be probable of not occurring.

Schedule of Major Classes of Assets and Liabilities Reported As Held for Sale in Discontinued Operations

The carrying amounts of major classes of assets and liabilities relating to the disposal groups, which are reported as held for sale in Dominion Energy’s Consolidated Balance Sheets, were as follows:

	At December 31, 2020⁽¹⁾		At December 31, 2019
	Q-Pipe Transaction		GT&S Transaction		Q-Pipe Transaction
(millions)
Current assets⁽²⁾	$	47	$	445	$	49
Equity method investments⁽³⁾		35		276		36
Property, plant and equipment, net		1,113		10,764		1,103
Other deferred charges and other assets, including goodwill⁽⁴⁾and intangible assets		224		1,553		225
Current liabilities⁽⁵⁾		30		1,002		37
Long-term debt		426		4,401		425
Other deferred credits and liabilities		154		773		155

(1)	All amounts at December 31, 2020 are classified as current in Dominion Energy’s Consolidated Balance Sheets.

(2)	Includes cash and cash equivalents of $20 million as of December 31, 2019 within the GT&S Transaction and $7 million and $11 million as of December 31, 2020 and December 31, 2019, respectively, within the Q-Pipe Transaction.

(3)	Comprised of equity method investments in Iroquois and JAX LNG within the GT&S Transaction and White River Hub within the Q-Pipe Transaction.

(4)	Includes goodwill of $1.4 billion at December 31, 2019 within the GT&S Transaction and $191 million at both December 31, 2020 and December 31, 2019 within the Q-Pipe Transaction.

(5)	Includes current portions of long-term debt of $699 million as of December 31, 2019, within the GT&S Transaction.

Capital Expenditures and Significant Noncash Items Relating to the Disposal Groups

Capital expenditures and significant noncash items relating to the disposal groups included the following:

	Year Ended December 31, 2020				Year Ended December 31, 2019				Year Ended December 31, 2018
	GT&S Transaction⁽¹⁾		Q-Pipe Transaction		GT&S Transaction		Q-Pipe Transaction		GT&S Transaction		Q-Pipe Transaction
(millions)
Capital expenditures	$	292	$	38	$	386	$	42	$	728	$	34
Significant noncash items
Impairment of assets and other charges		469		—		13		1		391		—
Charge related to a voluntary retirement program		—		—		19		3		—		—
Depreciation, depletion and amortization		177		27		322		51		283		57
Accrued capital expenditures		—		1		25		2		56		2

(1)	Operations associated with the GT&S Transaction are through the November 1, 2020 settlement date.