Goodwill and Other Intangibles (CenterPoint Energy and CERC) (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

CenterPoint Energy’s goodwill by reportable segment as of December 31, 2018 and changes in the carrying amount of goodwill as of June 30, 2019 is as follows:

	December 31, 2018		Additions (1)		June 30, 2019
	(in millions)
Indiana Electric Integrated	$	—	$	1,008	$	1,008
Natural Gas Distribution	746		2,529		3,275
Energy Services (2)	110		—		110
Infrastructure Services	—		355		355
Corporate and Other	11		420		431
Total	$	867	$	4,312	$	5,179

(1) CenterPoint Energy is currently assessing the allocation of goodwill to reportable segments subsequent to the Merger. See Note 3.

(2) Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012.

CERC’s goodwill by reportable segment as of June 30, 2019 and December 31, 2018 is as follows:

	June 30, 2019		December 31, 2018
	(in millions)
Natural Gas Distribution	$	746	$	746
Energy Services (1)	110		110
Corporate and Other	11		11
Total	$	867	$	867

(1)

Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012.

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The tables below present information on CERC’s other intangible assets recorded in Other non-current assets on CERC’s Condensed Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CERC’s Condensed Statements of Consolidated Income.

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
	(in millions)
Customer relationships	$	86	$	(30	)	$	56	$	86	$	(27	)	$	59
Covenants not to compete	4		(3		)	1		4		(3		)	1
Other	16		(13		)	3		16		(11		)	5
Total	$	106	$	(46	)	$	60	$	106	$	(41	)	$	65

The tables below present information on CenterPoint Energy’s other intangible assets recorded in Intangible assets, net on CenterPoint Energy’s Condensed Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Condensed Statements of Consolidated Income, unless otherwise indicated.

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
	(in millions)
Customer relationships (1)	$	306	$	(36	)	$	270	$	86	$	(27	)	$	59
Covenants not to compete	4		(3		)	1		4		(3		)	1
Trade names (1)	62		(3		)	59		—		—			—
Construction backlog (1) (2)	28		(11		)	17		—		—			—
Operation and maintenance agreements (1) (2)	12		(1		)	11		—		—			—
Other (1)	24		(12		)	12		16		(11		)	5
Total	$	436	$	(66	)	$	370	$	106	$	(41	)	$	65

(1) The fair value of intangible assets acquired through acquisitions is preliminary and subject to change. See Note 3.

(2)

Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Condensed Statements of Consolidated Income.

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in millions)
Amortization expense of intangible assets recorded in Depreciation and amortization	$	2	$	2	$	5	$	5

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in millions)
Amortization expense of intangible assets recorded in Depreciation and amortization (1)	$	7	$	2	$	13	$	5
Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2)	3		—		12		—

(1) Includes $5 million and $8 million for the three and six months ended June 30, 2019, respectively, of amortization expense related to intangibles acquired in the Merger. The fair value of intangible assets, and related amortization assumptions, acquired through acquisitions during the six months ended June 30, 2019, is preliminary and subject to change. See Note 3.

(2)

Includes a $4 million benefit related to a cumulative catch-up for remeasurement of the purchase price allocation for the three months ended June 30, 2019 related to the operation and maintenance agreements and construction backlog intangibles acquired in the Merger. The fair value of intangible assets, and related amortization assumptions, acquired through acquisitions during the six months ended June 30, 2019, is preliminary and subject to change. See Note 3.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

CenterPoint Energy and CERC estimate that amortization expense of intangible assets with finite lives for the next five years will be as follows:

	Amortization Expense
	CenterPoint Energy		CERC
	(in millions)
Remaining six months of 2019	$	29	$	6
2020	32		6
2021	31		6
2022	32		6
2023	31		5
2024	29		5