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

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by Reportable Segments [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 December 31, 2019 are as follows:

	December 31, 2018		Additions (1)		Impairment		December 31, 2019
	(in millions)
Indiana Electric Integrated	$	—	$	1,121	$	—	$	1,121
Natural Gas Distribution	746		2,566		—		3,312
Energy Services (2)	110		—		48		62
Infrastructure Services	—		220		—		220
Corporate and Other	11		438		—		449
Total	$	867	$	4,345	$	48	$	5,164

(1) This represents the allocation of goodwill to reportable segments from the Merger, changes from preliminary amounts previously reported and includes the final determination of fair value for each reportable segment. See Note 4.

(2) Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012. As of December 31, 2019, CenterPoint Energy and CERC identified a triggering event to perform an interim goodwill impairment test and recognized a goodwill impairment on their Energy Services reporting unit which is included in Goodwill impairment on CenterPoint Energy’s and CERC’s Consolidated Statements of Income.

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

	December 31, 2018		Impairment		December 31, 2019
			(in millions)
Natural Gas Distribution	$	746	$	—	$	746
Energy Services (1)	110		48		62
Corporate and Other	11		—		11
Total	$	867	$	48	$	819

(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 Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CERC’s Statements of Consolidated Income.

	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
	(in millions)
Customer relationships	$	86	$	(32	)	$	54	$	86	$	(27	)	$	59
Covenants not to compete	4		(4		)	—		4		(3		)	1
Other	16		(14		)	2		16		(11		)	5
Total	$	106	$	(50	)	$	56	$	106	$	(41	)	$	65

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

	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
	(in millions)
Customer relationships (1)	$	286	$	(43	)	$	243	$	86	$	(27	)	$	59
Covenants not to compete	4		(4		)	—		4		(3		)	1
Trade names (1)	58		(5		)	53		—		—			—
Construction backlog (1) (2)	27		(23		)	4		—		—			—
Operation and maintenance       agreements (1) (2)	12		(1		)	11		—		—			—
Other (1)	24		(14		)	10		16		(11		)	5
Total	$	411	$	(90	)	$	321	$	106	$	(41	)	$	65

(1) The fair value of intangible assets acquired through acquisitions has been finalized. See Note 4.

(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 Statements of Consolidated Income.

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

	Year Ended December 31,
	2019		2018		2017
	(in millions)
Amortization expense of intangible assets recorded in    Depreciation and amortization (1) (2)	$	25	$	10	$	13
Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2)	24		—		—

(1) Includes $17 million for the year ended December 31, 2019 of amortization expense related to intangibles acquired in the Merger.

(2)

The fair value of intangible assets, and related amortization assumptions, acquired through acquisitions during the year ended December 31, 2019, has been finalized. See Note 4.

	Year Ended December 31,
	2019		2018		2017
	(in millions)
Amortization expense of intangible assets recorded in    Depreciation and amortization	$	9	$	10	$	13

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)
2020	$	29	$	6
2021	25		6
2022	25		6
2023	24		5
2024	22		5