Held for Sale and Discontinued Operations (CenterPoint Energy and CERC) (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations Balance Sheet [Table Text Block]

The assets and liabilities of the Infrastructure Services and Energy Services Disposal Groups classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, include the following:

	March 31, 2020
	CenterPoint Energy								CERC
	Infrastructure Services Disposal Group		Energy Services Disposal Group			Total			Energy Services Disposal Group
	(in millions)
Receivables, net	$	216	$	355		$	571		$	355
Accrued unbilled revenues	57		2			59			2
Natural gas inventory	—		52			52			52
Materials and supplies	6		—			6			—
Non-trading derivative assets	—		213			213			213
Property, plant and equipment, net	313		29			342			29
Goodwill	138		—			138			—
Loss on assets held for sale	—		(70		)	(70		)	(70		)
Other	242		94			336			94
Total current assets held for sale	$	972	$	675		$	1,647		$	675
Accounts payable	$	46	$	206		$	252		$	206
Taxes accrued	2		—			2			—
Non-trading derivative liabilities	—		36			36			36
Benefit obligations	—		4			4			4
Other	60		29			89			29
Total current liabilities held for sale	$	108	$	275		$	383		$	275

	December 31, 2019
	CenterPoint Energy						CERC
	Infrastructure Services Disposal Group		Energy Services Disposal Group		Total		Energy Services Disposal Group
	(in millions)
Receivables, net	$	192	$	445	$	637	$	445
Accrued unbilled revenues	109		8		117		8
Natural gas inventory	—		67		67		67
Materials and supplies	6		—		6		—
Non-trading derivative assets	—		136		136		136
Other	4		35		39		35
Total current assets held for sale	311		691		1,002		691
Property, plant and equipment, net	295		26		321		26
Goodwill	220		62		282		62
Non-trading derivative assets	—		58		58		58
Other	234		67		301		67
Total non-current assets held for sale	749		213		962		213
Total assets held for sale	$	1,060	$	904	$	1,964	$	904
Accounts payable	$	45	$	299	344		$	299
Taxes accrued	2		—		2		—
Non-trading derivative liabilities	—		44		44		44
Other	40		25		65		25
Total current liabilities held for sale	87		368		455		368
Non-trading derivative liabilities	—		14		14		14
Benefit obligations	—		4		4		4
Other	16		9		25		9
Total non-current liabilities held for sale	16		27		43		27
Total liabilities held for sale	$	103	$	395	$	498	$	395

Disposal Groups, Including Discontinued Operations [Table Text Block]

Revenues and expenses incurred by CenterPoint Energy and CERC for natural gas transportation and supply are as follows:

	Three Months Ended March 31,
	2020		2019		2020		2019
	CenterPoint Energy				CERC
	(in millions)
Transportation revenue	$	16	$	16	$	16	$	16
Natural gas expense	45		64		44		63

The Infrastructure Services Disposal Group provides pipeline construction and repair services to CenterPoint Energy’s and CERC’s NGD. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by NGD utilities for these pipeline construction and repair services are not eliminated in consolidation when capitalized and included in rate base by the NGD utility. Amounts charged for these services that are not capitalized are included primarily in Operation and maintenance expenses. Fees incurred by CenterPoint Energy’s and CERC’s NGD for pipeline construction and repair services are as follows:

	Three Months Ended March 31,
	2020		2019 (1)		2020		2019 (1)
	CenterPoint Energy				CERC
	(in millions)
Pipeline construction and repair services capitalized	$	34	$	19	$	—	$	1
Pipeline construction and repair service charges in operations and maintenance expense	1		4		1		1

(1)

Represents charges for the period February 1, 2019 through March 31, 2019 only due to the Merger.

A summary of the Infrastructure Services and Energy Services Disposal Groups presented in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income, as applicable, is as follows:

	Three Months Ended March 31,
	2020			2019 (1)			2020			2019		2020			2019		2020			2019
	CenterPoint Energy																CERC
	Infrastructure Services Disposal Group						Energy Services Disposal Group					Total					Energy Services Disposal Group
	(in millions)
Revenues	$	222		$	146		$	886		$	1,242	$	1,108		$	1,388	$	886		$	1,242
Expenses:															—
Non-utility cost of revenues	44			43			808			1,185		852			1,228		808			1,185
Operation and maintenance	163			96			20			17		183			113		20			17
Depreciation and amortization	—			9			—			4		—			13		—			4
Taxes other than income taxes	1			—			1			—		2			—		1			—
Total	208			148			829			1,206		1,037			1,354		829			1,206
Income (loss) from Discontinued Operations before income taxes	14			(2		)	57			36		71			34		57			36
Loss from classification to held for sale (2)	96			—			138			—		234			—		132			—
Income tax expense (benefit)	(5		)	—			(12		)	8		(17		)	8		(11		)	8
Net income (loss) from Discontinued Operations	$	(77	)	$	(2	)	$	(69	)	$	28	$	(146	)	$	26	$	(64	)	$	28

(1) Reflects February 1, 2019 to March 31, 2019 results only due to the Merger.

(2)

Loss from classification to held for sale is inclusive of goodwill impairment and, for CenterPoint Energy, its costs to sell.

Disposal Groups, Including Discontinued Operations Cash Flow [Table Text Block]

CenterPoint Energy and CERC have elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. Long-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures related to the Infrastructure Services and Energy Services Disposal Groups, as applicable:

	Three Months Ended March 31,
	2020		2019		2020		2019		2020		2019
	CenterPoint Energy								CERC
	Infrastructure Services Disposal Group				Energy Services Disposal Group				Energy Services Disposal Group
	(in millions)
Depreciation and amortization	$	—	$	9	$	—	$	4	$	—	$	4
Amortization of intangible assets in Non-utility cost of revenues	—		2		—		—		—		—
Write-down of natural gas inventory	—		—		3		1		3		1
Capital expenditures	16		27		1		1		1		1
Non-cash transactions:
Accounts payable related to capital expenditures	2		3		4		6		4		6