Held for Sale and Divestitures (CenterPoint Energy and CERC) (Tables)

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disclosure of Long Lived Assets Held-for-sale

The assets and liabilities of the Arkansas and Oklahoma Natural Gas businesses classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, included the following:

	June 30, 2021
	CenterPoint Energy		CERC
	(in millions)
Receivables, net	$	28	$	28
Accrued unbilled revenues	14		14
Natural gas inventory	20		20
Materials and supplies	8		8
Property, plant and equipment, net	1,238		1,238
Goodwill	403		146
Regulatory assets	386		386
Other	95		95
Total current assets held for sale	$	2,192	$	1,935
Short term borrowings (1)	$	14	$	14
Accounts payable	20		20
Taxes accrued	5		5
Customer deposits	12		12
Regulatory liabilities	286		286
Other	135		135
Total current liabilities held for sale	$	472	$	472

(1)Represents third-party AMAs associated with utility distribution service in Arkansas and Oklahoma. These transactions are accounted for as an inventory financing. For further information, see Note 12.

The pre-tax income for the Arkansas and Oklahoma Natural Gas businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in millions)
Income from Continuing Operations Before Income Taxes	$	10	$	8	$	62	$	60

Disposal Groups, Including Discontinued Operations

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 June 30, 2020
	CenterPoint Energy						CERC
	Infrastructure Services Disposal Group		Energy Services Disposal Group		Total		Energy Services Disposal Group
	(in millions)
Revenues	$	28	$	281	$	309	$	281
Expenses:
Non-utility cost of revenues	6		300		306		300
Operation and maintenance	21		14		35		14
Taxes other than income taxes	—		2		2		2
Total	27		316		343		316
Income (loss) from discontinued operations before income taxes	1		(35)		(34)		(35)
Gain on sale, net	3		39		42		39
Income tax expense	30		8		38		8
Net loss from discontinued operations	$	(26)	$	(4)	$	(30)	$	(4)

	Six Months Ended June 30, 2020
	CenterPoint Energy						CERC
	Infrastructure Services Disposal Group		Energy Services Disposal Group		Total		Energy Services Disposal Group
	(in millions)
Revenues	$	250	$	1,167	$	1,417	$	1,167
Expenses:
Non-utility cost of revenues	50		1,108		1,158		1,108
Operation and maintenance	184		34		218		34
Taxes other than income taxes	1		3		4		3
Total	235		1,145		1,380		1,145
Income from discontinued operations before income taxes	15		22		37		22
Loss on classification to held for sale, net (1)	(93)		(99)		(192)		(93)
Income tax expense (benefit)	25		(4)		21		(3)
Net loss from discontinued operations	$	(103)	$	(73)	$	(176)	$	(68)

(1)Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell.

Transactions between CES and CenterPoint Energy’s and CERC’s Natural Gas businesses that were previously eliminated in consolidation have been reflected in continuing operations until June 1, 2020, which was the date of closing of the sale of the Energy Services Disposal Group. Revenues and expenses included in continuing operations were as follows:

	Three Months Ended June 30, 2020
	CenterPoint Energy		CERC
	(in millions)
Transportation revenue	$	18	$	18
Natural gas expense	3		3
	Six Months Ended June 30, 2020
	CenterPoint Energy		CERC
	(in millions)
Transportation revenue	$	34	$	34
Natural gas expense	48		47

Fees incurred by CenterPoint Energy’s and CERC’s Natural Gas segment for pipeline construction and repair services are as follows:

	Six Months Ended June 30, 2020
	CenterPoint Energy		CERC
	(in millions)
Pipeline construction and repair services capitalized	$	34	$	—
Pipeline construction and repair service charges in operations and maintenance expense	1		1

(1)Represents charges for the period from January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group.

Disposal Groups, Including Discontinued Operations Cash Flow

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:

	Six Months Ended June 30, 2020
	CenterPoint Energy				CERC
	Infrastructure Services Disposal Group		Energy Services Disposal Group		Energy Services Disposal Group
	(in millions)
Write-down of natural gas inventory	$	—	$	3	$	3
Capital expenditures	16		1		1
Non-cash transactions:
Accounts payable related to capital expenditures	2		4		4