Goodwill and Other Intangibles (CenterPoint Energy and CERC)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles (CenterPoint Energy and CERC)

Goodwill and Other Intangibles (CenterPoint Energy and CERC)

Goodwill (CenterPoint Energy and CERC)

CenterPoint Energy’s goodwill by reportable segment is as follows:

	December 31, 2020		Held For Sale		June 30, 2021
	(in millions)
Electric (1)	$	936	$	—	$	936
Natural Gas (2)	3,323		403		2,920
Corporate and Other	438		—		438
Total	$	4,697	$	403	$	4,294

CERC’s goodwill is as follows:

	December 31, 2020		Held For Sale		June 30, 2021
	(in millions)
Goodwill (2)	$	757	$	146	$	611

(1)Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020.

(2)If the disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. As a result, goodwill attributable to the Natural Gas businesses to be disposed is classified as held for sale as of June 30, 2021. Neither CenterPoint Energy nor CERC recognized any goodwill impairments within the Natural Gas reportable segment during the three or six months ended June 30, 2021. For further information, see Note 3.

Other Intangibles (CenterPoint Energy)

The tables below present information on CenterPoint Energy’s intangible assets, excluding goodwill, recorded in Other non-current assets 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, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
	(in millions)
Customer relationships	$	33	$	(10)	$	23	$	33	$	(8)	$	25
Trade names	16		(4)		12		16		(3)		13
Construction backlog (1)	5		(5)		—		5		(5)		—
Operation and maintenance agreements (1)	12		(1)		11		12		(1)		11
Other	2		(1)		1		2		(1)		1
Total	$	68	$	(21)	$	47	$	68	$	(18)	$	50

(1)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.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in millions)
Amortization expense of intangible assets recorded in Depreciation and amortization	$	2	$	2	$	3	$	3
Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas	—		—		—		1

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

	Amortization  Expense
	(in millions)
Remaining six months of 2021	$	3
2022	6
2023	6
2024	5
2025	5
2026	5