Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 11. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in Dominion Energy’s carrying amount and segment allocation of goodwill are presented below:

	Dominion Energy Virginia		Gas Distribution			Dominion Energy South Carolina		Contracted Assets		Corporate and Other		Total
(millions)
Dominion Energy
Balance at December 31, 2020(1)	$	2,106	$	3,512		$	1,521	$	242	$	—	$	7,381
Acquisition of Birdseye(2)		—		—			—		24		—		24
Balance at December 31, 2021(1)	$	2,106	$	3,512		$	1,521	$	266	$	—	$	7,405
Sale of Hope(2)		—		(110	)		—		—		—		(110	)
Balance at December 31, 2022(1)	$	2,106	$	3,402		$	1,521	$	266	$	—	$	7,295

(1)Goodwill amounts do not contain any accumulated impairment losses.

(2)See Note 3 for more information.

Other Intangible Assets

The Companies’ other intangible assets are subject to amortization over their estimated useful lives. Dominion Energy’s amortization expense for intangible assets was $115 million, $79 million and $69 million for the years ended December 31, 2022, 2021 and 2020, respectively. In 2022, Dominion Energy acquired $488 million of intangible assets, primarily representing RGGI allowances and software, with an estimated weighted-average amortization period of approximately 3 years. Amortization expense for Virginia Power’s intangible assets was $67 million, $31 million and $28 million for the years ended December 31, 2022, 2021 and 2020, respectively. In 2022, Virginia Power acquired $430 million of intangible assets, primarily representing RGGI allowances and software, with an estimated weighted-average amortization period of 2 years.

The components of intangible assets are as follows:

	2022				2021
At December 31,	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
(millions)
Dominion Energy
Software, licenses and other(1)	$	1,854	$	986	$	1,459	$	675
Virginia Power
Software, licenses and other(1)	$	1,113	$	577	$	685	$	290

(1)Includes $253 million and $158 million of RGGI allowances purchased and consumed in 2022 and 2021, respectively, with deferral to a regulatory asset.

Annual amortization expense for these intangible assets is estimated to be as follows:

		2023		2024		2025		2026		2027
(millions)
Dominion Energy	$	74	$	67	$	59	$	47	$	29
Virginia Power	$	33	$	30	$	26	$	20	$	10