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		Dominion Energy South Carolina		Contracted Energy		Corporate and Other			Total
(millions)
Dominion Energy
Balance at December 31, 2020(1)	$	2,106	$	1,521	$	492	$	110		$	4,229
Acquisition of Birdseye(2)		—		—		24		—			24
Balance at December 31, 2021(1)	$	2,106	$	1,521	$	516	$	110		$	4,253
Sale of Hope(2)		—		—		—		(110	)		(110	)
Balance at December 31, 2022(1)	$	2,106	$	1,521	$	516	$	—		$	4,143

(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 $103 million, $70 million and $63 million for the years ended December 31, 2022, 2021 and 2020, respectively. In 2022, Dominion Energy acquired $478 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)	$	1,723	$	927	$	1,324	$	612
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	$	68	$	61	$	54	$	43	$	25
Virginia Power	$	33	$	30	$	26	$	20	$	10