Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 11. GOODWILL AND INTANGIBLE ASSETS

Goodwill

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


	Power Generation		Gas Infrastructure			Power Delivery		Corporate and Other⁽¹⁾		Total
(millions)

Dominion Energy
Balance at December 31, 2015⁽²⁾		$1,422		$ 946			$926		$—		$3,294
Dominion Energy Questar Combination		—		3,105	⁽³⁾		—		—		3,105
Balance at December 31, 2016⁽²⁾		$1,422		$4,051			$926		$—		$6,399
Dominion Energy Questar Combination		—		6	⁽³⁾		—		—		6
Balance at December 31, 2017⁽²⁾		$1,422		$4,057			$926		$—		$6,405
Dominion Energy Gas
Balance at December 31, 2015⁽²⁾		$ —		$ 542			$ —		$—		$ 542
No events affecting goodwill		—		—			—		—		—
Balance at December 31, 2016⁽²⁾		$ —		$ 542			$ —		$—		$ 542
No events affecting goodwill		—		—			—		—		—
Balance at December 31, 2017⁽²⁾		$ —		$ 542			$ —		$—		$ 542

(1)

Goodwill recorded at the Corporate and Other segment is allocated to the primary operating segments for goodwill impairment testing purposes.

(2)

Goodwill amounts do not contain any accumulated impairment losses.

(3)

See Note 3.

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 $80 million, $73 million and $78 million for 2017, 2016 and 2015, respectively. In 2017, Dominion Energy acquired $147 million of intangible assets, primarily representing software and right-of-use assets, with an estimated weighted-average amortization period of approximately 14 years. Amortization expense for Virginia Power’s intangible assets was $31 million, $29 million and $25 million for 2017, 2016 and 2015, respectively. In 2017, Virginia Power acquired $39 million of intangible assets, primarily representing software, with an estimated weighted-average amortization period of 7 years. Dominion Energy Gas’ amor-tization expense for intangible assets was $14 million, $6 million and $18 million for 2017, 2016 and 2015, respectively. In 2017, Dominion Energy Gas acquired $25 million of intangible assets, primarily representing software and right-of-use assets, with an estimated weighted-average amortization period of approximately 14 years. The components of intangible assets are as follows:

2017

2016

At December 31,

Gross

Carrying

Amount

Accumulated

Amortization

Gross

Carrying

Amount

Accumulated

Amortization

(millions)

Dominion Energy

Software, licenses and other

$1,043

$358

$955

$337

Virginia Power

Software, licenses and other

$ 347

$114

$326

$101

Dominion Energy Gas

Software, licenses and other

$ 165

$ 56

$147

$ 49

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


	2018		2019		2020		2021		2022
(millions)
Dominion Energy	$	78	$	68	$	56	$	43	$	37

Virginia Power	$	30	$	26	$	20	$	13	$	9

Dominion Energy Gas	$	13	$	13	$	12	$	11	$	10

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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