Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 11. Goodwill and Intangible Assets

Goodwill

During the fourth quarter of 2019, Dominion Energy realigned its segments which resulted in the formation of five primary operating segments and Dominion Energy Gas finalized a restructuring that was accounted for as a reorganization of entities under common control. The historical information presented herein has been recast to the current segment presentation and the current structure of Dominion Energy Gas. With respect to the segment realignment, goodwill has been reassigned to the affected reporting units and operating segments using a relative fair value allocation approach. The changes in Dominion Energy’s and Dominion Energy Gas’ carrying amount and segment allocation of goodwill are presented below:

	Dominion Energy Virginia		Gas Transmission & Storage			Gas Distribution		Dominion Energy South Carolina		Contracted Generation		Corporate and Other		Total
(millions)
Dominion Energy
Balance at December 31, 2017(1)	$	2,106	$	1,561		$	2,496	$	—	$	242		$—	$	6,405
Purchase Accounting Adjustment		—		4			1		—		—		—		5
Balance at December 31, 2018(1)	$	2,106	$	1,565		$	2,497	$	—	$	242		$—	$	6,410
SCANA Combination(2)		—		73			1,015		1,521		—		—		2,609
Contribution of SEMI to Wrangler(3)		—		(73	)		—		—		—		—		(73	)
Balance at December 31, 2019(1)	$	2,106	$	1,565		$	3,512	$	1,521	$	242		$—	$	8,946
Dominion Energy Gas
Balance at December 31, 2017(1)	$	—	$	1,466		$	—	$	—	$	—		$—	$	1,466
Purchase Accounting Adjustment		—		5			—		—		—		—		5
Balance at December 31, 2018(1)	$	—	$	1,471		$	—	$	—	$	—		$—	$	1,471
No events affecting goodwill		—		—			—		—		—		—		—
Balance at December 31, 2019(1)	$	—	$	1,471		$	—	$	—	$	—		$—	$	1,471

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

(2) See Note 3 for discussion of Dominion Energy’s acquisitions.

(3) See Note 9 for additional 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 $106 million, $82 million and $80 million for 2019, 2018 and 2017, respectively. In 2019, in addition to intangible assets acquired in the SCANA Combination, Dominion Energy acquired $120 million of intangible assets, primarily representing software and right-of-use assets, with an estimated weighted-average amortization period of approximately 10 years. Amortization expense for Virginia Power’s intangible assets was $30 million for 2019 and $31 million for both 2018 and 2017. In 2019, Virginia Power acquired $52 million of intangible assets, primarily representing software, with an estimated weighted-average amortization period of 8 years. Dominion Energy Gas’ amortization expense for intangible assets was $11 million for both 2019 and 2018 and $9 million for 2017. In 2019, Dominion Energy Gas acquired $7 million of intangible assets, primarily representing software and right-of-use assets, with an estimated weighted-average amortization period of approximately 29 years.

The components of intangible assets are as follows:

	2019				2018
At December 31,	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
(millions)
Dominion Energy
Software, licenses and other	$	1,340		$549	$	1,033		$363
Virginia Power
Software, licenses and other	$	406		$135	$	384		$134
Dominion Energy Gas
Software, licenses and other	$	178		$  72	$	179		$  64

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

	2020		2021		2022		2023		2024
(millions)
Dominion Energy	$	88	$	78	$	70	$	56	$	49
Virginia Power	$	25	$	19	$	15	$	8	$	6
Dominion Energy Gas	$	9	$	8	$	8	$	5	$	4