Operating Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Operating Segments

13. OPERATING SEGMENTS

Operating segments include Electric Operations and Gas Distribution and are organized primarily on the basis of products and services sold.

In connection with the SCANA Combination, effective January 2019, reportable segments were changed to include a Corporate and Other segment and to utilize comprehensive income (loss) as the measure of segment profitability. The Corporate and Other segment includes specific items attributable to DESC's operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or in allocating resources. Corresponding amounts in prior periods have been recast to conform to the current presentation.

In the nine months ended September 30, 2019, DESC reported after-tax net expenses of $1.4 billion for specific items in the Corporate and Other segment, with $1.4 billion attributable to its operating segments.

The net expense for specific items attributable to DESC’s operating segments in 2019 primarily related to the impact of the following items:

• A $1.0 billion ($756 million after-tax) charge for refunds of amounts previously collected from retail electric customers for the NND Project, attributable to Electric Operations;

• $266 million ($200 million after-tax) of charges associated with litigation, attributable to Electric Operations;

• A $198 million tax charge for $264 million of income tax-related regulatory assets for which DESC committed to forgo recovery, attributable to Electric Operations;

• A $114 million ($86 million after-tax) charge for utility plant primarily for which DESC committed to forgo recovery, attributable to Electric Operations;

• $90 million ($68 million after-tax) of merger and integration-related costs associated with the SCANA Combination, including a $75 million ($56 million after-tax) charge related to a voluntary retirement program, attributable to:

• Electric Operations ($61 million after-tax); and

• Gas Distribution ($7 million after-tax); and

• $59 million tax charges for changes in unrecognized tax benefits, attributable to Electric Operations.

(millions)	External Revenue			Comprehensive Income (Loss) Available (Attributable) to Common Shareholder
Three Months Ended September 30, 2019
Electric Operations	$	728		$	169
Gas Distribution		67			(1	)
Corporate and Other		—			(25	)
Adjustments/Eliminations		—			—
Consolidated Total	$	795		$	143
Three Months Ended September 30, 2018
Electric Operations	$	670		$	112
Gas Distribution		69			(7	)
Corporate and Other		—			(1	)
Adjustments/Eliminations		—			(6	)
Consolidated Total	$	739		$	98
Nine Months Ended September 30, 2019
Electric Operations	$	1,875		$	321
Gas Distribution		292			13
Corporate and Other		(1,009	)		(1,364	)
Adjustments/Eliminations		—			(14	)
Consolidated Total	$	1,158		$	(1,044	)
Nine Months Ended September 30, 2018
Electric Operations	$	1,770		$	242
Gas Distribution		304			22
Corporate and Other		—			(1	)
Adjustments/Eliminations		—			(15	)
Consolidated Total	$	2,074		$	248