Operating Segments

12 Months Ended

Dec. 31, 2019

14. OPERATING SEGMENTS

In December 2019, DESC realigned its segments which resulted in the formation of a single primary operating segment. The historical information presented herein has been recast to reflect the current segment presentation.

The Corporate and Other Segment primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

In 2019, DESC reported after-tax net expenses of $1.6 billion for specific items in the Corporate and Other segment, all of which were attributable to its operating segment.

The net expense for specific items attributable to DESC’s operating segment 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;

•

$590 million ($444 million after-tax) of charges associated with litigation;

•

A $194 million tax charge for $258 million of income tax-related regulatory assets for which DESC committed to forgo recovery;

•

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

•

$100 million ($76 million after-tax) of merger-related costs associated with the SCANA Combination, including a $79 million ($59 million after-tax) charge related to a voluntary retirement program; and

•

$66 million tax charges for changes in unrecognized tax benefits.

In 2018, DESC reported after-tax net expenses of $917 million for specific items in the Corporate and Other segment, all of which were attributable to its operating segment.

The net expense for specific items attributable to DESC’s operating segment in 2018 primarily related to a $1.4 billion ($870 million after-tax) impairment charge associated with the NND Project.

In 2017, DESC reported after-tax net expenses of $690 million for specific items in the Corporate and Other segment, all of which were attributable to its operating segment.

The net expense for specific items attributable to DESC’s operating segment in 2017 related to a $1.1 billion ($690 million after-tax) impairment charge associated with the NND Project.

The following table presents segment information pertaining to DESC’s operations:

Year Ended December 31,	Dominion Energy South Carolina		Corporate and Other			Consolidated Total
(millions)
2019
External revenue	$	2,937	$	(1,008	)	$	1,929
Depreciation and amortization		452		(2	)		450
Interest and related charges		247		13			260
Income tax expense (benefit)		163		(175	)		(12	)
Comprehensive income (loss) available (attributable) to common shareholder		408		(1,647	)		(1,239	)
Capital expenditures		497		—			497
Total assets (billions)		14.3		—			14.3

2018
External revenue	$	2,763	$	(1	)	$	2,762
Depreciation and amortization		327		—			327
Interest and related charges		306		(3	)		303
Income tax expense (benefit)		98		(514	)		(416	)
Comprehensive income (loss) available (attributable) to common shareholder		304		(917	)		(613	)
Capital expenditures		633		—			633
Total assets (billions)		15.0		—			15.0

2017
External revenue	$	3,070	$	—		$	3,070
Depreciation and amortization		312		—			312
Interest and related charges		288		—			288
Income tax expense (benefit)		257		(428	)		(171	)
Comprehensive income (loss) available (attributable) to common shareholder		505		(690	)		(185	)
Capital expenditures		928		—			928