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OPERATING SEGMENTS | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
OPERATING SEGMENTS | NOTE 25. OPERATING SEGMENTS The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:
Primary Operating Segment |  | Description of Operations |  | Dominion Energy |  | Virginia Power |  | Dominion Energy Gas
Power Delivery |  | Regulated electric distribution |  | X |  | X |  |
|  | Regulated electric transmission |  | X |  | X |  |
Power Generation |  | Regulated electric fleet |  | X |  | X |  |
|  | Merchant electric fleet |  | X |  |  |  |
Gas Infrastructure |  | Gas transmission and storage |  | X(1) |  |  |  | X
|  | Gas distribution and storage |  | X |  |  |  | X
|  | Gas gathering and processing |  | X |  |  |  | X
|  | LNG terminalling and storage |  | X |  |  |  |
|  | Nonregulated retail energy marketing |  | X |  |  |  |
(1) | Includes remaining producer services activities.
In addition to the operating segments above, the Companies also report a Corporate and Other segment. DOMINION ENERGY The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt). In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources. In 2017, Dominion Energy reported an after-tax net benefit of $389 million in the Corporate and Other segment, with $861 million of the net benefit attributable to specific items related to its operating segments. The net benefit for specific items in 2017 primarily related to the impact of the following items:
• |  | A $979 million tax benefit resulting from the remeasurement of deferred income taxes as a result of the 2017 Tax Reform Act, primarily attributable to:
| • |  | Gas Infrastructure ($324 million);
| • |  | Power Generation ($655 million); partially offset by
• |  | $158 million ($96 million after-tax) of charges associated with equity method investments in wind-powered generation facilities, attributable to Power Generation.
In 2016, Dominion Energy reported after-tax net expenses of $484 million in the Corporate and Other segment, with $180 million of these net expenses attributable to specific items related to its operating segments. The net expenses for specific items in 2016 primarily related to the impact of the following items:
• |  | A $197 million ($122 million after-tax) charge related to future ash pond and landfill closure costs at certain utility generation facilities, attributable to Power Generation; and
• |  | A $59 million ($36 million after-tax) charge related to an organizational design initiative, attributable to:
| • |  | Power Delivery ($5 million after-tax);
| • |  | Gas Infrastructure ($12 million after-tax); and
| • |  | Power Generation ($19 million after-tax).
In 2015, Dominion Energy reported after-tax net expenses of $391 million in the Corporate and Other segment, with $136 million of these net expenses attributable to specific items related to its operating segments. The net expenses for specific items in 2015 primarily related to the impact of the following items:
• |  | A $99 million ($60 million after-tax) charge related to future ash pond and landfill closure costs at certain utility generation facilities, attributable to Power Generation; and
• |  | An $85 million ($52 million after-tax) write-off of deferred fuel costs associated with Virginia legislation enacted in February 2015, attributable to Power Generation.
The following table presents segment information pertaining to Dominion Energy’s operations:
Year Ended December 31, |  | Power Delivery |  |  | Power Generation |  |  | Gas Infrastructure |  |  | Corporate and Other |  |  | Adjustments & Eliminations |  |  | Consolidated Total |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue from external customers |  |  | $2,206 |  |  |  | $6,676 |  |  |  | $2,832 |  |  |  | $ 16 |  |  |  | $ 856 |  |  |  | $12,586 |
Intersegment revenue |  |  | 22 |  |  |  | 10 |  |  |  | 834 |  |  |  | 610 |  |  |  | (1,476 | ) |  |  | — |
Total operating revenue |  |  | 2,228 |  |  |  | 6,686 |  |  |  | 3,666 |  |  |  | 626 |  |  |  | (620 | ) |  |  | 12,586 |
Depreciation, depletion and amortization |  |  | 593 |  |  |  | 747 |  |  |  | 522 |  |  |  | 43 |  |  |  | — |  |  |  | 1,905 |
Equity in earnings of equity method investees |  |  | — |  |  |  | (181) |  |  |  | 159 |  |  |  | 4 |  |  |  | — |  |  |  | (18 | )
Interest income |  |  | 4 |  |  |  | 92 |  |  |  | 45 |  |  |  | 96 |  |  |  | (155 | ) |  |  | 82 |
Interest and related charges |  |  | 265 |  |  |  | 342 |  |  |  | 109 |  |  |  | 644 |  |  |  | (155 | ) |  |  | 1,205 |
Income tax expense (benefit) |  |  | 334 |  |  |  | 373 |  |  |  | 487 |  |  |  | (1,224 | ) |  |  | — |  |  |  | (30 | )
Net income attributable to Dominion Energy |  |  | 531 |  |  |  | 1,181 |  |  |  | 898 |  |  |  | 389 |  |  |  | — |  |  |  | 2,999 |
Investment in equity method investees |  |  | — |  |  |  | 81 |  |  |  | 1,422 |  |  |  | 41 |  |  |  | — |  |  |  | 1,544 |
Capital expenditures |  |  | 1,433 |  |  |  | 2,275 |  |  |  | 2,149 |  |  |  | 52 |  |  |  | — |  |  |  | 5,909 |
Total assets (billions) |  |  | 16.7 |  |  |  | 29.0 |  |  |  | 28.0 |  |  |  | 12.0 |  |  |  | (9.1 | ) |  |  | 76.6 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue from external customers |  |  | $2,210 |  |  |  | $6,747 |  |  |  | $2,069 |  |  |  | $ (7 | ) |  |  | $ 718 |  |  |  | $11,737 |
Intersegment revenue |  |  | 23 |  |  |  | 10 |  |  |  | 697 |  |  |  | 609 |  |  |  | (1,339 | ) |  |  | — |
Total operating revenue |  |  | 2,233 |  |  |  | 6,757 |  |  |  | 2,766 |  |  |  | 602 |  |  |  | (621 | ) |  |  | 11,737 |
Depreciation, depletion and amortization |  |  | 537 |  |  |  | 662 |  |  |  | 330 |  |  |  | 30 |  |  |  | — |  |  |  | 1,559 |
Equity in earnings of equity method investees |  |  | — |  |  |  | (16) |  |  |  | 105 |  |  |  | 22 |  |  |  | — |  |  |  | 111 |
Interest income |  |  | — |  |  |  | 74 |  |  |  | 34 |  |  |  | 36 |  |  |  | (78 | ) |  |  | 66 |
Interest and related charges |  |  | 244 |  |  |  | 290 |  |  |  | 38 |  |  |  | 516 |  |  |  | (78 | ) |  |  | 1,010 |
Income tax expense (benefit) |  |  | 308 |  |  |  | 279 |  |  |  | 431 |  |  |  | (363 | ) |  |  | — |  |  |  | 655 |
Net income (loss) attributable to Dominion Energy |  |  | 484 |  |  |  | 1,397 |  |  |  | 726 |  |  |  | (484 | ) |  |  | — |  |  |  | 2,123 |
Investment in equity method investees |  |  | — |  |  |  | 228 |  |  |  | 1,289 |  |  |  | 44 |  |  |  | — |  |  |  | 1,561 |
Capital expenditures |  |  | 1,320 |  |  |  | 2,440 |  |  |  | 2,322 |  |  |  | 43 |  |  |  | — |  |  |  | 6,125 |
Total assets (billions) |  |  | 15.6 |  |  |  | 27.1 |  |  |  | 26.0 |  |  |  | 10.2 |  |  |  | (7.3 | ) |  |  | 71.6 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue from external customers |  |  | $2,091 |  |  |  | $7,001 |  |  |  | $1,877 |  |  |  | $ (27) |  |  |  | $ 741 |  |  |  | $11,683 |
Intersegment revenue |  |  | 20 |  |  |  | 15 |  |  |  | 695 |  |  |  | 554 |  |  |  | (1,284 | ) |  |  | — |
Total operating revenue |  |  | 2,111 |  |  |  | 7,016 |  |  |  | 2,572 |  |  |  | 527 |  |  |  | (543 | ) |  |  | 11,683 |
Depreciation, depletion and amortization |  |  | 498 |  |  |  | 591 |  |  |  | 262 |  |  |  | 44 |  |  |  | — |  |  |  | 1,395 |
Equity in earnings of equity method investees |  |  | — |  |  |  | (15 | ) |  |  | 60 |  |  |  | 11 |  |  |  | — |  |  |  | 56 |
Interest income |  |  | — |  |  |  | 64 |  |  |  | 25 |  |  |  | 13 |  |  |  | (44 | ) |  |  | 58 |
Interest and related charges |  |  | 230 |  |  |  | 262 |  |  |  | 27 |  |  |  | 429 |  |  |  | (44 | ) |  |  | 904 |
Income tax expense (benefit) |  |  | 307 |  |  |  | 465 |  |  |  | 423 |  |  |  | (290 | ) |  |  | — |  |  |  | 905 |
Net income (loss) attributable to Dominion Energy |  |  | 490 |  |  |  | 1,120 |  |  |  | 680 |  |  |  | (391 | ) |  |  | — |  |  |  | 1,899 |
Investment in equity method investees |  |  | — |  |  |  | 245 |  |  |  | 1,042 |  |  |  | 33 |  |  |  | — |  |  |  | 1,320 |
Capital expenditures |  |  | 1,607 |  |  |  | 2,190 |  |  |  | 2,153 |  |  |  | 43 |  |  |  | — |  |  |  | 5,993 |
Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation. VIRGINIA POWER The majority of Virginia Power’s revenue is provided through tariff rates. Generally, such revenue is allocated for management reporting based on an unbundled rate methodology among Virginia Power’s Power Delivery and Power Generation segments. The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources. In 2017, Virginia Power reported an after-tax net benefit of $74 million for specific items attributable to its operating segments in the Corporate and Other segment. The net benefit for specific items in 2017 primarily related to the impact of the following item:
• |  | A $93 million tax benefit resulting from the remeasurement of deferred income taxes as a result of the 2017 Tax Reform Act, attributable to Power Generation.
In 2016, Virginia Power reported after-tax net expenses of $173 million for specific items attributable to its operating segments in the Corporate and Other segment. The net expenses for specific items in 2016 primarily related to the impact of the following item:
• |  | A $197 million ($121 million after-tax) charge related to future ash pond and landfill closure costs at certain utility generation facilities, attributable to Power Generation.
In 2015, Virginia Power reported after-tax net expenses of $153 million for specific items attributable to its operating segments in the Corporate and Other segment. The net expenses for specific items in 2015 primarily related to the impact of the following items:
• |  | A $99 million ($60 million after-tax) charge related to future ash pond and landfill closure costs at certain utility generation facilities, attributable to Power Generation; and
• |  | An $85 million ($52 million after-tax) write-off of deferred fuel costs associated with Virginia legislation enacted in February 2015, attributable to Power Generation.
The following table presents segment information pertaining to Virginia Power’s operations:
Year Ended December 31, |  | Power Delivery |  |  | Power Generation |  |  | Corporate and Other |  |  | Adjustments & Eliminations |  |  | Consolidated Total |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | $2,212 |  |  |  | $5,344 |  |  |  | $ — |  |  |  | $ — |  |  |  | $7,556 |
Depreciation and amortization |  |  | 594 |  |  |  | 547 |  |  |  | — |  |  |  | — |  |  |  | 1,141 |
Interest income |  |  | 4 |  |  |  | 15 |  |  |  | 3 |  |  |  | (3 | ) |  |  | 19 |
Interest and related charges |  |  | 265 |  |  |  | 232 |  |  |  | — |  |  |  | (3 | ) |  |  | 494 |
Income tax expense (benefit) |  |  | 334 |  |  |  | 534 |  |  |  | (94 | ) |  |  | — |  |  |  | 774 |
Net income |  |  | 527 |  |  |  | 939 |  |  |  | 74 |  |  |  | — |  |  |  | 1,540 |
Capital expenditures |  |  | 1,439 |  |  |  | 1,290 |  |  |  | — |  |  |  | — |  |  |  | 2,729 |
Total assets (billions) |  |  | 16.6 |  |  |  | 18.6 |  |  |  | — |  |  |  | (0.1 | ) |  |  | 35.1 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | $2,217 |  |  |  | $5,390 |  |  |  | $ (19 | ) |  |  | $ — |  |  |  | $7,588 |
Depreciation and amortization |  |  | 537 |  |  |  | 488 |  |  |  | — |  |  |  | — |  |  |  | 1,025 |
Interest income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Interest and related charges |  |  | 244 |  |  |  | 219 |  |  |  | — |  |  |  | (2 | ) |  |  | 461 |
Income tax expense (benefit) |  |  | 307 |  |  |  | 524 |  |  |  | (104 | ) |  |  | — |  |  |  | 727 |
Net income (loss) |  |  | 482 |  |  |  | 909 |  |  |  | (173 | ) |  |  | — |  |  |  | 1,218 |
Capital expenditures |  |  | 1,313 |  |  |  | 1,336 |  |  |  | — |  |  |  | — |  |  |  | 2,649 |
Total assets (billions) |  |  | 15.6 |  |  |  | 17.8 |  |  |  | — |  |  |  | (0.1 | ) |  |  | 33.3 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | $2,099 |  |  |  | $5,566 |  |  |  | $ (43 | ) |  |  | $ — |  |  |  | $7,622 |
Depreciation and amortization |  |  | 498 |  |  |  | 453 |  |  |  | 2 |  |  |  | — |  |  |  | 953 |
Interest income |  |  | — |  |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | 7 |
Interest and related charges |  |  | 230 |  |  |  | 210 |  |  |  | 4 |  |  |  | (1 | ) |  |  | 443 |
Income tax expense (benefit) |  |  | 308 |  |  |  | 437 |  |  |  | (86 | ) |  |  | — |  |  |  | 659 |
Net income (loss) |  |  | 490 |  |  |  | 750 |  |  |  | (153 | ) |  |  | — |  |  |  | 1,087 |
Capital expenditures |  |  | 1,569 |  |  |  | 1,120 |  |  |  | — |  |  |  | — |  |  |  | 2,689 |
DOMINION ENERGY GAS The Corporate and Other Segment of Dominion Energy Gas primarily includes specific items attributable to Dominion Energy Gas’ operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources and the effect of certain items recorded at Dominion Energy Gas as a result of Dominion Energy’s basis in the net assets contributed. In 2017, Dominion Energy Gas reported after-tax net expenses of $179 million in its Corporate and Other segment, with $174 million of these net expenses attributable to its operating segment. The net benefit for specific items in 2017 primarily related to the impact of the following item:
• |  | A $185 million tax benefit resulting from the remeasurement of deferred income taxes as a result of the 2017 Tax Reform Act.
In 2016, Dominion Energy Gas reported after-tax net expenses of $3 million in its Corporate and Other segment, with $7 million of these net expenses attributable to its operating segment. The net expense for specific items in 2016 primarily related to the impact of the following item:
• |  | An $8 million ($5 million after-tax) charge related to an organizational design initiative.
In 2015, Dominion Energy Gas reported after-tax net expenses of $21 million in its Corporate and Other segment, with $13 million of these net expenses attributable to specific items related to its operating segment. The net expenses for specific items in 2015 primarily related to the impact of the following item:
• |  | $16 million ($10 million after-tax) ceiling test impairment charge.
The following table presents segment information pertaining to Dominion Energy Gas’ operations:
Year Ended December 31, |  | Gas Infrastructure |  |  | Corporate and Other |  |  | Consolidated Total |
(millions) |  |  |  |  |  |  |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | $1,814 |  |  |  | $ — |  |  |  | $1,814 |
Depreciation and amortization |  |  | 227 |  |  |  | — |  |  |  | 227 |
Equity in earnings of equity method investees |  |  | 21 |  |  |  | — |  |  |  | 21 |
Interest income |  |  | 2 |  |  |  | — |  |  |  | 2 |
Interest and related charges |  |  | 97 |  |  |  | — |  |  |  | 97 |
Income tax expense (benefit) |  |  | 256 |  |  |  | (205 | ) |  |  | 51 |
Net income |  |  | 436 |  |  |  | 179 |  |  |  | 615 |
Investment in equity method investees |  |  | 95 |  |  |  | — |  |  |  | 95 |
Capital expenditures |  |  | 778 |  |  |  | — |  |  |  | 778 |
Total assets (billions) |  |  | 11.3 |  |  |  | 0.6 |  |  |  | 11.9 |
2016 |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | $1,638 |  |  |  | $ — |  |  |  | $1,638 |
Depreciation and amortization |  |  | 214 |  |  |  | (10 | ) |  |  | 204 |
Equity in earnings of equity method investees |  |  | 21 |  |  |  | — |  |  |  | 21 |
Interest income |  |  | 1 |  |  |  | — |  |  |  | 1 |
Interest and related charges |  |  | 92 |  |  |  | 2 |  |  |  | 94 |
Income tax expense (benefit) |  |  | 237 |  |  |  | (22 | ) |  |  | 215 |
Net income (loss) |  |  | 395 |  |  |  | (3 | ) |  |  | 392 |
Investment in equity method investees |  |  | 98 |  |  |  | — |  |  |  | 98 |
Capital expenditures |  |  | 854 |  |  |  | — |  |  |  | 854 |
Total assets (billions) |  |  | 10.5 |  |  |  | 0.6 |  |  |  | 11.1 |
2015 |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | $1,716 |  |  |  | $ — |  |  |  | $1,716 |
Depreciation and amortization |  |  | 213 |  |  |  | 4 |  |  |  | 217 |
Equity in earnings of equity method investees |  |  | 23 |  |  |  | — |  |  |  | 23 |
Interest income |  |  | 1 |  |  |  | — |  |  |  | 1 |
Interest and related charges |  |  | 72 |  |  |  | 1 |  |  |  | 73 |
Income tax expense (benefit) |  |  | 296 |  |  |  | (13 | ) |  |  | 283 |
Net income (loss) |  |  | 478 |  |  |  | (21 | ) |  |  | 457 |
Investment in equity method investees |  |  | 102 |  |  |  | — |  |  |  | 102 |
Capital expenditures |  |  | 795 |  |  |  | — |  |  |  | 795 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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