XML 124 R27.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
Leases | Note 15. Leases At September 30, 2019, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:
|  | September 30, 2019 |
(millions) |  |  |  |
Dominion Energy |  |  |  |
Lease assets: |  |  |  |
Operating lease assets |  | $ | 455 |
Finance lease assets(1) |  |  | 159 |
Total lease assets |  | $ | 614 |
Lease liabilities: |  |  |  |
Operating lease liabilities(2) |  | $ | 58 |
Finance lease liabilities(3) |  |  | 30 |
Total lease liabilities - current |  |  | 88 |
Operating lease liabilities |  |  | 394 |
Finance lease liabilities(4) |  |  | 132 |
Total lease liabilities - noncurrent |  |  | 526 |
Total lease liabilities |  | $ | 614 |
Virginia Power |  |  |  |
Operating lease assets |  | $ | 184 |
Finance lease assets(1) |  |  | 15 |
Total lease assets |  | $ | 199 |
Lease liabilities: |  |  |  |
Operating lease liabilities(2) |  | $ | 30 |
Finance lease liabilities(3) |  |  | 3 |
Total lease liabilities - current |  |  | 33 |
Operating lease liabilities |  |  | 152 |
Finance lease liabilities(4) |  |  | 11 |
Total lease liabilities - noncurrent |  |  | 163 |
Total lease liabilities |  | $ | 196 |
Dominion Energy Gas |  |  |  |
Operating lease assets |  | $ | 56 |
Finance lease assets(1) |  |  | 10 |
Total lease assets |  | $ | 66 |
Lease liabilities: |  |  |  |
Operating lease liabilities(2) |  | $ | 12 |
Finance lease liabilities(3) |  |  | 2 |
Total lease liabilities - current |  |  | 14 |
Operating lease liabilities |  |  | 44 |
Finance lease liabilities(4) |  |  | 8 |
Total lease liabilities - noncurrent |  |  | 52 |
Total lease liabilities |  | $ | 66 |
(1) | Included in property, plant and equipment in the Companies’ Consolidated Balance Sheets, net of $39 million, $3 million and $2 million of accumulated amortization at Dominion Energy, Virginia Power and Dominion Energy Gas, respectively, at September 30, 2019.
(2) | Included in other current liabilities in the Companies’ Consolidated Balance Sheets.
(3) | Included in securities due within one year in the Companies’ Consolidated Balance Sheets.
(4) | Included in long-term debt in the Companies’ Consolidated Balance Sheets.
In addition to the amounts disclosed above, Dominion Energy’s Consolidated Balance Sheet at September 30, 2019 includes property, plant and equipment and accumulated depreciation of $2.8 billion and $341 million, respectively, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor. For the three and nine months ended September 30, 2019, total lease cost associated with the Companies’ lessee leasing arrangements consisted of the following:
|  | Three Months Ended September 30, 2019 |  |  | Nine Months Ended September 30, 2019 |
(millions) |  |  |  |  |  |  |  |
Dominion Energy |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization |  | $ | 7 |  |  | $ | 14 |
Interest |  |  | 1 |  |  |  | 3 |
Operating lease cost |  |  | 20 |  |  |  | 64 |
Short-term lease cost |  |  | 7 |  |  |  | 20 |
Variable lease cost |  |  | 1 |  |  |  | 4 |
Total lease cost |  | $ | 36 |  |  | $ | 105 |
Virginia Power |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 10 |  |  | $ | 31 |
Short-term lease cost |  |  | 3 |  |  |  | 7 |
Variable lease cost |  |  | 1 |  |  |  | 2 |
Total lease cost |  | $ | 14 |  |  | $ | 40 |
Dominion Energy Gas |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 3 |  |  | $ | 10 |
Short-term lease cost |  |  | 2 |  |  |  | 5 |
Total lease cost |  | $ | 5 |  |  | $ | 15 |
For the nine months ended September 30, 2019, cash paid for amounts included in the measurement of lease liabilities consisted of the following amounts, included in the Companies’ Consolidated Statements of Cash Flows:
|  | Nine Months Ended September 30, 2019 |
(millions) |  |  |  |
Dominion Energy |  |  |  |
Operating cash flows for finance leases |  | $ | 3 |
Operating cash flows for operating leases |  |  | 89 |
Financing cash flows for finance leases |  |  | 12 |
Virginia Power |  |  |  |
Operating cash flows for operating leases |  |  | 40 |
Dominion Energy Gas |  |  |  |
Operating cash flows for operating leases |  |  | 15 |
In addition to the amounts disclosed above, Dominion Energy’s Consolidated Statement of Income for the three and nine months ended September 30, 2019 includes $64 million and $146 million, respectively, of rental revenue included in operating revenue and $23 million and $70 million, respectively, of depreciation expense, included in depreciation, depletion and amortization, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor. At September 30, 2019, the weighted average remaining lease term and weighted discount rate for the Companies’ finance and operating leases were as follows:
|  | September 30, 2019
Dominion Energy |  |
Weighted average remaining lease term - finance leases |  | 6 years
Weighted average remaining lease term - operating leases |  | 21 years
Weighted average discount rate - finance leases |  | 4.36%
Weighted average discount rate - operating leases |  | 4.58%
Virginia Power |  |
Weighted average remaining lease term - finance leases |  | 6 years
Weighted average remaining lease term - operating leases |  | 17 years
Weighted average discount rate - finance leases |  | 4.65%
Weighted average discount rate - operating leases |  | 4.51%
Dominion Energy Gas |  |
Weighted average remaining lease term - finance leases |  | 6 years
Weighted average remaining lease term - operating leases |  | 9 years
Weighted average discount rate - finance leases |  | 4.55%
Weighted average discount rate - operating leases |  | 4.43%
The Companies’ lease liabilities have the following scheduled maturities:
Maturity of Lease Liabilities |  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
(millions) |  | Operating |  |  | Finance |  |  | Operating |  |  | Finance |  |  | Operating |  |  | Finance |
2019 |  | $ | 18 |  |  | $ | 10 |  |  | $ | 8 |  |  | $ | 1 |  |  | $ | 5 |  |  | $ | 1 |
2020 |  |  | 68 |  |  |  | 39 |  |  |  | 33 |  |  |  | 3 |  |  |  | 13 |  |  |  | 2 |
2021 |  |  | 61 |  |  |  | 33 |  |  |  | 29 |  |  |  | 3 |  |  |  | 11 |  |  |  | 2 |
2022 |  |  | 50 |  |  |  | 31 |  |  |  | 23 |  |  |  | 3 |  |  |  | 9 |  |  |  | 2 |
2023 |  |  | 40 |  |  |  | 28 |  |  |  | 18 |  |  |  | 2 |  |  |  | 6 |  |  |  | 2 |
After 2023 |  |  | 538 |  |  |  | 49 |  |  |  | 160 |  |  |  | 4 |  |  |  | 25 |  |  |  | 3 |
Total undiscounted lease payments |  |  | 775 |  |  |  | 190 |  |  |  | 271 |  |  |  | 16 |  |  |  | 69 |  |  |  | 12 |
Present value adjustment |  |  | (323 | ) |  |  | (28 | ) |  |  | (89 | ) |  |  | (2 | ) |  |  | (13 | ) |  |  | (2 | )
Present value of lease liabilities |  | $ | 452 |  |  | $ | 162 |  |  | $ | 182 |  |  | $ | 14 |  |  | $ | 56 |  |  | $ | 10 |
Corporate Office Leasing Arrangement In July 2016, Dominion Energy signed an agreement with a lessor to construct and lease a new corporate office property in Richmond, Virginia. The lessor provided equity and obtained financing commitments from debt investors, totaling $365 million, which funded total project costs. The project became substantially complete in August 2019 at which point the facility was available for Dominion Energy’s use and the five-year lease term commenced. Upon commencement, the lease for the facility was classified as a finance lease. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional five years, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the project costs or, (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the project costs, Dominion Energy may be required to make a payment to the lessor, up to 87% of project costs, for the difference between the project costs and sale proceeds. No end-of-term options were deemed reasonably certain of exercise at commencement date. At commencement, Dominion Energy recorded a right-of-use asset and offsetting lease obligation of $67 million, representing the present value of consideration over the five-year term at the rate implicit in the lease.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration