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Operating Segments | Nov. 18, 2019
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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 generation fleet |  |  | X |  |  |  | X |  |  |  |  |
|  | Merchant electric generation fleet |  |  | X |  |  |  |  |  |  |  |  |
Gas Infrastructure |  | Gas transmission and storage |  |  | X (1) |  |  |  |  |  |  |  | X |
|  | Gas distribution and storage |  |  | X |  |  |  |  |  |  |  |  |
|  | Gas gathering and processing |  |  | X |  |  |  |  |  |  |  |  |
|  | LNG terminalling and storage |  |  | X |  |  |  |  |  |  |  | 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 2018, Dominion Energy reported after-tax net expenses of $608 million in the Corporate and Other segment, with $88 million of the net expenses attributable to specific items related to its operating segments. The net expenses for specific items in 2018 primarily related to the impact of the following items:
• | A $219 million ($164 million after-tax) charge related to the impairment of certain gathering and processing assets attributable to Gas Infrastructure;
• | A $215 million ($160 million after-tax) charge associated with Virginia legislation enacted in March 2018 that requires one-time rate credits of certain amounts to utility customers, attributable to:
| • | Power Generation ($109 million after-tax); and
| • | Power Delivery ($51 million after-tax);
• | A $170 million ($134 million after-tax) net loss related to our investments in nuclear decommissioning trust funds attributable to Power Generation;
• | A $124 million ($88 million after-tax) charge for disallowance of FERC-regulated plant attributable to Gas Infrastructure;
• | An $81 million ($60 million after-tax) charge associated primarily with the asset retirement obligations for ash ponds and landfills at certain utility generation facilities in connection with the enactment of Virginia legislation in April 2018 attributable to Power Generation; and
• | A $70 million ($52 million after-tax) charge associated with major storm damage and service restoration attributable to Power Delivery; partially offset by
• | An $828 million ($619 million after-tax) benefit associated with the sale of certain merchant generation facilities and equity method investments attributable to:
| • | Power Generation ($229 million after-tax); and
| • | Gas Infrastructure ($390 million after-tax).
In 2017, Dominion Energy reported after-tax net benefits of $389 million in the Corporate and Other segment, with $861 million of the net benefits attributable to specific items related to its operating segments. The net benefits 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).
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) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue from external customers |  | $ | 2,206 |  |  | $ | 7,104 |  |  | $ | 4,221 |  |  | $ | (208 | ) |  | $ | 43 |  |  | $ | 13,366 |
Intersegment revenue |  |  | 23 |  |  |  | 11 |  |  |  | 27 |  |  |  | 674 |  |  |  | (735 | ) |  |  | — |
Total operating revenue |  |  | 2,229 |  |  |  | 7,115 |  |  |  | 4,248 |  |  |  | 466 |  |  |  | (692 | ) |  |  | 13,366 |
Depreciation, depletion and amortization |  |  | 625 |  |  |  | 746 |  |  |  | 615 |  |  |  | 14 |  |  |  | — |  |  |  | 2,000 |
Impairment of assets and related charges |  |  | — |  |  |  | 1 |  |  |  | 8 |  |  |  | 394 |  |  |  | — |  |  |  | 403 |
Gains on sales of assets |  |  | — |  |  |  | 6 |  |  |  | (186 | ) |  |  | (200 | ) |  |  | — |  |  |  | (380 | )
Equity in earnings of equity method investees |  |  | — |  |  |  | 18 |  |  |  | 178 |  |  |  | 1 |  |  |  | — |  |  |  | 197 |
Interest income |  |  | — |  |  |  | 90 |  |  |  | 64 |  |  |  | 126 |  |  |  | (196 | ) |  |  | 84 |
Interest and related charges |  |  | 265 |  |  |  | 374 |  |  |  | 268 |  |  |  | 782 |  |  |  | (196 | ) |  |  | 1,493 |
Income tax expense (benefit) |  |  | 160 |  |  |  | 294 |  |  |  | 330 |  |  |  | (204 | ) |  |  | — |  |  |  | 580 |
Net income (loss) attributable to Dominion Energy |  |  | 587 |  |  |  | 1,254 |  |  |  | 1,214 |  |  |  | (608 | ) |  |  | — |  |  |  | 2,447 |
Investment in equity method investees |  |  | — |  |  |  | 82 |  |  |  | 1,159 |  |  |  | 37 |  |  |  | — |  |  |  | 1,278 |
Capital expenditures |  |  | 1,564 |  |  |  | 1,321 |  |  |  | 1,415 |  |  |  | 105 |  |  |  | — |  |  |  | 4,405 |
Total assets (billions) |  |  | 17.8 |  |  |  | 28.2 |  |  |  | 31.5 |  |  |  | 11.2 |  |  |  | (10.8 | ) |  |  | 77.9 |
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 |
Impairment of assets and related charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15 |  |  |  | — |  |  |  | 15 |
Gains on sales of assets |  |  | — |  |  |  | — |  |  |  | (147 | ) |  |  | — |  |  |  | — |  |  |  | (147 | )
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 (loss) 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 |
Impairment of assets and related charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 4 |
Gains on sales of assets |  |  | — |  |  |  | 4 |  |  |  | (44 | ) |  |  | — |  |  |  | — |  |  |  | (40 | )
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 |
Capital expenditures |  |  | 1,320 |  |  |  | 2,440 |  |  |  | 2,322 |  |  |  | 43 |  |  |  | — |  |  |  | 6,125 |
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 2018, Virginia Power reported an after-tax net expense of $312 million for specific items attributable to its operating segments in the Corporate and Other segment. The net expenses for specific items in 2018 primarily related to the impact of the following items:
• | A $215 million ($160 million after-tax) charge associated with Virginia legislation enacted in March 2018 that requires one-time rate credits of certain amounts to utility customers, attributable to:
| • | Power Generation ($109 million after-tax); and
| • | Power Delivery ($51 million after-tax).
• | An $81 million ($60 million after-tax) charge associated primarily with the asset retirement obligations for ash ponds and landfills at certain utility generation facilities in connection with the enactment of Virginia legislation in April 2018 attributable to Power Generation.
• | A $70 million ($52 million after-tax) charge associated with major storm damage and service restoration attributable to Power Delivery.
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.
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) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 2,204 |  |  | $ | 5,630 |  |  | $ | (215 | ) |  | $ | — |  |  | $ | 7,619 |
Depreciation and amortization |  |  | 624 |  |  |  | 533 |  |  |  | (25 | ) |  |  | — |  |  |  | 1,132 |
Interest income |  |  | — |  |  |  | 9 |  |  |  | 5 |  |  |  | (4 | ) |  |  | 10 |
Interest and related charges |  |  | 265 |  |  |  | 250 |  |  |  | — |  |  |  | (4 | ) |  |  | 511 |
Income tax expense (benefit) |  |  | 158 |  |  |  | 220 |  |  |  | (78 | ) |  |  | — |  |  |  | 300 |
Net income (loss) |  |  | 586 |  |  |  | 1,008 |  |  |  | (312 | ) |  |  | — |  |  |  | 1,282 |
Capital expenditures |  |  | 1,539 |  |  |  | 1,003 |  |  |  | — |  |  |  | — |  |  |  | 2,542 |
Total assets (billions) |  |  | 17.6 |  |  |  | 19.4 |  |  |  | — |  |  |  | (0.1 | ) |  |  | 36.9 |
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 |
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 addition, Corporate and Other includes the net impact of discontinued operations , which are discussed in Note 3. In 2018, Dominion Energy Gas reported after-tax net expenses of $90 million in its Corporate and Other segment, with $107 million of these net expenses attributable to specific items related to its operating segment. The net expenses for specific items in 2018 primarily related to a $124 million ($88 million after-tax) charge for disallowance of FERC-regulated plant. In 2017, Dominion Energy Gas reported after-tax net benefit of $389 million in its Corporate and Other segment, with $156 million of the net benefit attributable to specific items related to its operating segment. The net benefit for specific items in 2017 primarily related to the impact of the following item:
• | A $169 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 an after-tax net benefit of $155 million in its Corporate and Other segment, which included $17 million of net expenses attributable to specific items related to its operating segment. The net expense for specific items in 2016 primarily related to the impact of the following item:
• | $9 million ($8 million after-tax) of transaction and transition costs related to the Dominion Energy Questar Pipeline acquisition, and
• | A $7 million ($4 million after-tax) charge related to an organizational design initiative.
The following table presents segment information pertaining to Dominion Energy Gas’ operations:
Year Ended December 31, |  | Gas Infrastructure |  |  | Corporate and Other |  |  | Consolidated Total |
(millions) |  |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 1,996 |  |  | $ | — |  |  | $ | 1,996 |
Depreciation and amortization |  |  | 333 |  |  |  | — |  |  |  | 333 |
Impairment of assets and related charges |  |  | 5 |  |  |  | 158 |  |  |  | 163 |
Gains on sales of assets |  |  | (117 | ) |  |  | — |  |  |  | (117 | )
Equity in earnings of equity method investees |  |  | 54 |  |  |  | — |  |  |  | 54 |
Interest income |  |  | 26 |  |  |  | — |  |  |  | 26 |
Interest and related charges |  |  | 173 |  |  |  | 1 |  |  |  | 174 |
Income tax expense (benefit) |  |  | 226 |  |  |  | (102 | ) |  |  | 124 |
Net i ncome from discontinued operations |  |  | — |  |  |  | 24 |  |  |  | 24 |
Net i ncome ( loss ) attributable to Dominion Energy Gas |  |  | 571 |  |  |  | (90 | ) |  |  | 481 |
Investment in equity method investees |  |  | 339 |  |  |  | — |  |  |  | 339 |
Capital expenditures |  |  | 751 |  |  |  | 358 |  |  |  | 1,109 |
Total assets (billions) |  |  | 19.9 |  |  |  | 6.9 |  |  |  | 26.8 |
2017 |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 1,523 |  |  | $ | — |  |  | $ | 1,523 |
Depreciation and amortization |  |  | 242 |  |  |  | — |  |  |  | 242 |
Impairment of assets and related charges |  |  | 15 |  |  |  | — |  |  |  | 15 |
Gains on sales of assets |  |  | (70 | ) |  |  | — |  |  |  | (70 | )
Equity in earnings of equity method investees |  |  | 47 |  |  |  | — |  |  |  | 47 |
Interest income |  |  | 4 |  |  |  | — |  |  |  | 4 |
Interest and related charges |  |  | 60 |  |  |  | — |  |  |  | 60 |
Income tax expense (benefit) |  |  | 189 |  |  |  | (254 | ) |  |  | (65 | )
Net i ncome from discontinued operations |  |  | — |  |  |  | 163 |  |  |  | 163 |
Net i ncome attributable to Dominion Energy Gas |  |  | 314 |  |  |  | 389 |  |  |  | 703 |
Investment in equity method investees |  |  | 349 |  |  |  | — |  |  |  | 349 |
Capital expenditures |  |  | 1,459 |  |  |  | 356 |  |  |  | 1,815 |
Total assets (billions) |  |  | 15.8 |  |  |  | 6.7 |  |  |  | 22.5 |
2016 |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 1,374 |  |  | $ | — |  |  | $ | 1,374 |
Depreciation and amortization |  |  | 191 |  |  |  | — |  |  |  | 191 |
Gains on sales of assets |  |  | (44 | ) |  |  | — |  |  |  | (44 | )
Equity in earnings of equity method investees |  |  | 44 |  |  |  | — |  |  |  | 44 |
Interest income |  |  | 3 |  |  |  | — |  |  |  | 3 |
Interest and related charges |  |  | 65 |  |  |  | — |  |  |  | 65 |
Income tax expense (benefit) |  |  | 219 |  |  |  | (22 | ) |  |  | 197 |
Net i ncome from discontinued operations |  |  | — |  |  |  | 152 |  |  |  | 152 |
Net i ncome attributable to Dominion Energy Gas |  |  | 322 |  |  |  | 155 |  |  |  | 477 |
Capital expenditures |  |  | 1,830 |  |  |  | 358 |  |  |  | 2,188 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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