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Summary of Significant Accounting Policies and Other Matters | 9 Months Ended
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Sep. 30, 2021
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies and Other Matters | Summary of Significant Accounting Policies and Other Matters Accounting Policies The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction. Investments Con Edison's investments consist primarily of the investments of Con Edison Transmission that are accounted for under the equity method and the fair value of the Utilities' supplemental retirement income plan and deferred income plan assets. Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach) In May 2021, a subsidiary of Con Edison Gas Pipeline and Storage, LLC (CET Gas) entered into a purchase and sale agreement pursuant to which the subsidiary and its joint venture partner agreed to sell their combined interests in Stagecoach Gas Services LLC (Stagecoach) for a total of $1,225 million, of which $612.5 million will be CET Gas' portion for its 50 percent interest, subject to closing adjustments. The purchase and sale agreement contemplates a two-stage closing, the first of which was completed in July 2021 for a sale price of $1,195 million, of which $614 million, including working capital, was attributed to CET Gas. The second closing for the remaining $30 million, of which $15 million will be attributed to CET Gas, subject to closing adjustments, is to occur following approval by the New York State Public Service Commission, which is expected later this year or during the first quarter of 2022, subject to customary closing conditions. As a result of information made available to Stagecoach as part of the sale process, Stagecoach performed impairment tests that resulted in Stagecoach recording impairment charges of $414 million for the nine months ended September 30, 2021. Accordingly, Con Edison recorded pre-tax impairment losses on its 50 percent interest in Stagecoach of $211 million ($147 million after-tax), including working capital and transaction cost adjustments, within "Investment income/(loss)" on Con Edison's consolidated income statement for the nine months ended September 30, 2021. These charges reduced the carrying value of Con Edison’s investment in Stagecoach to $630 million at June 30, 2021. Stagecoach’s impairment charges and information obtained from the sales process constituted triggering events for Con Edison's investment in Stagecoach as of March 31, 2021 and June 30, 2021. Con Edison evaluated the carrying value of its investment in Stagecoach for other-than-temporary declines in value using income and market-based approaches. Con Edison determined that the carrying value of its investment in Stagecoach of $667 million and $630 million as of March 31, 2021 and June 30, 2021, respectively, was not impaired. The carrying value of $630 million at June 30, 2021 approximates the final sales price received in July 2021 and the remaining amount expected to be received, including closing adjustments. The accounting rules require Con Edison to evaluate its investments periodically to determine whether they are impaired. The standard for determining whether an impairment exists and must be recorded is whether an other-than-temporary decline in carrying value has occurred. Changes in economic conditions, forecasted cash flows and the regulatory environment, among other factors, could require equity method investments to recognize a decrease in carrying value for an other-than-temporary decline. When management believes such a decline may have occurred, the fair value of the investment is estimated using market inputs, when observable, or a market valuation model such as a discounted cash flow analysis. The fair value is compared to the carrying value of the investment in order to determine the amount of impairment to record, if any. The evaluation and measurement of impairments involve uncertainties. The judgments that Con Edison makes to estimate the fair value of its equity method investments are based on assumptions that management believes are reasonable, and variations in these estimates or the underlying assumptions, or the receipt of additional market information, could have a material impact on whether a triggering event is determined to exist or the amount of any such impairment. Additionally, if the projects in which Con Edison holds these investments recognize an impairment, Con Edison may record a share of that impairment loss and would evaluate its investment for an other-than-temporary decline in carrying value as described above. Reclassification Certain prior period amounts have been reclassified to conform with current period presentation. Earnings Per Common Share Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic EPS is calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding is increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the exercise price. For the three and nine months ended September 30, 2021 and 2020, basic and diluted EPS for Con Edison were calculated as follows:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30,
(Millions of Dollars, except per share amounts/Shares in Millions) | 2021 | 2020 | 2021 | 2020
Net income for common stock | $538 | $493 | $1,122 | $1,058
Weighted average common shares outstanding – basic | 353.4 | 334.5 | 346.8 | 334.1
Add: Incremental shares attributable to effect of potentially dilutive securities | 0.7 | 0.9 | 0.7 | 0.9
Adjusted weighted average common shares outstanding – diluted | 354.1 | 335.4 | 347.5 | 335.0
Net Income per common share – basic | $1.52 | $1.47 | $3.23 | $3.17
Net Income per common share – diluted | $1.52 | $1.47 | $3.23 | $3.16
The computation of diluted EPS for the three and nine months ended September 30, 2021 and 2020 excludes immaterial amounts of performance share awards that were not included because of their anti-dilutive effect. Changes in Accumulated Other Comprehensive Income/(Loss) by Component For the three and nine months ended September 30, 2021 and 2020, changes to accumulated other comprehensive income/(loss) (OCI) for Con Edison and CECONY were as follows:
| For the Three Months Ended September 30,
| Con Edison | CECONY
(Millions of Dollars) | 2021 | 2020 | 2021 | 2020
Beginning balance, accumulated OCI, net of taxes (a) | $(19) | $(14) | $(7) | $(4)
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) for Con Edison in 2021 and 2020 (a)(b) | 2 | 2 | — |  | — |
Current period OCI, net of taxes | 2 | 2 | — |  | — |
Ending balance, accumulated OCI, net of taxes (a) | $(17) | $(12) | $(7) | $(4)
| For the Nine Months Ended September 30,
| Con Edison | CECONY
(Millions of Dollars) | 2021 | 2020 | 2021 | 2020
Beginning balance, accumulated OCI, net of taxes (a) | $(25) | $(19) | $(7) | $(6)
OCI before reclassifications, net of tax of $(1) for Con Edison in 2021 and 2020 | 2 | 4 | — |  | — |
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(2) for Con Edison in 2021 and 2020 (a)(b) | 6 | 3 | — |  | 2
Current period OCI, net of taxes | 8 | 7 | — |  | 2
Ending balance, accumulated OCI, net of taxes (a) | $(17) | $(12) | $(7) | $(4)
(a) Tax reclassified from accumulated OCI is reported in the income tax expense line item of the consolidated income statement. (b)For the portion of unrecognized pension and other postretirement benefit costs relating to the Utilities, costs are recorded into, and amortized out of, regulatory assets and liabilities instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of total periodic pension and other postretirement benefit costs. See Notes E and F. Reconciliation of Cash, Temporary Cash Investments and Restricted Cash Cash, temporary cash investments and restricted cash are presented on a combined basis in the Companies’ consolidated statements of cash flows. At September 30, 2021 and 2020, cash, temporary cash investments and restricted cash for Con Edison and CECONY were as follows:
| At September 30,
| Con Edison | CECONY
(Millions of Dollars) | 2021 | 2020 | 2021 | 2020
Cash and temporary cash investments | $66 | $153 | $18 | $23
Restricted cash (a) | 149 | 161 | — |  | — |
Total cash, temporary cash investments and restricted cash | $215 | $314 | $18 | $23
(a)Restricted cash included cash of the Clean Energy Businesses' renewable electric production project subsidiaries ($149 million and $161 million at September 30, 2021 and 2020, respectively) that, under the related project debt agreements, is restricted to being used for normal operating expenses and capital expenditures, debt service, and required reserves until the various maturity dates of the project debt.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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