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Goodwill and Other Intangibles (CenterPoint Energy and CERC) | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles (CenterPoint Energy and CERC) | Goodwill and Other Intangibles (CenterPoint Energy and CERC) Goodwill (CenterPoint Energy) CenterPoint Energy’s goodwill by reportable segment is as follows:
| December 31, 2022 |  |  |  |  |  | Disposals |  | December 31, 2023
| (in millions)
Electric (1) | $ | 936 |  |  |  |  |  |  | $ | — |  |  | $ | 936 |
Natural Gas | 2,920 |  |  |  |  |  |  | — |  |  | 2,920 |
Corporate and Other | 438 |  |  |  |  |  |  | 134 |  | (2) | 304 |
Total | $ | 4,294 |  |  |  |  |  |  | $ | 134 |  |  | $ | 4,160 |
(1)Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2)Represents goodwill attributable to the sale of Energy Systems Group. For further information, see Note 4. CERC’s goodwill as of both December 31, 2023 and December 31, 2022 was $1,583 million. When the net assets or equity interest transferred in a common-control transaction constitute a business, goodwill is included with the net assets transferred at the parent company’s historical basis. CenterPoint Energy applied a relative fair value methodology to determine the amount of goodwill to allocate to CERC from its natural gas reporting unit as part of the Restructuring. When a disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. As described further in Note 4, certain assets and liabilities of Energy Systems Group, including goodwill of $134 million at CenterPoint Energy, were disposed of upon consummation of the sale of Energy Systems Group in the second quarter of 2023. The disposal of goodwill attributable to Energy Systems Group was reflected in the loss on sale of $13 million during the year ended December 31, 2023. CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed by comparing the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. The reporting units approximate the reportable segments, with the exception of Energy Systems Group, which is a separate reporting unit but included in Corporate and Other at CenterPoint Energy. The estimated fair value of the reporting unit is primarily determined based on an income approach or a weighted combination of income and market approaches. If the carrying amount is in excess of the estimated fair value of the reporting unit, then the excess amount is recorded as an impairment charge, not to exceed the carrying amount of goodwill. See Note 2(g) for further discussion. CenterPoint Energy and CERC performed the annual goodwill impairment tests in the third quarter of each of 2023 and 2022 and determined that no goodwill impairment charge was required for any reporting unit as a result of those tests. Other Intangibles (CenterPoint Energy) The tables below present information on CenterPoint Energy’s other intangible assets, excluding goodwill, recorded in Other non-current assets on the Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Statements of Consolidated Income, unless otherwise indicated in the tables below. The intangible assets and associated amortization expense were primarily related to Energy Systems Group prior to the completion of the sale in June 2023 as indicated below. As a result, there are no intangible assets to report as of December 31, 2023. See Note 4 for further information.
|  |  |  |  | December 31, 2022
|  |  |  |  |  |  |  |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Balance
|  |  |  |  |  |  |  | (in millions)
Customer relationships (1) |  |  |  |  |  |  |  |  | $ | 33 |  |  | $ | (16) |  |  | $ | 17 |
Trade names (1) |  |  |  |  |  |  |  |  | 16 |  |  | (6) |  |  | 10 |
Operation and maintenance agreements (1) (2) |  |  |  |  |  |  |  |  | 12 |  |  | (2) |  |  | 10 |
Other |  |  |  |  |  |  |  |  | 2 |  |  | (1) |  |  | 1 |
Total |  |  |  |  |  |  |  |  | $ | 63 |  |  | $ | (25) |  |  | $ | 38 |
(1)Related to Energy Systems Group prior to the completion of the sale in June 2023. Amortization ceased at June 30, 2023, the end of the quarter in which the held for sale criteria was met. See Note 4 for further information. (2)Amortization expense related to the operation and maintenance agreements is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. Amortization ceased at June 30, 2023, the end of the quarter in which the held for sale criteria was met. See Note 4 for further information.
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (in millions)
Amortization expense of intangible assets recorded in Depreciation and amortization |  | $ | 3 |  |  | $ | 6 |  |  | $ | 6 |
Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas |  | — |  |  | 1 |  |  | 1 |

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