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STATEMENTS OF CONSOLIDATED INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenues:      
Utility revenues $ 6,163 $ 5,603 $ 5,440
Non-utility revenues 4,426 4,011 2,088
Total 10,589 9,614 7,528
Expenses:      
Utility natural gas 1,410 1,109 983
Non-utility natural gas [1] 4,364 3,785 1,983
Operation and maintenance 2,335 2,157 2,029
Depreciation and amortization 1,243 1,036 1,126
Taxes other than income taxes 406 391 384
Total 9,758 8,478 6,505
Operating Income 831 1,136 1,023
Other Income (Expense):      
Gain (loss) on marketable securities (22) 7 326
Gain (loss) on indexed debt securities (232) 49 (413)
Interest and other finance charges (361) (313) (338)
Interest on Securitization Bonds (59) (77) (91)
Equity in earnings of unconsolidated affiliates, net 307 265 208
Other, net 50 (4) (29)
Total (317) (73) (337)
Income Before Income Taxes 514 [2] 1,063 [3] 686 [4]
Income tax expense (benefit) 146 [2] (729) [3] 254 [4]
Net Income 368 1,792 432
Preferred stock dividend requirement 35 0 0
Income Available to Common Shareholders [5] $ 333 $ 1,792 $ 432
Basic Earnings Per Common Share $ 0.74 $ 4.16 $ 1.00
Diluted Earnings Per Common Share $ 0.74 $ 4.13 $ 1.00
Weighted Average Common Shares Outstanding, Basic 448,829,000 430,964,000 430,606,000
Weighted Average Common Shares Outstanding, Diluted 452,465,000 434,308,000 433,603,000
Houston Electric [Member]      
Revenues:      
Total $ 3,234 $ 2,998 $ 3,059
Expenses:      
Operation and maintenance 1,452 1,402 1,338
Depreciation and amortization 917 724 838
Taxes other than income taxes 240 235 231
Total 2,609 2,361 2,407
Operating Income 625 637 652
Other Income (Expense):      
Interest and other finance charges (138) (128) (126)
Interest on Securitization Bonds (59) (77) (91)
Other, net (3) (8) (10)
Total (200) (213) (227)
Income Before Income Taxes 425 [6] 424 [7] 425
Income tax expense (benefit) 89 [6] (9) [7] 149
Net Income 336 433 276
CERC Corp [Member]      
Revenues:      
Utility revenues 2,931 2,606 2,380
Non-utility revenues 4,412 3,997 2,074
Total 7,343 6,603 4,454
Expenses:      
Utility natural gas 1,410 1,109 983
Non-utility natural gas 4,364 3,785 1,983
Operation and maintenance 898 816 754
Depreciation and amortization 293 279 249
Taxes other than income taxes 156 147 144
Total 7,121 6,136 4,113
Operating Income 222 467 341
Other Income (Expense):      
Interest and other finance charges (122) (123) (122)
Other, net (8) (25) (20)
Total (130) (148) (142)
Income Before Income Taxes 92 319 199
Income tax expense (benefit) 22 (265) 81
Income From Continuing Operations 70 584 118
Income from discontinued operations (net of tax expense of $46, $104, and $81, respectively) 138 161 127
Net Income $ 208 $ 745 $ 245
[1] Income statement impact associated with cash flow hedge activity is related to gains and losses reclassified from Accumulated other comprehensive income into income. Amounts are immaterial for the Registrants for the years ended December 31, 2018, 2017 and 2016, respectively.
[2] Recognized a $32 million deferred tax expense due to state law changes that resulted in remeasurement of state deferred taxes in those jurisdictions. Also recorded an additional $11 million valuation allowance on certain state net operating loss deferred tax assets that are no longer expected to be utilized prior to expiration after the Internal Spin. These items are partially offset by $24 million of amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions beginning in 2018.
[3] Recognized a $1.1 billion deferred tax benefit from the remeasurement of CenterPoint Energy’s ADFIT liability as a result of the enactment of the TCJA on December 22, 2017, which reduced the U.S. corporate income tax rate from 35% to 21%. For additional information on the 2017 impacts of the TCJA, please see the discussion following the deferred tax assets and liabilities table below.
[4] Recognized a $6 million deferred tax expense in 2016 due to Louisiana state law change and recorded an additional $3 million valuation allowance on certain state carryforwards.
[5] Income available to common shareholders for the year ended December 31, 2017 includes a reduction in income tax expense of $1,113 million due to tax reform. See Note 15 for further discussion of the impacts of the TCJA.
[6] Recognized $9 million of amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions beginning in 2018.
[7] Recognized a $158 million deferred tax benefit from the remeasurement of Houston Electric’s ADFIT liability as a result of the enactment of the TCJA on December 22, 2017, which reduced the U.S. corporate income tax rate from 35% to 21%. For additional information on the 2017 impacts of the TCJA, please see the discussion following the deferred tax assets and liabilities table below.