Equity (CenterPoint Energy) (Tables)

12 Months Ended

Dec. 31, 2018

CenterPoint Energy declared dividends on its Common Stock during 2018, 2017 and 2016 as presented in the table below:

CenterPoint Energy declared dividends on its Series A Preferred Stock during 2018 as presented in the table below:

CenterPoint Energy declared dividends on its Series B Preferred Stock during 2018 as presented in the table below:

There were no Series A Preferred Stock or Series B Preferred Stock outstanding or dividends declared in 2017 and 2016.

Dividend Requirement on Preferred Stock



	Year Ended December 31,
	2018		2017		2016
	(in millions)
Series A Preferred Stock	$	18	$	—	$	—
Series B Preferred Stock	17		—		—
Total preferred stock dividend requirement	$	35	$	—	$	—

The following table illustrates the conversion rate per share of the Series B Preferred Stock, subject to certain anti-dilution adjustments:



Applicable Market Value of the Common Stock		Conversion Rate per Share of Series B Preferred Stock
Greater than $32.6990 (threshold appreciation price)		30.5820 shares of Common Stock
Equal to or less than $32.6990 but greater than or equal to $27.2494		Between 30.5820 and 36.6980 shares of Common Stock, determined by dividing $1,000 by the applicable market value
Less than $27.2494 (initial price)		36.6980 shares of Common Stock

The following table illustrates the conversion rate per depositary share, subject to certain anti-dilution adjustments:



Applicable Market Value of the Common Stock		Conversion Rate per Depository Share
Greater than $32.6990 (threshold appreciation price)		1.5291 shares of Common Stock
Equal to or less than $32.6990 but greater than or equal to $27.2494		Between 1.5291 and 1.8349 shares of Common Stock, determined by dividing $50 by the applicable market value
Less than $27.2494 (initial price)		1.8349 shares of Common Stock

Amounts recognized in accumulated other comprehensive loss (gain) consist of the following:



	December 31,
	2018								2017
	Pension Benefits		Postretirement Benefits						Pension Benefits		Postretirement Benefits
	CenterPoint Energy		CenterPoint Energy			CERC			CenterPoint Energy		CenterPoint Energy			CERC
	(in millions)
Unrecognized actuarial loss (gain)	$	109	$	(7	)	$	(3	)	$	94	$	(8	)	$	(2	)
Unrecognized prior service cost	1		5			5			1		6			6
Deferred tax benefit (1)	—		—			(9		)	—		—			(11		)
Net amount recognized in accumulated other comprehensive loss (gain)	$	110	$	(2	)	$	(7	)	$	95	$	(2	)	$	(7	)


(1)	CenterPoint Energy’s and CERC’s postretirement benefit obligation is reduced by the impact of previously non-taxable government subsidies under the Medicare Prescription Drug Act. Because the subsidies were non-taxable, the temporary difference used in measuring the deferred tax impact was determined on the unrecognized losses excluding such subsidies.

Changes in accumulated comprehensive income (loss) are as follows:



	Year Ended December 31,
	2018									2017
	CenterPoint Energy			Houston Electric			CERC			CenterPoint Energy			Houston Electric			CERC
	(in millions)
Beginning Balance	$	(68	)	$	—		$	6		$	(71	)	$	1		$	3
Other comprehensive income (loss) before reclassifications:
Remeasurement of pension and other postretirement plans	(19		)	—			1			4			—			7
Deferred loss from interest rate derivatives (1)	(19		)	(18		)	(1		)	(5		)	(1		)	(2		)
Amounts reclassified from accumulated other comprehensive loss:
Prior service cost (2)	1			—			1			1			—			1
Actuarial losses (2)	6			—			—			7			—			—
Tax benefit (expense)	6			4			(1		)	(4		)	—			(3		)
Net current period other comprehensive income (loss)	(25		)	(14		)	—			3			(1		)	3
Adoption of ASU 2018-02	(15		)	—			(1		)	—			—			—
Ending Balance	$	(108	)	$	(14	)	$	5		$	(68	)	$	—		$	6


(1)	Gains and losses are reclassified from Accumulated other comprehensive income into income when the hedged transactions affect earnings. The reclassification amounts are included in Interest and other finance charges in each of the Registrant’s respective Statements of Consolidated Income. Amounts are less than $1 million for each of the years ended December 31, 2018 and 2017, respectively.


(2)	Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income.