Accumulated Other Comprehensive Income

Nov. 18, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income

Note 7. Accumulated Other Comprehensive Income

Dominion Energy

The following table presents Dominion Energy’s changes in AOCI by component, net of tax:

	Deferred gains and losses on derivatives- hedging activities			Unrealized gains and losses on investment securities			Unrecognized pension and other postretirement benefit costs			Other comprehensive loss from equity method investees			Total
(millions)
Three Months Ended September 30, 2019
Beginning balance	$	(389	)	$	30		$	(1,322	)	$	(2	)	$	(1,683	)
Other comprehensive income before reclassifications: gains (losses)		(107	)		8			(4	)		(1	)		(104	)
Amounts reclassified from AOCI: (gains) losses(1)		(6	)		(4	)		20			—			10
Net current period other comprehensive income (loss)		(113	)		4			16			(1	)		(94	)
Ending balance	$	(502	)	$	34		$	(1,306	)	$	(3	)	$	(1,777	)
Three Months Ended September 30, 2018
Beginning balance	$	(248	)	$	(2	)	$	(1,286	)	$	(2	)	$	(1,538	)
Other comprehensive income before reclassifications: gains (losses)		(27	)		(6	)		—			—			(33	)
Amounts reclassified from AOCI: (gains) losses(1)		30			3			18			—			51
Net current period other comprehensive income (loss)		3			(3	)		18			—			18
Ending balance	$	(245	)	$	(5	)	$	(1,268	)	$	(2	)	$	(1,520	)
Nine Months Ended September 30, 2019
Beginning balance	$	(235	)	$	2		$	(1,465	)	$	(2	)	$	(1,700	)
Other comprehensive income before reclassifications: gains (losses)		(209	)		37			109			(1	)		(64	)
Amounts reclassified from AOCI: (gains) losses(1)		(58	)		(5	)		50			—			(13	)
Net current period other comprehensive income (loss)		(267	)		32			159			(1	)		(77	)
Ending balance	$	(502	)	$	34		$	(1,306	)	$	(3	)	$	(1,777	)
Nine Months Ended September 30, 2018
Beginning balance	$	(302	)	$	747		$	(1,101	)	$	(3	)	$	(659	)
Other comprehensive income before reclassifications: gains (losses)		51			(24	)		—			1			28
Amounts reclassified from AOCI: (gains) losses(1)		71			4			60			—			135
Net current period other comprehensive income (loss)		122			(20	)		60			1			163
Cumulative-effect of changes in accounting principle		(64	)		(732	)		(227	)		—			(1,023	)
Less other comprehensive income attributable to noncontrolling interest		1			—			—			—			1
Ending balance	$	(245	)	$	(5	)	$	(1,268	)	$	(2	)	$	(1,520	)

(1) See table below for details about these reclassifications.

The following table presents Dominion Energy’s reclassifications out of AOCI by component:

Details about AOCI components	Amounts reclassified     from AOCI			Affected line item in the Consolidated Statements of Income
(millions)
Three Months Ended September 30, 2019
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	(35	)	Operating revenue
		2		Purchased gas
Interest rate contracts		14		Interest and related charges
Foreign currency contracts		12		Other income
Total		(7	)
Tax		1		Income tax expense
Total, net of tax	$	(6	)
Unrealized (gains) and losses on investment securities:
Realized (gain) loss on sale of securities	$	(5	)	Other income
Total		(5	)
Tax		1		Income tax expense
Total, net of tax	$	(4	)
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)	$	(5	)	Other income
Amortization of actuarial losses		31		Other income
Total		26
Tax		(6	)	Income tax expense
Total, net of tax	$	20
Three Months Ended September 30, 2018
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	26		Operating revenue
Interest rate contracts		12		Interest and related charges
Foreign currency contracts		2		Other income
Total		40
Tax		(10	)	Income tax expense
Total, net of tax	$	30
Unrealized (gains) and losses on investment securities:
Realized (gain) loss on sale of securities	$	3		Other income
Total		3
Tax		—		Income tax expense
Total, net of tax	$	3
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)	$	(5	)	Other income
Amortization of actuarial losses		30		Other income
Total		25
Tax		(7	)	Income tax expense
Total, net of tax	$	18

Details about AOCI components	Amounts reclassified     from AOCI			Affected line item in the Consolidated Statements of Income
(millions)
Nine Months Ended September 30, 2019
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	(127	)	Operating revenue
		(1	)	Purchased gas
Interest rate contracts		37		Interest and related charges
Foreign currency contracts		14		Other income
Total		(77	)
Tax		19		Income tax expense
Total, net of tax	$	(58	)
Unrealized (gains) and losses on investment securities:
Realized (gain) loss on sale of securities	$	(6	)	Other income
Total		(6	)
Tax		1		Income tax expense
Total, net of tax	$	(5	)
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)	$	(18	)	Other income
Amortization of actuarial losses		85		Other income
Total		67
Tax		(17	)	Income tax expense
Total, net of tax	$	50
Nine Months Ended September 30, 2018
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	55		Operating revenue
		2		Purchased gas
		(8	)	Electric fuel and other energy-related purchases
Interest rate contracts		36		Interest and related charges
Foreign currency contracts		10		Other income
Total		95
Tax		(24	)	Income tax expense
Total, net of tax	$	71
Unrealized (gains) and losses on investment securities:
Realized (gain) loss on sale of securities	$	5		Other income
Total		5
Tax		(1	)	Income tax expense
Total, net of tax	$	4
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)	$	(16	)	Other income
Amortization of actuarial losses		91		Other income
Total		75
Tax		(15	)	Income tax expense
Total, net of tax	$	60

Virginia Power

The following table presents Virginia Power’s changes in AOCI by component, net of tax:

	Deferred gains   and losses on derivatives- hedging activities			Unrealized gains   and losses on investment securities			Total
(millions)
Three Months Ended September 30, 2019
Beginning balance	$	(30	)	$	4		$	(26	)
Other comprehensive income before reclassifications: gains (losses)		(16	)		1			(15	)
Amounts reclassified from AOCI: (gains) losses(1)		—			—			—
Net current period other comprehensive income (loss)		(16	)		1			(15	)
Ending balance	$	(46	)	$	5		$	(41	)
Three Months Ended September 30, 2018
Beginning balance	$	(8	)	$	(1	)	$	(9	)
Other comprehensive income before reclassifications: gains (losses)		3			—			3
Amounts reclassified from AOCI: (gains) losses(1)		—			—			—
Net current period other comprehensive income (loss)		3			—			3
Ending balance	$	(5	)	$	(1	)	$	(6	)
Nine Months Ended September 30, 2019
Beginning balance	$	(13	)	$	1		$	(12	)
Other comprehensive income before reclassifications: gains (losses)		(34	)		5			(29	)
Amounts reclassified from AOCI: (gains) losses(1)		1			(1	)		—
Net current period other comprehensive income (loss)		(33	)		4			(29	)
Ending balance	$	(46	)	$	5		$	(41	)
Nine Months Ended September 30, 2018
Beginning balance	$	(12	)	$	74		$	62
Other comprehensive income before reclassifications: gains (losses)		10			(2	)		8
Amounts reclassified from AOCI: (gains) losses(1)		—			—			—
Net current period other comprehensive income (loss)		10			(2	)		8
Cumulative-effect of changes in accounting principle		(3	)		(73	)		(76	)
Ending balance	$	(5	)	$	(1	)	$	(6	)

(1) Virginia Power’s reclassifications out of AOCI were immaterial for both the three and nine months ended September 30, 2019 and 2018.

Dominion Energy Gas

The following table presents Dominion Energy Gas’ changes in AOCI by component, net of tax:

	Deferred gains     and losses on derivatives- hedging activities			Unrecognized     pension costs			Total
(millions)
Three Months Ended September 30, 2019
Beginning balance	$	(74	)	$	(112	)	$	(186	)
Other comprehensive income before reclassifications: gains (losses)		(36	)		(1	)		(37	)
Amounts reclassified from AOCI: (gains) losses(1)		9			1			10
Net current period other comprehensive income (loss)		(27	)		—			(27	)
Ending balance	$	(101	)	$	(112	)	$	(213	)
Three Months Ended September 30, 2018
Beginning balance	$	(24	)	$	(94	)	$	(118	)
Other comprehensive income before reclassifications: gains (losses)		4			—			4
Amounts reclassified from AOCI: (gains) losses(1)		4			2			6
Net current period other comprehensive income (loss)		8			2			10
Ending balance	$	(16	)	$	(92	)	$	(108	)
Nine Months Ended September 30, 2019
Beginning balance	$	(25	)	$	(144	)	$	(169	)
Other comprehensive income before reclassifications: gains (losses)		(87	)		28			(59	)
Amounts reclassified from AOCI: (gains) losses(1)		10			4			14
Net current period other comprehensive income (loss)		(77	)		32			(45	)
Less other comprehensive income (loss) attributable to noncontrolling interest		(1	)		—			(1	)
Ending balance	$	(101	)	$	(112	)	$	(213	)
Nine Months Ended September 30, 2018
Beginning balance	$	(23	)	$	(75	)	$	(98	)
Other comprehensive income before reclassifications: gains (losses)		(2	)		—			(2	)
Amounts reclassified from AOCI: (gains) losses(1)		15			4			19
Net current period other comprehensive income (loss)		13			4			17
Cumulative-effect of changes in accounting principle		(5	)		(21	)		(26	)
Less other comprehensive income (loss) attributable to noncontrolling interest		1			—			1
Ending balance	$	(16	)	$	(92	)	$	(108	)

(1) See table below for details about these reclassifications.

The following table presents Dominion Energy Gas’ reclassifications out of AOCI by component:

Details about AOCI components	Amounts reclassified     from AOCI			Affected line item in the Consolidated Statements of Income
(millions)
Three Months Ended September 30, 2019
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	(2	)	Net income from discontinued operations
Interest rate contracts		2		Interest and related charges
Foreign currency contracts		12		Other income
Total		12
Tax		(3	)	Income tax expense
Total, net of tax	$	9
Unrecognized pension costs:
Actuarial losses	$	1		Other income
Total		1
Tax		—		Income tax expense
Total, net of tax	$	1
Three Months Ended September 30, 2018
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	3		Net income from discontinued operations
Interest rate contracts		1		Interest and related charges
Foreign currency contracts		2		Other income
Total		6
Tax		(2	)	Income tax expense
Total, net of tax	$	4
Unrecognized pension costs:
Actuarial losses	$	2		Other income
Total		2
Tax		—		Income tax expense
Total, net of tax	$	2
Nine Months Ended September 30, 2019
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	(4	)	Net income from discontinued operations
Interest rate contracts		3		Interest and related charges
Foreign currency contracts		14		Other income
Total		13
Tax		(3	)	Income tax expense
Total, net of tax	$	10
Unrecognized pension costs:
Actuarial losses	$	5		Other income
Total		5
Tax		(1	)	Income tax expense
Total, net of tax	$	4
Nine Months Ended September 30, 2018
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	8		Net income from discontinued operations
Interest rate contracts		3		Interest and related charges
Foreign currency contracts		10		Other income
Total		21
Tax		(6	)	Income tax expense
Total, net of tax	$	15
Unrecognized pension costs:
Actuarial losses	$	5		Other income
Total		5
Tax		(1	)	Income tax expense
Total, net of tax	$	4