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Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The table below shows the allocation of the purchase price to the assets acquired and liabilities assumed at closing, which reflects certain adjustments related to income taxes, as discussed in Note 5, from the preliminary valuation recognized during the measurement period.

	Amount
(millions)
Total current assets⁽¹⁾		$	1,782
Investments⁽²⁾			224
Property, plant and equipment⁽³⁾⁽⁴⁾			11,006
Goodwill			2,609
Regulatory assets⁽⁵⁾			3,940
Other deferred charges and other assets, including intangible assets⁽⁶⁾			430
Total Assets			19,991
Total current liabilities⁽⁷⁾			1,556
Long-term debt			6,707
Deferred income taxes			1,068
Regulatory liabilities			2,706
Other deferred credits and other liabilities⁽⁸⁾			1,115
Total Liabilities			13,152
Total purchase price⁽⁹⁾		$	6,839

(1)	Includes $389 million of cash, restricted cash and equivalents, of which $115 million is considered restricted.

(2)	Includes $31 million for equity method investments. The fair value adjustment on the equity method investments is considered to be equity method goodwill and is not amortized.

(3)

Includes $105 million of certain property, plant and equipment associated with the NND Project for which Dominion Energy committed to forgo recovery in accordance with the SCANA Merger Approval Order. As a result, Dominion Energy’s Consolidated Statements of Income for the year ended December 31, 2019 include a charge of $105 million ($79 million after-tax), included in impairment of assets and other charges (reflected in the Corporate and Other segment).

(4)	Nonregulated property, plant and equipment, excluding land, will be depreciated on a straight-line basis over the remaining useful lives of such property, primarily ranging from 5 to 78 years.

(5)	Includes $258 million of certain income tax-related regulatory assets associated with the NND Project for which Dominion Energy committed to forgo recovery in accordance with the SCANA Merger Approval Order. See Note 5 for additional information.

(6)	Intangible assets have an estimated weighted-average amortization period of approximately five years.

(7)	Includes $40 million outstanding under letters of credit advances, which were repaid in January 2019, as well as $173 million outstanding commercial paper under various credit facilities. All such credit facilities were terminated in 2019.

(8)	Includes a $379 million pension and other postretirement benefit liability.

(9)	Includes stock-based compensation awards with a fair value of $21 million.

Business Acquisition, Pro Forma Information

The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of the combined company.

	Twelve Months Ended
	December 31, 2019⁽¹⁾
(millions, except EPS)
Operating revenue	$	15,408
Net income attributable to Dominion Energy		3,266
Earnings Per Common Share – Basic	$	4.04
Earnings Per Common Share – Diluted	$	4.00

(1)	Amounts include adjustments for non-recurring costs directly related to the SCANA Combination.

GT&S Transaction | Dominion Energy Gas Holdings, LLC

Results of Operations Reported within Discontinued Operations

The following table represents selected information regarding the results of operations, which are reported within discontinued operations in Dominion Energy’s Consolidated Statements of Income:

	Year Ended December 31, 2021		Year Ended December 31, 2020						Year Ended December 31, 2019
	Q-Pipe Group⁽¹⁾		GT&S Transaction⁽¹⁾			Q-Pipe Group			GT&S Transaction		Q-Pipe Group
(millions)
Operating revenue	$	254	$	1,710		$	246		$	2,213	$	251
Operating expense⁽²⁾		76		1,289			96			1,367		131
Other income (loss)⁽³⁾		28		88			1			58		4
Interest and related charges⁽⁴⁾		25		372			20			267		20
Income before income taxes		181		137			131			637		104
Income tax expense (benefit)⁽⁵⁾		36		334			(9	)		120		23
Net income (loss) including noncontrolling interests		145		(197	)		140			517		81
Noncontrolling interests		—		106			—			11		—
Net income (loss) attributable to Dominion Energy	$	145	$	(303	)	$	140		$	506	$	81

(1)	Operations associated with the Q-Pipe Group are through the December 31, 2021 closing date. Operations associated with the GT&S Transaction are through the November 1, 2020 closing date.

(2)

GT&S Transaction includes a charge of $482 million ($359 million after-tax) recorded in the second quarter of 2020 associated with the probable abandonment of a significant portion of the Supply Header Project as well as the establishment of a $75 million ARO as a result of the cancellation of the Atlantic Coast Pipeline Project.

(3)	Q-Pipe Group includes a $25 million benefit associated with the termination of the Q-Pipe Transaction in the third quarter of 2021.

(4)	GT&S Transaction includes a loss of $237 million ($178 million after-tax) recorded in the third quarter of 2020 associated with cash flow hedges of debt-related items that were determined to be probable of not occurring.

(5)	Excludes $17 million income tax benefit recorded in 2021 associated with the GT&S Transaction.

Schedule of Major Classes of Assets and Liabilities Reported As Held for Sale in Discontinued Operations

The carrying amounts of major classes of assets and liabilities relating to the Q-Pipe Group, all of which was classified as current and reported as held for sale in Dominion Energy’s Consolidated Balance Sheets at December 31, 2020, were as follows:


(millions)
Current assets⁽¹⁾	$	47
Equity method investments⁽²⁾		35
Property, plant and equipment, net		1,113
Other deferred charges and other assets, including goodwill⁽³⁾and intangible assets		224
Current liabilities		30
Long-term debt		426
Other deferred credits and liabilities		154

(1)	Includes cash and cash equivalents of $7 million.

(2)	Comprised of equity method investment in White River Hub.

(3)	Includes goodwill of $191 million.

Capital Expenditures and Significant Noncash Items Relating to the Disposal Groups

Capital expenditures and significant noncash items relating to the disposal groups included the following:

	Year Ended December 31, 2021		Year Ended December 31, 2020				Year Ended December 31, 2019
	Q-Pipe Group⁽¹⁾		GT&S Transaction⁽¹⁾		Q-Pipe Group		GT&S Transaction		Q-Pipe Group
(millions)
Capital expenditures	$	34	$	292	$	38	$	386	$	42
Significant noncash items
Impairment of assets and other charges		—		469		—		13		1
Charge related to a voluntary retirement program		—		—		—		19		3
Depreciation, depletion and amortization		—		177		27		322		51
Accrued capital expenditures		—		—		1		25		2

(1)	Operations associated with the Q-Pipe Group are through the December 31, 2021 closing date. Operations associated with the GT&S Transaction are through the November 1, 2020 closing date.