Note 11. Goodwill and Intangible Assets

Goodwill

The changes in Dominion Energy’s carrying amount and segment allocation of goodwill are presented below:

 

 

Dominion Energy Virginia

 

 

Dominion Energy South Carolina

 

 

Contracted Energy

 

 

Corporate and Other

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2023(1)

$

2,106

 

 

$

1,521

 

 

$

516

 

 

$

 

 

$

4,143

 

No events affecting goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2024(1)

$

2,106

 

 

$

1,521

 

 

$

516

 

 

$

 

 

$

4,143

 

No events affecting goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2025(1)

$

2,106

 

 

$

1,521

 

 

$

516

 

 

$

 

 

$

4,143

 

 

(1)
Goodwill amounts do not contain any accumulated impairment losses.

Other Intangible Assets

The Companies’ other intangible assets are subject to amortization over their estimated useful lives. Dominion Energy’s amortization expense for software, licenses and other intangible assets was $111 million, $87 million and $160 million for the years ended December 31, 2025, 2024 and 2023, respectively. In 2025, Dominion Energy acquired $962 million of intangible assets, primarily representing renewable energy credits and software, with an estimated weighted-average amortization period of approximately 4 years. Amortization expense for Virginia Power’s software, licenses and other intangible assets was $74 million, $51 million and $123 million for the years ended December 31, 2025, 2024 and 2023, respectively. In 2025, Virginia Power acquired $872 million of intangible assets, primarily representing renewable energy credits and software, with an estimated weighted-average amortization period of 3 years.

 

The components of intangible assets are as follows:

 

 

2025

 

 

2024

 

At December 31,

Gross
Carrying
Amount

 

Accumulated
Amortization

 

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

(millions)

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

Software, licenses and
   other

$

1,950

 

$

820

 

 

$

1,645

 

$

708

 

Renewable energy
   credits
(1)

 

552

 

 

 

 

 

199

 

 

 

Virginia Power

 

 

 

 

 

 

 

 

 

Software, licenses and
   other

$

1,125

 

$

365

 

 

$

911

 

$

291

 

Renewable energy
   credits
(1)

 

550

 

 

 

 

 

198

 

 

 

 

(1)
Includes $342 million and $370 million of renewable energy credits consumed and retired in 2025 and 2024, respectively. All amounts for renewable energy credits were deferred to regulatory assets upon consumption.

Annual amortization expense for intangible assets, excluding renewable energy credits which are deferred to regulatory assets, is estimated to be as follows:

 

 

 

 

 

 

 

 

 

 

 

 

(millions)

 

2026

 

2027

 

2028

 

2029

 

2030

 

Dominion Energy

 

$

107

 

$

97

 

$

84

 

$

72

 

$

46

 

Virginia Power

 

 

70

 

 

65

 

 

56

 

 

50

 

 

31

 

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 27, 2025
2023Feb 23, 2024
2022Feb 21, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 26, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.