Dominion Power 2007 Annual Report Download - page 89

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N
OTE
14. G
OODWILL AND
I
NTANGIBLE
A
SSETS
Goodwill
The changes in the carrying amount of goodwill during the year ended December 31, 2007 are presented below:
Dominion
Generation
Dominion
Energy
Dominion
Delivery
Dominion
E&P DVP
Corporate
and
Other Total
(millions)
Balance at December 31, 2006 $1,479 $740 $ 1,184 $ 877 $ — $ 18 $4,298
Sale of non-Appalachian E&P business — — — (760) — (760)
Sale of Peaker facilities (24) — — — — — (24)
Sale of Gichner and Dallastown —————(18) (18)
Reallocation due to segment realignment(1) — 121 (1,184) (117) 1,084 96 —
Balance at December 31, 2007 $1,455 $861 $ — $ — $1,084 $ 96 $3,496
(1) Reflects the reallocation of goodwill due to the transfer of:
• Regulated electric distribution and nonregulated retail energy marketing operations from Dominion Delivery to DVP;
• Dominion East Ohio from Dominion Delivery to Dominion Energy;
• Regulated electric transmission operations from Dominion Energy to DVP;
• Appalachian E&P operations from Dominion E&P to Dominion Energy; and
• Peoples and Hope operations from Dominion Delivery to Corporate and Other.
There was no impairment of or material change to the carrying amount or segment allocation of goodwill in 2006 or 2005.
Other Intangible Assets
All of our intangible assets, other than goodwill, are subject to
amortization over their estimated useful lives. Amortization
expense for intangible assets was $115 million, $106 million and
$130 million for 2007, 2006 and 2005, respectively. In 2007, we
acquired $77 million of intangible assets, primarily representing
software and emissions allowances, with an estimated weighted-
average amortization period of approximately 10.9 years. The
components of our intangible assets are as follows:
At December 31, 2007 2006
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
(millions)
Software and software
licenses $ 591 $340 $ 642 $359
Emissions allowances 168 39 177 30
Other 262 44 235 37
Total $1,021 $423 $1,054 $426
Annual amortization expense for these intangible assets is
estimated to be $83 million for 2008, $76 million for 2009, $62
million for 2010, $35 million for 2011 and $23 million for
2012.
Dominion 2007 Annual Report 87