Segment and Related Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

SEGMENT AND RELATED INFORMATION

SEGMENT AND RELATED INFORMATION

The primary business of the Southern Company system is electricity sales by the traditional electric operating companies and Southern Power. The four traditional electric operating companies – Alabama Power, Georgia Power, Gulf Power, and Mississippi Power – are vertically integrated utilities providing electric service in four Southeastern states. Southern Power constructs, acquires, owns, and manages generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market.

Southern Company's reportable business segments are the sale of electricity by the four traditional electric operating companies and Southern Power. Revenues from sales by Southern Power to the traditional electric operating companies were $107 million and $204 million for the three and six months ended June 30, 2016, respectively, and $85 million and $199 million for the three and six months ended June 30, 2015, respectively. The "All Other" column includes parent Southern Company, which does not allocate operating expenses to business segments. Also, this category includes segments below the quantitative threshold for separate disclosure. These segments include products and services in the areas of distributed generation, energy efficiency, and utility infrastructure, as well as investments in telecommunications and leveraged lease projects. All other inter-segment revenues are not material.

Financial data for business segments and products and services for the three and six months ended June 30, 2016 and 2015 was as follows:

	Electric Utilities
	Traditional Electric Operating Companies		Southern Power		Eliminations			Total		All Other			Eliminations			Consolidated
	(in millions)
Three Months Ended June 30, 2016:
Operating revenues	$	4,115	$	373	$	(109	)	$	4,379	$	125		$	(45	)	$	4,459
Segment net income (loss)(a)(b)	595		89		—			684		(68		)	(4		)	612
Six Months Ended June 30, 2016:
Operating revenues	$	7,884	$	688	$	(212	)	$	8,360	$	172		$	(81	)	$	8,451
Segment net income (loss)(a)(c)	1,059		139		—			1,198		(94		)	(7		)	1,097
Total assets at June 30, 2016	$	70,706	$	11,082	$	(425	)	$	81,363	$	10,505		$	(995	)	$	90,873
Three Months Ended June 30, 2015:
Operating revenues	$	4,077	$	337	$	(90	)	$	4,324	$	43		$	(30	)	$	4,337
Segment net income (loss)(a)(b)	561		46		—			607		18			4			629
Six Months Ended June 30, 2015:
Operating revenues	$	8,025	$	684	$	(213	)	$	8,496	$	83		$	(59	)	$	8,520
Segment net income (loss)(a)(c)	1,038		79		—			1,117		21			—			1,138
Total assets at December 31, 2015	$	69,052	$	8,905	$	(397	)	$	77,560	$	1,819		$	(1,061	)	$	78,318

(a) Attributable to Southern Company.

(b) Segment net income (loss) for the traditional electric operating companies includes pre-tax charges for estimated probable losses on the Kemper IGCC of $81 million ($50 million after tax) and $23 million ($14 million after tax) for the three months ended June 30, 2016 and 2015, respectively. See Note (B) under "Integrated Coal Gasification Combined Cycle – Kemper IGCC Schedule and Cost Estimate" for additional information.

(c) Segment net income (loss) for the traditional electric operating companies includes pre-tax charges for estimated probable losses on the Kemper IGCC of $134 million ($83 million after tax) and $32 million ($20 million after tax) for the six months ended June 30, 2016 and 2015, respectively. See Note (B) under "Integrated Coal Gasification Combined Cycle – Kemper IGCC Schedule and Cost Estimate" for additional information.

Products and Services

	Electric Utilities' Revenues
Period	Retail		Wholesale		Other		Total
	(in millions)
Three Months Ended June 30, 2016	$	3,748	$	446	$	185	$	4,379
Three Months Ended June 30, 2015	3,714		448		162		4,324
Six Months Ended June 30, 2016	$	7,124	$	842	$	394	$	8,360
Six Months Ended June 30, 2015	7,256		915		325		8,496