Introduction (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Goodwill

Goodwill at March 31, 2022 and December 31, 2021 was as follows:

	Goodwill
	(in millions)
Southern Company	$	5,280
Southern Company Gas:
Gas distribution operations	$	4,034
Gas marketing services	981
Southern Company Gas total	$	5,015

Schedule of Other Intangible Assets, Indefinite-Lived

Other intangible assets were as follows:

	At March 31, 2022						At December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net
	(in millions)						(in millions)
Southern Company
Other intangible assets subject to amortization:
Customer relationships	$	212	$	(152)	$	60	$	212	$	(150)	$	62
Trade names	64		(41)		23		64		(38)		26
PPA fair value adjustments	390		(114)		276		390		(109)		281
Other	11		(10)		1		11		(10)		1
Total other intangible assets subject to amortization	$	677	$	(317)	$	360	$	677	$	(307)	$	370
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—		75		75		—		75
Total other intangible assets	$	752	$	(317)	$	435	$	752	$	(307)	$	445
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(114)	$	276	$	390	$	(109)	$	281
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(132)	$	24	$	156	$	(130)	$	26
Trade names	26		(16)		10		26		(15)		11
Total other intangible assets subject to amortization	$	182	$	(148)	$	34	$	182	$	(145)	$	37

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:

	At March 31, 2022						At December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Other Intangible Assets, Net
	(in millions)						(in millions)
Southern Company
Other intangible assets subject to amortization:
Customer relationships	$	212	$	(152)	$	60	$	212	$	(150)	$	62
Trade names	64		(41)		23		64		(38)		26
PPA fair value adjustments	390		(114)		276		390		(109)		281
Other	11		(10)		1		11		(10)		1
Total other intangible assets subject to amortization	$	677	$	(317)	$	360	$	677	$	(307)	$	370
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—		75		75		—		75
Total other intangible assets	$	752	$	(317)	$	435	$	752	$	(307)	$	445
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(114)	$	276	$	390	$	(109)	$	281
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(132)	$	24	$	156	$	(130)	$	26
Trade names	26		(16)		10		26		(15)		11
Total other intangible assets subject to amortization	$	182	$	(148)	$	34	$	182	$	(145)	$	37

Schedule of Amortization of Other Intangible Assets

Amortization associated with other intangible assets was as follows:

	Three Months Ended
	March 31, 2022
	(in millions)
Southern Company(a)	$	10
Southern Power(b)	5
Southern Company Gas	3

(a)Includes $5 million recorded as a reduction to operating revenues.

(b)Recorded as a reduction to operating revenues.

Schedule of Restrictions on Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:

	Southern Company				Southern Power				Southern Company Gas
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
	(in millions)
Cash and cash equivalents	$	1,662	$	1,798	$	130	$	107	$	31	$	45
Restricted cash(a):
Other current assets	2		2		—		—		2		2
Other deferred charges and assets	9		29		9		29		—		—
Total cash, cash equivalents, and restricted cash(b)	$	1,673	$	1,829	$	139	$	135	$	33	$	48

(a)For Southern Power, restricted cash reflects $9 million and $10 million at March 31, 2022 and December 31, 2021, respectively, held to fund estimated construction completion costs at the Deuel Harvest wind facility and $19 million at December 31, 2021 related to tax equity contributions restricted until the Garland battery energy storage facility achieved final contracted capacity. For Southern Company Gas, reflects restricted cash held as collateral for workers' compensation, life insurance, and long-term disability insurance.

(b)Total may not add due to rounding.

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amount shown in the condensed statements of cash flows for the applicable Registrants:

	Southern Company				Southern Power				Southern Company Gas
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
	(in millions)
Cash and cash equivalents	$	1,662	$	1,798	$	130	$	107	$	31	$	45
Restricted cash(a):
Other current assets	2		2		—		—		2		2
Other deferred charges and assets	9		29		9		29		—		—
Total cash, cash equivalents, and restricted cash(b)	$	1,673	$	1,829	$	139	$	135	$	33	$	48

(a)For Southern Power, restricted cash reflects $9 million and $10 million at March 31, 2022 and December 31, 2021, respectively, held to fund estimated construction completion costs at the Deuel Harvest wind facility and $19 million at December 31, 2021 related to tax equity contributions restricted until the Garland battery energy storage facility achieved final contracted capacity. For Southern Company Gas, reflects restricted cash held as collateral for workers' compensation, life insurance, and long-term disability insurance.

(b)Total may not add due to rounding.