Segment and Related Information

6 Months Ended

Jun. 30, 2014

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 operating companies and Southern Power. The four traditional 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 operating companies and Southern Power. Revenues from sales by Southern Power to the traditional operating companies were $68 million and $140 million for the three and six months ended June 30, 2014, respectively, and $89 million and $167 million for the three and six months ended June 30, 2013, 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 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, 2014 and 2013 was as follows:

	Electric Utilities
	Traditional Operating Companies		Southern Power		Eliminations			Total		All Other			Eliminations			Consolidated
	(in millions)
Three Months Ended June 30, 2014:
Operating revenues	$	4,209	$	329	$	(84	)	$	4,454	$	39		$	(26	)	$	4,467
Segment net income (loss)(a)	580		31		—			611		2			(2		)	611
Six Months Ended June 30, 2014:
Operating revenues	$	8,587	$	680	$	(186	)	$	9,081	$	80		$	(50	)	$	9,111
Segment net income (loss)(a)(c)	899		64		—			963		2			(3		)	962
Total assets at June 30, 2014	$	61,210	$	4,605	$	(132	)	$	65,683	$	1,356		$	(639	)	$	66,400
Three Months Ended June 30, 2013:
Operating revenues	$	4,018	$	307	$	(95	)	$	4,230	$	38		$	(22	)	$	4,246
Segment net income (loss)(a)(b)	268		28		—			296		4			(3		)	297
Six Months Ended June 30, 2013:
Operating revenues	$	7,687	$	610	$	(181	)	$	8,116	$	73		$	(46	)	$	8,143
Segment net income (loss)(a)(c)	334		57		—			391		(12		)	(1		)	378
Total assets at December 31, 2013	$	59,447	$	4,429	$	(101	)	$	63,775	$	1,077		$	(306	)	$	64,546

(a) After dividends on preferred and preference stock of subsidiaries.

(b) Segment net income (loss) for the traditional operating companies for the three months ended June 30, 2013 includes a $450.0 million pre-tax charge ($277.9 million after tax) for an estimated probable loss on the Kemper IGCC. See Note (B) under "Integrated Coal Gasification Combined Cycle – Kemper IGCC Schedule and Cost Estimate" herein for additional information.

(c) Segment net income (loss) for the traditional operating companies for the six months ended June 30, 2014 and June 30, 2013 includes $380.0 million in pre-tax charges ($234.7 million after tax) and $990.0 million in pre-tax charges ($611.3 million after tax), respectively, for estimated probable losses on the Kemper IGCC. See Note (B) under "Integrated Coal Gasification Combined Cycle – Kemper IGCC Schedule and Cost Estimate" herein for additional information.

Products and Services

	Electric Utilities' Revenues
Period	Retail		Wholesale		Other		Total
	(in millions)
Three Months Ended June 30, 2014	$	3,770	$	515	$	169	$	4,454
Three Months Ended June 30, 2013	3,620		454		156		4,230
Six Months Ended June 30, 2014	$	7,628	$	1,119	$	334	$	9,081
Six Months Ended June 30, 2013	6,918		886		312		8,116