Segment and Related Information

9 Months Ended

Sep. 30, 2015

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 $104 million and $303 million for the three and nine months ended September 30, 2015, respectively, and $103 million and $243 million for the three and nine months ended September 30, 2014, 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 nine months ended September 30, 2015 and 2014 was as follows:

	Electric Utilities
	Traditional Operating Companies		Southern Power		Eliminations			Total		All Other			Eliminations			Consolidated
	(in millions)
Three Months Ended September 30, 2015:
Operating revenues	$	5,098	$	401	$	(109	)	$	5,390	$	37		$	(26	)	$	5,401
Segment net income (loss)(a)(b)	874		102		—			976		(18		)	1			959
Nine Months Ended September 30, 2015:
Operating revenues	$	13,123	$	1,086	$	(322	)	$	13,887	$	120		$	(86	)	$	13,921
Segment net income (loss)(a)(c)	1,912		181		—			2,093		3			—			2,096
Total assets at September 30, 2015	$	67,750	$	7,040	$	(404	)	$	74,386	$	1,480		$	(651	)	$	75,215
Three Months Ended September 30, 2014:
Operating revenues	$	5,007	$	435	$	(115	)	$	5,327	$	34		$	(22	)	$	5,339
Segment net income (loss)(a)(b)	658		64		—			722		(2		)	(2		)	718
Nine Months Ended September 30, 2014:
Operating revenues	$	13,594	$	1,115	$	(301	)	$	14,408	$	114		$	(72	)	$	14,450
Segment net income (loss)(a)(c)	1,557		128		—			1,685		—			(5		)	1,680
Total assets at December 31, 2014	$	64,644	$	5,550	$	(131	)	$	70,063	$	1,156		$	(296	)	$	70,923

(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 September 30, 2015 and September 30, 2014 includes pre-tax charges of $150 million ($93 million after tax) and a pre-tax charge of $418 million ($258 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.

(c) Segment net income (loss) for the traditional operating companies for the nine months ended September 30, 2015 and September 30, 2014 includes pre-tax charges of $182 million ($112 million after tax) and pre-tax charges of $798 million ($493 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 September 30, 2015	$	4,701	$	520	$	169	$	5,390
Three Months Ended September 30, 2014	4,558		600		169		5,327
Nine Months Ended September 30, 2015	$	11,958	$	1,435	$	494	$	13,887
Nine Months Ended September 30, 2014	12,186		1,719		503		14,408