Segment and Related Information

12 Months Ended

Dec. 31, 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 $417 million, $383 million, and $346 million in 2015, 2014, and 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 years ended December 31, 2015, 2014, and 2013 was as follows:

	Electric Utilities
	Traditional Operating Companies		Southern Power			Eliminations			Total		All Other			Eliminations			Consolidated
	(in millions)
2015
Operating revenues	$	16,491	$	1,390		$	(439	)	$	17,442	$	152		$	(105	)	$	17,489
Depreciation and amortization	1,772		248			—			2,020		14			—			2,034
Interest income	19		2			1			22		6			(5		)	23
Interest expense	697		77			—			774		69			(3		)	840
Income taxes	1,305		21			—			1,326		(132		)	—			1,194
Segment net income (loss)(a) (b)	2,186		215			—			2,401		(32		)	(2		)	2,367
Total assets	69,052		8,905			(397		)	77,560		1,819			(1,061		)	78,318
Gross property additions	5,124		1,005			—			6,129		40			—			6,169
2014
Operating revenues	$	17,354	$	1,501		$	(449	)	$	18,406	$	159		$	(98	)	$	18,467
Depreciation and amortization	1,709		220			—			1,929		16			—			1,945
Interest income	17		1			—			18		3			(2		)	19
Interest expense	705		89			—			794		43			(2		)	835
Income taxes	1,056		(3		)	—			1,053		(76		)	—			977
Segment net income (loss)(a) (b)	1,797		172			—			1,969		(3		)	(3		)	1,963
Total assets(c)	64,300		5,233			(131		)	69,402		1,143			(312		)	70,233
Gross property additions	5,568		942			—			6,510		11			1			6,522
2013
Operating revenues	$	16,136	$	1,275		$	(376	)	$	17,035	$	139		$	(87	)	$	17,087
Depreciation and amortization	1,711		175			—			1,886		15			—			1,901
Interest income	17		1			—			18		2			(1		)	19
Interest expense	714		74			—			788		36			—			824
Income taxes	889		46			—			935		(85		)	(1		)	849
Segment net income (loss)(a) (b)	1,486		166			—			1,652		(10		)	2			1,644
Total assets(c)	59,188		4,417			(101		)	63,504		1,064			(304		)	64,264
Gross property additions	5,226		633			—			5,859		9			—			5,868

(a) Attributable to Southern Company.

(b) Segment net income (loss) for the traditional operating companies includes pre-tax charges for estimated probable losses on the Kemper IGCC of $365 million ($226 million after tax) in 2015, $868 million ($536 million after tax) in 2014, and $1.2 billion ($729 million after tax) in 2013. See Note 3 under "Integrated Coal Gasification Combined Cycle – Kemper IGCC Schedule and Cost Estimate" for additional information.

(c) Net of $202 million and $139 million of unamortized debt issuance costs as of December 31, 2014 and 2013, respectively.Also net of $488 million and $143 million of deferred tax assets as of December 31, 2014 and 2013, respectively. See Note 1 under "Recently Issued Accounting Standards" for additional information.

Products and Services

Electric Utilities' Revenues
Year	Retail		Wholesale		Other		Total
	(in millions)
2015	$	14,987	$	1,798	$	657	$	17,442
2014	15,550		2,184		672		18,406
2013	14,541		1,855		639		17,035