Segment and Related Information

3 Months Ended

Mar. 31, 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 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 $97 million and $114 million for the three months ended March 31, 2016 and March 31, 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 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 months ended March 31, 2016 and 2015 was as follows:

	Electric Utilities
	Traditional Operating Companies		Southern Power		Eliminations			Total		All Other			Eliminations			Consolidated
	(in millions)
Three Months Ended March 31, 2016:
Operating revenues	$	3,742	$	315	$	(103	)	$	3,954	$	47		$	(36	)	$	3,965
Segment net income (loss)(a)(b)	464		50		—			514		(26		)	(3		)	485
Total assets at March 31, 2016	$	69,240	$	8,999	$	(396	)	$	77,843	$	2,070		$	(1,178	)	$	78,735
Three Months Ended March 31, 2015:
Operating revenues	$	3,948	$	348	$	(124	)	$	4,172	$	40		$	(29	)	$	4,183
Segment net income (loss)(a)(b)	477		33		—			510		3			(5		)	508
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 operating companies includes pre-tax charges for estimated probable losses on the Kemper IGCC of $53 million ($33 million after tax) and $9 million ($6 million after tax) for the three months ended March 31, 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 March 31, 2016	$	3,377	$	396	$	181	$	3,954
Three Months Ended March 31, 2015	3,542		467		163		4,172