Introduction (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The specific impacts of applying ASC 606 to revenues from contracts with customers on the financial statements of Southern Company, Alabama Power, Georgia Power, and Southern Company Gas as of and for the three months ended March 31, 2018 compared to previously recognized guidance is shown below.

	As of and for the Three Months Ended March 31, 2018
	As Reported			Balances Without Adoption of ASC 606			Effect of Change
	(in millions)
Southern Company
Condensed Consolidated Statements of Income
Natural gas revenues	$	1,607		$	1,593		$	14
Other revenues	413			412			1
Other operations and maintenance	1,451			1,441			10
Operating income	1,376			1,371			5
Other income (expense), net	60			51			9
Earnings before income taxes	1,049			1,035			14
Income taxes	113			109			4
Consolidated net income	936			926			10
Consolidated net income attributable to Southern Company	938			928			10
Basic earnings per share	$	0.93		$	0.92		$	0.01
Diluted earnings per share	$	0.92		$	0.91		$	0.01
Condensed Consolidated Statements of Cash Flow
Consolidated net income	$	936		$	926		$	10
Changes in certain current assets and liabilities:
Receivables	197			211			(14		)
Other current assets	7			(7		)	14
Accrued taxes	(79		)	(75		)	(4		)
Other current liabilities	81			67			14

	As of and for the Three Months Ended March 31, 2018
	As Reported		Balances Without Adoption of ASC 606			Effect of Change
	(in millions)
Condensed Consolidated Balance Sheet
Unbilled revenues	$	777	$	822		$	(45	)
Other accounts and notes receivable	703		709			(6		)
Other current assets	286		235			51
Accrued taxes	368		364			4
Other current liabilities	923		937			(14		)
Retained earnings	9,257		9,247			10
Alabama Power
Condensed Statements of Income
Other revenues	$	63	$	55		$	8
Other operations and maintenance	387		377			10
Operating income	372		374			(2		)
Other income (expense), net	5		3			2
Georgia Power
Condensed Statements of Income
Other revenues	$	109	$	94		$	15
Other operations and maintenance	408		394			14
Operating income	513		512			1
Other income (expense), net	38		39			(1		)
Condensed Statements of Cash Flows
Changes in certain current assets and liabilities:
Receivables	$	135	$	145		$	(10	)
Other current assets	9		(1		)	10
Condensed Balance Sheet
Unbilled revenues	$	189	$	202		$	(13	)
Other accounts and notes receivable	77		83			(6		)
Other current assets	39		20			19

	As of and for the Three Months Ended March 31, 2018
	As Reported			Balances Without Adoption of ASC 606			Effect of Change
	(in millions)
Southern Company Gas
Condensed Statements of Income
Natural gas revenues	$	1,631		$	1,617		$	14
Operating income	388			374			14
Earnings before income taxes	383			369			14
Income taxes	104			100			4
Net income	279			269			10
Condensed Statements of Cash Flows
Net income	$	279		$	269		$	10
Changes in certain current assets and liabilities:
Accrued taxes	28			32			(4		)
Other current liabilities	48			34			14
Condensed Consolidated Balance Sheet
Accrued income taxes	$	77		$	73		$	4
Other current liabilities	143			157			(14		)
Accumulated deficit	(55		)	(65		)	10

Schedule of Goodwill

At March 31, 2018 and December 31, 2017, goodwill was as follows:

	Goodwill
	At March 31, 2018		At December 31, 2017
	(in millions)
Southern Company	$	6,226	$	6,268
Southern Power	$	2	$	2
Southern Company Gas
Gas distribution operations	$	4,702	$	4,702
Gas marketing services	1,223		1,265
Southern Company Gas total	$	5,925	$	5,967

Schedule of Goodwill and Other Intangible Assets

Other intangible assets were as follows:

	At March 31, 2018							At December 31, 2017
	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	$	288	$	(93	)	$	195	$	288	$	(83	)	$	205
Trade names	159		(19		)	140		159		(17		)	142
Storage and transportation contracts	64		(40		)	24		64		(34		)	30
PPA fair value adjustments	456		(54		)	402		456		(47		)	409
Other	18		(6		)	12		17		(5		)	12
Total other intangible assets subject to amortization	$	985	$	(212	)	$	773	$	984	$	(186	)	$	798
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—			75		75		—			75
Total other intangible assets	$	1,060	$	(212	)	$	848	$	1,059	$	(186	)	$	873
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	456	$	(54	)	$	402	$	456	$	(47	)	$	409
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	221	$	(86	)	$	135	$	221	$	(77	)	$	144
Trade names	115		(10		)	105		115		(9		)	106
Wholesale gas services
Storage and transportation contracts	64		(40		)	24		64		(34		)	30
Total other intangible assets subject to amortization	$	400	$	(136	)	$	264	$	400	$	(120	)	$	280

Finite-lived Intangible Assets Amortization Expense

Amortization associated with other intangible assets was as follows:

	Three Months Ended
	March 31, 2018
	(in millions)
Southern Company	$	26
Southern Power	$	7
Southern Company Gas	$	16

Schedule of Cash and Cash Equivalents

The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amounts shown in the condensed statements of cash flows for the registrants that had restricted cash at March 31, 2018 and/or December 31, 2017:

	Southern Company		Southern Company Gas
	(in millions)
At March 31, 2018
Cash and cash equivalents	$	2,284	$	94
Restricted cash:
Other accounts and notes receivable	6		6
Total cash, cash equivalents, and restricted cash	$	2,290	$	100

	Southern Company		Southern Power		Southern Company Gas
	(in millions)
At December 31, 2017
Cash and cash equivalents	$	2,130	$	129	$	73
Restricted cash:
Other accounts and notes receivable	5		—		5
Deferred charges and other assets	12		11		—
Total cash, cash equivalents, and restricted cash	$	2,147	$	140	$	78

Restrictions on Cash and Cash Equivalents

The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amounts shown in the condensed statements of cash flows for the registrants that had restricted cash at March 31, 2018 and/or December 31, 2017:

	Southern Company		Southern Company Gas
	(in millions)
At March 31, 2018
Cash and cash equivalents	$	2,284	$	94
Restricted cash:
Other accounts and notes receivable	6		6
Total cash, cash equivalents, and restricted cash	$	2,290	$	100

	Southern Company		Southern Power		Southern Company Gas
	(in millions)
At December 31, 2017
Cash and cash equivalents	$	2,130	$	129	$	73
Restricted cash:
Other accounts and notes receivable	5		—		5
Deferred charges and other assets	12		11		—
Total cash, cash equivalents, and restricted cash	$	2,147	$	140	$	78