Segment and Related Information

12 Months Ended

Dec. 31, 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 $383 million, $346 million, and $425 million in 2014, 2013, and 2012, 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, 2014, 2013, and 2012 was as follows:

	Electric Utilities
	Traditional Operating Companies		Southern Power			Eliminations			Total		All Other			Eliminations			Consolidated
	(in millions)
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	64,644		5,550			(131		)	70,063		1,156			(296		)	70,923
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	59,447		4,429			(101		)	63,775		1,077			(306		)	64,546
Gross property additions	5,226		633			—			5,859		9			—			5,868
2012
Operating revenues	$	15,730	$	1,186		$	(438	)	$	16,478	$	141		$	(82	)	$	16,537
Depreciation and amortization	1,629		143			—			1,772		15			—			1,787
Interest income	21		1			—			22		19			(1		)	40
Interest expense	757		63			—			820		39			—			859
Income taxes	1,307		93			—			1,400		(66		)	—			1,334
Segment net income (loss)(a)	2,145		175			1			2,321		33			(4		)	2,350
Total assets	58,600		3,780			(129		)	62,251		1,116			(218		)	63,149
Gross property additions	4,813		241			—			5,054		5			—			5,059

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

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

Products and Services

Electric Utilities' Revenues
Year	Retail	Wholesale	Other	Total
	(in millions)
2014	$15,550	$2,184	$672	$18,406
2013	14,541	1,855	639	17,035
2012	14,187	1,675	616	16,478