Segment and Related Information

6 Months Ended

Jun. 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 $85 million and $199 million for the three and six months ended June 30, 2015, respectively, and $68 million and $140 million for the three and six months ended June 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 six months ended June 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 June 30, 2015:
Operating revenues	$	4,077	$	337	$	(90	)	$	4,324	$	43	$	(30	)	$	4,337
Segment net income (loss)(a)(b)	561		46		—			607		18		4			629
Six Months Ended June 30, 2015:
Operating revenues	$	8,025	$	684	$	(213	)	$	8,496	$	83	$	(59	)	$	8,520
Segment net income (loss)(a)(c)	1,038		79		—			1,117		21		—			1,138
Total assets at June 30, 2015	$	67,362	$	6,226	$	(277	)	$	73,311	$	1,360	$	(490	)	$	74,181
Three Months Ended June 30, 2014:
Operating revenues	$	4,209	$	329	$	(84	)	$	4,454	$	39	$	(26	)	$	4,467
Segment net income (loss)(a)	580		31		—			611		2		(2		)	611
Six Months Ended June 30, 2014:
Operating revenues	$	8,587	$	680	$	(186	)	$	9,081	$	80	$	(50	)	$	9,111
Segment net income (loss)(a)(c)	899		64		—			963		2		(3		)	962
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 June 30, 2015 includes a $23 million pre-tax charge ($14 million after tax) 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 six months ended June 30, 2015 and June 30, 2014 includes a $32 million pre-tax charge ($20 million after tax) and a $380 million pre-tax charge ($235 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 June 30, 2015	$	3,714	$	448	$	162	$	4,324
Three Months Ended June 30, 2014	3,770		515		169		4,454
Six Months Ended June 30, 2015	$	7,256	$	915	$	325	$	8,496
Six Months Ended June 30, 2014	7,628		1,119		334		9,081