Retirement Benefits

12 Months Ended

Dec. 31, 2015

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Southern Company has a defined benefit, trusteed, pension plan covering substantially all employees. This qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan were made for the year ended December 31, 2015, and no mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2016. Southern Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, Southern Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional operating companies fund related other postretirement trusts to the extent required by their respective regulatory commissions. For the year ending December 31, 2016, other postretirement trust contributions are expected to total approximately $14 million.

Actuarial Assumptions

The weighted average rates assumed in the actuarial calculations used to determine both the net periodic costs for the pension and other postretirement benefit plans for the following year and the benefit obligations as of the measurement date are presented below.



Assumptions used to determine net periodic costs:	2015		2014		2013
Pension plans
Discount rate – interest costs	4.17	%	5.02	%	4.26	%
Discount rate – service costs	4.48		5.02		4.26
Expected long-term return on plan assets	8.20		8.20		8.20
Annual salary increase	3.59		3.59		3.59
Other postretirement benefit plans
Discount rate – interest costs	4.04	%	4.85	%	4.05	%
Discount rate – service costs	4.39		4.85		4.05
Expected long-term return on plan assets	6.97		7.15		7.13
Annual salary increase	3.59		3.59		3.59



Assumptions used to determine benefit obligations:	2015		2014
Pension plans
Discount rate	4.67	%	4.17	%
Annual salary increase	4.46		3.59
Other postretirement benefit plans
Discount rate	4.51	%	4.04	%
Annual salary increase	4.46		3.59

The Company estimates the expected rate of return on pension plan and other postretirement benefit plan assets using a financial model to project the expected return on each current investment portfolio. The analysis projects an expected rate of return on each of seven different asset classes in order to arrive at the expected return on the entire portfolio relying on each trust's target asset allocation and reasonable capital market assumptions. The financial model is based on four key inputs: anticipated returns by asset class (based in part on historical returns), each trust's target asset allocation, an anticipated inflation rate, and the projected impact of a periodic rebalancing of each trust's portfolio.

For purposes of its December 31, 2015 measurement date, the Company adopted new mortality tables for its pension and other postretirement benefit plans, which reflect decreased life expectancies in the U.S. The adoption of new mortality tables reduced the projected benefit obligations for the Company's pension and other postretirement benefit plans by approximately $191 million and $35 million, respectively.

An additional assumption used in measuring the accumulated other postretirement benefit obligations (APBO) was a weighted average medical care cost trend rate. The weighted average medical care cost trend rates used in measuring the APBO as of December 31, 2015 were as follows:



	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.50	%	4.50	%	2024
Post-65 medical	5.50		4.50		2024
Post-65 prescription	10.00		4.50		2025

An annual increase or decrease in the assumed medical care cost trend rate of 1% would affect the APBO and the service and interest cost components at December 31, 2015 as follows:



	1 Percent Increase		1 Percent Decrease
	(in millions)
Benefit obligation	$	119	$	(102	)
Service and interest costs	4		(4		)

Pension Plans

The total accumulated benefit obligation for the pension plans was $9.6 billion at December 31, 2015 and $10.0 billion at December 31, 2014. Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	10,909		$	8,863
Service cost	257			213
Interest cost	445			435
Benefits paid	(487		)	(382		)
Actuarial loss (gain)	(582		)	1,780
Balance at end of year	10,542			10,909
Change in plan assets
Fair value of plan assets at beginning of year	9,690			8,733
Actual return (loss) on plan assets	(14		)	797
Employer contributions	45			542
Benefits paid	(487		)	(382		)
Fair value of plan assets at end of year	9,234			9,690
Accrued liability	$	(1,308	)	$	(1,219	)

At December 31, 2015, the projected benefit obligations for the qualified and non-qualified pension plans were $10.0 billion and $582 million, respectively. All pension plan assets are related to the qualified pension plan.

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's pension plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	2,998		$	3,073
Other current liabilities	(46		)	(42		)
Employee benefit obligations	(1,262		)	(1,177		)
Accumulated OCI	125			134

Presented below are the amounts included in accumulated OCI and regulatory assets at December 31, 2015 and 2014 related to the defined benefit pension plans that had not yet been recognized in net periodic pension cost along with the estimated amortization of such amounts for 2016.



	Prior Service Cost		Net (Gain) Loss
	(in millions)
Balance at December 31, 2015:
Accumulated OCI	$	3	$	122
Regulatory assets	27		2,971
Total	$	30	$	3,093
Balance at December 31, 2014:
Accumulated OCI	$	4	$	130
Regulatory assets	51		3,022
Total	$	55	$	3,152
Estimated amortization in net periodic pension cost in 2016:
Accumulated OCI	$	1	$	6
Regulatory assets	13		145
Total	$	14	$	151

The components of OCI and the changes in the balance of regulatory assets related to the defined benefit pension plans for the years ended December 31, 2015 and 2014 are presented in the following table:



	Accumulated OCI			Regulatory Assets
	(in millions)
Balance at December 31, 2013	$	64		$	1,651
Net gain	75			1,552
Change in prior service costs	—			1
Reclassification adjustments:
Amortization of prior service costs	(1		)	(25		)
Amortization of net gain	(4		)	(106		)
Total reclassification adjustments	(5		)	(131		)
Total change	70			1,422
Balance at December 31, 2014	$	134		$	3,073
Net loss	1			155
Reclassification adjustments:
Amortization of prior service costs	(1		)	(24		)
Amortization of net gain	(9		)	(206		)
Total reclassification adjustments	(10		)	(230		)
Total change	(9		)	(75		)
Balance at December 31, 2015	$	125		$	2,998

Components of net periodic pension cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	257		$	213		$	232
Interest cost	445			435			389
Expected return on plan assets	(724		)	(645		)	(603		)
Recognized net loss	215			110			200
Net amortization	25			26			27
Net periodic pension cost	$	218		$	139		$	245

Net periodic pension cost is the sum of service cost, interest cost, and other costs netted against the expected return on plan assets. The expected return on plan assets is determined by multiplying the expected rate of return on plan assets and the market-related value of plan assets. In determining the market-related value of plan assets, the Company has elected to amortize changes in the market value of all plan assets over five years rather than recognize the changes immediately. As a result, the accounting value of plan assets that is used to calculate the expected return on plan assets differs from the current fair value of the plan assets.

Future benefit payments reflect expected future service and are estimated based on assumptions used to measure the projected benefit obligation for the pension plans. At December 31, 2015, estimated benefit payments were as follows:



	Benefit Payments
	(in millions)
2016	$	450
2017	478
2018	501
2019	527
2020	554
2021 to 2025	3,141

Other Postretirement Benefits

Changes in the APBO and in the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	1,986		$	1,682
Service cost	23			21
Interest cost	78			79
Benefits paid	(102		)	(102		)
Actuarial loss (gain)	(38		)	300
Plan amendments	34			(2		)
Retiree drug subsidy	8			8
Balance at end of year	1,989			1,986
Change in plan assets
Fair value of plan assets at beginning of year	900			901
Actual return (loss) on plan assets	(12		)	54
Employer contributions	39			39
Benefits paid	(94		)	(94		)
Fair value of plan assets at end of year	833			900
Accrued liability	$	(1,156	)	$	(1,086	)

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's other postretirement benefit plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	433		$	387
Other current liabilities	(4		)	(4		)
Employee benefit obligations	(1,152		)	(1,082		)
Other regulatory liabilities, deferred	(22		)	(21		)
Accumulated OCI	8			8

Presented below are the amounts included in accumulated OCI and net regulatory assets (liabilities) at December 31, 2015 and 2014 related to the other postretirement benefit plans that had not yet been recognized in net periodic other postretirement benefit cost along with the estimated amortization of such amounts for 2016.



	Prior Service Cost		Net (Gain) Loss
	(in millions)
Balance at December 31, 2015:
Accumulated OCI	$	—	$	8
Net regulatory assets	32		379
Total	$	32	$	387
Balance at December 31, 2014:
Accumulated OCI	$	—	$	8
Net regulatory assets	2		364
Total	$	2	$	372
Estimated amortization as net periodic postretirement benefit cost in 2016:
Net regulatory assets	$	6	$	14

The components of OCI, along with the changes in the balance of net regulatory assets (liabilities), related to the other postretirement benefit plans for the plan years ended December 31, 2015 and 2014 are presented in the following table:



	Accumulated OCI		Net Regulatory Assets (Liabilities)
	(in millions)
Balance at December 31, 2013	$	1	$	73
Net gain	7		301
Change in prior service costs	—		(2		)
Reclassification adjustments:
Amortization of prior service costs	—		(4		)
Amortization of net gain	—		(2		)
Total reclassification adjustments	—		(6		)
Total change	7		293
Balance at December 31, 2014	$	8	$	366
Net gain	—		33
Change in prior service costs	—		33
Reclassification adjustments:
Amortization of prior service costs	—		(4		)
Amortization of net gain	—		(17		)
Total reclassification adjustments	—		(21		)
Total change	—		45
Balance at December 31, 2015	$	8	$	411

Components of the other postretirement benefit plans' net periodic cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	23		$	21		$	24
Interest cost	78			79			74
Expected return on plan assets	(58		)	(59		)	(56		)
Net amortization	21			6			21
Net periodic postretirement benefit cost	$	64		$	47		$	63

Future benefit payments, including prescription drug benefits, reflect expected future service and are estimated based on assumptions used to measure the APBO for the other postretirement benefit plans. Estimated benefit payments are reduced by drug subsidy receipts expected as a result of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 as follows:



	Benefit Payments		Subsidy Receipts			Total
	(in millions)
2016	$	123	$	(9	)	$	114
2017	128		(10		)	118
2018	133		(11		)	122
2019	137		(12		)	125
2020	139		(12		)	127
2021 to 2025	711		(65		)	646

Benefit Plan Assets

Pension plan and other postretirement benefit plan assets are managed and invested in accordance with all applicable requirements, including ERISA and the Internal Revenue Code of 1986, as amended (Internal Revenue Code). The Company's investment policies for both the pension plan and the other postretirement benefit plans cover a diversified mix of assets, including equity and fixed income securities, real estate, and private equity. Derivative instruments are used primarily to gain efficient exposure to the various asset classes and as hedging tools. The Company minimizes the risk of large losses primarily through diversification but also monitors and manages other aspects of risk.

The composition of the Company's pension plan and other postretirement benefit plan assets as of December 31, 2015 and 2014, along with the targeted mix of assets for each plan, is presented below:



	Target		2015		2014
Pension plan assets:
Domestic equity	26	%	30	%	30	%
International equity	25		23		23
Fixed income	23		23		27
Special situations	3		2		1
Real estate investments	14		16		14
Private equity	9		6		5
Total	100	%	100	%	100	%
Other postretirement benefit plan assets:
Domestic equity	42	%	38	%	41	%
International equity	21		23		23
Domestic fixed income	24		26		26
Global fixed income	4		4		3
Special situations	1		1		—
Real estate investments	5		6		5
Private equity	3		2		2
Total	100	%	100	%	100	%

The investment strategy for plan assets related to the Company's qualified pension plan is to be broadly diversified across major asset classes. The asset allocation is established after consideration of various factors that affect the assets and liabilities of the pension plan including, but not limited to, historical and expected returns and interest rates, volatility, correlations of asset classes, the current level of assets and liabilities, and the assumed growth in assets and liabilities. Because a significant portion of the liability of the pension plan is long-term in nature, the assets are invested consistent with long-term investment expectations for return and risk. To manage the actual asset class exposures relative to the target asset allocation, the Company employs a formal rebalancing program. As additional risk management, external investment managers and service providers are subject to written guidelines to ensure appropriate and prudent investment practices.

Investment Strategies

Detailed below is a description of the investment strategies for each major asset category for the pension and other postretirement benefit plans disclosed above:


•	Domestic equity. A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches.


•	International equity. A mix of growth stocks and value stocks with both developed and emerging market exposure, managed both actively and through passive index approaches.


•	Fixed income. A mix of domestic and international bonds.


•	Trust-owned life insurance (TOLI). Investments of the Company's taxable trusts aimed at minimizing the impact of taxes on the portfolio.


•	Special situations. Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies as well as investments in promising new strategies of a longer-term nature.


•	Real estate investments. Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities.


•	Private equity. Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.

Benefit Plan Asset Fair Values

Following are the fair value measurements for the pension plan and the other postretirement benefit plan assets as of December 31, 2015 and 2014. The fair values presented are prepared in accordance with GAAP. For purposes of determining the fair value of the pension plan and other postretirement benefit plan assets and the appropriate level designation, management relies on information provided by the plan's trustee. This information is reviewed and evaluated by management with changes made to the trustee information as appropriate.

Valuation methods of the primary fair value measurements disclosed in the following tables are as follows:

•

Domestic and international equity. Investments in equity securities such as common stocks, American depositary receipts, and real estate investment trusts that trade on a public exchange are classified as Level 1 investments and are valued at the closing price in the active market. Equity investments with unpublished prices (i.e. pooled funds) are valued as Level 2, when the underlying holdings used to value the investment are comprised of Level 1 or Level 2 equity securities.


•	Fixed income. Investments in fixed income securities are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.


•	TOLI. Investments in TOLI policies are classified as Level 2 investments and are valued based on the underlying investments held in the policy's separate account. The underlying assets are equity and fixed income pooled funds that are comprised of Level 1 and Level 2 securities.

•

Real estate investments and private equity. Investments in private equity and real estate are generally classified as Level 3 as the underlying assets typically do not have observable inputs. The fund manager values the assets using various inputs and techniques depending on the nature of the underlying investments. In the case of private equity, techniques may include purchase multiples for comparable transactions, comparable public company trading multiples, and discounted cash flow analysis. Real estate managers generally use prevailing market capitalization rates, recent sales of comparable investments, and independent third-party appraisals to value underlying real estate investments. The fair value of partnerships is determined by aggregating the value of the underlying assets.

The fair values of pension plan assets as of December 31, 2015 and 2014 are presented below. These fair value measurements exclude cash, receivables related to investment income, pending investments sales, and payables related to pending investment purchases. Assets that are considered special situations investments, primarily real estate investments and private equities, are presented in the tables below based on the nature of the investment.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)			(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	1,632		$	681	$	—	$	—	$	2,313
International equity*	1,190			990		—		—		2,180
Fixed income:
U.S. Treasury, government, and agency bonds	—			454		—		—		454
Mortgage- and asset-backed securities	—			199		—		—		199
Corporate bonds	—			1,140		—		—		1,140
Pooled funds	—			500		—		—		500
Cash equivalents and other	—			145		—		—		145
Real estate investments	299			—		—		1,218		1,517
Private equity	—			—		—		635		635
Total	$	3,121		$	4,109	$	—	$	1,853	$	9,083
Liabilities:
Derivatives	$	(1	)	$	—	$	—	$	—	$	(1	)
Total	$	3,120		$	4,109	$	—	$	1,853	$	9,082



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)			(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	1,704		$	704	$	—	$	—	$	2,408
International equity*	1,070			986		—		—		2,056
Fixed income:
U.S. Treasury, government, and agency bonds	—			699		—		—		699
Mortgage- and asset-backed securities	—			188		—		—		188
Corporate bonds	—			1,135		—		—		1,135
Pooled funds	—			514		—		—		514
Cash equivalents and other	3			660		—		—		663
Real estate investments	293			—		—		1,121		1,414
Private equity	—			—		—		570		570
Total	$	3,070		$	4,886	$	—	$	1,691	$	9,647
Liabilities:
Derivatives	$	(2	)	$	—	$	—	$	—	$	(2	)
Total	$	3,068		$	4,886	$	—	$	1,691	$	9,645



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.

The fair values of other postretirement benefit plan assets as of December 31, 2015 and 2014 are presented below. These fair value measurements exclude cash, receivables related to investment income, pending investments sales, and payables related to pending investment purchases. Assets that are considered special situations investments, primarily real estate investments and private equities, are presented in the tables below based on the nature of the investment.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient		Total
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)
	(in millions)
Assets:
Domestic equity*	$	106	$	52	$	—	$	—	$	158
International equity*	40		64		—		—		104
Fixed income:
U.S. Treasury, government, and agency bonds	—		22		—		—		22
Mortgage- and asset-backed securities	—		7		—		—		7
Corporate bonds	—		38		—		—		38
Pooled funds	—		42		—		—		42
Cash equivalents and other	11		9		—		—		20
Trust-owned life insurance	—		370		—		—		370
Real estate investments	11		—		—		41		52
Private equity	—		—		—		21		21
Total	$	168	$	604	$	—	$	62	$	834



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	147	$	56	$	—	$	—	$	203
International equity*	36		67		—		—		103
Fixed income:
U.S. Treasury, government, and agency bonds	—		29		—		—		29
Mortgage- and asset-backed securities	—		6		—		—		6
Corporate bonds	—		39		—		—		39
Pooled funds	—		41		—		—		41
Cash equivalents and other	9		27		—		—		36
Trust-owned life insurance	—		381		—		—		381
Real estate investments	11		—		—		37		48
Private equity	—		—		—		19		19
Total	$	203	$	646	$	—	$	56	$	905



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.

Employee Savings Plan

Southern Company also sponsors a 401(k) defined contribution plan covering substantially all employees. The Company provides an 85% matching contribution on up to 6% of an employee's base salary. Total matching contributions made to the plan for 2015, 2014, and 2013 were $92 million, $87 million, and $84 million, respectively.

Alabama Power [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

RETIREMENT BENEFITS

The Company has a defined benefit, trusteed, pension plan covering substantially all employees. This qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan were made for the year ended December 31, 2015, and no mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2016. The Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The Company funds its other postretirement trusts to the extent required by the Alabama PSC and the FERC. For the year ending December 31, 2016, no other postretirement trusts contributions are expected.

Actuarial Assumptions



Assumptions used to determine net periodic costs:	2015		2014		2013
Pension plans
Discount rate – interest costs	4.18	%	5.02	%	4.27	%
Discount rate – service costs	4.49		5.02		4.27
Expected long-term return on plan assets	8.20		8.20		8.20
Annual salary increase	3.59		3.59		3.59
Other postretirement benefit plans
Discount rate – interest costs	4.04	%	4.86	%	4.06	%
Discount rate – service costs	4.40		4.86		4.06
Expected long-term return on plan assets	7.17		7.34		7.36
Annual salary increase	3.59		3.59		3.59



Assumptions used to determine benefit obligations:	2015		2014
Pension plans
Discount rate	4.67	%	4.18	%
Annual salary increase	4.46		3.59
Other postretirement benefit plans
Discount rate	4.51	%	4.04	%
Annual salary increase	4.46		3.59

For purposes of its December 31, 2015 measurement date, the Company adopted new mortality tables for its pension and other postretirement benefit plans, which reflect decreased life expectancies in the U.S. The adoption of new mortality tables reduced the projected benefit obligations for the Company's pension plans and other postretirement benefit plans by approximately $51 million and $9 million, respectively.



	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.50	%	4.50	%	2024
Post-65 medical	5.50		4.50		2024
Post-65 prescription	10.00		4.50		2025

An annual increase or decrease in the assumed medical care cost trend rate of 1% would affect the APBO and the service and interest cost components at December 31, 2015 as follows:



	1 Percent Increase		1 Percent Decrease
	(in millions)
Benefit obligation	$	29	$	(25	)
Service and interest costs	1		(1		)

Pension Plans

The total accumulated benefit obligation for the pension plans was $2.3 billion at December 31, 2015 and $2.4 billion at December 31, 2014. Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	2,592		$	2,112
Service cost	59			48
Interest cost	106			103
Benefits paid	(120		)	(100		)
Actuarial loss (gain)	(131		)	429
Balance at end of year	2,506			2,592
Change in plan assets
Fair value of plan assets at beginning of year	2,396			2,278
Actual return (loss) on plan assets	(9		)	207
Employer contributions	12			11
Benefits paid	(120		)	(100		)
Fair value of plan assets at end of year	2,279			2,396
Accrued liability	$	(227	)	$	(196	)

At December 31, 2015, the projected benefit obligations for the qualified and non-qualified pension plans were $2.4 billion and $124 million, respectively. All pension plan assets are related to the qualified pension plan.

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's pension plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	822		$	827
Other current liabilities	(11		)	(10		)
Employee benefit obligations	(216		)	(186		)

Presented below are the amounts included in regulatory assets at December 31, 2015 and 2014 related to the defined benefit pension plans that had not yet been recognized in net periodic pension cost along with the estimated amortization of such amounts for 2016.



	2015		2014		Estimated Amortization in 2016
	(in millions)
Prior service cost	$	6	$	12	$	3
Net (gain) loss	816		815		40
Regulatory assets	$	822	$	827

The changes in the balance of regulatory assets related to the defined benefit pension plans for the years ended December 31, 2015 and 2014 are presented in the following table:



	2015			2014
	(in millions)
Regulatory assets:
Beginning balance	$	827		$	476
Net (gain) loss	56			389
Reclassification adjustments:
Amortization of prior service costs	(6		)	(7		)
Amortization of net gain (loss)	(55		)	(31		)
Total reclassification adjustments	(61		)	(38		)
Total change	(5		)	351
Ending balance	$	822		$	827

Components of net periodic pension cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	59		$	48		$	52
Interest cost	106			103			93
Expected return on plan assets	(178		)	(168		)	(157		)
Recognized net loss	55			31			52
Net amortization	6			7			7
Net periodic pension cost	$	48		$	21		$	47



	Benefit Payments
	(in millions)
2016	$	114
2017	119
2018	124
2019	129
2020	134
2021 to 2025	740

Other Postretirement Benefits

Changes in the APBO and in the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	503		$	431
Service cost	6			5
Interest cost	20			20
Benefits paid	(27		)	(27		)
Actuarial loss (gain)	(7		)	71
Plan amendment	7			—
Retiree drug subsidy	3			3
Balance at end of year	505			503
Change in plan assets
Fair value of plan assets at beginning of year	392			389
Actual return (loss) on plan assets	(6		)	23
Employer contributions	1			4
Benefits paid	(24		)	(24		)
Fair value of plan assets at end of year	363			392
Accrued liability	$	(142	)	$	(111	)

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's other postretirement benefit plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	95		$	68
Other regulatory liabilities, deferred	(13		)	(14		)
Employee benefit obligations	(142		)	(111		)

Presented below are the amounts included in net regulatory assets (liabilities) at December 31, 2015 and 2014 related to the other postretirement benefit plans that had not yet been recognized in net periodic other postretirement benefit cost along with the estimated amortization of such amounts for 2016.



	2015		2014		Estimated Amortization in 2016
	(in millions)
Prior service cost	$	19	$	15	$	4
Net (gain) loss	63		39		2
Net regulatory assets	$	82	$	54

The changes in the balance of net regulatory assets (liabilities) related to the other postretirement benefit plans for the plan years ended December 31, 2015 and 2014 are presented in the following table:



	2015			2014
	(in millions)
Net regulatory assets (liabilities):
Beginning balance	$	54		$	(15	)
Net (gain) loss	25			73
Change in prior service costs	8			—
Reclassification adjustments:
Amortization of prior service costs	(3		)	(4		)
Amortization of net gain (loss)	(2		)	—
Total reclassification adjustments	(5		)	(4		)
Total change	28			69
Ending balance	$	82		$	54

Components of the other postretirement benefit plans' net periodic cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	6		$	5		$	6
Interest cost	20			20			19
Expected return on plan assets	(26		)	(25		)	(23		)
Net amortization	5			4			5
Net periodic postretirement benefit cost	$	5		$	4		$	7



	Benefit Payments		Subsidy Receipts			Total
	(in millions)
2016	$	33	$	(3	)	$	30
2017	34		(3		)	31
2018	34		(3		)	31
2019	35		(4		)	31
2020	36		(4		)	32
2021 to 2025	184		(20		)	164

Benefit Plan Assets

Pension plan and other postretirement benefit plan assets are managed and invested in accordance with all applicable requirements, including ERISA and the Internal Revenue Code of 1986, as amended. The Company's investment policies for both the pension plan and the other postretirement benefit plans cover a diversified mix of assets, including equity and fixed income securities, real estate, and private equity. Derivative instruments are used primarily to gain efficient exposure to the various asset classes and as hedging tools. The Company minimizes the risk of large losses primarily through diversification but also monitors and manages other aspects of risk.

The composition of the Company's pension plan and other postretirement benefit plan assets as of December 31, 2015 and 2014, along with the targeted mix of assets for each plan, is presented below:



	Target		2015		2014
Pension plan assets:
Domestic equity	26	%	30	%	30	%
International equity	25		23		23
Fixed income	23		23		27
Special situations	3		2		1
Real estate investments	14		16		14
Private equity	9		6		5
Total	100	%	100	%	100	%
Other postretirement benefit plan assets:
Domestic equity	48	%	45	%	48	%
International equity	20		20		20
Domestic fixed income	24		27		26
Special situations	1		1		—
Real estate investments	4		5		4
Private equity	3		2		2
Total	100	%	100	%	100	%

Investment Strategies

Detailed below is a description of the investment strategies for each major asset category for the pension and other postretirement benefit plans disclosed above:


•	Domestic equity. A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches.


•	International equity. A mix of growth stocks and value stocks with both developed and emerging market exposure, managed both actively and through passive index approaches.


•	Fixed income. A mix of domestic and international bonds.


•	Trust-owned life insurance (TOLI). Investments of the Company's taxable trusts aimed at minimizing the impact of taxes on the portfolio.


•	Special situations. Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies as well as investments in promising new strategies of a longer-term nature.


•	Real estate investments. Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities.


•	Private equity. Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.

Benefit Plan Asset Fair Values

Valuation methods of the primary fair value measurements disclosed in the following tables are as follows:

•


•	Fixed income. Investments in fixed income securities are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.


•	TOLI. Investments in TOLI policies are classified as Level 2 investments and are valued based on the underlying investments held in the policy's separate account. The underlying assets are equity and fixed income pooled funds that are comprised of Level 1 and Level 2 securities.

•



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	403	$	168	$	—	$	—	$	571
International equity*	294		244		—		—		538
Fixed income:
U.S. Treasury, government, and agency bonds	—		112		—		—		112
Mortgage- and asset-backed securities	—		49		—		—		49
Corporate bonds	—		280		—		—		280
Pooled funds	—		123		—		—		123
Cash equivalents and other	—		36		—		—		36
Real estate investments	74		—		—		301		375
Private equity	—		—		—		157		157
Total	$	771	$	1,012	$	—	$	458	$	2,241



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	421	$	174	$	—	$	—	$	595
International equity*	264		244		—		—		508
Fixed income:
U.S. Treasury, government, and agency bonds	—		173		—		—		173
Mortgage- and asset-backed securities	—		47		—		—		47
Corporate bonds	—		280		—		—		280
Pooled funds	—		127		—		—		127
Cash equivalents and other	1		163		—		—		164
Real estate investments	73		—		—		277		350
Private equity	—		—		—		141		141
Total	$	759	$	1,208	$	—	$	418	$	2,385



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	57	$	8	$	—	$	—	$	65
International equity*	14		12		—		—		26
Fixed income:
U.S. Treasury, government, and agency bonds	—		8		—		—		8
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		13		—		—		13
Pooled funds	—		6		—		—		6
Cash equivalents and other	1		2		—		—		3
Trust-owned life insurance	—		212		—		—		212
Real estate investments	5		—		—		14		19
Private equity	—		—		—		7		7
Total	$	77	$	263	$	—	$	21	$	361



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	76	$	8	$	—	$	—	$	84
International equity*	13		12		—		—		25
Fixed income:
U.S. Treasury, government, and agency bonds	—		10		—		—		10
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		14		—		—		14
Pooled funds	—		6		—		—		6
Cash equivalents and other	—		8		—		—		8
Trust-owned life insurance	—		217		—		—		217
Real estate investments	5		—		—		13		18
Private equity	—		—		—		7		7
Total	$	94	$	277	$	—	$	20	$	391



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.

Employee Savings Plan

The Company also sponsors a 401(k) defined contribution plan covering substantially all employees. The Company provides an 85% matching contribution on up to 6% of an employee's base salary. Total matching contributions made to the plan for 2015, 2014, and 2013 were $22 million, $21 million, and $20 million, respectively.

Georgia Power [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

RETIREMENT BENEFITS

The Company has a defined benefit, trusteed, pension plan covering substantially all employees. This qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan were made for the year ended December 31, 2015, and no mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2016. The Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The Company funds its other postretirement trusts to the extent required by the Georgia PSC and the FERC. For the year ending December 31, 2016, other postretirement trust contributions are expected to total approximately $14 million.

Actuarial Assumptions



Assumptions used to determine net periodic costs:	2015		2014		2013
Pension plans
Discount rates – interest costs	4.18	%	5.02	%	4.27	%
Discount rates – service costs	4.49		5.02		4.27
Expected long-term return on plan assets	8.20		8.20		8.20
Annual salary increase	3.59		3.59		3.59
Other postretirement benefit plans
Discount rate – interest costs	4.03	%	4.85	%	4.04	%
Discount rate – service costs	4.39		4.85		4.04
Expected long-term return on plan assets	6.48		6.75		6.74
Annual salary increase	3.59		3.59		3.59



Assumptions used to determine benefit obligations:	2015		2014
Pension plans
Discount rate	4.65	%	4.18	%
Annual salary increase	4.46		3.59
Other postretirement benefit plans
Discount rate	4.49	%	4.03	%
Annual salary increase	4.46		3.59

For purposes of its December 31, 2015 measurement date, the Company adopted new mortality tables for its pension and other postretirement benefit plans, which reflect decreased life expectancies in the U.S. The adoption of new mortality tables reduced the projected benefit obligations for the Company's pension plans and other postretirement benefit plans by approximately $66 million and $17 million, respectively.



	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.50	%	4.50	%	2024
Post-65 medical	5.50		4.50		2024
Post-65 prescription	10.00		4.50		2025

An annual increase or decrease in the assumed medical care cost trend rate of 1% would affect the APBO and the service and interest cost components at December 31, 2015 as follows:



	1 Percent Increase		1 Percent Decrease
	(in millions)
Benefit obligation	$	58	$	(50	)
Service and interest costs	2		(2		)

Pension Plans

The total accumulated benefit obligation for the pension plans was $3.3 billion at December 31, 2015 and $3.5 billion at December 31, 2014. Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	3,781		$	3,116
Service cost	73			62
Interest cost	154			153
Benefits paid	(188		)	(149		)
Actuarial loss (gain)	(205		)	599
Balance at end of year	3,615			3,781
Change in plan assets
Fair value of plan assets at beginning of year	3,383			3,085
Actual return (loss) on plan assets	(13		)	285
Employer contributions	14			162
Benefits paid	(188		)	(149		)
Fair value of plan assets at end of year	3,196			3,383
Accrued liability	$	(419	)	$	(398	)

At December 31, 2015, the projected benefit obligations for the qualified and non-qualified pension plans were $3.5 billion and $151 million, respectively. All pension plan assets are related to the qualified pension plan.

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's pension plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	1,076		$	1,102
Current liabilities, other	(13		)	(12		)
Employee benefit obligations	(406		)	(386		)



	2015		2014		Estimated Amortization in 2016
	(in millions)
Prior service cost	$	8	$	17	$	5
Net (gain) loss	1,068		1,085		55
Regulatory assets	$	1,076	$	1,102

The changes in the balance of regulatory assets related to the defined benefit pension plans for the years ended December 31, 2015 and 2014 are presented in the following table:



	2015			2014
	(in millions)
Regulatory assets:
Beginning balance	$	1,102		$	610
Net (gain) loss	59			543
Reclassification adjustments:
Amortization of prior service costs	(9		)	(10		)
Amortization of net gain (loss)	(76		)	(41		)
Total reclassification adjustments	(85		)	(51		)
Total change	(26		)	492
Ending balance	$	1,076		$	1,102

Components of net periodic pension cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	73		$	62		$	69
Interest cost	154			153			138
Expected return on plan assets	(251		)	(228		)	(212		)
Recognized net loss	76			41			74
Net amortization	9			10			10
Net periodic pension cost	$	61		$	38		$	79



	Benefit Payments
	(in millions)
2016	$	168
2017	176
2018	183
2019	189
2020	197
2021 to 2025	1,085

Other Postretirement Benefits

Changes in the APBO and in the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	864		$	723
Service cost	7			6
Interest cost	34			34
Benefits paid	(45		)	(44		)
Actuarial loss (gain)	(22		)	142
Plan amendment	12			—
Retiree drug subsidy	4			3
Balance at end of year	854			864
Change in plan assets
Fair value of plan assets at beginning of year	395			407
Actual return (loss) on plan assets	(6		)	21
Employer contributions	10			8
Benefits paid	(41		)	(41		)
Fair value of plan assets at end of year	358			395
Accrued liability	$	(496	)	$	(469	)

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's other postretirement benefit plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	223		$	213
Employee benefit obligations	(496		)	(469		)

Presented below are the amounts included in regulatory assets at December 31, 2015 and 2014 related to the other postretirement benefit plans that had not yet been recognized in net periodic other postretirement benefit cost along with the estimated amortization of such amounts for 2016.



	2015		2014			Estimated Amortization in 2016
	(in millions)
Prior service cost	$	8	$	(5	)	$	1
Net (gain) loss	215		218			9
Regulatory assets	$	223	$	213

The changes in the balance of regulatory assets related to the other postretirement benefit plans for the plan years ended December 31, 2015 and 2014 are presented in the following table:



	2015			2014
	(in millions)
Regulatory assets:
Beginning balance	$	213		$	69
Net (gain) loss	9			146
Change in prior service costs	12			—
Reclassification adjustments:
Amortization of net gain (loss)	(11		)	(2		)
Total change	10			144
Ending balance	$	223		$	213

Components of the other postretirement benefit plans' net periodic cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	7		$	6		$	7
Interest cost	34			34			31
Expected return on plan assets	(24		)	(25		)	(24		)
Net amortization	11			2			12
Net periodic postretirement benefit cost	$	28		$	17		$	26



	Benefit Payments		Subsidy Receipts			Total
	(in millions)
2016	$	53	$	(4	)	$	49
2017	55		(4		)	51
2018	58		(5		)	53
2019	59		(5		)	54
2020	60		(5		)	55
2021 to 2025	305		(28		)	277

Benefit Plan Assets

Pension plan and other postretirement benefit plan assets are managed and invested in accordance with all applicable requirements, including ERISA and the Internal Revenue Code of 1986, as amended. The Company's investment policies for both the pension plan and the other postretirement benefit plans cover a diversified mix of assets, including equity and fixed income securities, real estate, and private equity. Derivative instruments are used primarily to gain efficient exposure to the various asset classes and as hedging tools. The Company minimizes the risk of large losses primarily through diversification but also monitors and manages other aspects of risk.

The composition of the Company's pension plan and other postretirement benefit plan assets as of December 31, 2015 and 2014, along with the targeted mix of assets for each plan, is presented below:



	Target		2015		2014
Pension plan assets:
Domestic equity	26	%	30	%	30	%
International equity	25		23		23
Fixed income	23		23		27
Special situations	3		2		1
Real estate investments	14		16		14
Private equity	9		6		5
Total	100	%	100	%	100	%
Other postretirement benefit plan assets:
Domestic equity	40	%	34	%	38	%
International equity	21		27		26
Domestic fixed income	23		25		24
Global fixed income	9		8		7
Special situations	1		—		—
Real estate investments	4		4		4
Private equity	2		2		1
Total	100	%	100	%	100	%

Investment Strategies

Detailed below is a description of the investment strategies for each major asset category for the pension and other postretirement benefit plans disclosed above:


•	Domestic equity. A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches.


•	International equity. A mix of growth stocks and value stocks with both developed and emerging market exposure, managed both actively and through passive index approaches.


•	Fixed income. A mix of domestic and international bonds.


•	Trust-owned life insurance (TOLI). Investments of the Company's taxable trusts aimed at minimizing the impact of taxes on the portfolio.


•	Special situations. Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies as well as investments in promising new strategies of a longer-term nature.


•	Real estate investments. Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities.


•	Private equity. Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.

Benefit Plan Asset Fair Values

Valuation methods of the primary fair value measurements disclosed in the following tables are as follows:

•


•	Fixed income. Investments in fixed income securities are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.


•	TOLI. Investments in TOLI policies are classified as Level 2 investments and are valued based on the underlying investments held in the policy's separate account. The underlying assets are equity and fixed income pooled funds that are comprised of Level 1 and Level 2 securities.

•



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	565	$	236	$	—	$	—	$	801
International equity*	412		343		—		—		755
Fixed income:
U.S. Treasury, government, and agency bonds	—		157		—		—		157
Mortgage- and asset-backed securities	—		69		—		—		69
Corporate bonds	—		394		—		—		394
Pooled funds	—		173		—		—		173
Cash equivalents and other	—		50		—		—		50
Real estate investments	103		—		—		421		524
Private equity	—		—		—		220		220
Total	$	1,080	$	1,422	$	—	$	641	$	3,143



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)			(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	595		$	246	$	—	$	—	$	841
International equity*	373			344		—		—		717
Fixed income:
U.S. Treasury, government, and agency bonds	—			244		—		—		244
Mortgage- and asset-backed securities	—			66		—		—		66
Corporate bonds	—			398		—		—		398
Pooled funds	—			179		—		—		179
Cash equivalents and other	1			230		—		—		231
Real estate investments	102			—		—		391		493
Private equity	—			—		—		199		199
Total	$	1,071		$	1,707	$	—	$	590	$	3,368
Liabilities:
Derivatives	$	(1	)	$	—	$	—	$	—	$	(1	)
Total	$	1,070		$	1,707	$	—	$	590	$	3,367



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	30	$	36	$	—	$	—	$	66
International equity*	12		41		—		—		53
Fixed income:
U.S. Treasury, government, and agency bonds	—		5		—		—		5
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		12		—		—		12
Pooled funds	—		30		—		—		30
Cash equivalents and other	10		6		—		—		16
Trust-owned life insurance	—		158		—		—		158
Real estate investments	3		—		—		12		15
Private equity	—		—		—		7		7
Total	$	55	$	290	$	—	$	19	$	364



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	53	$	40	$	—	$	—	$	93
International equity*	11		45		—		—		56
Fixed income:
U.S. Treasury, government, and agency bonds	—		7		—		—		7
Mortgage- and asset-backed securities	—		2		—		—		2
Corporate bonds	—		12		—		—		12
Pooled funds	—		29		—		—		29
Cash equivalents and other	8		11		—		—		19
Trust-owned life insurance	—		162		—		—		162
Real estate investments	3		—		—		12		15
Private equity	—		—		—		6		6
Total	$	75	$	308	$	—	$	18	$	401



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.

Employee Savings Plan

The Company also sponsors a 401(k) defined contribution plan covering substantially all employees. The Company provides an 85% matching contribution on up to 6% of an employee's base salary. Total matching contributions made to the plan for 2015, 2014, and 2013 were $26 million, $25 million, and $24 million, respectively.

Gulf Power [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

RETIREMENT BENEFITS

The Company has a defined benefit, trusteed, pension plan covering substantially all employees. This qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan were made for the year ended December 31, 2015, and no mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2016. The Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The Company funds its other postretirement trusts to the extent required by the FERC. For the year ending December 31, 2016, no other postretirement trust contributions are expected.

Actuarial Assumptions



Assumptions used to determine net periodic costs:	2015		2014		2013
Pension plans
Discount rate – interest costs	4.18	%	5.02	%	4.27	%
Discount rate – service costs	4.48		5.02		4.27
Expected long-term return on plan assets	8.20		8.20		8.20
Annual salary increase	3.59		3.59		3.59
Other postretirement benefit plans
Discount rate – interest costs	4.04	%	4.86	%	4.06	%
Discount rate – service costs	4.38		4.86		4.06
Expected long-term return on plan assets	8.07		8.08		8.04
Annual salary increase	3.59		3.59		3.59



Assumptions used to determine benefit obligations:	2015		2014
Pension plans
Discount rate	4.71	%	4.18	%
Annual salary increase	4.46		3.59
Other postretirement benefit plans
Discount rate	4.51	%	4.04	%
Annual salary increase	4.46		3.59

For purposes of its December 31, 2015 measurement date, the Company adopted new mortality tables for its pension and other postretirement benefit plans, which reflect decreased life expectancies in the U.S. The adoption of new mortality tables reduced the projected benefit obligations for the Company's pension plans and other postretirement benefit plans by approximately $9 million and $1 million, respectively.



	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.50	%	4.50	%	2024
Post-65 medical	5.50		4.50		2024
Post-65 prescription	10.00		4.50		2025

An annual increase or decrease in the assumed medical care cost trend rate of 1% would affect the APBO and the service and interest cost components at December 31, 2015 as follows:



	1 Percent Increase		1 Percent Decrease
	(in millions)
Benefit obligation	$	4	$	(3	)
Service and interest costs	—		—

Pension Plans

The total accumulated benefit obligation for the pension plans was $424 million at December 31, 2015 and $438 million at December 31, 2014. Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	491		$	395
Service cost	12			10
Interest cost	20			19
Benefits paid	(20		)	(16		)
Actuarial loss (gain)	(23		)	83
Balance at end of year	480			491
Change in plan assets
Fair value of plan assets at beginning of year	435			386
Actual return on plan assets	4			34
Employer contributions	1			31
Benefits paid	(20		)	(16		)
Fair value of plan assets at end of year	420			435
Accrued liability	$	(60	)	$	(56	)

At December 31, 2015, the projected benefit obligations for the qualified and non-qualified pension plans were $457 million and $23 million, respectively. All pension plan assets are related to the qualified pension plan.

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's pension plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	142		$	146
Current liabilities, other	(1		)	(1		)
Employee benefit obligations	(59		)	(55		)



	2015		2014		Estimated Amortization in 2016
	(in millions)
Prior service cost	$	2	$	3	$	1
Net loss	140		143		6
Regulatory assets	$	142	$	146

The changes in the balance of regulatory assets related to the defined benefit pension plans for the years ended December 31, 2015 and 2014 are presented in the following table:



	2015			2014
	(in millions)
Regulatory assets:
Beginning balance	$	146		$	75
Net (gain) loss	6			77
Reclassification adjustments:
Amortization of prior service costs	(1		)	(1		)
Amortization of net gain (loss)	(9		)	(5		)
Total reclassification adjustments	(10		)	(6		)
Total change	(4		)	71
Ending balance	$	142		$	146

Components of net periodic pension cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	12		$	10		$	11
Interest cost	20			19			17
Expected return on plan assets	(32		)	(28		)	(26		)
Recognized net loss	9			5			9
Net amortization	1			1			1
Net periodic pension cost	$	10		$	7		$	12



	Benefit Payments
	(in millions)
2016	$	19
2017	20
2018	21
2019	22
2020	24
2021 to 2025	139

Other Postretirement Benefits

Changes in the APBO and in the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	78		$	69
Service cost	1			1
Interest cost	3			3
Benefits paid	(4		)	(4		)
Actuarial loss (gain)	(1		)	11
Plan amendment	4			(2		)
Retiree drug subsidy	—			—
Balance at end of year	81			78
Change in plan assets
Fair value of plan assets at beginning of year	18			17
Actual return on plan assets	—			2
Employer contributions	3			3
Benefits paid	(4		)	(4		)
Fair value of plan assets at end of year	17			18
Accrued liability	$	(64	)	$	(60	)

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's other postretirement benefit plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	10		$	6
Current liabilities, other	(1		)	(1		)
Other regulatory liabilities, deferred	(5		)	(4		)
Employee benefit obligations	(63		)	(59		)



	2015		2014			Estimated Amortization in 2016
	(in millions)
Prior service cost	$	—	$	(2	)	$	—
Net loss	5		4			—
Net regulatory assets (liabilities)	$	5	$	2



	2015		2014
	(in millions)
Net regulatory assets (liabilities):
Beginning balance	$	2	$	(7	)
Net (gain) loss	1		11
Change in prior service costs	2		(2		)
Reclassification adjustments:
Amortization of prior service costs	—		—
Amortization of net gain (loss)	—		—
Total reclassification adjustments	—		—
Total change	3		9
Ending balance	$	5	$	2

Components of the other postretirement benefit plans' net periodic cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	1		$	1		$	1
Interest cost	3			3			3
Expected return on plan assets	(1		)	(1		)	(1		)
Net amortization	—			—			—
Net periodic postretirement benefit cost	$	3		$	3		$	3



	Benefit Payments		Subsidy Receipts			Total
	(in millions)
2016	$	5	$	—		$	5
2017	5		—			5
2018	6		—			6
2019	6		(1		)	5
2020	6		(1		)	5
2021 to 2025	29		(3		)	26

Benefit Plan Assets

Pension plan and other postretirement benefit plan assets are managed and invested in accordance with all applicable requirements, including ERISA and the Internal Revenue Code of 1986, as amended. The Company's investment policies for both the pension plan and the other postretirement benefit plans cover a diversified mix of assets, including equity and fixed income securities, real estate, and private equity. Derivative instruments are used primarily to gain efficient exposure to the various asset classes and as hedging tools. The Company minimizes the risk of large losses primarily through diversification but also monitors and manages other aspects of risk.

The composition of the Company's pension plan and other postretirement benefit plan assets as of December 31, 2015 and 2014, along with the targeted mix of assets for each plan, is presented below:



	Target		2015		2014
Pension plan assets:
Domestic equity	26	%	30	%	30	%
International equity	25		23		23
Fixed income	23		23		27
Special situations	3		2		1
Real estate investments	14		16		14
Private equity	9		6		5
Total	100	%	100	%	100	%
Other postretirement benefit plan assets:
Domestic equity	25	%	29	%	29	%
International equity	24		22		22
Domestic fixed income	25		25		29
Special situations	3		2		1
Real estate investments	14		16		14
Private equity	9		6		5
Total	100	%	100	%	100	%

Investment Strategies

Detailed below is a description of the investment strategies for each major asset category for the pension and other postretirement benefit plans disclosed above:


•	Domestic equity. A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches.


•	International equity. A mix of growth stocks and value stocks with both developed and emerging market exposure, managed both actively and through passive index approaches.


•	Fixed income. A mix of domestic and international bonds.


•	Special situations. Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies as well as investments in promising new strategies of a longer-term nature.


•	Real estate investments. Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities.


•	Private equity. Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.

Benefit Plan Asset Fair Values

Valuation methods of the primary fair value measurements disclosed in the following tables are as follows:

•


•	Fixed income. Investments in fixed income securities are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.

•



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	73	$	31	$	—	$	—	$	104
International equity*	54		45		—		—		99
Fixed income:
U.S. Treasury, government, and agency bonds	—		21		—		—		21
Mortgage- and asset-backed securities	—		9		—		—		9
Corporate bonds	—		51		—		—		51
Pooled funds	—		23		—		—		23
Cash equivalents and other	—		7		—		—		7
Real estate investments	14		—		—		55		69
Private equity	—		—		—		29		29
Total	$	141	$	187	$	—	$	84	$	412



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	77	$	32	$	—	$	—	$	109
International equity*	48		44		—		—		92
Fixed income:
U.S. Treasury, government, and agency bonds	—		31		—		—		31
Mortgage- and asset-backed securities	—		8		—		—		8
Corporate bonds	—		51		—		—		51
Pooled funds	—		23		—		—		23
Cash equivalents and other	—		30		—		—		30
Real estate investments	13		—		—		50		63
Private equity	—		—		—		26		26
Total	$	138	$	219	$	—	$	76	$	433



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	3	$	1	$	—	$	—	$	4
International equity*	2		2		—		—		4
Fixed income:
U.S. Treasury, government, and agency bonds	—		1		—		—		1
Mortgage- and asset-backed securities	—		—		—		—		—
Corporate bonds	—		2		—		—		2
Pooled funds	—		1		—		—		1
Cash equivalents and other	1		—		—		—		1
Real estate investments	1		—		—		2		3
Private equity	—		—		—		1		1
Total	$	7	$	7	$	—	$	3	$	17



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	3	$	1	$	—	$	—	$	4
International equity*	2		2		—		—		4
Fixed income:
U.S. Treasury, government, and agency bonds	—		1		—		—		1
Mortgage- and asset-backed securities	—		1		—		—		1
Corporate bonds	—		2		—		—		2
Pooled funds	—		1		—		—		1
Cash equivalents and other	—		1		—		—		1
Real estate investments	1		—		—		2		3
Private equity	—		—		—		1		1
Total	$	6	$	9	$	—	$	3	$	18



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.

Employee Savings Plan

Mississippi Power [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

RETIREMENT BENEFITS

The Company has a defined benefit, trusteed, pension plan covering substantially all employees. This qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the qualified pension plan were made for the year ended December 31, 2015, and no mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2016. The Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The Company funds its other postretirement trusts to the extent required by the FERC. For the year ending December 31, 2016, no other postretirement trust contributions are expected.

Actuarial Assumptions



Assumptions used to determine net periodic costs:	2015		2014		2013
Pension plans
Discount rate – interest costs	4.17	%	5.01	%	4.26	%
Discount rate – service costs	4.49		5.01		4.26
Expected long-term return on plan assets	8.20		8.20		8.20
Annual salary increase	3.59		3.59		3.59
Other postretirement benefit plans
Discount rate – interest costs	4.03	%	4.85	%	4.04	%
Discount rate – service costs	4.38		4.85		4.04
Expected long-term return on plan assets	7.23		7.30		7.04
Annual salary increase	3.59		3.59		3.59



Assumptions used to determine benefit obligations:	2015		2014
Pension plans
Discount rate	4.69	%	4.17	%
Annual salary increase	4.46		3.59
Other postretirement benefit plans
Discount rate	4.47	%	4.03	%
Annual salary increase	4.46		3.59



	Initial Cost Trend Rate		Ultimate Cost Trend Rate		Year That Ultimate Rate is Reached
Pre-65	6.50	%	4.50	%	2024
Post-65 medical	5.50		4.50		2024
Post-65 prescription	10.00		4.50		2025

An annual increase or decrease in the assumed medical care cost trend rate of 1% would affect the APBO and the service and interest cost components at December 31, 2015 as follows:



	1 Percent Increase		1 Percent Decrease
	(in millions)
Benefit obligation	$	5	$	(5	)
Service and interest costs	—		—

Pension Plans

The total accumulated benefit obligation for the pension plans was $447 million at December 31, 2015 and $462 million at December 31, 2014. Changes in the projected benefit obligations and the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	513		$	409
Service cost	13			10
Interest cost	21			20
Benefits paid	(22		)	(17		)
Actuarial loss (gain)	(25		)	91
Balance at end of year	500			513
Change in plan assets
Fair value of plan assets at beginning of year	446			387
Actual return on plan assets	4			40
Employer contributions	2			36
Benefits paid	(22		)	(17		)
Fair value of plan assets at end of year	430			446
Accrued liability	$	(70	)	$	(67	)

At December 31, 2015, the projected benefit obligations for the qualified and non-qualified pension plans were $470 million and $30 million, respectively. All pension plan assets are related to the qualified pension plan.

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's pension plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	144		$	151
Other current liabilities	(3		)	(2		)
Employee benefit obligations	(67		)	(65		)



	2015		2014		Estimated Amortization in 2016
	(in millions)
Prior service cost	$	2	$	3	$	1
Net loss	142		148		7
Regulatory assets	$	144	$	151

The changes in the balance of regulatory assets related to the defined benefit pension plans for the years ended December 31, 2015 and 2014 are presented in the following table:



	2015			2014
	(in millions)
Regulatory assets:
Beginning balance	$	151		$	78
Net (gain) loss	4			79
Reclassification adjustments:
Amortization of prior service costs	(1		)	(1		)
Amortization of net gain (loss)	(10		)	(5		)
Total reclassification adjustments	(11		)	(6		)
Total change	(7		)	73
Ending balance	$	144		$	151

Components of net periodic pension cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	13		$	10		$	11
Interest cost	21			20			18
Expected return on plan assets	(33		)	(29		)	(27		)
Recognized net loss	10			5			10
Net amortization	1			1			1
Net periodic pension cost	$	12		$	7		$	13



	Benefit Payments
	(in millions)
2016	$	20
2017	21
2018	22
2019	24
2020	25
2021 to 2025	146

Other Postretirement Benefits

Changes in the APBO and in the fair value of plan assets during the plan years ended December 31, 2015 and 2014 were as follows:



	2015			2014
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	96		$	81
Service cost	1			1
Interest cost	4			4
Benefits paid	(5		)	(5		)
Actuarial loss (gain)	(1		)	14
Plan amendment	1			—
Retiree drug subsidy	1			1
Balance at end of year	97			96
Change in plan assets
Fair value of plan assets at beginning of year	24			23
Actual return on plan assets	—			2
Employer contributions	3			3
Benefits paid	(4		)	(4		)
Fair value of plan assets at end of year	23			24
Accrued liability	$	(74	)	$	(72	)

Amounts recognized in the balance sheets at December 31, 2015 and 2014 related to the Company's other postretirement benefit plans consist of the following:



	2015			2014
	(in millions)
Other regulatory assets, deferred	$	21		$	18
Other regulatory liabilities, deferred	(3		)	(2		)
Employee benefit obligations	(74		)	(72		)



	2015			2014			Estimated Amortization in 2016
	(in millions)
Prior service cost	$	—		$	(2	)	$	—
Net (gain) loss	(18		)	18			1
Net regulatory assets	$	(18	)	$	16



	2015			2014
	(in millions)
Net regulatory assets (liabilities):
Beginning balance	$	16		$	2
Net (gain) loss	—			14
Change in prior service costs	3			—
Reclassification adjustments:
Amortization of net gain (loss)	(1		)	—
Total reclassification adjustments	(1		)	—
Total change	2			14
Ending balance	$	18		$	16

Components of the other postretirement benefit plans' net periodic cost were as follows:



	2015			2014			2013
	(in millions)
Service cost	$	1		$	1		$	1
Interest cost	4			4			4
Expected return on plan assets	(2		)	(2		)	(1		)
Net amortization	1			—			—
Net periodic postretirement benefit cost	$	4		$	3		$	4



	Benefit Payments		Subsidy Receipts			Total
	(in millions)
2016	$	6	$	—		$	6
2017	6		(1		)	5
2018	6		(1		)	5
2019	7		(1		)	6
2020	7		(1		)	6
2021 to 2025	36		(2		)	34

Benefit Plan Assets

The composition of the Company's pension plan and other postretirement benefit plan assets as of December 31, 2015 and 2014, along with the targeted mix of assets for each plan, is presented below:



	Target		2015		2014
Pension plan assets:
Domestic equity	26	%	30	%	30	%
International equity	25		23		23
Fixed income	23		23		27
Special situations	3		2		1
Real estate investments	14		16		14
Private equity	9		6		5
Total	100	%	100	%	100	%
Other postretirement benefit plan assets:
Domestic equity	21	%	24	%	24	%
International equity	20		18		19
Domestic fixed income	38		38		41
Special situations	3		2		1
Real estate investments	11		13		11
Private equity	7		5		4
Total	100	%	100	%	100	%

Investment Strategies

Detailed below is a description of the investment strategies for each major asset category for the pension and other postretirement benefit plans disclosed above:


•	Domestic equity. A mix of large and small capitalization stocks with generally an equal distribution of value and growth attributes, managed both actively and through passive index approaches.


•	International equity. A mix of growth stocks and value stocks with both developed and emerging market exposure, managed both actively and through passive index approaches.


•	Fixed income. A mix of domestic and international bonds.


•	Special situations. Investments in opportunistic strategies with the objective of diversifying and enhancing returns and exploiting short-term inefficiencies as well as investments in promising new strategies of a longer-term nature.


•	Real estate investments. Investments in traditional private market, equity-oriented investments in real properties (indirectly through pooled funds or partnerships) and in publicly traded real estate securities.


•	Private equity. Investments in private partnerships that invest in private or public securities typically through privately-negotiated and/or structured transactions, including leveraged buyouts, venture capital, and distressed debt.

Benefit Plan Asset Fair Values

Valuation methods of the primary fair value measurements disclosed in the following tables are as follows:

•


•	Fixed income. Investments in fixed income securities are generally classified as Level 2 investments and are valued based on prices reported in the market place. Additionally, the value of fixed income securities takes into consideration certain items such as broker quotes, spreads, yield curves, interest rates, and discount rates that apply to the term of a specific instrument.

•



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	76	$	32	$	—	$	—	$	108
International equity*	55		46		—		—		101
Fixed income:
U.S. Treasury, government, and agency bonds	—		21		—		—		21
Mortgage- and asset-backed securities	—		9		—		—		9
Corporate bonds	—		53		—		—		53
Pooled funds	—		23		—		—		23
Cash equivalents and other	—		7		—		—		7
Real estate investments	14		—		—		57		71
Private equity	—		—		—		30		30
Total	$	145	$	191	$	—	$	87	$	423



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	78	$	32	$	—	$	—	$	110
International equity*	49		45		—		—		94
Fixed income:
U.S. Treasury, government, and agency bonds	—		32		—		—		32
Mortgage- and asset-backed securities	—		9		—		—		9
Corporate bonds	—		53		—		—		53
Pooled funds	—		24		—		—		24
Cash equivalents and other	—		30		—		—		30
Real estate investments	14		—		—		51		65
Private equity	—		—		—		26		26
Total	$	141	$	225	$	—	$	77	$	443



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2015:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	3	$	1	$	—	$	—	$	4
International equity*	2		2		—		—		4
Fixed income:
U.S. Treasury, government, and agency bonds	—		6		—		—		6
Mortgage- and asset-backed securities	—		—		—		—		—
Corporate bonds	—		2		—		—		2
Pooled funds	—		1		—		—		1
Cash equivalents and other	1		—		—		—		1
Real estate investments	1		—		—		3		4
Private equity	—		—		—		1		1
Total	$	7	$	12	$	—	$	4	$	23



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.



	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Net Asset Value as a Practical Expedient
As of December 31, 2014:	(Level 1)		(Level 2)		(Level 3)		(NAV)		Total
	(in millions)
Assets:
Domestic equity*	$	3	$	2	$	—	$	—	$	5
International equity*	2		2		—		—		4
Fixed income:
U.S. Treasury, government, and agency bonds	—		6		—		—		6
Mortgage- and asset-backed securities	—		—		—		—		—
Corporate bonds	—		2		—		—		2
Pooled funds	—		1		—		—		1
Cash equivalents and other	1		1		—		—		2
Real estate investments	1		—		—		2		3
Private equity	—		—		—		1		1
Total	$	7	$	14	$	—	$	3	$	24



*	Level 1 securities consist of actively traded stocks while Level 2 securities consist of pooled funds. Management believes that the portfolio is well-diversified with no significant concentrations of risk.

Employee Savings Plan

The Company also sponsors a 401(k) defined contribution plan covering substantially all employees. The Company provides an 85% matching contribution on up to 6% of an employee's base salary. Total matching contributions made to the plan for 2015, 2014, and 2013 were $5 million, $5 million, and $4 million, respectively.