Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Financial Data for Business Segments

Financial data for business segments and products and services for the three months ended March 31, 2018 and 2017 was as follows:

	Electric Utilities
	Traditional Electric Operating Companies		Southern Power		Eliminations			Total		Southern Company Gas		All Other			Eliminations			Consolidated
	(in millions)
Three Months Ended March 31, 2018:
Operating revenues	$	3,979	$	509	$	(106	)	$	4,382	$	1,639	$	401		$	(50	)	$	6,372
Segment net income (loss)(a)(b)(c)	612		121		—			733		279		(74		)	—			938
Total assets at March 31, 2018	$	72,893	$	15,182	$	(262	)	$	87,813	$	22,568	$	2,733		$	(1,547	)	$	111,567
Three Months Ended March 31, 2017:
Operating revenues	$	3,786	$	450	$	(105	)	$	4,131	$	1,560	$	123		$	(43	)	$	5,771
Segment net income (loss)(a)(b)(d)	432		70		—			502		239		(84		)	1			658
Total assets at December 31, 2017	$	72,204	$	15,206	$	(325	)	$	87,085	$	22,987	$	2,552		$	(1,619	)	$	111,005

(a) Attributable to Southern Company.

(b) Segment net income (loss) for the traditional electric operating companies includes pre-tax charges for estimated losses on the Kemper IGCC of $44 million ($33 million after tax) and $108 million ($67 million after tax) for the three months ended March 31, 2018 and 2017, respectively. See Note 3 to the financial statements of Southern Company under "Kemper County Energy Facility" in Item 8 of the Form 10-K and Note (B) under "Kemper County Energy Facility" for additional information.

(c) Segment net income (loss) for Southern Company Gas includes a goodwill impairment charge of $42 million for the three months ended March 31, 2018 in contemplation of the sale of Pivotal Home Solutions. See Note (J) under "Southern Company Gas – Proposed Sale of Pivotal Home Solutions" for additional information.

(d) Segment net income (loss) for the traditional electric operating companies also includes a pre-tax charge for the write-down of Gulf Power's ownership of Plant Scherer Unit 3 of $33 million ($20 million after tax) for the three months ended March 31, 2017. See Note 3 to the financial statements of Southern Company under "Regulatory Matters – Gulf Power – Retail Base Rate Cases" in Item 8 of the Form 10-K for additional information.

Business segment financial data for the three months ended March 31, 2018 and 2017 was as follows:

	Gas Distribution Operations		Gas Marketing Services(a)		Wholesale Gas Services(b)		Gas Midstream Operations		Total		All Other			Eliminations			Consolidated
	(in millions)
Three Months Ended March 31, 2018:
Operating revenues	$	1,212	$	271	$	166	$	22	$	1,671	$	1		$	(33	)	$	1,639
Segment net income	149		13		104		23		289		(10		)	—			279
Total assets at March 31, 2018:	18,332		2,144		903		2,263		23,642		11,839			(12,913		)	22,568
Three Months Ended March 31, 2017:
Operating revenues	$	1,180	$	288	$	131	$	25	$	1,624	$	2		$	(66	)	$	1,560
Segment net income	117		31		68		15		231		8			—			239
Total assets at December 31, 2017:	19,358		2,147		1,096		2,241		24,842		12,184			(14,039		)	22,987

(a) Segment net income for gas marketing services includes a goodwill impairment charge of $42 million for the three months ended March 31, 2018 in contemplation of the sale of Pivotal Home Solutions. See Note (J) under "Southern Company Gas – Proposed Sale of Pivotal Home Solutions" for additional information.

(b) The revenues for wholesale gas services are netted with costs associated with its energy and risk management activities. A reconciliation of operating revenues and intercompany revenues is shown in the following table.

	Third Party Gross Revenues		Intercompany Revenues		Total Gross Revenues		Less Gross Gas Costs		Operating Revenues
	(in millions)
Three Months Ended March 31, 2018	$	1,938	$	167	$	2,105	$	1,939	$	166
Three Months Ended March 31, 2017	$	1,839	$	136	$	1,975	$	1,844	$	131

Financial Data for Products and Services

Products and Services

	Electric Utilities' Revenues
Period	Retail		Wholesale		Other		Total
	(in millions)
Three Months Ended March 31, 2018	$	3,568	$	619	$	195	$	4,382
Three Months Ended March 31, 2017	3,394		531		206		4,131

	Southern Company Gas' Revenues
Period	Gas Distribution Operations		Gas Marketing Services		Other		Total
	(in millions)
Three Months Ended March 31, 2018	$	1,200	$	271	$	168	$	1,639
Three Months Ended March 31, 2017	1,132		288		140		1,560