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Segment and Related Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
SEGMENT AND RELATED INFORMATION SEGMENT AND RELATED INFORMATION
Southern Company
The primary businesses of the Southern Company system are electricity sales by the traditional electric operating companies and Southern Power and the distribution of natural gas by Southern Company Gas. The traditional electric operating companies – Alabama Power, Georgia Power, and Mississippi Power – are vertically integrated utilities providing electric service in three Southeastern states. Southern Power develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. Southern Company Gas distributes natural gas through its natural gas distribution utilities and is involved in several other complementary businesses including gas pipeline investments, wholesale gas services, and gas marketing services.
Southern Company's reportable business segments are the sale of electricity by the traditional electric operating companies, the sale of electricity in the competitive wholesale market by Southern Power, and the sale of natural gas and other complementary products and services by Southern Company Gas. Revenues from sales by Southern Power to the traditional electric operating companies were $116 million and $320 million for the three and nine months ended September 30, 2019, respectively, and $134 million and $326 million for the three and nine months ended September 30, 2018, respectively. Revenues from sales of natural gas from Southern Company Gas to the traditional electric operating companies were $9 million and $13 million for the three and nine months ended September 30, 2019, respectively, and $14 million and $22 million for the three and nine months ended September 30, 2018, respectively. Revenues from sales of natural gas from Southern Company Gas to Southern Power were $20 million and $53 million for the three and nine months ended September 30, 2019, respectively, and $38 million and $96 million for the three and nine months ended September 30, 2018, respectively. The "All Other" column includes the Southern Company parent entity, which does not allocate operating expenses to business segments. Also, this category includes segments below the quantitative threshold for separate disclosure. These segments include providing energy solutions, such as distributed energy infrastructure and energy efficiency products and services, to customers, as well as 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 nine months ended September 30, 2019 and 2018 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 September 30, 2019
 
 
 
 
 
 
 
Operating revenues
$
4,908

$
574

$
(119
)
$
5,363

$
498

$
146

$
(12
)
$
5,995

Segment net income (loss)(a)(b)(c)(d)
1,373

86

—

1,459

(29
)
(110
)
(4
)
1,316

Nine Months Ended September 30, 2019
 
 
 


 
 
 
Operating revenues
$
12,252

$
1,527

$
(331
)
$
13,448

$
2,661

$
514

$
(118
)
$
16,505

Segment net income (loss)(a)(b)(c)(d)(e)
2,719

316

—

3,035

347

931

(15
)
4,298

At September 30, 2019
 
 
 
 
 
 
 
 
Goodwill
$
—

$
2

$
—

$
2

$
5,015

$
263

$
—

$
5,280

Total assets
80,493

14,397

(756
)
94,134

21,047

3,569

(1,159
)
117,591

Three Months Ended September 30, 2018
 
 
 
 
 
 
 
Operating revenues
$
5,014

$
635

$
(140
)
$
5,509

$
492

$
202

$
(44
)
$
6,159

Segment net income (loss)(a)(b)(e)(f)
1,148

92

—

1,240

46

(119
)
(3
)
1,164

Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
Operating revenues
$
13,117

$
1,699

$
(360
)
$
14,456

$
2,861

$
984

$
(143
)
$
18,158

Segment net income (loss)(a)(b)(e)(f)
1,711

235

—

1,946

294

(292
)
—

1,948

At December 31, 2018
 
 
 
 
 
 
 
 
Goodwill
$
—

$
2

$
—

$
2

$
5,015

$
298

$
—

$
5,315

Total assets
79,382

14,883

(306
)
93,959

21,448

3,285

(1,778
)
116,914

(a)
Attributable to Southern Company.
(b)
Segment net income (loss) for the traditional electric operating companies includes pre-tax charges for estimated losses on plants under construction of $4 million ($3 million after tax) and $1 million ($1 million after tax) for the three months ended September 30, 2019 and 2018, respectively, and $10 million ($7 million after tax) and $1.1 billion ($0.8 billion after tax) for the nine months ended September 30, 2019 and 2018, respectively. See Note 2 to the financial statements in Item 8 of the Form 10-K and Note (B) under "Georgia Power – Nuclear Construction" and "Mississippi Power – Kemper County Energy Facility" for additional information.
(c)
Segment net income (loss) for the "All Other" column includes the preliminary pre-tax gain associated with the sale of Gulf Power of $2.5 billion ($1.3 billion after tax) for the nine months ended September 30, 2019, of which $4 million ($4 million after tax) was recorded in the three months ended September 30, 2019, as well as impairment charges in contemplation of the sales of two of PowerSecure's business units totaling $18 million and $50 million for the three and nine months ended September 30, 2019, respectively. See Note (K) under "Southern Company" for additional information.
(d)
Segment net income (loss) for Southern Company Gas includes a pre-tax impairment charge of $92 million ($65 million after tax) related to a natural gas storage facility in Louisiana. See Note (C) under "Other Matters – Southern Company Gas" for additional information.
(e)
Segment net income (loss) for Southern Power includes a $23 million pre-tax gain ($88 million gain after tax) on the sale of Plant Nacogdoches for the nine months ended September 30, 2019 and pre-tax impairment charges of $36 million ($27 million after tax) and $155 million ($116 million after tax) for the three and nine months ended September 30, 2018, respectively. See Note (K) under "Southern Power" and Note 15 to the financial statements in Item 8 of the Form 10-K under "Southern Power – Development Projects" and " – Sale of Natural Gas Plants" for additional information.
(f)
Segment net income (loss) for Southern Company Gas includes a net gain on dispositions of $353 million ($40 million gain after tax) and $317 million ($35 million loss after tax) for the three and nine months ended September 30, 2018, respectively, related to the Southern Company Gas Dispositions and a goodwill impairment charge of $42 million for the nine months ended September 30, 2018 related to the sale of Pivotal Home Solutions. See Note 15 to the financial statements in Item 8 of the Form 10-K under "Southern Company Gas" for additional information.
Products and Services
 
Electric Utilities' Revenues
 
Retail
Wholesale
Other
Total
 
(in millions)
Three Months Ended September 30, 2019
$
4,512

$
625

$
226

$
5,363

Three Months Ended September 30, 2018
4,605

698

206

5,509

Nine Months Ended September 30, 2019
$
11,136

$
1,667

$
645

$
13,448

Nine Months Ended September 30, 2018
11,913

1,937

606

14,456

 
Southern Company Gas' Revenues
 
Gas
Distribution
Operations(a)
Gas
Marketing
Services(b)
Other
Total
 
(in millions)
Three Months Ended September 30, 2019
$
445

$
39

$
14

$
498

Three Months Ended September 30, 2018
438

44

10

492

Nine Months Ended September 30, 2019
$
2,169

$
326

$
166

$
2,661

Nine Months Ended September 30, 2018
2,276

403

182

2,861

(a)
Operating revenues for the three gas distribution operations dispositions were $7 million and $245 million for the three and nine months ended September 30, 2018, respectively.
(b)
Operating revenues for Pivotal Home Solutions were $55 million for the nine months ended September 30, 2018, respectively.
Southern Company Gas
Southern Company Gas manages its business through four reportable segments – gas distribution operations, gas pipeline investments, wholesale gas services, and gas marketing services. The non-reportable segments are combined and presented as all other.
Gas distribution operations is the largest component of Southern Company Gas' business and includes natural gas local distribution utilities that construct, manage, and maintain intrastate natural gas pipelines and gas distribution facilities in four states.
Gas pipeline investments consists of joint ventures in natural gas pipeline investments including a 50% interest in SNG, two significant pipeline construction projects, and a 50% joint ownership interest in the Dalton Pipeline. These natural gas pipelines enable the provision of diverse sources of natural gas supplies to the customers of Southern Company Gas.
Wholesale gas services provides natural gas asset management and/or related logistics services for each of Southern Company Gas' utilities except Nicor Gas as well as for non-affiliated companies. Additionally, wholesale gas services engages in natural gas storage and gas pipeline arbitrage and related activities.
Gas marketing services provides natural gas marketing to end-use customers primarily in Georgia and Illinois through SouthStar Energy Services, LLC.
The all other column includes segments below the quantitative threshold for separate disclosure. This includes Southern Company Gas' storage and fuels operations, its investment in Triton through the completion of its sale on May 29, 2019, and other subsidiaries that fall below the quantitative threshold for separate disclosure. See Note (E) under "Southern Company Gas" for additional information and related disclosures.
Business segment financial data for the three and nine months ended September 30, 2019 and 2018 was as follows:
 
Gas Distribution Operations(a)
Gas Pipeline Investments
Wholesale Gas Services(b)
Gas Marketing Services(c)(d)
Total
All Other(e)
Eliminations
Consolidated
 
(in millions)
Three Months Ended September 30, 2019
 
 
 
 
 
 
Operating revenues
$
448

$
8

$
(2
)
$
39

$
493

$
10

$
(5
)
$
498

Segment net income (loss)
37

6

(9
)
(4
)
30

(59
)
—

(29
)
Nine Months Ended September 30, 2019
 
 
 
 
 
 
Operating revenues
$
2,188

$
24

$
132

$
326

$
2,670

$
34

$
(43
)
$
2,661

Segment net income (loss)
228

63

61

54

406

(59
)
—

347

Total assets at September 30, 2019
17,798

1,743

657

1,443

21,641

10,429

(11,023
)
21,047

Three Months Ended September 30, 2018
 
 
 
 
 
 
Operating revenues
$
441

$
8

$
(8
)
$
44

$
485

$
13

$
(6
)
$
492

Segment net income (loss)
74

20

(18
)
(8
)
68

(22
)
—

46

Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
Operating revenues
$
2,297

$
24

$
142

$
403

$
2,866

$
39

$
(44
)
$
2,861

Segment net income (loss)
290

68

65

(71
)
352

(58
)
—

294

Total assets at December 31, 2018
17,266

1,763

1,302

1,587

21,918

11,112

(11,582
)
21,448

(a)
Operating revenues for the three gas distribution operations dispositions were $8 million and $245 million for the three and nine months ended September 30, 2018, respectively. See Note 15 to the financial statements in Item 8 of the Form 10-K under "Southern Company Gas" 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 September 30, 2019
$
1,138

$
72

$
1,210

$
1,212

$
(2
)
Three Months Ended September 30, 2018
1,573

82

1,655

1,663

(8
)
Nine Months Ended September 30, 2019
$
4,287

$
223

$
4,510

$
4,378

$
132

Nine Months Ended September 30, 2018
4,847

352

5,199

5,057

142

(c)
Operating revenues for Pivotal Home Solutions were $55 million for the nine months ended September 30, 2018. See Note 15 to the financial statements in Item 8 of the Form 10-K under "Southern Company Gas" for additional information on the sale of Pivotal Home Solutions.
(d)
Segment net income (loss) for gas marketing services includes a loss on disposition of $34 million for the nine months ended September 30, 2018 and a goodwill impairment charge of $42 million for the nine months ended September 30, 2018 related to the sale of Pivotal Home Solutions. See Note 15 to the financial statements in Item 8 of the Form 10-K under "Southern Company Gas" for additional information.
(e)
Segment net income (loss) for the "All Other" column includes a pre-tax impairment charge of $92 million ($65 million after tax) for the three and nine months ended September 30, 2019 related to a natural gas storage facility in Louisiana. See Note (C) under "Other Matters – Southern Company Gas" for additional information.