Introduction (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Goodwill

Goodwill at September 30, 2019 and December 31, 2018 was as follows:

	At September 30, 2019		At December 31, 2018
	(in millions)
Southern Company	$	5,280	$	5,315
Southern Company Gas:
Gas distribution operations	$	4,034	$	4,034
Gas marketing services	981		981
Southern Company Gas total	$	5,015	$	5,015

Schedule of Other Intangible Assets, Indefinite-Lived

Other intangible assets were as follows:

	At September 30, 2019							At December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Other Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization			Other Intangible Assets, Net
	(in millions)							(in millions)
Southern Company
Other intangible assets subject to amortization:
Customer relationships(a)	$	211	$	(110	)	$	101	$	223	$	(94	)	$	129
Trade names(a)	64		(23		)	41		70		(21		)	49
Storage and transportation contracts	64		(60		)	4		64		(54		)	10
PPA fair value adjustments(b)	389		(64		)	325		405		(61		)	344
Other	12		(8		)	4		11		(5		)	6
Total other intangible assets subject to amortization	$	740	$	(265	)	$	475	$	773	$	(235	)	$	538
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—			75		75		—			75
Total other intangible assets	$	815	$	(265	)	$	550	$	848	$	(235	)	$	613
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments(b)	$	389	$	(64	)	$	325	$	405	$	(61	)	$	344
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(99	)	$	57	$	156	$	(84	)	$	72
Trade names	26		(9		)	17		26		(7		)	19
Wholesale gas services
Storage and transportation contracts	64		(60		)	4		64		(54		)	10
Total other intangible assets subject to amortization	$	246	$	(168	)	$	78	$	246	$	(145	)	$	101

(a) The decrease in the gross carrying amount during the nine months ended September 30, 2019 primarily reflects the reclassification to held for sale. See Note (K) for additional information.

(b)

The decrease in the gross carrying amount during the nine months ended September 30, 2019 reflects the sale of Plant Nacogdoches, partially offset by additional PPA fair value adjustments related to the acquisition of DSGP. See Note (K) under "Southern Power" for additional information.

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:

	At September 30, 2019							At December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Other Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization			Other Intangible Assets, Net
	(in millions)							(in millions)
Southern Company
Other intangible assets subject to amortization:
Customer relationships(a)	$	211	$	(110	)	$	101	$	223	$	(94	)	$	129
Trade names(a)	64		(23		)	41		70		(21		)	49
Storage and transportation contracts	64		(60		)	4		64		(54		)	10
PPA fair value adjustments(b)	389		(64		)	325		405		(61		)	344
Other	12		(8		)	4		11		(5		)	6
Total other intangible assets subject to amortization	$	740	$	(265	)	$	475	$	773	$	(235	)	$	538
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—			75		75		—			75
Total other intangible assets	$	815	$	(265	)	$	550	$	848	$	(235	)	$	613
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments(b)	$	389	$	(64	)	$	325	$	405	$	(61	)	$	344
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(99	)	$	57	$	156	$	(84	)	$	72
Trade names	26		(9		)	17		26		(7		)	19
Wholesale gas services
Storage and transportation contracts	64		(60		)	4		64		(54		)	10
Total other intangible assets subject to amortization	$	246	$	(168	)	$	78	$	246	$	(145	)	$	101

(a) The decrease in the gross carrying amount during the nine months ended September 30, 2019 primarily reflects the reclassification to held for sale. See Note (K) for additional information.

(b) The decrease in the gross carrying amount during the nine months ended September 30, 2019 reflects the sale of Plant Nacogdoches, partially offset by additional PPA fair value adjustments related to the acquisition of DSGP. See Note (K) under "Southern Power" for additional information.

Finite-lived Intangible Assets Amortization Expense

Amortization associated with other intangible assets was as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2019
	(in millions)
Southern Company(a)	$	14	$	45
Southern Power(b)	$	4	$	14
Southern Company Gas
Gas marketing services	$	5	$	17
Wholesale gas services(b)	2		6
Southern Company Gas total	$	7	$	23

(a) Includes $6 million and $20 million for the three and nine months ended September 30, 2019, respectively, recorded as a reduction to operating revenues.

(b)

Recorded as a reduction to operating revenues.

Restrictions on Cash and Cash Equivalents

The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amounts shown in the condensed statements of cash flows for the registrants that had restricted cash at September 30, 2019 and/or December 31, 2018:

	Southern Company			Southern Company Gas
	(in millions)
At September 30, 2019
Cash and cash equivalents	$	2,931		$	59
Restricted cash:
Other accounts and notes receivable	3			3
Total cash, cash equivalents, and restricted cash	$	2,935	(*)	$	62

(*) Total does not add due to rounding.

	Southern Company		Georgia Power		Southern Company Gas
	(in millions)
At December 31, 2018
Cash and cash equivalents	$	1,396	$	4	$	64
Cash and cash equivalents held for sale	9		—		—
Restricted cash:
Restricted cash	—		108		—
Other accounts and notes receivable	114		—		6
Total cash, cash equivalents, and restricted cash	$	1,519	$	112	$	70

Schedule of Cash and Cash Equivalents

The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed balance sheets that total to the amounts shown in the condensed statements of cash flows for the registrants that had restricted cash at September 30, 2019 and/or December 31, 2018:

	Southern Company			Southern Company Gas
	(in millions)
At September 30, 2019
Cash and cash equivalents	$	2,931		$	59
Restricted cash:
Other accounts and notes receivable	3			3
Total cash, cash equivalents, and restricted cash	$	2,935	(*)	$	62

(*) Total does not add due to rounding.

	Southern Company		Georgia Power		Southern Company Gas
	(in millions)
At December 31, 2018
Cash and cash equivalents	$	1,396	$	4	$	64
Cash and cash equivalents held for sale	9		—		—
Restricted cash:
Restricted cash	—		108		—
Other accounts and notes receivable	114		—		6
Total cash, cash equivalents, and restricted cash	$	1,519	$	112	$	70

Details of AROs included in the balance sheets

Details of the AROs included in the condensed balance sheets of Southern Company, Alabama Power, and Mississippi Power at September 30, 2019 are shown in the following table. There were no material changes in the AROs of Georgia Power or Southern Power during the first nine months of 2019.

	Southern Company			Alabama Power			Mississippi Power
	(in millions)
Balance at December 31, 2018	$	9,394		$	3,210		$	160
Liabilities incurred	35			—			1
Liabilities settled	(223		)	(76		)	(28		)
Accretion	299			107			5
Cash flow revisions	455			312			57
Balance at September 30, 2019	$	9,960		$	3,553		$	195