INTRODUCTION (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Goodwill

Goodwill at March 31, 2020 and December 31, 2019 was as follows:

	Goodwill
	(in millions)
Southern Company	$	5,280
Southern Company Gas:
Gas distribution operations	$	4,034
Gas marketing services	981
Southern Company Gas total	$	5,015

Schedule of Other Intangible Assets, Indefinite-Lived

Other intangible assets were as follows:

	At March 31, 2020							At December 31, 2019
	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	$	212	$	(121	)	$	91	$	212	$	(116	)	$	96
Trade names	64		(26		)	38		64		(25		)	39
Storage and transportation contracts	64		(63		)	1		64		(62		)	2
PPA fair value adjustments	390		(74		)	316		390		(69		)	321
Other	10		(8		)	2		11		(8		)	3
Total other intangible assets subject to amortization	$	740	$	(292	)	$	448	$	741	$	(280	)	$	461
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—			75		75		—			75
Total other intangible assets	$	815	$	(292	)	$	523	$	816	$	(280	)	$	536
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(74	)	$	316	$	390	$	(69	)	$	321
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(108	)	$	48	$	156	$	(104	)	$	52
Trade names	26		(10		)	16		26		(10		)	16
Wholesale gas services
Storage and transportation contracts	64		(63		)	1		64		(62		)	2
Total other intangible assets subject to amortization	$	246	$	(181	)	$	65	$	246	$	(176	)	$	70

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:

	At March 31, 2020							At December 31, 2019
	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	$	212	$	(121	)	$	91	$	212	$	(116	)	$	96
Trade names	64		(26		)	38		64		(25		)	39
Storage and transportation contracts	64		(63		)	1		64		(62		)	2
PPA fair value adjustments	390		(74		)	316		390		(69		)	321
Other	10		(8		)	2		11		(8		)	3
Total other intangible assets subject to amortization	$	740	$	(292	)	$	448	$	741	$	(280	)	$	461
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—			75		75		—			75
Total other intangible assets	$	815	$	(292	)	$	523	$	816	$	(280	)	$	536
Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(74	)	$	316	$	390	$	(69	)	$	321
Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(108	)	$	48	$	156	$	(104	)	$	52
Trade names	26		(10		)	16		26		(10		)	16
Wholesale gas services
Storage and transportation contracts	64		(63		)	1		64		(62		)	2
Total other intangible assets subject to amortization	$	246	$	(181	)	$	65	$	246	$	(176	)	$	70

Finite-lived Intangible Assets Amortization Expense

Amortization associated with other intangible assets was as follows:

	Three Months Ended
	March 31, 2020
	(in millions)
Southern Company(a)	$	12
Southern Power(b)	$	5
Southern Company Gas
Gas marketing services	$	4
Wholesale gas services(b)	1
Southern Company Gas total	$	5

(a) Includes $6 million for the three months ended March 31, 2020, recorded as a reduction to operating revenues.

(b)

Recorded as a reduction to operating revenues.

Restrictions on Cash and Cash Equivalents

The following table provides 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 March 31, 2020 and/or December 31, 2019:

	Southern Company					Southern Company Gas
	At March 31, 2020			At December 31, 2019		At March 31, 2020		At December 31, 2019
	(in millions)					(in millions)
Cash and cash equivalents	$	2,164		$	1,975	$	311	$	46
Restricted cash(a):
Other accounts and notes receivable	—			3		—		3
Other current assets	3			—		3		—
Total cash, cash equivalents, and restricted cash	$	2,168	(b)	$	1,978	$	314	$	49

(a) Represents restricted cash held by Southern Company Gas as collateral for workers' compensation, life insurance, and long-term disability insurance.

(b) Total does not add due to rounding.

Schedule of Cash and Cash Equivalents

The following table provides 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 March 31, 2020 and/or December 31, 2019:

	Southern Company					Southern Company Gas
	At March 31, 2020			At December 31, 2019		At March 31, 2020		At December 31, 2019
	(in millions)					(in millions)
Cash and cash equivalents	$	2,164		$	1,975	$	311	$	46
Restricted cash(a):
Other accounts and notes receivable	—			3		—		3
Other current assets	3			—		3		—
Total cash, cash equivalents, and restricted cash	$	2,168	(b)	$	1,978	$	314	$	49

(a) Represents restricted cash held by Southern Company Gas as collateral for workers' compensation, life insurance, and long-term disability insurance.

(b) Total does not add due to rounding.