INTRODUCTION (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Goodwill at September 30, 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 September 30, 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	$	(130)	$	82	$	212	$	(116)	$	96
Trade names	64		(30)		34		64		(25)		39
Storage and transportation contracts	64		(64)		—		64		(62)		2
PPA fair value adjustments	390		(84)		306		390		(69)		321
Other	10		(8)		2		11		(8)		3
Total other intangible assets subject to amortization	$	740	$	(316)	$	424	$	741	$	(280)	$	461
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—		75		75		—		75
Total other intangible assets	$	815	$	(316)	$	499	$	816	$	(280)	$	536

Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(84)	$	306	$	390	$	(69)	$	321

Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(115)	$	41	$	156	$	(104)	$	52
Trade names	26		(12)		14		26		(10)		16
Wholesale gas services
Storage and transportation contracts	64		(64)		—		64		(62)		2
Total other intangible assets subject to amortization	$	246	$	(191)	$	55	$	246	$	(176)	$	70

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:


	At September 30, 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	$	(130)	$	82	$	212	$	(116)	$	96
Trade names	64		(30)		34		64		(25)		39
Storage and transportation contracts	64		(64)		—		64		(62)		2
PPA fair value adjustments	390		(84)		306		390		(69)		321
Other	10		(8)		2		11		(8)		3
Total other intangible assets subject to amortization	$	740	$	(316)	$	424	$	741	$	(280)	$	461
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—		75		75		—		75
Total other intangible assets	$	815	$	(316)	$	499	$	816	$	(280)	$	536

Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(84)	$	306	$	390	$	(69)	$	321

Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(115)	$	41	$	156	$	(104)	$	52
Trade names	26		(12)		14		26		(10)		16
Wholesale gas services
Storage and transportation contracts	64		(64)		—		64		(62)		2
Total other intangible assets subject to amortization	$	246	$	(191)	$	55	$	246	$	(176)	$	70

Finite-lived Intangible Assets Amortization Expense

Amortization associated with other intangible assets was as follows:


	Three Months Ended		Nine Months Ended
	September 30, 2020
	(in millions)
Southern Company(a)	$	12	$	37
Southern Power(b)	$	5	$	15
Southern Company Gas
Gas marketing services	$	4	$	13
Wholesale gas services(b)	1		2
Southern Company Gas total	$	5	$	15

(a)Includes $6 million and $17 million for the three and nine months ended September 30, 2020, respectively, 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 September 30, 2020 and/or December 31, 2019:


	Southern Company					Southern Power		Southern Company Gas
	At September 30, 2020			At December 31, 2019		At September 30, 2020		At September 30, 2020		At December 31, 2019
	(in millions)					(in millions)		(in millions)
Cash and cash equivalents	$	3,379		$	1,975	$	416	$	157	$	46
Restricted cash(a):
Other accounts and notes receivable	—			3		—		—		3
Other current assets	4			—		—		4		—
Other deferred charges and assets	1			—		1		—		—
Total cash, cash equivalents, and restricted cash	$	3,383	(b)	$	1,978	$	417	$	161	$	49

(a)For Southern Company Gas, reflects restricted cash held as collateral for workers' compensation, life insurance, and long-term disability insurance. For Southern Power, reflects restricted cash held for construction payables.

(b)Total does not add due to rounding.

Schedule of Cash and Cash Equivalents


	Southern Company					Southern Power		Southern Company Gas
	At September 30, 2020			At December 31, 2019		At September 30, 2020		At September 30, 2020		At December 31, 2019
	(in millions)					(in millions)		(in millions)
Cash and cash equivalents	$	3,379		$	1,975	$	416	$	157	$	46
Restricted cash(a):
Other accounts and notes receivable	—			3		—		—		3
Other current assets	4			—		—		4		—
Other deferred charges and assets	1			—		1		—		—
Total cash, cash equivalents, and restricted cash	$	3,383	(b)	$	1,978	$	417	$	161	$	49

(b)Total does not add due to rounding.

Schedule of Changes in Asset Retirement Obligations

Details of changes in AROs for Southern Company, Alabama Power, and Georgia Power during the first nine months of 2020 are shown in the following table. There were no material changes in AROs for the other Registrants during the first nine months of 2020.


	Southern Company		Alabama Power		Georgia Power
	(in millions)
Balance at December 31, 2019	$	9,786	$	3,540	$	5,784
Liabilities incurred	15		—		10
Liabilities settled	(315)		(157)		(130)
Accretion	308		113		177
Cash flow revisions	866		462		411
Balance at September 30, 2020	$	10,660	$	3,958	$	6,252