Introduction (Tables)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Goodwill at September 30, 2021 and December 31, 2020 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, 2021						At December 31, 2020
	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	$	(148)	$	64	$	212	$	(135)	$	77
Trade names	64		(36)		28		64		(31)		33
Storage and transportation contracts(*)	—		—		—		64		(64)		—
PPA fair value adjustments	390		(104)		286		390		(89)		301
Other	10		(8)		2		10		(9)		1
Total other intangible assets subject to amortization	$	676	$	(296)	$	380	$	740	$	(328)	$	412
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—		75		75		—		75
Total other intangible assets	$	751	$	(296)	$	455	$	815	$	(328)	$	487

Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(104)	$	286	$	390	$	(89)	$	301

Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(128)	$	28	$	156	$	(119)	$	37
Trade names	26		(14)		12		26		(12)		14
Wholesale gas services
Storage and transportation contracts(*)	—		—		—		64		(64)		—
Total other intangible assets subject to amortization	$	182	$	(142)	$	40	$	246	$	(195)	$	51

(*)See Note (K) under "Southern Company Gas" for information regarding the sale of Sequent.

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets were as follows:


	At September 30, 2021						At December 31, 2020
	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	$	(148)	$	64	$	212	$	(135)	$	77
Trade names	64		(36)		28		64		(31)		33
Storage and transportation contracts(*)	—		—		—		64		(64)		—
PPA fair value adjustments	390		(104)		286		390		(89)		301
Other	10		(8)		2		10		(9)		1
Total other intangible assets subject to amortization	$	676	$	(296)	$	380	$	740	$	(328)	$	412
Other intangible assets not subject to amortization:
Federal Communications Commission licenses	75		—		75		75		—		75
Total other intangible assets	$	751	$	(296)	$	455	$	815	$	(328)	$	487

Southern Power
Other intangible assets subject to amortization:
PPA fair value adjustments	$	390	$	(104)	$	286	$	390	$	(89)	$	301

Southern Company Gas
Other intangible assets subject to amortization:
Gas marketing services
Customer relationships	$	156	$	(128)	$	28	$	156	$	(119)	$	37
Trade names	26		(14)		12		26		(12)		14
Wholesale gas services
Storage and transportation contracts(*)	—		—		—		64		(64)		—
Total other intangible assets subject to amortization	$	182	$	(142)	$	40	$	246	$	(195)	$	51

(*)See Note (K) under "Southern Company Gas" for information regarding the sale of Sequent.

Schedule of Amortization of Other Intangible Assets

Amortization associated with other intangible assets was as follows:


	Three Months Ended		Nine Months Ended
	September 30, 2021
	(in millions)
Southern Company(a)	$	11	$	33
Southern Power(b)	5		15
Southern Company Gas(c)	4		11

(a)Includes $5 million and $15 million for the three and nine months ended September 30, 2021, respectively, recorded as a reduction to operating revenues.

(b)Recorded as a reduction to operating revenues.

(c)Relates to gas marketing services.

Schedule of 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 amount shown in the condensed statements of cash flows for the applicable Registrants:


	Southern Company				Southern Power		Southern Company Gas
	September 30, 2021		December 31, 2020		September 30, 2021		September 30, 2021		December 31, 2020
	(in millions)				(in millions)		(in millions)
Cash and cash equivalents	$	2,078	$	1,065	$	192	$	29	$	17

Restricted cash(a):
Other current assets	3		2		—		3		2
Other deferred charges and assets	21		—		21		—		—
Total cash, cash equivalents, and restricted cash(b)	$	2,101	$	1,068	$	213	$	32	$	19

(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 may not add due to rounding.

Schedule of Cash and Cash Equivalents


	Southern Company				Southern Power		Southern Company Gas
	September 30, 2021		December 31, 2020		September 30, 2021		September 30, 2021		December 31, 2020
	(in millions)				(in millions)		(in millions)
Cash and cash equivalents	$	2,078	$	1,065	$	192	$	29	$	17

Restricted cash(a):
Other current assets	3		2		—		3		2
Other deferred charges and assets	21		—		21		—		—
Total cash, cash equivalents, and restricted cash(b)	$	2,101	$	1,068	$	213	$	32	$	19

(b)Total may not add due to rounding.

Schedule of Changes in Asset Retirement Obligations

Details of changes in AROs for Southern Company, Alabama Power, Georgia Power, and Mississippi Power during the first nine months of 2021 are shown in the following table. There were no material changes in AROs for the other Registrants during the first nine months of 2021.


	Southern Company		Alabama Power		Georgia Power		Mississippi Power
	(in millions)
Balance at December 31, 2020	$	10,684	$	3,974	$	6,265	$	176
Liabilities incurred	17		—		3		—
Liabilities settled	(341)		(152)		(154)		(18)
Accretion	304		116		176		6
Cash flow revisions	945		385		475		30
Balance at September 30, 2021	$	11,609	$	4,323	$	6,765	$	194