Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Financial Data for Business Segments

Financial data for business segments and products and services for the three and nine months ended September 30, 2021 and 2020 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, 2021
Operating revenues	$	5,018	$	679	$	(170)	$	5,527	$	623	$	124	$	(36)	$	6,238
Segment net income (loss)(a)(b)(c)	1,085		78		—		1,163		56		(121)		3		1,101
Nine Months Ended September 30, 2021
Operating revenues	$	12,813	$	1,610	$	(372)	$	14,051	$	2,994	$	412	$	(111)	$	17,346
Segment net income (loss)(a)(b)(c)(d)(e)(f)	2,352		211		—		2,563		389		(338)		(6)		2,608
At September 30, 2021
Goodwill	$	—	$	2	$	—	$	2	$	5,015	$	263	$	—	$	5,280
Assets held for sale	3		—		—		3		—		48		—		51
Total assets	89,057		13,611		(708)		101,960		22,958		3,704		(761)		127,861
Three Months Ended September 30, 2020
Operating revenues	$	4,629	$	523	$	(103)	$	5,049	$	477	$	132	$	(38)	$	5,620
Segment net income (loss)(a)	1,284		74		—		1,358		14		(122)		1		1,251
Nine Months Ended September 30, 2020
Operating revenues	$	11,576	$	1,337	$	(285)	$	12,628	$	2,362	$	380	$	(112)	$	15,258
Segment net income (loss)(a)(c)(f)(g)	2,571		212		—		2,783		360		(420)		9		2,732
At December 31, 2020
Goodwill	$	—	$	2	$	—	$	2	$	5,015	$	263	$	—	$	5,280
Assets held for sale	5		—		—		5		—		55		—		60
Total assets	85,486		13,235		(680)		98,041		22,630		3,168		(904)		122,935

(a)Attributable to Southern Company.

(b)For Southern Company Gas, includes a preliminary pre-tax gain of $121 million ($93 million after tax) related to its sale of Sequent, as well as the resulting $85 million of additional tax expense due to changes in state apportionment rates. See Note (K) under "Southern Company Gas" for additional information.

(c)For the traditional electric operating companies, includes pre-tax charges at Georgia Power for estimated losses associated with the construction of Plant Vogtle Units 3 and 4 of $264 million ($197 million after tax) and $772 million ($576 million after tax) for the three and nine months ended September 30, 2021, respectively, and $149 million ($111 million after tax) for the nine months ended September 30, 2020. See Note (B) and Note 2 to the financial statements in Item 8 of the Form 10-K under "Georgia Power – Nuclear Construction" for additional information.

(d)For Southern Power, includes gains on wind turbine equipment contributed to various equity method investments totaling approximately $37 million pre-tax ($28 million after tax). See Notes (E) and (K) under "Southern Power" for additional information.

(e)For Southern Company Gas, includes pre-tax impairment charges totaling $84 million ($67 million after tax) related to its equity method investment in the PennEast Pipeline project. See Notes (C) and (E) under "Other Matters – Southern Company Gas" and "Southern Company Gas," respectively, for additional information.

(f)For the "All Other" column, includes pre-tax impairment charges related to leveraged lease investments of $7 million ($6 million after tax) and $154 million ($74 million after tax) for the nine months ended September 30, 2021 and 2020, respectively. See Note 3 to the financial statements in Item 8 of the Form 10-K under "Other Matters – Southern Company" for additional information.

(g)For Southern Power, includes a $39 million pre-tax gain ($23 million gain after tax) on the sale of Plant Mankato. See Note 15 to the financial statements in Item 8 of the Form 10-K under "Southern Power" for additional information.

Business segment financial data for the three and nine months ended September 30, 2021 and 2020 was as follows:


	Gas Distribution Operations		Gas Pipeline Investments		Wholesale Gas Services(a)		Gas Marketing Services		Total		All Other		Eliminations		Consolidated
	(in millions)
Three Months Ended September 30, 2021
Operating revenues	$	556	$	8	$	—	$	52	$	616	$	11	$	(4)	$	623
Segment net income (loss)(b)(c)	45		10		94		(2)		147		(91)		—		56
Nine Months Ended September 30, 2021
Operating revenues	$	2,466	$	24	$	188	$	311	$	2,989	$	29	$	(24)	$	2,994
Segment net income (loss)(b)(c)(d)	308		3		108		60		479		(90)		—		389
Total assets at September 30, 2021	20,619		1,478		132		1,534		23,763		11,387		(12,192)		22,958
Three Months Ended September 30, 2020
Operating revenues	$	479	$	8	$	(51)	$	39	$	475	$	8	$	(6)	$	477
Segment net income (loss)	46		23		(45)		(3)		21		(7)		—		14
Nine Months Ended September 30, 2020
Operating revenues	$	2,086	$	24	$	(19)	$	272	$	2,363	$	24	$	(25)	$	2,362
Segment net income (loss)	284		74		(45)		59		372		(12)		—		360
Total assets at December 31, 2020	19,090		1,597		850		1,503		23,040		11,336		(11,746)		22,630

(a)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, 2021	$	—	$	—	$	—	$	—	$	—
Three Months Ended September 30, 2020	1,050		33		1,083		1,134		(51)
Nine Months Ended September 30, 2021	$	3,881	$	90	$	3,971	$	3,783	$	188
Nine Months Ended September 30, 2020	3,089		81		3,170		3,189		(19)

(b)For wholesale gas services, includes a preliminary pre-tax gain of $121 million ($93 million after tax) related to the sale of Sequent. See Note (K) under "Southern Company Gas" for additional information.

(c)For the "All Other" column, includes $85 million of additional tax expense due to changes in state apportionment rates as a result of the sale of Sequent. See Note (K) under "Southern Company Gas" for additional information.

(d)For gas pipeline investments, includes pre-tax impairment charges totaling $84 million ($67 million after tax) related to the equity method investment in the PennEast Pipeline project. See Notes (C) and (E) under "Other Matters – Southern Company Gas" and "Southern Company Gas," respectively, for additional information.

Schedule of Financial Data for Products and Services


	Electric Utilities' Revenues
	Retail		Wholesale		Other		Total
	(in millions)
Three Months Ended September 30, 2021	$	4,551	$	731	$	245	$	5,527
Three Months Ended September 30, 2020	4,243		584		222		5,049
Nine Months Ended September 30, 2021	$	11,492	$	1,822	$	737	$	14,051
Nine Months Ended September 30, 2020	10,503		1,473		652		12,628


	Southern Company Gas' Revenues
	Gas Distribution Operations		Wholesale Gas Services(*)		Gas Marketing Services		Other		Total
	(in millions)
Three Months Ended September 30, 2021	$	553	$	—	$	52	$	18	$	623
Three Months Ended September 30, 2020	476		(51)		39		13		477
Nine Months Ended September 30, 2021	$	2,451	$	188	$	311	$	44	$	2,994
Nine Months Ended September 30, 2020	2,072		(19)		272		37		2,362

(*)The revenues for wholesale gas services are netted with costs associated with its energy and risk management activities. See "Southern Company Gas" herein for additional information. Also see Note (K) under "Southern Company Gas" regarding the July 1, 2021 sale of Sequent.