SEGMENT AND RELATED INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

Financial data for business segments and products and services for the years ended December 31, 2023, 2022, and 2021 was as follows:


	Electric Utilities
	Traditional Electric Operating Companies		Southern Power		Eliminations		Total		Southern Company Gas		All Other		Eliminations		Consolidated
	(in millions)
2023
Operating revenues	$	18,358	$	2,189	$	(549)	$	19,998	$	4,702	$	718	$	(165)	$	25,253
Depreciation and amortization	3,361		504		—		3,865		582		78		—		4,525
Interest income	69		7		—		76		9		26		(26)		85
Earnings from equity method investments	(1)		—		—		(1)		140		5		—		144
Interest expense	1,145		129		—		1,274		310		879		(17)		2,446
Income taxes (benefit)	571		12		—		583		211		(298)		—		496
Segment net income (loss)(a)(b)(c)(d)	3,637		357		—		3,994		615		(635)		2		3,976
Goodwill	—		2		—		2		5,015		144		—		5,161

Total assets	100,429		12,761		(545)		112,645		25,083		2,446		(843)		139,331
2022
Operating revenues	$	20,408	$	3,369	$	(904)	$	22,873	$	5,962	$	593	$	(149)	$	29,279
Depreciation and amortization	2,513		516		—		3,029		559		75		—		3,663
Interest income	44		3		—		47		3		16		(7)		59
Earnings from equity method investments	—		—		—		—		148		3		—		151
Interest expense	929		138		—		1,067		263		694		(2)		2,022
Income taxes (benefit)	828		20		—		848		180		(233)		—		795
Segment net income (loss)(a)(b)(e)(f)	3,318		354		—		3,672		572		(711)		(9)		3,524
Goodwill	—		2		—		2		5,015		144		—		5,161

Total assets	95,861		13,081		(659)		108,283		24,621		2,665		(678)		134,891
2021
Operating revenues	$	16,614	$	2,216	$	(530)	$	18,300	$	4,380	$	582	$	(149)	$	23,113
Depreciation and amortization	2,436		517		—		2,953		536		76		—		3,565
Interest income	20		1		—		21		—		4		(3)		22
Earnings from equity method investments	1		—		—		1		50		24		1		76
Interest expense	821		147		—		968		238		631		—		1,837
Income taxes (benefit)	232		(13)		—		219		275		(227)		—		267
Segment net income (loss)(a)(b)(g)(h)(i)	1,981		266		—		2,247		539		(384)		(9)		2,393
Goodwill	—		2		—		2		5,015		263		—		5,280

Total assets	89,051		13,390		(667)		101,774		23,560		2,975		(775)		127,534

(a)Attributable to Southern Company.

(b)For the traditional electric operating companies, includes pre-tax charges (credits) to income at Georgia Power for the estimated probable loss associated with the construction of Plant Vogtle Units 3 and 4 of $(68) million ($(50) million after tax) in 2023, $183 million ($137 million after tax) in 2022, and $1.7 billion ($1.3 billion after tax) in 2021. See Note 2 under "Georgia Power – Nuclear Construction" for additional information.

(c)For Southern Power, includes an $18 million pre-tax loss recovery ($9 million after tax and partnership allocations) related to an arbitration award and a $16 million pre-tax gain ($12 million after tax) on the sale of spare parts. See Note 3 under "General Litigation Matters – Southern Power" for additional information.

(d)For Southern Company Gas, includes pre-tax charges totaling approximately $96 million ($72 million after tax) associated with the disallowance of certain capital investments at Nicor Gas. See Note 2 under "Southern Company Gas" for additional information.

(e)For Southern Company Gas, includes pre-tax impairment charges totaling approximately $131 million ($99 million after tax) related to the sale of natural gas storage facilities. See Note 15 under "Southern Company Gas" for additional information.

(f)For the "All Other" column, includes a $119 million goodwill impairment loss (pre-tax and after tax) at PowerSecure. See Note 1 under "Goodwill and Other Intangible Assets" for additional information.

(g)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 7 and 15 under "Southern Power" for additional information.

(h)For Southern Company Gas, includes a pre-tax gain of $121 million ($92 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, and pre-tax impairment charges totaling $84 million ($67 million after tax) related to its equity method investment in the PennEast Pipeline project. See Notes 7 and 15 under "Southern Company Gas" for additional information.

(i)For the "All Other" column, includes a pre-tax gain of $93 million ($99 million gain after tax) associated with the termination of two leveraged leases projects. See Note 15 under "Southern Company" for additional information.

Financial data for business segments for the years ended December 31, 2023, 2022, and 2021 was as follows:


	Gas Distribution Operations		Gas Pipeline Investments		Wholesale Gas Services(a)		Gas Marketing Services		Total		All Other		Eliminations		Consolidated
	(in millions)
2023
Operating revenues	$	4,105	$	32	$	—	$	548	$	4,685	$	36	$	(19)	$	4,702
Depreciation and amortization	561		5		—		15		581		1		—		582
Operating income (loss)	804		22		—		130		956		(4)		(13)		939
Earnings from equity method investments	—		140		—		—		140		—		—		140
Interest expense	275		32				3		310		—		—		310
Income taxes	126		32		—		37		195		16		—		211
Segment net income (loss)(b)	441		98		—		91		630		(15)		—		615

Total assets	22,906		1,534		—		1,615		26,055		9,675		(10,647)		25,083
2022
Operating revenues	$	5,267	$	32	$	—	$	638	$	5,937	$	55	$	(30)	$	5,962
Depreciation and amortization	516		5		—		16		537		22		—		559
Operating income (loss)	803		21		—		133		957		(135)		(8)		814
Earnings from equity method investments	—		148		—		—		148		—		—		148
Interest expense	229		27		—		3		259		4		—		263
Income taxes (benefit)	145		35		—		37		217		(37)		—		180
Segment net income (loss)(c)	470		107		—		94		671		(99)		—		572

Total assets	22,040		1,577		—		1,616		25,233		8,943		(9,555)		24,621
2021
Operating revenues	$	3,679	$	32	$	188	$	475	$	4,374	$	38	$	(32)	$	4,380
Depreciation and amortization	482		5		—		18		505		31		—		536
Operating income (loss)	708		21		241		125		1,095		(40)		—		1,055
Earnings from equity method investments	—		50		—		—		50		—		—		50
Interest expense	207		25		2		3		237		1		—		238
Income taxes	120		27		32		34		213		62		—		275
Segment net income (loss)(d)(e)(f)	412		19		107		88		626		(87)		—		539

Total assets	20,917		1,467		31		1,556		23,971		12,114		(12,525)		23,560

(a)As a result of the sale of Sequent, wholesale gas services is no longer a reportable segment in 2023 or 2022. Prior to the sale of Sequent, the revenues for wholesale gas services were 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)


2021	$	3,881	$	90	$	3,971	$	3,783	$	188

(b)For gas distribution operations, includes pre-tax charges totaling approximately $96 million ($72 million after tax) associated with the disallowance of certain capital investments at Nicor Gas. See Note 2 under "Southern Company Gas" for additional information.

(c)For the "All Other" column, includes pre-tax impairment charges totaling approximately $131 million ($99 million after tax) related to the sale of natural gas storage facilities. See Note 15 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 Note 7 under "Southern Company Gas" for additional information.

(e)For wholesale gas services, includes a pre-tax gain of $121 million ($92 million after tax) related to the sale of Sequent.

(f)For the "All Other" column, includes $85 million of additional tax expense as a result of the sale of Sequent.

Financial data for products and services

Products and Services


Electric Utilities' Revenues
Year	Retail		Wholesale		Other		Total
	(in millions)
2023	$	16,343	$	2,467	$	1,188	$	19,998
2022	18,197		3,641		1,035		22,873
2021	14,852		2,455		993		18,300


Southern Company Gas' Revenues
Year	Gas Distribution Operations		Gas Marketing Services		All Other		Total
	(in millions)
2023	$	4,090	$	548	$	64	$	4,702
2022	5,240		638		84		5,962
2021	3,656		475		249		4,380

Schedule of reconciliation of operating revenues and intercompany revenues

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)


2021	$	3,881	$	90	$	3,971	$	3,783	$	188