| Financial data for business segments |
Financial data for business segments and products and services for the years ended December 31, 2018, 2017, and 2016 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Electric Utilities | | | | | | Traditional Electric Operating Companies | Southern Power | Eliminations | Total | Southern Company Gas | All Other | Eliminations | Consolidated | | (in millions) | 2018 | | | | | | | | | Operating revenues | $ | 16,843 |
| $ | 2,205 |
| $ | (477 | ) | $ | 18,571 |
| $ | 3,909 |
| $ | 1,213 |
| $ | (198 | ) | $ | 23,495 |
| Depreciation and amortization | 2,072 |
| 493 |
| — |
| 2,565 |
| 500 |
| 66 |
| — |
| 3,131 |
| Interest income | 23 |
| 8 |
| — |
| 31 |
| 4 |
| 8 |
| (5 | ) | 38 |
| Earnings from equity method investments | (1 | ) | — |
| — |
| (1 | ) | 148 |
| 2 |
| (1 | ) | 148 |
| Interest expense | 852 |
| 183 |
| — |
| 1,035 |
| 228 |
| 580 |
| (1 | ) | 1,842 |
| Income taxes (benefit) | 371 |
| (164 | ) | — |
| 207 |
| 464 |
| (222 | ) | — |
| 449 |
| Segment net income (loss)(a)(b)(c)(d) | 2,117 |
| 187 |
| — |
| 2,304 |
| 372 |
| (453 | ) | 3 |
| 2,226 |
| Goodwill | — |
| 2 |
|
|
| 2 |
| 5,015 |
| 298 |
| — |
| 5,315 |
| Total assets | 79,382 |
| 14,883 |
| (306 | ) | 93,959 |
| 21,448 |
| 3,285 |
| (1,778 | ) | 116,914 |
| Gross property additions | 6,077 |
| 315 |
| — |
| 6,392 |
| 1,399 |
| 414 |
| — |
| 8,205 |
| 2017 | | | | | | | | | Operating revenues | $ | 16,884 |
| $ | 2,075 |
| $ | (419 | ) | $ | 18,540 |
| $ | 3,920 |
| $ | 741 |
| $ | (170 | ) | $ | 23,031 |
| Depreciation and amortization | 1,954 |
| 503 |
| — |
| 2,457 |
| 501 |
| 52 |
| — |
| 3,010 |
| Interest income | 14 |
| 7 |
| — |
| 21 |
| 3 |
| 11 |
| (9 | ) | 26 |
| Earnings from equity method investments | 1 |
| — |
| — |
| 1 |
| 106 |
| (1 | ) | — |
| 106 |
| Interest expense | 820 |
| 191 |
| — |
| 1,011 |
| 200 |
| 490 |
| (7 | ) | 1,694 |
| Income taxes (benefit) | 1,021 |
| (939 | ) | — |
| 82 |
| 367 |
| (307 | ) | — |
| 142 |
| Segment net income (loss)(a)(b)(e)(f) | (193 | ) | 1,071 |
| — |
| 878 |
| 243 |
| (279 | ) | — |
| 842 |
| Goodwill | — |
| 2 |
| — |
| 2 |
| 5,967 |
| 299 |
| — |
| 6,268 |
| Total assets | 72,204 |
| 15,206 |
| (325 | ) | 87,085 |
| 22,987 |
| 2,552 |
| (1,619 | ) | 111,005 |
| Gross property additions | 3,836 |
| 268 |
| — |
| 4,104 |
| 1,525 |
| 355 |
| — |
| 5,984 |
| 2016 | | | | | | | | | Operating revenues | $ | 16,803 |
| $ | 1,577 |
| $ | (439 | ) | $ | 17,941 |
| $ | 1,652 |
| $ | 463 |
| $ | (160 | ) | $ | 19,896 |
| Depreciation and amortization | 1,881 |
| 352 |
| — |
| 2,233 |
| 238 |
| 31 |
| — |
| 2,502 |
| Interest income | 6 |
| 7 |
| — |
| 13 |
| 2 |
| 20 |
| (15 | ) | 20 |
| Earnings from equity method investments | 2 |
| — |
| — |
| 2 |
| 60 |
| (3 | ) | — |
| 59 |
| Interest expense | 814 |
| 117 |
| — |
| 931 |
| 81 |
| 317 |
| (12 | ) | 1,317 |
| Income taxes (benefit) | 1,286 |
| (195 | ) | — |
| 1,091 |
| 76 |
| (216 | ) | — |
| 951 |
| Segment net income (loss)(a)(b) | 2,233 |
| 338 |
| — |
| 2,571 |
| 114 |
| (230 | ) | (7 | ) | 2,448 |
| Goodwill | — |
| 2 |
| — |
| 2 |
| 5,967 |
| 282 |
| — |
| 6,251 |
| Total assets | 72,141 |
| 15,169 |
| (316 | ) | 86,994 |
| 21,853 |
| 2,474 |
| (1,624 | ) | 109,697 |
| Gross property additions | 4,852 |
| 2,114 |
| — |
| 6,966 |
| 618 |
| 41 |
| (1 | ) | 7,624 |
|
| | (a) | Attributable to Southern Company. |
| | (b) | Segment net income (loss) for the traditional electric operating companies includes pre-tax charges for estimated losses on plants under construction of $1.1 billion ($722 million after tax) in 2018, $3.4 billion ($2.4 billion after tax) in 2017, and $428 million ($264 million after tax) in 2016. See Note 2 under "Georgia Power – Nuclear Construction" and "Mississippi Power – Kemper County Energy Facility – Schedule and Cost Estimate" for additional information. |
| | (c) | Segment net income (loss) for Southern Power includes pre-tax impairment charges of $156 million ($117 million after tax) in 2018. See Note 15 under "Southern Power – Development Projects" and " – Sales of Natural Gas Plants" for additional information. |
| | (d) | Segment net income (loss) for Southern Company Gas includes a net gain on dispositions of $291 million ($51 million loss after tax) in 2018 related to the Southern Company Gas Dispositions and a goodwill impairment charge of $42 million in 2018 related to the sale of Pivotal Home Solutions. See Note 15 under "Southern Company Gas" for additional information. |
| | (e) | Segment net income (loss) for the traditional electric operating companies includes a pre-tax charge for the write-down of Gulf Power's ownership of Plant Scherer Unit 3 of $33 million ($20 million after tax) in 2017. See Note 2 under "Southern Company – Gulf Power" for additional information. |
| | (f) | Segment net income (loss) includes income tax expense of $367 million for the traditional electric operating companies, income tax benefit of $743 million for Southern Power, and income tax expense of $93 million for Southern Company Gas in 2017 related to the Tax Reform Legislation. |
Financial data for business segments for the successor years ended December 31, 2018 and 2017, the successor period of July 1, 2016 through December 31, 2016, and the predecessor period of January 1, 2016 through June 30, 2016 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gas Distribution Operations(a)(b) | | Gas Pipeline Investments | | Wholesale Gas Services(c) | | Gas Marketing Services(b)(d) | | Total | | All Other | | Eliminations | | Consolidated | | (in millions) | Successor – Year ended December 31, 2018 | | | | | | | | | | | Operating revenues | $ | 3,186 |
| | $ | 32 |
| | $ | 144 |
| | $ | 568 |
| | $ | 3,930 |
| | $ | 55 |
| | $ | (76 | ) | | $ | 3,909 |
| Depreciation and
amortization | 409 |
| | 5 |
| | 2 |
| | 37 |
| | 453 |
| | 47 |
| | — |
| | 500 |
| Operating income (loss) | 904 |
| | 20 |
| | 70 |
| | 19 |
| | 1,013 |
| | (98 | ) | | — |
| | 915 |
| Earnings from equity method investments | — |
| | 145 |
| | — |
| | — |
| | 145 |
| | 3 |
| | — |
| | 148 |
| Interest expense | (178 | ) | | (34 | ) | | (9 | ) | | (6 | ) | | (227 | ) | | (1 | ) | | — |
| | (228 | ) | Income taxes (benefit) | 409 |
| | 28 |
| | 4 |
| | 54 |
| | 495 |
| | (31 | ) | | — |
| | 464 |
| Segment net income (loss) | 334 |
| | 103 |
| | 38 |
| | (40 | ) | | 435 |
| | (63 | ) | | — |
| | 372 |
| Gross property
additions | 1,429 |
| | 32 |
| | — |
| | 6 |
| | 1,467 |
| | 54 |
| | — |
| | 1,521 |
| Successor – Total assets
at December 31, 2018 | 17,266 |
| | 1,763 |
| | 1,302 |
| | 1,587 |
| | 21,918 |
| | 11,112 |
| | (11,582 | ) | | 21,448 |
| Successor – Year ended December 31, 2017 | | | | | | | | | | | Operating revenues | $ | 3,207 |
| | $ | 17 |
| | $ | 6 |
| | $ | 860 |
| | $ | 4,090 |
| | $ | 64 |
| | $ | (234 | ) | | $ | 3,920 |
| Depreciation and
amortization | 391 |
| | 2 |
| | 2 |
| | 62 |
| | 457 |
| | 44 |
| | — |
| | 501 |
| Operating income (loss) | 645 |
| | 10 |
| | (51 | ) | | 113 |
| | 717 |
| | (57 | ) | | — |
| | 660 |
| Earnings from equity method
investments | — |
| | 103 |
| | — |
| | — |
| | 103 |
| | 3 |
| | — |
| | 106 |
| Interest expense | (153 | ) | | (26 | ) | | (7 | ) | | (5 | ) | | (191 | ) | | (9 | ) | | — |
| | (200 | ) | Income taxes(e) | 178 |
| | 109 |
| | — |
| | 24 |
| | 311 |
| | 56 |
| | — |
| | 367 |
| Segment net income (loss)(e) | 353 |
| | (22 | ) | | (57 | ) | | 84 |
| | 358 |
| | (115 | ) | | — |
| | 243 |
| Gross property additions | 1,330 |
| | 117 |
| | 1 |
| | 9 |
| | 1,457 |
| | 51 |
| | — |
| | 1,508 |
| Successor – Total assets
at December 31, 2017 | 19,358 |
| | 1,699 |
| | 1,096 |
| | 2,147 |
| | 24,300 |
| | 12,726 |
| | (14,039 | ) | | 22,987 |
| Successor – July 1, 2016 through December 31, 2016 | | | | | | | | | | | Operating revenues | $ | 1,342 |
| | $ | 3 |
| | $ | 24 |
| | $ | 354 |
| | $ | 1,723 |
| | $ | 31 |
| | $ | (102 | ) | | $ | 1,652 |
| Depreciation and
amortization | 185 |
| | — |
| | 1 |
| | 35 |
| | 221 |
| | 17 |
| | — |
| | 238 |
| Operating income (loss) | 225 |
| | 1 |
| | (2 | ) | | 27 |
| | 251 |
| | (52 | ) | | — |
| | 199 |
| Earnings from equity method
investments | — |
| | 58 |
| | — |
| | — |
| | 58 |
| | 2 |
| | — |
| | 60 |
| Interest expense | (105 | ) | | (10 | ) | | (3 | ) | | (1 | ) | | (119 | ) | | 38 |
| | — |
| | (81 | ) | Income taxes (benefit) | 51 |
| | 21 |
| | (3 | ) | | 7 |
| | 76 |
| | — |
| | — |
| | 76 |
| Segment net income (loss) | 77 |
| | 29 |
| | — |
| | 19 |
| | 125 |
| | (11 | ) | | — |
| | 114 |
| Gross property additions | 561 |
| | 51 |
| | 1 |
| | 5 |
| | 618 |
| | 14 |
| | — |
| | 632 |
| Successor – Total assets
at December 31, 2016 | 19,453 |
| | 1,659 |
| | 1,127 |
| | 2,084 |
| | 24,323 |
| | 11,697 |
| | (14,167 | ) | | 21,853 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gas Distribution Operations(a)(b) | | Gas Pipeline Investments | | Wholesale Gas Services(c) | | Gas Marketing Services(b)(d) | | Total | | All Other | | Eliminations | | Consolidated | | (in millions) | Predecessor – January 1, 2016 through June 30, 2016 | | | |
| | | | | |
| Operating revenues | $ | 1,575 |
| | $ | 3 |
| | $ | (32 | ) | | $ | 435 |
| | $ | 1,981 |
| | $ | 26 |
| | $ | (102 | ) | | $ | 1,905 |
| Depreciation and
amortization | 178 |
| | — |
| | 1 |
| | 11 |
| | 190 |
| | 16 |
| | — |
| | 206 |
| Operating income (loss) | 353 |
| | 3 |
| | (69 | ) | | 109 |
| | 396 |
| | (73 | ) | | — |
| | 323 |
| EBIT | 353 |
| | 3 |
| | (68 | ) | | 109 |
| | 397 |
| | (69 | ) | | — |
| | 328 |
| Gross property additions | 484 |
| | 40 |
| | 1 |
| | 4 |
| | 529 |
| | 19 |
| | — |
| | 548 |
|
| | (a) | Operating revenues for the three gas distribution operations dispositions were $244 million, $399 million, and $168 million for the successor years ended December 31, 2018 and 2017 and the successor period of July 1, 2016 through December 31, 2016, respectively, and $215 million for the predecessor period ended June 30, 2016. See Note 15 under "Southern Company Gas" for additional information. |
| | (b) | Segment net income for gas distribution operations includes a gain on dispositions of $324 million ($16 million after tax) for the year ended December 31, 2018. Segment net income for gas marketing services includes a loss on disposition of $(33) million ($(67) million loss after tax) and a goodwill impairment charge of $42 million for the year ended December 31, 2018 recorded in contemplation of the sale of Pivotal Home Solutions. See Note 15 under "Southern Company Gas" for additional information. |
(c)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) | Successor – Year Ended
December 31, 2018 | $ | 6,955 |
| | $ | 451 |
| | $ | 7,406 |
| | $ | 7,262 |
| | $ | 144 |
| Successor – Year Ended
December 31, 2017 | 6,152 |
| | 481 |
| | 6,633 |
| | 6,627 |
| | 6 |
| Successor – July 1, 2016 through
December 31, 2016 | 5,807 |
| | 333 |
| | 6,140 |
| | 6,116 |
| | 24 |
| Predecessor – January 1, 2016 through
June 30, 2016 | 2,500 |
| | 143 |
| | 2,643 |
| | 2,675 |
| | (32 | ) |
| | (d) | Operating revenues for the gas marketing services disposition were $55 million, $129 million, and $56 million for the successor years ended December 31, 2018 and 2017 and the successor period of July 1, 2016 through December 31, 2016, respectively, and $64 million for the predecessor period ended June 30, 2016 See Note 15 under "Southern Company Gas" for additional information. |
| | (e) | Includes the impact of the Tax Reform Legislation and new income tax apportionment factors in several states resulting from Southern Company Gas' inclusion in the consolidated Southern Company state tax filings. |
|