Discontinued Operations

12 Months Ended

Dec. 31, 2016

Southern Company Gas [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

In 2014, the Company sold Tropical Shipping, which was previously reported as its own segment, to an unrelated third party. The after-tax cash proceeds and distributions from the transaction were approximately $225 million. The Company determined that the cumulative foreign earnings of Tropical Shipping would no longer be indefinitely reinvested offshore. Accordingly, the Company recognized income tax expense of $60 million, of which $31 million was recorded in the first quarter 2014, and the remaining $29 million was recorded in the third quarter 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded, resulting in the repatriation of $86 million in cash.

During 2014, based upon the negotiated sales price, the Company recorded a non-cash goodwill impairment charge of $19 million, for which there was no income tax benefit. Additionally, the Company recognized a total charge of $7 million in 2014 related to the suspension of depreciation and amortization on assets for which the Company was not compensated by the buyer.

The components of discontinued operations recorded on the statements of income for the predecessor year ended December 31, 2014 are as follows:

	Year Ended December 31, 2014
	(in millions)
Operating revenues	$	243
Operating expenses
Cost of goods sold	149
Operation and maintenance	75
Depreciation and amortization	5
Taxes other than income taxes	5
Loss on sale and goodwill impairment(*)	28
Total operating expenses	262
Operating (loss) income	(19		)
(Loss) income before income taxes	(19		)
Income tax expense	(61		)
(Loss) income from discontinued operations, net of tax	$	(80	)

(*) Primarily reflects $7 million due to the suspension of depreciation and amortization during 2014 and $19 million of goodwill attributable to Tropical Shipping that was impaired in 2014, based on the negotiated sales price.