CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | ||||
In Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating Revenues: | ||||
Retail revenues | $3,293,012 | $3,449,878 | $6,357,671 | $6,455,492 |
Wholesale revenues | 437,750 | 591,802 | 889,164 | 1,105,464 |
Other electric revenues | 128,403 | 141,162 | 251,201 | 271,352 |
Other revenues | 25,999 | 32,345 | 53,435 | 65,789 |
Total operating revenues | 3,885,164 | 4,215,187 | 7,551,471 | 7,898,097 |
Operating Expenses: | ||||
Fuel | 1,449,138 | 1,622,074 | 2,855,405 | 3,074,017 |
Purchased power | 133,188 | 197,260 | 240,832 | 290,164 |
Other operations and maintenance | 831,214 | 914,998 | 1,702,295 | 1,811,815 |
MC Asset Recovery litigation settlement | 0 | 0 | 202,000 | 0 |
Depreciation and amortization | 377,341 | 358,745 | 767,099 | 702,630 |
Taxes other than income taxes | 208,089 | 198,042 | 407,969 | 387,314 |
Total operating expenses | 2,998,970 | 3,291,119 | 6,175,600 | 6,265,940 |
Operating Income | 886,194 | 924,068 | 1,375,871 | 1,632,157 |
Other Income and (Expense): | ||||
Allowance for equity funds used during construction | 47,500 | 35,486 | 90,112 | 76,071 |
Interest income | 4,870 | 1,188 | 11,778 | 10,993 |
Equity in income (losses) of unconsolidated subsidiaries | 680 | 1,097 | (296) | 1,425 |
Leveraged lease income (losses) | 8,676 | (70,879) | 18,117 | (59,954) |
Gain on disposition of lease termination | 26,300 | 0 | 26,300 | 0 |
Loss on extinguishment of debt | (17,184) | 0 | (17,184) | 0 |
Interest expense, net of amounts capitalized | (232,830) | (228,948) | (458,557) | (446,057) |
Other income (expense), net | (3,681) | (4,483) | (16,531) | (3,569) |
Total other income and (expense) | (165,669) | (266,539) | (346,261) | (421,091) |
Earnings Before Income Taxes | 720,525 | 657,529 | 1,029,610 | 1,211,066 |
Income taxes | 225,717 | 224,952 | 392,886 | 403,090 |
Consolidated net income | 494,808 | 432,577 | 636,724 | 807,976 |
Dividends on Preferred and Preference Stock of Subsidiaries | 16,195 | 16,195 | 32,390 | 32,390 |
Consolidated Net Income After Dividends on Preferred and Preference Stock of Subsidiaries | $478,613 | $416,382 | $604,334 | $775,586 |
Earnings per share (EPS) - | ||||
Basic EPS | 0.61 | 0.54 | 0.77 | 1.01 |
Diluted EPS | 0.6 | 0.54 | 0.77 | 1 |
Average number of shares of common stock outstanding (in thousands) | ||||
Basic | 790,748 | 769,122 | 785,303 | 767,636 |
Diluted | 792,068 | 773,140 | 786,865 | 771,727 |
Cash dividends paid per share of common stock | 0.4375 | 0.42 | 0.8575 | 0.8225 |
1_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating Activities: | ||
Consolidated net income | $636,724 | $807,976 |
Adjustments to reconcile consolidated net income to net cash provided from operating activities -- | ||
Depreciation and amortization, total | 895,354 | 831,790 |
Deferred income taxes and investment tax credits | (13,807) | (79,033) |
Deferred revenues | (26,295) | 57,768 |
Allowance for equity funds used during construction | (90,112) | (76,071) |
Equity in income (losses) of unconsolidated subsidiaries | 296 | (1,425) |
Leveraged lease income (losses) | (18,117) | 59,954 |
Gain on disposition of lease termination | (26,300) | 0 |
Loss on extinguishment of debt | 17,184 | 0 |
Pension, postretirement, and other employee benefits | (10,939) | 24,596 |
Stock option expense | 18,956 | 15,734 |
Hedge settlements | (16,167) | 17,289 |
Other, net | 27,948 | (3,969) |
Changes in certain current assets and liabilities -- | ||
-Receivables | 74,770 | (317,403) |
-Fossil fuel stock | (375,888) | (121,823) |
-Materials and supplies | (20,079) | (28,609) |
-Other current assets | (96,394) | (54,536) |
-Accounts payable | 14,711 | 161,703 |
-Accrued taxes | (140,308) | 181,105 |
-Accrued compensation | (298,670) | (185,500) |
-Other current liabilities | 66,748 | 121,337 |
Net cash provided from operating activities | 619,615 | 1,410,883 |
Investing Activities: | ||
Property additions | (2,192,959) | (1,983,177) |
Investment in restricted cash from pollution control revenue bonds | (49,478) | (161) |
Distribution of restricted cash from pollution control revenue bonds | 59,741 | 32,908 |
Nuclear decommissioning trust fund purchases | (823,416) | (405,999) |
Nuclear decommissioning trust fund sales | 788,690 | 399,119 |
Proceeds from property sales | 339,903 | 5,495 |
Cost of removal, net of salvage | (63,705) | (40,757) |
Change in construction payables | 128,101 | 3,174 |
Other investing activities | 8,063 | (34,547) |
Net cash used for investing activities | (1,805,060) | (2,023,945) |
Financing Activities: | ||
Increase (decrease) in notes payable, net | 148,090 | (151,513) |
Proceeds -- | ||
Long-term debt issuances | 1,785,474 | 1,684,935 |
Common stock issuances | 539,088 | 235,454 |
Redemptions -- | ||
Long-term debt | (199,929) | (361,263) |
Redeemable preferred stock | 0 | (125,000) |
Payment of common stock dividends | (670,226) | (630,594) |
Payments of dividends on preferred and preference stock of subsidiaries | (32,465) | (33,273) |
Other financing activities | (19,327) | (12,267) |
Net cash provided from financing activities | 1,550,705 | 606,479 |
Net Change in Cash and Cash Equivalents | 365,260 | (6,583) |
Cash and Cash Equivalents at Beginning of Period | 416,581 | 200,550 |
Cash and Cash Equivalents at End of Period | 781,841 | 193,967 |
Cash paid during the period for -- | ||
Interest (net of $38,594 and $39,434 capitalized for 2009 and 2008, respectively) | 386,729 | 389,466 |
Income taxes (net of refunds) | $468,278 | $280,902 |
2_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Parenthetical Cash Flow Information | ||
Cash Paid for Capitalized Interest | $38,594 | $39,434 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | ||
In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
Current Assets: | ||
Cash and cash equivalents | $781,841 | $416,581 |
Restricted cash and cash equivalents | 96,540 | 102,537 |
Receivables -- | ||
Customer accounts receivable | 1,149,309 | 1,053,674 |
Unbilled revenues | 453,022 | 320,439 |
Under recovered regulatory clause revenues | 547,927 | 646,318 |
Other accounts and notes receivable | 335,712 | 301,028 |
Accumulated provision for uncollectible accounts | (27,273) | (26,326) |
Fossil fuel stock, at average cost | 1,387,738 | 1,018,314 |
Materials and supplies, at average cost | 773,721 | 756,746 |
Vacation pay | 134,958 | 140,283 |
Prepaid expenses | 364,463 | 301,570 |
Other regulatory assets, current | 322,790 | 275,424 |
Other current assets | 68,622 | 51,044 |
Total current assets | 6,389,370 | 5,357,632 |
Property, Plant, and Equipment: | ||
In service | 51,880,917 | 50,618,219 |
Less accumulated depreciation | 18,739,799 | 18,285,800 |
Plant in service, net of depreciation | 33,141,118 | 32,332,419 |
Nuclear fuel, at amortized cost | 546,217 | 510,274 |
Construction work in progress | 3,810,611 | 3,035,795 |
Total property, plant, and equipment | 37,497,946 | 35,878,488 |
Other Property and Investments: | ||
Nuclear decommissioning trusts, at fair value | 940,499 | 864,396 |
Leveraged leases | 599,569 | 897,338 |
Miscellaneous property and investments | 227,196 | 226,757 |
Total other property and investments | 1,767,264 | 1,988,491 |
Deferred Charges and Other Assets | ||
Deferred charges related to income taxes | 1,010,624 | 972,781 |
Unamortized debt issuance expense | 215,437 | 207,763 |
Unamortized loss on reacquired debt | 260,614 | 270,919 |
Deferred under recovered regulatory clause revenues | 364,728 | 606,483 |
Other regulatory assets, deferred | 2,553,505 | 2,636,217 |
Other deferred charges and assets | 357,561 | 428,432 |
Total deferred charges and other assets | 4,762,469 | 5,122,595 |
Total Assets | 50,417,049 | 48,347,206 |
Current Liabilities: | ||
Securities due within one year | 1,095,586 | 616,415 |
Notes payable | 1,093,217 | 953,437 |
Accounts payable | 1,419,534 | 1,249,694 |
Customer deposits | 319,842 | 302,495 |
Accrued taxes -- | ||
Accrued income taxes | 95,345 | 195,922 |
Unrecognized tax benefits | 150,344 | 131,641 |
Other accrued taxes | 301,852 | 396,206 |
Accrued interest | 222,382 | 195,500 |
Accrued vacation pay | 168,273 | 178,519 |
Accrued compensation | 162,969 | 446,718 |
Liabilities from risk management activities | 267,977 | 260,977 |
Other current liabilities | 365,441 | 298,711 |
Total current liabilities | 5,662,762 | 5,226,235 |
Long-term Debt | 17,921,409 | 16,816,438 |
Deferred Credits and Other Liabilities: | ||
Accumulated deferred income taxes | 6,151,050 | 6,080,104 |
Deferred credits related to income taxes | 261,840 | 259,156 |
Accumulated deferred investment tax credits | 443,128 | 455,398 |
Employee benefit obligations | 2,029,596 | 2,057,424 |
Asset retirement obligations | 1,217,956 | 1,182,769 |
Other cost of removal obligations | 1,327,726 | 1,320,558 |
Other regulatory liabilities, deferred | 217,020 | 261,970 |
Other deferred credits and liabilities | 319,029 | 329,534 |
Total deferred credits and other liabilities | 11,967,345 | 11,946,913 |
Total Liabilities | 35,551,516 | 33,989,586 |
Redeemable Preferred Stock of Subsidiaries | 374,496 | 374,496 |
Common Stockholders' Equity: | ||
Par value | 3,982,521 | 3,888,041 |
Paid-in capital | 2,356,636 | 1,892,802 |
Treasury, at cost | (13,299) | (12,279) |
Retained earnings | 7,546,424 | 7,611,977 |
Accumulated other comprehensive loss | (88,612) | (104,784) |
Total Common Stockholders' Equity | 13,783,670 | 13,275,757 |
Preferred and Preference Stock of Subsidiaries | 707,367 | 707,367 |
Total Stockholders' Equity | 14,491,037 | 13,983,124 |
Total Liabilities and Stockholders' Equity | $50,417,049 | $48,347,206 |
3_CONDENSED CONSOLIDATED BALANC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | ||
Jun. 30, 2009
| Dec. 31, 2008
| |
Common Stockholders' Equity: | ||
Common stock, par value per share -- | 5 | 5 |
Shares authorized | 1,000,000,000 | 1,000,000,000 |
Shares issued | 796,509,669 | 777,615,751 |
Treasury shares | 458,026 | 423,477 |
4_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | ||||
In Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Consolidated net income | $494,808 | $432,577 | $636,724 | $807,976 |
Qualifying hedges: | ||||
Changes in fair value, net of tax of $(1,744), $2,571, $(982), and $(11,417), respectively | (2,811) | 4,338 | (1,664) | (17,913) |
Reclassification adjustment for amounts included in net income, net of tax of $4,630, $2,371, $8,463, and $4,149, respectively | 7,370 | 3,733 | 13,468 | 6,508 |
Marketable securities: | ||||
Change in fair value, net of tax $1,204, $(319), $1,295, and $(2,456), respectively | 2,935 | (925) | 3,669 | (4,026) |
Pension and other post retirement benefit plans: | ||||
Reclassification adjustment for amounts included in net income, net of tax of $221, $277, $443, and $536, respectively | 349 | 471 | 699 | 882 |
Total other comprehensive income (loss) | 7,843 | 7,617 | 16,172 | (14,549) |
Dividends on preferred and preference stock of subsidiaries | (16,195) | (16,195) | (32,390) | (32,390) |
Comprehensive Income | $486,456 | $423,999 | $620,506 | $761,037 |
5_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $) | ||||
In Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Qualifying hedges, tax: | ||||
Changes in fair value of qualifying hedges, tax | ($1,744) | $2,571 | ($982) | ($11,417) |
Reclassification adjustment for amounts of qualifying hedges included in net income, tax | 4,630 | 2,371 | 8,463 | 4,149 |
Marketable securities, tax: | ||||
Change in fair value of marketable securities, tax | 1,204 | (319) | 1,295 | (2,456) |
Pension and other post retirement benefit plans, tax: | ||||
Reclassification adjustment for amounts of pension and other post retirement benefit plans included in net income, tax | $221 | $277 | $443 | $536 |
Sheet1
(A) INTRODUCTION | |
6 Months Ended
Jun. 30, 2009 | |
(A) INTRODUCTION | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (A) INTRODUCTION The condensed quarterly financial statements of each registrant included herein have been prepared by such registrant, without audit, pursuant to the rules and regulations of the SEC. The Condensed Balance Sheets as of December 31, 2008 have been derived from the audited financial statements of each registrant. In the opinion of each registrants management, the information regarding such registrant furnished herein reflects all adjustments, which, except as otherwise disclosed, are of a normal recurring nature, necessary to present fairly the results of operations for the periods ended June 30, 2009 and 2008. In addition, all subsequent events have been evaluated for disclosure through the issuance of the financial statements on August 6, 2009. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although each registrant believes that the disclosures regarding such registrant are adequate to make the information presented not misleading. Disclosures which would substantially duplicate the disclosures in the audited financial statements included in the Form 10-K and, with respect to Southern Company, the subsequently revised audited financial statements included in the Current Report on Form 8-K filed May 8, 2009 (the Form 8-K), and details which have not changed significantly in amount or composition since the filing of the Form 10-K and, for Southern Company, the Form 8-K are generally omitted from this Quarterly Report on Form 10-Q. Therefore, these Condensed Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K and, for Southern Company, the Form 8-K. Due to the seasonal variations in the demand for energy, operating results for the periods presented do not necessarily indicate operating results for the entire year. Reclassifications Certain prior period data presented in the financial statements have been reclassified to conform to the current year presentation. For comparative purposes, each registrants statement of income for the three and six months ended June 30, 2008 were modified within the operating expenses section to combine the line items Other operations and Maintenance into a single line item entitled Other operations and maintenance. The balance sheets at December 31, 2008 of Southern Company, Alabama Power, and Georgia Power were modified to present a separate line item for Other regulatory assets, current previously included in Other current assets. In addition, Georgia Powers balance sheet was modified to present a separate line item for Joint owner accounts receivable previously included in Other accounts and notes receivable and to reflect a new line item Liabilities from risk management activities previously included in Other current liabilities. To conform to the current year presentation, Southern Powers balance sheet at December 31, 2008 reflects a separate line item for the amount of Deferred capacity re |
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(B) CONTINGENCIES AND REGULATORY MATTERS | |
6 Months Ended
Jun. 30, 2009 | |
(B) CONTINGENCIES AND REGULATORY MATTERS | |
Commitments and Contingencies Disclosure [Text Block] | (B) CONTINGENCIES AND REGULATORY MATTERS See Note 3 to the financial statements of the registrants in Item 8 of the Form 10-K for information relating to various lawsuits, other contingencies, and regulatory matters. General Litigation Matters Each registrant is subject to certain claims and legal actions arising in the ordinary course of business. In addition, each registrants business activities are subject to extensive governmental regulation related to public health and the environment. Litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental requirements such as opacity and air and water quality standards, has increased generally throughout the United States. In particular, personal injury claims for damages caused by alleged exposure to hazardous materials have become more frequent. The ultimate outcome of such pending or potential litigation against the registrants and any of their subsidiaries cannot be predicted at this time; however, for current proceedings not specifically reported herein or in Note 3 to the financial statements of each registrant in Item 8 of the Form 10-K, management does not anticipate that the liabilities, if any, arising from such current proceedings would have a material adverse effect on such registrants financial statements. Mirant Matters Mirant was an energy company with businesses that included independent power projects and energy trading and risk management companies in the United States and selected other countries. It was a wholly-owned subsidiary of Southern Company until its initial public offering in October 2000. In April 2001, Southern Company completed a spin-off to its shareholders of its remaining ownership, and Mirant became an independent corporate entity. Mirant Bankruptcy In July 2003, Mirant and certain of its affiliates filed voluntary petitions for relief under Chapter11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. The Bankruptcy Court entered an order confirming Mirants plan of reorganization in December2005, and Mirant announced that this plan became effective in January 2006. As part of the plan, Mirant transferred substantially all of its assets and its restructured debt to a new corporation that adopted the name Mirant Corporation (Reorganized Mirant). Southern Company has certain contingent liabilities associated with guarantees of contractual commitments made by Mirants subsidiaries discussed under Guarantees in Note 7 to the financial statements of Southern Company in Item 8 of the Form 10-K and with various lawsuits related to Mirant discussed below. Also, Southern Company has joint and several liability with Mirant regarding the joint consolidated federal income tax returns through 2001, as discussed in Note5 to the financial statements of Southern Company in Item 8 of the Form 10-K. In December 2004, as a result of concluding an IRS audit for the tax years 2000 and 2001, Southern Company paid approximately $39 million in additional tax and interest related to Mirant tax items |
7_
(C) FAIR VALUE MEASUREMENTS | |
6 Months Ended
Jun. 30, 2009 | |
(C) FAIR VALUE MEASUREMENTS | |
Fair Value Disclosures [Text Block] | (C) FAIR VALUE MEASUREMENTS As of June 30, 2009, assets and liabilities measured at fair value on a recurring basis during the period, together with the level of the fair value hierarchy in which they fall, are as follows: Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs As of June 30, 2009: (Level 1) (Level 2) (Level 3) Total (in millions) Southern Company Assets: Energy-related derivatives $ - $ 23 $ - $ 23 Nuclear decommissioning trusts(a)(b) 594 343 - 937 Cash equivalents and restricted cash 688 - - 688 Other 7 44 34 85 Total $1,289 $410 $34 $1,733 Liabilities: Energy-related derivatives $ - $325 $ - $325 Interest rate derivatives - 16 - 16 Total $ - $341 $ - $341 Alabama Power Assets: Energy-related derivatives $ - $ 3 $ - $ 3 Nuclear decommissioning trusts(a) Domestic equity 244 35 - 279 U.S. Treasury and government agency securities - 12 - 12 Corporate bonds 7 56 - 63 Mortgage and asset backed securities - 50 - 50 Other - 14 - 14 Cash equivalents and restricted cash 191 - - 191 Total $442 $170 $ - $612 Liabilities: Energy-related derivatives $- $ 95 $ - $ 95 Interest rate derivatives - 9 - 9 Total $- $104 $ - $104 Georgia Power Assets: Energy-related derivatives $ - $ 4 $ - $ 4 Nuclear decommissioning trusts(a) Domestic equity 343 1 - 344 U.S. Treasury and government agency securities - 24 - 24 Municipal bonds - 15 - 15 Corporate bonds - 86 - 86 Mortgage and asset backed securities - 25 - 25 Other - 25 - 25 Cash equivalents and restricted cash 34 - - 34 Total $377 $180 $ - $557 Liabilities: Energy-related derivatives $ - $129 $ - $129 Interest rate derivatives - 7 - 7 Total $ - $136 $ - $136 Gulf Power Assets: Energy-related derivatives $ - $ 1 $- $ 1 Cash equivalents and restricted cash 41 - - 41 Total $ 41 $ 1 $- $42 Liabilities: Energy-related derivativ |
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(D) STOCKHOLDERS' EQUITY | |
1/1/2009 - 6/30/2009
| |
(D) STOCKHOLDERS' EQUITY | |
Stockholders' Equity Note Disclosure [Text Block] | (D) Stockholders Equity Earnings per Share For Southern Company, the only difference in computing basic and diluted earnings per share is attributable to exercised options and outstanding options under the stock option plan. See Note 8 to the financial statements of Southern Company in Item 8 of the Form 10-K for further information on the stock option plan. The effect of the stock options was determined using the treasury stock method. Shares used to compute diluted earnings per share are as follows (in thousands): Three Months Ended June 30, 2009 Three Months Ended June 30, 2008 Six Months Ended June 30, 2009 Six Months Ended June 30, 2008 As reported shares 790,748 769,122 785,303 767,636 Effect of options 1,320 4,018 1,562 4,091 Diluted shares 792,068 773,140 786,865 771,727 The reduction in the effect of options for the three and six months ended June 30, 2009 compared to the corresponding periods in 2008 is primarily due to the anti-dilutive nature of certain stock options outstanding that have exercise prices that exceed the average stock price of Southern Company shares in the three and six months ended June 30, 2009. At June 30, 2009, there were 37.8 million stock options that were not included in the diluted earnings per share calculation because they were anti-dilutive. Assuming an average stock price of $38.01 (the highest exercise price of the anti-dilutive options outstanding), the effect of options for the three and six months ended June 30, 2009 would have increased by 3.5 million and 3.1 million shares, respectively. Changes in Stockholders Equity The following table presents year-to-date changes in stockholders equity of Southern Company: Common Stockholders Equity Preferred and Preference Stock of Subsidiaries Total Stockholders Equity (in millions) Balance at December 31, 2008 $13,276 $707 $13,983 Net income after dividends on preferred and preference stock 604 - 604 Other comprehensive income (loss) 16 - 16 Stock issued 559 - 559 Cash dividends on common stock (670) - (670) Other (1) - (1) Balance at June 30, 2009 $13,784 $707 $14,491 Common Stockholders Equity Preferred and Preference Stock of Subsidiaries Total Stockholders Equity (in millions) Balance at December 31, 2007 $12,385 $707 $13,092 Net income after dividends on preferred and preference stock 776 - 776 Other comprehensive income (loss) (14) - (14) Stock issued 260 - 260 Cash dividends on common stock (630) - (630) Other (7) - (7) Balance at June 30, 2008 $12,770 $707 $13,477 |
9_
(E) FINANCING | |
6 Months Ended
Jun. 30, 2009 | |
(E) FINANCING | |
Debt Disclosure [Text Block] | (E) FINANCING Bank Credit Arrangements At June 30, 2009, unused credit arrangements with banks totaled $4.7 billion, of which $484 million expires during 2009, $965 million expires in 2010, $25 million expires in 2011, and $3.2 billion expires in 2012. These credit arrangements provide liquidity support to the registrants commercial paper borrowings and the traditional operating companies variable rate pollution control revenue bonds. The following table outlines the credit arrangements by company: Executable Term-Loans Expires Company Total Unused One Year Two Years 2009 2010 2011 2012 (in millions) Southern Company $ 950 $ 950 $ - $ - $ - $ - $ - $ 950 Alabama Power 1,260 1,260 361 - 325 145 25 765 Georgia Power 1,675 1,663 - - - 555 - 1,120 Gulf Power 220 220 70 - 90 130 - - Mississippi Power 149 149 15 44 59 90 - - Southern Power 400 400 - - - - - 400 Other 55 55 55 - 10 45 - - Total $4,709 $4,697 $501 $44 $ 484 $965 $25 $3,235 Subsequent to June 30, 2009, Georgia Power entered into an additional committed credit agreement resulting in an increase of $40 million. The agreement expires in 2010 and contains a two year term-loan option. See Note 6 to the financial statements of Southern Company, Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power under Bank Credit Arrangements in Item 8 of the Form 10-K for additional information. |
Schedule of Redeemable Preferred Stock [Text Block] | Changes in Redeemable Preferred Stock of Subsidiaries The following table presents year-to-date changes in redeemable preferred stock of subsidiaries for Southern Company: Redeemable Preferred Stock of Subsidiaries (in millions) Balance at December 31, 2008 $375 Issuance (Redemption) of preferred stock - Balance at June 30, 2009 $375 Balance at December 31, 2007 $498 Issuance (Redemption) of preferred stock (125) Other 2 Balance at June 30, 2008 $375 |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Financial Instruments Southern Company, the traditional operating companies, and Southern Power are exposed to market risks, primarily commodity price risk and interest rate risk. To manage the volatility attributable to these exposures, each company nets its exposures, where possible, to take advantage of natural offsets and enters into various derivative transactions for the remaining exposures pursuant to the companies policies in areas such as counterparty exposure and risk management practices. The registrants policy is that derivatives are to be used primarily for hedging purposes and mandates strict adherence to all applicable risk management policies. Derivative positions are monitored using techniques including, but not limited to, market valuation, value at risk, stress testing, and sensitivity analysis. Derivative instruments are recognized at fair value in the statement of financial position as either assets or liabilities. Energy-Related Derivatives The traditional operating companies and Southern Power enter into energy-related derivatives to hedge exposures to electricity, gas, and other fuel price changes. However, due to cost-based rate regulations, the traditional operating companies have limited exposure to market volatility in commodity fuel prices and prices of electricity. Each of the traditional operating companies manages fuel-hedging programs, implemented per the guidelines of their respective state PSCs, through the use of financial derivative contracts. Southern Power also has limited exposure to market volatility in commodity fuel prices and prices of electricity because its long-term sales contracts shift substantially all fuel cost responsibility to the purchaser. However, Southern Power has been and may continue to be exposed to market volatility in energy-related commodity prices as a result of sales of uncontracted generating capacity. To mitigate residual risks relative to movements in electricity prices, the registrants enter into physical fixed-price or heat rate contracts for the purchase and sale of electricity through the wholesale electricity market. To mitigate residual risks relative to movements in gas prices, the registrants may enter into fixed-price contracts for natural gas purchases; however, a significant portion of contracts are priced at market. Energy-related derivative contracts are accounted for in one of three methods: Regulatory Hedges Energy-related derivative contracts which are designated as regulatory hedges relate primarily to the traditional operating companies fuel hedging programs, where gains and losses are initially recorded as regulatory liabilities and assets, respectively, and then are included in fuel expense as the underlying fuel is used in operations and ultimately recovered through the respective fuel cost recovery clauses. Cash Flow Hedges Gains and losses on energy-related derivatives designated as cash flow hedges, which are mainly used by Southern Power, to hedge anticipated purchases and sales are initially deferred in OCI before being recognized in income in the same period as the hedged transactions are reflected in earnin |
10_
(F) RETIREMENT BENEFITS | |
6 Months Ended
Jun. 30, 2009 | |
(F) RETIREMENT BENEFITS | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (F) RETIREMENT BENEFITS Southern Company has a defined benefit, trusteed, pension plan covering substantially all employees. The plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No contributions to the plan are expected for the year ending December 31, 2009. Southern Company also provides certain defined benefit pension plans for a selected group of management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, Southern Company provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional operating companies fund related trusts to the extent required by their respective regulatory commissions. See Note 2 to the financial statements of Southern Company, Alabama Power, Georgia Power, Gulf Power, and Mississippi Power in Item 8 of the Form 10-K. Components of the pension plans and postretirement plans net periodic costs for the three-month and six-month periods ended June 30, 2009 and 2008 are as follows (in millions): PENSION PLANS Southern Company Alabama Power Georgia Power Gulf Power Mississippi Power Three Months Ended June 30, 2009 Service cost $ 37 $ 9 $ 12 $ 1 $ 1 Interest cost 97 24 36 5 5 Expected return on plan assets (136) (41) (54) (6) (5) Net amortization 11 2 4 - 1 Net cost (income) $ 9 $ (6) $ (2) $ - $ 2 Six Months Ended June 30, 2009 Service cost $ 73 $ 17 $ 24 $ 3 $ 3 Interest cost 194 48 73 9 9 Expected return on plan assets (271) (82) (108) (12) (10) Net amortization 21 5 8 - 1 Net cost (income) $ 17 $(12) $ (3) $ - $ 3 Three Months Ended June 30, 2008 Service cost $ 37 $ 8 $ 13 $ 1 $ 1 Interest cost 87 22 34 4 4 Expected return on plan assets (132) (40) (53) (6) (5) Net amortization 11 3 3 1 1 Net cost (income) $ 3 $ (7) $ (3) $ - $ 1 Six Months Ended June 30, 2008 Service cost $ 73 $ 17 $ 25 $ 3 $ 3 Interest cost 174 44 67 8 8 Expected return on plan assets (263) (80) (106) (12) (10) Net amortization 23 6 8 1 1 Net cost (income) $ 7 $(13) $ (6) $ - $ 2 POSTRETIREMENT PLANS Southern Company Alabama Power Georgia Power Gulf Power Mississippi Power Three Months Ended June |
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(G) EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS | |
6 Months Ended
Jun. 30, 2009 | |
(G) EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS | |
Income Tax Disclosure [Text Block] | (G) EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS Effective Tax Rate Southern Companys effective tax rate was 38.2% for the six months ended June 30, 2009, as compared to 33.3% for the same period in 2008. See Note 5 to the financial statements of each registrant in Item 8 of the Form 10-K for information on the effective income tax rate. Southern Companys effective tax rate increased for the six months ended June 30, 2009 primarily due to the $202 million charge recorded for the MC Asset Recovery settlement. Southern Company is currently evaluating potential recovery of the settlement payment through various means. The degree to which any recovery is realized will determine, in part, the final income tax treatment of the settlement payment. See Note (B) herein under Mirant Matters for further information regarding this matter. The increase in Southern Companys effective tax rate was partially offset by the early termination of an international leveraged lease investment, which is not taxable. Unrecognized Tax Benefits Changes during 2009 for unrecognized tax benefits are as follows: Southern Company Alabama Power Georgia Power Gulf Power Mississippi Power Southern Power (in millions) Unrecognized tax benefits as of December 31, 2008 $146.4 $ 3.0 $ 137.1 $ 0.3 $1.8 $ 0.5 Tax positions from current periods 29.4 1.0 23.4 0.2 0.7 0.3 Tax positions from prior periods 2.2 1.2 0.2 0.3 0.1 0.4 Reductions due to settlements - - - - - - Reductions due to expired statute of limitations - - - - - - Balance as of June 30, 2009 $178.0 $ 5.2 $ 160.7 $ 0.8 $ 2.6 $ 1.2 The tax positions increase from the current periods relates primarily to the Georgia state tax credits and other miscellaneous uncertain tax positions. See Note (B) herein under Income Tax Matters Georgia State Income Tax Credits for additional information. The tax positions increase from the prior periods relates to the production activities deduction tax position. Impact on Southern Companys effective tax rate, if recognized, is as follows: Georgia Power Other Registrants As of June 30, 2009 As of December 31, 2008 Change (in millions) Tax positions impacting the effective tax rate $158.0 $17.2 $175.2 $143.5 $31.7 Tax positions not impacting the effective tax rate 2.8 - 2.8 2.9 (0.1) Balance of unrecognized tax benefits $160.8 $17.2 $178.0 $146.4 $31.6 The change in the tax position impacting the effective tax rate increase relates primarily to the Georgia state tax credits and the production activities deduction. Accrued interest for unrecognized tax benefits: (in millions) Interest accrued as of December 31, 2008 $14.8 Interest accrued year- |
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(H) SEGMENT AND RELATED INFORMATION | |
6 Months Ended
Jun. 30, 2009 | |
(H) SEGMENT AND RELATED INFORMATION | |
Segment Reporting Disclosure [Text Block] | (H) SEGMENT AND RELATED INFORMATION Southern Companys reportable business segments are the sale of electricity in the Southeast by the four traditional operating companies and Southern Power. Southern Powers revenues from sales to the traditional operating companies were $138 million and $273 million for the three months and six months ended June 30, 2009, respectively, and $144 million and $277 million for the three months and six months ended June 30, 2008, respectively. The All Other column includes parent Southern Company, which does not allocate operating expenses to business segments. Also, this category includes segments below the quantitative threshold for separate disclosure. These segments include investments in telecommunications, energy-related services, and leveraged lease projects. All other intersegment revenues are not material. Financial data for business segments and products and services are as follows: Electric Utilities Traditional Operating Companies Southern Power Eliminations Total All Other Eliminations Consolidated (in millions) Three Months Ended June 30, 2009: Operating revenues $ 3,780 $ 230 $ (151) $ 3,859 $ 43 $ (17) $ 3,885 Segment net income (loss) after dividends on preferred and preference stock of subsidiaries 421 31 - 452 25 1 478 Six Months Ended June 30, 2009: Operating revenues $ 7,338 $ 462 $ (302) $ 7,498 $ 87 $ (34) $ 7,551 Segment net income (loss) after dividends on preferred and preference stock of subsidiaries 723 59 - 782 (180) 2 604 Total assets at June 30, 2009 $46,943 $2,821 $ (141) $49,623 $1,359 $ (565) $50,417 Electric Utilities Traditional Operating Companies Southern Power Eliminations Total All Other Eliminations Consolidated (in millions) Three Months Ended June 30, 2008: Operating revenues $ 4,075 $ 316 $ (208) $ 4,183 $ 47 $ (15) $ 4,215 Segment net income (loss) after dividends on preferred and preference stock of subsidiaries 451 35 - 486 (71) 2 417 Six Months Ended June 30, 2008: Operating revenues $7,693 $ 532 $ (393) $ 7,832 $ 95 $ (29) $ 7,898 Segment net income (loss) after dividends on preferred and preference stock of subsidiaries 793 64 - 857 (81) - 776 Total assets at December 31, 2008 $44,794 $2,813 $ (139) $47,468 $1,407 $ (528) $48,347 Products and Services Electric Utilities Revenues Period Retail Wholesale Other Total (in millions) Three Months Ended June 30, 2009 $3,293 $ 438 $128 $3,859 Three Months Ended June 30, 2008 3,449 591 |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-06-30 |
Entity Information
Entity Information (USD $) | |
In Thousands, except Share data | 6 Months Ended
Jun. 30, 2009 |
Entity Information [Line Items] | |
Entity Registrant Name | The Southern Company |
Entity Central Index Key | 0000092122 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Public Float | $24,804,969 |
Entity Listings [Line Items] | |
Entity Common Stock, Shares Outstanding | 796,051,643 |