Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 1017

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 1017
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 Power$1/$(1)$16/$(16)$1/$(1)Southern Company Gas$2/$(2)$24/$(23)$3/$(3)Salaries:Southern Company$15/$(15)$75/$(72)$–/$–Alabama Power$4/$(4)$20/$(20)$–/$–Georgia Power$4/$(4)$20/$(19)$–/$–Mississippi Power$1/$(1)$3/$(3)$–/$–Southern Company Gas$1/$(1)$2/$(2)$–/$–Long-term return on plan assets:Southern Company$40/$(41)N/AN/AAlabama Power$10/$(10)N/AN/AGeorgia Power$13/$(13)N/AN/AMississippi Power$2/$(2)N/AN/ASouthern Company Gas$3/$(3)N/AN/A

See Note 11 to the financial statements for additional information regarding pension and other postretirement benefits.

Impairment (Southern Company, Alabama Power, Southern Power, and Southern Company Gas)

Goodwill (Southern Company and Southern Company Gas)

The acquisition method of accounting for business combinations requires the assets acquired and liabilities assumed to be recorded at the date of acquisition at their respective estimated fair values. The applicable Registrants have recognized goodwill as of the date of their acquisitions, as a residual over the fair values of the identifiable net assets acquired. Goodwill is recorded at the reporting unit level, which is the operating segment or a business one level below the operating segment (a component), if discrete financial information is prepared and regularly reviewed by management. Components are aggregated if they have similar economic characteristics. Goodwill is tested for impairment at the reporting unit level on an annual basis in the fourth quarter of the year and on an interim basis if events and circumstances occur that indicate goodwill may be impaired.

Goodwill is evaluated for impairment either under the qualitative assessment option or the quantitative option to determine the fair value of the reporting unit. If goodwill is determined to be impaired, an impairment loss measured at the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill, is recorded.

Goodwill for Southern Company and Southern Company Gas was $5.2 billion and $5.0 billion, respectively, at December 31, 2024. During 2022, Southern Company recorded a $119 million impairment loss as a result of its annual