Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 1622

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 1622
---
 Identical AssetsSignificant Other Observable InputsSignificant Unobservable InputsNet Asset Value as a Practical ExpedientAt December 31, 2023:(Level 1)(Level 2)(Level 3)(NAV)Total(in millions)Mississippi PowerAssets:Energy-related derivatives$— $15 $— $— $15 Cash equivalents17 — — — 17 Total$17 $15 $— $— $32 Liabilities:Energy-related derivatives$— $61 $— $— $61 Southern PowerAssets:Energy-related derivatives$— $3 $— $— $3 Liabilities:Energy-related derivatives$— $5 $— $— $5 Foreign currency derivatives— 22 — — 22 Contingent consideration3 — 16 — 19 Other— 13 — — 13 Total$3 $40 $16 $— $59 Southern Company GasAssets:Energy-related derivatives(a)$6 $3 $— $— $9 Non-qualified deferred compensation trusts:Domestic equity— 7 — — 7 Foreign equity— 1 — — 1 Pooled funds - fixed income— 6 — — 6 Cash and cash equivalents3 — — — 3 Total$9 $17 $— $— $26 Liabilities:Energy-related derivatives(a)$46 $12 $— $— $58 Interest rate derivatives— 79 — — 79 Total$46 $91 $— $— $137 (a)Excludes cash collateral of $62 million.(b)Excludes receivables related to investment income, pending investment sales, payables related to pending investment purchases, and currencies. See Note 6 under "Nuclear Decommissioning" for additional information.Valuation MethodologiesThe energy-related derivatives primarily consist of exchange-traded and OTC financial products for natural gas and physical power products, including, from time to time, basis swaps. These are standard products used within the energy industry and are valued using the market approach. The inputs used are mainly from observable market sources, such as forward natural gas prices, power prices, implied volatility, and overnight index swap interest rates. Interest rate derivatives are