Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 1179

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 1179
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 as hedges for accounting purposes.The purchase, transportation, storage, and sale of natural gas are accounted for on a weighted average cost or accrual basis, as appropriate, rather than on the fair value basis utilized for the derivatives used to mitigate the natural gas price risk associated with the storage and transportation portfolio. Monthly demand charges are incurred for the contracted storage and transportation 

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    Table of Contents                                Index to Financial StatementsCOMBINED NOTES TO FINANCIAL STATEMENTS

capacity and payments associated with asset management agreements, and these demand charges and payments are recognized on the statements of income in the period they are incurred. This difference in accounting methods can result in volatility in reported earnings, even though the economic margin is substantially unchanged from the dates the transactions were consummated.

Comprehensive IncomeThe objective of comprehensive income is to report a measure of all changes in common stock equity of an enterprise that result from transactions and other economic events of the period other than transactions with owners. Comprehensive income consists of net income attributable to the Registrant, changes in the fair value of qualifying cash flow hedges, and reclassifications for amounts included in net income. Comprehensive income also consists of certain changes in pension and other postretirement benefit plans for Southern Company, Southern Power, and Southern Company Gas.AOCI (loss) balances, net of tax effects, for Southern Company, Southern Power, and Southern Company Gas were as follows:QualifyingHedgesPension and OtherPostretirementBenefit PlansAccumulated OtherComprehensiveIncome (Loss)(*)(in millions)Southern CompanyBalance at December 31, 2021$(162)$(76)$(237)Current period change13 58 71 Balance at December 31, 2022(149)(18)(167)Current period change28 (38)(10)Balance at December 31, 2023(121)(56)(177)Current period change75 24 99 Balance at December 31, 2024$(46)$(32)$(78)Southern PowerBalance at December 31, 2021$1 $(29)$(27)Current period change(10)20 10 Balance at December 31, 2022(9)(9)(18)Current period change8 (7)1 Balance at December 31, 2023(1)(16)(17)Current period change8 7 15 Balance at December 31, 2024$7