Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 183

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 183
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At March 31, 2025, the following interest rate derivatives were outstanding:NotionalAmountWeightedAverage InterestRate PaidInterestRateReceivedHedgeMaturityDateFair Value Gain (Loss) at March 31, 2025 (in millions)   (in millions)Fair Value Hedges of Existing DebtSouthern Company parent$400 1-month SOFR + 0.80%1.75%March 2028$(31)Southern Company parent1,000 1-month SOFR + 2.48%3.70%April 2030(129)Southern Company parent565 1-month SOFR + 1.56%6.50%March 2045(3)Southern Company Gas500 1-month SOFR + 0.49%1.75%January 2031(66)Southern Company$2,465 $(229)For cash flow hedges of interest rate derivatives, the estimated pre-tax gains (losses) expected to be reclassified from accumulated OCI to interest expense for the 12-month period ending March 31, 2026 are immaterial for Southern Company, the traditional electric operating companies, and Southern Company Gas. Deferred gains and losses related to interest rate derivatives are expected to be amortized into earnings through 2054 for Southern Company, Georgia Power, and Mississippi Power, 2052 for Alabama Power, and 2046 for Southern Company Gas.Foreign Currency DerivativesSouthern Company and certain subsidiaries, including Southern Power, may enter into foreign currency derivatives to hedge exposure to changes in foreign currency exchange rates, such as that arising from the issuance of debt denominated in a currency other than U.S. dollars. Derivatives related to forecasted transactions are accounted for as cash flow hedges where the derivatives' fair value gains or losses are recorded in OCI and are reclassified into earnings at the same time and on the same income statement line as the earnings effect of the hedged transactions, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Derivatives related to existing fixed rate securities are accounted for as fair value hedges, where the derivatives' fair value gains or losses and hedged items' fair value gains or losses are both recorded directly to earnings on the same income statement line item, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Southern Company has elected to exclude the cross-currency basis spread from the assessment of effectiveness in the fair value h