Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 78

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 78
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 same income statement line item as the earnings effect of the hedged transactions. 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. Fair value gains or losses on derivatives that are not designated or fail to qualify as hedges are recognized in the statements of income as incurred.

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    Table of Contents                                Index to Financial StatementsNOTES TO THE CONDENSED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

At June 30, 2025, the following interest rate derivatives were outstanding:NotionalAmountWeightedAverage InterestRate PaidInterestRateReceivedHedgeMaturityDateFair Value Gain (Loss) at June 30, 2025 (in millions)   (in millions)Cash Flow Hedges of Forecasted DebtSouthern Company Gas$250 4.03%N/ASeptember2025$4 Georgia Power275 4.29%N/AAugust 2025(1)Fair Value Hedges of Existing DebtSouthern Company parent400 1-month SOFR + 0.80%1.75%March 2028(30)Southern Company parent1,000 1-month SOFR + 2.48%3.70%April 2030(106)Southern Company parent565 1-month SOFR + 1.56%6.50%March 2045(1)Southern Company Gas500 1-month SOFR + 0.49%1.75%January 2031(63)Southern Company$2,990 $(197)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 June 30, 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