Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 121

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 121
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 $2.05 billion for the corresponding period in 2024. The increase was primarily due to an increase of approximately $169 million related to higher average outstanding borrowings, a $129 million loss associated with the extinguishment of debt at the parent company, and an increase of $17 million related to higher interest rates, partially offset by an increase of $21 million in capitalized interest and AFUDC debt associated with increased capital expenditures. See Note (F) to the Condensed Financial Statements under "Convertible Senior Notes" herein for additional information.

See FINANCIAL CONDITION AND LIQUIDITY – "Sources of Capital" and "Financing Activities" herein for additional information.

Income Taxes

Third Quarter 2025 vs. Third Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$277.2$839.3

In the third quarter 2025, income taxes were $404 million compared to $377 million for the corresponding period in 2024. The increase was primarily due to higher pre-tax earnings, partially offset by a $15 million increase in the flowback of certain excess deferred income taxes at the traditional electric operating companies.

For year-to-date 2025, income taxes were $973 million compared to $890 million for the corresponding period in 2024. The increase was primarily due to a $78 million increase in charges to a valuation allowance on certain state tax credit carryforwards and $33 million from the recognition of certain state tax positions from amended returns in the second quarter 2024, both at Georgia Power, and higher pre-tax earnings, partially offset by increases of $26 million in the flowback of certain excess deferred income taxes at the traditional electric operating companies, $19 million in the generation of advanced nuclear PTCs at Georgia Power, and $10 million in the flowback of excess state deferred income taxes at Southern Company Gas.

See Note (G) to the Condensed Financial Statements herein for additional information.

108

    Table of Contents                                Index to Financial StatementsMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS (Continued)

Net Loss Attributable to Noncontrolling Interests

Third Quarter 2025 vs. Third Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(%