Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 658

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 658
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 assessment of the postretirement benefits plan fair value of investments measured at NAV as a critical audit matter. Subjective auditor judgment was required in the application and performance of procedures to assess the fair value of the investments measured at NAV because the determination involved the use of unobservable inputs. Additionally, specialized skills and knowledge were required to assess the fair value of the investments measured at NAV and to assess the sufficiency of audit evidence obtained. 

The primary procedures we performed to address this critical audit matter included:

•Comparing the fair values as recorded by the Company to external confirmations received directly from the third-party investment managers.

•Utilizing specialists who performed a benchmark analysis to determine the correlation of the funds and the stated benchmark; the results were used to estimate the high and low fair value range of the investments to compare to the Company's fair value.

Emphasis of Matter – Significant Transactions with Related Parties

As discussed in Note 6 to the consolidated financial statements, the Company has entered into significant transactions with related parties.

/s/ BDO USA, P.C.

We have served as the Company's auditor since 2018.

Houston, Texas

February 6, 2025

II-108

    Table of Contents                                Index to Financial Statements

CONSOLIDATED STATEMENTS OF INCOME

For the Years Ended December 31, 2024, 2023, and 2022

Southern Company Gas and Subsidiary Companies

202420232022(in millions)Operating Revenues:Natural gas revenues (includes revenue taxes of   $115, $133, and $162, respectively)$4,456 $4,702 $5,962 Total operating revenues4,456 4,702 5,962 Operating Expenses: Cost of natural gas1,196 1,644 3,004 Other operations and maintenance1,235 1,187 1,172 Depreciation and amortization650 582 559 Taxes other than income taxes248 262 282 Impairment charges— — 131 Estimated loss on regulatory disallowance— 88 — Total operating expenses3,329 3,763 5,148 Operating Income1,127 939 814 Other Income and (Expense):Earnings from equity method investments146 140 148 Interest expense, net of amounts capitalized(341)(310)(263)Other income (expense), net66 57 53 Total