Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 283

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 283
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 related to investment losses and decreases of $9 million and $14 million, respectively, at Southern Company Gas related to lower rates at SNG. See Note 7 to the financial statements in Item 8 of the Form 10-K and Note (E) to the Condensed Financial Statements herein under "Southern Company" and "Southern Company Gas" for additional information.

Interest Expense, Net of Amounts Capitalized

Second Quarter 2025 vs. Second Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$18025.9$23016.9

In the second quarter 2025, interest expense, net of amounts capitalized was $874 million compared to $694 million for the corresponding period in 2024. For year-to-date 2025, interest expense, net of amounts capitalized was $1.6 billion compared to $1.4 billion for the corresponding period in 2024. The increases in the second quarter and year-to-date 2025 were primarily due to a $129 million loss associated with the extinguishment of debt at the parent company, as well as increases of approximately $54 million and $101 million, respectively, related to higher average outstanding borrowings. See FINANCIAL CONDITION AND LIQUIDITY – "Sources of Capital" and "Financing Activities" herein and Note (F) to the Condensed Financial Statements under "Convertible Senior Notes" herein for additional information.

Income Taxes

Second Quarter 2025 vs. Second Quarter 2024Year-to-Date 2025 vs. Year-to-Date 2024(change in millions)(% change)(change in millions)(% change)$(1)(0.3)$5610.9

In the second quarter 2025, income taxes were $289 million compared to $290 million for the corresponding period in 2024. The decrease was primarily due to lower pre-tax earnings and a $19 million increase in the flowback of excess state deferred income taxes at Georgia Power, largely offset by a $64 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 a $9 million decrease in the flowback of certain excess deferred income taxes at Alabama Power.

For year