Company: SOJE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000092122-25-000042
Chunk: 60

Company: SOUTHERN CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 60
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edges of its foreign currency risk and record any difference between the change in the fair value of the excluded components and the amounts recognized in earnings as a component of OCI.At March 31, 2025, the following foreign currency derivatives were outstanding:Pay NotionalPayRateReceive NotionalReceiveRateHedgeMaturity DateFair Value Gain (Loss) at March 31, 2025(in millions)(in millions) (in millions)Cash Flow Hedges of Existing DebtSouthern Power$564 3.78%€500 1.85%June 2026$(32)Fair Value Hedges of Existing DebtSouthern Company parent1,476 3.39%1,250 1.88%September 2027(129)Southern Company$2,040 €1,750 $(161)For cash flow hedges of foreign currency derivatives, the estimated pre-tax losses expected to be reclassified from accumulated OCI to earnings for the 12-month period ending March 31, 2026 are $18 million for Southern Power.

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

Derivative Financial Statement Presentation and AmountsThe Registrants enter into derivative contracts that may contain certain provisions that permit intra-contract netting of derivative receivables and payables for routine billing and offsets related to events of default and settlements. Southern Company and certain subsidiaries also utilize master netting agreements to mitigate exposure to counterparty credit risk. These agreements may contain provisions that permit netting across product lines and against cash collateral. The fair value amounts of derivative assets and liabilities on the balance sheets are presented net to the extent that there are netting arrangements or similar agreements with the counterparties.

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

The fair value of energy-related derivatives, interest rate derivatives, and foreign currency derivatives was reflected as either assets or liabilities in the balance sheets (included in "Other" or shown separately as "Risk Management Activities") as follows:At March 31, 2025At December 31, 2024Derivative Category and Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities(in millions)Southern CompanyEnergy-related derivatives designated as hedging instruments for regulatory purposesCurrent$130 $15 $33 $82