Stockholders Equity

9 Months Ended

Sep. 30, 2011

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

(D) STOCKHOLDERS’ EQUITY

Earnings per Share

For Southern Company, the only difference in computing basic and diluted earnings per share is attributable to awards outstanding under the stock option and performance share plans. See Note 8 to the financial statements of Southern Company in Item 8 of the Form 10-K for further information on the stock option and performance share plans. The effects of both stock options and performance share award units were determined using the treasury stock method. Shares used to compute diluted earnings per share were as follows:

	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30, 2011		September 30, 2010		September 30, 2011		September 30, 2010
	(in millions)
As reported shares		860		836		854		829
Effect of options		8		6		7		4
Diluted shares		868		842		861		833

Stock options that were not included in the diluted earnings per share calculation because they were anti-dilutive were 0.4 million and 6.7 million for the three months ended September 30, 2011 and 2010, respectively, and 0.4 million and 13.7 million for the nine months ended September 30, 2011 and 2010, respectively. Assuming an average stock price of $40.14 (the highest exercise price of the anti-dilutive options outstanding in 2011), there would be no effect on stock options for the three and nine months ended September 30, 2011. Assuming an average stock price of $38.01 (the highest exercise price of the anti-dilutive options outstanding in 2010), the effect of options would have increased by 0.4 million and 0.8 million shares for the three and nine months ended September 30, 2010, respectively.

Changes in Stockholders’ Equity

The following table presents year-to-date changes in stockholders’ equity of Southern Company:

									Preferred and
	Number of					Common			Preference		Total
	Common Shares					Stockholders’			Stock of		Stockholders’
	Issued		Treasury			Equity			Subsidiaries		Equity
	(in thousands)								(in millions)
Balance at December 31, 2010		843,814		(474	)	$	16,202		$	707	$	16,909
Net income after dividends on preferred and preference stock		—		—			1,942			—		1,942
Other comprehensive income (loss)		—		—			(11	)		—		(11	)
Stock issued		18,634		—			692			—		692
Cash dividends on common stock		—		—			(1,193	)		—		(1,193	)
Other		—		(45	)		1			—		1
Balance at September 30, 2011		862,448		(519	)	$	17,633		$	707	$	18,340
Balance at December 31, 2009		820,152		(505	)	$	14,878		$	707	$	15,585
Net income after dividends on preferred and preference stock		—		—			1,822			—		1,822
Other comprehensive income (loss)		—		—			16			—		16
Stock issued		18,994		—			650			—		650
Cash dividends on common stock		—		—			(1,114	)		—		(1,114	)
Other		—		30			3			—		3
Balance at September 30, 2010		839,146		(475	)	$	16,255		$	707	$	16,962