Effective Tax Rate and Unrecognized Tax Benefits (Tables)

6 Months Ended

Jun. 30, 2013

Changes during 2013 for unrecognized tax benefits were as follows:



	Southern Company		Alabama Power		Georgia Power		Gulf Power		Mississippi Power		Southern Power
	(in millions)
Unrecognized tax benefits as of December 31, 2012	$	70	$	31	$	23	$	5	$	6	$	3
Tax positions from current periods	6		1		3		—		—		1
Balance as of June 30, 2013	$	76	$	32	$	26	$	5	$	6	$	4

Impact on effective tax rate

The impact on the effective tax rate, if recognized, was as follows:



	As of June 30, 2013			As of December 31, 2012
		Southern Company
	(in millions)
Tax positions impacting the effective tax rate		$	6	$	5
Tax positions not impacting the effective tax rate		70		65
Balance of unrecognized tax benefits		$	76	$	70

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details