Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

STOCKHOLDERS' EQUITY

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 information on the stock option and performance share plans. The effect of both stock options and performance share award units was determined using the treasury stock method. Shares used to compute diluted earnings per share were as follows:

	Three Months Ended September 30, 2015	Three Months Ended September 30, 2014	Nine Months Ended September 30, 2015	Nine Months Ended September 30, 2014
	(in millions)
As reported shares	910	898	910	894
Effect of options and performance share award units	2	4	3	4
Diluted shares	912	902	913	898

Stock options and performance share award units that were not included in the diluted earnings per share calculation because they were anti-dilutive were 15 million and 1 million for the three and nine months ended September 30, 2015, respectively, and were 16 million and 17 million for the three and nine months ended September 30, 2014, respectively.

Changes in Stockholders' Equity

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

	Number of Common Shares			Common Stockholders' Equity			Preferred and Preference Stock of Subsidiaries						Total Stockholders' Equity
	Issued	Treasury								Noncontrolling Interest(*)
	(in thousands)			(in millions)
Balance at December 31, 2014	908,502	(725	)	$	19,949		$	756		$	221		$	20,926
Net income after dividends on preferred and preference stock	—	—		2,096			—			—			2,096
Other comprehensive income (loss)	—	—		(7		)	—			—			(7		)
Stock issued	3,769	—		136			—			—			136
Stock-based compensation	—	—		78			—			—			78
Stock repurchased, at cost	—	(2,599	)	(115		)	—			—			(115		)
Cash dividends on common stock	—	—		(1,465		)	—			—			(1,465		)
Preference stock redemption	—	—		—			(150		)	—			(150		)
Contributions from noncontrolling interest	—	—		—			—			429			429
Distributions to noncontrolling interest	—	—		—			—			(13		)	(13		)
Net income attributable to noncontrolling interest	—	—		—			—			13			13
Other	—	(8	)	(8		)	3			—			(5		)
Balance at September 30, 2015	912,271	(3,332	)	$	20,664		$	609		$	650		$	21,923
Balance at December 31, 2013	892,733	(5,647	)	$	19,008		$	756		$	—		$	19,764
Net income after dividends on preferred and preference stock	—	—		1,680			—			—			1,680
Other comprehensive income (loss)	—	—		6			—			—			6
Treasury stock re-issued	—	4,996		225			—			—			225
Stock issued	7,781	—		332			—			—			332
Stock repurchased, at cost	—	—		(5		)	—			—			(5		)
Cash dividends on common stock	—	—		(1,390		)	—			—			(1,390		)
Other	—	(51	)	1			—			—			1
Balance at September 30, 2014	900,514	(702	)	$	19,857		$	756		$	—		$	20,613

(*) Primarily related to Southern Power Company.

Stock Repurchased

On March 2, 2015, Southern Company announced a program to repurchase up to 20 million shares of Southern Company common stock to offset all or a portion of the incremental shares issued under its employee and director equity compensation plans, including through stock option exercises, until December 31, 2017. Under this program, approximately 2.6 million shares were repurchased through September 30, 2015 at a total cost of approximately $115 million. There were no repurchases during the three months ended September 30, 2015 and no further repurchases under this program are anticipated.