Stockholders Equity

6 Months Ended

Jun. 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		Six Months		Six Months
	Ended		Ended		Ended		Ended
	June 30, 2011		June 30, 2010		June 30, 2011		June 30, 2010
	(in millions)
As reported shares		855		828		851		825
Effect of options		7		5		7		4
Diluted shares		862		833		858		829

Stock options that were not included in the diluted earnings per share calculation because they were anti-dilutive were 0.8 million and 20 million for the three months ended June 30, 2011 and 2010, respectively, and 0.6 million and 20 million for the six months ended June 30, 2011 and 2010, respectively. Assuming an average stock price of $39.04 (the highest exercise price of the anti-dilutive options outstanding), the effect of options would have been immaterial for the three and six months ended June 30, 2011 and would have increased by 2 million shares for the three and six months ended June 30, 2010.

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		—		—			1,026			—		1,026
Other comprehensive income (loss)		—		—			8			—		8
Stock issued		14,337		—			533			—		533
Cash dividends on common stock		—		—			(787	)		—		(787	)
Other		—		(25	)		—			—		—
Balance at June 30, 2011		858,151		(499	)	$	16,982		$	707	$	17,689
Balance at December 31, 2009		820,152		(505	)	$	14,878		$	707	$	15,585
Net income after dividends on preferred and preference stock		—		—			1,005			—		1,005
Other comprehensive income (loss)		—		—			14			—		14
Stock issued		10,996		—			371			—		371
Cash dividends on common stock		—		—			(735	)		—		(735	)
Other		—		63			—			—		—
Balance at June 30, 2010		831,148		(442	)	$	15,533		$	707	$	16,240