Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Investment Theme: Investing in a consistent dividend-growth
utilities company which is operating in an above-average population and
economic growth area.
Overview: Operating in a volatile market, Southern Company is a
well-positioned business that can maintain enviable regulatory
relationships and rate structures, along with a commitment to the pureplay regulated utility model. Southern has remained on constructive terms
with regulators largely because of its low-cost generating fleet, its
commitment to customers, and the business-friendly atmosphere of its
service territory. Its subsidiary, Georgia Power is building two nuclear
units that are scheduled to begin commercial operation in 2016 and 2017.
Mississippi Power, another subsidiary, is building a 582-mw coal
gasification plant, which is scheduled for completion in 2014. Unlike
many merchant power producers, Southern Power operates with a highly
conservative framework. Management builds a plant only if it has longterm contracts already in place. The contracts have an average life of
roughly 11 years, and all counterparties have investment-grade ratings.
Recommendation: BUY
Total Annual Return Est.:
3 yr FV
5 yr FV
10.3%
7.8%
Financial Snapshot:
Price
DCF Value
Buy Target
Sell Target
P/E
Forward P/E
Div Yield
Market Cap
52 Wk Range
EPS Growth
PEG
Credit
Current Ratio
$42.03
$50.27
$42.73
$57.80
16.8x
16.4x
4.33%
$36.6Billion
$48.59 - $41
2.1%
2.90
A
1.02x
Revenue is expected to grow between 3% and 4% annually over the next
five years, driven by electricity demand from residential, commercial and
industrial consumers. While demand from residential customers is
weather-normalized and resilient, demand from commercial customer
depends on the strength of the economy. Over the next few years, it is
expected to see an increased demand from commercial sector when the economy has recovered. Long-term growth
in electric utility sales to industrial customers will be much more modest than the growth for the residential and
commercial sectors, reflecting the ability of large industrial firms to buy power from alternative energy providers.
Southern Company’s current price of $42.03 results in a P/E ratio of approximately 16.8x based on current-year
EPS estimates of approximately $2.5, with expected EPS to rise to $2.57 in fiscal year 2013. The discounted cash
flow valuation assumes a 3% annual revenue growth rate and a cost of equity 6.05%.
2012 Q3 Results: Southern Company announced third-quarter results that reflected some economic
stagnation and weakness in its Southeastern U.S. service territories. Earnings per share for the quarter rose to $1.11,
a nearly 4% increase from $1.07 EPS for the third quarter of 2011. Regulated rates and lower operating expenses
more than offset the negative impact of weather after a milder summer. Earnings through the first nine months total
$2.24 per share. Southern guided for $0.38-0.40 per share for the fourth quarter.
Huong Doan
November 26th, 2012
1
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Investment Thesis: Seeking dividends and capital preservation in volatile markets, I found Southern
Company an attractive investment for three primary reasons. First, the company has a long positive relationship
with regulators. Regulators determine a utility's rate mechanisms, capital base, and allowed return, which together
translate into revenue collected from rate payers. Furthermore, regulation means that Southern Company is able to
make up for some of its lost revenue through future rate increases. Second, the company has a relative predictable
earnings and dividend stream. It has raised its dividend 11 consecutive years and analysts expect 4% annual growth
through 2016. Its payout ratio has fluctuated between 69% and 86% over the last ten years. Southern Company
targets its payout range from 70% to 75%. Third, population growth in Southern Company's service territories has
continued despite the economic slowdown. New customers are a cheap and easy way for a regulated utility to grow.
Among regions, the South has the highest population growth rate in the last ten years. From 2000 to 2010, the
South’s population growth rate is 14.3%. Georgia and Florida, two of Southern Company's service territories, have
very high population growth rate in the same period, 18.3% and 17.6%, respectively.
Pros:
• Southern Company has a positive relationship with regulators, the essential ingredient for success at a regulated
utility. It maintains an office and staff in Washington, D.C., to interact with Congress and with agencies. It supports
a number of trade organizations that engage in lobbying activities. The total expense associated with operating its
federal affairs program is approximately $10 million annually. It also works with state and local legislators and
policymakers.
• The region of the country served by Southern Company is undergoing significant growth, driven by population
increases. The United States Census Bureau estimates that between the years 2000 and 2030, some 50% of the
population growth in United States will occur in the region that the Census Bureau defines as the South, reaching
from the mid-Atlantic to Texas. The Southeast and the Southern Company's territory will enjoy its share of that
population growth.
• The company has a relative predictable earnings and dividend stream. It has a strong and steady cash flow from
its regulated electric utility operations, its solid balance sheet, and a generally supportive regulatory environment.
• The company's in-house engineering and construction expertise allows it to build plants more cheaply than its
peers and lowers maintenance and environmental compliance costs.
• With an average contract duration around 11 years, Southern Company's merchant segment, Southern Power, has
lower remarketing risk than most merchant power suppliers.
• The company's management team historically has comprised highly capable and conservative individuals. Many
high-level executives running other utilities trace their roots to Southern Company. Management has fostered
excellent regulatory relations in its service territory.
Industry Trends: Electricity demand varies by customer sector. While the demand growth of residential
customers will remain mostly weather-related, demand from the commercial and industrial sector is dependent on
the strength of the economy. The federal economic stimulus package supported renewable energy projects and
smart grid projects to advance green technologies and move the nation to a far more efficient and reliable electric
system. A self-regulating, electric reliability organization under the jurisdiction of the Federal Energy Regulatory
Commission is established to address reliability issues highlighted by the power blackout of August 2003. Public
Utility Holding Company Act of 1935 was repealed to pave the way for the entry of new non-utility domestic
players into the industry and for additional acquisition activity by foreign companies. Many states are examining
the need to reform the cost-based framework.
Business Summary: Southern Company generates and distributes electricity to more than 4.4 million
customers in the Southeast. It owns four electric utilities in Alabama, Georgia, Florida, and Mississippi and has
more than 43,500 megawatts of generating capacity, the majority of which comes from coal-fired plants. Southern
Company also operates a conservative merchant generation segment, Southern Power. Southern is one of the most
widely held stocks in the United States.
Huong Doan
November 26th, 2012
2
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Management Review: CEO Thomas Fanning served as CFO and COO of Southern as part of his 30-year
tenure with the company before his promotion in late 2010. He has executive experience as well, having served as
president and CEO of Gulf Power. Southern doesn't appear to engage in aggressive accounting, and executive
compensation is targeted at the market median of its industry peer. Former CEO David Ratcliffe received $16
million of total compensation during 2010. This was largely tied to his performance-based bonus, equity awards,
and other long-term compensation. More importantly, management has maintained a focus on preserving goodwill
and constructive exchange between its utilities and its state regulators, which is a crucial driver of utility returns
over the long run.
Financial Trend Analysis: Revenue of an electricity utility company fluctuates with the weather condition
and macroeconomic condition. Over the last five years, Southern Company’s revenue has been up from 2006 to
2008, down in 2009, and up again in 2010 and 2011. Gross margin has hinged around 50% of sales. Selling, general
and administrative expense has accounted for a decreasing portion in income statement. It has decreased from
23.9% of sales in 2007 to 22.3% of sales in 2011. As a result, operating margin has increased from 21.66% of sales
in 2007 to 24% of sales in 2011. However, returns on equity and total capital are slightly decreasing every year
because the growth rate of equity and total capital is higher than the growth rate of operating margin. Assets
turnover is approximately 30% in average over the last five years. Debt/Equity ratio and Debt/Capital ratio have
decreased over years. Current ratio is up and down, fluctuating from 0.95 to 1.05 for the last 5 year period. Interest
coverage has ranged from 3.6 times to 4.9 times over the same period due to the volatile annual interest expense.
Financial Health: Like other industry peers, Southern Company spends tremendous amount in capital
expenditures. It has projected capital expenditures of about $5.267 billion for 2012 (with $425 million targeted for
environmental projects), $4.381 billion for 2013 ($405 million), and $4.341 billion for 2014 ($621 million).
Southern Company uses cash from Operating Activities Cash Flow and long-term debt to fund its capital
expenditure. The company's customer growth averaged around 1.7% a year in the decade before 2009, driving
electricity demand increases of about 2% annually. Although usage dropped substantially in 2009 because of weak
industrial demand, industrial users are the least profitable customers. Industrial usage recovered more than 7% in
2010 and a further 3% in 2011. Weather-normalized residential demand has proved resilient, and commercial
demand has been slightly stable.
The company's total current liabilities increased to $6.577 billion as of December 31, 2011, from $6.472 billion at
the end of 2010. With this increase and the modest increase in its total current assets from $5.883 billion at the end
of 2010, to $6.262 billion at the end of 2011, the company reversed its prior trend of having its current assets being
exceeded by its current liabilities. However, a $1 billion cash reserve and more than $5 billion in unused credit lines
reduce short-term liquidity concerns.
Competitive Analysis: Southern Company’s retail operating companies have provided competitive
wholesale power supply to the region by providing a reliable and stable resource. The company has the experience
to anticipate market and weather changes and the ability to respond quickly when called upon.
As the agent for Alabama Power, Georgia Power, Gulf Power and Mississippi Power, Southern Wholesale Energy
(SWE) markets the retail operating companies' surplus generating capacity to the wholesale market. SWE offers its
customers high levels of reliability from a diverse mix of resources, competitively priced products, and flexibility in
product offerings.
Projections and Valuation Summary: The valuation is based on the low end of current estimates of
3% annual revenue growth in a range of 3%-4%. With the decreasing trend of cost of goods sold in the last five
years, I projected COGS at 34% of sales in average for the next five years. Selling, general and administrative
expense was estimated at the average historical percentage of SG&A expense in the last five years, accounting for
28% of sales. Depreciation expense is calculated by timing projected sales and the average historical percentage of
depreciation over sales in 5-year period. The same rule is applied for interest expense.
Huong Doan
November 26th, 2012
3
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Due to its huge capital expenditure, Southern Company has negative free cash flow and negative free cash flow to
equity investors. Therefore, I employed dividend discount model and excess return model to evaluate the company.
Instead of WACC, cost of equity is used in these two models. Southern Company has a very low beta, resulting in a
low cost of equity. For a more conservative valuation, I use beta of 0.75, which is the highest beta among its peer.
Risk Factors:
• The biggest threat that Southern Company faces is a deterioration of its regulatory relationships in its four retail
service territories. As having said, much of the company's success hinges on the relationships it has built through
years of low power prices and excellent customer service.
• Much of the company's generating fleet burns coal, so any emission legislation could require expensive
compliance that could raise customers' bills and discourage usage. Its fleet is especially exposed to Air Toxics Rule
compliance.
• As the industrial growth and strength in the region where Southern Company is operating has been driven to a
large extent by exports, export weakness from a slowdown in global economic activity is proving a drag on the
company’s performance. A continued lull in global demand for U.S. exports would affect the company more than
most of its peers outside the Southeast.
• If tough federal environmental regulations raise investment needs and costs for customers, regulators might be
less willing to support above-average allowed returns on equity.
Huong Doan
November 26th, 2012
4
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Dividend Discount Model:
Year
Dividend
Growth rate
Average growth rate
Applied growth rate
Stock price
Buy Price = FV less 15%
Sell Price = FV + 15%
2002
1.36
2003
2004
2005 2006 2007 2008 2009 2010 2011 2012
1.39
1.77
1.48 1.54
1.6 1.66 1.73
1.8 1.87 1.94
2.21% 27.34% -16.38% 4.05% 3.90% 3.75% 4.22% 4.05% 3.89% 3.74%
4.08%
2%
50.53
42.95
58.11
Excess Return Valuation Model:
Cost of equity
Year
6.05%
2012
Return on equity
Net income
Dividend payout ratio
Dividends paid
Retained earnings
11.03%
2,176
74%
1,601
575
2013
1
11.28%
2,289
74.70%
1,710
579
Beginning BV of equity
Equity cost
19,721
1,192
20,296
1,227
20,875
1,262
21,478
1,298
22,106
1,336
22,759
1,376
23,439
1,417
2,176
1,192
984
2,289
1,227
1,062
2,384
1,262
1,122
2,482
1,298
1,183
2,582
1,336
1,246
2,686
1,376
1,310
984
1,001
998
992
985
977
2,713
1,417
1,296
25,691
19,157
Net income
- Equity cost
Excess equity return
Terminal value of excess return
Present value
Book value of equity invested currently
PV of equity excess return - next 5 years
PV of terminal value of excess return
Value of equity
Number of shares
Value per share
Buy Price = FV less 15%
Sell Price = FV + 15%
2014
2
11.42%
2,384
74.70%
1,781
603
2015
3
11.55%
2,482
74.70%
1,854
628
2016
4
11.68%
2,582
74.70%
1,929
653
2017 2018 onward
5
11.80%
12%
2,686
2,713
74.70%
74.70%
2,007
2,027
680
686
19,721
4,953
19,157
43,831
872
50.27
42.73
57.80
Comparative Valuation Analysis:
Comparables from Thomson OneBanker
Ticker
SO
DUK
DividendYield
4.66%
5.06%
Market Cap
36,738.65
42,564.36
Enterprise Value
58,257.65
80,123.36
P/E
16.61
19.07
PEG
7.41
NEG
Price/Cash Flow
6.87
6.43
Price/Book Value
2.16
1.12
EV/EBITDA
9.11
14.40
EV/EBIT
13.38
24.73
Total Debt/EV
0.37
0.49
Total Debt/Equity
1.17
0.96
Net Margin
13.87%
9.37%
ROA
4.90%
2.69%
ROE
12.64%
5.09%
Huong Doan
November 26th, 2012
AEP
4.58%
19,895.55
37,442.55
13.77
NEG
5.61
1.39
8.10
13.04
0.49
1.20
11.17%
4.14%
10.99%
EXC
7.86%
24,386.58
41,636.58
15.20
NEG
3.35
1.39
6.44
12.98
0.47
0.90
6.47%
2.96%
7.67%
FE
Avg
5.36% 5.72%
17,176.14
35,534.14
16.11
16.04
NEG #DIV/0!
7.03
5.60
1.37
1.32
10.10
9.76
13.11
15.96
0.53
0.50
1.39
1.12
6.29% 8.33%
3.51% 3.32%
7.67% 7.86%
5
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Cost of equity Calculation:
Cost of Equity Calculation
Marginal tax rate
35.00%
Risk free rate
1.62%
Market risk premium
5.90%
Beta
0.75
Cost of equity
6.05%
Total Return Calculation:
Total Return Calculation
Current Price
$ 42.03
Fair Value
$ 50.27
Div 1
$ 1.85
Div 2
$ 1.86
Div 3
$ 1.87
Div 4
$ 1.89
Div 5
$ 1.91
Ttl Ann Ret 3 yr to FV
10.32%
Ttl Ann Ret 5 yr to FV
7.81%
Valuation Assumptions:
Assumption Summary
Current price
$42.03
2012 Est. EPS
2.50
2013 Est. EPS
2.57
Revenue growth
3%
Tax rate
35%
Cost of equity
6.05%
Net income growth rate
1%
Income Statement Projection:
Year
2013
2014
2015
2016
2017
17,026
17,537
18,063
18,605
19,163
5,789
5,962
6,141
6,326
6,515
11,237
11,574
11,921
12,279
12,647
Consolidated Income S tatement
Sales
COGS
Gross profit
Gross M argin
SG&A
66%
66%
66%
66%
66%
4,762
4,904
5,051
5,203
5,359
EBITDA
6,476
6,670
6,870
7,076
7,288
Depreciation
1,604
1,652
1,701
1,752
1,805
4,872
5,018
5,169
5,324
5,484
Operating profit (EBIT)
Operating M argin
Taxes
Interest Expense
Net income
Net M argin
29%
1,705
29%
1,756
29%
1,809
29%
1,863
29%
1,919
878
878
878
878
878
2,289
2,384
2,482
2,582
2,686
13%
14%
14%
14%
14%
S hareholder information
Average no. of shares outstanding
892
912
932
952
972
1,646
1,695
1,746
1,799
1,853
Earnings per share
2.57
2.61
2.66
2.71
2.76
Dividends per share
1.85
1.86
1.87
1.89
1.91
Dividends
Huong Doan
November 26th, 2012
6
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Historical Financial Data:
Annual Incom e Statem ent
12/31/2011
USD
12/31/2010
USD
12/31/2009
USD
12/31/2008
USD
12/31/2007
USD
Net Sales or Revenues
17,655.0
17,458.0
15,738.0
17,127.0
15,353.0
Operating Expenses - Total
13,418.0
13,655.0
12,263.0
13,621.0
12,027.0
Cost of Goods Sold
6,531.0
6,944.0
6,131.0
7,372.0
6,130.0
Selling, General & Admin Expenses
3,938.0
4,011.0
3,526.0
3,748.0
3,670.0
Depreciation, Depletion & Amortization
2,048.0
1,831.0
1,788.0
1,704.0
1,486.0
Depreciation
-
-
-
-
-
Amortization of Intangibles
-
-
-
-
-
Amortization of Deferred Charges
-
-
-
-
-
901.0
869.0
818.0
797.0
741.0
Incom e Statem ent
Other Operating Expenses
Operating Income
4,237.0
3,803.0
3,475.0
3,506.0
3,326.0
Extraordinary Credit - Pretax
3.0
1.0
31.0
0.0
27.0
Extraordinary Charge - Pretax
9.0
3.0
229.0
0.0
0.0
Non-Operating Interest Income
-
24.0
23.0
33.0
45.0
Interest Expense On Debt
843.0
870.0
859.0
866.0
886.0
Pretax Equity In Earnings
-
0.0
0.0
0.0
0.0
Reserves- Increase(Decrease)
-
0.0
0.0
0.0
0.0
(54.0)
(83.0)
(36.0)
(114.0)
23.0
Other Income/Expense - Net
Interest Capitalized
153.0
194.0
200.0
152.0
106.0
Pretax Income
3,487.0
3,066.0
2,605.0
2,711.0
2,641.0
Income Taxes
1,219.0
1,026.0
896.0
915.0
835.0
65.0
(12.0)
871.0
700.0
829.0
0.0
0.0
0.0
0.0
0.0
1,154.0
1,038.0
25.0
215.0
6.0
Deferred Foreign Income Tax
0.0
0.0
0.0
0.0
0.0
Income Tax Credits
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-
0.0
(1.0)
11.0
(24.0)
0.0
0.0
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
2,268.0
2,040.0
1,708.0
1,807.0
1,782.0
Current Domestic Income Tax
Current Foreign Income Tax
Deferred Domestic Income Tax
Minority Interest
Equity In Earnings
After Tax Other Income/Expense
Discontinued Operations
Net Income Before Extra Items/Preferred Div
Extr Items & Gain(Loss) Sale of Assets
0.0
0.0
0.0
0.0
0.0
Net Income Before Preferred Dividends
2,268.0
2,040.0
1,708.0
1,807.0
1,782.0
Preferred Dividend Require
65.0
65.0
65.0
65.0
48.0
2,203.0
1,975.0
1,643.0
1,742.0
1,734.0
EPS Incl Extraordinary Items
2.6
2.4
2.1
2.3
2.3
EPS - Continuing Operations
2.6
2.4
2.1
2.3
2.3
Dividend Per Share
1.9
1.8
1.7
1.7
1.6
864,000,000.0
837,000,000.0
796,000,000.0
775,000,000.0
761,000,000.0
Net Incom e to Com m on Shareholders
Common Shares Used to Calc Diluted EPS
Huong Doan
November 26th, 2012
7
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Annual Cash Flow Statem ent
12/31/2011
USD
12/31/2010
USD
12/31/2009
USD
12/31/2008
USD
12/31/2007
USD
Net Income / Starting Line
2,268.0
2,040.0
1,708.0
1,742.0
1,734.0
Depreciation, Depletion & Amortization
2,048.0
1,831.0
1,788.0
1,704.0
1,486.0
2,048.0
1,831.0
1,788.0
1,704.0
1,486.0
-
-
-
-
-
1,155.0
1,038.0
25.0
215.0
7.0
Deferred Income Taxes
1,155.0
1,038.0
25.0
215.0
7.0
Investment Tax Credits
-
-
-
-
-
Other Cash Flow
(141.0)
(859.0)
(213.0)
0.0
43.0
Funds From Operations
5,330.0
4,050.0
3,308.0
3,661.0
3,270.0
0.0
0.0
0.0
0.0
0.0
573.0
(59.0)
(45.0)
(263.0)
125.0
Operations
Depreciation & Depletion
Amortization of Intangible Assets
Deferred Income Taxes & Investment Tax Credit
Extraordinary Items
Funds From/For Other Operating Activities
Dec(Inc) In Receivables
Dec(Inc) In Inventories
Inc(Dec) In Accounts Payable
Inc(Dec) In Income Taxes Payable
362.0
80.0
585.0
(176.0)
165.0
(122.0)
105.0
(471.0)
(326.0)
(110.0)
(5.0)
4.0
(125.0)
(74.0)
105.0
330.0
(308.0)
(95.0)
293.0
(19.0)
(40.0)
Inc(Dec) In Other Accruals
10.0
180.0
(226.0)
36.0
Dec(Inc) In Other Assets/Liabilities
(2.0)
(120.0)
287.0
(16.0)
24.0
5,903.0
3,991.0
3,263.0
3,398.0
3,395.0
Net Cash Flow - Operating Activities
Investing
Capital Expenditures (Addition to Fixed Assets)
(4,525.0)
(4,086.0)
(4,670.0)
(3,961.0)
(3,545.0)
Additions To Other Assets
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
Net Assets From Acquisitions
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
Increase In Investments
(0.0)
(50.0)
(55.0)
(1.0)
(37.0)
Decrease In Investments
0.0
0.0
0.0
0.0
0.0
Disposal of Fixed Assets
25.0
18.0
340.0
34.0
33.0
Other Use/(Source) - Investing
Other Uses - Investing
(317.0)
138.0
(66.0)
198.0
160.0
(2,288.0)
(2,185.0)
(1,496.0)
(986.0)
(1,048.0)
Other Sources - Investing
2,605.0
2,047.0
1,562.0
788.0
888.0
Net Cash Flow - Investing
(4,183.0)
(4,256.0)
(4,319.0)
(4,126.0)
(3,709.0)
723.0
772.0
1,286.0
474.0
1,008.0
0.0
0.0
0.0
0.0
0.0
723.0
772.0
1,286.0
474.0
1,008.0
Financing
Net Proceeds From Sale/Issue of Com & Pref
Proceeds From Stock Options
Other Proceeds From Sale/Issuance of Stock
Com/Pfd Purchased
Long Term Borrow ings
Reduction In Long Term Debt
Inc(Dec) In Short Term Borrow ings
Cash Dividends Paid - Total
Common Dividends (Cash)
Preferred Dividends (Cash)
Other Source (Use) - Financing
Other Sources - Financing
(0.0)
(0.0)
(0.0)
(125.0)
(0.0)
3,719.0
3,151.0
3,042.0
3,686.0
3,826.0
(3,170.0)
(2,966.0)
(1,234.0)
(1,469.0)
(2,566.0)
(438.0)
659.0
(306.0)
(314.0)
(669.0)
(1,666.0)
(1,561.0)
(1,434.0)
(1,280.0)
(1,205.0)
1,601.0
1,496.0
1,369.0
1,280.0
1,205.0
65.0
65.0
65.0
0.0
0.0
(20.0)
(33.0)
(25.0)
(28.0)
(46.0)
0.0
0.0
0.0
0.0
0.0
Other Uses - Financing
(20.0)
(33.0)
(25.0)
(28.0)
(46.0)
Net Cash Flow - Financing
(852.0)
22.0
1,329.0
944.0
348.0
-
-
-
-
-
868.0
(243.0)
273.0
216.0
34.0
Effect of Exchange Rate On Cash
Inc(Dec) In Cash & Short Term Investm ents
Huong Doan
November 26th, 2012
8
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Annual Balance Sheet
12/31/2011
USD
12/31/2010
USD
12/31/2009
USD
12/31/2008
USD
12/31/2007
USD
1,340.0
529.0
742.0
520.0
269.0
1,323.0
515.0
733.0
520.0
-
17.0
14.0
9.0
-
-
Receivables (Net)
1,849.0
2,029.0
2,030.0
2,295.0
2,336.0
Inventories - Total
2,270.0
2,135.0
2,241.0
1,775.0
1,435.0
Raw Materials
2,270.0
2,135.0
2,241.0
1,775.0
1,435.0
Work In Process
-
-
-
-
-
Finished Goods
-
-
-
-
-
0.0
0.0
0.0
0.0
0.0
Prepaid Expenses
260.0
784.0
508.0
302.0
146.0
Other Current Assets
553.0
406.0
352.0
466.0
546.0
6,272.0
5,883.0
5,873.0
5,358.0
4,732.0
0.0
0.0
0.0
0.0
0.0
-
-
-
-
-
12.0
9.0
1.0
-
-
45,010.0
42,002.0
39,230.0
35,878.0
33,327.0
Assets
Cash & ST Investments
Cash
Short Term Investments
Progress Payments & Other
Current Assets - Total
Long Term Receivables
Investment In Unconsolidated Subsidiaries
Other Investments
Property Plant & Equipment - Net
Property Plant & Equipment - Gross
66,164.0
62,176.0
58,351.0
54,164.0
50,740.0
Land
-
-
-
-
-
Buildings
-
-
-
-
-
5,591.0
4,775.0
4,170.0
3,036.0
3,228.0
Machinery & Equipment
-
-
-
-
-
Rental/Lease Property
-
-
-
-
-
Transportation Equipment
-
-
-
-
-
60,573.0
57,401.0
54,181.0
51,128.0
47,512.0
Construction Work In Progress
PP&E - Other
PP&E Under Capitalized Leases
-
-
-
-
-
(Less) Accumulated Depreciation
21,154.0
20,174.0
19,121.0
18,286.0
17,413.0
Accum Depr-Land
-
-
-
-
-
Accum Depr-Buildings
-
-
-
-
-
Accum Depr-Machinery & Equip.
-
-
-
-
-
Accum Depr-Rental/Lease Property
-
-
-
-
-
Accum Depr-Transport Equip.
-
-
-
-
-
21,154.0
20,174.0
19,121.0
18,286.0
17,413.0
Accum Depr-PP&E Other
Accum Depr-PP&E Under Cap Leases
Other Assets
Deferred Charges
Tangible Other Assets
Intangible Other Assets
Total Assets
Huong Doan
November 26th, 2012
-
-
-
-
-
6,608.0
5,858.0
5,895.0
6,138.0
6,820.0
441.0
540.0
463.0
479.0
2,849.0
6,167.0
5,318.0
5,432.0
5,659.0
3,971.0
0.0
0.0
0.0
0.0
0.0
57,902.0
53,752.0
50,999.0
47,374.0
44,879.0
9
Southern Company (SO)
Sector: Utilities (Industry: Electric Utilities)
Liabilities
Accounts Payable
1,553.0
1,275.0
1,329.0
1,250.0
1,214.0
ST Debt & Current Portion of LT Debt
2,576.0
2,598.0
1,752.0
1,570.0
2,450.0
655.0
632.0
432.0
626.0
579.0
35.0
195.0
179.0
328.0
217.0
-
-
-
-
-
1,758.0
1,772.0
1,892.0
1,452.0
1,171.0
Accrued Payroll
Income Taxes Payable
Dividends Payable
Other Current Liabilities
Current Liabilities - Total
6,577.0
6,472.0
5,584.0
5,226.0
5,631.0
18,647.0
18,154.0
18,131.0
16,816.0
14,143.0
LT Debt Excl Capital Leases
18,578.0
18,055.0
18,033.0
16,710.0
14,043.1
Non-Convertible Debt
18,578.0
18,055.0
18,033.0
16,710.0
14,043.1
0.0
0.0
-
-
-
69.0
99.0
98.0
106.0
99.9
2,442.0
1,580.0
2,304.0
2,057.0
1,492.0
-
-
-
-
-
8,279.0
7,018.0
6,104.0
5,821.0
5,680.0
Deferred Taxes - Credit
9,644.0
8,298.0
7,151.0
6,794.0
6,590.0
Deferred Taxes - Debit
1,365.0
1,280.0
1,047.0
973.0
910.0
-
-
-
-
-
3,297.0
3,244.0
2,916.0
3,096.0
4,468.0
39,242.0
36,468.0
35,039.0
33,016.0
31,414.0
Non-Equity Reserves
0.0
0.0
-
-
0.0
Minority Interest
0.0
0.0
0.0
0.0
0.0
Preferred Stock
1,082.0
1,082.0
1,082.0
1,082.0
1,080.0
Preferred Stock - Non Redeemable
1,082.0
1,082.0
1,082.0
1,082.0
1,080.0
0.0
0.0
0.0
0.0
0.0
17,578.0
16,202.0
14,878.0
13,276.0
12,385.0
Common Stock
4,328.0
4,219.0
4,101.0
3,888.0
3,817.0
Capital Surplus
4,410.0
3,702.0
2,995.0
1,893.0
1,454.0
0.0
0.0
0.0
0.0
0.0
(70.0)
(42.0)
(88.0)
(105.0)
(30.0)
Long Term Debt
Convertible Debt
Capitalized Lease Obligations
Provision for Risks & Charges
Deferred Income
Deferred Taxes
Deferred Tax Liability In Untaxed Reserves
Other Liabilities
Total Liabilities
Shareholders' Equity
Preferred Stock - Redeemable
Common Equity
Revaluation Reserves
Other Appropriated Reserves
Unappropriated (Free) Reserves
Retained Earnings
Equity In Untaxed Reserves
-
-
-
-
-
8,968.0
8,366.0
7,885.0
7,612.0
7,155.0
-
-
-
-
-
0.0
0.0
0.0
0.0
0.0
(44.0)
-
-
-
-
3.0
(28.0)
-
-
-
17.0
15.0
15.0
12.0
11.0
Total Shareholders Equity
18,660.0
17,284.0
15,960.0
14,358.0
13,465.0
Total Liabilities & Shareholders Equity
57,902.0
53,752.0
50,999.0
47,374.0
44,879.0
865.1
843.5
819.5
777.6
763.6
ESOP Guarantees
Unrealized Foreign Exchange Gain(Loss)
Unrealized Gain(Loss) on Marketable Securities
(Less) Treasury Stock
Common Shares Outstanding
Notes:
Huong Doan
November 26th, 2012
1
0