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Effective Tax Rate
6 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
EFFECTIVE TAX RATE AND UNRECOGNIZED TAX BENEFITS
EFFECTIVE TAX RATE
See Note 5 to the financial statements of each registrant in Item 8 of the Form 10-K for additional tax information.
Southern Company
Southern Company's effective tax rate is typically lower than the statutory rate due to its employee stock plans' dividend deduction and non-taxable AFUDC equity.
Southern Company's effective tax rate was 33.3% for the six months ended June 30, 2014 compared to 31.4% for the corresponding period in 2013. The increase was primarily due to higher net income, which was partially offset by an increase in non-taxable AFUDC equity, changes in state apportionment, and beneficial changes in certain state income tax laws.
Alabama Power
Alabama Power's effective tax rate was 39.3% for the six months ended June 30, 2014 compared to 39.2% for the corresponding period in 2013.
Georgia Power
Georgia Power's effective tax rate was 37.0% for the six months ended June 30, 2014 compared to 38.2% for the corresponding period in 2013. The decrease was primarily due to recognition in the second quarter 2014 of tax benefits related to emission allowances and state apportionment.
Gulf Power
Gulf Power's effective tax rate was 37.3% for the six months ended June 30, 2014 compared to 37.7% for the corresponding period in 2013.
Mississippi Power
Mississippi Power's effective tax rate was (51.1)% for the six months ended June 30, 2014 compared to (41.0)% for the corresponding period in 2013. The change in the tax benefit was primarily due to a reduced net loss for the current period compared to the corresponding period in 2013 and an increase in non-taxable AFUDC equity related to the construction of the Kemper IGCC.
Southern Power
Southern Power's effective tax rate was 0.3% for the six months ended June 30, 2014 compared to 25.1% for the corresponding period in 2013. The decrease was primarily due to the impact of state apportionment changes which reduced Southern Power's deferred tax liabilities, a change in filing method for North Carolina income tax, an increase in state income tax credits, and beneficial changes in certain state income tax laws.