Stockholder's Equity

9 Months Ended

Sep. 30, 2012

Equity [Abstract]

STOCKHOLDER'S 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 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 Ended September 30, 2012	Three Months Ended September 30, 2011	Nine Months Ended September 30, 2012	Nine Months Ended September 30, 2011
	(in millions)
As reported shares	876	860	872	854
Effect of options and performance share award units	7	8	8	7
Diluted shares	883	868	880	861

Stock options and performance share award units that were not included in the diluted earnings per share calculation because they were anti-dilutive were immaterial for both the three months and nine months ended September 30, 2012 and 2011.

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
	(in thousands)						(in millions)
Balance at December 31, 2011	865,664	(539	)	$	17,578		$	707	$	18,285
Net income after dividends on preferred and preference stock	—	—		1,967			—		1,967
Other comprehensive income (loss)	—	—		(1		)	—		(1		)
Stock issued	11,586	—		479			—		479
Stock repurchased, at cost	—	(2,567	)	(117		)	—		(117		)
Cash dividends on common stock	—	—		(1,267		)	—		(1,267		)
Other	—	(38	)	—			—		—
Balance at September 30, 2012	877,250	(3,144	)	$	18,639		$	707	$	19,346
Balance at December 31, 2010	843,814	(474	)	$	16,202		$	707	$	16,909
Net income after dividends on preferred and preference stock	—	—		1,942			—		1,942
Other comprehensive income (loss)	—	—		(11		)	—		(11		)
Stock issued	18,634	—		692			—		692
Cash dividends on common stock	—	—		(1,193		)	—		(1,193		)
Other	—	(45	)	1			—		1
Balance at September 30, 2011	862,448	(519	)	$	17,633		$	707	$	18,340

In July 2012, Southern Company announced a program to repurchase shares to partially offset the incremental shares issued under its employee and director stock plans. Under this program, approximately 2.6 million shares have been repurchased through September 30, 2012 at a total cost of $117 million. Pursuant to Board approval, Southern Company may repurchase shares through open market purchases or privately negotiated transactions, in accordance with applicable securities laws.