What are the main financial impacts highlighted in this filing?

The primary financial impacts highlighted are significant charges related to estimated probable losses for the Kemper County IGCC facility and costs associated with the proposed acquisition of AGL Resources Inc. Southern Company is presenting both GAAP and non-GAAP results to help investors understand the impact of these specific items on overall earnings.

Why is Southern Company using non-GAAP financial measures?

Southern Company uses non-GAAP measures, specifically adjusted earnings and EPS, to exclude charges like those from the Kemper IGCC project and the AGL acquisition. Management believes this provides investors with a more useful measure for evaluating the performance of the company's ongoing business activities and core operations, separate from these significant and potentially volatile items.

What is the Kemper IGCC project and why is it causing financial charges?

The Kemper IGCC (Integrated Coal Gasification Combined Cycle) facility is a major construction project by Mississippi Power Company, a subsidiary of Southern Company. The filing indicates substantial charges for 'estimated probable losses' associated with its construction, suggesting potential cost overruns or other financial challenges related to this project.

What information is provided about the AGL Resources Inc. acquisition?

The filing mentions costs related to the proposed acquisition of AGL Resources Inc. It states that further costs are expected to continue to occur in connection with closing the acquisition and supporting integration. These costs are being excluded from certain non-GAAP financial measures.

SOUTHERN CO 8-K: Earnings & Results

Summary

Southern Company (SO) filed an 8-K on February 3, 2016, to report its financial results for the three-month and twelve-month periods ended December 31, 2015. The filing primarily consists of press releases and financial exhibits detailing earnings and other key performance indicators. A significant focus of the report is the impact of the Kemper IGCC facility construction by Mississippi Power Company on Southern Company's earnings, with substantial charges reported for estimated probable losses. The company also detailed charges related to the proposed acquisition of AGL Resources Inc., which are expected to continue. Southern Company utilizes non-GAAP financial measures to provide investors with a clearer view of ongoing business performance, excluding these significant one-time charges. These adjusted figures are presented alongside GAAP results to aid in the evaluation of core operations. The filing also includes segment information for its various power companies and data on kilowatt-hour sales, offering a comprehensive look at the company's financial position and operational performance for the period.

Key Highlights

1Southern Company reported financial results for the fourth quarter and full year ended December 31, 2015.
2The company is reporting significant charges related to estimated probable losses for the Kemper County IGCC facility construction by Mississippi Power Company.
3Charges associated with the proposed acquisition of AGL Resources Inc. are also detailed and are expected to continue.
4Southern Company is providing non-GAAP earnings per share (EPS) figures that exclude these special charges to offer insight into ongoing business performance.
5The filing includes business segment information for its major subsidiaries, including Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power.
6Kilowatt-hour sales data for the period is also presented, providing operational context.

SOUTHERN CO 8-K Report, Financial Results (Feb 3, 2016)

Summary

Key Highlights

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