FINANCING

6 Months Ended

Jun. 30, 2020

Bank Credit Arrangements

See Note 8 to the financial statements under "Bank Credit Arrangements" in Item 8 of the Form 10-K for additional information.

At June 30, 2020, committed credit arrangements with banks were as follows:



	Expires
Company	2020		2021		2022		2023		2024		Total		Unused		Due within One Year
	(in millions)
Southern Company parent	$	—	$	—	$	—	$	—	$	2,000	$	2,000	$	1,999	$	—
Alabama Power	3		—		525		—		800		1,328		1,328		3
Georgia Power	—		—		—		—		1,750		1,750		1,733		—
Mississippi Power	—		—		150		125		—		275		250		—
Southern Power^(a)	—		—		—		—		600		600		590		—
Southern Company Gas^(b)	—		—		—		—		1,750		1,750		1,745		—
SEGCO	—		30		—		—		—		30		30		30
Southern Company	$	3	$	30	$	675	$	125	$	6,900	$	7,733	$	7,675	$	33


(a)	Does not include Southern Power Company's $120 million and $60 million continuing letter of credit facilities for standby letters of credit expiring in 2021 and 2023, respectively, of which $19 million and $60 million, respectively, was unused at June 30, 2020. Southern Power's subsidiaries are not parties to its bank credit arrangements or letter of credit facilities.

(b)

Southern Company Gas, as the parent entity, guarantees the obligations of Southern Company Gas Capital, which is the borrower of $1.25 billion of this arrangement. Southern Company Gas' committed credit arrangement also includes $500 million for which Nicor Gas is the borrower and which is restricted for working capital needs of Nicor Gas. Pursuant to this multi-year credit arrangement, the allocations between Southern Company Gas Capital and Nicor Gas may be adjusted.

As reflected in the table above, in March 2020, Mississippi Power entered into a $125 million revolving credit facility that matures in March 2023.

Subject to applicable market conditions, Southern Company and its subsidiaries expect to renew or replace their bank credit arrangements as needed, prior to expiration. In connection therewith, Southern Company and its subsidiaries may extend the maturity dates and/or increase or decrease the lending commitments thereunder.

These bank credit arrangements, as well as the term loan arrangements of the Registrants and SEGCO, contain covenants that limit debt levels and contain cross-acceleration or, in the case of Southern Power, cross-default provisions to other indebtedness (including guarantee obligations) that are restricted only to the indebtedness of the individual company. Such cross-default provisions to other indebtedness would trigger an event of default if Southern Power defaulted on indebtedness or guarantee obligations over a specified threshold. Such cross-acceleration provisions to other indebtedness would trigger an event of default if the applicable borrower defaulted on indebtedness, the payment of which was then accelerated. At June 30, 2020, the Registrants, Nicor Gas, and SEGCO were in compliance with all such covenants. None of the bank credit arrangements contain material adverse change clauses at the time of borrowings.

A portion of the unused credit with banks is allocated to provide liquidity support to the revenue bonds of the traditional electric operating companies and the commercial paper programs of the Registrants, Nicor Gas, and SEGCO. The amount of variable rate revenue bonds of the traditional electric operating companies outstanding requiring liquidity support at June 30, 2020 was approximately $1.4 billion (comprised of approximately $854 million at Alabama Power, $550 million at Georgia Power, and $34 million at Mississippi Power). In addition, at June 30, 2020, Georgia Power had approximately $257 million of fixed rate revenue bonds outstanding that are required to be remarketed within the next 12 months.

Earnings per Share

For Southern Company, the only differences in computing basic and diluted earnings per share are attributable to awards outstanding under stock-based compensation plans and, as a result of stock price volatility in the first six months of 2020, the equity units issued in August 2019. Earnings per share dilution resulting from stock-based

compensation plans and the equity units issuance is determined using the treasury stock method. See Note 8 to the financial statements under "Equity Units" in Item 8 of the Form 10-K for information on the August 2019 equity units issuance and Note 12 to the financial statements in Item 8 of the Form 10-K for information on stock-based compensation plans. Shares used to compute diluted earnings per share were as follows:



	Three Months Ended June 30, 2020	Three Months Ended June 30, 2019	Six Months Ended June 30, 2020	Six Months Ended June 30, 2019
	(in millions)
As reported shares	1,058	1,044	1,057	1,041
Effect of stock-based compensation	5	8	7	8
Effect of equity units	—	—	1	—
Diluted shares	1,063	1,052	1,065	1,049

An immaterial number of stock-based compensation awards was not included in the diluted earnings per share calculation because the awards were anti-dilutive for the three and six months ended June 30, 2020. There were no such amounts for the three and six months ended June 30, 2019.