SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-3526
A. Full title of the plan:
THE SOUTHERN COMPANY
EMPLOYEE SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
THE SOUTHERN COMPANY
64 Perimeter Center East
Atlanta, Georgia 30346
<PAGE>
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
FORM 11-K
DECEMBER 31, 1994
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Page No.
Exhibits 3
Report of Independent Public Accountants 4
Statement of Net Assets Available for Benefits With Fund Information--
December 31, 1994 5
Statement of Net Assets Available for Benefits With Fund Information--
December 31, 1993 6
Statement of Changes in Net Assets Available for Benefits With Fund Information--
for the year ended December 31, 1994 7
Statement of Changes in Net Assets Available for Benefits With Fund Information--
for the year ended December 31, 1993 8
Notes to Financial Statements and Schedules 9
Schedule I - Item 27a - Schedule of Assets Held for Investment Purposes--
December 31, 1994 14
Schedule II - Item 27d - Schedule of Reportable Transactions-- for the year ended
December 31, 1994 20
Signature 21
Consent of Independent Public Accountants 22
</TABLE>
<PAGE>
EXHIBITS
A-1 - The Southern Company Employee Savings Plan, Amended and Restated
effective January 1, 1989. (Designated in Registration No. 33-23152
as Exhibit 4(c).)
B - Copy of Internal Revenue Service determination letter dated May 29,
1990. (Designated in Form 11-K for 1991, File No. 1-3526 as Exhibit
B).
C - Trust Agreement between Southern Company Services, Inc. and Wachovia
Bank of Georgia, N. A. (Designated in Form 11-K for 1991, File No.
1-3526 as Exhibit C).
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Savings Plan Committee of
The Southern Company Employee Savings Plan:
We have audited the accompanying statements of net assets available for
benefits, with fund information of THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
(the "Plan") as of December 31, 1994 and 1993, and the related statements of
changes in net assets available for benefits, with fund information for the
years then ended. These financial statements and the schedules referred to below
are the responsibility of the Savings Plan Committee in its capacity as
administrator of the Plan (the "Administrator"). Our responsibility is to
express an opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Administrator, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1994 and 1993, and the changes in net assets available for benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules, as listed in
the accompanying table of contents, are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statements of net assets
available for benefits and the statements of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to present
the net assets available for benefits and changes in net assets available for
benefits of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ ARTHUR ANDERSEN LLP
ARTHUR ANDERSEN LLP
Atlanta, Georgia
June 9, 1995
<PAGE>
Item 1.
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1994
Fund Information (Note 1)
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Participant
Participant Directed Portion Directed Portion
Fixed Income Equity S&P 500 Participants' The Southern Company
Total Fund Fund Index Fund Loan Fund Stock Fund
ASSETS:
Investments, at fair value
(Schedule 1 and Note 2)
Temporary investments $ 51,602,378 $37,764,434 $ 6,121,923 $ 832,652 $ - $ 4,775,531 $ 2,107,838
Certificates of deposit 60,500,000 60,500,000 - - - - -
Common stock--
excluding common stock
of The Southern Company 104,715,606 - 104,715,606 - - -
Common stock--
The Southern Company 1,299,493,706 - - - - 603,212,501 696,281,205
Mutual fund equity
investments 54,285,339 - - 54,285,339 - - -
Investments, at contract
value
Guaranteed investment
contracts 1,700,296 1,700,296 - - - - -
Loans due from
participants 78,091,627 - - - 78,091,627 - -
------------- ------------ ------------ ----------- ---------- ----------- ------------
1,650,388,952 99,964,730 110,837,529 55,117,991 78,091,627 607,988,032 698,389,043
Interest and dividends
receivable 1,278,263 1,088,687 148,303 3,300 - 21,671 16,302
Other current assets 387,814 - 281,814 - - - 106,000
------------- ------------ ------------ ----------- ---------- ----------- ------------
Total Assets 1,652,055,029 101,053,417 111,267,646 55,121,291 78,091,627 608,009,703 698,511,345
------------- ------------ ------------ ----------- ---------- ----------- ------------
LIABILITIES:
Liabilities for
securities purchased 1,246,481 - 769,261 - - 477,220 -
-------------- ------------ ------------ ----------- ----------- ----------- ------------
NET ASSETS AVAILABLE
FOR BENEFITS $1,650,808,548 $101,053,417 $110,498,385 $55,121,291 $78,091,627 $607,532,483 $698,511,345
============== ============ ============ =========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
Item 1. (Continued)
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1993
<TABLE>
<CAPTION>
Fund Information (Note 1)
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Participant
Participant Directed Portion Directed Portion
Fixed Income Equity S&P 500 Participants' The Southern Company
Total Fund Fund Index Fund Loan Fund Stock Fund
ASSETS:
Investments, at fair value
(Schedule 1 and Note 2)
Temporary investments $ 63,463,995 $ 47,105,138 $ 10,473,370 $ 791,093 $ - $ 3,163,751 $ 1,930,643
Certificates of deposit 51,000,000 51,000,000 - - - - -
Common stock--
excluding common stock
of The Southern Company 101,177,789 - 101,177,789 - - - -
Common stock--
The Southern Company 1,337,838,980 - - - - 603,466,473 34,372,507
Mutual fund
equity investments 47,649,183 - - 47,649,183 - - -
Investments, at
contract value
Guaranteed investment
contracts 6,241,947 6,241,947 - - - - -
Loans due from
participants 76,796,989 - - - 76,796,989 - -
------------- ------------ ----------- ---------- ----------- ----------- ------------
1,684,168,883 104,347,085 111,651,159 48,440,276 76,796,989 606,630,224 736,303,150
Interest and dividends
receivable 1,020,381 856,943 146,114 1,101 - 9,253 6,970
Other current assets 942,498 191,494 751,004 - - - -
------------- ------------ ------------ ----------- ----------- ------------ ------------
Total Assets 1,686,131,762 105,395,522 112,548,277 48,441,377 76,796,989 606,639,477 736,310,120
------------- ------------ ------------ ----------- ----------- ------------ ------------
LIABILITIES:
Current liabilities 548,542 548,542 - - - - -
Liabilities for
securities purchased 864,174 - 314,906 - - 549,268 -
------------- ------------ ------------ ----------- ----------- ------------ ------------
Total Liabilities 1,412,716 548,542 314,906 - - 549,268 -
------------- ------------ ------------ ----------- ----------- ------------ ------------
NET ASSETS AVAILABLE
FOR BENEFITS $1,684,719,046 $104,846,980 $112,233,371 $48,441,377 $76,796,989 $606,090,209 $736,310,120
============== ============ ============ =========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
Item 2.
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Fund Information (Note 1
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Participant
Participant Directed Portion Directed Portion
Fixed Income Equity S&P 500 Participants' The Southern Company
Total Fund Fund Index Fund Loan Fund Stock Fund
INVESTMENT INCOME:
Interest and dividends $ 86,486,040 $ 4,517,561 $ 1,250,458 $ 1,453,443 $ 5,160,542 $ 34,007,672 $ 40,096,364
Net appreciation
(depreciation)
in fair value of
investments (Note 2) (117,589,549) (58,474) 5,293,424 (743,473) - (54,682,308) (67,398,718)
------------- ------- --------- --------- ----------- ------------ ------------
Net investment income (31,103,509) 4,459,087 6,543,882 709,970 5,160,542 (20,674,636) (27,302,354)
CONTRIBUTIONS
(Notes 3 and 4):
Participants' 70,615,207 6,766,645 9,280,520 7,553,630 - 47,014,412 -
Company 42,806,039 - - - - - 42,806,039
DISTRIBUTIONS TO
PARTICIPANTS (116,228,235) (10,486,684) (6,855,204) (3,425,344) (2,427,995) (37,367,800) (55,665,208)
NEW LOANS ISSUED - (2,734,073) (3,567,316) (1,784,289) 31,822,210 (18,485,350) (5,251,182)
LOAN PRINCIPAL PAYMENTS - 2,492,229 3,195,308 2,460,707 (33,260,119) 17,506,581 7,605,294
NET TRANSFERS INTO FUNDS - (4,290,767) (10,332,176) 1,165,240 - 13,449,067 8,636
-------------- ------------ ------------ ----------- ----------- ------------ ------------
CHANGE IN NET ASSETS
AVAILABLE FOR BENEFITS
DURING YEAR (33,910,498) (3,793,563) (1,734,986) 6,679,914 1,294,638 1,442,274 (37,798,775)
NET ASSETS AVAILABLE FOR
BENEFITS AT
DECEMBER 31, 1993 1,684,719,046 104,846,980 112,233,371 48,441,377 76,796,989 606,090,209 736,310,120
-------------- ------------ ------------ ----------- ----------- ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS AT
DECEMBER 31, 1994 $1,650,808,548 $101,053,417 $110,498,385 $55,121,291 $78,091,627 $607,532,483 $698,511,345
============== ============ ============ =========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
Item 2. (Continued)
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Fund Information (Note 1)
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Participant
Participant Directed Portion Directed Portion
Fixed Income Equity S&P 500 Participants' The Southern Company
Total Fund Fund Index Fund Loan Fund Stock Fund
INVESTMENT INCOME:
Interest and dividend $ 78,164,696 $ 3,978,515 $ 1,583,310 $ 1,119,668 $ 5,078,989 $ 29,889,592 $ 36,514,622
Net appreciation
(depreciation)
in fair value
of investments
(Note 2) 163,327,319 - (1,843,752) 2,746,651 - 73,292,169 89,132,251
------------- ------------ ------------ ----------- ------------ ------------ -------------
Net investment income 241,492,015 3,978,515 (260,442) 3,866,319 5,078,989 103,181,761 125,646,873
CONTRIBUTIONS
(Notes 3 and 4):
Participants' 68,250,451 7,652,042 10,764,437 6,936,394 - 42,897,578 -
Company 41,414,262 - - - - - 41,414,262
DISTRIBUTIONS TO
PARTICIPANTS (67,322,108) (10,028,558) (4,478,962) (1,535,553) - (19,782,961) (31,496,074)
NEW LOANS ISSUED - (3,637,103) (4,261,730) (1,896,580) 36,555,453 (20,760,973) (5,999,067)
LOAN PRINCIPAL PAYMENTS - 1,923,943 2,917,134 1,774,523 (25,948,242) 12,430,153 6,902,489
TRANSFERS BETWEEN FUNDS - 4,937,244 (6,433,692) 5,281,486 (5,078,989) (110,643) 1,404,594
NET TRANSFERS INTO FUNDS 9,387,013 5,506,752 1,644,348 1,080,526 - 1,155,387 -
-------------- ------------ ------------ ----------- ----------- ------------ ------------
CHANGE IN NET ASSETS
AVAILABLE FOR BENEFITS
DURING YEAR 293,221,633 10,332,835 (108,907) 15,507,115 10,607,211 119,010,302 137,873,077
NET ASSETS AVAILABLE
FOR BENEFITS
AT DECEMBER 31, 1992 1,391,497,413 94,514,145 112,342,278 32,934,262 66,189,778 487,079,907 598,437,043
-------------- ------------ ------------ ----------- ----------- ------------ ------------
NET ASSETS AVAILABLE
FOR BENEFITS
AT DECEMBER 31, 1993 $1,684,719,046 $104,846,980 $112,233,371 $48,441,377 $76,796,989 $606,090,209 $736,310,120
============== ============ ============ =========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1994 and 1993
1. Description of the Plan:
The following is a brief description of The Southern Company Employee
Savings Plan (the "Plan"), formerly The Employee Savings Plan for the Southern
Company System, and the administration thereof and is provided for general
information purposes only. The Plan includes employees, certain former
employees, and retirees of eight subsidiaries of The Southern Company: Alabama
Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power
Company, Savannah Electric and Power Company, Southern Electric International,
Inc., Southern Nuclear Operating Company, Inc., and Southern Company Services,
Inc. (the "Employing Companies"). Participants should refer to the plan
document or the summary plan description for a more complete description of the
Plan's provisions.
Effective March 1, 1976, The Southern Company System (the "Company")
established the Plan for the primary purpose of creating added employee interest
in the affairs of the Company and supplementing retirement and death benefits of
employees. Under the Plan, amounts deducted from compensation or deferred from
compensation by an employee (a "Participant") are contributed to the Plan on the
Participant's behalf and are supplemented by contributions of the Employing
Companies. The Plan was last amended and restated in 1994 to be effective as of
January 1, 1989, in order to incorporate the applicable provisions of The
Internal Revenue Code of 1986, as amended (the "Code") and previous amendments,
as well as, to provide for miscellaneous administrative and design changes and
to clarify certain provisions of the Plan.
The Plan has four investment options available. Each investment fund has
specific guidelines and limitations as to the type of securities eligible for
investment.The primary types of securities eligible for investment by each fund
are: (1) fixed income obligations for the Fixed Income Fund, (2) common or
capital stocks or securities convertible into common or capital stocks of
corporations other than The Southern Company or its subsidiaries for the Equity
Fund, (3) common stock of The Southern Company for The Southern Company Stock
Fund and (4) common stock selected from time to time to comprise Standard and
Poor's Composite Index of 500 Stocks for the S&P 500 Index Fund. In addition,
monies pending investment held by each of the funds described above may be
temporarily invested in short-term, interest-bearing obligations.
Plan Participants also have the right to borrow a portion of their account
balance under the terms of the Plan. Under the terms of the Plan, all loans are
considered to be earmarked investments of the Participant's account, and any
repayment of principal and interest is reinvested in accordance with the
Participant's investment direction in effect on the date of such repayments.
The Savings Plan Committee may direct the Trustee to make a loan or loans
from the Plan to any Participant or beneficiary subject to certain limitations.
All loans bear a rate of interest which remains fixed over the term of the loan
and may be secured only by a Participant's account balance.
The repayment of such loans is made through payroll deductions, although a
Participant may make other arrangements if no payroll deduction is available.
<PAGE>
Investment managers independent of the Trustee (see Note 5) are authorized
to invest the funds of the Equity Fund and the Index Fund in accordance with the
Plan's Trust agreement. During 1993 and 1994, the investment managers were
Lincoln Capital Management, Jundt Associates, Inc. and American National Bank
and Trust Company. Investment manager and certain other plan and trust expenses
are paid by the Employing Companies. The Plan's brokerage fees are included in
the cost of the investments or netted against the sales proceeds.
For accounting and administrative purposes, The Southern Company Stock Fund
has been segregated into the portion representing contributions made by
Participants and the portion representing contributions made by the Employing
Companies. Participants may direct the investment of all of their account
balance except for amounts relating to employer matching contributions which,
under the terms of the Plan, must be invested in The Southern Company Stock
Fund.
2. Accounting Policies:
Basis of Accounting
The accompanying financial statements have been prepared on the accrual
basis of accounting.
Investments
Investments are stated at fair value determined from quoted market price
information. Investment Contracts are reported at contract value. The net
appreciation (depreciation) in fair value of investments in the accompanying
statements of changes in net assets available for benefits reflects the net
difference between the market value and the cost of investments bought during
the year and the net difference between market value and the beginning of the
year market value of assets held, sold, or distributed.
The fair market values of individual assets which represent 5% or more of
the plan's net assets as of December 31, 1994 and 1993 are as follows:
1994 1993
The Southern Company common stock $1,299,493,706 $1,337,838,980
3. Participation:
Generally, all regular full-time, part-time and cooperative education
employees of the Employing Companies are eligible to participate in the Plan
provided that they have completed at least one year of service (in which they
have performed at least 1,000 hours of service). This eligibility requirement
complies with the provisions of the Code and the Employee Retirement Income
Security Act of 1974, as amended.
Subject to the limitations of the Code, a Participant may contribute into
either the Fixed Income Fund, the Equity Fund, The Southern Company Stock Fund
or the S&P 500 Index Fund any whole percentage which is not more than 16% of his
compensation as defined in the Plan ("Voluntary Participant Contribution"). In
addition, a Participant may elect to have his compensation as defined in the
Plan reduced by a whole percentage which is not more than 16% of his
compensation as defined in the Plan, amount to be contributed on his behalf to
his account under the Plan ("Elective Employer Contribution"). A Participant
may not contribute or have contributed on his behalf more than 16% of his
compensation as defined in the Plan in total. Participants must invest equally
in each fund in which they elect to participate.
A Participant may change the percentage he has authorized as his Voluntary
Participant Contribution (or the Elective Employer Contribution made on his
behalf) to another permissible percentage by giving at least sixty days (or such
lesser number of days by the Savings Plan Committee) written notice of such
change.
The Employing Companies contributed on behalf of each of the Participants
in their employ an amount equal to 75% of (a) the Elective Employer Contribution
<PAGE>
made on a Participant's behalf, plus (b) his Voluntary Participant Contribution,
to the extent such contributions, when combined, did not exceed 6% of his
compensation as defined in the Plan ("Employer Matching Contribution"). All
Employer Matching Contributions are invested in The Southern Company Stock Fund.
Participants are immediately vested in their Elective Employer
Contributions, Voluntary Participant Contributions, Employer Matching
Contributions, plus actual earnings thereon.
Elective Employer Contributions for Participants who are defined as
"highly compensated employees" under Section 414(q) of the Code are subject to
additional limitations designed to prohibit discrimination in favor of the
"highly compensated employees." Certain limitations also apply to Voluntary
Participant Contributions and Employer Matching Contributions allocated to
highly compensated employees.
As of December 31, 1994 and 1993, 25,446 and 26,233 employees,
respectively, were participating in the Plan.
Although the Company has not expressed any intent to terminate the Plan,
the Company has the right to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, each Participant's fully vested account balance shall be
distributed to the Participant in a non-discriminatory manner, as soon as
practicable after such termination.
4. Contributions:
Contributions to the Plan by the Employing Companies and their respective
Participants for the years ended December 31, 1994 and 1993, are set forth
below:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1994 Contributions
Company Participants' Total
Alabama Power Company....................................... $11,131,568 $18,538,528 $29,670,096
Georgia Power Company....................................... 18,472,108 29,904,712 48,376,820
Gulf Power Company.......................................... 2,072,711 3,754,217 5,826,928
Mississippi Power Company................................... 2,257,013 3,884,010 6,141,023
Savannah Electric and Power Company......................... 853,518 1,468,600 2,322,118
Southern Company Services, Inc.............................. 5,059,619 8,160,072 13,219,691
Southern Electric International, Inc........................ 375,550 603,218 978,768
Southern Nuclear Operating Company, Inc..................... 2,583,952 4,301,850 6,885,802
----------- ----------- ------------
$42,806,039 $70,615,207 $113,421,246
=========== =========== ============
1993 Contributions
Company Participants' Total
Alabama Power Company ...................................... $10,612,827 $17,673,764 $28,286,591
Georgia Power Company....................................... 17,930,357 29,006,156 46,936,513
Gulf Power Company.......................................... 1,986,148 3,518,432 5,504,580
Mississippi Power Company................................... 2,182,103 3,679,763 5,861,866
Savannah Electric and Power Company......................... 942,264 1,659,969 2,602,233
Southern Company Services, Inc.............................. 4,902,675 7,953,210 12,855,885
Southern Electric International, Inc........................ 318,324 522,244 840,568
Southern Nuclear Operating Company, Inc..................... 2,539,564 4,236,913 6,776,477
----------- ----------- ------------
$41,414,262 $68,250,451 $109,664,713
=========== =========== ============
</TABLE>
<PAGE>
5. Trust Agreement:
Wachovia Bank of Georgia, N.A., as Trustee of the Plan, receives, holds and
administers the Plan's assets.
Expenses incurred by the Trustee in the performance of its duties and fees
due the Trustee for trustee and investment manager services rendered under the
trust agreement are paid by the Employing Companies and are not charged to the
Plan. Brokerage expenses incurred by the Plan are accounted for as adjustments
to cost or adjustments to sales proceeds of the corresponding asset, whichever
is applicable. Transfer taxes and other expenses incurred by the Plan in
connection with the acquisition or holding of any property are charged to the
Plan.
6. Tax Status:
While the Plan has received a determination letter dated May 29, 1990, a
favorable determination letter has not been received with respect to the
restated Plan and subsequent amendments. The Company filed the amended and
restated Plan with the Internal Revenue Service on March 31, 1995 to obtain
the continued tax qualified status of the Plan. It is the opinion of Plan
management that the Plan, as amended and restated, is currently in compliance
with applicable provisions of the Code and accordingly, no provision for
federal income taxes has been made in the accompanying financial statements.
Employer contributions and income of the Plan are not taxable to
Participants until withdrawals or distributions are made.
7. Reconciliation to the Form 5500:
As of December 31, 1994 and 1993, the Plan had approximately $23,819,529
and $12,049,636, respectively, of pending distributions to participants who
elected to withdraw from the Plan. These amounts are recorded as a liability in
the Plan's Form 5500; however, these amounts are not recorded as a liability in
the accompanying statements of net assets available for benefits in accordance
with generally accepted accounting principles.
The following table reconciles net assets available for benefits for the
years ended December 31, 1994 and 1993 per the financial statements to the Form
5500 to be filed by the Company:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Net Assets Available
Benefits Distributions for Benefits
Payable to Participants 1994 1993
------- --------------- ----- ----
Per financial statements $ 0 $116,228,235 $1,650,808,548 $1,684,719,046
Accrued benefit payments 23,819,529 23,819,529 (23,819,529) (12,049,636)
Reversal of 1993 accrual
for benefit payments - (12,049,636) - -
----------- ----------- -------------- --------------
Per Form 5500 $23,819,529 $127,998,128 $1,626,989,019 $1,672,669,410
=========== ============ ============== ==============
</TABLE>
<PAGE>
8. Event Subsequent to Date of Audit Report:
Effective July 3, 1995, Merrill Lynch Pierce Fenner & Smith (Merrill Lynch)
will become Trustee of the Plan and will assume all record keeping and asset
management duties of the Plan. The Plan will offer seven different investment
options in addition to the company match fund. Participants will be able to
direct their investments into one of the following Merrill Lynch investment
options: Retirement Preservation Trust, Core Fixed Income Portfolio, Equity
Index Trust, International Equity Fund, Special Value Fund, Fully Managed
Portfolio, and Global Allocation Fund. The Company match will continue to be
non-participant directed and will be invested in The Southern Company common
stock fund.
<PAGE>
<TABLE>
<CAPTION>
Schedule I
Page 1 of 6
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1994
<S> <C> <C> <C> <C>
Description of Investment Including Maturity Date,
Identity of Issue, Borrower Rate of Interest, Collateral, Par or Maturity Value,
(a) (b) Lessor, or Similar Party (c) Number of Shares (d)Cost (e) Current Value
--------------------------- -------------------------------------------------- ---- -------------
FIXED INCOME FUND:
Temporary Investments--
* Wachovia Bank Diversified Trust Fund Authorized Demand Notes,
Short Term Investment Fund Variable Rate $1 Unit Value $37,764,434 $37,764,434
----------- -----------
Certificates of Deposit--
AmSouth Bank Birmingham, AL.................... CD, 6.65%, due 09/23/96 3,000,000 3,000,000
Central Fidelity Richmond, VA.................. CD, 4.20%, due 02/01/96 2,000,000 2,000,000
Central Fidelity Richmond, VA ................. CD, 4.50%, due 02/12/96 3,000,000 3,000,000
Citibank Sioux Falls, SD....................... CD, 6.06%, due 10/16/95 3,000,000 3,000,000
First Alabama Bank Montgomery, AL.............. CD, 6.20%, due 06/03/96 2,000,000 2,000,000
First Deposit National Bank Tilton, NH......... CD, 3.60%, due 01/30/95 2,000,000 2,000,000
First National Bank Akron, OH.................. CD, 4.75%, due 02/26/96 5,000,000 5,000,000
First USA Bank Wilmington, DE.................. CD, 4.55%, due 03/29/95 1,000,000 1,000,000
First USA Bank Wilmington, DE.................. CD, 4.65%, due 08/07/95 1,000,000 1,000,000
Mercantile Safe & Deposit Trust Baltimore, MD.. CD, 4.30%, due 01/12/96 2,000,000 2,000,000
Mercantile Safe & Deposit Trust Baltimore, MD.. CD, 4.20%, due 12/28/95 2,000,000 2,000,000
Mercantile Safe & Deposit Trust Baltimore, MD.. CD, 5.00%, due 03/11/96 1,000,000 1,000,000
National City Bank of Kentucky Louisville, KY.. CD, 7.43%, due 12/02/96 3,000,000 3,000,000
Old Kent Grand Rapids, MI...................... CD, 4.55%, due 02/09/96 1,000,000 1,000,000
Old Kent Grand Rapids, MI...................... CD, 4.22%, due 07/10/95 1,000,000 1,000,000
Old Kent Grand Rapids, MI...................... CD, 4.18%, due 01/24/96 2,000,000 2,000,000
Old Kent Grand Rapids, MI...................... CD, 7.70%, due 12/30/96 1,000,000 1,000,000
AmSouth Bank Birmingham, AL.................... CD, 4.20%, due 12/11/95 1,000,000 1,000,000
AmSouth Bank Birmingham, AL.................... CD, 4.20%, due 01/24/96 1,000,000 1,000,000
Colonial Bank USA Claymont, DE................. CD, 5.15%, due 01/30/95 3,000,000 3,000,000
Compass Bank Birmingham, AL.................... CD, 5.55%, due 02/08/95 2,000,000 2,000,000
First Alabama Bank Birmingham, AL.............. CD, 4.05%, due 02/08/95 3,000,000 3,000,000
First Deposit National Bank Tilton, NH......... CD, 7.48%, due 12/21/95 3,000,000 3,000,000
Sanwa Bank Los Angeles, CA..................... CD, 5.30%, due 01/26/95 2,500,000 2,500,000
Signet Bank Baltimore, MD...................... CD, 5.45%, due 01/30/95 2,000,000 2,000,000
SouthTrust Bank Birmingham, AL................. CD, 5.60%, due 02/07/95 3,000,000 3,000,000
West One Boise, ID............................. CD, 7.20%, due 12/12/95 2,000,000 2,000,000
West One Boise, ID............................. CD, 4.28%, due 03/08/95 2,000,000 2,000,000
West One Salt Lake City, UT.................... CD, 5.70%, due 04/19/95 1,000,000 1,000,000
60,500,000 60,500,000
Guaranteed Investment Contracts
Life of Virginia $1,700,296 Par Floating Rate,
Guaranteed Interest Contract,
No Maturity Date, Pays Monthly 1,700,296 1,700,296
----------- -----------
Total Fixed Income Fund $99,964,730 $99,964,730
=========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Schedule I
Page 2 of 6
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1994
<S> <C> <C> <C> <C>
Description of Investment Including Maturity Date,
Identity of Issue, Borrower Rate of Interest, Collateral, Par or Maturity Value,
(a) (b) Lessor, or Similar Party (c) Number of Shares (d)Cost (e) Current Value
-------------------------- -------------------------------------------------- ---- -------------
EQUITY FUND:
Temporary Investments:
* Wachovia Bank Diversified Trust Fund Authorized Demand Notes,
Short Term Investment Fund Variable Rate $1 Unit Value $6,121,923 $6,121,923
---------- ----------
Common Stocks--
Automotive
General Motors Corporation.......................... 35,000 1,035,994 1,343,125
---------- ----------
Banks
Chemical Bank Corporation........................... 24,100 838,393 864,588
Norwest Corp........................................ 11,800 270,664 275,825
---------- ----------
1,109,057 1,140,413
---------- ----------
Beverages
Coca Cola Co........................................ 45,800 1,906,640 2,358,700
Pepsico, Inc........................................ 34,800 1,228,066 1,261,500
---------- ----------
3,134,706 3,620,200
---------- ----------
Chemicals
Morton International Inc............................ 24,800 580,365 706,800
---------- ----------
Computer Equipment
Cisco System, Inc................................... 42,000 1,300,348 1,475,250
Hewlett Packard Co.................................. 9,000 712,766 898,875
Honeywell, Inc...................................... 7,800 273,410 245,700
---------- ----------
2,286,524 2,619,825
---------- ----------
Computer - Data Processing Services
Automatic Data Processing, Inc...................... 32,500 1,178,402 1,901,250
CUC International Inc............................... 32,300 964,809 1,073,975
EMC Corporation..................................... 30,600 553,459 672,251
First Financial Mgmt Corporation.................... 4,500 174,949 277,313
Microsoft Corporation............................... 42,650 1,149,949 2,606,981
Oracle System Corporation........................... 59,300 796,850 2,616,613
Pyxis Corporation................................... 45,700 1,357,746 868,300
Sybase Inc.......................................... 38,900 1,306,521 2,022,800
---------- ----------
7,482,685 12,039,483
---------- ----------
Cosmetics, Toiletries, Soap
Colgate Palmolive Co................................ 5,600 294,568 354,900
Gillette Co......................................... 29,200 1,437,039 1,810,400
---------- ----------
3,059,951 3,909,888
---------- ----------
Drugs, Medical
Abbott Labs......................................... 24,800 748,577 809,100
American Home Products Corporation.................. 3,600 230,797 225,900
Lilly Eli & Co...................................... 7,400 434,131 485,625
Merck & Co Inc...................................... 11,600 473,814 442,250
Pfizer Inc.......................................... 18,400 1,229,247 1,421,400
United Healthcare Corporation....................... 41,900 1,705,508 1,890,738
Warner Lambert Co................................... 1,400 105,142 107,800
---------- ----------
4,927,216 5,382,813
---------- ----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Schedule I
Page 3 of 6
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<S> <C> <C> <C> <C>
Description of Investment Including Maturity Date,
Identity of Issue, Borrower Rate of Interest, Collateral, Par or Maturity Value,
(a) (b) Lessor, or Similar Party (c) Number of Shares (d)Cost (e) Current Value
------------------------ ---------------------------------------------------- ---- -------------
Electrical Equipment
AMP, Inc................................................. 10,700 641,628 778,425
DSC Communications Corporation........................... 48,500 1,529,574 1,739,937
General Electric Co...................................... 56,500 2,168,588 2,881,500
General Instrument Corporation........................... 37,100 899,033 1,113,000
--------- ---------
5,238,823 6,512,862
--------- ---------
Electronics
Intel Corporation....................................... 56,100 3,051,493 3,583,387
Motorola, Inc........................................... 42,000 1,196,300 2,436,000
Sensormatic Electronics, Corporation.................... 43,100 1,244,067 1,551,600
--------- ---------
5,491,860 7,570,987
--------- ---------
Entertainment - Leisure Related
Disney Walt Co.......................................... 15,200 695,050 699,200
--------- ----------
Financial Services - Non-Banking
Reuters Holdings........................................ 11,600 255,813 508,950
AMBAC Inc............................................... 3,000 97,455 111,750
Federal Home Loan Mortgage Corp......................... 29,700 969,445 1,499,850
Federal National Mortgage Association................... 23,200 1,574,652 1,690,700
--------- ---------
2,897,365 3,811,250
--------- ---------
Foods - Processed
Campbell Soup Company................................... 2,700 114,318 118,800
Kellogg Company......................................... 4,000 219,518 232,500
Ralston Purina Company.................................. 2,700 111,538 120,488
Unilever Netherlands.................................... 2,400 240,423 279,600
--------- ---------
685,797 751,388
--------- ---------
Food Service
Boston Chicken, Inc..................................... 41,100 811,461 714,112
Brinker International Inc............................... 57,825 843,964 1,048,078
Cracker Barrel Old Country Store Inc.................... 49,950 741,451 924,075
McDonalds Corp.......................................... 41,100 799,295 1,202,175
--------- ---------
3,196,171 3,888,440
--------- ---------
Household Appliances and Supplies
Staples, Inc............................................ 94,500 1,368,372 2,338,875
--------- ---------
Insurance
American International Group Inc......................... 19,500 1,196,784 1,911,000
TIG Holdings Inc......................................... 9,300 231,999 174,375
--------- ---------
1,428,783 2,085,375
--------- ---------
Medical Supplies and Services
Columbia/HCA Healthcare Corp............................. 10,700 448,601 390,550
Coventry Corp............................................ 37,100 815,066 908,950
Healthsource, Inc........................................ 15,500 579,390 633,562
Johnson & Johnson........................................ 11,200 554,966 613,200
Oxford Health Plans, Inc................................. 26,100 1,446,483 2,068,425
--------- ---------
3,844,506 4,614,687
--------- ---------
Miscellaneous
Rogers Cantel Mobile Communications Inc.................. 47,100 1,260,696 1,373,248
--------- ---------
</TABLE>
<PAGE>
Schedule I
Page 4 of 6
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1994
<S> <C> <C> <C> <C>
Description of Investment Including Maturity Date,
Identity of Issue, Borrower Rate of Interest, Collateral, Par or Maturity Value,
(a) (b) Lessor, or Similar Party (c) Number of Shares (d)Cost (e) Current Value
------------------------ ----------------------------------------------------- ------ ----------------
Oil and Gas - Domestic
Renaissance Energy Limited............................... 18,500 429,792 357,753
--------- ----------
Oil and Gas - Exploration and Production
Talisman Energy Inc...................................... 20,800 441,768 348,483
Tarragon Oil & Gas....................................... 9,100 126,829 99,645
--------- ---------
568,597 448,128
--------- ----------
Paper and Paper Products
Minnesota Mining & Manufacturing Co...................... 19,200 912,827 1,024,800
--------- ----------
Retail Trade - General Merchandise
Best Buy Inc............................................. 62,200 1,312,089 1,943,750
May Dept. Stores Co...................................... 13,500 528,421 455,625
Wal Mart Stores Inc......................................163,100 3,800,436 3,465,875
--------- ----------
5,640,946 5,865,250
--------- ----------
Retail Trade - Specialty
Autozone, Inc............................................ 60,700 951,135 1,471,975
Duracell International, Inc.............................. 13,300 395,670 576,887
Home Depot, Inc.......................................... 68,882 2,076,147 3,168,572
Lowes Companies Inc...................................... 64,400 1,428,749 2,237,900
Office Depot Inc......................................... 51,975 672,732 1,223,024
OfficeMax Inc............................................ 51,200 1,239,295 1,356,800
PetSmart................................................. 42,500 1,235,216 1,466,250
Toys R Us................................................ 21,600 801,510 661,500
--------- ----------
8,800,454 12,162,908
--------- ----------
Retail Trade - Drugs
Starbucks Corp........................................... 30,800 865,623 847,000
--------- ----------
Services - Non-Financial
Biogen Ind............................................... 49,000 2,007,379 2,045,750
Block H & R Inc.......................................... 52,400 2,265,050 1,945,350
Carnival Cruise Lines Inc................................ 19,400 334,135 412,250
Informix Corp............................................ 68,800 1,166,411 2,210,200
--------- ----------
5,772,975 6,613,550
--------- ----------
Telecommunications Services
Airtouch Communications Inc.............................. 78,900 1,823,903 2,297,962
American Telephone & Telegraph Co........................ 29,500 1,564,095 1,482,375
Ericsson L M Telephone Co................................ 37,300 1,859,605 2,056,163
LIN Television Corp...................................... 8,698 114,763 197,879
MCI Communications Corporation........................... 29,400 676,179 540,225
Paging Network Inc....................................... 19,100 607,146 649,400
Tel & Data System Inc.................................... 14,300 592,712 659,588
Vodafone Group PLC Sponsored American
Depository Receipts.................................... 76,000 1,555,504 2,555,500
--------- ----------
8,793,907 10,439,092
--------- ----------
</TABLE>
<PAGE>
Schedule I
Page 5 of 6
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1994
<S> <C> <C> <C> <C>
Description of Investment Including Maturity Date,
Identity of Issue, Borrower Rate of Interest, Collateral, Par or Maturity Value,
(a) (b) Lessor, or Similar Party (c) Number of Shares (d)Cost (e) Current Value
------------------------ --------------------------------------------------- ----- -------------
Video, Broadcasting, Cable
Lin Broadcasting Corp.................................... 17,396 1,257,997 2,322,366
----------- ------------
Wholesale Trade - Specialty
ALCO Std. Corp........................................... 3,600 223,760 225,900
----------- ------------
Total Equity Investments 82,990,799 104,715,606
----------- ------------
Total Equity Fund......................................... $89,112,722 $110,837,529
=========== ============
</TABLE>
<PAGE>
Schedule I
Page 6 of 6
<TABLE>
<CAPTION>
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1994
<S> <C> <C> <C> <C>
Description of Investment Including Maturity Date,
Identity of Issue, Borrower Rate of Interest, Collateral, Par or Maturity Value,
(a) (b) Lessor, or Similar Party (c) Number of Shares (d)Cost (e)Current Value
------------------------ ----------------------------------------------------- ------ ---------------
THE SOUTHERN COMPANY STOCK FUND--
PARTICIPANTS' PORTION:
Temporary Investments--
* Wachovia Bank Diversified Trust Fund Authorized Demand Notes,
Short Term Investment Fund Variable Rate $1 Unit Value $ 4,775,531 $ 4,775,531
------------- --------------
Common Stocks--
* The Southern Company............................... 30,160,625 451,548,022 603,212,501
-------------- --------------
Total Southern Company Stock Fund--
Participants' Portion............................... 456,323,553 607,988,032
-------------- --------------
THE SOUTHERN COMPANY STOCK FUND--COMPANY PORTION:
Temporary Investments--
* Wachovia Bank Diversified Trust Fund Authorized Demand Notes,
Short Term Investment Fund Variable Rate $1 Unit Value 2,107,838 2,107,838
-------------- --------------
Common Stock--
* The Southern Company............................ 34,819,360 484,945,507 696,281,205
-------------- --------------
Total Southern Company Stock Fund--
Company Portion..................................... 487,053,345 698,389,043
-------------- --------------
Total Southern Company Stock Fund $ 943,376,898 $1,306,377,075
-------------- --------------
S&P 500 INDEX FUND:
Temporary Investments--
* Wachovia Bank Diversified Trust Fund Authorized Demand Notes,
Short Term Investment Fund Variable Rate, $1 Unit Value $832,652 $ 832,652
-------------- --------------
Mutual Fund Equity Investments--
American National Bank Equity Index Fund 380,736 49,503,021 54,285,339
-------------- --------------
Total S&P 500 Index Fund $ 50,335,673 $ 55,117,991
============== ==============
* Loans Due From Participants: (Interest rates
vary from 6% to 7.5%) $ 78,091,627 $ 78,091,627
-------------- --------------
TOTAL INVESTMENTS OF ALL FUNDS $1,260,881,649 $1,650,388,952
============== ==============
</TABLE>
(NOTE) The last sale price (New York Stock Exchange composite
transactions) for The Southern Company common stock on June 9, 1995
was $21.875 as compared to a price of $20.00 on December 31, 1994.
* Represents a party in interest to the Plan
The accompanying notes are an integral part of this schedule.
<PAGE>
Schedule II
THE SOUTHERN COMPANY EMPLOYEE SAVINGS PLAN
Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(h)Current
(b)Description of asset value of asset
(a)Identity of (include interest rate and (c)Purchase (d)Selling (e) Lease (f)Expense (g)Cost of on transaction (i)Net gain
party involved maturity in case of a loan) price price rental incurred asset date or (loss)
-------------- --------------------------- -------- -------- ------ -------- ------- -------------- ---------
Wachovia Bank Diversified
Wachovia Bank TrustFund Short-Term
of Georgia, N.A. Investment Fund,
Collective Investment,
Variable Rate,
payable upon demand
507 transactions $320,946,748 - - - - - -
374 transactions - $332,808,366 - - - - -
The Southern
Company Common Stock
82 transactions 146,629,018 - - 84,008 - - -
60 transactions - 113,597,050 - - 97,647,763 113,597,050 15,949,287
24 transactions - - - - 40,146,330 53,138,451 12,992,121
</TABLE>
The accompanying notes are an integral part of this schedule.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Savings Plan Committee has duly caused this annual report to be signed by the
undersigned thereunto duly authorized.
THE SOUTHERN COMPANY
EMPLOYEE SAVINGS PLAN
/s/ C. Alan Martin
C. Alan Martin, Chairman
Savings Plan Committee
June 23, 1995
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 9, 1995, included in this annual report of
The Southern Company Employee Savings Plan on Form 11-K for the year ended
December 31, 1994, into the Plan's previously filed Registration Statement No.
33-23152.
/s/ Arthur Andersen LLP
Arthur Andersen LLP
Atlanta, Georgia
June 23, 1995
