| Equity |
Equity
Earnings Per Share - The reconciliation of NEE's basic and diluted earnings per share attributable to NEE is as follows: | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2017 | | 2016 | | 2017 | | 2016 | | (millions, except per share amounts) | Numerator - net income attributable to NEE | $ | 793 |
| | $ | 540 |
| | $ | 2,376 |
| | $ | 1,193 |
| Denominator: | |
| | |
| | | Weighted-average number of common shares outstanding - basic | 467.9 |
| | 461.3 |
| | 467.7 |
| | 460.9 |
| Equity units, stock options, performance share awards, forward sale agreements and restricted stock(a) | 3.8 |
| | 3.3 |
| | 3.3 |
| | 3.1 |
| Weighted-average number of common shares outstanding - assuming dilution | 471.7 |
| | 464.6 |
| | 471.0 |
| | 464.0 |
| Earnings per share attributable to NEE: | | | | | | Basic | $ | 1.69 |
| | $ | 1.17 |
| | $ | 5.08 |
| | $ | 2.59 |
| Assuming dilution | $ | 1.68 |
| | $ | 1.16 |
| | $ | 5.05 |
| | $ | 2.57 |
|
——————————————— | | (a) | Calculated using the treasury stock method. Performance share awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award. |
Common shares issuable pursuant to equity units, stock options and performance share awards, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were approximately 0.4 million and 0.3 million for the three months ended June 30, 2017 and 2016, respectively, and 6.2 million and 0.2 million for the six months ended June 30, 2017 and 2016, respectively.
Forward Sale Agreements - In November 2016, NEE entered into forward sale agreements with several forward counterparties for 12 million shares of its common stock to be settled on a date or dates to be specified at NEE's direction, no later than November 1, 2017. During the second quarter of 2017, NEE notified the forward counterparties of its election to net share settle all of the shares of its common stock under their respective forward sale agreement. One forward counterparty’s forward sale agreement for 6 million shares settled on June 28, 2017 with NEE issuing 744,599 shares of its common stock. The forward sale price used to determine the net share settlement amount was calculated based on the initial forward sale price of $124.00 per share, less certain adjustments as specified in the forward sale agreements. The remaining forward counterparties’ forward sale agreements are expected to settle in the third quarter of 2017. At June 30, 2017, if NEE had net share settled the remaining forward sale agreements with the forward counterparties using the June 30, 2017 closing price per share for NEE common stock of $140.13, NEE would have issued approximately 820,000 shares of its common stock.
NEP Series A Preferred Unit Purchase Agreement - In June 2017, NEP entered into a Series A Preferred Unit Purchase Agreement to issue and sell, on or before December 31, 2017, $550 million of Series A convertible preferred units representing limited partner interests in NEP (NEP preferred units). When issued, holders of the NEP preferred units will be entitled to receive certain cumulative quarterly distributions from NEP, which may be paid, at NEP’s election and subject to certain limitations, in cash, additional NEP preferred units or a combination thereof. Each holder of NEP preferred units (together with its affiliates) may elect to convert all or any portion of its NEP preferred units into common units of NEP initially on a one-for-one basis, subject to certain adjustments (the conversion rate), at any time after June 20, 2019, subject to certain conditions. NEP may elect to convert all or a portion of the NEP preferred units into NEP common units based on the conversion rate at any time after the first anniversary of the date of issuance of the NEP preferred units being converted if certain conditions are met and subject to certain maximum conversion amounts prior to the third anniversary of the final closing date. Accumulated Other Comprehensive Income (Loss) - The components of AOCI, net of tax, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated Other Comprehensive Income (Loss) |
| Net Unrealized Gains (Losses) on Cash Flow Hedges | | Net Unrealized Gains (Losses) on Available for Sale Securities | | Defined Benefit Pension and Other Benefits Plans | | Net Unrealized Gains (Losses) on Foreign Currency Translation | | Other Comprehensive Loss Related to Equity Method Investee | | Total |
| (millions) | Three Months Ended June 30, 2017 | | Balances, March 31, 2017 | $ | (101 | ) |
| $ | 243 |
|
| $ | (86 | ) |
| $ | (75 | ) |
| $ | (21 | ) |
| $ | (40 | ) | Other comprehensive income (loss) before reclassifications | — |
|
| 26 |
|
| 10 |
|
| 5 |
|
| (1 | ) |
| 40 |
| Amounts reclassified from AOCI | 5 |
| (a) | (1 | ) | (b) | — |
|
| — |
|
| — |
|
| 4 |
| Net other comprehensive income (loss) | 5 |
|
| 25 |
|
| 10 |
|
| 5 |
|
| (1 | ) |
| 44 |
| Less other comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | 1 |
| | — |
| | 1 |
| Balances, June 30, 2017 | $ | (96 | ) |
| $ | 268 |
|
| $ | (76 | ) |
| $ | (71 | ) |
| $ | (22 | ) |
| $ | 3 |
|
——————————————— | | (a) | Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 - Income Statement Impact of Derivative Instruments. |
| | (b) | Reclassified to gains on disposal of investments and other property - net in NEE's condensed consolidated statements of income. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated Other Comprehensive Income (Loss) |
| Net Unrealized Gains (Losses) on Cash Flow Hedges | | Net Unrealized Gains (Losses) on Available for Sale Securities | | Defined Benefit Pension and Other Benefits Plans | | Net Unrealized Gains (Losses) on Foreign Currency Translation | | Other Comprehensive Loss Related to Equity Method Investee | | Total | | (millions) | Three Months Ended June 30, 2016 |
| Balances, March 31, 2016 | $ | (146 | ) | | $ | 181 |
| | $ | (69 | ) | | $ | (52 | ) | | $ | (27 | ) |
| $ | (113 | ) | Other comprehensive income (loss) before reclassifications | — |
| | 17 |
| | — |
| | 8 |
| | (1 | ) |
| 24 |
| Amounts reclassified from AOCI | 13 |
| (a) | (5 | ) | (b) | — |
| | — |
| | — |
|
| 8 |
| Net other comprehensive income (loss) | 13 |
| | 12 |
| | — |
| | 8 |
| | (1 | ) |
| 32 |
| Less other comprehensive income attributable to noncontrolling interests | 1 |
| | — |
| | — |
| | — |
| | — |
| | 1 |
| Balances, June 30, 2016 | $ | (134 | ) | | $ | 193 |
| | $ | (69 | ) | | $ | (44 | ) | | $ | (28 | ) |
| $ | (82 | ) |
——————————————— | | (a) | Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 - Income Statement Impact of Derivative Instruments. |
| | (b) | Reclassified to gains on disposal of investments and other property - net in NEE's condensed consolidated statements of income. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated Other Comprehensive Income (Loss) |
| Net Unrealized Gains (Losses) on Cash Flow Hedges | | Net Unrealized Gains (Losses) on Available for Sale Securities | | Defined Benefit Pension and Other Benefits Plans | | Net Unrealized Gains (Losses) on Foreign Currency Translation | | Other Comprehensive Loss Related to Equity Method Investee | | Total |
| (millions) | Six Months Ended June 30, 2017 | | Balances, December 31, 2016 | $ | (100 | ) | | $ | 225 |
| | $ | (83 | ) | | $ | (90 | ) | | $ | (22 | ) | | $ | (70 | ) | Other comprehensive income before reclassifications | — |
| | 60 |
| | 7 |
| | 21 |
| | — |
| | 88 |
| Amounts reclassified from AOCI | 14 |
| (a) | (17 | ) | (b) | — |
| | — |
| | — |
| | (3 | ) | Net other comprehensive income | 14 |
| | 43 |
| | 7 |
| | 21 |
| | — |
| | 85 |
| Less other comprehensive income attributable to noncontrolling interests | 10 |
| | — |
| | — |
| | 2 |
| | — |
| | 12 |
| Balances, June 30, 2017 | $ | (96 | ) | | $ | 268 |
| | $ | (76 | ) | | $ | (71 | ) | | $ | (22 | ) | | $ | 3 |
|
——————————————— | | (a) | Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 - Income Statement Impact of Derivative Instruments. |
| | (b) | Reclassified to gains on disposal of investments and other property - net in NEE's condensed consolidated statements of income. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated Other Comprehensive Income (Loss) |
| Net Unrealized Gains (Losses) on Cash Flow Hedges | | Net Unrealized Gains (Losses) on Available for Sale Securities | | Defined Benefit Pension and Other Benefits Plans | | Net Unrealized Gains (Losses) on Foreign Currency Translation | | Other Comprehensive Loss Related to Equity Method Investee | | Total | | (millions) | Six Months Ended June 30, 2016 |
| Balances, December 31, 2015 | $ | (170 | ) | | $ | 174 |
| | $ | (62 | ) | | $ | (85 | ) | | $ | (24 | ) | | $ | (167 | ) | Other comprehensive income (loss) before reclassifications | — |
| | 25 |
| | (7 | ) | | 28 |
| | (4 | ) | | 42 |
| Amounts reclassified from AOCI | 36 |
| (a) | (6 | ) | (b) | — |
| | — |
| | — |
| | 30 |
| Net other comprehensive income (loss) | 36 |
| | 19 |
| | (7 | ) | | 28 |
| | (4 | ) | | 72 |
| Less other comprehensive loss attributable to noncontrolling interests | — |
| | — |
| | — |
| | (13 | ) | | — |
| | (13 | ) | Balances, June 30, 2016 | $ | (134 | ) | | $ | 193 |
| | $ | (69 | ) | | $ | (44 | ) | | $ | (28 | ) | | $ | (82 | ) |
——————————————— | | (a) | Reclassified to interest expense in NEE's condensed consolidated statements of income. See Note 2 - Income Statement Impact of Derivative Instruments. |
| | (b) | Reclassified to gains on disposal of investments and other property - net in NEE's condensed consolidated statements of income. |
|