| Summarized Financial Information of Capital Holdings |
Summarized Financial Information of NEECH
NEECH, a 100% owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL. NEECH’s debentures and junior subordinated debentures including those that were registered pursuant to the Securities Act of 1933, as amended, are fully and unconditionally guaranteed by NEE. Condensed consolidating financial information is as follows:
Condensed Consolidating Statements of Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | 2017 | | 2016 | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | | | | | | | (millions) | | | | | | | Operating revenues | $ | — |
| | $ | 1,327 |
| | $ | 3,077 |
| | $ | 4,404 |
| | $ | — |
| | $ | 1,070 |
| | $ | 2,747 |
| | $ | 3,817 |
| Operating expenses - net | (4 | ) | | (974 | ) | | (2,141 | ) | | (3,119 | ) | | (5 | ) | | (720 | ) | | (1,923 | ) | | (2,648 | ) | Interest expense | (1 | ) | | (309 | ) | | (120 | ) | | (430 | ) | | — |
| | (485 | ) | | (117 | ) | | (602 | ) | Equity in earnings of subsidiaries | 787 |
| | — |
| | (787 | ) | | — |
| | 586 |
| | — |
| | (586 | ) | | — |
| Other income - net | — |
| | 219 |
| | 19 |
| | 238 |
| | — |
| | 180 |
| | 16 |
| | 196 |
| Income before income taxes | 782 |
| | 263 |
| | 48 |
| | 1,093 |
| | 581 |
| | 45 |
| | 137 |
| | 763 |
| Income tax expense (benefit) | (11 | ) | | (12 | ) | | 312 |
| | 289 |
| | 41 |
| | (100 | ) | | 278 |
| | 219 |
| Net income (loss) | 793 |
| | 275 |
| | (264 | ) | | 804 |
| | 540 |
| | 145 |
| | (141 | ) | | 544 |
| Less net income attributable to noncontrolling interests | — |
| | 11 |
| | — |
| | 11 |
| | — |
| | 4 |
| | — |
| | 4 |
| Net income (loss) attributable to NEE | $ | 793 |
| | $ | 264 |
| | $ | (264 | ) | | $ | 793 |
| | $ | 540 |
| | $ | 141 |
| | $ | (141 | ) | | $ | 540 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | 2017 | | 2016 | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | | | | | | | (millions) | | | | | | | Operating revenues | $ | — |
| | $ | 2,789 |
| | $ | 5,588 |
| | $ | 8,377 |
| | $ | — |
| | $ | 2,605 |
| | $ | 5,046 |
| | $ | 7,651 |
| Operating expenses - net | (10 | ) | | (823 | ) | | (3,854 | ) | | (4,687 | ) | | (10 | ) | | (1,725 | ) | | (3,513 | ) | | (5,248 | ) | Interest expense | (1 | ) | | (549 | ) | | (240 | ) | | (790 | ) | | (1 | ) | | (882 | ) | | (228 | ) | | (1,111 | ) | Equity in earnings of subsidiaries | 2,349 |
| | — |
| | (2,349 | ) | | — |
| | 1,224 |
| | — |
| | (1,224 | ) | | — |
| Other income - net | 1 |
| | 446 |
| | 12 |
| | 459 |
| | 1 |
| | 327 |
| | 39 |
| | 367 |
| Income (loss) before income taxes | 2,339 |
| | 1,863 |
| | (843 | ) | | 3,359 |
| | 1,214 |
| | 325 |
| | 120 |
| | 1,659 |
| Income tax expense (benefit) | (37 | ) | | 438 |
| | 563 |
| | 964 |
| | 21 |
| | (70 | ) | | 510 |
| | 461 |
| Net income (loss) | 2,376 |
| | 1,425 |
|
| (1,406 | ) |
| 2,395 |
|
| 1,193 |
| | 395 |
|
| (390 | ) |
| 1,198 |
| Less net income attributable to noncontrolling interests | — |
| | 19 |
| | — |
| | 19 |
| | — |
| | 5 |
| | — |
| | 5 |
| Net income (loss) attributable to NEE | $ | 2,376 |
| | $ | 1,406 |
| | $ | (1,406 | ) | | $ | 2,376 |
| | $ | 1,193 |
| | $ | 390 |
| | $ | (390 | ) | | $ | 1,193 |
|
——————————————— | | (a) | Represents primarily FPL and consolidating adjustments. |
Condensed Consolidating Statements of Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | 2017 | | 2016 | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | | | | | | | (millions) | | | | | | | Comprehensive income (loss) attributable to NEE | $ | 836 |
| | $ | 297 |
| | $ | (297 | ) | | $ | 836 |
| | $ | 571 |
| | $ | 172 |
| | $ | (172 | ) | | $ | 571 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | 2017 | | 2016 | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | NEE (Guarantor) | | NEECH | | Other(a) | | NEE Consoli- dated | | | | | | | | (millions) | | | | | | | Comprehensive income (loss) attributable to NEE | $ | 2,449 |
| | $ | 1,472 |
| | $ | (1,472 | ) | | $ | 2,449 |
| | $ | 1,278 |
| | $ | 482 |
| | $ | (482 | ) | | $ | 1,278 |
|
——————————————— | | (a) | Represents primarily FPL and consolidating adjustments. |
Condensed Consolidating Balance Sheets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2017 | | December 31, 2016 | | NEE (Guaran- tor) | | NEECH | | Other(a) | | NEE Consoli- dated | | NEE (Guaran- tor) | | NEECH | | Other(a) | | NEE Consoli- dated | | | | | | | | (millions) | | | | | | | PROPERTY, PLANT AND EQUIPMENT | | | | | | | | | | | | | | | | Electric plant in service and other property | $ | 28 |
| | $ | 40,257 |
| | $ | 50,419 |
| | $ | 90,704 |
| | $ | 28 |
| | $ | 38,671 |
| | $ | 48,314 |
| | $ | 87,013 |
| Accumulated depreciation and amortization | (19 | ) | | (8,342 | ) | | (12,687 | ) | | (21,048 | ) | | (18 | ) | | (7,778 | ) | | (12,305 | ) | | (20,101 | ) | Total property, plant and equipment - net | 9 |
| | 31,915 |
| | 37,732 |
| | 69,656 |
| | 10 |
| | 30,893 |
| | 36,009 |
| | 66,912 |
| CURRENT ASSETS | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Cash and cash equivalents | 1 |
| | 607 |
| | 34 |
| | 642 |
| | 1 |
| | 1,258 |
| | 33 |
| | 1,292 |
| Receivables | 281 |
| | 1,476 |
| | 723 |
| | 2,480 |
| | 88 |
| | 1,615 |
| | 736 |
| | 2,439 |
| Other | 3 |
| | 1,323 |
| | 1,499 |
| | 2,825 |
| | 2 |
| | 1,877 |
| | 1,799 |
| | 3,678 |
| Total current assets | 285 |
| | 3,406 |
| | 2,256 |
| | 5,947 |
| | 91 |
| | 4,750 |
| | 2,568 |
| | 7,409 |
| OTHER ASSETS | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Investment in subsidiaries | 25,747 |
| | — |
| | (25,747 | ) | | — |
| | 24,323 |
| | — |
| | (24,323 | ) | | — |
| Other | 834 |
| | 9,869 |
| | 6,584 |
| | 17,287 |
| | 867 |
| | 8,992 |
| | 5,813 |
| | 15,672 |
| Total other assets | 26,581 |
| | 9,869 |
| | (19,163 | ) | | 17,287 |
| | 25,190 |
| | 8,992 |
| | (18,510 | ) | | 15,672 |
| TOTAL ASSETS | $ | 26,875 |
| | $ | 45,190 |
| | $ | 20,825 |
| | $ | 92,890 |
| | $ | 25,291 |
| | $ | 44,635 |
| | $ | 20,067 |
| | $ | 89,993 |
| CAPITALIZATION | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Common shareholders' equity | $ | 25,926 |
| | $ | 8,505 |
| | $ | (8,505 | ) | | $ | 25,926 |
| | $ | 24,341 |
| | $ | 7,699 |
| | $ | (7,699 | ) | | $ | 24,341 |
| Noncontrolling interests | — |
| | 950 |
| | — |
| | 950 |
| | — |
| | 990 |
| | — |
| | 990 |
| Long-term debt | — |
| | 20,304 |
| | 10,088 |
| | 30,392 |
| | — |
| | 18,112 |
| | 9,706 |
| | 27,818 |
| Total capitalization | 25,926 |
| | 29,759 |
| | 1,583 |
| | 57,268 |
| | 24,341 |
| | 26,801 |
| | 2,007 |
| | 53,149 |
| CURRENT LIABILITIES | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Debt due within one year | — |
| | 2,420 |
| | 1,712 |
| | 4,132 |
| | — |
| | 2,237 |
| | 785 |
| | 3,022 |
| Accounts payable | 1 |
| | 1,100 |
| | 713 |
| | 1,814 |
| | 1 |
| | 2,668 |
| | 778 |
| | 3,447 |
| Other | 306 |
| | 1,214 |
| | 1,484 |
| | 3,004 |
| | 231 |
| | 2,624 |
| | 1,595 |
| | 4,450 |
| Total current liabilities | 307 |
| | 4,734 |
| | 3,909 |
| | 8,950 |
| | 232 |
| | 7,529 |
| | 3,158 |
| | 10,919 |
| OTHER LIABILITIES AND DEFERRED CREDITS | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Asset retirement obligations | — |
| | 868 |
| | 1,977 |
| | 2,845 |
| | — |
| | 816 |
| | 1,920 |
| | 2,736 |
| Deferred income taxes | 16 |
| | 3,538 |
| | 8,548 |
| | 12,102 |
| | 82 |
| | 3,002 |
| | 8,017 |
| | 11,101 |
| Other | 626 |
| | 6,291 |
| | 4,808 |
| | 11,725 |
| | 636 |
| | 6,487 |
| | 4,965 |
| | 12,088 |
| Total other liabilities and deferred credits | 642 |
| | 10,697 |
| | 15,333 |
| | 26,672 |
| | 718 |
| | 10,305 |
| | 14,902 |
| | 25,925 |
| COMMITMENTS AND CONTINGENCIES |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| TOTAL CAPITALIZATION AND LIABILITIES | $ | 26,875 |
| | $ | 45,190 |
| | $ | 20,825 |
| | $ | 92,890 |
| | $ | 25,291 |
| | $ | 44,635 |
| | $ | 20,067 |
| | $ | 89,993 |
|
| | (a) | Represents primarily FPL and consolidating adjustments. |
Condensed Consolidating Statements of Cash Flows | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | 2017 | | 2016 | | NEE (Guaran- tor) | |
NEECH | | Other(a) | | NEE Consoli- dated | | NEE (Guaran- tor) | |
NEECH | | Other(a) | | NEE Consoli- dated | | | | | | | | (millions) | | | | | | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 992 |
| | $ | 1,200 |
| | $ | 973 |
| | $ | 3,165 |
| | $ | 809 |
| | $ | 1,084 |
| | $ | 1,377 |
| | $ | 3,270 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| Capital expenditures, independent power and other investments and nuclear fuel purchases | — |
| | (4,195 | ) | | (2,742 | ) | | (6,937 | ) | | — |
| | (3,866 | ) | | (2,200 | ) | | (6,066 | ) | Proceeds from sale of the fiber-optic telecommunications business | — |
| | 1,482 |
| | — |
| | 1,482 |
| | — |
| | — |
| | — |
| | — |
| Capital contributions from NEE | (45 | ) | | — |
| | 45 |
| | — |
| | (13 | ) | | — |
| | 13 |
| | — |
| Sale of independent power and other investments of NEER | — |
| | 42 |
| | — |
| | 42 |
| | — |
| | 396 |
| | — |
| | 396 |
| Proceeds from sale or maturity of securities in special use funds and other investments | — |
| | 518 |
| | 901 |
| | 1,419 |
| | — |
| | 530 |
| | 1,079 |
| | 1,609 |
| Purchases of securities in special use funds and other investments | — |
| | (582 | ) | | (949 | ) | | (1,531 | ) | | — |
| | (534 | ) | | (1,120 | ) | | (1,654 | ) | Proceeds from sales of noncontrolling interests in NEP | — |
| | — |
| | — |
| | — |
| | — |
| | 303 |
| | — |
| | 303 |
| Other - net | 4 |
| | (14 | ) | | 26 |
| | 16 |
| | — |
| | (50 | ) | | 25 |
| | (25 | ) | Net cash used in investing activities | (41 | ) | | (2,749 | ) | | (2,719 | ) | | (5,509 | ) | | (13 | ) | | (3,221 | ) | | (2,203 | ) | | (5,437 | ) | CASH FLOWS FROM FINANCING ACTIVITIES | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Issuances of long-term debt | — |
| | 2,572 |
| | 199 |
| | 2,771 |
| | — |
| | 2,509 |
| | — |
| | 2,509 |
| Retirements of long-term debt | — |
| | (1,850 | ) | | (35 | ) | | (1,885 | ) | | — |
| | (963 | ) | | (33 | ) | | (996 | ) | Net change in commercial paper | — |
| | 1,115 |
| | 732 |
| | 1,847 |
| | — |
| | 701 |
| | 307 |
| | 1,008 |
| Proceeds from other short-term debt | — |
| | — |
| | 200 |
| | 200 |
| | — |
| | — |
| | 500 |
| | 500 |
| Issuances of common stock - net | 25 |
| | — |
| | — |
| | 25 |
| | 43 |
| | — |
| | — |
| | 43 |
| Dividends on common stock | (920 | ) | | — |
| | — |
| | (920 | ) | | (803 | ) | | — |
| | — |
| | (803 | ) | Contributions from (dividends to) NEE | — |
| | (637 | ) | | 637 |
| | — |
| | — |
| | (33 | ) | | 33 |
| | — |
| Other - net | (56 | ) | | (302 | ) | | 14 |
| | (344 | ) | | (36 | ) | | 91 |
| | 10 |
| | 65 |
| Net cash provided by (used in) financing activities | (951 | ) | | 898 |
| | 1,747 |
| | 1,694 |
| | (796 | ) | | 2,305 |
| | 817 |
| | 2,326 |
| Net increase (decrease) in cash and cash equivalents | — |
| | (651 | ) | | 1 |
| | (650 | ) | | — |
| | 168 |
| | (9 | ) | | 159 |
| Cash and cash equivalents at beginning of period | 1 |
| | 1,258 |
| | 33 |
| | 1,292 |
| | — |
| | 546 |
| | 25 |
| | 571 |
| Cash and cash equivalents at end of period | $ | 1 |
| | $ | 607 |
| | $ | 34 |
| | $ | 642 |
| | $ | — |
| | $ | 714 |
| | $ | 16 |
| | $ | 730 |
|
——————————————— | | (a) | Represents primarily FPL and consolidating adjustments. |
|