Employee Retirement Benefits

NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries and sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements.

The components of net periodic (income) cost for the plans are as follows:



	Pension Benefits						Postretirement Benefits						Pension Benefits						Postretirement Benefits
	Three Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016			2017			2016			2017			2016
	(millions)
Service cost	$	17		$	15		$	1		$	—		$	33		$	31		$	1		$	1
Interest cost	21			26			2			4			42			52			4			7
Expected return on plan assets	(68		)	(65		)	—			—			(135		)	(130		)	—			—
Amortization of prior service cost (benefit)	(1		)	1			(2		)	(1		)	(1		)	1			(2		)	(2		)
Special termination benefits	37			—			—			—			38			—			—			—
Postretirement benefits settlement	—			—			1			—			—			—			1			—
Net periodic (income) cost at NEE	$	6		$	(23	)	$	2		$	3		$	(23	)	$	(46	)	$	4		$	6
Net periodic (income) cost at FPL	$	6		$	(14	)	$	1		$	3		$	(12	)	$	(29	)	$	3		$	5

Amendments to Presentation of Retirement Benefits - In March 2017, the FASB issued an accounting standards update that requires certain changes in classification of components of net periodic pension and postretirement benefit costs within the income statement and allows only the service cost component to be eligible for capitalization. This standards update will be applied using the retrospective approach for presentation of the components of net periodic pension and postretirement benefit costs and the prospective approach for capitalization of service cost. NEE and FPL will apply this standards update on January 1, 2018, and are currently evaluating the impact the adoption will have on their consolidated financial statements.