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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On December 22, 2017, tax reform legislation was signed into law which, among other things, reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, NEE, including FPL, performed an analysis to preliminarily revalue its deferred income taxes and included an estimate of changes in the balances in NEE's and FPL's December 31, 2017 financial statements. At December 31, 2017, the revaluation reduced NEE’s net deferred income tax liabilities by approximately $6.5 billion, of which $4.5 billion related to net deferred income tax liabilities at FPL and the remaining $2 billion related to net deferred income tax liabilities at NEER. The $2 billion reduction in NEER’s deferred income tax liabilities increased NEER’s 2017 net income. The $4.5 billion reduction in FPL’s deferred income tax liabilities was recorded as a regulatory liability. While NEE and FPL believe that the provisional tax reform adjustments are reasonable estimates of the effects on its existing deferred taxes, additional analysis and detailed reviews are still being performed to finalize the accounting for the remeasurement of deferred tax assets and liabilities as a result of the enactment of tax reform. The components of income taxes are as follows:
| NEE |  | FPL
| Years Ended December 31, |  | Years Ended December 31,
| 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
| (millions)
Federal: |  |  |  |  |  |  |  |  |  |  |
Current | $ | 100 |  |  | $ | 72 |  |  | $ | 10 |  |  | $ | 168 |  |  | $ | 72 |  |  | $ | 423 |
Deferred | (1,040 | ) |  | 1,075 |  |  | 1,194 |  |  | 776 |  |  | 830 |  |  | 399 |
Total federal | (940 | ) |  | 1,147 |  |  | 1,204 |  |  | 944 |  |  | 902 |  |  | 822 |
State: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 88 |  |  | 76 |  |  | 31 |  |  | 29 |  |  | 57 |  |  | 58 |
Deferred | 199 |  |  | 160 |  |  | (7 | ) |  | 133 |  |  | 92 |  |  | 77 |
Total state | 287 |  |  | 236 |  |  | 24 |  |  | 162 |  |  | 149 |  |  | 135 |
Total income tax expense (benefit) | $ | (653 | ) |  | $ | 1,383 |  |  | $ | 1,228 |  |  | $ | 1,106 |  |  | $ | 1,051 |  |  | $ | 957 |
A reconciliation between the effective income tax rates and the applicable statutory rate is as follows:
| NEE |  | FPL
| Years Ended December 31, |  | Years Ended December 31,
| 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
Statutory federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State income taxes - net of federal income tax benefit | 2.9 |  |  | 3.5 |  |  | 0.4 |  |  | 3.5 |  |  | 3.5 |  |  | 3.4 |
Tax reform rate change | (41.2 | ) |  | — |  |  | — |  |  | (0.5 | ) |  | — |  |  | — |
PTCs and ITCs - NEER | (8.4 | ) |  | (3.9 | ) |  | (4.1 | ) |  | — |  |  | — |  |  | — |
Convertible ITCs - NEER | 0.6 |  |  | (1.7 | ) |  | (0.8 | ) |  | — |  |  | — |  |  | — |
Adjustments associated with Canadian assets | — |  |  | (0.7 | ) |  | — |  |  | — |  |  | — |  |  | — |
Other - net | (2.9 | ) |  | (0.7 | ) |  | 0.3 |  |  | (1.0 | ) |  | (0.7 | ) |  | (1.7 | )
Effective income tax rate | (14.0 | )% |  | 31.5 | % |  | 30.8 | % |  | 37.0 | % |  | 37.8 | % |  | 36.7 | %
The income tax effects of temporary differences giving rise to consolidated deferred income tax liabilities and assets are as follows:
| NEE |  | FPL
| December 31, |  | December 31,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (millions)
Deferred tax liabilities: |  |  |  |  |  |  |
Property-related | $ | 9,030 |  |  | $ | 13,094 |  |  | $ | 6,045 |  |  | $ | 8,882 |
Pension | 364 |  |  | 454 |  |  | 342 |  |  | 502 |
Nuclear decommissioning trusts | 226 |  |  | 253 |  |  | — |  |  | — |
Net unrealized gains on derivatives | 263 |  |  | 581 |  |  | — |  |  | — |
Investments in partnerships and joint ventures | 442 |  |  | 603 |  |  | — |  |  | — |
Other | 871 |  |  | 1,272 |  |  | 584 |  |  | 796 |
Total deferred tax liabilities | 11,196 |  |  | 16,257 |  |  | 6,971 |  |  | 10,180 |
Deferred tax assets and valuation allowance: |  |  |  |  |  |  |
Decommissioning reserves | 306 |  |  | 454 |  |  | 271 |  |  | 401 |
Postretirement benefits | 74 |  |  | 145 |  |  | 57 |  |  | 93 |
Net operating loss carryforwards | 482 |  |  | 427 |  |  | 3 |  |  | 3 |
Tax credit carryforwards | 3,126 |  |  | 3,059 |  |  | — |  |  | — |
ARO and accrued asset removal costs | 210 |  |  | 777 |  |  | 146 |  |  | 699 |
Regulatory liabilities(a) | 1,267 |  |  | 84 |  |  | 1,273 |  |  | 84 |
Other | 646 |  |  | 940 |  |  | 216 |  |  | 359 |
Valuation allowance(b) | (252 | ) |  | (269 | ) |  | — |  |  | — |
Net deferred tax assets | 5,859 |  |  | 5,617 |  |  | 1,966 |  |  | 1,639 |
Net deferred income taxes | $ | 5,337 |  |  | $ | 10,640 |  |  | $ | 5,005 |  |  | $ | 8,541 |
______________________
(a) | 2017 reflects the tax gross up of regulatory liabilities associated with tax reform.
(b) | Reflects a valuation allowance related to the solar projects in Spain, deferred state tax credits and state operating loss carryforwards.
Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:
| NEE |  | FPL
| December 31, |  | December 31,
| 2017 |  | 2016 |  | 2017 |  | 2016
|  |  | (millions) |  |
Noncurrent other assets | $ | 417 |  |  | $ | 461 |  |  | $ | — |  |  | $ | — |
Deferred income taxes - noncurrent liabilities | (5,754 | ) |  | (11,101 | ) |  | (5,005 | ) |  | (8,541 | )
Net deferred income taxes | $ | (5,337 | ) |  | $ | (10,640 | ) |  | $ | (5,005 | ) |  | $ | (8,541 | )
The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2017 are as follows:
| Amount |  | Expiration Dates
| (millions) |  |
Net operating loss carryforwards: |  |  |
Federal | $ | 158 |  |  | 2026-2037
State | 232 |  |  | 2018-2037
Foreign | 92 |  | (a) | 2018-2036
Net operating loss carryforwards | $ | 482 |  |  |
Tax credit carryforwards: |  |  |
Federal | $ | 2,779 |  |  | 2026-2037
State | 347 |  | (b) | 2018-2044
Tax credit carryforwards | $ | 3,126 |  |  |
______________________
(a) | Includes $64 million of net operating loss carryforwards with an indefinite expiration period.
(b) | Includes $188 million of ITC carryforwards with an indefinite expiration period.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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