XML 75 R32.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of income taxes | The components of income taxes are as follows:
| NEE |  | FPL
| Years Ended December 31, |  | Years Ended December 31,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
| (millions)
Federal: |  |  |  |  |  |  |  |  |  |  |
Current | $ | 167 |  |  | $ | 30 |  |  | $ | 100 |  |  | $ | 348 |  |  | $ | 251 |  |  | $ | 168 |
Deferred | 115 |  |  | 1,153 |  |  | (1,047 | ) |  | (29 | ) |  | 134 |  |  | 776 |
Total federal | 282 |  |  | 1,183 |  |  | (947 | ) |  | 319 |  |  | 385 |  |  | 944 |
State: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 23 |  |  | 63 |  |  | 88 |  |  | 49 |  |  | 91 |  |  | 29 |
Deferred | 143 |  |  | 330 |  |  | 199 |  |  | 73 |  |  | 63 |  |  | 133 |
Total state | 166 |  |  | 393 |  |  | 287 |  |  | 122 |  |  | 154 |  |  | 162 |
Total income tax expense (benefit) | $ | 448 |  |  | $ | 1,576 |  |  | $ | (660 | ) |  | $ | 441 |  |  | $ | 539 |  |  | $ | 1,106 |
Reconciliation between the effective income tax rates and the applicable statutory rates | 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,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 35.0 | % |  | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State income taxes - net of federal income tax benefit | 3.4 |  |  | 4.2 |  |  | 2.9 |  |  | 3.5 |  |  | 4.5 |  |  | 3.5 |
Taxes attributable to noncontrolling interests | 2.1 |  |  | 2.5 |  |  | — |  |  | — |  |  | — |  |  | — |
Tax reform rate change | — |  |  | — |  |  | (41.3 | ) |  | — |  |  | — |  |  | (0.5 | )
PTCs and ITCs - NEER | (7.2 | ) |  | (3.0 | ) |  | (8.4 | ) |  | — |  |  | — |  |  | — |
Amortization of deferred regulatory credit(a) | (6.2 | ) |  | (1.8 | ) |  | — |  |  | (8.1 | ) |  | (5.0 | ) |  | (0.1 | )
Convertible ITCs - NEER | — |  |  | — |  |  | 0.6 |  |  | — |  |  | — |  |  | — |
Other - net | (1.4 | ) |  | (1.5 | ) |  | (3.0 | ) |  | (0.5 | ) |  | (0.6 | ) |  | (0.9 | )
Effective income tax rate | 11.7 | % |  | 21.4 | % |  | (14.2 | )% |  | 15.9 | % |  | 19.9 | % |  | 37.0 | %
_________________________
(a) | 2019 reflects an adjustment of approximately $83 million recorded by FPL to reduce income tax expense for the cumulative amortization of excess deferred income taxes from January 1, 2018 as a result of a FPSC order in connection with its review of impacts associated with tax reform. One of the provisions of the order requires FPL to amortize approximately $870 million of its excess deferred income taxes over a period not to exceed ten years.
Schedule of deferred income tax liabilities and assets | 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,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (millions)
Deferred tax liabilities: |  |  |  |  |  |  |
Property-related | $ | 10,133 |  |  | $ | 9,315 |  |  | $ | 6,394 |  |  | $ | 6,113 |
Pension | 417 |  |  | 374 |  |  | 374 |  |  | 357 |
Investments in partnerships and joint ventures | 2,019 |  |  | 1,925 |  |  | — |  |  | — |
Other | 1,618 |  |  | 1,505 |  |  | 685 |  |  | 791 |
Total deferred tax liabilities | 14,187 |  |  | 13,119 |  |  | 7,453 |  |  | 7,261 |
Deferred tax assets and valuation allowance: |  |  |  |  |  |  |
Decommissioning reserves | 317 |  |  | 313 |  |  | 286 |  |  | 278 |
Net operating loss carryforwards | 380 |  |  | 350 |  |  | 2 |  |  | 3 |
Tax credit carryforwards | 3,406 |  |  | 3,259 |  |  | — |  |  | — |
ARO and accrued asset removal costs | 368 |  |  | 310 |  |  | 273 |  |  | 237 |
Regulatory liabilities | 1,335 |  |  | 1,277 |  |  | 1,219 |  |  | 1,283 |
Other | 515 |  |  | 751 |  |  | 258 |  |  | 295 |
Valuation allowance(a) | (285 | ) |  | (273 | ) |  | — |  |  | — |
Net deferred tax assets | 6,036 |  |  | 5,987 |  |  | 2,038 |  |  | 2,096 |
Net deferred income taxes | $ | 8,151 |  |  | $ | 7,132 |  |  | $ | 5,415 |  |  | $ | 5,165 |
______________________
(a) | Reflects a valuation allowance related to the solar projects in Spain that completely offsets the related deferred taxes, as well as 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,
| 2019 |  | 2018 |  | 2019 |  | 2018
|  |  | (millions) |  |
Noncurrent other assets | $ | 210 |  |  | $ | 235 |  |  | $ | — |  |  | $ | — |
Deferred income taxes - noncurrent liabilities | (8,361 | ) |  | (7,367 | ) |  | (5,415 | ) |  | (5,165 | )
Net deferred income taxes | $ | (8,151 | ) |  | $ | (7,132 | ) |  | $ | (5,415 | ) |  | $ | (5,165 | )
Components of deferred tax assets relating to net operating loss carryforwards | The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2019 are as follows:
| Amount |  | Expiration Dates
| (millions) |  |
Net operating loss carryforwards: |  |  |
State | $ | 304 |  |  | 2020-2039
Foreign | 76 |  | (a) | 2020-2039
Net operating loss carryforwards | $ | 380 |  |  |
Tax credit carryforwards: |  |  |
Federal | $ | 3,060 |  |  | 2029-2039
State | 344 |  | (b) | 2020-2044
Foreign | 2 |  |  | 2034-2039
Tax credit carryforwards | $ | 3,406 |  |  |
______________________
(a) | Includes $58 million of net operating loss carryforwards with an indefinite expiration period.
(b) Includes $188 million of ITC carryforwards with an indefinite expiration period.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration