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Equity | 12 Months Ended
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Dec. 31, 2019
Equity [Abstract] |
Equity | Equity Earnings Per Share - The reconciliation of NEE's basic and diluted earnings per share attributable to NEE is as follows:
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
| (millions, except per share amounts)
Numerator: |  |  |  |  |
Net income attributable to NEE - basic | $ | 3,769 |  |  | $ | 6,638 |  |  | $ | 5,380 |
Adjustment for the impact of dilutive securities at NEP(a) | — |  |  | (19 | ) |  | — |
Net income attributable to NEE - assuming dilution | $ | 3,769 |  |  | $ | 6,619 |  |  | $ | 5,380 |
Denominator: |  |  |  |  |  |  |  |
Weighted-average number of common shares outstanding - basic | 482.0 |  |  | 473.2 |  |  | 468.8 |
Equity units, stock options, performance share awards, forward sale agreements and restricted stock(b) | 3.5 |  |  | 3.8 |  |  | 3.7 |
Weighted-average number of common shares outstanding - assuming dilution | 485.5 |  |  | 477.0 |  |  | 472.5 |
Earnings per share attributable to NEE: |  |  |  |  |  |  |
Basic | $ | 7.82 |  |  | $ | 14.03 |  |  | $ | 11.48 |
Assuming dilution | $ | 7.76 |  |  | $ | 13.88 |  |  | $ | 11.39 |
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(a) | The 2018 adjustment is related to both the NEP Series A convertible preferred units and the NEP senior unsecured convertible notes (see Potentially Dilutive Securities at NEP below).
(b) | 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 stock options, performance share awards and/or equity units, as well as restricted stock which were not included in the denominator above due to their antidilutive effect were approximately 0.7 million, 0.1 million and 3.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Potentially Dilutive Securities at NEP - In November 2017, NEP issued approximately $550 million of Series A convertible preferred units representing limited partner interests in NEP (NEP preferred units). Holders of NEP preferred units may elect to convert all or any portion of their NEP preferred units into common units of NEP at any time after June 20, 2019 subject to certain conditions. NEP may elect to convert all or any portion of the NEP preferred units that remain outstanding into NEP common units on or after November 15, 2020 if certain conditions are met. At December 31, 2019, the value of the NEP preferred units outstanding was approximately $183 million. In addition, NEP has senior unsecured convertible notes outstanding of $300 million at December 31, 2019. Holders of these notes may convert all or any portion of the notes into NEP common units. The NEP preferred units and NEP senior unsecured convertible notes are potentially dilutive securities to NEE. 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 2017, NEE issued 1,711,345 shares of its common stock to net share settle the forward sale agreements. 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. Common Stock Dividend Restrictions - NEE's charter does not limit the dividends that may be paid on its common stock. FPL's mortgage securing FPL's first mortgage bonds contains provisions which, under certain conditions, restrict the payment of dividends and other distributions to NEE. These restrictions do not currently limit FPL's ability to pay dividends to NEE. Stock-Based Compensation - Net income for the years ended December 31, 2019, 2018 and 2017 includes approximately $100 million, $82 million and $76 million, respectively, of compensation costs and $17 million, $21 million and $29 million, respectively, of income tax benefits related to stock-based compensation arrangements. Compensation cost capitalized for the years ended December 31, 2019, 2018 and 2017 was not material. At December 31, 2019, there were approximately $112 million of unrecognized compensation costs related to nonvested/nonexercisable stock-based compensation arrangements. These costs are expected to be recognized over a weighted-average period of 1.8 years. At December 31, 2019, approximately 15 million shares of common stock were authorized for awards to officers, employees and non-employee directors of NEE and its subsidiaries under NEE's: (a) Amended and Restated 2011 Long Term Incentive Plan, (b) 2017 Non-Employee Directors Stock Plan and (c) earlier equity compensation plans under which shares are reserved for issuance under existing grants, but no additional shares are available for grant under the earlier plans. NEE satisfies restricted stock and performance share awards by issuing new shares of its common stock or by purchasing shares of its common stock in the open market. NEE satisfies stock option exercises by issuing new shares of its common stock. NEE generally grants most of its stock-based compensation awards in the first quarter of each year. Restricted Stock and Performance Share Awards - Restricted stock typically vests within three years after the date of grant and is subject to, among other things, restrictions on transferability prior to vesting. The fair value of restricted stock is measured based upon the closing market price of NEE common stock as of the date of grant. Performance share awards are typically payable at the end of a three-year performance period if the specified performance criteria are met. The fair value for the majority of performance share awards is estimated based upon the closing market price of NEE common stock as of the date of grant less the present value of expected dividends, multiplied by an estimated performance multiple which is subsequently trued up based on actual performance. The activity in restricted stock and performance share awards for the year ended December 31, 2019 was as follows:
| Shares |  | Weighted- Average Grant Date Fair Value Per Share
Restricted Stock: |  |  |
Nonvested balance, January 1, 2019 | 479,936 |  |  | $ | 134.69 |
Granted | 235,280 |  |  | $ | 186.54 |
Vested | (212,815 | ) |  | $ | 132.15 |
Forfeited | (7,253 | ) |  | $ | 155.20 |
Nonvested balance, December 31, 2019 | 495,148 |  |  | $ | 159.74 |
Performance Share Awards: |  |  |  |
Nonvested balance, January 1, 2019 | 782,664 |  |  | $ | 123.47 |
Granted | 426,777 |  |  | $ | 138.99 |
Vested | (522,446 | ) |  | $ | 110.68 |
Forfeited | (16,849 | ) |  | $ | 157.07 |
Nonvested balance, December 31, 2019 | 670,146 |  |  | $ | 142.42 |
The weighted-average grant date fair value per share of restricted stock granted for the years ended December 31, 2018 and 2017 was $155.66 and $130.16 respectively. The weighted-average grant date fair value per share of performance share awards granted for the years ended December 31, 2018 and 2017 was $124.22 and $107.39, respectively. The total fair value of restricted stock and performance share awards vested was $125 million, $115 million and $96 million for the years ended December 31, 2019, 2018 and 2017, respectively. Options - Options typically vest within three years after the date of grant and have a maximum term of ten years. The exercise price of each option granted equals the closing market price of NEE common stock on the date of grant. The fair value of the options is estimated on the date of the grant using the Black-Scholes option-pricing model and based on the following assumptions:
| 2019 |  | 2018 |  | 2017
Expected volatility(a) | 14.20 - 14.31% |  | 14.41% |  | 14.91%
Expected dividends | 2.85 - 2.93% |  | 3.05% |  | 3.16%
Expected term (years)(b) | 7.0 |  | 7.0 |  | 7.0
Risk-free rate | 2.24 - 2.54% |  | 2.83% |  | 2.23%
______________________
(a) | Based on historical experience.
(b) | Based on historical exercise and post-vesting cancellation experience adjusted for outstanding awards.
Option activity for the year ended December 31, 2019 was as follows:
| Shares Underlying Options |  | Weighted- Average Exercise Price Per Share |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value (millions)
Balance, January 1, 2019 | 2,495,630 |  |  | $ | 96.33 |  |  |  |  |
Granted | 500,135 |  |  | $ | 182.95 |  |  |  |  |
Exercised | (578,093 | ) |  | $ | 59.24 |  |  |  |  |
Forfeited | (984 | ) |  | $ | 182.61 |  |  |  |  |
Balance, December 31, 2019 | 2,416,688 |  |  | $ | 123.09 |  |  | 6.2 |  | $ | 288 |
Exercisable, December 31, 2019 | 1,561,752 |  |  | $ | 99.22 |  |  | 4.9 |  | $ | 223 |
The weighted-average grant date fair value of options granted was $20.03, $18.05 and $13.25 per share for the years ended December 31, 2019, 2018 and 2017, respectively. The total intrinsic value of stock options exercised was approximately $81 million, $35 million and $41 million for the years ended December 31, 2019, 2018 and 2017, respectively. Cash received from option exercises was approximately $34 million, $18 million and $23 million for the years ended December 31, 2019, 2018 and 2017, respectively. The tax benefits realized from options exercised were approximately $19 million, $9 million and $16 million for the years ended December 31, 2019, 2018 and 2017, respectively. Preferred Stock - NEE's charter authorizes the issuance of 100 million shares of serial preferred stock, $0.01 par value, none of which are outstanding. FPL's charter authorizes the issuance of 10,414,100 shares of preferred stock, $100 par value, 5 million shares of subordinated preferred stock, no par value, and 5 million shares of preferred stock, no par value, none of which are outstanding. 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 Income (Loss) Related to Equity Method Investees |  | Total
| (millions)
Balances, December 31, 2016 | $ | (100 | ) |  | $ | 225 |  |  | $ | (83 | ) |  | $ | (90 | ) |  | $ | (22 | ) |  | $ | (70 | )
Other comprehensive income before reclassifications | — |  |  | 127 |  |  | 46 |  |  | 23 |  |  | 2 |  |  | 198 |
Amounts reclassified from AOCI | 32 |  | (a) | (36 | ) | (b) | (2 | ) | (c) | — |  |  | — |  |  | (6 | )
Net other comprehensive income | 32 |  |  | 91 |  |  | 44 |  |  | 23 |  |  | 2 |  |  | 192 |
Less other comprehensive income attributable to noncontrolling interests | 9 |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 11 |
Balances, December 31, 2017 | (77 | ) |  | 316 |  |  | (39 | ) |  | (69 | ) |  | (20 | ) |  | 111 |
Other comprehensive income (loss) before reclassifications | — |  |  | (12 | ) |  | (14 | ) |  | (31 | ) |  | 4 |  |  | (53 | )
Amounts reclassified from AOCI | 26 |  | (a) | 1 |  | (b) | (3 | ) | (c) | — |  |  | — |  |  | 24 |
Net other comprehensive income (loss) | 26 |  |  | (11 | ) |  | (17 | ) |  | (31 | ) |  | 4 |  |  | (29 | )
Impact of NEP deconsolidation(d) | 3 |  |  | — |  |  | — |  |  | 37 |  |  | 18 |  |  | 58 |
Adoption of accounting standards updates | (7 | ) |  | (312 | ) |  | (9 | ) |  | — |  |  | — |  |  | (328 | )
Balances, December 31, 2018 | (55 | ) |  | (7 | ) |  | (65 | ) |  | (63 | ) |  | 2 |  |  | (188 | )
Other comprehensive income (loss) before reclassifications | — |  |  | 20 |  |  | (46 | ) |  | 22 |  |  | 1 |  |  | (3 | )
Amounts reclassified from AOCI | 29 |  | (a) | (2 | ) | (b) | (3 | ) | (c) | — |  |  | — |  |  | 24 |
Net other comprehensive income (loss) | 29 |  |  | 18 |  |  | (49 | ) |  | 22 |  |  | 1 |  |  | 21 |
Less other comprehensive income attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Acquisition of Gulf Power (see Note 8) | (1 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (1 | )
Balances, December 31, 2019 | $ | (27 | ) |  | $ | 11 |  |  | $ | (114 | ) |  | $ | (42 | ) |  | $ | 3 |  |  | $ | (169 | )
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(a) | Reclassified to interest expense in NEE's consolidated statements of income. See Note 4 - Income Statement Impact of Derivative Instruments.
(b) | Reclassified to gains on disposal of investments and other property - net in NEE's consolidated statements of income.
(c) | Reclassified to other net periodic benefit income in NEE's consolidated statements of income.
(d) Reclassified and included in gain on NEP deconsolidation. See Note 1 - NextEra Energy Partners, LP.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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