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Employee Retirement Benefits (Tables) | 12 Months Ended
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Dec. 31, 2020
Retirement Benefits [Abstract] |
Plan assets, benefit obligations, and funded status included in the consolidated balance sheets | Pension Plan Assets, Benefit Obligations and Funded Status - The changes in assets, benefit obligations and the funded status of the pension plan are as follows:
| 2020 |  | 2019
| (millions)
Change in pension plan assets: |  |  |
Fair value of plan assets at January 1 | $ | 4,800 |  |  | $ | 3,806 |
Actual return on plan assets | 723 |  |  | 736 |
Benefit payments | (209) |  |  | (235) |
Acquisitions(a) | — |  |  | 493 |
Fair value of plan assets at December 31 | $ | 5,314 |  |  | $ | 4,800 |
Change in pension benefit obligation: |  |  |
Obligation at January 1 | $ | 3,363 |  |  | $ | 2,522 |
Service cost | 85 |  |  | 80 |
Interest cost | 92 |  |  | 114 |
Acquisitions(a) | — |  |  | 503 |
Special termination benefits(b) | 16 |  |  | 19 |
Plan amendments | 1 |  |  | 3 |
Actuarial losses - net(c) | 259 |  |  | 357 |
Benefit payments | (209) |  |  | (235) |
Obligation at December 31(d) | $ | 3,607 |  |  | $ | 3,363 |
Funded status: |  |  |
Prepaid pension benefit costs at NEE at December 31 | $ | 1,707 |  |  | $ | 1,437 |
Prepaid pension benefit costs at FPL at December 31(e) | $ | 1,554 |  |  | $ | 1,477 |
_________________________ (a)Relates to substantially funded pension obligations in connection with the acquisition of Gulf Power, see Note 6 - Gulf Power Company. (b)Reflects enhanced early retirement programs. (c)Primarily driven by decrease in discount rates. (d)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2020 and 2019 was approximately $3,521 million and $3,281 million, respectively. (e)Reflects FPL's allocated benefits under NEE's pension plan.
Unrecognized amounts included in accumulated other comprehensive income (loss) | NEE's unrecognized amounts included in accumulated other comprehensive income (loss) yet to be recognized as components of prepaid pension benefit costs are as follows:
| 2020 |  | 2019
| (millions)
Unrecognized prior service benefit (net of $1 and $2 tax expense, respectively) | $ | 2 |  |  | $ | 2 |
Unrecognized losses (net of $24 and $37 tax benefit, respectively) | (60) |  |  | (108) |
Total | $ | (58) |  |  | $ | (106) |
Unrecognized amounts included in regulatory assets (liabilities) | NEE's unrecognized amounts included in regulatory assets yet to be recognized as components of net prepaid pension benefit costs are as follows:
| 2020 |  | 2019
| (millions)
Unrecognized prior service benefit | $ | (1) |  |  | $ | (2) |
Unrecognized losses | 163 |  |  | 263 |
Total | $ | 162 |  |  | $ | 261 |
Significant assumptions used to determine benefit obligations and net periodic benefit (income) cost | The following table provides the assumptions used to determine the benefit obligation for the pension plan. These rates are used in determining net periodic pension income in the following year.
| 2020 |  | 2019
Discount rate(a) | 2.53 | % |  | 3.22 | %
Salary increase | 4.40 | % |  | 4.40 | %
Weighted-average interest crediting rate | 3.82 | % |  | 3.83 | %
_________________________ (a)The method of estimating the interest cost component of net periodic benefit costs uses a full yield curve approach by applying a specific spot rate along the yield curve. The assumptions used to determine net periodic pension income for the pension plan are as follows:
| 2020 |  | 2019 |  | 2018
Discount rate | 3.22 | % |  | 4.26 | % |  | 3.59 | %
Salary increase | 4.40 | % |  | 4.40 | % |  | 4.10 | %
Expected long-term rate of return, net of investment management fees(a) | 7.35 | % |  | 7.35 | % |  | 7.35 | %
Weighted-average interest crediting rate | 3.83 | % |  | 3.88 | % |  | 3.94 | %
______________________ (a)In developing the expected long-term rate of return on assets assumption for its pension plan, NEE evaluated input, including other qualitative and quantitative factors, from its actuaries and consultants, as well as information available in the marketplace. NEE considered different models, capital market return assumptions and historical returns for a portfolio with an equity/bond asset mix similar to its pension fund. NEE also considered its pension fund's historical compounded returns.
Fair value measurements of pension plan assets by hierarchy level | The fair value measurements of NEE's pension plan assets by fair value hierarchy level are as follows:
| December 31, 2020(a)
| Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
| (millions)
Equity securities(b) | $ | 2,017 |  |  | $ | 10 |  |  | $ | 3 |  |  | $ | 2,030 |
Equity commingled vehicles(c) | — |  |  | 668 |  |  | — |  |  | 668 |
U.S. Government and municipal bonds | 169 |  |  | 8 |  |  | — |  |  | 177 |
Corporate debt securities(d) | — |  |  | 340 |  |  | — |  |  | 340 |
Asset-backed securities | — |  |  | 375 |  |  | — |  |  | 375 |
Debt security commingled vehicles(e) | — |  |  | 201 |  |  | — |  |  | 201 |
Convertible securities(f) | 64 |  |  | 453 |  |  | — |  |  | 517 |
Total investments in the fair value hierarchy | $ | 2,250 |  |  | $ | 2,055 |  |  | $ | 3 |  |  | 4,308 |
Total investments measured at net asset value(g) |  |  |  |  |  |  | 1,006 |
Total fair value of plan assets |  |  |  |  |  |  | $ | 5,314 |
_____________________ (a)See Notes 3 and 4 for discussion of fair value measurement techniques and inputs. (b)Includes foreign investments of $881 million. (c)Includes foreign investments of $156 million. (d)Includes foreign investments of $93 million. (e)Includes foreign investments of $5 million. (f)Includes foreign investments of $35 million. (g)Includes foreign investments of $153 million.
| December 31, 2019(a)
| Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
| (millions)
Equity securities(b) | $ | 1,593 |  |  | $ | 9 |  |  | $ | 3 |  |  | $ | 1,605 |
Equity commingled vehicles(c) | — |  |  | 706 |  |  | — |  |  | 706 |
U.S. Government and municipal bonds | 95 |  |  | 7 |  |  | — |  |  | 102 |
Corporate debt securities(d) | — |  |  | 247 |  |  | — |  |  | 247 |
Asset-backed securities | — |  |  | 416 |  |  | — |  |  | 416 |
Debt security commingled vehicles(e) | 47 |  |  | 143 |  |  | — |  |  | 190 |
Convertible securities(f) | 32 |  |  | 372 |  |  | — |  |  | 404 |
Total investments in the fair value hierarchy | $ | 1,767 |  |  | $ | 1,900 |  |  | $ | 3 |  |  | 3,670 |
Total investments measured at net asset value(g) |  |  |  |  |  |  | 1,130 |
Total fair value of plan assets |  |  |  |  |  |  | $ | 4,800 |
______________________ (a)See Notes 3 and 4 for discussion of fair value measurement techniques and inputs. (b)Includes foreign investments of $741 million. (c)Includes foreign investments of $141 million. (d)Includes foreign investments of $76 million. (e)Includes foreign investments of $5 million. (f)Includes foreign investments of $20 million. (g)Includes foreign investments of $190 million.
Expected benefit payments, net of government drug subsidy | Expected Cash Flows - The following table provides information about benefit payments expected to be paid by the pension plan for each of the following calendar years (in millions):
2021 | $ | 228 |
2022 | $ | 200 |
2023 | $ | 202 |
2024 | $ | 204 |
2025 | $ | 206 |
2026 - 2030 | $ | 1,024 |
Net periodic benefit (income) cost | Net Periodic Income - The components of net periodic income for the plans are as follows:
| Pension Benefits |  | Postretirement Benefits
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
|  |  | (millions) |  |
Service cost | $ | 85 |  |  | $ | 80 |  |  | $ | 70 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |
Interest cost | 92 |  |  | 114 |  |  | 82 |  |  | 8 |  |  | 9 |  |  | 7 |
Expected return on plan assets | (321) |  |  | (312) |  |  | (276) |  |  | — |  |  | — |  |  | — |
Amortization of actuarial loss | 18 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | — |
Amortization of prior service benefit | (1) |  |  | (1) |  |  | (1) |  |  | (16) |  |  | (15) |  |  | (15) |
Special termination benefits | 16 |  |  | 19 |  |  | 35 |  |  | — |  |  | — |  |  | — |
Net periodic income at NEE | $ | (111) |  |  | $ | (100) |  |  | $ | (90) |  |  | $ | (4) |  |  | $ | (5) |  |  | $ | (7) |
Net periodic income allocated to FPL | $ | (77) |  |  | $ | (71) |  |  | $ | (57) |  |  | $ | (3) |  |  | $ | (4) |  |  | $ | (6) |
Components of net periodic benefit income (cost) recognized in OCI | Other Comprehensive Income - The components of net periodic income recognized in OCI for the pension plan are as follows:
| 2020 |  | 2019 |  | 2018
| (millions)
Net gains (losses) (net of $13 tax expense, $10 tax benefit and $4 tax benefit, respectively) | $ | 42 |  |  | $ | (36) |  |  | $ | (13) |
Amortization of unrecognized losses (net of $1 tax expense) | 5 |  |  | — |  |  | — |
Total | $ | 47 |  |  | $ | (36) |  |  | $ | (13) |
Components of net periodic benefit (income) cost recognized in regulatory assets (liabilities) | Regulatory Assets (Liabilities) - The components of net periodic income recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:
| 2020 |  | 2019
| (millions)
Prior service cost | $ | 1 |  |  | $ | — |
Unrecognized gains | (89) |  |  | (113) |
Amortization of prior service cost | 1 |  |  | $ | 1 |
Amortization of unrecognized losses | (12) |  |  | — |
Total | $ | (99) |  |  | $ | (112) |

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- Definition Disclosure of benefit payments expected to be paid by the defined benefit plans, net of government drug subsidy, for each of the five following calendar years, and the subsequent five years thereafter. + References No definition available. + Details
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- Definition Table detailing net periodic benefit (income) cost for defined benefit plans for the period. Periodic benefit costs include the following components: service cost, interest cost, expected return on plan assets, gain or loss, prior service cost or credit, transition asset or obligation, and gain or loss due to settlements or curtailments. + References No definition available. + Details
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- Definition Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2439-114920 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2410-114920 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2417-114920 + Details
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