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Employee Retirement Benefits | 12 Months Ended
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Dec. 31, 2023
Retirement Benefits [Abstract] |
Employee Retirement Benefits | Employee Retirement Benefits Employee Pension Plan and Other Benefits Plans – NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries. NEE also has a supplemental executive retirement plan (SERP), which includes a non-qualified supplemental defined benefit pension component that provides benefits to a select group of management and highly compensated employees, and sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements. The total accrued benefit cost of the SERP and postretirement plans is approximately $231 million ($101 million for FPL) and $237 million ($115 million for FPL) at December 31, 2023 and 2022, respectively. 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:
| 2023 |  | 2022
| (millions)
Change in pension plan assets: |  |  |
Fair value of plan assets at January 1 | $ | 4,543 |  |  | $ | 5,688 |
Actual return on plan assets | 591 |  |  | (820) |
Benefit payments | (237) |  |  | (325) |
Fair value of plan assets at December 31 | $ | 4,897 |  |  | $ | 4,543 |
Change in pension benefit obligation: |  |  |
Obligation at January 1 | $ | 2,711 |  |  | $ | 3,445 |
Service cost | 64 |  |  | 86 |
Interest cost | 132 |  |  | 77 |
Special termination benefit(a) | — |  |  | 52 |
Plan amendments | — |  |  | 3 |
Actuarial losses (gains) – net(b) | 115 |  |  | (627) |
Benefit payments | (237) |  |  | (325) |
Obligation at December 31(c) | $ | 2,785 |  |  | $ | 2,711 |
Funded status: |  |  |
Prepaid pension benefit costs at NEE at December 31 | $ | 2,112 |  |  | $ | 1,832 |
Prepaid pension benefit costs at FPL at December 31(d) | $ | 1,853 |  |  | $ | 1,732 |
_________________________ (a)Reflects enhanced early retirement benefit. (b)Primarily due to the difference in actual versus expected discount rate. (c)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2023 and 2022 was approximately $2,719 million and $2,650 million, respectively. (d)Reflects FPL's allocated benefits under NEE's pension plan. 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:
| 2023 |  | 2022
| (millions)
Unrecognized prior service benefit (net of $1 tax expense and $0 tax expense, respectively) | $ | 2 |  |  | $ | 1 |
Unrecognized losses (net of $22 tax benefit and $33 tax benefit, respectively) | (73) |  |  | (91) |
Total | $ | (71) |  |  | $ | (90) |
NEE's unrecognized amounts included in regulatory assets (liabilities) yet to be recognized as components of net prepaid pension benefit costs are as follows:
| 2023 |  | 2022
| (millions)
Unrecognized prior service cost | $ | — |  |  | $ | 2 |
Unrecognized losses | 221 |  |  | 277 |
Total | $ | 221 |  |  | $ | 279 |
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.
| 2023 |  | 2022
Discount rate | 4.88 | % |  | 5.05 | %
Salary increase | 4.90 | % |  | 4.90 | %
Weighted-average interest crediting rate | 3.89 | % |  | 3.82 | %
NEE's investment policy for the pension plan recognizes the benefit of protecting the plan's funded status, thereby avoiding the necessity of future employer contributions. Its broad objectives are to achieve a high rate of total return with a prudent level of risk taking while maintaining sufficient liquidity and diversification to avoid large losses and preserve capital over the long term. The NEE pension plan fund's current target asset allocation, which is expected to be reached over time, is 43% equity investments, 32% fixed income investments, 20% alternative investments and 5% convertible securities. The pension fund's investment strategy emphasizes traditional investments, broadly diversified across the global equity and fixed income markets, using a combination of different investment styles and vehicles. The pension fund's equity and fixed income holdings consist of both directly held securities as well as commingled investment arrangements such as common and collective trusts, pooled separate accounts, registered investment companies and limited partnerships. The pension fund's convertible security assets are principally direct holdings of convertible securities and include a convertible security oriented limited partnership. The pension fund's alternative investments consist primarily of private equity and real estate oriented investments in limited partnerships as well as absolute return oriented limited partnerships that use a broad range of investment strategies on a global basis. The fair value measurements of NEE's pension plan assets by fair value hierarchy level are as follows:
| December 31, 2023(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) | $ | 1,444 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 1,450 |
Equity commingled vehicles(c) | — |  |  | 754 |  |  | — |  |  | 754 |
U.S. Government and municipal bonds | 96 |  |  | 5 |  |  | — |  |  | 101 |
Corporate debt securities(d) | — |  |  | 252 |  |  | — |  |  | 252 |
Asset-backed securities(e) | — |  |  | 500 |  |  | — |  |  | 500 |
Debt security commingled vehicles(f) | — |  |  | 184 |  |  | — |  |  | 184 |
Convertible securities(g) | 8 |  |  | 247 |  |  | — |  |  | 255 |
Other(h) | 6 |  |  | 2 |  |  | — |  |  | 8 |
Total investments in the fair value hierarchy | $ | 1,554 |  |  | $ | 1,949 |  |  | $ | 1 |  |  | 3,504 |
Total investments measured at net asset value(i) |  |  |  |  |  |  | 1,393 |
Total fair value of plan assets |  |  |  |  |  |  | $ | 4,897 |
_____________________ (a)See Note 3 and Note 4 for discussion of fair value measurement techniques and inputs. (b)Includes foreign investments of $591 million. (c)Includes foreign investments of $222 million. (d)Includes foreign investments of $72 million. (e)Includes foreign investments of $157 million. (f)Includes foreign investments of $2 million. (g)Includes foreign investments of $21 million. (h)Includes foreign investments of $2 million. (i)Includes foreign investments of $240 million.
| December 31, 2022(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) | $ | 1,246 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 1,252 |
Equity commingled vehicles(c) | — |  |  | 731 |  |  | — |  |  | 731 |
U.S. Government and municipal bonds | 85 |  |  | 5 |  |  | — |  |  | 90 |
Corporate debt securities(d) | — |  |  | 272 |  |  | — |  |  | 272 |
Asset-backed securities(e) | — |  |  | 413 |  |  | — |  |  | 413 |
Debt security commingled vehicles | — |  |  | 130 |  |  | — |  |  | 130 |
Convertible securities(f) | 50 |  |  | 367 |  |  | — |  |  | 417 |
Total investments in the fair value hierarchy | $ | 1,381 |  |  | $ | 1,923 |  |  | $ | 1 |  |  | 3,305 |
Total investments measured at net asset value(g) |  |  |  |  |  |  | 1,238 |
Total fair value of plan assets |  |  |  |  |  |  | $ | 4,543 |
______________________ (a)See Note 3 and Note 4 for discussion of fair value measurement techniques and inputs. (b)Includes foreign investments of $526 million. (c)Includes foreign investments of $191 million. (d)Includes foreign investments of $83 million. (e)Includes foreign investments of $129 million. (f)Includes foreign investments of $30 million. (g)Includes foreign investments of $242 million. 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):
2024 | $ | 207 |
2025 | $ | 210 |
2026 | $ | 215 |
2027 | $ | 209 |
2028 | $ | 208 |
2029 – 2033 | $ | 1,007 |
Net Periodic (Income) Cost – The components of net periodic (income) cost for the plans are as follows:
| Pension Benefits |  | Postretirement Benefits
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
|  |  | (millions) |  |
Service cost | $ | 64 |  |  | $ | 86 |  |  | $ | 90 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |
Interest cost | 132 |  |  | 77 |  |  | 64 |  |  | 9 |  |  | 5 |  |  | 4 |
Expected return on plan assets | (392) |  |  | (363) |  |  | (339) |  |  | — |  |  | — |  |  | — |
Amortization of actuarial loss | — |  |  | — |  |  | 24 |  |  | — |  |  | 3 |  |  | 5 |
Amortization of prior service benefit | — |  |  | (1) |  |  | (1) |  |  | — |  |  | (4) |  |  | (15) |
Special termination benefit | — |  |  | 52 |  |  | — |  |  | — |  |  | — |  |  | — |
Benefit plan settlement | — |  |  | 27 |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic (income) cost at NEE | $ | (196) |  |  | $ | (122) |  |  | $ | (162) |  |  | $ | 10 |  |  | $ | 5 |  |  | $ | (4) |
Net periodic (income) cost allocated to FPL | $ | (127) |  |  | $ | (76) |  |  | $ | (108) |  |  | $ | 8 |  |  | $ | 4 |  |  | $ | (4) |
Other Comprehensive Income – The components of net periodic income (cost) recognized in OCI for the pension plan are as follows:
| 2023 |  | 2022 |  | 2021
| (millions)
Prior service benefit (cost) (net of $0 tax expense and $0 tax benefit, respectively) | $ | 1 |  |  | $ | (1) |  |  | $ | — |
Net gains (losses) (net of $7 tax expense, $43 tax benefit and $29 tax expense, respectively) | 23 |  |  | (139) |  |  | 95 |
Amortization of unrecognized losses (net of $2 tax expense and $2 tax expense, respectively) | — |  |  | 7 |  |  | 6 |
Total | $ | 24 |  |  | $ | (133) |  |  | $ | 101 |
Regulatory Assets (Liabilities) – The components of net periodic income recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:
| 2023 |  | 2022
| (millions)
Prior service cost (benefit) | $ | (2) |  |  | $ | 2 |
Unrecognized losses (gains) | (56) |  |  | 375 |
Amortization of prior service benefit | — |  |  | 1 |
Amortization of unrecognized losses | — |  |  | (18) |
Total | $ | (58) |  |  | $ | 360 |
The assumptions used to determine net periodic pension income for the pension plan are as follows:
| 2023 |  | 2022 |  | 2021
Discount rate | 5.05 | % |  | 2.87 | % |  | 2.53 | %
Salary increase | 4.90 | % |  | 4.90 | % |  | 4.40 | %
Expected long-term rate of return, net of investment management fees | 8.00 | % |  | 7.35 | % |  | 7.35 | %
Weighted-average interest crediting rate | 3.82 | % |  | 3.79 | % |  | 3.82 | %
Employee Contribution Plan – NEE offers an employee retirement savings plan which allows eligible participants to contribute a percentage of qualified compensation through payroll deductions. NEE makes matching contributions to participants' accounts. Defined contribution expense pursuant to this plan was approximately $78 million, $68 million and $66 million for NEE ($43 million, $41 million and $42 million for FPL) for the years ended December 31, 2023, 2022 and 2021, respectively.

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