XML 39 R12.htm IDEA: XBRL DOCUMENT
v3.24.2

Non-Derivative Fair Value Measurements | 6 Months Ended
--- | ---
Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Non-Derivative Fair Value Measurements | Non-Derivative Fair Value Measurements Non-derivative fair value measurements consist of NEE’s and FPL’s cash equivalents and restricted cash equivalents, special use funds and other investments. The fair value of these financial assets is determined by using the valuation techniques and inputs as described in Note 2 – Fair Value Measurements of Derivative Instruments as well as below. Cash Equivalents and Restricted Cash Equivalents – NEE and FPL hold investments in money market funds. The fair value of these funds is estimated using a market approach based on current observable market prices. Special Use Funds and Other Investments – NEE and FPL hold primarily debt and equity securities directly, as well as indirectly through commingled funds. Substantially all directly held equity securities are valued at their quoted market prices. For directly held debt securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue of each security. Commingled funds, which are similar to mutual funds, are maintained by banks or investment companies and hold certain investments in accordance with a stated set of objectives. The fair value of commingled funds is primarily derived from the quoted prices in active markets of the underlying securities. Because the fund shares are offered to a limited group of investors, they are not considered to be traded in an active market. Fair Value Measurement Alternative – NEE holds investments in equity securities without readily determinable fair values, which are initially recorded at cost, of approximately $574 million and $538 million at June 30, 2024 and December 31, 2023, respectively, and are included in noncurrent other assets on NEE's condensed consolidated balance sheets. Adjustments to carrying values are recorded as a result of observable price changes in transactions for identical or similar investments of the same issuer. Recurring Non-Derivative Fair Value Measurements – NEE's and FPL's financial assets and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:
| June 30, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (millions)
Assets: |  |  |  |  |  |  |
Cash equivalents and restricted cash equivalents:(a) |  |  |  |  |  |  |
NEE – equity securities | $ | 736 |  |  | $ | — |  |  | $ | — |  |  | $ | 736 |
FPL – equity securities | $ | 111 |  |  | $ | — |  |  | $ | — |  |  | $ | 111 |
Special use funds:(b) |  |  |  |  |  |  |
NEE: |  |  |  |  |  |  |
Equity securities | $ | 2,518 |  |  | $ | 3,064 |  | (c) | $ | 201 |  |  | $ | 5,783 |
U.S. Government and municipal bonds | $ | 624 |  |  | $ | 57 |  |  | $ | — |  |  | $ | 681 |
Corporate debt securities | $ | 2 |  |  | $ | 625 |  |  | $ | — |  |  | $ | 627 |
Asset-backed securities | $ | — |  |  | $ | 920 |  |  | $ | — |  |  | $ | 920 |
Other debt securities | $ | 1 |  |  | $ | 16 |  |  | $ | — |  |  | $ | 17 |
FPL: |  |  |  |  |  |  |
Equity securities | $ | 969 |  |  | $ | 2,755 |  | (c) | $ | 201 |  |  | $ | 3,925 |
U.S. Government and municipal bonds | $ | 490 |  |  | $ | 35 |  |  | $ | — |  |  | $ | 525 |
Corporate debt securities | $ | 2 |  |  | $ | 458 |  |  | $ | — |  |  | $ | 460 |
Asset-backed securities | $ | — |  |  | $ | 702 |  |  | $ | — |  |  | $ | 702 |
Other debt securities | $ | 1 |  |  | $ | 8 |  |  | $ | — |  |  | $ | 9 |
Other investments:(d) |  |  |  |  |  |  |
NEE: |  |  |  |  |  |  |
Equity securities | $ | 52 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 53 |
U.S. Government and municipal bonds | $ | 235 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 238 |
Corporate debt securities | $ | — |  |  | $ | 643 |  |  | $ | 137 |  |  | $ | 780 |
Other debt securities | $ | — |  |  | $ | 257 |  |  | $ | 48 |  |  | $ | 305 |
FPL: |  |  |  |  |  |  |
Equity securities | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
——————————————— (a)Includes restricted cash equivalents of approximately $122 million ($108 million for FPL) in current other assets on the condensed consolidated balance sheets. (b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below. (c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL. (d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets.
| December 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (millions)
Assets: |  |  |  |  |  |  |
Cash equivalents and restricted cash equivalents:(a) |  |  |  |  |  |  |
NEE – equity securities | $ | 1,972 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,972 |
FPL – equity securities | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |
Special use funds:(b) |  |  |  |  |  |  |
NEE: |  |  |  |  |  |  |
Equity securities | $ | 2,349 |  |  | $ | 2,742 |  | (c) | $ | 199 |  |  | $ | 5,290 |
U.S. Government and municipal bonds | $ | 700 |  |  | $ | 57 |  |  | $ | — |  |  | $ | 757 |
Corporate debt securities | $ | 3 |  |  | $ | 620 |  |  | $ | — |  |  | $ | 623 |
Asset-backed securities | $ | — |  |  | $ | 822 |  |  | $ | — |  |  | $ | 822 |
Other debt securities | $ | 6 |  |  | $ | 14 |  |  | $ | — |  |  | $ | 20 |
FPL: |  |  |  |  |  |  |
Equity securities | $ | 863 |  |  | $ | 2,474 |  | (c) | $ | 199 |  |  | $ | 3,536 |
U.S. Government and municipal bonds | $ | 556 |  |  | $ | 27 |  |  | $ | — |  |  | $ | 583 |
Corporate debt securities | $ | 3 |  |  | $ | 455 |  |  | $ | — |  |  | $ | 458 |
Asset-backed securities | $ | — |  |  | $ | 606 |  |  | $ | — |  |  | $ | 606 |
Other debt securities | $ | 5 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 11 |
Other investments:(d) |  |  |  |  |  |  |
NEE: |  |  |  |  |  |  |
Equity securities | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |
U.S. Government and municipal bonds | $ | 288 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 291 |
Corporate debt securities | $ | — |  |  | $ | 408 |  |  | $ | 115 |  |  | $ | 523 |
Other debt securities | $ | — |  |  | $ | 196 |  |  | $ | 15 |  |  | $ | 211 |
FPL: |  |  |  |  |  |  |
Equity securities | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |
——————————————— (a)Includes restricted cash equivalents of approximately $34 million ($11 million for FPL) in current other assets on the condensed consolidated balance sheets. (b)Excludes investments accounted for under the equity method and loans not measured at fair value on a recurring basis. See Fair Value of Financial Instruments Recorded at Other than Fair Value below. (c)Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL. (d)Included in noncurrent other assets on NEE's and FPL's condensed consolidated balance sheets. Contingent Consideration – NEER had approximately $125 million and $126 million of contingent consideration liabilities related to acquisitions included in noncurrent other liabilities on NEE's condensed consolidated balance sheets at June 30, 2024 and December 31, 2023, respectively. Significant inputs and assumptions used in the fair value measurement of the contingent consideration, some of which are Level 3 and require judgment, include the projected timing and amount of future cash flows, estimated probability of completing future development projects as well as discount rates. Fair Value of Financial Instruments Recorded at Other than Fair Value – The carrying amounts of commercial paper and other short-term debt approximate their fair values. The carrying amounts and estimated fair values of other financial instruments recorded at other than fair value are as follows:
| June 30, 2024 |  | December 31, 2023 |
| Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value |
| (millions) |
NEE: |  |
Special use funds(a) | $ | 1,278 |  |  | $ | 1,279 |  |  | $ | 1,186 |  |  | $ | 1,187 |  |
Other receivables, net of allowances(b) | $ | 613 |  |  | $ | 613 |  |  | $ | 777 |  |  | $ | 777 |  |
Long-term debt, including current portion | $ | 75,797 |  |  | $ | 71,380 |  | (c) | $ | 68,306 |  |  | $ | 64,103 |  | (c)
FPL: |  |  |  |  |  |  |  |
Special use funds(a) | $ | 885 |  |  | $ | 886 |  |  | $ | 856 |  |  | $ | 856 |  |
Long-term debt, including current portion | $ | 26,224 |  |  | $ | 24,206 |  | (c) | $ | 25,274 |  |  | $ | 23,430 |  | (c)
——————————————— (a)Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring basis (Level 2). (b)Approximately $384 million and $567 million is included in current other assets and $229 million and $210 million is included in noncurrent other assets on NEE's condensed consolidated balance sheets at June 30, 2024 and December 31, 2023, respectively (primarily Level 3). (c)At June 30, 2024 and December 31, 2023, substantially all is Level 2 for NEE and FPL. Special Use Funds and Other Investments Carried at Fair Value – The special use funds noted above and those carried at fair value (see Recurring Non-Derivative Fair Value Measurements above) consist primarily of NEE's nuclear decommissioning fund assets of approximately $9,305 million ($6,505 million for FPL) and $8,697 million ($6,049 million for FPL) at June 30, 2024 and December 31, 2023, respectively. The investments held in the special use funds and other investments consist of equity and available for sale debt securities which are primarily carried at estimated fair value. The amortized cost of debt securities is approximately $3,680 million ($1,756 million for FPL) and $3,329 million ($1,693 million for FPL) at June 30, 2024 and December 31, 2023, respectively. Debt securities included in the nuclear decommissioning funds have a weighted-average maturity at June 30, 2024 of approximately eight years at NEE and nine years at FPL. Other investments primarily consist of debt securities with a weighted-average maturity at June 30, 2024 of approximately six years. The cost of securities sold is determined using the specific identification method. For FPL's special use funds, changes in fair value of debt and equity securities, including any estimated credit losses of debt securities, result in a corresponding adjustment to the related regulatory asset or liability accounts, consistent with regulatory treatment. For NEE's non-rate regulated operations, changes in fair value of debt securities result in a corresponding adjustment to OCI, except for estimated credit losses and unrealized losses on debt securities intended or required to be sold prior to recovery of the amortized cost basis, which are recognized in other – net in NEE's condensed consolidated statements of income. Changes in fair value of equity securities are primarily recorded in change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds – net in NEE’s condensed consolidated statements of income. Unrealized gains recognized on equity securities held at June 30, 2024 and 2023 are as follows:
| NEE |  | FPL
| Three Months Ended June 30, |  | Six Months Ended June 30, |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023
| (millions)
Unrealized gains | $ | 114 |  |  | $ | 316 |  |  | $ | 530 |  |  | $ | 592 |  |  | $ | 88 |  |  | $ | 222 |  |  | $ | 382 |  |  | $ | 411 |
Realized gains and losses and proceeds from the sale or maturity of available for sale debt securities are as follows:
| NEE |  | FPL
| Three Months Ended June 30, |  | Six Months Ended June 30, |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023
| (millions)
Realized gains | $ | 8 |  |  | $ | 10 |  |  | $ | 19 |  |  | $ | 18 |  |  | $ | 6 |  |  | $ | 9 |  |  | $ | 17 |  |  | $ | 15 |
Realized losses | $ | 16 |  |  | $ | 39 |  |  | $ | 28 |  |  | $ | 76 |  |  | $ | 10 |  |  | $ | 32 |  |  | $ | 18 |  |  | $ | 62 |
Proceeds from sale or maturity of securities | $ | 666 |  |  | $ | 592 |  |  | $ | 1,215 |  |  | $ | 1,020 |  |  | $ | 521 |  |  | $ | 442 |  |  | $ | 939 |  |  | $ | 740 |
The unrealized gains and unrealized losses on available for sale debt securities and the fair value of available for sale debt securities in an unrealized loss position are as follows:
| NEE |  | FPL
| June 30, 2024 |  | December 31, 2023 |  | June 30, 2024 |  | December 31, 2023
| (millions)
Unrealized gains | $ | 24 |  |  | $ | 41 |  |  | $ | 18 |  |  | $ | 31 |
Unrealized losses(a) | $ | 147 |  |  | $ | 134 |  |  | $ | 83 |  |  | $ | 71 |
Fair value | $ | 2,283 |  |  | $ | 1,862 |  |  | $ | 1,066 |  |  | $ | 872 |
——————————————— (a) Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at June 30, 2024 and December 31, 2023 were not material to NEE or FPL. Regulations issued by the FERC and the NRC provide general risk management guidelines to protect nuclear decommissioning funds and to allow such funds to earn a reasonable return. The FERC regulations prohibit, among other investments, investments in any securities of NEE or its subsidiaries, affiliates or associates, excluding investments tied to market indices or mutual funds. Similar restrictions applicable to the decommissioning funds for NEER's nuclear plants are included in the NRC operating licenses for those facilities or in NRC regulations applicable to NRC licensees not in cost-of-service environments. With respect to the decommissioning fund for Seabrook, decommissioning fund contributions and withdrawals are also regulated by the New Hampshire Nuclear Decommissioning Financing Committee pursuant to New Hampshire law. The nuclear decommissioning reserve funds are managed by investment managers who must comply with the guidelines of NEE and FPL and the rules of the applicable regulatory authorities. The funds' assets are invested giving consideration to taxes, liquidity, risk, diversification and other prudent investment objectives. Nonrecurring Fair Value Measurements – NEE tests its equity method investments for impairment whenever events or changes in circumstances indicate that the fair value of the investment is less than the carrying value. Indicators of impairment may include, among other things, an observable market price below NEE’s carrying value. Investments that are OTTI are written down to their estimated fair value on the reporting date and an impairment loss is recognized. NextEra Energy Resources owns a noncontrolling interest in NEP, primarily through its limited partner interest in NEP OpCo, and accounts for this ownership interest as an equity method investment. During the latter part of the second quarter, NextEra Energy Resources’ evaluated its investment in NEP for impairment when the trading price of NEP's common units fell below NEE’s carrying value per unit of $28.55. NEE evaluated whether NextEra Energy Resources' investment in NEP was OTTI and determined the impairment of approximately $92 million ($69 million after tax) was not OTTI at June 30, 2024. In making this conclusion, NEE's analysis considered, among other things, the extent to which the market value is less than its carrying value, the short duration of the impairment, the condition and trend of the economic cycle, analyst valuation reports, performance and trading yields of NEP and comparable public companies and trends in the general market. Should NEE determine, based on future analysis, that the impairment is other-than-temporary, an impairment loss would be recorded in equity in earnings of equity method investees in NEE’s consolidated statements of income, which could impact future results.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration