Summarized Financial Information of Capital Holdings

9 Months Ended

Sep. 30, 2014

Summarized Financial Information [Abstract]

Summarized Financial Information of Capital Holdings

Summarized Financial Information of NEECH

NEECH, a 100% owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL.  Most of NEECH's debt, including its debentures, and payment guarantees are fully and unconditionally guaranteed by NEE.  Condensed consolidating financial information is as follows:

Condensed Consolidating Statements of Income

	Three Months Ended September 30,
	2014												2013
	NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
Operating revenues	$	—		$	1,343		$	3,311		$	4,654		$	—		$	1,377		$	3,017		$	4,394
Operating expenses	(4		)	(1,010		)	(2,477		)	(3,491		)	(4		)	(965		)	(2,240		)	(3,209		)
Interest expense	(2		)	(204		)	(110		)	(316		)	(2		)	(182		)	(104		)	(288		)
Equity in earnings of subsidiaries	660			—			(660		)	—			700			—			(700		)	—
Other income - net	1			91			4			96			—			87			11			98
Income (loss) before income taxes	655			220			68			943			694			317			(16		)	995
Income tax expense (benefit)	(5		)	17			267			279			(4		)	38			263			297
Net income (loss)	660			203			(199		)	664			698			279			(279		)	698
Less net income attributable to noncontrolling interests	—			(4		)	—			(4		)	—			—			—			—
Net income (loss) attributable to NEE	$	660		$	199		$	(199	)	$	660		$	698		$	279		$	(279	)	$	698

	Nine Months Ended September 30,
	2014												2013(b)
	NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
Operating revenues	$	—		$	3,628		$	8,729		$	12,357		$	—		$	3,611		$	7,895		$	11,506
Operating expenses	(13		)	(3,011		)	(6,480		)	(9,504		)	(11		)	(3,043		)	(5,851		)	(8,905		)
Interest expense	(5		)	(614		)	(321		)	(940		)	(7		)	(513		)	(305		)	(825		)
Equity in earnings of subsidiaries	1,602			—			(1,602		)	—			1,572			—			(1,572		)	—
Other income - net	2			369			24			395			1			187			39			227
Income from continuing operations before income taxes	1,586			372			350			2,308			1,555			242			206			2,003
Income tax expense (benefit)	5			(3		)	721			723			(11		)	(13		)	677			653
Income (loss) from continuing operations	1,581			375			(371		)	1,585			1,566			255			(471		)	1,350
Gain from discontinued operations, net of income taxes	—			—			—			—			15			216			—			231
Net income (loss)	1,581			375			(371		)	1,585			1,581			471			(471		)	1,581
Less net income attributable to noncontrolling interests	—			(4		)	—			(4		)	—			—			—			—
Net income (loss) attributable to NEE	$	1,581		$	371		$	(371	)	$	1,581		$	1,581		$	471		$	(471	)	$	1,581

————————————

(a)  Represents FPL and consolidating adjustments.

(b)  Certain amounts were restated to conform to current year's presentation.  See Note 4 - Nonrecurring Fair Value Measurements.

Condensed Consolidating Statements of Comprehensive Income

	Three Months Ended September 30,
	2014									2013
	NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated		NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated
								(millions)
Comprehensive income (loss) attributable to NEE	$	648	$	187	$	(187	)	$	648	$	718	$	298	$	(298	)	$	718

	Nine Months Ended September 30,
	2014									2013
	NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated		NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated
								(millions)
Comprehensive income (loss) attributable to NEE	$	1,572	$	357	$	(357	)	$	1,572	$	1,754	$	636	$	(636	)	$	1,754

————————————

(a) Represents FPL and consolidating adjustments.

Condensed Consolidating Balance Sheets

	September 30, 2014												December 31, 2013
	NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property	$	27		$	31,279		$	41,605		$	72,911		$	31		$	29,511		$	39,906		$	69,448
Less accumulated depreciation and amortization	(11		)	(6,448		)	(11,385		)	(17,844		)	(10		)	(5,774		)	(10,944		)	(16,728		)
Total property, plant and equipment - net	16			24,831			30,220			55,067			21			23,737			28,962			52,720
CURRENT ASSETS
Cash and cash equivalents	1			455			29			485			—			418			20			438
Receivables	527			1,686			198			2,411			78			1,542			669			2,289
Other	8			1,556			1,173			2,737			6			1,814			1,295			3,115
Total current assets	536			3,697			1,400			5,633			84			3,774			1,984			5,842
OTHER ASSETS
Investment in subsidiaries	18,583			—			(18,583		)	—			17,910			—			(17,910		)	—
Other	748			5,528			5,217			11,493			694			5,129			4,921			10,744
Total other assets	19,331			5,528			(13,366		)	11,493			18,604			5,129			(12,989		)	10,744
TOTAL ASSETS	$	19,883		$	34,056		$	18,254		$	72,193		$	18,709		$	32,640		$	17,957		$	69,306
CAPITALIZATION
Common shareholders' equity	$	18,810		$	5,468		$	(5,468	)	$	18,810		$	18,040		$	4,816		$	(4,816	)	$	18,040
Noncontrolling interests	—			263			71			334			—			—			—			—
Long-term debt	—			15,439			9,414			24,853			—			15,496			8,473			23,969
Total capitalization	18,810			21,170			4,017			43,997			18,040			20,312			3,657			42,009
CURRENT LIABILITIES
Debt due within one year	—			4,231			339			4,570			—			3,896			561			4,457
Accounts payable	—			822			674			1,496			—			589			611			1,200
Other	651			1,984			871			3,506			199			2,203			1,130			3,532
Total current liabilities	651			7,037			1,884			9,572			199			6,688			2,302			9,189
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	—			598			1,337			1,935			—			565			1,285			1,850
Deferred income taxes	187			1,692			6,120			7,999			166			1,963			6,015			8,144
Other	235			3,559			4,896			8,690			304			3,112			4,698			8,114
Total other liabilities and deferred credits	422			5,849			12,353			18,624			470			5,640			11,998			18,108
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	19,883		$	34,056		$	18,254		$	72,193		$	18,709		$	32,640		$	17,957		$	69,306

————————————

(a) Represents FPL and consolidating adjustments.

Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30,
	2014												2013
	NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	1,353		$	1,041		$	1,574		$	3,968		$	1,174		$	494		$	1,722		$	3,390
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, independent power and other investments and nuclear fuel purchases	(1		)	(2,675		)	(2,382		)	(5,058		)	—			(2,450		)	(2,209		)	(4,659		)
Capital contribution to FPL	(100		)	—			100			—			—			—			—			—
Cash grants under the Recovery Act	—			321			—			321			—			170			—			170
Sale of independent power investments	—			307			—			307			—			—			—			—
Change in loan proceeds restricted for construction	—			(18		)	—			(18		)	—			245			—			245
Proceeds from the sale of a noncontrolling interest in subsidiaries	—			438			—			438			—			—			—			—
Other - net	(284		)	(60		)	276			(68		)	(668		)	20			626			(22		)
Net cash used in investing activities	(385		)	(1,687		)	(2,006		)	(4,078		)	(668		)	(2,015		)	(1,583		)	(4,266		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	—			3,246			998			4,244			—			3,155			498			3,653
Retirements of long-term debt	—			(3,333		)	(355		)	(3,688		)	—			(1,216		)	(453		)	(1,669		)
Proceeds from sale of differential membership interests	—			39			—			39			—			201			—			201
Net change in short-term debt	—			419			76			495			—			(971		)	476			(495		)
Issuances of common stock	57			—			—			57			415			—			—			415
Dividends on common stock	(945		)	—			—			(945		)	(836		)	—			—			(836		)
Other - net	(79		)	312			(278		)	(45		)	(86		)	569			(647		)	(164		)
Net cash provided by (used in) financing activities	(967		)	683			441			157			(507		)	1,738			(126		)	1,105
Net increase (decrease) in cash and cash equivalents	1			37			9			47			(1		)	217			13			229
Cash and cash equivalents at beginning of period	—			418			20			438			2			287			40			329
Cash and cash equivalents at end of period	$	1		$	455		$	29		$	485		$	1		$	504		$	53		$	558

————————————

(a) Represents FPL and consolidating adjustments.