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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Financial assets and liabilities and other fair value measurements
Recurring Fair Value Measurements - NEE's and FPL's financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:
 
December 31, 2017
 
 
Level 1
 
Level 2
 
Level 3
 
Netting(a)
 
Total
 
 
(millions)
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash equivalents and restricted cash:(b)
 
 
 
 
 
 
 
 
 
 
NEE - equity securities
$
1,294

 
$
—

 
$
—

 
 
 
$
1,294

 
FPL - equity securities
$
144

 
$
—

 
$
—

 
 
 
$
144

 
Special use funds:(c)
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
1,595

 
$
1,719

(d) 
$
—

 
 
 
$
3,314

 
U.S. Government and municipal bonds
$
478

 
$
139

 
$
—

 
 
 
$
617

 
Corporate debt securities
$
1

 
$
764

 
$
—

 
 
 
$
765

 
Mortgage-backed securities
$
—

 
$
435

 
$
—

 
 
 
$
435

 
Other debt securities
$
—

 
$
129

 
$
—

 
 
 
$
129

 
FPL:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
473

 
$
1,562

(d) 
$
—

 
 
 
$
2,035

 
U.S. Government and municipal bonds
$
362

 
$
112

 
$
—

 
 
 
$
474

 
Corporate debt securities
$
—

 
$
539

 
$
—

 
 
 
$
539

 
Mortgage-backed securities
$
—

 
$
333

 
$
—

 
 
 
$
333

 
Other debt securities
$
—

 
$
116

 
$
—

 
 
 
$
116

 
Other investments:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
2

 
$
10

 
$
—

 
 
 
$
12

 
Debt securities
$
34

 
$
103

 
$
—

 
 
 
$
137

 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,303

 
$
1,301

 
$
1,358

 
$
(2,225
)
 
$
1,737

(e) 
Interest rate contracts
$
—

 
$
50

 
$
—

 
$
5

 
$
55

(e) 
Foreign currency contracts
$
—

 
$
—

 
$
—

 
$
12

 
$
12

(e) 
FPL - commodity contracts
$
—

 
$
1

 
$
2

 
$
(1
)
 
$
2

(e) 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,217

 
$
915

 
$
660

 
$
(2,225
)
 
$
567

(e) 
Interest rate contracts
$
—

 
$
143

 
$
132

 
$
5

 
$
280

(e) 
Foreign currency contracts
$
—

 
$
40

 
$
—

 
$
12

 
$
52

(e) 
FPL - commodity contracts
$
—

 
$
1

 
$
2

 
$
(1
)
 
$
2

(e) 
______________________
(a)
Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.
(b)
Includes restricted cash of approximately $159 million ($128 million for FPL) in current other assets on the consolidated balance sheets.
(c)
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.
(d)
Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.
(e)
See Note 3 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to NEE's and FPL's consolidated balance sheets.

 
December 31, 2016
 
 
Level 1
 
Level 2
 
Level 3
 
Netting(a)
 
Total
 
 
(millions)
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash equivalents and restricted cash:(b)
 
 
 
 
 
 
 
 
 
 
NEE - equity securities
$
982

 
$
—

 
$
—

 
 
 
$
982

 
FPL - equity securities
$
120

 
$
—

 
$
—

 
 
 
$
120

 
Special use funds:(c)
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
1,410

 
$
1,503

(d) 
$
—

 
 
 
$
2,913

 
U.S. Government and municipal bonds
$
296

 
$
170

 
$
—

 
 
 
$
466

 
Corporate debt securities
$
1

 
$
763

 
$
—

 
 
 
$
764

 
Mortgage-backed securities
$
—

 
$
498

 
$
—

 
 
 
$
498

 
Other debt securities
$
—

 
$
81

 
$
—

 
 
 
$
81

 
FPL:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
373

 
$
1,372

(d) 
$
—

 
 
 
$
1,745

 
U.S. Government and municipal bonds
$
221

 
$
141

 
$
—

 
 
 
$
362

 
Corporate debt securities
$
—

 
$
547

 
$
—

 
 
 
$
547

 
Mortgage-backed securities
$
—

 
$
384

 
$
—

 
 
 
$
384

 
Other debt securities
$
—

 
$
70

 
$
—

 
 
 
$
70

 
Other investments:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
26

 
$
9

 
$
—

 
 
 
$
35

 
Debt securities
$
8

 
$
153

 
$
—

 
 
 
$
161

 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,563

 
$
1,827

 
$
1,200

 
$
(2,652
)
 
$
1,938

(e) 
Interest rate contracts
$
—

 
$
285

 
$
3

 
$
8

 
$
296

(e) 
Foreign currency contracts
$
—

 
$
1

 
$
—

 
$
—

 
$
1

(d) 
FPL - commodity contracts
$
—

 
$
208

 
$
4

 
$
(3
)
 
$
209

(e) 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,476

 
$
980

 
$
512

 
$
(2,485
)
 
$
483

(e) 
Interest rate contracts
$
—

 
$
171

 
$
113

 
$
8

 
$
292

(e) 
Foreign currency contracts
$
—

 
$
106

 
$
—

 
$
—

 
$
106

(e) 
FPL - commodity contracts
$
—

 
$
1

 
$
3

 
$
(3
)
 
$
1

(e) 
______________________
(a)
Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.
(b)
Includes restricted cash of approximately $164 million ($120 million for FPL) in current other assets on the consolidated balance sheets.
(c)
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.
(d)
Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.
(e)
See Note 3 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to NEE's and FPL's consolidated balance sheets.
Reconciliation of changes in the fair value of derivatives measured based on significant unobservable inputs
The reconciliation of changes in the fair value of derivatives that are based on significant unobservable inputs is as follows:
 
Years Ended December 31,
 
2017
 
2016
 
2015
 
NEE
 
FPL
 
NEE
 
FPL
 
NEE
 
FPL
 
(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year
$
578

 
$
1

 
$
538

 
$
—

 
$
622

 
$
5

Realized and unrealized gains (losses):
 

 
 

 
 

 
 

 
 

 
 

Included in earnings(a)
376

 
—

 
333

 
—

 
451

 
—

Included in other comprehensive income (loss)(b)
(18
)
 
—

 
8

 
—

 
11

 
—

Included in regulatory assets and liabilities
—

 
—

 
1

 
1

 
3

 
3

Purchases
126

 
—

 
261

 
—

 
180

 
—

Settlements
(317
)
 
(1
)
 
(390
)
 
—

 
(473
)
 
(8
)
Issuances
(197
)
 
—

 
(195
)
 
—

 
(202
)
 
—

Transfers in(c)
17

 
—

 
19

 
—

 
(13
)
 
—

Transfers out(c)
1

 
—

 
3

 
—

 
(41
)
 
—

Fair value of net derivatives based on significant unobservable inputs at December 31
$
566

 
$
—

 
$
578

 
$
1

 
$
538

 
$
—

The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to derivatives still held at the reporting date(d)
$
277

 
$
—

 
$
219

 
$
—

 
$
277

 
$
—

______________________
(a)
For the years ended December 31, 2017 and 2016, $379 million and $397 million of realized and unrealized gains are reflected in the consolidated statements of income in operating revenues and the balance is reflected in interest expense. For the year ended December 31, 2015, $462 million of realized and unrealized gains are reflected in the consolidated statements of income in operating revenues and the balance is primarily reflected in interest expense.
(b)
Reflected in net unrealized gains (losses) on foreign currency translation on the consolidated statements of comprehensive income.
(c)
Transfers into Level 3 were a result of decreased observability of market data. Transfers from Level 3 to Level 2 were a result of increased observability of market data and, in 2016, a favorable change to a credit valuation adjustment. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.
(d)
For the years ended December 31, 2017, 2016 and 2015, $281 million, $283 million, and $289 million of unrealized gains are reflected in the consolidated statements of income in operating revenues and the balance is reflected in interest expense.
Fair Value Inputs, Assets, Quantitative Information
The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at December 31, 2017 are as follows:
Transaction Type
 
Fair Value at
December 31, 2017
 
Valuation
Technique(s)
 
Significant
Unobservable Inputs
 
Range
 
 
Assets
 
Liabilities
 
 
 
 
 
 
 
 
 
 
(millions)
 
 
 
 
 
 
 
 
Forward contracts - power
 
$
845

 
$
328

 
Discounted cash flow
 
Forward price (per MWh)
 
$—
—
$130
Forward contracts - gas
 
26

 
13

 
Discounted cash flow
 
Forward price (per MMBtu)
 
$2
—
$7
Forward contracts - other commodity related
 
—

 
5

 
Discounted cash flow
 
Forward price (various)
 
$(40)
—
$57
Options - power
 
47

 
17

 
Option models
 
Implied correlations
 
1%
—
100%
 
 
 
 
 
 
 
 
Implied volatilities
 
8%
—
493%
Options - primarily gas
 
165

 
199

 
Option models
 
Implied correlations
 
1%
—
100%
 
 
 
 
 
 
 
 
Implied volatilities
 
1%
—
290%
Full requirements and unit contingent contracts
 
275

 
98

 
Discounted cash flow
 
Forward price (per MWh)
 
$(29)
—
$293
 
 
 
 
 
 
 
 
Customer migration rate(a)
 
—%
—
20%
Total
 
$
1,358

 
$
660

 
 
 
 
 
 
 
 
______________________
(a)
Applies only to full requirements contracts.
Fair Value, by Balance Sheet Grouping
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:
 
December 31, 2017
 
December 31, 2016
 
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
 
(millions)
 
NEE:
 
 
Special use funds(a)
$
743

 
$
744

 
$
712

 
$
712

 
Other investments - primarily notes receivable(b)
$
500

 
$
680


$
526

 
$
668

 
Long-term debt, including current maturities
$
33,134

 
$
35,447

(c) 
$
30,418

(d) 
$
31,623

(c)(d) 
FPL:
 
 
 
 
 
 
 
 
Special use funds(a)
$
593

 
$
593

 
$
557

 
$
557

 
Long-term debt, including current maturities
$
11,702

 
$
13,285

(c) 
$
10,072

 
$
11,211

(c) 
______________________
(a)
Primarily represents investments accounted for under the equity method and loans not measured at fair value on a recurring basis.
(b)
Primarily a note receivable which bears interest at a fixed rate and matures in 2029. At December 31, 2017, the note receivable is classified as held for sale and is under contract, along with debt secured by this note receivable (see Note 8 - NEER). Fair values are estimated using an income approach utilizing a discounted cash flow valuation technique based on certain observable yield curves and indices considering the credit profile of the borrower (Level 3).
(c)
At December 31, 2017 and 2016, for NEE, approximately $33,743 million and $29,804 million, respectively, is estimated using a market approach based on quoted market prices for the same or similar issues (Level 2); the balance is estimated using an income approach utilizing a discounted cash flow valuation technique, considering the current credit profile of the debtor (Level 3). For FPL, primarily estimated using quoted market prices for the same or similar issues (Level 2).
(d)
Excludes debt totaling approximately $373 million reflected in liabilities associated with assets held for sale on NEE's consolidated balance sheets for which the carrying amount approximates fair value. See Note 1 - Assets and Liabilities Associated with Assets Held for Sale.
Available-for-sale Securities
Realized gains and losses and proceeds from the sale or maturity of available for sale securities are as follows:
 
NEE
 
FPL
 
Years Ended December 31,
 
Years Ended December 31,
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
(millions)
Realized gains
$
178

 
$
116

 
$
194

 
$
75

 
$
53

 
$
70

Realized losses
$
83

 
$
76

 
$
87

 
$
50

 
$
44

 
$
43

Proceeds from sale or maturity of securities
$
2,817

 
$
3,400

 
$
4,643

 
$
1,902

 
$
2,442

 
$
3,724


The unrealized gains on available for sale securities are as follows:
 
NEE
 
FPL
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
 
 
 
(millions)
 
 
Equity securities
$
1,813

 
$
1,396

 
$
1,273

 
$
1,007

Debt securities
$
37

 
$
22

 
$
28

 
$
17


The 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
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
 
 
 
(millions)
 
 
Unrealized losses(a)
$
12

 
$
34

 
$
9

 
$
28

Fair value
$
918

 
$
959

 
$
670

 
$
722

______________________
(a)
Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at December 31, 2017 and 2016 were not material to NEE or FPL.