Summarized Financial Information of NEECH

6 Months Ended

Jun. 30, 2019

Summarized Financial Information [Abstract]

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 and Gulf Power. NEECH’s debentures and junior subordinated debentures including those that were registered pursuant to the Securities Act of 1933, as amended, are fully and unconditionally guaranteed by NEE. Condensed consolidating financial information is as follows:

Condensed Consolidating Statements of Income



	Three Months Ended June 30,
	2019												2018^(a)
	NEE (Guarantor)			NEECH			Other^(b)			NEE Consoli- dated			NEE (Guarantor)			NEECH			Other^(b)			NEE Consoli- dated
										(millions)
Operating revenues	$	—		$	1,474		$	3,496		$	4,970		$	—		$	1,189		$	2,874		$	4,063
Operating expenses - net	(41		)	(606		)	(2,576		)	(3,223		)	(58		)	(905		)	(1,954		)	(2,917		)
Interest expense	(1		)	(434		)	(166		)	(601		)	(10		)	(244		)	(140		)	(394		)
Equity in earnings of subsidiaries	1,235			—			(1,235		)	—			794			—			(794		)	—
Equity in earnings (losses) of equity method investees	—			(6		)	—			(6		)	—			52			—			52
Other income - net	36			75			12			123			52			38			19			109
Income (loss) before income taxes	1,229			503			(469		)	1,263			778			130			5			913
Income tax expense (benefit)	(5		)	68			61			124			(3		)	54			175			226
Net income (loss)	1,234			435			(530		)	1,139			781			76			(170		)	687
Net loss attributable to noncontrolling interests	—			95			—			95			—			94			—			94
Net income (loss) attributable to NEE	$	1,234		$	530		$	(530	)	$	1,234		$	781		$	170		$	(170	)	$	781



	Six Months Ended June 30,
	2019												2018^(a)
	NEE (Guarantor)			NEECH			Other^(b)			NEE Consoli- dated			NEE (Guarantor)			NEECH			Other^(b)			NEE Consoli- dated
										(millions)
Operating revenues	$	—		$	2,640		$	6,404		$	9,044		$	—		$	2,460		$	5,460		$	7,920
Operating expenses - net	(97		)	(1,480		)	(4,585		)	(6,162		)	(113		)	(1,764		)	(3,838		)	(5,715		)
Interest expense	(2		)	(996		)	(317		)	(1,315		)	(11		)	(336		)	(273		)	(620		)
Equity in earnings of subsidiaries	1,929			—			(1,929		)	—			5,158			—			(5,158		)	—
Equity in earnings of equity method investees	—			10			—			10			—			249			—			249
Gain on NEP deconsolidation	—			—			—			—			—			3,927			—			3,927
Other income - net	87			242			37			366			102			90			44			236
Income (loss) before income taxes	1,917			416			(390		)	1,943			5,136			4,626			(3,765		)	5,997
Income tax expense (benefit)	3			(26		)	221			198			(76		)	1,264			288			1,476
Net income (loss)	1,914			442			(611		)	1,745			5,212			3,362			(4,053		)	4,521
Net loss attributable to noncontrolling interests	—			169			—			169			—			691			—			691
Net income (loss) attributable to NEE	$	1,914		$	611		$	(611	)	$	1,914		$	5,212		$	4,053		$	(4,053	)	$	5,212

———————————————


(a)	Amounts have been retrospectively adjusted for an accounting standards update related to leases.


(b)	Represents primarily FPL and consolidating adjustments.

Condensed Consolidating Statements of Comprehensive Income



	Three Months Ended June 30,
	2019									2018^(a)
	NEE (Guarantor)		NEECH		Other^(b)			NEE Consoli- dated		NEE (Guarantor)		NEECH		Other^(b)			NEE Consoli- dated
								(millions)
Comprehensive income (loss) attributable to NEE	$	1,256	$	553	$	(553	)	$	1,256	$	786	$	176	$	(176	)	$	786



	Six Months Ended June 30,
	2019									2018^(a)
	NEE (Guarantor)		NEECH		Other^(b)			NEE Consoli- dated		NEE (Guarantor)		NEECH		Other^(b)			NEE Consoli- dated
								(millions)
Comprehensive income (loss) attributable to NEE	$	1,912	$	663	$	(663	)	$	1,912	$	5,256	$	4,100	$	(4,100	)	$	5,256

———————————————


(a)	Amounts have been retrospectively adjusted for an accounting standards update related to leases.


(b)	Represents primarily FPL and consolidating adjustments.

Condensed Consolidating Balance Sheets



	June 30, 2019												December 31, 2018
	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	$	354		$	37,709		$	61,988		$	100,051		$	220		$	37,145		$	54,718		$	92,083
Accumulated depreciation and amortization	(85		)	(8,874		)	(14,956		)	(23,915		)	(58		)	(8,473		)	(13,218		)	(21,749		)
Total property, plant and equipment - net	269			28,835			47,032			76,136			162			28,672			41,500			70,334
CURRENT ASSETS
Cash and cash equivalents	1			913			105			1,019			(1		)	525			114			638
Receivables	161			1,641			1,319			3,121			292			1,771			906			2,969
Other	7			1,783			1,541			3,331			5			1,425			1,356			2,786
Total current assets	169			4,337			2,965			7,471			296			3,721			2,376			6,393
OTHER ASSETS
Investment in subsidiaries	34,585			—			(34,585		)	—			33,397			—			(33,397		)	—
Investment in equity method investees	—			7,202			—			7,202			—			6,748			—			6,748
Goodwill	1			593			2,902			3,496			1			587			303			891
Other	511			6,543			9,193			16,247			937			5,890			12,509			19,336
Total other assets	35,097			14,338			(22,490		)	26,945			34,335			13,225			(20,585		)	26,975
TOTAL ASSETS	$	35,535		$	47,510		$	27,507		$	110,552		$	34,793		$	45,618		$	23,291		$	103,702
CAPITALIZATION
Common shareholders' equity	$	34,910		$	8,785		$	(8,785	)	$	34,910		$	34,144		$	7,917		$	(7,917	)	$	34,144
Noncontrolling interests	—			3,516			—			3,516			—			3,269			—			3,269
Redeemable noncontrolling interests	—			68			—			68			—			468			—			468
Long-term debt	—			19,478			14,469			33,947			—			15,094			11,688			26,782
Total capitalization	34,910			31,847			5,684			72,441			34,144			26,748			3,771			64,663
CURRENT LIABILITIES
Debt due within one year	—			6,657			1,113			7,770			—			9,579			1,351			10,930
Accounts payable	2			1,893			703			2,598			32			1,730			624			2,386
Other	409			1,613			2,022			4,044			168			2,364			1,715			4,247
Total current liabilities	411			10,163			3,838			14,412			200			13,673			3,690			17,563
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	—			1,018			2,365			3,383			—			988			2,147			3,135
Deferred income taxes	(406		)	2,748			5,744			8,086			(157		)	2,778			4,746			7,367
Other	620			1,734			9,876			12,230			606			1,431			8,937			10,974
Total other liabilities and deferred credits	214			5,500			17,985			23,699			449			5,197			15,830			21,476
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	35,535		$	47,510		$	27,507		$	110,552		$	34,793		$	45,618		$	23,291		$	103,702

———————————————

(a)

Represents primarily FPL and consolidating adjustments.

Condensed Consolidating Statements of Cash Flows



	Six Months Ended June 30,
	2019												2018^(a)
	NEE (Guaran- tor)			NEECH			Other^(b)			NEE Consoli- dated			NEE (Guaran- tor)			NEECH			Other^(b)			NEE Consoli- dated
										(millions)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	1,737		$	558		$	986		$	3,281		$	2,005		$	1,459		$	(528	)	$	2,936
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, independent power and other investments and nuclear fuel purchases	(153		)	(2,637		)	(7,110		)	(9,900		)	(71		)	(3,348		)	(2,504		)	(5,923		)
Capital contributions from NEE	(386		)	—			386			—			(854		)	—			854			—
Sale of independent power and other investments of NEER	—			995			—			995			—			311			—			311
Proceeds from sale or maturity of securities in special use funds and other investments	—			783			1,276			2,059			—			687			1,101			1,788
Purchases of securities in special use funds and other investments	—			(772		)	(1,333		)	(2,105		)	—			(764		)	(1,228		)	(1,992		)
Distributions from equity method investees of independent power investments	—			—			—			—			—			633			—			633
Other - net	18			18			24			60			12			(206		)	22			(172		)
Net cash used in investing activities	(521		)	(1,613		)	(6,757		)	(8,891		)	(913		)	(2,687		)	(1,755		)	(5,355		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	—			5,751			1,803			7,554			—			1,281			1,594			2,875
Retirements of long-term debt	—			(1,722		)	(154		)	(1,876		)	—			(415		)	(799		)	(1,214		)
Net change in commercial paper	—			2,013			(381		)	1,632			—			1,405			(700		)	705
Proceeds from other short-term debt	—			—			—			—			—			200			—			200
Repayments of other short-term debt	—			(4,600		)	—			(4,600		)	—			—			(250		)	(250		)
Payments from related parties under CSCS agreement - net	—			671			—			671			—			50			—			50
Issuances of common stock - net	26			—			—			26			11			—			—			11
Dividends on common stock	(1,197		)	—			—			(1,197		)	(1,047		)	—			—			(1,047		)
Contributions from (dividends to) NEE	—			(80		)	80			—			—			(2,408		)	2,408			—
Other - net	(43		)	(93		)	(22		)	(158		)	(56		)	(56		)	(31		)	(143		)
Net cash provided by (used in) financing activities	(1,214		)	1,940			1,326			2,052			(1,092		)	57			2,222			1,187
Effects of currency translation on cash, cash equivalents and restricted cash	—			8			—			8			—			(15		)	—			(15		)
Net increase (decrease) in cash, cash equivalents and restricted cash	2			893			(4,445		)	(3,550		)	—			(1,186		)	(61		)	(1,247		)
Cash, cash equivalents and restricted cash at beginning of period	(1		)	533			4,721			5,253			1			1,807			175			1,983
Cash, cash equivalents and restricted cash at end of period	$	1		$	1,426		$	276		$	1,703		$	1		$	621		$	114		$	736

———————————————


(a)	Amounts have been retrospectively adjusted for an accounting standards update related to leases.


(b)	Represents primarily FPL and consolidating adjustments.