XML 70 R35.htm IDEA: XBRL DOCUMENT v3.20.4
Employee Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Plan assets, benefit obligations, and funded status included in the consolidated balance sheets
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:
 20202019
 (millions)
Change in pension plan assets:  
Fair value of plan assets at January 1$4,800 $3,806 
Actual return on plan assets723 736 
Benefit payments
(209)(235)
Acquisitions(a)
— 493 
Fair value of plan assets at December 31$5,314 $4,800 
Change in pension benefit obligation:  
Obligation at January 1$3,363 $2,522 
Service cost
85 80 
Interest cost
92 114 
Acquisitions(a)
— 503 
Special termination benefits(b)
16 19 
Plan amendments
1 3 
Actuarial losses - net(c)
259 357 
Benefit payments(209)(235)
Obligation at December 31(d)
$3,607 $3,363 
Funded status:  
Prepaid pension benefit costs at NEE at December 31$1,707 $1,437 
Prepaid pension benefit costs at FPL at December 31(e)
$1,554 $1,477 
_________________________
(a)Relates to substantially funded pension obligations in connection with the acquisition of Gulf Power, see Note 6 - Gulf Power Company.
(b)Reflects enhanced early retirement programs.
(c)Primarily driven by decrease in discount rates.
(d)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2020 and 2019 was approximately $3,521 million and $3,281 million, respectively.
(e)Reflects FPL's allocated benefits under NEE's pension plan.
Unrecognized amounts included in accumulated other comprehensive income (loss)
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:
2020 2019
(millions)
Unrecognized prior service benefit (net of $1 and $2 tax expense, respectively)$2 $2 
Unrecognized losses (net of $24 and $37 tax benefit, respectively)(60)(108)
Total$(58)$(106)
Unrecognized amounts included in regulatory assets (liabilities)
NEE's unrecognized amounts included in regulatory assets yet to be recognized as components of net prepaid pension benefit costs are as follows:
20202019
(millions)
Unrecognized prior service benefit$(1)$(2)
Unrecognized losses 163 263 
Total$162 $261 
Significant assumptions used to determine benefit obligations and net periodic benefit (income) cost
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.
20202019
Discount rate(a)
2.53 %3.22 %
Salary increase4.40 %4.40 %
Weighted-average interest crediting rate3.82 %3.83 %
_________________________
(a)The method of estimating the interest cost component of net periodic benefit costs uses a full yield curve approach by applying a specific spot rate along the yield curve.
The assumptions used to determine net periodic pension income for the pension plan are as follows:
 202020192018
Discount rate3.22 %4.26 %3.59 %
Salary increase4.40 %4.40 %4.10 %
Expected long-term rate of return, net of investment management fees(a)
7.35 %7.35 %7.35 %
Weighted-average interest crediting rate3.83 %3.88 %3.94 %
______________________
(a)In developing the expected long-term rate of return on assets assumption for its pension plan, NEE evaluated input, including other qualitative and quantitative factors, from its actuaries and consultants, as well as information available in the marketplace. NEE considered different models, capital market return assumptions and historical returns for a portfolio with an equity/bond asset mix similar to its pension fund. NEE also considered its pension fund's historical compounded returns.
Fair value measurements of pension plan assets by hierarchy level
The fair value measurements of NEE's pension plan assets by fair value hierarchy level are as follows:
December 31, 2020(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)
$2,017 $10 $3 $2,030 
Equity commingled vehicles(c)
— 668 — 668 
U.S. Government and municipal bonds169 8 — 177 
Corporate debt securities(d)
— 340 — 340 
Asset-backed securities— 375 — 375 
Debt security commingled vehicles(e)
— 201 — 201 
Convertible securities(f)
64 453 — 517 
Total investments in the fair value hierarchy$2,250 $2,055 $3 4,308 
Total investments measured at net asset value(g)
1,006 
Total fair value of plan assets$5,314 
_____________________
(a)See Notes 3 and 4 for discussion of fair value measurement techniques and inputs.
(b)Includes foreign investments of $881 million.
(c)Includes foreign investments of $156 million.
(d)Includes foreign investments of $93 million.
(e)Includes foreign investments of $5 million.
(f)Includes foreign investments of $35 million.
(g)Includes foreign investments of $153 million.
 
December 31, 2019(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)
$1,593 $9 $3 $1,605 
Equity commingled vehicles(c)
— 706 — 706 
U.S. Government and municipal bonds95 7 — 102 
Corporate debt securities(d)
— 247 — 247 
Asset-backed securities— 416 — 416 
Debt security commingled vehicles(e)
47 143 — 190 
Convertible securities(f)
32 372 — 404 
Total investments in the fair value hierarchy$1,767 $1,900 $3 3,670 
Total investments measured at net asset value(g)
1,130 
Total fair value of plan assets$4,800 
______________________
(a)See Notes 3 and 4 for discussion of fair value measurement techniques and inputs.
(b)Includes foreign investments of $741 million.
(c)Includes foreign investments of $141 million.
(d)Includes foreign investments of $76 million.
(e)Includes foreign investments of $5 million.
(f)Includes foreign investments of $20 million.
(g)Includes foreign investments of $190 million.
Expected benefit payments, net of government drug subsidy
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):
2021$228 
2022$200 
2023$202 
2024$204 
2025$206 
2026 - 2030$1,024 
Net periodic benefit (income) cost
Net Periodic Income - The components of net periodic income for the plans are as follows:
Pension BenefitsPostretirement Benefits
202020192018202020192018
 (millions)
Service cost$85 $80 $70 $1 $1 $1 
Interest cost92 114 82 8 9 7 
Expected return on plan assets(321)(312)(276)— — — 
Amortization of actuarial loss18 — — 3 — — 
Amortization of prior service benefit(1)(1)(1)(16)(15)(15)
Special termination benefits16 19 35 — — — 
Net periodic income at NEE$(111)$(100)$(90)$(4)$(5)$(7)
Net periodic income allocated to FPL$(77)$(71)$(57)$(3)$(4)$(6)
Components of net periodic benefit income (cost) recognized in OCI
Other Comprehensive Income - The components of net periodic income recognized in OCI for the pension plan are as follows:
 202020192018
 (millions)
Net gains (losses) (net of $13 tax expense, $10 tax benefit and $4 tax benefit, respectively)$42 $(36)$(13)
Amortization of unrecognized losses (net of $1 tax expense)5 — — 
Total$47 $(36)$(13)
Components of net periodic benefit (income) cost recognized in regulatory assets (liabilities)
Regulatory Assets (Liabilities) - The components of net periodic income recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:
 20202019
 (millions)
Prior service cost$1 $— 
Unrecognized gains(89)(113)
Amortization of prior service cost1 $1 
Amortization of unrecognized losses(12)— 
Total$(99)$(112)