XML 44 R25.htm IDEA: XBRL DOCUMENT

Non-Derivative Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Financial assets and liabilities and other 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:


	March 31, 2023
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	1,528	$	—		$	—	$	1,528
FPL – equity securities	$	116	$	—		$	—	$	116
Special use funds:(b)
NEE:
Equity securities	$	2,141	$	2,537	(c)	$	—	$	4,678
U.S. Government and municipal bonds	$	716	$	58		$	—	$	774
Corporate debt securities	$	6	$	715		$	—	$	721
Asset-backed securities	$	—	$	645		$	—	$	645
Other debt securities	$	3	$	18		$	—	$	21
FPL:
Equity securities	$	778	$	2,309	(c)	$	—	$	3,087
U.S. Government and municipal bonds	$	587	$	25		$	—	$	612
Corporate debt securities	$	6	$	534		$	—	$	540
Asset-backed securities	$	—	$	467		$	—	$	467
Other debt securities	$	3	$	10		$	—	$	13
Other investments:(d)
NEE:
Equity securities	$	50	$	1		$	—	$	51
U.S. Government and municipal bonds	$	279	$	118		$	—	$	397
Corporate debt securities	$	—	$	341		$	122	$	463
Other debt securities	$	—	$	152		$	11	$	163
FPL:
Equity securities	$	10	$	—		$	—	$	10
Debt securities	$	—	$	114		$	—	$	114

———————————————

(a)Includes restricted cash equivalents of approximately $41 million ($33 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, 2022
	Level 1		Level 2			Level 3		Total
	(millions)
Assets:
Cash equivalents and restricted cash equivalents:(a)
NEE – equity securities	$	961	$	—		$	—	$	961
FPL – equity securities	$	36	$	—		$	—	$	36
Special use funds:(b)
NEE:
Equity securities	$	2,062	$	2,375	(c)	$	—	$	4,437
U.S. Government and municipal bonds	$	641	$	63		$	—	$	704
Corporate debt securities	$	6	$	716		$	—	$	722
Asset-backed securities	$	—	$	615		$	—	$	615
Other debt securities	$	1	$	19		$	—	$	20
FPL:
Equity securities	$	743	$	2,162	(c)	$	—	$	2,905
U.S. Government and municipal bonds	$	505	$	29		$	—	$	534
Corporate debt securities	$	6	$	547		$	—	$	553
Asset-backed securities	$	—	$	473		$	—	$	473
Other debt securities	$	1	$	11		$	—	$	12
Other investments:(d)
NEE:
Equity securities	$	30	$	1		$	—	$	31
U.S. Government and municipal bonds	$	117	$	118		$	—	$	235
Corporate debt securities	$	—	$	125		$	108	$	233
Other debt securities	$	—	$	57		$	10	$	67
FPL:
Equity securities	$	9	$	—		$	—	$	9
Debt securities	$	—	$	114		$	—	$	114

———————————————

(a)Includes restricted cash equivalents of approximately $69 million ($33 million for FPL) in current other assets on the condensed consolidated balance sheets.

(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.

Significant unobservable inputs used in valuation of contracts categorized as Level 3

The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at March 31, 2023 are as follows:


	Fair Value at				Valuation	Significant				Weighted-
Transaction Type	March 31, 2023				Technique(s)	Unobservable Inputs	Range			average(a)
	Assets		Liabilities
	(millions)
Forward contracts – power	$	309	$	547	Discounted cash flow	Forward price (per MWh)	$(10)	—	$441	$51
Forward contracts – gas	296		90		Discounted cash flow	Forward price (per MMBtu)	$2	—	$17	$4
Forward contracts – congestion	71		23		Discounted cash flow	Forward price (per MWh)	$(21)	—	$27	$1
Options – power	106		17		Option models	Implied correlations	44%	—	88%	53%
						Implied volatilities	46%	—	229%	94%
Options – primarily gas	614		481		Option models	Implied correlations	44%	—	88%	53%
						Implied volatilities	22%	—	145%	59%
Full requirements and unit contingent contracts	691		399		Discounted cash flow	Forward price (per MWh)	$4	—	$338	$70
						Customer migration rate(b)	—%	—	103%	7%
Forward contracts – other	130		204
Total	$	2,217	$	1,761

———————————————

(a)Unobservable inputs were weighted by volume.

(b)Applies only to full requirements contracts.

Fair Value, by Balance Sheet Grouping

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:


	March 31, 2023					December 31, 2022
	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(millions)
NEE:
Special use funds(a)	$	1,023	$	1,024		$	998	$	999
Other receivables, net of allowances(b)	$	236	$	236		$	221	$	221
Long-term debt, including current portion	$	65,930	$	62,621	(c)	$	61,889	$	57,892	(c)
FPL:
Special use funds(a)	$	752	$	752		$	744	$	744
Long-term debt, including current portion	$	23,457	$	22,307	(c)	$	21,002	$	19,364	(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)Included in noncurrent other assets on NEE's condensed consolidated balance sheets (primarily Level 3).

(c)At March 31, 2023 and December 31, 2022, substantially all is Level 2 for NEE and FPL.

Unrealized Gains (Losses) Recognized On Equity Securities Still Held at The Reporting Date

Unrealized gains (losses) recognized on equity securities held at March 31, 2023 and 2022 are as follows:


		NEE					FPL
	Three Months Ended March 31,					Three Months Ended March 31,
		2023		2022			2023		2022
		(millions)
Unrealized gains (losses)		$	273	$	(299)		$	180	$	(190)

Gains and Losses on Available-for-sale Debt Securities

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 March 31,					Three Months Ended March 31,
		2023		2022			2023		2022
		(millions)
Realized gains		$	8	$	8		$	7	$	7
Realized losses		$	38	$	27		$	30	$	19
Proceeds from sale or maturity of securities		$	428	$	721		$	299	$	418

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
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
	(millions)
Unrealized gains	$	18	$	4	$	13	$	3
Unrealized losses(a)	$	223	$	285	$	147	$	193
Fair value	$	2,181	$	2,315	$	1,212	$	1,466

———————————————

(a) Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at March 31, 2023 and December 31, 2022 were not material to NEE or FPL.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details