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Employee Retirement Benefits (Tables)
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12 Months Ended |
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Dec. 31, 2011
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| Employee Retirement Benefits [Abstract] |
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| Plan assets, benefit obligations, and funded status included in the consolidated balance sheets |
Plan Assets, Benefit Obligations and Funded Status - The changes in assets and benefit obligations of the plans and the plans' funded status are as follows: | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2011 | | 2010 | | (millions) | Change in plan assets: | | | | | | | | Fair value of plan assets at January 1 | $ | 3,233 |
| | $ | 3,028 |
| | $ | 32 |
| | $ | 32 |
| Actual return on plan assets | (3 | ) | | 380 |
| | (2 | ) | | 2 |
| Employer contributions(a) | 1 |
| | 3 |
| | 29 |
| | 28 |
| Transfers(b) | — |
| | (29 | ) | | — |
| | — |
| Participant contributions | — |
| | — |
| | 8 |
| | 9 |
| Benefit payments(a) | (109 | ) | | (149 | ) | | (39 | ) | | (39 | ) | Fair value of plan assets at December 31 | $ | 3,122 |
| | $ | 3,233 |
| | $ | 28 |
| | $ | 32 |
| Change in benefit obligation: | |
| | |
| | |
| | |
| Obligation at January 1 | $ | 1,994 |
| | $ | 1,866 |
| | $ | 417 |
| | $ | 430 |
| Service cost | 64 |
| | 59 |
| | 6 |
| | 6 |
| Interest cost | 98 |
| | 102 |
| | 21 |
| | 23 |
| Participant contributions | — |
| | — |
| | 8 |
| | 9 |
| Plan amendments | 22 |
| | 1 |
| | 17 |
| | — |
| Special termination benefits | — |
| | 13 |
| | — |
| | — |
| Actuarial losses (gains) - net | 54 |
| | 102 |
| | (3 | ) | | (12 | ) | Benefit payments(a) | (109 | ) | | (149 | ) | | (39 | ) | | (39 | ) | Obligation at December 31(c) | $ | 2,123 |
| | $ | 1,994 |
| | $ | 427 |
| | $ | 417 |
| Funded status: | |
| | |
| | |
| | |
| Prepaid (accrued) benefit cost at NEE at December 31 | $ | 999 |
| | $ | 1,239 |
| | $ | (399 | ) | | $ | (385 | ) | Prepaid (accrued) benefit cost at FPL at December 31 | $ | 1,080 |
| | $ | 1,027 |
| | $ | (273 | ) | | $ | (279 | ) |
__________________________ | | (a) | Employer contributions and benefit payments include only those amounts contributed directly to, or paid directly from, plan assets. FPL's portion of contributions related to SERP benefits was $1 million for 2011 and for 2010. FPL's portion of contributions related to other benefits was $27 million and $26 million for 2011 and 2010, respectively. |
| | (b) | Represents amounts that were transferred from the qualified pension plan as reimbursement for eligible retiree medical expenses paid by NEE pursuant to the provisions of the Internal Revenue Code. |
| | (c) | NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, for its pension plans at December 31, 2011 and 2010 was $2,068 million and $1,935 million, respectively. |
NEE's and FPL's prepaid (accrued) benefit cost shown above are included on the consolidated balance sheets as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NEE | | FPL | | Pension Benefits | | Other Benefits | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | | | | | | | | (millions) | | | | | | | Prepaid benefit costs | $ | 1,021 |
| | $ | 1,259 |
| | $ | — |
| | $ | — |
| | $ | 1,088 |
| | $ | 1,035 |
| | $ | — |
| | $ | — |
| Accrued benefit cost included in other current liabilities | (4 | ) | | (3 | ) | | (26 | ) | | (27 | ) | | (2 | ) | | (2 | ) | | (22 | ) | | (23 | ) | Accrued benefit cost included in other liabilities | (18 | ) | | (17 | ) | | (373 | ) | | (358 | ) | | (6 | ) | | (6 | ) | | (251 | ) | | (256 | ) | Prepaid (accrued) benefit cost at December 31 | $ | 999 |
| | $ | 1,239 |
| | $ | (399 | ) | | $ | (385 | ) | | $ | 1,080 |
| | $ | 1,027 |
| | $ | (273 | ) | | $ | (279 | ) |
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| 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 (accrued) benefit cost are as follows: | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2011 | | 2010 | | | | (millions) | | | Components of AOCI: | | | | | | | | Unrecognized prior service benefit (cost) (net of $3, $2 and $2 tax benefits, respectively) | $ | (5 | ) | | $ | (4 | ) | | $ | (3 | ) | | $ | — |
| Unrecognized transition obligation (net of $1 tax benefit) | — |
| | — |
| | — |
| | (1 | ) | Unrecognized gain (loss) (net of $24 tax benefit, $5 tax expense, $3 tax benefit and $5 tax benefit, respectively) | (37 | ) | | 8 |
| | (1 | ) | | (4 | ) | Total | $ | (42 | ) | | $ | 4 |
| | $ | (4 | ) | | $ | (5 | ) |
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| Unrecognized amounts included in regulatory assets (liabilities) |
NEE's unrecognized amounts included in regulatory assets (liabilities) yet to be recognized as components of net prepaid (accrued) benefit cost are as follows: | | | | | | | | | | | | | | | | | | Regulatory Assets (Liabilities) (Pension) | | Regulatory Assets (SERP and Other) | | 2011 | | 2010 | | 2011 | | 2010 | | (millions) | Unrecognized prior service cost | $ | 16 |
| | $ | 13 |
| | $ | 13 |
| | $ | 1 |
| Unrecognized transition obligation | — |
| | — |
| | 2 |
| | 4 |
| Unrecognized (gain) loss | 153 |
| | (64 | ) | | 44 |
| | 37 |
| Total | $ | 169 |
| | $ | (51 | ) | | $ | 59 |
| | $ | 42 |
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| Significant assumptions used to determine benefit obligations and net periodic benefit (income) cost |
The weighted-average assumptions used to determine net periodic benefit (income) cost for the plans are as follows:
| | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2009 | | 2011 | | 2010 | | 2009 | Discount rate | 5.00 | % | | 5.50 | % | | 6.90 | % | | 5.25 | % | | 5.50 | % | | 6.90 | % | Salary increase | 4.00 | % | | 4.00 | % | | 4.00 | % | | 4.00 | % | | 4.00 | % | | 4.00 | % | Expected long-term rate of return(a) | 7.75 | % | | 7.75 | % | | 7.75 | % | | 8.00 | % | | 8.00 | % | | 8.00 | % |
__________________________________ | | (a) | In developing the expected long-term rate of return on assets assumption for its plans, 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 funds. NEE also considered its funds' historical compounded returns. |
The following table provides the weighted-average assumptions used to determine benefit obligations for the plans. These rates are used in determining net periodic benefit cost in the following year.
| | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2011 | | 2010 | Discount rate | 4.65 | % | | 5.00 | % | | 4.75 | % | | 5.25 | % | Salary increase | 4.00 | % | | 4.00 | % | | 4.00 | % | | 4.00 | % |
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| 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, 2011(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) | $ | 750 |
| | $ | 5 |
| | $ | 1 |
| | $ | 756 |
| Equity commingled vehicles(c) | — |
| | 568 |
| | — |
| | 568 |
| U.S. Government and municipal bonds | 84 |
| | 51 |
| | — |
| | 135 |
| Corporate debt securities(d) | — |
| | 325 |
| | — |
| | 325 |
| Asset-backed securities | — |
| | 318 |
| | — |
| | 318 |
| Debt security commingled vehicles(e) | — |
| | 586 |
| | — |
| | 586 |
| Convertible securities | — |
| | 265 |
| | — |
| | 265 |
| Limited partnerships(f) | — |
| | 63 |
| | 106 |
| | 169 |
| Total | $ | 834 |
| | $ | 2,181 |
| | $ | 107 |
| | $ | 3,122 |
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__________________________________ | | (a) | See Note 4 for discussion of fair value measurement techniques. |
| | (b) | Includes foreign investments of $258 million. |
| | (c) | Includes foreign investments of $185 million. |
| | (d) | Includes foreign investments of $58 million. |
| | (e) | Includes foreign investments of $61 million and $85 million of short-term commingled vehicles. |
| | (f) | Includes alternative investments of $94 million, of which $31 million were foreign investments. Fair values have been estimated using net asset value per share of the investments. These investments primarily have a one- to three-year lockup and are redeemable on either a quarterly or annual basis with a 30 to 90 day redemption notification requirement and have unfunded commitments of $24 million. |
| | | | | | | | | | | | | | | | | | December 31, 2010(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) | $ | 800 |
| | $ | 6 |
| | $ | — |
| | $ | 806 |
| Equity commingled vehicles(c) | — |
| | 669 |
| | 11 |
| | 680 |
| U.S. Government and municipal bonds | 60 |
| | 35 |
| | — |
| | 95 |
| Corporate debt securities(d) | — |
| | 335 |
| | — |
| | 335 |
| Asset-backed securities | — |
| | 263 |
| | — |
| | 263 |
| Debt security commingled vehicles(e) | — |
| | 744 |
| | — |
| | 744 |
| Convertible securities | — |
| | 310 |
| | — |
| | 310 |
| Total | $ | 860 |
| | $ | 2,362 |
| | $ | 11 |
| | $ | 3,233 |
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__________________________________ | | (a) | See Note 4 for discussion of fair value measurement techniques. |
| | (b) | Includes foreign investments of $293 million. |
| | (c) | Includes foreign investments of $219 million. |
| | (d) | Includes foreign investments of $47 million. |
| | (e) | Includes foreign investments of $56 million and $206 million of short-term commingled vehicles. |
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| Expected benefit payments, net of government drug subsidy |
The following table provides information about benefit payments expected to be paid by the plans, net of government drug subsidy, for each of the following calendar years:
| | | | | | | | | | Pension Benefits | | Other Benefits | | (millions) | 2012 | $ | 162 |
| | $ | 33 |
| 2013 | $ | 162 |
| | $ | 36 |
| 2014 | $ | 162 |
| | $ | 36 |
| 2015 | $ | 162 |
| | $ | 30 |
| 2016 | $ | 167 |
| | $ | 30 |
| 2017 - 2021 | $ | 850 |
| | $ | 144 |
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| Net periodic benefit (income) cost |
Net Periodic Cost - The components of net periodic benefit (income) cost for the plans are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2009 | | 2011 | | 2010 | | 2009 | | | | | | (millions) | | | | | Service cost | $ | 64 |
| | $ | 59 |
| | $ | 51 |
| | $ | 6 |
| | $ | 6 |
| | $ | 5 |
| Interest cost | 98 |
| | 102 |
| | 109 |
| | 21 |
| | 23 |
| | 24 |
| Expected return on plan assets | (238 | ) | | (241 | ) | | (239 | ) | | (2 | ) | | (2 | ) | | (3 | ) | Amortization of transition obligation | — |
| | — |
| | — |
| | 3 |
| | 3 |
| | 4 |
| Amortization of prior service benefit | (3 | ) | | (3 | ) | | (3 | ) | | — |
| | — |
| | — |
| Amortization of gains | — |
| | 1 |
| | (23 | ) | | — |
| | — |
| | — |
| SERP settlements | — |
| | 1 |
| | — |
| | — |
| | — |
| | — |
| Special termination benefits | — |
| | 13 |
| | — |
| | — |
| | — |
| | — |
| Net periodic benefit (income) cost at NEE | $ | (79 | ) | | $ | (68 | ) | | $ | (105 | ) | | $ | 28 |
| | $ | 30 |
| | $ | 30 |
| Net periodic benefit (income) cost at FPL | $ | (51 | ) | | $ | (42 | ) | | $ | (73 | ) | | $ | 21 |
| | $ | 23 |
| | $ | 23 |
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| Components of net periodic benefit income (cost) recognized in OCI |
Other Comprehensive Income - The components of net periodic benefit income (cost) recognized in OCI for the plans are as follows:
| | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2011 | | 2010 | | 2011 | | 2010 | | | | (millions) | | | Prior service cost (net of $2 tax benefit) | $ | — |
| | $ | — |
| | $ | (3 | ) | | $ | — |
| Net gains (losses) (net of $32 tax benefit, none, $2 tax expense and $1 tax expense, respectively) | (45 | ) | | 1 |
| | 3 |
| | 2 |
| Amortization of prior service benefit | (1 | ) | | (1 | ) | | — |
| | — |
| Amortization of transition obligation | — |
| | — |
| | 1 |
| | — |
| Total | $ | (46 | ) | | $ | — |
| | $ | 1 |
| | $ | 2 |
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| Components of net periodic benefit (income) cost recognized in regulatory assets (liabilities) |
Regulatory Assets (Liabilities) - The components of net periodic benefit (income) cost recognized during the year in regulatory assets (liabilities) for the plans are as follows:
| | | | | | | | | | | | | | | | | | Regulatory Assets (Liabilities) (Pension) | | Regulatory Assets (SERP and Other) | | 2011 | | 2010 | | 2011 | | 2010 | | (millions) | Prior service cost | $ | 1 |
| | $ | 1 |
| | $ | 12 |
| | $ | — |
| Unrecognized (gains) losses | 217 |
| | (35 | ) | | 7 |
| | (9 | ) | Amortization of prior service benefit | 2 |
| | 2 |
| | — |
| | — |
| Amortization of transition obligation | — |
| | — |
| | (2 | ) | | (2 | ) | Total | $ | 220 |
| | $ | (32 | ) | | $ | 17 |
| | $ | (11 | ) |
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