Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

The components of income taxes are as follows:



	NEE								FPL
	Years Ended December 31,								Years Ended December 31,
	2011			2010		2009			2011			2010		2009
	(millions)
Federal:
Current^(a)	$	(35	)	$	11	$	(18	)	$	(64	)	$	113	$	63
Deferred	572			434		290			622			385		342
Total federal	537			445		272			558			498		405
State:
Current^(a)	11			11		77			43			49		57
Deferred	(19		)	76		(22		)	53			33		11
Total state	(8		)	87		55			96			82		68
Total income taxes	$	529		$	532	$	327		$	654		$	580	$	473

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(a)	Includes provision for unrecognized tax benefits.

Reconciliation between the effective income tax rates and the applicable statutory rates

A reconciliation between the effective income tax rates and the applicable statutory rates is as follows:



	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2011		2010		2009		2011		2010		2009
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%
Increases (reductions) resulting from:
State income taxes - net of federal income tax benefit	(0.2	)	2.4		1.9		3.6		3.5		3.4
PTCs and ITCs - NEER	(11.1	)	(12.2	)	(13.1	)	—		—		—
Convertible ITCs - NEER	(0.1	)	(2.5	)	(4.3	)	—		—		—
Other - net	(2.0	)	(1.3	)	(2.6	)	(0.6	)	(0.5	)	(2.1	)
Effective income tax rate	21.6	%	21.4	%	16.9	%	38.0	%	38.0	%	36.3	%

Schedule of deferred income tax liabilities and assets

The income tax effects of temporary differences giving rise to consolidated deferred income tax liabilities and assets are as follows:



	NEE						FPL
	December 31,						December 31,
	2011			2010			2011		2010
	(millions)
Deferred tax liabilities:
Property-related	$	8,727		$	7,795		$	5,260	$	4,532
Pension	394			485			420		399
Storm reserve deficiency	235			258			235		258
Nuclear decommissioning trusts	117			146			—		—
Net unrealized gains on derivatives	209			226			—		—
Deferred fuel costs	40			101			40		101
Other	573			638			151		187
Total deferred tax liabilities	10,295			9,649			6,106		5,477
Deferred tax assets and valuation allowance:
Decommissioning reserves	406			393			336		323
Postretirement benefits	170			175			118		130
Net operating loss carryforwards	557			663			—		—
Tax credit carryforwards	2,111			1,819			—		—
ARO and accrued asset removal costs	884			895			788		802
Other	830			790			261		309
Valuation allowance^(a)	(228		)	(246		)	—		—
Net deferred tax assets	4,730			4,489			1,503		1,564
Net accumulated deferred income taxes	$	5,565		$	5,160		$	4,603	$	3,913

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(a)	Amount relates to deferred state tax credits and state operating loss carryforwards.

Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:



	NEE						FPL
	December 31,						December 31,
	2011			2010			2011			2010
				(millions)
Other current assets	$	10		$	17		$	—		$	—
Other assets	153			106			—			—
Other current liabilities	(47		)	(174		)	(10		)	(78		)
Accumulated deferred income taxes	(5,681		)	(5,109		)	(4,593		)	(3,835		)
Net accumulated deferred income taxes	$	(5,565	)	$	(5,160	)	$	(4,603	)	$	(3,913	)

Components of deferred tax assets relating to net operating loss carryforwards

The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2011 are as follows:



	Amount		Expiration Dates
	(millions)
Net operating loss carryforwards:
Federal	$	433	2026-2031
State	110		2014-2031
Foreign	14		2021-2031
Net operating loss carryforwards	$	557
Tax credit carryforwards:
Federal	$	1,813	2022-2031
State	298		2012-2035
Net tax credit carryforwards	$	2,111