Income Taxes

The components of income taxes are as follows:



	NEE									FPL
	Years Ended December 31,									Years Ended December 31,
	2015			2014			2013			2015		2014		2013
	(millions)
Federal:
Current	$	10		$	—		$	(145	)	$	423	$	240	$	174
Deferred	1,194			1,077			853			399		542		540
Total federal	1,204			1,077			708			822		782		714
State:
Current	31			(29		)	69			58		68		44
Deferred	(7		)	128			—			77		60		77
Total state	24			99			69			135		128		121
Total income taxes	$	1,228		$	1,176		$	777		$	957	$	910	$	835

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



	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2015		2014		2013		2015		2014		2013
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	0.4		1.8		1.8		3.4		3.4		3.6
PTCs and ITCs - NEER	(4.1	)	(5.1	)	(8.5	)	—		—		—
Convertible ITCs - NEER	(0.8	)	(1.4	)	(2.5	)	—		—		—
Valuation allowance associated with Spain solar projects^(a)	—		0.7		5.2		—		—		—
Charges associated with Canadian assets	—		1.3		—		—		—		—
Other - net	0.3		—		0.7		(1.7	)	(0.9	)	(0.4	)
Effective income tax rate	30.8	%	32.3	%	31.7	%	36.7	%	37.5	%	38.2	%

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(a)	Reflects a full valuation allowance on deferred tax assets associated with the Spain solar projects. See Note 4 - Nonrecurring Fair Value Measurements.

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,
	2015			2014			2015		2014
	(millions)
Deferred tax liabilities:
Property-related	$	12,204		$	11,700		$	8,040	$	7,457
Pension	455			489			480		459
Nuclear decommissioning trusts	219			258			—		—
Net unrealized gains on derivatives	528			390			—		—
Investments in partnerships and joint ventures	403			291			—		—
Other	1,196			769			695		435
Total deferred tax liabilities	15,005			13,897			9,215		8,351
Deferred tax assets and valuation allowance:
Decommissioning reserves	438			427			386		374
Postretirement benefits	141			154			95		99
Net operating loss carryforwards	604			1,070			4		—
Tax credit carryforwards	2,916			2,742			—		—
ARO and accrued asset removal costs	759			737			697		686
Other	836			820			303		318
Valuation allowance^(a)	(223		)	(323		)	—		—
Net deferred tax assets	5,471			5,627			1,485		1,477
Net deferred income taxes	$	9,534		$	8,270		$	7,730	$	6,874

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(a)	Amount relates to a valuation allowance related to the Spain solar projects, 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,
	2015				2014			2015				2014
					(millions)
Deferred income taxes - current assets	$	—		^(a)	$	739		$	—		^(a)	$	—
Noncurrent other assets	293				264			—				—
Other current liabilities	—			^(a)	(12		)	—			^(a)	(39		)
Deferred income taxes - noncurrent liabilities	(9,827		)		(9,261		)	(7,730		)		(6,835		)
Net deferred income taxes	$	(9,534	)		$	(8,270	)	$	(7,730	)		$	(6,874	)

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(a)	Effective December 31, 2015, all deferred taxes are classified as noncurrent. See Note 1 - Income Taxes.

The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2015 are as follows:



	Amount			Expiration Dates
	(millions)
Net operating loss carryforwards:
Federal	$	361		2026-2035
State	153			2016-2035
Foreign	90		^(a)	2017-2024
Net operating loss carryforwards	$	604
Tax credit carryforwards:
Federal	$	2,585		2022-2035
State	331		^(b)	2016-2037
Tax credit carryforwards	$	2,916

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(a)	Includes $89 million of net operating loss carryforwards with an indefinite expiration period.


(b)	Includes $158 million of ITC carryforwards with an indefinite expiration period.