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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Financial assets and liabilities and other fair value measurements NEE's and FPL's financial assets and liabilities and other fair value measurements made on a recurring basis by fair value hierarchy level are as follows:
 
December 31, 2019
 
 
Level 1
 
Level 2
 
Level 3
 
Netting(a)
 
Total
 
 
(millions)
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:(b)
 
 
 
 
 
 
 
 
 
 
NEE - equity securities
$
363

 
$
—

 
$
—

 
 
 
$
363

 
FPL - equity securities
$
156

 
$
—

 
$
—

 
 
 
$
156

 
Special use funds:(c)
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
1,875

 
$
2,088

(d) 
$
—

 
 
 
$
3,963

 
U.S. Government and municipal bonds
$
567

 
$
150

 
$
—

 
 
 
$
717

 
Corporate debt securities
$
—

 
$
748

 
$
—

 
 
 
$
748

 
Mortgage-backed securities
$
—

 
$
517

 
$
—

 
 
 
$
517

 
Other debt securities
$
—

 
$
117

 
$
—

 
 
 
$
117

 
FPL:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
596

 
$
1,895

(d) 
$
—

 
 
 
$
2,491

 
U.S. Government and municipal bonds
$
429

 
$
106

 
$
—

 
 
 
$
535

 
Corporate debt securities
$
—

 
$
533

 
$
—

 
 
 
$
533

 
Mortgage-backed securities
$
—

 
$
395

 
$
—

 
 
 
$
395

 
Other debt securities
$
—

 
$
111

 
$
—

 
 
 
$
111

 
Other investments:(e)
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
34

 
$
12

 
$
—

 
 
 
$
46

 
Debt securities
$
82

 
$
69

 
$
—

 
 
 
$
151

 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,229

 
$
2,082

 
$
1,739

 
$
(2,700
)
 
$
2,350

(f) 
Interest rate contracts
$
—

 
$
24

 
$
2

 
$
(17
)
 
$
9

(f) 
Foreign currency contracts
$
—

 
$
26

 
$
—

 
$
1

 
$
27

(f) 
FPL - commodity contracts
$
—

 
$
3

 
$
1

 
$
(1
)
 
$
3

(f) 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,365

 
$
1,446

 
$
390

 
$
(2,625
)
 
$
576

(f) 
Interest rate contracts
$
—

 
$
598

 
$
144

 
$
(17
)
 
$
725

(f) 
Foreign currency contracts
$
—

 
$
38

 
$
—

 
$
1

 
$
39

(f) 
FPL - commodity contracts
$
—

 
$
5

 
$
9

 
$
(1
)
 
$
13

(f) 
______________________
(a)
Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.
(b)
Includes restricted cash equivalents of approximately $60 million ($54 million for FPL) in current other assets and $64 million ($64 million for FPL) in noncurrent other assets on the consolidated balance sheets.
(c)
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.
(d)
Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.
(e)
Included in noncurrent other assets in the consolidated balance sheets.
(f)
See Note 4 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to NEE's and FPL's consolidated balance sheets.

 
December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Netting(a)
 
Total
 
 
(millions)
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:(b)
 
 
 
 
 
 
 
 
 
 
NEE - equity securities
$
486

 
$
—

 
$
—

 
 
 
$
486

 
FPL - equity securities
$
206

 
$
—

 
$
—

 
 
 
$
206

 
Special use funds:(c)
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
1,445

 
$
1,601

(d) 
$
—

 
 
 
$
3,046

 
U.S. Government and municipal bonds
$
449

 
$
155

 
$
—

 
 
 
$
604

 
Corporate debt securities
$
—

 
$
728

 
$
—

 
 
 
$
728

 
Mortgage-backed securities
$
—

 
$
478

 
$
—

 
 
 
$
478

 
Other debt securities
$
—

 
$
145

 
$
1

 
 
 
$
146

 
FPL:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
398

 
$
1,452

(d) 
$
—

 
 
 
$
1,850

 
U.S. Government and municipal bonds
$
350

 
$
120

 
$
—

 
 
 
$
470

 
Corporate debt securities
$
—

 
$
544

 
$
—

 
 
 
$
544

 
Mortgage-backed securities
$
—

 
$
367

 
$
—

 
 
 
$
367

 
Other debt securities
$
—

 
$
131

 
$
1

 
 
 
$
132

 
Other investments:(e)
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Equity securities
$
13

 
$
11

 
$
—

 
 
 
$
24

 
Debt securities
$
36

 
$
90

 
$
—

 
 
 
$
126

 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,379

 
$
1,923

 
$
1,349

 
$
(2,811
)
 
$
1,840

(f) 
Interest rate contracts
$
—

 
$
56

 
$
—

 
$
(7
)
 
$
49

(f) 
Foreign currency contracts
$
—

 
$
17

 
$
—

 
$
13

 
$
30

(f) 
FPL - commodity contracts
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

(f) 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
NEE:
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
1,329

 
$
1,410

 
$
566

 
$
(2,622
)
 
$
683

(f) 
Interest rate contracts
$
—

 
$
336

 
$
136

 
$
(7
)
 
$
465

(f) 
Foreign currency contracts
$
—

 
$
30

 
$
—

 
$
13

 
$
43

(f) 
FPL - commodity contracts
$
—

 
$
7

 
$
36

 
$
(2
)
 
$
41

(f) 
______________________
(a)
Includes the effect of the contractual ability to settle contracts under master netting arrangements and the netting of margin cash collateral payments and receipts. NEE and FPL also have contract settlement receivable and payable balances that are subject to the master netting arrangements but are not offset within the consolidated balance sheets and are recorded in customer receivables - net and accounts payable, respectively.
(b)
Includes restricted cash equivalents of approximately $85 million ($81 million for FPL) in current other assets on the consolidated balance sheets.
(c)
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.
(d)
Primarily invested in commingled funds whose underlying securities would be Level 1 if those securities were held directly by NEE or FPL.
(e)
Included in noncurrent other assets in the consolidated balance sheets.
(f)
See Note 4 - Fair Value of Derivative Instruments for a reconciliation of net derivatives to NEE's and FPL's consolidated balance sheets.
Fair Value Inputs, Assets, Quantitative Information
The significant unobservable inputs used in the valuation of NEE's commodity contracts categorized as Level 3 of the fair value hierarchy at December 31, 2019 are as follows:
Transaction Type
 
Fair Value at
December 31, 2019
 
Valuation
Technique(s)
 
Significant
Unobservable Inputs
 
Range
 
 
Assets
 
Liabilities
 
 
 
 
 
 
 
 
 
 
(millions)
 
 
 
 
 
 
 
 
Forward contracts - power
 
$
858

 
$
52

 
Discounted cash flow
 
Forward price (per MWh)
 
$(14)
—
$258
Forward contracts - gas
 
195

 
22

 
Discounted cash flow
 
Forward price (per MMBtu)
 
$2
—
$6
Forward contracts - other commodity related
 
3

 
2

 
Discounted cash flow
 
Forward price (various)
 
$—
—
$70
Options - power
 
42

 
11

 
Option models
 
Implied correlations
 
1%
—
88%
 
 
 
 
 
 
 
 
Implied volatilities
 
6%
—
502%
Options - primarily gas
 
152

 
148

 
Option models
 
Implied correlations
 
1%
—
88%
 
 
 
 
 
 
 
 
Implied volatilities
 
1%
—
218%
Full requirements and unit contingent contracts
 
489

 
155

 
Discounted cash flow
 
Forward price (per MWh)
 
$(20)
—
$949
 
 
 
 
 
 
 
 
Customer migration rate(a)
 
—%
—
14%
Total
 
$
1,739

 
$
390

 
 
 
 
 
 
 
 
______________________
(a)
Applies only to full requirements contracts.
Reconciliation of changes in the fair value of derivatives measured based on significant unobservable inputs
The reconciliation of changes in the fair value of derivatives that are based on significant unobservable inputs is as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
 
NEE
 
FPL
 
NEE
 
FPL
 
NEE
 
FPL
 
(millions)
Fair value of net derivatives based on significant unobservable inputs at December 31 of prior year
$
647

 
$
(36
)
 
$
566

 
$
—

 
$
578

 
$
1

Realized and unrealized gains (losses):
 

 
 

 
 

 
 

 
 

 
 

Included in earnings(a)
923

 
—

 
35

 
(1
)
 
376

 
—

Included in other comprehensive income (loss)(b)
5

 
—

 
7

 
—

 
(18
)
 
—

Included in regulatory assets and liabilities
1

 
1

 
(18
)
 
(18
)
 
—

 
—

Purchases
141

 
—

 
152

 
(16
)
 
126

 
—

Settlements
(356
)
 
25

 
28

 
(2
)
 
(317
)
 
(1
)
Issuances
(87
)
 
—

 
(115
)
 
—

 
(197
)
 
—

Impact of adoption of revenue standard
—

 
—

 
(30
)
 
—

 
—

 
—

Transfers in(c)
(5
)
 
—

 
—

 
—

 
17

 
—

Transfers out(c)
(62
)
 
2

 
22

 
1

 
1

 
—

Fair value of net derivatives based on significant unobservable inputs at December 31
$
1,207

 
$
(8
)
 
$
647

 
$
(36
)
 
$
566

 
$
—

Gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to derivatives held at the reporting date(d)
$
611

 
$
—

 
$
100

 
$
(1
)
 
$
277

 
$
—

______________________
(a)
For the years ended December 31, 2019, 2018 and 2017, approximately $956 million, $48 million and $379 million of realized and unrealized gains are included in the consolidated statements of income in operating revenues and the balance is included in interest expense.
(b)
Included in net unrealized gains (losses) on foreign currency translation in the consolidated statements of comprehensive income.
(c)
Transfers into Level 3 were a result of decreased observability of market data. Transfers from Level 3 to Level 2 were a result of increased observability of market data. NEE's and FPL's policy is to recognize all transfers at the beginning of the reporting period.
(d)
For the years ended December 31, 2019, 2018 and 2017, approximately $638 million, $112 million and $281 million of unrealized gains are included in the consolidated statements of income in operating revenues and the balance is included in interest expense.
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:
 
December 31, 2019
 
December 31, 2018
 
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
 
(millions)
 
NEE:
 
 
Special use funds(a)
$
892

 
$
891

 
$
884

 
$
883

 
Other investments(b)
$
30

 
$
30


$
54

 
$
54

 
Long-term debt, including current portion(c)
$
39,667

 
$
42,928

(d) 
$
29,498

 
$
30,043

(d) 
FPL:
 
 
 
 
 
 
 
 
Special use funds(a)
$
706

 
$
705

 
$
693

 
$
692

 
Long-term debt, including current portion
$
14,161

 
$
16,448

(d) 
$
11,783

 
$
12,613

(d) 
______________________
(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 consolidated balance sheets.
(c)
Excludes debt totaling approximately $463 million classified as held for sale, which is included in current other liabilities on NEE's consolidated balance sheets, for which the carrying amount approximates fair value. See Note 1 - Disposal of Businesses/Assets.
(d)
At December 31, 2019 and 2018, substantially all is Level 2 for NEE and all is Level 2 for FPL.
Available-for-sale Securities
Realized gains and losses and proceeds from the sale or maturity of available for sale securities are as follows:
 
NEE
 
FPL
 
Years Ended December 31,
 
Years Ended December 31,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
(millions)
Realized gains
$
68

 
$
51

 
$
178

 
$
44

 
$
31

 
$
75

Realized losses
$
48

 
$
75

 
$
83

 
$
29

 
$
49

 
$
50

Proceeds from sale or maturity of securities
$
3,005

 
$
2,551

 
$
2,817

 
$
2,539

 
$
2,100

 
$
1,902










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
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
 
 
 
(millions)
 
 
Unrealized gains
$
75

 
$
14

 
$
58

 
$
11

Unrealized losses(a)
$
7

 
$
52

 
$
7

 
$
41

Fair value
$
314

 
$
1,273

 
$
240

 
$
961

______________________
(a)
Unrealized losses on available for sale debt securities in an unrealized loss position for greater than twelve months at December 31, 2019 and 2018 were not material to NEE or FPL.