EX-99 2 neeq22018exhibit99.htm EXHIBIT 99 Exhibit


Exhibit 99

nexteraenergy.jpg
 
 
NextEra Energy, Inc.
Media Line: 561-694-4442
July 25, 2018

FOR IMMEDIATE RELEASE

NextEra Energy reports second-quarter 2018 financial results
NextEra Energy achieves strong second-quarter financial and operational results
Florida Power & Light Company grows regulatory capital by 12.9 percent and continues delivering outstanding customer value
NextEra Energy Resources adds approximately 1,620 megawatts to its renewables backlog

JUNO BEACH, Fla. - NextEra Energy, Inc. (NYSE: NEE) today reported 2018 second-quarter net income attributable to NextEra Energy on a GAAP basis of $795 million, or $1.64 per share, compared to $793 million, or $1.68 per share, for the second quarter of 2017. On an adjusted basis, NextEra Energy's 2018 second-quarter earnings were $1 billion, or $2.11 per share, compared to $881 million, or $1.86 per share, in the second quarter of 2017.

Adjusted earnings for these periods exclude the effects of non-qualifying hedges, NextEra Energy Partners, LP net investment gains, the transitional impacts of tax reform, change in unrealized gains and losses on equity securities held in NextEra Energy Resources' nuclear decommissioning funds and other than temporary impairments (OTTI), operating results from the Spain solar projects and merger-related expenses.

NextEra Energy's management uses adjusted earnings, which is a non-GAAP financial measure, internally for financial planning, analysis of performance, reporting of results to the board of directors and as an input in determining performance-based compensation under the company's employee incentive compensation plans. NextEra Energy also uses earnings expressed in this fashion when communicating its financial results and earnings outlook to analysts and investors. NextEra Energy's management believes that adjusted earnings provide a more meaningful representation of NextEra Energy's fundamental earnings power. A reconciliation of historical adjusted earnings to net income attributable to NextEra Energy, which is the most directly comparable GAAP measure, is included in the attachments to this news release.

"NextEra Energy delivered strong second-quarter results and remains on track to meet its objectives for the year," said Jim Robo, chairman and chief executive officer of NextEra Energy. "We grew adjusted earnings per share by approximately 13 percent against the prior-year comparable quarter, reflecting excellent performance at both Florida Power & Light Company and NextEra Energy Resources. At FPL, our major capital initiatives remain on schedule as we continue to execute one of the largest solar expansions ever in the U.S. NextEra Energy Resources continues to capitalize on what we believe is the best renewables development environment in our history with terrific origination success, adding approximately 1,620 megawatts of renewables projects to our backlog, including 535 megawatts of additional wind repowering opportunities and 90 megawatts of battery storage projects. During the quarter, we also announced proposed transactions that would expand NextEra Energy's regulated

1



business operations through the acquisition of Gulf Power, Florida City Gas and ownership stakes in two natural gas power plants from Southern Company. These assets are an excellent complement to our existing operations and will allow us to extend our best-in-class value proposition to additional Florida customers. We continue to believe that NextEra Energy has excellent prospects for growth and one of the strongest balance sheets in the sector. We are well-positioned to meet our full-year financial expectations, and I will be disappointed if we are not able to deliver financial results at or near the top of our 6 to 8 percent adjusted earnings per share compound annual growth rate range through 2021, plus the expected accretion in 2020 and 2021 from the announced acquisitions of $0.15 and $0.20, respectively, following the assumed closing of the transactions."

Florida Power & Light Company
NextEra Energy's principal rate-regulated electric utility subsidiary, Florida Power & Light Company (FPL), reported second-quarter 2018 net income of $626 million, or $1.32 per share, compared to $526 million, or $1.12 per share, for the prior-year quarter.

FPL's growth over the prior-year comparable quarter was primarily driven by continued investment in the business. For the second quarter of 2018, regulatory capital employed grew by approximately 12.9 percent year-over-year. During the second quarter, FPL's average number of customers increased by approximately 56,000, or 1.1 percent, from the prior-year comparable period.

The company’s major capital initiatives remain on track. Construction is underway at four 74.5-megawatt (MW) solar energy centers, as part of FPL's plans for more than 3,200 MW of additional solar projects across Florida over the coming years. These solar energy centers, which remain on track to come online in early 2019, are projected to generate more than $40 million in total savings for FPL customers.

Construction on the approximately 1,750-MW FPL Okeechobee Clean Energy Center remains on schedule and on budget. The state-of-the-art, natural-gas-fueled plant is expected to begin operation in mid-2019. Additionally, the approximately 1,200-MW FPL Dania Beach Clean Energy Center continues to advance through the development process to support its projected commercial operation date in 2022.

NextEra Energy Resources
NextEra Energy Resources, the competitive energy business of NextEra Energy, reported a second-quarter 2018 contribution to net income attributable to NextEra Energy on a GAAP basis of $274 million, or $0.55 per share, compared to $301 million, or $0.64 per share, in the prior-year quarter. On an adjusted basis, NextEra Energy Resources' earnings for the second quarter of 2018 were $408 million, or $0.86 per share, compared to $351 million, or $0.74 per share, for the second quarter of 2017.

NextEra Energy Resources' contribution to second-quarter 2018 adjusted earnings per share increased $0.12, compared to the prior-year quarter. The business' results were primarily driven by an increase in contributions from new investments, existing generation assets and gas infrastructure, as well as the reduction in the corporate federal income tax rate. Partially offsetting these gains were lower contributions from the company's customer supply and trading businesses, as well as higher interest expense and corporate expenses.

During the second quarter, the NextEra Energy Resources team continued to execute on its contracted renewables development program. Over the past few months, the team added 1,082 MW of new renewables projects to its backlog, including 300 MW of new wind projects, 692 MW of new solar projects and 90 MW of battery storage projects. Among the battery storage projects is the largest solar-plus-storage project announced in the U.S. to date. Also during the quarter, NextEra Energy Resources added 535 MW to its wind repowering backlog and commissioned an approximately 100-MW repowering project.


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Corporate and Other
In the second quarter of 2018 on a GAAP basis, Corporate and Other earnings decreased $0.15 per share, compared to the prior-year quarter. On an adjusted basis, Corporate and Other earnings for the second quarter of 2018 decreased $0.07 per share, compared to the prior-year quarter, primarily reflecting the one-time effect of an unfavorable tax ruling.

Outlook
NextEra Energy expects adjusted earnings per share to be in the range of $7.45 to $7.95 for 2018 and is targeting the midpoint of $7.70 per share. Upon closing the Gulf Power, Florida City Gas and natural gas plant acquisitions, the company expects 2020 adjusted earnings per share to be in a range of $8.70 to $9.20 and 2021 adjusted earnings per share to be in a range of $9.40 to $9.95. These ranges reflect the company's expected compound annual growth rate in adjusted earnings per share of 6 to 8 percent off a base at the midpoint of the 2018 range of $7.70 per share, plus the expected transaction accretion of $0.15 in 2020 and $0.20 in 2021.

NextEra Energy's adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effect of non-qualifying hedges, the transitional impacts of tax reform, NextEra Energy Partners, LP net investment gains, as well as unrealized gains and losses on equity securities held in NextEra Energy Resources' nuclear decommissioning funds and OTTI, none of which can be determined at this time. Adjusted earnings expectations also exclude the operating results from the Spain solar projects and merger-related expenses. In addition, adjusted earnings expectations assume, among other things: normal weather and operating conditions; continued recovery of the national and the Florida economy; supportive commodity markets; current forward curves; public policy support for wind and solar development and construction; market demand and transmission expansion to support wind and solar development; market demand for pipeline capacity; access to capital at reasonable cost and terms; no divestitures other than to NextEra Energy Partners, LP or unannounced acquisitions; no adverse litigation decisions; and no changes to governmental tax policy or incentives. Please see the accompanying cautionary statements for a list of the risk factors that may affect future results.

 
As previously announced, NextEra Energy's second-quarter 2018 earnings conference call is scheduled for 9 a.m. ET today. Also discussed during the call will be the second-quarter 2018 financial results for NextEra Energy Partners, LP (NYSE: NEP). The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/investors. The news release and slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/investors, beginning at 7:30 a.m. ET today. A replay will be available for 90 days by accessing the same link as listed above.
 
 
 
 
 

This news release should be read in conjunction with the attached unaudited financial information.

NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $17.2 billion, operates approximately 46,790 megawatts of net generating capacity and employs approximately 14,000 people in 33 states and Canada as of year-end 2017. Headquartered in Juno Beach, Florida, NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves approximately 5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. A Fortune 200 company and included in the S&P 100 index, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been ranked No. 1 in the electric and gas utilities industry in Fortune’s 2018 list of "World’s Most Admired Companies." For more

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information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

###

Cautionary Statements and Risk Factors That May Affect Future Results

This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning adjusted earnings per share expectations and future operating performance, and statements concerning future dividends. In some cases, you can identify the forward-looking statements by words or phrases such as “will,” “may result,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “potential,” “projection,” “forecast,” “predict,” “goals,” “target,” “outlook,” “should,” “would” or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL and their business and financial condition are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements, or may require them to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory and economic factors on regulatory decisions important to NextEra Energy and FPL; disallowance of cost recovery by FPL based on a finding of imprudent use of derivative instruments; effect of any reductions or modifications to, or elimination of, governmental incentives or policies that support utility scale renewable energy projects of NextEra Energy Resources, LLC and its affiliated entities (NextEra Energy Resources) or the imposition of additional tax laws, policies or assessments on renewable energy; impact of new or revised laws, regulations, interpretations or other regulatory initiatives on
NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal regulation of their operations and businesses; effect on NextEra Energy and FPL of changes in tax laws, guidance or policies as well as in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, transmission and distribution facilities, gas infrastructure facilities or other facilities on schedule or within budget; impact on
development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements; risks involved in the operation and maintenance of electric generation, transmission and distribution facilities, gas infrastructure facilities and other facilities; effect on NextEra Energy and FPL of a lack of growth or slower growth in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; threats of terrorism and catastrophic events that could result from terrorism, cyber attacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; a prolonged period of low gas and oil prices could impact NextEra Energy Resources’ gas infrastructure business and cause NextEra Energy Resources to delay or cancel certain gas infrastructure projects and for certain existing projects to be impaired; risk to NextEra
Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirement services; inability or failure by NextEra Energy Resources to manage properly or hedge effectively the commodity risk within its portfolio; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas by FPL and NextEra Energy Resources; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in OTC markets; impact of negative publicity; inability of NextEra Energy and FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; environmental, health and financial risks associated with NextEra Energy Resources’ and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures and/or result in reduced revenues at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission;

4



inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; impairment of NextEra Energy's and FPL's liquidity from inability of credit providers to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; NEP’s inability to access sources of capital on commercially reasonable terms could have an effect on its ability to consummate future acquisitions and on the value of NextEra Energy’s limited partner interest in NextEra Energy Operating Partners, LP; and effects of disruptions, uncertainty or volatility in the credit and capital markets on the market price of NextEra Energy's common stock. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2017 and other SEC filings, and this news release should be read in conjunction with such SEC filings made through the date of this news release. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.

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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary
 
Three Months Ended June 30, 2018
 
FPL
 
NEER
 
Corporate and
Other
(1)
 
NextEra Energy
Operating Revenues
 
$
2,908

 
$
1,162

 
$
(1
)
 
$
4,069

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
765

 
159

 
(30
)
 
894

Other operations and maintenance
 
388

 
412

 
49

 
849

Merger-related
 

 

 
1

 
1

Depreciation and amortization
 
511

 
301

 
19

 
831

Losses (gains) on disposal of a business/assets - net
 
(2
)
 
(41
)
 
4

 
(39
)
Taxes other than income taxes and other - net
 
324

 
46

 
1

 
371

Total operating expenses (income) - net
 
1,986

 
877

 
44

 
2,907

Operating Income (Loss)
 
922

 
285

 
(45
)
 
1,162

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(141
)
 
(128
)
 
(125
)
 
(394
)
Equity in earnings (losses) of equity method investees
 

 
55

 
(1
)
 
54

Allowance for equity funds used during construction
 
20

 

 
2

 
22

Interest income
 
1

 
7

 
2

 
10

Gains on disposal of investments and other property - net
 

 
3

 

 
3

Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds - net
 

 
13

 

 
13

Other net periodic benefit income
 

 

 
51

 
51

Other - net
 

 
10

 

 
10

Total other income (deductions) - net
 
(120
)
 
(40
)
 
(71
)
 
(231
)
Income (Loss) before Income Taxes
 
802

 
245

 
(116
)
 
931

Income Tax Expense (Benefit)
 
176

 
65

 
(11
)
 
230

Net Income (Loss)
 
626

 
180

 
(105
)
 
701

Net (Income) Loss Attributable to Noncontrolling Interests
 

 
94

 

 
94

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
626

 
$
274

 
$
(105
)
 
$
795

Reconciliations of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings (Loss):
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
626

 
$
274

 
$
(105
)
 
$
795

Adjustments - pretax:
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(2)
 

 
45

 
98

 
143

Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI - net(3)
 

 
(16
)
 

 
(16
)
Tax reform-related(4)
 

 
26

 
(2
)
 
24

NEP investment gains - net(5)
 

 
77

 

 
77

Operating loss (income) of Spain solar projects(6)
 

 
1

 

 
1

Merger-related expenses(7)
 

 

 
1

 
1

Less related income tax expense (benefit)
 

 
1

 
(26
)
 
(25
)
Adjusted Earnings (Loss)
 
$
626

 
$
408

 
$
(34
)
 
$
1,000

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)(8)
 
$
1.32

 
$
0.55

 
$
(0.23
)
 
$
1.64

Adjustments - pretax:
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(2)
 

 
0.09

 
0.21

 
0.30

Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI - net(3)
 

 
(0.04
)
 

 
(0.04
)
Tax reform-related(4)
 

 
0.06

 
(0.01
)
 
0.05

NEP investment gains - net(5)
 

 
0.19

 

 
0.19

Operating loss (income) of Spain solar projects(6)
 

 

 

 

Merger-related expenses(7)
 

 

 

 

Less related income tax expense (benefit)
 

 
0.01

 
(0.04
)
 
(0.03
)
Adjusted Earnings (Loss) Per Share
 
$
1.32

 
$
0.86

 
$
(0.07
)
 
$
2.11

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
475

————————————
 
 
 
 
 
 
 
 
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
(2) After tax impact on adjusted earnings by segment is $0, $35, $73, $108 or $0.00, $0.07, $0.17, $0.24 per share, respectively.
(3) After tax impact on adjusted earnings by segment is $(11) or $(0.02) per share, respectively.
(4) After tax impact on adjusted earnings by segment is $0, $19, ($2), $17 or $0.00, $0.04, ($0.01), $0.03 per share, respectively.
(5)After tax impact on adjusted earnings by segment is $0, $89, ($1), $88 or $0.00, $0.22, $0.00, $0.22 per share, respectively.
(6) After tax impact on adjusted earnings is $2 or $0.00 per share.
(7) After tax impact on adjusted earnings is $1 or $0.00 per share.
(8) Adjusted for the impact of dilutive securities at NEP.

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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary
 
Three Months Ended June 30, 2017
 
FPL
 
NEER
 
Corporate and
Other
(1)(2)
 
NextEra Energy(2)
Operating Revenues
 
$
3,091

 
$
1,295

 
$
18

 
$
4,404

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
893

 
141

 
(16
)
 
1,018

Other operations and maintenance
 
404

 
420

 
20

 
844

Merger-related
 

 

 
4

 
4

Depreciation and amortization
 
537

 
345

 
4

 
886

Losses (gains) on disposal of a business/assets - net
 
(1
)
 
(3
)
 
3

 
(1
)
Taxes other than income taxes and other - net
 
317

 
54

 
6

 
377

Total operating expenses (income) - net
 
2,150

 
957

 
21

 
3,128

Operating Income (Loss)
 
941

 
338

 
(3
)
 
1,276

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(121
)
 
(230
)
 
(79
)
 
(430
)
Benefits associated with differential membership interests - net
 

 
119

 

 
119

Equity in earnings (losses) of equity method investees
 

 
66

 

 
66

Allowance for equity funds used during construction
 
19

 
6

 

 
25

Interest income
 

 
17

 
2

 
19

Gains on disposal of investments and other property - net
 

 
3

 

 
3

Other net periodic benefit income
 

 

 
10

 
10

Other - net
 

 
6

 
(1
)
 
5

Total other income (deductions) - net
 
(102
)
 
(13
)
 
(68
)
 
(183
)
Income (Loss) before Income Taxes
 
839

 
325

 
(71
)
 
1,093

Income Tax Expense (Benefit)
 
313

 
13

 
(37
)
 
289

Net Income (Loss)
 
526

 
312

 
(34
)
 
804

Net (Income) Loss Attributable to Noncontrolling Interests
 

 
(11
)
 

 
(11
)
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
526

 
$
301

 
$
(34
)
 
$
793

Reconciliations of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings (Loss):
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
526

 
$
301

 
$
(34
)
 
$
793

Adjustments - pretax:
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
95

 
57

 
152

Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI(4)
 

 
2

 

 
2

Operating loss (income) of Spain solar projects(5)
 

 
(6
)
 

 
(6
)
Merger-related expenses(6)
 

 

 
4

 
4

Less related income tax expense (benefit)
 

 
(41
)
 
(23
)
 
(64
)
Adjusted Earnings (Loss)
 
$
526

 
$
351

 
$
4

 
$
881

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
 
$
1.12

 
$
0.64

 
$
(0.08
)
 
$
1.68

Adjustments - pretax:
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)
 

 
0.20

 
0.12

 
0.32

Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI(4)
 

 

 

 

Operating loss (income) of Spain solar projects(5)
 

 
(0.01
)
 

 
(0.01
)
Merger-related expenses(6)
 

 

 
0.01

 
0.01

Less related income tax expense (benefit)
 

 
(0.09
)
 
(0.05
)
 
(0.14
)
Adjusted Earnings (Loss) Per Share
 
$
1.12

 
$
0.74

 
$

 
$
1.86

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
472

————————————
 
 
 
 
 
 
 
 
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
(2) Prior period amounts have been retrospectively adjusted for an accounting standards update related to the presentation of retirement benefits.
(3) After tax impact on adjusted earnings by segment is $0, $57, $35, $92, respectively, or $0.00, $0.12, $0.07, $0.19 per share.
(4) After tax impact on adjusted earnings is $1 or $0.00 per share.
(5) After tax impact on adjusted earnings is ($8) or ($0.02) per share.
(6) After tax impact on adjusted earnings is $3 or $0.01 per share.

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NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary
 
Six Months Ended June 30, 2018
 
FPL
 
NEER
 
Corporate and
Other
(1)
 
NextEra Energy
Operating Revenues
 
$
5,528

 
$
2,408

 
$
(4
)
 
$
7,932

Operating Expenses (Income)
 
 
 
 
 
 
 
 
Fuel, purchased power and interchange
 
1,477

 
297

 
(61
)
 
1,713

Other operations and maintenance
 
734

 
793

 
99

 
1,626

Merger-related
 

 

 
1

 
1

Depreciation and amortization
 
1,056

 
595

 
37

 
1,688

Losses (gains) on disposal of a business/assets - net
 
(3
)
 
(58
)
 
6

 
(55
)
Taxes other than income taxes and other - net
 
635

 
111

 
4

 
750

Total operating expenses (income) - net
 
3,899

 
1,738

 
86

 
5,723

Operating Income (Loss)
 
1,629

 
670

 
(90
)
 
2,209

Other Income (Deductions)
 
 
 
 
 
 
 
 
Interest expense
 
(275
)
 
(213
)
 
(132
)
 
(620
)
Equity in earnings (losses) of equity method investees
 

 
231

 
20

 
251

Allowance for equity funds used during construction
 
42

 

 
2

 
44

Interest income
 
2

 
22

 
4

 
28

Gain on NEP deconsolidation
 

 
3,935

 

 
3,935

Gains on disposal of investments and other property - net
 

 
53

 

 
53

Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds - net
 

 
(7
)
 

 
(7
)
Other net periodic benefit income
 

 

 
102

 
102

Other - net
 

 
19

 
(3
)
 
16

Total other income (deductions) - net
 
(231
)
 
4,040

 
(7
)
 
3,802

Income (Loss) before Income Taxes
 
1,398

 
4,710

 
(97
)
 
6,011

Income Tax Expense (Benefit)
 
288

 
1,201

 
(10
)
 
1,479

Net Income (Loss)
 
1,110

 
3,509

 
(87
)
 
4,532

Net (Income) Loss Attributable to Noncontrolling Interests
 

 
691

 

 
691

Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
1,110

 
$
4,200

 
$
(87
)
 
$
5,223

Reconciliations of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings (Loss):
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
 
$
1,110

 
$
4,200

 
$
(87
)
 
$
5,223

Adjustments - pretax:
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(2)
 

 
(80
)
 
100

 
20

Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI - net(3)
 

 
3

 

 
3

Tax reform-related(4)
 

 
(598
)
 
3

 
(595
)
NEP investment gains - net(5)
 

 
(3,825
)
 

 
(3,825
)
Operating loss (income) of Spain solar projects(6)
 

 
7

 

 
7

Merger-related expenses(7)
 

 

 
1

 
1

Less related income tax expense (benefit)
 

 
1,086

 
(1
)
 
1,085

Adjusted Earnings (Loss)
 
$
1,110

 
$
793

 
$
16

 
$
1,919

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)(8)
 
$
2.34

 
$
8.80

 
$
(0.19
)
 
$
10.95

Adjustments - pretax:
 
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(2)
 

 
(0.17
)
 
0.21

 
0.04

Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI - net(3)
 

 
0.01

 

 
0.01

Tax reform-related(4)
 

 
(1.24
)
 
0.01

 
(1.23
)
NEP investment gains - net(5)
 

 
(8.03
)
 

 
(8.03
)
Operating loss (income) of Spain solar projects(6)
 

 
0.01

 

 
0.01

Merger-related expenses(7)
 

 

 

 

Less related income tax expense (benefit)
 

 
2.29

 

 
2.29

Adjusted Earnings (Loss) Per Share
 
$
2.34

 
$
1.67

 
$
0.03

 
$
4.04

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
 
475

————————————
 
 
 
 
 
 
 
 
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
(2)After tax impact on adjusted earnings by segment is $0, ($59), $79, $20 or $0.00, ($0.13), $0.17, $0.04 per share, respectively.
(3) After tax impact on adjusted earnings by segment is $0, $2, ($2), $0 or $0.00, $0.00, $0.00, $0.00 per share, respectively.
(4) After tax impact on adjusted earnings by segment is $0, ($448), $0, ($448) or $0.00, ($0.92), $0.00, ($0.92) per share, respectively.
(5) After tax impact on adjusted earnings by segment is $0, ($2,910), $25, ($2,885) or $0.00, ($6.10), $0.05, ($6.05) per share, respectively.
(6) After tax impact on adjusted earnings is $8 or $0.02 per share.
(7) After tax impact on adjusted earnings is $1 or $0.00 per share.
(8) Adjusted for the impact of dilutive securities at NEP.

8



NextEra Energy, Inc.
Condensed Consolidated Statements of Income
(millions, except per share amounts)
(unaudited)
Preliminary
 
Six Months Ended June 30, 2017
FPL
 
NEER
 
Corporate and
Other
(1)(2)
 
NextEra Energy(2)
Operating Revenues
$
5,618

 
$
2,719

 
$
40

 
$
8,377

Operating Expenses (Income)
 
 
 
 
 
 
 
Fuel, purchased power and interchange
1,661

 
286

 
(30
)
 
1,917

Other operations and maintenance
775

 
832

 
76

 
1,683

Merger-related

 

 
15

 
15

Depreciation and amortization
810

 
685

 
10

 
1,505

Losses (gains) on disposal of a business/assets - net
(3
)
 
(4
)
 
(1,094
)
 
(1,101
)
Taxes other than income taxes and other - net
623

 
89

 
8

 
720

Total operating expenses (income) - net
3,866

 
1,888

 
(1,015
)
 
4,739

Operating Income (Loss)
1,752

 
831

 
1,055

 
3,638

Other Income (Deductions)
 
 
 
 
 
 
 
Interest expense
(240
)
 
(420
)
 
(130
)
 
(790
)
Benefits associated with differential membership interests - net

 
244

 

 
244

Equity in earnings (losses) of equity method investees

 
92

 
5

 
97

Allowance for equity funds used during construction
34

 
12

 
1

 
47

Interest income
1

 
35

 
3

 
39

Gains on disposal of investments and other property - net

 
33

 
15

 
48

Other net periodic benefit income

 

 
53

 
53

Other - net

 
11

 
(28
)
 
(17
)
Total other income (deductions) - net
(205
)
 
7

 
(81
)
 
(279
)
Income (Loss) before Income Taxes
1,547

 
838

 
974

 
3,359

Income Tax Expense (Benefit)
576

 
42

 
346

 
964

Net Income (Loss)
971

 
796

 
628

 
2,395

Net (Income) Loss Attributable to Noncontrolling Interests

 
(19
)
 

 
(19
)
Net Income (Loss) Attributable to NextEra Energy, Inc.
$
971

 
$
777

 
$
628

 
$
2,376

Reconciliations of Net Income (Loss) Attributable to NextEra Energy, Inc. to Adjusted Earnings (Loss):
 
 
 
 
 
 
 
Net Income (Loss) Attributable to NextEra Energy, Inc.
$
971

 
$
777

 
$
628

 
$
2,376

Adjustments - pretax:
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)

 
(107
)
 
85

 
(22
)
Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI - net(4)

 
2

 

 
2

Gains on disposal of a business/assets(5)

 

 
(1,096
)
 
(1,096
)
Operating loss (income) of Spain solar projects(6)

 
2

 

 
2

Merger-related expenses(7)

 

 
38

 
38

Less related income tax expense (benefit)
 

 
34

 
367

 
401

Adjusted Earnings (Loss)
$
971

 
$
708

 
$
22

 
$
1,701

Earnings (Loss) Per Share Attributable to NextEra Energy, Inc. (assuming dilution)
$
2.06

 
$
1.65

 
$
1.34

 
$
5.05

Adjustments - pretax:
 
 
 
 
 
 
 
Net losses (gains) associated with non-qualifying hedges(3)

 
(0.23
)
 
0.18

 
(0.05
)
Change in unrealized losses (gains) on equity securities held in NEER's nuclear decommissioning funds and OTTI - net(4)

 

 

 

Gains on disposal of a business/assets(5)

 

 
(2.33
)
 
(2.33
)
Operating loss (income) of Spain solar projects(6)

 

 

 

Merger-related expenses(7)

 

 
0.08

 
0.08

Less related income tax expense (benefit)

 
0.08

 
0.79

 
0.87

Adjusted Earnings (Loss) Per Share
$
2.06

 
$
1.50

 
$
0.06

 
$
3.62

Weighted-average shares outstanding (assuming dilution)
 
 
 
 
 
 
471

————————————

 
 
 
 
 
 
 
 
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
(2) Prior period amounts have been retrospectively adjusted for an accounting standards update related to the presentation of retirement benefits.
(3) After tax impact on adjusted earnings by segment is $0, ($70), $53, ($17), respectively, or $0.00, ($0.15), $0.11, ($0.04) per share.
(4) After tax impact on adjusted earnings is $1 or $0.00 per share.
(5) After tax impact on adjusted earnings is ($685) or ($1.45) per share.
(6) After tax impact on adjusted earnings is $0 or $0.00 per share.
(7) After tax impact on adjusted earnings is $26 or $0.06 per share.

9



NextEra Energy, Inc.
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
(millions)
(unaudited)
 
 
 
Preliminary
 
June 30, 2018
 
FPL
 
NEER
 
Corporate and
Other
(1)
 
NextEra Energy
Property, Plant and Equipment
 
 
 
 
 
 
 
 
Electric plant in service and other property
 
$
48,629

 
$
30,890

 
$
1,016

 
$
80,535

Nuclear fuel
 
1,218

 
651

 

 
1,869

Construction work in progress
 
3,458

 
3,760

 
129

 
7,347

Accumulated depreciation and amortization
 
(12,885
)
 
(8,063
)
 
(144
)
 
(21,092
)
Total property, plant and equipment - net
 
40,420

 
27,238

 
1,001

 
68,659

Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
38

 
377

 
63

 
478

Customer receivables, net of allowances
 
1,148

 
1,066

 
16

 
2,230

Other receivables
 
239

 
526

 
(104
)
 
661

Materials, supplies and fossil fuel inventory
 
783

 
376

 

 
1,159

Regulatory assets
 
344

 

 

 
344

Derivatives
 
3

 
456

 

 
459

Other
 
172

 
386

 
(4
)
 
554

Total current assets
 
2,727

 
3,187

 
(29
)
 
5,885

Other Assets
 
 
 
 
 
 
 
 
Special use funds
 
4,210

 
1,924

 

 
6,134

Investment in equity method investees
 

 
6,017

 
200

 
6,217

Prepaid benefit costs
 
1,391

 

 
99

 
1,490

Regulatory assets
 
2,264

 
9

 
230

 
2,503

Derivatives
 

 
1,429

 
31

 
1,460

Other
 
599

 
2,248

 
295

 
3,142

Total other assets
 
8,464

 
11,627

 
855

 
20,946

Total Assets
 
$
51,611

 
$
42,052

 
$
1,827

 
$
95,490

Capitalization
 
 
 
 
 
 
 
 
Common stock
 
$
1,373

 
$

 
$
(1,368
)
 
$
5

Additional paid-in capital
 
9,141

 
9,799

 
(9,204
)
 
9,736

Retained earnings
 
8,479

 
16,725

 
(1,751
)
 
23,453

Accumulated other comprehensive income (loss)
 

 
(110
)
 
(63
)
 
(173
)
Total common shareholders' equity
 
18,993

 
26,414

 
(12,386
)
 
33,021

Noncontrolling interests
 

 
3,151

 

 
3,151

Total equity
 
18,993

 
29,565

 
(12,386
)
 
36,172

Long-term debt
 
12,379

 
4,631

 
11,346

 
28,356

Total capitalization
 
31,372

 
34,196

 
(1,040
)
 
64,528

Current Liabilities
 
 
 
 
 
 
 
 
Commercial paper
 
987

 

 
1,405

 
2,392

Other short-term debt
 

 
5

 
200

 
205

Current maturities of long-term debt
 
92

 
377

 
1,144

 
1,613

Accounts payable
 
713

 
1,630

 
(45
)
 
2,298

Customer deposits
 
442

 
3

 

 
445

Accrued interest and taxes
 
522

 
278

 
(63
)
 
737

Derivatives
 
2

 
363

 
131

 
496

Accrued construction-related expenditures
 
270

 
414

 
2

 
686

Regulatory liabilities
 
372

 

 
13

 
385

Other
 
442

 
396

 
89

 
927

Total current liabilities
 
3,842

 
3,466

 
2,876

 
10,184

Other Liabilities and Deferred Credits
 
 
 
 
 
 
 
 
Asset retirement obligations
 
2,097

 
951

 

 
3,048

Deferred income taxes
 
5,122

 
2,434

 
(394
)
 
7,162

Regulatory liabilities
 
8,728

 

 
118

 
8,846

Derivatives
 
1

 
457

 
33

 
491

Other
 
449

 
548

 
234

 
1,231

Total other liabilities and deferred credits
 
16,397

 
4,390

 
(9
)
 
20,778

Commitments and Contingencies
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
 
$
51,611

 
$
42,052

 
$
1,827

 
$
95,490

————————————

(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.


10



NextEra Energy, Inc.
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
Preliminary
 
(millions)
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
December 31, 2017
 
FPL
 
NEER
 
Corporate and
Other
(1)
 
NextEra Energy
Property, Plant and Equipment
 
 
 
 
 
 
 
 
Electric plant in service and other property
 
$
47,167

 
$
37,182

 
$
988

 
$
85,337

Nuclear fuel
 
1,192

 
575

 

 
1,767

Construction work in progress
 
3,623

 
3,010

 
46

 
6,679

Accumulated depreciation and amortization
 
(12,802
)
 
(8,452
)
 
(113
)
 
(21,367
)
Total property, plant and equipment - net
 
39,180

 
32,315

 
921

 
72,416

Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
33

 
743

 
938

 
1,714

Customer receivables, net of allowances
 
1,073

 
1,127

 
20

 
2,220

Other receivables
 
160

 
814

 
(457
)
 
517

Materials, supplies and fossil fuel inventory
 
840

 
433

 

 
1,273

Regulatory assets
 
335

 

 
1

 
336

Derivatives
 
2

 
484

 
3

 
489

Other
 
241

 
366

 
1

 
608

Total current assets
 
2,684

 
3,967

 
506

 
7,157

Other Assets
 
 
 
 
 
 
 
 
Special use funds
 
4,090

 
1,913

 

 
6,003

Investment in equity method investees
 

 
2,153

 
168

 
2,321

Prepaid benefit costs
 
1,351

 

 
76

 
1,427

Regulatory assets
 
2,249

 
9

 
211

 
2,469

Derivatives
 

 
1,304

 
11

 
1,315

Other
 
690

 
3,888

 
141

 
4,719

Total other assets
 
8,380

 
9,267

 
607

 
18,254

Total Assets
 
$
50,244

 
$
45,549

 
$
2,034

 
$
97,827

Capitalization
 
 
 
 
 
 
 
 
Common stock
 
$
1,373

 
$

 
$
(1,368
)
 
$
5

Additional paid-in capital
 
8,291

 
7,936

 
(7,127
)
 
9,100

Retained earnings
 
7,376

 
12,244

 
(628
)
 
18,992

Accumulated other comprehensive income (loss)
 

 
162

 
(51
)
 
111

Total common shareholders' equity
 
17,040

 
20,342

 
(9,174
)
 
28,208

Noncontrolling interests
 

 
1,290

 

 
1,290

Total equity
 
17,040

 
21,632

 
(9,174
)
 
29,498

Long-term debt
 
11,236

 
9,616

 
10,611

 
31,463

Total capitalization
 
28,276

 
31,248

 
1,437

 
60,961

Current Liabilities
 
 
 
 
 
 
 
 
Commercial paper
 
1,687

 

 

 
1,687

Other short-term debt
 
250

 
5

 

 
255

Current maturities of long-term debt
 
466

 
565

 
645

 
1,676

Accounts payable
 
893

 
2,385

 
(43
)
 
3,235

Customer deposits
 
445

 
3

 

 
448

Accrued interest and taxes
 
439

 
374

 
(191
)
 
622

Derivatives
 
2

 
341

 
21

 
364

Accrued construction-related expenditures
 
300

 
729

 
4

 
1,033

Regulatory liabilities
 
333

 

 
13

 
346

Other
 
982

 
483

 
101

 
1,566

Total current liabilities
 
5,797

 
4,885

 
550

 
11,232

Other Liabilities and Deferred Credits
 
 
 
 
 
 
 
 
Asset retirement obligations
 
2,047

 
984

 

 
3,031

Deferred income taxes
 
5,005

 
1,120

 
(371
)
 
5,754

Regulatory liabilities
 
8,642

 

 
123

 
8,765

Derivatives
 

 
494

 
41

 
535

Deferral related to differential membership interests
 

 
5,403

 

 
5,403

Other
 
477

 
1,415

 
254

 
2,146

Total other liabilities and deferred credits
 
16,171

 
9,416

 
47

 
25,634

Commitments and Contingencies
 
 
 
 
 
 
 
 
Total Capitalization and Liabilities
 
$
50,244

 
$
45,549

 
$
2,034

 
$
97,827

————————————

 
 
 
 
 
 
 
 
(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.

11



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(millions)
(unaudited)
Preliminary
 
Six Months Ended June 30, 2018
 
FPL
 
NEER
 
Corporate and
Other
(1)
 
NextEra Energy
Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
Net income (loss)
 
$
1,110

 
$
3,509

 
$
(87
)
 
$
4,532

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
1,056

 
595

 
37

 
1,688

Nuclear fuel and other amortization
 
76

 
42

 
9

 
127

Unrealized losses (gains) on marked to market derivative contracts - net
 

 
(87
)
 
86

 
(1
)
Foreign currency transaction losses (gains)
 

 

 
11

 
11

Deferred income taxes
 
268

 
1,316

 
(189
)
 
1,395

Cost recovery clauses and franchise fees
 
(49
)
 

 

 
(49
)
Acquisition of purchased power agreement
 
(52
)
 

 

 
(52
)
Losses (gains) on disposal of a business/assets - net
 
(3
)
 
(111
)
 
6

 
(108
)
Gain on NEP deconsolidation
 

 
(3,935
)
 

 
(3,935
)
Other - net
 
7

 
(103
)
 
(5
)
 
(101
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Current assets
 
(139
)
 
(50
)
 
63

 
(126
)
Noncurrent assets
 
(15
)
 

 
9

 
(6
)
Current liabilities
 
(325
)
 
178

 
(272
)
 
(419
)
Noncurrent liabilities
 
(55
)
 
20

 
12

 
(23
)
Net cash provided by (used in) operating activities
 
1,879

 
1,374

 
(320
)
 
2,933

Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
Capital expenditures of FPL
 
(2,414
)
 

 

 
(2,414
)
Independent power and other investments of NEER
 

 
(3,220
)
 

 
(3,220
)
Nuclear fuel purchases
 
(90
)
 
(98
)
 

 
(188
)
Other capital expenditures and other investments
 

 

 
(101
)
 
(101
)
Proceeds from sale or maturity of securities in special use funds and other investments
 
1,101

 
608

 
79

 
1,788

Purchases of securities in special use funds and other investments
 
(1,228
)
 
(628
)
 
(136
)
 
(1,992
)
Distributions from equity method investees
 

 
633

 

 
633

Other - net
 
22

 
106

 
11

 
139

Net cash provided by (used in) investing activities
 
(2,609
)
 
(2,599
)
 
(147
)
 
(5,355
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
Issuances of long-term debt
 
1,594

 
46

 
1,235

 
2,875

Retirements of long-term debt
 
(798
)
 
(399
)
 
(17
)
 
(1,214
)
Net change in commercial paper
 
(700
)
 

 
1,405

 
705

Proceeds from other short-term debt
 

 

 
200

 
200

Repayments of other short-term debt
 
(250
)
 

 

 
(250
)
Issuances of common stock - net
 

 

 
11

 
11

Dividends on common stock
 

 

 
(1,047
)
 
(1,047
)
Dividends & capital distributions from (to) parent - net
 
850

 
1,286

 
(2,136
)
 

Other - net
 
(28
)
 
(3
)
 
(59
)
 
(90
)
Net cash provided by (used in) financing activities
 
668

 
930

 
(408
)
 
1,190

Effects of currency translation on cash, cash equivalents and restricted cash
 

 
(15
)
 

 
(15
)
Net increase (decrease) in cash, cash equivalents and restricted cash
 
(62
)
 
(310
)
 
(875
)
 
(1,247
)
Cash, cash equivalents and restricted cash at beginning of period
 
174

 
871

 
938

 
1,983

Cash, cash equivalents and restricted cash at end of period
 
$
112

 
$
561

 
$
63

 
$
736

————————————

(1) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.

12



NextEra Energy, Inc.
Condensed Consolidated Statements of Cash Flows (1) 
(millions)
(unaudited)
Preliminary
 
Six Months Ended June 30, 2017
 
FPL
 
NEER
 
Corporate and
Other
(2)
 
NextEra Energy
Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
Net income (loss)
 
$
971

 
$
796

 
$
628

 
$
2,395

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
810

 
685

 
10

 
1,505

Nuclear fuel and other amortization
 
101

 
33

 
9

 
143

Unrealized losses (gains) on marked to market derivative contracts - net
 

 
(118
)
 
132

 
14

Foreign currency transaction losses (gains)
 

 

 
(12
)
 
(12
)
Deferred income taxes
 
399

 
593

 
(106
)
 
886

Cost recovery clauses and franchise fees
 
10

 

 

 
10

Acquisition of purchased power agreement
 
(243
)
 

 

 
(243
)
Losses (gains) on disposal of a business, assets and investments - net
 
(3
)
 
(37
)
 
(1,109
)
 
(1,149
)
Recoverable storm-related costs
 
(105
)
 

 

 
(105
)
Other - net
 
(41
)
 
(205
)
 
140

 
(106
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Current assets
 
(227
)
 
28

 
(30
)
 
(229
)
Noncurrent assets
 
(16
)
 
(32
)
 
(57
)
 
(105
)
Current liabilities
 
437

 
(637
)
 
406

 
206

Noncurrent liabilities
 
(13
)
 
66

 
(12
)
 
41

Net cash provided by (used in) operating activities
 
2,080

 
1,172

 
(1
)
 
3,251

Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
Capital expenditures of FPL
 
(2,648
)
 

 

 
(2,648
)
Independent power and other investments of NEER
 

 
(4,106
)
 

 
(4,106
)
Nuclear fuel purchases
 
(94
)
 
(55
)
 

 
(149
)
Other capital expenditures and other investments
 

 

 
(34
)
 
(34
)
Proceeds from sale of the fiber-optic telecommunications business
 

 

 
1,482

 
1,482

Proceeds from sale or maturity of securities in special use funds and other investments
 
902

 
437

 
80

 
1,419

Purchases of securities in special use funds and other investments
 
(949
)
 
(456
)
 
(126
)
 
(1,531
)
Distributions from equity method investees
 

 
7

 

 
7

Other - net
 
(1
)
 
42

 
5

 
46

Net cash provided by (used in) investing activities
 
(2,790
)
 
(4,131
)
 
1,407

 
(5,514
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
Issuances of long-term debt
 
200

 
768

 
1,803

 
2,771

Retirements of long-term debt
 
(35
)
 
(314
)
 
(1,536
)
 
(1,885
)
Net change in commercial paper
 
732

 

 
1,115

 
1,847

Proceeds from other short-term debt
 
200

 

 

 
200

Issuances of common stock - net
 

 

 
25

 
25

Dividends on common stock
 

 

 
(920
)
 
(920
)
Dividends & capital distributions from (to) parent - net
 
(400
)
 
2,869

 
(2,469
)
 

Other - net
 
(2
)
 
(287
)
 
(72
)
 
(361
)
Net cash provided by (used in) financing activities
 
695

 
3,036

 
(2,054
)
 
1,677

Net increase (decrease) in cash, cash equivalents and restricted cash
 
(15
)
 
77

 
(648
)
 
(586
)
Cash, cash equivalents and restricted cash at beginning of period
 
153

 
720

 
656

 
1,529

Cash, cash equivalents and restricted cash at end of period
 
$
138

 
$
797

 
$
8

 
$
943

————————————

(1) Amounts have been retrospectively adjusted to reflect the adoption of an accounting standards update which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows.
(2) Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.

13



NextEra Energy, Inc.
Earnings Per Share Contributions
(assuming dilution)
(unaudited)

Preliminary
 
 
 
First
Quarter
 
Second
Quarter
 
Year-To-Date
2017 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
3.37

 
$
1.68

 
$
5.05

 
 
 
 
 
 
 
FPL - 2017 Earnings Per Share
 
$
0.95

 
$
1.12

 
$
2.06

New investment growth
 
0.08

 
0.10

 
0.18

Base revenues/cost management
 
0.03

 
0.10

 
0.14

Allowance for funds used during construction
 
0.01

 

 
0.02

Wholesale operations
 

 
0.02

 
0.02

Other and share dilution
 
(0.05
)
 
(0.02
)
 
(0.08
)
FPL - 2018 Earnings Per Share
 
$
1.02

 
$
1.32

 
$
2.34

 
 
 
 
 
 
 
NEER - 2017 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
1.01

 
$
0.64

 
$
1.65

New investments
 
(0.17
)
 
0.07

 
(0.10
)
Existing assets
 
0.06

 
0.07

 
0.12

Gas infrastructure
 
0.06

 
0.04

 
0.09

Customer supply and proprietary power & gas trading
 
0.01

 
(0.05
)
 
(0.04
)
Asset Sales
 
0.07

 
(0.02
)
 
0.05

Non-qualifying hedges impact
 
(0.06
)
 
0.05

 
(0.02
)
Tax reform-related
 
0.96

 
(0.04
)
 
0.92

NEP investment gains - net (see related tax effects in Corporate and Other below)
 
6.32

 
(0.22
)
 
6.10

Spain operating results
 
0.01

 
(0.02
)
 
(0.02
)
Change in unrealized gains (losses) on securities held in NEER's nuclear decommissioning funds and OTTI - net
 
(0.03
)
 
0.02

 

Interest and corporate general and administrative expenses
 
(0.11
)
 
(0.08
)
 
(0.19
)
Income tax rate reduction
 
0.12

 
0.13

 
0.25

Other, including income taxes and share dilution
 
0.01

 
(0.04
)
 
(0.01
)
NEER - 2018 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
8.26

 
$
0.55

 
$
8.80

 
 
 
 
 
 
 
Corporate and Other - 2017 Earnings (Loss) Per Share
 
$
1.41

 
$
(0.08
)
 
$
1.34

Non-qualifying hedges impact
 
0.03

 
(0.10
)
 
(0.06
)
Gains on disposal of a business/assets - net (including consolidating tax effects)
 
(1.46
)
 

 
(1.45
)
NEP investment gains - net
 
(0.06
)
 

 
(0.05
)
Merger-related expenses
 
0.05

 
0.01

 
0.06

Tax reform-related
 

 
0.01

 

Other, including interest expense, interest income and consolidating income tax benefits or expenses and share dilution
 
0.07

 
(0.07
)
 
(0.03
)
Corporate and Other - 2018 Earnings (Loss) Per Share
 
$
0.04

 
$
(0.23
)
 
$
(0.19
)
 
 
 
 
 
 
 
2018 Earnings Per Share Attributable to NextEra Energy, Inc.
 
$
9.32

 
$
1.64

 
$
10.95

 
 
Corporate & Other represents other business activities, consolidating income tax adjustments and eliminating entries, and may include the net effect of rounding. Corporate & Other allocates a portion of corporate interest expense to NEER. Interest expense is allocated based on a deemed capital structure of 70% debt and, for purposes of allocating corporate interest expense, the deferred credit associated with differential membership interests sold by NEER subsidiaries is included with debt.  Residual corporate interest expense is included in Corporate & Other.
 
The sum of the quarterly amounts may not equal the total for the year due to rounding.
 
 
 
 
 
 
 

14