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Employee Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Plan assets, benefit obligations, and funded status included in the consolidated balance sheets
Pension Plan Assets, Benefit Obligations and Funded Status - The changes in assets, benefit obligations and the funded status of the pension plan are as follows:
 
2019
 
2018
 
(millions)
Change in pension plan assets:
 
 
 
Fair value of plan assets at January 1
$
3,806

 
$
4,020

Actual return on plan assets
736

 
(69
)
Benefit payments
(235
)
 
(160
)
Acquisitions(a)
493

 
15

Fair value of plan assets at December 31
$
4,800

 
$
3,806

Change in pension benefit obligation:
 

 
 

Obligation at January 1
$
2,522

 
$
2,593

Service cost
80

 
70

Interest cost
114

 
82

Acquisitions(a)
503

 
15

Special termination benefits(b)
19

 
35

Plan amendments
3

 
—

Actuarial losses (gains) - net
357

 
(113
)
Benefit payments
(235
)
 
(160
)
Obligation at December 31(c)
$
3,363

 
$
2,522

Funded status:
 

 
 

Prepaid pension benefit costs at NEE at December 31
$
1,437

 
$
1,284

Prepaid pension benefit costs at FPL at December 31(d)
$
1,477

 
$
1,407

_________________________
(a)
Relates to substantially funded pension obligations in connection with the acquisitions of Gulf Power and Florida City Gas, see Note 8.
(b)
Reflects enhanced early retirement programs.
(c)
NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2019 and 2018 was approximately $3,281 million and $2,479 million, respectively.
(d)
Reflects FPL's allocated benefits under NEE's pension plan.
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 pension benefit costs are as follows:
 
2019
 
2018
 
(millions)
Unrecognized prior service benefit (net of $2 and $2 tax expense, respectively)
$
2

 
$
2

Unrecognized losses (net of $37 and $27 tax benefit, respectively)
(108
)
 
(71
)
Total
$
(106
)
 
$
(69
)
Unrecognized amounts included in regulatory assets (liabilities)
NEE's unrecognized amounts included in regulatory assets yet to be recognized as components of net prepaid pension benefit costs are as follows:
 
2019
 
2018
 
(millions)
Unrecognized prior service benefit
$
(2
)
 
$
(3
)
Unrecognized losses
263

 
376

Total
$
261

 
$
373
Significant assumptions used to determine benefit obligations and net periodic benefit (income) cost
The following table provides the assumptions used to determine the benefit obligation for the pension plan. These rates are used in determining net periodic pension income in the following year.
 
2019
 
2018
Discount rate(a)
3.22
%
 
4.26
%
Salary increase
4.40
%
 
4.40
%

_________________________
(a)
The method of estimating the interest cost component of net periodic benefit costs uses a full yield curve approach by applying a specific spot rate along the yield curve.
The assumptions used to determine net periodic pension income for the pension plan are as follows:
 
2019
 
2018
 
2017
Discount rate
4.26
%
 
3.59
%
 
4.09
%
Salary increase
4.40
%
 
4.10
%
 
4.10
%
Expected long-term rate of return, net of investment management fees(a)
7.35
%
 
7.35
%
 
7.35
%
______________________
(a)
In developing the expected long-term rate of return on assets assumption for its pension plan, 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 pension fund. NEE also considered its pension fund's historical compounded returns.
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, 2019(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)
$
1,593

 
$
9

 
$
3

 
$
1,605

Equity commingled vehicles(c)
—

 
706

 
—

 
706

U.S. Government and municipal bonds
95

 
7

 
—

 
102

Corporate debt securities(d)
—

 
247

 
—

 
247

Asset-backed securities
—

 
416

 
—

 
416

Debt security commingled vehicles(e)
47

 
143

 
—

 
190

Convertible securities(f)
32

 
372

 
—

 
404

Total investments in the fair value hierarchy
$
1,767

 
$
1,900

 
$
3

 
3,670

Total investments measured at net asset value(g)
 
 
 
 
 
 
1,130

Total fair value of plan assets
 
 
 
 
 
 
$
4,800

_____________________
(a)
See Note 5 for discussion of fair value measurement techniques and inputs.
(b)
Includes foreign investments of $741 million.
(c)
Includes foreign investments of $141 million.
(d)
Includes foreign investments of $76 million.
(e)
Includes foreign investments of $5 million.
(f)
Includes foreign investments of $20 million.
(g)
Includes foreign investments of $190 million.
 
December 31, 2018(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)
$
1,030

 
$
11

 
$
2

 
$
1,043

Equity commingled vehicles(c)
—

 
638

 
—

 
638

U.S. Government and municipal bonds
84

 
11

 
—

 
95

Corporate debt securities(d)
—

 
252

 
—

 
252

Asset-backed securities
—

 
253

 
—

 
253

Debt security commingled vehicles
—

 
133

 
—

 
133

Convertible securities(e)
17

 
303

 
—

 
320

Total investments in the fair value hierarchy
$
1,131

 
$
1,601

 
$
2

 
2,734

Total investments measured at net asset value(f)
 
 
 
 
 
 
1,072

Total fair value of plan assets
 
 
 
 
 
 
$
3,806


______________________
(a)
See Note 5 for discussion of fair value measurement techniques and inputs.
(b)
Includes foreign investments of $459 million.
(c)
Includes foreign investments of $193 million.
(d)
Includes foreign investments of $77 million.
(e)
Includes foreign investments of $30 million.
(f)
Includes foreign investments of $214 million.
Expected benefit payments, net of government drug subsidy
Expected Cash Flows - The following table provides information about benefit payments expected to be paid by the pension plan for each of the following calendar years (in millions):
2020
$
211

2021
$
203

2022
$
203

2023
$
206

2024
$
207

2025 - 2029
$
1,044
Net periodic benefit (income) cost
Net Periodic Income - The components of net periodic income for the plans are as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
 
 
(millions)
 
 
Service cost
$
80

 
$
70

 
$
66

 
$
1

 
$
1

 
$
1

Interest cost
114

 
82

 
83

 
9

 
7

 
8

Expected return on plan assets
(312
)
 
(276
)
 
(270
)
 
—

 
—

 
—

Amortization of prior service benefit
(1
)
 
(1
)
 
(1
)
 
(15
)
 
(15
)
 
(10
)
Special termination benefits
19

 
35

 
38

 
—

 
—

 
—

Postretirement benefits settlement
—

 
—

 
—

 
—

 
—

 
1

Net periodic income at NEE
$
(100
)
 
$
(90
)
 
$
(84
)
 
$
(5
)
 
$
(7
)
 
$
—

Net periodic income allocated to FPL
$
(71
)
 
$
(57
)
 
$
(51
)
 
$
(4
)
 
$
(6
)
 
$
—
Components of net periodic benefit income (cost) recognized in OCI
Other Comprehensive Income - The components of net periodic income recognized in OCI for the pension plan are as follows:
 
2019
 
2018
 
2017
 
(millions)
Net gains (losses) (net of $10 tax benefit, $4 tax benefit and $23 tax expense, respectively)
$
(36
)
 
$
(13
)
 
$
37
Components of net periodic benefit (income) cost recognized in regulatory assets (liabilities)

Regulatory Assets (Liabilities) - The components of net periodic income recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:
 
2019
 
2018
 
(millions)
Unrecognized losses (gains)
$
(113
)
 
$
216

Amortization of prior service cost
1

 
1

Total
$
(112
)
 
$
217