Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The components of income taxes are as follows:



	NEE								FPL
	Years Ended December 31,								Years Ended December 31,
	2012			2011			2010		2012			2011			2010
	(millions)
Federal:
Current^(a)	$	(4	)	$	(35	)	$	11	$	(261	)	$	(64	)	$	113
Deferred	636			572			434		906			622			385
Total federal	632			537			445		645			558			498
State:
Current^(a)	14			11			11		26			43			49
Deferred	46			(19		)	76		81			53			33
Total state	60			(8		)	87		107			96			82
Total income taxes	$	692		$	529		$	532	$	752		$	654		$	580

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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,
	2012		2011		2010		2012		2011		2010
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	1.5		(0.2	)	2.4		3.5		3.6		3.5
PTCs and ITCs - NEER	(7.8	)	(11.1	)	(12.2	)	—		—		—
Convertible ITCs - NEER	(1.5	)	(0.1	)	(2.5	)	—		—		—
Other - net	(0.6	)	(2.0	)	(1.3	)	(0.7	)	(0.6	)	(0.5	)
Effective income tax rate	26.6	%	21.6	%	21.4	%	37.8	%	38.0	%	38.0	%

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,
	2012			2011			2012		2011
	(millions)
Deferred tax liabilities:
Property-related	$	10,206		$	8,727		$	6,193	$	5,260
Pension	403			394			438		420
Storm reserve deficiency	212			235			212		235
Nuclear decommissioning trusts	115			117			—		—
Net unrealized gains on derivatives	245			209			—		—
Deferred fuel costs	—			40			—		40
Other	563			573			162		151
Total deferred tax liabilities	11,744			10,295			7,005		6,106
Deferred tax assets and valuation allowance:
Decommissioning reserves	418			406			348		336
Postretirement benefits	162			170			114		118
Net operating loss carryforwards	1,216			557			6		—
Tax credit carryforwards	2,312			2,111			—		—
ARO and accrued asset removal costs	832			884			723		788
Other	790			830			197		261
Valuation allowance^(a)	(192		)	(228		)	—		—
Net deferred tax assets	5,538			4,730			1,388		1,503
Net accumulated deferred income taxes	$	6,206		$	5,565		$	5,617	$	4,603

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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,
	2012				2011			2012			2011
					(millions)
Deferred income taxes - current assets	$	397		^(a)	$	10		$	—		$	—
Other assets	113				153			—			—
Other current liabilities	(13		)		(47		)	(33		)	(10		)
Deferred income taxes - non-current liabilities	(6,703		)		(5,681		)	(5,584		)	(4,593		)
Net accumulated deferred income taxes	$	(6,206	)		$	(5,565	)	$	(5,617	)	$	(4,603	)

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, 2012 are as follows:



	Amount		Expiration Dates
	(millions)
Net operating loss carryforwards:
Federal	$	1,057	2026-2032
State	137		2013-2032
Foreign	22		2021-2032
Net operating loss carryforwards	$	1,216
Tax credit carryforwards:
Federal	$	2,019	2022-2032
State	293		2013-2034
Net tax credit carryforwards	$	2,312