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Common Shareholders' Equity
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Common Shareholders' Equity
Common Shareholders' Equity

Earnings Per Share - The reconciliation of NEE's basic and diluted earnings per share attributable to NEE from continuing operations is as follows:
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
(millions, except per share amounts)
Numerator - income from continuing operations attributable to NEE(a)
$
2,752

 
$
2,465

 
$
1,677

Denominator:
 

 
 

 
 

Weighted-average number of common shares outstanding - basic
450.5

 
434.4

 
424.2

Equity units, performance share awards, options, forward sale agreements and restricted stock(b)
3.5

 
5.7

 
2.8

Weighted-average number of common shares outstanding - assuming dilution
454.0

 
440.1

 
427.0

Earnings per share attributable to NEE from continuing operations:
 
 
 

 
 

Basic
$
6.11

 
$
5.67

 
$
3.95

Assuming dilution
$
6.06

 
$
5.60

 
$
3.93

______________________
(a)
Calculated as income from continuing operations less net income attributable to noncontrolling interests from NEE's consolidated statements of income.
(b)
Calculated using the treasury stock method. Performance share awards are included in diluted weighted-average number of common shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award.

Common shares issuable pursuant to equity units, the forward sale agreement described below, stock options and performance share awards and restricted stock which were not included in the denominator above due to their antidilutive effect were approximately 3.5 million, 2.6 million and 7.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Issuance of Common Stock and Forward Sale Agreement - In November 2013, NEE sold 4.5 million shares of its common stock at a price of $88.03 per share, and a forward counterparty borrowed and sold 6.6 million shares of NEE's common stock in connection with a forward sale agreement. In December 2014, NEE physically settled the forward sale agreement by delivering 6.6 million shares of its common stock to the forward counterparty in exchange for cash proceeds of approximately $552 million. The forward sale price used to determine the cash proceeds received by NEE was calculated based on the initial forward sale price of $88.03 per share less certain adjustments as specified in the forward sale agreement. Prior to the settlement date, the forward sale agreement had a dilutive effect on NEE’s earnings per share when the average market price per share of NEE’s common stock was above the adjusted forward sale price per share.

Common Stock Dividend Restrictions - NEE's charter does not limit the dividends that may be paid on its common stock. FPL's mortgage securing FPL's first mortgage bonds contains provisions which, under certain conditions, restrict the payment of dividends and other distributions to NEE. These restrictions do not currently limit FPL's ability to pay dividends to NEE.

Employee Stock Ownership Plan - The employee retirement savings plans of NEE include a leveraged ESOP feature. Shares of common stock held by the trust for the employee retirement savings plans (Trust) are used to provide all or a portion of the employers' matching contributions. Dividends received on all shares, along with cash contributions from the employers, are used to pay principal and interest on an ESOP loan held by a subsidiary of NEECH. Dividends on shares allocated to employee accounts and used by the Trust for debt service are replaced with shares of common stock, at prevailing market prices, in an equivalent amount. For purposes of computing basic and fully diluted earnings per share, ESOP shares that have been committed to be released are considered outstanding.

ESOP-related compensation expense was approximately $63 million, $59 million and $46 million in 2015, 2014 and 2013, respectively. The related share release was based on the fair value of shares allocated to employee accounts during the period. Interest income on the ESOP loan is eliminated in consolidation. ESOP-related unearned compensation included as a reduction of common shareholders' equity at December 31, 2015 was approximately $1 million, representing unallocated shares at the original issue price. The fair value of the ESOP-related unearned compensation account using the closing price of NEE common stock at December 31, 2015 was approximately $11 million.

Stock-Based Compensation - Net income for the years ended December 31, 2015, 2014 and 2013 includes approximately $60 million, $60 million and $67 million, respectively, of compensation costs and $23 million, $23 million and $26 million, respectively, of income tax benefits related to stock-based compensation arrangements. Compensation cost capitalized for the years ended December 31, 2015, 2014 and 2013 was not material. As of December 31, 2015, there were approximately $70 million of unrecognized compensation costs related to nonvested/nonexercisable stock-based compensation arrangements. These costs are expected to be recognized over a weighted-average period of 1.8 years.

At December 31, 2015, approximately 17 million shares of common stock were authorized for awards to officers, employees and non-employee directors of NEE and its subsidiaries under NEE's: (a) Amended and Restated 2011 Long Term Incentive Plan, (b) 2007 Non-Employee Directors Stock Plan and (c) earlier equity compensation plans under which shares are reserved for issuance under existing grants, but no additional shares are available for grant under the earlier plans. NEE satisfies restricted stock and performance share awards by issuing new shares of its common stock or by purchasing shares of its common stock in the open market. NEE satisfies stock option exercises by issuing new shares of its common stock. NEE generally grants most of its stock-based compensation awards in the first quarter of each year.

Restricted Stock and Performance Share Awards - Restricted stock typically vests within three years after the date of grant and is subject to, among other things, restrictions on transferability prior to vesting. The fair value of restricted stock is measured based upon the closing market price of NEE common stock as of the date of grant. Performance share awards are typically payable at the end of a three-year performance period if the specified performance criteria are met. The fair value of performance share awards is estimated primarily based upon the closing market price of NEE common stock as of the date of grant less the present value of expected dividends, multiplied by an estimated performance multiple which is subsequently trued up based on actual performance.

The activity in restricted stock and performance share awards for the year ended December 31, 2015 was as follows:
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
Per Share
Restricted Stock:
 
 
 
Nonvested balance, January 1, 2015
579,497

 
$
75.65

Granted
303,150

 
$
103.58

Vested
(274,620
)
 
$
73.92

Forfeited
(44,367
)
 
$
99.99

Nonvested balance, December 31, 2015
563,660

 
$
89.60

Performance Share Awards:
 
 
 
Nonvested balance, January 1, 2015
996,227

 
$
67.19

Granted
567,437

 
$
77.12

Vested
(609,321
)
 
$
53.55

Forfeited
(39,144
)
 
$
79.36

Nonvested balance, December 31, 2015
915,199

 
$
81.90



The weighted-average grant date fair value per share of restricted stock granted for the years ended December 31, 2014 and 2013 was $93.46 and $74.02 respectively. The weighted-average grant date fair value per share of performance share awards granted for the years ended December 31, 2014 and 2013 was $71.52 and $58.53, respectively.

The total fair value of restricted stock and performance share awards vested was $108 million, $85 million and $82 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Options - Options typically vest within three years after the date of grant and have a maximum term of ten years. The exercise price of each option granted equals the closing market price of NEE common stock on the date of grant. The fair value of the options is estimated on the date of the grant using the Black-Scholes option-pricing model and based on the following assumptions:
 
2015
 
2014
 
2013
Expected volatility(a)
18.91%
 
20.32%
 
20.08 - 20.15%
Expected dividends
3.11%
 
3.11%
 
3.28 - 3.64%
Expected term (years)(b)
7.0
 
7.0
 
7.0
Risk-free rate
1.84%
 
2.17%
 
1.15 - 1.40%
______________________
(a)
Based on historical experience.
(b)
Based on historical exercise and post-vesting cancellation experience adjusted for outstanding awards.

Option activity for the year ended December 31, 2015 was as follows:
 
Shares
Underlying
Options
 
Weighted-
Average
Exercise
Price
Per Share
 
Weighted-
Average
Remaining
Contractual
Term
(years)
 
Aggregate
Intrinsic
Value
(millions)
Balance, January 1, 2015
2,825,035

 
$
59.04

 
 
 
 
Granted
229,158

 
$
103.62

 
 
 
 
Exercised
(187,692
)
 
$
47.03

 
 
 
 
Forfeited
—

 
—

 
 
 
 
Expired
—

 
—

 
 
 
 
Balance, December 31, 2015
2,866,501

 
$
63.39

 
5.3
 
$
116

 
 
 
 
 
 
 
 
Exercisable, December 31, 2015
2,415,194

 
$
57.62

 
4.7
 
$
112



The weighted-average grant date fair value of options granted was $13.62, $14.09 and $9.20 per share for the years ended December 31, 2015, 2014 and 2013, respectively. The total intrinsic value of stock options exercised was approximately $11 million, $30 million and $14 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Cash received from option exercises was approximately $9 million, $26 million and $14 million for the years ended December 31, 2015, 2014 and 2013, respectively. The tax benefits realized from options exercised were approximately $4 million, $11 million and $5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Preferred Stock - NEE's charter authorizes the issuance of 100 million shares of serial preferred stock, $0.01 par value, none of which are outstanding. FPL's charter authorizes the issuance of 10,414,100 shares of preferred stock, $100 par value, 5 million shares of subordinated preferred stock, no par value, and 5 million shares of preferred stock, no par value, none of which are outstanding.

Accumulated Other Comprehensive Income (Loss) - The components of AOCI, net of tax, are as follows:
 
Accumulated Other Comprehensive Income (Loss)
 
Net Unrealized
Gains (Losses)
on Cash Flow
Hedges
 
Net Unrealized
Gains (Losses)
on Available for
Sale Securities
 
Defined Benefit
Pension and
Other Benefits
Plans
 
Net Unrealized
Gains (Losses)
on Foreign
Currency
Translation
 
Other
Comprehensive
Income (Loss)
Related to Equity
Method Investee
 
Total
 
(millions)
Balances, December 31, 2012
$
(266
)
 
$
96

 
$
(74
)
 
$
12

 
$
(23
)
 
$
(255
)
Other comprehensive income (loss) before reclassifications
84

 
118

 
95

 
(45
)
 
7

 
259

Amounts reclassified from AOCI
67

(a) 
(17
)
(b) 
2

 
—

 
—

 
52

Net other comprehensive income (loss)
151

 
101

 
97

 
(45
)
 
7

 
311

Balances, December 31, 2013
(115
)
 
197

 
23

 
(33
)
 
(16
)
 
56

Other comprehensive income (loss) before reclassifications
(141
)
 
62

 
(44
)
 
(25
)
 
(8
)
 
(156
)
Amounts reclassified from AOCI
98

(a) 
(41
)
(b) 
1

 
—

 
—

 
58

Net other comprehensive income (loss)
(43
)

21


(43
)
 
(25
)
 
(8
)
 
(98
)
Less other comprehensive loss attributable to noncontrolling interests
(2
)
 
—

 
—

 
—

 
—

 
(2
)
Balances, December 31, 2014
(156
)
 
218

 
(20
)
 
(58
)
 
(24
)
 
(40
)
Other comprehensive income (loss) before reclassifications
(88
)
 
(7
)
 
(42
)
 
(27
)
 
—

 
(164
)
Amounts reclassified from AOCI
63

(a) 
(37
)
(b) 
—

 
—

 
—

 
26

Net other comprehensive income (loss)
(25
)
 
(44
)
 
(42
)
 
(27
)
 
—

 
(138
)
Less other comprehensive loss attributable to noncontrolling interests
(11
)
 
—

 
—

 
—

 
—

 
(11
)
Balances, December 31, 2015
$
(170
)
 
$
174

 
$
(62
)
 
$
(85
)
 
$
(24
)
 
$
(167
)
————————————
(a)
Reclassified to interest expense and other - net in NEE's consolidated statements of income. See Note 3 - Income Statement Impact of Derivative Instruments.
(b)
Reclassified to gains on disposal of assets - net in NEE's consolidated statements of income.