Summarized Financial Information of Capital Holdings

9 Months Ended

Sep. 30, 2016

Summarized Financial Information [Abstract]

Summarized Financial Information of Capital Holdings

Summarized Financial Information of NEECH

NEECH, a 100% owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL. NEECH’s debentures and junior subordinated debentures including those that were registered pursuant to the Securities Act of 1933, as amended, are fully and unconditionally guaranteed by NEE. Condensed consolidating financial information is as follows:

Condensed Consolidating Statements of Income

	Three Months Ended September 30,
	2016												2015
	NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
Operating revenues	$	—		$	1,526		$	3,279		$	4,805		$	—		$	1,683		$	3,271		$	4,954
Operating expenses	(5		)	(1,032		)	(2,489		)	(3,526		)	(3		)	(1,045		)	(2,425		)	(3,473		)
Interest expense	—			(255		)	(114		)	(369		)	(1		)	(200		)	(110		)	(311		)
Equity in earnings of subsidiaries	765			—			(765		)	—			865			—			(865		)	—
Other income - net	4			276			17			297			—			114			18			132
Income (loss) before income taxes	764			515			(72		)	1,207			861			552			(111		)	1,302
Income tax expense (benefit)	11			141			266			418			(18		)	167			272			421
Net income (loss)	753			374			(338		)	789			879			385			(383		)	881
Less net income attributable to noncontrolling interests	—			36			—			36			—			2			—			2
Net income (loss) attributable to NEE	$	753		$	338		$	(338	)	$	753		$	879		$	383		$	(383	)	$	879

	Nine Months Ended September 30,
	2016												2015
	NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guarantor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
Operating revenues	$	—		$	4,131		$	8,326		$	12,457		$	—		$	4,616		$	8,801		$	13,417
Operating expenses	(14		)	(2,756		)	(6,005		)	(8,775		)	(12		)	(3,124		)	(6,524		)	(9,660		)
Interest expense	(1		)	(1,137		)	(342		)	(1,480		)	(3		)	(573		)	(336		)	(912		)
Equity in earnings of subsidiaries	1,989			—			(1,989		)	—			2,226			—			(2,226		)	—
Other income - net	5			603			57			665			—			343			45			388
Income (loss) before income taxes	1,979			841			47			2,867			2,211			1,262			(240		)	3,233
Income tax expense (benefit)	33			71			775			879			(34		)	293			722			981
Net income (loss)	1,946			770			(728		)	1,988			2,245			969			(962		)	2,252
Less net income attributable to noncontrolling interests	—			42			—			42			—			7			—			7
Net income (loss) attributable to NEE	$	1,946		$	728		$	(728	)	$	1,946		$	2,245		$	962		$	(962	)	$	2,245

———————————————

(a)  Represents primarily FPL and consolidating adjustments.

Condensed Consolidating Statements of Comprehensive Income

	Three Months Ended September 30,
	2016									2015
	NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated		NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated
								(millions)
Comprehensive income (loss) attributable to NEE	$	799	$	384	$	(384	)	$	799	$	714	$	218	$	(218	)	$	714

	Nine Months Ended September 30,
	2016									2015
	NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated		NEE (Guarantor)		NEECH		Other(a)			NEE Consoli- dated
								(millions)
Comprehensive income (loss) attributable to NEE	$	2,078	$	866	$	(866	)	$	2,078	$	2,117	$	850	$	(850	)	$	2,117

———————————————

(a) Represents primarily FPL and consolidating adjustments.

Condensed Consolidating Balance Sheets

	September 30, 2016												December 31, 2015
	NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service and other property	$	28		$	37,986		$	47,849		$	85,863		$	27		$	34,921		$	45,382		$	80,330
Accumulated depreciation and amortization	(18		)	(7,823		)	(12,405		)	(20,246		)	(16		)	(7,067		)	(11,861		)	(18,944		)
Total property, plant and equipment - net	10			30,163			35,444			65,617			11			27,854			33,521			61,386
CURRENT ASSETS
Cash and cash equivalents	—			634			47			681			—			546			25			571
Receivables	210			1,908			741			2,859			90			1,510			665			2,265
Other	4			1,891			1,312			3,207			4			2,443			1,512			3,959
Total current assets	214			4,433			2,100			6,747			94			4,499			2,202			6,795
OTHER ASSETS
Investment in subsidiaries	23,851			—			(23,851		)	—			22,544			—			(22,544		)	—
Other	808			8,844			5,848			15,500			823			7,790			5,685			14,298
Total other assets	24,659			8,844			(18,003		)	15,500			23,367			7,790			(16,859		)	14,298
TOTAL ASSETS	$	24,883		$	43,440		$	19,541		$	87,864		$	23,472		$	40,143		$	18,864		$	82,479
CAPITALIZATION
Common shareholders' equity	$	23,907		$	8,196		$	(8,196	)	$	23,907		$	22,574		$	6,990		$	(6,990	)	$	22,574
Noncontrolling interests	—			962			—			962			—			538			—			538
Long-term debt	—			18,350			9,845			28,195			—			16,725			9,956			26,681
Total capitalization	23,907			27,508			1,649			53,064			22,574			24,253			2,966			49,793
CURRENT LIABILITIES
Debt due within one year	—			2,500			982			3,482			—			2,786			220			3,006
Accounts payable	1			2,089			710			2,800			4			1,919			606			2,529
Other	294			2,301			1,579			4,174			252			3,003			1,317			4,572
Total current liabilities	295			6,890			3,271			10,456			256			7,708			2,143			10,107
OTHER LIABILITIES AND DEFERRED CREDITS
Asset retirement obligations	—			747			1,890			2,637			—			647			1,822			2,469
Deferred income taxes	82			2,636			7,864			10,582			157			2,396			7,274			9,827
Other	599			5,659			4,867			11,125			485			5,139			4,659			10,283
Total other liabilities and deferred credits	681			9,042			14,621			24,344			642			8,182			13,755			22,579
COMMITMENTS AND CONTINGENCIES
TOTAL CAPITALIZATION AND LIABILITIES	$	24,883		$	43,440		$	19,541		$	87,864		$	23,472		$	40,143		$	18,864		$	82,479

———————————————

(a) Represents primarily FPL and consolidating adjustments.

Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30,
	2016												2015
	NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated			NEE (Guaran- tor)			NEECH			Other(a)			NEE Consoli- dated
										(millions)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	1,164		$	1,781		$	2,349		$	5,294		$	1,242		$	1,834		$	1,437		$	4,513
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, independent power and other investments and nuclear fuel purchases	(1		)	(4,831		)	(3,097		)	(7,929		)	—			(3,058		)	(2,618		)	(5,676		)
Capital contributions from NEE	(432		)	—			432			—			(1,454		)	—			1,454			—
Sale of independent power and other investments of NEER	—			395			—			395			—			34			—			34
Proceeds from the sale of a noncontrolling interest in subsidiaries	—			645			—			645			—			319			—			319
Other - net	—			(63		)	(31		)	(94		)	(17		)	2			(139		)	(154		)
Net cash used in investing activities	(433		)	(3,854		)	(2,696		)	(6,983		)	(1,471		)	(2,703		)	(1,303		)	(5,477		)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of long-term debt	—			4,494			150			4,644			—			3,377			85			3,462
Retirements of long-term debt	—			(2,392		)	(262		)	(2,654		)	—			(2,547		)	(550		)	(3,097		)
Proceeds from sale of differential membership interests	—			328			—			328			—			46			—			46
Payments to differential membership investors	—			(84		)	—			(84		)	—			(68		)	—			(68		)
Proceeds from notes payable	—			—			500			500			—			1,450			—			1,450
Repayments of notes payable	—			(212		)	(150		)	(362		)	—			(313		)	—			(313		)
Net change in commercial paper	—			(154		)	408			254			—			780			(896		)	(116		)
Issuances of common stock	528			—			—			528			1,274			—			—			1,274
Dividends on common stock	(1,205		)	—			—			(1,205		)	(1,031		)	—			—			(1,031		)
Contributions from (dividends to) NEE	—			294			(294		)	—			—			(1,214		)	1,214			—
Other - net	(54		)	(113		)	17			(150		)	(14		)	(55		)	30			(39		)
Net cash provided by (used in) financing activities	(731		)	2,161			369			1,799			229			1,456			(117		)	1,568
Net increase in cash and cash equivalents	—			88			22			110			—			587			17			604
Cash and cash equivalents at beginning of period	—			546			25			571			—			562			15			577
Cash and cash equivalents at end of period	$	—		$	634		$	47		$	681		$	—		$	1,149		$	32		$	1,181

———————————————

(a) Represents primarily FPL and consolidating adjustments.