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Employee Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [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:
 
2016
 
2015
 
(millions)
Change in pension plan assets:
 
 
 
Fair value of plan assets at January 1
$
3,563

 
$
3,698

Actual return on plan assets
217

 
(8
)
Benefit payments
(129
)
 
(127
)
Fair value of plan assets at December 31
$
3,651

 
$
3,563

Change in pension benefit obligation:
 

 
 

Obligation at January 1
$
2,408

 
$
2,454

Service cost
62

 
70

Interest cost
105

 
97

Plan amendments
(19
)
 
—

Actuarial losses (gains) - net
47

 
(86
)
Benefit payments
(129
)
 
(127
)
Obligation at December 31(a)
$
2,474

 
$
2,408

Funded status:
 

 
 

Prepaid pension benefit costs at NEE at December 31
$
1,177

 
$
1,155

Prepaid pension benefit costs at FPL at December 31
$
1,301

 
$
1,243

_________________________
(a)
NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2016 and 2015 was approximately $2,439 million and $2,366 million, respectively.
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:
 
2016
 
2015
 
(millions)
Unrecognized prior service benefit (cost) (net of $2 tax expense and $1 tax benefit, respectively)
$
3

 
$
(2
)
Unrecognized losses (net of $55 and $38 tax benefit, respectively)
(87
)
 
(60
)
Total
$
(84
)
 
$
(62
)
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:
 
2016
 
2015
 
(millions)
Unrecognized prior service cost (benefit)
$
(4
)
 
$
9

Unrecognized losses
280

 
232

Total
$
276

 
$
241
Significant assumptions used to determine benefit obligations and net periodic benefit (income) cost
The assumptions used to determine net periodic income for the pension plan are as follows:
 
2016
 
2015
 
2014
Discount rate
4.35
%
 
3.95
%
 
4.80
%
Salary increase
4.10
%
 
4.10
%
 
4.00
%
Expected long-term rate of return(a)(b)
7.35
%
 
7.35
%
 
7.75
%
______________________
(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.
(b)
In 2016 and 2015, an expected long-term rate of return of 7.75% is presented net of investment management fees.
The following table provides the assumptions used to determine the benefit obligation for the pension plan. These rates are used in determining net periodic income in the following year.
 
2016
 
2015
Discount rate(a)
4.09
%
 
4.35
%
Salary increase
4.10
%
 
4.10
%

_________________________
(a)
Beginning in 2017, NEE changed its method of estimating the interest cost component of net periodic benefit costs and will use a full yield curve approach by applying a specific spot rate along the yield curve rather than a single weighted-average discount rate. Such change is not expected to have a material impact on the pension and postretirement plans' net periodic benefit costs.
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, 2016(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)
$
879

 
$
16

 
$
3

 
$
898

Equity commingled vehicles(c)
—

 
845

 
—

 
845

U.S. Government and municipal bonds
143

 
12

 
—

 
155

Corporate debt securities(d)
3

 
246

 
1

 
250

Asset-backed securities
—

 
124

 
—

 
124

Debt security commingled vehicles
—

 
22

 
—

 
22

Convertible securities(e)
21

 
277

 
—

 
298

Total investments in the fair value hierarchy
$
1,046

 
$
1,542

 
$
4

 
2,592

Total investments measured at net asset value(f)
 
 
 
 
 
 
1,059

Total fair value of plan assets
 
 
 
 
 
 
$
3,651

______________________
(a)
See Note 4 for discussion of fair value measurement techniques and inputs.
(b)
Includes foreign investments of $370 million.
(c)
Includes foreign investments of $261 million.
(d)
Includes foreign investments of $67 million.
(e)
Includes foreign investments of $31 million.
(f)
Includes foreign investments of $282 million.
 
December 31, 2015(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)
$
910

 
$
21

 
$
1

 
$
932

Equity commingled vehicles(c)
—

 
792

 
—

 
792

U.S. Government and municipal bonds
110

 
13

 
—

 
123

Corporate debt securities(d)
2

 
277

 
1

 
280

Asset-backed securities
—

 
167

 
—

 
167

Debt security commingled vehicles
—

 
21

 
—

 
21

Convertible securities(e)
16

 
258

 
—

 
274

Total investments in the fair value hierarchy
$
1,038

 
$
1,549

 
$
2

 
2,589

Total investments measured at net asset value(f)
 
 
 
 
 
 
974

Total fair value of plan assets
 
 
 
 
 
 
$
3,563


______________________
(a)
See Note 4 for discussion of fair value measurement techniques and inputs.
(b)
Includes foreign investments of $384 million.
(c)
Includes foreign investments of $249 million.
(d)
Includes foreign investments of $68 million.
(e)
Includes foreign investments of $23 million.
(f)
Includes foreign investments of $283 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):
2017
$
155

2018
$
156

2019
$
160

2020
$
163

2021
$
170

2022 - 2026
$
879
Net periodic benefit (income) cost
Net Periodic (Income) Cost - The components of net periodic (income) cost for the plans are as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
 
 
(millions)
 
 
Service cost
$
62

 
$
70

 
$
61

 
$
2

 
$
3

 
$
3

Interest cost
105

 
97

 
101

 
13

 
13

 
16

Expected return on plan assets
(260
)
 
(253
)
 
(241
)
 
(1
)
 
(1
)
 
(1
)
Amortization of prior service cost (benefit)
1

 
1

 
5

 
(2
)
 
(3
)
 
(3
)
Amortization of losses
—

 
—

 
—

 
—

 
2

 
—

Net periodic (income) cost at NEE
$
(92
)
 
$
(85
)
 
$
(74
)
 
$
12

 
$
14

 
$
15

Net periodic (income) cost at FPL
$
(58
)
 
$
(55
)
 
$
(47
)
 
$
9

 
$
11

 
$
11
Components of net periodic benefit income (cost) recognized in OCI
Other Comprehensive Income - The components of net periodic income (cost) recognized in OCI for the pension plan are as follows:
 
2016
 
2015
 
2014
 
(millions)
Prior service benefit (net of $3 and $3 tax expense, respectively)
$
4

 
$
—

 
$
4

Net losses (net of $16, $27 and $29 tax benefit, respectively)
(26
)
 
(44
)
 
(45
)
Amortization of prior service benefit
—

 
—

 
1

Total
$
(22
)
 
$
(44
)
 
$
(40
)
Components of net periodic benefit (income) cost recognized in regulatory assets (liabilities)
Regulatory Assets (Liabilities) - The components of net periodic (income) cost recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:
 
2016
 
2015
 
(millions)
Prior service benefit
$
(12
)
 
$
—

Unrecognized losses
48

 
104

Amortization of prior service benefit
(1
)
 
(1
)
Total
$
35

 
$
103