Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The components of income taxes are as follows:



	NEE								FPL
	Years Ended December 31,								Years Ended December 31,
	2016		2015			2014			2016		2015		2014
	(millions)
Federal:
Current	$	72	$	10		$	—		$	72	$	423	$	240
Deferred	1,075		1,194			1,077			830		399		542
Total federal	1,147		1,204			1,077			902		822		782
State:
Current	76		31			(29		)	57		58		68
Deferred	160		(7		)	128			92		77		60
Total state	236		24			99			149		135		128
Total income taxes	$	1,383	$	1,228		$	1,176		$	1,051	$	957	$	910

Reconciliation between the effective income tax rates and the applicable statutory rates

A reconciliation between the effective income tax rates and the applicable statutory rate is as follows:



	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2016		2015		2014		2016		2015		2014
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	3.5		0.4		1.8		3.5		3.4		3.4
PTCs and ITCs - NEER	(3.9	)	(4.1	)	(5.1	)	—		—		—
Convertible ITCs - NEER	(1.7	)	(0.8	)	(1.4	)	—		—		—
Adjustments associated with Canadian assets	(0.7	)	—		1.3		—		—		—
Other - net	(0.7	)	0.3		0.7		(0.7	)	(1.7	)	(0.9	)
Effective income tax rate	31.5	%	30.8	%	32.3	%	37.8	%	36.7	%	37.5	%

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,
	2016			2015			2016		2015
	(millions)
Deferred tax liabilities:
Property-related	$	13,094		$	12,204		$	8,882	$	8,040
Pension	454			455			502		480
Nuclear decommissioning trusts	253			219			—		—
Net unrealized gains on derivatives	581			528			—		—
Investments in partnerships and joint ventures	603			403			—		—
Other	1,272			1,196			796		695
Total deferred tax liabilities	16,257			15,005			10,180		9,215
Deferred tax assets and valuation allowance:
Decommissioning reserves	454			438			401		386
Postretirement benefits	145			141			93		95
Net operating loss carryforwards	427			604			3		4
Tax credit carryforwards	3,059			2,916			—		—
ARO and accrued asset removal costs	777			759			699		697
Other	1,024			836			443		303
Valuation allowance^(a)	(269		)	(223		)	—		—
Net deferred tax assets	5,617			5,471			1,639		1,485
Net deferred income taxes	$	10,640		$	9,534		$	8,541	$	7,730

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(a)	Amount relates to a valuation allowance related to the solar projects in Spain, 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,
	2016			2015			2016			2015
				(millions)
Noncurrent other assets	$	461		$	293		$	—		$	—
Deferred income taxes - noncurrent liabilities	(11,101		)	(9,827		)	(8,541		)	(7,730		)
Net deferred income taxes	$	(10,640	)	$	(9,534	)	$	(8,541	)	$	(7,730	)

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, 2016 are as follows:



	Amount			Expiration Dates
	(millions)
Net operating loss carryforwards:
Federal	$	165		2026-2036
State	174			2017-2036
Foreign	88		^(a)	2017-2036
Net operating loss carryforwards	$	427
Tax credit carryforwards:
Federal	$	2,697		2022-2036
State	362		^(b)	2017-2044
Tax credit carryforwards	$	3,059

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(a)	Includes $60 million of net operating loss carryforwards with an indefinite expiration period.


(b)	Includes $188 million of ITC carryforwards with an indefinite expiration period.