Employee Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [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:

	2021		2020
	(millions)
Change in pension plan assets:
Fair value of plan assets at January 1	$	5,314	$	4,800
Actual return on plan assets	627		723
Benefit payments	(253)		(209)
Fair value of plan assets at December 31	$	5,688	$	5,314
Change in pension benefit obligation:
Obligation at January 1	$	3,607	$	3,363
Service cost	90		85
Interest cost	64		92
Special termination benefit(a)	—		16
Plan amendments	—		1
Actuarial losses (gains) – net	(63)		259
Benefit payments	(253)		(209)
Obligation at December 31(b)	$	3,445	$	3,607
Funded status:
Prepaid pension benefit costs at NEE at December 31	$	2,243	$	1,707
Prepaid pension benefit costs at FPL at December 31(c)	$	1,657	$	1,550

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(a)Reflects enhanced early retirement benefit.

(b)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2021 and 2020 was approximately $3,352 million and $3,521 million, respectively.

(c)Reflects FPL's allocated benefits under NEE's pension plan.

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:

	2021		2020
	(millions)
Unrecognized prior service benefit (net of $1 tax expense and $1 tax expense, respectively)	$	2	$	2
Unrecognized gains (losses) (net of $7 tax expense and $24 tax benefit, respectively)	41		(60)
Total	$	43	$	(58)

Unrecognized amounts included in regulatory assets (liabilities)

NEE's unrecognized amounts included in regulatory assets (liabilities) yet to be recognized as components of net prepaid pension benefit costs are as follows:

	2021		2020
	(millions)
Unrecognized prior service benefit	$	(1)	$	(1)
Unrecognized losses (gains)	(80)		163
Total	$	(81)	$	162

Significant assumptions used to determine benefit obligations and net periodic benefit (income) cost

The following table provides the assumptions used to determine the benefit obligation for the pension plan. These rates are used in determining net periodic pension income in the following year.

	2021		2020
Discount rate(a)	2.87	%	2.53	%
Salary increase	4.90	%	4.40	%
Weighted-average interest crediting rate	3.79	%	3.82	%

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(a)The method of estimating the interest cost component of net periodic benefit costs uses a full yield curve approach by applying a specific spot rate along the yield curve.

The assumptions used to determine net periodic pension income for the pension plan are as follows:

	2021		2020		2019
Discount rate	2.53	%	3.22	%	4.26	%
Salary increase	4.40	%	4.40	%	4.40	%
Expected long-term rate of return, net of investment management fees(a)	7.35	%	7.35	%	7.35	%
Weighted-average interest crediting rate	3.82	%	3.83	%	3.88	%

______________________

(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.

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, 2021(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)	$	1,977	$	29	$	2	$	2,008
Equity commingled vehicles(c)	—		889		—		889
U.S. Government and municipal bonds	131		6		—		137
Corporate debt securities(d)	—		351		—		351
Asset-backed securities	—		386		—		386
Debt security commingled vehicles(e)	—		219		—		219
Convertible securities(f)	91		489		—		580
Total investments in the fair value hierarchy	$	2,199	$	2,369	$	2	4,570
Total investments measured at net asset value(g)							1,118
Total fair value of plan assets							$	5,688

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(a)See Notes 3 and 4 for discussion of fair value measurement techniques and inputs.

(b)Includes foreign investments of $927 million.

(c)Includes foreign investments of $169 million.

(d)Includes foreign investments of $109 million.

(e)Includes foreign investments of $5 million.

(f)Includes foreign investments of $41 million.

(g)Includes foreign investments of $220 million.

	December 31, 2020(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)	$	2,017	$	10	$	3	$	2,030
Equity commingled vehicles(c)	—		668		—		668
U.S. Government and municipal bonds	169		8		—		177
Corporate debt securities(d)	—		340		—		340
Asset-backed securities	—		375		—		375
Debt security commingled vehicles(e)	—		201		—		201
Convertible securities(f)	64		453		—		517
Total investments in the fair value hierarchy	$	2,250	$	2,055	$	3	4,308
Total investments measured at net asset value(g)							1,006
Total fair value of plan assets							$	5,314

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(a)See Notes 3 and 4 for discussion of fair value measurement techniques and inputs.

(b)Includes foreign investments of $881 million.

(c)Includes foreign investments of $156 million.

(d)Includes foreign investments of $93 million.

(e)Includes foreign investments of $5 million.

(f)Includes foreign investments of $35 million.

(g)Includes foreign investments of $153 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):

2022	$	204
2023	$	208
2024	$	209
2025	$	210
2026	$	214
2027 – 2031	$	1,033

Net periodic benefit (income) cost

Net Periodic Income – The components of net periodic income for the plans are as follows:

	Pension Benefits						Postretirement Benefits
	2021		2020		2019		2021		2020		2019
			(millions)
Service cost	$	90	$	85	$	80	$	2	$	1	$	1
Interest cost	64		92		114		4		8		9
Expected return on plan assets	(339)		(321)		(312)		—		—		—
Amortization of actuarial loss	24		18		—		5		3		—
Amortization of prior service benefit	(1)		(1)		(1)		(15)		(16)		(15)
Special termination benefits	—		16		19		—		—		—
Net periodic income at NEE	$	(162)	$	(111)	$	(100)	$	(4)	$	(4)	$	(5)
Net periodic income allocated to FPL	$	(108)	$	(84)	$	(61)	$	(4)	$	(4)	$	(4)

Components of net periodic benefit income (cost) recognized in OCI

Other Comprehensive Income – The components of net periodic income recognized in OCI for the pension plan are as follows:

	2021		2020		2019
	(millions)
Net gains (losses) (net of $29 tax expense, $13 tax expense and $10 tax benefit, respectively)	$	95	$	42	$	(36)
Amortization of unrecognized losses (net of $2 tax expense and $1 tax expense, respectively)	6		5		—
Total	$	101	$	47	$	(36)

Components of net periodic benefit (income) cost recognized in regulatory assets (liabilities)

Regulatory Assets (Liabilities) – The components of net periodic income recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:

	2021		2020
	(millions)
Prior service cost (benefit)	$	(1)	$	1
Unrecognized gains	(226)		(89)
Amortization of prior service benefit	—		1
Amortization of unrecognized losses	(16)		(12)
Total	$	(243)	$	(99)