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Employee Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2022

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:


	2022		2021
	(millions)
Change in pension plan assets:
Fair value of plan assets at January 1	$	5,688	$	5,314
Actual return on plan assets	(820)		627
Benefit payments	(325)		(253)

Fair value of plan assets at December 31	$	4,543	$	5,688
Change in pension benefit obligation:
Obligation at January 1	$	3,445	$	3,607
Service cost	86		90
Interest cost	77		64

Special termination benefit(a)	52		—
Plan amendments	3		—

Actuarial gains – net	(627)		(63)
Benefit payments	(325)		(253)
Obligation at December 31(b)	$	2,711	$	3,445
Funded status:
Prepaid pension benefit costs at NEE at December 31	$	1,832	$	2,243
Prepaid pension benefit costs at FPL at December 31(c)	$	1,732	$	1,657

_________________________

(a)Reflects enhanced early retirement benefit.

(b)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, at December 31, 2022 and 2021 was approximately $2,650 million and $3,352 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:


	2022		2021
	(millions)
Unrecognized prior service benefit (net of $0 tax expense and $1 tax expense, respectively)	$	1	$	2
Unrecognized gains (losses) (net of $33 tax benefit and $7 tax expense, respectively)	(91)		41
Total	$	(90)	$	43

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:


	2022		2021
	(millions)
Unrecognized prior service cost (benefit)	$	2	$	(1)

Unrecognized losses (gains)	277		(80)
Total	$	279	$	(81)

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.


	2022		2021
Discount rate	5.05	%	2.87	%
Salary increase	4.90	%	4.90	%
Weighted-average interest crediting rate	3.82	%	3.79	%

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


	2022		2021		2020
Discount rate	2.87	%	2.53	%	3.22	%
Salary increase	4.90	%	4.40	%	4.40	%
Expected long-term rate of return, net of investment management fees	7.35	%	7.35	%	7.35	%
Weighted-average interest crediting rate	3.79	%	3.82	%	3.83	%

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, 2022(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)	$	1,246	$	5	$	1	$	1,252
Equity commingled vehicles(c)	—		731		—		731
U.S. Government and municipal bonds	85		5		—		90
Corporate debt securities(d)	—		272		—		272
Asset-backed securities(e)	—		413		—		413
Debt security commingled vehicles	—		130		—		130
Convertible securities(f)	50		367		—		417

Total investments in the fair value hierarchy	$	1,381	$	1,923	$	1	3,305
Total investments measured at net asset value(g)							1,238
Total fair value of plan assets							$	4,543

_____________________

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

(b)Includes foreign investments of $526 million.

(c)Includes foreign investments of $191 million.

(d)Includes foreign investments of $83 million.

(e)Includes foreign investments of $129 million.

(f)Includes foreign investments of $30 million.

(g)Includes foreign investments of $242 million.


	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

______________________

(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.

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):


2023	$	198
2024	$	199
2025	$	201
2026	$	204
2027	$	203
2028 – 2032	$	1,008

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
	2022		2021		2020		2022		2021		2020
			(millions)
Service cost	$	86	$	90	$	85	$	1	$	2	$	1
Interest cost	77		64		92		5		4		8
Expected return on plan assets	(363)		(339)		(321)		—		—		—
Amortization of actuarial loss	—		24		18		3		5		3
Amortization of prior service benefit	(1)		(1)		(1)		(4)		(15)		(16)
Special termination benefit	52		—		16		—		—		—
Benefit plan settlement	27		—		—		—		—		—
Net periodic (income) cost at NEE	$	(122)	$	(162)	$	(111)	$	5	$	(4)	$	(4)
Net periodic (income) cost allocated to FPL	$	(76)	$	(108)	$	(84)	$	4	$	(4)	$	(4)

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:


	2022		2021		2020
	(millions)
Prior service cost (net of $0 tax benefit)	$	(1)	$	—	$	—
Net gains (losses) (net of $43 tax benefit, $29 tax expense and $13 tax expense, respectively)	(139)		95		42
Amortization of unrecognized losses (net of $2 tax expense, $2 tax expense and $1 tax expense, respectively)	7		6		5


Total	$	(133)	$	101	$	47

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:


	2022		2021
	(millions)
Prior service cost (benefit)	$	2	$	(1)
Unrecognized losses (gains)	375		(226)
Amortization of prior service benefit	1		—
Amortization of unrecognized losses	(18)		(16)
Total	$	360	$	(243)