UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K |
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission | Exact name of registrants as specified in their | IRS Employer | |||||||||
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Name of exchange | |||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
FPL Group, Inc.: | Common Stock, $0.01 Par Value and Preferred Share Purchase Rights | New York Stock Exchange | |||||||||
Corporate Units | New York Stock Exchange | ||||||||||
8% Corporate Units | New York Stock Exchange | ||||||||||
Florida Power & Light Company: None | |||||||||||
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FPL Group, Inc.: None | |||||||||||
Florida Power & Light Company: Preferred Stock, $100 Par Value | |||||||||||
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DEFINITIONS | |
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ASLB | Atomic Safety and Licensing Board |
capacity clause | capacity cost recovery clause |
charter | restated articles of incorporation, as amended, of FPL Group or FPL, as the case may be |
DOE | U.S. Department of Energy |
EMF | electric and magnetic fields |
EMT | energy Marketing & Trading |
environmental clause | environmental compliance cost recovery clause |
ERCOT | Electric Reliability Council of Texas |
EPA | U.S. Environmental Protection Agency |
FAS | Statement of Financial Accounting Standards No. |
FASB | Financial Accounting Standards Board |
FDEP | Florida Department of Environmental Protection |
FERC | Federal Energy Regulatory Commission |
FGT | Florida Gas Transmission Company |
FIN | FASB Interpretation No. |
FMPA | Florida Municipal Power Agency |
FPL | Florida Power & Light Company |
FPL Energy | FPL Energy, LLC |
FPL FiberNet | FPL FiberNet, LLC |
FPL Group | FPL Group, Inc. |
FPL Group Capital | FPL Group Capital Inc |
FPSC | Florida Public Service Commission |
fuel clause | fuel and purchased power cost recovery clause |
GridFlorida | GridFlorida LLC |
Holding Company Act | Public Utility Holding Company Act of 1935, as amended |
IARC | International Agency for Research on Cancer |
ISO | independent system operator |
JEA | Jacksonville Electric Authority |
kv | kilovolt |
kwh | kilowatt-hour |
lbs/mwh | pounds per megawatt hour |
MAIN | Mid-America Interconnected Network |
Management's Discussion | Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations |
MAPP | Mid-Continent Area Power Pool |
mortgage | FPL's mortgage and deed of trust dated as of January 1, 1944, as supplemented and amended |
mw | megawatt(s) |
NEPOOL | New England Power Pool |
NERC | North American Electric Reliability Council |
Note ___ | note ___ to consolidated financial statements |
NRC | U.S. Nuclear Regulatory Commission |
Nuclear Waste Policy Act | Nuclear Waste Policy Act of 1982 |
NYPP | New York Power Pool |
O&M expenses | other operations and maintenance expenses in the consolidated statements of income |
OCI | other comprehensive income |
PFS | Private Fuel Storage, LLC |
PJM | PJM Interconnection |
PMI | FPL Energy Power Marketing, Inc. |
Public Counsel | State of Florida Office of Public Counsel |
PURPA | Public Utility Regulatory Policies Act of 1978, as amended |
qualifying facilities | non-utility power production facilities meeting the requirements of a qualifying facility under the PURPA |
Reform Act | Private Securities Litigation Reform Act of 1995 |
ROE | return on common equity |
RTOs | regional transmission organizations |
Seabrook | Seabrook Station |
SEC | Securities and Exchange Commission |
SERC | Southeastern Electric Reliability Council |
SPE | special purpose entity |
SPP | Southwest Power Pool |
storm fund | storm and property insurance reserve fund |
VIE | variable interest entity |
WECC | Western Electricity Coordinating Council |
CAUTIONARY STATEMENTS AND RISK FACTORS THAT MAY AFFECT FUTURE RESULTS | |
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PART I | ||||||
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Years Ended December 31, | ||||||
2002 | 2001 | 2000 | ||||
Residential | 55% | 56% | 55% | |||
Commercial | 36% | 38% | 36% | |||
Industrial | 3% | 3% | 3% | |||
Other, including the provision for retail rate refund | ||||||
and the net change in unbilled revenues | 6% | 3% | 6% | |||
100% | 100% | 100% | ||||
FPL currently holds 173 franchise agreements with varying expiration dates to provide electric service in various municipalities and counties in Florida. FPL considers its franchises to be adequate for the conduct of its business. | ||||||
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Years Ended December 31, | ||||||||||||||
2002 (a) | 2003 | 2004 | 2005 | |||||||||||
(millions) | ||||||||||||||
66 2/3% to customers | $ | 3,580 | $ | 3,680 | $ | 3,780 | $ | 3,880 | ||||||
100% to customers | $ | 3,740 | $ | 3,840 | $ | 3,940 | $ | 4,040 | ||||||
_____________________ | ||||||||||||||
(a) | Refund is limited to 71.5% (representing the period April 15 through December 31, 2002) of the revenues from base rate operations exceeding the thresholds. |
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2003 | 2004 | 2005 | 2006 | 2007 | Total | |||||||||||||
(millions) | ||||||||||||||||||
Generation | $ | 595 | $ | 605 | $ | 425 | $ | 200 | $ | 165 | $ | 1,990 | ||||||
Transmission | 150 | 185 | 140 | 135 | 140 | 750 | ||||||||||||
Distribution | 510 | 520 | 510 | 515 | 525 | 2,580 | ||||||||||||
General and other | 110 | 135 | 115 | 125 | 120 | 605 | ||||||||||||
Total | $ | 1,365 | $ | 1,445 | $ | 1,190 | $ | 975 | $ | 950 | $ | 5,925 | ||||||
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NEPOOL/NYPP (Northeast) | 40% | |
MAPP/MAIN/SPP/ERCOT (Central) | 32% | |
SERC/PJM (Mid-Atlantic) | 17% | |
WECC (West) | 11% |
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Natural Gas | 44% | |
Wind | 24% | |
Nuclear | 14% | |
Oil | 11% | |
Hydro | 5% | |
Other | 2% |
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2003 | 2004 | 2005 | 2006 | 2007 | Total | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||||
FPL Energy: | |||||||||||||||||||||||||
Wind(a) | $ | 1,165 | $ | - | $ | - | $ | - | $ | - | $ | 1,165 | |||||||||||||
Gas | 405 | 65 | 10 | 70 | 15 | 565 | |||||||||||||||||||
Nuclear | 20 | 20 | 25 | 15 | 15 | 95 | |||||||||||||||||||
Total | $ | 1,590 | $ | 85 | $ | 35 | $ | 85 | $ | 30 | $ | 1,825 | |||||||||||||
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(a) | FPL Energy has projected capital expenditures for 1,200 mw of wind through 2003 when the production tax credits are scheduled to expire. |
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EXECUTIVE OFFICERS OF THE REGISTRANTS(a) | |||||||
Name | Age | Position | Effective Date | ||||
Dennis P. Coyle | 64 | General Counsel and Secretary of FPL Group | June 1, 1991 | ||||
General Counsel and Secretary of FPL | July 1, 1991 | ||||||
Paul I. Cutler | 43 | Treasurer of FPL Group | February 19, 2003 | ||||
Treasurer of FPL | February 18, 2003 | ||||||
K. Michael Davis | 56 | Controller and Chief Accounting Officer of FPL Group | May 13, 1991 | ||||
Vice President, Accounting, Controller and Chief Accounting | |||||||
Officer of FPL | July 1, 1991 | ||||||
Moray P. Dewhurst | 48 | Vice President, Finance and Chief Financial Officer of FPL Group | July 17, 2001 | ||||
Senior Vice President, Finance and Chief Financial Officer of FPL | July 19, 2001 | ||||||
Paul J. Evanson | 61 | President of FPL | January 9, 1995 | ||||
Lewis Hay III | 47 | President and Chief Executive Officer of FPL Group | June 11, 2001 | ||||
Chairman of the Board of FPL Group | January 1, 2002 | ||||||
Chairman of the Board and Chief Executive Officer of FPL | January 1, 2002 | ||||||
Lawrence J. Kelleher | 55 | Vice President, Human Resources of FPL Group | May 13, 1991 | ||||
Senior Vice President, Human Resources and Corporate Services of FPL | July 1, 1999 | ||||||
Robert L. McGrath | 49 | Senior Vice President, Engineering and Construction of FPL | November 15, 2002 | ||||
Armando J. Olivera | 53 | Senior Vice President, Power Systems of FPL | July 1, 1999 | ||||
James L. Robo | 40 | President of FPL Energy | July 26, 2002 | ||||
Antonio Rodriguez | 60 | Senior Vice President, Power Generation Division of FPL | July 1, 1999 | ||||
John A. Stall | 48 | Senior Vice President, Nuclear Division of FPL | June 4, 2001 | ||||
_____________________ | |||||||
(a) | Executive officers are elected annually by, and serve at the pleasure of, their respective boards of directors. Except as noted below, each officer has held his present position for five years or more and his employment history is continuous. The business experience of the executive officers is as follows: Mr. Cutler was assistant treasurer of FPL Group from May 1997 to May 1998 and from May 1999 to February 2003. He was assistant treasurer of FPL from May 1997 to February 2003. Mr. Cutler was also assistant secretary of FPL Group and FPL from December 1997 to February 2003. Mr. Dewhurst was senior partner of Dean & Company, a management consulting and investment firm that he co-founded in 1993. Mr. Hay was president of FPL Energy from March 2000 to December 2001. From July 1999 to March 2000, he was vice president, finance and chief financial officer of FPL Group and senior vice president, finance and chief financial officer of FPL. From May 1999 to July 1999, Mr. Hay was president of LSME Acquisition Co., LLC, a specific purpose acquisition company. Prior to that, he was executive vice president and chief financial officer of U.S. Foodservice, Inc., a food service distributor. Mr. Kelleher was senior vice president, human resources of FPL from July 1991 to July 1999. Mr. McGrath was treasurer of FPL Group and FPL from January 2000 to November 2002. He was also vice president, finance and chief financial officer of FPL Energy from June 2000 to November 2002. Prior to that, Mr. McGrath was assistant treasurer of FPL Group and FPL. Mr. Olivera was vice president, distribution of FPL from February 1997 to July 1999. Mr. Robo was vice president of corporate development and strategy of FPL Group from March 2002 to July 2002. He was president and CEO of TIP, a GE Capital Company that provides trailer and storage equipment services, and GE Capital Modular Space, a supplier of mobile and modular buildings, from December 1999 to March 2002. Prior to that, Mr. Robo was president and CEO of GE Mexico. Mr. Rodriguez was vice president, power delivery of FPL from February 1997 to July 1999. Mr. Stall was vice president of nuclear engineering of FPL from January 2000 to June 2001. Prior to that, he was plant vice president at St. Lucie. | ||||||
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FPL: | |||||||||||||||||||||
Nuclear | |||||||||||||||||||||
St. Lucie | Hutchinson Island, FL | 2 | Nuclear | 1,553 | (b) | ||||||||||||||||
Turkey Point | Florida City, FL | 2 | Nuclear | 1,386 | |||||||||||||||||
Steam turbines | |||||||||||||||||||||
Cape Canaveral | Cocoa, FL | 2 | Oil/Gas | 806 | |||||||||||||||||
Cutler | Miami, FL | 2 | Gas | 206 | |||||||||||||||||
Manatee | Parrish, FL | 2 | Oil | 1,620 | |||||||||||||||||
Martin | Indiantown, FL | 2 | Oil/Gas | 1,617 | |||||||||||||||||
Port Everglades | Port Everglades, FL | 4 | Oil/Gas | 1,212 | |||||||||||||||||
Riviera | Riviera Beach, FL | 2 | Oil/Gas | 565 | |||||||||||||||||
St. Johns River Power Park | Jacksonville, FL | 2 | Coal/Petroleum Coke | 254 | (c) | ||||||||||||||||
Sanford | Lake Monroe, FL | 1 | Oil/Gas | 138 | (d) | ||||||||||||||||
Scherer | Monroe County, GA | 1 | Coal | 658 | (e) | ||||||||||||||||
Turkey Point | Florida City, FL | 2 | Oil/Gas | 800 | |||||||||||||||||
Combined-cycle | |||||||||||||||||||||
Fort Myers | Fort Myers, FL | 1 | Gas | 1,423 | |||||||||||||||||
Lauderdale | Dania, FL | 2 | Gas/Oil | 854 | |||||||||||||||||
Martin | Indiantown, FL | 2 | Gas | 935 | |||||||||||||||||
Putnam | Palatka, FL | 2 | Gas/Oil | 498 | |||||||||||||||||
Sanford | Lake Monroe, FL | 1 | Gas | 910 | |||||||||||||||||
Simple-cycle combustion turbines | |||||||||||||||||||||
Martin | Indiantown, FL | 1 | Gas/Oil | 298 | |||||||||||||||||
Gas turbines/diesels | |||||||||||||||||||||
Fort Myers | Fort Myers, FL | 12 | Oil | 636 | |||||||||||||||||
Lauderdale | Dania, FL | 24 | Oil/Gas | 840 | |||||||||||||||||
Port Everglades | Port Everglades, FL | 12 | Oil/Gas | 420 | |||||||||||||||||
Turkey Point | Florida City, FL | 5 | Oil | 12 | |||||||||||||||||
TOTAL | 17,641 | ||||||||||||||||||||
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Northeast: | |||||||||||||||||||||
Bayswater | Far Rockaway, NY | 1 | Gas | 54 | |||||||||||||||||
Maine | Various - ME | 9 | Oil | 755 | |||||||||||||||||
Maine | Various - ME | 89 | Hydro | 373 | |||||||||||||||||
Seabrook | Seabrook, NH | 1 | Nuclear | 1,024 | (f) | ||||||||||||||||
Investment in joint venture | MA | 1 | Gas | 150 | |||||||||||||||||
Total Northeast | 2,356 | ||||||||||||||||||||
Mid-Atlantic: | |||||||||||||||||||||
Doswell | Ashland, VA | 5 | Gas | 879 | |||||||||||||||||
Green Mountain | Somerset County, PA | 8 | Wind | 10 | |||||||||||||||||
Marcus Hook 50 | Marcus Hook, PA | 1 | Gas | 50 | |||||||||||||||||
Mountaineer Wind Energy Center | Thomas, WV | 44 | Wind | 66 | |||||||||||||||||
Investments in joint ventures | Various | (g) | Various | 251 | |||||||||||||||||
Total Mid-Atlantic | 1,256 | ||||||||||||||||||||
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Central: | |||||||||||||||||||||
Cerro Gordo | Ventura, IA | 55 | Wind | 42 | |||||||||||||||||
Delaware Mountain | Culberson County, TX | 40 | Wind | 30 | |||||||||||||||||
Gray County | Montezuma, KS | 170 | Wind | 112 | |||||||||||||||||
Hancock County | Hancock County, IA | 148 | Wind | 98 | |||||||||||||||||
Indian Mesa | McCarney, TX | 125 | Wind | 83 | |||||||||||||||||
King Mountain | Upton County, TX | 214 | Wind | 278 | |||||||||||||||||
Lake Benton II | Ruthton, MN | 138 | Wind | 104 | |||||||||||||||||
Lamar Power Partners | Paris, TX | 2 | Gas | 990 | |||||||||||||||||
Montfort | Montfort, WI | 20 | Wind | 30 | |||||||||||||||||
Southwest Mesa | McCamey, TX | 107 | Wind | 75 | |||||||||||||||||
Woodward Mountain | McCamey, TX | 242 | Wind | 160 | |||||||||||||||||
Investment in joint venture | Austin, TX | 2 | Gas | 283 | |||||||||||||||||
Total Central | 2,285 | ||||||||||||||||||||
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Stateline | WA/OR border | 454 | Wind | 300 | |||||||||||||||||
Vansycle | Helix, OR | 38 | Wind | 25 | |||||||||||||||||
Investments in joint ventures | Various- CA | (h) | Various | 478 | |||||||||||||||||
Total West | 803 | ||||||||||||||||||||
TOTAL | 6,700 | ||||||||||||||||||||
____________________ | |||||||||||||||||||||
(a) | Represents FPL's and FPL Energy's net ownership interest in plant capacity. | ||||||||||||||||||||
(b) | Excludes Orlando Utilities Commission's and the FMPA's combined share of approximately 15% of St. Lucie Unit No. 2. | ||||||||||||||||||||
(c) | Represents FPL's 20% ownership interest in each of St. Johns River Power Park Units Nos. 1 and 2, which are jointly owned with the JEA. | ||||||||||||||||||||
(d) | Unit 4 was retired from service in July 2002 and expected to return to service as a combined-cycle facility in May 2003. | ||||||||||||||||||||
(e) | Represents FPL's approximately 76% ownership of Scherer Unit No. 4, which is jointly owned with the JEA. | ||||||||||||||||||||
(f) | Excludes Massachusetts Municipal Wholesale Electric Company's, Taunton Municipal Lighting Plant's and Hudson Light & Power Department's combined share of 11.77%. | ||||||||||||||||||||
(g) | Represents plants using fuel and technology such as gas and waste-to-energy. | ||||||||||||||||||||
(h) | Includes multiple wind projects totaling 332 mw. The remaining 146 mw are provided by plants with less than 50 mw each using fuels and technologies such as solar, gas, coal and petroleum coke. |
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500 | kv | 1,105 | (a) | - | |||||||||
230 | kv | 2,316 | 31 | ||||||||||
138 | kv | 1,451 | 50 | ||||||||||
115 | kv | 671 | - | ||||||||||
69 | kv | 164 | 14 | ||||||||||
Less than 69kv | 40,679 | 23,293 | |||||||||||
Total | 46,386 | 23,388 | |||||||||||
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(a) | Includes approximately 75 miles owned jointly with the JEA. | ||||||||||||
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PART II | ||||||||||||||
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2002 | 2001 | |||||||||||||
Quarter | High | Low | High | Low | ||||||||||
First | $ | 60.10 | $ | 51.13 | $ | 71.63 | $ | 54.81 | ||||||
Second | $ | 65.31 | $ | 56.30 | $ | 63.15 | $ | 54.55 | ||||||
Third | $ | 60.08 | $ | 45.00 | $ | 60.50 | $ | 51.21 | ||||||
Fourth | $ | 61.40 | $ | 48.35 | $ | 57.28 | $ | 52.16 | ||||||
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First | $ | 0.58 | $ | 0.56 | ||||
Second | $ | 0.58 | $ | 0.56 | ||||
Third | $ | 0.58 | $ | 0.56 | ||||
Fourth | $ | 0.58 | $ | 0.56 | ||||
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Item 6. Selected Financial Data | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
SELECTED DATA OF FPL GROUP | ||||||||||||||||
(millions, except per share amounts): | ||||||||||||||||
Operating revenues | $ | 8,311 | $ | 8,326 | $ | 7,062 | $ | 6,438 | $ | 6,661 | ||||||
Income before cumulative effect of a change in accounting principle | $ | 695 | (a) | $ | 781 | (b) | $ | 704 | (c) | $ | 697 | (d) | $ | 664 | ||
Cumulative effect of adopting FAS 142, net of income taxes of $143 | $ | (222 | ) | $ | - | $ | - | $ | - | $ | - | |||||
Net income | $ | 473 | (e) | $ | 781 | (b) | $ | 704 | (c) | $ | 697 | (d) | $ | 664 | ||
Earnings per share of common stock: | ||||||||||||||||
Earnings per share before cumulative effect of adopting FAS 142 | $ | 4.02 | (a) | $ | 4.63 | (b) | $ | 4.14 | (c) | $ | 4.07 | (d) | $ | 3.85 | ||
Cumulative effect of adopting FAS 142 | $ | (1.28 | ) | $ | - | $ | - | $ | - | $ | - | |||||
Earnings per share | $ | 2.74 | (e) | $ | 4.63 | (b) | $ | 4.14 | (c) | $ | 4.07 | (d) | $ | 3.85 | ||
Earnings per share of common stock - assuming dilution: | ||||||||||||||||
Earnings per share before cumulative effect of adopting FAS 142 | $ | 4.01 | (a) | $ | 4.62 | (b) | $ | 4.14 | (c) | $ | 4.07 | (d) | $ | 3.85 | ||
Cumulative effect of adopting FAS 142 | $ | (1.28 | ) | $ | - | $ | - | $ | - | $ | - | |||||
Earnings per share | $ | 2.73 | (e) | $ | 4.62 | (b) | $ | 4.14 | (c) | $ | 4.07 | (d) | $ | 3.85 | ||
Dividends paid per share of common stock | $ | 2.32 | $ | 2.24 | $ | 2.16 | $ | 2.08 | $ | 2.00 | ||||||
Total assets | $ | 19,790 | $ | 17,463 | $ | 15,300 | $ | 13,441 | $ | 12,029 | ||||||
Long-term debt, excluding current maturities | $ | 5,790 | $ | 4,858 | $ | 3,976 | $ | 3,478 | $ | 2,347 | ||||||
Obligations of FPL under capital lease, excluding current maturities | $ | 140 | $ | 133 | $ | 127 | $ | 157 | $ | 146 | ||||||
SELECTED DATA OF FPL (millions): | ||||||||||||||||
Operating revenues | $ | 7,378 | $ | 7,477 | $ | 6,361 | $ | 6,057 | $ | 6,366 | ||||||
Net income available to FPL Group | $ | 717 | $ | 679 | (f) | $ | 607 | (f) | $ | 576 | (d) | $ | 616 | |||
Total assets | $ | 12,637 | $ | 11,924 | $ | 12,020 | $ | 10,608 | $ | 10,748 | ||||||
Long-term debt, excluding current maturities | $ | 2,364 | $ | 2,579 | $ | 2,577 | $ | 2,079 | $ | 2,191 | ||||||
Energy sales (kwh) | 98,605 | 93,488 | 91,969 | 88,067 | 89,362 | |||||||||||
Energy sales: | ||||||||||||||||
Residential | 51.6 | % | 50.9 | % | 50.4 | % | 50.2 | % | 50.9 | % | ||||||
Commercial | 40.6 | 40.6 | 40.2 | 40.3 | 38.8 | |||||||||||
Industrial | 4.1 | 4.4 | 4.1 | 4.5 | 4.4 | |||||||||||
Interchange power sales | 1.8 | 2.2 | 3.1 | 3.0 | 3.2 | |||||||||||
Other(g) | 1.9 | 1.9 | 2.2 | 2.0 | 2.7 | |||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Approximate 60-minute peak load (mw) (h): | ||||||||||||||||
Summer season | 19,219 | 18,754 | 17,808 | 17,615 | 17,897 | |||||||||||
Winter season | 20,190 | 17,585 | 18,219 | 17,057 | 16,802 | |||||||||||
Average number of customer accounts (thousands): | ||||||||||||||||
Residential | 3,566 | 3,491 | 3,414 | 3,332 | 3,266 | |||||||||||
Commercial | 435 | 427 | 415 | 405 | 397 | |||||||||||
Industrial | 16 | 15 | 16 | 16 | 15 | |||||||||||
Other | 3 | 2 | 3 | 3 | 2 | |||||||||||
Total | 4,020 | 3,935 | 3,848 | 3,756 | 3,680 | |||||||||||
Average price per kwh (cents)(i) | 7.32 | 8.05 | 6.86 | 6.87 | 7.13 | |||||||||||
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(a) | Includes impairment and restructuring charges, charges related to certain wind projects and leveraged leases, a favorable settlement of litigation with the IRS and net unrealized mark-to-market gains associated with non-managed hedges. | |||||||||||||||
(b) | Includes merger-related expenses and net unrealized mark-to-market gains associated with non-managed hedges. Excluding these items, FPL Group's net income and earnings per share (assuming dilution) would have been $792 million and $4.69, respectively. | |||||||||||||||
(c) | Includes merger-related expenses. Excluding these expenses, FPL Group's net income and earnings per share (assuming dilution) would have been $745 million and $4.38, respectively. | |||||||||||||||
(d) | Includes effects of gains on divestiture of cable investments, impairment loss and litigation settlement. Excluding these items, FPL Group's net income and earnings per share (assuming dilution) would have been $681 million and $3.98, respectively. Excluding the litigation settlement, FPL's net income available to FPL Group would have been $618 million. | |||||||||||||||
(e) | Includes the cumulative effect of an accounting change, impairment and restructuring charges, charges related to certain wind projects and leveraged leases, a favorable settlement of litigation with the IRS and net unrealized mark-to-market gains associated with non-managed hedges. Excluding these items, FPL Group's net income would have been $831 million and earnings per share (assuming dilution) would have been $4.80. | |||||||||||||||
(f) | Includes merger-related expenses. Excluding these expenses, FPL's net income available to FPL Group would have been $695 million in 2001 and $645 million in 2000. | |||||||||||||||
(g) | Includes the net change in unbilled sales. | |||||||||||||||
(h) | Winter season includes November and December of the current year and January to March of the following year. | |||||||||||||||
(i) | Excludes interchange power sales, net change in unbilled revenues, deferrals/recoveries under cost recovery clauses and the provision for retail rate refund. |
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Years Ended December 31, | ||||||||||||||||||||||||||
2002(a) | 2003 | 2004 | 2005 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
66 2/3% to customers | $ | 3,580 | $ | 3,680 | $ | 3,780 | $ | 3,880 | ||||||||||||||||||
100% to customers | $ | 3,740 | $ | 3,840 | $ | 3,940 | $ | 4,040 | ||||||||||||||||||
_____________________ | ||||||||||||||||||||||||||
(a) | Refund is limited to 71.5% (representing the period April 15 through December 31, 2002) of the revenues from base rate operations exceeding the thresholds. | |||||||||||||||||||||||||
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Years Ended December 31, | ||||||||||||||||||||||||||
2002 | 2001 | 2000 | ||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Retail base operations | $ | 3,603 | $ | 3,616 | $ | 3,507 | ||||||||||||||||||||
Revenue refund provision | (34 | ) | (110 | ) | (60 | ) | ||||||||||||||||||||
Cost recovery clauses and other pass-through costs | 3,793 | 3,955 | 2,902 | |||||||||||||||||||||||
Other | 16 | 16 | 12 | |||||||||||||||||||||||
Total | $ | 7,378 | $ | 7,477 | $ | 6,361 | ||||||||||||||||||||
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| Available | % MW | |||||||||
Wind(b) | 1,924 | 100 | % | ||||||||
Non-wind assets under long-term contract | 1,255 | 98 | % | ||||||||
Merchants: | |||||||||||
Seabrook | 955 | 96 | % | ||||||||
NEPOOL/PJM/NYPP | 1,558 | 44 | % | (c) | |||||||
ERCOT | 2,301 | 75 | % | (c) | |||||||
Other (WECC/SERC) | 862 | 42 | % | (c) | |||||||
Total portfolio | 8,855 | 77 | % | ||||||||
_____________________ | |||||||||||
(a) | Weighted to reflect in-service dates; all assets adjusted for planned 2003 outages, including a refueling outage for Seabrook. | ||||||||||
(b) | For further discussion regarding two wind projects involved in litigation that could potentially terminate long-term power sales agreements, see Note 17 - Other Contingencies. | ||||||||||
(c) | Represents on-peak mw hedged. |
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Moody's(a) | S&P(a) | ||||
FPL Group: | |||||
Corporate credit rating | N/A | A | |||
FPL: | |||||
Corporate credit rating | A1 | A/A-1 | |||
First mortgage bonds | Aa3 | A | |||
Pollution control, solid waste disposal and | |||||
industrial development revenue bonds | Aa3/VMIG-1 | A/A-1 | |||
Preferred stock | A3 | BBB+ | |||
Commercial paper | P-1 | A-1 | |||
FPL Group Capital: | |||||
Corporate credit rating | N/A | A/A-1 | |||
Debentures | A2 | A- | |||
Commercial paper | P-1 | A-1 | |||
_____________________ | |||||
(a) | A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning rating organization. | ||||
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2003 | 2004-05 | 2006-07 | Thereafter | Total | |||||||||||||||
(millions) | |||||||||||||||||||
Long-Term Debt: | |||||||||||||||||||
FPL | $ | 70 | $ | 500 | $ | - | $ | 1,875 | $ | 2,445 | |||||||||
FPL Energy | 35 | 78 | 57 | 212 | 382 | ||||||||||||||
Corporate and Other | - | 275 | 1,675 | 1,136 | 3,086 | ||||||||||||||
Standby letters of credit: | |||||||||||||||||||
FPL | 9 | - | - | - | 9 | ||||||||||||||
FPL Energy | 320 | - | - | - | 320 | ||||||||||||||
Corporate and Other | 4 | - | - | - | 4 | ||||||||||||||
Guarantees: | |||||||||||||||||||
FPL Energy | 105 | 6 | 214 | 332 | 657 | ||||||||||||||
Corporate and Other | - | 2 | - | 1 | 3 | ||||||||||||||
Other commitments: | |||||||||||||||||||
FPL(a) | 1,365 | 2,635 | 1,925 | - | 5,925 | ||||||||||||||
FPL Energy(b) | 224 | 325 | 262 | 188 | 999 | ||||||||||||||
Corporate and Other | 10 | - | - | - | 10 | ||||||||||||||
Total | $ | 2,142 | $ | 3,821 | $ | 4,133 | $ | 3,744 | $ | 13,840 | |||||||||
_____________________ | |||||||||||||||||||
(a) | Represents projected capital expenditures through 2007 to meet increased electricity usage and customer growth. Excludes minimum payments under purchased power and fuel contracts which are recoverable through various cost recovery clauses. See Note 17 -Contracts. | ||||||||||||||||||
(b) | Represents firm commitments in connection with the acquisition, development and expansion of independent power projects. |
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| Non-Managed |
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(millions) | ||||||||||||||||
Fair value of contracts outstanding at beginning of period | $ | 1 | $ | (7 | ) | $ | (6 | ) | ||||||||
Contracts realized or settled | (8 | ) | (14 | ) | (22 | ) | ||||||||||
Fair value of new contracts when entered into | 9 | - | 9 | |||||||||||||
Changes in valuation assumptions | - | 2 | 2 | (a) | ||||||||||||
Other changes in fair values | 2 | 67 | 69 | |||||||||||||
Fair value of contracts outstanding at December 31, 2002 | $ | 4 | $ | 48 | $ | 52 | (b) | |||||||||
_____________________ | ||||||||||||||||
(a) | Change in valuation assumption of correlation between power and fuel prices. | |||||||||||||||
(b) | Includes the fair value of FPL's derivative instruments of approximately $12 million at December 31, 2002. |
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Maturity | |||||||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | Thereafter | Total | |||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||
Sources of Fair Value: | |||||||||||||||||||||||||||||||||
Prices actively quoted | $ | 50 | $ | (2 | ) | $ | (2 | ) | $ | - | $ | - | $ | - | $ | 46 | |||||||||||||||||
Prices provided by other external sources, | |||||||||||||||||||||||||||||||||
primarily broker quotes | - | 1 | - | - | - | - | 1 | ||||||||||||||||||||||||||
Prices based on models and other valuation | |||||||||||||||||||||||||||||||||
methods | 1 | (1 | ) | 1 | 1 | 1 | 2 | 5 | |||||||||||||||||||||||||
$ | 51 | $ | (2 | ) | $ | (1 | ) | $ | 1 | $ | 1 | $ | 2 | $ | 52 | ||||||||||||||||||
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| Non-Managed Hedges |
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| FPL | FPL |
| FPL | FPL |
| FPL | FPL | ||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
December 31, 2001 | $ | - | $ | 1 | $ | 1 | $ | 2 | $ | 3 | $ | 5 | $ | 2 | $ | 2 | $ | 4 | ||||||||
December 31, 2002 | $ | - | $ | - | $ | - | $ | 1 | $ | 3 | $ | 4 | $ | 1 | $ | 3 | $ | 4 | ||||||||
Average for the period ended | ||||||||||||||||||||||||||
December 31, 2002 | $ | 1 | $ | - | $ | 1 | $ | 1 | $ | 8 | $ | 9 | $ | 2 | $ | 8 | $ | 10 |
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December 31, | |||||||||||||||||||||
2002 | 2001 | ||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||
(millions) | |||||||||||||||||||||
Long-term debt of FPL, including current maturities | $ | 2,434 | $ | 2,578 | (a) | $ | 2,579 | $ | 2,653 | (a) | |||||||||||
Long-term debt of FPL Group, including current maturities | $ | 5,895 | $ | 6,222 | (a) | $ | 4,890 | $ | 5,080 | (a) | |||||||||||
_____________________ | |||||||||||||||||||||
(a) Based on quoted market prices for these or similar issues. |
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FPL GROUP, INC. | ||||||||||||
Years Ended December 31, | ||||||||||||
2002 | 2001 | 2000 | ||||||||||
OPERATING REVENUES | $ | 8,311 | $ | 8,326 | $ | 7,062 | ||||||
OPERATING EXPENSES | ||||||||||||
Fuel, purchased power and interchange | 3,711 | 3,881 | 2,848 | |||||||||
Other operations and maintenance | 1,492 | 1,325 | 1,257 | |||||||||
Restructuring and impairment charges | 207 | - | - | |||||||||
Merger-related | - | 30 | 67 | |||||||||
Depreciation and amortization | 952 | 983 | 1,032 | |||||||||
Taxes other than income taxes | 721 | 711 | 618 | |||||||||
Total operating expenses | 7,083 | 6,930 | 5,822 | |||||||||
OPERATING INCOME | 1,228 | 1,396 | 1,240 | |||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||
Interest charges | (311 | ) | (324 | ) | (278 | ) | ||||||
Preferred stock dividends - FPL | (15 | ) | (15 | ) | (15 | ) | ||||||
Reserve for leveraged leases | (48 | ) | - | - | ||||||||
Equity in earnings of equity method investees | 76 | 81 | 45 | |||||||||
Other - net | 9 | 22 | 48 | |||||||||
Total other deductions - net | (289 | ) | (236 | ) | (200 | ) | ||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 939 | 1,160 | 1,040 | |||||||||
INCOME TAXES | 244 | 379 | 336 | |||||||||
INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE | ||||||||||||
IN ACCOUNTING PRINCIPLE | 695 | 781 | 704 | |||||||||
Cumulative effect of ADOPTING fas 142, "GOODWILL AND OTHER | ||||||||||||
INTANGIBLE ASSETS," NET OF INCOME TAXES OF $143 | (222 | ) | - | - | ||||||||
NET INCOME | $ | 473 | $ | 781 | $ | 704 | ||||||
Earnings per share of common stock: | ||||||||||||
Earnings per share before cumulative effect of adopting FAS 142 | $ | 4.02 | $ | 4.63 | $ | 4.14 | ||||||
Cumulative effect of adopting FAS 142 | $ | (1.28 | ) | - | - | |||||||
Earnings per share | $ | 2.74 | $ | 4.63 | $ | 4.14 | ||||||
Earnings per share of common stock - assuming dilution: | ||||||||||||
Earnings per share before cumulative effect of adopting FAS 142 | $ | 4.01 | $ | 4.62 | $ | 4.14 | ||||||
Cumulative effect of adopting FAS 142 | $ | (1.28 | ) | - | - | |||||||
Earnings per share | $ | 2.73 | $ | 4.62 | $ | 4.14 | ||||||
Dividends per share of common stock | $ | 2.32 | $ | 2.24 | $ | 2.16 | ||||||
Weighted-average number of common shares outstanding: | ||||||||||||
Basic | 172.9 | 168.7 | 169.9 | |||||||||
Assuming dilution | 173.3 | 168.9 | 170.2 | |||||||||
|
FPL GROUP, INC. | ||||||||
December 31, | ||||||||
2002 | 2001 | |||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Electric utility plant in service and other property | $ | 23,664 | $ | 21,272 | ||||
Nuclear fuel - net | 202 | 133 | ||||||
Construction work in progress | 2,639 | 1,983 | ||||||
Less accumulated depreciation and amortization | (12,201 | ) | (11,726 | ) | ||||
Total property, plant and equipment - net | 14,304 | 11,662 | ||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | 266 | 82 | ||||||
Customer receivables, net of allowances of $26 and $8, respectively | 642 | 636 | ||||||
Other receivables | 223 | 144 | ||||||
Materials, supplies and fossil fuel inventory - at average cost | 448 | 349 | ||||||
Deferred clause expenses | 131 | 304 | ||||||
Other | 198 | 87 | ||||||
Total current assets | 1,908 | 1,602 | ||||||
OTHER ASSETS | ||||||||
Special use funds | 1,921 | 1,608 | ||||||
Other investments | 697 | 1,035 | ||||||
Other | 960 | 1,556 | ||||||
Total other assets | 3,578 | 4,199 | ||||||
TOTAL ASSETS | $ | 19,790 | $ | 17,463 | ||||
CAPITALIZATION | ||||||||
Common shareholders' equity | $ | 6,390 | $ | 6,015 | ||||
Preferred stock of FPL without sinking fund requirements | 226 | 226 | ||||||
Long-term debt | 5,790 | 4,858 | ||||||
Total capitalization | 12,406 | 11,099 | ||||||
CURRENT LIABILITIES | ||||||||
Commercial paper | 1,822 | 1,680 | ||||||
Notes payable | 375 | 302 | ||||||
Current maturities of long-term debt | 105 | 32 | ||||||
Accounts payable | 458 | 473 | ||||||
Customers' deposits | 316 | 285 | ||||||
Accrued interest and taxes | 169 | 160 | ||||||
Deferred clause revenues | 62 | 144 | ||||||
Other | 604 | 563 | ||||||
Total current liabilities | 3,911 | 3,639 | ||||||
OTHER LIABILITIES AND DEFERRED CREDITS | ||||||||
Accumulated deferred income taxes | 1,547 | 1,302 | ||||||
Deferred regulatory credit - income taxes | 73 | 88 | ||||||
Unamortized investment tax credits | 120 | 140 | ||||||
Storm and property insurance reserve | 298 | 235 | ||||||
Other | 1,435 | 960 | ||||||
Total other liabilities and deferred credits | 3,473 | 2,725 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ | 19,790 | $ | 17,463 | ||||
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
FPL GROUP, INC. | ||||||||||||
Years Ended December 31, | ||||||||||||
2002 | 2001 | 2000 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 473 | $ | 781 | $ | 704 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 908 | 983 | 1,032 | |||||||||
Goodwill impairment | 365 | - | - | |||||||||
Restructuring and impairment charges | 207 | - | - | |||||||||
Increase (decrease) in deferred income taxes and related regulatory credit | 219 | (91 | ) | 283 | ||||||||
Cost recovery clauses | 135 | 411 | (810 | ) | ||||||||
(Increase) decrease in restricted cash | 232 | (260 | ) | - | ||||||||
(Increase) decrease in customer receivables | (6 | ) | 6 | (155 | ) | |||||||
(Increase) decrease in material, supplies & fuel | (56 | ) | 19 | (27 | ) | |||||||
(Increase) decrease in other current assets | (86 | ) | 70 | (152 | ) | |||||||
Increase (decrease) in accounts payable | (15 | ) | (91 | ) | 157 | |||||||
Increase (decrease) in customers' deposits | 31 | 31 | (30 | ) | ||||||||
Increase (decrease) in accrued interest & taxes | 9 | 58 | (36 | ) | ||||||||
Increase in other current liabilities | 2 | 55 | 87 | |||||||||
Equity in earnings of equity method investees | (76 | ) | (102 | ) | (45 | ) | ||||||
Distribution of earnings from equity method investees | 96 | 62 | 80 | |||||||||
Increase in deferred pension debit | (63 | ) | (110 | ) | (112 | ) | ||||||
Increase (decrease) in other liabilities | (26 | ) | 98 | 10 | ||||||||
Other - net | (11 | ) | 22 | (10 | ) | |||||||
Net cash provided by operating activities | 2,338 | 1,942 | 976 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Capital expenditures of FPL | (1,256 | ) | (1,154 | ) | (1,299 | ) | ||||||
Independent power investments | (2,103 | ) | (1,977 | ) | (507 | ) | ||||||
Capital expenditures of FPL FiberNet | (21 | ) | (128 | ) | (88 | ) | ||||||
Increase in special use funds | (86 | ) | (77 | ) | (97 | ) | ||||||
Other - net | 199 | 67 | 48 | |||||||||
Net cash used in investing activities | (3,267 | ) | (3,269 | ) | (1,943 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Issuances of long-term debt | 1,770 | 920 | 947 | |||||||||
Retirements of long-term debt | (797 | ) | (87 | ) | (515 | ) | ||||||
Increase in commercial paper and notes payable | 214 | 824 | 819 | |||||||||
Issuances of common stock | 378 | - | - | |||||||||
Repurchases of common stock | - | - | (150 | ) | ||||||||
Dividends on common stock | (400 | ) | (377 | ) | (366 | ) | ||||||
Other - net | (52 | ) | - | - | ||||||||
Net cash provided by financing activities | 1,113 | 1,280 | 735 | |||||||||
Net increase (decrease) in cash and cash equivalents | 184 | (47 | ) | (232 | ) | |||||||
Cash and cash equivalents at beginning of year | 82 | 129 | 361 | |||||||||
Cash and cash equivalents at end of year | $ | 266 | $ | 82 | $ | 129 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||
Cash paid for interest (net of amount capitalized) | $ | 311 | $ | 373 | $ | 301 | ||||||
Cash paid for income taxes (net of refunds totaling $256 in 2002) | $ | (9 | ) | $ | 433 | $ | 160 | |||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||
Additions to capital lease obligations | $ | 74 | $ | 70 | $ | 43 | ||||||
Accrual for premium on publicly - traded equity units known as corporate units | $ | 111 | $ | - | $ | - | ||||||
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FPL GROUP, INC. | |||||||||||||||||||||||||||||||||
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| Accumulated |
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Balances, December 31, 1999 | 179 | $ | 2 | $ | 3,148 | $ | (244 | ) | $ | (1 | ) | $ | 2,465 | ||||||||||||||||||||
Net income | - | - | - | - | - | 704 | |||||||||||||||||||||||||||
Repurchases of common stock | (3 | ) | - | (150 | ) | - | - | - | |||||||||||||||||||||||||
Dividends on common stock | - | - | - | - | - | (366 | ) | ||||||||||||||||||||||||||
Earned compensation under ESOP | - | - | 12 | 15 | - | - | |||||||||||||||||||||||||||
Other comprehensive income | - | - | - | - | 1 | - | |||||||||||||||||||||||||||
Other | - | - | (2 | ) | 9 | - | - | ||||||||||||||||||||||||||
Balances, December 31, 2000 | 176 | (c) | 2 | 3,008 | (220 | ) | - | 2,803 | |||||||||||||||||||||||||
Net income | - | - | - | - | - | 781 | |||||||||||||||||||||||||||
Dividends on common stock | - | - | - | - | - | (377 | ) | ||||||||||||||||||||||||||
Earned compensation under ESOP | - | - | 15 | 15 | - | - | |||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | (8 | ) | - | ||||||||||||||||||||||||||
Other | - | - | 2 | (6 | ) | - | - | ||||||||||||||||||||||||||
Balances, December 31, 2001 | 176 | (c) | 2 | 3,025 | (211 | ) | (8 | ) | 3,207 | $ | 6,015 | ||||||||||||||||||||||
Net income | - | - | - | - | - | 473 | |||||||||||||||||||||||||||
Issuances of common stock, | |||||||||||||||||||||||||||||||||
net of issuance cost of $10 | 7 | - | 378 | - | - | - | |||||||||||||||||||||||||||
Dividends on common stock | - | - | - | - | - | (400 | ) | ||||||||||||||||||||||||||
Earned compensation under ESOP | - | - | 16 | 16 | - | - | |||||||||||||||||||||||||||
Premium on publicly-traded equity units | |||||||||||||||||||||||||||||||||
known as Corporate Units | - | - | (111 | ) | - | - | - | ||||||||||||||||||||||||||
Unamortized issuance cost on publicly- | |||||||||||||||||||||||||||||||||
traded equity units known as | |||||||||||||||||||||||||||||||||
Corporate Units | - | - | (29 | ) | - | - | - | ||||||||||||||||||||||||||
Other comprehensive income | - | - | - | - | 24 | - | |||||||||||||||||||||||||||
Other | - | - | 5 | 3 | - | - | |||||||||||||||||||||||||||
Balances, December 31, 2002 | 183 | (c) | $ | 2 | $ | 3,284 | $ | (192 | ) | $ | 16 | $ | 3,280 | $ | 6,390 | ||||||||||||||||||
_____________________ | |||||||||||||||||||||||||||||||||
(a) | $0.01 par value, authorized - 300,000,000 shares; outstanding 182,754,905 and 175,854,056 at December 31, 2002 and 2001, respectively. | ||||||||||||||||||||||||||||||||
(b) | Comprehensive income, which includes net income and other comprehensive income (loss), totaled $497 million, $773 million and $705 million for 2002, 2001 and 2000, respectively. | ||||||||||||||||||||||||||||||||
(c) | Outstanding and unallocated shares held by the Employee Stock Ownership Plan Trust totaled 6 million, 7 million and 7 million at December 31, 2002, 2001 and 2000, respectively. | ||||||||||||||||||||||||||||||||
|
FLORIDA POWER & LIGHT COMPANY | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||
2002 | 2001 | 2000 | |||||||||||||||||
OPERATING REVENUES | $ | 7,378 | $ | 7,477 | $ | 6,361 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Fuel, purchased power and interchange | 3,306 | 3,495 | 2,511 | ||||||||||||||||
Other operations and maintenance | 1,225 | 1,082 | 1,062 | ||||||||||||||||
Merger-related | - | 26 | 62 | ||||||||||||||||
Depreciation and amortization | 831 | 898 | 975 | ||||||||||||||||
Income taxes | 425 | 393 | 351 | ||||||||||||||||
Taxes other than income taxes | 689 | 699 | 600 | ||||||||||||||||
Total operating expenses | 6,476 | 6,593 | 5,561 | ||||||||||||||||
OPERATING INCOME | 902 | 884 | 800 | ||||||||||||||||
OTHER INCOME (DEDUCTIONS) | |||||||||||||||||||
Interest charges | (166 | ) | (187 | ) | (176 | ) | |||||||||||||
Other - net | (4 | ) | (3 | ) | (2 | ) | |||||||||||||
Total other deductions - net | (170 | ) | (190 | ) | (178 | ) | |||||||||||||
NET INCOME | 732 | 694 | 622 | ||||||||||||||||
PREFERRED STOCK DIVIDENDS | 15 | 15 | 15 | ||||||||||||||||
NET INCOME AVAILABLE TO FPL GROUP, INC. | $ | 717 | $ | 679 | $ | 607 | |||||||||||||
|
FLORIDA POWER & LIGHT COMPANY | |||||||||
December 31, | |||||||||
2002 | 2001 | ||||||||
ELECTRIC UTILITY PLANT | |||||||||
Plant in service | $ | 19,864 | $ | 18,693 | |||||
Less accumulated depreciation | (11,842 | ) | (11,480 | ) | |||||
Net | 8,022 | 7,213 | |||||||
Nuclear fuel under capital lease - net | 140 | 133 | |||||||
Construction work in progress | 757 | 948 | |||||||
Electric utility plant - net | 8,919 | 8,294 | |||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | - | 1 | |||||||
Customer receivables, net of allowances of $9 and $7, respectively | 503 | 546 | |||||||
Other receivables | 125 | 61 | |||||||
Materials, supplies and fossil fuel inventory - at average cost | 349 | 265 | |||||||
Deferred clause expenses | 131 | 304 | |||||||
Other | 57 | 53 | |||||||
Total current assets | 1,165 | 1,230 | |||||||
OTHER ASSETS | |||||||||
Special use funds | 1,693 | 1,608 | |||||||
Other | 860 | 792 | |||||||
Total other assets | 2,553 | 2,400 | |||||||
TOTAL ASSETS | $ | 12,637 | $ | 11,924 | |||||
CAPITALIZATION | |||||||||
Common shareholder's equity | $ | 5,382 | $ | 5,444 | |||||
Preferred stock without sinking fund requirements | 226 | 226 | |||||||
Long-term debt | 2,364 | 2,579 | |||||||
Total capitalization | 7,972 | 8,249 | |||||||
CURRENT LIABILITIES | |||||||||
Commercial paper | 722 | 232 | |||||||
Current maturities of long-term debt | 70 | - | |||||||
Accounts payable | 369 | 408 | |||||||
Customers' deposits | 316 | 285 | |||||||
Accrued interest and taxes | 175 | 207 | |||||||
Deferred clause revenues | 62 | 144 | |||||||
Other | 297 | 339 | |||||||
Total current liabilities | 2,011 | 1,615 | |||||||
OTHER LIABILITIES AND DEFERRED CREDITS | |||||||||
Accumulated deferred income taxes | 1,215 | 870 | |||||||
Deferred regulatory credit - income taxes | 73 | 88 | |||||||
Unamortized investment tax credits | 120 | 140 | |||||||
Storm and property insurance reserve | 298 | 235 | |||||||
Other | 948 | 727 | |||||||
Total other liabilities and deferred credits | 2,654 | 2,060 | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ | 12,637 | $ | 11,924 | |||||
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
FLORIDA POWER & LIGHT COMPANY | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2002 | 2001 | 2000 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net income | $ | 732 | $ | 694 | $ | 622 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 787 | 898 | 975 | ||||||||||||
Increase (decrease) in deferred income taxes and related regulatory credit | 330 | (233 | ) | 262 | |||||||||||
Cost recovery clauses | 135 | 411 | (810 | ) | |||||||||||
(Increase) decrease in customer receivables | 43 | (58 | ) | (60 | ) | ||||||||||
(Increase) decrease in material, supplies & fuel | (84 | ) | 48 | (14 | ) | ||||||||||
(Increase) decrease in other current assets | (2 | ) | 61 | (91 | ) | ||||||||||
Increase (decrease) in accounts payable | (61 | ) | (50 | ) | 79 | ||||||||||
Increase (decrease) in customers' deposits | 31 | 31 | (30 | ) | |||||||||||
Increase (decrease) in accrued interest & taxes | (32 | ) | 105 | (10 | ) | ||||||||||
Increase (decrease) in other current liabilities | (41 | ) | 11 | 51 | |||||||||||
Increase in deferred pension debit | (100 | ) | (102 | ) | (108 | ) | |||||||||
Other - net | 68 | 10 | (17 | ) | |||||||||||
Net cash provided by operating activities | 1,806 | 1,826 | 849 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Capital expenditures | (1,256 | ) | (1,154 | ) | (1,299 | ) | |||||||||
Increase in special use funds | (84 | ) | (77 | ) | (97 | ) | |||||||||
Other - net | 7 | 16 | (3 | ) | |||||||||||
Net cash used in investing activities | (1,333 | ) | (1,215 | ) | (1,399 | ) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Issuances of long-term debt | 593 | - | 947 | ||||||||||||
Retirements of long-term debt | (765 | ) | (66 | ) | (515 | ) | |||||||||
Increase (decrease) in commercial paper | 490 | (328 | ) | 466 | |||||||||||
Capital contributions from FPL Group, Inc. | 350 | 400 | 400 | ||||||||||||
Dividends | (1,142 | ) | (682 | ) | (682 | ) | |||||||||
Net cash provided by (used in) financing activities | (474 | ) | (676 | ) | 616 | ||||||||||
Net increase (decrease) in cash and cash equivalents | (1 | ) | (65 | ) | 66 | ||||||||||
Cash and cash equivalents at beginning of year | 1 | 66 | - | ||||||||||||
Cash and cash equivalents at end of year | $ | - | $ | 1 | $ | 66 | |||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||
Cash paid for interest | $ | 174 | $ | 185 | $ | 175 | |||||||||
Cash paid for income taxes (net of refunds totaling $283 in 2002) | $ | 188 | $ | 543 | $ | 131 | |||||||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||
Additions to capital lease obligations | $ | 74 | $ | 70 | $ | 43 | |||||||||
Transfer of net assets to FPL FiberNet, LLC | $ | - | $ | - | $ | 100 | |||||||||
|
FLORIDA POWER & LIGHT COMPANY | ||||||||||||||||||||||||
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Balances, December 31, 1999 | $ | 1,373 | $ | 2,566 | $ | - | $ | 854 | ||||||||||||||||
Net income available to FPL Group, Inc. | - | - | - | 607 | ||||||||||||||||||||
Capital contributions from FPL Group, Inc. | - | 400 | - | - | ||||||||||||||||||||
Dividends to FPL Group, Inc.(b) | - | - | - | (768 | ) | |||||||||||||||||||
Balances, December 31, 2000 | 1,373 | 2,966 | - | 693 | ||||||||||||||||||||
Net income available to FPL Group, Inc. | - | - | - | 679 | ||||||||||||||||||||
Capital contributions from FPL Group, Inc. | - | 400 | - | - | ||||||||||||||||||||
Dividends to FPL Group, Inc. | - | - | - | (667 | ) | |||||||||||||||||||
Balances, December 31, 2001 | 1,373 | 3,366 | - | 705 | $ | 5,444 | ||||||||||||||||||
Net income available to FPL Group, Inc. | - | - | - | 717 | ||||||||||||||||||||
Capital contributions from FPL Group, Inc. | - | 350 | - | - | ||||||||||||||||||||
Dividends to FPL Group, Inc. | - | - | - | (1,127 | ) | |||||||||||||||||||
Other comprehensive loss | - | - | (2 | ) | (d) | - | ||||||||||||||||||
Balances, December 31, 2002 | $ | 1,373 | $ | 3,716 | $ | (2 | ) | $ | 295 | $ | 5,382 | |||||||||||||
_____________________ | ||||||||||||||||||||||||
(a) | Common stock, no par value, 1,000 shares authorized, issued and outstanding. | |||||||||||||||||||||||
(b) | Includes transfer of net assets to FPL FiberNet, LLC totaling approximately $100 million. | |||||||||||||||||||||||
(c) | Comprehensive income, which includes net income and other comprehensive income (loss), totaled $715 million, $679 million and $607 million for 2002, 2001 and 2000, respectively. | |||||||||||||||||||||||
(d) | Minimum supplemental employee retirement plan liability adjustment. | |||||||||||||||||||||||
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FPL GROUP, INC. AND FLORIDA POWER & LIGHT COMPANY | |||||||||
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December 31, | |||||||||
2002 | 2001 | ||||||||
(millions) | |||||||||
Assets (current and long-term): | |||||||||
Unamortized debt reacquisition costs | $ | 41 | $ | 17 | |||||
Deferred Department of Energy assessment | $ | 24 | $ | 30 | |||||
Litigation settlement (see Note 10) | $ | 178 | $ | 223 | |||||
Deferred losses on sale of utility property | $ | 1 | $ | 1 | |||||
Liabilities: | |||||||||
Deferred regulatory credit - income taxes | $ | 73 | $ | 88 | |||||
Unamortized investment tax credits | $ | 120 | $ | 140 | |||||
Storm and property insurance reserve (see Note 17 - Insurance) | $ | 298 | $ | 235 | |||||
Discretionary depreciation and nuclear amortization | $ | 140 | $ | - | |||||
Unamortized gains on reacquired debt | $ | 5 | $ | 5 | |||||
Deferred gains on sale of utility property | $ | 5 | $ | 5 | |||||
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Years Ended December 31, | |||||||||||||||
2002(a) | 2003 | 2004 | 2005 | ||||||||||||
(millions) | |||||||||||||||
66 2/3% to customers | $ | 3,580 | $ | 3,680 | $ | 3,780 | $ | 3,880 | |||||||
100% to customers | $ | 3,740 | $ | 3,840 | $ | 3,940 | $ | 4,040 | |||||||
_____________________ | |||||||||||||||
(a) | Refund is limited to 71.5% (representing the period April 15 through December 31, 2002) of the revenues from base rate operations exceeding the thresholds. | ||||||||||||||
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Years Ended December 31, | |||||||||
2002 | 2001 | 2000 | |||||||
(millions, except per share amounts) | |||||||||
Net income, as reported | $ | 473 | $ | 781 | $ | 704 | |||
Deduct: total stock-based employee | |||||||||
compensation expense determined under | |||||||||
fair value based method, net of | |||||||||
related tax effects | (7 | ) | (6 | ) | (8 | ) | |||
Pro forma net income | $ | 466 | $ | 775 | $ | 696 | |||
Earnings per share: | |||||||||
Basic - as reported | $ | 2.74 | $ | 4.63 | 4.14 | ||||
Basic - pro forma | $ | 2.69 | $ | 4.60 | 4.10 | ||||
Assuming dilution - as reported | $ | 2.73 | $ | 4.62 | 4.14 | ||||
Assuming dilution - pro forma | $ | 2.69 | $ | 4.59 | 4.09 |
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Property, plant and equipment | $ | 774 | ||||||||||||
Decommissioning trust fund | 227 | |||||||||||||
Other assets | 61 | |||||||||||||
Total assets acquired | 1,062 | |||||||||||||
Nuclear decommissioning liability | 150 | |||||||||||||
Other liabilities | 104 | |||||||||||||
Total liabilities assumed | 254 | |||||||||||||
Net assets acquired | $ | 808 | ||||||||||||
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Pension Benefits | Other Benefits | |||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||
(millions) | ||||||||||||||
Change in benefit obligation: | ||||||||||||||
Obligation at October 1 of prior year | $ | 1,353 | $ | 1,205 | $ | 387 | $ | 350 | ||||||
Service cost | 52 | 48 | 6 | 6 | ||||||||||
Interest cost | 84 | 82 | 24 | 23 | ||||||||||
Participant contributions | - | - | 2 | 1 | ||||||||||
Plan amendments | (3 | ) | 42 | - | - | |||||||||
Acquisition | 48 | - | 12 | - | ||||||||||
Special termination benefits | 4 | - | - | - | ||||||||||
Actuarial (gains) losses- net | (55 | ) | 55 | 68 | 29 | |||||||||
Benefit payments | (78 | ) | (79 | ) | (30 | ) | (22 | ) | ||||||
Obligation at September 30 | 1,405 | 1,353 | 469 | 387 | ||||||||||
Change in plan assets: | ||||||||||||||
Fair value of plan assets at October 1 of prior year | 2,546 | 2,750 | 74 | 98 | ||||||||||
Actual return on plan assets | (80 | ) | (117 | ) | (1 | ) | (1 | ) | ||||||
Participant contributions | - | - | 2 | 1 | ||||||||||
Benefit payments | (78 | ) | (87 | ) | (30 | ) | (24 | ) | ||||||
Fair value of plan assets at September 30 | 2,388 | 2,546 | 45 | 74 | ||||||||||
Funded Status: | ||||||||||||||
Funded status at September 30 | 983 | 1,193 | (424 | ) | (313 | ) | ||||||||
Unrecognized prior service cost | (43 | ) | (39 | ) | - | - | ||||||||
Unrecognized transition (asset) obligation | (47 | ) | (70 | ) | 35 | 38 | ||||||||
Unrecognized (gain) loss | (338 | ) | (591 | ) | 127 | 53 | ||||||||
Prepaid (accrued) benefit cost at FPL Group at December 31 | $ | 555 | $ | 493 | $ | (262 | ) | $ | (222 | ) | ||||
Prepaid (accrued) benefit cost at FPL at December 31 | $ | 573 | $ | 473 | $ | (243 | ) | $ | (216 | ) | ||||
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Pension Benefits | Other Benefits | |||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||
2002 | 2001 | 2000 | 2002 | 2001 | 2000 | |||||||||||||
(millions) | ||||||||||||||||||
Service cost | $ | 52 | $ | 48 | $ | 44 | $ | 6 | $ | 6 | $ | 5 | ||||||
Interest cost | 84 | 82 | 77 | 24 | 24 | 21 | ||||||||||||
Expected return on plan assets | (196 | ) | (185 | ) | (172 | ) | (6 | ) | (7 | ) | (7 | ) | ||||||
Amortization of transition (asset) obligation | (23 | ) | (23 | ) | (23 | ) | 3 | 3 | 4 | |||||||||
Amortization of prior service cost | 1 | 5 | (7 | ) | - | - | - | |||||||||||
Amortization of (gains) losses | (32 | ) | (37 | ) | (31 | ) | 1 | - | - | |||||||||
Cost of special termination benefits | 4 | - | - | - | - | - | ||||||||||||
Net periodic benefit (income) cost at FPL Group | $ | (110 | ) | $ | (110 | ) | $ | (112 | ) | $ | 28 | $ | 26 | $ | 23 | |||
Net periodic benefit (income) cost at FPL | $ | (100 | ) | $ | (102 | ) | $ | (108 | ) | $ | 27 | $ | 25 | $ | 23 | |||
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Assumed health care cost trend rates can have a significant effect on the amounts reported for the health care plans. An increase or decrease of 1% in assumed health care cost trend rates would have a corresponding effect on the service and interest cost components and the accumulated obligation of other benefits of approximately $1 million and $8 million, respectively. | ||||||||||||||||||
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FPL Group | FPL | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2002 | 2001 | 2000 | 2002 | 2001 | 2000 | |||||||||||||||
(millions) | ||||||||||||||||||||
Federal: | ||||||||||||||||||||
Current | $ | (70 | ) | $ | 432 | $ | 77 | $ | 91 | $ | 543 | $ | 87 | |||||||
Deferred | 337 | (49 | ) | 239 | 287 | (190 | ) | 231 | ||||||||||||
ITC and other- net | (74 | ) | (49 | ) | (35 | ) | (19 | ) | (22 | ) | (22 | ) | ||||||||
Total federal | 193 | 334 | 281 | 359 | 331 | 296 | ||||||||||||||
State: | ||||||||||||||||||||
Current | (22 | ) | 55 | 6 | 12 | 90 | 13 | |||||||||||||
Deferred | 73 | (10 | ) | 49 | 54 | (28 | ) | 42 | ||||||||||||
Total state | 51 | 45 | 55 | 66 | 62 | 55 | ||||||||||||||
Income taxes charged to operations- FPL | 425 | 393 | 351 | |||||||||||||||||
Credited to other income (deductions)- FPL | (12 | ) | (10 | ) | (10 | ) | ||||||||||||||
Total income taxes | $ | 244 | $ | 379 | $ | 336 | $ | 413 | $ | 383 | $ | 341 | ||||||||
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FPL Group | FPL | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2002 | 2001 | 2000 | 2002 | 2001 | 2000 | |||||||||||||||
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 | 2.5 | 3.5 | 3.7 | 3.7 | 3.7 | ||||||||||||||
Amortization of ITC | (2.1 | ) | (1.9 | ) | (2.1 | ) | (1.7 | ) | (2.0 | ) | (2.3 | ) | ||||||||
Production tax credits- FPL Energy | (5.7 | ) | (2.3 | ) | (1.3 | ) | - | - | - | |||||||||||
Amortization of deferred regulatory credit- income taxes | (1.1 | ) | (1.0 | ) | (1.2 | ) | (0.9 | ) | (1.1 | ) | (1.3 | ) | ||||||||
Adjustments of prior years' tax matters | (3.2 | ) | (0.8 | ) | (2.7 | ) | - | (0.6 | ) | - | ||||||||||
Preferred stock dividends- FPL | 0.6 | 0.5 | 0.5 | - | - | - | ||||||||||||||
Other- net | (1.0 | ) | 0.7 | 0.6 | - | 0.6 | 0.3 | |||||||||||||
Effective income tax rate | 26.0 | % | 32.7 | % | 32.3 | % | 36.1 | % | 35.6 | % | 35.4 | % | ||||||||
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FPL Group | FPL | |||||||||||||
December 31, | December 31, | |||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||
(millions) | ||||||||||||||
Deferred tax liabilities: | ||||||||||||||
Property-related | $ | 1,768 | $ | 1,294 | $ | 1,654 | $ | 1,196 | ||||||
Investment-related | 518 | 466 | - | - | ||||||||||
Other | 491 | 545 | 399 | 431 | ||||||||||
Total deferred tax liabilities | 2,777 | 2,305 | 2,053 | 1,627 | ||||||||||
Deferred tax assets and valuation allowance: | ||||||||||||||
Asset writedowns | 250 | 109 | - | - | ||||||||||
Unamortized ITC and deferred regulatory credit- income taxes | 74 | 88 | 74 | 88 | ||||||||||
Storm and decommissioning reserves | 331 | 292 | 331 | 292 | ||||||||||
Post retirement benefits | 102 | 91 | 102 | 91 | ||||||||||
Other | 494 | 448 | 331 | 286 | ||||||||||
Valuation allowance | (21 | ) | (25 | ) | - | - | ||||||||
Net deferred tax assets | 1,230 | 1,003 | 838 | 757 | ||||||||||
Accumulated deferred income taxes | $ | 1,547 | $ | 1,302 | $ | 1,215 | $ | 870 | ||||||
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Years Ended December 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
(millions, except per share amounts) | ||||||||||
Net income | $ | 473 | $ | 781 | $ | 704 | ||||
Add back: Cumulative effect of adopting FAS 142, net of income taxes of $143 | 222 | - | - | |||||||
Net income excluding cumulative effect | 695 | 781 | 704 | |||||||
Add back: Goodwill amortization, net of income taxes of $4 each | - | 6 | 6 | |||||||
Adjusted net income | $ | 695 | $ | 787 | $ | 710 | ||||
Earnings per share (basic) | $ | 2.74 | $ | 4.63 | $ | 4.14 | ||||
Add back: Cumulative effect of adopting FAS 142 | 1.28 | - | - | |||||||
Earnings per share excluding cumulative effect | 4.02 | 4.63 | 4.14 | |||||||
Add back: Goodwill amortization | - | 0.03 | 0.04 | |||||||
Adjusted earnings per share (basic) | $ | 4.02 | $ | 4.66 | $ | 4.18 | ||||
Earnings per share (assuming dilution) | $ | 2.73 | $ | 4.62 | $ | 4.14 | ||||
Add back: Cumulative effect of adopting FAS 142 | 1.28 | - | - | |||||||
Earnings per share excluding cumulative effect | 4.01 | 4.62 | 4.14 | |||||||
Add back: Goodwill amortization | - | 0.04 | 0.03 | |||||||
Adjusted earnings per share (assuming dilution) | $ | 4.01 | $ | 4.66 | $ | 4.17 | ||||
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Accumulated | ||||||||||||||||||||||
| Net Unrealized |
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| ||||||||||||||||||
(millions) | ||||||||||||||||||||||
Balances, December 31, 1999 | $ | - | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Net income | $ | 704 | $ | 704 | ||||||||||||||||||
Net unrealized gain on securities (net of $1 tax expense) | - | 1 | 1 | 1 | ||||||||||||||||||
Balances, December 31, 2000 | - | - | - | $ | 705 | |||||||||||||||||
Net income | $ | 781 | $ | 781 | ||||||||||||||||||
Net unrealized loss on cash flow hedges: | ||||||||||||||||||||||
FAS 133 transition adjustment (net of $6 tax expense) | 10 | - | 10 | 10 | ||||||||||||||||||
Effective portion of net unrealized loss (net of $13 tax benefit) | (21 | ) | - | (21 | ) | (21 | ) | |||||||||||||||
Reclassification adjustment (net of $2 tax expense) | 3 | - | 3 | 3 | ||||||||||||||||||
Balances, December 31, 2001 | (8 | ) | - | (8 | ) | $ | 773 | |||||||||||||||
Net income | $ | 473 | $ | 473 | ||||||||||||||||||
Net unrealized gain on cash flow hedges: | ||||||||||||||||||||||
Effective portion of net unrealized gain (net of $21 tax | ||||||||||||||||||||||
expense)(a) | 33 | - | 33 | 33 | ||||||||||||||||||
Reclassification adjustment (net of $4 tax benefit) (b) | (6 | ) | - | (6 | ) | (6 | ) | |||||||||||||||
Minimum supplemental executive retirement plan | ||||||||||||||||||||||
liability adjustment (net of $3 tax benefit) | - | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||
Net unrealized gain on available for sale securities | ||||||||||||||||||||||
(net of $1 tax expense) | - | 1 | 1 | 1 | ||||||||||||||||||
Balances, December 31, 2002 | $ | 19 | $ | (3 | ) | $ | 16 | $ | 497 | |||||||||||||
_____________________ | ||||||||||||||||||||||
(a) | Approximately $22 million of FPL Group's accumulated other comprehensive income at December 31, 2002 will be reclassified into earnings within the next 12 months as the hedged fuel is consumed or as electricity is sold. | |||||||||||||||||||||
(b) | Includes gains and (losses) reclassified into earnings due to settlements of approximately $8 million and discontinuance of cash flow hedges of approximately $1 million. | |||||||||||||||||||||
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December 31, | ||||||||||||||||
2002 | 2001 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
(millions) | ||||||||||||||||
Long-term debt of FPL, including current maturities | $ | 2,434 | $ | 2,578 | (a) | $ | 2,579 | $ | 2,653 | (a) | ||||||
Long-term debt of FPL Group, including current maturities | $ | 5,895 | $ | 6,222 | (a) | $ | 4,890 | $ | 5,080 | (a) | ||||||
_____________________ | ||||||||||||||||
(a) | Based on quoted market prices for these or similar issues. |
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FPL Group | FPL | |||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||
2002 | 2001 | 2000 | 2002 | 2001 | 2000 | |||||||||||||
(millions) | ||||||||||||||||||
Realized gains | $ | 28 | $ | 30 | $ | 8 | $ | 27 | $ | 30 | $ | 8 | ||||||
Realized losses | $ | 16 | $ | 16 | $ | 15 | $ | 16 | $ | 16 | $ | 15 | ||||||
Proceeds from sale of securities | $ | 2,524 | $ | 1,778 | $ | 1,959 | $ | 2,435 | $ | 1,778 | $ | 1,959 |
FPL Group | FPL | |||||||||||
December 31, | December 31, | |||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||
(millions) | ||||||||||||
Unrealized gains | $ | 143 | $ | 208 | $ | 142 | $ | 208 | ||||
Unrealized losses | $ | 44 | $ | 9 | $ | 42 | $ | 9 |
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2002 | 2001 | |||||||||
(millions) | ||||||||||
Net income | $ | 106 | $ | 40 | ||||||
Total assets | $ | 1,568 | $ | 1,592 | ||||||
Total liabilities | $ | 1,078 | $ | 1,205 | ||||||
Partners' equity | $ | 490 | $ | 387 | ||||||
FPL Energy's share of underlying equity | ||||||||||
in the four entities | $ | 243 | $ | 196 | ||||||
Difference between investment carrying amount | ||||||||||
and underlying equity in net assets(a) | (10 | ) | (23 | ) | ||||||
FPL Energy's investment carrying amount for | ||||||||||
the four entities | $ | 233 | $ | 173 | ||||||
_____________________ | ||||||||||
(a) | The majority of the difference between the investment carrying amount and the underlying equity in net assets is being amortized over the remaining life of the investee's assets. | |||||||||
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Years Ended December 31, | |||||||||||
2002 | 2001 | 2000; | |||||||||
(millions, except per share amounts) | |||||||||||
Numerator (basic and assuming dilution): | |||||||||||
Net income | $ | 473 | $ | 781 | $ | 704 | |||||
Denominator: | |||||||||||
Weighted-average number of shares outstanding - basic | 172.9 | 168.7 | 169.9 | ||||||||
Performance share awards and shareholder value awards, options and equity units (a) | 0.4 | 0.2 | 0.3 | ||||||||
Weighted-average number of shares outstanding - assuming dilution | 173.3 | 168.9 | 170.2 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 2.74 | $ | 4.63 | $ | 4.14 | |||||
Assuming dilution | $ | 2.73 | $ | 4.62 | $ | 4.14 | |||||
_____________________ | |||||||||||
(a) | Performance share awards and shareholder value awards are included in diluted weighted-average number of shares outstanding based upon what would be issued if the end of the reporting period was the end of the term of the award. Options and equity units (known as Corporate Units) are included in diluted weighted-average number of shares outstanding by applying the treasury stock method. |
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| Weighted-Average | |||||||||||||||
Balances, December 31, 1999 | 413,400 | 646,615 | 1,100,000 | $ | 51.59 | |||||||||||
Granted | 28,350 | (a) | 465,614 | (b) | 564,950 | (c) | $ | 39.64 | ||||||||
Paid/released/exercised | (264,800 | ) | (1,038,375 | ) | (1,060,726 | ) | $ | 49.88 | ||||||||
Forfeited | (95,700 | ) | (54,854 | ) | (212,056 | ) | $ | 50.51 | ||||||||
Balances, December 31, 2000 | 81,250 | 19,000 | 392,168 | $ | 39.58 | |||||||||||
Granted | 263,825 | (a) | 617,420 | (b) | 2,009,200 | (c) | $ | 62.04 | ||||||||
Paid/released/exercised | (6,600 | ) | (41,492 | ) | (120,380 | ) | $ | 39.01 | ||||||||
Forfeited | (30,750 | ) | (49,849 | ) | (137,174 | ) | $ | 62.61 | ||||||||
Balances, December 31, 2001 | 307,725 | 545,079 | 2,143,814 | $ | 59.19 | |||||||||||
Granted | 127,325 | (a) | 206,605 | (b) | 1,669,625 | (c) | $ | 54.27 | ||||||||
Paid/released/exercised | (123,095 | ) | (246,246 | ) | (69,101 | ) | $ | 41.19 | ||||||||
Forfeited | (13,250 | ) | (86,949 | ) | (99,208 | ) | $ | 59.09 | ||||||||
Balances, December 31, 2002 | 298,705 | 418,489 | 3,645,130 | (d) | $ | 57.29 | ||||||||||
_____________________ | ||||||||||||||||
(a) | The weighted-average grant date fair value of restricted stock granted in 2002, 2001 and 2000 was $54.82, $60.19 and $45.55 per share, respectively. | |||||||||||||||
(b) | The weighted-average grant date fair value of performance share and shareholder value awards in 2002, 2001 and 2000 was $56.95, $70.25 and $41.25 per share, respectively. | |||||||||||||||
(c) | The exercise price of each option granted in 2002, 2001 and 2000 equaled the market price of common stock on the date of grant. Accordingly, the weighted-average grant date fair value of all options granted is $0. | |||||||||||||||
(d) | Of the options outstanding at December 31, 2002, 826,174 options were exercisable and had exercise prices ranging from $38.13 to $65.13 per share with a weighted-average exercise price of $55.58 per share and a weighted-average remaining contractual life of 8.0 years. The remainder of the outstanding options had exercise prices ranging from $52.64 to $65.13 per share with a weighted-average exercise price of $57.79 per share and a weighted-average remaining contractual life of 8.8 years. |
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December 31, 2002 | |||||||||||||||||||
Shares | Redemption | December 31, | |||||||||||||||||
2002 | 2001 | ||||||||||||||||||
(millions) | |||||||||||||||||||
Cumulative, $100 Par Value, without sinking fund requirements, | |||||||||||||||||||
authorized 15,822,500 shares: | |||||||||||||||||||
4 1/2% Series | 100,000 | $ | 101.00 | $ | 10 | $ | 10 | ||||||||||||
4 1/2% Series A | 50,000 | $ | 101.00 | 5 | 5 | ||||||||||||||
4 1/2% Series B | 50,000 | $ | 101.00 | 5 | 5 | ||||||||||||||
4 1/2% Series C | 62,500 | $ | 103.00 | 6 | 6 | ||||||||||||||
4.32% Series D | 50,000 | $ | 103.50 | 5 | 5 | ||||||||||||||
4.35% Series E | 50,000 | $ | 102.00 | 5 | 5 | ||||||||||||||
6.98% Series S | 750,000 | $ | 103.49 | (c) | 75 | 75 | |||||||||||||
7.05% Series T | 500,000 | $ | 103.52 | (c) | 50 | 50 | |||||||||||||
6.75% Series U | 650,000 | $ | 103.37 | (c) | 65 | 65 | |||||||||||||
Total preferred stock of FPL | 2,262,500 | $ | 226 | $ | 226 | ||||||||||||||
_____________________ | |||||||||||||||||||
(a) | FPL's charter also authorizes the issuance of 5 million shares of subordinated preferred stock, no par value. None of these shares is outstanding. There were no issuances or redemptions of preferred stock in 2002, 2001 or 2000. | ||||||||||||||||||
(b) | FPL's preferred shares are entitled to dividends at the stated rates in preference to FPL's common stockholder, FPL Group. In the event of voluntary liquidation, the outstanding preferred shares have preference over common shares until an amount equal to the current redemption price of all shares has been paid. In the event of involuntary liquidation, outstanding preferred shares shall have preference over common shares until the full par value of all shares and all unpaid accumulated dividends thereon have been paid. | ||||||||||||||||||
(c) | Shares outstanding from Series S, Series T and Series U are redeemable on or after March 1, June 1 and August 1, 2003, respectively. |
| ||||||
| ||||||
December 31, | ||||||
2002 | 2001 | |||||
FPL: | (millions) | |||||
First mortgage bonds: | ||||||
Maturing through 2005 - 6 5/8% to 6 7/8% | $ | 500 | $ | 725 | ||
Maturing 2008 through 2016 - 4.85% to 7.3% | 825 | 650 | ||||
Maturing 2023 through 2033 - 5.85% to 7 3/4% | 417 | 516 | ||||
Medium-term notes - maturing 2003 - 5.79% | 70 | 70 | ||||
Pollution control and industrial development series - | ||||||
maturing 2023 through 2027 - 6.7% to 7.15% | 24 | 24 | ||||
Pollution control, solid waste disposal and industrial development revenue bonds - | ||||||
maturing 2020 through 2029 - variable, 1.6% and 2.8% average | ||||||
annual interest rates, respectively | 609 | 609 | ||||
Unamortized discount | (11 | ) | (15 | ) | ||
Total long-term debt of FPL | 2,434 | 2,579 | ||||
Less current maturities | 70 | - | ||||
Long-term debt of FPL, excluding current maturities | 2,364 | 2,579 | ||||
FPL Group Capital: | ||||||
Debentures- maturing 2004 through 2009- 6 1/8% to 7 5/8% | 1,900 | 1,900 | ||||
Debentures, related to FPL Group's equity units- maturing 2007 and 2008- 4.75% | ||||||
and 5%, respectively | 1,081 | - | ||||
Other long-term debt- maturing 2013- 7.35% | 5 | 5 | ||||
Term loan facility- maturing 2004 - variable, 2.04% average annual interest rate | 100 | - | ||||
Unamortized discount | (7 | ) | (8 | ) | ||
Total long-term debt of FPL Group Capital | 3,079 | 1,897 | ||||
FPL Energy: | ||||||
Senior secured bonds- maturing 2019- 7.52% | 382 | 414 | ||||
Less current maturities | 35 | 32 | ||||
Long-term debt of FPL Energy, excluding current maturities | 347 | 382 | ||||
Total long-term debt | $ | 5,790 | $ | 4,858 | ||
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(millions) | |||||||||||||||||||||
FPL: | |||||||||||||||||||||
Generation | $ | 595 | $ | 605 | $ | 425 | $ | 200 | $ | 165 | $ | 1,990 | |||||||||
Transmission | 150 | 185 | 140 | 135 | 140 | 750 | |||||||||||||||
Distribution | 510 | 520 | 510 | 515 | 525 | 2,580 | |||||||||||||||
General and other | 110 | 135 | 115 | 125 | 120 | 605 | |||||||||||||||
Total | $ | 1,365 | $ | 1,445 | $ | 1,190 | $ | 975 | $ | 950 | $ | 5,925 | |||||||||
FPL Energy: | |||||||||||||||||||||
Wind(a) | $ | 1,165 | $ | - | $ | - | $ | - | $ | - | $ | 1,165 | |||||||||
Gas | 405 | 65 | 10 | 70 | 15 | 565 | |||||||||||||||
Nuclear | 20 | 20 | 25 | 15 | 15 | 95 | |||||||||||||||
Total | $ | 1,590 | $ | 85 | $ | 35 | $ | 85 | $ | 30 | $ | 1,825 | |||||||||
Corporate and Other | $ | 20 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 60 | |||||||||
_________________________ | |||||||||||||||||||||
(a) | FPL Energy has projected capital expenditures for 1,200 mw of wind through 2003 when the production tax credits are scheduled to expire. |
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2003 | 2004 | 2005 | 2006 | 2007 | Thereafter | |||||||||||||
FPL: | (millions) | |||||||||||||||||
Capacity payments: | ||||||||||||||||||
JEA and Southern Companies | $ | 190 | $ | 190 | $ | 190 | $ | 200 | $ | 200 | $ | 1,300 | ||||||
Qualifying facilities | $ | 350 | $ | 360 | $ | 350 | $ | 300 | $ | 300 | $ | 4,700 | ||||||
Other electricity suppliers | $ | 91 | $ | 89 | $ | 50 | $ | 41 | $ | 4 | $ | - | ||||||
Minimum payments, at projected prices: | ||||||||||||||||||
Southern Companies- energy | $ | 60 | $ | 50 | $ | 60 | $ | 60 | $ | 58 | $ | 200 | ||||||
Natural gas, including transportation | $ | 1,161 | $ | 441 | $ | 345 | $ | 201 | $ | 201 | $ | 1,870 | ||||||
Coal | $ | 55 | $ | 27 | $ | 26 | $ | 12 | $ | 8 | $ | - | ||||||
Oil | $ | 357 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
FPL Energy: | ||||||||||||||||||
Natural gas transportation and storage | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 160 | ||||||
Nuclear fuel | $ | 10 | $ | 5 | $ | - | $ | - | $ | - | $ | - |
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2002 Charges | 2001 Charges | 2000 Charges | |||||||||||||||||||||||
| Energy/ |
| Energy/ |
| Energy/ | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||||
FPL: | |||||||||||||||||||||||||
JEA and Southern Companies | $ | 185 | (a) | $ | 161 | (b) | $ | 197 | (a) | $ | 169 | (b) | $ | 198 | (a) | $ | 153 | (b) | |||||||
Qualifying facilities | $ | 315 | (c) | $ | 122 | (b) | $ | 314 | (c) | $ | 124 | (b) | $ | 318 | (c) | $ | 135 | (b) | |||||||
Other electricity suppliers | $ | 81 | (c) | $ | 20 | (b) | $ | 25 | (c) | $ | 6 | (b) | $ | - | $ | - | |||||||||
Natural gas, including transportation | $ | - | $ | 858 | (b) | $ | - | $ | 763 | (b) | $ | - | $ | 567 | (b) | ||||||||||
Coal | $ | - | $ | 59 | (b) | $ | - | $ | 49 | (b) | $ | - | $ | 50 | (b) | ||||||||||
Oil | $ | - | $ | 401 | (b) | $ | - | $ | 294 | (b) | $ | - | $ | 354 | (b) | ||||||||||
FPL Energy: | |||||||||||||||||||||||||
Natural gas, including transportation and storage | $ | - | $ | 18 | $ | - | $ | 17 | $ | - | 17 | ||||||||||||||
Nuclear fuel | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
_____________________ | ||
(a) | Recoverable through base rates and the capacity clause. | |
(b) | Recoverable through the fuel clause. | |
(c) | Recoverable through the capacity clause. |
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(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 7,378 | $ | 829 | $ | 104 | $ | 8,311 | $ | 7,477 | $ | 720 | $ | 129 | $ | 8,326 | $ | 6,361 | $ | 612 | $ | 89 | $ | 7,062 | ||||||||||||||||||||||||||||||||||
Operating expenses | $ | 6,052 | $ | 842 | $ | 189 | $ | 7,083 | $ | 6,200 | $ | 609 | $ | 121 | $ | 6,930 | $ | 5,210 | $ | 514 | $ | 98 | $ | 5,822 | ||||||||||||||||||||||||||||||||||
Interest charges | $ | 166 | $ | 86 | $ | 59 | $ | 311 | $ | 187 | $ | 74 | $ | 63 | $ | 324 | $ | 176 | $ | 67 | $ | 35 | $ | 278 | ||||||||||||||||||||||||||||||||||
Depreciation and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
amortization | $ | 831 | $ | 107 | $ | 14 | $ | 952 | $ | 898 | $ | 77 | $ | 8 | $ | 983 | $ | 975 | $ | 50 | $ | 7 | $ | 1,032 | ||||||||||||||||||||||||||||||||||
Equity in earnings of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
equity method | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investees | $ | - | $ | 76 | $ | - | $ | 76 | $ | - | $ | 81 | $ | - | $ | 81 | $ | - | $ | 45 | $ | - | $ | 45 | ||||||||||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(benefit) | $ | 413 | $ | (54 | ) | $ | (115 | ) | (d) | $ | 244 | $ | 383 | $ | 25 | $ | (29 | ) | $ | 379 | $ | 341 | $ | 36 | $ | (41 | ) | $ | 336 | |||||||||||||||||||||||||||||
Income (loss) before | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
cumulative effect of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
change in accounting | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
principle(b) (c) | $ | 717 | $ | 53 | $ | (75 | ) | $ | 695 | $ | 679 | $ | 113 | $ | (11 | ) | $ | 781 | $ | 607 | $ | 82 | $ | 15 | $ | 704 | ||||||||||||||||||||||||||||||||
Cumulative effect of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
adopting FAS 142, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
net of income taxes | $ | - | $ | (222 | ) | (e) | $ | - | $ | (222 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||
Net income (loss)(b) (c) | $ | 717 | $ | (169 | ) | $ | (75 | ) | $ | 473 | $ | 679 | $ | 113 | $ | (11 | ) | $ | 781 | $ | 607 | $ | 82 | $ | 15 | $ | 704 | |||||||||||||||||||||||||||||||
Significant noncash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investing and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
financing activities | $ | 74 | $ | - | $ | 111 | $ | 185 | $ | 70 | $ | - | $ | - | $ | 70 | $ | (57 | ) | $ | - | $ | 100 | $ | 43 | |||||||||||||||||||||||||||||||||
Capital expenditures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and investments | $ | 1,256 | $ | 2,103 | $ | (99 | ) | $ | 3,260 | $ | 1,154 | $ | 1,977 | $ | 131 | $ | 3,262 | $ | 1,299 | $ | 507 | $ | 90 | $ | 1,896 | |||||||||||||||||||||||||||||||||
Total assets | $ | 12,637 | $ | 6,358 | $ | 795 | $ | 19,790 | $ | 11,924 | $ | 4,957 | $ | 582 | $ | 17,463 | $ | 12,020 | $ | 2,679 | $ | 601 | $ | 15,300 | ||||||||||||||||||||||||||||||||||
Investment in equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
method investees | $ | - | $ | 310 | $ | - | $ | 310 | $ | - | $ | 276 | $ | - | $ | 276 | $ | - | $ | 196 | $ | - | $ | 196 | ||||||||||||||||||||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | FPL Energy's interest charges are based on an assumed capital structure of 50% debt for operating projects and 100% debt for projects under construction. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) | Includes merger-related expense recognized in 2001 and 2000 totaling $19 million after tax and $41 million after tax, respectively, of which $16 million and $38 million was recognized by FPL, none and $1 million by FPL Energy and $3 million and $2 million by Corporate and Other (see Note 9). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(c) | Includes, in 2002, restructuring and other charges of $73 million after tax at FPL Energy, restructuring and impairment charges of $64 million after tax at FPL FiberNet and a reserve for leveraged leases of $30 million after tax at Corporate and Other. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(d) | Includes favorable settlement of litigation with the IRS for which a net tax benefit of $30 million was recognized. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(e) | See Note 7. |
19. Summarized Financial Information of FPL Group Capital |
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Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FPL |
| FPL Group |
| FPL |
| FPL Group |
| FPL |
| FPL Group | |||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | - | $ | 932 | $ | 7,379 | $ | 8,311 | $ | - | $ | 850 | $ | 7,476 | $ | 8,326 | $ | - | $ | 701 | $ | 6,361 | $ | 7,062 | ||||||||||||||||||||||||||||||||||
Operating expenses | (5 | ) | (1,031 | ) | (6,047 | ) | (7,083 | ) | - | (730 | ) | (6,200 | ) | (6,930 | ) | - | (612 | ) | (5,210 | ) | (5,822 | ) | ||||||||||||||||||||||||||||||||||||
Interest charges | (28 | ) | (144 | ) | (139 | ) | (311 | ) | (29 | ) | (136 | ) | (159 | ) | (324 | ) | (31 | ) | (102 | ) | (145 | ) | (278 | ) | ||||||||||||||||||||||||||||||||||
Other income (de- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ductions)- net | 488 | 84 | (550 | ) | 22 | 788 | 147 | (847 | ) | 88 | 726 | 135 | (783 | ) | 78 | |||||||||||||||||||||||||||||||||||||||||||
Income before | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
income taxes | 455 | (159) | 643 | 939 | 759 | 131 | 270 | 1,160 | 695 | 122 | 223 | 1,040 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(benefit) | (18 | ) | (151 | ) | 413 | 244 | (22 | ) | 18 | 383 | 379 | (9 | ) | 4 | 341 | 336 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) before | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
cumulative effect of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
change in accounting | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
principle | 473 | (8 | ) | 230 | 695 | 781 | 113 | (113 | ) | 781 | 704 | 118 | (118 | ) | 704 | |||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
adopting FAS 142, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
net of income taxes | - | (222 | ) | - | (222 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 473 | $ | (230 | ) | $ | 230 | $ | 473 | $ | 781 | $ | 113 | $ | (113 | ) | $ | 781 | $ | 704 | $ | 118 | $ | (118 | ) | $ | 704 | |||||||||||||||||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | Represents FPL and consolidating adjustments. |
| ||||||||||||||||||||||||||||||||||||||||
December 31, 2002 | December 31, 2001 | |||||||||||||||||||||||||||||||||||||||
|
| FPL |
| FPL Group |
| FPL |
| FPL Group | ||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||||||||||||||||||||||||||
Electric utility plant in service and other property | $ | - | $ | 5,745 | $ | 20,760 | $ | 26,505 | $ | - | $ | 3,606 | $ | 19,782 | $ | 23,388 | ||||||||||||||||||||||||
Less accumulated depreciation and amortization | - | (360 | ) | (11,841 | ) | (12,201 | ) | - | (246 | ) | (11,480 | ) | (11,726 | ) | ||||||||||||||||||||||||||
Total property, plant and equipment- net | - | 5,385 | 8,919 | 14,304 | - | 3,360 | 8,302 | 11,662 | ||||||||||||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 5 | 261 | - | 266 | - | 81 | 1 | 82 | ||||||||||||||||||||||||||||||||
Receivables | 460 | 269 | 136 | 865 | 7 | 442 | 331 | 780 | ||||||||||||||||||||||||||||||||
Other | - | 240 | 537 | 777 | - | 114 | 626 | 740 | ||||||||||||||||||||||||||||||||
Total current assets | 465 | 770 | 673 | 1,908 | 7 | 637 | 958 | 1,602 | ||||||||||||||||||||||||||||||||
OTHER ASSETS | ||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 6,221 | - | (6,221 | ) | - | 6,485 | - | (6,485 | ) | - | ||||||||||||||||||||||||||||||
Other | 103 | 1,284 | 2,191 | 3,578 | 108 | 2,066 | 2,025 | 4,199 | ||||||||||||||||||||||||||||||||
Total other assets | 6,324 | 1,284 | (4,030 | ) | 3,578 | 6,593 | 2,066 | (4,460 | ) | 4,199 | ||||||||||||||||||||||||||||||
TOTAL ASSETS | $ | 6,789 | $ | 7,439 | $ | 5,562 | $ | 19,790 | $ | 6,600 | $ | 6,063 | $ | 4,800 | $ | 17,463 | ||||||||||||||||||||||||
CAPITALIZATION | ||||||||||||||||||||||||||||||||||||||||
Common shareholders' equity | $ | 6,390 | $ | 839 | $ | (839 | ) | $ | 6,390 | $ | 6,015 | $ | 1,040 | $ | (1,040 | ) | $ | 6,015 | ||||||||||||||||||||||
Preferred stock of FPL without sinking fund | ||||||||||||||||||||||||||||||||||||||||
requirements | - | - | 226 | 226 | - | - | 226 | 226 | ||||||||||||||||||||||||||||||||
Long-term debt | - | 3,426 | 2,364 | 5,790 | - | 2,279 | 2,579 | 4,858 | ||||||||||||||||||||||||||||||||
Total capitalization | 6,390 | 4,265 | 1,751 | 12,406 | 6,015 | 3,319 | 1,765 | 11,099 | ||||||||||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||||||||||||||||||
Accounts payable and short-term debt | - | 1,563 | 1,092 | 2,655 | - | 1,815 | 640 | 2,455 | ||||||||||||||||||||||||||||||||
Other | 17 | 812 | 427 | 1,256 | 201 | 284 | 699 | 1,184 | ||||||||||||||||||||||||||||||||
Total current liabilities | 17 | 2,375 | 1,519 | 3,911 | 201 | 2,099 | 1,339 | 3,639 | ||||||||||||||||||||||||||||||||
OTHER LIABILITIES AND DEFERRED CREDITS | ||||||||||||||||||||||||||||||||||||||||
Accumulated deferred income taxes and | ||||||||||||||||||||||||||||||||||||||||
unamortized tax credits | (5 | ) | 412 | 1,333 | 1,740 | - | 513 | 1,017 | 1,530 | |||||||||||||||||||||||||||||||
Other | 387 | 387 | 959 | 1,733 | 384 | 132 | 679 | 1,195 | ||||||||||||||||||||||||||||||||
Total other liabilities and deferred credits | 382 | 799 | 2,292 | 3,473 | 384 | 645 | 1,696 | 2,725 | ||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||||||||||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ | 6,789 | $ | 7,439 | $ | 5,562 | $ | 19,790 | $ | 6,600 | $ | 6,063 | $ | 4,800 | $ | 17,463 | ||||||||||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||||||||||||
(a) | Represents FPL and consolidating adjustments. |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| FPL |
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| FPL |
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| FPL | |||||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET CASH PROVIDED BY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(USED IN) OPERATING | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACTIVITIES | $ | 426 | $ | 1,227 | $ | 685 | $ | 2,338 | $ | 769 | $ | 15 | $ | 1,158 | $ | 1,942 | $ | 959 | $ | 159 | $ | (142 | ) | $ | 976 | |||||||||||||||||||||||||||||||||||
CASH FLOWS FROM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and independent power | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investments | - | (2,004 | ) | (1,256 | ) | (3,260 | ) | - | (2,105 | ) | (1,154 | ) | (3,259 | ) | - | (595 | ) | (1,299 | ) | (1,894 | ) | |||||||||||||||||||||||||||||||||||||||
Capital contributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to FPL Group Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and FPL | (350 | ) | - | 350 | - | (400 | ) | - | 400 | - | (418 | ) | - | 418 | - | |||||||||||||||||||||||||||||||||||||||||||||
Other - net | 3 | 88 | (98 | ) | (7 | ) | (4 | ) | 69 | (75 | ) | (10 | ) | 3 | 54 | (106 | ) | (49 | ) | |||||||||||||||||||||||||||||||||||||||||
Net cash used in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investing activities | (347 | ) | (1,916 | ) | (1,004 | ) | (3,267 | ) | (404 | ) | (2,036 | ) | (829 | ) | (3,269 | ) | (415 | ) | (541 | ) | (987 | ) | (1,943 | ) | ||||||||||||||||||||||||||||||||||||
CASH FLOWS FROM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of long- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
term debt | - | 1,177 | 593 | 1,770 | - | 920 | - | 920 | - | - | 947 | 947 | ||||||||||||||||||||||||||||||||||||||||||||||||
Retirements of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
long-term debt | - | (32 | ) | (765 | ) | (797 | ) | - | (21 | ) | (66 | ) | (87 | ) | - | - | (515 | ) | (515 | ) | ||||||||||||||||||||||||||||||||||||||||
Increase (decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in short-term debt | - | (276 | ) | 490 | 214 | - | 1,152 | (328 | ) | 824 | - | 353 | 466 | 819 | ||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from FPL Group | - | - | - | - | - | - | - | - | - | 18 | (18 | ) | - | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 378 | - | - | 378 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
common stock | - | - | - | - | - | - | - | - | (150 | ) | - | - | (150 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends | (400 | ) | - | - | (400 | ) | (377 | ) | - | - | (377 | ) | (366 | ) | (314 | ) | 314 | (366 | ) | |||||||||||||||||||||||||||||||||||||||||
Other - net | (52 | ) | - | - | (52 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(used in) financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
activities | (74 | ) | 869 | 318 | 1,113 | (377 | ) | 2,051 | (394 | ) | 1,280 | (516 | ) | 57 | 1,194 | 735 | ||||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
cash and cash equivalents | 5 | 180 | (1 | ) | 184 | (12 | ) | 30 | (65 | ) | (47 | ) | 28 | (325 | ) | 65 | (232 | ) | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
at beginning of year | - | 81 | 1 | 82 | 12 | 51 | 66 | 129 | (16 | ) | 376 | 1 | 361 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
at end of year | $ | 5 | $ | 261 | $ | - | $ | 266 | $ | - | $ | 81 | $ | 1 | $ | 82 | $ | 12 | $ | 51 | $ | 66 | $ | 129 | ||||||||||||||||||||||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | Represents FPL and consolidating adjustments. |
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March 31(a) | June 30(a) | September 30(a) | December 31(a) | ||||||||||||||||||||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||
FPL GROUP: | |||||||||||||||||||||||||||||||||||||
2002 | |||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 1,771 | $ | 2,128 | $ | 2,353 | $ | 2,059 | |||||||||||||||||||||||||||||
Operating income | $ | 256 | $ | 409 | $ | 315 | (c) | $ | 248 | ||||||||||||||||||||||||||||
Income before cumulative effect of a | |||||||||||||||||||||||||||||||||||||
change in accounting principle | $ | 166 | (b) | $ | 250 | $ | 150 | (c) | $ | 129 | |||||||||||||||||||||||||||
Cumulative effect of adopting FAS 142 | $ | (222 | ) | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||||
Net income (loss) | $ | (56 | ) | (b) | $ | 250 | $ | 150 | (c) | $ | 129 | ||||||||||||||||||||||||||
Earnings per share before cumulative | |||||||||||||||||||||||||||||||||||||
effect of adopting FAS 142 (basic | |||||||||||||||||||||||||||||||||||||
and assuming dilution)(d) | $ | 0.98 | (b) | $ | 1.46 | $ | 0.85 | (c) | $ | 0.73 | |||||||||||||||||||||||||||
Cumulative effect of adopting FAS 142(d) | $ | (1.31 | ) | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||||
Earnings (loss) per share (basic and | |||||||||||||||||||||||||||||||||||||
assuming dilution)(d) | $ | (0.33 | ) | (b) | $ | 1.46 | $ | 0.85 | (c) | $ | 0.73 | ||||||||||||||||||||||||||
Dividends per share | $ | 0.58 | $ | 0.58 | $ | 0.58 | $ | 0.58 | |||||||||||||||||||||||||||||
High-low common stock sales prices | $ | 60.10 | - | 51.13 | $ | 65.31 | - | 56.30 | $ | 60.08 | - | 45.00 | $ | 61.40 | - | 48.35 | |||||||||||||||||||||
2001 | |||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 1,903 | $ | 2,129 | $ | 2,490 | $ | 1,804 | |||||||||||||||||||||||||||||
Operating income | $ | 240 | (e) | $ | 380 | $ | 543 | $ | 233 | ||||||||||||||||||||||||||||
Net income | $ | 110 | (e) | $ | 219 | $ | 334 | $ | 118 | ||||||||||||||||||||||||||||
Earnings per share (basic and | �� | ||||||||||||||||||||||||||||||||||||
assuming dilution(d) | $ | 0.65 | (e) | $ | 1.30 | $ | 1.98 | $ | 0.70 | ||||||||||||||||||||||||||||
Dividends per share | $ | 0.56 | $ | 0.56 | $ | 0.56 | $ | 0.56 | |||||||||||||||||||||||||||||
High-low common stock sales prices | $ | 71.63 | - | 54.81 | $ | 63.15 | - | 54.55 | $ | 60.50 | - | 51.21 | $ | 57.28 | - | 52.16 | |||||||||||||||||||||
FPL: | |||||||||||||||||||||||||||||||||||||
2002 | |||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 1,538 | $ | 1,921 | $ | 2,144 | $ | 1,775 | |||||||||||||||||||||||||||||
Operating income | $ | 164 | $ | 252 | $ | 329 | $ | 157 | |||||||||||||||||||||||||||||
Net income | $ | 122 | $ | 209 | $ | 288 | $ | 113 | |||||||||||||||||||||||||||||
Net income available to FPL Group | $ | 118 | $ | 205 | $ | 284 | $ | 110 | |||||||||||||||||||||||||||||
2001 | |||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 1,647 | $ | 1,935 | $ | 2,272 | $ | 1,623 | |||||||||||||||||||||||||||||
Operating income | $ | 156 | (e) | $ | 233 | $ | 338 | $ | 157 | ||||||||||||||||||||||||||||
Net income | $ | 101 | (e) | $ | 186 | $ | 294 | $ | 113 | ||||||||||||||||||||||||||||
Net income available to FPL Group | $ | 97 | (e) | $ | 182 | $ | 290 | $ | 110 | ||||||||||||||||||||||||||||
_____________________ | |||||||||||||||||||||||||||||||||||||
(a) | In the opinion of FPL Group and FPL, all adjustments, which consist of normal recurring accruals necessary to present a fair statement of the amounts shown for such periods, have been made. Results of operations for an interim period may not give a true indication of results for the year. | ||||||||||||||||||||||||||||||||||||
(b) | Includes a gain from an income tax settlement. | ||||||||||||||||||||||||||||||||||||
(c) | Includes restructuring, impairment and/or other charges. | ||||||||||||||||||||||||||||||||||||
(d) | The sum of the quarterly amounts may not equal the total for the year due to rounding and changes in weighted-average number of common shares outstanding. | ||||||||||||||||||||||||||||||||||||
(e) | Includes merger-related expenses. |
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | |
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_____________________ | |
(a) | Directors are elected annually and serve until their resignation, removal or until their respective successors are elected. Each director's business experience during the past five years is noted either here or in the Executive Officers table in Item 1. Business - Executive Officers of the Registrants. |
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Summary Compensation Table | |||||||||||||||||||||||||
Annual Compensation | Long-Term Compensation | ||||||||||||||||||||||||
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| Other |
| Securities |
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| |||||||||||||||||
Lewis Hay III(d) | 2002 | $ | 781,176 | $ | 991,312 | $ | 17,945 | $ | 525,696 | 66,578 | $ | 805,584 | $ | 19,615 | |||||||||||
Chairman of the Board and Chief | 2001 | 254,264 | 522,806 | 6,435 | 1,116,930 | 180,500 | - | 7,059 | |||||||||||||||||
Executive Officer of FPL and | 2000 | 298,705 | 231,675 | 9,957 | - | - | 4,859,143 | 11,059 | |||||||||||||||||
Chairman of the Board, President | |||||||||||||||||||||||||
and Chief Executive Officer of | |||||||||||||||||||||||||
FPL Group | |||||||||||||||||||||||||
Paul J. Evanson | 2002 | 724,200 | 663,700 | 14,986 | 493,500 | 75,000 | 1,937,523 | 11,643 | |||||||||||||||||
President of FPL | 2001 | 693,000 | 1,652,207 | 11,113 | 1,157,250 | 150,000 | - | 11,174 | |||||||||||||||||
2000 | 660,000 | 660,700 | 11,105 | - | - | 10,395,654 | 8,544 | ||||||||||||||||||
Moray P. Dewhurst(e) | 2002 | 401,240 | 377,983 | 14,730 | 233,643 | 44,385 | 362,229 | 8,624 | |||||||||||||||||
Senior Vice President, Finance | 2001 | 163,443 | 366,780 | 22,672 | 999,068 | 90,250 | - | 2,306 | |||||||||||||||||
and Chief Financial Officer of | 2000 | - | - | - | - | - | - | - | |||||||||||||||||
FPL and Vice President, Finance | |||||||||||||||||||||||||
and Chief Financial Officer of | |||||||||||||||||||||||||
FPL Group | |||||||||||||||||||||||||
Dennis P. Coyle | 2002 | 430,179 | 271,015 | 13,952 | 350,464 | 44,385 | 888,765 | 8,922 | |||||||||||||||||
General Counsel and | 2001 | 418,489 | 772,302 | 11,268 | 835,535 | 90,250 | - | 8,372 | |||||||||||||||||
Secretary of FPL | 2000 | 410,640 | 310,045 | 8,487 | - | - | 5,892,417 | 7,900 | |||||||||||||||||
and FPL Group | |||||||||||||||||||||||||
Lawrence J. Kelleher | 2002 | 332,355 | 240,922 | 13,225 | 584,107 | 44,385 | 702,635 | 10,724 | |||||||||||||||||
Senior Vice President, | 2001 | 323,366 | 600,855 | 10,169 | 1,392,558 | 90,250 | - | 10,511 | |||||||||||||||||
Human Resources and | 2000 | 316,680 | 240,723 | 11,952 | - | - | 5,757,767 | 7,616 | |||||||||||||||||
Corporate Services of | |||||||||||||||||||||||||
FPL and Vice President, | |||||||||||||||||||||||||
Human Resources of | |||||||||||||||||||||||||
FPL Group | |||||||||||||||||||||||||
_____________________ | |||||||||||||||||||||||||
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(b) | For 2002, payouts of vested shareholder value awards were made in cash and payouts of vested performance share awards were made in a combination of cash (for payment of income taxes) and shares of FPL Group common stock, valued at the closing price on the date payouts were approved. Messrs. Evanson and Dewhurst deferred their performance share award payouts under FPL Group's Deferred Compensation Plan. For 2001, payouts were based on a performance period of one fiscal year and, in accordance with SEC rules, are reported for 2001 under the "Bonus" column of this table. For 2000, upon a change of control as defined in the FPL Group, Inc. Long Term Incentive Plan 1994, on December 15, 2000, all performance criteria of performance-based awards, restricted stock and other stock-based awards held by executive officers were deemed fully achieved and all such awards were deemed fully earned and vested. The performance criteria of performance-based awards wer e waived and the awards were paid out using an assumption of maximum performance for the named officers. | ||||||||||||||||||||||||
(c) | For 2002, represents employer matching contributions to thrift plans of $9,500 for Mr. Evanson and $8,433 for each of the other named officers, and employer contributions for life insurance as follows: Mr. Hay $11,182, Mr. Evanson $2,143, Mr. Dewhurst $191, Mr. Coyle $489 and Mr. Kelleher $2,291. | ||||||||||||||||||||||||
(d) | Mr. Hay joined FPL Group in July 1999 as vice president, finance and chief financial officer of FPL Group and senior vice president, finance and chief financial officer of FPL. He served as president of FPL Energy from March 2000 to December 2001 and was elected president and chief executive officer of FPL Group on June 11, 2001. He was elected chairman of the board of FPL Group and FPL and chief executive officer of FPL on January 1, 2002. | ||||||||||||||||||||||||
(e) | Mr. Dewhurst was appointed vice president, finance and chief financial officer of FPL Group and senior vice president, finance and chief financial officer of FPL in July 2001. | ||||||||||||||||||||||||
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Performance Share Awards | ||||||||||||||||
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| Estimated Future Payouts Under | |||||||||||||
Target # | Maximum # | |||||||||||||||
Lewis Hay III | 18,705 | 1/1/02 | - | 12/31/05 | 18,705 | 29,928 | ||||||||||
Paul J. Evanson | 9,796 | 1/1/02 | - | 12/31/05 | 9,796 | 15,674 | ||||||||||
Moray P. Dewhurst | 5,241 | 1/1/02 | - | 12/31/05 | 5,241 | 8,386 | ||||||||||
Dennis P. Coyle | 5,619 | 1/1/02 | - | 12/31/05 | 5,619 | 8,990 | ||||||||||
Lawrence J. Kelleher | 4,341 | 1/1/02 | - | 12/31/05 | 4,341 | 6,946 | ||||||||||
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Shareholder Value Awards | |||||||||||||||||||||
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| Estimated Future Payouts Under | ||||||||||||||||||
Target # | Maximum # | ||||||||||||||||||||
Lewis Hay III | 12,754 | 1/1/02 | - | 12/31/04 | 12,754 | 20,406 | |||||||||||||||
Paul J. Evanson | 8,397 | 1/1/02 | - | 12/31/04 | 8,397 | 13,435 | |||||||||||||||
Moray P. Dewhurst | 3,930 | 1/1/02 | - | 12/31/04 | 3,930 | 6,288 | |||||||||||||||
Dennis P. Coyle | 4,214 | 1/1/02 | - | 12/31/04 | 4,214 | 6,742 | |||||||||||||||
Lawrence J. Kelleher | 3,256 | 1/1/02 | - | 12/31/04 | 3,256 | 5,210 |
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Option Grants in Last Fiscal Year | ||||||||||||||||||||||
Individual Grants | ||||||||||||||||||||||
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Lewis Hay III | 75,000 | 4.5% | $ | 52.64 | 2/11/2012 | $ | 670,500 | |||||||||||||||
Paul J. Evanson | 75,000 | 4.5% | 52.64 | 2/11/2012 | 670,500 | |||||||||||||||||
Moray P. Dewhurst | 50,000 | 3.0% | 52.64 | 2/11/2012 | 447,000 | |||||||||||||||||
Dennis P. Coyle | 50,000 | 3.0% | 52.64 | 2/11/2012 | 447,000 | |||||||||||||||||
Lawrence J. Kelleher | 50,000 | 3.0% | 52.64 | 2/11/2012 | 447,000 | |||||||||||||||||
_____________________ | ||||||||||||||||||||||
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(b) | The hypothetical values shown were calculated using the Black-Scholes option pricing model, based on the following assumptions. For all options, the volatility rate is equal to 19.16% and the dividend yield (representing the current per share annualized dividends divided by the annualized fair market value of the common stock) is equal to 4.05%. The risk-free interest rate is equal to 4.93%, based on the interest rate on an U.S. Treasury zero-coupon bond on the date of grant with a maturity corresponding to the estimated time until exercise of seven years. The values do not take into account risk factors such as non-transferability or risk of forfeiture. | |||||||||||||||||||||
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Aggregated Option Exercises in Last Fiscal Year | |||||||||||||||||||||||
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| Number of Securities | Value of Unexercised | ||||||||||||||||||||
Name | Exercisable | Unexercisable | Exercisable | Unexercisable | |||||||||||||||||||
Lewis Hay III | 0 | 0 | 91,667 | 183,333 | $ | 79,668 | $ | 721,082 | |||||||||||||||
Paul J. Evanson | 0 | 0 | 75,000 | 150,000 | 0 | 561,750 | |||||||||||||||||
Moray P. Dewhurst | 0 | 0 | 25,000 | 125,000 | 119,500 | 733,000 | |||||||||||||||||
Dennis P. Coyle | 0 | 0 | 50,000 | 100,000 | 0 | 374,500 | |||||||||||||||||
Lawrence J. Kelleher | 0 | 0 | 50,000 | 100,000 | 0 | 374,500 |
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10 | 20 | 30 | 40 | 50 | ||||||||||||||||||
$ | 300,000 | $ | 58,470 | $ | 116,927 | $ | 145,397 | $ | 153,721 | $ | 156,109 | |||||||||||
400,000 | 78,470 | 156,927 | 195,397 | 206,221 | 208,609 | |||||||||||||||||
500,000 | 98,470 | 196,927 | 245,397 | 258,721 | 261,109 | |||||||||||||||||
600,000 | 118,470 | 236,927 | 295,397 | 311,221 | 313,609 | |||||||||||||||||
700,000 | 138,470 | 276,927 | 345,397 | 363,721 | 366,109 | |||||||||||||||||
800,000 | 158,470 | 316,927 | 395,397 | 416,221 | 418,609 | |||||||||||||||||
900,000 | 178,470 | 356,927 | 445,397 | 468,721 | 471,109 | |||||||||||||||||
1,000,000 | 198,470 | 396,927 | 495,397 | 521,221 | 523,609 | |||||||||||||||||
1,100,000 | 218,470 | 436,927 | 545,397 | 573,721 | 576,109 | |||||||||||||||||
1,200,000 | 238,470 | 476,927 | 595,397 | 626,221 | 628,609 | |||||||||||||||||
1,300,000 | 258,470 | 516,927 | 645,397 | 678,721 | 681,109 | |||||||||||||||||
1,400,000 | 278,470 | 556,927 | 695,397 | 731,221 | 733,609 | |||||||||||||||||
1,500,000 | 298,470 | 596,927 | 745,397 | 783,721 | 786,109 | |||||||||||||||||
1,600,000 | 318,470 | 636,927 | 795,397 | 836,221 | 838,609 | |||||||||||||||||
1,700,000 | 338,470 | 676,927 | 845,397 | 888,721 | 891,109 | |||||||||||||||||
_____________________ | ||||||||||||||||||||||
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0-5 | 4.5% | ||||||||||||||||||||
5 or more | 6.0% | ||||||||||||||||||||
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Name | Number of Shares(a) | ||||||||||||||||||||
Dennis P. Coyle | 190,341 | (c)(d)(e)(f) | |||||||||||||||||||
Moray P. Dewhurst | 75,116 | (b)(c)(d)(e) | |||||||||||||||||||
Paul J. Evanson | 294,258 | (b)(c)(d)(e) | |||||||||||||||||||
Lewis Hay III | 256,026 | (b)(c)(d)(e) | |||||||||||||||||||
Lawrence J. Kelleher | 191,134 | (b)(c)(d)(e) | |||||||||||||||||||
Armando J. Olivera | 103,904 | (b)(c)(d)(e) | |||||||||||||||||||
Antonio Rodriguez | 28,681 | (b)(c)(d)(e) | |||||||||||||||||||
John A. Stall | 38,162 | (b)(c)(d)(e) | |||||||||||||||||||
All directors and executive officers as a group | 1,207,536 | (b)(c)(d)(e)(f)(g) | |||||||||||||||||||
_____________________ | |||||||||||||||||||||
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(b) | Includes 5,353; 72,287; 1,600; 15,709; 11,589; 4,385; and 5,579 share units of Messrs. Dewhurst, Evanson, Hay, Kelleher, Olivera, Rodriguez, and Stall, respectively, and a total of 122,331 share units for all directors and executive officers as a group under deferred compensation plans. Such units have no voting rights. | ||||||||||||||||||||
(c) | Includes 5,861; 523; 7,855; 2,239; 2,553; 454; 355; and 292 phantom shares for Messrs. Coyle, Dewhurst, Evanson, Hay, Kelleher, Olivera, Rodriguez, and Stall, respectively, and a total of 20,715 phantom shares for all directors and executive officers as a group, credited to a Supplemental Matching Contribution Account under the Supplemental Executive Retirement Plan. Phantom shares have no voting rights. | ||||||||||||||||||||
(d) | Includes 12,500; 23,334; 15,625; 25,416; 20,834; 13,334; 8,334; and 20,834 shares of restricted stock as to which Messrs. Coyle, Dewhurst, Evanson, Hay, Kelleher, Olivera, Rodriguez and Stall, respectively, and a total of 144,211 shares of restricted stock for all directors and executive officers as a group, which have voting but not investment power. | ||||||||||||||||||||
(e) | Includes options held by Messrs. Coyle, Dewhurst, Evanson, Hay, Kelleher, Olivera, Rodriguez and Stall to purchase 116,667; 41,667; 175,000; 191,667; 116,667; 58,334; 6,667; and 8,334 shares, respectively, and options to purchase a total of 720,003 shares for all directors and executive officers as a group. | ||||||||||||||||||||
(f) | Includes 25 shares owned by Mr. Coyle's wife, as to which Mr. Coyle disclaims beneficial ownership; and 20,610 shares owned by Coyle Holdings Limited Partnership, as to which Mr. Coyle disclaims beneficial ownership except to the extent of his pecuniary interest therein. | ||||||||||||||||||||
(g) | Less than 1% of the FPL Group common stock outstanding. | ||||||||||||||||||||
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FPL Group's Long Term Incentive Plan |
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_____________________ | |||||||||||||||||||||
(a) | These shares are also available for issuance as restricted stock and as performance share awards. | ||||||||||||||||||||
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(a) | 1. | Financial Statements | |||
Independent Auditors' Report | 33 | ||||
FPL Group: | |||||
Consolidated Statements of Income | 34 | ||||
Consolidated Balance Sheets | 35 | ||||
Consolidated Statements of Cash Flows | 36 | ||||
Consolidated Statements of Shareholders' Equity | 37 | ||||
FPL: | |||||
Consolidated Statements of Income | 38 | ||||
Consolidated Balance Sheets | 39 | ||||
Consolidated Statements of Cash Flows | 40 | ||||
Consolidated Statements of Shareholder's Equity | 41 | ||||
Notes to Consolidated Financial Statements | 42-70 | ||||
2. | Financial Statement Schedules -Schedules are omitted as not applicable or not required. | ||||
3. | Exhibits (including those incorporated by reference) |
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*Incorporated herein by reference |
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FPL GROUP, INC. SIGNATURES | ||||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||||||
FPL Group, Inc. | ||||||
LEWIS HAY III | ||||||
Lewis Hay III | ||||||
Date: March 25, 2003 | ||||||
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Moray P. Dewhurst | K. Michael Davis | |||||
Directors: | ||||||
H. JESSE ARNELLE | WILLARD D. DOVER | |||||
H. Jesse Arnelle | Willard D. Dover | |||||
SHERRY S. BARRAT | ALEXANDER W. DREYFOOS, JR. | |||||
Sherry S. Barrat | Alexander W. Dreyfoos, Jr. | |||||
ROBERT M. BEALL, II | PAUL J. EVANSON | |||||
Robert M. Beall, II | Paul J. Evanson | |||||
J. HYATT BROWN | FREDERIC V. MALEK | |||||
J. Hyatt Brown | Frederic V. Malek | |||||
JAMES L. CAMAREN | PAUL R. TREGURTHA | |||||
James L. Camaren | Paul R. Tregurtha | |||||
ARMANDO M. CODINA | FRANK G. ZARB | |||||
Armando M. Codina | Frank G. Zarb |
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Date: March 25, 2003 | ||||
LEWIS HAY III | ||||
Lewis Hay III |
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Date: March 25, 2003 | ||||
MORAY P. DEWHURST | ||||
Moray P. Dewhurst |
FLORIDA POWER & LIGHT COMPANY SIGNATURES | ||||||
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||||||
Florida Power & Light Company | ||||||
PAUL J. EVANSON | ||||||
Paul J. Evanson | ||||||
Date: March 25, 2003 | ||||||
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Lewis Hay III | ||||||
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Moray P. Dewhurst | ||||||
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K. Michael Davis | ||||||
Directors: | ||||||
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Dennis P. Coyle | Antonio Rodriguez | |||||
Lawrence J. Kelleher | John A. Stall | |||||
Armando J. Olivera |
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Date: March 25, 2003 | ||||
LEWIS HAY III | ||||
Lewis Hay III |
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Date: March 25, 2003 | ||||
MORAY P. DEWHURST | ||||
Moray P. Dewhurst |