Summarized Financial Information of NEECH | Summarized Financial Information of NEECH NEECH, a 100% owned subsidiary of NEE, provides funding for, and holds ownership interests in, NEE's operating subsidiaries other than FPL and Gulf Power. NEECH’s debentures and junior subordinated debentures including those that were registered pursuant to the Securities Act of 1933, as amended, are fully and unconditionally guaranteed by NEE. Condensed consolidating financial information is as follows: Condensed Consolidating Statements of Income Three Months Ended September 30, 2019 2018 (a) NEE (Guarantor) NEECH Other (b) NEE Consoli- dated NEE (Guarantor) NEECH Other (b) NEE Consoli- dated (millions) Operating revenues $ — $ 1,684 $ 3,888 $ 5,572 $ — $ 1,052 $ 3,364 $ 4,416 Operating expenses - net (55 ) (1,121 ) (2,803 ) (3,979 ) (46 ) (941 ) (2,461 ) (3,448 ) Interest expense (1 ) (580 ) (165 ) (746 ) (5 ) (27 ) (136 ) (168 ) Equity in earnings of subsidiaries 879 — (879 ) — 961 — (961 ) — Equity in earnings (losses) of equity method investees — (90 ) — (90 ) — 122 — 122 Other income - net 50 33 16 99 37 82 25 144 Income (loss) before income taxes 873 (74 ) 57 856 947 288 (169 ) 1,066 Income tax expense (benefit) (6 ) (109 ) 173 58 (58 ) 51 132 125 Net income (loss) 879 35 (116 ) 798 1,005 237 (301 ) 941 Net loss attributable to noncontrolling interests — 81 — 81 — 64 — 64 Net income (loss) attributable to NEE $ 879 $ 116 $ (116 ) $ 879 $ 1,005 $ 301 $ (301 ) $ 1,005 Nine Months Ended September 30, 2019 2018 (a) NEE (Guarantor) NEECH Other (b) NEE Consoli- dated NEE (Guarantor) NEECH Other (b) NEE Consoli- dated (millions) Operating revenues $ — $ 4,325 $ 10,291 $ 14,616 $ — $ 3,512 $ 8,825 $ 12,337 Operating expenses - net (153 ) (2,602 ) (7,385 ) (10,140 ) (159 ) (2,705 ) (6,300 ) (9,164 ) Interest expense (2 ) (1,576 ) (483 ) (2,061 ) (16 ) (363 ) (409 ) (788 ) Equity in earnings of subsidiaries 2,808 — (2,808 ) — 6,119 — (6,119 ) — Equity in earnings (losses) of equity method investees — (80 ) — (80 ) — 371 — 371 Gain on NEP deconsolidation — — — — — 3,927 — 3,927 Other income - net 138 275 52 465 138 174 69 381 Income (loss) before income taxes 2,791 342 (333 ) 2,800 6,082 4,916 (3,934 ) 7,064 Income tax expense (benefit) (3 ) (135 ) 394 256 (134 ) 1,316 420 1,602 Net income (loss) 2,794 477 (727 ) 2,544 6,216 3,600 (4,354 ) 5,462 Net loss attributable to noncontrolling interests — 250 — 250 — 754 — 754 Net income (loss) attributable to NEE $ 2,794 $ 727 $ (727 ) $ 2,794 $ 6,216 $ 4,354 $ (4,354 ) $ 6,216 ——————————————— (a) Amounts have been retrospectively adjusted for an accounting standards update related to leases. (b) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Statements of Comprehensive Income Three Months Ended September 30, 2019 2018 (a) NEE (Guarantor) NEECH Other (b) NEE Consoli- dated NEE (Guarantor) NEECH Other (b) NEE Consoli- dated (millions) Comprehensive income (loss) attributable to NEE $ 889 $ 127 $ (127 ) $ 889 $ 1,021 $ 318 $ (318 ) $ 1,021 Nine Months Ended September 30, 2019 2018 (a) NEE (Guarantor) NEECH Other (b) NEE Consoli- dated NEE (Guarantor) NEECH Other (b) NEE Consoli- dated (millions) Comprehensive income (loss) attributable to NEE $ 2,802 $ 790 $ (790 ) $ 2,802 $ 6,276 $ 4,418 $ (4,418 ) $ 6,276 ——————————————— (a) Amounts have been retrospectively adjusted for an accounting standards update related to leases. (b) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Balance Sheets September 30, 2019 December 31, 2018 NEE (Guaran- tor) NEECH Other (a) NEE Consoli- dated NEE (Guaran- tor) NEECH Other (a) NEE Consoli- dated (millions) PROPERTY, PLANT AND EQUIPMENT Electric plant in service and other property $ 434 $ 39,969 $ 63,340 $ 103,743 $ 220 $ 37,145 $ 54,718 $ 92,083 Accumulated depreciation and amortization (98 ) (9,346 ) (15,304 ) (24,748 ) (58 ) (8,473 ) (13,218 ) (21,749 ) Total property, plant and equipment - net 336 30,623 48,036 78,995 162 28,672 41,500 70,334 CURRENT ASSETS Cash and cash equivalents 1 988 142 1,131 (1 ) 525 114 638 Receivables 124 1,706 1,500 3,330 292 1,771 906 2,969 Other 7 1,648 1,563 3,218 5 1,425 1,356 2,786 Total current assets 132 4,342 3,205 7,679 296 3,721 2,376 6,393 OTHER ASSETS Investment in subsidiaries 36,255 — (36,255 ) — 33,397 — (33,397 ) — Investment in equity method investees — 7,179 1 7,180 — 6,748 — 6,748 Goodwill 1 1,220 2,908 4,129 1 587 303 891 Other 471 6,722 9,046 16,239 937 5,890 12,509 19,336 Total other assets 36,727 15,121 (24,300 ) 27,548 34,335 13,225 (20,585 ) 26,975 TOTAL ASSETS $ 37,195 $ 50,086 $ 26,941 $ 114,222 $ 34,793 $ 45,618 $ 23,291 $ 103,702 CAPITALIZATION Common shareholders' equity $ 36,592 $ 10,845 $ (10,845 ) $ 36,592 $ 34,144 $ 7,917 $ (7,917 ) $ 34,144 Noncontrolling interests — 3,582 — 3,582 — 3,269 — 3,269 Redeemable noncontrolling interests — 66 — 66 — 468 — 468 Long-term debt — 20,589 15,555 36,144 — 15,094 11,688 26,782 Total capitalization 36,592 35,082 4,710 76,384 34,144 26,748 3,771 64,663 CURRENT LIABILITIES Debt due within one year — 4,841 802 5,643 — 9,579 1,351 10,930 Accounts payable 2 2,067 769 2,838 32 1,730 624 2,386 Other 348 1,923 2,562 4,833 168 2,364 1,715 4,247 Total current liabilities 350 8,831 4,133 13,314 200 13,673 3,690 17,563 OTHER LIABILITIES AND DEFERRED CREDITS Asset retirement obligations — 1,063 2,375 3,438 — 988 2,147 3,135 Deferred income taxes (432 ) 2,756 5,785 8,109 (157 ) 2,778 4,746 7,367 Other 685 2,354 9,938 12,977 606 1,431 8,937 10,974 Total other liabilities and deferred credits 253 6,173 18,098 24,524 449 5,197 15,830 21,476 COMMITMENTS AND CONTINGENCIES TOTAL CAPITALIZATION AND LIABILITIES $ 37,195 $ 50,086 $ 26,941 $ 114,222 $ 34,793 $ 45,618 $ 23,291 $ 103,702 ——————————————— (a) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2019 2018 (a) NEE (Guaran- tor) NEECH Other (b) NEE Consoli- dated NEE (Guaran- tor) NEECH Other (b) NEE Consoli- dated (millions) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 2,774 $ 1,564 $ 1,905 $ 6,243 $ 2,839 $ 1,578 $ 814 $ 5,231 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures, acquisitions, independent power and other investments and nuclear fuel purchases (202 ) (4,725 ) (8,686 ) (13,613 ) (124 ) (5,536 ) (3,597 ) (9,257 ) Capital contributions from NEE (2,219 ) — 2,219 — (1,798 ) — 1,798 — Sale of independent power and other investments of NEER — 1,003 — 1,003 — 327 — 327 Proceeds from sale or maturity of securities in special use funds and other investments — 1,014 1,798 2,812 — 955 1,624 2,579 Purchases of securities in special use funds and other investments — (1,017 ) (1,884 ) (2,901 ) — (1,074 ) (1,786 ) (2,860 ) Distributions from equity method investees of independent power investments — — — — — 637 — 637 Other - net — 192 44 236 12 (203 ) 204 13 Net cash used in investing activities (2,421 ) (3,533 ) (6,509 ) (12,463 ) (1,910 ) (4,894 ) (1,757 ) (8,561 ) CASH FLOWS FROM FINANCING ACTIVITIES Issuances of long-term debt — 8,021 2,902 10,923 — 2,434 1,594 4,028 Retirements of long-term debt — (3,371 ) (190 ) (3,561 ) — (1,014 ) (1,579 ) (2,593 ) Net change in commercial paper — 422 (656 ) (234 ) — 2,255 (1,482 ) 773 Proceeds from other short-term debt — — — — — 625 — 625 Repayments of other short-term debt — (4,725 ) — (4,725 ) — (200 ) (250 ) (450 ) Payments from related parties under CSCS agreement - net — 460 — 460 — 720 — 720 Issuances of common stock - net 1,488 — — 1,488 714 — — 714 Dividends on common stock (1,797 ) — — (1,797 ) (1,570 ) — — (1,570 ) Contributions from (dividends to) NEE — 1,840 (1,840 ) — — (2,727 ) 2,727 — Other - net (42 ) 51 (40 ) (31 ) (73 ) (69 ) (36 ) (178 ) Net cash provided by (used in) financing activities (351 ) 2,698 176 2,523 (929 ) 2,024 974 2,069 Effects of currency translation on cash, cash equivalents and restricted cash — 2 — 2 — (1 ) — (1 ) Net increase (decrease) in cash, cash equivalents and restricted cash 2 731 (4,428 ) (3,695 ) — (1,293 ) 31 (1,262 ) Cash, cash equivalents and restricted cash at beginning of period (1 ) 533 4,721 5,253 1 1,807 175 1,983 Cash, cash equivalents and restricted cash at end of period $ 1 $ 1,264 $ 293 $ 1,558 $ 1 $ 514 $ 206 $ 721 ——————————————— (a) Amounts have been retrospectively adjusted for an accounting standards update related to leases. (b) Represents primarily FPL and consolidating adjustments. |