Summarized Financial Information of Capital Holdings | 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. 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 June 30, 2017 2016 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) NEECH Other (a) NEE Consoli- dated (millions) Operating revenues $ — $ 1,327 $ 3,077 $ 4,404 $ — $ 1,070 $ 2,747 $ 3,817 Operating expenses - net (4 ) (974 ) (2,141 ) (3,119 ) (5 ) (720 ) (1,923 ) (2,648 ) Interest expense (1 ) (309 ) (120 ) (430 ) — (485 ) (117 ) (602 ) Equity in earnings of subsidiaries 787 — (787 ) — 586 — (586 ) — Other income - net — 219 19 238 — 180 16 196 Income before income taxes 782 263 48 1,093 581 45 137 763 Income tax expense (benefit) (11 ) (12 ) 312 289 41 (100 ) 278 219 Net income (loss) 793 275 (264 ) 804 540 145 (141 ) 544 Less net income attributable to noncontrolling interests — 11 — 11 — 4 — 4 Net income (loss) attributable to NEE $ 793 $ 264 $ (264 ) $ 793 $ 540 $ 141 $ (141 ) $ 540 Six Months Ended June 30, 2017 2016 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) NEECH Other (a) NEE Consoli- dated (millions) Operating revenues $ — $ 2,789 $ 5,588 $ 8,377 $ — $ 2,605 $ 5,046 $ 7,651 Operating expenses - net (10 ) (823 ) (3,854 ) (4,687 ) (10 ) (1,725 ) (3,513 ) (5,248 ) Interest expense (1 ) (549 ) (240 ) (790 ) (1 ) (882 ) (228 ) (1,111 ) Equity in earnings of subsidiaries 2,349 — (2,349 ) — 1,224 — (1,224 ) — Other income - net 1 446 12 459 1 327 39 367 Income (loss) before income taxes 2,339 1,863 (843 ) 3,359 1,214 325 120 1,659 Income tax expense (benefit) (37 ) 438 563 964 21 (70 ) 510 461 Net income (loss) 2,376 1,425 (1,406 ) 2,395 1,193 395 (390 ) 1,198 Less net income attributable to noncontrolling interests — 19 — 19 — 5 — 5 Net income (loss) attributable to NEE $ 2,376 $ 1,406 $ (1,406 ) $ 2,376 $ 1,193 $ 390 $ (390 ) $ 1,193 ——————————————— (a) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2017 2016 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) NEECH Other (a) NEE Consoli- dated (millions) Comprehensive income (loss) attributable to NEE $ 836 $ 297 $ (297 ) $ 836 $ 571 $ 172 $ (172 ) $ 571 Six Months Ended June 30, 2017 2016 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) NEECH Other (a) NEE Consoli- dated (millions) Comprehensive income (loss) attributable to NEE $ 2,449 $ 1,472 $ (1,472 ) $ 2,449 $ 1,278 $ 482 $ (482 ) $ 1,278 ——————————————— (a) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Balance Sheets June 30, 2017 December 31, 2016 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 $ 28 $ 40,257 $ 50,419 $ 90,704 $ 28 $ 38,671 $ 48,314 $ 87,013 Accumulated depreciation and amortization (19 ) (8,342 ) (12,687 ) (21,048 ) (18 ) (7,778 ) (12,305 ) (20,101 ) Total property, plant and equipment - net 9 31,915 37,732 69,656 10 30,893 36,009 66,912 CURRENT ASSETS Cash and cash equivalents 1 607 34 642 1 1,258 33 1,292 Receivables 281 1,476 723 2,480 88 1,615 736 2,439 Other 3 1,323 1,499 2,825 2 1,877 1,799 3,678 Total current assets 285 3,406 2,256 5,947 91 4,750 2,568 7,409 OTHER ASSETS Investment in subsidiaries 25,747 — (25,747 ) — 24,323 — (24,323 ) — Other 834 9,869 6,584 17,287 867 8,992 5,813 15,672 Total other assets 26,581 9,869 (19,163 ) 17,287 25,190 8,992 (18,510 ) 15,672 TOTAL ASSETS $ 26,875 $ 45,190 $ 20,825 $ 92,890 $ 25,291 $ 44,635 $ 20,067 $ 89,993 CAPITALIZATION Common shareholders' equity $ 25,926 $ 8,505 $ (8,505 ) $ 25,926 $ 24,341 $ 7,699 $ (7,699 ) $ 24,341 Noncontrolling interests — 950 — 950 — 990 — 990 Long-term debt — 20,304 10,088 30,392 — 18,112 9,706 27,818 Total capitalization 25,926 29,759 1,583 57,268 24,341 26,801 2,007 53,149 CURRENT LIABILITIES Debt due within one year — 2,420 1,712 4,132 — 2,237 785 3,022 Accounts payable 1 1,100 713 1,814 1 2,668 778 3,447 Other 306 1,214 1,484 3,004 231 2,624 1,595 4,450 Total current liabilities 307 4,734 3,909 8,950 232 7,529 3,158 10,919 OTHER LIABILITIES AND DEFERRED CREDITS Asset retirement obligations — 868 1,977 2,845 — 816 1,920 2,736 Deferred income taxes 16 3,538 8,548 12,102 82 3,002 8,017 11,101 Other 626 6,291 4,808 11,725 636 6,487 4,965 12,088 Total other liabilities and deferred credits 642 10,697 15,333 26,672 718 10,305 14,902 25,925 COMMITMENTS AND CONTINGENCIES TOTAL CAPITALIZATION AND LIABILITIES $ 26,875 $ 45,190 $ 20,825 $ 92,890 $ 25,291 $ 44,635 $ 20,067 $ 89,993 ——————————————— (a) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 2016 NEE (Guaran- tor) NEECH Other (a) NEE Consoli- dated NEE (Guaran- tor) NEECH Other (a) NEE Consoli- dated (millions) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 992 $ 1,200 $ 973 $ 3,165 $ 809 $ 1,084 $ 1,377 $ 3,270 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures, independent power and other investments and nuclear fuel purchases — (4,195 ) (2,742 ) (6,937 ) — (3,866 ) (2,200 ) (6,066 ) Proceeds from sale of the fiber-optic telecommunications business — 1,482 — 1,482 — — — — Capital contributions from NEE (45 ) — 45 — (13 ) — 13 — Sale of independent power and other investments of NEER — 42 — 42 — 396 — 396 Proceeds from sale or maturity of securities in special use funds and other investments — 518 901 1,419 — 530 1,079 1,609 Purchases of securities in special use funds and other investments — (582 ) (949 ) (1,531 ) — (534 ) (1,120 ) (1,654 ) Proceeds from sales of noncontrolling interests in NEP — — — — — 303 — 303 Other - net 4 (14 ) 26 16 — (50 ) 25 (25 ) Net cash used in investing activities (41 ) (2,749 ) (2,719 ) (5,509 ) (13 ) (3,221 ) (2,203 ) (5,437 ) CASH FLOWS FROM FINANCING ACTIVITIES Issuances of long-term debt — 2,572 199 2,771 — 2,509 — 2,509 Retirements of long-term debt — (1,850 ) (35 ) (1,885 ) — (963 ) (33 ) (996 ) Net change in commercial paper — 1,115 732 1,847 — 701 307 1,008 Proceeds from other short-term debt — — 200 200 — — 500 500 Issuances of common stock - net 25 — — 25 43 — — 43 Dividends on common stock (920 ) — — (920 ) (803 ) — — (803 ) Contributions from (dividends to) NEE — (637 ) 637 — — (33 ) 33 — Other - net (56 ) (302 ) 14 (344 ) (36 ) 91 10 65 Net cash provided by (used in) financing activities (951 ) 898 1,747 1,694 (796 ) 2,305 817 2,326 Net increase (decrease) in cash and cash equivalents — (651 ) 1 (650 ) — 168 (9 ) 159 Cash and cash equivalents at beginning of period 1 1,258 33 1,292 — 546 25 571 Cash and cash equivalents at end of period $ 1 $ 607 $ 34 $ 642 $ — $ 714 $ 16 $ 730 ——————————————— (a) Represents primarily FPL and consolidating adjustments. |