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. 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, 2018 2017 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) (b) NEECH Other (a) NEE Consoli- dated (b) (millions) Operating revenues $ — $ 1,054 $ 3,364 $ 4,418 $ — $ 1,365 $ 3,443 $ 4,808 Operating expenses - net (46 ) (941 ) (2,461 ) (3,448 ) (51 ) (982 ) (2,424 ) (3,457 ) Interest expense (5 ) (26 ) (136 ) (167 ) (1 ) (259 ) (121 ) (381 ) Equity in earnings of subsidiaries 963 — (963 ) — 830 — (830 ) — Equity in earnings of equity method investees — 122 — 122 — 56 — 56 Other income - net 37 82 25 144 48 125 21 194 Income (loss) before income taxes 949 291 (171 ) 1,069 826 305 89 1,220 Income tax expense (benefit) (58 ) 52 132 126 (21 ) 30 355 364 Net income (loss) 1,007 239 (303 ) 943 847 275 (266 ) 856 Net (income) loss attributable to noncontrolling interests — 64 — 64 — (9 ) — (9 ) Net income (loss) attributable to NEE $ 1,007 $ 303 $ (303 ) $ 1,007 $ 847 $ 266 $ (266 ) $ 847 Nine Months Ended September 30, 2018 2017 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) (b) NEECH Other (a) NEE Consoli- dated (b) (millions) Operating revenues $ — $ 3,526 $ 8,825 $ 12,351 $ — $ 4,154 $ 9,031 $ 13,185 Operating expenses - net (159 ) (2,715 ) (6,298 ) (9,172 ) (114 ) (1,806 ) (6,276 ) (8,196 ) Interest expense (16 ) (360 ) (411 ) (787 ) (2 ) (809 ) (360 ) (1,171 ) Equity in earnings of subsidiaries 6,132 — (6,132 ) — 3,179 — (3,179 ) — Equity in earnings of equity method investees — 372 — 372 — 153 — 153 Gain on NEP deconsolidation — 3,935 — 3,935 — — — — Other income - net 138 174 69 381 102 477 31 610 Income (loss) before income taxes 6,095 4,932 (3,947 ) 7,080 3,165 2,169 (753 ) 4,581 Income tax expense (benefit) (134 ) 1,319 420 1,605 (58 ) 468 919 1,329 Net income (loss) 6,229 3,613 (4,367 ) 5,475 3,223 1,701 (1,672 ) 3,252 Net (income) loss attributable to noncontrolling interests — 754 — 754 — (29 ) — (29 ) Net income (loss) attributable to NEE $ 6,229 $ 4,367 $ (4,367 ) $ 6,229 $ 3,223 $ 1,672 $ (1,672 ) $ 3,223 ——————————————— (a) Represents primarily FPL and consolidating adjustments. (b) Prior period amounts have been retrospectively adjusted as discussed in Note 3 - Amendments to Presentation of Retirement Benefits. Condensed Consolidating Statements of Comprehensive Income Three Months Ended September 30, 2018 2017 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) NEECH Other (a) NEE Consoli- dated (millions) Comprehensive income (loss) attributable to NEE $ 1,022 $ 319 $ (319 ) $ 1,022 $ 892 $ 312 $ (312 ) $ 892 Nine Months Ended September 30, 2018 2017 NEE (Guarantor) NEECH Other (a) NEE Consoli- dated NEE (Guarantor) NEECH Other (a) NEE Consoli- dated (millions) Comprehensive income (loss) attributable to NEE $ 6,288 $ 4,430 $ (4,430 ) $ 6,288 $ 3,341 $ 1,784 $ (1,784 ) $ 3,341 ——————————————— (a) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Balance Sheets September 30, 2018 December 31, 2017 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 $ 199 $ 35,648 $ 54,478 $ 90,325 $ 20 $ 41,782 $ 51,981 $ 93,783 Accumulated depreciation and amortization (49 ) (8,378 ) (13,326 ) (21,753 ) (15 ) (8,551 ) (12,801 ) (21,367 ) Total property, plant and equipment - net 150 27,270 41,152 68,572 5 33,231 39,180 72,416 CURRENT ASSETS Cash and cash equivalents 1 391 105 497 1 1,679 34 1,714 Receivables 474 1,660 985 3,119 442 1,633 662 2,737 Other 5 3,402 1,326 4,733 5 1,283 1,418 2,706 Total current assets 480 5,453 2,416 8,349 448 4,595 2,114 7,157 OTHER ASSETS Investment in subsidiaries 33,569 — (33,569 ) — 27,825 — (27,825 ) — Investment in equity method investees — 6,493 — 6,493 — 2,321 — 2,321 Other 666 6,339 8,184 15,189 591 7,620 7,722 15,933 Total other assets 34,235 12,832 (25,385 ) 21,682 28,416 9,941 (20,103 ) 18,254 TOTAL ASSETS $ 34,865 $ 45,555 $ 18,183 $ 98,603 $ 28,869 $ 47,767 $ 21,191 $ 97,827 CAPITALIZATION Common shareholders' equity $ 34,252 $ 12,453 $ (12,453 ) $ 34,252 $ 28,208 $ 10,745 $ (10,745 ) $ 28,208 Noncontrolling interests — 3,086 — 3,086 — 1,290 — 1,290 Long-term debt — 15,453 11,595 27,048 — 20,227 11,236 31,463 Total capitalization 34,252 30,992 (858 ) 64,386 28,208 32,262 491 60,961 CURRENT LIABILITIES Debt due within one year — 5,239 300 5,539 — 1,215 2,403 3,618 Accounts payable 27 2,302 671 3,000 3 2,427 805 3,235 Other 322 2,043 1,903 4,268 325 2,073 1,981 4,379 Total current liabilities 349 9,584 2,874 12,807 328 5,715 5,189 11,232 OTHER LIABILITIES AND DEFERRED CREDITS Asset retirement obligations — 943 2,122 3,065 — 984 2,047 3,031 Deferred income taxes (100 ) 2,757 4,763 7,420 (82 ) 1,247 4,589 5,754 Other 364 1,279 9,282 10,925 415 7,559 8,875 16,849 Total other liabilities and deferred credits 264 4,979 16,167 21,410 333 9,790 15,511 25,634 COMMITMENTS AND CONTINGENCIES TOTAL CAPITALIZATION AND LIABILITIES $ 34,865 $ 45,555 $ 18,183 $ 98,603 $ 28,869 $ 47,767 $ 21,191 $ 97,827 ——————————————— (a) Represents primarily FPL and consolidating adjustments. Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2018 2017 (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 $ 2,839 $ 1,578 $ 808 $ 5,225 $ 1,464 $ 1,937 $ 1,928 $ 5,329 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures, independent power and other investments and nuclear fuel purchases (124 ) (5,536 ) (3,597 ) (9,257 ) — (4,808 ) (3,779 ) (8,587 ) Proceeds from sale of the fiber-optic telecommunications business — — — — — 1,482 — 1,482 Capital contributions from NEE (1,798 ) — 1,798 — (46 ) — 46 — Sale of independent power and other investments of NEER — 327 — 327 — 159 — 159 Proceeds from sale or maturity of securities in special use funds and other investments — 955 1,624 2,579 — 819 1,240 2,059 Purchases of securities in special use funds and other investments — (1,074 ) (1,786 ) (2,860 ) — (827 ) (1,319 ) (2,146 ) Distributions from equity method investees — 637 — 637 — — 7 7 Other - net 12 (203 ) 204 13 7 177 (9 ) 175 Net cash used in investing activities (1,910 ) (4,894 ) (1,757 ) (8,561 ) (39 ) (2,998 ) (3,814 ) (6,851 ) CASH FLOWS FROM FINANCING ACTIVITIES Issuances of long-term debt — 2,434 1,594 4,028 — 4,995 201 5,196 Retirements of long-term debt — (1,014 ) (1,579 ) (2,593 ) — (3,819 ) (73 ) (3,892 ) Proceeds from differential membership investors — 103 — 103 — 340 — 340 Net change in commercial paper — 2,255 (1,482 ) 773 — 995 811 1,806 Proceeds from other short-term debt — 625 — 625 — — 200 200 Repayments of other short-term debt — (200 ) (250 ) (450 ) — — (2 ) (2 ) Payments from related parties under CSCS agreement - net — 720 — 720 — — — — Issuances of common stock - net 714 — — 714 36 — — 36 Dividends on common stock (1,570 ) — — (1,570 ) (1,382 ) — — (1,382 ) Contributions from (dividends to) NEE — (2,727 ) 2,727 — — (722 ) 722 — Other - net (73 ) (172 ) (30 ) (275 ) (79 ) (457 ) (4 ) (540 ) Net cash provided by (used in) financing activities (929 ) 2,024 980 2,075 (1,425 ) 1,332 1,855 1,762 Effects of currency translation on cash, cash equivalents and restricted cash — (1 ) — (1 ) — — — — Net increase (decrease) in cash, cash equivalents and restricted cash — (1,293 ) 31 (1,262 ) — 271 (31 ) 240 Cash, cash equivalents and restricted cash at beginning of period 1 1,807 175 1,983 1 1,375 153 1,529 Cash, cash equivalents and restricted cash at end of period $ 1 $ 514 $ 206 $ 721 $ 1 $ 1,646 $ 122 $ 1,769 ——————————————— (a) Prior period amounts have been retrospectively adjusted as discussed in Note 11 - Restricted Cash. (b) Represents primarily FPL and consolidating adjustments. |