v3.25.4
Employee Retirement Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Retirement Benefits Employee Retirement Benefits
Employee Pension Plan and Other Benefits Plans – NEE sponsors a qualified noncontributory defined benefit pension plan for substantially all employees of NEE and its subsidiaries. NEE also has a supplemental executive retirement plan (SERP), which includes a non-qualified supplemental defined benefit pension component that provides benefits to a select group of management and highly compensated employees, and sponsors a contributory postretirement plan for other benefits for retirees of NEE and its subsidiaries meeting certain eligibility requirements. The total accrued benefit cost of the SERP and postretirement plans is approximately $204 million ($78 million for FPL) and $212 million ($86 million for FPL) as of December 31, 2025 and 2024, respectively.

Pension Plan Assets, Benefit Obligations and Funded Status – The changes in assets, benefit obligations and the funded status of the pension plan are as follows:

 20252024
 (millions)
Change in pension plan assets:  
Fair value of plan assets as of January 1
$5,121 $4,897 
Actual return on plan assets659 469 
Benefit payments(216)(245)
Fair value of plan assets as of December 31
$5,564 $5,121 
Change in pension benefit obligation:  
Obligation as of January 1
$2,625 2,785 
Service cost69 71 
Interest cost136 131 
Special termination benefit(a)
— 27 
Plan amendments4 (3)
Actuarial losses (gains) – net(b)
79 (141)
Benefit payments(216)(245)
Obligation as of December 31(c)
$2,697 $2,625 
Funded status:  
Prepaid pension benefit costs at NEE as of December 31
$2,868 $2,496 
Prepaid pension benefit costs at FPL as of December 31(d)
$2,072 $1,954 
_________________________
(a)Reflects enhanced early retirement benefit.
(b)Primarily due to the difference in actual versus expected discount rate.
(c)NEE's accumulated pension benefit obligation, which includes no assumption about future salary levels, as of December 31, 2025 and 2024 was approximately $2,616 million and $2,553 million, respectively.
(d)Reflects FPL's allocated benefits under NEE's pension plan.

NEE's unrecognized amounts included in accumulated other comprehensive income (loss) yet to be recognized as components of prepaid pension benefit costs are as follows:

20252024
(millions)
Unrecognized prior service benefit (net of $1 tax expense)
$— $1 
Unrecognized gains (losses) (net of $14 tax expense and $3 tax benefit, respectively)
42 (12)
Total$42 $(11)
NEE's unrecognized amounts included in regulatory assets (liabilities) yet to be recognized as components of net prepaid pension benefit costs are as follows:

20252024
(millions)
Unrecognized prior service cost
$3 $— 
Unrecognized (gains) losses
(5)92 
Total$(2)$92 

The following table provides the assumptions used to determine the benefit obligation for the pension plan. These rates are used in determining net periodic pension income in the following year.

20252024
Discount rate5.43 %5.58 %
Salary increase4.90 %4.90 %
Weighted-average interest crediting rate3.79 %3.88 %

NEE's investment policy for the pension plan recognizes the benefit of protecting the plan's funded status, thereby avoiding the necessity of future employer contributions. Its broad objectives are to achieve a high rate of total return with a prudent level of risk taking while maintaining sufficient liquidity and diversification to avoid large losses and preserve capital over the long term.

The NEE pension plan fund's current target asset allocation, which is expected to be reached over time, is 41% equity investments, 36% fixed income investments and 23% alternative investments. The pension fund's investment strategy emphasizes traditional investments, broadly diversified across the global equity and fixed income markets, using a combination of different investment styles and vehicles. The pension fund's equity and fixed income holdings consist of both directly held securities as well as commingled investment arrangements such as common and collective trusts, pooled separate accounts, registered investment companies and limited partnerships. The pension fund's convertible security assets are principally direct holdings of convertible securities and include a convertible security oriented limited partnership. The pension fund's alternative investments consist primarily of private equity and real estate oriented investments in limited partnerships as well as absolute return oriented limited partnerships that use a broad range of investment strategies on a global basis.

The fair value measurements of NEE's pension plan assets by fair value hierarchy level are as follows:


December 31, 2025(a)
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(millions)
Equity securities(b)
$1,321 $3 $1 $1,325 
Equity commingled vehicles(c)
— 1,060 — 1,060 
U.S. Government and municipal bonds139 4 — 143 
Corporate debt securities(d)
— 263 — 263 
Asset-backed securities(e)
— 499 — 499 
Debt security commingled vehicles
— 126 — 126 
Convertible securities(f)
32 231 — 263 
Total investments in the fair value hierarchy$1,492 $2,186 $1 $3,679 
Total investments measured at net asset value(g)
1,885 
Total fair value of plan assets$5,564 
_________________________
(a)See Note 3 and Note 4 for discussion of fair value measurement techniques and inputs.
(b)Includes foreign investments of $481 million.
(c)Includes foreign investments of $495 million.
(d)Includes foreign investments of $66 million.
(e)Includes foreign investments of $202 million.
(f)Includes foreign investments of $20 million.
(g)Includes foreign investments of $289 million.
 
December 31, 2024(a)
 Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
 (millions)
Equity securities(b)
$1,307 $3 $1 $1,311 
Equity commingled vehicles(c)
— 880 — 880 
U.S. Government and municipal bonds207 4 — 211 
Corporate debt securities(d)
— 248 — 248 
Asset-backed securities(e)
— 453 — 453 
Debt security commingled vehicles
— 129 — 129 
Convertible securities(f)
19 262 — 281 
Total investments in the fair value hierarchy$1,533 $1,979 $1 $3,513 
Total investments measured at net asset value(g)
1,608 
Total fair value of plan assets$5,121 
_________________________

(a)See Note 3 and Note 4 for discussion of fair value measurement techniques and inputs.
(b)Includes foreign investments of $528 million.
(c)Includes foreign investments of $186 million.
(d)Includes foreign investments of $69 million.
(e)Includes foreign investments of $185 million.
(f)Includes foreign investments of $28 million.
(g)Includes foreign investments of $274 million.

Expected Cash Flows – The following table provides information about benefit payments expected to be paid by the pension plan for each of the following calendar years (in millions):

2026$228 
2027$222 
2028$220 
2029$214 
2030$214 
2031 – 2035
$1,029 

Net Periodic (Income) Cost – The components of net periodic (income) cost for the plans are as follows:

Pension BenefitsPostretirement Benefits
202520242023202520242023
 (millions)
Service cost$69 $71 $64 $1 $1 $1 
Interest cost136 131 132 8 9 9 
Expected return on plan assets(414)(405)(392)— — — 
Amortization of prior service benefit(1)— — — — — 
Special termination benefit— 27 — — — — 
Net periodic (income) cost at NEE$(210)$(176)$(196)$9 $10 $10 
Net periodic (income) cost allocated to FPL$(119)$(103)$(127)$8 $8 $8 
Other Comprehensive Income – The components of net periodic income (cost) recognized in OCI for the pension plan are as follows:

 202520242023
 (millions)
Prior service benefit (cost) (net of $0 tax benefit and $0 tax expense, respectively)
$(2)$— $1 
Net gains (net of $17 tax expense, $19 tax expense and $7 tax expense, respectively)
54 60 23 
Total$52 $60 $24 

Regulatory Assets (Liabilities) – The components of net periodic income recognized during the year in regulatory assets (liabilities) for the pension plan are as follows:

 20252024
 (millions)
Prior service cost
$2 $— 
Unrecognized gains
(96)(129)
Total$(94)$(129)

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

 202520242023
Discount rate5.58 %4.88 %5.05 %
Salary increase4.90 %4.90 %4.90 %
Expected long-term rate of return, net of investment management fees8.00 %8.00 %8.00 %
Weighted-average interest crediting rate3.88 %3.89 %3.82 %

Employee Contribution Plan – NEE offers an employee retirement savings plan which allows eligible participants to contribute a percentage of qualified compensation through payroll deductions. NEE makes matching contributions to participants' accounts. Defined contribution expense pursuant to this plan was approximately $92 million, $83 million and $78 million for NEE ($47 million, $44 million and $43 million for FPL) for the years ended December 31, 2025, 2024 and 2023, respectively.