Disclosures about Segments

6 Months Ended

Jun. 30, 2011

Disclosures about Segments [Abstract]

Disclosures about Segments

Note 8 — Disclosures about Segments

Cleco’s reportable segments are based on its method of internal reporting, which disaggregates business units by first-tier subsidiary.  Cleco’s reportable segments are Cleco Power and Midstream.  The reconciling items in the following tables consist of the holding company, a shared services subsidiary, two transmission interconnection facilities, and an investment subsidiary.  

Each reportable segment engages in business activities from which it earns revenue and incurs expenses.  Segment managers report periodically to Cleco’s Chief Executive Officer (the chief operating decision-maker) with discrete financial information and, at least quarterly, present discrete financial information to Cleco Corporation’s Board of Directors.  Each reportable segment prepared budgets for 2011 that were presented to and approved by Cleco Corporation’s Board of Directors.  

The financial results of Cleco’s segments are presented on an accrual basis.  Management evaluates the performance of its segments and allocates resources to them based on segment profit and the requirements to implement new strategic initiatives and projects to meet current business objectives.  Material intercompany transactions occur on a regular basis.  These intercompany transactions relate primarily to joint and common administrative support services provided by Support Group.

SEGMENT INFORMATION FOR THE THREE MONTHS ENDED JUNE 30,

	CLECO					RECONCILING
2011 (THOUSANDS)	POWER			MIDSTREAM		ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	260,485		$	-	$	-		$	-		$	260,485
Tolling operations		-			4,222		-			-			4,222
Other operations		12,453			7		526			(3	)		12,983
Electric customer credits		(4,822	)		-		-			-			(4,822	)
Affiliate revenue		348			12		13,075			(13,380	)		55
Operating revenue	$	268,464		$	4,241	$	13,601		$	(13,383	)	$	272,923
Depreciation	$	28,282		$	1,457	$	246		$	-		$	29,985
Interest charges	$	24,322		$	628	$	631		$	38		$	25,619
Interest income	$	168		$	-	$	(35	)	$	37		$	170
Equity income from investees, before tax	$	-		$	61,440	$	-		$	-		$	61,440
Federal and state income tax expense (benefit)	$	15,879		$	21,536	$	(895	)	$	-		$	36,520
Segment profit (1)	$	35,694		$	34,425	$	229		$	-		$	70,348
Additions to long-lived assets	$	35,185		$	122	$	611		$	-		$	35,918
Equity investment in investees	$	13,073		$	-	$	10		$	-		$	13,083
Total segment assets	$	3,779,401		$	233,099	$	225,981		$	(179,762	)	$	4,058,719
(1)Reconciliation of segment profit to consolidated profit:	Segment profit								$	70,348
	Unallocated items:
	Preferred dividends requirements, net of tax									15
	Preferred stock redemption costs, net of tax									112
	Net income applicable to common stock								$	70,221

	CLECO					RECONCILING
2010 (THOUSANDS)	POWER		MIDSTREAM			ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	261,101	$	-		$	-		$	-		$	261,101
Tolling operations		-		4,399			-			-			4,399
Other operations		9,755		1			492			(3	)		10,245
Affiliate revenue		344		13			12,011			(12,210	)		158
Operating revenue	$	271,200	$	4,413		$	12,503		$	(12,213	)	$	275,903
Depreciation	$	28,162	$	1,444		$	192		$	-		$	29,798
Interest charges	$	22,318	$	1,431		$	780		$	(11	)	$	24,518
Interest income	$	76	$	-		$	14		$	(10	)	$	80
Equity loss from investees, before tax	$	-	$	(1,129	)	$	-		$	-		$	(1,129	)
Federal and state income tax expense (benefit)	$	19,236	$	(1,241	)	$	(606	)	$	-		$	17,389
Segment profit (loss) (1)	$	39,089	$	(1,991	)	$	(1,913	)	$	1		$	35,186
Additions to long-lived assets	$	32,438	$	574		$	50		$	-		$	33,062
Equity investment in investees (2)	$	13,073	$	73,648		$	11		$	-		$	86,732
Total segment assets (2)	$	3,795,205	$	316,165		$	401,663		$	(351,623	)	$	4,161,410
(1)Reconciliation of segment profit to consolidated profit:	Segment profit								$	35,186
(2)Balances as of December 31, 2010	Unallocated items:
	Preferred dividends requirements, net of tax									12
	Net income applicable to common stock								$	35,174

SEGMENT INFORMATION FOR THE SIX MONTHS ENDED JUNE 30,

	CLECO					RECONCILING
2011 (THOUSANDS)	POWER			MIDSTREAM		ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	498,953		$	-	$	-		$	-		$	498,953
Tolling operations		-			7,003		-			-			7,003
Other operations		24,696			7		1,010			(2	)		25,711
Electric customer credits		(5,256	)		-		-			-			(5,256	)
Affiliate revenue		694			45		24,096			(24,633	)		202
Operating revenue	$	519,087		$	7,055	$	25,106		$	(24,635	)	$	526,613
Depreciation	$	55,683		$	2,913	$	487		$	1		$	59,084
Interest charges	$	48,723		$	1,211	$	2,198		$	100		$	52,232
Interest income	$	281		$	1	$	(96	)	$	99		$	285
Equity income (loss) from investees, before tax	$	-		$	62,053	$	(1	)	$	-		$	62,052
Federal and state income tax expense (benefit)	$	30,279		$	20,853	$	(2,417	)	$	(1	)	$	48,714
Segment profit (1)	$	65,724		$	33,328	$	311		$	-		$	99,363
Additions to long-lived assets	$	75,914		$	1,128	$	671		$	-		$	77,713
Equity investment in investees	$	13,073		$	-	$	10		$	-		$	13,083
Total segment assets	$	3,779,401		$	233,099	$	225,981		$	(179,762	)	$	4,058,719
(1)Reconciliation of segment profit to consolidated profit:	Segment profit								$	99,363
	Unallocated items:
	Preferred dividends requirements, net of tax									26
	Preferred stock redemption costs, net of tax									112
	Net income applicable to common stock								$	99,225

	CLECO				RECONCILING
2010 (THOUSANDS)	POWER		MIDSTREAM		ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	513,899	$	-	$	-		$	-		$	513,899
Tolling operations		-		11,863		-			-			11,863
Other operations		20,140		1		983			(5	)		21,119
Affiliate revenue		686		918		23,494			(23,791	)		1,307
Operating revenue	$	534,725	$	12,782	$	24,477		$	(23,796	)	$	548,188
Depreciation	$	50,808	$	2,887	$	356		$	-		$	54,051
Interest charges	$	41,060	$	4,863	$	1,626		$	(597	)	$	46,952
Interest income	$	234	$	-	$	605		$	(597	)	$	242
Equity income from investees, before tax	$	-	$	36,717	$	1		$	-		$	36,718
Gain on toll settlement	$	-	$	148,402	$	-		$	-		$	148,402
Federal and state income tax expense (benefit)	$	31,731	$	70,147	$	(4,622	)	$	-		$	97,256
Segment profit (1)	$	71,249	$	112,020	$	1,887		$	(1	)	$	185,155
Additions to long-lived assets	$	361,993	$	1,122	$	740		$	-		$	363,855
Equity investment in investees (2)	$	13,073	$	73,648	$	11		$	-		$	86,732
Total segment assets (2)	$	3,795,205	$	316,165	$	401,663		$	(351,623	)	$	4,161,410
(1)Reconciliation of segment profit to consolidated profit:	Segment profit							$	185,155
(2)Balances as of December 31, 2010	Unallocated items:
	Preferred dividends requirements, net of tax								23
	Net income applicable to common stock							$	185,132