Disclosures about Segments

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Disclosures about Segments

Disclosures about Segments

Cleco

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. For information on these services, see Note 15 — “Affiliate Transactions.”

In accordance with authoritative guidance, Cleco was required to reconsolidate Evangeline with its consolidated financial statements and discontinue reporting its investment in Evangeline on the equity method of accounting. As a result, effective January 1, 2010, the assets and liabilities of Evangeline are no longer represented by one line item corresponding to Midstream’s equity investment in Evangeline but instead are being reported in the corresponding line items in the consolidated financial statements of Midstream. Effective January 1, 2010, Evangeline’s revenues and expenses are being reported on several line items, as compared to previously being netted and reported on one line item as equity income (loss) from investees on Midstream.

SEGMENT INFORMATION
2011 (THOUSANDS)	CLECO POWER			MIDSTREAM			RECONCILING ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	1,051,956		$	—		$	—		$	—		$	1,051,956
Tolling operations	—			19,004			—			—			19,004
Other operations	50,948			9			2,011			(6		)	52,962
Electric customer credits	(6,811		)	—			—			—			(6,811		)
Affiliate revenue	1,389			45			53,068			(54,300		)	202
Operating revenue, net	$	1,097,482		$	19,058		$	55,079		$	(54,306	)	$	1,117,313
Depreciation	$	112,846		$	5,872		$	1,072		$	—		$	119,790
Interest charges	$	97,090		$	(28,996	)	$	2,405		$	159		$	70,658
Interest income	$	630		$	25		$	77		$	159		$	891
Equity income (loss) from investees, before tax	$	—		$	62,053		$	(3	)	$	—		$	62,050
Federal and state income tax expense (benefit)	$	69,409		$	44,637		$	(11,149	)	$	—		$	102,897
Segment profit(1)	$	142,835		$	42,792		$	10,221		$	—		$	195,848
Additions to long-lived assets	$	201,980		$	8,437		$	1,278		$	—		$	211,695
Equity investment in investees	$	14,532		$	—		$	8		$	—		$	14,540
Total segment assets	$	3,726,471		$	233,666		$	201,074		$	(111,009	)	$	4,050,202
(1) Reconciliation of segment profit to consolidated profit:	Segment profit									$	195,848
	Unallocated items:
	Preferred dividends requirements									26
	Preferred stock redemption costs									112
	Net income applicable to common stock									$	195,710

2010 (THOUSANDS)	CLECO POWER			MIDSTREAM		RECONCILING ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	1,086,102		$	—	$	—		$	—		$	1,086,102
Tolling operations	—			26,067		—			—			26,067
Other operations	42,578			3		1,959			(11		)	44,529
Electric customer credits	(9,596		)	—		—			—			(9,596		)
Affiliate revenue	1,371			960		47,924			(48,691		)	1,564
Operating revenue, net	$	1,120,455		$	27,030	$	49,883		$	(48,702	)	$	1,148,666
Depreciation	$	105,586		$	5,779	$	838		$	—		$	112,203
Interest charges	$	78,731		$	7,140	$	10,551		$	(646	)	$	95,776
Interest income	$	379		$	—	$	675		$	(645	)	$	409
Equity income from investees, before tax	$	—		$	38,848	$	1		$	—		$	38,849
Gain on toll settlement	$	—		$	148,402	$	—		$	—		$	148,402
Federal and state income tax expense (benefit)	$	75,107		$	71,255	$	(3,864	)	$	—		$	142,498
Segment profit (loss)(1)	$	147,405		$	114,467	$	(6,480	)	$	(1	)	$	255,391
Additions to long-lived assets	$	449,052		$	2,113	$	2,056		$	—		$	453,221
Equity investment in investees	$	13,073		$	73,648	$	11		$	—		$	86,732
Total segment assets	$	3,795,205		$	316,165	$	401,663		$	(351,623	)	$	4,161,410
(1) Reconciliation of segment profit to consolidated profit:	Segment profit								$	255,391
	Unallocated items:
	Preferred dividends requirements								46
	Net income applicable to common stock								$	255,345

2009 (THOUSANDS)	CLECO POWER		MIDSTREAM			RECONCILING ITEMS			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	808,646	$	—		$	—		$	—		$	808,646
Other operations	33,558		1			102			(10		)	33,651
Affiliate revenue	1,395		8,748			46,308			(44,990		)	11,461
Operating revenue, net	$	843,599	$	8,749		$	46,410		$	(45,000	)	$	853,758
Depreciation	$	77,064	$	177		$	963		$	—		$	78,204
Interest charges	$	58,562	$	7,408		$	(9,717	)	$	(5,198	)	$	51,055
Interest income	$	1,449	$	—		$	5,261		$	(5,198	)	$	1,512
Equity (loss) income from investees, before tax	$	—	$	(19,339	)	$	1,916		$	—		$	(17,423	)
Federal and state income tax expense (benefit)	$	15,297	$	(11,027	)	$	5,309		$	—		$	9,579
Segment profit (loss)(1)	$	111,166	$	(17,730	)	$	12,871		$	—		$	106,307
Additions to long-lived assets	$	235,385	$	55		$	980		$	—		$	236,420
Equity investment in investees	$	12,873	$	223,652		$	15,093		$	(1	)	$	251,617
Total segment assets	$	3,363,962	$	270,713		$	383,058		$	(322,886	)	$	3,694,847
(1) Reconciliation of segment profit to consolidated profit:	Segment profit								$	106,307
	Unallocated items:
	Preferred dividends requirements								46
	Net income applicable to common stock								$	106,261

Cleco Power

Cleco Power is a vertically integrated, regulated electric utility operating within Louisiana and is viewed as one unit by management. Discrete financial reports are prepared only at the company level. This approach is consistent with the standards applicable to segment reporting as defined by the authoritative guidance on segment reporting.