Disclosures about Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Disclosures about Segments

Note 10 — 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 holding company, a shared services subsidiary, two transmission interconnection facility subsidiaries, and an investment subsidiary are shown as Other in the following tables.

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 2013 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 the power purchase agreement between Cleco Power and Evangeline that began in 2012 and joint and common administrative support services provided by Support Group. For information on these services, see Note 15 — “Affiliate Transactions.”

SEGMENT INFORMATION
2013 (THOUSANDS)	CLECO POWER			MIDSTREAM			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	1,047,548		$	—		$	—		$	—		$	1,047,548
Tolling operations	—			31,670			—			(31,670		)	—
Other operations	48,909			2			2,091			—			51,002
Electric customer credits	(1,836		)	—			—			—			(1,836		)
Affiliate revenue	1,338			—			55,145			(56,483		)	—
Operating revenue, net	$	1,095,959		$	31,672		$	57,236		$	(88,153	)	$	1,096,714
Depreciation	$	135,717		$	6,043		$	1,100		$	—		$	142,860
Interest charges	$	82,677		$	(331	)	$	1,274		$	634		$	84,254
Interest income	$	1,100		$	—		$	(628	)	$	633		$	1,105
Federal and state income tax expense (benefit)	$	79,381		$	7,110		$	(6,917	)	$	1		$	79,575
Net income	$	150,410		$	4,372		$	5,903		$	—		$	160,685
Additions to long-lived assets	$	184,684		$	4,106		$	3,086		$	—		$	191,876
Equity investment in investees	$	14,532		$	—		$	8		$	—		$	14,540
Total segment assets	$	3,943,712		$	225,832		$	88,234		$	(42,516	)	$	4,215,262

2012 (THOUSANDS)	CLECO POWER			MIDSTREAM		OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	944,169		$	—	$	—		$	—		$	944,169
Tolling operations	—			25,559		—			(25,559		)	—
Other operations	48,156			3		1,998			1			50,158
Electric customer credits	(630		)	—		—			—			(630		)
Affiliate revenue	1,372			—		52,063			(53,435		)	—
Operating revenue, net	$	993,067		$	25,562	$	54,061		$	(78,993	)	$	993,697
Depreciation	$	125,486		$	6,006	$	916		$	(1	)	$	132,407
Interest charges	$	80,502		$	770	$	2,269		$	615		$	84,156
Interest income	$	333		$	—	$	(602	)	$	615		$	346
Federal and state income tax expense (benefit)	$	68,133		$	6,404	$	(9,210	)	$	—		$	65,327
Net income	$	146,848		$	9,155	$	7,645		$	—		$	163,648
Additions to long-lived assets	$	222,104		$	8,759	$	1,861		$	—		$	232,724
Equity investment in investees	$	14,532		$	—	$	8		$	—		$	14,540
Total segment assets	$	3,871,729		$	215,342	$	201,678		$	(141,400	)	$	4,147,349

2011 (THOUSANDS)	CLECO POWER			MIDSTREAM			OTHER			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	$	115,634		$	5,872		$	1,072		$	—		$	122,578
Interest charges	$	97,090		$	(28,996	)	$	2,405		$	159		$	70,658
Interest income	$	630		$	25		$	77		$	159		$	891
Equity income from investees, before tax	$	—		$	62,053		$	(3	)	$	—		$	62,050
Federal and state income tax expense (benefit)	$	69,409		$	44,637		$	(11,149	)	$	—		$	102,897
Net income (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		$	233,891		$	201,074		$	(111,234	)	$	4,050,202
(1) Reconciliation of net income to consolidated profit:	Net income									$	195,848
	Unallocated items:
	Preferred dividends requirements									26
	Preferred stock redemption costs									112
	Net income applicable to common stock									$	195,710

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.