Disclosures about Segments

6 Months Ended

Jun. 30, 2015

Segment Reporting [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 its first-tier subsidiary. As a result of the Coughlin transfer from Evangeline to Cleco Power in March 2014, Midstream no longer meets the requirements to be disclosed as a separate reportable segment. Management determined the retrospective application of this transfer to be quantitatively and qualitatively immaterial when taken as a whole in relation to Cleco Power’s financial statements. As a result, Cleco’s segment reporting disclosures were not retrospectively adjusted to reflect the transfer. For more information, see Note 14 — “Coughlin Transfer.” For the reporting period beginning April 1, 2014, the remaining operations of Midstream are included as Other in the following table, along with the holding company, a shared services subsidiary, two transmission interconnection facility subsidiaries, and an investment subsidiary.

The 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. The reportable segment prepared budgets for 2015 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 segment and allocates resources to it 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. Prior to March 15, 2014, these intercompany transactions related primarily to the PPA between Cleco Power and Evangeline that began in 2012 and joint and common administrative support services provided by Support Group. Subsequent to March 15, 2014, 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,
2015 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	276,661		$	—		$	—		$	276,661
Other operations	15,283			520			—			15,803
Electric customer credits	(3,390		)	—			—			(3,390		)
Affiliate revenue	331			14,950			(15,281		)	—
Operating revenue, net	$	288,885		$	15,470		$	(15,281	)	$	289,074
Depreciation	$	36,126		$	342		$	—		$	36,468
Merger transaction costs	$	—		$	(410	)	$	—		$	(410	)
Interest charges	$	19,401		$	411		$	98		$	19,910
Interest income	$	48		$	(56	)	$	98		$	90
Federal and state income tax expense	$	19,909		$	449		$	1		$	20,359
Net income (loss)	$	31,813		$	(1,579	)	$	—		$	30,234
Equity investment in investees	$	15,372		$	8		$	—		$	15,380
Total segment assets	$	4,221,305		$	176,943		$	(56,234	)	$	4,342,014

2014 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	316,997		$	—		$	—		$	316,997
Other operations	14,027			541			—			14,568
Electric customer credits	(22,495		)	—			—			(22,495		)
Affiliate revenue	330			14,153			(14,483		)	—
Operating revenue, net	$	308,859		$	14,694		$	(14,483	)	$	309,070
Depreciation	$	37,295		$	275		$	—		$	37,570
Merger transaction costs	$	—		$	365		$	—		$	365
Interest charges	$	20,639		$	(681	)	$	107		$	20,065
Interest income	$	350		$	(106	)	$	106		$	350
Federal and state income tax expense (benefit)	$	16,071		$	(1,543	)	$	—		$	14,528
Net income	$	32,658		$	3,975		$	—		$	36,633
Equity investment in investees (1)	$	14,532		$	8		$	—		$	14,540
Total segment assets (1)	$	4,242,986		$	248,654		$	(112,567	)	$	4,379,073
(1) Balances as of December 31, 2014

SEGMENT INFORMATION FOR THE SIX MONTHS ENDED JUNE 30,
2015 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	554,175		$	—		$	—		$	554,175
Other operations	32,495			1,040			—			33,535
Electric customer credits	(3,179		)	—			—			(3,179		)
Affiliate revenue	665			27,754			(28,419		)	—
Operating revenue, net	$	584,156		$	28,794		$	(28,419	)	$	584,531
Depreciation	$	73,109		$	637		$	—		$	73,746
Merger transaction costs	$	—		$	1,730		$	—		$	1,730
Interest charges	$	39,304		$	526		$	202		$	40,032
Interest income	$	304		$	(119	)	$	203		$	388
Federal and state income tax expense (benefit)	$	38,268		$	(581	)	$	—		$	37,687
Net income (loss)	$	60,418		$	(3,262	)	$	—		$	57,156
Additions to property, plant, and equipment	$	78,010		$	170		$	—		$	78,180
Equity investment in investees	$	15,372		$	8		$	—		$	15,380
Total segment assets	$	4,221,305		$	176,943		$	(56,234	)	$	4,342,014

2014 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	586,756		$	—		$	—		$	586,756
Tolling operations	—			5,467			(5,467		)	—
Other operations	28,299			1,082			—			29,381
Electric customer credits	(22,681		)	—			—			(22,681		)
Affiliate revenue	665			27,346			(28,011		)	—
Operating revenue, net	$	593,039		$	33,895		$	(33,478	)	$	593,456
Depreciation	$	77,498		$	1,813		$	—		$	79,311
Merger transaction costs	$	—		$	365		$	—		$	365
Interest charges	$	40,399		$	(306	)	$	241		$	40,334
Interest income	$	951		$	(240	)	$	241		$	952
Federal and state income tax expense (benefit)	$	30,281		$	(2,075	)	$	—		$	28,206
Net income (loss)	$	58,965		$	3,593		$	(1	)	$	62,557
Additions to (reductions in) property, plant, and equipment	$	291,961		$	(175,767	)	$	—		$	116,194
Equity investment in investees (1)	$	14,532		$	8		$	—		$	14,540
Total segment assets (1)	$	4,242,986		$	248,654		$	(112,567	)	$	4,379,073
(1) Balances as of December 31, 2014