Disclosures about Segments

9 Months Ended

Sep. 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 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 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 SEPT. 30,
2015 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	325,994		$	—		$	—		$	325,994
Other operations	19,418			519			—			19,937
Electric customer credits	(463		)	—			—			(463		)
Affiliate revenue	240			15,036			(15,276		)	—
Operating revenue, net	$	345,189		$	15,555		$	(15,276	)	$	345,468
Depreciation	$	38,376		$	744		$	—		$	39,120
Merger transaction costs	$	—		$	831		$	—		$	831
Interest charges	$	18,309		$	195		$	89		$	18,593
Interest income	$	303		$	(47	)	$	90		$	346
Federal and state income tax expense	$	27,638		$	123		$	—		$	27,761
Net income (loss)	$	58,661		$	(3,998	)	$	—		$	54,663

2014 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	352,763		$	—		$	—		$	352,763
Other operations	18,957			540			—			19,497
Electric customer credits	(874		)	—			—			(874		)
Affiliate revenue	332			14,745			(15,077		)	—
Operating revenue, net	$	371,178		$	15,285		$	(15,077	)	$	371,386
Depreciation	$	37,518		$	317		$	(1	)	$	37,834
Merger transaction costs	$	—		$	1,141		$	—		$	1,141
Interest charges	$	14,486		$	(1,421	)	$	110		$	13,175
Interest income	$	398		$	(91	)	$	109		$	416
Federal and state income tax expense (benefit)	$	29,094		$	(4,651	)	$	(1	)	$	24,442
Net income	$	65,544		$	5,290		$	1		$	70,835

SEGMENT INFORMATION FOR THE NINE MONTHS ENDED SEPT. 30,
2015 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	880,169		$	—		$	—		$	880,169
Other operations	51,913			1,559			—			53,472
Electric customer credits	(3,642		)	—			—			(3,642		)
Affiliate revenue	904			42,790			(43,694		)	—
Operating revenue, net	$	929,344		$	44,349		$	(43,694	)	$	929,999
Depreciation	$	111,485		$	1,381		$	—		$	112,866
Merger transaction costs	$	—		$	2,561		$	—		$	2,561
Interest charges	$	57,612		$	720		$	292		$	58,624
Interest income	$	607		$	(166	)	$	293		$	734
Federal and state income tax expense (benefit)	$	65,906		$	(458	)	$	—		$	65,448
Net income (loss)	$	119,080		$	(7,261	)	$	—		$	111,819
Additions to property, plant, and equipment	$	116,360		$	318		$	—		$	116,678
Equity investment in investees	$	16,372		$	8		$	—		$	16,380
Total segment assets	$	4,195,925		$	51,553		$	57,871		$	4,305,349

2014 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	939,519		$	—		$	—		$	939,519
Tolling operations	—			5,467			(5,467		)	—
Other operations	47,256			1,622			—			48,878
Electric customer credits	(23,555		)	—			—			(23,555		)
Affiliate revenue	998			42,091			(43,089		)	—
Operating revenue, net	$	964,218		$	49,180		$	(48,556	)	$	964,842
Depreciation	$	115,016		$	2,129		$	—		$	117,145
Merger transaction costs	$	—		$	1,506		$	—		$	1,506
Interest charges	$	54,885		$	(1,727	)	$	350		$	53,508
Interest income	$	1,349		$	(331	)	$	351		$	1,369
Federal and state income tax expense (benefit)	$	59,375		$	(6,726	)	$	—		$	52,649
Net income	$	124,509		$	8,883		$	—		$	133,392
Additions to (reductions in) property, plant, and equipment	$	327,916		$	(175,666	)	$	—		$	152,250
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