Disclosures about Segments

12 Months Ended

Dec. 31, 2015

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 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 17 — “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
2015 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	1,142,389		$	—		$	—		$	1,142,389
Other operations	67,109			2,078			(1		)	69,186
Electric customer credits	(2,173		)	—			—			(2,173		)
Affiliate revenue	1,142			57,323			(58,465		)	—
Operating revenue, net	$	1,208,467		$	59,401		$	(58,466	)	$	1,209,402
Depreciation and amortization	$	147,839		$	1,739		$	1		$	149,579
Merger transaction costs	$	—		$	4,592		$	(1	)	$	4,591
Interest charges	$	76,560		$	1,149		$	282		$	77,991
Interest income	$	725		$	(111	)	$	281		$	895
Equity loss from investees, before tax	$	—		$	(8	)	$	—		$	(8	)
Federal and state income tax expense (benefit)	$	79,294		$	(1,590	)	$	—		$	77,704
Net income	$	141,350		$	(7,681	)	$	—		$	133,669
Additions to property, plant, and equipment	$	156,357		$	462		$	—		$	156,819
Equity investment in investees	$	16,822		$	—		$	—		$	16,822
Total segment assets	$	4,233,337		$	21,471		$	68,546		$	4,323,354

2014 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	1,225,960		$	—		$	—		$	1,225,960
Tolling operations	—			5,467			(5,467		)	—
Other operations	64,893			2,163			(1		)	67,055
Electric customer credits	(23,530		)	—			—			(23,530		)
Affiliate revenue	1,326			56,031			(57,357		)	—
Operating revenue, net	$	1,268,649		$	63,661		$	(62,825	)	$	1,269,485
Depreciation and amortization	$	144,026		$	2,479		$	—		$	146,505
Merger transaction costs	$	—		$	17,848		$	—		$	17,848
Interest charges	$	74,673		$	(1,538	)	$	471		$	73,606
Interest income	$	1,707		$	(410	)	$	471		$	1,768
Federal and state income tax expense (benefit)	$	76,974		$	(9,858	)	$	—		$	67,116
Net income	$	154,316		$	424		$	(1	)	$	154,739
Additions to property, plant, and equipment	$	206,607		$	1,029		$	—		$	207,636
Equity investment in investees	$	14,532		$	8		$	—		$	14,540
Total segment assets	$	4,232,942		$	248,043		$	(112,567	)	$	4,368,418

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 and amortization	$	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 property, plant, and equipment	$	184,684		$	4,106		$	3,086		$	—		$	191,876
Equity investment in investees	$	14,532		$	—		$	8		$	—		$	14,540
Total segment assets	$	3,932,717		$	225,832		$	87,515		$	(42,516	)	$	4,203,548

Cleco Power

Cleco Power is a vertically integrated, regulated electric utility operating within Louisiana and Mississippi and is viewed as one unit by management. Discrete financial reports are prepared only at the company level.