Disclosures about Segments

3 Months Ended

Mar. 31, 2016

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.

Cleco Power, 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’s Board of Directors. The reportable segment prepares budgets that are presented to and approved by Cleco’s Board of Directors. The column shown as Other in the chart below includes the holding company, a shared services subsidiary, two transmission interconnection facility subsidiaries, and an investment subsidiary.

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. These intercompany transactions relate primarily to joint and common administrative support services provided by Support Group.

SEGMENT INFORMATION FOR THE THREE MONTHS ENDED MAR. 31,
2016 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	250,157		$	—		$	—		$	250,157
Other operations	16,614			518			—			17,132
Electric customer credits	(321		)	—			—			(321		)
Affiliate revenue	232			13,024			(13,256		)	—
Operating revenue, net	$	266,682		$	13,542		$	(13,256	)	$	266,968
Depreciation and amortization	$	38,603		$	335		$	—		$	38,938
Merger transaction costs	$	—		$	1,539		$	(17	)	$	1,522
Interest charges	$	19,285		$	278		$	(10	)	$	19,553
Interest income	$	179		$	55		$	(10	)	$	224
Federal and state income tax expense (benefit)	$	12,563		$	(426	)	$	—		$	12,137
Net income (loss)	$	20,879		$	(1,511	)	$	—		$	19,368
Additions to property, plant, and equipment	$	35,453		$	23		$	—		$	35,476
Equity investment in investees	$	19,272		$	—		$	—		$	19,272
Total segment assets	$	4,242,920		$	(14,679	)	$	104,928		$	4,333,169

2015 (THOUSANDS)	CLECO POWER		OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	277,514	$	—		$	—		$	277,514
Other operations	17,213		520			(1		)	17,732
Electric customer credits	211		—			—			211
Affiliate revenue	333		12,804			(13,137		)	—
Operating revenue, net	$	295,271	$	13,324		$	(13,138	)	$	295,457
Depreciation and amortization	$	36,983	$	295		$	—		$	37,278
Merger transaction costs	$	—	$	2,140		$	—		$	2,140
Interest charges	$	19,902	$	115		$	105		$	20,122
Interest income	$	256	$	(63	)	$	104		$	297
Federal and state income tax expense (benefit)	$	18,359	$	(1,030	)	$	(1	)	$	17,328
Net income (loss)	$	28,605	$	(1,684	)	$	1		$	26,922
Additions to property, plant, and equipment	$	36,232	$	65		$	—		$	36,297
Equity investment in investees (1)	$	16,822	$	—		$	—		$	16,822
Total segment assets (1)	$	4,233,337	$	21,471		$	68,546		$	4,323,354
(1) Balances as of December 31, 2015