Disclosures about Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Disclosures about Segments

Note 9 — Disclosures about Segments

Cleco’s reportable segment is 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 CEO with discrete financial information and, at least quarterly, present discrete financial information to Cleco and Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and Cleco Power’s Boards of Managers. 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 segment 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,
	SUCCESSOR
2017 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	237,553		$	(3,497	)	$	—		$	234,056
Other operations	16,365			515			—			16,880
Electric customer credits	(435		)	—			—			(435		)
Affiliate revenue	219			14,734			(14,953		)	—
Operating revenue, net	$	253,702		$	11,752		$	(14,953	)	$	250,501
Depreciation and amortization	$	38,758		$	2,093		$	—		$	40,851
Merger transaction and commitment costs	$	—		$	99		$	—		$	99
Interest charges	$	18,104		$	13,681		$	(67	)	$	31,718
Interest income	$	266		$	113		$	(67	)	$	312
Federal and state income tax expense (benefit)	$	9,855		$	(6,748	)	$	—		$	3,107
Net income (loss)	$	17,854		$	(11,562	)	$	—		$	6,292
Additions to property, plant, and equipment	$	46,744		$	1,146		$	—		$	47,890
Equity investment in investees	$	18,672		$	—		$	—		$	18,672
Goodwill	$	1,490,797		$	—		$	—		$	1,490,797
Total segment assets	$	5,748,503		$	621,406		$	(33,928	)	$	6,335,981

	PREDECESSOR
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 (1)	$	18,672		$	—		$	—		$	18,672
Goodwill (1)	$	1,490,797		$	—		$	—		$	1,490,797
Total segment assets (1)	$	5,758,245		$	614,959		$	(30,060	)	$	6,343,144
(1) Balances as of December 31, 2016 (Successor)