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, an investment subsidiary, and a subsidiary formed to facilitate the Purchase and Sale Agreement with NRG Energy and NRG South Central. On December 29, 2017, Cleco sold the transmission assets owned by Attala and Perryville, the two subsidiaries that owned and operated the transmission interconnection facilities. After December 29, 2017, the remaining operations of Attala and Perryville were minimal. On February 6, 2018, Cleco Cajun entered into the Purchase and Sale Agreement with NRG Energy and NRG South Central. Upon the expected closing of the transaction, Cleco anticipates Cleco Cajun will be a new reportable segment. For more information on the Purchase and Sale Agreement and related transactions, see Note 16 — “Plan of Acquisition.”

The financial results in the table below 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.



SEGMENT INFORMATION FOR THE THREE MONTHS ENDED MAR. 31,
2018 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	264,631		$	(2,420	)	$	—		$	262,211
Other operations	22,195			1			—			22,196
Electric customer credits	(7,647		)	—			—			(7,647		)
Affiliate revenue	208			15,669			(15,877		)	—
Operating revenue, net	$	279,387		$	13,250		$	(15,877	)	$	276,760
Depreciation and amortization	$	40,388		$	2,119		$	—		$	42,507
Interest charges	$	17,656		$	13,549		$	(48	)	$	31,157
Interest income	$	641		$	190		$	(48	)	$	783
Federal and state income tax expense (benefit)	$	7,997		$	(5,135	)	$	—		$	2,862
Net income (loss)	$	26,004		$	(15,142	)	$	(1	)	$	10,861
Additions to property, plant, and equipment	$	63,343		$	790		$	—		$	64,133
Equity investment in investees	$	18,172		$	—		$	—		$	18,172
Goodwill	$	1,490,797		$	—		$	—		$	1,490,797
Total segment assets	$	5,722,284		$	618,513		$	(30,816	)	$	6,309,981



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
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 ⁽¹⁾	$	18,172		$	—		$	—		$	18,172
Goodwill ⁽¹⁾	$	1,490,797		$	—		$	—		$	1,490,797
Total segment assets ⁽¹⁾	$	5,679,538		$	619,943		$	(21,099	)	$	6,278,382
⁽¹⁾Balances as of December 31, 2017