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Disclosures about Segments
 6 Months Ended
Jun. 30, 2018
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 following tables 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 following tables 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 JUNE 30,
2018 (THOUSANDS)
CLECO POWER

 
OTHER

 
ELIMINATIONS

 
CONSOLIDATED

Revenue
 
 
 
 
 
 
 
Electric operations
$
296,633

 
$
(2,420
)
 
$
—

 
$
294,213

Other operations
18,685

 
—

 
—

 
18,685

Electric customer credits
(13,637
)
 
—

 
—

 
(13,637
)
Affiliate revenue
220

 
17,273

 
(17,493
)
 
—

Operating revenue, net
$
301,901

 
$
14,853

 
$
(17,493
)
 
$
299,261

Depreciation and amortization
$
39,720

 
$
2,086

 
$
1

 
$
41,807

Interest charges
$
18,107

 
$
13,843

 
$
(41
)
 
$
31,909

Interest income
$
1,313

 
$
152

 
$
(38
)
 
$
1,427

Federal and state income tax expense (benefit)
$
13,710

 
$
(6,045
)
 
$
—

 
$
7,665

Net income (loss)
$
43,020

 
$
(17,182
)
 
$
1

 
$
25,839

2017 (THOUSANDS)
CLECO POWER

 
OTHER

 
ELIMINATIONS

 
CONSOLIDATED

Revenue
 
 
 
 
 
 
 
Electric operations
$
289,855

 
$
(2,420
)
 
$
—

 
$
287,435

Other operations
20,950

 
515

 
—

 
21,465

Electric customer credits
(239
)
 
—

 
—

 
(239
)
Affiliate revenue
221

 
13,631

 
(13,852
)
 
—

Operating revenue, net
$
310,787

 
$
11,726

 
$
(13,852
)
 
$
308,661

Depreciation and amortization
$
39,473

 
$
2,079

 
$
—

 
$
41,552

Interest charges
$
17,411

 
$
13,285

 
$
(75
)
 
$
30,621

Interest income
$
328

 
$
127

 
$
(74
)
 
$
381

Federal and state income tax expense (benefit)
$
23,063

 
$
(6,843
)
 
$
—

 
$
16,220

Net income (loss)
$
35,733

 
$
(10,289
)
 
$
—

 
$
25,444

SEGMENT INFORMATION FOR THE SIX MONTHS ENDED JUNE 30,
2018 (THOUSANDS)
CLECO POWER

 
OTHER

 
ELIMINATIONS

 
CONSOLIDATED

Revenue
 
 
 
 
 
 
 
Electric operations
$
561,264

 
$
(4,840
)
 
$
—

 
$
556,424

Other operations
40,880

 
1

 
—

 
40,881

Electric customer credits
(21,284
)
 
—

 
—

 
(21,284
)
Affiliate revenue
428

 
32,942

 
(33,370
)
 
—

Operating revenue, net
$
581,288

 
$
28,103

 
$
(33,370
)
 
$
576,021

Depreciation and amortization
$
80,109

 
$
4,205

 
$
—

 
$
84,314

Interest charges
$
35,763

 
$
27,392

 
$
(88
)
 
$
63,067

Interest income
$
1,953

 
$
342

 
$
(84
)
 
$
2,211

Federal and state income tax expense (benefit)
$
21,707

 
$
(11,180
)
 
$
1

 
$
10,528

Net income (loss)
$
69,024

 
$
(32,324
)
 
$
—

 
$
36,700

Additions to property, plant, and equipment
$
135,334

 
$
368

 
$
—

 
$
135,702

Equity investment in investees (1)
$
18,172

 
$
—

 
$
—

 
$
18,172

Goodwill (1)
$
1,490,797

 
$
—

 
$
—

 
$
1,490,797

Total segment assets (1)
$
5,807,559

 
$
599,216

 
$
(21,164
)
 
$
6,385,611

(1) Balances as of June 30, 2018
 
 
 
 
 
 
 
2017 (THOUSANDS)
CLECO POWER

 
OTHER

 
ELIMINATIONS

 
CONSOLIDATED

Revenue
 
 
 
 
 
 
 
Electric operations
$
527,408

 
$
(5,917
)
 
$
—

 
$
521,491

Other operations
37,315

 
1,030

 


 
38,345

Electric customer credits
(674
)
 
—

 
—

 
(674
)
Affiliate revenue
440

 
28,365

 
(28,805
)
 
—

Operating revenue, net
$
564,489

 
$
23,478

 
$
(28,805
)
 
$
559,162

Depreciation and amortization
$
78,230

 
$
4,172

 
$
—

 
$
82,402

Interest charges
$
35,515

 
$
26,966

 
$
(142
)
 
$
62,339

Interest income
$
594

 
$
240

 
$
(141
)
 
$
693

Federal and state income tax expense (benefit)
$
32,918

 
$
(13,591
)
 
$
—

 
$
19,327

Net income (loss)
$
53,587

 
$
(21,851
)
 
$
—

 
$
31,736

Additions to property, plant, and equipment
$
127,297

 
$
1,396

 
$
—

 
$
128,693

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