Note 11 — 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’s reportable segments are Cleco Power and Cleco Cajun.

Each 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 Cleco Cajun Transaction. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a new reportable segment. For more information on the transaction, see Note 2 — “Business Combinations.”

The financial results in the following tables are presented on an accrual basis. The historical segment information was not recast because the Cleco Cajun segment only consists of the newly acquired business. There were no other changes to Cleco’s existing reportable segments. 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,
2019 (THOUSANDS)	CLECO POWER			CLECO CAJUN		OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	257,175		$	58,194	$	(2,420	)	$	—		$	312,949
Other operations	19,430			19,965		2			—			39,397
Affiliate revenue	300			—		26,535			(26,835		)	—
Electric customer credits	(8,160		)	—		—			—			(8,160		)
Operating revenue, net	$	268,745		$	78,159	$	24,117		$	(26,835	)	$	344,186
Depreciation and amortization	$	42,377		$	5,410	$	2,069		$	—		$	49,856
Interest income	$	994		$	254	$	417		$	(174	)	$	1,491
Interest charges, net	$	17,145		$	—	$	17,028		$	(174	)	$	33,999
Federal and state income tax expense (benefit)	$	7,998		$	3,529	$	(5,540	)	$	(1	)	$	5,986
Net income (loss)	$	26,712		$	11,056	$	(17,210	)	$	(1	)	$	20,557
Additions to property, plant, and equipment	$	81,040		$	1,530	$	1,109		$	—		$	83,679
Equity investment in investees	$	18,172		$	—	$	—		$	—		$	18,172
Goodwill	$	1,490,797		$	—	$	—		$	—		$	1,490,797
Total segment assets	$	5,857,223		$	1,043,253	$	585,647		$	(66,954	)	$	7,419,169



2018 (THOUSANDS)	CLECO POWER			OTHER			ELIMINATIONS			CONSOLIDATED
Revenue
Electric operations	$	264,631		$	(2,420	)	$	—		$	262,211
Other operations	22,195			1			—			22,196
Affiliate revenue	208			15,669			(15,877		)	—
Electric customer credits	(7,647		)	—			—			(7,647		)
Operating revenue, net	$	279,387		$	13,250		$	(15,877	)	$	276,760
Depreciation and amortization	$	40,388		$	2,119		$	—		$	42,507
Interest income	$	641		$	190		$	(48	)	$	783
Interest charges, net	$	17,656		$	13,549		$	(48	)	$	31,157
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 ⁽¹⁾	$	18,172		$	—		$	—		$	18,172
Goodwill ⁽¹⁾	$	1,490,797		$	—		$	—		$	1,490,797
Total segment assets ⁽¹⁾	$	5,839,853		$	633,756		$	(36,795	)	$	6,436,814
⁽¹⁾Balances as of December 31, 2018