Leases (Tables)

3 Months Ended

Mar. 31, 2019

Future Minimum Lease Payments Due Under Long-Term Operating Leases

The following is a schedule by year of future minimum lease payments due under Cleco and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of March 31, 2019:



(THOUSANDS)	CLECO POWER		CLECO
Nine months ending Dec. 31, 2019	$	4,598	$	4,773
Years ending Dec. 31,
2020	5,918		5,952
2021	4,593		4,626
2022	3,225		3,256
2023	3,201		3,229
Thereafter	25,150		25,172
Total minimum lease payments	$	46,685	$	47,008
Less: amount representing interest	31,678		31,689
Present value of net minimum operating lease payments	$	15,007	$	15,319
Current liabilities	$	3,518	$	3,685
Non-current liabilities	11,489		11,634

Summary of Expected Operating Lease Payments as of Prior Year

The following table is a summary of expected operating lease payments for Cleco and Cleco Power at December 31, 2018:



(THOUSANDS)	CLECO HOLDINGS		CLECO POWER		TOTAL
Year ending Dec. 31,
2019	$	120	$	4,030	$	4,150
2020	—		3,890		3,890
2021	—		2,789		2,789
2022	—		1,239		1,239
2023	—		1,214		1,214
Thereafter	—		7,235		7,235
Total operating lease payments	$	120	$	20,397	$	20,517

Analysis of Leased Property Under Finance Leases, Supplemental Balance Sheet Information, and Property Associated with Sale Leaseback

The following table presents additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three months ended March 31, 2019:



(THOUSANDS)	BALANCE SHEET LINE ITEM	CLECO POWER			CLECO
Supplemental balance sheet information
ROU assets
Operating	Right of use assets	$	15,007		$	15,327
Finance	Property, plant, and equipment	15,680			15,680
Total ROU assets		$	30,687		$	31,007
Current lease liabilities
Operating	Other current liabilities	$	3,518		$	3,685
Finance	Long-term debt and finance leases due within one year	572			572
Non-current lease liabilities
Operating	Operating lease liability	11,489			11,634
Finance	Long-term debt and finance leases, net	15,712			15,712
Total lease liabilities		$	31,291		$	31,603

(THOUSANDS)		CLECO POWER			CLECO
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	1,014		$	1,065
Operating cash flows from finance leases		$	417		$	417
Financing cash flows from finance leases		$	134		$	134
ROU assets obtained in exchange for new lease liabilities		$	—		$	132

Other supplemental information
Operating leases
Weighted-average remaining lease term		7.4 years			7.4 years
Weighted-average discount rate		4.38		%	4.37		%
Finance leases
Weighted-average remaining lease term		14 years			14 years
Weighted-average discount rate		10.18		%	10.18		%

The following is an analysis of the leased property under the finance lease:



(THOUSANDS)	AT MAR. 31, 2019		AT DEC. 31, 2018
Barges	$	16,800	$	16,800
Less: accumulated amortization	1,120		840
Net finance lease	$	15,680	$	15,960

Property associated with the Cottonwood Sale Leaseback was as follows:



(THOUSANDS)	AT MAR. 31, 2019
Gross property, plant, and equipment	$	484,766
Less: accumulated depreciation	3,370
Net property, plant, and equipment	$	481,396

Future Minimum Lease Payments Due Under Finance Lease

The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of March 31, 2019:



(THOUSANDS)
Nine months ending Dec. 31, 2019	$	1,653
Years ending Dec. 31,
2020	2,203
2021	2,203
2022	2,203
2023	2,203
2024	2,203
Thereafter	17,674
Total minimum lease payments	30,342
Less: amount representing interest	14,058
Present value of net minimum lease payments	$	16,284
Current liabilities	$	572
Non-current liabilities	$	15,712

Future Minimum Lease Payments Due Under Finance Lease as of Prior Year

The following is a schedule by year of future minimum lease payments due under the finance lease together with the present value of the net minimum lease payments as of December 31, 2018:



	(THOUSANDS)
Years ending Dec. 31,
2019	$	2,611
2020	2,611
2021	2,611
2022	2,611
2023	2,611
Thereafter	23,655
Total minimum lease payments	36,710
Less: executory costs	5,817
Net minimum lease payments	30,893
Less: amount representing interest	14,475
Present value of net minimum lease payments	$	16,418
Current liabilities	$	557
Non-current liabilities	$	15,861

Total Lease Costs, Supplemental Cash Flow Information, and Other Supplemental Information

The following table reflects total lease costs for Cleco and Cleco Power:



	FOR THE THREE MONTHS ENDED MAR. 31, 2019
(THOUSANDS)	CLECO POWER		CLECO
Finance lease cost
Amortization of ROU assets	$	280	$	280
Interest on lease liabilities	417		417
Operating lease cost	1,081		1,136
Variable lease cost	162		162
Total lease cost	$	1,940	$	1,995

The following table presents additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three months ended March 31, 2019:



(THOUSANDS)	BALANCE SHEET LINE ITEM	CLECO POWER			CLECO
Supplemental balance sheet information
ROU assets
Operating	Right of use assets	$	15,007		$	15,327
Finance	Property, plant, and equipment	15,680			15,680
Total ROU assets		$	30,687		$	31,007
Current lease liabilities
Operating	Other current liabilities	$	3,518		$	3,685
Finance	Long-term debt and finance leases due within one year	572			572
Non-current lease liabilities
Operating	Operating lease liability	11,489			11,634
Finance	Long-term debt and finance leases, net	15,712			15,712
Total lease liabilities		$	31,291		$	31,603

(THOUSANDS)		CLECO POWER			CLECO
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	1,014		$	1,065
Operating cash flows from finance leases		$	417		$	417
Financing cash flows from finance leases		$	134		$	134
ROU assets obtained in exchange for new lease liabilities		$	—		$	132

Other supplemental information
Operating leases
Weighted-average remaining lease term		7.4 years			7.4 years
Weighted-average discount rate		4.38		%	4.37		%
Finance leases
Weighted-average remaining lease term		14 years			14 years
Weighted-average discount rate		10.18		%	10.18		%

Lease Income Under Cottonwood Sale Leaseback

Cleco Cajun’s lease income under the Cottonwood Sale Leaseback was as follows:



(THOUSANDS)	FOR THE THREE MONTHS ENDED MAR. 31, 2019
Fixed payments	$	6,667
Variable payments	3,151
Total lease income	$	9,818

Remaining Minimum Lease Payments To Be Received

The remaining minimum lease payments to be received under the Cottonwood Sale Leaseback are as follows:



(THOUSANDS)
Nine months ending Dec. 31, 2019	$	30,000
Years ending Dec. 31,
2020	40,000
2021	40,000
2022	40,000
2023	40,000
Thereafter	56,666
Total payments	$	246,666