Leases (Tables)

6 Months Ended

Jun. 30, 2019

Lessor, Lease, Description [Line Items]

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 June 30, 2019:

(THOUSANDS)	CLECO POWER		CLECO
Six months ending Dec. 31, 2019	$	1,897	$	2,021
Years ending Dec. 31,
2020	3,838		3,872
2021	2,512		2,546
2022	1,144		1,178
2023	1,120		1,151
Thereafter	5,909		5,951
Total minimum lease payments	16,420		16,719
Less: amount representing interest	2,182		2,197
Present value of net minimum operating lease payments	$	14,238	$	14,522
Current liabilities	$	3,640	$	3,776
Non-current liabilities	$	10,598	$	10,746

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 tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and six months ended June 30, 2019:

		AT JUNE 30, 2019
(THOUSANDS)	BALANCE SHEET LINE ITEM	CLECO POWER		CLECO
Supplemental balance sheet information
ROU assets
Operating	Operating lease right of use assets	$	14,352	$	14,618
Finance	Property, plant, and equipment	15,400		15,400
Total ROU assets		$	29,752	$	30,018
Current lease liabilities
Operating	Other current liabilities	$	3,640	$	3,776
Finance	Long-term debt and finance leases due within one year	586		586
Non-current lease liabilities
Operating	Operating lease liabilities	10,598		10,746
Finance	Long-term debt and finance leases, net	15,561		15,561
Total lease liabilities		$	30,385	$	30,669

Property associated with the Cottonwood Sale Leaseback was as follows:

(THOUSANDS)	AT JUNE 30, 2019
Property, plant, and equipment	$	539,768
Accumulated depreciation	(9,533		)
Net property, plant, and equipment	$	530,235

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

(THOUSANDS)	AT JUNE 30, 2019			AT DEC. 31, 2018
Barges	$	16,800		$	16,800
Accumulated amortization	(1,400		)	(840		)
Net finance lease	$	15,400		$	15,960

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 June 30, 2019:

(THOUSANDS)
Six months ending Dec. 31, 2019	$	1,102
Years ending Dec. 31,
2020	2,203
2021	2,203
2022	2,203
2023	2,203
2024	2,203
Thereafter	17,675
Total minimum lease payments	29,792
Less: amount representing interest	13,645
Present value of net minimum lease payments	$	16,147
Current liabilities	$	586
Non-current liabilities	$	15,561

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 tables reflect total lease costs for Cleco and Cleco Power for the three and six months ended June 30, 2019:

Cleco
(THOUSANDS)	FOR THE THREE  MONTHS ENDED JUNE 30, 2019		FOR THE SIX  MONTHS ENDED JUNE 30, 2019
Finance lease cost
Amortization of ROU assets	$	280	$	560
Interest on lease liabilities	413		830
Operating lease cost	1,118		2,253
Variable lease cost	144		306
Total lease cost	$	1,955	$	3,949

The following tables present additional information related to Cleco and Cleco Power’s operating and finance leases as of and for the three and six months ended June 30, 2019:

		AT JUNE 30, 2019
(THOUSANDS)	BALANCE SHEET LINE ITEM	CLECO POWER		CLECO
Supplemental balance sheet information
ROU assets
Operating	Operating lease right of use assets	$	14,352	$	14,618
Finance	Property, plant, and equipment	15,400		15,400
Total ROU assets		$	29,752	$	30,018
Current lease liabilities
Operating	Other current liabilities	$	3,640	$	3,776
Finance	Long-term debt and finance leases due within one year	586		586
Non-current lease liabilities
Operating	Operating lease liabilities	10,598		10,746
Finance	Long-term debt and finance leases, net	15,561		15,561
Total lease liabilities		$	30,385	$	30,669

Cleco
(THOUSANDS)	FOR THE THREE MONTHS ENDED JUNE 30, 2019		FOR THE SIX MONTHS ENDED JUNE 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,214	$	2,279
Operating cash flows from finance leases	$	413	$	830
Financing cash flows from finance leases	$	137	$	271
ROU assets obtained in exchange for new lease liabilities	$	—	$	132

	AT JUNE 30, 2019
(THOUSANDS)	CLECO POWER		CLECO
Other supplemental information
Operating leases
Weighted-average remaining lease term	7.4 years		7.3 years
Weighted-average discount rate	4.38	%	4.38	%
Finance leases
Weighted-average remaining lease term	13.8 years		13.8 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 for the three and six months ended June 30, 2019, was as follows:

(THOUSANDS)	FOR THE THREE MONTHS ENDED JUNE 30, 2019		FOR THE SIX MONTHS ENDED JUNE 30, 2019
Fixed payments	$	10,000	$	16,667
Variable payments	5,087		8,239
Amortization of deferred lease liability(1)	2,396		3,835
Total lease income	$	17,483	$	28,741

⁽¹⁾ The deferred lease revenue resulting from the preliminary fair value of the lease between Cottonwood Energy and a special-purpose entity that is a subsidiary of NRG Energy.

Remaining Minimum Lease Payments To Be Received

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

(THOUSANDS)
Six months ending Dec. 31, 2019	$	20,000
Years ending Dec. 31,
2020	40,000
2021	40,000
2022	40,000
2023	40,000
Thereafter	56,666
Total payments	$	236,666

Cleco Power

Lessor, Lease, Description [Line Items]

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

Cleco Power
(THOUSANDS)	FOR THE THREE  MONTHS ENDED  JUNE 30, 2019		FOR THE SIX MONTHS ENDED JUNE 30, 2019
Finance lease cost
Amortization of ROU assets	$	280	$	560
Interest on lease liabilities	413		830
Operating lease cost	1,061		2,142
Variable lease cost	144		306
Total lease cost	$	1,898	$	3,838

Cleco Power
(THOUSANDS)	FOR THE THREE MONTHS ENDED JUNE 30, 2019		FOR THE SIX MONTHS ENDED JUNE 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,141	$	2,155
Operating cash flows from finance leases	$	413	$	830
Financing cash flows from finance leases	$	137	$	271