Each reportable segment engages in business activities from which it earns revenue and incurs expenses. Segment managers report periodically to Cleco’s CEO, who is Cleco’s chief operating decision maker, 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, and an investment subsidiary. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a reportable segment. For more information on the transaction, see Note 2 — “Business Combinations.” There are no other changes to Cleco’s existing reportable segments.

The financial results in the following tables are presented on an accrual basis. EBITDA is a key non-GAAP financial measure used by the CEO to assess the operating performance of Cleco’s segments. Management evaluates the performance of Cleco’s segments and allocates resources to them based on segment profit and the requirements to implement strategic initiatives and projects to meet current business objectives. EBITDA is defined as net income adjusted for interest, income taxes, depreciation, and amortization. Depreciation and amortization in the following tables includes amortization of intangible assets and liabilities recorded for the fair value adjustment of wholesale power supply agreements as a result of the 2016 Merger and the Cleco Cajun Transaction, as well as amortization of deferred lease revenue resulting from the Cleco Cajun Transaction. Material intercompany transactions occur on a regular basis. These intercompany transactions relate primarily to joint and common administrative support services as well as transmission services provided by Cleco Power to Cleco Cajun.


Segment Information For The Three Months Ended June 30,
2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	239,643	$	84,733		$	324,376
Other operations	15,904		30,636			46,540
Affiliate revenue	1,240		43			1,283
Electric customer credits	(9,100)		—			(9,100)
Operating revenue, net	$	247,687	$	115,412		$	363,099
Net income	$	28,233	$	26,762		$	54,995
Add: Depreciation and amortization	41,596		11,143		⁽¹⁾	52,739
Less: Interest income	755		103			858
Add: Interest charges	18,603		120			18,723
Add: Federal and state income tax expense	9,356		8,601			17,957



EBITDA	$	97,033	$	46,523		$	143,556
⁽¹⁾ Includes $3.1 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $2.3 million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.


2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	324,376	$	(2,420)		$	—	$	321,956
Other operations	46,540		1			(1,639)		44,902
Affiliate revenue	1,283		29,138			(30,421)		—
Electric customer credits	(9,100)		—			—		(9,100)
Operating revenue, net	$	363,099	$	26,719		$	(32,060)	$	357,758
Depreciation and amortization	$	52,739	$	4,565	⁽¹⁾	$	—	$	57,304
Interest income	$	858	$	55		$	(15)	$	898
Interest charges	$	18,723	$	16,007		$	(15)	$	34,715

Federal and state income tax expense (benefit)	$	17,957	$	(4,364)		$	—	$	13,593
Net income (loss)	$	54,995	$	(11,826)		$	(1)	$	43,168
⁽¹⁾ Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.


2019 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	265,924	$	101,962		$	367,886
Other operations	15,404		29,917			45,321
Affiliate revenue	337		—			337
Electric customer credits	(8,693)		(1,267)			(9,960)
Operating revenue, net	$	272,972	$	130,612		$	403,584
Net income	$	49,356	$	12,926		$	62,282

Add: Depreciation and amortization	39,330		10,269		⁽¹⁾	49,599

Less: Interest income	867		368			1,235
Add: Interest charges	17,370		—			17,370
Add: Federal and state income tax expense	13,978		4,028			18,006
EBITDA	$	119,167	$	26,855		$	146,022
⁽¹⁾ Includes $2.5 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $2.4 million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.


2019 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	367,886	$	(2,420)		$	—	$	365,466
Other operations	45,321		—			(2,954)		42,367
Affiliate revenue	337		23,012			(23,349)		—
Electric customer credits	(9,960)		—			—		(9,960)
Operating revenue, net	$	403,584	$	20,592		$	(26,303)	$	397,873
Depreciation and amortization	$	49,599	$	4,490	⁽¹⁾	$	(1)	$	54,088
Interest income	$	1,235	$	197		$	(157)	$	1,275
Interest charges	$	17,370	$	18,626		$	(156)	$	35,840

Federal and state income tax expense (benefit)	$	18,006	$	(5,725)		$	—	$	12,281
Net income (loss)	$	62,282	$	(17,537)		$	1	$	44,746
⁽¹⁾ Includes $2.4 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.


Segment Information For The Six Months Ended June 30,
2020 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	464,073	$	173,880		$	637,953
Other operations	31,668		61,597			93,265
Affiliate revenue	2,346		204			2,550
Electric customer credits	(17,440)		(153)			(17,593)
Operating revenue, net	$	480,647	$	235,528		$	716,175
Net income	$	40,064	$	46,298		$	86,362

Add: Depreciation and amortization	85,273		22,041		⁽²⁾	107,314

Less: Interest income	1,709		258			1,967
Add: Interest charges	37,184		131			37,315
Add: Federal and state income tax expense	12,694		15,022			27,716
EBITDA	$	173,506	$	83,234		$	256,740
Additions to property, plant, and equipment	$	132,578	$	5,417		$	137,995
Equity investment in investees ⁽¹⁾	$	17,072	$	—		$	17,072
Goodwill ⁽¹⁾	$	1,490,797	$	—		$	1,490,797
Total segment assets ⁽¹⁾	$	6,135,361	$	1,028,970		$	7,164,331
⁽¹⁾ Balances as of June 30, 2020. ⁽²⁾Includes $6.2 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $4.6 million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.


2020 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	637,953	$	(4,840)		$	—	$	633,113
Other operations	93,265		1			(3,456)		89,810
Affiliate revenue	2,550		58,415			(60,965)		—
Electric customer credits	(17,593)		—			—		(17,593)
Operating revenue, net	$	716,175	$	53,576		$	(64,421)	$	705,330
Depreciation and amortization	$	107,314	$	9,079	⁽²⁾	$	—	$	116,393

Interest income	$	1,967	$	155		$	(68)	$	2,054
Interest charges	$	37,315	$	32,617		$	(69)	$	69,863
Federal and state income tax expense (benefit)	$	27,716	$	(12,561)		$	—	$	15,155
Net income (loss)	$	86,362	$	(36,865)		$	(1)	$	49,496
Additions to property, plant, and equipment	$	137,995	$	1,344		$	—	$	139,339
Equity investment in investees ⁽¹⁾	$	17,072	$	—		$	—	$	17,072
Goodwill ⁽¹⁾	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets ⁽¹⁾	$	7,164,331	$	609,159		$	(44,310)	$	7,729,180
⁽¹⁾ Balances as of June 30, 2020. ⁽²⁾Includes $4.8 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.


2019 (THOUSANDS)	CLECO POWER		CLECO CAJUN			TOTAL SEGMENTS
Revenue
Electric operations	$	523,100	$	160,156		$	683,256
Other operations	34,833		49,883			84,716
Affiliate revenue	637		—			637
Electric customer credits	(16,853)		(1,267)			(18,120)
Operating revenue, net	$	541,717	$	208,772		$	750,489
Net income	$	76,068	$	23,982		$	100,050

Add: Depreciation and amortization	81,707		16,799		⁽²⁾	98,506

Less: Interest income	1,860		622			2,482
Add: Interest charges	34,515		—			34,515
Add: Federal and state income tax expense	21,976		7,557			29,533
EBITDA	$	212,406	$	47,716		$	260,122
Additions to property, plant, and equipment	$	147,696	$	2,672		$	150,368
Equity investment in investees ⁽¹⁾	$	17,072	$	—		$	17,072
Goodwill ⁽¹⁾	$	1,490,797	$	—		$	1,490,797
Total segment assets ⁽¹⁾	$	5,967,327	$	1,011,591		$	6,978,918
⁽¹⁾Balances as of December 31, 2019. ⁽²⁾Includes $5.1 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $3.8 million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.


2019 (THOUSANDS)	TOTAL SEGMENTS		OTHER			ELIMINATIONS		TOTAL
Revenue
Electric operations	$	683,256	$	(4,840)		$	—	$	678,416
Other operations	84,716		2			(2,954)		81,764
Affiliate revenue	637		49,547			(50,184)		—
Electric customer credits	(18,120)		—			—		(18,120)
Operating revenue, net	$	750,489	$	44,709		$	(53,138)	$	742,060
Depreciation and amortization	$	98,506	$	8,979	⁽²⁾	$	(1)	$	107,484

Interest income	$	2,482	$	614		$	(329)	$	2,767
Interest charges	$	34,515	$	35,654		$	(330)	$	69,839
Federal and state income tax expense (benefit)	$	29,533	$	(11,265)		$	(1)	$	18,267
Net income (loss)	$	100,050	$	(34,747)		$	—	$	65,303
Additions to property, plant, and equipment	$	150,368	$	1,095		$	—	$	151,463
Equity investment in investees ⁽¹⁾	$	17,072	$	—		$	—	$	17,072
Goodwill ⁽¹⁾	$	1,490,797	$	—		$	—	$	1,490,797
Total segment assets ⁽¹⁾	$	6,978,918	$	546,096		$	(48,716)	$	7,476,298
⁽¹⁾Balances as of December 31, 2019. ⁽²⁾Includes $4.8 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.


	FOR THE THREE MONTHS ENDED JUNE 30,						FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2020		2019		2020		2019
Net income	$	43,168	$	44,746	$	49,496	$	65,303
Add: Depreciation and amortization	57,304		54,088		116,393		107,484

Less: Interest income	898		1,275		2,054		2,767
Add: Interest charges	34,715		35,840		69,863		69,839
Add: Federal and state income tax expense	13,593		12,281		15,155		18,267
Add: Other corporate costs and noncash items ⁽¹⁾	(4,326)		342		7,887		1,996

Total segment EBITDA	$	143,556	$	146,022	$	256,740	$	260,122
⁽¹⁾ Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.