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Disclosures about Segments
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Disclosures about Segments
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, 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 Sept. 30,
2020 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$288,852 $99,956 $388,808 
Other operations17,775 31,331 49,106 
Affiliate revenue1,506 — 1,506 
Electric customer credits(16,534)— (16,534)
Operating revenue, net$291,599 $131,287 $422,886 
Net income $36,092 $38,357 $74,449 
Add: Depreciation and amortization40,268 11,344 
(1)
51,612 
Less: Interest income789 10 799 
Add: Interest charges18,441 (484)17,957 
Add: Federal and state income tax expense 18,076 12,258 30,334 
EBITDA$112,088 $61,465 $173,553 
(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 SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$388,808 $(2,420)$— $386,388 
Other operations49,106 1 (1,510)47,597 
Affiliate revenue1,506 35,522 (37,028)— 
Electric customer credits(16,534)— — (16,534)
Operating revenue, net$422,886 $33,103 $(38,538)$417,451 
Depreciation and amortization$51,612 $4,497 
(1)
$— $56,109 
Interest income$799 $121 $(10)$910 
Interest charges$17,957 $16,115 $(12)$34,060 
Federal and state income tax expense (benefit) $30,334 $(5,260)$1 $25,075 
Net income (loss)$74,449 $(14,154)$2 $60,297 
(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 POWERCLECO CAJUNTOTAL SEGMENTS
Revenue
Electric operations$339,869 $114,453 $454,322 
Other operations18,485 33,737 52,222 
Affiliate revenue334 31 365 
Electric customer credits(13,711)— (13,711)
Operating revenue, net$344,977 $148,221 $493,198 
Net income$51,527 $22,806 $74,333 
Add: Depreciation and amortization44,903 10,880 
(1)
55,783 
Less: Interest income1,421 220 1,641 
Add: Interest charges17,983 — 17,983 
Add: Federal and state income tax expense12,431 7,612 20,043 
EBITDA$125,423 $41,078 $166,501 
(1) Includes $3.2 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.
2019 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$454,322 $(2,420)$— $451,902 
Other operations52,222 — (2,442)49,780 
Affiliate revenue365 28,252 (28,617)— 
Electric customer credits(13,711)— — (13,711)
Operating revenue, net$493,198 $25,832 $(31,059)$487,971 
Depreciation and amortization$55,783 $4,512 
(1)
$— $60,295 
Interest income $1,641 $228 $(179)$1,690 
Interest charges$17,983 $18,028 $(179)$35,832 
Federal and state income tax expense (benefit)$20,043 $(5,955)$— $14,088 
Net income (loss)$74,333 $(18,768)$— $55,565 
(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 Nine Months Ended Sept. 30,
2020 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$752,925 $273,836 $1,026,761 
Other operations49,443 92,928 142,371 
Affiliate revenue3,852 204 4,056 
Electric customer credits(33,974)(153)(34,127)
Operating revenue, net$772,246 $366,815 $1,139,061 
Net income$76,156 $84,655 $160,811 
Add: Depreciation and amortization125,541 33,385 
(2)
158,926 
Less: Interest income2,498 269 2,767 
Add: Interest charges55,624 (353)55,271 
Add: Federal and state income tax expense30,770 27,280 58,050 
EBITDA$285,593 $144,698 $430,291 
Additions to property, plant, and equipment$205,765 $7,908 $213,673 
Equity investment in investees (1)
$13,072 $— $13,072 
Goodwill (1)
$1,490,797 $— $1,490,797 
Total segment assets (1)
$6,473,935 $1,066,387 $7,540,322 
(1) Balances as of September 30, 2020.
(2) Includes $9.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.
2020 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$1,026,761 $(7,260)$— $1,019,501 
Other operations142,371 2 (4,966)137,407 
Affiliate revenue4,056 93,938 (97,994)— 
Electric customer credits(34,127)— 1 (34,126)
Operating revenue, net$1,139,061 $86,680 $(102,959)$1,122,782 
Depreciation and amortization$158,926 $13,575 
(2)
$1 $172,502 
Interest income$2,767 $276 $(79)$2,964 
Interest charges$55,271 $48,731 $(79)$103,923 
Federal and state income tax expense (benefit)$58,050 $(17,821)$1 $40,230 
Net income (loss)$160,811 $(51,019)$1 $109,793 
Additions to property, plant, and equipment$213,673 $2,019 $— $215,692 
Equity investment in investees (1)
$13,072 $— $— $13,072 
Goodwill (1)
$1,490,797 $— $— $1,490,797 
Total segment assets (1)
$7,540,322 $606,687 $(48,935)$8,098,074 
(1) Balances as of September 30, 2020.
(2) Includes $7.3 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 POWERCLECO CAJUNTOTAL SEGMENTS
Revenue
Electric operations$862,969 $274,610 $1,137,579 
Other operations53,318 83,619 136,937 
Affiliate revenue971 31 1,002 
Electric customer credits(30,565)(1,267)(31,832)
Operating revenue, net$886,693 $356,993 $1,243,686 
Net income$127,595 $46,788 $174,383 
Add: Depreciation and amortization126,610 27,679 
(2)
154,289 
Less: Interest income3,281 842 4,123 
Add: Interest charges52,498 — 52,498 
Add: Federal and state income tax expense34,407 15,169 49,576 
EBITDA$337,829 $88,794 $426,623 
Additions to property, plant, and equipment
$247,987 $3,654 $251,641 
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 $8.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.1) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.
2019 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$1,137,579 $(7,260)$(1)$1,130,318 
Other operations136,937 2 (5,395)131,544 
Affiliate revenue1,002 77,800 (78,802)— 
Electric customer credits(31,832)— — (31,832)
Operating revenue, net$1,243,686 $70,542 $(84,198)$1,230,030 
Depreciation and amortization$154,289 $13,491 
(2)
$(1)$167,779 
Interest income$4,123 $841 $(508)$4,456 
Interest charges$52,498 $53,682 $(509)$105,671 
Federal and state income tax expense (benefit)$49,576 $(17,220)$(1)$32,355 
Net income (loss)$174,383 $(53,515)$— $120,868 
Additions to property, plant, and equipment$251,641 $204 $— $251,845 
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 $7.3 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 SEPT. 30,FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)2020201920202019
Net income$60,297 $55,565 $109,793 $120,868 
Add: Depreciation and amortization56,109 60,295 172,502 167,779 
Less: Interest income910 1,690 2,964 4,456 
Add: Interest charges34,060 35,832 103,923 105,671 
Add: Federal and state income tax expense 25,075 14,088 40,230 32,355 
Add: Other corporate costs and noncash items (1)
(1,078)2,411 6,807 4,406 
Total segment EBITDA$173,553 $166,501 $430,291 $426,623 
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.