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Disclosures about Segments
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Disclosures about Segments
Note 10 — 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, in the case of Cleco Power, Cleco Power’s Boards of Managers. The reportable segment prepares budgets that are presented to and approved by Cleco and, in the case of Cleco Power, 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. There were no 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,
2021 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$262,948 $91,407 $354,355 
Other operations16,269 30,655 46,924 
Affiliate revenue1,224 — 1,224 
Electric customer credits(18,762)244 (18,518)
Operating revenue, net$261,679 $122,306 $383,985 
Net income $27,421 $52,494 $79,915 
Add: Depreciation and amortization40,933 12,339 
(1)
53,272 
Less: Interest income825 3 828 
Add: Interest charges18,237 (180)18,057 
Add: Federal and state income tax expense 8,956 18,063 27,019 
EBITDA$94,722 $82,713 $177,435 
(1) Includes $3.3 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.

2021 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$354,355 $(2,420)$1 $351,936 
Other operations46,924 1 (1,595)45,330 
Affiliate revenue1,224 26,120 (27,344)— 
Electric customer credits(18,518)— 1 (18,517)
Operating revenue, net$383,985 $23,701 $(28,937)$378,749 
Depreciation and amortization$53,272 $4,427 
(1)
$— $57,699 
Interest income$828 $14 $(13)$829 
Interest charges$18,057 $15,248 $(14)$33,291 
Federal and state income tax (benefit) $27,019 $(17,182)$— $9,837 
Net income (loss)$79,915 $(1,093)$— $78,822 
(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.

2020 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue
Electric operations$239,643 $84,733 $324,376 
Other operations15,904 30,636 46,540 
Affiliate revenue1,240 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 amortization41,596 11,143 
(1)
52,739 
Less: Interest income755 103 858 
Add: Interest charges18,603 120 18,723 
Add: Federal and state income tax expense9,356 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 SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$324,376 $(2,420)$— $321,956 
Other operations46,540 1 (1,639)44,902 
Affiliate revenue1,283 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.

Segment Information for the Six Months Ended June 30,
2021 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$530,107 $192,914 $723,021 
Other operations34,895 63,694 98,589 
Affiliate revenue2,879 — 2,879 
Electric customer credits(39,738)244 (39,494)
Operating revenue, net$528,143 $256,852 $784,995 
Net income$45,846 $66,975 $112,821 
Add: Depreciation and amortization83,009 23,991 
(2)
107,000 
Less: Interest income1,468 6 1,474 
Add: Interest charges36,883 (332)36,551 
Add: Federal and state income tax (benefit) expense(767)22,673 21,906 
EBITDA$163,503 $113,301 $276,804 
Additions to property, plant, and equipment$134,185 $4,882 $139,067 
Equity investment in investees (1)
$5,572 $— $5,572 
Goodwill (1)
$1,490,797 $— $1,490,797 
Total segment assets (1)
$6,438,218 $1,078,534 $7,516,752 
(1) Balances as of June 30, 2021.
(2) Includes $6.4 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.

2021 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$723,021 $(4,840)$— $718,181 
Other operations98,589 2 (3,535)95,056 
Affiliate revenue2,879 53,276 (56,155)— 
Electric customer credits(39,494)— — (39,494)
Operating revenue, net$784,995 $48,438 $(59,690)$773,743 
Depreciation and amortization$107,000 $8,862 
(2)
$— $115,862 
Interest income$1,474 $57 $(56)$1,475 
Interest charges$36,551 $30,687 $(55)$67,183 
Federal and state income tax expense (benefit)$21,906 $(21,490)$— $416 
Net income (loss)$112,821 $(13,672)$— $99,149 
Additions to property, plant, and equipment$139,067 $1,440 $— $140,507 
Equity investment in investees (1)
$5,572 $— $— $5,572 
Goodwill (1)
$1,490,797 $— $— $1,490,797 
Total segment assets (1)
$7,516,752 $569,126 $(144,409)$7,941,469 
(1) Balances as of June 30, 2021.
(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.
2020 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue
Electric operations$464,073 $173,880 $637,953 
Other operations31,668 61,597 93,265 
Affiliate revenue2,346 204 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 amortization85,273 22,041 
(2)
107,314 
Less: Interest income1,709 258 1,967 
Add: Interest charges37,184 131 37,315 
Add: Federal and state income tax expense12,694 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)
$9,072 $— $9,072 
Goodwill (1)
$1,490,797 $— $1,490,797 
Total segment assets (1)
$6,256,944 $1,029,812 $7,286,756 
(1) Balances as of December 31, 2020.
(2) Includes $6.2 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(4.6) million deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

2020 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$637,953 $(4,840)$— $633,113 
Other operations93,265 1 (3,456)89,810 
Affiliate revenue2,550 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)
$9,072 $— $— $9,072 
Goodwill (1)
$1,490,797 $— $— $1,490,797 
Total segment assets (1)
$7,286,756 $595,217 $(156,404)$7,725,569 
(1) Balances as of December 31, 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.

FOR THE THREE MONTHS ENDED JUNE 30,FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)2021202020212020
Net income$78,822 $43,168 $99,149 $49,496 
Add: Depreciation and amortization57,699 57,304 115,862 116,393 
Less: Interest income829 898 1,475 2,054 
Add: Interest charges33,291 34,715 67,183 69,863 
Add: Federal and state income tax expense 9,837 13,593 416 15,155 
Add: Other corporate costs and noncash items (1)
(1,385)(4,326)(4,331)7,887 
Total segment EBITDA$177,435 $143,556 $276,804 $256,740 
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.