XML 34 R19.htm IDEA: XBRL DOCUMENT v3.21.2
Disclosures about Segments
 9 Months Ended
Sep. 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 Holdings’ 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 Holdings’ 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 Sept. 30,
2021 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$357,084 $107,500 $464,584 
Other operations22,779 35,158 57,937 
Affiliate revenue1,380 — 1,380 
Electric customer credits(691)— (691)
Operating revenue, net$380,552 $142,658 $523,210 
Net income $56,561 $86,744 $143,305 
Add: Depreciation and amortization43,526 12,623 
(1)
56,149 
Less: Interest income936 4 940 
Add: Interest charges18,509 1,117 19,626 
Add: Federal and state income tax expense 548 29,888 30,436 
EBITDA$118,208 $130,368 $248,576 
(1) Includes $3.6 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$464,584 $(2,420)$— $462,164 
Other operations57,937 1 (2,217)55,721 
Affiliate revenue1,380 32,116 (33,496)— 
Electric customer credits(691)— — (691)
Operating revenue, net$523,210 $29,697 $(35,713)$517,194 
Depreciation and amortization$56,149 $8,189 
(1)
$— $64,338 
Interest income$940 $43 $(42)$941 
Interest charges$19,626 $15,044 $(41)$34,629 
Federal and state income tax expense$30,436 $133 $— $30,569 
Net income (loss)$143,305 $(23,396)$1 $119,910 
(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$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 expense18,076 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.

Segment Information for the Nine Months Ended Sept. 30,
2021 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$887,191 $300,415 $1,187,606 
Other operations57,674 98,851 156,525 
Affiliate revenue4,259 — 4,259 
Electric customer credits(40,429)244 (40,185)
Operating revenue, net$908,695 $399,510 $1,308,205 
Net income$102,407 $153,719 $256,126 
Add: Depreciation and amortization126,534 36,614 
(2)
163,148 
Less: Interest income2,404 10 2,414 
Add: Interest charges55,392 786 56,178 
Add: Federal and state income tax (benefit) expense(219)52,561 52,342 
EBITDA$281,710 $243,670 $525,380 
Additions to property, plant, and equipment$202,940 $5,904 $208,844 
Equity investment in investees (1)
$3,822 $— $3,822 
Goodwill (1)
$1,490,797 $— $1,490,797 
Total segment assets (1)
$6,746,838 $1,212,968 $7,959,806 
(1) Balances as of September 30, 2021.
(2) Includes $10.0 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.

2021 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$1,187,606 $(7,260)$(1)$1,180,345 
Other operations156,525 4 (5,752)150,777 
Affiliate revenue4,259 85,392 (89,651)— 
Electric customer credits(40,185)— — (40,185)
Operating revenue, net$1,308,205 $78,136 $(95,404)$1,290,937 
Depreciation and amortization$163,148 $17,052 
(2)
$(1)$180,199 
Interest income$2,414 $100 $(98)$2,416 
Interest charges$56,178 $45,732 $(98)$101,812 
Federal and state income tax expense (benefit)$52,342 $(21,357)$— $30,985 
Net income (loss)$256,126 $(37,068)$1 $219,059 
Additions to property, plant, and equipment$208,844 $1,116 $— $209,960 
Equity investment in investees (1)
$3,822 $19,099 $(19,099)$3,822 
Goodwill (1)
$1,490,797 $— $— $1,490,797 
Total segment assets (1)
$7,959,806 $685,410 $(249,409)$8,395,807 
(1) Balances as of September 30, 2021.
(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.
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)
$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 $9.3 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(6.9) million 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)
$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 $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)2021202020212020
Net income$119,910 $60,297 $219,059 $109,793 
Add: Depreciation and amortization64,338 56,109 180,199 172,502 
Less: Interest income941 910 2,416 2,964 
Add: Interest charges34,629 34,060 101,812 103,923 
Add: Federal and state income tax expense 30,569 25,075 30,985 40,230 
Add: Other corporate costs and noncash items (1)
71 (1,078)(4,259)6,807 
Total segment EBITDA$248,576 $173,553 $525,380 $430,291 
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.