Intangible Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Finite-Lived Intangible Assets [Line Items]

Schedule of Amortization of Intangible Assets and Liabilities

The following tables present Cleco and Cleco Power’s amortization of intangible assets and liabilities:

Cleco
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Intangible assets
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517
Trade name	$	3,770	$	64	$	3,897	$	191
Power supply agreements	$	6,400	$	6,400	$	19,200	$	19,200
Intangible liabilities
LTSA	$	871	$	871	$	2,613	$	2,613
Power supply agreements	$	389	$	882	$	1,989	$	2,646

Schedule of Finite-Lived Intangible Assets and Liabilities

The following tables summarize the balances for intangible assets and liabilities subject to amortization for Cleco:

Cleco
(THOUSANDS)	AT SEPT. 30, 2021		AT DEC. 31, 2020
Intangible assets
Trade name	$	—	$	5,100
Power supply agreements	184,004		184,004
Total intangible assets carrying amount	184,004		189,104
Intangible liabilities
LTSA	24,100		24,100
Power supply agreements	14,200		14,200
Total intangible liability carrying amount	38,300		38,300
Net intangible assets carrying amount	145,704		150,804
Accumulated amortization	(77,326)		(63,932)
Net intangible assets subject to amortization	$	68,378	$	86,872

Goodwill

On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion. Management assigned the recognized goodwill to the Cleco Power reporting unit. Goodwill is required to be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires significant judgments, including the identification of reporting units, assignments of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of the reporting units.

Cleco conducted its 2021 annual impairment test using an August 1, 2021, measurement date. The fair value of the Cleco Power reporting unit was estimated using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market

approach, which estimates fair value based on market comparables within the utility and energy industries. Significant assumptions used in these fair value estimates include estimation of future cash flows related to capital expenditures, long-term rate of growth, and weighted-average cost of capital or discount rate. Changes in these assumptions could materially affect the determination of fair value and goodwill impairment at Cleco Power. Based on the tests performed, management has determined that the fair value of the Cleco Power reporting unit exceeds the carrying value resulting in no impairment of Cleco Power’s goodwill as of August 1, 2021.

CLECO POWER

Finite-Lived Intangible Assets [Line Items]

Schedule of Amortization of Intangible Assets and Liabilities

Cleco Power
	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS  ENDED SEPT. 30,
(THOUSANDS)	2021		2020		2021		2020
Cleco Katrina/Rita right to bill and collect storm recovery charges	$	—	$	—	$	—	$	517