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Disclosures about Segments
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Disclosures about Segments
Note 12 — Disclosures about Segments
Cleco
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. Upon the completion of the Cleco Cajun Transaction on February 4, 2019, Cleco Cajun became a reportable segment. For more information on the Cleco Cajun Transaction, see Note 3 — “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 YEAR ENDED DEC. 31, 2021
(THOUSANDS)CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$1,202,249 $398,226 $1,600,475 
Other operations74,625 128,749 203,374 
Affiliate revenue5,641 — 5,641 
Electric customer credits(40,878)244 (40,634)
Operating revenue, net$1,241,637 $527,219 $1,768,856 
Net income$134,088 $115,632 $249,720 
Add: Depreciation and amortization173,498 56,438 
(1)
229,936 
Less: Interest income3,294 15 3,309 
Add: Interest charges73,090 803 73,893 
Add: Federal and state income tax (benefit) expense(9,353)42,283 32,930 
EBITDA$368,029 $215,141 $583,170 
Additions to property, plant, and equipment$300,957 $9,081 $310,038 
Equity investment in investee$2,072 $— $2,072 
Goodwill$1,490,797 $— $1,490,797 
Total segment assets$6,620,298 $1,104,090 $7,724,388 
(1) Includes $13.5 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(9.2) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.
FOR THE YEAR ENDED DEC. 31, 2021
(THOUSANDS)TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue   
Electric operations$1,600,475 $(9,680)$1 $1,590,796 
Other operations203,374 8 (7,615)195,767 
Affiliate revenue5,641 113,623 (119,264)— 
Electric customer credits(40,634)— — (40,634)
Operating revenue, net$1,768,856 $103,951 $(126,878)$1,745,929 
Depreciation and amortization$229,936 $21,495 
(1)
$— $251,431 
Interest income$3,309 $125 $(122)$3,312 
Interest charges$73,893 $60,564 $(121)$134,336 
Federal and state income tax expense (benefit)$32,930 $(19,819)$— $13,111 
Net income (loss)$249,720 $(54,754)$— $194,966 
Additions to property, plant, and equipment$310,038 $1,103 $— $311,141 
Equity investment in investee$2,072 $(46,901)$46,901 $2,072 
Goodwill$1,490,797 $— $— $1,490,797 
Total segment assets$7,724,388 $619,101 $(218,471)$8,125,018 
(1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

FOR THE YEAR ENDED DEC. 31, 2020
(THOUSANDS)CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$1,015,018 $365,555 $1,380,573 
Other operations65,237 121,747 186,984 
Affiliate revenue5,156 204 5,360 
Electric customer credits(53,119)(153)(53,272)
Operating revenue, net$1,032,292 $487,353 $1,519,645 
Net income$96,655 $89,492 $186,147 
Add: Depreciation and amortization166,987 47,183 
(1)
214,170 
Less: Interest income3,362 273 3,635 
Add: Interest charges73,985 (750)73,235 
Add: Federal and state income tax expense26,799 29,080 55,879 
EBITDA$361,064 $164,732 $525,796 
Additions to property, plant, and equipment$377,044 $8,920 $385,964 
Equity investment in investee$9,072 $— $9,072 
Goodwill$1,490,797 $— $1,490,797 
Total segment assets$6,256,944 $1,029,812 $7,286,756 
(1) Includes $12.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(9.2) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

FOR THE YEAR ENDED DEC. 31, 2020
(THOUSANDS)TOTAL SEGMENTSOTHERELIMINATIONSTOTAL SEGMENTS
Revenue   
Electric operations$1,380,573 $(9,680)$— $1,370,893 
Other operations186,984 3 (6,463)180,524 
Affiliate revenue5,360 129,126 (134,486)— 
Electric customer credits(53,272)— 1 (53,271)
Operating revenue, net$1,519,645 $119,449 $(140,948)$1,498,146 
Depreciation and amortization$214,170 $18,059 
(1)
$— $232,229 
Interest income$3,635 $412 $(99)$3,948 
Interest charges$73,235 $64,728 $(99)$137,864 
Federal and state income tax expense (benefit)$55,879 $(20,160)$(1)$35,718 
Net income (loss)$186,147 $(63,848)$1 $122,300 
Additions to property, plant, and equipment$385,964 $3,051 $— $389,015 
Equity investment in investee$9,072 $— $— $9,072 
Goodwill$1,490,797 $— $— $1,490,797 
Total segment assets$7,286,756 $595,217 $(156,404)$7,725,569 
(1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.
FOR THE YEAR ENDED DEC. 31, 2019
(THOUSANDS)CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue 
Electric operations$1,130,928 $375,489 $1,506,417 
Other operations72,833 117,468 190,301 
Affiliate revenue3,125 108 3,233 
Electric customer credits(38,516)(1,447)(39,963)
Operating revenue, net$1,168,370 $491,618 $1,659,988 
Net income$148,262 $69,411 $217,673 
Add: Depreciation and amortization172,471 38,465 
(1)
210,936 
Less: Interest income4,744 987 5,731 
Add: Interest charges71,279 35 71,314 
Add: Federal and state income tax expense45,452 22,479 67,931 
EBITDA$432,720 $129,403 $562,123 
Additions to property, plant, and equipment$298,565 $9,174 $307,739 
Equity investment in investee$17,072 $— $17,072 
Goodwill$1,490,797 $— $1,490,797 
Total segment assets$5,967,327 $1,011,591 $6,978,918 
(1)Includes $11.4 million of amortization of intangible assets and liabilities related to wholesale power supply agreements and $(8.4) million of deferred lease revenue amortization as a result of the Cleco Cajun Transaction.

FOR THE YEAR ENDED DEC. 31, 2019
(THOUSANDS)TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue   
Electric operations$1,506,417 $(9,680)$(1)$1,496,736 
Other operations190,301 2 (7,471)182,832 
Affiliate revenue3,233 109,067 (112,300)— 
Electric customer credits(39,963)— — (39,963)
Operating revenue, net$1,659,988 $99,389 $(119,772)$1,639,605 
Depreciation and amortization$210,936 $17,985 
(1)
$— $228,921 
Interest income$5,731 $974 $(615)$6,090 
Interest charges$71,314 $70,611 $(616)$141,309 
Federal and state income tax expense (benefit)$67,931 $(24,766)$— $43,165 
Net income (loss)$217,673 $(65,009)$1 $152,665 
Additions to property, plant, and equipment$307,739 $655 $— $308,394 
Equity investment in investee$17,072 $— $— $17,072 
Goodwill$1,490,797 $— $— $1,490,797 
Total segment assets$6,978,918 $546,096 $(48,716)$7,476,298 
(1) Includes $9.7 million of amortization of intangible assets related to Cleco Power’s wholesale power supply agreements as a result of the 2016 Merger.

(THOUSANDS)202120202019
Net income$194,966 $122,300 $152,665 
Add: Depreciation and amortization251,431 232,229 

228,921 
Less: Interest income3,312 3,948 6,090 
Add: Interest charges134,336 137,864 141,309 
Add: Federal and state income tax expense13,111 35,718 43,165 
(Less) add: Other corporate costs and noncash items (1)
(7,362)1,633 2,153 
Total segment EBITDA$583,170 $525,796 $562,123 
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.

Cleco Power
Cleco Power is a vertically integrated, regulated electric utility operating within Louisiana and Mississippi and is viewed as one unit by management. Discrete financial reports are prepared only at the company level.