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Disclosures about Segments
 6 Months Ended
Jun. 30, 2022
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 June 30,
2022 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$368,614 $126,089 $494,703 
Other operations18,686 36,712 55,398 
Affiliate revenue1,628 — 1,628 
Electric customer credits(129)— (129)
Operating revenue, net$388,799 $162,801 $551,600 
Net income (loss)$54,705 $(932)$53,773 
Add: Depreciation and amortization44,299 23,219 
(1)
67,518 
Less: Interest income1,035 176 1,211 
Add: Interest charges21,305 43 21,348 
Add: Federal and state income tax expense (benefit)3,214 (966)2,248 
EBITDA$122,488 $21,188 $143,676 
(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.

2022 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$494,703 $(2,420)$— $492,283 
Other operations55,398 2 (2,136)53,264 
Affiliate revenue1,628 25,752 (27,380)— 
Electric customer credits(129)— — (129)
Operating revenue, net$551,600 $23,334 $(29,516)$545,418 
Depreciation and amortization$67,518 $4,373 
(1)
$1 $71,892 
Interest income$1,211 $53 $(23)$1,241 
Interest charges$21,348 $15,081 $(22)$36,407 
Federal and state income tax expense (benefit)$2,248 $27,280 $(1)$29,527 
Net income (loss)$53,773 $(52,409)$(1)$1,363 
(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.
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 expense8,956 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 expense (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.

Segment Information for the Six Months Ended June 30,
2022 (THOUSANDS)
CLECO POWERCLECO CAJUNTOTAL SEGMENTS
Revenue  
Electric operations$664,711 $229,722 $894,433 
Other operations37,771 72,324 110,095 
Affiliate revenue3,087 — 3,087 
Electric customer credits(265)— (265)
Operating revenue, net$705,304 $302,046 $1,007,350 
Net income$93,729 $92,449 $186,178 
Add: Depreciation and amortization89,538 46,398 
(2)
135,936 
Less: Interest income1,775 188 1,963 
Add: Interest charges40,108 35 40,143 
Add: Federal and state income tax expense3,938 32,674 36,612 
EBITDA$225,538 $171,368 $396,906 
Additions to property, plant, and equipment$98,162 $2,839 $101,001 
Equity investment in investees (1)
$2,072 $— $2,072 
Goodwill (1)
$1,490,797 $— $1,490,797 
Total segment assets (1)
$6,934,909 $1,143,090 $8,077,999 
(1) Balances as of June 30, 2022.
(2) Includes $7.2 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.
2022 (THOUSANDS)
TOTAL SEGMENTSOTHERELIMINATIONSTOTAL
Revenue
Electric operations$894,433 $(4,840)$(1)$889,592 
Other operations110,095 3 (4,827)105,271 
Affiliate revenue3,087 53,145 (56,232)— 
Electric customer credits(265)— — (265)
Operating revenue, net$1,007,350 $48,308 $(61,060)$994,598 
Depreciation and amortization$135,936 $8,752 
(2)
$1 $144,689 
Interest income$1,963 $83 $(49)$1,997 
Interest charges$40,143 $29,834 $(50)$69,927 
Federal and state income tax expense (benefit)$36,612 $(12,672)$— $23,940 
Net income (loss)$186,178 $(29,070)$(1)$157,107 
Additions to property, plant, and equipment$101,001 $672 $— $101,673 
Equity investment in investees (1)
$2,072 $(185,901)$185,901 $2,072 
Goodwill (1)
$1,490,797 $— $— $1,490,797 
Total segment assets (1)
$8,077,999 $373,804 $10,518 $8,462,321 
(1) Balances as of June 30, 2022.
(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.
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$132,194 $4,882 $137,076 
Equity investment in investees (1)
$2,072 $— $2,072 
Goodwill (1)
$1,490,797 $— $1,490,797 
Total segment assets (1)
$6,620,298 $1,104,090 $7,724,388 
(1) Balances as of December 31, 2021.
(2) Includes $6.4 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.
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$137,076 $1,440 $— $138,516 
Equity investment in investees (1)
$2,072 $(46,901)$46,901 $2,072 
Goodwill (1)
$1,490,797 $— $— $1,490,797 
Total segment assets (1)
$7,724,388 $619,101 $(218,471)$8,125,018 
(1) Balances as of December 31, 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.
FOR THE THREE MONTHS ENDED JUNE 30,FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)2022202120222021
Net income$1,363 $78,822 $157,107 $99,149 
Add: Depreciation and amortization71,892 57,699 144,689 115,862 
Less: Interest income1,241 829 1,997 1,475 
Add: Interest charges36,407 33,291 69,927 67,183 
Add: Federal and state income tax expense 29,527 9,837 23,940 416 
Add: Other corporate costs and noncash items (1)
5,728 (1,385)3,240 (4,331)
Total segment EBITDA$143,676 $177,435 $396,906 $276,804 
(1) Adjustments made for Other and Elimination totals not allocated to total segment EBITDA.