Louisiana (State or other jurisdiction of incorporation or organization) | 72-1445282 (I.R.S. Employer Identification No.) | |
2030 Donahue Ferry Road, Pineville, Louisiana (Address of principal executive offices) | 71360-5226 (Zip Code) | |
Registrant’s telephone number, including area code: (318) 484-7400 | ||
Securities registered pursuant to Section 12(b) of the Act: | ||
Securities registered pursuant to Section 12(g) of the Act: None | ||
Louisiana (State or other jurisdiction of incorporation or organization) | 72-0244480 (I.R.S. Employer Identification No.) | |
2030 Donahue Ferry Road, Pineville, Louisiana (Address of principal executive offices) | 71360-5226 (Zip Code) | |
Registrant’s telephone number, including area code: (318) 484-7400 | ||
Securities registered pursuant to Section 12(b) of the Act: | ||
Securities registered pursuant to Section 12(g) of the Act: | ||
Title of each class | ||
Membership Interests | ||
Cleco Power LLC, a wholly owned subsidiary of Cleco | ||
Indicate by check mark if Cleco | ||
Indicate by check mark if Cleco Power LLC is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x | ||
Indicate by check mark if the Registrants are not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x | ||
Indicate by check mark whether the Registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past 90 days. Yes x No o | ||
Indicate by check mark whether the Registrants have submitted electronically and posted on their corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrants were required to submit and post such files). Yes x No o | ||
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of each of the Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x | ||
Indicate by check mark whether Cleco | ||
Large accelerated filer o Accelerated filer o Non-accelerated filer x (Do not check if a smaller reporting company) Smaller reporting company o Emerging growth company o If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revise accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | ||
Indicate by check mark whether Cleco Power LLC is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer o Accelerated filer o Non-accelerated filer x (Do not check if a smaller reporting company) Smaller reporting company o Emerging growth company o If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revise accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | ||
Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act) Yes o No x |
CLECO | ||
CLECO POWER |
TABLE OF CONTENTS | ||
PAGE | ||
ITEM 4. | ||
ITEM 16. | ||
CLECO | ||
CLECO POWER |
GLOSSARY OF TERMS |
ABBREVIATION OR ACRONYM | DEFINITION |
401(k) Plan | Cleco Power 401(k) Savings and Investment Plan |
ABR | Alternate Base Rate which is the greater of the prime rate, the federal funds effective rate plus 0.50%, or |
Acadia | Acadia Power Partners, LLC, previously a wholly owned subsidiary of Midstream. Acadia Power Partners, LLC was dissolved effective August 29, 2014. |
Acadia Unit 1 | Cleco Power’s 580-MW, combined cycle power plant located at the Acadia Power Station in Eunice, Louisiana |
Acadia Unit 2 | Entergy Louisiana’s 580-MW, combined cycle power plant located at the Acadia Power Station in Eunice, Louisiana, which is operated by Cleco Power |
AFUDC | Allowance for Funds Used During Construction |
ALJ | Administrative Law Judge |
Amended Lignite Mining Agreement | Amended and restated lignite mining agreement effective December 29, 2009 |
AMI | Advanced Metering Infrastructure |
AOCI | Accumulated Other Comprehensive Income (Loss) |
ARO | Asset Retirement Obligation |
ARRA | American Recovery and Reinvestment Act of 2009 |
Attala | Attala Transmission LLC, a wholly owned subsidiary of Cleco Holdings |
bcIMC | British Columbia Investment Management Corporation |
Brame Energy Center | A facility consisting of Nesbitt Unit 1, Rodemacher Unit 2, and Madison Unit 3 |
CAA | Clean Air Act |
CCR | Coal combustion by-products or residual |
Cleco | Cleco Holdings and its subsidiaries |
Cleco Corporation | Pre-merger entity that was converted to a limited liability company and changed its name to Cleco Corporate Holdings LLC on April 13, 2016 |
Cleco Energy | Cleco Energy LLC, a wholly owned subsidiary of Cleco Holdings |
Cleco Group | Cleco Group LLC, a wholly owned subsidiary of Cleco Partners |
Cleco Holdings | Cleco Corporate Holdings LLC, a wholly owned subsidiary of Cleco Group |
Cleco Katrina/Rita | Cleco Katrina/Rita Hurricane Recovery Funding LLC, a wholly owned subsidiary of Cleco Power |
Cleco Partners | Cleco Partners L.P., a Delaware limited partnership that |
Cleco Power | Cleco Power LLC and its subsidiaries, a wholly owned subsidiary of Cleco Holdings |
CO2 | Carbon dioxide |
Cottonwood Energy | Cottonwood Energy Company LP, an indirect subsidiary of NRG South Central. Upon closing of the Purchase and Sale Agreement, Cottonwood Energy will become an indirect subsidiary of Cleco Holdings. |
Coughlin | Cleco Power’s 775-MW, combined-cycle power plant located in St. Landry, |
CPP | Clean Power |
CSAPR | Cross-State Air Pollution Rule |
DHLC | Dolet Hills Lignite Company, LLC, a wholly owned subsidiary of SWEPCO |
Diversified Lands | Diversified Lands LLC, a wholly owned subsidiary of Cleco |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 |
DOE | U.S. Department of Energy |
Dolet Hills | A facility consisting of Dolet Hills Power Station, the Dolet Hills mine, and the Oxbow mine |
Dolet Hills Power Station | A 650-MW generating unit at Cleco Power’s plant site in Mansfield, Louisiana. Cleco Power has a 50% ownership interest in the capacity of Dolet Hills. |
EAC | Environmental Adjustment Clause |
EBITDA | Earnings before interest, taxes, depreciation, and amortization |
EGU | Electric Generating Unit |
Entergy Gulf States | Entergy Gulf States Louisiana, |
Entergy Louisiana | Entergy Louisiana, LLC |
EPA | U.S. Environmental Protection Agency |
ERO | Electric Reliability Organization |
ESPP | |
Evangeline | Cleco Evangeline LLC, a wholly owned subsidiary of Midstream |
FAC | Fuel Adjustment Clause |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
FTR | Financial Transmission Right |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
FRP | Formula Rate Plan |
GAAP | Generally Accepted Accounting Principles in the U.S. |
IRS | Internal Revenue Service |
ISO | Independent System Operator |
kWh | Kilowatt-hour(s) |
LDEQ | Louisiana Department of Environmental Quality |
LED | Louisiana Economic Development |
LIBOR | London |
LMP | Locational Marginal Price |
LPSC | Louisiana Public Service Commission |
LTIP | |
Madison Unit 3 | A 641-MW generating unit at Cleco Power’s plant site in Boyce, Louisiana |
MATS | Mercury and Air Toxics Standards |
Merger | Merger of Merger Sub with and into Cleco Corporation pursuant to the terms of the Merger Agreement which was completed on April 13, 2016 |
Merger Agreement | Agreement and Plan of Merger, dated as of October 17, 2014, by and among Cleco Partners, Merger Sub, and Cleco Corporation |
Merger Commitments | Cleco Partners’, Cleco Group’s, Cleco Holdings’, and Cleco Power’s 77 commitments to the LPSC as defined in Docket No. U-33434 of which a performance report must be filed annually by October 31 for the 12 months ending June 30 |
Merger Sub | Cleco |
Midstream | Cleco Midstream Resources LLC, a wholly owned subsidiary of Cleco |
MIP | Macquarie Infrastructure Partners Inc. |
MIRA | Macquarie Infrastructure and Real Assets Inc. |
MISO | Midcontinent Independent System Operator, Inc. |
MMBtu | Million British thermal units |
Moody’s | Moody’s Investors Service, a credit rating agency |
MW | Megawatt(s) |
MWh | Megawatt-hour(s) |
N/A | Not Applicable |
NAAQS | National Ambient Air Quality Standards |
NERC | North American Electric Reliability Corporation |
NMTC | New Markets Tax Credit |
NMTC Fund | USB NMTC Fund 2008-1 LLC was formed to invest in projects qualifying for New Markets Tax Credits and Solar Projects |
NOAA | National Oceanic and Atmospheric Administration |
NO2 | Nitrogen dioxide |
NOx | Nitrogen |
NRG South Central | NRG South Central Generating LLC |
Oxbow | Oxbow Lignite Company, LLC, 50% owned by Cleco Power and 50% owned by SWEPCO |
PCB | Polychlorinated biphenyl |
Perryville | Perryville Energy Partners, L.L.C., a wholly owned subsidiary of Cleco |
PPA | Power Purchase Agreement |
PPACA | Patient Protection and Affordable Care Act, as amended |
ppb | Parts per billion |
Purchase and Sale Agreement | Purchase and Sale Agreement, dated as of February 6, 2018, by and among NRG Energy, NRG South Central, and Cleco Energy |
RE | Regional Entity |
Registrant(s) | Cleco |
Rodemacher Unit 2 | A 523-MW generating unit at Cleco Power’s plant site in Boyce, Louisiana. Cleco Power has a 30% ownership interest in the capacity of Rodemacher Unit 2. |
ROE | Return on Equity |
RTO | Regional Transmission Organization |
S&P | Standard & Poor’s Ratings Services, a credit rating agency |
SEC | U.S. Securities and Exchange Commission |
Securities Act | Securities Act of 1933, as amended |
SERP | |
SO2 | Sulfur dioxide |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ABBREVIATION OR ACRONYM | DEFINITION |
SPP | Southwest Power Pool |
SPP RE | Southwest Power Pool Regional Entity |
SSR | System Support Resource |
START | Strategic Alignment and Real-Time Transformation |
STIP | Short-Term Incentive Plan |
Successor | Post-merger activity of Cleco. Cleco has accounted for the merger transaction by applying the acquisition method of accounting. The successor period is not comparable to the predecessor period. |
Support Group | Cleco Support Group LLC, a wholly owned subsidiary of Cleco |
SWEPCO | Southwestern Electric Power Company, an electric utility subsidiary of American Electric Power Company, Inc. |
TCJA | Federal Tax Cuts and Jobs Act of 2017 |
Teche Unit 3 | A 359-MW generating unit at Cleco Power’s plant site in Baldwin, Louisiana |
VaR | Value-at-Risk |
CLECO | ||
CLECO POWER |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER |
PART I |
ITEM 1. BUSINESS |
GENERAL |
CLECO | ||
CLECO POWER |
OPERATIONS |
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Revenue | |||||||||||
Electric operations | $ | 1,108,389 | $ | 1,091,229 | $ | 1,142,389 | |||||
Other operations | 77,522 | 68,573 | 67,109 | ||||||||
Electric customer credits | (1,566 | ) | (1,513 | ) | (2,173 | ) | |||||
Affiliate revenue | 851 | 884 | 1,142 | ||||||||
Operating revenue, net | $ | 1,185,196 | $ | 1,159,173 | $ | 1,208,467 | |||||
Depreciation and amortization | $ | 157,999 | $ | 146,142 | $ | 147,839 | |||||
Interest charges | $ | 69,362 | $ | 76,446 | $ | 76,560 | |||||
Interest income | $ | 1,283 | $ | 860 | $ | 725 | |||||
Federal and state income tax expense | $ | 67,331 | $ | 18,369 | $ | 79,294 | |||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
Additions to property, plant, and equipment | $ | 235,252 | $ | 186,143 | $ | 156,357 | |||||
Equity investment in investee | $ | 18,172 | $ | 18,672 | $ | 16,822 | |||||
Goodwill | $ | 1,490,797 | $ | 1,490,797 | $ | — | |||||
Segment assets | $ | 5,679,538 | $ | 5,758,245 | $ | 4,233,337 |
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Revenue | |||||||||||
Electric operations | $ | 1,142,389 | $ | 1,225,960 | $ | 1,047,548 | |||||
Other operations | 67,109 | 64,893 | 48,909 | ||||||||
Electric customer credits | (2,173 | ) | (23,530 | ) | (1,836 | ) | |||||
Affiliate revenue | 1,142 | 1,326 | 1,338 | ||||||||
Operating revenue, net | $ | 1,208,467 | $ | 1,268,649 | $ | 1,095,959 | |||||
Depreciation and amortization | $ | 147,839 | $ | 144,026 | $ | 135,717 | |||||
Interest charges | $ | 76,560 | $ | 74,673 | $ | 82,677 | |||||
Interest income | $ | 725 | $ | 1,707 | $ | 1,100 | |||||
Federal and state income taxes | $ | 79,294 | $ | 76,974 | $ | 79,381 | |||||
Net income | $ | 141,350 | $ | 154,316 | $ | 150,410 | |||||
Additions to property, plant, and equipment | $ | 156,357 | $ | 206,607 | $ | 184,684 | |||||
Equity investment in investee | $ | 16,822 | $ | 14,532 | $ | 14,532 | |||||
Segment assets | $ | 4,233,337 | $ | 4,232,942 | $ | 3,932,717 |
GENERATING STATION | YEAR OF INITIAL OPERATION | NAMEPLATE CAPACITY (MW) | (1) | NET CAPACITY (MW) | (2) | PRIMARY FUEL USED FOR GENERATION | GENERATION TYPE | YEAR OF INITIAL OPERATION | NAMEPLATE CAPACITY (MW) | (1) | NET CAPACITY (MW) | (2) | PRIMARY FUEL USED FOR GENERATION | GENERATION TYPE | |||||
Brame Energy Center | |||||||||||||||||||
Nesbitt Unit 1 | 1975 | 440 | 419 | natural gas | steam | 1975 | 440 | 422 | natural gas | steam | |||||||||
Rodemacher Unit 2 | 1982 | 157 | (3) | 149 | (3) | coal | steam | 1982 | 157 | (3) | 148 | (3) | coal | steam | |||||
Madison Unit 3 | 2010 | 641 | 631 | petroleum coke/coal | steam | 2010 | 641 | 630 | petroleum coke/coal | steam | |||||||||
Acadia Unit 1 | 2002 | 580 | 566 | natural gas | combined cycle | 2002 | 580 | 559 | natural gas | combined cycle | |||||||||
Coughlin Unit 6 | 2000 | 264 | 242 | natural gas | combined cycle | 2000 | 264 | 252 | natural gas | combined cycle | |||||||||
Coughlin Unit 7 | 2000 | 511 | 481 | natural gas | combined cycle | 2000 | 511 | 480 | natural gas | combined cycle | |||||||||
Teche Unit 1 | 1953 | 23 | 15 | natural gas | steam | ||||||||||||||
Teche Unit 3 | 1971 | 359 | 331 | natural gas | steam | 1971 | 359 | 335 | natural gas | steam | |||||||||
Teche Unit 4 | 2011 | 33 | 35 | natural gas | combustion | 2011 | 33 | 34 | natural gas | combustion | |||||||||
Dolet Hills Power Station | 1986 | 325 | (4) | 321 | (4) | lignite | steam | 1986 | 325 | (4) | 321 | (4) | lignite | steam | |||||
Total generating capability | 3,333 | 3,190 | 3,310 | 3,181 |
PERIOD | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | |||||||
YEAR | THOUSAND MWh | PERCENT OF TOTAL ENERGY REQUIREMENTS | |||||||
2017 | 10,864 | 91.1 | % | ||||||
2016 | 12,759 | 103.6 | % | ||||||
2015 | 12,564 | 100.2 | 12,564 | 100.2 | % | ||||
2014 | 9,858 | 74.9 | 9,858 | 74.9 | % | ||||
2013 | 9,736 | 83.8 | 9,736 | 83.8 | % | ||||
2012 | 9,143 | 81.3 | |||||||
2011 | 10,025 | 86.5 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
LIGNITE | COAL | NATURAL GAS | BIOMASS | PETROLEUM COKE | LIGNITE | COAL | NATURAL GAS | PETROLEUM COKE | WEIGHTED AVERAGE COST PER MWh | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
YEAR | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | WEIGHTED AVERAGE COST PER MWh | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | COST PER MWh | PERCENT OF GENERATION | |||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 44.70 | 8.9 | % | $ | 24.75 | 12.4 | % | $ | 27.19 | 51.3 | % | $ | 22.50 | 27.4 | % | $ | 27.16 | ||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 50.39 | 13.0 | % | $ | 28.13 | 9.3 | % | $ | 20.84 | 52.9 | % | $ | 18.77 | 24.8 | % | $ | 24.86 | ||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 46.87 | 16.9 | $ | 28.68 | 9.7 | $ | 21.37 | 50.6 | $ | — | — | $ | 19.80 | 22.8 | $ | 26.04 | $ | 46.87 | 16.9 | % | $ | 28.68 | 9.7 | % | $ | 21.37 | 50.6 | % | $ | 19.80 | 22.8 | % | $ | 26.04 | |||||||||||||||||||||||||||||
2014 | $ | 44.79 | 14.6 | $ | 27.34 | 15.6 | $ | 37.00 | 35.0 | $ | — | — | $ | 21.52 | 34.8 | $ | 31.19 | $ | 44.79 | 14.6 | % | $ | 27.34 | 15.6 | % | $ | 37.00 | 35.0 | % | $ | 21.52 | 34.8 | % | $ | 31.19 | |||||||||||||||||||||||||||||
2013 | $ | 42.44 | 15.6 | $ | 29.42 | 18.2 | $ | 34.60 | 34.4 | $ | — | — | $ | 21.54 | 31.8 | $ | 30.72 | $ | 42.44 | 15.6 | % | $ | 29.42 | 18.2 | % | $ | 34.60 | 34.4 | % | $ | 21.54 | 31.8 | % | $ | 30.72 | |||||||||||||||||||||||||||||
2012 | $ | 36.36 | 25.2 | $ | 33.03 | 17.0 | $ | 27.81 | 45.8 | $ | 17.74 | * | $ | 23.54 | 12.0 | $ | 30.37 | |||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 30.99 | 23.6 | $ | 29.48 | 15.6 | $ | 46.39 | 33.8 | $ | 65.06 | * | $ | 31.70 | 27.0 | $ | 36.12 | |||||||||||||||||||||||||||||||||||||||||||||||
* Not meaningful |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
NATURAL GAS SUPPLIER | 2015 PURCHASES (MMBtu) | AVERAGE AMOUNT PURCHASED PER DAY (MMBtu) | PERCENT OF TOTAL NATURAL GAS USED | 2017 PURCHASES (MMBtu) | AVERAGE AMOUNT PURCHASED PER DAY (MMBtu) | PERCENT OF TOTAL NATURAL GAS USED | ||||||||||
South Jersey Resources Group | 16,262,430 | 44,555 | 32.7 | % | ||||||||||||
Anadarko Energy Service Company | 8,085,575 | 22,152 | 16.3 | % | ||||||||||||
Tenaska Marketing Ventures | 5,769,663 | 15,807 | 11.6 | % | 7,774,729 | 21,301 | 27.8 | % | ||||||||
ENSTOR Energy Services | 6,620,134 | 18,137 | 23.7 | % | ||||||||||||
DTE Energy Trading, Inc. | 5,176,000 | 14,181 | 18.5 | % | ||||||||||||
CIMA Energy Ltd | 2,150,700 | 5,892 | 7.7 | % | ||||||||||||
Shell Energy North America | 5,190,717 | 14,221 | 10.4 | % | 1,994,199 | 5,464 | 7.1 | % | ||||||||
Iberdrola Renewables | 4,183,152 | 11,461 | 8.4 | % | ||||||||||||
Range Resources-Appalachia, LLC | 3,263,850 | 8,942 | 6.5 | % | ||||||||||||
BP Energy Company | 2,626,100 | 7,195 | 5.3 | % | 1,527,700 | 4,185 | 5.5 | % | ||||||||
Sequent Energy Management | 583,395 | 1,598 | 2.1 | % | ||||||||||||
Others | 4,354,696 | 11,931 | 8.8 | % | 2,123,506 | 5,818 | 7.6 | % | ||||||||
Total | 49,736,183 | 136,264 | 100.0 | % | 27,950,363 | 76,576 | 100.0 | % |
REGULATORY MATTERS, INDUSTRY DEVELOPMENTS, AND FRANCHISES |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
DATE | CITY/TOWN/VILLAGE | TERM | NUMBER OF CUSTOMERS | |||
May | 10 years(1) | 219 | ||||
July 2016 | McNary | 30 years | ||||
33 years | ||||||
July | ||||||
New Llano(2) | ||||||
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ENVIRONMENTAL MATTERS |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 1A. RISK FACTORS |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 1B. UNRESOLVED STAFF COMMENTS |
ITEM 2. PROPERTIES |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 3. LEGAL PROCEEDINGS |
CLECO |
CLECO POWER |
ITEM 4. MINE SAFETY DISCLOSURES |
CLECO | ||
CLECO POWER |
PART II |
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND |
CLECO |
CLECO POWER |
ITEM 6. SELECTED FINANCIAL DATA |
CLECO |
Five-Year Selected Financial Data | |||||||||||||||||||||||||||||||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||||||||||||||||||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AND PERCENTAGES) | 2015 | 2014 | 2013 | 2012 | 2011 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | FOR THE YEAR ENDED DEC. 31, 2014 | FOR THE YEAR ENDED DEC. 31, 2013 | ||||||||||||||||||||||||||||||||
Operating revenue, net (excluding intercompany revenue) | |||||||||||||||||||||||||||||||||||||||||||
Cleco Power | $ | 1,207,325 | $ | 1,267,323 | $ | 1,094,621 | $ | 991,695 | $ | 1,096,093 | $ | 1,184,345 | $ | 859,006 | $ | 299,283 | $ | 1,207,325 | $ | 1,267,323 | $ | 1,094,621 | |||||||||||||||||||||
Midstream (1) | — | 5,467 | 31,672 | 25,562 | 19,013 | — | — | — | — | 5,467 | 31,672 | ||||||||||||||||||||||||||||||||
Other | 2,077 | (3,305 | ) | (29,579 | ) | (23,560 | ) | 2,207 | (8,699 | ) | (6,001 | ) | 587 | 2,077 | (3,305 | ) | (29,579 | ) | |||||||||||||||||||||||||
Total | $ | 1,209,402 | $ | 1,269,485 | $ | 1,096,714 | $ | 993,697 | $ | 1,117,313 | $ | 1,175,646 | $ | 853,005 | $ | 299,870 | $ | 1,209,402 | $ | 1,269,485 | $ | 1,096,714 | |||||||||||||||||||||
Income before income taxes | $ | 211,373 | $ | 221,855 | $ | 240,260 | $ | 228,975 | $ | 298,745 | |||||||||||||||||||||||||||||||||
Net income applicable to common stock | $ | 133,669 | $ | 154,739 | $ | 160,685 | $ | 163,648 | $ | 195,710 | |||||||||||||||||||||||||||||||||
Basic earnings per average common share outstanding | $ | 2.21 | $ | 2.56 | $ | 2.66 | $ | 2.71 | $ | 3.24 | |||||||||||||||||||||||||||||||||
Diluted earnings per average common share outstanding | $ | 2.20 | $ | 2.55 | $ | 2.65 | $ | 2.70 | $ | 3.22 | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 145,159 | $ | (46,935 | ) | $ | (492 | ) | $ | 211,373 | $ | 221,855 | $ | 240,260 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | $ | 154,739 | $ | 160,685 | |||||||||||||||||||||||||||||
Capitalization | |||||||||||||||||||||||||||||||||||||||||||
Common shareholders’ equity | 56.92 | % | 54.86 | % | 54.89 | % | 54.67 | % | 51.80 | % | |||||||||||||||||||||||||||||||||
Member’s equity/Common shareholders’ equity | 42.50 | % | 42.77 | % | 56.92 | % | 54.86 | % | 54.89 | % | |||||||||||||||||||||||||||||||||
Long-term debt (2) | 43.08 | % | 45.14 | % | 45.11 | % | 45.33 | % | 48.20 | % | 57.50 | % | 57.23 | % | 43.08 | % | 45.14 | % | 45.11 | % | |||||||||||||||||||||||
Common shareholders’ equity | $ | 1,674,841 | $ | 1,627,270 | $ | 1,586,197 | $ | 1,499,213 | $ | 1,419,857 | |||||||||||||||||||||||||||||||||
Member’s equity/Common shareholders’ equity | $ | 2,096,357 | $ | 2,046,763 | $ | 1,674,841 | $ | 1,627,270 | $ | 1,586,197 | |||||||||||||||||||||||||||||||||
Long-term debt, net (2) | $ | 1,267,703 | $ | 1,338,998 | (3) | $ | 1,303,786 | (3) | $ | 1,243,266 | (3) | $ | 1,321,346 | (3) | $ | 2,836,105 | $ | 2,738,571 | $ | 1,267,703 | $ | 1,338,998 | $ | 1,303,786 | |||||||||||||||||||
Total assets | $ | 4,323,354 | $ | 4,368,418 | $ | 4,203,548 | $ | 4,133,357 | $ | 4,034,492 | $ | 6,278,382 | $ | 6,343,144 | $ | 4,323,354 | $ | 4,368,418 | $ | 4,203,548 | |||||||||||||||||||||||
Cash dividends declared per common share | $ | 1.60 | $ | 1.5625 | $ | 1.425 | $ | 1.30 | $ | 1.1225 | N/A | N/A | $ | 0.40 | $ | 1.60 | $ | 1.5625 | $ | 1.425 | |||||||||||||||||||||||
(1) Effective March 15, 2014, upon the transfer of Coughlin to Cleco Power, Midstream had minimal operations. (2) Long-term debt includes obligations for capital leases and excludes debt due within one year. (3) Amounts for 2011 through 2014 were adjusted to reflect 2015 accounting guidance that requires debt issuance costs to be presented as a direct deduction from the carrying value of the related debt. For more information, see Item 8, “Financial Statements and Supplementary Data — Notes to Financial Statements — Note 2 — Summary of Significant Accounting Policies — Recent Authoritative Guidance.” |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER |
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
OVERVIEW |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
RESULTS OF OPERATIONS |
CLECO | ||
CLECO POWER |
FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||||||
Cleco | Cleco | ||||||||||||||||||||||||
FAVORABLE/(UNFAVORABLE) | SUCCESSOR | PREDECESSOR | |||||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | VARIANCE | CHANGE | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | ||||||||||||||||||
Operating revenue, net | $ | 1,209,402 | $ | 1,269,485 | $ | (60,083 | ) | (4.7 | )% | $ | 1,175,646 | $ | 853,005 | $ | 299,870 | ||||||||||
Operating expenses | 922,063 | 983,453 | 61,390 | 6.2 | % | 921,357 | 816,714 | 279,507 | |||||||||||||||||
Operating income | $ | 287,339 | $ | 286,032 | $ | 1,307 | 0.5 | % | $ | 254,289 | $ | 36,291 | $ | 20,363 | |||||||||||
Allowance for equity funds used during construction | $ | 3,063 | $ | 5,380 | $ | (2,317 | ) | (43.1 | )% | $ | 8,320 | $ | 3,735 | $ | 723 | ||||||||||
Other income | $ | 1,443 | $ | 4,790 | $ | (3,347 | ) | (69.9 | )% | ||||||||||||||||
Other expense | $ | 3,368 | $ | 2,509 | $ | (859 | ) | (34.2 | )% | ||||||||||||||||
Other income, net | $ | 4,039 | $ | 1,965 | $ | 280 | |||||||||||||||||||
Interest income | $ | 1,424 | $ | 840 | $ | 265 | |||||||||||||||||||
Interest charges | $ | 77,991 | $ | 73,606 | $ | (4,385 | ) | (6.0 | )% | $ | 122,913 | $ | 89,766 | $ | 22,123 | ||||||||||
Federal and state income taxes | $ | 77,704 | $ | 67,116 | $ | (10,588 | ) | (15.8 | )% | ||||||||||||||||
Net income applicable to common stock | $ | 133,669 | $ | 154,739 | $ | (21,070 | ) | (13.6 | )% | ||||||||||||||||
Federal and state income tax expense (benefit) | $ | 7,079 | $ | (22,822 | ) | $ | 3,468 | ||||||||||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2017 | 2016 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 651,732 | $ | 660,974 | $ | (9,242 | ) | (1.4 | )% | |||||
Fuel cost recovery | 456,657 | 430,255 | 26,402 | 6.1 | % | |||||||||
Electric customer credits | (1,566 | ) | (1,513 | ) | (53 | ) | (3.5 | )% | ||||||
Other operations | 77,522 | 68,573 | 8,949 | 13.1 | % | |||||||||
Affiliate revenue | 851 | 884 | (33 | ) | (3.7 | )% | ||||||||
Operating revenue, net | $ | 1,185,196 | $ | 1,159,173 | $ | 26,023 | 2.2 | % | ||||||
Operating expenses | ||||||||||||||
Recoverable fuel and power purchased | 456,509 | 430,422 | (26,087 | ) | (6.1 | )% | ||||||||
Non-recoverable fuel and power purchased | 35,750 | 35,684 | (66 | ) | (0.2 | )% | ||||||||
Other operations | 123,192 | 125,892 | 2,700 | 2.1 | % | |||||||||
Maintenance | 87,574 | 93,340 | 5,766 | 6.2 | % | |||||||||
Depreciation and amortization | 157,999 | 146,142 | (11,857 | ) | (8.1 | )% | ||||||||
Taxes other than income taxes | 46,539 | 48,287 | 1,748 | 3.6 | % | |||||||||
Merger commitment costs | — | 151,501 | 151,501 | 100.0 | % | |||||||||
Gain on sale of asset | — | (1,095 | ) | (1,095 | ) | (100.0 | )% | |||||||
Total operating expenses | 907,563 | 1,030,173 | 122,610 | 11.9 | % | |||||||||
Operating income | $ | 277,633 | $ | 129,000 | $ | 148,633 | 115.2 | % | ||||||
Allowance for equity funds used during construction | $ | 8,320 | $ | 4,458 | $ | 3,862 | 86.6 | % | ||||||
Other income (expense), net | $ | 195 | $ | (375 | ) | $ | 570 | 152.0 | % | |||||
Interest charges | $ | 69,362 | $ | 76,446 | $ | 7,084 | 9.3 | % | ||||||
Federal and state income tax expense | $ | 67,331 | $ | 18,369 | $ | (48,962 | ) | (266.5 | )% | |||||
Net income | $ | 150,738 | $ | 39,128 | $ | 111,610 | 285.2 | % |
CLECO | ||
CLECO POWER |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2015 | 2014 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 670,530 | $ | 683,565 | $ | (13,035 | ) | (1.9 | )% | |||||
Fuel cost recovery | 471,859 | 542,395 | (70,536 | ) | (13.0 | )% | ||||||||
Electric customer credits | (2,173 | ) | (23,530 | ) | 21,357 | 90.8 | % | |||||||
Other operations | 67,109 | 64,893 | 2,216 | 3.4 | % | |||||||||
Affiliate revenue | 1,142 | 1,326 | (184 | ) | (13.9 | )% | ||||||||
Operating revenue, net | $ | 1,208,467 | $ | 1,268,649 | $ | (60,182 | ) | (4.7 | )% | |||||
Operating expenses | ||||||||||||||
Recoverable fuel and power purchased | 471,864 | 542,397 | 70,533 | 13.0 | % | |||||||||
Non-recoverable fuel and power purchased | 31,348 | 27,985 | (3,363 | ) | (12.0 | )% | ||||||||
Other operations | 128,697 | 116,664 | (12,033 | ) | (10.3 | )% | ||||||||
Maintenance | 87,416 | 96,054 | 8,638 | 9.0 | % | |||||||||
Depreciation and amortization | 147,839 | 144,026 | (3,813 | ) | (2.6 | )% | ||||||||
Taxes other than income taxes | 47,102 | 41,812 | (5,290 | ) | (12.7 | )% | ||||||||
Gain on sale of assets | — | (4 | ) | (4 | ) | (100.0 | )% | |||||||
Total operating expenses | 914,266 | 968,934 | 54,668 | 5.6 | % | |||||||||
Operating income | $ | 294,201 | $ | 299,715 | $ | (5,514 | ) | (1.8 | )% | |||||
Allowance for equity funds used during construction | $ | 3,063 | $ | 5,380 | $ | (2,317 | ) | (43.1 | )% | |||||
Interest charges | $ | 76,560 | $ | 74,673 | $ | (1,887 | ) | (2.5 | )% | |||||
Federal and state income taxes | $ | 79,294 | $ | 76,974 | $ | (2,320 | ) | (3.0 | )% | |||||
Net income | $ | 141,350 | $ | 154,316 | $ | (12,966 | ) | (8.4 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2017 | 2016 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,526 | 3,671 | (3.9 | )% | ||||
Commercial | 2,650 | 2,724 | (2.7 | )% | ||||
Industrial | 2,078 | 1,988 | 4.5 | % | ||||
Other retail | 131 | 133 | (1.5 | )% | ||||
Total retail | 8,385 | 8,516 | (1.5 | )% | ||||
Sales for resale | 2,959 | 3,143 | (5.9 | )% | ||||
Total retail and wholesale customer sales | 11,344 | 11,659 | (2.7 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2015 | 2014 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,789 | 3,783 | 0.2 | % | ||||
Commercial | 2,763 | 2,689 | 2.8 | % | ||||
Industrial | 1,927 | 2,212 | (12.9 | )% | ||||
Other retail | 134 | 130 | 3.1 | % | ||||
Total retail | 8,613 | 8,814 | (2.3 | )% | ||||
Sales for resale | 3,353 | 3,412 | (1.7 | )% | ||||
Unbilled | (95 | ) | 171 | (155.6 | )% | |||
Total retail and wholesale customer sales | 11,871 | 12,397 | (4.2 | )% |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||
FAVORABLE/ | FAVORABLE/ | |||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | (UNFAVORABLE) | 2017 | 2016 | (UNFAVORABLE) | ||||||||||||||
Electric sales | ||||||||||||||||||||
Residential | $ | 296,846 | $ | 293,871 | 1.0 | % | $ | 286,587 | $ | 292,397 | (2.0 | )% | ||||||||
Commercial | 191,202 | 188,012 | 1.7 | % | 188,431 | 191,440 | (1.6 | )% | ||||||||||||
Industrial | 84,988 | 86,823 | (2.1 | )% | 87,528 | 86,299 | 1.4 | % | ||||||||||||
Other retail | 10,558 | 10,215 | 3.4 | % | 10,592 | 10,589 | — | % | ||||||||||||
Surcharge | 21,597 | 15,833 | 36.4 | % | 20,965 | 21,175 | (1.0 | )% | ||||||||||||
Total retail | $ | 605,191 | $ | 594,754 | 1.8 | % | 594,103 | 601,900 | (1.3 | )% | ||||||||||
Sales for resale | 62,768 | 81,371 | (22.9 | )% | 57,629 | 59,074 | (2.4 | )% | ||||||||||||
Unbilled | 2,571 | 7,440 | (65.4 | )% | ||||||||||||||||
Total retail and wholesale customer sales | $ | 670,530 | $ | 683,565 | (1.9 | )% | ||||||||||||||
Total base revenue | $ | 651,732 | $ | 660,974 | (1.4 | )% |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||||||||
2015 CHANGE | 2017 CHANGE | |||||||||||||||||||||||||||
2015 | 2014 | NORMAL | PRIOR YEAR | NORMAL | 2017 | 2016 | NORMAL | PRIOR YEAR | NORMAL | |||||||||||||||||||
Cooling degree-days | 3,272 | 2,780 | 2,780 | 17.7 | % | 17.7 | % | 3,044 | 3,309 | 2,779 | (8.0 | )% | 9.5 | % | ||||||||||||||
Heating degree-days | 1,271 | 1,833 | 1,546 | (30.7 | )% | (17.8 | )% | 1,029 | 1,145 | 1,546 | (10.1 | )% | (33.4 | )% |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||
(THOUSANDS) | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | ||||||||
Operating revenue, net | $ | 853,005 | $ | 299,870 | $ | 1,209,402 | |||||
Operating expenses | 816,714 | 279,507 | 922,063 | ||||||||
Operating income | $ | 36,291 | $ | 20,363 | $ | 287,339 | |||||
Allowance for equity funds used during construction | $ | 3,735 | $ | 723 | $ | 3,063 | |||||
Other income (expense), net | $ | 1,965 | $ | 280 | $ | (1,933 | ) | ||||
Interest charges | $ | 89,766 | $ | 22,123 | $ | 77,991 | |||||
Federal and state income tax (benefit) expense | $ | (22,822 | ) | $ | 3,468 | $ | 77,704 | ||||
Net (loss) income | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 |
CLECO | ||
CLECO POWER |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2014 | 2013 | VARIANCE | CHANGE | ||||||||||
Operating revenue, net | $ | 1,269,485 | $ | 1,096,714 | $ | 172,771 | 15.8 | % | ||||||
Operating expenses | 983,453 | 788,382 | (195,071 | ) | (24.7 | )% | ||||||||
Operating income | $ | 286,032 | $ | 308,332 | $ | (22,300 | ) | (7.2 | )% | |||||
Allowance for other funds used during construction | $ | 5,380 | $ | 4,081 | $ | 1,299 | 31.8 | % | ||||||
Other income | $ | 4,790 | $ | 13,857 | $ | (9,067 | ) | (65.4 | )% | |||||
Interest charges | $ | 73,606 | $ | 84,254 | $ | 10,648 | 12.6 | % | ||||||
Federal and state income taxes | $ | 67,116 | $ | 79,575 | $ | 12,459 | 15.7 | % | ||||||
Net income applicable to common stock | $ | 154,739 | $ | 160,685 | $ | (5,946 | ) | (3.7 | )% |
Cleco Power | ||||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2016 | 2015 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 660,974 | $ | 670,530 | $ | (9,556 | ) | (1.4 | )% | |||||
Fuel cost recovery | 430,255 | 471,859 | (41,604 | ) | (8.8 | )% | ||||||||
Electric customer credits | (1,513 | ) | (2,173 | ) | 660 | 30.4 | % | |||||||
Other operations | 68,573 | 67,109 | 1,464 | 2.2 | % | |||||||||
Affiliate revenue | 884 | 1,142 | (258 | ) | (22.6 | )% | ||||||||
Operating revenue, net | $ | 1,159,173 | $ | 1,208,467 | $ | (49,294 | ) | (4.1 | )% | |||||
Operating expenses | ||||||||||||||
Recoverable fuel and power purchased | 430,422 | 471,864 | 41,442 | 8.8 | % | |||||||||
Non-recoverable fuel and power purchased | 35,684 | 31,348 | (4,336 | ) | (13.8 | )% | ||||||||
Other operations | 125,892 | 128,697 | 2,805 | 2.2 | % | |||||||||
Maintenance | 93,340 | 87,416 | (5,924 | ) | (6.8 | )% | ||||||||
Depreciation and amortization | 146,142 | 147,839 | 1,697 | 1.1 | % | |||||||||
Taxes other than income taxes | 48,287 | 47,102 | (1,185 | ) | (2.5 | )% | ||||||||
Merger commitment costs | 151,501 | — | (151,501 | ) | — | % | ||||||||
Gain on sale of asset | (1,095 | ) | — | 1,095 | — | % | ||||||||
Total operating expenses | 1,030,173 | 914,266 | (115,907 | ) | (12.7 | )% | ||||||||
Operating income | $ | 129,000 | $ | 294,201 | $ | (165,201 | ) | (56.2 | )% | |||||
Allowance for equity funds used during construction | $ | 4,458 | $ | 3,063 | $ | 1,395 | 45.5 | % | ||||||
Federal and state income tax expense | $ | 18,369 | $ | 79,294 | $ | 60,925 | 76.8 | % | ||||||
Net income | $ | 39,128 | $ | 141,350 | $ | (102,222 | ) | (72.3 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||
FAVORABLE/(UNFAVORABLE) | ||||||||||||||
(THOUSANDS) | 2014 | 2013 | VARIANCE | CHANGE | ||||||||||
Operating revenue | ||||||||||||||
Base | $ | 683,565 | $ | 654,015 | $ | 29,550 | 4.5 | % | ||||||
Fuel cost recovery | 542,395 | 393,533 | 148,862 | 37.8 | % | |||||||||
Electric customer credits | (23,530 | ) | (1,836 | ) | (21,694 | ) | * | |||||||
Other operations | 64,893 | 48,909 | 15,984 | 32.7 | % | |||||||||
Affiliate revenue | 1,326 | 1,338 | (12 | ) | (0.9 | )% | ||||||||
Operating revenue, net | $ | 1,268,649 | $ | 1,095,959 | $ | 172,690 | 15.8 | % | ||||||
Operating expenses | ||||||||||||||
Recoverable fuel and power purchased | 542,397 | 393,534 | (148,863 | ) | (37.8 | )% | ||||||||
Non-recoverable fuel and power purchased | 27,985 | 13,302 | (14,683 | ) | (110.4 | )% | ||||||||
Other operations | 116,664 | 114,884 | (1,780 | ) | (1.5 | )% | ||||||||
Maintenance | 96,054 | 85,638 | (10,416 | ) | (12.2 | )% | ||||||||
Depreciation and amortization | 144,026 | 135,717 | (8,309 | ) | (6.1 | )% | ||||||||
Taxes other than income taxes | 41,812 | 46,203 | 4,391 | 9.5 | % | |||||||||
Gain on sale of assets | (4 | ) | — | 4 | — | % | ||||||||
Total operating expenses | 968,934 | 789,278 | (179,656 | ) | (22.8 | )% | ||||||||
Operating income | $ | 299,715 | $ | 306,681 | $ | (6,966 | ) | (2.3 | )% | |||||
Allowance for equity funds used during construction | $ | 5,380 | $ | 4,081 | $ | 1,299 | 31.8 | % | ||||||
Other income | $ | 1,483 | $ | 4,883 | $ | (3,400 | ) | (69.6 | )% | |||||
Other expense | $ | 2,322 | $ | 4,277 | $ | 1,955 | 45.7 | % | ||||||
Interest charges | $ | 74,673 | $ | 82,677 | $ | 8,004 | 9.7 | % | ||||||
Federal and state income taxes | $ | 76,974 | $ | 79,381 | $ | 2,407 | 3.0 | % | ||||||
Net income | $ | 154,316 | $ | 150,410 | $ | 3,906 | 2.6 | % | ||||||
* Not meaningful |
FOR THE YEAR ENDED DEC. 31, | ||||||||
FAVORABLE/ | ||||||||
(MILLION kWh) | 2014 | 2013 | (UNFAVORABLE) | |||||
Electric sales | ||||||||
Residential | 3,783 | 3,714 | 1.9 | % | ||||
Commercial | 2,689 | 2,672 | 0.6 | % | ||||
Industrial | 2,212 | 2,322 | (4.7 | )% | ||||
Other retail | 130 | 134 | (3.0 | )% | ||||
Total retail | 8,814 | 8,842 | (0.3 | )% | ||||
Sales for resale | 3,412 | 2,057 | 65.9 | % | ||||
Unbilled | 171 | 61 | 180.3 | % | ||||
Total retail and wholesale customer sales | 12,397 | 10,960 | 13.1 | % |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||
FAVORABLE/ | FAVORABLE/ | |||||||||||||||||
(THOUSANDS) | 2014 | 2013 | (UNFAVORABLE) | |||||||||||||||
(MILLION kWh) | 2016 | 2015 | (UNFAVORABLE) | |||||||||||||||
Electric sales | ||||||||||||||||||
Residential | $ | 293,871 | $ | 297,158 | (1.1 | )% | 3,671 | 3,745 | (2.0 | )% | ||||||||
Commercial | 188,012 | 189,807 | (0.9 | )% | 2,724 | 2,732 | (0.3 | )% | ||||||||||
Industrial | 86,823 | 91,093 | (4.7 | )% | 1,988 | 1,916 | 3.8 | % | ||||||||||
Other retail | 10,215 | 10,590 | (3.5 | )% | 133 | 133 | — | % | ||||||||||
Storm surcharge | 15,833 | 14,978 | 5.7 | % | ||||||||||||||
Other | — | (4,694 | ) | 100.0 | % | |||||||||||||
Total retail | $ | 594,754 | $ | 598,932 | (0.7 | )% | 8,516 | 8,526 | (0.1 | )% | ||||||||
Sales for resale | 81,371 | 51,922 | 56.7 | % | 3,143 | 3,345 | (6.0 | )% | ||||||||||
Unbilled | 7,440 | 3,161 | 135.4 | % | ||||||||||||||
Total retail and wholesale customer sales | $ | 683,565 | $ | 654,015 | 4.5 | % | 11,659 | 11,871 | (1.8 | )% |
FOR THE YEAR ENDED DEC. 31, | ||||||||||
FAVORABLE/ | ||||||||||
(THOUSANDS) | 2016 | 2015 | (UNFAVORABLE) | |||||||
Electric sales | ||||||||||
Residential | $ | 292,397 | $ | 298,172 | (1.9 | )% | ||||
Commercial | 191,440 | 192,389 | (0.5 | )% | ||||||
Industrial | 86,299 | 85,675 | 0.7 | % | ||||||
Other retail | 10,589 | 10,637 | (0.5 | )% | ||||||
Storm surcharge | 21,175 | 21,121 | 0.3 | % | ||||||
Total retail | 601,900 | 607,994 | (1.0 | )% | ||||||
Sales for resale | 59,074 | 62,536 | (5.5 | )% | ||||||
Total base revenue | $ | 660,974 | $ | 670,530 | (1.4 | )% |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||||||||
2014 CHANGE | 2016 CHANGE | |||||||||||||||||||||||||||
2014 | 2013 | NORMAL | PRIOR YEAR | NORMAL | 2016 | 2015 | NORMAL | PRIOR YEAR | NORMAL | |||||||||||||||||||
Cooling degree-days | 2,780 | 2,954 | 2,776 | (5.9 | )% | 0.1 | % | 3,309 | 3,272 | 2,779 | 1.1 | % | 19.1 | % | ||||||||||||||
Heating degree-days | 1,833 | 1,559 | 1,589 | 17.6 | % | 15.4 | % | 1,145 | 1,271 | 1,546 | (9.9 | )% | (25.9 | )% |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER — NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS |
CRITICAL ACCOUNTING POLICIES |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ACTUARIAL ASSUMPTION (THOUSANDS) | CHANGE IN ASSUMPTION | CHANGE IN PROJECTED BENEFIT OBLIGATION | CHANGE IN ESTIMATED BENEFIT COST | CHANGE IN ASSUMPTION | CHANGE IN PROJECTED BENEFIT OBLIGATION | CHANGE IN ESTIMATED BENEFIT COST | ||||||||||||
Discount rate | 0.5% increase | $ | (32,611 | ) | $ | (3,178 | ) | 0.5% increase | $ | (39,325 | ) | $ | (3,630 | ) | ||||
0.5% decrease | $ | 36,570 | $ | 3,504 | 0.5% decrease | $ | 44,193 | $ | 4,005 | |||||||||
Salary scale | 0.5% increase | $ | 7,962 | $ | 1,533 | 0.5% increase | $ | 8,992 | $ | 1,678 | ||||||||
0.5% decrease | $ | (7,226 | ) | $ | (1,386 | ) | 0.5% decrease | $ | (8,199 | ) | $ | (1,532 | ) | |||||
Expected return on assets | 0.5% increase | $ | — | $ | (1,935 | ) | 0.5% increase | $ | — | $ | (2,030 | ) | ||||||
0.5% decrease | $ | — | $ | 1,935 | 0.5% decrease | $ | — | $ | 2,030 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
FINANCIAL CONDITION |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
SENIOR UNSECURED DEBT | CORPORATE CREDIT | ||||
MOODY’S | S&P | S&P | |||
Cleco | |||||
Cleco Power | A3 | BBB+ | BBB+ |
Cleco | (THOUSANDS) | |||||||||||||||||
ADIT BEFORE INCOME TAX REFORM | ADIT AFTER INCOME TAX REFORM | NET REDUCTION | RECOGNIZED AS REGULATORY LIABILITY | RECOGNIZED IN INCOME TAX EXPENSE | ||||||||||||||
$ | (801,692 | ) | $ | (406,811 | ) | $ | (394,881 | ) | $ | (348,590 | ) | $ | (46,291 | ) |
Cleco Power | (THOUSANDS) | |||||||||||||||||
ADIT BEFORE INCOME TAX REFORM | ADIT AFTER INCOME TAX REFORM | NET REDUCTION | RECOGNIZED AS REGULATORY LIABILITY | RECOGNIZED IN INCOME TAX EXPENSE | ||||||||||||||
$ | (811,079 | ) | $ | (448,197 | ) | $ | (362,882 | ) | $ | (348,590 | ) | $ | (14,292 | ) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | ||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Current: | ||||||||||||||
Current | ||||||||||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 9,263 | $ | 8,986 | $ | 8,597 | $ | 9,213 | ||||||
Non-current: | ||||||||||||||
Cleco Power’s charitable contributions | 1,200 | 1,200 | ||||||||||||
Cleco Power’s rate credit escrow | 3,284 | 12,671 | ||||||||||||
Total current | 13,081 | 23,084 | ||||||||||||
Non-current | ||||||||||||||
Diversified Lands’ mitigation escrow | 21 | 21 | 21 | 21 | ||||||||||
Cleco Power’s future storm restoration costs | 16,174 | 14,915 | 14,456 | 17,379 | ||||||||||
Cleco Power’s building renovation escrow | — | 194 | ||||||||||||
Cleco Power’s charitable contributions | 3,575 | 4,179 | ||||||||||||
Cleco Power’s rate credit escrow | 2,029 | 1,831 | ||||||||||||
Total non-current | 16,195 | 15,130 | 20,081 | 23,410 | ||||||||||
Total restricted cash and cash equivalents | $ | 25,458 | $ | 24,116 | $ | 33,162 | $ | 46,494 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Charitable contributions | 1,200 | 1,200 | |||||
Rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Future storm restoration costs | 14,456 | 17,379 | |||||
Charitable contributions | 3,575 | 4,179 | |||||
Rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,060 | 23,389 | |||||
Total restricted cash and cash equivalents | $ | 33,141 | $ | 46,473 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER |
Cleco | ||||||||||||||||||||||||||
PROJECT (THOUSANDS) | 2016 | % | 2016-2020 | % | 2018 | % | 2018-2022 | % | ||||||||||||||||||
Environmental | $ | 9,000 | 3 | % | $ | 44,000 | 4 | % | $ | 2,000 | 1 | % | $ | 26,000 | 2 | % | ||||||||||
New business | 36,000 | 14 | % | 158,000 | 16 | % | 41,000 | 13 | % | 154,000 | 15 | % | ||||||||||||||
Transmission reliability | 44,000 | 17 | % | 99,000 | 10 | % | 46,000 | 14 | % | 159,000 | 15 | % | ||||||||||||||
Fuel optimization | 50,000 | 19 | % | 119,000 | 12 | % | 54,000 | 16 | % | 57,000 | 6 | % | ||||||||||||||
General (1) | 121,000 | 47 | % | 590,000 | 58 | % | 185,000 | 56 | % | 656,000 | 62 | % | ||||||||||||||
Total capital expenditures | $ | 260,000 | 100 | % | $ | 1,010,000 | 100 | % | $ | 328,000 | 100 | % | $ | 1,052,000 | 100 | % | ||||||||||
Debt payments | 17,000 | 370,000 | 19,000 | 376,000 | ||||||||||||||||||||||
Total capital expenditures and debt payments | $ | 277,000 | $ | 1,380,000 | $ | 347,000 | $ | 1,428,000 | ||||||||||||||||||
(1) Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades at Cleco Power. | (1) Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades at Cleco Power. | (1) Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades at Cleco Power. |
Cleco Power | |||||||||||||
PROJECT (THOUSANDS) | 2018 | % | 2018-2022 | % | |||||||||
Environmental | $ | 2,000 | 1 | % | $ | 26,000 | 2 | % | |||||
New business | 41,000 | 12 | % | 154,000 | 15 | % | |||||||
Transmission reliability | 46,000 | 14 | % | 159,000 | 15 | % | |||||||
Fuel optimization | 54,000 | 17 | % | 57,000 | 6 | % | |||||||
General (1) | 184,000 | 56 | % | 640,000 | 62 | % | |||||||
Total capital expenditures | $ | 327,000 | 100 | % | $ | 1,036,000 | 100 | % | |||||
Debt payments | 19,000 | 76,000 | |||||||||||
Total capital expenditures and debt payments | $ | 346,000 | $ | 1,112,000 | |||||||||
(1) Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades. |
Cleco Power | |||||||||||||
PROJECT (THOUSANDS) | 2016 | % | 2016-2020 | % | |||||||||
Environmental | $ | 9,000 | 4 | % | $ | 44,000 | 4 | % | |||||
New business | 36,000 | 14 | % | 158,000 | 16 | % | |||||||
Transmission reliability | 44,000 | 17 | % | 99,000 | 10 | % | |||||||
Fuel optimization | 50,000 | 19 | % | 119,000 | 12 | % | |||||||
General (1) | 118,000 | 46 | % | 579,000 | 58 | % | |||||||
Total capital expenditures | $ | 257,000 | 100 | % | $ | 999,000 | 100 | % | |||||
Debt payments | 17,000 | 336,000 | |||||||||||
Total capital expenditures and debt payments | $ | 274,000 | $ | 1,335,000 | |||||||||
(1) Primarily consists of rehabilitation projects of older transmission, distribution, and generation assets and hardware and software upgrades. |
PAYMENTS DUE BY PERIOD | |||||||||||||||||||
CONTRACTUAL OBLIGATIONS (THOUSANDS) | TOTAL | LESS THAN ONE YEAR | 1-3 YEARS | 3-5 YEARS | MORE THAN 5 YEARS | ||||||||||||||
Cleco Corporation | |||||||||||||||||||
Long-term debt obligations (1) | $ | 35,339 | $ | 34,445 | $ | 894 | $ | — | $ | — | |||||||||
Operating lease obligations (3) | 943 | 315 | 628 | — | — | ||||||||||||||
Purchase obligations (4) | 25,566 | 9,388 | 9,408 | 4,492 | 2,278 | ||||||||||||||
Other long-term liabilities (5) | 14,559 | 2,242 | 3,235 | 2,850 | 6,232 | ||||||||||||||
Pension and other benefits obligations (6) | 215,118 | 6,990 | 14,316 | 15,164 | 178,648 | ||||||||||||||
Total Cleco Corporation | $ | 291,525 | $ | 53,380 | $ | 28,481 | $ | 22,506 | $ | 187,158 | |||||||||
Cleco Power | |||||||||||||||||||
Long-term debt obligations (1) | $ | 2,480,999 | $ | 88,066 | $ | 417,550 | $ | 133,103 | $ | 1,842,280 | |||||||||
Capital lease obligations (2) | 6,278 | 3,722 | 2,556 | — | — | ||||||||||||||
Operating lease obligations (3) | 29,293 | 8,642 | 9,263 | 5,639 | 5,749 | ||||||||||||||
Purchase obligations (4) | 200,300 | 146,011 | 46,081 | 7,474 | 734 | ||||||||||||||
Other long-term liabilities (5) | 98,153 | 16,200 | 32,946 | 33,651 | 15,356 | ||||||||||||||
Total Cleco Power | $ | 2,815,023 | $ | 262,641 | $ | 508,396 | $ | 179,867 | $ | 1,864,119 | |||||||||
Total long-term debt obligations (1) | $ | 2,516,338 | $ | 122,511 | $ | 418,444 | $ | 133,103 | $ | 1,842,280 | |||||||||
Total capital lease obligations (2) | $ | 6,278 | $ | 3,722 | $ | 2,556 | $ | — | $ | — | |||||||||
Total operating lease obligations (3) | $ | 30,236 | $ | 8,957 | $ | 9,891 | $ | 5,639 | $ | 5,749 | |||||||||
Total purchase obligations (4) | $ | 225,866 | $ | 155,399 | $ | 55,489 | $ | 11,966 | $ | 3,012 | |||||||||
Total other long-term liabilities (5) | $ | 112,712 | $ | 18,442 | $ | 36,181 | $ | 36,501 | $ | 21,588 | |||||||||
Total pension and other benefits obligations (6) | $ | 215,118 | $ | 6,990 | $ | 14,316 | $ | 15,164 | $ | 178,648 | |||||||||
Total | $ | 3,106,548 | $ | 316,021 | $ | 536,877 | $ | 202,373 | $ | 2,051,277 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
PAYMENTS DUE BY PERIOD | |||||||||||||||||||
CONTRACTUAL OBLIGATIONS (THOUSANDS) | TOTAL | LESS THAN ONE YEAR | 1-3 YEARS | 3-5 YEARS | MORE THAN 5 YEARS | ||||||||||||||
Cleco Holdings | |||||||||||||||||||
Long-term debt obligations (1) | $ | 2,101,019 | $ | 52,428 | $ | 104,857 | $ | 390,539 | $ | 1,553,195 | |||||||||
Operating lease obligations (2) | 413 | 413 | — | — | — | ||||||||||||||
Purchase obligations (3) | 22,662 | 9,964 | 10,414 | 1,180 | 1,104 | ||||||||||||||
Other long-term liabilities (4) | 13,947 | 3,222 | 2,810 | 2,334 | 5,581 | ||||||||||||||
Postretirement benefits obligations (5) | 237,444 | 8,684 | 17,307 | 17,012 | 194,441 | ||||||||||||||
Total Cleco Holdings | $ | 2,375,485 | $ | 74,711 | $ | 135,388 | $ | 411,065 | $ | 1,754,321 | |||||||||
Cleco Power | |||||||||||||||||||
Long-term debt obligations (1) | $ | 2,583,409 | $ | 85,193 | $ | 160,439 | $ | 152,375 | $ | 2,185,402 | |||||||||
Operating lease obligations (2) | 14,343 | 3,317 | 5,941 | 1,981 | 3,104 | ||||||||||||||
Purchase obligations (3) | 80,623 | 53,914 | 25,294 | 1,091 | 324 | ||||||||||||||
Other long-term liabilities (4) | 97,562 | 16,698 | 33,855 | 31,105 | 15,904 | ||||||||||||||
Postretirement benefits obligations (5) | 92,108 | — | — | 8,326 | 83,782 | ||||||||||||||
Total Cleco Power | $ | 2,868,045 | $ | 159,122 | $ | 225,529 | $ | 194,878 | $ | 2,288,516 | |||||||||
Total long-term debt obligations (1) | $ | 4,684,428 | $ | 137,621 | $ | 265,296 | $ | 542,914 | $ | 3,738,597 | |||||||||
Total operating lease obligations (2) | $ | 14,756 | $ | 3,730 | $ | 5,941 | $ | 1,981 | $ | 3,104 | |||||||||
Total purchase obligations (3) | $ | 103,285 | $ | 63,878 | $ | 35,708 | $ | 2,271 | $ | 1,428 | |||||||||
Total other long-term liabilities (4) | $ | 111,509 | $ | 19,920 | $ | 36,665 | $ | 33,439 | $ | 21,485 | |||||||||
Total postretirement benefits obligations (5) | $ | 329,552 | $ | 8,684 | $ | 17,307 | $ | 25,338 | $ | 278,223 | |||||||||
Total | $ | 5,243,530 | $ | 233,833 | $ | 360,917 | $ | 605,943 | $ | 4,042,837 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
RISK OVERVIEW |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER |
CLECO | ||
CLECO POWER |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Operating revenue | |||||||||||||||
Electric operations | $ | 1,097,632 | $ | 802,592 | $ | 281,154 | $ | 1,142,389 | |||||||
Other operations | 79,580 | 51,562 | 19,080 | 69,186 | |||||||||||
Gross operating revenue | 1,177,212 | 854,154 | 300,234 | 1,211,575 | |||||||||||
Electric customer credits | (1,566 | ) | (1,149 | ) | (364 | ) | (2,173 | ) | |||||||
Operating revenue, net | 1,175,646 | 853,005 | 299,870 | 1,209,402 | |||||||||||
Operating expenses | |||||||||||||||
Fuel used for electric generation | 339,346 | 250,142 | 96,378 | 373,117 | |||||||||||
Power purchased for utility customers | 152,913 | 92,337 | 27,249 | 130,095 | |||||||||||
Other operations | 125,699 | 90,313 | 33,563 | 127,410 | |||||||||||
Maintenance | 88,129 | 63,944 | 29,813 | 88,137 | |||||||||||
Depreciation and amortization | 166,439 | 109,739 | 44,076 | 149,579 | |||||||||||
Taxes other than income taxes | 48,546 | 35,543 | 14,611 | 49,134 | |||||||||||
Merger transaction and commitment costs | 287 | 174,696 | 34,912 | 4,591 | |||||||||||
Gain on sale of assets | (2 | ) | — | (1,095 | ) | — | |||||||||
Total operating expenses | 921,357 | 816,714 | 279,507 | 922,063 | |||||||||||
Operating income | 254,289 | 36,291 | 20,363 | 287,339 | |||||||||||
Interest income | 1,424 | 840 | 265 | 895 | |||||||||||
Allowance for equity funds used during construction | 8,320 | 3,735 | 723 | 3,063 | |||||||||||
Other income | 6,474 | 3,350 | 870 | 1,443 | |||||||||||
Other expense | (2,435 | ) | (1,385 | ) | (590 | ) | (3,376 | ) | |||||||
Interest charges | |||||||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 125,200 | 90,852 | 22,330 | 78,877 | |||||||||||
Allowance for borrowed funds used during construction | (2,287 | ) | (1,086 | ) | (207 | ) | (886 | ) | |||||||
Total interest charges | 122,913 | 89,766 | 22,123 | 77,991 | |||||||||||
Income (loss) before income taxes | 145,159 | (46,935 | ) | (492 | ) | 211,373 | |||||||||
Federal and state income tax expense (benefit) | 7,079 | (22,822 | ) | 3,468 | 77,704 | ||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
Other comprehensive (loss) income, net of tax | |||||||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $2,764 and tax expense of $938, $367, and $3,670, respectively) | (4,421 | ) | 1,500 | 587 | 5,869 | ||||||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $0, $0, $37, and $132, respectively) | — | — | 60 | 211 | |||||||||||
Total other comprehensive (loss) income, net of tax | (4,421 | ) | 1,500 | 647 | 6,080 | ||||||||||
Comprehensive income (loss), net of tax | $ | 133,659 | $ | (22,613 | ) | $ | (3,313 | ) | $ | 139,749 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 119,040 | $ | 23,077 | |||
Restricted cash and cash equivalents | 13,081 | 23,084 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,457 in 2017 and $7,199 in 2016) | 60,117 | 56,780 | |||||
Other accounts receivable | 30,806 | 19,778 | |||||
Unbilled revenue | 36,398 | 34,268 | |||||
Fuel inventory, at average cost | 87,520 | 46,410 | |||||
Materials and supplies, at average cost | 85,404 | 81,818 | |||||
Energy risk management assets | 7,396 | 7,884 | |||||
Accumulated deferred fuel | 13,980 | 20,787 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 83,117 | 77,225 | |||||
Prepayments | 9,050 | 7,813 | |||||
Regulatory assets | 24,670 | 26,803 | |||||
Other current assets | 1,146 | 1,315 | |||||
Total current assets | 571,725 | 427,042 | |||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | 3,594,525 | 3,476,581 | |||||
Accumulated depreciation | (192,348 | ) | (75,816 | ) | |||
Net property, plant, and equipment | 3,402,177 | 3,400,765 | |||||
Construction work in progress | 186,629 | 78,577 | |||||
Total property, plant, and equipment, net | 3,588,806 | 3,479,342 | |||||
Equity investment in investee | 18,172 | 18,672 | |||||
Goodwill | 1,490,797 | 1,490,797 | |||||
Prepayments | 1,887 | 4,731 | |||||
Restricted cash and cash equivalents | 20,081 | 23,410 | |||||
Regulatory assets - deferred taxes, net | — | 237,449 | |||||
Regulatory assets | 432,358 | 454,644 | |||||
Net investment in direct financing lease | — | 13,420 | |||||
Intangible assets | 114,850 | 142,634 | |||||
Tax credit fund investment, net | 4,355 | 11,888 | |||||
Other deferred charges | 35,351 | 39,115 | |||||
Total assets | $ | 6,278,382 | $ | 6,343,144 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Liabilities and member’s equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 19,193 | $ | 19,715 | |||
Accounts payable | 147,562 | 112,087 | |||||
Customer deposits | 58,582 | 56,599 | |||||
Provision for rate refund | 4,206 | 3,974 | |||||
Provision for merger commitments | 2,582 | 14,371 | |||||
Taxes payable, net | 22,698 | 3,942 | |||||
Interest accrued | 14,703 | 14,783 | |||||
Energy risk management liabilities | 352 | 201 | |||||
Deferred compensation | 12,132 | 11,654 | |||||
Other current liabilities | 18,344 | 14,850 | |||||
Total current liabilities | 300,354 | 252,176 | |||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 614,812 | 1,033,055 | |||||
Accumulated deferred investment tax credits | 2,089 | 2,751 | |||||
Postretirement benefit obligations | 242,135 | 223,003 | |||||
Regulatory liabilities - deferred taxes, net | 140,426 | — | |||||
Restricted storm reserve | 14,469 | 17,385 | |||||
Other deferred credits | 31,635 | 29,440 | |||||
Total long-term liabilities and deferred credits | 1,045,566 | 1,305,634 | |||||
Long-term debt, net | 2,836,105 | 2,738,571 | |||||
Total liabilities | 4,182,025 | 4,296,381 | |||||
Commitments and contingencies (Note 15) | |||||||
Member’s equity | |||||||
Membership interest | 2,069,376 | 2,069,376 | |||||
Retained earnings (Accumulated deficit) | 29,902 | (24,113 | ) | ||||
Accumulated other comprehensive (loss) income | (2,921 | ) | 1,500 | ||||
Total member’s equity | 2,096,357 | 2,046,763 | |||||
Total liabilities and member’s equity | $ | 6,278,382 | $ | 6,343,144 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Operating activities | |||||||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||
Depreciation and amortization | 186,326 | 141,544 | 45,869 | 156,211 | |||||||||||
Gain on sales of assets | (2 | ) | — | (1,095 | ) | — | |||||||||
Provision for doubtful accounts | 2,778 | 4,473 | 1,212 | 3,464 | |||||||||||
Unearned compensation expense | 3,745 | 1,147 | 3,276 | 6,344 | |||||||||||
Allowance for equity funds used during construction | (8,320 | ) | (3,735 | ) | (723 | ) | (3,063 | ) | |||||||
Deferred income taxes | (41,966 | ) | (21,053 | ) | 2,219 | 74,103 | |||||||||
Deferred fuel costs | 11,909 | (8,192 | ) | 977 | 9,899 | ||||||||||
Cash surrender value of company-/trust-owned life insurance | (5,892 | ) | (2,561 | ) | (840 | ) | 950 | ||||||||
Changes in assets and liabilities | |||||||||||||||
Accounts receivable | (25,584 | ) | (21,537 | ) | (1,865 | ) | (13,656 | ) | |||||||
Unbilled revenue | (2,129 | ) | (837 | ) | 563 | 4,481 | |||||||||
Fuel inventory and materials and supplies | (44,995 | ) | 2,880 | 19,312 | (13,698 | ) | |||||||||
Prepayments | 2,852 | (2,514 | ) | 2,395 | 2,750 | ||||||||||
Accounts payable | 14,705 | 5,183 | 8,348 | (25,294 | ) | ||||||||||
Customer deposits | 12,381 | 7,333 | 3,342 | 12,162 | |||||||||||
Provision for merger commitments | (12,971 | ) | 21,964 | — | — | ||||||||||
Postretirement benefit obligations | 4,884 | 3,750 | 9,746 | 14,173 | |||||||||||
Regulatory assets and liabilities, net | 12,531 | 13,750 | 5,178 | 18,793 | |||||||||||
Other deferred accounts | (8,380 | ) | (28,010 | ) | 6,878 | (17,454 | ) | ||||||||
Taxes accrued | 23,118 | (24,210 | ) | 10,820 | (831 | ) | |||||||||
Interest accrued | (582 | ) | (11,104 | ) | 17,909 | (1,024 | ) | ||||||||
Deferred compensation | 308 | (799 | ) | (793 | ) | (1,166 | ) | ||||||||
Other operating | 2,632 | (2,037 | ) | 1,012 | 209 | ||||||||||
Net cash provided by operating activities | 265,428 | 51,322 | 129,780 | 361,022 | |||||||||||
Investing activities | |||||||||||||||
Additions to property, plant, and equipment | (236,932 | ) | (144,444 | ) | (42,392 | ) | (156,819 | ) | |||||||
Allowance for equity funds used during construction | 8,320 | 3,735 | 723 | 3,063 | |||||||||||
Proceeds from sale of property, plant, and equipment | 17,499 | 766 | 1,932 | — | |||||||||||
Reimbursement for property loss | 187 | 3,159 | 53 | — | |||||||||||
Contributions to equity investment in investee | — | — | (2,450 | ) | (2,290 | ) | |||||||||
Premiums paid on trust-owned life insurance | — | — | — | (3,607 | ) | ||||||||||
Return of equity investment in tax credit fund | 7,502 | 901 | 476 | 2,128 | |||||||||||
Contributions to tax credit fund | (630 | ) | — | — | (9,966 | ) | |||||||||
Transfer of cash from (to) restricted accounts, net | 13,332 | (25,884 | ) | 4,847 | (1,341 | ) | |||||||||
Other investing | 500 | 622 | — | 881 | |||||||||||
Net cash used in investing activities | (190,222 | ) | (161,145 | ) | (36,811 | ) | (167,951 | ) | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Financing activities | |||||||||||||||
Draws on credit facilities | 179,000 | 15,000 | 3,000 | 120,000 | |||||||||||
Payments on credit facilities | (179,000 | ) | (15,000 | ) | (10,000 | ) | (163,000 | ) | |||||||
Issuances of long-term debt | 125,000 | 1,680,000 | — | 75,000 | |||||||||||
Repayments of long-term debt | (17,896 | ) | (1,668,268 | ) | (8,546 | ) | (100,824 | ) | |||||||
Payment of financing costs | (463 | ) | (8,655 | ) | (43 | ) | (693 | ) | |||||||
Dividends paid on common stock | — | (572 | ) | (24,579 | ) | (97,283 | ) | ||||||||
Contribution from member | — | 100,720 | — | — | |||||||||||
Distributions to member | (84,065 | ) | (88,765 | ) | — | — | |||||||||
Other financing | (1,819 | ) | (1,890 | ) | (717 | ) | (2,448 | ) | |||||||
Net cash provided by (used in) financing activities | 20,757 | 12,570 | (40,885 | ) | (169,248 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 95,963 | (97,253 | ) | 52,084 | 23,823 | ||||||||||
Cash and cash equivalents at beginning of period | 23,077 | 120,330 | 68,246 | 44,423 | |||||||||||
Cash and cash equivalents at end of period | $ | 119,040 | $ | 23,077 | $ | 120,330 | $ | 68,246 | |||||||
Supplementary cash flow information | |||||||||||||||
Interest paid, net of amount capitalized | $ | 118,009 | $ | 116,496 | $ | 2,478 | $ | 74,349 | |||||||
Income taxes (refunded) paid, net | $ | (6 | ) | $ | 4,263 | $ | (481 | ) | $ | 1,434 | |||||
Supplementary non-cash investing and financing activities | |||||||||||||||
Accrued additions to property, plant, and equipment | $ | 31,083 | $ | 17,599 | $ | 10,619 | $ | 7,313 | |||||||
Non-cash additions to property, plant, and equipment | $ | 3,015 | $ | — | $ | — | $ | 184 | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Changes in Equity | |||||||||||||||
(THOUSANDS) | COMMON STOCK/(1) MEMBERSHIP INTEREST | RETAINED EARNINGS/ (ACCUMULATED DEFICIT) | AOCI | TOTAL SHAREHOLDERS’/ MEMBER’S EQUITY | |||||||||||
PREDECESSOR | |||||||||||||||
Balances, Dec. 31, 2014 | $ | 451,223 | $ | 1,208,712 | $ | (32,665 | ) | $ | 1,627,270 | ||||||
Common stock issued for compensatory plans | 5,189 | — | — | 5,189 | |||||||||||
Dividends on common stock, $1.60 per share | — | (97,367 | ) | — | (97,367 | ) | |||||||||
Net income | — | 133,669 | — | 133,669 | |||||||||||
Other comprehensive income, net of tax | — | — | 6,080 | 6,080 | |||||||||||
Balances, Dec. 31, 2015 | $ | 456,412 | $ | 1,245,014 | $ | (26,585 | ) | $ | 1,674,841 | ||||||
Common stock issued for compensatory plans | (1,277 | ) | — | — | (1,277 | ) | |||||||||
Dividends on common stock, $0.40 per share | — | (24,190 | ) | — | (24,190 | ) | |||||||||
Net loss | — | (3,960 | ) | — | (3,960 | ) | |||||||||
Other comprehensive income, net of tax | — | — | 647 | 647 | |||||||||||
Balances, Apr. 12, 2016 | $ | 455,135 | $ | 1,216,864 | $ | (25,938 | ) | $ | 1,646,061 | ||||||
SUCCESSOR | |||||||||||||||
Balances, Apr. 13, 2016(2) | $ | 2,158,141 | $ | — | $ | — | $ | 2,158,141 | |||||||
Distributions to member | (88,765 | ) | — | — | (88,765 | ) | |||||||||
Net loss | — | (24,113 | ) | — | (24,113 | ) | |||||||||
Other comprehensive income, net of tax | — | — | 1,500 | 1,500 | |||||||||||
Balances, Dec. 31, 2016 | $ | 2,069,376 | $ | (24,113 | ) | $ | 1,500 | $ | 2,046,763 | ||||||
Distributions to member | — | (84,065 | ) | — | (84,065 | ) | |||||||||
Net income | — | 138,080 | — | 138,080 | |||||||||||
Other comprehensive loss, net of tax | — | — | (4,421 | ) | (4,421 | ) | |||||||||
Balances, Dec. 31, 2017 | $ | 2,069,376 | $ | 29,902 | $ | (2,921 | ) | $ | 2,096,357 | ||||||
(1)At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included $61.1 million of common stock. At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included premium on common stock of $414.6 million, $418.5 million, and $415.5 million, respectively. At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included treasury stock of $20.5 million, $23.2 million, and $25.3 million, respectively. (2)The April 13, 2016, beginning balance of the successor company differs from the April 12, 2016, ending balances of the predecessor company due to acquisition accounting adjustments related to the Merger. | |||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | 2015 | 2014 | 2013 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,142,389 | $ | 1,225,960 | $ | 1,047,548 | |||||
Other operations | 69,186 | 67,055 | 51,002 | ||||||||
Gross operating revenue | 1,211,575 | 1,293,015 | 1,098,550 | ||||||||
Electric customer credits | (2,173 | ) | (23,530 | ) | (1,836 | ) | |||||
Operating revenue, net | 1,209,402 | 1,269,485 | 1,096,714 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 373,117 | 322,696 | 329,874 | ||||||||
Power purchased for utility customers | 130,095 | 242,219 | 45,292 | ||||||||
Other operations | 127,410 | 117,369 | 121,646 | ||||||||
Maintenance | 88,137 | 98,999 | 97,441 | ||||||||
Depreciation and amortization | 149,579 | 146,505 | 142,860 | ||||||||
Taxes other than income taxes | 49,134 | 43,924 | 50,469 | ||||||||
Merger transaction costs | 4,591 | 17,848 | — | ||||||||
(Gain) loss on sale of assets | — | (6,107 | ) | 800 | |||||||
Total operating expenses | 922,063 | 983,453 | 788,382 | ||||||||
Operating income | 287,339 | 286,032 | 308,332 | ||||||||
Interest income | 895 | 1,768 | 1,105 | ||||||||
Allowance for equity funds used during construction | 3,063 | 5,380 | 4,081 | ||||||||
Equity loss from investees, before tax | (8 | ) | — | — | |||||||
Other income | 1,443 | 4,790 | 13,857 | ||||||||
Other expense | (3,368 | ) | (2,509 | ) | (2,861 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 78,877 | 75,186 | 85,570 | ||||||||
Allowance for borrowed funds used during construction | (886 | ) | (1,580 | ) | (1,316 | ) | |||||
Total interest charges | 77,991 | 73,606 | 84,254 | ||||||||
Income before income taxes | 211,373 | 221,855 | 240,260 | ||||||||
Federal and state income tax expense | 77,704 | 67,116 | 79,575 | ||||||||
Net income applicable to common stock | $ | 133,669 | $ | 154,739 | $ | 160,685 | |||||
Basic average number of common shares outstanding | 60,476,066 | 60,406,001 | 60,434,510 | ||||||||
Diluted average number of common shares outstanding | 60,689,269 | 60,601,458 | 60,720,090 | ||||||||
Basic earnings per average common share outstanding | $ | 2.21 | $ | 2.56 | $ | 2.66 | |||||
Diluted earnings per average common share outstanding | $ | 2.20 | $ | 2.55 | $ | 2.65 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Net income | $ | 133,669 | $ | 154,739 | $ | 160,685 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Postretirement benefits gain (loss) (net of tax expense of $3,670 in 2015, tax benefit of $4,378 in 2014, and tax expense of $3,137 in 2013) | 5,869 | (7,001 | ) | 5,016 | |||||||
Net gain on cash flow hedges (net of tax expense of $132 in 2015, $132 in 2014, and $925 in 2013) | 211 | 212 | 1,478 | ||||||||
Total other comprehensive income (loss), net of tax | 6,080 | (6,789 | ) | 6,494 | |||||||
Comprehensive income, net of tax | $ | 139,749 | $ | 147,950 | $ | 167,179 | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 68,246 | $ | 44,423 | |||
Restricted cash and cash equivalents | 9,263 | 8,986 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $2,674 in 2015 and $922 in 2014) | 43,255 | 41,500 | |||||
Other accounts receivable | 27,677 | 28,098 | |||||
Unbilled revenue | 33,995 | 38,475 | |||||
Fuel inventory, at average cost | 72,838 | 64,747 | |||||
Materials and supplies, at average cost | 76,731 | 71,124 | |||||
Energy risk management assets | 7,673 | 10,776 | |||||
Accumulated deferred federal and state income taxes, net | — | 76,785 | |||||
Accumulated deferred fuel | 12,910 | 21,554 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 73,823 | 71,167 | |||||
Prepayments | 7,883 | 10,284 | |||||
Regulatory assets | 14,117 | 12,212 | |||||
Other current assets | 448 | 473 | |||||
Total current assets | 448,859 | 500,604 | |||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | 4,661,212 | 4,508,960 | |||||
Accumulated depreciation | (1,536,158 | ) | (1,442,960 | ) | |||
Net property, plant, and equipment | 3,125,054 | 3,066,000 | |||||
Construction work in progress | 66,509 | 99,458 | |||||
Total property, plant, and equipment, net | 3,191,563 | 3,165,458 | |||||
Equity investment in investees | 16,822 | 14,540 | |||||
Prepayments | 4,542 | 4,891 | |||||
Restricted cash and cash equivalents | 16,195 | 15,130 | |||||
Regulatory assets - deferred taxes, net | 236,941 | 234,370 | |||||
Regulatory assets | 284,689 | 311,867 | |||||
Net investment in direct financing lease | 13,464 | 13,498 | |||||
Intangible asset | 74,963 | 90,642 | |||||
Tax credit fund investment, net | 13,741 | 7,251 | |||||
Other deferred charges | 21,575 | 10,167 | |||||
Total assets | $ | 4,323,354 | $ | 4,368,418 | |||
The accompanying notes are an integral part of the consolidated financial statements. | |||||||
(Continued on next page) |
CLECO CORPORATION | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 19,421 | $ | 18,272 | |||
Accounts payable | 93,822 | 127,268 | |||||
Customer deposits | 55,233 | 53,411 | |||||
Provision for rate refund | 2,696 | 2,264 | |||||
Taxes payable | 2,573 | 2,197 | |||||
Interest accrued | 7,814 | 8,669 | |||||
Energy risk management liabilities | 275 | 827 | |||||
Regulatory liabilities - other | 312 | 312 | |||||
Deferred compensation | 10,156 | 11,374 | |||||
Other current liabilities | 14,277 | 13,176 | |||||
Total current liabilities | 206,579 | 237,770 | |||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 925,103 | 918,858 | |||||
Accumulated deferred investment tax credits | 3,245 | 4,161 | |||||
Postretirement benefit obligations | 205,036 | 197,623 | |||||
Regulatory liabilities - other | — | 312 | |||||
Restricted storm reserve | 16,177 | 14,916 | |||||
Other deferred credits | 24,670 | 28,510 | |||||
Total long-term liabilities and deferred credits | 1,174,231 | 1,164,380 | |||||
Long-term debt, net | 1,267,703 | 1,338,998 | |||||
Total liabilities | 2,648,513 | 2,741,148 | |||||
Commitments and contingencies (Note 14) | |||||||
Shareholders’ equity | |||||||
Common shareholders’ equity | |||||||
Common stock, $1 par value, authorized 100,000,000 shares, issued 61,058,918 and 61,051,286 shares and outstanding 60,482,468 and 60,421,467 shares at December 31, 2015, and 2014, respectively | 61,059 | 61,051 | |||||
Premium on common stock | 418,518 | 415,482 | |||||
Retained earnings | 1,245,014 | 1,208,712 | |||||
Treasury stock, at cost, 576,450 and 629,819 shares at December 31, 2015, and 2014, respectively | (23,165 | ) | (25,310 | ) | |||
Accumulated other comprehensive loss | (26,585 | ) | (32,665 | ) | |||
Total shareholders’ equity | 1,674,841 | 1,627,270 | |||||
Total liabilities and shareholders’ equity | $ | 4,323,354 | $ | 4,368,418 | |||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Operating activities | |||||||||||
Net income | $ | 133,669 | $ | 154,739 | $ | 160,685 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 156,211 | 156,590 | 161,047 | ||||||||
(Gain) loss on sale of assets | — | (6,224 | ) | 885 | |||||||
Unearned compensation expense | 6,344 | 6,545 | 6,446 | ||||||||
Allowance for equity funds used during construction | (3,063 | ) | (5,380 | ) | (4,081 | ) | |||||
Net deferred income taxes | 74,103 | 63,597 | 65,989 | ||||||||
Deferred fuel costs | 9,899 | (11,558 | ) | 5,630 | |||||||
Cash surrender value of company-/trust-owned life insurance | 950 | (3,616 | ) | (3,669 | ) | ||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | (13,656 | ) | 11,556 | (26,357 | ) | ||||||
Unbilled revenue | 4,481 | (7,310 | ) | (2,504 | ) | ||||||
Fuel inventory and materials and supplies | (13,698 | ) | (12,147 | ) | (18,626 | ) | |||||
Prepayments | 2,750 | 27 | (3,502 | ) | |||||||
Accounts payable | (25,294 | ) | 4,481 | (1,656 | ) | ||||||
Customer deposits | 12,162 | 14,960 | 12,213 | ||||||||
Postretirement benefit obligations | 14,173 | 8,864 | (24,541 | ) | |||||||
Regulatory assets and liabilities, net | 18,793 | (777 | ) | (30,524 | ) | ||||||
Other deferred accounts | (17,454 | ) | (14,691 | ) | (5,547 | ) | |||||
Taxes accrued | (831 | ) | (22,685 | ) | 53,197 | ||||||
Interest accrued | (1,024 | ) | (3,519 | ) | (768 | ) | |||||
Other operating | 2,507 | 1,717 | (2,627 | ) | |||||||
Net cash provided by operating activities | 361,022 | 335,169 | 341,690 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (156,819 | ) | (207,636 | ) | (188,614 | ) | |||||
Allowance for equity funds used during construction | 3,063 | 5,380 | 4,081 | ||||||||
Property, plant, and equipment grants | — | — | 729 | ||||||||
Proceeds from sale of property, plant, and equipment | — | 9,316 | 1,145 | ||||||||
Reimbursement for property loss | — | 191 | 1,306 | ||||||||
Contributions to equity investment in investee | (2,290 | ) | — | — | |||||||
Premiums paid on trust-owned life insurance | (3,607 | ) | (2,831 | ) | (3,705 | ) | |||||
Return of equity investment in tax credit fund | 2,128 | 2,579 | 1,619 | ||||||||
Contributions to tax credit fund | (9,966 | ) | (55,315 | ) | (51,011 | ) | |||||
Transfer of cash (to) from restricted accounts, net | (1,341 | ) | (10,097 | ) | 201 | ||||||
Purchase of restricted investments | — | — | (8,782 | ) | |||||||
Sale of restricted investments | — | 11,138 | — | ||||||||
Maturity of restricted investments | — | 1,458 | 6,816 | ||||||||
Other investing | 881 | (697 | ) | (1 | ) | ||||||
Net cash used in investing activities | (167,951 | ) | (246,514 | ) | (236,216 | ) | |||||
The accompanying notes are an integral part of the consolidated financial statements. | |||||||||||
(Continued on next page) |
CLECO CORPORATION | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Financing activities | |||||||||||
Draws on credit facility | 120,000 | 254,000 | 228,000 | ||||||||
Payments on credit facility | (163,000 | ) | (202,000 | ) | (228,000 | ) | |||||
Issuance of long-term debt | 75,000 | — | 160,000 | ||||||||
Repayment of long-term debt | (100,824 | ) | (14,876 | ) | (113,969 | ) | |||||
Repurchase of long-term debt | — | — | (60,000 | ) | |||||||
Repurchase of common stock | — | (12,449 | ) | — | |||||||
Settlement of interest rate swap | — | — | (3,269 | ) | |||||||
Dividends paid on common stock | (97,283 | ) | (95,044 | ) | (86,376 | ) | |||||
Other financing | (3,141 | ) | (2,519 | ) | (4,224 | ) | |||||
Net cash used in financing activities | (169,248 | ) | (72,888 | ) | (107,838 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 23,823 | 15,767 | (2,364 | ) | |||||||
Cash and cash equivalents at beginning of period | 44,423 | 28,656 | 31,020 | ||||||||
Cash and cash equivalents at end of period | $ | 68,246 | $ | 44,423 | $ | 28,656 | |||||
Supplementary cash flow information | |||||||||||
Interest paid, net of amount capitalized | $ | 74,349 | $ | 74,515 | $ | 77,296 | |||||
Income taxes paid (refunded), net | $ | 1,434 | $ | 15,286 | $ | (47,374 | ) | ||||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 7,313 | $ | 12,325 | $ | 18,627 | |||||
Issuance of common stock – ESPP | $ | — | $ | 220 | $ | 318 | |||||
Decreases in property, plant, and equipment | $ | 234 | $ | 47 | $ | 1,280 | |||||
Non-cash additions to property, plant, and equipment - ARO | $ | 184 | $ | 4,400 | $ | — | |||||
Non-cash donation of property | $ | 373 | $ | — | $ | — | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO CORPORATION | |||||||||||||||||||||||||||||
Consolidated Statements of Changes in Common Shareholders’ Equity | |||||||||||||||||||||||||||||
COMMON STOCK | TREASURY STOCK | PREMIUM ON COMMON STOCK | RETAINED EARNINGS | AOCI | TOTAL COMMON SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
(THOUSANDS, EXCEPT SHARE AMOUNTS) | SHARES | AMOUNT | SHARES | COST | |||||||||||||||||||||||||
Balances, Dec. 31, 2012 | 60,961,570 | $ | 60,962 | (606,025 | ) | $ | (21,072 | ) | $ | 416,619 | $ | 1,075,074 | $ | (32,370 | ) | $ | 1,499,213 | ||||||||||||
Common stock issued for compensatory plans | 85,436 | 85 | 13,539 | 471 | 6,005 | — | — | 6,561 | |||||||||||||||||||||
Dividends on common stock, $1.425 per share | — | — | — | — | — | (86,756 | ) | — | (86,756 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 160,685 | — | 160,685 | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 6,494 | 6,494 | |||||||||||||||||||||
Balances, Dec. 31, 2013 | 61,047,006 | $ | 61,047 | (592,486 | ) | $ | (20,601 | ) | $ | 422,624 | $ | 1,149,003 | $ | (25,876 | ) | $ | 1,586,197 | ||||||||||||
Common stock issued for compensatory plans | 4,280 | 4 | 212,667 | 7,740 | (7,142 | ) | — | — | 602 | ||||||||||||||||||||
Repurchase of common stock | — | — | (250,000 | ) | (12,449 | ) | — | — | — | (12,449 | ) | ||||||||||||||||||
Dividends on common stock, $1.5625 per share | — | — | — | — | — | (95,030 | ) | — | (95,030 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 154,739 | — | 154,739 | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (6,789 | ) | (6,789 | ) | |||||||||||||||||||
Balances, Dec. 31, 2014 | 61,051,286 | $ | 61,051 | (629,819 | ) | $ | (25,310 | ) | $ | 415,482 | $ | 1,208,712 | $ | (32,665 | ) | $ | 1,627,270 | ||||||||||||
Common stock issued for compensatory plans | 7,632 | 8 | 53,369 | 2,145 | 3,036 | — | — | 5,189 | |||||||||||||||||||||
Dividends on common stock, $1.60 per share | — | — | — | — | — | (97,367 | ) | — | (97,367 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 133,669 | — | 133,669 | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 6,080 | 6,080 | |||||||||||||||||||||
Balances, Dec. 31, 2015 | 61,058,918 | $ | 61,059 | (576,450 | ) | $ | (23,165 | ) | $ | 418,518 | $ | 1,245,014 | $ | (26,585 | ) | $ | 1,674,841 | ||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO | ||
CLECO POWER |
CLECO POWER | CLECO POWER | |||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||||||||
Operating revenue | ||||||||||||||||||||||
Electric operations | $ | 1,142,389 | $ | 1,225,960 | $ | 1,047,548 | $ | 1,108,389 | $ | 1,091,229 | $ | 1,142,389 | ||||||||||
Other operations | 67,109 | 64,893 | 48,909 | 77,522 | 68,573 | 67,109 | ||||||||||||||||
Affiliate revenue | 1,142 | 1,326 | 1,338 | 851 | 884 | 1,142 | ||||||||||||||||
Gross operating revenue | 1,210,640 | 1,292,179 | 1,097,795 | 1,186,762 | 1,160,686 | 1,210,640 | ||||||||||||||||
Electric customer credits | (2,173 | ) | (23,530 | ) | (1,836 | ) | (1,566 | ) | (1,513 | ) | (2,173 | ) | ||||||||||
Operating revenue, net | 1,208,467 | 1,268,649 | 1,095,959 | 1,185,196 | 1,159,173 | 1,208,467 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Fuel used for electric generation | 373,117 | 322,696 | 329,874 | 339,346 | 346,520 | 373,117 | ||||||||||||||||
Power purchased for utility customers | 130,095 | 247,686 | 76,962 | 152,913 | 119,586 | 130,095 | ||||||||||||||||
Other operations | 128,697 | 116,664 | 114,884 | 123,192 | 125,892 | 128,697 | ||||||||||||||||
Maintenance | 87,416 | 96,054 | 85,638 | 87,574 | 93,340 | 87,416 | ||||||||||||||||
Depreciation and amortization | 147,839 | 144,026 | 135,717 | 157,999 | 146,142 | 147,839 | ||||||||||||||||
Taxes other than income taxes | 47,102 | 41,812 | 46,203 | 46,539 | 48,287 | 47,102 | ||||||||||||||||
Gain on sale of assets | — | (4 | ) | — | ||||||||||||||||||
Merger commitment costs | — | 151,501 | — | |||||||||||||||||||
Gain on sale of asset | — | (1,095 | ) | — | ||||||||||||||||||
Total operating expenses | 914,266 | 968,934 | 789,278 | 907,563 | 1,030,173 | 914,266 | ||||||||||||||||
Operating income | 294,201 | 299,715 | 306,681 | 277,633 | 129,000 | 294,201 | ||||||||||||||||
Interest income | 725 | 1,707 | 1,100 | 1,283 | 860 | 725 | ||||||||||||||||
Allowance for equity funds used during construction | 3,063 | 5,380 | 4,081 | 8,320 | 4,458 | 3,063 | ||||||||||||||||
Other income | 1,764 | 1,483 | 4,883 | 2,990 | 1,601 | 1,764 | ||||||||||||||||
Other expense | (2,549 | ) | (2,322 | ) | (4,277 | ) | (2,795 | ) | (1,976 | ) | (2,549 | ) | ||||||||||
Interest charges | ||||||||||||||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 77,446 | 76,253 | 83,993 | 71,649 | 77,739 | 77,446 | ||||||||||||||||
Allowance for borrowed funds used during construction | (886 | ) | (1,580 | ) | (1,316 | ) | (2,287 | ) | (1,293 | ) | (886 | ) | ||||||||||
Total interest charges | 76,560 | 74,673 | 82,677 | 69,362 | 76,446 | 76,560 | ||||||||||||||||
Income before income taxes | 220,644 | 231,290 | 229,791 | 218,069 | 57,497 | 220,644 | ||||||||||||||||
Federal and state income tax expense | 79,294 | 76,974 | 79,381 | 67,331 | 18,369 | 79,294 | ||||||||||||||||
Net income | $ | 141,350 | $ | 154,316 | $ | 150,410 | $ | 150,738 | $ | 39,128 | $ | 141,350 | ||||||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER |
CLECO POWER | CLECO POWER | |||||||||||||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||||||||
Net income | $ | 141,350 | $ | 154,316 | $ | 150,410 | $ | 150,738 | $ | 39,128 | $ | 141,350 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $9 in 2015, tax benefit of $1,453 in 2014, and tax expense of $2,355 in 2013) | (15 | ) | (2,323 | ) | 3,766 | |||||||||||||||||
Net gain on cash flow hedges (net of tax expense of $132 in 2015, $132 in 2014, and $925 in 2013) | 211 | 212 | 1,478 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | 196 | (2,111 | ) | 5,244 | ||||||||||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $296, tax expense of $2,163, and tax benefit of $9, respectively) | (472 | ) | 3,459 | (15 | ) | |||||||||||||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $132, $132, and $132, respectively) | 211 | 211 | 211 | |||||||||||||||||||
Total other comprehensive (loss) income, net of tax | (261 | ) | 3,670 | 196 | ||||||||||||||||||
Comprehensive income, net of tax | $ | 141,546 | $ | 152,205 | $ | 155,654 | $ | 150,477 | $ | 42,798 | $ | 141,546 | ||||||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER |
CLECO POWER | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Assets | ||||||||||||||
Utility plant and equipment | ||||||||||||||
Property, plant, and equipment | $ | 4,645,698 | $ | 4,495,490 | $ | 4,893,484 | $ | 4,790,565 | ||||||
Accumulated depreciation | (1,525,298 | ) | (1,433,206 | ) | (1,712,590 | ) | (1,618,241 | ) | ||||||
Net property, plant, and equipment | 3,120,400 | 3,062,284 | 3,180,894 | 3,172,324 | ||||||||||
Construction work in progress | 66,069 | 96,702 | 185,507 | 77,306 | ||||||||||
Total utility plant, net | 3,186,469 | 3,158,986 | ||||||||||||
Total utility plant and equipment, net | 3,366,401 | 3,249,630 | ||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | 65,705 | 39,162 | 69,816 | 21,482 | ||||||||||
Restricted cash and cash equivalents | 9,263 | 8,986 | 13,081 | 23,084 | ||||||||||
Customer accounts receivable (less allowance for doubtful accounts of $2,674 in 2015 and $922 in 2014) | 43,255 | 41,500 | ||||||||||||
Customer accounts receivable (less allowance for doubtful accounts of $1,457 in 2017 and $7,199 in 2016) | 60,117 | 56,780 | ||||||||||||
Accounts receivable - affiliate | 1,908 | 23,621 | 1,355 | 1,406 | ||||||||||
Other accounts receivable | 27,553 | 27,949 | 30,680 | 19,457 | ||||||||||
Taxes receivable, net | — | 12,490 | ||||||||||||
Unbilled revenue | 33,995 | 38,475 | 36,398 | 34,268 | ||||||||||
Fuel inventory, at average cost | 72,838 | 64,747 | 87,520 | 46,410 | ||||||||||
Materials and supplies, at average cost | 76,731 | 71,124 | 85,404 | 81,818 | ||||||||||
Energy risk management assets | 7,673 | 10,776 | 7,396 | 7,884 | ||||||||||
Accumulated deferred federal and state income taxes, net | — | 6,725 | ||||||||||||
Accumulated deferred fuel | 12,910 | 21,554 | 13,980 | 20,787 | ||||||||||
Cash surrender value of company-owned life insurance policies | 20,003 | 19,678 | 20,278 | 20,018 | ||||||||||
Prepayments | 6,309 | 7,283 | 7,236 | 5,892 | ||||||||||
Regulatory assets | 14,117 | 12,212 | 15,812 | 17,721 | ||||||||||
Other current assets | 337 | 368 | 475 | 577 | ||||||||||
Total current assets | 392,597 | 394,160 | 449,548 | 370,074 | ||||||||||
Equity investment in investees | 16,822 | 14,532 | ||||||||||||
Equity investment in investee | 18,172 | 18,672 | ||||||||||||
Prepayments | 4,542 | 4,891 | 1,887 | 4,731 | ||||||||||
Restricted cash and cash equivalents | 16,174 | 15,109 | 20,060 | 23,389 | ||||||||||
Regulatory assets - deferred taxes, net | 236,941 | 234,370 | — | 237,449 | ||||||||||
Regulatory assets | 284,689 | 311,867 | 257,408 | 268,016 | ||||||||||
Intangible asset | 74,963 | 90,642 | 41,701 | 58,473 | ||||||||||
Other deferred charges | 20,140 | 8,385 | 33,564 | 37,014 | ||||||||||
Total assets | $ | 4,233,337 | $ | 4,232,942 | $ | 4,188,741 | $ | 4,267,448 | ||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | ||||||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER |
CLECO POWER | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Liabilities and member’s equity | ||||||||||||||
Member’s equity | $ | 1,552,404 | $ | 1,545,858 | $ | 1,550,679 | $ | 1,535,202 | ||||||
Long-term debt, net | 1,234,039 | 1,282,609 | 1,341,475 | 1,235,056 | ||||||||||
Total capitalization | 2,786,443 | 2,828,467 | 2,892,154 | 2,770,258 | ||||||||||
Current liabilities | ||||||||||||||
Long-term debt due within one year | 19,421 | 18,272 | 19,193 | 19,715 | ||||||||||
Accounts payable | 88,235 | 116,925 | 134,374 | 101,874 | ||||||||||
Accounts payable - affiliate | 6,598 | 7,760 | 8,697 | 7,190 | ||||||||||
Customer deposits | 55,233 | 53,411 | 58,582 | 56,599 | ||||||||||
Provision for rate refund | 2,696 | 2,264 | 4,206 | 3,974 | ||||||||||
Taxes payable | 17,045 | 3,115 | ||||||||||||
Provision for merger commitments | 2,582 | 14,371 | ||||||||||||
Taxes payable, net | 31,611 | — | ||||||||||||
Interest accrued | 7,813 | 9,224 | 7,083 | 7,141 | ||||||||||
Energy risk management liabilities | 275 | 827 | 352 | 201 | ||||||||||
Regulatory liabilities - other | 312 | 312 | ||||||||||||
Other current liabilities | 10,078 | 9,380 | 13,238 | 9,951 | ||||||||||
Total current liabilities | 207,706 | 221,490 | 279,918 | 221,016 | ||||||||||
Commitments and contingencies (Note 14) | ||||||||||||||
Commitments and contingencies (Note 15) | ||||||||||||||
Long-term liabilities and deferred credits | ||||||||||||||
Accumulated deferred federal and state income taxes, net | 1,043,531 | 1,001,332 | 656,362 | 1,068,592 | ||||||||||
Accumulated deferred investment tax credits | 3,245 | 4,161 | 2,089 | 2,751 | ||||||||||
Postretirement benefit obligations | 152,152 | 135,825 | 173,747 | 159,107 | ||||||||||
Regulatory liabilities - other | — | 312 | ||||||||||||
Regulatory liabilities - deferred taxes, net | 140,426 | — | ||||||||||||
Restricted storm reserve | 16,177 | 14,916 | 14,469 | 17,385 | ||||||||||
Other deferred credits | 24,083 | 26,439 | 29,576 | 28,339 | ||||||||||
Total long-term liabilities and deferred credits | 1,239,188 | 1,182,985 | 1,016,669 | 1,276,174 | ||||||||||
Total liabilities and member’s equity | $ | 4,233,337 | $ | 4,232,942 | $ | 4,188,741 | $ | 4,267,448 | ||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Operating activities | |||||||||||
Net income | $ | 141,350 | $ | 154,316 | $ | 150,410 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 152,833 | 151,252 | 147,452 | ||||||||
Allowance for equity funds used during construction | (3,063 | ) | (5,380 | ) | (4,081 | ) | |||||
Net deferred income taxes | 43,675 | 82,315 | 81,534 | ||||||||
Deferred fuel costs | 9,899 | (11,558 | ) | 5,630 | |||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | (13,681 | ) | 11,689 | (26,491 | ) | ||||||
Accounts and notes receivable, affiliate | 6,195 | 709 | 2,113 | ||||||||
Unbilled revenue | 4,481 | (7,310 | ) | (2,504 | ) | ||||||
Fuel inventory and materials and supplies | (13,698 | ) | (12,114 | ) | (18,539 | ) | |||||
Accounts payable | (20,575 | ) | 5,459 | (848 | ) | ||||||
Accounts and notes payable, affiliate | (3,990 | ) | (2,749 | ) | (3,403 | ) | |||||
Customer deposits | 12,162 | 14,960 | 12,213 | ||||||||
Postretirement benefit obligations | 7,405 | 4,963 | (28,306 | ) | |||||||
Regulatory assets and liabilities, net | 18,793 | (777 | ) | (30,524 | ) | ||||||
Other deferred accounts | (15,991 | ) | (10,798 | ) | (8,212 | ) | |||||
Taxes accrued | 36,287 | (26,373 | ) | 5,372 | |||||||
Interest accrued | (1,412 | ) | (4,364 | ) | (304 | ) | |||||
Other operating | 5,868 | 2,832 | (2,108 | ) | |||||||
Net cash provided by operating activities | 366,538 | 347,072 | 279,404 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (156,357 | ) | (206,607 | ) | (181,154 | ) | |||||
Allowance for equity funds used during construction | 3,063 | 5,380 | 4,081 | ||||||||
Property, plant, and equipment grants | — | — | 729 | ||||||||
Contributions to equity investment in investee | (2,290 | ) | — | — | |||||||
Transfer of cash (to) from restricted accounts, net | (1,341 | ) | (10,097 | ) | 125 | ||||||
Purchase of restricted investments | �� | — | (8,782 | ) | |||||||
Sale of restricted investments | — | 11,138 | — | ||||||||
Maturity of restricted investments | — | 1,458 | 6,816 | ||||||||
Other investing | 881 | 2,153 | 2,367 | ||||||||
Net cash used in investing activities | (156,044 | ) | (196,575 | ) | (175,818 | ) | |||||
Financing activities | |||||||||||
Draws on credit facility | 63,000 | 157,000 | 180,000 | ||||||||
Payments on credit facility | (83,000 | ) | (157,000 | ) | (160,000 | ) | |||||
Issuance of long-term debt | 75,000 | — | 160,000 | ||||||||
Repayment of long-term debt | (100,824 | ) | (14,876 | ) | (113,969 | ) | |||||
Repurchase of long-term debt | — | — | (60,000 | ) | |||||||
Settlement of interest rate swap | — | — | (3,269 | ) | |||||||
Distribution to parent | (135,000 | ) | (115,000 | ) | (105,000 | ) | |||||
Other financing | (3,127 | ) | (2,514 | ) | (3,661 | ) | |||||
Net cash used in financing activities | (183,951 | ) | (132,390 | ) | (105,899 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 26,543 | 18,107 | (2,313 | ) | |||||||
Cash and cash equivalents at beginning of period | 39,162 | 21,055 | 23,368 | ||||||||
Cash and cash equivalents at end of period | $ | 65,705 | $ | 39,162 | $ | 21,055 | |||||
Supplementary cash flow information | |||||||||||
Interest paid, net of amount capitalized | $ | 74,219 | $ | 74,326 | $ | 77,079 | |||||
Income taxes (refunded) paid, net | $ | (27 | ) | $ | 257 | $ | (456 | ) | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 7,249 | $ | 12,225 | $ | 18,414 | |||||
Decreases in property, plant, and equipment | $ | 234 | $ | 47 | $ | 1,280 | |||||
Non-cash additions to property, plant, and equipment - ARO | $ | 184 | $ | 4,400 | $ | — | |||||
Non-cash additions to property, plant, and equipment - Coughlin | $ | — | $ | 176,244 | $ | — | |||||
Non-cash donation of property | $ | 373 | $ | — | $ | — | |||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Operating activities | |||||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 165,200 | 152,978 | 152,833 | ||||||||
Gain on sales of asset | — | (1,095 | ) | — | |||||||
Provision for doubtful accounts | 2,677 | 5,512 | 2,986 | ||||||||
Unearned compensation expense | 1,972 | 1,572 | 2,000 | ||||||||
Allowance for equity funds used during construction | (8,320 | ) | (4,458 | ) | (3,063 | ) | |||||
Deferred income taxes | (34,191 | ) | 20,492 | 43,675 | |||||||
Deferred fuel costs | 11,909 | (7,215 | ) | 9,899 | |||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | (25,696 | ) | (23,306 | ) | (13,681 | ) | |||||
Accounts receivable, affiliate | 1,865 | 2,612 | 6,195 | ||||||||
Unbilled revenue | (2,129 | ) | (274 | ) | 4,481 | ||||||
Fuel inventory and materials and supplies | (44,995 | ) | 22,192 | (13,698 | ) | ||||||
Prepayments | 2,745 | 228 | 1,323 | ||||||||
Accounts payable | 11,005 | 9,140 | (20,575 | ) | |||||||
Accounts payable, affiliate | 1,349 | (3,639 | ) | (3,990 | ) | ||||||
Customer deposits | 12,381 | 10,675 | 12,162 | ||||||||
Provision for merger commitments | (12,971 | ) | 21,964 | — | |||||||
Postretirement benefit obligations | 4,849 | 5,076 | 7,405 | ||||||||
Regulatory assets and liabilities, net | 10,544 | 17,506 | 18,793 | ||||||||
Other deferred accounts | (8,137 | ) | (21,818 | ) | (15,991 | ) | |||||
Taxes accrued | 44,101 | (29,535 | ) | 36,287 | |||||||
Interest accrued | (59 | ) | (671 | ) | (1,412 | ) | |||||
Other operating | 2,241 | (1,307 | ) | (441 | ) | ||||||
Net cash provided by operating activities | 287,078 | 215,757 | 366,538 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (235,252 | ) | (186,143 | ) | (156,357 | ) | |||||
Allowance for equity funds used during construction | 8,320 | 4,458 | 3,063 | ||||||||
Proceeds from sale of property, plant, and equipment | 4,078 | 2,698 | — | ||||||||
Reimbursement for property loss | 187 | 3,212 | — | ||||||||
Contributions to equity investment in investee | — | (2,450 | ) | (2,290 | ) | ||||||
Transfer of cash from (to) restricted accounts, net | 13,332 | (21,037 | ) | (1,341 | ) | ||||||
Other investing | 500 | 622 | 881 | ||||||||
Net cash used in investing activities | (208,835 | ) | (198,640 | ) | (156,044 | ) | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER |
CLECO POWER | |||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | AOCI | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2012 | $ | 1,340,340 | $ | (20,421 | ) | $ | 1,319,919 | ||||
Other comprehensive income, net of tax | — | 5,244 | 5,244 | ||||||||
Distributions to parent | (105,000 | ) | — | (105,000 | ) | ||||||
Net income | 150,410 | — | 150,410 | ||||||||
Balances, Dec. 31, 2013 | 1,385,750 | (15,177 | ) | 1,370,573 | |||||||
Other comprehensive loss, net of tax | — | (2,111 | ) | (2,111 | ) | ||||||
Non-cash contributions from parent | 138,080 | — | 138,080 | ||||||||
Distributions to parent | (115,000 | ) | — | (115,000 | ) | ||||||
Net income | 154,316 | — | 154,316 | ||||||||
Balances, Dec. 31, 2014 | 1,563,146 | (17,288 | ) | 1,545,858 | |||||||
Other comprehensive income, net of tax | — | 196 | 196 | ||||||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 141,350 | — | 141,350 | ||||||||
Balances, Dec. 31, 2015 | $ | 1,569,496 | $ | (17,092 | ) | $ | 1,552,404 | ||||
The accompanying notes are an integral part of the consolidated financial statements. |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Financing activities | |||||||||||
Draws on credit facility | 106,000 | 15,000 | 63,000 | ||||||||
Payments on credit facility | (106,000 | ) | (15,000 | ) | (83,000 | ) | |||||
Issuances of long-term debt | 125,000 | 330,000 | 75,000 | ||||||||
Repayments of long-term debt | (17,896 | ) | (326,814 | ) | (100,824 | ) | |||||
Contribution from parent | — | 50,000 | — | ||||||||
Distributions to parent | (135,000 | ) | (110,000 | ) | (135,000 | ) | |||||
Other financing | (2,013 | ) | (4,526 | ) | (3,127 | ) | |||||
Net cash used in financing activities | (29,909 | ) | (61,340 | ) | (183,951 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 48,334 | (44,223 | ) | 26,543 | |||||||
Cash and cash equivalents at beginning of period | 21,482 | 65,705 | 39,162 | ||||||||
Cash and cash equivalents at end of period | $ | 69,816 | $ | 21,482 | $ | 65,705 | |||||
Supplementary cash flow information | |||||||||||
Interest paid, net of amount capitalized | $ | 65,984 | $ | 92,585 | $ | 74,219 | |||||
Income taxes refunded, net | $ | — | $ | (485 | ) | $ | (27 | ) | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 30,883 | $ | 16,755 | $ | 7,249 | |||||
Non-cash additions to property, plant, and equipment | $ | 3,015 | $ | — | $ | 184 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER |
CLECO POWER | |||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | AOCI | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2014 | $ | 1,563,146 | $ | (17,288 | ) | $ | 1,545,858 | ||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 141,350 | — | 141,350 | ||||||||
Other comprehensive income, net of tax | — | 196 | 196 | ||||||||
Balances, Dec. 31, 2015 | $ | 1,569,496 | $ | (17,092 | ) | $ | 1,552,404 | ||||
Contribution from parent | 50,000 | — | 50,000 | ||||||||
Distributions to parent | (110,000 | ) | — | (110,000 | ) | ||||||
Net income | 39,128 | — | 39,128 | ||||||||
Other comprehensive income, net of tax | — | 3,670 | 3,670 | ||||||||
Balances, Dec. 31, 2016 | $ | 1,548,624 | $ | (13,422 | ) | $ | 1,535,202 | ||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 150,738 | — | 150,738 | ||||||||
Other comprehensive loss, net of tax | — | (261 | ) | (261 | ) | ||||||
Balances, Dec. 31, 2017 | $ | 1,564,362 | $ | (13,683 | ) | $ | 1,550,679 | ||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Index to Applicable Notes to the Financial Statements of Registrants |
Note 1 | The Company | Cleco |
Note 2 | Summary of Significant Accounting Policies | Cleco |
Note 3 | Business Combinations | Cleco |
Note 4 | Regulatory Assets and Liabilities | Cleco |
Note 5 | Cleco | |
Note 6 | Cleco | |
Note 7 | Cleco | |
Note 8 | Common Stock | Cleco and Cleco Power |
Note 9 | Pension Plan and Employee Benefits | Cleco |
Note 10 | Cleco | |
Note 11 | Disclosures about Segments | Cleco |
Note 12 | Cleco | |
Note 13 | Cleco | |
Note 14 | Operating Leases | Cleco and Cleco Power |
Note 15 | Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Cleco |
Note 16 | Cleco | |
Note 17 | Cleco | |
Note 18 | Accumulated Other Comprehensive Loss | Cleco |
Note 19 | Miscellaneous Financial Information (Unaudited) | Cleco |
Note 20 | Cleco |
Notes to the Financial Statements |
Note 1 — The Company |
◦ | Cleco Holdings, a holding company, |
◦ | Support Group, a shared services subsidiary, |
◦ | Diversified Lands, an investment subsidiary, and |
◦ | Attala and Perryville, two subsidiaries that owned and operated transmission interconnection facilities prior to the assets being sold by Cleco on December 29, 2017. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Amortization | $ | 2,367 | $ | 2,351 | $ | 921 | $ | 2,194 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco Power | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Amortization | $ | 1,887 | $ | 2,405 | $ | 1,718 |
CATEGORY | YEARS | ||
Utility Plants | |||
Generation | 10 | – | 95 |
Distribution | 15 | – | 50 |
Transmission | 5 | – | 55 |
Other utility plant | 5 | – | 45 |
Other property, plant, and equipment | 5 | – | 45 |
Cleco | ||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Regulated utility plants | $ | 4,645,698 | $ | 4,495,490 | ||||||||||
Other | 15,514 | 13,470 | ||||||||||||
Utility plants | ||||||||||||||
Generation | $ | 1,908,344 | $ | 1,866,601 | ||||||||||
Distribution | 1,015,472 | 955,126 | ||||||||||||
Transmission | 512,428 | 503,996 | ||||||||||||
Other utility plant | 153,900 | 146,976 | ||||||||||||
Other property, plant, and equipment | 4,381 | 3,882 | ||||||||||||
Total property, plant, and equipment | 4,661,212 | 4,508,960 | 3,594,525 | 3,476,581 | ||||||||||
Accumulated depreciation | (1,536,158 | ) | (1,442,960 | ) | (192,348 | ) | (75,816 | ) | ||||||
Net property, plant, and equipment | $ | 3,125,054 | $ | 3,066,000 | $ | 3,402,177 | $ | 3,400,765 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Regulated utility plants | |||||||
Generation | $ | 2,442,987 | $ | 2,406,572 | |||
Distribution | 1,462,193 | 1,405,703 | |||||
Transmission | 725,199 | 719,052 | |||||
Other utility plant | 263,105 | 259,238 | |||||
Total property, plant, and equipment | 4,893,484 | 4,790,565 | |||||
Accumulated depreciation | (1,712,590 | ) | (1,618,241 | ) | |||
Net property, plant, and equipment | $ | 3,180,894 | $ | 3,172,324 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Acadia Unit 1 | |||||||
Plant acquisition adjustment | $ | 95,578 | $ | 95,578 | |||
Less: accumulated amortization | 18,567 | 15,384 | |||||
Net plant acquisition adjustment | $ | 77,011 | $ | 80,194 | |||
Teche and other | |||||||
Plant acquisition adjustment | $ | 5,271 | (1) | $ | 5,359 | ||
Less: accumulated amortization | 4,655 | 4,488 | |||||
Net plant acquisition adjustment | $ | 616 | $ | 871 | |||
(1) In October 2015, the Franklin Gas Turbine, a 7-MW natural gas generating unit, was retired. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Cleco Power’s charitable contributions | 1,200 | 1,200 | |||||
Cleco Power’s rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Diversified Lands’ mitigation escrow | 21 | 21 | |||||
Cleco Power’s future storm restoration costs | 14,456 | 17,379 | |||||
Cleco Power’s charitable contributions | 3,575 | 4,179 | |||||
Cleco Power’s rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,081 | 23,410 | |||||
Total restricted cash and cash equivalents | $ | 33,162 | $ | 46,494 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Charitable contributions | 1,200 | 1,200 | |||||
Rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Future storm restoration costs | 14,456 | 17,379 | |||||
Charitable contributions | 3,575 | 4,179 | |||||
Rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,060 | 23,389 | |||||
Total restricted cash and cash equivalents | $ | 33,141 | $ | 46,473 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Current: | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 9,263 | $ | 8,986 | |||
Non-current: | |||||||
Diversified Lands’ mitigation escrow | 21 | 21 | |||||
Cleco Power’s future storm restoration costs | 16,174 | 14,915 | |||||
Cleco Power’s building renovation escrow | — | 194 | |||||
Total non-current | 16,195 | 15,130 | |||||
Total restricted cash and cash equivalents | $ | 25,458 | $ | 24,116 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Operating revenue | |||||||||||||||
Electric operations | $ | 1,097,632 | $ | 802,592 | $ | 281,154 | $ | 1,142,389 | |||||||
Other operations | 79,580 | 51,562 | 19,080 | 69,186 | |||||||||||
Gross operating revenue | 1,177,212 | 854,154 | 300,234 | 1,211,575 | |||||||||||
Electric customer credits | (1,566 | ) | (1,149 | ) | (364 | ) | (2,173 | ) | |||||||
Operating revenue, net | 1,175,646 | 853,005 | 299,870 | 1,209,402 | |||||||||||
Operating expenses | |||||||||||||||
Fuel used for electric generation | 339,346 | 250,142 | 96,378 | 373,117 | |||||||||||
Power purchased for utility customers | 152,913 | 92,337 | 27,249 | 130,095 | |||||||||||
Other operations | 125,699 | 90,313 | 33,563 | 127,410 | |||||||||||
Maintenance | 88,129 | 63,944 | 29,813 | 88,137 | |||||||||||
Depreciation and amortization | 166,439 | 109,739 | 44,076 | 149,579 | |||||||||||
Taxes other than income taxes | 48,546 | 35,543 | 14,611 | 49,134 | |||||||||||
Merger transaction and commitment costs | 287 | 174,696 | 34,912 | 4,591 | |||||||||||
Gain on sale of assets | (2 | ) | — | (1,095 | ) | — | |||||||||
Total operating expenses | 921,357 | 816,714 | 279,507 | 922,063 | |||||||||||
Operating income | 254,289 | 36,291 | 20,363 | 287,339 | |||||||||||
Interest income | 1,424 | 840 | 265 | 895 | |||||||||||
Allowance for equity funds used during construction | 8,320 | 3,735 | 723 | 3,063 | |||||||||||
Other income | 6,474 | 3,350 | 870 | 1,443 | |||||||||||
Other expense | (2,435 | ) | (1,385 | ) | (590 | ) | (3,376 | ) | |||||||
Interest charges | |||||||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 125,200 | 90,852 | 22,330 | 78,877 | |||||||||||
Allowance for borrowed funds used during construction | (2,287 | ) | (1,086 | ) | (207 | ) | (886 | ) | |||||||
Total interest charges | 122,913 | 89,766 | 22,123 | 77,991 | |||||||||||
Income (loss) before income taxes | 145,159 | (46,935 | ) | (492 | ) | 211,373 | |||||||||
Federal and state income tax expense (benefit) | 7,079 | (22,822 | ) | 3,468 | 77,704 | ||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
Other comprehensive (loss) income, net of tax | |||||||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $2,764 and tax expense of $938, $367, and $3,670, respectively) | (4,421 | ) | 1,500 | 587 | 5,869 | ||||||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $0, $0, $37, and $132, respectively) | — | — | 60 | 211 | |||||||||||
Total other comprehensive (loss) income, net of tax | (4,421 | ) | 1,500 | 647 | 6,080 | ||||||||||
Comprehensive income (loss), net of tax | $ | 133,659 | $ | (22,613 | ) | $ | (3,313 | ) | $ | 139,749 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 119,040 | $ | 23,077 | |||
Restricted cash and cash equivalents | 13,081 | 23,084 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,457 in 2017 and $7,199 in 2016) | 60,117 | 56,780 | |||||
Other accounts receivable | 30,806 | 19,778 | |||||
Unbilled revenue | 36,398 | 34,268 | |||||
Fuel inventory, at average cost | 87,520 | 46,410 | |||||
Materials and supplies, at average cost | 85,404 | 81,818 | |||||
Energy risk management assets | 7,396 | 7,884 | |||||
Accumulated deferred fuel | 13,980 | 20,787 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 83,117 | 77,225 | |||||
Prepayments | 9,050 | 7,813 | |||||
Regulatory assets | 24,670 | 26,803 | |||||
Other current assets | 1,146 | 1,315 | |||||
Total current assets | 571,725 | 427,042 | |||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | 3,594,525 | 3,476,581 | |||||
Accumulated depreciation | (192,348 | ) | (75,816 | ) | |||
Net property, plant, and equipment | 3,402,177 | 3,400,765 | |||||
Construction work in progress | 186,629 | 78,577 | |||||
Total property, plant, and equipment, net | 3,588,806 | 3,479,342 | |||||
Equity investment in investee | 18,172 | 18,672 | |||||
Goodwill | 1,490,797 | 1,490,797 | |||||
Prepayments | 1,887 | 4,731 | |||||
Restricted cash and cash equivalents | 20,081 | 23,410 | |||||
Regulatory assets - deferred taxes, net | — | 237,449 | |||||
Regulatory assets | 432,358 | 454,644 | |||||
Net investment in direct financing lease | — | 13,420 | |||||
Intangible assets | 114,850 | 142,634 | |||||
Tax credit fund investment, net | 4,355 | 11,888 | |||||
Other deferred charges | 35,351 | 39,115 | |||||
Total assets | $ | 6,278,382 | $ | 6,343,144 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Liabilities and member’s equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 19,193 | $ | 19,715 | |||
Accounts payable | 147,562 | 112,087 | |||||
Customer deposits | 58,582 | 56,599 | |||||
Provision for rate refund | 4,206 | 3,974 | |||||
Provision for merger commitments | 2,582 | 14,371 | |||||
Taxes payable, net | 22,698 | 3,942 | |||||
Interest accrued | 14,703 | 14,783 | |||||
Energy risk management liabilities | 352 | 201 | |||||
Deferred compensation | 12,132 | 11,654 | |||||
Other current liabilities | 18,344 | 14,850 | |||||
Total current liabilities | 300,354 | 252,176 | |||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 614,812 | 1,033,055 | |||||
Accumulated deferred investment tax credits | 2,089 | 2,751 | |||||
Postretirement benefit obligations | 242,135 | 223,003 | |||||
Regulatory liabilities - deferred taxes, net | 140,426 | — | |||||
Restricted storm reserve | 14,469 | 17,385 | |||||
Other deferred credits | 31,635 | 29,440 | |||||
Total long-term liabilities and deferred credits | 1,045,566 | 1,305,634 | |||||
Long-term debt, net | 2,836,105 | 2,738,571 | |||||
Total liabilities | 4,182,025 | 4,296,381 | |||||
Commitments and contingencies (Note 15) | |||||||
Member’s equity | |||||||
Membership interest | 2,069,376 | 2,069,376 | |||||
Retained earnings (Accumulated deficit) | 29,902 | (24,113 | ) | ||||
Accumulated other comprehensive (loss) income | (2,921 | ) | 1,500 | ||||
Total member’s equity | 2,096,357 | 2,046,763 | |||||
Total liabilities and member’s equity | $ | 6,278,382 | $ | 6,343,144 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Operating activities | |||||||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||
Depreciation and amortization | 186,326 | 141,544 | 45,869 | 156,211 | |||||||||||
Gain on sales of assets | (2 | ) | — | (1,095 | ) | — | |||||||||
Provision for doubtful accounts | 2,778 | 4,473 | 1,212 | 3,464 | |||||||||||
Unearned compensation expense | 3,745 | 1,147 | 3,276 | 6,344 | |||||||||||
Allowance for equity funds used during construction | (8,320 | ) | (3,735 | ) | (723 | ) | (3,063 | ) | |||||||
Deferred income taxes | (41,966 | ) | (21,053 | ) | 2,219 | 74,103 | |||||||||
Deferred fuel costs | 11,909 | (8,192 | ) | 977 | 9,899 | ||||||||||
Cash surrender value of company-/trust-owned life insurance | (5,892 | ) | (2,561 | ) | (840 | ) | 950 | ||||||||
Changes in assets and liabilities | |||||||||||||||
Accounts receivable | (25,584 | ) | (21,537 | ) | (1,865 | ) | (13,656 | ) | |||||||
Unbilled revenue | (2,129 | ) | (837 | ) | 563 | 4,481 | |||||||||
Fuel inventory and materials and supplies | (44,995 | ) | 2,880 | 19,312 | (13,698 | ) | |||||||||
Prepayments | 2,852 | (2,514 | ) | 2,395 | 2,750 | ||||||||||
Accounts payable | 14,705 | 5,183 | 8,348 | (25,294 | ) | ||||||||||
Customer deposits | 12,381 | 7,333 | 3,342 | 12,162 | |||||||||||
Provision for merger commitments | (12,971 | ) | 21,964 | — | — | ||||||||||
Postretirement benefit obligations | 4,884 | 3,750 | 9,746 | 14,173 | |||||||||||
Regulatory assets and liabilities, net | 12,531 | 13,750 | 5,178 | 18,793 | |||||||||||
Other deferred accounts | (8,380 | ) | (28,010 | ) | 6,878 | (17,454 | ) | ||||||||
Taxes accrued | 23,118 | (24,210 | ) | 10,820 | (831 | ) | |||||||||
Interest accrued | (582 | ) | (11,104 | ) | 17,909 | (1,024 | ) | ||||||||
Deferred compensation | 308 | (799 | ) | (793 | ) | (1,166 | ) | ||||||||
Other operating | 2,632 | (2,037 | ) | 1,012 | 209 | ||||||||||
Net cash provided by operating activities | 265,428 | 51,322 | 129,780 | 361,022 | |||||||||||
Investing activities | |||||||||||||||
Additions to property, plant, and equipment | (236,932 | ) | (144,444 | ) | (42,392 | ) | (156,819 | ) | |||||||
Allowance for equity funds used during construction | 8,320 | 3,735 | 723 | 3,063 | |||||||||||
Proceeds from sale of property, plant, and equipment | 17,499 | 766 | 1,932 | — | |||||||||||
Reimbursement for property loss | 187 | 3,159 | 53 | — | |||||||||||
Contributions to equity investment in investee | — | — | (2,450 | ) | (2,290 | ) | |||||||||
Premiums paid on trust-owned life insurance | — | — | — | (3,607 | ) | ||||||||||
Return of equity investment in tax credit fund | 7,502 | 901 | 476 | 2,128 | |||||||||||
Contributions to tax credit fund | (630 | ) | — | — | (9,966 | ) | |||||||||
Transfer of cash from (to) restricted accounts, net | 13,332 | (25,884 | ) | 4,847 | (1,341 | ) | |||||||||
Other investing | 500 | 622 | — | 881 | |||||||||||
Net cash used in investing activities | (190,222 | ) | (161,145 | ) | (36,811 | ) | (167,951 | ) | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Financing activities | |||||||||||||||
Draws on credit facilities | 179,000 | 15,000 | 3,000 | 120,000 | |||||||||||
Payments on credit facilities | (179,000 | ) | (15,000 | ) | (10,000 | ) | (163,000 | ) | |||||||
Issuances of long-term debt | 125,000 | 1,680,000 | — | 75,000 | |||||||||||
Repayments of long-term debt | (17,896 | ) | (1,668,268 | ) | (8,546 | ) | (100,824 | ) | |||||||
Payment of financing costs | (463 | ) | (8,655 | ) | (43 | ) | (693 | ) | |||||||
Dividends paid on common stock | — | (572 | ) | (24,579 | ) | (97,283 | ) | ||||||||
Contribution from member | — | 100,720 | — | — | |||||||||||
Distributions to member | (84,065 | ) | (88,765 | ) | — | — | |||||||||
Other financing | (1,819 | ) | (1,890 | ) | (717 | ) | (2,448 | ) | |||||||
Net cash provided by (used in) financing activities | 20,757 | 12,570 | (40,885 | ) | (169,248 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 95,963 | (97,253 | ) | 52,084 | 23,823 | ||||||||||
Cash and cash equivalents at beginning of period | 23,077 | 120,330 | 68,246 | 44,423 | |||||||||||
Cash and cash equivalents at end of period | $ | 119,040 | $ | 23,077 | $ | 120,330 | $ | 68,246 | |||||||
Supplementary cash flow information | |||||||||||||||
Interest paid, net of amount capitalized | $ | 118,009 | $ | 116,496 | $ | 2,478 | $ | 74,349 | |||||||
Income taxes (refunded) paid, net | $ | (6 | ) | $ | 4,263 | $ | (481 | ) | $ | 1,434 | |||||
Supplementary non-cash investing and financing activities | |||||||||||||||
Accrued additions to property, plant, and equipment | $ | 31,083 | $ | 17,599 | $ | 10,619 | $ | 7,313 | |||||||
Non-cash additions to property, plant, and equipment | $ | 3,015 | $ | — | $ | — | $ | 184 | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Changes in Equity | |||||||||||||||
(THOUSANDS) | COMMON STOCK/(1) MEMBERSHIP INTEREST | RETAINED EARNINGS/ (ACCUMULATED DEFICIT) | AOCI | TOTAL SHAREHOLDERS’/ MEMBER’S EQUITY | |||||||||||
PREDECESSOR | |||||||||||||||
Balances, Dec. 31, 2014 | $ | 451,223 | $ | 1,208,712 | $ | (32,665 | ) | $ | 1,627,270 | ||||||
Common stock issued for compensatory plans | 5,189 | — | — | 5,189 | |||||||||||
Dividends on common stock, $1.60 per share | — | (97,367 | ) | — | (97,367 | ) | |||||||||
Net income | — | 133,669 | — | 133,669 | |||||||||||
Other comprehensive income, net of tax | — | — | 6,080 | 6,080 | |||||||||||
Balances, Dec. 31, 2015 | $ | 456,412 | $ | 1,245,014 | $ | (26,585 | ) | $ | 1,674,841 | ||||||
Common stock issued for compensatory plans | (1,277 | ) | — | — | (1,277 | ) | |||||||||
Dividends on common stock, $0.40 per share | — | (24,190 | ) | — | (24,190 | ) | |||||||||
Net loss | — | (3,960 | ) | — | (3,960 | ) | |||||||||
Other comprehensive income, net of tax | — | — | 647 | 647 | |||||||||||
Balances, Apr. 12, 2016 | $ | 455,135 | $ | 1,216,864 | $ | (25,938 | ) | $ | 1,646,061 | ||||||
SUCCESSOR | |||||||||||||||
Balances, Apr. 13, 2016(2) | $ | 2,158,141 | $ | — | $ | — | $ | 2,158,141 | |||||||
Distributions to member | (88,765 | ) | — | — | (88,765 | ) | |||||||||
Net loss | — | (24,113 | ) | — | (24,113 | ) | |||||||||
Other comprehensive income, net of tax | — | — | 1,500 | 1,500 | |||||||||||
Balances, Dec. 31, 2016 | $ | 2,069,376 | $ | (24,113 | ) | $ | 1,500 | $ | 2,046,763 | ||||||
Distributions to member | — | (84,065 | ) | — | (84,065 | ) | |||||||||
Net income | — | 138,080 | — | 138,080 | |||||||||||
Other comprehensive loss, net of tax | — | — | (4,421 | ) | (4,421 | ) | |||||||||
Balances, Dec. 31, 2017 | $ | 2,069,376 | $ | 29,902 | $ | (2,921 | ) | $ | 2,096,357 | ||||||
(1)At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included $61.1 million of common stock. At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included premium on common stock of $414.6 million, $418.5 million, and $415.5 million, respectively. At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included treasury stock of $20.5 million, $23.2 million, and $25.3 million, respectively. (2)The April 13, 2016, beginning balance of the successor company differs from the April 12, 2016, ending balances of the predecessor company due to acquisition accounting adjustments related to the Merger. | |||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,108,389 | $ | 1,091,229 | $ | 1,142,389 | |||||
Other operations | 77,522 | 68,573 | 67,109 | ||||||||
Affiliate revenue | 851 | 884 | 1,142 | ||||||||
Gross operating revenue | 1,186,762 | 1,160,686 | 1,210,640 | ||||||||
Electric customer credits | (1,566 | ) | (1,513 | ) | (2,173 | ) | |||||
Operating revenue, net | 1,185,196 | 1,159,173 | 1,208,467 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 339,346 | 346,520 | 373,117 | ||||||||
Power purchased for utility customers | 152,913 | 119,586 | 130,095 | ||||||||
Other operations | 123,192 | 125,892 | 128,697 | ||||||||
Maintenance | 87,574 | 93,340 | 87,416 | ||||||||
Depreciation and amortization | 157,999 | 146,142 | 147,839 | ||||||||
Taxes other than income taxes | 46,539 | 48,287 | 47,102 | ||||||||
Merger commitment costs | — | 151,501 | — | ||||||||
Gain on sale of asset | — | (1,095 | ) | — | |||||||
Total operating expenses | 907,563 | 1,030,173 | 914,266 | ||||||||
Operating income | 277,633 | 129,000 | 294,201 | ||||||||
Interest income | 1,283 | 860 | 725 | ||||||||
Allowance for equity funds used during construction | 8,320 | 4,458 | 3,063 | ||||||||
Other income | 2,990 | 1,601 | 1,764 | ||||||||
Other expense | (2,795 | ) | (1,976 | ) | (2,549 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 71,649 | 77,739 | 77,446 | ||||||||
Allowance for borrowed funds used during construction | (2,287 | ) | (1,293 | ) | (886 | ) | |||||
Total interest charges | 69,362 | 76,446 | 76,560 | ||||||||
Income before income taxes | 218,069 | 57,497 | 220,644 | ||||||||
Federal and state income tax expense | 67,331 | 18,369 | 79,294 | ||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $296, tax expense of $2,163, and tax benefit of $9, respectively) | (472 | ) | 3,459 | (15 | ) | ||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $132, $132, and $132, respectively) | 211 | 211 | 211 | ||||||||
Total other comprehensive (loss) income, net of tax | (261 | ) | 3,670 | 196 | |||||||
Comprehensive income, net of tax | $ | 150,477 | $ | 42,798 | $ | 141,546 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Assets | |||||||
Utility plant and equipment | |||||||
Property, plant, and equipment | $ | 4,893,484 | $ | 4,790,565 | |||
Accumulated depreciation | (1,712,590 | ) | (1,618,241 | ) | |||
Net property, plant, and equipment | 3,180,894 | 3,172,324 | |||||
Construction work in progress | 185,507 | 77,306 | |||||
Total utility plant and equipment, net | 3,366,401 | 3,249,630 | |||||
Current assets | |||||||
Cash and cash equivalents | 69,816 | 21,482 | |||||
Restricted cash and cash equivalents | 13,081 | 23,084 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,457 in 2017 and $7,199 in 2016) | 60,117 | 56,780 | |||||
Accounts receivable - affiliate | 1,355 | 1,406 | |||||
Other accounts receivable | 30,680 | 19,457 | |||||
Taxes receivable, net | — | 12,490 | |||||
Unbilled revenue | 36,398 | 34,268 | |||||
Fuel inventory, at average cost | 87,520 | 46,410 | |||||
Materials and supplies, at average cost | 85,404 | 81,818 | |||||
Energy risk management assets | 7,396 | 7,884 | |||||
Accumulated deferred fuel | 13,980 | 20,787 | |||||
Cash surrender value of company-owned life insurance policies | 20,278 | 20,018 | |||||
Prepayments | 7,236 | 5,892 | |||||
Regulatory assets | 15,812 | 17,721 | |||||
Other current assets | 475 | 577 | |||||
Total current assets | 449,548 | 370,074 | |||||
Equity investment in investee | 18,172 | 18,672 | |||||
Prepayments | 1,887 | 4,731 | |||||
Restricted cash and cash equivalents | 20,060 | 23,389 | |||||
Regulatory assets - deferred taxes, net | — | 237,449 | |||||
Regulatory assets | 257,408 | 268,016 | |||||
Intangible asset | 41,701 | 58,473 | |||||
Other deferred charges | 33,564 | 37,014 | |||||
Total assets | $ | 4,188,741 | $ | 4,267,448 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Liabilities and member’s equity | |||||||
Member’s equity | $ | 1,550,679 | $ | 1,535,202 | |||
Long-term debt, net | 1,341,475 | 1,235,056 | |||||
Total capitalization | 2,892,154 | 2,770,258 | |||||
Current liabilities | |||||||
Long-term debt due within one year | 19,193 | 19,715 | |||||
Accounts payable | 134,374 | 101,874 | |||||
Accounts payable - affiliate | 8,697 | 7,190 | |||||
Customer deposits | 58,582 | 56,599 | |||||
Provision for rate refund | 4,206 | 3,974 | |||||
Provision for merger commitments | 2,582 | 14,371 | |||||
Taxes payable, net | 31,611 | — | |||||
Interest accrued | 7,083 | 7,141 | |||||
Energy risk management liabilities | 352 | 201 | |||||
Other current liabilities | 13,238 | 9,951 | |||||
Total current liabilities | 279,918 | 221,016 | |||||
Commitments and contingencies (Note 15) | |||||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 656,362 | 1,068,592 | |||||
Accumulated deferred investment tax credits | 2,089 | 2,751 | |||||
Postretirement benefit obligations | 173,747 | 159,107 | |||||
Regulatory liabilities - deferred taxes, net | 140,426 | — | |||||
Restricted storm reserve | 14,469 | 17,385 | |||||
Other deferred credits | 29,576 | 28,339 | |||||
Total long-term liabilities and deferred credits | 1,016,669 | 1,276,174 | |||||
Total liabilities and member’s equity | $ | 4,188,741 | $ | 4,267,448 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Operating activities | |||||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 165,200 | 152,978 | 152,833 | ||||||||
Gain on sales of asset | — | (1,095 | ) | — | |||||||
Provision for doubtful accounts | 2,677 | 5,512 | 2,986 | ||||||||
Unearned compensation expense | 1,972 | 1,572 | 2,000 | ||||||||
Allowance for equity funds used during construction | (8,320 | ) | (4,458 | ) | (3,063 | ) | |||||
Deferred income taxes | (34,191 | ) | 20,492 | 43,675 | |||||||
Deferred fuel costs | 11,909 | (7,215 | ) | 9,899 | |||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | (25,696 | ) | (23,306 | ) | (13,681 | ) | |||||
Accounts receivable, affiliate | 1,865 | 2,612 | 6,195 | ||||||||
Unbilled revenue | (2,129 | ) | (274 | ) | 4,481 | ||||||
Fuel inventory and materials and supplies | (44,995 | ) | 22,192 | (13,698 | ) | ||||||
Prepayments | 2,745 | 228 | 1,323 | ||||||||
Accounts payable | 11,005 | 9,140 | (20,575 | ) | |||||||
Accounts payable, affiliate | 1,349 | (3,639 | ) | (3,990 | ) | ||||||
Customer deposits | 12,381 | 10,675 | 12,162 | ||||||||
Provision for merger commitments | (12,971 | ) | 21,964 | — | |||||||
Postretirement benefit obligations | 4,849 | 5,076 | 7,405 | ||||||||
Regulatory assets and liabilities, net | 10,544 | 17,506 | 18,793 | ||||||||
Other deferred accounts | (8,137 | ) | (21,818 | ) | (15,991 | ) | |||||
Taxes accrued | 44,101 | (29,535 | ) | 36,287 | |||||||
Interest accrued | (59 | ) | (671 | ) | (1,412 | ) | |||||
Other operating | 2,241 | (1,307 | ) | (441 | ) | ||||||
Net cash provided by operating activities | 287,078 | 215,757 | 366,538 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (235,252 | ) | (186,143 | ) | (156,357 | ) | |||||
Allowance for equity funds used during construction | 8,320 | 4,458 | 3,063 | ||||||||
Proceeds from sale of property, plant, and equipment | 4,078 | 2,698 | — | ||||||||
Reimbursement for property loss | 187 | 3,212 | — | ||||||||
Contributions to equity investment in investee | — | (2,450 | ) | (2,290 | ) | ||||||
Transfer of cash from (to) restricted accounts, net | 13,332 | (21,037 | ) | (1,341 | ) | ||||||
Other investing | 500 | 622 | 881 | ||||||||
Net cash used in investing activities | (208,835 | ) | (198,640 | ) | (156,044 | ) | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Financing activities | |||||||||||
Draws on credit facility | 106,000 | 15,000 | 63,000 | ||||||||
Payments on credit facility | (106,000 | ) | (15,000 | ) | (83,000 | ) | |||||
Issuances of long-term debt | 125,000 | 330,000 | 75,000 | ||||||||
Repayments of long-term debt | (17,896 | ) | (326,814 | ) | (100,824 | ) | |||||
Contribution from parent | — | 50,000 | — | ||||||||
Distributions to parent | (135,000 | ) | (110,000 | ) | (135,000 | ) | |||||
Other financing | (2,013 | ) | (4,526 | ) | (3,127 | ) | |||||
Net cash used in financing activities | (29,909 | ) | (61,340 | ) | (183,951 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 48,334 | (44,223 | ) | 26,543 | |||||||
Cash and cash equivalents at beginning of period | 21,482 | 65,705 | 39,162 | ||||||||
Cash and cash equivalents at end of period | $ | 69,816 | $ | 21,482 | $ | 65,705 | |||||
Supplementary cash flow information | |||||||||||
Interest paid, net of amount capitalized | $ | 65,984 | $ | 92,585 | $ | 74,219 | |||||
Income taxes refunded, net | $ | — | $ | (485 | ) | $ | (27 | ) | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 30,883 | $ | 16,755 | $ | 7,249 | |||||
Non-cash additions to property, plant, and equipment | $ | 3,015 | $ | — | $ | 184 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | AOCI | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2014 | $ | 1,563,146 | $ | (17,288 | ) | $ | 1,545,858 | ||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 141,350 | — | 141,350 | ||||||||
Other comprehensive income, net of tax | — | 196 | 196 | ||||||||
Balances, Dec. 31, 2015 | $ | 1,569,496 | $ | (17,092 | ) | $ | 1,552,404 | ||||
Contribution from parent | 50,000 | — | 50,000 | ||||||||
Distributions to parent | (110,000 | ) | — | (110,000 | ) | ||||||
Net income | 39,128 | — | 39,128 | ||||||||
Other comprehensive income, net of tax | — | 3,670 | 3,670 | ||||||||
Balances, Dec. 31, 2016 | $ | 1,548,624 | $ | (13,422 | ) | $ | 1,535,202 | ||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 150,738 | — | 150,738 | ||||||||
Other comprehensive loss, net of tax | — | (261 | ) | (261 | ) | ||||||
Balances, Dec. 31, 2017 | $ | 1,564,362 | $ | (13,683 | ) | $ | 1,550,679 | ||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Index to Applicable Notes to the Financial Statements of Registrants |
Note 1 | The Company | Cleco and Cleco Power |
Note 2 | Summary of Significant Accounting Policies | Cleco and Cleco Power |
Note 3 | Business Combinations | Cleco |
Note 4 | Regulatory Assets and Liabilities | Cleco and Cleco Power |
Note 5 | Jointly Owned Generation Units | Cleco and Cleco Power |
Note 6 | Fair Value Accounting | Cleco and Cleco Power |
Note 7 | Debt | Cleco and Cleco Power |
Note 8 | Common Stock | Cleco and Cleco Power |
Note 9 | Pension Plan and Employee Benefits | Cleco and Cleco Power |
Note 10 | Income Taxes | Cleco and Cleco Power |
Note 11 | Disclosures about Segments | Cleco |
Note 12 | Regulation and Rates | Cleco and Cleco Power |
Note 13 | Variable Interest Entities | Cleco and Cleco Power |
Note 14 | Operating Leases | Cleco and Cleco Power |
Note 15 | Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Cleco and Cleco Power |
Note 16 | Affiliate Transactions | Cleco and Cleco Power |
Note 17 | Intangible Assets and Goodwill | Cleco and Cleco Power |
Note 18 | Accumulated Other Comprehensive Loss | Cleco and Cleco Power |
Note 19 | Miscellaneous Financial Information (Unaudited) | Cleco and Cleco Power |
Note 20 | Subsequent Event - Plan of Acquisition | Cleco |
Notes to the Financial Statements |
Note 1 — The Company |
◦ | Cleco Holdings, a holding company, |
◦ | Support Group, a shared services subsidiary, |
◦ | Diversified Lands, an investment subsidiary, and |
◦ | Attala and Perryville, two subsidiaries that owned and operated transmission interconnection facilities prior to the assets being sold by Cleco on December 29, 2017. |
Note 2 — Summary of Significant Accounting Policies |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Amortization | $ | 2,367 | $ | 2,351 | $ | 921 | $ | 2,194 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco Power | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Amortization | $ | 1,887 | $ | 2,405 | $ | 1,718 |
CATEGORY | YEARS | ||
Utility Plants | |||
Generation | 10 | – | 95 |
Distribution | 15 | – | 50 |
Transmission | 5 | – | 55 |
Other utility plant | 5 | – | 45 |
Other property, plant, and equipment | 5 | – | 45 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Utility plants | |||||||
Generation | $ | 1,908,344 | $ | 1,866,601 | |||
Distribution | 1,015,472 | 955,126 | |||||
Transmission | 512,428 | 503,996 | |||||
Other utility plant | 153,900 | 146,976 | |||||
Other property, plant, and equipment | 4,381 | 3,882 | |||||
Total property, plant, and equipment | 3,594,525 | 3,476,581 | |||||
Accumulated depreciation | (192,348 | ) | (75,816 | ) | |||
Net property, plant, and equipment | $ | 3,402,177 | $ | 3,400,765 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Regulated utility plants | |||||||
Generation | $ | 2,442,987 | $ | 2,406,572 | |||
Distribution | 1,462,193 | 1,405,703 | |||||
Transmission | 725,199 | 719,052 | |||||
Other utility plant | 263,105 | 259,238 | |||||
Total property, plant, and equipment | 4,893,484 | 4,790,565 | |||||
Accumulated depreciation | (1,712,590 | ) | (1,618,241 | ) | |||
Net property, plant, and equipment | $ | 3,180,894 | $ | 3,172,324 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Cleco Power’s charitable contributions | 1,200 | 1,200 | |||||
Cleco Power’s rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Diversified Lands’ mitigation escrow | 21 | 21 | |||||
Cleco Power’s future storm restoration costs | 14,456 | 17,379 | |||||
Cleco Power’s charitable contributions | 3,575 | 4,179 | |||||
Cleco Power’s rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,081 | 23,410 | |||||
Total restricted cash and cash equivalents | $ | 33,162 | $ | 46,494 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Charitable contributions | 1,200 | 1,200 | |||||
Rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Future storm restoration costs | 14,456 | 17,379 | |||||
Charitable contributions | 3,575 | 4,179 | |||||
Rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,060 | 23,389 | |||||
Total restricted cash and cash equivalents | $ | 33,141 | $ | 46,473 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
RISK OVERVIEW |
CLECO | ||
CLECO POWER |
CLECO POWER |
CLECO | ||
CLECO POWER |
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Report of Independent Registered Public Accounting Firm |
FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||
(THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) | INCOME | SHARES | PER SHARE AMOUNT | INCOME | SHARES | PER SHARE AMOUNT | INCOME | SHARES | PER SHARE AMOUNT | |||||||||||||||||||||||
Basic net income applicable to common stock | $ | 133,669 | 60,476,066 | $ | 2.21 | $ | 154,739 | 60,406,001 | $ | 2.56 | $ | 160,685 | 60,434,510 | $ | 2.66 | |||||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||||||||||
Add: restricted stock (LTIP) | 213,203 | 195,457 | 285,580 | |||||||||||||||||||||||||||||
Diluted net income applicable to common stock | $ | 133,669 | 60,689,269 | $ | 2.20 | $ | 154,739 | 60,601,458 | $ | 2.55 | $ | 160,685 | 60,720,090 | $ | 2.65 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Operating revenue | |||||||||||||||
Electric operations | $ | 1,097,632 | $ | 802,592 | $ | 281,154 | $ | 1,142,389 | |||||||
Other operations | 79,580 | 51,562 | 19,080 | 69,186 | |||||||||||
Gross operating revenue | 1,177,212 | 854,154 | 300,234 | 1,211,575 | |||||||||||
Electric customer credits | (1,566 | ) | (1,149 | ) | (364 | ) | (2,173 | ) | |||||||
Operating revenue, net | 1,175,646 | 853,005 | 299,870 | 1,209,402 | |||||||||||
Operating expenses | |||||||||||||||
Fuel used for electric generation | 339,346 | 250,142 | 96,378 | 373,117 | |||||||||||
Power purchased for utility customers | 152,913 | 92,337 | 27,249 | 130,095 | |||||||||||
Other operations | 125,699 | 90,313 | 33,563 | 127,410 | |||||||||||
Maintenance | 88,129 | 63,944 | 29,813 | 88,137 | |||||||||||
Depreciation and amortization | 166,439 | 109,739 | 44,076 | 149,579 | |||||||||||
Taxes other than income taxes | 48,546 | 35,543 | 14,611 | 49,134 | |||||||||||
Merger transaction and commitment costs | 287 | 174,696 | 34,912 | 4,591 | |||||||||||
Gain on sale of assets | (2 | ) | — | (1,095 | ) | — | |||||||||
Total operating expenses | 921,357 | 816,714 | 279,507 | 922,063 | |||||||||||
Operating income | 254,289 | 36,291 | 20,363 | 287,339 | |||||||||||
Interest income | 1,424 | 840 | 265 | 895 | |||||||||||
Allowance for equity funds used during construction | 8,320 | 3,735 | 723 | 3,063 | |||||||||||
Other income | 6,474 | 3,350 | 870 | 1,443 | |||||||||||
Other expense | (2,435 | ) | (1,385 | ) | (590 | ) | (3,376 | ) | |||||||
Interest charges | |||||||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 125,200 | 90,852 | 22,330 | 78,877 | |||||||||||
Allowance for borrowed funds used during construction | (2,287 | ) | (1,086 | ) | (207 | ) | (886 | ) | |||||||
Total interest charges | 122,913 | 89,766 | 22,123 | 77,991 | |||||||||||
Income (loss) before income taxes | 145,159 | (46,935 | ) | (492 | ) | 211,373 | |||||||||
Federal and state income tax expense (benefit) | 7,079 | (22,822 | ) | 3,468 | 77,704 | ||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
Other comprehensive (loss) income, net of tax | |||||||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $2,764 and tax expense of $938, $367, and $3,670, respectively) | (4,421 | ) | 1,500 | 587 | 5,869 | ||||||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $0, $0, $37, and $132, respectively) | — | — | 60 | 211 | |||||||||||
Total other comprehensive (loss) income, net of tax | (4,421 | ) | 1,500 | 647 | 6,080 | ||||||||||
Comprehensive income (loss), net of tax | $ | 133,659 | $ | (22,613 | ) | $ | (3,313 | ) | $ | 139,749 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 119,040 | $ | 23,077 | |||
Restricted cash and cash equivalents | 13,081 | 23,084 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,457 in 2017 and $7,199 in 2016) | 60,117 | 56,780 | |||||
Other accounts receivable | 30,806 | 19,778 | |||||
Unbilled revenue | 36,398 | 34,268 | |||||
Fuel inventory, at average cost | 87,520 | 46,410 | |||||
Materials and supplies, at average cost | 85,404 | 81,818 | |||||
Energy risk management assets | 7,396 | 7,884 | |||||
Accumulated deferred fuel | 13,980 | 20,787 | |||||
Cash surrender value of company-/trust-owned life insurance policies | 83,117 | 77,225 | |||||
Prepayments | 9,050 | 7,813 | |||||
Regulatory assets | 24,670 | 26,803 | |||||
Other current assets | 1,146 | 1,315 | |||||
Total current assets | 571,725 | 427,042 | |||||
Property, plant, and equipment | |||||||
Property, plant, and equipment | 3,594,525 | 3,476,581 | |||||
Accumulated depreciation | (192,348 | ) | (75,816 | ) | |||
Net property, plant, and equipment | 3,402,177 | 3,400,765 | |||||
Construction work in progress | 186,629 | 78,577 | |||||
Total property, plant, and equipment, net | 3,588,806 | 3,479,342 | |||||
Equity investment in investee | 18,172 | 18,672 | |||||
Goodwill | 1,490,797 | 1,490,797 | |||||
Prepayments | 1,887 | 4,731 | |||||
Restricted cash and cash equivalents | 20,081 | 23,410 | |||||
Regulatory assets - deferred taxes, net | — | 237,449 | |||||
Regulatory assets | 432,358 | 454,644 | |||||
Net investment in direct financing lease | — | 13,420 | |||||
Intangible assets | 114,850 | 142,634 | |||||
Tax credit fund investment, net | 4,355 | 11,888 | |||||
Other deferred charges | 35,351 | 39,115 | |||||
Total assets | $ | 6,278,382 | $ | 6,343,144 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Liabilities and member’s equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 19,193 | $ | 19,715 | |||
Accounts payable | 147,562 | 112,087 | |||||
Customer deposits | 58,582 | 56,599 | |||||
Provision for rate refund | 4,206 | 3,974 | |||||
Provision for merger commitments | 2,582 | 14,371 | |||||
Taxes payable, net | 22,698 | 3,942 | |||||
Interest accrued | 14,703 | 14,783 | |||||
Energy risk management liabilities | 352 | 201 | |||||
Deferred compensation | 12,132 | 11,654 | |||||
Other current liabilities | 18,344 | 14,850 | |||||
Total current liabilities | 300,354 | 252,176 | |||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 614,812 | 1,033,055 | |||||
Accumulated deferred investment tax credits | 2,089 | 2,751 | |||||
Postretirement benefit obligations | 242,135 | 223,003 | |||||
Regulatory liabilities - deferred taxes, net | 140,426 | — | |||||
Restricted storm reserve | 14,469 | 17,385 | |||||
Other deferred credits | 31,635 | 29,440 | |||||
Total long-term liabilities and deferred credits | 1,045,566 | 1,305,634 | |||||
Long-term debt, net | 2,836,105 | 2,738,571 | |||||
Total liabilities | 4,182,025 | 4,296,381 | |||||
Commitments and contingencies (Note 15) | |||||||
Member’s equity | |||||||
Membership interest | 2,069,376 | 2,069,376 | |||||
Retained earnings (Accumulated deficit) | 29,902 | (24,113 | ) | ||||
Accumulated other comprehensive (loss) income | (2,921 | ) | 1,500 | ||||
Total member’s equity | 2,096,357 | 2,046,763 | |||||
Total liabilities and member’s equity | $ | 6,278,382 | $ | 6,343,144 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Operating activities | |||||||||||||||
Net income (loss) | $ | 138,080 | $ | (24,113 | ) | $ | (3,960 | ) | $ | 133,669 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||
Depreciation and amortization | 186,326 | 141,544 | 45,869 | 156,211 | |||||||||||
Gain on sales of assets | (2 | ) | — | (1,095 | ) | — | |||||||||
Provision for doubtful accounts | 2,778 | 4,473 | 1,212 | 3,464 | |||||||||||
Unearned compensation expense | 3,745 | 1,147 | 3,276 | 6,344 | |||||||||||
Allowance for equity funds used during construction | (8,320 | ) | (3,735 | ) | (723 | ) | (3,063 | ) | |||||||
Deferred income taxes | (41,966 | ) | (21,053 | ) | 2,219 | 74,103 | |||||||||
Deferred fuel costs | 11,909 | (8,192 | ) | 977 | 9,899 | ||||||||||
Cash surrender value of company-/trust-owned life insurance | (5,892 | ) | (2,561 | ) | (840 | ) | 950 | ||||||||
Changes in assets and liabilities | |||||||||||||||
Accounts receivable | (25,584 | ) | (21,537 | ) | (1,865 | ) | (13,656 | ) | |||||||
Unbilled revenue | (2,129 | ) | (837 | ) | 563 | 4,481 | |||||||||
Fuel inventory and materials and supplies | (44,995 | ) | 2,880 | 19,312 | (13,698 | ) | |||||||||
Prepayments | 2,852 | (2,514 | ) | 2,395 | 2,750 | ||||||||||
Accounts payable | 14,705 | 5,183 | 8,348 | (25,294 | ) | ||||||||||
Customer deposits | 12,381 | 7,333 | 3,342 | 12,162 | |||||||||||
Provision for merger commitments | (12,971 | ) | 21,964 | — | — | ||||||||||
Postretirement benefit obligations | 4,884 | 3,750 | 9,746 | 14,173 | |||||||||||
Regulatory assets and liabilities, net | 12,531 | 13,750 | 5,178 | 18,793 | |||||||||||
Other deferred accounts | (8,380 | ) | (28,010 | ) | 6,878 | (17,454 | ) | ||||||||
Taxes accrued | 23,118 | (24,210 | ) | 10,820 | (831 | ) | |||||||||
Interest accrued | (582 | ) | (11,104 | ) | 17,909 | (1,024 | ) | ||||||||
Deferred compensation | 308 | (799 | ) | (793 | ) | (1,166 | ) | ||||||||
Other operating | 2,632 | (2,037 | ) | 1,012 | 209 | ||||||||||
Net cash provided by operating activities | 265,428 | 51,322 | 129,780 | 361,022 | |||||||||||
Investing activities | |||||||||||||||
Additions to property, plant, and equipment | (236,932 | ) | (144,444 | ) | (42,392 | ) | (156,819 | ) | |||||||
Allowance for equity funds used during construction | 8,320 | 3,735 | 723 | 3,063 | |||||||||||
Proceeds from sale of property, plant, and equipment | 17,499 | 766 | 1,932 | — | |||||||||||
Reimbursement for property loss | 187 | 3,159 | 53 | — | |||||||||||
Contributions to equity investment in investee | — | — | (2,450 | ) | (2,290 | ) | |||||||||
Premiums paid on trust-owned life insurance | — | — | — | (3,607 | ) | ||||||||||
Return of equity investment in tax credit fund | 7,502 | 901 | 476 | 2,128 | |||||||||||
Contributions to tax credit fund | (630 | ) | — | — | (9,966 | ) | |||||||||
Transfer of cash from (to) restricted accounts, net | 13,332 | (25,884 | ) | 4,847 | (1,341 | ) | |||||||||
Other investing | 500 | 622 | — | 881 | |||||||||||
Net cash used in investing activities | (190,222 | ) | (161,145 | ) | (36,811 | ) | (167,951 | ) | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Financing activities | |||||||||||||||
Draws on credit facilities | 179,000 | 15,000 | 3,000 | 120,000 | |||||||||||
Payments on credit facilities | (179,000 | ) | (15,000 | ) | (10,000 | ) | (163,000 | ) | |||||||
Issuances of long-term debt | 125,000 | 1,680,000 | — | 75,000 | |||||||||||
Repayments of long-term debt | (17,896 | ) | (1,668,268 | ) | (8,546 | ) | (100,824 | ) | |||||||
Payment of financing costs | (463 | ) | (8,655 | ) | (43 | ) | (693 | ) | |||||||
Dividends paid on common stock | — | (572 | ) | (24,579 | ) | (97,283 | ) | ||||||||
Contribution from member | — | 100,720 | — | — | |||||||||||
Distributions to member | (84,065 | ) | (88,765 | ) | — | — | |||||||||
Other financing | (1,819 | ) | (1,890 | ) | (717 | ) | (2,448 | ) | |||||||
Net cash provided by (used in) financing activities | 20,757 | 12,570 | (40,885 | ) | (169,248 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 95,963 | (97,253 | ) | 52,084 | 23,823 | ||||||||||
Cash and cash equivalents at beginning of period | 23,077 | 120,330 | 68,246 | 44,423 | |||||||||||
Cash and cash equivalents at end of period | $ | 119,040 | $ | 23,077 | $ | 120,330 | $ | 68,246 | |||||||
Supplementary cash flow information | |||||||||||||||
Interest paid, net of amount capitalized | $ | 118,009 | $ | 116,496 | $ | 2,478 | $ | 74,349 | |||||||
Income taxes (refunded) paid, net | $ | (6 | ) | $ | 4,263 | $ | (481 | ) | $ | 1,434 | |||||
Supplementary non-cash investing and financing activities | |||||||||||||||
Accrued additions to property, plant, and equipment | $ | 31,083 | $ | 17,599 | $ | 10,619 | $ | 7,313 | |||||||
Non-cash additions to property, plant, and equipment | $ | 3,015 | $ | — | $ | — | $ | 184 | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | |||||||||||||||
Consolidated Statements of Changes in Equity | |||||||||||||||
(THOUSANDS) | COMMON STOCK/(1) MEMBERSHIP INTEREST | RETAINED EARNINGS/ (ACCUMULATED DEFICIT) | AOCI | TOTAL SHAREHOLDERS’/ MEMBER’S EQUITY | |||||||||||
PREDECESSOR | |||||||||||||||
Balances, Dec. 31, 2014 | $ | 451,223 | $ | 1,208,712 | $ | (32,665 | ) | $ | 1,627,270 | ||||||
Common stock issued for compensatory plans | 5,189 | — | — | 5,189 | |||||||||||
Dividends on common stock, $1.60 per share | — | (97,367 | ) | — | (97,367 | ) | |||||||||
Net income | — | 133,669 | — | 133,669 | |||||||||||
Other comprehensive income, net of tax | — | — | 6,080 | 6,080 | |||||||||||
Balances, Dec. 31, 2015 | $ | 456,412 | $ | 1,245,014 | $ | (26,585 | ) | $ | 1,674,841 | ||||||
Common stock issued for compensatory plans | (1,277 | ) | — | — | (1,277 | ) | |||||||||
Dividends on common stock, $0.40 per share | — | (24,190 | ) | — | (24,190 | ) | |||||||||
Net loss | — | (3,960 | ) | — | (3,960 | ) | |||||||||
Other comprehensive income, net of tax | — | — | 647 | 647 | |||||||||||
Balances, Apr. 12, 2016 | $ | 455,135 | $ | 1,216,864 | $ | (25,938 | ) | $ | 1,646,061 | ||||||
SUCCESSOR | |||||||||||||||
Balances, Apr. 13, 2016(2) | $ | 2,158,141 | $ | — | $ | — | $ | 2,158,141 | |||||||
Distributions to member | (88,765 | ) | — | — | (88,765 | ) | |||||||||
Net loss | — | (24,113 | ) | — | (24,113 | ) | |||||||||
Other comprehensive income, net of tax | — | — | 1,500 | 1,500 | |||||||||||
Balances, Dec. 31, 2016 | $ | 2,069,376 | $ | (24,113 | ) | $ | 1,500 | $ | 2,046,763 | ||||||
Distributions to member | — | (84,065 | ) | — | (84,065 | ) | |||||||||
Net income | — | 138,080 | — | 138,080 | |||||||||||
Other comprehensive loss, net of tax | — | — | (4,421 | ) | (4,421 | ) | |||||||||
Balances, Dec. 31, 2017 | $ | 2,069,376 | $ | 29,902 | $ | (2,921 | ) | $ | 2,096,357 | ||||||
(1)At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included $61.1 million of common stock. At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included premium on common stock of $414.6 million, $418.5 million, and $415.5 million, respectively. At April 12, 2016, December 31, 2015, and December 31, 2014, shareholders’ equity of the predecessor company included treasury stock of $20.5 million, $23.2 million, and $25.3 million, respectively. (2)The April 13, 2016, beginning balance of the successor company differs from the April 12, 2016, ending balances of the predecessor company due to acquisition accounting adjustments related to the Merger. | |||||||||||||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Report of Independent Registered Public Accounting Firm |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Operating revenue | |||||||||||
Electric operations | $ | 1,108,389 | $ | 1,091,229 | $ | 1,142,389 | |||||
Other operations | 77,522 | 68,573 | 67,109 | ||||||||
Affiliate revenue | 851 | 884 | 1,142 | ||||||||
Gross operating revenue | 1,186,762 | 1,160,686 | 1,210,640 | ||||||||
Electric customer credits | (1,566 | ) | (1,513 | ) | (2,173 | ) | |||||
Operating revenue, net | 1,185,196 | 1,159,173 | 1,208,467 | ||||||||
Operating expenses | |||||||||||
Fuel used for electric generation | 339,346 | 346,520 | 373,117 | ||||||||
Power purchased for utility customers | 152,913 | 119,586 | 130,095 | ||||||||
Other operations | 123,192 | 125,892 | 128,697 | ||||||||
Maintenance | 87,574 | 93,340 | 87,416 | ||||||||
Depreciation and amortization | 157,999 | 146,142 | 147,839 | ||||||||
Taxes other than income taxes | 46,539 | 48,287 | 47,102 | ||||||||
Merger commitment costs | — | 151,501 | — | ||||||||
Gain on sale of asset | — | (1,095 | ) | — | |||||||
Total operating expenses | 907,563 | 1,030,173 | 914,266 | ||||||||
Operating income | 277,633 | 129,000 | 294,201 | ||||||||
Interest income | 1,283 | 860 | 725 | ||||||||
Allowance for equity funds used during construction | 8,320 | 4,458 | 3,063 | ||||||||
Other income | 2,990 | 1,601 | 1,764 | ||||||||
Other expense | (2,795 | ) | (1,976 | ) | (2,549 | ) | |||||
Interest charges | |||||||||||
Interest charges, including amortization of debt issuance costs, premiums, and discounts, net | 71,649 | 77,739 | 77,446 | ||||||||
Allowance for borrowed funds used during construction | (2,287 | ) | (1,293 | ) | (886 | ) | |||||
Total interest charges | 69,362 | 76,446 | 76,560 | ||||||||
Income before income taxes | 218,069 | 57,497 | 220,644 | ||||||||
Federal and state income tax expense | 67,331 | 18,369 | 79,294 | ||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Postretirement benefits (loss) gain (net of tax benefit of $296, tax expense of $2,163, and tax benefit of $9, respectively) | (472 | ) | 3,459 | (15 | ) | ||||||
Amortization of interest rate derivatives to earnings (net of tax expense of $132, $132, and $132, respectively) | 211 | 211 | 211 | ||||||||
Total other comprehensive (loss) income, net of tax | (261 | ) | 3,670 | 196 | |||||||
Comprehensive income, net of tax | $ | 150,477 | $ | 42,798 | $ | 141,546 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Assets | |||||||
Utility plant and equipment | |||||||
Property, plant, and equipment | $ | 4,893,484 | $ | 4,790,565 | |||
Accumulated depreciation | (1,712,590 | ) | (1,618,241 | ) | |||
Net property, plant, and equipment | 3,180,894 | 3,172,324 | |||||
Construction work in progress | 185,507 | 77,306 | |||||
Total utility plant and equipment, net | 3,366,401 | 3,249,630 | |||||
Current assets | |||||||
Cash and cash equivalents | 69,816 | 21,482 | |||||
Restricted cash and cash equivalents | 13,081 | 23,084 | |||||
Customer accounts receivable (less allowance for doubtful accounts of $1,457 in 2017 and $7,199 in 2016) | 60,117 | 56,780 | |||||
Accounts receivable - affiliate | 1,355 | 1,406 | |||||
Other accounts receivable | 30,680 | 19,457 | |||||
Taxes receivable, net | — | 12,490 | |||||
Unbilled revenue | 36,398 | 34,268 | |||||
Fuel inventory, at average cost | 87,520 | 46,410 | |||||
Materials and supplies, at average cost | 85,404 | 81,818 | |||||
Energy risk management assets | 7,396 | 7,884 | |||||
Accumulated deferred fuel | 13,980 | 20,787 | |||||
Cash surrender value of company-owned life insurance policies | 20,278 | 20,018 | |||||
Prepayments | 7,236 | 5,892 | |||||
Regulatory assets | 15,812 | 17,721 | |||||
Other current assets | 475 | 577 | |||||
Total current assets | 449,548 | 370,074 | |||||
Equity investment in investee | 18,172 | 18,672 | |||||
Prepayments | 1,887 | 4,731 | |||||
Restricted cash and cash equivalents | 20,060 | 23,389 | |||||
Regulatory assets - deferred taxes, net | — | 237,449 | |||||
Regulatory assets | 257,408 | 268,016 | |||||
Intangible asset | 41,701 | 58,473 | |||||
Other deferred charges | 33,564 | 37,014 | |||||
Total assets | $ | 4,188,741 | $ | 4,267,448 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||
Consolidated Balance Sheets | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Liabilities and member’s equity | |||||||
Member’s equity | $ | 1,550,679 | $ | 1,535,202 | |||
Long-term debt, net | 1,341,475 | 1,235,056 | |||||
Total capitalization | 2,892,154 | 2,770,258 | |||||
Current liabilities | |||||||
Long-term debt due within one year | 19,193 | 19,715 | |||||
Accounts payable | 134,374 | 101,874 | |||||
Accounts payable - affiliate | 8,697 | 7,190 | |||||
Customer deposits | 58,582 | 56,599 | |||||
Provision for rate refund | 4,206 | 3,974 | |||||
Provision for merger commitments | 2,582 | 14,371 | |||||
Taxes payable, net | 31,611 | — | |||||
Interest accrued | 7,083 | 7,141 | |||||
Energy risk management liabilities | 352 | 201 | |||||
Other current liabilities | 13,238 | 9,951 | |||||
Total current liabilities | 279,918 | 221,016 | |||||
Commitments and contingencies (Note 15) | |||||||
Long-term liabilities and deferred credits | |||||||
Accumulated deferred federal and state income taxes, net | 656,362 | 1,068,592 | |||||
Accumulated deferred investment tax credits | 2,089 | 2,751 | |||||
Postretirement benefit obligations | 173,747 | 159,107 | |||||
Regulatory liabilities - deferred taxes, net | 140,426 | — | |||||
Restricted storm reserve | 14,469 | 17,385 | |||||
Other deferred credits | 29,576 | 28,339 | |||||
Total long-term liabilities and deferred credits | 1,016,669 | 1,276,174 | |||||
Total liabilities and member’s equity | $ | 4,188,741 | $ | 4,267,448 | |||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Operating activities | |||||||||||
Net income | $ | 150,738 | $ | 39,128 | $ | 141,350 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 165,200 | 152,978 | 152,833 | ||||||||
Gain on sales of asset | — | (1,095 | ) | — | |||||||
Provision for doubtful accounts | 2,677 | 5,512 | 2,986 | ||||||||
Unearned compensation expense | 1,972 | 1,572 | 2,000 | ||||||||
Allowance for equity funds used during construction | (8,320 | ) | (4,458 | ) | (3,063 | ) | |||||
Deferred income taxes | (34,191 | ) | 20,492 | 43,675 | |||||||
Deferred fuel costs | 11,909 | (7,215 | ) | 9,899 | |||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | (25,696 | ) | (23,306 | ) | (13,681 | ) | |||||
Accounts receivable, affiliate | 1,865 | 2,612 | 6,195 | ||||||||
Unbilled revenue | (2,129 | ) | (274 | ) | 4,481 | ||||||
Fuel inventory and materials and supplies | (44,995 | ) | 22,192 | (13,698 | ) | ||||||
Prepayments | 2,745 | 228 | 1,323 | ||||||||
Accounts payable | 11,005 | 9,140 | (20,575 | ) | |||||||
Accounts payable, affiliate | 1,349 | (3,639 | ) | (3,990 | ) | ||||||
Customer deposits | 12,381 | 10,675 | 12,162 | ||||||||
Provision for merger commitments | (12,971 | ) | 21,964 | — | |||||||
Postretirement benefit obligations | 4,849 | 5,076 | 7,405 | ||||||||
Regulatory assets and liabilities, net | 10,544 | 17,506 | 18,793 | ||||||||
Other deferred accounts | (8,137 | ) | (21,818 | ) | (15,991 | ) | |||||
Taxes accrued | 44,101 | (29,535 | ) | 36,287 | |||||||
Interest accrued | (59 | ) | (671 | ) | (1,412 | ) | |||||
Other operating | 2,241 | (1,307 | ) | (441 | ) | ||||||
Net cash provided by operating activities | 287,078 | 215,757 | 366,538 | ||||||||
Investing activities | |||||||||||
Additions to property, plant, and equipment | (235,252 | ) | (186,143 | ) | (156,357 | ) | |||||
Allowance for equity funds used during construction | 8,320 | 4,458 | 3,063 | ||||||||
Proceeds from sale of property, plant, and equipment | 4,078 | 2,698 | — | ||||||||
Reimbursement for property loss | 187 | 3,212 | — | ||||||||
Contributions to equity investment in investee | — | (2,450 | ) | (2,290 | ) | ||||||
Transfer of cash from (to) restricted accounts, net | 13,332 | (21,037 | ) | (1,341 | ) | ||||||
Other investing | 500 | 622 | 881 | ||||||||
Net cash used in investing activities | (208,835 | ) | (198,640 | ) | (156,044 | ) | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. | |||||||||||
(Continued on next page) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Financing activities | |||||||||||
Draws on credit facility | 106,000 | 15,000 | 63,000 | ||||||||
Payments on credit facility | (106,000 | ) | (15,000 | ) | (83,000 | ) | |||||
Issuances of long-term debt | 125,000 | 330,000 | 75,000 | ||||||||
Repayments of long-term debt | (17,896 | ) | (326,814 | ) | (100,824 | ) | |||||
Contribution from parent | — | 50,000 | — | ||||||||
Distributions to parent | (135,000 | ) | (110,000 | ) | (135,000 | ) | |||||
Other financing | (2,013 | ) | (4,526 | ) | (3,127 | ) | |||||
Net cash used in financing activities | (29,909 | ) | (61,340 | ) | (183,951 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 48,334 | (44,223 | ) | 26,543 | |||||||
Cash and cash equivalents at beginning of period | 21,482 | 65,705 | 39,162 | ||||||||
Cash and cash equivalents at end of period | $ | 69,816 | $ | 21,482 | $ | 65,705 | |||||
Supplementary cash flow information | |||||||||||
Interest paid, net of amount capitalized | $ | 65,984 | $ | 92,585 | $ | 74,219 | |||||
Income taxes refunded, net | $ | — | $ | (485 | ) | $ | (27 | ) | |||
Supplementary non-cash investing and financing activities | |||||||||||
Accrued additions to property, plant, and equipment | $ | 30,883 | $ | 16,755 | $ | 7,249 | |||||
Non-cash additions to property, plant, and equipment | $ | 3,015 | $ | — | $ | 184 | |||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO POWER | |||||||||||
Consolidated Statements of Changes in Member’s Equity | |||||||||||
(THOUSANDS) | MEMBER’S EQUITY | AOCI | TOTAL MEMBER’S EQUITY | ||||||||
Balances, Dec. 31, 2014 | $ | 1,563,146 | $ | (17,288 | ) | $ | 1,545,858 | ||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 141,350 | — | 141,350 | ||||||||
Other comprehensive income, net of tax | — | 196 | 196 | ||||||||
Balances, Dec. 31, 2015 | $ | 1,569,496 | $ | (17,092 | ) | $ | 1,552,404 | ||||
Contribution from parent | 50,000 | — | 50,000 | ||||||||
Distributions to parent | (110,000 | ) | — | (110,000 | ) | ||||||
Net income | 39,128 | — | 39,128 | ||||||||
Other comprehensive income, net of tax | — | 3,670 | 3,670 | ||||||||
Balances, Dec. 31, 2016 | $ | 1,548,624 | $ | (13,422 | ) | $ | 1,535,202 | ||||
Distributions to parent | (135,000 | ) | — | (135,000 | ) | ||||||
Net income | 150,738 | — | 150,738 | ||||||||
Other comprehensive loss, net of tax | — | (261 | ) | (261 | ) | ||||||
Balances, Dec. 31, 2017 | $ | 1,564,362 | $ | (13,683 | ) | $ | 1,550,679 | ||||
The accompanying notes are an integral part of the Consolidated Financial Statements. |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Index to Applicable Notes to the Financial Statements of Registrants |
Note 1 | The Company | Cleco and Cleco Power |
Note 2 | Summary of Significant Accounting Policies | Cleco and Cleco Power |
Note 3 | Business Combinations | Cleco |
Note 4 | Regulatory Assets and Liabilities | Cleco and Cleco Power |
Note 5 | Jointly Owned Generation Units | Cleco and Cleco Power |
Note 6 | Fair Value Accounting | Cleco and Cleco Power |
Note 7 | Debt | Cleco and Cleco Power |
Note 8 | Common Stock | Cleco and Cleco Power |
Note 9 | Pension Plan and Employee Benefits | Cleco and Cleco Power |
Note 10 | Income Taxes | Cleco and Cleco Power |
Note 11 | Disclosures about Segments | Cleco |
Note 12 | Regulation and Rates | Cleco and Cleco Power |
Note 13 | Variable Interest Entities | Cleco and Cleco Power |
Note 14 | Operating Leases | Cleco and Cleco Power |
Note 15 | Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees | Cleco and Cleco Power |
Note 16 | Affiliate Transactions | Cleco and Cleco Power |
Note 17 | Intangible Assets and Goodwill | Cleco and Cleco Power |
Note 18 | Accumulated Other Comprehensive Loss | Cleco and Cleco Power |
Note 19 | Miscellaneous Financial Information (Unaudited) | Cleco and Cleco Power |
Note 20 | Subsequent Event - Plan of Acquisition | Cleco |
Notes to the Financial Statements |
Note 1 — The Company |
◦ | Cleco Holdings, a holding company, |
◦ | Support Group, a shared services subsidiary, |
◦ | Diversified Lands, an investment subsidiary, and |
◦ | Attala and Perryville, two subsidiaries that owned and operated transmission interconnection facilities prior to the assets being sold by Cleco on December 29, 2017. |
Note 2 — Summary of Significant Accounting Policies |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Amortization | $ | 2,367 | $ | 2,351 | $ | 921 | $ | 2,194 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco Power | |||||||||||
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Amortization | $ | 1,887 | $ | 2,405 | $ | 1,718 |
CATEGORY | YEARS | ||
Utility Plants | |||
Generation | 10 | – | 95 |
Distribution | 15 | – | 50 |
Transmission | 5 | – | 55 |
Other utility plant | 5 | – | 45 |
Other property, plant, and equipment | 5 | – | 45 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Utility plants | |||||||
Generation | $ | 1,908,344 | $ | 1,866,601 | |||
Distribution | 1,015,472 | 955,126 | |||||
Transmission | 512,428 | 503,996 | |||||
Other utility plant | 153,900 | 146,976 | |||||
Other property, plant, and equipment | 4,381 | 3,882 | |||||
Total property, plant, and equipment | 3,594,525 | 3,476,581 | |||||
Accumulated depreciation | (192,348 | ) | (75,816 | ) | |||
Net property, plant, and equipment | $ | 3,402,177 | $ | 3,400,765 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Regulated utility plants | |||||||
Generation | $ | 2,442,987 | $ | 2,406,572 | |||
Distribution | 1,462,193 | 1,405,703 | |||||
Transmission | 725,199 | 719,052 | |||||
Other utility plant | 263,105 | 259,238 | |||||
Total property, plant, and equipment | 4,893,484 | 4,790,565 | |||||
Accumulated depreciation | (1,712,590 | ) | (1,618,241 | ) | |||
Net property, plant, and equipment | $ | 3,180,894 | $ | 3,172,324 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Cleco Power’s charitable contributions | 1,200 | 1,200 | |||||
Cleco Power’s rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Diversified Lands’ mitigation escrow | 21 | 21 | |||||
Cleco Power’s future storm restoration costs | 14,456 | 17,379 | |||||
Cleco Power’s charitable contributions | 3,575 | 4,179 | |||||
Cleco Power’s rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,081 | 23,410 | |||||
Total restricted cash and cash equivalents | $ | 33,162 | $ | 46,494 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | |||||||
Cleco Katrina/Rita’s storm recovery bonds | $ | 8,597 | $ | 9,213 | |||
Charitable contributions | 1,200 | 1,200 | |||||
Rate credit escrow | 3,284 | 12,671 | |||||
Total current | 13,081 | 23,084 | |||||
Non-current | |||||||
Future storm restoration costs | 14,456 | 17,379 | |||||
Charitable contributions | 3,575 | 4,179 | |||||
Rate credit escrow | 2,029 | 1,831 | |||||
Total non-current | 20,060 | 23,389 | |||||
Total restricted cash and cash equivalents | $ | 33,141 | $ | 46,473 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note 3 — Business Combinations |
Purchase Price Allocation | |||
(THOUSANDS) | AT APR. 13, 2016 | ||
Current assets | $ | 455,016 | |
Property, plant, and equipment, net | 3,432,144 | ||
Goodwill | 1,490,797 | ||
Other long-term assets | 1,023,487 | ||
Less | |||
Current liabilities | 228,515 | ||
Net deferred income tax liabilities | 1,059,939 | ||
Other deferred credits | 279,379 | ||
Long-term debt, net | 1,470,126 | ||
Total purchase price | $ | 3,363,485 |
(THOUSANDS) | AT APR. 13, 2016 | ||
Property, plant, and equipment | $ | (1,334,932 | ) |
Accumulated depreciation | $ | (1,565,776 | ) |
Goodwill | $ | 1,490,797 | |
Intangible assets | $ | 91,826 | |
Regulatory assets | $ | 250,409 | |
Deferred income tax liabilities | $ | 126,853 | |
Other deferred credits | $ | 21,175 | |
Long-term debt | $ | 198,599 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note 4 — Regulatory Assets and Liabilities |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco Power | ||||||||||||||||||||
AT DEC. 31, | REMAINING RECOVERY PERIOD | AT DEC. 31, | REMAINING RECOVERY PERIOD | |||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||||||||
Total federal regulatory asset — income taxes | $ | 5,614 | $ | 124 | ||||||||||||||||
Total federal regulatory liability — income taxes | $ | (64,205 | ) | $ | (635 | ) | ||||||||||||||
Total state regulatory asset — income taxes | 105,868 | 106,964 | 142,788 | 112,751 | ||||||||||||||||
2017 tax reform | (348,590 | ) | — | |||||||||||||||||
AFUDC | 127,092 | 129,545 | 129,953 | 126,335 | ||||||||||||||||
Total investment tax credit | (1,633 | ) | (2,263 | ) | (372 | ) | (1,002 | ) | ||||||||||||
Total regulatory assets — deferred taxes, net | 236,941 | 234,370 | * | |||||||||||||||||
Total regulatory (liabilities) assets — deferred taxes, net | (140,426 | ) | 237,449 | * | ||||||||||||||||
Mining costs | 8,921 | 11,470 | 3.5 yrs. | 3,823 | 6,372 | 1.5 yrs. | ||||||||||||||
Interest costs | 5,221 | 5,582 | * | 4,499 | 4,860 | * | ||||||||||||||
AROs (1) | 2,462 | 1,029 | * | 2,762 | 2,096 | * | ||||||||||||||
Postretirement costs (1) | 150,274 | 160,903 | * | 142,764 | 145,268 | * | ||||||||||||||
Tree trimming costs | 6,318 | 8,066 | 2.5 yrs. | 7,193 | 5,549 | * | ||||||||||||||
Training costs | 6,863 | 7,019 | 44 yrs. | 6,552 | 6,708 | 42 yrs. | ||||||||||||||
Surcredits, net (2) | 9,661 | 13,587 | 2.5 yrs. | 2,173 | 5,876 | * | ||||||||||||||
Amended lignite mining agreement contingency (1) | 3,781 | 3,781 | * | |||||||||||||||||
AMI deferred revenue requirement | 5,318 | 5,863 | 10 yrs. | 4,227 | 4,772 | 8 yrs. | ||||||||||||||
Emergency declarations | 4,131 | — | 2.5 yrs. | |||||||||||||||||
Production operations and maintenance expenses | 12,436 | 14,761 | * | 8,625 | 13,999 | * | ||||||||||||||
AFUDC equity gross-up (2) | 71,444 | 72,859 | * | 71,205 | 70,423 | * | ||||||||||||||
Acadia Unit 1 acquisition costs | 2,548 | 2,653 | 24 yrs. | 2,336 | 2,442 | 22 yrs. | ||||||||||||||
Financing costs | 9,032 | 9,402 | * | 8,293 | 8,663 | * | ||||||||||||||
Biomass costs | 50 | 82 | 1.5 yrs. | — | 18 | — | ||||||||||||||
MISO integration costs | 2,340 | 3,275 | 2.5 yrs. | 468 | 1,404 | 0.5 yr. | ||||||||||||||
Coughlin transaction costs | 1,030 | 1,060 | 33.5 yrs. | 968 | 999 | 31.5 yrs. | ||||||||||||||
Corporate franchise tax | 373 | 1,223 | * | 153 | 1,308 | * | ||||||||||||||
Acadia FRP true-up | 377 | 754 | 0.5 yrs. | |||||||||||||||||
Energy efficiency | — | 114 | — | |||||||||||||||||
MATS Costs | 2,564 | 4,270 | 0.5 yr. | |||||||||||||||||
Other | 357 | 596 | 1.5 yrs. | 484 | 710 | * | ||||||||||||||
Total regulatory assets | 298,806 | 324,079 | 273,220 | 285,737 | ||||||||||||||||
PPA true-up | (312 | ) | (624 | ) | 0.5 yrs. | |||||||||||||||
Fuel and purchased power | 12,910 | 21,554 | * | |||||||||||||||||
Accumulated deferred fuel | 13,980 | 20,787 | * | |||||||||||||||||
Total regulatory assets, net | $ | 548,345 | $ | 579,379 | $ | 146,774 | $ | 543,973 | ||||||||||||
(1)Represents regulatory assets in which cash has not yet been expended and the assets are offset by liabilities that do not incur a carrying cost. (2)Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2015. All other assets are earning a return on investment. * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. | ||||||||||||||||||||
(1)Represents regulatory assets in which cash has not yet been expended and the assets are offset by liabilities that do not incur a carrying cost. (2)Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2017. All other assets are earning a return on investment. * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. | (1)Represents regulatory assets in which cash has not yet been expended and the assets are offset by liabilities that do not incur a carrying cost. (2)Represents regulatory assets for past expenditures that were not earning a return on investment at December 31, 2017. All other assets are earning a return on investment. * For information related to the remaining recovery periods, refer to the following disclosures for each specific regulatory asset. |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Total Cleco Power regulatory assets, net | $ | 146,774 | $ | 543,973 | |||
Cleco Merger adjustments (1) | |||||||
Fair value of long-term debt | 147,145 | 155,776 | |||||
Postretirement costs | 21,375 | 23,362 | |||||
Financing costs | 8,623 | 8,966 | |||||
Debt issuance costs | 6,665 | 7,606 | |||||
Total Cleco regulatory assets, net | $ | 330,582 | $ | 739,683 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note |
AT DEC. 31, 2015 | |||||||||||
(THOUSANDS, EXCEPT PERCENTAGES AND MW) | RODEMACHER UNIT 2 | DOLET HILLS | TOTAL | ||||||||
Utility plant in service | $ | 142,648 | $ | 390,162 | $ | 532,810 | |||||
Accumulated depreciation | $ | 73,591 | $ | 215,829 | $ | 289,420 | |||||
Construction work in progress | $ | 148 | $ | 2,075 | $ | 2,223 | |||||
Ownership interest percentage | 30 | % | 50 | % | |||||||
Nameplate capacity (MW) | 523 | 650 | |||||||||
Ownership interest (MW) | 157 | 325 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Cleco | |||||||||||
AT DEC. 31, 2017 | |||||||||||
(THOUSANDS, EXCEPT PERCENTAGES AND MW) | RODEMACHER UNIT 2 | DOLET HILLS | TOTAL | ||||||||
Utility plant in service | $ | 72,129 | $ | 185,156 | $ | 257,285 | |||||
Accumulated depreciation | $ | 3,111 | $ | 15,094 | $ | 18,205 | |||||
Construction work in progress | $ | 436 | $ | 4,657 | $ | 5,093 | |||||
Ownership interest percentage | 30 | % | 50 | % | |||||||
Nameplate capacity (MW) | 523 | 650 | |||||||||
Ownership interest (MW) | 157 | 325 |
Cleco Power | |||||||||||
AT DEC. 31, 2017 | |||||||||||
(THOUSANDS, EXCEPT PERCENTAGES AND MW) | RODEMACHER UNIT 2 | DOLET HILLS | TOTAL | ||||||||
Utility plant in service | $ | 146,309 | $ | 402,653 | $ | 548,962 | |||||
Accumulated depreciation | $ | 77,291 | $ | 232,590 | $ | 309,881 | |||||
Construction work in progress | $ | 436 | $ | 4,657 | $ | 5,093 | |||||
Ownership interest percentage | 30 | % | 50 | % | |||||||
Nameplate capacity (MW) | 523 | 650 | |||||||||
Ownership interest (MW) | 157 | 325 |
Note |
Cleco | ||||||||||||||||||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2017 | 2016 | |||||||||||||||||||||||||||
(THOUSANDS) | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE* | FAIR VALUE | CARRYING VALUE* | FAIR VALUE | ||||||||||||||||||||||
Cash equivalents | $ | 64,200 | $ | 64,200 | $ | 39,700 | $ | 39,700 | ||||||||||||||||||||||
Restricted cash equivalents | $ | 25,384 | $ | 25,384 | $ | 24,001 | $ | 24,001 | ||||||||||||||||||||||
Long-term debt | $ | 1,299,529 | $ | 1,463,989 | $ | 1,368,354 | $ | 1,601,816 | $ | 2,866,955 | $ | 2,921,325 | $ | 2,768,149 | $ | 2,754,518 |
Cleco Power | ||||||||||||||||||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2017 | 2016 | |||||||||||||||||||||||||||
(THOUSANDS) | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE | ESTIMATED FAIR VALUE | CARRYING VALUE* | FAIR VALUE | CARRYING VALUE* | FAIR VALUE | ||||||||||||||||||||||
Cash equivalents | $ | 62,000 | $ | 62,000 | $ | 34,700 | $ | 34,700 | ||||||||||||||||||||||
Restricted cash equivalents | $ | 25,363 | $ | 25,363 | $ | 23,980 | $ | 23,980 | ||||||||||||||||||||||
Long-term debt | $ | 1,265,529 | $ | 1,429,989 | $ | 1,311,354 | $ | 1,544,816 | $ | 1,369,810 | $ | 1,535,234 | $ | 1,262,373 | $ | 1,418,693 |
Cleco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLECO CONSOLIDATED FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: | FAIR VALUE MEASUREMENTS AT REPORTING DATE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2015 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2014 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2017 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2016 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||||||||||||||||||||||||||||||||||||
Asset Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional money market funds | $ | 89,584 | $ | — | $ | 89,584 | $ | — | $ | 63,701 | $ | — | $ | 63,701 | $ | — | $ | 144,302 | $ | — | $ | 144,302 | $ | — | $ | 66,410 | $ | — | $ | 66,410 | $ | — | ||||||||||||||||||||||||||||||
FTRs | 7,673 | — | — | 7,673 | 10,776 | — | — | 10,776 | 7,396 | — | — | 7,396 | 7,884 | — | — | 7,884 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 97,257 | $ | — | $ | 89,584 | $ | 7,673 | $ | 74,477 | $ | — | $ | 63,701 | $ | 10,776 | $ | 151,698 | $ | — | $ | 144,302 | $ | 7,396 | $ | 74,294 | $ | — | $ | 66,410 | $ | 7,884 | ||||||||||||||||||||||||||||||
Liability Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 1,463,989 | $ | — | $ | 1,463,989 | $ | — | $ | 1,601,816 | $ | — | $ | 1,601,816 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||
FTRs | 275 | — | — | 275 | 827 | — | — | 827 | 352 | — | — | 352 | 201 | — | — | 201 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,464,264 | $ | — | $ | 1,463,989 | $ | 275 | $ | 1,602,643 | $ | — | $ | 1,601,816 | $ | 827 | $ | 352 | $ | — | $ | — | $ | 352 | $ | 201 | $ | — | $ | — | $ | 201 |
Cleco Power | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLECO POWER FAIR VALUE MEASUREMENTS AT REPORTING DATE USING: | FAIR VALUE MEASUREMENTS AT REPORTING DATE: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(THOUSANDS) | AT DEC. 31, 2015 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2014 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2017 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2016 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||||||||||||||||||||||||||||||||||||
Asset Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional money market funds | $ | 87,363 | $ | — | $ | 87,363 | $ | — | $ | 58,680 | $ | — | $ | 58,680 | $ | — | $ | 95,681 | $ | — | $ | 95,681 | $ | — | $ | 65,089 | $ | — | $ | 65,089 | $ | — | ||||||||||||||||||||||||||||||
FTRs | 7,673 | — | — | 7,673 | 10,776 | — | — | 10,776 | 7,396 | — | — | 7,396 | 7,884 | — | — | 7,884 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 95,036 | $ | — | $ | 87,363 | $ | 7,673 | $ | 69,456 | $ | — | $ | 58,680 | $ | 10,776 | $ | 103,077 | $ | — | $ | 95,681 | $ | 7,396 | $ | 72,973 | $ | — | $ | 65,089 | $ | 7,884 | ||||||||||||||||||||||||||||||
Liability Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 1,429,989 | $ | — | $ | 1,429,989 | $ | — | $ | 1,544,816 | $ | — | $ | 1,544,816 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||
FTRs | 275 | — | — | 275 | 827 | — | — | 827 | 352 | — | — | 352 | 201 | — | — | 201 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,430,264 | $ | — | $ | 1,429,989 | $ | 275 | $ | 1,545,643 | $ | — | $ | 1,544,816 | $ | 827 | $ | 352 | $ | — | $ | — | $ | 352 | $ | 201 | $ | — | $ | — | $ | 201 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Beginning balance | $ | 9,949 | $ | 8,638 | |||
Unrealized losses* | (1,476 | ) | (2,651 | ) | |||
Purchases | 20,319 | 51,200 | |||||
Settlements | (21,394 | ) | (47,238 | ) | |||
Ending balance | $ | 7,398 | $ | 9,949 | |||
* Unrealized losses are reported in Accumulated deferred fuel on Cleco and Cleco Power's Consolidated Balance Sheets. |
Cleco | |||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | ||||||||
Beginning balance | $ | 7,683 | $ | 3,458 | $ | 7,398 | |||||
Unrealized (losses) gains* | (1,392 | ) | 3,119 | (1,031 | ) | ||||||
Purchases | 23,941 | 12,896 | 2,070 | ||||||||
Settlements | (23,188 | ) | (11,790 | ) | (4,979 | ) | |||||
Ending balance | $ | 7,044 | $ | 7,683 | $ | 3,458 | |||||
* Unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco and Cleco Power's Consolidated Balance Sheets. |
Cleco Power | |||||||
FOR THE YEAR ENDED DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Beginning balance | $ | 7,683 | $ | 7,398 | |||
Unrealized (losses) gains* | (1,392 | ) | 2,088 | ||||
Purchases | 23,941 | 14,966 | |||||
Settlements | (23,188 | ) | (16,769 | ) | |||
Ending balance | $ | 7,044 | $ | 7,683 | |||
* Unrealized (losses) gains are reported through Accumulated deferred fuel on Cleco and Cleco Power's Consolidated Balance Sheets. |
(THOUSANDS, EXCEPT DOLLAR PER MWh) | FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | |||||||||||||||
Assets | Liabilities | Low | High | ||||||||||||||||
FTRs at December 31, 2015 | $ | 7,673 | $ | 275 | RTO auction pricing | FTR price - per MWh | $ | (3.63 | ) | $ | 4.51 | ||||||||
FTRs at December 31, 2014 | $ | 10,776 | $ | 827 | RTO auction pricing | FTR price - per MWh | $ | (4.12 | ) | $ | 7.76 |
FAIR VALUE | VALUATION TECHNIQUE | SIGNIFICANT UNOBSERVABLE INPUTS | FORWARD PRICE RANGE | ||||||||||||||||
(THOUSANDS, EXCEPT DOLLAR PER MWh) | Assets | Liabilities | Low | High | |||||||||||||||
FTRs at December 31, 2017 | $ | 7,396 | $ | 352 | RTO auction pricing | FTR price - per MWh | $ | (2.95 | ) | $ | 6.33 | ||||||||
FTRs at December 31, 2016 | $ | 7,884 | $ | 201 | RTO auction pricing | FTR price - per MWh | $ | (3.61 | ) | $ | 6.04 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT DEC. 31, 2017 | AT DEC. 31, 2016 | ||||||
Commodity-related contracts | |||||||||
FTRs: | |||||||||
Current | Energy risk management assets | $ | 7,396 | $ | 7,884 | ||||
Current | Energy risk management liabilities | 352 | 201 | ||||||
Commodity-related contracts, net | $ | 7,044 | $ | 7,683 |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||
(THOUSANDS) | BALANCE SHEET LINE ITEM | AT DEC. 31, 2015 | AT DEC. 31, 2014 | ||||||
Commodity-related contracts | |||||||||
FTRs: | |||||||||
Current | Energy risk management assets | $ | 7,673 | $ | 10,776 | ||||
Current | Energy risk management liabilities | 275 | 827 | ||||||
Commodity-related contracts, net | $ | 7,398 | $ | 9,949 |
Cleco | |||||||||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||||||||||||||||||||
2015 | 2014 | 2013 | SUCCESSOR | PREDECESSOR | |||||||||||||||||||||||||
(THOUSANDS) | DERIVATIVES LINE ITEM | AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | DERIVATIVES LINE ITEM | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | ||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||||
FTRs(1) | Electric operations | $ | 50,594 | 74,454 | $ | 243 | Electric operations | $ | 44,181 | $ | 30,915 | $ | 8,563 | $ | 50,594 | ||||||||||||||
FTRs(1) | Power purchased for utility customers | (27,509 | ) | (46,386 | ) | (19 | ) | Power purchased for utility customers | (26,017 | ) | (14,941 | ) | (5,761 | ) | (27,509 | ) | |||||||||||||
Total | $ | 23,085 | $ | 28,068 | $ | 224 | $ | 18,164 | $ | 15,974 | $ | 2,802 | $ | 23,085 |
Cleco Power | ||||||||||||
AMOUNT OF GAIN/(LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||||
FOR THE YEAR ENDED DEC. 31, | ||||||||||||
(THOUSANDS) | DERIVATIVES LINE ITEM | 2017 | 2016 | 2015 | ||||||||
Commodity contracts | ||||||||||||
FTRs(1) | Electric operations | $ | 44,181 | $ | 39,478 | $ | 50,594 | |||||
FTRs(1) | Power purchased for utility customers | (26,017 | ) | (20,702 | ) | (27,509 | ) | |||||
Total | $ | 18,164 | $ | 18,776 | $ | 23,085 |
CLECO | ||
CLECO POWER |
Note |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Bonds | |||||||
Senior notes, 2.94%, due 2022 | $ | 25,000 | $ | — | |||
Senior notes, 3.08%, due 2023 | 100,000 | — | |||||
Senior notes, 3.68%, due 2025 | 75,000 | 75,000 | |||||
Senior notes, 3.47%, due 2026 | 130,000 | 130,000 | |||||
Senior notes, 4.33%, due 2027 | 50,000 | 50,000 | |||||
Senior notes, 3.57%, due 2028 | 200,000 | 200,000 | |||||
Senior notes, 6.50%, due 2035 | 295,000 | 295,000 | |||||
Senior notes, 6.00%, due 2040 | 250,000 | 250,000 | |||||
Senior notes, 5.12%, due 2041 | 100,000 | 100,000 | |||||
Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 | 50,000 | 50,000 | |||||
Series B GO Zone bonds, 4.25%, due 2038 | 50,000 | 50,000 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | — | 1,115 | |||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 50,819 | 67,600 | |||||
Total bonds | 1,375,819 | 1,268,715 | |||||
Other long-term debt | |||||||
Barge lease obligations | — | 1,819 | |||||
Gross amount of long-term debt | 1,375,819 | 1,270,534 | |||||
Less: long-term debt due within one year | 19,193 | 17,896 | |||||
Less: lease obligations classified as long-term debt due within one year | — | 1,819 | |||||
Unamortized debt discount | (6,010 | ) | (6,342 | ) | |||
Unamortized debt issuance costs | (9,141 | ) | (9,421 | ) | |||
Total long-term debt, net | $ | 1,341,475 | $ | 1,235,056 |
AT DEC. 31, | ||||||||
(THOUSANDS) | 2015 | 2014 | ||||||
Bonds | ||||||||
Cleco Power’s senior notes, 4.95%, due 2015 | $ | — | $ | 50,000 | ||||
Cleco Power’s senior notes, 6.65%, due 2018 | 250,000 | 250,000 | ||||||
Cleco Power’s senior notes, 3.68%, due 2025 | 75,000 | — | ||||||
Cleco Power’s senior notes, 4.33%, due 2027 | 50,000 | 50,000 | ||||||
Cleco Power’s senior notes, 6.50%, due 2035 | 295,000 | 295,000 | ||||||
Cleco Power’s senior notes, 6.00%, due 2040 | 250,000 | 250,000 | ||||||
Cleco Power’s senior notes, 5.12%, due 2041 | 100,000 | 100,000 | ||||||
Cleco Power’s Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 | 50,000 | 50,000 | ||||||
Cleco Power’s Series B GO Zone bonds, 4.25%, due 2038 | 50,000 | 50,000 | ||||||
Cleco Power’s solid waste disposal facility bonds, 4.70%, due 2036, callable after November 1, 2016 | 60,000 | 60,000 | ||||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | 17,929 | 33,754 | ||||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 67,600 | 67,600 | ||||||
Total bonds | 1,265,529 | 1,256,354 | ||||||
Other long-term debt | ||||||||
Cleco Corporation’s credit facility draws | 34,000 | 57,000 | ||||||
Cleco Power’s credit facility draws | — | 20,000 | ||||||
Cleco Power’s bank term loan, due 2015 | — | 35,000 | ||||||
Barge lease obligations, ending 2017 | 4,425 | 6,873 | ||||||
Gross amount of long-term debt | 1,303,954 | 1,375,227 | ||||||
Less: long-term debt due within one year | 16,814 | 15,824 | ||||||
Less: lease obligations classified as long-term debt due within one year | 2,607 | 2,448 | ||||||
Unamortized debt discount | (6,885 | ) | (7,302 | ) | ||||
Unamortized debt issuance costs | (9,945 | ) | (10,655 | ) | (1) | |||
Total long-term debt, net | $ | 1,267,703 | $ | 1,338,998 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Total Cleco Power long-term debt, net | $ | 1,341,475 | $ | 1,235,056 | |||
Cleco Holdings’ long-term debt, net | |||||||
Senior notes, 3.250%, due 2023 | 165,000 | 165,000 | |||||
Senior notes, 3.743%, due 2026 | 535,000 | 535,000 | |||||
Senior notes, 4.973%, due 2046 | 350,000 | 350,000 | |||||
Bank term loan, variable rate, due 2021 | 300,000 | 300,000 | |||||
Unamortized debt issuance costs | (2,516 | ) | (2,261 | ) | |||
Fair value adjustment | 147,146 | 155,776 | |||||
Total Cleco long-term debt, net | $ | 2,836,105 | $ | 2,738,571 |
(THOUSANDS) | CLECO | CLECO POWER | ||||
For the year ending Dec. 31, | ||||||
2018 | $ | 19,193 | $ | 19,193 | ||
2019 | $ | 20,571 | $ | 20,571 | ||
2020 | $ | 11,055 | $ | 11,055 | ||
2021 | $ | 300,000 | $ | — | ||
2022 | $ | 25,000 | $ | 25,000 | ||
Thereafter | $ | 2,350,000 | $ | 1,300,000 |
YEAR ENDING DEC. 31, | (THOUSANDS) | ||
Amounts payable under long-term debt agreements | |||
2016 | $ | 16,814 | |
2017 | $ | 17,896 | |
2018 | $ | 303,193 | |
2019 | $ | 20,571 | |
2020 | $ | 11,055 | |
Thereafter | $ | 930,000 |
YEAR ENDING DEC. 31, | (THOUSANDS) | |||
Amounts payable under capital lease agreements | ||||
2016 | $ | 2,607 | ||
2017 | $ | 1,818 |
AT DEC. 31, | ||||||||
(THOUSANDS) | 2015 | 2014 | ||||||
Bonds | ||||||||
Senior notes, 4.95%, due 2015 | $ | — | $ | 50,000 | ||||
Senior notes, 6.65%, due 2018 | 250,000 | 250,000 | ||||||
Senior notes, 3.68%, due 2025 | 75,000 | — | ||||||
Senior notes, 4.33%, due 2027 | 50,000 | 50,000 | ||||||
Senior notes, 6.50%, due 2035 | 295,000 | 295,000 | ||||||
Senior notes, 6.00%, due 2040 | 250,000 | 250,000 | ||||||
Senior notes, 5.12%, due 2041 | 100,000 | 100,000 | ||||||
Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020 | 50,000 | 50,000 | ||||||
Series B GO Zone bonds, 4.25%, due 2038 | 50,000 | 50,000 | ||||||
Solid waste disposal facility bonds, 4.70%, due 2036, callable after November 1, 2016 | 60,000 | 60,000 | ||||||
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020 | 17,929 | 33,754 | ||||||
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023 | 67,600 | 67,600 | ||||||
Total bonds | 1,265,529 | 1,256,354 | ||||||
Other long-term debt | ||||||||
Bank term loan, due 2015 | — | 35,000 | ||||||
Credit facility draws | — | 20,000 | ||||||
Barge lease obligations, ending 2017 | 4,425 | 6,873 | ||||||
Gross amount of long-term debt | 1,269,954 | 1,318,227 | ||||||
Less: long-term debt due within one year | 16,814 | 15,824 | ||||||
Less: lease obligations classified as long-term debt due within one year | 2,607 | 2,448 | ||||||
Unamortized debt discount | (6,885 | ) | (7,302 | ) | ||||
Unamortized debt issuance costs | (9,609 | ) | (10,044 | ) | (1) | |||
Total long-term debt, net | $ | 1,234,039 | $ | 1,282,609 |
YEAR ENDING DEC. 31, | (THOUSANDS) | ||
Amounts payable under long-term debt agreements | |||
2016 | $ | 16,814 | |
2017 | $ | 17,896 | |
2018 | $ | 269,193 | |
2019 | $ | 20,571 | |
2020 | $ | 11,055 | |
Thereafter | $ | 930,000 |
YEAR ENDING DEC. 31, | (THOUSANDS) | ||
Amounts payable under capital lease agreements | |||
2016 | $ | 2,607 | |
2017 | $ | 1,818 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note |
SHARES | WEIGHTED- AVERAGE GRANT-DATE FAIR VALUE | |||||
Non-vested at Jan. 1, 2015 | 301,049 | $ | 43.29 | |||
Granted | 90,050 | $ | 54.74 | |||
Vested | (82,322 | ) | $ | 40.26 | ||
Forfeited | (38,789 | ) | $ | 42.75 | ||
Non-vested at Dec. 31, 2015 | 269,988 | $ | 48.11 |
AT DEC. 31, | PREDECESSOR | |||||||||||||
2015 | 2014 | 2013 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Expected term (in years) (1) | 3.0 | 3.0 | 3.0 | 3.0 | ||||||||||
Volatility of Cleco stock (2) | 15.8 | % | 17.3 | % | 18.1 | % | 15.8 | % | ||||||
Correlation between Cleco stock volatility and peer group | 63.1 | % | 66.5 | % | 69.7 | % | 63.1 | % | ||||||
Expected dividend yield | 2.92 | % | 3.0 | % | 3.2 | % | 2.9 | % | ||||||
Weighted average fair value (Monte Carlo model) | $ | 45.60 | $ | 54.58 | $ | 42.66 | $ | 45.60 |
CLECO | ||
CLECO POWER |
CLECO | CLECO POWER | ||||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | ||||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Equity classification | |||||||||||||||||||||||
Non-vested stock (1) | $ | 6,110 | $ | 6,308 | $ | 6,147 | $ | 2,000 | $ | 2,004 | $ | 1,754 | |||||||||||
Total equity classification | 6,110 | 6,308 | 6,147 | 2,000 | 2,004 | 1,754 | |||||||||||||||||
Liability classification | |||||||||||||||||||||||
Common stock equivalent units | — | — | 1 | — | — | — | |||||||||||||||||
Total pretax compensation expense | $ | 6,110 | $ | 6,308 | $ | 6,148 | $ | 2,000 | $ | 2,004 | $ | 1,754 | |||||||||||
Tax benefit | $ | 2,351 | $ | 2,427 | $ | 2,366 | $ | 770 | $ | 771 | $ | 675 |
Note |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Change in benefit obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 498,372 | $ | 392,488 | $ | 44,652 | $ | 43,840 | |||||||
Service cost | 10,419 | 8,050 | 1,635 | 1,542 | |||||||||||
Interest cost | 20,795 | 19,851 | 1,607 | 1,809 | |||||||||||
Plan participants’ contributions | — | — | 903 | 872 | |||||||||||
Actuarial (gain) loss | (30,483 | ) | 95,576 | (1,039 | ) | 1,228 | |||||||||
Expenses paid | (1,995 | ) | (1,671 | ) | — | — | |||||||||
Medicare D | — | — | 48 | 132 | |||||||||||
Other adjustments | — | — | — | (551 | ) | ||||||||||
Benefits paid | (17,046 | ) | (15,922 | ) | (4,736 | ) | (4,220 | ) | |||||||
Benefit obligation at end of year | 480,062 | 498,372 | 43,070 | 44,652 | |||||||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of year | 412,803 | 384,555 | — | — | |||||||||||
Actual return on plan assets | (10,230 | ) | 45,841 | — | — | ||||||||||
Employer contributions | — | — | — | — | |||||||||||
Expenses paid | (1,995 | ) | (1,671 | ) | — | — | |||||||||
Benefits paid | (17,046 | ) | (15,922 | ) | — | — | |||||||||
Fair value of plan assets at end of year | 383,532 | 412,803 | — | — | |||||||||||
Unfunded status | $ | (96,530 | ) | $ | (85,569 | ) | $ | (43,070 | ) | $ | (44,652 | ) |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
SUCCESSOR | PREDECESSOR | SUCCESSOR | PREDECESSOR | ||||||||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 512,785 | $ | 499,724 | $ | 480,062 | $ | 44,136 | $ | 42,707 | $ | 43,070 | |||||||||||
Service cost | 9,039 | 6,909 | 2,563 | 1,446 | 1,112 | 431 | |||||||||||||||||
Interest cost | 21,648 | 15,088 | 6,242 | 1,569 | 1,237 | 476 | |||||||||||||||||
Plan participants’ contributions | — | — | — | 1,149 | 758 | 300 | |||||||||||||||||
Actuarial loss | 46,686 | 6,242 | 16,857 | 437 | 2,292 | — | |||||||||||||||||
Expenses paid | (3,020 | ) | (2,025 | ) | (801 | ) | — | — | — | ||||||||||||||
Benefits paid | (19,923 | ) | (13,153 | ) | (5,199 | ) | (5,534 | ) | (3,970 | ) | (1,570 | ) | |||||||||||
Benefit obligation at end of period | 567,215 | 512,785 | 499,724 | 43,203 | 44,136 | 42,707 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of period | 403,715 | 398,515 | 383,532 | — | — | — | |||||||||||||||||
Actual return on plan assets | 63,317 | 20,378 | 20,983 | — | — | — | |||||||||||||||||
Expenses paid | (3,020 | ) | (2,025 | ) | (801 | ) | — | — | — | ||||||||||||||
Benefits paid | (19,923 | ) | (13,153 | ) | (5,199 | ) | — | — | — | ||||||||||||||
Fair value of plan assets at end of period | 444,089 | 403,715 | 398,515 | — | — | — | |||||||||||||||||
Unfunded status | $ | (123,126 | ) | $ | (109,070 | ) | $ | (101,209 | ) | $ | (43,203 | ) | $ | (44,136 | ) | $ | (42,707 | ) |
PENSION BENEFITS | ||||||||||||||
PENSION BENEFITS | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Accumulated benefit obligation | $ | 440,876 | $ | 452,991 | $ | 520,612 | $ | 473,197 |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net actuarial loss (gain) occurring during year | $ | 3,128 | $ | 74,242 | $ | (1,039 | ) | $ | 1,228 | ||||||
Net actuarial loss amortized during year | $ | 13,828 | $ | 6,743 | $ | 866 | $ | 670 | |||||||
Transition obligation amortized during year | $ | — | $ | — | $ | — | $ | 16 | |||||||
Prior service (credit) cost amortized during year | $ | (71 | ) | $ | (71 | ) | $ | 119 | $ | 119 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
SUCCESSOR | PREDECESSOR | SUCCESSOR | PREDECESSOR | ||||||||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | |||||||||||||||||
Net actuarial loss (gain) occurring during period | $ | 7,434 | $ | (10,198 | ) | $ | 16,056 | $ | 437 | $ | 2,292 | $ | — | ||||||||||
Net actuarial loss (gain) amortized during period | $ | 10,008 | $ | 8,138 | $ | 2,798 | $ | (50 | ) | $ | — | $ | 181 | ||||||||||
Prior service (credit) cost amortized during period | $ | (71 | ) | $ | (51 | ) | $ | (20 | ) | $ | — | $ | — | $ | 34 |
PENSION BENEFITS | OTHER BENEFITS | |||||||||||||||||||||||||||||||||||||||||||||
PENSION BENEFITS | OTHER BENEFITS | AT DEC. 31, | AT DEC. 31, | |||||||||||||||||||||||||||||||||||||||||||
(THOUSANDS) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 8,935 | $ | 150,620 | $ | 161,320 | $ | 666 | $ | 8,805 | $ | 10,710 | ||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 12,267 | $ | 142,967 | $ | 145,542 | $ | (98 | ) | $ | 2,779 | $ | 2,292 | |||||||||||||||||||||||||||||||||
Prior service (credit) cost | $ | (71 | ) | $ | (345 | ) | $ | (417 | ) | $ | 119 | $ | 363 | $ | 482 | $ | (71 | ) | $ | (203 | ) | $ | (274 | ) | $ | — | $ | — | $ | — |
PENSION BENEFITS | OTHER BENEFITS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION BENEFITS | OTHER BENEFITS | SUCCESSOR | PREDECESSOR | SUCCESSOR | PREDECESSOR | |||||||||||||||||||||||||||||||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
Components of periodic benefit costs: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of periodic benefit costs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 10,419 | $ | 8,050 | $ | 9,889 | $ | 1,635 | $ | 1,542 | $ | 1,656 | $ | 9,039 | $ | 6,909 | $ | 2,563 | $ | 10,419 | $ | 1,446 | $ | 1,112 | $ | 431 | $ | 1,635 | ||||||||||||||||||||||||||
Interest cost | 20,795 | 19,851 | 17,940 | 1,607 | 1,809 | 1,568 | 21,648 | 15,088 | 6,242 | 20,795 | 1,569 | 1,237 | 476 | 1,607 | ||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (23,382 | ) | (24,507 | ) | (23,446 | ) | — | — | — | (24,064 | ) | (17,310 | ) | (6,812 | ) | (23,382 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
Amortizations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transition obligation | — | — | — | — | 16 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortizations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior period service (credit) cost | (71 | ) | (71 | ) | (71 | ) | 119 | 119 | — | (71 | ) | (51 | ) | (20 | ) | (71 | ) | — | — | 34 | 119 | |||||||||||||||||||||||||||||||||
Net loss | 13,828 | 6,743 | 13,218 | 866 | 670 | 1,131 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (gain) | 10,008 | 8,138 | 2,798 | 13,828 | (50 | ) | — | 181 | 866 | |||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 21,589 | $ | 10,066 | $ | 17,530 | $ | 4,227 | $ | 4,156 | $ | 4,375 | $ | 16,560 | $ | 12,774 | $ | 4,771 | $ | 21,589 | $ | 2,965 | $ | 2,349 | $ | 1,122 | $ | 4,227 |
Cleco | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | $ | 4,061 | $ | 3,854 | |||
Non-current | $ | 39,142 | $ | 40,196 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | $ | 3,525 | $ | 3,345 | |||
Non-current | $ | 34,033 | $ | 34,892 |
OTHER BENEFITS LIABILITY | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Cleco | |||||||
Current | $ | 3,613 | $ | 3,470 | |||
Non-current | $ | 39,457 | $ | 41,182 | |||
Cleco Power | |||||||
Current | $ | 3,140 | $ | 3,206 | |||
Non-current | $ | 34,300 | $ | 31,250 |
CLECO | ||
CLECO POWER |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Weighted-average assumptions used to determine the benefit obligation as of Dec. 31: | |||||||||||
Discount rate | 4.62 | % | 4.21 | % | 4.08 | % | 3.76 | % | |||
Rate of compensation increase | 3.08 | % | 3.17 | % | N/A | N/A |
PENSION BENEFITS | OTHER BENEFITS | PENSION BENEFITS | OTHER BENEFITS | |||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | AT DEC. 31, | AT DEC. 31, | |||||||||||||||||
Weighted-average assumptions used to determine the net benefit cost for the year ended Dec. 31: | ||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
Weighted-average assumptions used to determine the benefit obligation | ||||||||||||||||||||||||
Discount rate | 4.21 | % | 5.14 | % | 4.19 | % | 3.76 | % | 4.46 | % | 3.54 | % | 3.73 | % | 4.27 | % | 3.47 | % | 3.81 | % | ||||
Expected return on plan assets | 6.15 | % | 6.76 | % | 6.78 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase | 3.08 | % | 3.17 | % | 3.26 | % | N/A | N/A | N/A | 2.98 | % | 3.03 | % | N/A | N/A |
PENSION BENEFITS | OTHER BENEFITS | ||||||||||||||||||||||
SUCCESSOR | PREDECESSOR | SUCCESSOR | PREDECESSOR | ||||||||||||||||||||
FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | ||||||||||||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||||||||||||||||
Discount rate | 4.27 | % | 4.21 | % | 4.62 | % | 4.21 | % | 3.81 | % | 4.08 | % | 4.08 | % | 3.76 | % | |||||||
Expected return on plan assets | 6.08 | % | 6.21 | % | 6.21 | % | 6.15 | % | N/A | N/A | N/A | N/A | |||||||||||
Rate of compensation increase | 2.98 | % | 3.03 | % | 3.03 | % | 3.08 | % | N/A | N/A | N/A | N/A |
(THOUSANDS) | AT DEC. 31, 2015 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||
Asset Description | ||||||||||||||||
Cash and cash equivalents | $ | 4,568 | $ | — | $ | 4,568 | $ | — | ||||||||
Common stock | 13,816 | 13,816 | — | — | ||||||||||||
Obligations of U.S. Government, U.S. Government Agencies, and state and local governments | 48,792 | — | 48,792 | — | ||||||||||||
Mutual funds | ||||||||||||||||
Domestic | 47,801 | 47,801 | — | — | ||||||||||||
International | 22,853 | 22,853 | — | — | ||||||||||||
Real estate funds | 17,890 | — | — | 17,890 | ||||||||||||
Corporate debt | 182,408 | — | 182,408 | — | ||||||||||||
Total | $ | 338,128 | $ | 84,470 | $ | 235,768 | $ | 17,890 | ||||||||
Investments measured at net asset value | 42,362 | |||||||||||||||
Interest accrual | 3,042 | |||||||||||||||
Total net assets | $ | 383,532 |
CLECO | ||
CLECO POWER |
(THOUSANDS) | AT DEC. 31, 2014 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | AT DEC. 31, 2017 | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||||||||||||||||||||||
Asset Description | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5,180 | $ | — | $ | 5,180 | $ | — | ||||||||||||||||||||||||
Cash equivalents | $ | 4,825 | $ | — | $ | 4,825 | $ | — | ||||||||||||||||||||||||
Common stock | 13,967 | 13,967 | — | — | 17,655 | 17,655 | — | — | ||||||||||||||||||||||||
Preferred stock | 968 | 968 | — | — | ||||||||||||||||||||||||||||
Obligations of U.S. Government, U.S. Government Agencies, and state and local governments | 49,942 | — | 49,942 | — | ||||||||||||||||||||||||||||
Obligations of Government, Government Agencies, and state and local governments | Obligations of Government, Government Agencies, and state and local governments | 50,852 | — | 50,852 | — | |||||||||||||||||||||||||||
Mutual funds | Mutual funds | |||||||||||||||||||||||||||||||
Domestic | 55,005 | 55,005 | — | — | 58,617 | 58,617 | — | — | ||||||||||||||||||||||||
International | 25,096 | 25,096 | — | — | 36,970 | 36,970 | — | — | ||||||||||||||||||||||||
Real estate funds | 18,792 | — | — | 18,792 | 19,195 | — | — | 19,195 | ||||||||||||||||||||||||
Corporate debt | 202,253 | — | 202,253 | — | 204,835 | — | 204,835 | — | ||||||||||||||||||||||||
Total | $ | 371,203 | $ | 95,036 | $ | 257,375 | $ | 18,792 | $ | 392,949 | $ | 113,242 | $ | 260,512 | $ | 19,195 | ||||||||||||||||
Investments measured at net asset value(1) | 38,770 | Investments measured at net asset value* | 48,103 | |||||||||||||||||||||||||||||
Interest accrual | 2,830 | Interest accrual | 3,037 | |||||||||||||||||||||||||||||
Total net assets | $ | 412,803 | Total net assets | $ | 444,089 | |||||||||||||||||||||||||||
*Investments measured at net asset value consist of Common/collective trust. |
|
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
(THOUSANDS) | ||||||
Balance, Dec. 31, 2013 | $ | 17,928 | ||||
Unrealized gains | 570 | |||||
Purchases | 294 | |||||
Balance, Dec. 31, 2014 | $ | 18,792 | ||||
PREDECESSOR | ||||||
Balance, Dec. 31, 2015 | $ | 17,890 | ||||
Realized gains | 9 | 71 | ||||
Unrealized gains | (148 | ) | 89 | |||
Purchases | 679 | 26 | ||||
Sales | (1,442 | ) | (205 | ) | ||
Balance, Dec. 31, 2015 | $ | 17,890 | ||||
Balance, Apr. 12, 2016 | $ | 17,871 | ||||
SUCCESSOR | ||||||
Balance, Apr. 13, 2016 | $ | 17,871 | ||||
Realized gains | 151 | |||||
Unrealized gains | 227 | |||||
Purchases | 570 | |||||
Sales | (151 | ) | ||||
Balance, Dec. 31, 2016 | $ | 18,668 | ||||
Realized losses | (2,365 | ) | ||||
Unrealized gains | 2,674 | |||||
Purchases | 649 | |||||
Sales | (431 | ) | ||||
Balance, Dec. 31, 2017 | $ | 19,195 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
PERCENT OF TOTAL PLAN ASSETS* | ||||||||
MINIMUM | TARGET | MAXIMUM | ||||||
Return-seeking | ||||||||
Domestic equity | 16 | % | ||||||
International equity | 16 | % | ||||||
Real estate | 7 | % | ||||||
Hedge fund of funds | 1 | % | ||||||
Total return-seeking | 35 | % | 40 | % | 45 | % | ||
Liability hedging | ||||||||
Fixed income- long government/credit | 20 | % | ||||||
Fixed income - long credit | 40 | % | ||||||
Total liability hedging | 55 | % | 60 | % | 65 | % | ||
*Minimums and maximums within subcategories not intended to equal total for category. |
PERCENT OF TOTAL PLAN ASSETS | ||||||||
AT DEC. 31, 2017 | ||||||||
MINIMUM | TARGET | MAXIMUM | ||||||
Return-seeking | ||||||||
Domestic equity | 17 | % | ||||||
International equity | 19 | % | ||||||
Real estate | 4 | % | ||||||
Total return-seeking | 35 | % | 40 | % | 45 | % | ||
Liability hedging* | 55 | % | 60 | % | 65 | % | ||
*Liability hedging is not target by subcategories. |
ONE-PERCENTAGE POINT | ONE-PERCENTAGE POINT | |||||||||||||
(THOUSANDS) | INCREASE | DECREASE | INCREASE | DECREASE | ||||||||||
Effect on total of service and interest cost components | $ | 19 | $ | (22 | ) | $ | 16 | $ | (18 | ) | ||||
Effect on postretirement benefit obligation | $ | 258 | $ | (288 | ) | $ | 199 | $ | (222 | ) |
(THOUSANDS) | PENSION BENEFITS | OTHER BENEFITS, GROSS | PENSION BENEFITS | OTHER BENEFITS, GROSS | ||||||||||
2016 | $ | 18,509 | $ | 3,686 | ||||||||||
2017 | $ | 19,651 | $ | 3,714 | ||||||||||
For the year ending Dec. 31, | ||||||||||||||
2018 | $ | 20,787 | $ | 3,779 | $ | 21,655 | $ | 4,131 | ||||||
2019 | $ | 22,048 | $ | 3,866 | $ | 22,795 | $ | 4,077 | ||||||
2020 | $ | 23,424 | $ | 3,897 | $ | 23,948 | $ | 3,979 | ||||||
2021 | $ | 25,041 | $ | 3,894 | ||||||||||
2022 | $ | 26,189 | $ | 3,801 | ||||||||||
Next five years | $ | 136,165 | $ | 18,598 | $ | 147,475 | $ | 16,842 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
SERP BENEFITS | ||||||||||||||||||
SERP BENEFITS | SUCCESSOR | PREDECESSOR | ||||||||||||||||
(THOUSANDS) | 2015 | 2014 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | |||||||||||||
Change in benefit obligation | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 73,902 | $ | 57,865 | ||||||||||||||
Benefit obligation at beginning of period | $ | 78,045 | $ | 79,555 | $ | 72,315 | ||||||||||||
Service cost | 2,705 | 2,278 | 494 | 571 | 702 | |||||||||||||
Interest cost | 3,056 | 3,028 | 3,239 | 2,275 | 900 | |||||||||||||
Actuarial (gain) loss | (4,488 | ) | 13,436 | |||||||||||||||
Actuarial loss | 6,442 | 1,152 | — | |||||||||||||||
Benefits paid | (2,860 | ) | (2,705 | ) | (4,376 | ) | (2,999 | ) | (1,186 | ) | ||||||||
Benefit obligation at end of year | $ | 72,315 | $ | 73,902 | ||||||||||||||
Plan amendments | 180 | (2,509 | ) | — | ||||||||||||||
Curtailments | — | — | 3,602 | |||||||||||||||
Special/contractual termination benefits | 315 | — | 3,222 | |||||||||||||||
Benefit obligation at end of period | $ | 84,339 | $ | 78,045 | $ | 79,555 |
SERP BENEFITS | ||||||||||||||
SERP BENEFITS | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Accumulated benefit obligation | $ | 65,840 | $ | 67,126 | $ | 84,339 | $ | 76,194 |
SERP BENEFITS | ||||||||||||||||||
SERP BENEFITS | SUCCESSOR | PREDECESSOR | ||||||||||||||||
(THOUSANDS) | 2015 | 2014 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | |||||||||||||
Net actuarial (gain) loss occurring during year | $ | (4,487 | ) | $ | 13,436 | |||||||||||||
Net actuarial loss (gain) occurring during year | $ | 6,622 | $ | (1,345 | ) | $ | — | |||||||||||
Net actuarial loss amortized during year | $ | 2,973 | $ | 1,876 | $ | 2,105 | $ | 1,651 | $ | 574 | ||||||||
Prior service cost amortized during year | $ | 54 | $ | 54 | ||||||||||||||
Prior service (credit) cost amortized during year | $ | (190 | ) | $ | (50 | ) | $ | 17 |
SERP BENEFITS | ||||||||||||||||||||||
SERP BENEFITS | AT DEC. 31, | |||||||||||||||||||||
(THOUSANDS) | 2016 | 2015 | 2014 | 2018 | 2017 | 2016 | ||||||||||||||||
Net actuarial loss | $ | 2,033 | $ | 23,763 | $ | 31,224 | $ | 2,358 | $ | 25,336 | $ | 20,999 | ||||||||||
Prior service cost | $ | 59 | $ | 120 | $ | 173 | ||||||||||||||||
Prior service (credit) | $ | (160 | ) | $ | (1,997 | ) | $ | (2,368 | ) |
SERP BENEFITS | ||||||||||||||||||||||||||
SERP BENEFITS | SUCCESSOR | PREDECESSOR | ||||||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||||||||||
Components of periodic benefit costs: | ||||||||||||||||||||||||||
Components of periodic benefit costs | ||||||||||||||||||||||||||
Service cost | $ | 2,705 | $ | 2,278 | $ | 2,055 | $ | 494 | $ | 571 | $ | 702 | $ | 2,705 | ||||||||||||
Interest cost | 3,056 | 3,028 | 2,578 | 3,239 | 2,275 | 900 | 3,056 | |||||||||||||||||||
Amortizations: | ||||||||||||||||||||||||||
Prior period service cost | 54 | 54 | 54 | |||||||||||||||||||||||
Amortizations | ||||||||||||||||||||||||||
Prior period service (credit) cost | (190 | ) | (50 | ) | 17 | 54 | ||||||||||||||||||||
Net loss | 2,973 | 1,875 | 2,305 | 2,105 | 1,651 | 574 | 2,973 | |||||||||||||||||||
Net periodic benefit cost | $ | 8,788 | $ | 7,235 | $ | 6,992 | 5,648 | 4,447 | 2,193 | 8,788 | ||||||||||||||||
Curtailment charge | — | — | 3,602 | — | ||||||||||||||||||||||
Special/contractual termination benefits | 315 | — | 3,222 | — | ||||||||||||||||||||||
Total benefit cost | $ | 5,963 | $ | 4,447 | $ | 9,017 | $ | 8,788 |
SERP BENEFITS | |||||
AT DEC. 31, | |||||
2017 | 2016 | ||||
Weighted-average assumptions used to determine the benefit obligation | |||||
Discount rate | 3.70 | % | 4.22 | % | |
Rate of compensation increase | 5.00 | % | 5.00 | % |
SERP | |||||
2015 | 2014 | ||||
Weighted-average assumptions used to determine the benefit obligation as of Dec. 31: | |||||
Discount rate | 4.60 | % | 4.20 | % | |
Rate of compensation increase | 5.00 | % | 5.00 | % |
SERP | ||||||||
2015 | 2014 | 2013 | ||||||
Weighted-average assumptions used to determine the net benefit cost for the year ended Dec. 31: | ||||||||
Discount rate | 4.20 | % | 5.09 | % | 4.17 | % | ||
Rate of compensation increase | 5.00 | % | 5.00 | % | 5.00 | % |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
SERP BENEFITS | |||||||||||||||||
SUCCESSOR | PREDECESSOR | ||||||||||||||||
MAR. 31, 2017 - DEC. 31, 2017 | JAN. 1, 2017 - MAR. 30, 2017 | SEPT. 1, 2016 - DEC. 31, 2016 | APR. 13, 2016 - AUG. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | ||||||||||||
Weighted-average assumptions used to determine the net benefit cost | |||||||||||||||||
Discount rate | 4.08 | % | 4.22 | % | 3.47 | % | 4.15 | % | 4.60 | % | 4.20 | % | |||||
Rate of compensation increase | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % |
Cleco | ||||||||||||||
SERP LIABILITY | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Cleco | ||||||||||||||
Current | $ | 3,238 | $ | 3,031 | $ | 4,471 | $ | 4,308 | ||||||
Non-current | $ | 69,049 | $ | 70,871 | $ | 79,868 | $ | 73,738 | ||||||
Cleco Power | ||||||||||||||
Current | $ | 1,000 | $ | 813 | ||||||||||
Non-current | $ | 21,321 | $ | 19,006 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Current | $ | 929 | $ | 885 | |||
Non-current | $ | 16,589 | $ | 15,145 |
(THOUSANDS) | 2016 | 2017 | 2018 | 2019 | 2020 | NEXT FIVE YEARS | 2018 | 2019 | 2020 | 2021 | 2022 | NEXT FIVE YEARS | ||||||||||||||||||||||||||||||||||
SERP | $ | 3,311 | $ | 3,366 | $ | 3,562 | $ | 3,734 | $ | 4,061 | $ | 23,519 | $ | 4,553 | $ | 4,585 | $ | 4,665 | $ | 4,672 | $ | 4,645 | $ | 23,830 |
FOR THE YEAR ENDED DEC. 31, | SUCCESSOR | PREDECESSOR | ||||||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||||||||||
401(k) Plan expense | $ | 5,029 | $ | 4,730 | $ | 4,422 | $ | 5,386 | $ | 3,554 | $ | 1,593 | $ | 5,029 |
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
401(k) Plan expense | $ | 888 | $ | 554 | $ | 319 | $ | 944 |
Note |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS, EXCEPT FOR %) | 2015 | 2014 | 2013 | ||||||||
Income before tax | $ | 211,373 | $ | 221,855 | $ | 240,260 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
Tax at federal statutory rate | $ | 73,981 | $ | 77,649 | $ | 84,091 | |||||
Increase (decrease): | |||||||||||
Plant differences, including AFUDC flowthrough | 1,875 | 462 | 427 | ||||||||
Amortization of investment tax credits | (916 | ) | (983 | ) | (1,108 | ) | |||||
State income taxes | 1,117 | 23 | 1,094 | ||||||||
Settlement with taxing authorities | — | (9,106 | ) | — | |||||||
NMTC | 243 | (754 | ) | (4,806 | ) | ||||||
Other | 1,404 | (175 | ) | (123 | ) | ||||||
Total taxes | $ | 77,704 | $ | 67,116 | $ | 79,575 | |||||
Effective Rate | 36.8 | % | 30.3 | % | 33.1 | % |
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS, EXCEPT PERCENTAGES) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Income (loss) before tax | $ | 145,159 | $ | (46,935 | ) | $ | (492 | ) | $ | 211,373 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
Tax expense (benefit) at federal statutory rate | $ | 50,806 | $ | (16,427 | ) | $ | (172 | ) | $ | 73,981 | |||||
Increase (decrease) | |||||||||||||||
Plant differences, including AFUDC flowthrough | 743 | (881 | ) | 823 | 1,875 | ||||||||||
Amortization of investment tax credits | (662 | ) | (371 | ) | (124 | ) | (916 | ) | |||||||
State income taxes | 4,254 | (4,725 | ) | (3,078 | ) | 1,117 | |||||||||
Nondeductible merger costs | 2 | (844 | ) | 4,282 | — | ||||||||||
Return to accrual adjustment | (608 | ) | (2,943 | ) | — | — | |||||||||
2017 tax reform | (46,291 | ) | — | — | — | ||||||||||
NMTC | 313 | (181 | ) | (158 | ) | 243 | |||||||||
Other | (1,478 | ) | 3,550 | 1,895 | 1,404 | ||||||||||
Total tax expense (benefit) | $ | 7,079 | $ | (22,822 | ) | $ | 3,468 | $ | 77,704 | ||||||
Effective rate | 4.9 | % | 48.6 | % | (704.9 | )% | 36.8 | % |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Current federal income tax expense | $ | 1,284 | $ | 11,082 | $ | 15,672 | |||||
Deferred federal income tax expense | 76,219 | 71,061 | 65,237 | ||||||||
Amortization of accumulated deferred investment tax credits | (916 | ) | (983 | ) | (1,108 | ) | |||||
Total federal income tax expense | $ | 76,587 | $ | 81,160 | $ | 79,801 | |||||
Current state income tax expense (benefit) | 3,233 | (6,580 | ) | (978 | ) | ||||||
Deferred state income tax (benefit) expense | (2,116 | ) | (7,464 | ) | 752 | ||||||
Total state income tax expense (benefit) | $ | 1,117 | $ | (14,044 | ) | $ | (226 | ) | |||
Total federal and state income tax expense | $ | 77,704 | $ | 67,116 | $ | 79,575 | |||||
Items charged or credited directly to shareholders’ equity | |||||||||||
Federal deferred | 3,274 | (3,656 | ) | 3,497 | |||||||
State deferred | 528 | (590 | ) | 565 | |||||||
Total tax expense (benefit) from items charged directly to shareholders’ equity | $ | 3,802 | $ | (4,246 | ) | $ | 4,062 | ||||
Total federal and state income tax expense | $ | 81,506 | $ | 62,870 | $ | 83,637 |
SUCCESSOR | PREDECESSOR | ||||||||||||||
(THOUSANDS) | FOR THE YEAR ENDED DEC. 31, 2017 | APR. 13, 2016 - DEC. 31, 2016 | JAN. 1, 2016 - APR. 12, 2016 | FOR THE YEAR ENDED DEC. 31, 2015 | |||||||||||
Current federal income tax expense (benefit) | $ | 46,520 | $ | (1,062 | ) | $ | 1,373 | $ | 1,284 | ||||||
Deferred federal income tax (benefit) expense | (47,329 | ) | (16,715 | ) | 5,297 | 76,219 | |||||||||
Amortization of accumulated deferred investment tax credits | (662 | ) | (371 | ) | (124 | ) | (916 | ) | |||||||
Total federal income tax expense (benefit) | $ | (1,471 | ) | $ | (18,148 | ) | $ | 6,546 | $ | 76,587 | |||||
Current state income tax expense (benefit) | 3,187 | (337 | ) | — | 3,233 | ||||||||||
Deferred state income tax expense (benefit) | 5,363 | (4,337 | ) | (3,078 | ) | (2,116 | ) | ||||||||
Total state income tax expense (benefit) | $ | 8,550 | $ | (4,674 | ) | $ | (3,078 | ) | $ | 1,117 | |||||
Total federal and state income tax expense (benefit) | $ | 7,079 | $ | (22,822 | ) | $ | 3,468 | $ | 77,704 | ||||||
Items charged or credited directly to member’s/shareholders’ equity | |||||||||||||||
Federal deferred | (659 | ) | 14,593 | (277 | ) | 3,274 | |||||||||
State deferred | 207 | 2,441 | (45 | ) | 528 | ||||||||||
Total tax (benefit) expense from items charged directly to member’s/shareholders’ equity | $ | (452 | ) | $ | 17,034 | $ | (322 | ) | $ | 3,802 | |||||
Total federal and state income tax expense (benefit) | $ | 6,627 | $ | (5,788 | ) | $ | 3,146 | $ | 81,506 |
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Depreciation and property basis differences | $ | (596,824 | ) | $ | (943,552 | ) | |
Net operating loss carryforward | 12,873 | 54,727 | |||||
NMTC | 96,917 | 89,411 | |||||
Fuel costs | (3,283 | ) | (8,802 | ) | |||
Other comprehensive income | (490 | ) | 3,399 | ||||
Regulated operations regulatory liability, net | (54,471 | ) | (91,734 | ) | |||
Postretirement benefits other than pension | 23,642 | 22,733 | |||||
Merger fair value adjustments | (58,251 | ) | (124,254 | ) | |||
Other | (34,925 | ) | (34,983 | ) | |||
Accumulated deferred federal and state income taxes, net | $ | (614,812 | ) | $ | (1,033,055 | ) |
AT DEC. 31, | |||||||
(THOUSANDS) | 2015 | 2014 | |||||
Depreciation and property basis differences | $ | (948,597 | ) | $ | (892,725 | ) | |
Net operating loss carryforward | 12,092 | 56,315 | |||||
NMTC | 87,544 | 84,504 | |||||
Fuel costs | (7,833 | ) | (11,686 | ) | |||
Other comprehensive income | 15,774 | 19,576 | |||||
Regulated operations regulatory liability, net | (90,122 | ) | (90,135 | ) | |||
Postretirement benefits other than pension | 11,561 | 812 | |||||
Other | (5,522 | ) | (8,734 | ) | |||
Accumulated deferred federal and state income taxes | $ | (925,103 | ) | $ | (842,073 | ) |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||
(THOUSANDS, EXCEPT FOR %) | 2015 | 2014 | 2013 | |||||||||||||||||||
(THOUSANDS, EXCEPT PERCENTAGES) | 2017 | 2016 | 2015 | |||||||||||||||||||
Income before tax | $ | 220,644 | $ | 231,290 | $ | 229,791 | $ | 218,069 | $ | 57,497 | $ | 220,644 | ||||||||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||
Tax at federal statutory rate | $ | 77,225 | $ | 80,952 | $ | 80,427 | ||||||||||||||||
Increase (decrease): | ||||||||||||||||||||||
Tax expense at federal statutory rate | $ | 76,324 | $ | 20,124 | $ | 77,225 | ||||||||||||||||
Increase (decrease) | ||||||||||||||||||||||
Plant differences, including AFUDC flowthrough | 1,875 | 462 | 427 | 743 | (58 | ) | 1,875 | |||||||||||||||
Amortization of investment tax credits | (916 | ) | (983 | ) | (1,108 | ) | (662 | ) | (494 | ) | (916 | ) | ||||||||||
State income taxes | 1,501 | 351 | 730 | 8,156 | (2,573 | ) | 1,501 | |||||||||||||||
Settlement with taxing authorities | — | (2,320 | ) | — | ||||||||||||||||||
Return to accrual adjustment | (284 | ) | (2,646 | ) | — | |||||||||||||||||
2017 tax reform | (14,292 | ) | — | — | ||||||||||||||||||
Other | (391 | ) | (1,488 | ) | (1,095 | ) | (2,654 | ) | 4,016 | (391 | ) | |||||||||||
Total taxes | $ | 79,294 | $ | 76,974 | $ | 79,381 | $ | 67,331 | $ | 18,369 | $ | 79,294 | ||||||||||
Effective Rate | 35.9 | % | 33.3 | % | 34.5 | % | ||||||||||||||||
Effective rate | 30.9 | % | 31.9 | % | 35.9 | % |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||||||||
Current federal income tax expense (benefit) | $ | 33,138 | $ | (197 | ) | $ | (33 | ) | $ | 87,433 | $ | (1,211 | ) | $ | 33,138 | |||||||
Deferred federal income tax expense | 45,572 | 83,676 | 81,188 | |||||||||||||||||||
Deferred federal income tax (benefit) expense | (29,190 | ) | 22,647 | 45,572 | ||||||||||||||||||
Amortization of accumulated deferred investment tax credits | (916 | ) | (983 | ) | (1,108 | ) | (662 | ) | (494 | ) | (916 | ) | ||||||||||
Total federal income tax expense | $ | 77,794 | $ | 82,496 | $ | 80,047 | $ | 57,581 | $ | 20,942 | $ | 77,794 | ||||||||||
Current state income tax expense (benefit) | 3,397 | (4,161 | ) | (1,012 | ) | 14,751 | (418 | ) | 3,397 | |||||||||||||
Deferred state income tax (benefit) expense | (1,897 | ) | (1,361 | ) | 346 | |||||||||||||||||
Deferred state income tax benefit | (5,001 | ) | (2,155 | ) | (1,897 | ) | ||||||||||||||||
Total state income tax expense (benefit) | $ | 1,500 | $ | (5,522 | ) | $ | (666 | ) | $ | 9,750 | $ | (2,573 | ) | $ | 1,500 | |||||||
Total federal and state income taxes | $ | 79,294 | $ | 76,974 | $ | 79,381 | $ | 67,331 | $ | 18,369 | $ | 79,294 | ||||||||||
Items charged or credited directly to members’ equity | ||||||||||||||||||||||
Federal deferred | 106 | (1,137 | ) | 2,824 | (2,573 | ) | 1,976 | 106 | ||||||||||||||
State deferred | 17 | (184 | ) | 456 | 240 | 319 | 17 | |||||||||||||||
Total tax expense (benefit) from items charged directly to member’s equity | $ | 123 | $ | (1,321 | ) | $ | 3,280 | |||||||||||||||
Total tax (benefit) expense from items charged directly to member’s equity | $ | (2,333 | ) | $ | 2,295 | $ | 123 | |||||||||||||||
Total federal and state income tax expense | $ | 79,417 | $ | 75,653 | $ | 82,661 | $ | 64,998 | $ | 20,664 | $ | 79,417 |
CLECO | ||
CLECO POWER |
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Depreciation and property basis differences | $ | (944,675 | ) | $ | (890,030 | ) | $ | (597,838 | ) | $ | (941,166 | ) | ||
Net operating loss carryforward | 18 | 12,323 | 470 | (362 | ) | |||||||||
Fuel costs | (7,833 | ) | (11,686 | ) | (3,282 | ) | (8,802 | ) | ||||||
Other comprehensive income | 9,878 | 10,002 | 5,250 | 8,021 | ||||||||||
Regulated operations regulatory liability, net | (90,122 | ) | (90,135 | ) | (54,471 | ) | (91,734 | ) | ||||||
Postretirement benefits other than pension | (3,853 | ) | (14,346 | ) | 6,266 | 1,288 | ||||||||
Other | (6,944 | ) | (10,735 | ) | (12,757 | ) | (35,837 | ) | ||||||
Accumulated deferred federal and state income taxes | $ | (1,043,531 | ) | $ | (994,607 | ) | ||||||||
Accumulated deferred federal and state income taxes, net | $ | (656,362 | ) | $ | (1,068,592 | ) |
Cleco | ||||
(THOUSANDS) | LIABILITY FOR UNRECOGNIZED TAX BENEFITS | |||
Balance, Jan. 1, 2013 | $ | 3,126 | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | 2,193 | |||
Reduction for tax positions of prior years | (248 | ) | ||
Reduction for settlement with tax authority | — | |||
Reduction for lapse of statute of limitations | — | |||
Balance, Dec. 31, 2013 | $ | 5,071 | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | — | |||
Reduction for tax positions of prior years | — | |||
Reduction for settlement with tax authority | (5,071 | ) | ||
Reduction for lapse of statute of limitations | — | |||
Balance, Dec. 31, 2014 | $ | — | ||
Reduction for tax positions of current period | — | |||
Additions for tax positions of prior years | — | |||
Reduction for tax positions of prior years | — | |||
Reduction for settlement with tax authority | — | |||
Reduction for lapse of statute of limitations | — | |||
Balance, Dec. 31, 2015 | $ | — |
Note |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
SEGMENT INFORMATION | ||||||||||||||||||||||||||||||
2015 (THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | CONSOLIDATED | ||||||||||||||||||||||||||
SUCCESSOR FOR THE YEAR ENDED DEC. 31, 2017 | ||||||||||||||||||||||||||||||
(THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | TOTAL | ||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
Electric operations | $ | 1,142,389 | $ | — | $ | — | $ | 1,142,389 | $ | 1,108,389 | $ | (10,757 | ) | $ | — | $ | 1,097,632 | |||||||||||||
Other operations | 67,109 | 2,078 | (1 | ) | 69,186 | 77,522 | 2,058 | — | 79,580 | |||||||||||||||||||||
Electric customer credits | (2,173 | ) | — | — | (2,173 | ) | (1,566 | ) | — | — | (1,566 | ) | ||||||||||||||||||
Affiliate revenue | 1,142 | 57,323 | (58,465 | ) | — | 851 | 57,168 | (58,019 | ) | — | ||||||||||||||||||||
Operating revenue, net | $ | 1,208,467 | $ | 59,401 | $ | (58,466 | ) | $ | 1,209,402 | $ | 1,185,196 | $ | 48,469 | $ | (58,019 | ) | $ | 1,175,646 | ||||||||||||
Depreciation and amortization | $ | 147,839 | $ | 1,739 | $ | 1 | $ | 149,579 | $ | 157,999 | $ | 8,439 | $ | 1 | $ | 166,439 | ||||||||||||||
Merger transaction costs | $ | — | $ | 4,592 | $ | (1 | ) | $ | 4,591 | |||||||||||||||||||||
Merger transaction and commitment costs | $ | — | $ | 287 | $ | — | $ | 287 | ||||||||||||||||||||||
Interest charges | $ | 76,560 | $ | 1,149 | $ | 282 | $ | 77,991 | $ | 69,362 | $ | 53,725 | $ | (174 | ) | $ | 122,913 | |||||||||||||
Interest income | $ | 725 | $ | (111 | ) | $ | 281 | $ | 895 | $ | 1,283 | $ | 316 | $ | (175 | ) | $ | 1,424 | ||||||||||||
Equity loss from investees, before tax | $ | — | $ | (8 | ) | $ | — | $ | (8 | ) | ||||||||||||||||||||
Federal and state income tax expense (benefit) | $ | 79,294 | $ | (1,590 | ) | $ | — | $ | 77,704 | $ | 67,331 | $ | (60,252 | ) | $ | — | $ | 7,079 | ||||||||||||
Net income | $ | 141,350 | $ | (7,681 | ) | $ | — | $ | 133,669 | |||||||||||||||||||||
Net income (loss) | $ | 150,738 | $ | (12,659 | ) | $ | 1 | $ | 138,080 | |||||||||||||||||||||
Additions to property, plant, and equipment | $ | 156,357 | $ | 462 | $ | — | $ | 156,819 | $ | 235,252 | $ | 1,680 | $ | — | $ | 236,932 | ||||||||||||||
Equity investment in investees | $ | 16,822 | $ | — | $ | — | $ | 16,822 | ||||||||||||||||||||||
Equity investment in investee | $ | 18,172 | $ | — | $ | — | $ | 18,172 | ||||||||||||||||||||||
Goodwill | $ | 1,490,797 | $ | — | $ | — | $ | 1,490,797 | ||||||||||||||||||||||
Total segment assets | $ | 4,233,337 | $ | 21,471 | $ | 68,546 | $ | 4,323,354 | $ | 5,679,538 | $ | 619,943 | $ | (21,099 | ) | $ | 6,278,382 |
SUCCESSOR APR. 13, 2016 - DEC. 31, 2016 | PREDECESSOR JAN. 1, 2016 - APR. 12, 2016 | ||||||||||||||||||||||||||||||
(THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | TOTAL | CLECO POWER | OTHER | ELIMINATIONS | TOTAL | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||
Electric operations | $ | 810,075 | $ | (7,482 | ) | $ | (1 | ) | $ | 802,592 | $ | 281,154 | $ | — | $ | — | $ | 281,154 | |||||||||||||
Other operations | 50,080 | 1,482 | — | 51,562 | 18,493 | 587 | — | 19,080 | |||||||||||||||||||||||
Electric customer credits | (1,149 | ) | — | — | (1,149 | ) | (364 | ) | — | — | (364 | ) | |||||||||||||||||||
Affiliate revenue | 621 | 35,602 | (36,223 | ) | — | 263 | 15,024 | (15,287 | ) | — | |||||||||||||||||||||
Operating revenue, net | $ | 859,627 | $ | 29,602 | $ | (36,224 | ) | $ | 853,005 | $ | 299,546 | $ | 15,611 | $ | (15,287 | ) | $ | 299,870 | |||||||||||||
Depreciation and amortization | $ | 102,444 | $ | 7,296 | $ | (1 | ) | $ | 109,739 | $ | 43,698 | $ | 377 | $ | 1 | $ | 44,076 | ||||||||||||||
Merger transaction and commitment costs | $ | 151,501 | $ | 23,195 | $ | — | $ | 174,696 | $ | — | $ | 34,928 | $ | (16 | ) | $ | 34,912 | ||||||||||||||
Interest charges | $ | 54,606 | $ | 35,246 | $ | (86 | ) | $ | 89,766 | $ | 21,840 | $ | 295 | $ | (12 | ) | $ | 22,123 | |||||||||||||
Interest income | $ | 652 | $ | 275 | $ | (87 | ) | $ | 840 | $ | 208 | $ | 69 | $ | (12 | ) | $ | 265 | |||||||||||||
Federal and state income tax expense (benefit) | $ | 5,376 | $ | (28,198 | ) | $ | — | $ | (22,822 | ) | $ | 12,993 | $ | (9,525 | ) | $ | — | $ | 3,468 | ||||||||||||
Net income (loss) | $ | 17,580 | $ | (41,692 | ) | $ | (1 | ) | $ | (24,113 | ) | $ | 21,548 | $ | (25,508 | ) | $ | — | $ | (3,960 | ) | ||||||||||
Additions to property, plant, and equipment | $ | 143,790 | $ | 654 | $ | — | $ | 144,444 | $ | 42,353 | $ | 39 | $ | — | $ | 42,392 | |||||||||||||||
Equity investment in investee | $ | 18,672 | $ | — | $ | — | $ | 18,672 | |||||||||||||||||||||||
Goodwill | $ | 1,490,797 | $ | — | $ | — | $ | 1,490,797 | |||||||||||||||||||||||
Total segment assets | $ | 5,758,245 | $ | 614,959 | $ | (30,060 | ) | $ | 6,343,144 |
CLECO | ||
CLECO POWER |
2014 (THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | CONSOLIDATED | |||||||||||
Revenue | |||||||||||||||
Electric operations | $ | 1,225,960 | $ | — | $ | — | $ | 1,225,960 | |||||||
Tolling operations | — | 5,467 | (5,467 | ) | — | ||||||||||
Other operations | 64,893 | 2,163 | (1 | ) | 67,055 | ||||||||||
Electric customer credits | (23,530 | ) | — | — | (23,530 | ) | |||||||||
Affiliate revenue | 1,326 | 56,031 | (57,357 | ) | — | ||||||||||
Operating revenue, net | $ | 1,268,649 | $ | 63,661 | $ | (62,825 | ) | $ | 1,269,485 | ||||||
Depreciation and amortization | $ | 144,026 | $ | 2,479 | $ | — | $ | 146,505 | |||||||
Merger transaction costs | $ | — | $ | 17,848 | $ | — | $ | 17,848 | |||||||
Interest charges | $ | 74,673 | $ | (1,538 | ) | $ | 471 | $ | 73,606 | ||||||
Interest income | $ | 1,707 | $ | (410 | ) | $ | 471 | $ | 1,768 | ||||||
Federal and state income tax expense (benefit) | $ | 76,974 | $ | (9,858 | ) | $ | — | $ | 67,116 | ||||||
Net income | $ | 154,316 | $ | 424 | $ | (1 | ) | $ | 154,739 | ||||||
Additions to property, plant, and equipment | $ | 206,607 | $ | 1,029 | $ | — | $ | 207,636 | |||||||
Equity investment in investees | $ | 14,532 | $ | 8 | $ | — | $ | 14,540 | |||||||
Total segment assets | $ | 4,232,942 | $ | 248,043 | $ | (112,567 | ) | $ | 4,368,418 |
2013 (THOUSANDS) | CLECO POWER | MIDSTREAM | OTHER | ELIMINATIONS | CONSOLIDATED | |||||||||||||||||||||||||||||
PREDECESSOR FOR THE YEAR ENDED DEC. 31, 2015 | ||||||||||||||||||||||||||||||||||
(THOUSANDS) | CLECO POWER | OTHER | ELIMINATIONS | TOTAL | ||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||
Electric operations | $ | 1,047,548 | $ | — | $ | — | $ | — | $ | 1,047,548 | $ | 1,142,389 | $ | — | $ | — | $ | 1,142,389 | ||||||||||||||||
Tolling operations | — | 31,670 | — | (31,670 | ) | — | ||||||||||||||||||||||||||||
Other operations | 48,909 | 2 | 2,091 | — | 51,002 | 67,109 | 2,078 | (1 | ) | 69,186 | ||||||||||||||||||||||||
Electric customer credits | (1,836 | ) | — | — | — | (1,836 | ) | (2,173 | ) | — | — | (2,173 | ) | |||||||||||||||||||||
Affiliate revenue | 1,338 | — | 55,145 | (56,483 | ) | — | 1,142 | 57,323 | (58,465 | ) | — | |||||||||||||||||||||||
Operating revenue, net | $ | 1,095,959 | $ | 31,672 | $ | 57,236 | $ | (88,153 | ) | $ | 1,096,714 | $ | 1,208,467 | $ | 59,401 | $ | (58,466 | ) | $ | 1,209,402 | ||||||||||||||
Depreciation and amortization | $ | 135,717 | $ | 6,043 | $ | 1,100 | $ | — | $ | 142,860 | $ | 147,839 | $ | 1,739 | $ | 1 | $ | 149,579 | ||||||||||||||||
Merger transaction costs | $ | — | $ | 4,592 | $ | (1 | ) | $ | 4,591 | |||||||||||||||||||||||||
Interest charges | $ | 82,677 | $ | (331 | ) | $ | 1,274 | $ | 634 | $ | 84,254 | $ | 76,560 | $ | 1,149 | $ | 282 | $ | 77,991 | |||||||||||||||
Interest income | $ | 1,100 | $ | — | $ | (628 | ) | $ | 633 | $ | 1,105 | $ | 725 | $ | (111 | ) | $ | 281 | $ | 895 | ||||||||||||||
Federal and state income tax expense (benefit) | $ | 79,381 | $ | 7,110 | $ | (6,917 | ) | $ | 1 | $ | 79,575 | $ | 79,294 | $ | (1,590 | ) | $ | — | $ | 77,704 | ||||||||||||||
Net income | $ | 150,410 | $ | 4,372 | $ | 5,903 | $ | — | $ | 160,685 | ||||||||||||||||||||||||
Net income (loss) | $ | 141,350 | $ | (7,681 | ) | $ | — | $ | 133,669 | |||||||||||||||||||||||||
Additions to property, plant, and equipment | $ | 184,684 | $ | 4,106 | $ | 3,086 | $ | — | $ | 191,876 | $ | 156,357 | $ | 462 | $ | — | $ | 156,819 | ||||||||||||||||
Equity investment in investees | $ | 14,532 | $ | — | $ | 8 | $ | — | $ | 14,540 | ||||||||||||||||||||||||
Equity investment in investee | $ | 16,822 | $ | — | $ | — | $ | 16,822 | ||||||||||||||||||||||||||
Total segment assets | $ | 3,932,717 | $ | 225,832 | $ | 87,515 | $ | (42,516 | ) | $ | 4,203,548 | $ | 4,233,337 | $ | 21,471 | $ | 68,546 | $ | 4,323,354 |
Note |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note |
AT DEC. 31, | AT DEC. 31, | |||||||||||||
INCEPTION TO DATE (THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Purchase price | $ | 12,873 | $ | 12,873 | $ | 12,873 | $ | 12,873 | ||||||
Cash contributions | 3,949 | 1,659 | 6,399 | 6,399 | ||||||||||
Dividend received | (1,100 | ) | (600 | ) | ||||||||||
Total equity investment in investee | $ | 16,822 | $ | 14,532 | $ | 18,172 | $ | 18,672 |
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Oxbow’s net assets/liabilities | $ | 33,645 | $ | 29,065 | $ | 36,345 | $ | 37,345 | ||||||
Cleco Power’s 50% equity | $ | 16,822 | $ | 14,532 | $ | 18,172 | $ | 18,672 | ||||||
Cleco Power’s maximum exposure to loss | $ | 16,822 | $ | 14,532 | $ | 18,172 | $ | 18,672 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Current assets | $ | 2,794 | $ | 2,792 | $ | 2,318 | $ | 886 | ||||||
Property, plant, and equipment, net | 23,749 | 22,457 | 25,656 | 25,864 | ||||||||||
Other assets | 7,220 | 3,847 | 10,186 | 10,971 | ||||||||||
Total assets | $ | 33,763 | $ | 29,096 | $ | 38,160 | $ | 37,721 | ||||||
Current liabilities | $ | 118 | $ | 31 | $ | 1,815 | $ | 376 | ||||||
Partners’ capital | 33,645 | 29,065 | 36,345 | 37,345 | ||||||||||
Total liabilities and partners’ capital | $ | 33,763 | $ | 29,096 | $ | 38,160 | $ | 37,721 |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||||||||
Operating revenue | $ | 3,991 | $ | 2,248 | $ | 2,558 | $ | 4,189 | $ | 5,459 | $ | 3,991 | ||||||||||
Operating expenses | 3,991 | 2,248 | 2,558 | 4,189 | 5,459 | 3,991 | ||||||||||||||||
Income before taxes | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Note |
(THOUSANDS) | CLECO CORPORATION | CLECO POWER | TOTAL | CLECO HOLDINGS | CLECO POWER | TOTAL | ||||||||||||||||
Year ending Dec. 31, | ||||||||||||||||||||||
2016 | $ | 315 | $ | 8,642 | $ | 8,957 | ||||||||||||||||
2017 | 315 | 6,358 | 6,673 | |||||||||||||||||||
2018 | 313 | 2,905 | 3,218 | $ | 413 | $ | 3,317 | $ | 3,730 | |||||||||||||
2019 | — | 2,820 | 2,820 | — | 3,111 | 3,111 | ||||||||||||||||
2020 | — | 2,819 | 2,819 | — | 2,830 | 2,830 | ||||||||||||||||
2021 | — | 1,744 | 1,744 | |||||||||||||||||||
2022 | — | 237 | 237 | |||||||||||||||||||
Thereafter | — | 5,749 | 5,749 | — | 3,104 | 3,104 | ||||||||||||||||
Total operating lease payments | $ | 943 | $ | 29,293 | $ | 30,236 | $ | 413 | $ | 14,343 | $ | 14,756 |
Note |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
YEAR ENDING DEC. 31, | (THOUSANDS) | ||||||
2016 | $ | 40,643 | |||||
2017 | 17,230 | ||||||
FUTURE PAYMENTS UNDER LONG-TERM PURCHASE OBLIGATIONS | (THOUSANDS) | ||||||
For the year ending Dec. 31, | |||||||
2018 | 14,905 | $ | 42,760 | ||||
2019 | 3,688 | 28,723 | |||||
2020 | 6,985 | ||||||
2021 | 1,889 | ||||||
2022 | 382 | ||||||
Thereafter | 1,428 | ||||||
Total long-term purchase obligations | $ | 76,466 | $ | 82,167 |
AT DEC. 31, | AT DEC. 31, | ||||||||||||||
CLASSES OF PROPERTY (THOUSANDS) | 2015 | 2014 | 2017 | 2016 | |||||||||||
Barges | $ | 11,350 | $ | 11,350 | $ | — | $ | 11,350 | |||||||
Less: accumulated amortization | 7,296 | 4,864 | — | 9,729 | |||||||||||
Net capital leases | $ | 4,054 | $ | 6,486 | $ | — | $ | 1,621 |
(THOUSANDS) | ||||
Years ending December 31, | ||||
2016 | $ | 3,735 | ||
2017 | 2,480 | |||
Total minimum lease payments | $ | 6,215 | ||
Less: executory costs | 1,554 | |||
Net minimum lease payments | $ | 4,661 | ||
Less: amount representing interest | 236 | |||
Present value of net minimum lease payments | $ | 4,425 | ||
Current liabilities | $ | 2,607 | ||
Non-current liabilities | $ | 1,818 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | ||||||||
Support Group | |||||||||||
Other operations | $ | 53,079 | $ | 50,801 | $ | 48,694 | |||||
Maintenance | $ | 1,807 | $ | 2,091 | $ | 1,263 | |||||
Taxes other than income taxes | $ | (3 | ) | $ | (9 | ) | $ | (6 | ) | ||
Other expenses | $ | 403 | $ | 339 | $ | 306 | |||||
Evangeline | |||||||||||
Purchased power expense | $ | — | $ | 5,467 | $ | 31,670 | |||||
Other expenses | $ | — | $ | — | $ | 42 | |||||
Diversified Lands | |||||||||||
Other expenses | $ | — | $ | — | $ | 3 |
FOR THE YEAR ENDED DEC. 31, | |||||||||||
(THOUSANDS) | 2017 | 2016 | 2015 | ||||||||
Support Group | |||||||||||
Other operations | $ | 48,533 | $ | 46,116 | $ | 53,079 | |||||
Maintenance | $ | 2,039 | $ | 2,255 | $ | 1,807 | |||||
Taxes other than income taxes | $ | (13 | ) | $ | 10 | $ | (3 | ) | |||
Other expense | 255 | 106 | 403 | ||||||||
Cleco Holdings | |||||||||||
Other expense | 361 | — | — |
FOR THE YEAR ENDED DEC. 31, | FOR THE YEAR ENDED DEC. 31, | |||||||||||||||||||||
(THOUSANDS) | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||||||||
Affiliate revenue | ||||||||||||||||||||||
Support Group | $ | 1,142 | $ | 1,322 | $ | 1,318 | $ | 851 | $ | 884 | $ | 1,142 | ||||||||||
Evangeline | — | 4 | 20 | |||||||||||||||||||
Total affiliate revenue | $ | 1,142 | $ | 1,326 | $ | 1,338 | $ | 851 | $ | 884 | $ | 1,142 | ||||||||||
Other income | ||||||||||||||||||||||
Cleco Corporation | $ | 3 | $ | 30 | $ | 26 | ||||||||||||||||
Support Group | — | 10 | — | |||||||||||||||||||
Evangeline | — | 9 | 68 | |||||||||||||||||||
Cleco Holdings | $ | 494 | $ | 19 | $ | 3 | ||||||||||||||||
Diversified Lands | 10 | 14 | 45 | — | — | 10 | ||||||||||||||||
Perryville | — | 5 | 10 | — | 6 | — | ||||||||||||||||
Attala | — | 5 | 8 | — | 6 | — | ||||||||||||||||
Total other income | $ | 13 | $ | 73 | $ | 157 | $ | 494 | $ | 31 | $ | 13 | ||||||||||
Total | $ | 1,155 | $ | 1,399 | $ | 1,495 | $ | 1,345 | $ | 915 | $ | 1,155 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
AT DEC. 31, | AT DEC. 31, | |||||||||||||||||||||||||||||
2015 | 2014 | 2017 | 2016 | |||||||||||||||||||||||||||
(THOUSANDS) | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ACCOUNTS RECEIVABLE | ACCOUNTS PAYABLE | ||||||||||||||||||||||
Cleco Corporation | $ | 653 | $ | 564 | $ | 22,994 | $ | 525 | ||||||||||||||||||||||
Cleco Holdings | $ | 743 | $ | 113 | $ | 3 | $ | 119 | ||||||||||||||||||||||
Support Group | 1,254 | 6,034 | 626 | 7,235 | 608 | 8,582 | 1,402 | 7,071 | ||||||||||||||||||||||
Other(1) | 1 | — | 1 | — | 4 | 2 | 1 | — | ||||||||||||||||||||||
Total | $ | 1,908 | $ | 6,598 | $ | 23,621 | $ | 7,760 | $ | 1,355 | $ | 8,697 | $ | 1,406 | $ | 7,190 | ||||||||||||||
(1) Represents Attala, Diversified Lands, and Perryville for 2015 | ||||||||||||||||||||||||||||||
(1) Represents Attala, Diversified Lands, Midstream, and Perryville for 2014 | ||||||||||||||||||||||||||||||
(1) Represents Attala and Perryville in 2017 and Attala, Diversified Lands, and Perryville in 2016. | (1) Represents Attala and Perryville in 2017 and Attala, Diversified Lands, and Perryville in 2016. |
FOR THE YEAR ENDED DEC. 31, | ||||||
(THOUSANDS) | 2015 | 2014 | ||||
Support Group | $ | 2,055 | $ | 1,638 | ||
Midstream | — | 49 | ||||
Total | $ | 2,055 | $ | 1,687 |
FOR THE YEAR ENDED DEC. 31, | ||||||
(THOUSANDS) | 2017 | 2016 | ||||
Support Group | $ | 1,812 | $ | 1,771 |
Note |
Cleco | ||||||||||||||
AT DEC. 31, | AT DEC. 31, | |||||||||||||
(THOUSANDS) | 2015 | 2014 | 2017 | 2016 | ||||||||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | 70,594 | $ | 70,594 | ||||||||||
Power supply agreements | 85,104 | 86,726 | ||||||||||||
Trade name | 5,100 | 5,100 | ||||||||||||
Gross carrying amount | $ | 177,537 | $ | 177,537 | 160,798 | 162,420 | ||||||||
Accumulated amortization | 102,574 | 86,895 | (45,948 | ) | (19,786 | ) | ||||||||
Intangible asset | $ | 74,963 | $ | 90,642 | ||||||||||
Net intangible assets subject to amortization | $ | 114,850 | $ | 142,634 |
Cleco Power | |||||||
AT DEC. 31, | |||||||
(THOUSANDS) | 2017 | 2016 | |||||
Cleco Katrina/Rita right to bill and collect storm recovery charges | $ | 177,537 | $ | 177,537 | |||
Accumulated amortization | (135,836 | ) | (119,064 | ) | |||
Net intangible assets subject to amortization | $ | 41,701 | $ | 58,473 |
YEAR ENDING DEC. 31, | (THOUSANDS) | |||
Expected amortization expense | ||||
2016 | $ | 16,864 | ||
2017 | $ | 18,009 | ||
2018 | $ | 19,312 | ||
2019 | $ | 20,778 |
Cleco | |||
EXPECTED AMORTIZATION EXPENSE | (THOUSANDS) | ||
For the year ending Dec. 31, | |||
2018 | $ | 29,247 | |
2019 | $ | 32,324 | |
2020 | $ | 9,935 | |
2021 | $ | 9,935 | |
2022 | $ | 9,935 | |
Thereafter | $ | 23,474 |
Cleco Power | |||
EXPECTED AMORTIZATION EXPENSE | (THOUSANDS) | ||
For the year ending Dec. 31, | |||
2018 | $ | 19,312 | |
2019 | $ | 22,389 |
CLECO | ||
2017 FORM 10-K |
Note 18 — Accumulated Other Comprehensive Loss |
Cleco | ||||||||||||||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET (LOSS) GAIN ON CASH FLOW HEDGES | TOTAL AOCI | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET (LOSS) GAIN ON CASH FLOW HEDGES | TOTAL AOCI | ||||||||||||||||
Balances, Dec. 31, 2012 | $ | (24,741 | ) | $ | (7,629 | ) | $ | (32,370 | ) | |||||||||||||
Other comprehensive income before reclassifications: | ||||||||||||||||||||||
PREDECESSOR | ||||||||||||||||||||||
Balances, Dec. 31, 2014 | $ | (26,726 | ) | $ | (5,939 | ) | $ | (32,665 | ) | |||||||||||||
Other comprehensive income before reclassifications | ||||||||||||||||||||||
Postretirement benefit adjustments incurred during the year | 2,857 | — | 2,857 | 2,790 | — | 2,790 | ||||||||||||||||
Net derivative gain | — | 1,355 | 1,355 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||||
Amortization of postretirement benefit net loss | 2,159 | — | 2,159 | |||||||||||||||||||
Reclassification of net loss to interest charges | — | 154 | 154 | |||||||||||||||||||
Reclassification of ineffectiveness to regulatory asset | — | (31 | ) | (31 | ) | |||||||||||||||||
Net current-period other comprehensive income | 5,016 | 1,478 | 6,494 | |||||||||||||||||||
Balances, Dec. 31, 2013 | $ | (19,725 | ) | $ | (6,151 | ) | $ | (25,876 | ) | |||||||||||||
Other comprehensive loss before reclassifications: | ||||||||||||||||||||||
Postretirement benefit adjustments incurred during the year | (9,022 | ) | — | (9,022 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||||
Amortization of postretirement benefit net loss | 2,021 | — | 2,021 | |||||||||||||||||||
Reclassification of net loss to interest charges | — | 212 | 212 | |||||||||||||||||||
Net current-period other comprehensive (loss) income | (7,001 | ) | 212 | (6,789 | ) | |||||||||||||||||
Balances, Dec. 31, 2014 | $ | (26,726 | ) | $ | (5,939 | ) | $ | (32,665 | ) | |||||||||||||
Other comprehensive income before reclassifications: | ||||||||||||||||||||||
Postretirement benefit adjustments incurred during the year | 2,790 | — | 2,790 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||
Amortization of postretirement benefit net loss | 3,079 | — | 3,079 | 3,079 | — | 3,079 | ||||||||||||||||
Reclassification of net loss to interest charges | — | 211 | 211 | — | 211 | 211 | ||||||||||||||||
Net current-period other comprehensive income | 5,869 | 211 | 6,080 | 5,869 | 211 | 6,080 | ||||||||||||||||
Balances, Dec. 31, 2015 | $ | (20,857 | ) | $ | (5,728 | ) | $ | (26,585 | ) | $ | (20,857 | ) | $ | (5,728 | ) | $ | (26,585 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||
Amortization of postretirement benefit net loss | 587 | — | 587 | |||||||||||||||||||
Reclassification of net loss to interest charges | — | 60 | 60 | |||||||||||||||||||
Net current-period other comprehensive income | 587 | 60 | 647 | |||||||||||||||||||
Balances, Apr. 12, 2016 | $ | (20,270 | ) | $ | (5,668 | ) | $ | (25,938 | ) | |||||||||||||
SUCCESSOR(1) | ||||||||||||||||||||||
Balances, Apr. 13, 2016 | $ | — | $ | — | $ | — | ||||||||||||||||
Other comprehensive income before reclassifications | ||||||||||||||||||||||
Postretirement benefit adjustments incurred during the year | 2,304 | — | 2,304 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||||
Amortization of postretirement benefit net gain | (804 | ) | — | (804 | ) | |||||||||||||||||
Net current-period other comprehensive income | 1,500 | — | 1,500 | |||||||||||||||||||
Balances, Dec. 31, 2016 | $ | 1,500 | $ | — | $ | 1,500 | ||||||||||||||||
Other comprehensive income before reclassifications | ||||||||||||||||||||||
Postretirement benefit adjustments incurred during the year | (3,898 | ) | — | (3,898 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||||
Amortization of postretirement benefit net gain | (523 | ) | — | (523 | ) | |||||||||||||||||
Net current-period other comprehensive loss | (4,421 | ) | — | (4,421 | ) | |||||||||||||||||
Balances, Dec. 31, 2017 | $ | (2,921 | ) | $ | — | $ | (2,921 | ) | ||||||||||||||
(1)As a result of the Merger, AOCI was reduced to zero on April 13, 2016, as required by acquisition accounting. | (1)As a result of the Merger, AOCI was reduced to zero on April 13, 2016, as required by acquisition accounting. |
CLECO | ||
CLECO POWER |
Cleco Power | |||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET (LOSS) GAIN ON CASH FLOW HEDGES | TOTAL AOCI | ||||||||
Balances, Dec. 31, 2012 | $ | (12,792 | ) | $ | (7,629 | ) | $ | (20,421 | ) | ||
Other comprehensive income before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | 2,796 | — | 2,796 | ||||||||
Net derivative gain | — | 1,355 | 1,355 | ||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 970 | — | 970 | ||||||||
Reclassification of net loss to interest charges | — | 154 | 154 | ||||||||
Reclassification of ineffectiveness to regulatory asset | — | (31 | ) | (31 | ) | ||||||
Net current-period other comprehensive income | 3,766 | 1,478 | 5,244 | ||||||||
Balances, Dec. 31, 2013 | $ | (9,026 | ) | $ | (6,151 | ) | $ | (15,177 | ) | ||
Other comprehensive loss before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | (3,344 | ) | — | (3,344 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 1,021 | — | 1,021 | ||||||||
Reclassification of net loss to interest charges | — | 212 | 212 | ||||||||
Net current-period other comprehensive (loss) income | (2,323 | ) | 212 | (2,111 | ) | ||||||
Balances, Dec. 31, 2014 | $ | (11,349 | ) | $ | (5,939 | ) | $ | (17,288 | ) | ||
Other comprehensive income before reclassifications: | |||||||||||
Postretirement benefit adjustments incurred during the year | (1,232 | ) | — | (1,232 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||
Amortization of postretirement benefit net loss | 1,217 | — | 1,217 | ||||||||
Reclassification of net loss to interest charges | — | 211 | 211 | ||||||||
Net current-period other comprehensive income | (15 | ) | 211 | 196 | |||||||
Balances, Dec. 31, 2015 | $ | (11,364 | ) | $ | (5,728 | ) | $ | (17,092 | ) |
Cleco Power | |||||||||||
(THOUSANDS) | POSTRETIREMENT BENEFIT NET (LOSS) GAIN | NET (LOSS) GAIN ON CASH FLOW HEDGES | TOTAL AOCI | ||||||||
Balances, Dec. 31, 2014 | $ | (11,349 | ) | $ | (5,939 | ) | $ | (17,288 | ) | ||
Other comprehensive loss before reclassifications | |||||||||||
Postretirement benefit adjustments incurred during the year | (1,232 | ) | — | (1,232 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Amortization of postretirement benefit net loss | 1,217 | — | 1,217 | ||||||||
Reclassification of net loss to interest charges | — | 211 | 211 | ||||||||
Net current-period other comprehensive (loss) income | (15 | ) | 211 | 196 | |||||||
Balances, Dec. 31, 2015 | $ | (11,364 | ) | $ | (5,728 | ) | $ | (17,092 | ) | ||
Other comprehensive loss before reclassifications | |||||||||||
Postretirement benefit adjustments incurred during the year | 3,913 | — | 3,913 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Amortization of postretirement benefit net gain | (454 | ) | — | (454 | ) | ||||||
Reclassification of net loss to interest charges | — | 211 | 211 | ||||||||
Net current-period other comprehensive income | 3,459 | 211 | 3,670 | ||||||||
Balances, Dec. 31, 2016 | $ | (7,905 | ) | $ | (5,517 | ) | $ | (13,422 | ) | ||
Other comprehensive loss before reclassifications | |||||||||||
Postretirement benefit adjustments incurred during the year | (948 | ) | — | (948 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||
Amortization of postretirement benefit net loss | 476 | — | 476 | ||||||||
Reclassification of net loss to interest charges | — | 211 | 211 | ||||||||
Net current-period other comprehensive (loss) income | (472 | ) | 211 | (261 | ) | ||||||
Balances, Dec. 31, 2017 | $ | (8,377 | ) | $ | (5,306 | ) | $ | (13,683 | ) |
Note 19 — Miscellaneous Financial Information (Unaudited) |
2015 | |||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AMOUNTS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 295,457 | $ | 289,074 | $ | 345,468 | $ | 279,403 | |||||||
Operating income | $ | 62,722 | $ | 69,884 | $ | 102,572 | $ | 52,162 | |||||||
Net income applicable to common stock | $ | 26,922 | $ | 30,234 | $ | 54,663 | $ | 21,850 | |||||||
Basic earnings per average common share outstanding | $ | 0.45 | $ | 0.50 | $ | 0.90 | $ | 0.36 | |||||||
Diluted earnings per average common share outstanding | $ | 0.44 | $ | 0.50 | $ | 0.90 | $ | 0.36 | |||||||
Dividends on common stock | $ | 0.40 | $ | 0.40 | $ | 0.40 | $ | 0.40 | |||||||
Market sales price per share | |||||||||||||||
High | $ | 55.24 | $ | 54.88 | $ | 54.76 | $ | 53.75 | |||||||
Low | $ | 53.69 | $ | 53.59 | $ | 53.02 | $ | 48.47 |
2014 | |||||||||||||||
(THOUSANDS, EXCEPT PER SHARE AMOUNTS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 284,387 | $ | 309,070 | $ | 371,386 | $ | 304,643 | |||||||
Operating income | $ | 57,338 | $ | 66,721 | $ | 107,242 | $ | 54,729 | |||||||
Net income applicable to common stock | $ | 25,924 | $ | 36,633 | $ | 70,835 | $ | 21,347 | |||||||
Basic earnings per average common share outstanding | $ | 0.43 | $ | 0.61 | $ | 1.17 | $ | 0.35 | |||||||
Diluted earnings per average common share outstanding | $ | 0.43 | $ | 0.60 | $ | 1.17 | $ | 0.35 | |||||||
Dividends on common stock | $ | 0.3625 | $ | 0.40 | $ | 0.40 | $ | 0.40 | |||||||
Market sales price per share | |||||||||||||||
High | $ | 50.99 | $ | 59.13 | $ | 59.21 | $ | 55.36 | |||||||
Low | $ | 45.52 | $ | 49.32 | $ | 48.06 | $ | 46.11 |
2017 | |||||||||||||||
SUCCESSOR | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 250,501 | $ | 308,661 | $ | 338,499 | $ | 277,985 | |||||||
Operating income | $ | 38,798 | $ | 70,249 | $ | 95,112 | $ | 50,130 | |||||||
Net income | $ | 6,292 | $ | 25,444 | $ | 45,304 | $ | 61,040 | |||||||
Distributions to member | $ | 28,955 | $ | 26,700 | $ | 28,300 | $ | 110 |
2016 | |||||||||||||||||||
PREDECESSOR | SUCCESSOR | ||||||||||||||||||
1ST QUARTER | 2ND QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||||||
(THOUSANDS) | APR. 1 - APR. 12 | APR. 13 - JUNE 30 | |||||||||||||||||
Operating revenue, net | $ | 266,968 | $ | 32,903 | $ | 243,502 | $ | 342,860 | $ | 266,642 | |||||||||
Operating income (loss) | $ | 50,192 | $ | (29,832 | ) | $ | (110,148 | ) | $ | 93,143 | $ | 53,299 | |||||||
Net income (loss) | $ | 19,368 | $ | (23,328 | ) | $ | (81,914 | ) | $ | 39,621 | $ | 18,180 | |||||||
Contribution from member | $ | — | $ | — | $ | 100,720 | $ | — | $ | — | |||||||||
Distributions to member | $ | — | $ | — | $ | 28,000 | $ | 28,000 | $ | 32,765 |
2017 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 253,702 | $ | 310,787 | $ | 340,614 | $ | 280,093 | |||||||
Operating income | $ | 44,700 | $ | 74,533 | $ | 99,493 | $ | 58,907 | |||||||
Net income | $ | 17,854 | $ | 35,733 | $ | 54,852 | $ | 42,299 | |||||||
Distributions to parent | $ | 35,000 | $ | 25,000 | $ | 15,000 | $ | 60,000 |
2015 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 295,271 | $ | 288,885 | $ | 345,189 | $ | 279,122 | |||||||
Operating income | $ | 65,670 | $ | 70,243 | $ | 103,966 | $ | 54,321 | |||||||
Net income | $ | 28,605 | $ | 31,813 | $ | 58,661 | $ | 22,270 | |||||||
Distribution to Cleco Corporation (as sole member) | $ | 25,000 | $ | 35,000 | $ | 40,000 | $ | 35,000 |
2016 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 266,682 | $ | 278,343 | $ | 345,131 | $ | 269,017 | |||||||
Operating income (loss) | $ | 52,265 | $ | (81,841 | ) | $ | 99,420 | $ | 59,156 | ||||||
Net income (loss) | $ | 20,879 | $ | (61,229 | ) | $ | 52,572 | $ | 26,906 | ||||||
Contribution from parent | $ | — | $ | 50,000 | $ | — | $ | — | |||||||
Distributions to parent | $ | 25,000 | $ | 10,000 | $ | 50,000 | $ | 25,000 |
2014 | |||||||||||||||
(THOUSANDS) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Operating revenue, net | $ | 284,180 | $ | 308,859 | $ | 371,178 | $ | 304,432 | |||||||
Operating income | $ | 58,188 | $ | 67,032 | $ | 108,303 | $ | 66,189 | |||||||
Net income | $ | 26,307 | $ | 32,658 | $ | 65,544 | $ | 29,806 | |||||||
Contributions from Cleco Corporation | $ | 138,080 | $ | — | $ | — | $ | — | |||||||
Distribution to Cleco Corporation (as sole member) | $ | 35,000 | $ | 35,000 | $ | 15,000 | $ | 30,000 |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Note 20 — |
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. CONTROLS AND PROCEDURES |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 9B. OTHER INFORMATION |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
PART III |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE OF THE REGISTRANTS |
CLECO | ||
CLECO POWER |
CLECO | ||
CLECO POWER |
NAME OF EXECUTIVE | POSITION AND FIVE-YEAR EMPLOYMENT HISTORY |
Cleco Cleco Power Cleco Power | |
December 2016; Senior Vice President - | |
Interim Chief Executive Officer from February 2017 to December 2017. (Age | |
Cleco Holdings Cleco Power | Chief Financial Officer since April 2016; Controller and Chief Accounting Officer from November 2011 to April 2016; Assistant Controller from August 2006 to November 2011. (Age 63; 17 years of service) |
Julia E. Callis Cleco Holdings Cleco Power | Chief Compliance Officer and General Counsel since April 2016; Associate General Counsel and Corporate Secretary from November 2011 to April 2016; Senior (Age |
Anthony L. Bunting Cleco Cleco Power | Chief Administrative Officer since April 2016; Vice President - Transmission & Distribution Operations (Age |
Jeffrey M. Baudier Cleco Holdings Cleco Power | Chief Marketing & Development Officer since July 2016; Partner - Phelps Dunbar LLP from January 2013 to June 2016; President & Chief Executive Officer - Petra Nova LLC of NRG Energy from January 2011 to December 2012. (Age 49; 1 year of service) |
F. Tonita Laprarie Cleco Holdings Cleco Power | Controller & Chief Accounting Officer since July 2016; General Manager Audit & Risk from March 2014 to July 2016; Manager Accounting Services from December 2007 to March 2014. (Age 53; 17 years of service) |
Robert R. LaBorde, Jr. Cleco Cleco | Vice President April 2016; Vice President - Strategic Planning, Development and Environmental Policy from November 2011 to November 2012; General Manager - Environmental Services from August 2006 to November 2011. Vice President - Generation Operations from November 2012 to April 2016. (Age |
Cleco Cleco Power | (Age |
Cleco Cleco Power | (Age |
Gregory A. Coco Cleco Holdings Cleco Power | Vice President Transmission & Distribution Operations since April 2016; General Manager Brame Energy Center from March 2013 to April 2016; General Manager Generation Engineering & Construction from March 2012 to March 2013; General Manager Transmission Services from October 2002 to March 2012. (Age 58; 36 years of service) |
Joel M. Prevost Cleco Holdings Cleco Power | Vice President Asset Management since April 2016; General Manager T&D Engineering & Construction from March 2012 to April 2016; General Manager Power Plant Engineering & Construction from June 2004 to March 2012. (Age 57; 36 years of service) |
CLECO | ||
CLECO POWER |
NAME OF EXECUTIVE | POSITION AND FIVE-YEAR EMPLOYMENT HISTORY |
J. Robert Cleghorn Cleco Holdings Cleco Power | Vice President Regulatory Strategy since April 2016; General Manager Regulatory Strategy & Planning from March 2012 to April 2016; General Manager Regulatory Strategy from June 2005 to March 2012. (Age 59; 30 years of service) |
Justin S. Hilton Cleco Holdings Cleco Power | Vice President MISO Operations since April 2016; General Manager Transmission Strategy from March 2012 to April 2016; General Manager Retail Operations from November 2004 to March 2012. (Age 48; 28 years of service) |
Shirley J. Turner Cleco Holdings Cleco Power | Vice President Customer Experience since April 2016; General Manager Customer Experience Management from March 2012 to April 2016; Manager Customer Services from January 2005 to March 2012. (Age 64; 42 years of service) |
Eric A. Schouest Cleco Holdings Cleco Power | Vice President - Marketing South since August 2016; General Manager Governmental Affairs/Regulatory Sales from February 2013 to August 2016; General Manager Eastern District from November 2004 to February 2013. (Age 52; 16 years of service) |
Marty A. Smith Cleco Holdings Cleco Power | Vice President - Marketing North since January 2017; General Manager Corporate Safety from April 2016 to January 2017; General Manager Distribution Engineering & Real Estate from February 2013 to April 2016; General Manager Northern District from March 2012 to February 2013; General Manager Central District from January 2009 to March 2012. (Age 56; 26 years of service) |
Marcus A. Augustine Cleco Holdings Cleco Power | Corporate Secretary & Senior Attorney since April 2016; Senior Attorney from January 2015 to April 2016; Attorney from September 2012 to January 2015; Associate - Sidley Austin LLP from January 2011 to September 2012. (Age 37; 5 years of service) |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
ITEM 11. EXECUTIVE COMPENSATION |
◦ | Provided mutual assistance to other utilities following three storms and earned the 2017 EEI Emergency Assistance Award for hurricanes Harvey and Irma |
◦ | Effectively restored power following nine storms with |
◦ | Completed the sale of the Perryville and Attala assets |
◦ | Substantially completed the $12.0 million radio system project to replace an obsolete system |
◦ | Received MISO approval for SSR designation of Teche 3 and received related payments of approximately $8.5 million, net of expenses |
Description | |
Base Salary | • Fixed pay element • Delivered in cash |
Annual Cash Incentive | • Performance-based annual incentive plan that pays out in cash • • Additional metrics include safety, system reliability, |
Retention Bonus | • Performance-based annual incentive plan that pays out in cash in the two years following the close of the Merger • |
Long-Term Incentives | • • Payout |
Benefits | • Broad-based benefits such as group medical, dental, vision, and prescription drug coverage; basic life insurance; supplemental life insurance; dependent life insurance; accidental death and dismemberment insurance; a defined benefit pension plan (for those employees hired prior to August 1, 2007); and a 401(k) |
Executive Benefits | • Supplemental Executive Retirement Plan (closed to new participants in 2014) • Nonqualified Deferred Compensation Plan |
Perquisites | • Limited to executive physicals, spousal/companion travel, and relocation assistance |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Name | 2015 Base Salary | 2015 % Change | |||
Mr. Williamson | $ | 745,000 | 0 | % | |
Mr. Miller | $ | 309,000 | 3.0 | % | |
Mr. Olagues | $ | 401,700 | 3.0 | % | |
Ms. Miller | $ | 298,700 | 3.0 | % | |
Mr. Hoefling | $ | 298,700 | 3.0 | % | |
Average % Change | 2.4 | % |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
2017 Peer Group Companies | ||
ALLETE, Inc. | IDACORP, Inc. | PNM Resources, Inc. |
Avista Corporation | MGE Energy Inc. | Portland General Electric Company |
Black Hills Corporation | NorthWestern Corporation | Westar Energy, Inc. |
El Paso Electric Company | OGE Energy Corp. | |
Great Plains Energy Incorporated | Otter Tail Corporation |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Name | 2017 Base Salary | 2017 % Change | |||
Mr. Fontenot | $ | 375,000 | 29.3 | % | |
Ms. Taylor | $ | 250,000 | 8.7 | % | |
Ms. Callis | $ | 255,000 | 8.5 | % | |
Mr. Bunting | $ | 238,050 | 3.5 | % | |
Mr. LaBorde | $ | 230,000 | 3.6 | % | |
Mr. Olagues | $ | 550,000 | 0.0 | % | |
Ms. Scott | $ | 270,000 | N/A | ||
Average % Change | 8.9 | % |
Name | Target as % of Base Salary |
Mr. Fontenot | 50% |
Ms. Taylor | 50% |
Ms. Callis | 50% |
Mr. Bunting | 50% |
Mr. LaBorde | 50% |
Mr. Olagues | 80% |
Ms. Scott | 0% |
EBITDA MATRIX (40%) | ||
Performance Level | % of Financial Target Award Paid | |
At or below $426.7 million | 0 | % |
$461.3 million | 100 | % |
At or above $495.9 million | 200 | % |
2017 Result - $460.7 million | 102.6 | % |
CLECO | ||
CLECO POWER | 2017 FORM 10-K | |
SAFETY - TRIR MATRIX (5%) | |
Performance Level | % of TRIR Target Award Paid |
At or below 0.419 | 0% |
0.574 - 0.420 | 50% |
0.730 - 0.575 | 100% |
0.885 - 0.731 | 150% |
Above 0.885 | 200% |
2017 Result (0.603) | 100% |
SAFETY - DART MATRIX (5%) | |
Performance Level | % of DART Target Award Paid |
Below 0.146 | 0% |
0.226 - 0.1446 | 50% |
Performance Level | Fully DilutedEarnings Per Share * | % of Financial Target Award Paid | ||||
<$ | 2.155 | 0 | % | |||
Threshold | $ | 2.155 | 50 | % | ||
Target | $ | 2.330 | 100 | % | ||
Maximum | $ | 2.563 | 200 | % | ||
2015 Result | $ | 2.29 | 90 | % |
150% | ||
Above 0.385 | 200% | |
2017 Result (0.259) | 100% | |
CUSTOMER SATISFACTION MATRIX (10%) | |
Performance Level | % of Customer Satisfaction Target Award Paid |
Below 658 | 0% |
658 - 707 | 50% |
683 - 707 | 100% |
708 - 732 | 150% |
Above 732 | 200% |
2017 Result (719) | 150% |
SAIDI MATRIX (10%) | |
Performance Level | % of SAIDI Target Award Paid |
Above 2.73 | 0% |
2.73 to 2.58 | 50% |
2.57 to 2.42 | 100% |
2.41 to 2.27 | 150% |
Below 2.27 | 200% |
2017 Result (2.22) | 200% |
EFORd MATRIX (10%) | |
Performance Level | % of EFORd Target Award Paid |
Above 6.0% | 0% |
6.00% - 5.69% | 50% | |
5.68% - 5.37% | 100% | |
5.36% - 5.06% | 150% | |
Below 5.06% | 200% | |
2017 Result (5.27%) | 150% | |
Performance Level | % Generation Fleet Availability | % of EAF Target Award Paid | |
<81.83% | 0% | ||
Threshold | 81.83% to 83.93% | 50% | |
Target | 83.94% to 86.06% | 100% | |
86.07% to 88.22% | 150% | ||
Maximum | >88.22% | 200% | |
2015 Result | 85.41 | % | 100% |
% of Target | x | Award Level | = | % of Payout | |||||
EBITDA | 60 | % | 102.6 | % | 61.6 | % | |||
Safety | 10 | % | 100 | % | 10.0 | % | |||
Customer Satisfaction | 10 | % | 150 | % | 15.0 | % | |||
SAIDI | 10 | % | 200 | % | 20.0 | % | |||
EFORd | 10 | % | 150 | % | 15.0 | % | |||
Total | 100 | % | 121.6 | % | |||||
Committee Discretion | 28.4 | % | |||||||
Resulting Total Payout | 150.0 | % |
% of Target | x | Award Level | = | % of Payout | ||||
EPS | 70% | 90 | % | 63.0 | % | |||
SAIDI | 5% | 0 | % | 0 | % | |||
EAF | 5% | 100 | % | 5.0 | % | |||
Safety-Personal Injuries | 5% | 50 | % | 2.5 | % | |||
Safety-Vehicle Accidents | 5% | 0 | % | 0 | % | |||
Quality Performance Factor | 10% | 150 | % | 15.0 | % | |||
Total | 100% | 85.5 | % |
MILESTONE MEASURES (20%) | |
% of Milestone Target Award Paid | |
2017 Result | 100% |
CLECO | ||
CLECO POWER | 2017 FORM 10-K |
Name | Target as % |
Retirement Plans - Nonqualified Deferred Compensation Plan The Company maintains a Deferred Compensation Plan so that members of the Boards, executive officers, and certain key employees may defer receipt and taxation of certain forms of compensation. Members of the Boards may defer up to 100% of their compensation; executive officers and other key employees may defer up to 50% of their base salary and up to 100% of their annual cash incentive. The use of deferred compensation plans is prevalent within our industry and within the companies in the Peer Group. The Company does not match deferrals or contribute to the plan. Actual participation in the plan is voluntary. The notional investment options made available to participants are selected by the CFO. The allocation of deferrals among investment options is made by individual participants. The notional investment options include money market, fixed income, and equity funds. No changes were made to the plan during 2017. Retirement Plans - SERP The Company maintains a SERP for the benefit of the executive officers who are designated as participants by the Committee. SERP was designed to attract and retain executive officers who have contributed and will continue to contribute to our overall success by ensuring that adequate compensation will be provided or replaced during retirement. Benefits under SERP vest after ten years of service or upon death or disability while a participant is employed by the Company. The Committee may reduce the vesting period, which typically would occur in association with recruiting efforts. Benefits, whether or not vested, are forfeited in the event a participant is terminated for cause. Generally, benefits are based upon a participant’s attained age at the time of separation from service. The maximum benefit is payable at age 65 and is 65% of final compensation. Payments from the Company’s defined benefit pension plan (Pension Plan), certain employer contributions to the 401(k) Plan and payments paid or payable from prior and subsequent employers’ defined benefit retirement or similar supplemental plans reduce or offset SERP benefits. If a participant has not attained age 55 at the time of separation and receives SERP benefits before attaining age 65, SERP benefits are actuarially reduced to reflect early payment. The “Pension Benefits” table lists the present value of accumulated SERP benefits for the named executive officers as of December 31, 2017. In 2011, the Committee amended SERP to eliminate the business transaction benefit previously included in SERP, as well as the requirement that a SERP participant be a party to an employment agreement to receive change in control benefits. In July 2014, the Cleco Corporation Board of Directors voted to close SERP to new participants. With regard to current SERP participants, two participants have agreed to fix the base compensation portion of their SERP calculation as of December 31, 2017. Additionally, they have agreed to use target rather than actual awards under the annual incentive plan for years 2016 and 2017 for the average incentive award portion of the SERP calculation. A third participant’s SERP benefit will be set at a specified amount based upon the year of separation. In the event a SERP participant’s employment is involuntarily terminated by the Company without cause, or the participant terminates his or her employment on account of good reason, occurring within the 36-month period following the Merger for all participants who commenced participation in SERP prior to October 28, 2011, or the 24-month period following the Merger for all participants who commenced participation in SERP on or after October 28, 2011, such participant’s benefit shall: (i) become fully vested; (ii) be increased by adding three years to an affected participant’s age, subject to a minimum benefit of 50% of final compensation; and (iii) be subject to a modified reduction determined by increasing the executive’s age by three years.
Change in Employment Status and Change in Control Events During The Cleco Corporation Executive Severance Plan In recognition of the non-renewal of executive employment contracts, the
Executive Severance Plan provides Perquisites and Other Benefits Executive officer physicals Spousal/companion travel Relocation program Purchase program See the section titled “All Other Compensation” for details of these perquisites and their value for Board Compensation The Governance and Public Affairs Committee may engage the Committee’s independent consultant from time to time to conduct market competitive reviews of the Board compensation program. Details of the Boards’ compensation are shown in the “Board of Manager Compensation” table. Other Tools and Analyses to Support Compensation Decisions Tally Sheets At least annually, Annual compensation expense for each named executive Reportable compensation Post-employment payments Trends and Regulatory Updates As needed, and generally at least annually, Risk Assessment the design of incentive payments are dependent on the range and sensitivity of potential payouts relative to target performance are reasonable; detailed processes establish
incentive targets are designed to be challenging, yet achievable, to mitigate the potential for excessive risk-taking behaviors. IRC Section 409A IRC Section 409A generally was effective as of January 1, 2005. The section substantially modified the rules governing the taxation of nonqualified deferred compensation. The consequences of a violation of IRC Section 409A, unless corrected, are the immediate taxation of amounts deferred, the imposition of an excise tax and the assessment of interest on the amount of the income inclusion, each of which is imposed upon the recipient of the compensation. IRC Section 162(m) IRC Section 162(m) limits to $1,000,000 the amount Cleco may deduct in a tax year for compensation paid to the CEO and each of the three other most highly compensated executive officers (other than the CFO). The Committee took actions considered appropriate to preserve the deductibility of compensation paid to executive officers, but the Committee did not adopt a formal policy that required all compensation to be fully deductible. As a result, the Committee may have paid or awarded compensation that it deemed necessary or appropriate to achieve our business goals and to align the interests of our executives with those of Cleco’s investors, whether or not the compensation was performance-based within the meaning of IRC Section 162(m) or otherwise fully deductible. Executive Officers’ Compensation Summary Compensation Table
General The Summary Compensation Table sets forth individual compensation information for the CEO, the CFO, and the three other most highly compensated executive officers of Cleco and its affiliates for services rendered in all capacities to Cleco and its affiliates during the fiscal years ended December 31, the Merger. Compensation components represent both payments made to the named Column C, “Salary;” Column D, “Bonus;” Column G, “Non-Equity Incentive Plan Compensation;” and Column I, “All Other Compensation” represent cash compensation earned by the named executive in Awards shown in Column E, “Stock Awards” and Column F, “Option Awards” represent non-cash compensation items
which may or may not result in an actual award being received by the named executive, depending on the nature and timing of the grant and until certain performance objectives are achieved. The amounts shown in Column H, “Change in Pension Value and Nonqualified Deferred Compensation Earnings,” represent changes in the actuarial value of accrued benefits during Salary Data in Column C includes pay for time worked, as well as pay for time not worked, such as vacation, sick leave, jury duty, bereavement, and holidays. The salary level of each of the named executives is determined by a review of market data for companies comparable in size and scope to Cleco, as discussed under “Decisions Made in Bonus Column D, “Bonus” includes non-plan-based, discretionary incentives earned during Stock Awards Column E reflects grants and awards of Cleco Corporation common stock made to The dollar value of the LTIP grants in Column E is based on the grant date fair value as required by
Option Awards Column F, “Option Awards” reflects the grant date fair value for grants made to executive officers in Non-Equity Incentive Plan Compensation Column G, “Non-Equity Incentive Plan Compensation” contains cash awards earned during 2017 that will be paid in March 2018 under the STIP; earned during 2016 and paid in March 2017 under the Pay for Performance Plan (PFP); and earned during 2015 and paid in December 2015 and/or March Change in Pension Value and Nonqualified Deferred Compensation Earnings The values in Column H represent the aggregate increase in the actuarial present value of benefits earned by each named executive officer during executive. Changes in the present value of the Pension Plan and Column H also would include any above-market or preferential earnings on deferred compensation paid by the Company. There were no such preferential earnings paid by the Company in
All Other Compensation Payments made to or on behalf of our named executive officers in Column I, “All Other Compensation,” include the following: Contributions by Cleco under the 401(k) Term life insurance premiums paid for the benefit of the named executive officers; Spousal travel; For and December 31, For 2017, for Mr. Olagues, cash payout of vacation and floating holiday balances upon termination, cash severance payments and COBRA premium reimbursements; and Federal Insurance Contributions Act (“FICA”) tax due currently and paid by the Company on the annual increase in the named executive officers’ future SERP benefits. The value of the Column I items for
Grants of Plan-Based Awards
(1) Includes target awards for the Retention Bonus Plan. (2) Under the terms of his separation agreement, Mr. Olagues was not eligible for payouts under the STIP or future payouts under the LTIP. (3) Under the terms of her agreement to serve as Interim CEO - Cleco Corporate Holdings, Ms. Scott was not eligible to participate in the Company’s incentive plans. General The target values for each of Estimated Future Payments under Non-Equity Incentive Plan Awards (STIP) See “Decisions Made in 2017 with Regard to Each Compensation and Benefit Component — Annual Cash Incentive” in the CD&A for a discussion of our 2017 STIP award calculations. Estimated Future Payments under Non-Equity Incentive Plan Awards See “Decisions Made in
Pension Benefits
(1) Mr. (2)
General The Company provides executive officers who meet certain tenure requirements benefits from the Pension Plan and Vesting in The present value of each of the named The sum of the change in actuarial value of the Pension Plan during Pension Plan The Cleco Benefits under the Pension Plan are determined by years of service, age at retirement, and deferrals to the Deferred Compensation Plan, and any other form of payment taxable under IRC Section 3401(a). Earnings exclude reimbursement of expenses, gifts, severance pay, moving expenses, outplacement assistance, relocation allowances, welfare benefits, benefits accrued (other than salary and bonus deferrals) or paid pursuant to the Deferred Compensation Plan, the value of benefits accrued or paid (including dividends) under the LTIP, income from the exercise of stock options and income from disqualifying stock dispositions. For The formula for calculating the defined benefit under the Pension Plan is as follows: 1. Defined Benefit = Annual Benefit + Supplement Benefit 2. Annual Benefit = Final Average Earnings × Years of Service × Pension Factor 3. Supplement Benefit = (Final Average Earnings - Social Security Covered Compensation) × Years of Service × .0065 The pension factor varies with the retirement year. For Benefits from the Pension Plan are generally paid at normal, late or early retirement dates and are subject to a limit
prescribed by the IRS, generally SERP contains a supplemental death benefit that was added in 1999 to reflect market practice. If a SERP participant dies while actively employed, the amount of the supplemental death benefit is equal to the sum of two times the participant’s annual base salary as of the date of death and the participant’s target bonus payable under the In July 2014, Estimated Annual Payments The following table shows the estimated annual payments at age 55 (or actual attained age if greater than 55) to each of the named executives under the Pension Plan and
(1) Nonqualified Deferred Compensation
(1) The amounts in Column B represent deferrals of salary and non-equity incentive compensation payments made to the named executive officers during (2)The aggregate earnings shown in Column D are not included in the Summary Compensation Table. Negative returns are reflected as zero. (3)The aggregate balances shown in Column F include amounts reported as salary and non-equity incentive compensation payments in the Summary Compensation Table for the current fiscal year, as well as previous years and the earnings on those amounts. Deferred Compensation Columns C and G in the Summary Compensation Table. Consequently, the executive officer contributions listed in Column B above are made by the participant and not by Cleco.
elections for 2017 were made prior to the beginning of by the regulations under IRC Section 409A. There are no matching contributions made by the Company. Deferrals become general funds for use by the Company to be repaid to the participant at a pre-specified date. Short-term deferrals may be paid out as early as five years following the end of the plan year (i.e., the year in which compensation was earned). Retirement deferrals are paid at the later of termination of service or the attainment of an age specified by the participant. A bookkeeping account is maintained for each participant that records deferred salary and/or bonus, as well as earnings on deferred amounts. Earnings are determined by the performance of notional investment alternatives, which are similar to the investments available under the 401(k) Plan. Participants select which of these alternatives will be used to determine the earnings on their own accounts. The Deferred Compensation Plan is not intended to provide for the payment of above-market or preferential earnings (as these terms are defined under the SEC regulations) on compensation deferred under the plan. As such, the Deferred Compensation Plan does not provide a guaranteed rate of return. Potential Payments at Termination or Change in Control The following tables At its October 2011 meeting, The following narrative describes the type and form of payments and benefits for each separation event. The tables under “Potential Payments at Termination or Change in Control” provide an estimate of potential payments and benefits to each Termination by the Executive If an executive officer resigns voluntarily, no payments are made or benefits provided other than those required by law. Disability Annual disability benefits are payable when a total and permanent disability occurs and are paid until the executive officer’s normal retirement age, which is age 65. This benefit is provided under 65, a disabled executive is eligible to receive annual retirement benefits under the Pension Plan, for those who are participants, and Death A prorated share of the current year’s Annual survivor benefits are payable to an executive officer’s surviving spouse for his/her life, or if there is no surviving spouse, to the executive officer’s designated beneficiary for a period of ten years or, if no designated beneficiary is named, to the executive officer’s estate for a period of ten years. Amounts are calculated under the provisions of Retirement In the event of early or normal retirement, the executive officer is eligible to receive a prorated share of the current year’s Constructive Termination Payments made and benefits provided upon a constructive termination are ordinarily greater than payments made on account of an executive officer’s retirement, death or disability because separation effectively is initiated by the Company. Certain payments are made contingent upon the execution of a waiver, release and covenants agreement in favor of the Company. Constructive termination also may be initiated by an executive officer if there has been (i) a material reduction in Under the terms of the Executive Severance Plan, an executive would receive constructive termination payments including up to 52 weeks of base compensation, up to $50,000 in lieu of outplacement services and reimbursement of premiums paid to maintain coverage under our medical plan for up to 18 months. The executive also would be eligible for a
prorated portion of the current year’s payout under the If the executive officer has vested retirement benefits and has attained eligible retirement age, he/she would receive retirement benefits as described under “Pension Benefits.” Termination for Cause “Cause” is defined as an executive’s (i) intentional act of fraud, embezzlement or theft in the course of employment or other intentional misconduct that is materially injurious to the Company’s financial condition or business reputation; (ii) intentional damage to Company property, including the wrongful disclosure of its confidential information; (iii) willful and intentional refusal to perform the essential duties of his/her position; (iv) failure to fully cooperate with government or independent agency investigations; (v) conviction of a felony or crime involving moral turpitude; (vi) willful, reckless, or payments, other than those required by law, are made or benefits provided Change in Control The term “Change in Control” is defined in the LTIP. One or more of the following triggering events constitute a Change in Control: Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company or an Affiliate or any “person” who on the effective date of this Plan is a director, officer, or The Company The Company sells, leases, or otherwise disposes of, in one transaction or in a series of related transactions, all or substantially all of its assets; The All or substantially all of the assets or the issued and outstanding membership interests of Cleco Power Except as described below, payments are made and benefits provided only if an executive’s employment is terminated during the 60-day period preceding or the 24-month period following the Change in Termination must be involuntary and by the Company without cause or initiated by the executive on account of “Good Reason.” Participant’s base compensation in effect immediately before the commencement of a Change in Control Period is materially reduced, or there is a Under the Executive Severance Plan, an executive would receive an amount up to two times the sum of annualized base salary and the average non-equity incentive plan bonus over the last three fiscal years and reimbursement of COBRA premiums for up to 24 months. Payments may also include the purchase of the executive officer’s primary residence and reimbursement of relocation expenses, but only if the executive relocates his/her primary residence more than 100 miles. No excise tax payments or gross-ups are made; instead, benefits will be reduced to avoid the imposition of the tax. The numbers shown below do not give effect to this reduction. Subject to the If an executive officer is vested and of eligible retirement age, he or she may become eligible to begin to receive the annual retirement benefit described above upon a Change in Control. The following tables set forth the value of post-employment payments and benefits that are not generally
made available to all employees. Each separation event is assumed to occur on December 31, of the expense to the Company to sell the named executive officer’s principal residence including any loss avoided by the named executive officer by having the right to sell the residence to the Company, plus the projected cost to the Company to relocate the named executive officer. Pursuant to Item 401(j) of Regulation S-K, the separation events disclosed in this Form 10-K are assumed to occur in the past, as of December 31,
(1) As of December 31, 2017, Mr. Fontenot was not eligible for retirement. (2) As of December 31, 2017, Mr. Fontenot was vested in SERP payments, which would be forfeited upon termination for cause.
(1) As of December 31, 2017, Ms. Taylor was vested in SERP payments, which would be forfeited upon termination for cause.
(1) As of December 31, 2017, Ms. Callis was not eligible for retirement. (2) As of December 31, 2017, Ms. Callis was vested in SERP payments, which would be forfeited upon termination for cause.
(1) As of December 31, 2017, Mr. Bunting was vested in SERP payments, which would be forfeited upon termination for cause.
(1) As of December 31, 2017, Mr. BOARD OF MANAGERS COMPENSATION 2017 Board of Managers Compensation
(1) Mr. Olagues was also a named executive officer until his resignation on February 9, 2017, and his compensation is included in the General Column B, “Fees Earned or Paid in Cash and/or A non-management Fees Earned or Paid in Cash and/or Stock Cleco reimburses
were incurred during 2017. Cleco also provides its Interests of the Board of In The Leadership Development and Compensation Committee of the The Leadership Development and Compensation Committee Based on the review and discussions referred to above, the Leadership Development and Compensation Committee recommended to
The Leadership Development and Compensation Committee of the Compensation Committee Interlocks and Insider Participation The members of the Leadership Development and Compensation Committee are set forth above. There are no matters relating to interlocks or insider participation of the Leadership Development and Compensation Committee members that Cleco is required to report.
Security Ownership of Directors and Management and CertainBeneficial Owners
Equity Compensation Plan Information Cleco has no compensation plans under which equity securities
Director Independence and Related Party Transactions (member of Cleco has no relationships to report under Item
Deloitte & Touche LLP (Deloitte) served as the principal accountant from January 1, 2016, until May 12, 2016. On July 22, 2016, Cleco engaged PricewaterhouseCoopers LLP (PwC) as its principal accountant. Aggregate fees for professional services rendered
The Audit fees include professional fees rendered by PwC for financial statement audits and reviews under statutory or regulatory requirements and services that generally only the The Audit related fees consist of assurance and related services that are traditionally performed by the auditor such as accounting assistance and due diligence in connection with proposed acquisitions or sales, consulting concerning financial accounting and reporting standards and audits of stand-alone financial statements or other assurance services not required by statue or regulation. The Tax fees consist of professional services rendered by PwC for The accounting research software license. All Other fees for Audit Committee Pre-Approval Policies and Procedures The Audit Committee has established a policy requiring its pre-approval of all audit and non-audit services provided by the independent registered public accounting firm. The policy requires the general pre-approval of annual audit services and specific pre-approval of all other permitted services. In determining whether to pre-approve permitted services, the Audit Committee considers whether such services are consistent with SEC rules and regulations. Furthermore, requests for pre-approval for services that are eligible for general pre-approval must be detailed as to the services to be provided. The independent registered public accounting firm and management are required to periodically report to the Audit Committee regarding the extent of services provided by the independent registered public accounting firm in accordance with this pre-approval and the fees for the services performed to date. For the fiscal years ended December 31,
The Exhibits designated by an asterisk are filed herewith, except for Exhibits 32.1, 32.2, 32.3, 32.4, which are furnished herewith (and not filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section). The Exhibits not so designated previously have been filed with the SEC and are incorporated herein by reference. The Exhibits designated by two asterisks are management contracts and compensatory plans and arrangements required to be filed as Exhibits to this Report.
None.
The condensed financial statements represent the financial information required by SEC Regulation S-X 5-04 for Cleco Cleco The accompanying financial statements have been prepared to present the results of operations, financial condition, and cash flows of Cleco
On For more information regarding the Merger see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note
At December 31, 2017, and At December 31, 2017, Cleco Holding’s long-term debt outstanding was $1.34 billion, of In May 2016, Cleco Holdings completed the private sale of $535.0 million aggregate principal amount of its 3.743% senior notes due May 1, 2026, and $350.0 million aggregate principal amount of its 4.973% senior notes due May 1, 2046. On April 28, 2017, Cleco Holdings completed an exchange offer for all of its then outstanding 3.743% and 4.973% senior notes, which were not registered under the Securities Act of 1933, as amended, for an equal principal amount of newly issued 3.743% senior notes due May 1, 2026, and 4.973% senior notes due May 1, 2046, that were so registered. Cleco Holdings did not receive any proceeds from the exchange offer. The principal amounts payable under long-term debt agreements for each year through 2022 and thereafter are as follows:
Some provisions in Cleco Power’s debt instruments restrict the amount of equity available for distribution to Cleco Holdings by Cleco Power by requiring Cleco Power’s total indebtedness to be less than or equal to 65% of total capitalization. In addition, the Merger Commitments provide for limitations on the amount of distributions that may be paid from Cleco Power to Cleco Holdings, depending on Cleco Power’s common equity ratio and its corporate credit ratings. The following table summarizes the cash distributions Cleco Holdings received from affiliates during 2017, 2016, and 2015:
During the successor year ended December 31, 2017, Cleco Holdings made no contributions to affiliates. During the successor period April 13, 2016, through December 31, 2016, Cleco Holdings made a contribution of $50.0 million to Cleco Power. During the predecessor period January 1, 2016, through April 12, 2016, and the predecessor year ended December 31, 2015, Cleco Holdings made no contributions to affiliates. During the successor year ended December 31, 2017, Cleco Holdings received no equity contributions from Cleco Group and made $84.1 million of distribution payments to Cleco Group. During the successor period April 13, 2016, through December 31, 2016, Cleco Holdings received $100.7 million of equity contributions from Cleco Group and made $88.8 million of distribution payments to Cleco Group.
Cleco Holdings’ (Parent Company Only) Condensed Statements of Income reflect income tax expense (benefit) for the following line items:
For information regarding the TCJA, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 10 — Income Taxes — 2017 Tax Reform.”
For information regarding commitments and contingencies related to Cleco Holdings, see Part II, Item 8, “Financial Statements and Supplementary Data — Notes to the Financial Statements — Note 15 — Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees.”
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
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