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Intangible Assets and Goodwill
 9 Months Ended
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
Note 16 — Intangible Assets and Goodwill

Securitized Intangible Assets
On June 22, 2022, Cleco Securitization I acquired the Storm Recovery Property from Cleco Power for a purchase price of $415.9 million. On March 12, 2025, Cleco Securitization II acquired the Energy Transition Property from Cleco Power for a purchase price of $301.9 million. The Storm Recovery Property and Energy Transition Property are both classified as securitized intangible assets on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. These securitized intangible assets are being amortized ratably each period consistent with actual collections of the asset’s portion of the revenue requirement billed to Cleco Power’s customers. At the end of their lives, these securitized intangible assets will have no residual value. Amortization expense is included in Depreciation and amortization on Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income.
The following table presents the amortization expense recognized during the three and nine months ended September 30, 2025, and 2024:

 
FOR THE THREE MONTHS ENDED SEPT. 30,
FOR THE NINE MONTHS
 ENDED SEPT. 30,
(THOUSANDS)2025202420252024
Amortization expense
Storm Recovery Property$4,312 $4,176 $10,732 $10,523 
Energy Transition Property
$3,274 $— $6,539 $— 
The following table summarizes the balance of the securitized intangible assets subject to amortization included on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets:

(THOUSANDS)AT SEPT. 30, 2025AT DEC. 31, 2024
Storm Recovery Property
$415,593 $415,946 
Energy Transition Property
299,338 — 
Total securitized intangible assets carrying value
714,931 415,946 
Accumulated amortization(48,309)(31,038)
Net securitized intangible assets subject to amortization
$666,622 $384,908 

Other Intangible Assets
As a result of the 2016 Merger, fair value adjustments were recorded on Cleco’s Condensed Consolidated Balance Sheet for the valuation of finite intangible assets relating to long-term wholesale power supply agreements. At the end of their lives, these power supply agreement intangible assets will have no residual value. At September 30, 2025, Cleco had one remaining power supply agreement intangible asset being amortized over the estimated life of its contract of 19 years, and the amortization expense is recorded in Electric operations on Cleco’s Condensed Consolidated Statements of Income.
The following table presents the amortization expense recognized during the three and nine months ended September 30, 2025, and 2024:

 
FOR THE THREE MONTHS ENDED SEPT. 30,
FOR THE NINE MONTHS
 ENDED SEPT. 30,
(THOUSANDS)2025202420252024
Amortization expense
Power supply agreements
$186 $186 $558 $2,695 

The following table summarizes the balance of other intangible assets subject to amortization included in Cleco’s Condensed Consolidated Balance Sheets:

Cleco
(THOUSANDS)AT SEPT. 30, 2025AT DEC. 31, 2024
Power supply agreements$14,238 $14,238 
Accumulated amortization(7,045)(6,487)
Net other intangible assets subject to amortization
$7,193 $7,751 

Goodwill
On April 13, 2016, in connection with the completion of the 2016 Merger, Cleco recognized goodwill of $1.49 billion Management assigned the recognized goodwill to the Cleco Power reporting unit. Goodwill is required to be tested for impairment at the reporting unit level on an annual basis or whenever events or circumstances indicate that the value of goodwill may be impaired.
In performing the impairment test, Cleco compares the fair value of the reporting unit to its carrying value including goodwill. If the carrying value including goodwill were to exceed the fair value of a reporting unit, an impairment loss would be recognized. A goodwill impairment loss is measured as the amount by which a reporting unit’s carrying value exceeds fair value, not to exceed the carrying amount of goodwill.
Cleco estimates the reporting unit’s fair value using a weighted combination of the income approach, which estimates fair value based on discounted cash flows, and the market approach, which estimates fair value based on market comparables within the utility and energy industries. The income approach cash flow valuations involve a number of estimates that require broad assumptions and significant judgment by management regarding future performance, including estimation of future cash flows related to capital expenditures, the weighted average cost of capital or discount rate and the assumed long-term growth rate approach, which incorporates management's assumptions regarding sustainable long-term growth. The market approach includes significant assumptions around the implied market multiples for certain peer companies. Management selects comparable peers based on each peer’s primary business mix, operations, and market capitalization compared to the applicable reporting unit and calculates implied market multiples based on available projected earnings guidance and peer company market values as of the test date.
Cleco performs an annual impairment test each August. In between annual tests, Cleco monitors its estimates and assumptions regarding estimated future cash flows, including the impact of movements in market indicators in future quarters, and will update the impairment analyses if a triggering event occurs. While Cleco believes the assumptions are reasonable, actual results may differ from projections. To the extent cash flows, long-term growth rates, U.S. Treasury rates, or other factors outside of Cleco’s control may impact Cleco’s projected results, Cleco may be required to reduce all or a portion of the carrying value of goodwill.
Cleco conducted its 2025 annual impairment test using an August 1, 2025, measurement date and determined that the estimated fair value of the Cleco Power reporting unit exceeded its carrying value, and no impairment existed.