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Pension Plan and Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]  
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans
The employee pension plan and other benefits obligation plan assets and funded status at December 31, 2011, and 2010 are presented in the following table.
 
PENSION BENEFITS
 
 
OTHER BENEFITS
 
 
(THOUSANDS)
2011

 
2010

 
2011

 
2010

 
Change in benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
330,342

 
$
295,528

 
$
41,444

 
$
39,209

 
Service cost
8,390

 
7,451

 
1,532

 
1,511

 
Interest cost
17,629

 
17,145

 
1,818

 
1,965

 
Plan participants’ contributions
—

 
—

 
1,251

 
1,176

 
Actuarial loss
19,452

 
23,540

 
141

 
1,231

 
Expenses paid
(1,208
)
 
(1,262
)
 
—

 
—

 
Medicare D
—

 
—

 
206

 
424

(1) 
Other adjustments (2)
—

 
—

 
452

 
—

 
Benefits paid
(12,619
)
 
(12,060
)
 
(4,164
)
 
(4,072
)
 
Benefit obligation at end of year
361,986

 
330,342

 
42,680

 
41,444

 
Change in plan assets
 

 
 

 
 

 
 

 
Fair value of plan assets at beginning of year
242,513

 
221,067

 
—

 
—

 
Actual return on plan assets
23,709

 
29,768

 
—

 
—

 
Employer contributions
60,000

 
5,000

 
—

 
—

 
Expenses paid
(1,208
)
 
(1,262
)
 
—

 
—

 
Benefits paid
(12,619
)
 
(12,060
)
 
—

 
—

 
Fair value of plan assets at end of year
312,395

 
242,513

 
—

 
—

 
Unfunded status
$
(49,591
)
 
$
(87,829
)
 
$
(42,680
)
 
$
(41,444
)
 
(1)Medicare D reimbursement of $0.2 million was related to the 2009 Plan year.
(2) During 2011, Cleco received $0.5 million for the Early Retiree Reinsurance Program.
Accumulated Benefit Obligation
The employee pension plan accumulated benefit obligation at December 31, 2011, and 2010 is presented in the following table.
 
PENSION BENEFITS
 
(THOUSANDS)
2011

 
2010

Accumulated benefit obligation
$
330,193

 
$
292,529
Amounts Recognized in Other Comprehensive Income
The authoritative guidelines for compensation of retirement benefits require the disclosure of the net actuarial gains/losses, transition obligations/assets, and prior period service costs included in other comprehensive income as a result of being included as a component of net periodic benefit costs. The following table presents those items for the employee pension plan and other benefits plan at December 31, 2011, and 2010.
 
PENSION BENEFITS
 
 
OTHER BENEFITS
 
(THOUSANDS)
2011

 
2010

 
2011

 
2010

Net actuarial loss (gain) occurring during year
$
20,389

 
$
14,001

 
$
141

 
$
1,231

Net actuarial loss (gain) amortized during year
$
5,556

 
$
3,156

 
$
1,011

 
$
972

Transition obligation (asset) amortized during year
$
—

 
$
—

 
$
20

 
$
20

Prior service cost (credit) amortized during year
$
(71
)
 
$
(71
)
 
$
(206
)
 
$
(2,021
)
Amounts Recognized in Accumulated Other Comprehensive Income
The authoritative guidelines also require the disclosure of the net gains/losses, transition obligations/assets, and prior period service costs/credits in accumulated other comprehensive income that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2012. The following table presents those items for the employee pension plan and other benefits plans for December 31, 2012, 2011, and 2010.

 
 

 
PENSION BENEFITS
 
 
 

 
OTHER BENEFITS
 
(THOUSANDS)
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Net actuarial loss (gain)
$
7,750

 
$
133,186

 
$
118,353

 
$
876

(1) 
$
12,620

 
$
13,491

Transition obligation (asset)
$
—

 
$
—

 
$
—

 
$
20


$
55

 
$
76

Prior service cost (credit)
$
71

 
$
(630
)
 
$
(702
)
 
$
—


$
—

 
$
(206
)
(1)Net of the estimated Medicare Part D subsidy through 2012 of $139 thousand.
Components of Net Periodic Pension and Other Benefit Costs
The components of net periodic pension and other benefits costs for 2011, 2010, and 2009 are as follows.

 
 

 
PENSION BENEFITS
 
 
 

 
OTHER BENEFITS
 
(THOUSANDS)
2011

 
2010

 
2009

 
2011

 
2010

 
2009

Components of periodic benefit costs
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
8,390

 
$
7,451

 
$
7,010

 
$
1,532

 
$
1,511

 
$
1,414

Interest cost
17,629

 
17,145

 
16,454

 
1,818

 
1,965

 
2,140

Expected return on plan assets
(24,646
)
 
(20,229
)
 
(19,464
)
 
—

 
—

 
—

Amortizations:
 

 
 

 
 

 
 

 
 

 
 

Transition obligation
—

 
—

 
—

 
20

 
20

 
20

Prior period service cost
(71
)
 
(71
)
 
(71
)
 
(206
)
 
(2,021
)
 
(2,065
)
Net loss
5,556

 
3,156

 
1,930

 
1,011

 
972

 
897

Net periodic benefit cost
$
6,858

 
$
7,452

 
$
5,859

 
$
4,175

 
$
2,447

 
$
2,406

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Assumptions Used to Determine Benefit Obligation and Net Periodic Costs
The assumptions used to determine the benefit obligation and the periodic costs are as follows.
 
PENSION BENEFITS
 
 
OTHER BENEFITS
 
 
2011

 
2010

 
2011

 
2010

Weighted-average assumptions used to determine the benefit obligation as of December 31:
 
 
 
 
 
 
 
Discount rate
5.08
%
 
5.43
%
 
4.51
%
 
4.61
%
Rate of compensation increase
3.415
%
 
4.265
%
 
N/A

 
N/A


 
 
PENSION BENEFITS
 
 
 

OTHER BENEFITS
 
 
2011

2010

2009

 
2011

2010

2009

Weighted-average assumptions used to determine the net benefit cost (income) for the year ended December 31:
 

 

 

 
 

 

 

Discount rate
5.43
%
5.91
%
6.01
%
 
4.61
%
5.29
%
6.27
%
Expected return on plan assets
7.80
%
7.80
%
7.80
%
 
N/A

N/A

N/A

Rate of compensation increase
4.119
%
4.265
%
4.447
%
 
N/A

N/A

N/A
Fair Value Allocation of Pension Plan Assets
The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis and within the scope of the authoritative guidance for fair value measurements and disclosures.
(THOUSANDS)
AT
DECEMBER 31, 2011

 
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
$
7,775

 
$
—

 
$
7,775

 
$
—

Common stock
15,242

 
—

 
15,242

 
—

Preferred stock
291

 
—

 
291

 
—

Obligations of U.S. Government and U.S. Government Agencies
28,501

 
—

 
28,501

 
—

Mutual funds
9,144

 
9,144

 
—

 
—

Common/collective trust fund
94,677

 
—

 
94,677

 
—

Real estate funds
16,349

 
—

 
—

 
16,349

Hedge fund-of-funds
2,892

 
—

 
—

 
2,892

Corporate debt
135,326

 
—

 
135,326

 
—

Total
$
310,197

 
$
9,144

 
$
281,812

 
$
19,241

Interest accrual
2,198

Total net assets
$
312,395
Pension Plan Unobservable Input Reconciliation
The following is a reconciliation of the beginning and ending balances of the pension plan’s real estate funds and hedge fund-of-funds measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2011, and 2010.
(THOUSANDS)
REAL ESTATE
FUNDS

 
HEDGE FUND
OF FUNDS

 
TOTAL

December 31, 2009
$
13,627

 
$
6,529

 
$
20,156

Realized loss
—

 
81

 
81

Unrealized (loss) gain
612

 
168

 
780

Purchases, issuances, and settlements, net
329

 
(3,507
)
 
(3,178
)
Transfer out
—

 
—

 
—

December 31, 2010
$
14,568

 
$
3,271

 
$
17,839

Realized gain
—

 
17

 
17

Unrealized gain (loss)
1,454

 
77

 
1,531

Purchases, issuances, and settlements, net
327

 
(473
)
 
(146
)
Transfer out
—

 
—

 
—

December 31, 2011
$
16,349

 
$
2,892

 
$
19,241
Investment Asset Allocation Targets
The following chart shows the resulting dynamic asset allocation based on the funded ratio at December 31, 2011:
 
PERCENT OF TOTAL PLAN ASSETS*
 
 
MINIMUM

 
TARGET

 
MAXIMUM

Return-seeking
 

 
 

 
 

Domestic equity
 
 
19
%
 
 
International equity
 
 
18
%
 
 
Real estate
 
 
8
%
 
 
Hedge fund-of-funds
 
 
2
%
 
 
Total return-seeking
42
%
 
47
%
 
52
%
Liability hedging
 
 
 
 
 
Fixed income- long government/credit
 
 
18
%
 
 
Fixed income - long credit
 
 
35
%
 
 
Total liability hedging
48
%
 
53
%
 
58
%
*Minimums and maximums within subcategories not intended to equal total for category.
Impact of Future Medicare Subsidies on Other Benefit costs
The estimated impact of future Medicare subsidies reduced the January 1, 2011, and 2010 accumulated postretirement benefit obligation by $0.4 million and $0.8 million, respectively, and reduced the other benefit costs for the years ended December 31, 2011, and 2010 as follows.
 
AT DECEMBER 31,
 
(THOUSANDS)
2011

 
2010

Components of other benefit costs:
 
 
 
(Increase) reduction in interest cost
$
(24
)
 
$
(45
)
Reduction in net loss amortization
195

 
222

Reduction in prior period service cost amortization
50

 
397

Reduction in net other benefit cost
$
221

 
$
574
Assumed Health Care Cost Trend Rates
A one-percentage point change in assumed health care cost trend rates would have the following effects on other benefits.
 
ONE-PERCENTAGE POINT
 
(THOUSANDS)
INCREASE

 
DECREASE

Effect on total of service and interest cost components
$
8

 
$
(90
)
Effect on postretirement benefit obligation
$
361

 
$
(285
)
Projected Benefit Payments and Projected Receipts
The projected benefit payments and projected receipts pursuant to Medicare Part D subsidy, the employee pension plan, and other benefits obligation plan for each year through 2016 and the next five years thereafter are listed in the following table.
(THOUSANDS)
PENSION BENEFITS

 
OTHER BENEFITS, GROSS

 
MEDICARE D, RECEIPTS

2012
$
13,867

 
$
3,075

 
$
374

2013
$
14,681

 
$
3,254

 
$
—

2014
$
15,573

 
$
3,503

 
$
—

2015
$
16,459

 
$
3,732

 
$
—

2016
$
17,446

 
$
3,940

 
$
—

Next five years
$
105,623

 
$
20,591

 
$
—
SERP Benefits [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans
The SERP’s funded status at December 31, 2011, and 2010 is presented in the following table.
 
SERP BENEFITS
 
(THOUSANDS)
2011

 
2010

Change in benefit obligation
 
 
 
Benefit obligation at beginning of year
$
42,160

 
$
37,227

Service cost
1,566

 
1,531

Interest cost
2,105

 
2,122

Actuarial loss
2,529

 
2,878

Benefits paid
(2,096
)
 
(1,598
)
Benefit obligation at end of year
$
46,264

 
$
42,160
Accumulated Benefit Obligation
The SERP’s accumulated benefit obligation at December 31, 2011, and 2010 is presented in the following table.
 
SERP BENEFITS
 
(THOUSANDS)
2011

 
2010

Accumulated benefit obligation
$
42,410

 
$
38,337
Amounts Recognized in Other Comprehensive Income
The authoritative guidelines on compensation for retirement benefits require the disclosure of the net actuarial gains/losses, transition obligations/assets, and prior period service costs included in other comprehensive income as a result of being amortized as a component of net periodic benefit costs. The following table presents those items for the SERP at December 31, 2011, and 2010.
 
SERP BENEFITS
 
(THOUSANDS)
2011

 
2010

Net actuarial loss occurring during year
$
2,529

 
$
2,878

Net actuarial loss amortized during year
$
940

 
$
925

Prior service cost amortized during year
$
54

 
$
54
Amounts Recognized in Accumulated Other Comprehensive Income
The authoritative guidelines on compensation for retirement benefits also require the disclosure of the net gains/losses, transition obligations/assets, and prior period service costs/credit in accumulated other comprehensive income that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2012. The following table presents those items for SERP for December 31, 2012, 2011, and 2010.
 
 
 
SERP BENEFITS
 
(THOUSANDS)
2012

 
2011

 
2010

Net actuarial loss
$
1,195

 
$
15,588

 
$
13,969

Prior service cost
$
54

 
$
334

 
$
387
Components of Net Periodic Pension and Other Benefit Costs
The components of the net SERP cost for 2011, 2010, and 2009 are as follows.
 
 
 
SERP BENEFITS
 
(THOUSANDS)
2011

 
2010

 
2009

Components of periodic benefit costs:
 
 
 
 
 
Service cost
$
1,566

 
$
1,531

 
$
1,608

Interest cost
2,105

 
2,122

 
2,015

Amortizations:
 

 
 

 
 

Prior period service cost
54

 
54

 
54

Net loss
940

 
925

 
777

Net periodic benefit cost
$
4,665

 
$
4,632

 
$
4,454
Weighted-Average Assumptions Used to Determine Benefit Obligation and Net Periodic Costs
The assumptions used to determine the benefit obligation and the periodic costs are as follows.
 
 
SERP
 
 
2011

 
2010

Weighted-average assumptions used to determine the benefit obligation as of December 31:
 
 
 
Discount rate
4.99
%
 
5.26
%
Rate of compensation increase
5.00
%
 
5.00
%
 
 
 
 
SERP
 
 
2011

 
2010

 
2009

Weighted-average assumptions used to determine the net benefit cost (income) for the year ended December 31:
 
 
 
 
 
Discount rate
5.26
%
 
5.78
%
 
6.15
%
Rate of compensation increase
5.00
%
 
5.00
%
 
5.00
%
Projected Benefit Payments and Projected Receipts
The projected benefit payments for the SERP for each year through 2016 and the next five years thereafter are shown in the following table.
(THOUSANDS)
2012

 
2013

 
2014

 
2015

 
2016

 
NEXT FIVE
YEARS

SERP
2,185

 
2,490

 
2,505

 
2,713

 
2,878

 
15,756
Defined Contribution Pension [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
401(k) Plan Expense
Cleco’s 401(k) Plan expense for the years ended December 31, 2011, 2010, and 2009 is as follows:
 
FOR THE YEAR ENDED DECEMBER 31,
 
(THOUSANDS)
2011

 
2010

 
2009

401(k) Plan expense
$
3,917

 
$
3,709

 
$
3,751