Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Effective Income Tax Rate Reconciliation

Cleco

For the years ended December 31, 2011, and 2009, income tax expense was lower than the amount computed by applying the statutory federal rate to income before tax. For the year ended December 31, 2010, income tax expense was higher than the amount computed by applying the statutory federal rate to income before tax. The differences are as follows.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS, EXCEPT FOR %)	2011			2010			2009
Income before tax	$	298,745		$	397,889		$	115,886
Statutory rate	35.0		%	35.0		%	35.0		%
Tax at federal statutory rate	$	104,561		$	139,261		$	40,560
Increase (decrease):
Plant differences, including AFUDC flowthrough	(1,758		)	(7,757		)	(30,212		)
Amortization of investment tax credits	(1,238		)	(1,285		)	(1,332		)
State tax expense	2,155			11,897			4,763
Audit settlement	10,782			—			—
Other	(11,605		)	382			(4,200		)
Total taxes	$	102,897		$	142,498		$	9,579
Effective Rate	34.4		%	35.8		%	8.3		%

Current and Deferred Income Tax Expense

Information about current and deferred income tax expense is as follows.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011			2010			2009
Current federal income tax expense	$	77,659		$	75,337		$	16,080
Deferred federal income tax expense (benefit)	26,577			56,047			(9,880		)
Amortization of accumulated deferred investment tax credits	(1,238		)	(1,285		)	(1,332		)
Total federal income tax expense	$	102,998		$	130,099		$	4,868
Current state income tax expense	2,857			13,572			814
Deferred state income tax (benefit) expense	(2,958		)	(1,173		)	3,897
Total state income tax (benefit) expense	$	(101	)	$	12,399		$	4,711
Total federal and state income tax expense	$	102,897		$	142,498		$	9,579
Items charged or credited directly to shareholders’ equity
Federal deferred	(8,908		)	2,210			(1,200		)
State deferred	(1,439		)	357			(194		)
Total tax benefit from items charged directly to shareholders’ equity	$	(10,347	)	$	2,567		$	(1,394	)
Total federal and state income tax expense	$	92,550		$	145,065		$	8,185

Deferred Tax Assets and Liabilities

The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2011, and 2010 was comprised of the following.

	AT DECEMBER 31,
(THOUSANDS)	2011			2010
Depreciation and property basis differences	$	(594,135	)	$	(527,014	)
Net operating loss	18,542			—
Fuel costs	(6,135		)	(6,500		)
Mark-to-market	—			1,845
Deferred carrying charges	11,327			26,567
SERP – other comprehensive income	16,621			6,274
Regulated operations regulatory liability	(83,965		)	(75,080		)
Postretirement benefits other than pension	(9,486		)	9,902
New markets tax credit	36,398			16,667
Other	(9,844		)	(1,766		)
Accumulated deferred federal and state income taxes	$	(620,677	)	$	(549,105	)

Uncertain Tax Positions, Interest Payable and Interest Expense

The total amounts of uncertain tax positions and related interest payable and interest expense, as reflected on Cleco Corporation and Cleco Power’s Consolidated Balance Sheets and Statements of Income, are shown in the following tables:

	AT DECEMBER 31,
(THOUSANDS)	2011		2010
Interest payable
Cleco Corporation	$	13,843	$	41,018
Cleco Power	$	17,327	$	15,211

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011			2010			2009
Interest charges
Cleco Corporation	$	(25,795	)	$	3,930		$	8,239
Cleco Power	$	3,495		$	(5,448	)	$	3,336

Liability for Unrecognized Tax Benefits

The total liability for unrecognized tax benefits for Cleco and Cleco Power at December 31, 2011, 2010, and 2009 is shown in the following table:

Cleco
(THOUSANDS)	LIABILITY FOR UNRECOGNIZED TAX BENEFITS
Balance at January 1, 2009	$	84,918
Reduction for tax positions of current period	(15,126		)
Additions for tax positions of prior years	59,443
Reduction for tax positions of prior years	—
Reduction for lapse of statute of limitations	—
Balance at December 31, 2009	$	129,235
Reduction for tax positions of current period	(5,738		)
Additions for tax positions of prior years	511
Reduction for tax positions of prior years	(6,146		)
Reduction for settlement with tax authority	(15,077		)
Reduction for lapse of statute of limitations	—
Balance at December 31, 2010	$	102,785
Reduction for tax positions of current period	(4,129		)
Additions for tax positions of prior years	11,031
Reduction for tax positions of prior years	(8,670		)
Reduction for settlement with tax authority	(44,782		)
Reduction for lapse of statute of limitations	—
Balance at December 31, 2011	$	56,235

Cleco Power [Member]

Effective Income Tax Rate Reconciliation

Cleco Power

Income tax expense is lower than the amount computed by applying the statutory rate to income before tax, as follows.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS, EXCEPT FOR %)	2011			2010			2009
Income before tax	$	212,244		$	222,512		$	126,463
Statutory rate	35.0		%	35.0		%	35.0		%
Tax at federal statutory rate	$	74,285		$	77,879		$	44,262
Increase (decrease):
Plant differences, including AFUDC flowthrough	(1,758		)	(7,757		)	(30,212		)
Amortization of investment tax credits	(1,238		)	(1,285		)	(1,332		)
State tax expense	(853		)	5,798			5,131
Other	(1,027		)	472			(2,552		)
Total tax expense	$	69,409		$	75,107		$	15,297
Effective Rate	32.7		%	33.8		%	12.1		%

Current and Deferred Income Tax Expense

Information about current and deferred income tax expense is as follows.

	FOR THE YEAR ENDED DECEMBER 31,
(THOUSANDS)	2011			2010			2009
Current federal income tax expense	$	23,347		$	35,132		$	11,920
Deferred federal income tax expense	47,763			40,237			912
Amortization of accumulated deferred investment tax credits	(1,238		)	(1,285		)	(1,332		)
Total federal income tax expense	$	69,872		$	74,084		$	11,500
Current state income tax expense	1,691			6,704			1,480
Deferred state income tax (benefit) expense	(2,154		)	(5,681		)	2,317
Total state income tax (benefit) expense	$	(463	)	$	1,023		$	3,797
Total federal and state income taxes	$	69,409		$	75,107		$	15,297
Items charged or credited directly to shareholders’ equity
Federal deferred	(8,580		)	2,532			(620		)
State deferred	(1,386		)	409			(100		)
Total tax benefit from items charged directly to shareholders’ equity	$	(9,966	)	$	2,941		$	(720	)
Total federal and state income tax expense	$	59,443		$	78,048		$	14,577

Deferred Tax Assets and Liabilities

The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2011, and 2010 was comprised of the following.

	AT DECEMBER 31,
(THOUSANDS)	2011			2010
Depreciation and property basis differences	$	(592,634	)	$	(551,909	)
Net operating loss	16,390			—
Fuel costs	(6,125		)	(6,490		)
Mark-to-market	—			1,628
Deferred carrying charges	11,327			26,567
SERP - other comprehensive income	11,984			2,019
Regulated operations regulatory liability	(83,965		)	(75,080		)
Postretirement benefits other than pension	(22,461		)	(2,503		)
Other	9,478			7,005
Accumulated deferred federal and state income taxes	$	(656,006	)	$	(598,763	)

Liability for Unrecognized Tax Benefits

Cleco Power
(THOUSANDS)	LIABILITY FOR UNRECOGNIZED TAX BENEFITS
Balance at January 1, 2009	$	60,536
Reduction for tax positions of current period	(11,499		)
Additions for tax positions of prior years	35,323
Reduction for tax positions of prior years	—
Reduction for lapse of statute of limitations	—
Balance at December 31, 2009	$	84,360
Reduction for tax positions of current period	(2,202		)
Additions for tax positions of prior years	3
Reduction for tax positions of prior years	(6,109		)
Reduction for settlement with tax authority	(15,077		)
Reduction for lapse of statute of limitations	—
Balance at December 31, 2010	$	60,975
Reduction for tax positions of current period	(4,018		)
Additions for tax positions of prior years	4,271
Reduction for tax positions of prior years	(8,670		)
Reduction for settlement with tax authority	—
Reduction for lapse of statute of limitations	—
Balance at December 31, 2011	$	52,558