Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Property, Plant and Equipment

Property, plant, and equipment consisted of:

(THOUSANDS)	AT JUNE 30, 2012			AT DECEMBER 31, 2011
Regulated utility plants	$	3,792,113		$	3,759,541
Other	267,342			264,114
Total property, plant, and equipment	4,059,455			4,023,655
Accumulated depreciation	(1,273,802		)	(1,230,783		)
Net property, plant, and equipment	$	2,785,653		$	2,792,872

Restricted Cash

Cleco’s restricted cash consisted of:  

(THOUSANDS)	AT JUNE 30, 2012		AT DECEMBER 31, 2011
Diversified Lands’ mitigation escrow	$	97	$	97
Cleco Katrina/Rita’s storm recovery bonds	8,091		8,761
Cleco Power’s future storm restoration costs	25,734		24,876
Cleco Power’s renewable energy grant	—		381
Cleco Power’s NOx allowance escrow	1,713		1,713
Total restricted cash	$	35,635	$	35,828

Reclassifications

The Registrants determined that an error existed in the statement of cash flow presentation of contributions received in aid of construction, specifically the impact that the accounting for these contributions had on the presentation of cash flows related to the additions of property, plant, and equipment. This caused errors between the operating activities section and investing activities section for prior periods, including 2010, 2011, and the first quarter of 2012.

Cleco and Cleco Power’s Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Cash Flows have been adjusted for each of the reporting periods shown below to correct the presentation of cash flows related to additions to property, plant and equipment. These corrections had no impact on the Registrants’ cash and cash equivalents, financial condition, or results of operations. Management believes that these corrections did not have a material effect on the Registrants’ Consolidated Statements of Cash Flows or Condensed Consolidated Statements of Cash flows for each of the reporting periods. The correction to the Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Cash Flows for each of the reporting periods is presented in the following tables.

Cleco
							FOR THE YEAR ENDED
				2010						2011
(THOUSANDS)	AS REPORTED			AS ADJUSTED			AS REPORTED			AS ADJUSTED
Accounts receivable	$	(16,156	)	$	(12,503	)	$	(15,798	)	$	(19,146	)
Other deferred accounts	$	1,813		$	(114	)	$	(1,084	)	$	4,305
Net cash provided by operating activities	$	215,173	*	$	216,899		$	308,020		$	310,061
Additions to property, plant, and equipment	$	(305,157	)*	$	(306,883	)	$	(195,882	)	$	(197,923	)
Net cash used in investing activities	$	(306,905	)*	$	(308,631	)	$	(101,675	)	$	(103,716	)
Net increase (decrease) in cash and cash equivalents	$	45,935		$	45,935		$	(97,552	)	$	(97,552	)
Cash and cash equivalents at the beginning of the period	$	145,193		$	145,193		$	191,128		$	191,128
Cash and cash equivalents at the end of the period	$	191,128		$	191,128		$	93,576		$	93,576

	FOR THE THREE MONTHS ENDED							FOR THE SIX MONTHS ENDED						FOR THE NINE MONTHS ENDED						FOR THE THREE MONTHS ENDED
				MARCH 31, 2011							JUNE 30, 2011			SEPTEMBER 30, 2011									MARCH 31, 2012
(THOUSANDS)	AS REPORTED				AS ADJUSTED			AS REPORTED			AS ADJUSTED			AS REPORTED			AS ADJUSTED			AS REPORTED				AS ADJUSTED
Accounts receivable	$	(13,958	)		$	(17,458	)	$	(19,923	)	$	(19,685	)	$	(18,274	)	$	(21,691	)	$	6,253			$	6,408
Other deferred accounts	$	2,313			$	2,999		$	(729	)	$	2		$	(2,184	)	$	2,181		$	(5,835	)		$	(2,263	)
Net cash provided by (used in) operating activities	$	2,302	*		$	(512	)	$	147,830		$	148,799		$	262,642		$	263,590		$	41,373			$	45,100
Additions to property, plant, and equipment	$	(21,883	)*		$	(19,069	)	$	(66,081	)	$	(67,050	)	$	(145,669	)	$	(146,617	)	$	(39,380	)		$	(43,107	)
Net cash (used in) provided by investing activities	$	(19,537	)*		$	(16,723	)	$	18,249		$	17,280		$	(54,097	)	$	(55,045	)	$	(40,825	)		$	(44,552	)
Net decrease in cash and cash equivalents	$	(53,937	)		$	(53,937	)	$	(29,002	)	$	(29,002	)	$	(32,896	)	$	(32,896	)	$	(46,327	)		$	(46,327	)
Cash and cash equivalents at the beginning of the period	$	191,128			$	191,128		$	191,128		$	191,128		$	191,128		$	191,128		$	93,576			$	93,576
Cash and cash equivalents at the end of the period	$	137,191			$	137,191		$	162,126		$	162,126		$	158,232		$	158,232		$	47,249			$	47,249
*These amounts were previously revised in the Registrants’ Combined Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011.

Cleco Power
							FOR THE YEAR ENDED
				2010						2011
(THOUSANDS)	AS REPORTED			AS ADJUSTED			AS REPORTED			AS ADJUSTED
Accounts receivable	$	(16,261	)	$	(12,608	)	$	(14,858	)	$	(18,206	)
Other deferred accounts	$	(8,082	)	$	(10,009	)	$	(7,788	)	$	(2,399	)
Net cash provided by operating activities	$	170,759	*	$	172,485		$	249,717		$	251,758
Additions to property, plant, and equipment	$	(149,211	)*	$	(150,937	)	$	(182,574	)	$	(184,615	)
Net cash used in investing activities	$	(134,672	)*	$	(136,398	)	$	(170,193	)	$	(172,234	)
Net increase (decrease) in cash and cash equivalents	$	46,799		$	46,799		$	(117,454	)	$	(117,454	)
Cash and cash equivalents at the beginning of the period	$	138,113		$	138,113		$	184,912		$	184,912
Cash and cash equivalents at the end of the period	$	184,912		$	184,912		$	67,458		$	67,458

	FOR THE THREE MONTHS ENDED							FOR THE SIX MONTHS ENDED							FOR THE NINE MONTHS ENDED						FOR THE THREE MONTHS ENDED
				MARCH 31, 2011							JUNE 30, 2011				SEPTEMBER 30, 2011									MARCH 31, 2012
(THOUSANDS)	AS REPORTED				AS ADJUSTED			AS REPORTED				AS ADJUSTED			AS REPORTED			AS ADJUSTED			AS REPORTED				AS ADJUSTED
Accounts receivable	$	(10,720	)		$	(14,220	)	$	(20,779	)		$	(20,541	)	$	(20,442	)	$	(23,859	)	$	5,767			$	5,922
Other deferred accounts	$	1,379			$	(2,065	)	$	(2,230	)		$	(1,499	)	$	(6,361	)	$	(1,996	)	$	(8,747	)		$	(5,175	)
Net cash provided by operating activities	$	5,299	*		$	2,485		$	70,788			$	71,757		$	184,688		$	185,636		$	47,513			$	51,240
Additions to property, plant, and equipment	$	(20,720	)*		$	(17,906	)	$	(58,453	)		$	(59,422	)	$	(131,014	)	$	(131,962	)	$	(38,507	)		$	(42,234	)
Net cash used in investing activities	$	(8,955	)*		$	(6,141	)	$	(48,590	)		$	(49,559	)	$	(112,856	)	$	(113,804	)	$	(30,759	)		$	(34,486	)
Net decrease in cash and cash equivalents	$	(60,472	)		$	(60,472	)	$	(35,071	)		$	(35,071	)	$	(41,897	)	$	(41,897	)	$	(31,573	)		$	(31,573	)
Cash and cash equivalents at the beginning of the period	$	184,912			$	184,912		$	184,912			$	184,912		$	184,912		$	184,912		$	67,458			$	67,458
Cash and cash equivalents at the end of the period	$	124,440			$	124,440		$	149,841			$	149,841		$	143,015		$	143,015		$	35,885			$	35,885
*These amounts were previously revised in the Registrants’ Combined Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011.

Earnings Per Average Common Share

The following tables show the calculation of basic and diluted earnings per share:

						FOR THE THREE MONTHS ENDED JUNE 30,
				2012					2011
(THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS)	INCOME		SHARES	PER SHARE AMOUNT		INCOME		SHARES	PER SHARE AMOUNT
Income from continuing operations	$	46,686				$	70,348
Deduct:  non-participating stock dividends (4.5% preferred stock)	—					15
Deduct:  non-participating stock redemption costs (4.5% preferred stock)	—					112
Basic net income applicable to common stock	$	46,686	60,421,028	$	0.77	$	70,221	60,655,538	$	1.16
Effect of dilutive securities
Add:  stock option grants			1,504					21,634
Add:  restricted stock (LTICP)			238,170					346,267
Diluted net income applicable to common stock	$	46,686	60,660,702	$	0.77	$	70,221	61,023,439	$	1.15

						FOR THE SIX MONTHS ENDED JUNE 30,
				2012					2011
(THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS)	INCOME		SHARES	PER SHARE AMOUNT		INCOME		SHARES	PER SHARE AMOUNT
Income from continuing operations	$	76,718				$	99,363
Deduct:  non-participating stock dividends (4.5% preferred stock)	—					26
Deduct:  non-participating stock redemption costs (4.5% preferred stock)	—					112
Basic net income applicable to common stock	$	76,718	60,387,388	$	1.27	$	99,225	60,613,371	$	1.64
Effect of dilutive securities
Add:  stock option grants			4,455					21,067
Add:  restricted stock (LTICP)			233,534					163,107
Diluted net income applicable to common stock	$	76,718	60,625,377	$	1.27	$	99,225	60,797,545	$	1.63

Stock Based Compensation

Cleco and Cleco Power reported pre-tax compensation expense for their share-based compensation plans as shown in the following table.

	CLECO CORPORATION				CLECO POWER				CLECO CORPORATION				CLECO POWER
	FOR THE THREE MONTHS ENDED JUNE 30,								FOR THE SIX MONTHS ENDED JUNE 30,
(THOUSANDS)	2012		2011		2012		2011		2012		2011		2012		2011
Equity classification
Non-vested stock	$	1,076	$	796	$	277	$	201	$	2,132	$	1,947	$	491	$	522
Stock options	5		23		—		—		9		36		—		—
Total equity classification	$	1,081	$	819	$	277	$	201	$	2,141	$	1,983	$	491	$	522
Liability classification
Common stock equivalent units	$	518	$	364	$	210	$	154	$	706	$	1,559	$	294	$	586
Total pre-tax compensation expense	$	1,599	$	1,183	$	487	$	355	$	2,847	$	3,542	$	785	$	1,108
Tax benefit (excluding income tax gross-up)	$	615	$	455	$	187	$	137	$	1,095	$	1,363	$	302	$	426