Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

The following table summarizes the effective income tax rates for Cleco and Cleco Power for the three and nine month periods ended September 30, 2012 and 2011.



	FOR THE THREE MONTHS ENDED SEPT. 30,				FOR THE NINE MONTHS ENDED SEPT. 30,
	2012		2011		2012		2011
Cleco	24.0	%	27.3	%	27.8	%	30.8	%
Cleco Power	25.5	%	37.0	%	31.0	%	34.1	%

Liability and Expense Related to Unrecognized Tax Benefits

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



(THOUSANDS)	AT SEPT. 30, 2012		AT DEC. 31, 2011
Interest payable
Cleco	$	2,166	$	13,843
Cleco Power	$	5,502	$	17,327



	FOR THE THREE MONTHS ENDED SEPT. 30,						FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)	2012			2011			2012			2011
Interest charges
Cleco	$	(121	)	$	93		$	(8,477	)	$	2,954
Cleco Power	$	133		$	(420	)	$	(9,504	)	$	1,356

The total liability for unrecognized tax benefits for Cleco at September 30, 2012 and December 31, 2011, is shown in the following table.



Cleco
(THOUSANDS)	LIABILITY FOR UNRECOGNIZED TAX BENEFITS
Balance at December 31, 2011	$	56,235
Additions for tax positions of current period	640
Reductions for tax positions of current period	—
Additions for tax positions of prior periods	—
Reduction for tax positions of prior periods	22,418
Reduction for settlement with tax authority	32,062
Reduction for lapse of statute of limitations	—
Balance at September 30, 2012	$	2,395

Cleco Power [Member]

Liability and Expense Related to Unrecognized Tax Benefits

The total liability (asset) for unrecognized tax benefits for Cleco Power at September 30, 2012 and December 31, 2011, is shown in the following table.



Cleco Power
(THOUSANDS)	LIABILITY (ASSET) FOR UNRECOGNIZED TAX BENEFITS
Balance at December 31, 2011	$	52,558
Additions for tax positions of current period	640
Reductions for tax positions of current period	—
Additions for tax positions of prior periods	—
Reduction for tax positions of prior periods	21,327
Reduction for settlement with tax authority	32,062
Reduction for lapse of statute of limitations	—
Balance at September 30, 2012	$	(191	)

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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