Common Stock (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Fair Value Assumptions of Non-Vested Stock

The fair value of shares of non-vested stock granted during 2014, 2013, and 2012 under the LTICP is estimated on the date of grant and is marked-to-market using the Monte

Carlo simulation model with the assumptions listed in the following table:



							AT DEC. 31,
	2014			2013			2012
Expected term (in years) ⁽¹⁾	3.0			3.0			3.0
Volatility of Cleco stock ⁽²⁾	17.3		%	18.1		%	21.5		%
Correlation between Cleco stock volatility and peer group	66.5		%	69.7		%	66.0		%
Expected dividend yield	3.0		%	3.2		%	3.3		%
Weighted average fair value (Monte Carlo model)	$	54.58		$	42.66		$	41.56

⁽¹⁾ The expected term was based on the service period of the award.

⁽²⁾ The volatility rate is based on historical stock prices over an appropriate period, generally equal to the expected term.

Summary of Non-Vested Stock Activity

A summary of non-vested stock activity during the year ended December 31, 2014, is presented in the following table:



	SHARES		WEIGHTED -AVERAGE GRANT-DATE FAIR VALUE
Non-vested at January 1, 2014	340,998		$	38.26
Granted	135,379		$	48.65
Vested	(155,310	)	$	37.66
Forfeited	(9,350	)	$	44.16
Non-vested at December 31, 2014	311,717		$	42.90

Stock Based Compensation

Pre-tax compensation expense reported by Cleco and Cleco Power relating to their share-based compensation plans is shown in the following table:



	CLECO						CLECO POWER
			FOR THE YEAR ENDED DEC. 31,						FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2014		2013		2012		2014		2013		2012
Equity classification
Non-vested stock ⁽¹⁾	$	6,308	$	6,147	$	4,429	$	2,004	$	1,754	$	1,074
Stock options ⁽¹⁾	—		—		11		—		—		—
Total equity classification	$	6,308	$	6,147	$	4,440	$	2,004	$	1,754	$	1,074
Liability classification
Common stock equivalent units	$	—	$	1	$	1,506	$	—	$	—	$	609
Total pre-tax compensation expense	$	6,308	$	6,148	$	5,946	$	2,004	$	1,754	$	1,683
Tax benefit (excluding income tax gross-up)	$	2,427	$	2,366	$	2,288	$	771	$	675	$	648

⁽¹⁾ For each of the years ended December 31, 2014, 2013, and 2012, compensation expense included in Cleco’s Consolidated Statements of Income related to non-forfeitable dividends paid on non-vested stock that is not expected to vest and stock options was $0.1 million

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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