Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Effective Income Tax Rate Reconciliation

December 31, 2017, and the successor period April 13, 2016, through December 31, 2016, income tax expense was lower than the amount computed by applying the statutory federal rate. For the predecessor period January 1, 2016, through April 12, 2016, and for the predecessor year ended December 31, 2015, income tax expense was higher than the amount computed by applying the statutory federal rate. The differences are as follows:



	SUCCESSOR						PREDECESSOR
(THOUSANDS, EXCEPT PERCENTAGES)	FOR THE YEAR ENDED DEC. 31, 2017			APR. 13, 2016 - DEC. 31, 2016			JAN. 1, 2016 - APR. 12, 2016			FOR THE YEAR ENDED DEC. 31, 2015
Income (loss) before tax	$	145,159		$	(46,935	)	$	(492	)	$	211,373
Statutory rate	35.0		%	35.0		%	35.0		%	35.0		%
Tax expense (benefit) at federal statutory rate	$	50,806		$	(16,427	)	$	(172	)	$	73,981
Increase (decrease)
Plant differences, including AFUDC flowthrough	743			(881		)	823			1,875
Amortization of investment tax credits	(662		)	(371		)	(124		)	(916		)
State income taxes	4,254			(4,725		)	(3,078		)	1,117
Nondeductible merger costs	2			(844		)	4,282			—
Return to accrual adjustment	(608		)	(2,943		)	—			—
2017 tax reform	(46,291		)	—			—			—
NMTC	313			(181		)	(158		)	243
Other	(1,478		)	3,550			1,895			1,404
Total tax expense (benefit)	$	7,079		$	(22,822	)	$	3,468		$	77,704
Effective rate	4.9		%	48.6		%	(704.9		)%	36.8		%

Current and Deferred Income Tax Expense

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



	SUCCESSOR						PREDECESSOR
(THOUSANDS)	FOR THE YEAR ENDED DEC. 31, 2017			APR. 13, 2016 - DEC. 31, 2016			JAN. 1, 2016 - APR. 12, 2016			FOR THE YEAR ENDED DEC. 31, 2015
Current federal income tax expense (benefit)	$	46,520		$	(1,062	)	$	1,373		$	1,284
Deferred federal income tax (benefit) expense	(47,329		)	(16,715		)	5,297			76,219
Amortization of accumulated deferred investment tax credits	(662		)	(371		)	(124		)	(916		)
Total federal income tax expense (benefit)	$	(1,471	)	$	(18,148	)	$	6,546		$	76,587
Current state income tax expense (benefit)	3,187			(337		)	—			3,233
Deferred state income tax expense (benefit)	5,363			(4,337		)	(3,078		)	(2,116		)
Total state income tax expense (benefit)	$	8,550		$	(4,674	)	$	(3,078	)	$	1,117
Total federal and state income tax expense (benefit)	$	7,079		$	(22,822	)	$	3,468		$	77,704
Items charged or credited directly to member’s/shareholders’ equity
Federal deferred	(659		)	14,593			(277		)	3,274
State deferred	207			2,441			(45		)	528
Total tax (benefit) expense from items charged directly to member’s/shareholders’ equity	$	(452	)	$	17,034		$	(322	)	$	3,802
Total federal and state income tax expense (benefit)	$	6,627		$	(5,788	)	$	3,146		$	81,506

Deferred Tax Assets and Liabilities

The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2017, and 2016 was comprised of the following:



	AT DEC. 31,
(THOUSANDS)	2017			2016
Depreciation and property basis differences	$	(596,824	)	$	(943,552	)
Net operating loss carryforward	12,873			54,727
NMTC	96,917			89,411
Fuel costs	(3,283		)	(8,802		)
Other comprehensive income	(490		)	3,399
Regulated operations regulatory liability, net	(54,471		)	(91,734		)
Postretirement benefits other than pension	23,642			22,733
Merger fair value adjustments	(58,251		)	(124,254		)
Other	(34,925		)	(34,983		)
Accumulated deferred federal and state income taxes, net	$	(614,812	)	$	(1,033,055	)

Cleco Power [Member]

Income Taxes [Line Items]

Effective Income Tax Rate Reconciliation

For the years ended December 31, 2017, and 2016 income tax expense was lower than the amount computed by applying the statutory rate. For the year ended December 31, 2015, 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 DEC. 31,
(THOUSANDS, EXCEPT PERCENTAGES)	2017			2016			2015
Income before tax	$	218,069		$	57,497		$	220,644
Statutory rate	35.0		%	35.0		%	35.0		%
Tax expense at federal statutory rate	$	76,324		$	20,124		$	77,225
Increase (decrease)
Plant differences, including AFUDC flowthrough	743			(58		)	1,875
Amortization of investment tax credits	(662		)	(494		)	(916		)
State income taxes	8,156			(2,573		)	1,501
Return to accrual adjustment	(284		)	(2,646		)	—
2017 tax reform	(14,292		)	—			—
Other	(2,654		)	4,016			(391		)
Total taxes	$	67,331		$	18,369		$	79,294
Effective rate	30.9		%	31.9		%	35.9		%

Current and Deferred Income Tax Expense

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



	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2017			2016			2015
Current federal income tax expense (benefit)	$	87,433		$	(1,211	)	$	33,138
Deferred federal income tax (benefit) expense	(29,190		)	22,647			45,572
Amortization of accumulated deferred investment tax credits	(662		)	(494		)	(916		)
Total federal income tax expense	$	57,581		$	20,942		$	77,794
Current state income tax expense (benefit)	14,751			(418		)	3,397
Deferred state income tax benefit	(5,001		)	(2,155		)	(1,897		)
Total state income tax expense (benefit)	$	9,750		$	(2,573	)	$	1,500
Total federal and state income taxes	$	67,331		$	18,369		$	79,294
Items charged or credited directly to members’ equity
Federal deferred	(2,573		)	1,976			106
State deferred	240			319			17
Total tax (benefit) expense from items charged directly to member’s equity	$	(2,333	)	$	2,295		$	123
Total federal and state income tax expense	$	64,998		$	20,664		$	79,417

Deferred Tax Assets and Liabilities

The balance of accumulated deferred federal and state income tax assets and liabilities at December 31, 2017, and 2016 was comprised of the following:



	AT DEC. 31,
(THOUSANDS)	2017			2016
Depreciation and property basis differences	$	(597,838	)	$	(941,166	)
Net operating loss carryforward	470			(362		)
Fuel costs	(3,282		)	(8,802		)
Other comprehensive income	5,250			8,021
Regulated operations regulatory liability, net	(54,471		)	(91,734		)
Postretirement benefits other than pension	6,266			1,288
Other	(12,757		)	(35,837		)
Accumulated deferred federal and state income taxes, net	$	(656,362	)	$	(1,068,592	)