Income Taxes

6 Months Ended

Jun. 30, 2015

The following table details the effective tax rates for the three and six months ended June 30, 2015 and 2014.



	Three months ended		Six months ended
	June 30,		June 30,
	2015	2014	2015	2014
DPL	2.2%	(4.8)%	20.7%	(49.0)%

Income tax expense for the six months ended June 30, 2015 and 2014 was calculated using the estimated annual effective income tax rates for 2015 and 2014 of 31.2% and (49.0)%, respectively. For the six months ended June 30, 2015 and 2014, management estimated the annual effective tax rate based on its forecast of annual pre-tax income. To the extent that actual pre-tax results for the year differ from the forecasts applied to the most recent interim period, the rates estimated could be materially different from the actual effective tax rates.

For the three and six months ended June 30, 2015, DPL’s current period effective rate was less than the estimated annual effective rate primarily due to the sale of MC Squared. The increase in the effective rate compared to the same period in 2014 is primarily due to the non-deductible goodwill impairment in 2014 which did not occur in 2015.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Income Taxes

The following table details the effective tax rates for the three and six months ended June 30, 2015 and 2014.



	Three months ended June 30,		Six months ended June 30,
	2015	2014	2015	2014
DP&L	27.9%	30.2%	28.5%	29.9%

Income tax expense for the three and six months ended June 30, 2015 and 2014 was calculated using the estimated annual effective income tax rates for 2015 and 2014 of 29.4% and 30.4%, respectively. For the three and six months ended June 30, 2015 and 2014 management estimated the annual effective tax rate based on its forecast of annual pre-tax income. To the extent that actual pre-tax results for the year differ from the forecasts applied to the most recent interim period, the rates estimated could be materially different from the actual effective tax rates.

For the three and six months ended June 30, 2015, DP&L’s current period effective rate is less than the estimated annual effective rate due to the deduction for the preferred stock dividends and other immaterial adjustments.