Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes [Line Items]

Components of Income Tax Expense

DPL’s components of income tax expense on continuing operations were as follows:

	Years ended December 31,
$ in millions	2015			2014			2013
Computation of tax expense
Federal income tax expense / (benefit)(a)	$	(81.0	)	$	25.4		$	(71.7	)
Increases (decreases) in tax resulting from:
State income taxes, net of federal effect	(0.1		)	0.8			1.1
Depreciation of AFUDC - Equity	(3.5		)	(3.4		)	(3.2		)
Investment tax credit amortized	(0.5		)	(0.5		)	(0.5		)
Section 199 - domestic production deduction	(4.1		)	(1.1		)	(4.1		)
Non-deductible goodwill impairment	111.0			—			107.2
Accrual (settlement) for open tax years	—			(6.6		)	(8.8		)
Other, net (b)	(1.8		)	0.8			(0.2		)
Total tax expense	$	20.0		$	15.4		$	19.8
Components of tax expense
Federal - current	$	30.1		$	(5.2	)	$	(2.5	)
State and Local - current	0.8			0.4			—
Total current	30.9			(4.8		)	(2.5		)
Federal - deferred	(9.9		)	19.6			20.6
State and local - deferred	(1.0		)	0.6			1.7
Total deferred	(10.9		)	20.2			22.3
Total tax expense	$	20.0		$	15.4		$	19.8

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to DPL's effective tax rate, as a percentage of income from continuing operations before taxes for the years ended December 31, 2015, 2014 and 2013:

	Years ended December 31,
	2015		2014		2013
Statutory Federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal tax benefit	0.1	%	1.1	%	(0.6	)%
AFUDC - Equity	1.5	%	(4.7	)%	1.5	%
Amortization of investment tax credits	0.2	%	(0.7	)%	0.2	%
Section 199 - domestic production deduction	1.8	%	(1.6	)%	2.0	%
Non-deductible goodwill impairment	(48.0	)%	—	%	(52.1	)%
Other, net	0.8	%	(7.9	)%	4.3	%
Effective tax rate	(8.6	)%	21.2	%	(9.7	)%

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities
	December 31,
$ in millions	2015			2014
Net non-current Assets / (Liabilities)
Depreciation / property basis	$	(539.8	)	$	(548.2	)
Income taxes recoverable	(12.0		)	(14.8		)
Regulatory assets	(10.6		)	(18.0		)
Investment tax credit	0.7			1.5
Compensation and employee benefits	3.1			3.2
Intangibles	(8.4		)	(7.0		)
Long-term debt	(1.1		)	(1.5		)
Other (c)	(0.6		)	(2.5		)
Net non-current liabilities	$	(568.7	)	$	(587.3	)
Net current Assets / (Liabilities)(d)
Other	$	—		$	1.1
Net current assets / (liabilities)	$	—		$	1.1

(a) The statutory tax rate of 35% was applied to pre-tax earnings.

(b) Includes expense of $0.2 million, $0.4 million and $0.0 million in the years ended December 31, 2015, 2014, and 2013, respectively, of income tax related to adjustments from prior years.

(c) The Other non-current liabilities caption includes deferred tax assets of $26.0 million in 2015 and $27.1 million in 2014 related to state and local tax net operating loss carryforwards, net of related valuation allowances of $17.2 million in 2015 and $18.9 million in 2014. These net operating loss carryforwards expire from 2016 to 2030.

(d) Amounts are included within Other prepayments and current assets and Other current liabilities on the Consolidated Balance Sheet of DPL at December 31, 2014.

Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block)

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2015		2014			2013
Tax expense / (benefit)	$	6.3	$	(9.1	)	$	15.4

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

$ in millions
Balance at December 31, 2013	$	8.8
Calendar 2014
Tax positions taken during prior period	2.8
Lapse of Statute of Limitations	(8.6		)
Balance at December 31, 2014	3.0
Calendar 2015
Tax positions taken during prior period	—
Lapse of Statute of Limitations	—
Balance at December 31, 2015	$	3.0

THE DAYTON POWER AND LIGHT COMPANY [Member]

Income Taxes [Line Items]

Components of Income Tax Expense

DP&L’s components of income tax expense were as follows:

	Years ended December 31,
$ in millions	2015			2014			2013
Computation of tax expense
Federal income tax expense (a)	$	49.3		$	53.8		$	35.5
Increases (decreases) in tax resulting from:
State income taxes, net of federal effect	0.4			1.2			0.3
Depreciation of AFUDC - Equity	(2.8		)	(2.7		)	(2.5		)
Investment tax credit amortized	(2.4		)	(2.5		)	(2.5		)
Section 199 - domestic production deduction	(6.1		)	(4.6		)	(4.1		)
Accrual (settlement) for open tax years	—			(6.6		)	(8.8		)
Other, net (b)	(3.3		)	1.1			0.7
Total tax expense	$	35.1		$	39.7		$	18.6
Components of Tax Expense
Federal - current	$	55.8		$	34.1		$	38.6
State and Local - current	0.8			0.5			(0.1		)
Total current	56.6			34.6			38.5
Federal - deferred	(21.0		)	4.1			(20.4		)
State and local - deferred	(0.5		)	1.0			0.5
Total deferred	(21.5		)	5.1			(19.9		)
Total tax expense	$	35.1		$	39.7		$	18.6

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to DP&L's effective tax rate, as a percentage of income from continuing operations before taxes for the years ended December 31, 2015, 2014 and 2013:

	Years ended December 31,
	2015		2014		2013
Statutory Federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal tax benefit	0.3	%	0.8	%	0.3	%
AFUDC - Equity	(2.0	)%	(1.7	)%	(2.4	)%
Amortization of investment tax credits	(1.7	)%	(1.6	)%	(2.4	)%
Section 199 - domestic production deduction	(4.3	)%	(3.0	)%	(4.0	)%
Other - net	(2.5	)%	(3.8	)%	(8.3	)%
Effective tax rate	24.8	%	25.7	%	18.2	%

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities
	December 31,
$ in millions	2015			2014
Net non-current Assets / (Liabilities)
Depreciation / property basis	$	(608.8	)	$	(618.8	)
Income taxes recoverable	(12.0		)	(14.8		)
Regulatory assets	(11.5		)	(18.0		)
Investment tax credit	7.0			8.6
Compensation and employee benefits	3.6			5.2
Other	(9.5		)	(12.2		)
Net non-current liabilities	$	(631.2	)	$	(650.0	)
Net current Assets / (Liabilities)(c)
Other	$	—		$	0.5
Net current assets / (liabilities)	$	—		$	0.5

(a) The statutory tax rate of 35% was applied to pre-tax earnings.

(b) Includes benefit of $0.4 million, expense of $0.7 million and benefit of $1.1 million in the years ended December 31, 2015, 2014 and 2013, respectively, of income tax related to adjustments from prior years.

(c) Amounts are included within Other prepayments and current assets and Other current liabilities on the Balance Sheets of DP&L.

Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block)

The following table presents the tax (benefit) / expense related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2015		2014			2013
Tax expense / (benefit)	$	7.5	$	(6.0	)	$	7.0

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for DP&L is as follows:

$ in millions
Balance at December 31, 2013	$	8.8
Calendar 2014
Tax positions taken during prior period	2.8
Lapse of Statute of Limitations	(8.6		)
Settlement with taxing authorities	—
Balance at December 31, 2014	3.0
Calendar 2015
Tax positions taken during prior period	—
Lapse of Statute of Limitations	—
Balance at December 31, 2015	$	3.0