Income Taxes

9 Months Ended

Sep. 30, 2016

The following table details the effective tax rates for the three and nine months ended September 30, 2016 and 2015.



	Three months ended		Nine months ended
	September 30,		September 30,
	2016	2015	2016	2015
DPL	45.7%	(34.1)%	38.6%	24.6%

Income tax expense for the nine months ended September 30, 2016 and 2015 was calculated using the estimated annual effective income tax rates for 2016 and 2015 of 38.6% and 30.8%, respectively. For the three and nine months ended September 30, 2016 and 2015, 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 months ended September 30, 2016, DPL’s current period effective tax rate was greater than the estimated annual effective rate primarily due to a change in its uncertain tax positions. The increase in the annual effective rate compared to the same period in 2015 is primarily due to a forecasted pre-tax loss in the 2016 tax year.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Income Taxes

The following table details the effective tax rates for the three and nine months ended September 30, 2016 and 2015.



	Three months ended		Nine months ended
	September 30,		September 30,
	2016	2015	2016	2015
DP&L	39.6%	4.9%	36.7%	24.8%

Income tax expense for the three and nine months ended September 30, 2016 and 2015 was calculated using the estimated annual effective income tax rates for 2016 and 2015 of 36.7% and 29.0%, respectively. For the three and nine months ended September 30, 2016 and 2015 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 months ended September 30, 2016, DP&L’s current period effective tax rate was greater than the estimated annual effective rate primarily due to a change in its uncertain tax positions and the deduction for the preferred stock dividends. The increase in the annual effective rate compared to the same period in 2015 is primarily due to a forecasted pre-tax loss in the 2016 tax year.