Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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	2016			2015			2014
Computation of tax expense / (benefit)
Federal income tax expense / (benefit)(a)	$	(277.6	)	$	(81.0	)	$	25.4
Increases (decreases) in tax resulting from:
State income taxes, net of federal effect	(1.0		)	(0.1		)	0.8
Depreciation of AFUDC - Equity	2.7			(3.5		)	(3.4		)
Investment tax credit amortized	(0.4		)	(0.5		)	(0.5		)
Section 199 - domestic production deduction	(4.5		)	(4.1		)	(1.1		)
Non-deductible goodwill impairment	—			111.0			—
Accrual (settlement) for open tax years	2.2			—			(6.6		)
Other, net (b)	(0.2		)	(1.8		)	0.8
Tax expense / (benefit)	$	(278.8	)	$	20.0		$	15.4
Components of tax expense / (benefit)
Federal - current	$	14.7		$	30.1		$	(5.2	)
State and Local - current	0.6			0.8			0.4
Total current	15.3			30.9			(4.8		)
Federal - deferred	(290.2		)	(9.9		)	19.6
State and local - deferred	(3.9		)	(1.0		)	0.6
Total deferred	(294.1		)	(10.9		)	20.2
Tax expense / (benefit)	$	(278.8	)	$	20.0		$	15.4

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

(b) Includes expense of $(0.3) million, $0.2 million and $0.4 million in the years ended December 31, 2016, 2015, and 2014, respectively, of income tax related to adjustments from prior years.

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, 2016, 2015 and 2014:

	Years ended December 31,
	2016		2015		2014
Statutory Federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal tax benefit	0.1	%	0.1	%	1.1	%
AFUDC - Equity	(0.3	)%	1.5	%	(4.7	)%
Amortization of investment tax credits	—	%	0.2	%	(0.7	)%
Section 199 - domestic production deduction	0.6	%	1.8	%	(1.6	)%
Non-deductible goodwill impairment	—	%	(48.0	)%	—	%
Other, net	(0.3	)%	0.8	%	(7.9	)%
Effective tax rate	35.1	%	(8.6	)%	21.2	%

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities
	December 31,
$ in millions	2016			2015
Net non-current assets / (liabilities)
Depreciation / property basis	$	(255.3	)	$	(539.8	)
Income taxes recoverable	(11.9		)	(12.0		)
Regulatory assets	(7.8		)	(10.6		)
Investment tax credit	0.5			0.7
Compensation and employee benefits	5.5			3.1
Intangibles	(1.5		)	(8.4		)
Long-term debt	(0.7		)	(1.1		)
Other (a)	18.8			(0.6		)
Net non-current liabilities	$	(252.4	)	$	(568.7	)

(a) The Other caption includes deferred tax assets of $24.9 million in 2016 and $26.0 million in 2015 related to state and local tax net operating loss carryforwards, net of related valuation allowances of $3.3 million in 2016 and $17.2 million in 2015. These net operating loss carryforwards expire from 2017 to 2030.

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	2016			2015		2014
Tax expense / (benefit)	$	(9.6	)	$	6.3	$	(9.1	)

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, 2014	$	3.0
Calendar 2015
Tax positions taken during prior period	—
Lapse of Statute of Limitations	—
Balance at December 31, 2015	3.0
Calendar 2016
Tax positions taken during prior period	2.2
Lapse of Statute of Limitations	(1.5		)
Balance at December 31, 2016	$	3.7

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	2016			2015			2014
Computation of tax expense / (benefit)
Federal income tax expense / (benefit) (a)	$	(418.5	)	$	49.3		$	53.8
Increases (decreases) in tax resulting from:
State income taxes, net of federal effect	(5.0		)	0.4			1.2
Depreciation of AFUDC - Equity	3.3			(2.8		)	(2.7		)
Investment tax credit amortized	(2.3		)	(2.4		)	(2.5		)
Section 199 - domestic production deduction	(5.3		)	(6.1		)	(4.6		)
Accrual (settlement) for open tax years	3.4			—			(6.6		)
Other, net (b)	2.0			(3.3		)	1.1
Tax expense / (benefit)	$	(422.4	)	$	35.1		$	39.7
Components of tax expense / (benefit)
Federal - current	$	51.6		$	55.8		$	34.1
State and Local - current	0.6			0.8			0.5
Total current	52.2			56.6			34.6
Federal - deferred	(466.3		)	(21.0		)	4.1
State and local - deferred	(8.3		)	(0.5		)	1.0
Total deferred	(474.6		)	(21.5		)	5.1
Tax expense / (benefit)	$	(422.4	)	$	35.1		$	39.7

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

(b) Includes expense of $2.9 million, expense of $0.4 million and benefit of $0.7 million in the years ended December 31, 2016, 2015 and 2014, respectively, of income tax related to adjustments from prior years.

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, 2016, 2015 and 2014:

	Years ended December 31,
	2016		2015		2014
Statutory Federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal tax benefit	0.4	%	0.3	%	0.8	%
AFUDC - Equity	(0.3	)%	(2.0	)%	(1.7	)%
Amortization of investment tax credits	0.2	%	(1.7	)%	(1.6	)%
Section 199 - domestic production deduction	0.4	%	(4.3	)%	(3.0	)%
Other - net	(0.4	)%	(2.5	)%	(3.8	)%
Effective tax rate	35.3	%	24.8	%	25.7	%

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities
	December 31,
$ in millions	2016			2015
Net non-current Assets / (Liabilities)
Depreciation / property basis	$	(129.8	)	$	(608.8	)
Income taxes recoverable	(11.9		)	(12.0		)
Regulatory assets	(9.1		)	(11.5		)
Investment tax credit	6.3			7.0
Compensation and employee benefits	1.1			3.6
Other	(2.9		)	(9.5		)
Net non-current liabilities	$	(146.3	)	$	(631.2	)

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	2016			2015		2014
Tax expense / (benefit)	$	(7.0	)	$	7.5	$	(6.0	)

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, 2014	$	3.0
Calendar 2015
Tax positions taken during prior period	—
Lapse of Statute of Limitations	—
Balance at December 31, 2015	3.0
Calendar 2016
Tax positions taken during prior period	3.4
Lapse of Statute of Limitations	(1.5		)
Balance at December 31, 2016	$	4.9