Benefit Plans

6 Months Ended

Jun. 30, 2017

Entity Information [Line Items]

Pension and Postretirement Benefits

Benefit Plans

DP&L sponsors a defined benefit pension plan for the vast majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $5.0 million in employer contributions during each of the six months ended June 30, 2017 and 2016.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former DP&L employees who are now employed by the Service Company but are still participants in the DP&L plan.

The net periodic benefit cost of the pension benefit plans for the three and six months ended June 30, 2017 and 2016 was:

Net Periodic Benefit Cost	Pension
	Three months ended						Six months ended
	June 30,						June 30,
$ in millions	2017			2016			2017			2016
Service cost	$	1.4		$	1.4		$	2.8		$	2.8
Interest cost	3.5			3.7			7.1			7.4
Expected return on plan assets	(5.7		)	(5.7		)	(11.4		)	(11.4		)
Plan curtailment (a)	—			—			4.1			—
Amortization of unrecognized:
Prior service cost	0.2			0.5			0.6			1.0
Actuarial loss	1.4			1.1			2.7			2.1
Net periodic benefit cost	$	0.8		$	1.0		$	5.9		$	1.9

(a) As a result of the decision to retire certain of DP&L's coal-fired plants, we recognized a plan curtailment of $4.1 million in the first quarter of 2017. See Note 14 – Fixed-asset Impairments for more information.

In addition, DP&L provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. We have funded a portion of the union-eligible benefits using a Voluntary Employee Beneficiary Association Trust. These postretirement health care benefits and the related unfunded obligation of $15.7 million at June 30, 2017 and $15.8 million at December 31, 2016 were not material to the financial statements in the periods covered by this report.

Benefit payments, which reflect future service, are estimated to be paid as follows:

$ in millions
Estimated to be paid during	Pension
2017	$	12.5
2018	25.5
2019	26.0
2020	26.4
2021	26.7
2022 - 2026	139.6

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Pension and Postretirement Benefits

Benefit Plans

DP&L sponsors a defined benefit pension plan for the vast majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $5.0 million in employer contributions during each of the six months ended June 30, 2017 and 2016.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former DP&L employees who are now employed by the Service Company but are still participants in the DP&L plan.

The net periodic benefit cost of the pension benefit plans for the three and six months ended June 30, 2017 and 2016 was:

Net Periodic Benefit Cost	Pension
	Three months ended						Six months ended
	June 30,						June 30,
$ in millions	2017			2016			2017			2016
Service cost	$	1.4		$	1.4		$	2.8		$	2.8
Interest cost	3.5			3.7			7.1			7.4
Expected return on plan assets	(5.7		)	(5.7		)	(11.4		)	(11.4		)
Plan curtailment (a)	—			—			5.6			—
Amortization of unrecognized:
Prior service cost	0.3			0.7			0.8			1.5
Actuarial loss	2.3			1.8			4.5			3.6
Net periodic benefit cost	$	1.8		$	1.9		$	9.4		$	3.9

(a) As a result of the decision to retire certain of DP&L's coal-fired plants, we recognized a plan curtailment of $5.6 million in the first quarter of 2017. See Note 14 – Fixed-asset Impairments for more information.

In addition, DP&L provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. We have funded a portion of the union-eligible benefits using a Voluntary Employee Beneficiary Association Trust. These postretirement health care benefits and the related unfunded obligation of $15.7 million at June 30, 2017 and $15.8 million at December 31, 2016 were not material to the financial statements in the periods covered by this report.

Benefit payments, which reflect future service, are estimated to be paid as follows:

$ in millions
Estimated to be paid during	Pension
2017	$	12.5
2018	25.5
2019	26.0
2020	26.4
2021	26.7
2022 - 2026	139.6