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Generation Separation (Notes)
 12 Months Ended
Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Discontinued Operations
Discontinued Operations

On December 8, 2017, DPL and AES Ohio Generation completed the sale transaction of their entire undivided interest in the Miami Fort Station and the Zimmer Station, which resulted in a gain on sale of $14.0 million for the year ended December 31, 2017. On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets to Kimura Power, LLC, which resulted in a loss on sale of $1.9 million for the year ended December 31, 2018. Further, on May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. Consequently, in the second quarter of 2018, DPL determined that the disposal of this group of components as a whole represents a strategic shift by us to exit generation, and, as such, qualifies to be presented as discontinued operations. Therefore, the results of operations and financial position for this group of components were reported as such in the Consolidated Statements of Operations and Consolidated Balance Sheets for all periods presented.

Previously, on January 1, 2016, DPL closed on the sale of DPLER, its competitive retail business. The sale agreement was signed on December 28, 2015, and DPL received $75.5 million of restricted cash on December 31, 2015 for the sale. DPL recorded a gain on this transaction of $49.2 million in the first quarter of 2016. The gain included the impact of DPLER’s liability to DP&L that transferred with the sale on January 1, 2016. As such, the results of operations of DPLER were also reported as discontinued operations in the Consolidated Statements of Operations for the year ended December 31, 2016.

The following table summarizes the major categories of assets and liabilities at the dates indicated:
$ in millions
 
December 31, 2018
 
December 31, 2017
Restricted cash
 
$
—

 
$
1.5

Accounts receivable, net
 
4.0

 
37.9

Inventories
 
—

 
19.4

Taxes applicable to subsequent years
 
2.3

 
7.4

Other prepayments and current assets
 
2.4

 
17.4

Property, plant & equipment, net
 
—

 
232.2

Intangible assets, net
 
5.3

 
5.5

Other deferred assets
 
—

 
0.6

Total assets of the disposal group classified as assets of discontinued operations and held-for-sale businesses in the balance sheets
 
$
14.0

 
$
321.9

 
 
 
 
 
Accounts payable
 
$
3.9

 
$
25.1

Accrued taxes
 
3.1

 
6.3

Other current liabilities
 
5.2

 
30.0

Long-term debt (a)
 
—

 
0.3

Deferred taxes (b)
 
(39.8
)
 
(2.3
)
Taxes payable
 
2.3

 
7.4

Pension, retiree and other benefits
 
9.7

 
10.6

Asset retirement obligations
 
90.4

 
116.6

Other deferred credits
 
6.6

 
5.9

Total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets
 
$
81.4

 
$
199.9


(a)
Long-term debt relates to capital leases.
(b)
Deferred taxes represent the tax asset position of the discontinued group of components, which were netted with liabilities on DPL prior to classification as discontinued operations.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
 
 
Years ended December 31,
$ in millions
 
2018
 
2017
 
2016
Revenues
 
$
158.6

 
$
492.9

 
$
593.0

Cost of revenues
 
(74.3
)
 
(249.5
)
 
(349.6
)
Operating and other expenses
 
(13.8
)
 
(195.0
)
 
(214.6
)
Fixed-asset impairment
 
—

 
(175.8
)
 
(835.2
)
Income / (loss) from discontinued operations
 
70.5

 
(127.4
)
 
(806.4
)
Gain / (loss) from disposal of discontinued operations
 
(1.6
)
 
14.0

 
49.2

Income tax expense / (benefit) from discontinued operations
 
30.0

 
(20.3
)
 
(257.2
)
Net income / (loss) from discontinued operations
 
$
38.9

 
$
(93.1
)
 
$
(500.0
)


Cash flows related to discontinued operations are included in our Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(6.8) million, $126.8 million and $92.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. Cash flows from investing activities for discontinued operations were $233.8 million, $51.8 million and $(56.8) million for the years ended December 31, 2018, 2017 and 2016, respectively.

The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense is included in the discontinued operations above. The interest expense included in discontinued operations was $0.2 million and $0.5 million for the years December 31, 2017 and 2016, respectively.

AROs of Discontinued Operations
DPL's retired Stuart and Killen generating facilities continue to carry ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills, and ash disposal facilities. In the fourth quarter of 2018, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $27.6 million based on updated internal analyses that reduced estimated closure costs associated with these ash ponds and landfills. The remaining ARO liability related to Stuart and Killen is included in the AROs in the total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets as of December 31, 2018 above. As these plants are no longer in service, the reduction to the ARO liability was also recorded as a credit to depreciation and amortization expense in the same amount. The credit to depreciation and amortization expense is included in operating and other expenses of discontinued operations for the year ended December 31, 2018 in the table above.
Dispositions

Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $11.7 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the years ended December 31, 2018, 2017 and 2016, excluding the loss on transfer noted above. Prior to the transfer, the Beckjord Facility was included in the Utility segment.
THE DAYTON POWER AND LIGHT COMPANY [Member]  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Discontinued Operations
Generation Separation

On October 1, 2017, DP&L completed the transfer of its generating plants, the real property on which the generation plants and generation-related assets are sited, step-up transformers and other transmission plant assets used to interconnect with the electric transmission grid, fuel inventory, equipment inventory and spare parts, working capital, and other miscellaneous generation-related assets and liabilities to AES Ohio Generation. The transfer was completed as a contribution through an asset contribution agreement to a wholly-owned subsidiary of DP&L after which DP&L then distributed all of the outstanding equity in the subsidiary to DPL and then the subsidiary was merged into AES Ohio Generation.

The following table summarizes the carrying amounts of DP&L's Generation assets that were transferred to AES Ohio Generation on October 1, 2017:
$ in millions
 
October 1, 2017
ASSETS
 
 
Restricted cash
 
$
2.0

Accounts receivable, net
 
31.3

Inventories
 
42.0

Taxes applicable to subsequent years
 
1.8

Property, plant & equipment, net
 
87.0

Intangible assets, net
 
0.7

Other assets
 
15.5

Total assets
 
$
180.3

 
 
 
LIABILITIES
 
 
Accounts payable
 
$
12.4

Accrued taxes (b)
 
(3.9
)
Long-term debt (a)
 
0.3

Deferred taxes (b)
 
(91.9
)
Pension, retiree and other benefits
 
9.6

Unamortized investment tax credit
 
15.1

Asset retirement obligations
 
126.3

Other liabilities
 
24.1

Total liabilities
 
$
92.0

 
 
 
Total accumulated other comprehensive income
 
2.1

 
 
 
Net assets transferred to AES Ohio Generation
 
$
86.2


(a)
Long-term debt that transferred to AES Ohio Generation relates to capital leases.
(b)
Accrued taxes and deferred taxes transferred to AES Ohio Generation represent the tax asset position netted with liabilities on DP&L prior to Generation Separation.

DP&L's generation business met the criteria to be classified as a discontinued operation, and, accordingly, the historical activity has been reclassified to "Discontinued operations" in the Statements of Operations for the years ended December 31, 2017 and 2016.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
 
 
Years ended December 31,
$ in millions
 
2017
 
2016
Revenues
 
$
358.4

 
$
557.9

Cost of revenues
 
(191.6
)
 
(341.1
)
Operating and other expenses
 
(156.8
)
 
(202.0
)
Fixed-asset impairment
 
(66.3
)
 
(1,353.5
)
Loss from discontinued operations
 
(56.3
)
 
(1,338.7
)
Income tax benefit from discontinued operations
 
(15.9
)
 
(468.4
)
Net loss from discontinued operations
 
$
(40.4
)
 
$
(870.3
)

In 2018, DP&L transferred additional deferred taxes to AES Ohio Generation under the provisions of SAB 118 through an equity transaction with DPL in the amount of $10.0 million. See Note 8 – Income Taxes for additional information.

Cash flows related to discontinued operations are included in the Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $21.8 million and $29.9 million for the years ended December 31, 2017 and 2016, respectively. Cash flows from investing activities for discontinued operations were $(3.5) million and $(39.0) million for the years ended December 31, 2017 and 2016, respectively.

The PUCO authorized DP&L to maintain long-term debt of $750 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense is included in discontinued operations above. The interest expense included in discontinued operations was $0.2 million and $0.5 million for the years ended December 31, 2017 and 2016, respectively.
Dispositions

Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DP&L recognized a loss on the transfer of $12.4 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the years ended December 31, 2018, 2017 and 2016, excluding the loss on transfer noted above.