Dispositions (Notes)

3 Months Ended

Mar. 31, 2020

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations

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. On December 20, 2019, DPL and AES Ohio Generation, together with AES Ohio Generation's joint owners in the retired Stuart and Killen generating facilities, completed the transfer of the retired generating facilities, including the associated environmental liabilities, to an unaffiliated third-party purchaser.

Together with the sales of the Peaker Assets in 2018 and Miami Fort and Zimmer in 2017, DPL determined that the disposal of this group of components as a whole represents a strategic shift to exit generation, and, as such, qualifies to be presented as discontinued operations. Therefore, the results of operations, assets and liabilities of this group of components were reported as such in the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets for all periods presented.

The following table summarizes the major categories of assets and liabilities at the dates indicated:



$ in millions	March 31, 2020		December 31, 2019
Accounts receivable, net	$	1.8	$	17.4
Prepayments and other current assets	0.1		0.3
Total assets of the disposal group classified as assets of discontinued operations and held-for-sale businesses in the balance sheets	$	1.9	$	17.7

Accounts payable	$	3.4	$	3.8
Accrued and other current liabilities	2.5		3.1
Other non-current liabilities	6.2		6.2
Total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets	$	12.1	$	13.1

The following table summarizes the revenues, operating costs, other expenses and income tax of discontinued operations for the periods indicated:



	Three months ended
	March 31,
$ in millions	2020			2019
Revenues	$	10.0		$	16.3
Operating costs and other expenses	(8.7		)	13.5
Income from discontinued operations	1.3			29.8
Gain from disposal of discontinued operations	—			0.1
Income tax expense from discontinued operations	0.3			4.3
Net income from discontinued operations	$	1.0		$	25.6

Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $15.8 million and $8.1 million for the three months ended March 31, 2020 and 2019, respectively. There were no cash flows from investing activities for the three months ended March 31, 2020 and 2019, respectively.

AROs of Discontinued Operations

Prior to the transfer of the retired Stuart and Killen generating facilities, the facilities carried ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills and ash disposal facilities. In the first quarter of 2019, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $22.5 million based on updated internal analyses that reduced estimated closure costs associated with these ash ponds and landfills. As these plants were no longer in service, the reduction to the ARO liability was 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 three months ended March 31, 2019 in the table above.