Supplemental Financial Information

6 Months Ended

Jun. 30, 2020

Supplemental Financial Information [Line Items]

Allowance for Credit Losses

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the six months ended June 30, 2020:

$ in millions	Beginning Allowance Balance at January 1, 2020		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance at June 30, 2020
Allowance for credit losses	$	0.4	$	2.6	$	(2.9)	$	2.9	$	3.0

Supplemental Financial Information

Supplemental Financial Information

Accounts receivable are as follows at June 30, 2020 and December 31, 2019:

	June 30,		December 31,
$ in millions	2020		2019
Accounts receivable, net:
Customer receivables	$	41.4	$	45.7
Unbilled revenue	19.9		19.4
Amounts due from affiliates	0.2		0.3
Due from PJM transmission enhancement settlement	1.8		1.8
Other	1.5		1.1
Allowance for credit losses	(3.0)		(0.4)
Total accounts receivable, net	$	61.8	$	67.9

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the six months ended June 30, 2020:

$ in millions	Beginning Allowance Balance at January 1, 2020		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance at June 30, 2020
Allowance for credit losses	$	0.4	$	2.6	$	(2.9)	$	2.9	$	3.0

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of June 30, 2020. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances, and thus the current period provision and the allowance for credit losses have increased during the second quarter of 2020. See Note 14 – Risks and Uncertainties for additional discussion of the COVID-19 pandemic.

Inventories consist of materials and supplies at June 30, 2020 and December 31, 2019.

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the three and six months ended June 30, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Income / (Loss) components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended				Six months ended
		June 30,				June 30,
$ in millions		2020		2019		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	$	(0.2)	$	(0.3)	$	(0.6)	$	(0.6)
	Income tax expense	—		—		0.1		0.1
	Net of income taxes	(0.2)		(0.3)		(0.5)		(0.5)
Amortization of defined benefit pension items (Note 8):
	Other expense	0.3		—		0.6		0.1
	Income tax benefit	(0.1)		—		(0.1)		—
	Net of income taxes	0.2		—		0.5		0.1
Total reclassifications for the period, net of income taxes		$	—	$	(0.3)	$	—	$	(0.4)

The changes in the components of Accumulated Other Comprehensive Loss during the six months ended June 30, 2020 are as follows:

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension and postretirement benefit obligations		Total
Balance at January 1, 2020	$	14.5	$	(18.1)	$	(3.6)
Other comprehensive loss before reclassifications	(0.1)		—		(0.1)
Amounts reclassified from AOCI to earnings	(0.5)		0.5		—
Net current period other comprehensive income / (loss)	(0.6)		0.5		(0.1)
Balance at June 30, 2020	$	13.9	$	(17.6)	$	(3.7)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Supplemental Financial Information [Line Items]

Allowance for Credit Losses

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the six months ended June 30, 2020:

$ in millions	Beginning Allowance Balance at January 1, 2020		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance at June 30, 2020
Allowance for credit losses	$	0.4	$	2.6	$	(2.9)	$	2.9	$	3.0

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of June 30, 2020. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances, and thus the current period provision and the allowance for credit losses have increased during the second quarter of 2020. See Note 12 – Risks and Uncertainties for additional discussion of the COVID-19 pandemic.

Supplemental Financial Information

Supplemental Financial Information

Accounts receivable are as follows at June 30, 2020 and December 31, 2019:

	June 30,		December 31,
$ in millions	2020		2019
Accounts receivable, net:
Customer receivables	$	40.0	$	45.0
Unbilled revenue	19.9		19.4
Amounts due from affiliates	5.8		3.9
Due from PJM transmission enhancement settlement	1.8		1.8
Other	1.5		1.2
Allowance for credit losses	(3.0)		(0.4)
Total accounts receivable, net	$	66.0	$	70.9

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the six months ended June 30, 2020:

$ in millions	Beginning Allowance Balance at January 1, 2020		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance at June 30, 2020
Allowance for credit losses	$	0.4	$	2.6	$	(2.9)	$	2.9	$	3.0

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of June 30, 2020. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances, and thus the current period provision and the allowance for credit losses have increased during the second quarter of 2020. See Note 12 – Risks and Uncertainties for additional discussion of the COVID-19 pandemic.

Inventories consist of materials and supplies at June 30, 2020 and December 31, 2019.

Accumulated Other Comprehensive Loss

The amounts reclassified out of Accumulated Other Comprehensive Loss by component during the three and six months ended June 30, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Income / (Loss) components	Affected line item in the Condensed Statements of Operations	Three months ended				Six months ended
		June 30,				June 30,
$ in millions		2020		2019		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	$	(0.1)	$	—	$	(0.2)	$	(0.1)
	Income tax expense	—		—		—		—
	Net of income taxes	(0.1)		—		(0.2)		(0.1)
Amortization of defined benefit pension items (Note 8):
	Other expense	1.0		0.9		2.0		1.8
	Income tax expense / (benefit)	(0.2)		(1.2)		(0.4)		(1.4)
	Net of income taxes	0.8		(0.3)		1.6		0.4
Total reclassifications for the period, net of income taxes		$	0.7	$	(0.3)	$	1.4	$	0.3

The changes in the components of Accumulated Other Comprehensive Loss during the six months ended June 30, 2020 are as follows:

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension and postretirement benefit obligations		Total
Balance at January 1, 2020	$	(0.4)	$	(36.5)	$	(36.9)
Other comprehensive loss before reclassifications	(0.1)		—		(0.1)
Amounts reclassified from AOCI to earnings	(0.2)		1.6		1.4
Net current period other comprehensive income / (loss)	(0.3)		1.6		1.3
Balance at June 30, 2020	$	(0.7)	$	(34.9)	$	(35.6)