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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Taxes [Line Items]  
Income Taxes INCOME TAXES
DPL’s components of income tax expense for both continuing and discontinued operations were as follows:
Years ended December 31,
$ in millions202220212020
Components of tax benefit
Federal - current$(7.6)$(5.5)$(45.1)
State and Local - current— — (0.1)
Total current(7.6)(5.5)(45.2)
Federal - deferred(2.1)4.4 38.7 
State and local - deferred0.1 0.4 1.1 
Total deferred(2.0)4.8 39.8 
Total tax benefit$(9.6)$(0.7)$(5.4)

Effective and Statutory Rate Reconciliation
The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes:
Years ended December 31,
202220212020
Statutory Federal tax rate21.0 %21.0 %21.0 %
State taxes, net of Federal tax benefit(1.6)%2.8 %(13.1)%
AFUDC - equity2.5 %3.3 %(23.6)%
Depreciation of flow-through differences43.8 %(29.0)%94.8 %
Amortization of investment tax credits0.1 %(0.6)%4.1 %
Other, net1.3 %(0.8)%1.2 %
Effective tax rate67.1 %(3.3)%84.4 %

Deferred Income Taxes
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property.

The components of our deferred taxes are as follows:
December 31,
$ in millions20222021
Net non-current assets / (liabilities)
Depreciation / property basis$(185.5)$(166.4)
Income taxes recoverable9.2 13.6 
Regulatory assets(22.8)(20.6)
Investment tax credit0.1 0.6 
Compensation and employee benefits(2.8)(3.4)
Intangibles— (0.4)
Long-term debt5.1 (1.5)
Other (a)
(2.3)(9.8)
Net non-current liabilities$(199.0)$(187.9)

(a)    The Other caption includes deferred tax assets of $36.6 million in 2022 and $37.1 million in 2021 related to state and local tax net operating loss carryforwards, with related valuation allowances of $36.6 million in 2022 and $37.1 million in 2021. These net operating loss carryforwards expire from 2020 to 2037.
During the year ended December 31, 2021, DPL received a payment from AES of $17.5 million against its tax receivable balance as part of a $150.0 million contribution from AES. During the year ended December 31, 2020, DPL received a payment from AES of $52.0 million against its tax receivable balance as part of a $150.0 million contribution from AES. See Note 9 – SHAREHOLDER'S DEFICIT for additional information.

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 millions202220212020
Tax expense / (benefit)$0.8 $2.2 $(2.6)

Uncertain Tax Positions
We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits did not change in 2022 and was $0.4 million at December 31, 2022 and 2021.

The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2022 is estimated to be $0.0 million.

The following table presents the changes to our uncertain tax positions:
$ in millions202220212020
Unrecognized tax benefits at January 1$0.4 $1.4 $3.5 
Gross increases - current period tax positions— — — 
Gross decreases - prior period tax positions— (1.0)(2.1)
Unrecognized tax benefits at December 31$0.4 $0.4 $1.4 

Tax years subsequent to 2012 remain open to examination by taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax positions. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits are subject to significant uncertainty. It is possible that the ultimate outcome of future examinations may exceed our provision for current unrecognized tax benefits.

We recognize interest and penalties related to unrecognized tax benefits in Income tax benefit. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented.

DPL is no longer subject to U.S. federal income tax examinations for tax years through 2012, but is open for all subsequent periods. DPL is no longer subject to state income tax examinations for tax years through 2017 but is open for all subsequent periods.
THE DAYTON POWER AND LIGHT COMPANY [Member]  
Income Taxes [Line Items]  
Income Taxes INCOME TAXES
AES Ohio’s components of income tax expense were as follows:
Years ended December 31,
$ in millions202220212020
Components of tax expense / (benefit)
Federal - current$(0.8)$1.1 $3.5 
State and Local - current— 0.1 0.1 
Total current(0.8)1.2 3.6 
Federal - deferred(2.4)4.1 2.4 
State and local - deferred0.1 0.4 1.0 
Total deferred(2.3)4.5 3.4 
Tax expense / (benefit)$(3.1)$5.7 $7.0 
Effective and Statutory Rate Reconciliation
The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes:
Years ended December 31,
202220212020
Statutory Federal tax rate21.0 %21.0 %21.0 %
State taxes, net of Federal tax benefit1.4 %1.1 %1.5 %
AFUDC - Equity(2.2)%1.3 %2.6 %
Amortization of investment tax credits(0.1)%(0.2)%(0.5)%
Depreciation of flow-through differences(39.4)%(11.7)%(10.6)%
Change in tax reserves— %(0.1)%(6.1)%
Other - net(0.3)%(0.6)%4.1 %
Effective tax rate(19.6)%10.8 %12.0 %

Deferred Income Taxes
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property.

The components of our deferred taxes are as follows:
December 31,
$ in millions20222021
Net non-current assets / (liabilities)
Depreciation / property basis$(181.3)$(167.7)
Income taxes recoverable9.2 13.6 
Regulatory assets(22.8)(21.4)
Investment tax credit0.1 0.5 
Compensation and employee benefits(3.1)(3.4)
Other3.0 (5.0)
Net non-current liabilities$(194.9)$(183.4)

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 millions202220212020
Tax expense / (benefit)$1.5 $2.9 $(2.3)

Uncertain Tax Positions
We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits did not change in 2022 and was $0.4 million at December 31, 2022 and December 31, 2021.

The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2022 is estimated to be $0.0 million.

The following table presents the changes to our uncertain tax positions:
$ in millions202220212020
Unrecognized tax benefits at January 1$0.4 $1.4 $4.8 
Gross increases - current period tax positions— — — 
Gross decreases - prior period tax positions— (1.0)(3.4)
Unrecognized tax benefits at December 31$0.4 $0.4 $1.4 
Tax years subsequent to 2012 remain open to examination by taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax positions. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits are subject to significant uncertainty. It is possible that the ultimate outcome of future examinations may exceed our provision for current unrecognized tax benefits.

We recognize interest and penalties related to unrecognized tax benefits in Income tax benefit. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented.

AES Ohio is no longer subject to U.S. federal income tax examinations for tax years through 2012, but is open for all subsequent periods. AES Ohio is no longer subject to state income tax examinations for tax years through 2017, but is open for all subsequent periods.