Earnings Per Share

9 Months Ended

Sep. 30, 2012

12. Earnings per Share

Basic EPS is based on the weighted-average number of DPL common shares outstanding during the year. Diluted EPS is based on the weighted-average number of DPL common and common-equivalent shares outstanding during the year, except in periods where the inclusion of such common-equivalent shares is anti-dilutive. Excluded from outstanding shares for these weighted-average computations during 2011 were shares held by DP&L’s Master Trust Plan for deferred compensation and unreleased shares held by DPL’s ESOP.

The common-equivalent shares excluded from the calculation of diluted EPS, because they were anti-dilutive, were not material for the three and nine months ended September 30, 2011. Effective with the Merger with AES, DPL is an indirectly wholly owned subsidiary of AES and earnings per share information is no longer required.

The following illustrates the reconciliation of the numerators and denominators of the basic and diluted EPS computations:

Successor

Predecessor

Three Months Ended
September 30, 2012

Three Months Ended
September 30, 2011

$ and shares in millions except

Per

per share amounts

Income

Basic EPS

N/A

67.1

115.0

0.6

Effect of Dilutive

Securities:

Warrants

N/A

0.3

Stock options, performance

and restricted shares

N/A

0.2

Diluted EPS

N/A

67.1

115.5

0.6

Successor

Predecessor

Nine Months Ended
September 30, 2012

Nine Months Ended
September 30, 2011