Income Taxes

3 Months Ended

Mar. 31, 2016

Note 6 – Income Taxes

The following table details the effective tax rates for the three months ended March 31, 2016 and 2015.



	Three months ended
	March 31,
	2016	2015
DPL	21.4%	29.1%

Income tax expense for the three months ended March 31, 2016 and 2015 was calculated using the estimated annual effective income tax rates for 2016 and 2015 of 20.6% and 31.1%, respectively. For the three months ended March 31, 2016 and 2015, management estimated the annual effective tax rate based on its forecast of annual pre-tax income. To the extent that actual pre-tax results for the year differ from the forecasts applied to the most recent interim period, the rates estimated could be materially different from the actual effective tax rates.

For the three months ended March 31, 2016, DPL’s current period effective tax rate was higher than the estimated annual effective rate primarily due to the impact of rounding. The decrease in the annual effective rate compared to the same period in 2015 is primarily due to a lower forecasted pre-tax income in the 2016 tax year.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Income Taxes

Note 6 – Income Taxes

The following table details the effective tax rates for the three months ended March 31, 2016 and 2015.



	Three months ended
	March 31,
	2016	2015
DP&L	26.9%	29.0%

Income tax expense for the three months ended March 31, 2016 and 2015 was calculated using the estimated annual effective income tax rates for 2016 and 2015 of 27.0% and 29.4%, respectively. For the three months ended March 31, 2016 and 2015 management estimated the annual effective tax rate based on its forecast of annual pre-tax income. To the extent that actual pre-tax results for the year differ from the forecasts applied to the most recent interim period, the rates estimated could be materially different from the actual effective tax rates.

For the three months ended March 31, 2016, DP&L’s current period effective tax rate was less than the estimated annual effective rate primarily due to the deduction for the preferred stock dividends. The decrease in the annual effective rate compared to the same period in 2015 is primarily due to a lower forecasted pre-tax income in the 2016 tax year.