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Equity
12 Months Ended
Dec. 31, 2016
Entity Information [Line Items]  
Equity
Equity

Redeemable Preferred Stock of Subsidiary
DP&L had 228,508 shares of $100 par value preferred stock outstanding at December 31, 2015 and prior to the preferred stock redemption on October 13, 2016 (see below). The table below details the preferred shares outstanding at December 31, 2016 and 2015:
 
 
 
 
 
 
 
 
Carrying Value (b)
($ in millions)
 
 
Preferred
Stock
Rate
 
Redemption price
($ per share)
 
Shares
Outstanding (a)
 
December 31, 2016
 
December 31, 2015
DP&L Series A
 
3.75%
 
$
102.50

 
93,280

 
$

 
$
7.4

DP&L Series B
 
3.75%
 
$
103.00

 
69,398

 

 
5.6

DP&L Series C
 
3.90%
 
$
101.00

 
65,830

 

 
5.4

Total
 
 
 
 
 
228,508

 
$

 
$
18.4



(a)
DP&L's preferred stock was redeemed in October 2016. See below for more information.
(b)
Carrying value is fair value at the Merger date plus cumulative accrued dividends, of which there were none at December 31, 2016 and 2015.

DP&L’s Amended Articles of Incorporation contain provisions that permitted preferred stockholders to elect members of the Board of Directors in the event that cumulative dividends on the preferred stock are in arrears in an aggregate amount equivalent to at least four full quarterly dividends. Since this potential redemption-triggering event was not solely within the control of DP&L, the preferred stock was presented on the Consolidated Balance Sheets as “Redeemable Preferred Stock” in a manner consistent with temporary equity.

On October 13, 2016 (the "Redemption Date"), DPL's subsidiary, DP&L redeemed all of its issued and outstanding preferred stock, consisting of the following series: Preferred Stock, 3.75% Series A, Cumulative (the “Series A Stock”); Preferred Stock, 3.75% Series B, Cumulative (the “Series B Stock”); and Preferred Stock, 3.90% Series C, Cumulative (the “Series C Stock” and, together with the Series A Stock and the Series B Stock, the “Preferred Stock”). On the Redemption Date, the Preferred Stock of each series was redeemed at the following prices as specified in DP&L’s Amended and Restated Articles of Incorporation, plus, in each case an amount equal to all accrued dividends payable with respect to such Preferred Stock to the Redemption Date: a price of $102.50 per share for the Series A Stock, a price of $103.00 per share for the Series B Stock, and a price of $101.00 per share for the Series C Stock. Dividends on the Preferred Stock ceased to accrue on the Redemption Date. Upon redemption, the Preferred Stock was no longer outstanding, and all rights of the holders thereof as shareholders of DP&L, except the right to payment of the redemption price, ceased to exist. The difference between the carrying value of the Redeemable Preferred Stock of Subsidiary and the redemption amount was charged to Other paid-in capital.

Dividend Restrictions
DPL’s Amended Articles of Incorporation (the Articles) contain provisions which state that DPL may not make a distribution to its shareholder or make a loan to any of its affiliates (other than its subsidiaries), unless: (a) there exists no Event of Default (as defined in the Articles) and no such Event of Default would result from the making of the distribution or loan; and either (b)(i) at the time of, and/or as a result of, the distribution or loan, DPL’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, (b)(ii) if such ratios are not within the parameters, DPL’s senior long-term debt rating from one of the three major credit rating agencies is at least investment grade. Further, the restrictions on the payment of distributions to a shareholder and the making of loans to its affiliates (other than subsidiaries) cease to be in effect if the three major credit rating agencies confirm that a lowering of DPL’s senior long-term debt rating below investment grade by the credit rating agencies would not occur without these restrictions.

Common Stock
Effective on the Merger date, DPL adopted Amended Articles of Incorporation provided for 1,500 authorized common shares, of which one share is outstanding at December 31, 2016.

As described above, DPL’s Amended Articles of Incorporation contain restrictions on DPL’s ability to make dividends, distributions and affiliate loans (other than to its subsidiaries), including restrictions of making such dividends, distributions and loans if certain financial ratios exceed specified levels and DPL’s senior long-term debt rating from a rating agency is below investment grade. As of December 31, 2016, DPL’s leverage ratio was at 1.45 to 1.00 and DPL’s senior long-term debt rating from all three major credit rating agencies was below investment grade. As a result, as of December 31, 2016, DPL was prohibited under its Articles of Incorporation from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

DP&L has 250,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2016. All common shares are held by DP&L’s parent, DPL.

As part of the PUCO’s approval of the Merger, DP&L agreed to maintain a capital structure that includes an equity ratio of at least 50 percent and not to have a negative retained earnings balance. After the fixed-asset impairments recorded during the second and fourth quarters of 2016 and as of December 31, 2016, DP&L's equity ratio was 32% and its retained earnings balance was negative. It is unknown what impact, if any, this will have on DP&L.
THE DAYTON POWER AND LIGHT COMPANY [Member]  
Entity Information [Line Items]  
Equity
Equity

Redeemable Preferred Stock
DP&L had 228,508 shares of $100 par value preferred stock outstanding at December 31, 2015 and prior to the preferred stock redemption on October 13, 2016 (see below).4,000,000 shares authorized, of which 228,508 were outstanding at December 31, 2015. DP&L also has $25 par value preferred stock, 4,000,000 shares authorized, none of which was outstanding at December 31, 2016. The table below details the preferred shares outstanding at December 31, 2016 and 2015:
 
 
 
 
 
 
 
 
Par Value
($ in millions)
 
 
Preferred
Stock
Rate
 
Redemption price
($ per share)
 
Shares
Outstanding (a)
 
December 31, 2016
 
December 31, 2015
DP&L Series A
 
3.75%
 
$
102.50

 
93,280

 
$

 
$
9.3

DP&L Series B
 
3.75%
 
$
103.00

 
69,398

 

 
7.0

DP&L Series C
 
3.90%
 
$
101.00

 
65,830

 

 
6.6

Total
 
 
 
 
 
228,508

 
$

 
$
22.9



(a)
DP&L's preferred stock was redeemed in October 2016. See below for more information.

DP&L’s Amended Articles of Incorporation contain provisions that permitted preferred stockholders to elect members of the Board of Directors in the event that cumulative dividends on the preferred stock are in arrears in an aggregate amount equivalent to at least four full quarterly dividends. Since this potential redemption-triggering event was not solely within the control of DP&L, the preferred stock was presented on the Consolidated Balance Sheets as “Redeemable Preferred Stock” in a manner consistent with temporary equity.

On October 13, 2016 (the "Redemption Date"), DP&L redeemed all of its issued and outstanding preferred stock, consisting of the following series: Preferred Stock, 3.75% Series A, Cumulative (the “Series A Stock”); Preferred Stock, 3.75% Series B, Cumulative (the “Series B Stock”); and Preferred Stock, 3.90% Series C, Cumulative (the “Series C Stock” and, together with the Series A Stock and the Series B Stock, the “Preferred Stock”). On the Redemption Date, the Preferred Stock of each series was redeemed at the following prices as specified in DP&L’s Amended and Restated Articles of Incorporation, plus, in each case an amount equal to all accrued dividends payable with respect to such Preferred Stock to the Redemption Date: a price of $102.50 per share for the Series A Stock, a price of $103.00 per share for the Series B Stock, and a price of $101.00 per share for the Series C Stock. Dividends on the Preferred Stock ceased to accrue on the Redemption Date. Upon redemption, the Preferred Stock was no longer outstanding, and all rights of the holders thereof as shareholders of DP&L, except the right to payment of the redemption price, ceased to exist. The difference between the carrying value of the Redeemable Preferred Stock of Subsidiary and the redemption amount was charged to Other paid-in capital.

Common Stock
DP&L has 250,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2016. All common shares are held by DP&L’s parent, DPL.

As part of the PUCO’s approval of the Merger, DP&L agreed to maintain a capital structure that includes an equity ratio of at least 50 percent and not to have a negative retained earnings balance. After the fixed-asset impairments recorded during the second and fourth quarters of 2016 and as of December 31, 2016, DP&L's equity ratio was 32% and its retained earnings balance was negative. It is unknown what impact, if any, this will have on DP&L.

Equity settlement of related party payable
DP&L settled a $7.5 million payable to DPL relating to income taxes. This payable balance was settled through equity and DPL's investment in DP&L was increased by $7.5 million as consideration for extinguishing the payable.