Income Taxes

3 Months Ended

Mar. 31, 2017

The following table details the effective tax rates for the three months ended March 31, 2017 and 2016.



	Three months ended
	March 31,
	2017	2016
DPL	37.9%	21.4%

Income tax expense for the three months ended March 31, 2017 and 2016 was calculated using the estimated annual effective income tax rates for 2017 and 2016 of 37.6% and 20.6%, respectively. For the three months ended March 31, 2017 and 2016, 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.

The increase in the annual effective rate compared to the same period in 2016 is primarily due to an increase of forecasted tax expense relating to flow-through depreciation and a reduction in the projected manufacturer's production deduction.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Income Taxes

The following table details the effective tax rates for the three months ended March 31, 2017 and 2016.



	Three months ended
	March 31,
	2017	2016
DP&L	34.4%	26.9%

Income tax expense for the three months ended March 31, 2017 and 2016 was calculated using the estimated annual effective income tax rates for 2017 and 2016 of 33.8% and 27.0%, respectively. For the three months ended March 31, 2017 and 2016 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.