XML 54 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2017
Entity Information [Line Items]  
Fair Value and Cost of Non-Derivative Instruments
The table below presents the fair value and cost of our non-derivative instruments at December 31, 2017 and 2016. See Note 6 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments.
 
 
December 31, 2017
 
December 31, 2016
$ in millions
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Assets
 
 
 
 
 
 
 
 
Money market funds
 
$
0.3

 
$
0.3

 
$
0.4

 
$
0.4

Equity securities
 
2.5

 
4.2

 
2.4

 
3.4

Debt securities
 
4.3

 
4.3

 
4.4

 
4.4

Hedge funds
 
0.1

 
0.2

 
—

 
0.1

Real estate
 
—

 
—

 
0.3

 
0.3

Tangible assets
 
0.1

 
0.1

 
0.1

 
0.1

Total assets
 
$
7.3

 
$
9.1

 
$
7.6

 
$
8.7

 
 
 
 
 
 
 
 
 
 
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Liabilities
 
 
 
 
 
 
 
 
Long-term debt (a)
 
$
1,704.8

 
$
1,819.3

 
$
1,858.4

 
$
1,907.7
Fair Value of Assets and Liabilities Measured on Recurring Basis
The fair value of assets and liabilities at December 31, 2017 and the respective category within the fair value hierarchy for DPL was determined as follows:
Assets and Liabilities at Fair Value
 
 
 
 
Level 1
 
Level 2
 
Level 3
$ in millions
 
Fair Value at December 31, 2017 (a)
 
Based on
Quoted Prices in
Active Markets
 
Other
observable
inputs
 
Unobservable inputs
Assets
 
 
 
 
 
 
 
 
Master trust assets
 
 
 
 
 
 
 
 
Money market funds
 
$
0.3

 
$
0.3

 
$
—

 
$
—

Equity securities
 
4.2

 
—

 
4.2

 
—

Debt securities
 
4.3

 
—

 
4.3

 
—

Hedge funds
 
0.2

 
—

 
0.2

 
—

Real estate
 
—

 
—

 
—

 
—

Tangible assets
 
0.1

 
—

 
0.1

 
—

Total Master trust assets
 
9.1

 
0.3

 
8.8

 
—

Derivative assets
 
 
 
 
 
 
 
 
Forward power contracts
 
10.8

 
—

 
10.8

 
—

Interest rate hedge
 
1.8

 
—

 
1.8

 
—

Natural gas
 
0.2

 
0.2

 
—

 
—

Total Derivative assets
 
12.8

 
0.2

 
12.6

 
—

 
 
 
 
 
 
 
 
 
Total assets
 
$
21.9

 
$
0.5

 
$
21.4

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
FTRs
 
$
0.3

 
$
—

 
$
—

 
$
0.3

Natural gas
 
0.1

 
0.1

 
—

 
—

Forward power contracts
 
14.9

 
—

 
14.9

 
—

Total derivative liabilities
 
15.3

 
0.1

 
14.9

 
0.3

Long-term debt (b)
 
1,819.3

 
—

 
1,801.5

 
17.8

 
 


 
 
 
 
 
 
Total liabilities
 
$
1,834.6

 
$
0.1

 
$
1,816.4

 
$
18.1



(a)
Includes credit valuation adjustment
(b)
Amounts exclude immaterial capital lease obligations

The fair value of assets and liabilities at December 31, 2016 and the respective category within the fair value hierarchy for DPL was determined as follows:
Assets and Liabilities at Fair Value
 
 
 
 
Level 1
 
Level 2
 
Level 3
$ in millions
 
Fair Value at December 31, 2016 (a)
 
Based on
Quoted Prices in
Active Markets
 
Other
observable
inputs
 
Unobservable inputs
Assets
 
 
 
 
 
 
 
 
Master trust assets
 
 
 
 
 
 
 
 
Money market funds
 
$
0.4

 
$
0.4

 
$
—

 
$
—

Equity securities
 
3.4

 
—

 
3.4

 
—

Debt securities
 
4.4

 
—

 
4.4

 
—

Hedge funds
 
0.1

 
—

 
0.1

 
—

Real estate
 
0.3

 
—

 
0.3

 
—

Tangible assets
 
0.1

 
—

 
0.1

 
—

Total Master trust assets
 
8.7

 
0.4

 
8.3

 
—

Derivative assets
 
 
 
 
 
 
 
 
Forward power contracts
 
19.5

 
—

 
19.5

 
—

Interest rate hedges
 
1.2

 
—

 
1.2

 
—

FTRs
 
0.1

 
—

 
—

 
0.1

Total derivative assets
 
20.8

 
—

 
20.7

 
0.1

 
 
 
 
 
 
 
 
 
Total assets
 
$
29.5

 
$
0.4

 
$
29.0

 
$
0.1

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Interest rate hedges
 
$
0.7

 
$
—

 
$
0.7

 
$
—

Forward power contracts
 
28.5

 
—

 
26.0

 
2.5

Total derivative liabilities
 
29.2

 
—

 
26.7

 
2.5

Long-term debt (b)
 
1,907.7

 
—

 
1,889.7

 
18.0

Fair value per table above
 
$
1,907.7

 
 
 
 
 
 
 
 


 
 
 
 
 
 
Total liabilities
 
$
1,936.9

 
$
—

 
$
1,916.4

 
$
20.5



(a)
Includes credit valuation adjustment
Fair Value Measurements, Nonrecurring
The following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarchy:
 
 
Measurement
 
Carrying
 
Fair Value
 
Gross
$ in millions
 
Date
 
Amount (c)
 
Level 1
 
Level 2
 
Level 3
 
Loss
Long-lived assets (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2017
AES Ohio Generation peakers
 
December 31, 2017
 
$
346.9

 
$
—

 
$
—

 
$
237.5

 
$
109.4

Stuart
 
March 31, 2017
 
$
42.4

 
$
—

 
$
—

 
$
3.3

 
$
39.1

Killen
 
March 31, 2017
 
$
35.2

 
$
—

 
$
—

 
$
7.9

 
27.3

 
 
 
 
 
 
 
 
 
 
 
 
$
175.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2016
Killen
 
December 31, 2016
 
$
118.2

 
$
—

 
$
—

 
$
42.8

 
$
75.4

Stuart
 
December 31, 2016
 
$
285.9

 
$
—

 
$
—

 
$
57.4

 
228.5

Miami Fort
 
December 31, 2016
 
$
185.9

 
$
—

 
$
—

 
$
36.5

 
149.4

Zimmer
 
December 31, 2016
 
$
168.4

 
$
—

 
$
—

 
$
23.7

 
144.7

Conesville
 
December 31, 2016
 
$
25.0

 
$
—

 
$
—

 
$
1.1

 
23.9

Hutchings peaking facilities
 
December 31, 2016
 
$
3.2

 
$
—

 
$
—

 
$
1.6

 
1.6

Killen
 
June 30, 2016
 
$
315.1

 
$
—

 
$
—

 
$
84.3

 
230.8

Certain peaking facilities
 
June 30, 2016
 
$
9.9

 
$
—

 
$
—

 
$
5.2

 
4.7

 
 
 
 
 
 
 
 
 
 
 
 
$
859.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2015
DP&L reporting unit
 
December 31, 2015
 
$
317.0

 
$
—

 
$
—

 
$
—

 
$
317.0



(a)
See Note 15 – Fixed-asset Impairments for further information
(b)
See Note 7 – Goodwill for further information
(c)
Carrying amount at date of valuation
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]
The following summarizes the significant unobservable inputs used in the Level 3 measurement on a non-recurring basis during the year ended December 31, 2016:
$ in millions
 
Measurement date
 
Fair value
 
Valuation technique
 
Unobservable input
 
Range (weighted average)
Long-lived assets held and used:
 
 
 
 
Year ended December 31, 2016
Killen
 
December 31, 2016
 
$
42.8

 
Discounted cash flow
 
Annual revenue growth
 
-14.2% to 2.9% (-8.0%)
 
 
 
 
 
 
 
 
Annual pre-tax operating margin
 
-56.6% to 42.4% (-15.5%)
 
 
 
 
 
 
 
 
Weighted-average cost of capital
 
10.0%
 
 
 
 
 
 
 
 
 
 
 
Stuart
 
December 31, 2016
 
$
57.4

 
Discounted cash flow
 
Annual revenue growth
 
-11.9% to 1.1% (-4.7%)
 
 
 
 
 
 
 
 
Annual pre-tax operating margin
 
-61.4% to 75.1% (8.0%)
 
 
 
 
 
 
 
 
Weighted-average cost of capital
 
10.0%
 
 
 
 
 
 
 
 
 
 
 
Miami Fort
 
December 31, 2016
 
$
36.5

 
Market value
 
Indicative offer price
 
 
 
 
 
 
 
 
 
 
 
 
 
Zimmer
 
December 31, 2016
 
$
23.7

 
Market value
 
Indicative offer price
 
 
 
 
 
 
 
 
 
 
 
 
 
Conesville
 
December 31, 2016
 
$
1.1

 
Discounted cash flow
 
Annual revenue growth
 
-19.3% to 10.9% (0.6%)
 
 
 
 
 
 
 
 
Annual pre-tax operating margin
 
-54.3% to 99.4% (20.2%)
 
 
 
 
 
 
 
 
Weighted-average cost of capital
 
N/A
 
 
 
 
 
 
 
 
 
 
 
Hutchings peaking facilities
 
December 31, 2016
 
$
1.6

 
Discounted cash flow
 
Annual revenue growth
 
-19.5% to -25.9% (-0.7%)

 
 
 
 
 
 
 
Annual pre-tax operating margin
 
-40.3% to 63.1% (12.1%)
 
 
 
 
 
 
 
 
Weighted-average cost of capital
 
7.0%
 
 
 
 
 
 
 
 
 
 
 
Killen
 
June 30, 2016
 
$
84.3

 
Discounted cash flow
 
Annual revenue growth
 
-11.0% to 13.0% (2.0%)
 
 
 
 
 
 
 
 
Annual pre-tax operating margin
 
-50.0% to 67.0% (6.0%)
 
 
 
 
 
 
 
 
Weighted-average cost of capital
 
11.0%
 
 
 
 
 
 
 
 
 
 
 
Certain peaking facilities
 
June 30, 2016
 
$
5.2

 
Discounted cash flow
 
Annual revenue growth
 
-22.0% to 17.0% (-3.0%)
 
 
 
 
 
 
 
 
Annual pre-tax operating margin
 
-29.0% to 24.0% (-4.0%)
 
 
 
 
 
 
 
 
Weighted-average cost of capital
 
7.0%
THE DAYTON POWER AND LIGHT COMPANY [Member]  
Entity Information [Line Items]  
Fair Value and Cost of Non-Derivative Instruments
The table below presents the fair value and cost of our non-derivative instruments at December 31, 2017 and 2016. See also Note 6 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments.
 
 
December 31, 2017
 
December 31, 2016
$ in millions
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Assets
 
 
 
 
 
 
 
 
Money market funds
 
$
0.3

 
$
0.3

 
$
0.4

 
$
0.4

Equity securities
 
2.5

 
4.2

 
2.4

 
3.4

Debt securities
 
4.3

 
4.3

 
4.4

 
4.4

Hedge funds
 
0.1

 
0.2

 
—

 
0.1

Real estate
 
—

 
—

 
0.3

 
0.3

Tangible assets
 
0.1

 
0.1

 
0.1

 
0.1

Total assets
 
$
7.3

 
$
9.1

 
$
7.6

 
$
8.7

 
 
 
 
 
 
 
 
 
 
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Liabilities
 
 
 
 
 
 
 
 
Long-term debt (a)
 
$
646.6

 
$
658.4

 
$
735.7

 
$
750.1
Fair Value of Assets and Liabilities Measured on Recurring Basis
The fair value of assets and liabilities at December 31, 2017 and the respective category within the fair value hierarchy for DP&L was determined as follows:
Assets and Liabilities at Fair Value
 
 
 
 
Level 1
 
Level 2
 
Level 3
$ in millions
 
Fair Value at December 31, 2017 (a)
 
Based on
Quoted Prices in
Active Markets
 
Other
observable
inputs
 
Unobservable inputs
Assets
 
 
 
 
 
 
 
 
Master trust assets
 
 
 
 
 
 
 
 
Money market funds
 
$
0.3

 
$
0.3

 
$
—

 
$
—

Equity securities
 
4.2

 
—

 
4.2

 
—

Debt securities
 
4.3

 
—

 
4.3

 
—

Hedge funds
 
0.2

 
—

 
0.2

 
—

Real estate
 
—

 
—

 
—

 
—

Tangible assets
 
0.1

 
—

 
0.1

 
—

Total Master trust assets
 
9.1

 
0.3

 
8.8

 
—

Derivative assets
 
 
 
 
 
 
 
 
Interest rate hedges
 
1.8

 
—

 
1.8

 
—

Total derivative assets
 
1.8

 
—

 
1.8

 
—

 
 
 
 
 
 
 
 
 
Total assets
 
$
10.9

 
$
0.3

 
$
10.6

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Long-term debt
 
$
658.4

 
$
—

 
$
640.6

 
$
17.8

 
 


 


 


 


Total liabilities
 
$
658.4

 
$
—

 
$
640.6

 
$
17.8



(a)
Includes credit valuation adjustment
(b)
Amounts exclude immaterial capital lease obligations
The fair value of assets and liabilities at December 31, 2016 and the respective category within the fair value hierarchy for DP&L was determined as follows:
Assets and Liabilities at Fair Value
 
 
 
 
Level 1
 
Level 2
 
Level 3
$ in millions
 
Fair Value at December 31, 2016 (a)
 
Based on
Quoted Prices in
Active Markets
 
Other
observable
inputs
 
Unobservable inputs
Assets
 
 
 
 
 
 
 
 
Master trust assets
 
 
 
 
 
 
 
 
Money market funds
 
$
0.4

 
$
0.4

 
$
—

 
$
—

Equity securities
 
3.4

 
—

 
3.4

 
—

Debt securities
 
4.4

 
—

 
4.4

 
—

Hedge funds
 
0.1

 
—

 
0.1

 
—

Real estate
 
0.3

 
—

 
0.3

 
—

Tangible assets
 
0.1

 
—

 
0.1

 
—

 
 
 
 
 
 
 
 
 
Total assets
 
$
8.7

 
$
0.4

 
$
8.3

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Long-term debt (b)
 
$
750.1

 
$
—

 
$
732.1

 
$
18.0

 
 


 
 
 
 
 
 
Total liabilities
 
$
750.1

 
$
—

 
$
732.1

 
$
18.0



(a)
Includes credit valuation adjustment
(b)
Amounts exclude immaterial capital lease obligations