XML 57 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Taxes [Line Items]  
Components of Income Tax Expense
DPL’s components of income tax expense on continuing operations were as follows:
 
 
Years ended December 31,
$ in millions
 
2017
 
2016
 
2015
Computation of tax expense / (benefit)
 
 
 
 
 
 
Federal income tax benefit (a)
 
$
(42.0
)
 
$
(277.6
)
 
$
(81.0
)
Increases (decreases) in tax resulting from:
 
 
 
 
 
 
State income taxes, net of federal effect
 
(0.5
)
 
(1.0
)
 
(0.1
)
Depreciation of AFUDC - Equity
 
0.8

 
2.7

 
(3.5
)
Investment tax credit amortized
 
(0.3
)
 
(0.4
)
 
(0.5
)
Section 199 - domestic production deduction
 
—

 
(4.5
)
 
(4.1
)
Non-deductible goodwill impairment
 
—

 
—

 
111.0

Accrual (settlement) for open tax years
 
(0.4
)
 
2.2

 
—

Other, net (b)
 
17.1

 
(0.2
)
 
(1.8
)
Tax expense / (benefit)
 
$
(25.3
)
 
$
(278.8
)
 
$
20.0


 

 

 

Components of tax expense / (benefit)
 
 
 
 
 
 
Federal - current
 
$
(2.9
)
 
$
14.7

 
$
30.1

State and Local - current
 
—

 
0.6

 
0.8

Total current
 
(2.9
)
 
15.3

 
30.9

 
 
 
 
 
 
 
Federal - deferred
 
(22.0
)
 
(290.2
)
 
(9.9
)
State and local - deferred
 
(0.4
)
 
(3.9
)
 
(1.0
)
Total deferred
 
(22.4
)
 
(294.1
)
 
(10.9
)
Tax expense / (benefit)
 
$
(25.3
)
 
$
(278.8
)
 
$
20.0



(a)
The statutory tax rate of 35% was applied to pre-tax earnings.
(b)
Includes expense / (benefit) of $3.5 million, $(0.3) million and $0.2 million in the years ended December 31, 2017, 2016, and 2015, respectively, of income tax related to adjustments from prior years. The 2017 tax year also includes a one-time remeasurement of deferred tax expense related to the recent enactment of the TCJA of $13.7 million.
Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to DPL's effective tax rate, as a percentage of income from continuing operations before taxes for the years ended December 31, 2017, 2016 and 2015:
 
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Statutory Federal tax rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State taxes, net of Federal tax benefit
 
0.4
 %
 
0.1
 %
 
0.1
 %
AFUDC - Equity
 
(0.7
)%
 
(0.3
)%
 
1.5
 %
Amortization of investment tax credits
 
0.3
 %
 
—
 %
 
0.2
 %
Section 199 - domestic production deduction
 
—
 %
 
0.6
 %
 
1.8
 %
Non-deductible goodwill impairment
 
—
 %
 
—
 %
 
(48.0
)%
Other, net (a)
 
(13.9
)%
 
(0.3
)%
 
0.8
 %
Effective tax rate
 
21.1
 %
 
35.1
 %
 
(8.6
)%


(a)
In 2017, this is primarily a result of the application of the TCJA.
Components of Deferred Tax Assets and Liabilities
Components of Deferred Tax Assets and Liabilities
 
 
December 31,
$ in millions
 
2017
 
2016
Net non-current assets / (liabilities)
 
 
 
 
Depreciation / property basis
 
$
(103.6
)
 
$
(234.8
)
Income taxes recoverable / (payable)
 
11.0

 
(11.9
)
Regulatory assets
 
(23.1
)
 
(7.8
)
Investment tax credit
 
0.5

 
0.5

Compensation and employee benefits
 
11.3

 
5.5

Intangibles
 
(0.4
)
 
(1.5
)
Long-term debt
 
(0.2
)
 
(0.7
)
Other (a)
 
(6.7
)
 
(1.7
)
Net non-current liabilities
 
$
(111.2
)
 
$
(252.4
)


(a)
The Other caption includes deferred tax assets of $36.3 million in 2017 and $38.3 million in 2016 related to state and local tax net operating loss carryforwards, net of related valuation allowances of $36.3 million in 2017 and $38.3 million in 2016. These net operating loss carryforwards expire from 2018 to 2037.
Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block)
The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.
 
 
Years ended December 31,
$ in millions
 
2017
 
2016
 
2015
Tax expense / (benefit)
 
$
0.2

 
$
(9.6
)
 
$
6.3
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
 
$ in millions
 
Balance at December 31, 2015
$
3.0

Calendar 2016
 
Tax positions taken during prior period
2.2

Lapse of Statute of Limitations
(1.5
)
Balance at December 31, 2016
3.7

Calendar 2017
 
Tax positions taken during prior period
—

Lapse of Statute of Limitations
(0.2
)
Balance at December 31, 2017
$
3.5
THE DAYTON POWER AND LIGHT COMPANY [Member]  
Income Taxes [Line Items]  
Components of Income Tax Expense
DP&L’s components of income tax expense on continuing operations were as follows:
 
 
Years ended December 31,
$ in millions
 
2017
 
2016
 
2015
Computation of tax expense
 
 
 
 
 
 
Federal income tax expense (a)
 
$
31.0

 
$
50.1

 
$
65.8

Increases (decreases) in tax resulting from:
 
 
 
 
 
 
State income taxes, net of federal effect
 
0.4

 
0.4

 
0.4

Depreciation of AFUDC - Equity
 
1.2

 
3.0

 
(3.1
)
Investment tax credit amortized
 
(0.3
)
 
(0.4
)
 
(0.4
)
Accrual (settlement) for open tax years
 
(0.5
)
 
3.4

 
—

Other, net (b)
 
(0.7
)
 
(10.5
)
 
(3.7
)
Total tax expense
 
$
31.1

 
$
46.0

 
$
59.0


 

 

 

Components of tax expense
 
 
 
 
 
 
Federal - current
 
$
13.5

 
$
37.7

 
$
68.3

State and Local - current
 
0.2

 
0.5

 
0.9

Total current
 
13.7

 
38.2

 
69.2

 
 
 
 
 
 
 
Federal - deferred
 
17.0

 
7.7

 
(9.9
)
State and local - deferred
 
0.4

 
0.1

 
(0.3
)
Total deferred
 
17.4

 
7.8

 
(10.2
)
Total tax expense
 
$
31.1

 
$
46.0

 
$
59.0



(a)
The statutory tax rate of 35% was applied to pre-tax earnings.
(b)
Includes expense / (benefit) of $0.0 million, $(0.4) million and $0.1 million in the years ended December 31, 2017, 2016 and 2015, respectively, of income tax related to adjustments from prior years.
Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to DP&L's effective tax rate, as a percentage of income from continuing operations before taxes for the years ended December 31, 2017, 2016 and 2015:
 
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Statutory Federal tax rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State taxes, net of Federal tax benefit
 
0.4
 %
 
0.3
 %
 
0.2
 %
AFUDC - Equity
 
1.4
 %
 
2.1
 %
 
(1.7
)%
Amortization of investment tax credits
 
(0.4
)%
 
(0.3
)%
 
(0.2
)%
Other - net
 
(1.3
)%
 
(5.1
)%
 
(2.1
)%
Effective tax rate
 
35.1
 %
 
32.0
 %
 
31.2
 %
Components of Deferred Tax Assets and Liabilities
Components of Deferred Tax Assets and Liabilities
 
 
December 31,
$ in millions
 
2017
 
2016
Net non-current assets / (liabilities)
 
 
 
 
Depreciation / property basis
 
$
(126.5
)
 
$
(238.0
)
Income taxes recoverable / (payable)
 
11.0

 
(12.2
)
Regulatory assets
 
(23.9
)
 
(9.1
)
Investment tax credit
 
0.4

 
0.4

Compensation and employee benefits
 
17.6

 
(0.3
)
Other
 
(9.6
)
 
(7.7
)
Net non-current liabilities
 
$
(131.0
)
 
$
(266.9
)
Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block)
The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.
 
 
Years ended December 31,
$ in millions
 
2017
 
2016
 
2015
Tax expense / (benefit)
 
$
4.0

 
$
(7.0
)
 
$
7.5
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits for DP&L is as follows:
$ in millions
 
Balance at December 31, 2015
$
3.0

Calendar 2016
 
Tax positions taken during prior period
3.4

Lapse of Statute of Limitations
(1.5
)
Balance at December 31, 2016
4.9

Calendar 2017
 
Tax positions taken during prior period
—

Lapse of Statute of Limitations
(0.1
)
Balance at December 31, 2017
$
4.8