Income Taxes

3 Months Ended

Mar. 31, 2015

5. Income Taxes

The following table details the effective tax rates for the three months ended March 31, 2015 and 2014.

Income tax expense for the three months ended March 31, 2015 and 2014 was calculated using the estimated annual effective income tax rates for 2015 and 2014 of 31.1% and (65.8)%, respectively. For the three months ended March 31, 2015 and March 31, 2014, 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, 2015, DPL’s current period effective rate was less than the estimated annual effective rate due to a discrete adjustment that was recorded to properly reflect the filed 2013 state income tax returns. The increase in the effective rate compared to the same period in 2014 is primarily due to not having a non-deductible goodwill impairment in 2015.

DP&L [Member]

Income Taxes

5. Income Taxes

The following table details the effective tax rates for the three months ended March 31, 2015 and 2014.

Income tax expense for the three months ended March 31, 2015 and 2014 was calculated using the estimated annual effective income tax rates for 2015 and 2014 of 29.4% and 30.6%, respectively. For the three months ended March 31, 2015 and 2014 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, 2015, DP&L’s current period effective rate is less than the estimated annual effective rate due to a discrete adjustment that was recorded to properly reflect the filed 2013 state income tax returns and the deduction for the preferred stock dividends.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Three months ended March 31,