Discontinued Operations

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 11 – Discontinued Operations

On January 1, 2016, DPL closed on the sale of DPLER, its competitive retail business. The sale agreement was signed on December 28, 2015 and DPL received $75.5 million of restricted cash on December 31, 2015 for the sale. This amount was shown as Restricted cash with the associated liability shown as "Deposit received on sale of DPLER" on the Balance Sheet as of December 31, 2015. Assets and liabilities related to DPLER were reclassified to "Assets held for sale" and "Liabilities held for sale" in the December 31, 2015 Condensed Consolidated Balance Sheet. We recorded a gain on this transaction of $49.2 million in the first quarter of 2016. The gain includes the impact of DPLER’s liability to DP&L that transferred with the sale on January 1, 2016 but was eliminated in consolidation at December 31, 2015. Deferred taxes and intercompany balances were not reclassified to held for sale.

Operating activities related to DPLER have been reclassified to "Discontinued operations" in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2015.

The following table summarizes the major categories of assets, liabilities at the dates indicated, and the revenues, cost of revenues, operating expenses and income tax of discontinued operations for the periods indicated:

$ in millions				December 31, 2015
Accounts receivable, net				$	31.0
Property, plant & equipment, net				4.6
Intangible assets, net				24.6
Other assets				2.0
Total assets of the disposal group classified as held for sale in the balance sheets				$	62.2
Accounts payable				$	0.8
Other liabilities				0.8
Total liabilities of the disposal group classified as held for sale in the balance sheets				$	1.6
	Three months ended March 31,
	2016			2015
Revenues	$	—		$	122.3
Cost of revenues	—			(111.7		)
Operating expenses	(0.7		)	(7.0		)
(Loss) profit on discontinued operations before income taxes	(0.7		)	3.6
Gain from disposal of discontinued operations	49.2			—
Income tax expense	18.9			1.7
Income on discontinued operations	$	29.6		$	1.9

DPLER purchased its power from DP&L during 2015. Prior to DPLER being presented as a discontinued operation, this purchased power and DP&L's corresponding wholesale revenue would have been eliminated in consolidation.

Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(0.7) million and $(7.2) million for the three months endedMarch 31, 2016 and 2015, respectively. Cash flows from investing activities for discontinued operations were $75.5 million and $(0.2) million for the three months endedMarch 31, 2016 and 2015, respectively. All cash generated from discontinued operations was paid to DPL through dividends for all periods presented.