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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Unrecognized Tax Benefits Roll Forward


$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	3.5	$	3.5
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(2.1)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	3.5

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:


Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Consolidated Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019





Gains and losses on cash flow hedges (Note 5):
	Interest expense	(1.0)		(1.1)		(1.2)



	Income tax expense	0.2		0.2		0.1
	Net of income taxes	(0.8)		(0.9)		(1.1)


	Income tax benefit from discontinued operations	—		—		(0.4)


Amortization of defined benefit pension items (Note 8):
	Other expense	2.5		1.3		0.2
	Income tax benefit	(0.6)		(0.3)		—
	Net of income taxes	1.9		1.0		0.2

Total reclassifications for the period, net of income taxes		$	1.1	$	0.1	$	(1.3)

Components of Income Tax Expense

DPL’s components of income tax expense for both continuing and discontinued operations were as follows:


	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax benefit
Federal - current	$	(5.5)	$	(45.1)	$	(22.0)
State and Local - current	—		(0.1)		0.6
Total current	(5.5)		(45.2)		(21.4)

Federal - deferred	4.4		38.7		14.1
State and local - deferred	0.4		1.1		1.1
Total deferred	4.8		39.8		15.2
Total tax benefit	$	(0.7)	$	(5.4)	$	(6.2)

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2021, 2020 and 2019:


	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	2.8	%	(13.1)	%	1.4	%
AFUDC - equity	3.3	%	(23.6)	%	(0.1)	%
Depreciation of flow-through differences	(29.0)	%	94.8	%	(28.2)	%
Amortization of investment tax credits	(0.6)	%	4.1	%	(0.3)	%



Other, net	(0.8)	%	1.2	%	(0.1)	%
Effective tax rate	(3.3)	%	84.4	%	(6.3)	%

Components of Deferred Tax Assets and Liabilities


	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(166.4)	$	(160.5)
Income taxes recoverable	13.6		14.4
Regulatory assets	(20.6)		(21.0)
Investment tax credit	0.6		0.6
Compensation and employee benefits	(3.4)		(1.7)
Intangibles	(0.4)		(0.4)
Long-term debt	(1.5)		(1.3)
Other (a)	(9.8)		(7.3)
Net non-current liabilities	$	(187.9)	$	(177.2)

(a) The Other caption includes deferred tax assets of $37.1 million in 2021 and $39.0 million in 2020 related to state and local tax net operating loss carryforwards, with related valuation allowances of $37.1 million in 2021 and $39.0 million in 2020. These net operating loss carryforwards expire from 2020 to 2037.

Tax expense / (benefit) credited to Accumulated other comprehensive loss

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	2021		2020		2019
Tax expense / (benefit)	$	2.2	$	(2.6)	$	(0.5)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Income Taxes [Line Items]