Restructuring

TVA is undertaking cost reduction initiatives with the goal of keeping rates low, keeping reliability high, and continuing to fulfill its broader mission of environmental stewardship and economic development. TVA’s current focus is on reducing operating and maintenance costs through further efficiency gains and streamlining the organization. TVA’s goal is to reduce operating and maintenance costs by $500 million by 2015 as compared to its 2013 budget. Certain employees will be eligible for severance payments as a result of these cost reduction initiatives. During the three and nine months ended June 30, 2014, TVA recorded expense for probable estimated severance. These amounts are included in Accounts payable and accrued liabilities on the June 30, 2014 Consolidated Balance Sheet. The table below summarizes the activity related to severance costs:



Severance Cost Liability Activity
	Three Months Ended June 30, 2014			Nine Months Ended June 30, 2014
Severance cost liability at beginning of period	$	32		$	—
Liabilities incurred during the period	21			56
Actual costs paid during the period	(7		)	(10		)
Severance cost liability at end of period	$	46		$	46