SEVERANCE

As part of its strategic planning processes, Duke Energy implemented targeted cost savings initiatives during 2016 and 2015 aimed at reducing operations and maintenance expense. The initiatives included efforts to reduce costs through the standardization of processes and systems, leveraging technology and workforce optimization throughout the company.

During 2016, Duke Energy and Piedmont announced severance plans covering certain eligible employees whose employment will be involuntarily terminated without cause as a result of Duke Energy's acquisition of Piedmont. These reductions continue to be implemented and are a part of the synergies expected to be realized with the acquisition. Refer to Note 2 for additional information on the Piedmont acquisition.

Severance benefit costs for initiatives and plans discussed above were accrued for a total of approximately 100 employees in 2017, 600 employees in 2016 and 900 employees in 2015. The following table presents the direct and allocated severance and related expenses recorded by the Duke Energy Registrants. Amounts are included within Operation, maintenance and other on the Consolidated Statements of Operations.



			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont^(a)
Year Ended December 31, 2017	$	15	$	2	$	2	$	1	$	1	$	—	$	1	$	9
Year Ended December 31, 2016	118		39		40		23		17		3		7
Year Ended December 31, 2015	142		93		36		28		8		2		6


(a)	Piedmont severance benefit costs were $3 million for the two months ended December 31, 2016, and $19 million for the year ended October 31, 2016. Piedmont did not record any severance benefit costs for the year ended October 31, 2015.

The table below presents the severance liability for past and ongoing severance plans including the plans described above. Amounts for Duke Energy Indiana and Duke Energy Ohio are not material.



				Duke						Duke			Duke
	Duke			Energy			Progress			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Piedmont
Balance at December 31, 2016	$	79		$	13		$	14		$	6		$	8		$	20
Provision/Adjustments	17			2			—			—			—			9
Cash Reductions	(77		)	(10		)	(12		)	(5		)	(8		)	(24		)
Balance at December 31, 2017	$	19		$	5		$	2		$	1		$	—		$	5