SEVERANCE

During 2018, Duke Energy reviewed its operations and identified opportunities for improvement to better serve its customers. This operational review included the company's workforce strategy and staffing levels to ensure the company is staffed with the right skillsets and number of teammates to execute the long-term vision for Duke Energy. As such, Duke Energy extended voluntary and involuntary severance benefits to certain employees in specific areas as a part of workforce planning and digital transformation efforts.

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 continued into 2017 and were 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 charges for initiatives and plans discussed above were accrued for a total of approximately 1,900 employees in 2018, 100 employees in 2017 and 600 employees in 2016. The following table presents the direct and allocated severance and related charges 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, 2018	$	187	$	102	$	69	$	52	$	17	$	6	$	7	$	2
Year Ended December 31, 2017	15		2		2		1		1		—		1		9
Year Ended December 31, 2016	118		39		40		23		17		3		7


(a)	Piedmont severance benefit charges were $3 million for the two months ended December 31, 2016, and $19 million for the year ended October 31, 2016.

The table below presents the severance liability for past and ongoing severance plans including the plans described above.



				Duke						Duke		Duke			Duke		Duke
	Duke			Energy			Progress			Energy		Energy			Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress		Florida			Ohio		Indiana		Piedmont
Balance at December 31, 2017	$	19		$	5		$	2		$	1	$	—		$	—	$	—	$	5
Provision/Adjustments	200			98			50			40		10			2		2		—
Cash Reductions	(14		)	(3		)	(1		)	—		(1		)	—		—		(5		)
Balance at December 31, 2018	$	205		$	100		$	51		$	41	$	9		$	2	$	2	$	—