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. The goal is to reduce TVA’s operating and maintenance costs by $500 million by 2015 as compared to its 2013 budget. As part of these cost reduction initiatives, an organizational restructuring occurred in 2014, which resulted in approximately 2,000 position reductions achieved through attrition, elimination of vacant positions, and employees leaving TVA either voluntarily or involuntarily. Certain employees were eligible for severance payments as a result of these cost reduction initiatives. These severance amounts are included in Accounts payable and accrued liabilities on the December 31, 2014 and 2013 Consolidated Balance Sheets and the restructuring expenses are included in Operating and maintenance on the Consolidated Statements of Operations. The table below summarizes the activity related to severance costs:



Severance Cost Liability Activity
	Three Months Ended December 31, 2014			Three Months Ended December 31, 2013
Severance cost liability at beginning of period	$	45		$	—
Liabilities incurred during the period	—			12
Actual costs paid during the period	(40		)	—
Adjustments to estimate during the period	$	(1	)	$	—
Severance cost liability at end of period	$	4		$	12