SEVERANCE

In conjunction with the Acquisition, certain Piedmont senior executives terminated their employment from Piedmont effective with the closing of the Acquisition. The severance benefits owed to these executives were provided under contracts between the individual and Piedmont, effective upon a change in control. These severances will be paid in April 2017.

In September 2016, Piedmont announced a severance plan covering certain eligible employees whose employment will be involuntarily terminated without cause during the twelve-month period (or twenty-four months for certain senior level employees) following the close of the Acquisition. Upon the close of the Acquisition, positions within Piedmont began to be eliminated. These reductions are a part of the synergies expected to be realized with the Acquisition. The severance benefit payments will be made in accordance with the severance plan.

We recorded $2.5 million severance and related expenses that are included in "Operations, maintenance and other" on the Condensed Consolidated Statements of Operations and Comprehensive Income for the two months ended December 31, 2016. The table below presents the severance liability that is included in "Other" within "Current Liabilities" on the Condensed Consolidated Balance Sheets. Additional accruals can continue through October 3, 2018 as more positions are eliminated.



(in millions)
Balance at October 31, 2016	$	18.7
Net Provisions/Adjustments	1.4
Cash Reductions	—
Balance at December 31, 2016	$	20.1