Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 15

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 15
Chunk 15
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 financial instrument using the historical default rate (as reported by Moody's for CY 1983 to CY 2024) for companies with a similar credit rating over a time period consistent with the remaining term of the contract.  The application of CVAs resulted in a less than $1 million decrease in the fair value of assets and a less than $1 million decrease in the fair value of liabilities at March 31, 2025.

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Table of Contents                               Draft 4.0                    04/24/2025 5:00 PM

Fair Value MeasurementsThe following tables set forth by level, within the fair value hierarchy, TVA's financial assets and liabilities that were measured at fair value on a recurring basis at March 31, 2025, and September 30, 2024.  Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  TVA's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of the fair value of the assets and liabilities and their classification in the fair value hierarchy levels.Fair Value MeasurementsAt March 31, 2025(in millions)Quoted Prices in Active Markets forIdentical Assets(Level 1)Significant OtherObservable Inputs(Level 2)SignificantUnobservableInputs(Level 3)TotalAssetsInvestments    Equity securities$692 $— $— $692 Government debt securities(1)(2)410 47 — 457 Corporate debt securities(3)— 369 — 369 Mortgage and asset-backed securities— 39 — 39 Institutional mutual funds333 — — 333 Forward debt securities contracts— 16 — 16 Cash equivalents and other short-term investments(2)(4)46 198 — 244 Private equity funds measured at net asset value(5)— — — 762 Private real asset funds measured at net asset value(5)— — — 450 Private credit funds measured at net asset value(5)— — — 263 Commingled funds measured at net asset value(5)— — — 1,292 Total investments1,481 669 — 4,917 Commodity contract derivatives— 10 — 10 Commodity derivatives under the FHP— 106