Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 354

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 9
Chunk 354
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 are equal to and payable on the same dates as JACTG's and JHLLC's semi-annual debt service payments.  In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JACTG and JHLLC.  Certain agreements related to this transaction contain default and acceleration provisions.               Due to its participation in the design, business activity, and credit and financial support of JACTG and JHLLC, TVA has determined that it has a variable interest in both of these entities.  Based on its analysis, TVA has concluded that it is the primary beneficiary of JACTG and JHLLC and, as such, is required to account for the VIEs on a consolidated basis. JHLLC's membership interests in JACTG are eliminated in consolidation.Approximately $775 million of the proceeds from the secured notes issuances was paid to TVA in accordance with the terms of the head lease and the construction management agreement.  JACTG deposited approximately $25 million with a lease indenture trustee to fund the payments due on April 1, 2025, in connection with the JACTG notes and JHLLC's membership interests in JACTG.  The deposit is reflected as Restricted cash of variable interest entity on the Consolidated Balance Sheets.  TVA intends to use the proceeds from the transaction to meet its requirements under the Tennessee Valley Authority Act of 1933, as amended ("TVA Act").

19

Impact on Consolidated Financial StatementsThe financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, SCCG, JACTG, and JHLLC at December 31, 2024, and September 30, 2024, as reflected on the Consolidated Balance Sheets, are as follows:Summary of Impact of VIEs on Consolidated Balance Sheets(in millions) At December 31, 2024At September 30, 2024Current assets Restricted cash of variable interest entity$25 $— Total assets$25 $— Current liabilities Accrued interest$30 $9 Accounts payable and accrued liabilities1 1 Current maturities of long-term debt of variable interest entities46 37 Total current liabilities77 47 Other liabilitiesOther long-term liabilities16 16 Long-term debt, netLong-term debt of variable interest entities, net1,675 897 Total liabilities$1,768 $