Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 144

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 144
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 NAV per fund share (the unit of account), derived from the prices of the underlying securities in the funds.  These commingled funds can be redeemed at the measurement date NAV and are classified as Commingled funds measured at NAV in the fair value hierarchy.      Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost.  The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy.  See Note 1 — Summary of Significant Accounting Policies — Cost-Based Regulation and Note 11 — Regulatory Assets and Liabilities.  TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:Unrealized Investment Gains (Losses)(1)For the years ended September 30(in millions)FundFinancial Statement Presentation20252024NDTRegulatory assets(2)$221 $324 ARTRegulatory assets(3)116 171 SERPOther income, net3 14 DCPOther income, net1 2 Notes(1)  The unrealized gains for the RP were less than $1 million for both the years ended September 30, 2025 and 2024 and therefore were not represented in the table above.(2)  Includes $10 million and $93 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the years ended September 30, 2025 and 2024, respectively. (3)  Includes $7 million and $36 million of unrealized gains related to ART equity securities (excluding commingled funds) for the years ended September 30, 2025 and 2024, respectively. Currency and Interest Rate Swap DerivativesSee Note 16 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and Derivatives Not Receiving Hedge Accounting Treatment for a discussion of the nature, purpose, and contingent features of TVA's currency swaps and interest rate swaps.  These swaps are classified as Level 2 valuations and are valued based on income approaches using observable market inputs for similar instruments.Commodity Contract Derivatives and Commodity Derivatives under the FHPCommodity Contract Derivatives.  Most of these derivative contracts are valued based on market approaches, which utilize short-term and mid-term market-quoted prices from an external industry brokerage