Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 260

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 260
---
 266 74 66 74 Membership interests of VIEs subject to mandatory redemption (including current portion)Level 216 18 17 19 Long-term outstanding power bonds, net (including current maturities)Level 221,831 21,967 18,889 19,416 Long-term debt of VIEs, net (including current maturities)Level 21,681 1,696 934 966 The carrying values of Cash and cash equivalents, Restricted cash and cash equivalents, Accounts receivable, net, and Short-term debt, net approximate their fair values.The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable.  The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities.

127

18.  Revenue Revenue from Sales of ElectricityTVA's revenue from contracts with customers is primarily derived from the generation and sale of electricity to its customers and is included in Revenue from sales of electricity on the Consolidated Statements of Operations.  Electricity is sold primarily to LPCs for distribution to their end-use customers.  In addition, TVA sells electricity to directly served industrial companies, federal agencies, and others.LPC salesApproximately 91 percent of TVA's Revenue from sales of electricity for the year ended September 30, 2025, and approximately 92 percent of TVA's Revenue from sales of electricity for both the years ended September 30, 2024 and 2023, was from LPCs, which then distribute the power to their customers using their own distribution systems.  Power is delivered to each LPC at delivery points within the LPC's service territory.  TVA recognizes revenue when the customer takes possession of the power at the delivery point.  For power sales, the performance obligation to deliver power is satisfied in a series over time because the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer.  TVA has no continuing performance obligations subsequent to delivery.  Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of