Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 229

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 229
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 At September 30, 2024, $21 million previously classified as Other (a component of Other long-term liabilities) has been reclassified to Environmental compliance and remediation costs ($14 million) and Accrued long-term service agreements ($7 million).     Interest Rate Swap Liabilities.  TVA uses interest rate swaps to fix variable short-term debt to a fixed rate.  The values of these derivatives are included in Other current assets, Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets.  See Note 16 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives for information regarding the interest rate swap liabilities.Environmental Compliance and Remediation Costs.  Environmental compliance and remediation costs represent certain costs associated with environmental remediation activities, including but not limited to those involving environmental cleanup activities and groundwater activities.  The current and long-term portions of environmental compliance and remediation costs are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets.  At September 30, 2025 and 2024, the current amount of the environmental compliance and remediation costs reported in Accounts payable and accrued liabilities was $52 million and $3 million, respectively.Long-Term Project Cost Accruals.  Long-term project cost accruals represent the unpaid liability associated with major construction projects and other project expenditures.  TVA accrues these costs based on level of completion of the vendor's performance obligation, and the long-term portion represents amounts that will not be paid within the next 12 months.  The current and long-term portions of Long-term project cost accruals are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets.  At September 30, 2025 and 2024, the current amount of the long-term project cost accruals reported in Accounts payable and accrued liabilities was $256 million and $124 million, respectively.      

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Currency Swap Liabilities.  To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges.  The values of these derivatives are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets.  See Note 16 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment