Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 44

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 44
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 approximately $644 million.

Fair Value Measurements

Investments.  Investment funds are comprised of equity securities and debt securities and are classified as trading.  These securities are held in the Nuclear Decommissioning Trust ("NDT"), Asset Retirement Trust ("ART"), Supplemental Executive Retirement Plan ("SERP"), Deferred Compensation Plan ("DCP"), Restoration Plan ("RP"), and qualified benefit pension plan.  

Investment Funds.  The assets in the NDT, ART, SERP, DCP, and RP are generally measured at fair value based on 

75

quoted market prices or other observable market data such as interest rate indices.  These investments are primarily U.S. and international equities, real estate investment trusts, fixed income investments, high-yield fixed income investments, U.S. Treasury Inflation-Protected Securities ("TIPS"), treasuries, currencies, derivative instruments, and other investments.  TVA has classified all of these trading securities as either Level 1, Level 2, or Investments measured at net asset value ("NAV").  Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers.  These investments are valued at NAV as a practical expedient for fair value.  There are no readily available quoted exchange prices for these investments.  The fair value of these investments is based on information provided by the investment managers.  These investments are valued on a quarterly basis.  See Note 17 — Fair Value Measurements — Valuation Techniques for a discussion of valuation levels of the investments.

    Plan Investments.  TVA's qualified benefit pension plan is funded with qualified plan assets.  These investments are primarily global public equities, private equities, fixed income securities, public real assets, and private real assets.  See Note 21 — Benefit Plans — Fair Value Measurements for disclosure of fair value measurements for investments held by the TVA Retirement System ("TVARS") that support TVA's qualified defined benefit pension plan.

    Pricing.  Prices provided by third parties for the assets in investment funds and plan investments are subjected to automated tolerance checks by the investment portfolio trustee to identify and avoid, where possible, the use of inaccurate prices.  Any such prices identified as outside the tolerance thresholds are reported to the vendor that provided the price.  If the prices are