Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 365

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 3
Chunk 365
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Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers.  TVA did not have any material contract assets at June 30, 2025.  Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers.  These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation.  See Economic Development Incentives below and Note 11 — Other Long-Term Liabilities — Long-Term Deferred Revenue.

Economic Development Incentives.  Under certain economic development programs, TVA offers incentives to existing and potential power customers in targeted business sectors that make multi-year commitments to invest in the Tennessee Valley.  TVA records those incentives as reductions of revenue.  Incentives recorded as a reduction to revenue were $80 million for both the three months ended June 30, 2025 and 2024.  Incentives recorded as a reduction to revenue were $248 million and $233 million for the nine months ended June 30, 2025 and 2024, respectively.  Incentives that have been approved but have not been paid are recorded in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets.  At June 30, 2025, and September 30, 2024, the outstanding unpaid incentives were $197 million and $187 million, respectively.  Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements. 

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17.  Other Income, Net 

Income and expenses not related to TVA's operating activities are summarized in the following table:Other Income, Net(in millions) Three Months Ended June 30Nine Months Ended June 30 2025202420252024Interest income$10 $10 $31 $30 External services8 4 22 12 Gains on investments10 2 8 16 Miscellaneous1 (2)(3)(3)Total other income, net$29 $14 $58 $55 

18.  Supplemental Cash Flow Information 

Construction in progress and nuclear fuel expenditures included in Accounts payable and accrued liabilities at June