Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 230

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 230
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 investments as investments measured at NAV in the fair value hierarchy.Commingled funds represent investment funds comprising multiple individual financial instruments.  The commingled funds held by the NDT, ART, SERP, DCP, and RP consist of either a single class of securities, such as equity, debt, or foreign currency securities, or multiple classes of securities.  All underlying positions in these commingled funds are either exchange traded or measured using observable inputs for similar instruments.  The fair value of commingled funds is based on 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 of the Notes to Consolidated Financial Statements in the Annual Report and Note 9 — 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)(in millions) Three Months Ended March 31 Six Months Ended March 31FundFinancial Statement Presentation2025202420252024NDTRegulatory assets(2)$8 $54 $(67)$251 ARTRegulatory assets(3)(8)34 (28)123 SERPOther income, net— 2 (6)9 DCPOther income, net(1)1 (2)2 Notes(1)  The unrealized gains for the RP were less than $1 million for both the three and six months ended March 31, 2025 and three and six months ended March 31, 2024, and therefore were not represented in the table above.(2)  Includes $33 million of unrealized losses and $24 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended March 31, 2025 and 2024, respectively.  Includes $61 million of unrealized losses and $70 million of unrealized gains related to NDT equity securities (excluding