Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 198

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 198
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 condition, results of operations, or cash flows.Cash, Cash Equivalents, and Restricted Cash       Cash includes cash on hand, non-interest bearing cash, and deposit accounts.  All highly liquid investments with original maturities of three months or less are considered cash equivalents.  Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the 

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Consolidated Balance Sheets.  Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations.  See Note 23 — Commitments and Contingencies — Legal Proceedings — Environmental Agreements.    The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:Cash, Cash Equivalents, and Restricted CashAt September 30(in millions) 20252024Cash and cash equivalents$1,576 $502 Restricted cash and cash equivalents included in Other long-term assets21 21 Total cash, cash equivalents, and restricted cash$1,597 $523 TVA's balance of Cash and cash equivalents increased at September 30, 2025 due to the issuance of long-term bonds in the fourth quarter in anticipation of cash needed to pay bond maturities in November 2025.  Allowance for Uncollectible AccountsTVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and/or reasonable and supportable forecasts that affect the collectability of the reported amounts.  The appropriateness of the allowance is evaluated at the end of each reporting period.To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date.  TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables.  In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses.   As of September 30, 2025, TV