Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 1

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 13
Chunk 1
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) Recognized in Income on Derivatives(1)(in millions)Three Months Ended December 31Derivative TypeObjective of DerivativeAccounting for Derivative Instrument20242023Interest rate swapsTo fix short-term debt variable rate to a fixed rate (interest rate risk)Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectivelyRealized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow$(10)$(8)Commodity derivativesunder the FHPTo protect against fluctuations in market prices of purchased commodities (price risk)Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectivelyRealized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)(37)(54)Notes(1)  All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities.  As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three months ended December 31, 2024 and for the three months ended December 31, 2023.(2)  Of the amount recognized for the three months ended December 31, 2024, $30 million and $7 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended December 31, 2023, $44 million and $10 million were reported in Fuel expense and Purchased power expense, respectively.  Fair Values of TVA Derivatives(in millions) At December 31, 2024At September 30, 2024Derivatives That Receive Hedge Accounting Treatment:BalanceBalance Sheet PresentationBalanceBalance Sheet PresentationCurrency swaps    £250 million Sterling$(64)Accounts payable and accrued liabilities $(5); Other long-term liabilities $(59)$(49)Accounts payable and accrued liabilities $(4); Other long-term liabilities $(45)£150 million Sterling(72)Accounts payable and accrued liabilities $(4); Other long-term liabilities $(68)(67)Accounts payable andaccrued liabilities $(3); Other long-term liabilities $(64)Derivatives That Do Not Receive Hedge Accounting Treatment:BalanceBalance Sheet PresentationBalanceBalance Sheet PresentationInterest rate swaps    $1.0 billion notional$(481)Accounts payable and