Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 389

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 5
Chunk 389
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 million, and private credit of $46 million at March 31, 2025.  These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments.  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.  Private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset values ("NAV") as a practical expedient for fair value.  TVA classifies its interest in these types of 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