Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 430

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 430
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 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 — Cost-Based Regulation and Note 11 — 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)For the years ended September 30(in millions)FundFinancial Statement Presentation20252024NDTRegulatory assets(2)$221 $324 ARTRegulatory assets(3)116 171 SERPOther income, net3 14 DCPOther income, net1 2 Notes(1)  The unrealized gains for the RP were less than $1 million for both the years ended September 30, 2025 and 2024 and therefore were not represented in the table above.(2)  Includes $10 million and $93 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the years ended September 30, 2025 and 2024, respectively. (3)  Includes $7 million and $36 million of unrealized gains related to ART equity securities (excluding commingled funds) for the years ended September 30, 2025 and 2024, respectively. Currency and Interest Rate Swap DerivativesSee Note 16 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and Derivatives Not Receiving