Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 142

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 142
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 fair value.  Except for gains and losses on SERP, DCP, and RP assets, all changes in fair value of these assets and liabilities have been recorded as changes in regulatory assets, regulatory liabilities, or AOCI on TVA's Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss).  Except for gains and losses on SERP and DCP assets, there has been no impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows related to these fair value measurements.Investment Funds    At September 30, 2025, Investment funds were comprised of $5.6 billion of equity securities and debt securities classified as trading measured at fair value.  Equity and trading debt securities are held in the NDT, ART, SERP, DCP, and RP.  The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants.  The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets.  The balances in the NDT and ART were $3.7 billion and $1.7 billion, respectively, at September 30, 2025.TVA established a SERP to provide benefits to selected employees of TVA which are comparable to those provided by competing organizations.  The DCP is designed to provide participants with the ability to defer compensation to future periods.  The RP is a non-qualified excess 401(k) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by IRS rules to save additional amounts for retirement and receive non-elective and matching employer contributions.  The NDT, ART, SERP, DCP, and RP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance.The NDT, ART, SERP, DCP, and RP are composed of multiple types of investments and are managed by external institutional investment managers.  Most U.S. and international equities, U.S. Treasury inflation-protected securities ("TIPS"), and  

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real estate investment trust securities and certain derivative instruments are measured based on quoted exchange prices in active markets and are classified as Level 1 valuations.  Fixed-income investments, high-yield fixed-income investments, currencies, and most derivative instruments are non-exchange traded and are classified as Level 2 valuations.  These measurements are based on market and income approaches with observable market inputs.  Cash equivalents and other