Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 92

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 92
---
, and Restricted Cash(in millions) At December 31, 2024At September 30, 2024Cash and cash equivalents$507 $502 Restricted cash of variable interest entity25 — Restricted cash and cash equivalents included in Other long-term assets21 21 Total cash, cash equivalents, and restricted cash$553 $523 Allowance for Uncollectible Accounts TVA 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 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.To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks.  In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately.  TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts.  This information may include economic and business conditions, default trends, and other internal and external factors.  For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio.The allowance for uncollectible accounts was less than $1 million at both December 31, 2024, and September 30, 2024, for trade accounts receivable.  Additionally, loans receivable of $94 million and $105 million at December 31, 2024, and September 30, 2024, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively.  Loans receivables