Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 5

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 14
Chunk 5
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0                    04/24/2025 5:00 PM

Offsetting of Derivative Assets and LiabilitiesThe amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:Derivative Assets and Liabilities(1)(in millions) At March 31, 2025At September 30, 2024AssetsCommodity contract derivatives$10 $7 Commodity derivatives under the FHP(2)106 — Total derivatives subject to master netting or similar arrangement$116 $7 LiabilitiesCurrency swaps$139 $116 Interest rate swaps(3)707 840 Commodity contract derivatives 5 5 Commodity derivatives under the FHP(2)11 161 Total derivatives subject to master netting or similar arrangement$862 $1,122  Notes(1)  Offsetting amounts include counterparty netting of derivative contracts.  Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either March 31, 2025, or September 30, 2024. (2)  At March 31, 2025, the gross derivative asset and gross derivative liability were $122 million and $27 million, respectively, with offsetting amounts for each totaling $16 million.  At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.(3)  Letters of credit of $465 million and $535 million were posted as collateral at March 31, 2025, and September 30, 2024, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.Other Derivative Instruments Investment Fund Derivatives.  Investment funds consist primarily of funds held in the Nuclear Decommissioning Trust ("NDT"), the Asset Retirement Trust ("ART"), the Supplemental Executive Retirement Plan ("SERP"), the TVA Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP").  See Note 15 — Fair Value Measurements — Investment Funds for a discussion of the trusts, plans, and types of investments.  The NDT and ART may invest in derivative instruments which may include swaps, futures, options, forwards, and other instruments.  At March 31, 2025, and