Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 420

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 420
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117

Fair Values of TVA DerivativesAt September 30(in millions) 20252024Derivatives That Receive Hedge Accounting Treatment: BalanceBalance Sheet PresentationBalanceBalance Sheet PresentationCurrency swaps    £250 million Sterling$(47)Accounts payable and accrued liabilities $(4); Other long-term liabilities $(43)$(49)Accounts payable and accrued liabilities $(4); Other long-term liabilities $(45)£150 million Sterling(68)Accounts payable and accrued liabilities $(3); Other long-term liabilities $(65)(67)Accounts payable and accrued liabilities $(3); Other long-term liabilities $(64)Derivatives That Do Not Receive Hedge Accounting Treatment: BalanceBalance Sheet PresentationBalanceBalance Sheet PresentationInterest rate swaps    $1.0 billion notional$(526)Accounts payable and accrued liabilities $(13); Accrued interest $(28); Other long-term liabilities $(485)$(622)Accounts payable and accrued liabilities $(10), Accrued interest $(26);Other long-term liabilities$(586)$476 million notional(172)Accounts payable and accrued liabilities $(5); Accrued interest $(9); Other long-term liabilities $(158)(218)Accounts payable and accrued liabilities $(3), Accrued interest $(9);Other long-term liabilities$(206)Commodity contract derivatives 10 Other current assets $14; Other long-term assets $2; Accounts payable and accrued liabilities $(2); Other long-term liabilities $(4)2 Other current assets $5; Other long-term assets $2; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)Commodity derivatives under the FHP(57)Other long-term assets $8; Accounts payable and accrued liabilities $(57); Other long-term liabilities $(8)(161)Accounts payable and accrued liabilities $(99); Other long-term liabilities $(62) Cash Flow Hedging Strategy for Currency SwapsTo protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges at the time the Bond transactions occurred.  TVA had the following currency swaps outstanding at September 30, 2025:Currency Swaps OutstandingEffective Date of Currency Swap ContractAssociated TVA Bond Issues Currency ExposureExpiration Date of SwapOverall EffectiveCost to TVA2001£250 million20326.587%2003£150 million20434.962%When the dollar strengthens against the British pound sterling, the exchange gain on the Bond liability and related accrued interest is offset by an equal amount of loss on the