Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 272

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 272
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133 $230 ARTRegulatory assets(3)97 (4)69 119 SERPOther income (expense), net5 — (1)9 DCPOther income (expense), net2 — — 2 Notes(1)  The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2025 and for both the three and nine months ended June 30, 2024, and therefore were not represented in the table above.(2)  Includes $41 million and $7 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively.  Includes $12 million of unrealized losses and $70 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.(3)  Includes $10 million and $1 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively.  Includes $5 million of unrealized losses and $24 million of unrealized gains related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

Currency and Interest Rate Swap DerivativesSee Note 14 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and Derivatives Not Receiving Hedge Accounting Treatment for a discussion of the nature, purpose, and contingent features of TVA's currency swaps and interest rate swaps.  These swaps are classified as Level 2 valuations and are valued based on income approaches using observable market inputs for similar instruments.Commodity Contract Derivatives and Commodity Derivatives under the FHPCommodity Contract Derivatives.  Most of these derivative contracts are valued based on market approaches, which utilize short-term and mid-term market-quoted prices from an external industry brokerage service.  These contracts are classified as Level 2 valuations.  Commodity Derivatives under the FHP.  Swap contracts are valued using a pricing model based on New