Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 245

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 245
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 a non-qualified excess 401(k) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by Internal Revenue Service ("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, and 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 short-term investments are highly liquid securities with maturities of less than three months and 12 months, respectively.  These consist primarily of discount securities such as repurchase agreements and U.S. Treasury bills.  These securities may be priced at cost, which approximates fair value due to the short-term nature of the instruments.  These securities are classified as Level 2.  Active market pricing may be utilized for U.S. Treasury bills, which are classified as Level 1.  Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers.  These investments generally involve a three-to-four-year period where the investor contributes capital, followed by a period of distribution, typically over several years.  The investment period is generally, at a minimum, 10 years or longer.  The NDT had unfunded commitments related to private equity limited partnerships of $380 million, private real assets of $129 million, and private credit of $89 million at December 31, 2024.  The ART had unfunded commitments related to limited partnerships in private equity of $146 million, private real assets of $68 million, and private credit of $47 million at December 31, 2024.  These investments have no redemption