Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 203

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 203
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 4.98 4.43 Note(1)  The rates include the acceleration of depreciation related to retiring certain coal-fired units and potentially retiring the remainder of the coal-fired fleet by 2035.  See Note 8 — Plant Closures. Reacquired Rights.  TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking CTs as well as certain qualified technological equipment and software.  All of the lease proceeds were accounted for as financing obligations due to TVA’s continuing involvement with the combustion turbine facilities and the qualified technological equipment and software during the leaseback term.  These financial obligations were paid off, and TVA acquired the residual leasehold interests for all of this equipment and recorded the cash consideration as reacquired rights, which is an intangible asset included in property, plant, and equipment on the Consolidated Balance Sheet.  At September 30, 2025 and 2024, property, plant, and equipment includes intangible reacquired rights, net of amortization, of $301 million and $312 million, respectively.  Reacquired rights are amortized over the estimated useful lives of the underlying CTs which range from 30 to 35 years.  Amortization expense was $11 million, $11 million, and $10 million for the years ended September 30, 2025, 2024, and 2023, respectively, and accumulated amortization at September 30, 2025 and 2024 totaled $74 million and $63 million, respectively.  At September 30, 2025, the estimated aggregate amortization expense for each of the next five years and thereafter is shown below: 20262027202820292030ThereafterReacquired Rights$11 $12 $11 $11 $12 $244 Impairment of Assets.  TVA evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.  For long-lived assets, TVA bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, regulatory approval and ability to set rates at levels that allow for recoverability of the assets, and other external market conditions or factors that may be present.  If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may