Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 322

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 2
Chunk 322
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 entity's right to consideration in exchange for goods and services that the entity has transferred to customers.  TVA did not have any material contract assets at March 31, 2025.  Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers.  These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation.  See Economic Development Incentives below and Note 11 — Other Long-Term Liabilities — Long-Term Deferred Revenue.

Economic Development Incentives.  Under certain economic development programs, TVA offers incentives to existing and potential power customers in targeted business sectors that make multi-year commitments to invest in the Tennessee Valley.  TVA records those incentives as reductions of revenue.  Incentives recorded as a reduction to revenue were $83 million and $80 million for the three months ended March 31, 2025 and 2024, respectively.  Incentives recorded as a reduction to revenue were $168 million and $153 million for the six months ended March 31, 2025 and 2024, respectively.  Incentives that have been approved but have not been paid are recorded in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets.  At March 31, 2025, and September 30, 2024, the outstanding unpaid incentives were $194 million and $187 million, respectively.  Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements. 

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17.  Other Income, Net 

Income and expenses not related to TVA's operating activities are summarized in the following table:Other Income, Net(in millions) Three Months Ended March 31Six Months Ended March 31 2025202420252024Interest income$11 $10 $21 $20 External services5 4 14 8 Gains (loss) on investments— 5 (2)14 Miscellaneous(4)(1)(4)(1)Total other income, net$12 $18 $29 $41 

18.  Supplemental Cash Flow Information 

Construction in progress and nuclear fuel expenditures included in Accounts