Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 404

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 404
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 provide financial support to the VIEs other than as prescribed in the terms of the agreements related to these transactions.

13.  Other Long-Term Liabilities 

Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to environmental compliance and remediation and long-term project cost accruals.  The table below summarizes the types and amounts of Other long-term liabilities:Other Long-Term LiabilitiesAt September 30(in millions) 20252024(1)Interest rate swap liabilities$643 $792 Environmental compliance and remediation costs274 226 Long-term project cost accruals204 140 Currency swap liabilities108 109 Operating lease liabilities63 88 Advances for construction61 55 Long-term deferred compensation54 50 EnergyRight® financing obligation53 52 Long-term deferred revenue39 48 Accrued long-term service agreements25 7 Commodity contract derivative liabilities12 64 Other70 81 Total other long-term liabilities$1,606 $1,712 Note(1)  At September 30, 2024, $21 million previously classified as Other (a component of Other long-term liabilities) has been reclassified to Environmental compliance and remediation costs ($14 million) and Accrued long-term service agreements ($7 million).     Interest Rate Swap Liabilities.  TVA uses interest rate swaps to fix variable short-term debt to a fixed rate.  The values of these derivatives are included in Other current assets, Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets.  See Note 16 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives for information regarding the interest rate swap liabilities.Environmental Compliance and Remediation Costs.  Environmental compliance and remediation costs represent certain costs associated with environmental remediation activities, including but not limited to those involving environmental cleanup activities and groundwater activities.  The current and long-term portions of environmental compliance and remediation costs are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets.  At September 30, 2025 and 2024, the current amount of the environmental compliance and remediation costs reported in Accounts payable and accrued liabilities was $52 million and $3 million, respectively.Long-Term Project Cost Accruals.