Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 246

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 246
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 to additional inventory reserves and write-offs related to TVA's coal-fired fleet, including Kingston and Cumberland.  Of these amounts, $4 million was recognized during both the three months ended June 30, 2025 and 2024.

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

8.  Other Long-Term Assets 

The table below summarizes the types and amounts of TVA's other long-term assets:Other Long-Term Assets(in millions)At June 30, 2025At September 30, 2024Loans and other long-term receivables, net$111 $84 Cloud assets98 35 Prepaid long-term service agreements68 62 Prepaid capital assets67 29 EnergyRight® receivables, net44 44 Commodity contract derivative assets17 2 Other85 88 Total other long-term assets$490 $344 Loans and Other Long-Term Receivables.  At June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million and $21 million, respectively.  Loans receivables are reported net of allowances for uncollectible accounts.  See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts.The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans.  Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.  Allowance Components(in millions)At June 30, 2025At September 30, 2024EnergyRight® loan reserve$1 $1 Economic development loan specific loan reserve1 1 Total allowance for loan losses$2 $2 Cloud Assets.  At June 30, 2025, and September 30, 2024, the carrying amount of the cloud assets reported in Other current assets was $3 million and $13 million, respectively.Prepaid Long-Term Service Agreements.  At June 30, 2025, and September 30, 2024, prepayments of $16 million and $7 million, respectively