93 NOTES TO THE FINANCIAL STATEMENTS

Note 9. Other Assets

Other Assets as of September 30, 2018, and 2017

(In billions of dollars) 2018 2017

Advances and prepayments................................................................... 70.0 97.4

Regulatory assets.................................................................................. 17.3 20.0

Investments in Multilateral Development Banks....................................... 7.7 7.7

FDIC receivable from resolution activity, net............................................ 3.0 9.3

Other.................................................................................................... 15.7 13.3

Total other assets ............................................................................... 113.7 147.7

Advances and prepayments are assets that represent funds disbursed in contemplation of the future performance of

services, receipt of goods, the incurrence of expenditures, or the receipt of other assets. These include advances to contractors

and grantees, travel advances, and prepayments for items such as rents, taxes, insurance, royalties, commissions, and

supplies.

With regard to regulatory assets, the DOE’s Power Marketing Administrations (PMAs) and TVA record certain

amounts as assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification

(ASC) Topic 980, Regulated Operations. The provisions of FASB ASC Topic 980 require that regulated enterprises reflect

rate actions of the regulator in their financial statements, when appropriate. These rate actions can provide reasonable

assurance of the existence of an asset, reduce or eliminate the value of an asset, or impose a liability on a regulated enterprise.

In order to defer incurred costs under FASB ASC Topic 980, a regulated entity must have the statutory authority to establish

rates that recover all costs, and those rates must be charged to and collected from customers. If the PMAs’ or TVA’s rates

should become market-based, FASB ASC Topic 980 would no longer be applicable, and all of the deferred costs under that

standard would be expensed.

On behalf of the U.S., Treasury invests in certain Multilateral Development Banks (MDB), through subscriptions to

capital, which allows the MDBs to issue loans at market-based rates to middle-income developing countries. These paid-in

capital investments are non-marketable equity investments valued at cost.

The FDIC has the responsibility for resolving failed institutions in an orderly and efficient manner. The resolution

process involves valuing a failing institution, marketing it, soliciting and accepting bids for the sale of the institution,

determining which bid is least costly to the insurance fund, and working with the acquiring institution through the closing

process. FDIC records receivables for resolutions that include payments by the Deposit Insurance Fund (DIF) to cover

obligations to insured depositors, advances to receiverships and conservatorships for working capital, and administrative

expenses paid on behalf of receiverships and conservatorships.

Other items included in “other” are contract financing payments and estimated future payments to contractors,

purchased power generating capacity, deferred nuclear generating units, derivative assets, the balance of assets held by the

experience rated carriers participating in the Health Benefits and Life Insurance Program (pending disposition on behalf of

OPM), and the cost contribution to buildout the Nationwide Public Safety Broadband.