XML 47 R50.htm IDEA: XBRL DOCUMENT v2.4.0.8

Benefit Plans Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Obligations and Funded Status

The changes in plan obligations, assets, and funded status for the years ended September 30, 2014 and 2013, were as follows:

Obligations and Funded Status For the years ended September 30
	Pension Benefits								Other Post-Retirement Benefits
	2014				2013				2014				2013
Change in benefit obligation
Benefit obligation at beginning of year	$	11,471			$	11,995			$	656			$	811
Service cost	130				154				18				24
Interest cost	558				468				32				31
Plan participants’ contributions	28				29				—				—
Collections(1)	—				—				93				79
Amendments	2				4				—				—
Actuarial loss (gain)	722				(549		)		(21		)		(163		)
Net transfers from variable fund/401(k) plan	13				4				—				—
Expenses paid	(6		)		(6		)		—				—
Benefits paid	(653		)		(628		)		(126		)		(126		)
Benefit obligation at end of year	12,265				11,471				652				656
Change in plan assets
Fair value of net plan assets at beginning of year	7,221				7,029				—				—
Actual return on plan assets	648				787				—				—
Plan participants’ contributions	28				29				—				—
Collections(1)	—				—				93				79
Net transfers from variable fund/401(k) plan	13				4				—				—
Employer contributions(2)	256				6				33				47
Expenses paid	(6		)		(6		)		—				—
Benefits paid	(653		)		(628		)		(126		)		(126		)
Fair value of net plan assets at end of year	7,507				7,221				—				—
Funded status	$	(4,758	)		$	(4,250	)		$	(652	)		$	(656	)

Amounts Recognized on TVA's Consolidated Balance Sheets

Amounts related to these benefit plans recognized on TVA's consolidated balance sheets consist of regulatory assets that have not been recognized as components of net periodic benefit cost at September 30, 2014 and 2013, and the funded status of TVA’s benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations:

Amounts Recognized on TVA's Consolidated Balance Sheets At September 30
	Pension Benefits								Other Post-Retirement Benefits
	2014				2013				2014				2013
Regulatory assets	$	4,157			$	3,910			$	140			$	166
Accounts payable and accrued liabilities	(5		)		(5		)		(38		)		(39		)
Pension and post-retirement benefit obligations(1)	(4,753		)		(4,245		)		(614		)		(617		)

Note

(1) Table above excludes $472 million and $486 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively.

Postretirement Benefit Costs Deferred as Regulatory Assets

Unrecognized amounts included in regulatory assets yet to be recognized as components of accrued benefit cost at September 30 consisted of:

Post-retirement Benefit Costs Deferred as Regulatory Assets At September 30
	Pension Benefits								Other Post-Retirement Benefits
	2014				2013				2014				2013
Unrecognized prior service cost (credit)	$	(180	)		$	(203	)		$	(39	)		$	(45	)
Unrecognized net loss	4,337				4,113				179				211
Total regulatory assets	$	4,157			$	3,910			$	140			$	166

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plan at September 30, 2014, and 2013, were as follows:

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets At September 30
	2014				2013
Projected benefit obligation	$	12,265			$	11,471
Accumulated benefit obligation	12,039				11,216
Fair value of net plan assets	7,507				7,221

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the years ended September 30, 2014, and 2013, were as follows:

Components of Net Periodic Benefit Cost For the years ended September 30
	Pension Benefits												Other Post-Retirement Benefits
	2014				2013				2012				2014				2013				2012
Service cost	$	130			$	154			$	139			$	18			$	24			$	19
Interest cost	558				468				490				32				31				35
Expected return on plan assets	(435		)		(428		)		(437		)		—				—				—
Amortization of prior service credit	(21		)		(22		)		(23		)		(6		)		(6		)		(6		)
Recognized net actuarial loss	285				377				361				11				25				29
Total net periodic benefit cost recognized	$	517			$	549			$	530			$	55			$	74			$	77

Expected Amortization of Regulatory Assets in Next Fiscal Year

The amounts in the regulatory asset that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows:

Expected Amortization of Regulatory Assets in 2015 At September 30, 2014
	Pension Benefits				Other Post-Retirement Benefits				Total
Prior service cost (credit)	$	(21	)		$	(6	)		$	(27	)
Net actuarial loss	277				8				285

Actuarial Assumptions

TVA’s reported costs of providing the plan benefits are impacted by numerous factors including the provisions of the plans, changing employee demographics, and various assumptions, the most significant of which are noted below.

Actuarial Assumptions At September 30
	Pension Benefits						Other Post-Retirement Benefits
	2014			2013			2014			2013
Assumptions utilized to determine benefit obligations at September 30
Discount rate	4.45	%		5.00	%		4.50	%		5.05	%
Rate of compensation increase	5.70	%		5.72	%		N/A			N/A
Initial health care cost trend rate	N/A			N/A			7.50	%		8.00	%
Ultimate health care cost trend rate	N/A			N/A			5.00	%		5.00	%
Ultimate trend rate is reached in year beginning	N/A			N/A			2019			2019
Assumptions utilized to determine net periodic benefit cost for the years ended September 30
Discount rate	5.00	%		4.00	%		5.05	%		4.00	%
Expected return on plan assets	7.25	%		7.25	%		N/A			N/A
Rate of compensation increase	5.72	%		4.44	%		N/A			N/A
Initial health care cost trend rate	N/A			N/A			8.00	%		8.50	%
Ultimate health care cost trend rate	N/A			N/A			5.00	%		5.00	%
Ultimate trend rate is reached in year beginning	N/A			N/A			2019			2019

Sensitivity to Certain Changes in Pension Assumptions

The following chart reflects the sensitivity of pension cost to changes in certain actuarial assumptions:

Sensitivity to Certain Changes in Pension Assumptions At September 30, 2014
Actuarial Assumption		Change in Assumption			Impact on 2014 Pension Cost				Impact on 2014 Projected Benefit Obligation
Discount rate		(0.25	)		$	18			$	369
Rate of return on plan assets		(0.25	)		15				N/A

Sensitivity to Changes in Assumed Health Care Cost Trend Rates

The following chart reflects the sensitivity of post-retirement benefit cost to changes in the health care trend rate:

Sensitivity to Changes in Assumed Health Care Cost Trend Rates At September 30, 2014
	1% Increase				1% Decrease
Effect on total of service and interest cost components for the year	$	7			$	(7	)
Effect on end-of-year accumulated post-retirement benefit obligation	89				(93		)

Asset Holdings and Fair Value Measurements

Asset Holdings of TVARS At September 30
					Plan Assets at September 30
Asset Category		Target Allocation			2014			2013
Global equity		32	%		43	%		48	%
Private equity		10	%		5	%		6	%
Low volatility global public equity		5	%		1	%		—	%
Cash		2	%		2	%		2	%
Core fixed income		5	%		5	%		5	%
Long-term core fixed income		5	%		5	%		4	%
Investment grade credit		6	%		6	%		6	%
International emerging markets fixed income		5	%		5	%		—	%
High yield fixed income		5	%		6	%		10	%
Global TIPS		5	%		5	%		7	%
Private real assets		10	%		7	%		7	%
Commodities		5	%		4	%		—	%
MLPs		5	%		6	%		5	%
Total		100	%		100	%		100	%

Fair Value Measurements

The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2014:

TVA Retirement System At September 30, 2014
	Total(1) (2)				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Equity securities	$	1,669			$	1,668			$	—			$	1
Preferred securities	37				5				32				—
Debt securities
Corporate debt securities	1,326				—				1,304				22
Residential mortgage-backed securities	204				—				201				3
Debt securities issued by U.S. Treasury and other U.S. government agencies	93				93				—				—
Debt securities issued by foreign governments	225				—				218				7
Asset-backed securities	176				—				147				29
Debt securities issued by state/local governments	30				—				29				1
Commercial mortgage-backed securities	23				—				20				3
Commingled Funds
Equity	1,106				—				1,106				—
Debt	661				—				661				—
Commodity	332				—				332				—
Blended	228				—				228				—
Institutional mutual funds	28				28				—				—
Cash equivalents and other short-term investments	464				—				464				—
Certificates of deposit	19				—				19				—
Private equity funds	481				—				—				481
Private real estate funds	435				—				334				101
Treasury bills, U.S. Government notes, and securities held as futures and other derivative collateral	35				10				25				—
Securities lending commingled funds	2				—				2				—
Derivatives
Purchased options	18				—				18				—
Foreign currency forward receivable	8				—				8				—
Total Assets	$	7,600			$	1,804			$	5,148			$	648
Liabilities
Derivatives
Futures	11				$	11			$	—			$	—
Foreign currency forward payable	8				—				8				—
Written option obligations	7				—				7				—
Total Liabilities	$	26			$	11			$	15			$	—

Notes

(1) Excludes approximately $65 million in net payables associated with security purchases and sales and various other payables.

(2) Excludes a $2 million payable for collateral on loaned securities in connection with TVARS’s participation in securities lending programs.

The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2013:

TVA Retirement System At September 30, 2013
	Total(1) (2)				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Equity securities	$	1,689			$	1,686			$	—			$	3
Preferred securities	22				17				—				5
Debt securities
Corporate debt securities	1,352				—				1,334				18
Residential mortgage-backed securities	355				—				352				3
Debt securities issued by U.S. Treasury and other U.S. government agencies	113				113				—				—
Debt securities issued by foreign governments	31				—				30				1
Asset-backed securities	120				—				110				10
Debt securities issued by state/local governments	36				—				36				—
Commercial mortgage-backed securities	21				—				18				3
Commingled Funds
Equity	1,182				—				1,182				—
Debt	786				—				786				—
Blended	263				—				263				—
Institutional mutual funds	26				26				—				—
Cash equivalents and other short-term investments	395				1				394				—
Private equity funds	528				—				—				528
Private real estate funds	382				—				297				85
Treasury bills, U.S. Government notes, and securities held as futures and other derivative collateral	39				8				31				—
Securities lending commingled funds	3				—				3				—
Derivatives
Foreign currency forward receivable	6				—				6				—
Purchased options	6				—				6				—
Credit default swaps	4				—				4				—
Written option obligations	4				4				—				—
Total Assets	$	7,363			$	1,855			$	4,852			$	656
Liabilities
Derivatives
Foreign currency forward payable	$	6			$	—			$	6			$	—
Credit default swaps	1				—				1				—
Written option obligations	1				—				1				—
Total Liabilities	$	8			$	—			$	8			$	—

Notes

(1) Excludes approximately $131 million in net payables associated with security purchases and sales and various other payables.

(2) Excludes a $3 million payable for collateral on loaned securities in connection with TVARS’s participation in securities lending programs.

Fair Value Measurements Using Significant Unobservable Inputs

The following table provides a reconciliation of beginning and ending balances of pension plan assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Fair Value Measurements Using Significant Unobservable Inputs
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at October 1, 2012	$	633
Net realized/unrealized gains (losses)	45
Purchases, sales, issuances, and settlements (net)	(21		)
Transfers in and/or out of Level 3	(1		)
Balance at September 30, 2013	656
Net realized/unrealized gains (losses)	50
Purchases, sales, issuances, and settlements (net)	(53		)
Transfers in and/or out of Level 3	(5		)
Balance at September 30, 2014	$	648

Estimated Future Benefit Payments

  The following table sets forth the estimated future benefit payments under the benefit plans.

Estimated Future Benefits Payments At September 30, 2014
	Pension Benefits				Other Post-Retirement Benefits
2015	$	712			$	39
2016	715				40
2017	720				41
2018	724				41
2019	731				41
2020 - 2024	3,759				186

X

- Definition

Tabular disclosure of the assumptions used to determine for pension plans and/or other employee benefit plans the benefit obligation and net benefit cost, including assumed discount rates, rate increase in compensation increase, expected long-term rates of return on plan assets, assumed health care cost trend rates for the next year, ultimate health care trend rate(s), and when the ultimate healthcare trend rate is expected to be achieved.

+ References

No definition available.

+ Details

Name:	tve_ScheduleOfAssumptionsUsedAndHealthcareCostTrendRatesTableTextBlock
Namespace Prefix:	tve_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the defined pension and other post-retirement benefit costs deferred as regulatory assets including unrecognized prior service costs and unrecognized net gain/loss on plan assets

+ References

No definition available.

+ Details

Name:	tve_ScheduleOfDefinedBenefitCostsDeferredAsRegulatoryAssetsTableTextBlock
Namespace Prefix:	tve_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the effect of a one-quarter-percentage-point decrease in the pension discount rate and the rate of return on plan assets on the net periodic pension benefit costs and the projected benefit obligation for the next fiscal year that follows the most recent annual statement of financial position presented.

+ References

No definition available.

+ Details

Name:	tve_ScheduleOfEffectOfOneQuarterPercentageDecreaseInPensionDiscountRateAndRateOfReturnOnPlanAssetsTableTextBlock
Namespace Prefix:	tve_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule of expected amortization amounts in the next fiscal year of pension and postretirement benefit costs deferred as regulatory assets.

+ References

No definition available.

+ Details

Name:	tve_ScheduleOfExpectedAmortizationOfPensionAndPostretirementBenefitCostsDeferredAsRegulatoryAssetsTableTextBlock
Namespace Prefix:	tve_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of benefit obligations including the projected benefit obligation and the accumulated benefit obligation where the obligations exceed the fair value of the plan assets as of the measurement date.

+ References

No definition available.

+ Details

Name:	tve_ScheduleOfProjectedBenefitObligationsAndAccumulatedBenefitObligationsInExessOfPlanAssetsTableTextBlock
Namespace Prefix:	tve_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (d)(5)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAllocationOfPlanAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAmountsRecognizedInBalanceSheetTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the aggregate benefit obligation and aggregate fair value of plan assets for pension plans and/or other employee benefit plans with benefit obligations in excess of plan assets as of the measurement date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 3

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e2417-114920

+ Details

Name:	us-gaap_ScheduleOfBenefitObligationsInExcessOfFairValueOfPlanAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the effect of a one-percentage-point increase and the effect of a one-percentage-point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic postretirement health care benefit costs and the accumulated postretirement benefit obligation for health care benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (m)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfEffectOfOnePercentagePointChangeInAssumedHealthCareCostTrendRatesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets of pension plans and/or other employee benefit plans for the period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (d)(4)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfEffectOfSignificantUnobservableInputsChangesInPlanAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of benefits expected to be paid by pension plans and/or other employee benefit plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (f)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfExpectedBenefitPaymentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net benefit costs for pension plans and/or other employee benefit plans including service cost, interest cost, expected return on plan assets, gain (loss), prior service cost or credit, transition asset or obligation, and gain (loss) recognized due to settlements or curtailments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (h)

-URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfNetBenefitCostsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration