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Benefit Plans Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Obligations and Funded Status

The changes in plan obligations, assets, and funded status for the years ended September 30, 2015 and 2014, were as follows:

Obligations and Funded Status For the years ended September 30
	Pension Benefits								Other Post-Retirement Benefits
	2015				2014				2015				2014
Change in benefit obligation
Benefit obligation at beginning of year	$	12,265			$	11,471			$	652			$	656
Service cost	130				130				16				18
Interest cost	540				558				29				32
Plan participants’ contributions	25				28				—				—
Collections(1)	—				—				94				93
Amendments	—				2				—				—
Actuarial loss (gain)	556				722				3				(21		)
Net transfers from variable fund/401(k) plan	11				13				—				—
Expenses paid	(6		)		(6		)		—				—
Benefits paid	(697		)		(653		)		(137		)		(126		)
Benefit obligation at end of year	12,824				12,265				657				652
Change in plan assets
Fair value of net plan assets at beginning of year	7,507				7,221				—				—
Actual return on plan assets	(325		)		648				—				—
Plan participants’ contributions	25				28				—				—
Collections(1)	—				—				94				93
Net transfers from variable fund/401(k) plan	11				13				—				—
Employer contributions(2)	282				256				43				33
Expenses paid	(6		)		(6		)		—				—
Benefits paid	(697		)		(653		)		(137		)		(126		)
Fair value of net plan assets at end of year	6,797				7,507				—				—
Funded status	$	(6,027	)		$	(4,758	)		$	(657	)		$	(652	)

Notes

(1) Collections include retiree contributions as well as federal reinsurance payments and provider discounts and rebates.

(2) Other Post-Retirement Benefits Employer contributions are reduced by federal reinsurance payments and provider discounts and rebates.

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, 2015 and 2014, 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
	2015				2014				2015				2014
Regulatory assets	$	5,425			$	4,157			$	140			$	140
Accounts payable and accrued liabilities	(6		)		(5		)		(37		)		(38		)
Pension and post-retirement benefit obligations(1)	(6,021		)		(4,753		)		(620		)		(614		)

Note

(1) Table above excludes $465 million and $472 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, 2015 and 2014, respectively.

Post-Retirement 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
	2015				2014				2015				2014
Unrecognized prior service credit	$	(158	)		$	(180	)		$	(33	)		$	(39	)
Unrecognized net loss	5,355				4,337				173				179
Amount capitalized due to actions of regulator	228				—				—				—
Total regulatory assets	$	5,425			$	4,157			$	140			$	140

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, 2015, and 2014, were as follows:

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets At September 30
	2015				2014
Projected benefit obligation	$	12,824			$	12,265
Accumulated benefit obligation	12,626				12,039
Fair value of net plan assets	6,797				7,507

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, 2015, and 2014, were as follows:

Components of Net Periodic Benefit Cost For the years ended September 30
	Pension Benefits												Other Post-Retirement Benefits
	2015				2014				2013				2015				2014				2013
Service cost	$	130			$	130			$	154			$	16			$	18			$	24
Interest cost	540				558				468				29				32				31
Expected return on plan assets	(437		)		(435		)		(428		)		—				—				—
Amortization of prior service credit	(21		)		(21		)		(22		)		(6		)		(6		)		(6		)
Recognized net actuarial loss	299				285				377				9				11				25
Total net periodic benefit cost as actuarially determined	511				517				549				48				55				74
Amount capitalized due to actions of regulator	(228		)		—				—				—				—				—
Total net period benefit cost	$	283			$	517			$	549			$	48			$	55			$	74

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 2016 At September 30, 2015
	Pension Benefits				Other Post-Retirement Benefits				Total
Prior service credit	$	(23	)		$	(6	)		$	(29	)
Net actuarial loss	291				8				299

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
	2015			2014			2015			2014
Assumptions utilized to determine benefit obligations at September 30
Discount rate	4.50	%		4.45	%		4.65	%		4.50	%
Rate of compensation increase	5.70	%		5.70	%		N/A			N/A
Initial health care cost trend rate	N/A			N/A			7.00	%		7.50	%
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
Assumptions utilized to determine net periodic benefit cost for the years ended September 30
Discount rate	4.45	%		5.00	%		4.50	%		5.05	%
Expected return on plan assets	7.00	%		7.25	%		N/A			N/A
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

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, 2015
Actuarial Assumption		Change in Assumption			Impact on 2015 Pension Cost				Impact on 2015 Projected Benefit Obligation
Discount rate		(0.25	)		$	18			$	404
Rate of return on plan assets		(0.25	)		16				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, 2015
	1% Increase				1% Decrease
Effect on total of service and interest cost components for the year	$	6			$	(6	)
Effect on end-of-year accumulated post-retirement benefit obligation	88				(94		)

Asset Holdings and Fair Value Measurements

At September 30, 2015 and 2014, the asset holdings of the system included the following:

Asset Holdings of TVARS At September 30
					Plan Assets at September 30
Asset Category		Target Allocation			2015			2014
Global equity		32	%		38	%		43	%
Private equity		10	%		5	%		5	%
Low volatility global public equity		5	%		5	%		1	%
Cash		2	%		2	%		2	%
Core fixed income		5	%		5	%		5	%
Long-term core fixed income		5	%		5	%		5	%
Investment grade credit		6	%		6	%		6	%
International emerging markets fixed income		5	%		5	%		5	%
High yield fixed income		5	%		6	%		6	%
Global TIPS		5	%		6	%		5	%
Private real assets		10	%		9	%		7	%
Commodities		5	%		4	%		4	%
MLPs		5	%		4	%		6	%
Total		100	%		100	%		100	%

Fair Value Measurements

The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2015:

TVA Retirement System At September 30, 2015
	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	$	1,650			$	1,649			$	—			$	1
Preferred securities	36				2				34				—
Debt securities
Corporate debt securities	1,161				—				1,149				12
Residential mortgage-backed securities	151				—				138				13
Debt securities issued by U.S. Treasury	362				362				—				—
Debt securities issued by foreign governments	294				—				281				13
Asset-backed securities	156				—				116				40
Debt securities issued by state/local governments	25				—				25				—
Commercial mortgage-backed securities	43				—				32				11
Commingled Funds measured at net asset value(3)
Equity	642				—				—				—
Debt	654				—				—				—
Commodity	244				—				—				—
Blended	206				—				—				—
Institutional mutual funds	26				26				—				—
Cash equivalents and other short-term investments	318				—				318				—
Certificates of deposit	6				—				6				—
Private equity measured at net asset value(3)	389				—				—				—
Private real estate measured at net asset value(3)	556				—				—				—
Treasury bills, U.S. Government notes, and securities held as futures and other derivative collateral	34				21				13				—
Securities lending commingled funds	3				—				3				—
Derivatives
Purchased options	2				—				1				1
Foreign currency forward receivable	6				—				6				—
Total Assets	$	6,964			$	2,060			$	2,122			$	91
Liabilities
Futures	17				$	17			$	—			$	—
Foreign currency forward payable	4				—				4				—
Written options	2				—				2				—
Interest rate swaps	10				—				10				—
Credit default swaps	1				—				1				—
Total Liabilities	$	34			$	17			$	17			$	—

Notes

(1) Excludes approximately $130 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.

(3) In accordance with Accounting Standards Codification Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

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	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 measured at net asset value(3)
Equity	1,106				—				—				—
Debt	661				—				—				—
Commodities	332				—				—				—
Blended	228				—				—				—
Institutional mutual funds	28				28				—				—
Cash equivalents and other short-term investments	464				—				464				—
Certificates of deposit	19				—				19				—
Private equity measured at net asset value(3)	481				—				—				—
Private real estate measured at net asset value(3)	435				—				—				—
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			$	2,487			$	66
Liabilities
Futures	11				$	11			$	—			$	—
Foreign currency forward payable	8				—				8				—
Written options	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.

(3) In accordance with Accounting Standards Codification Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

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, 2013	$	42
Net realized/unrealized gains (losses)	3
Purchases, sales, issuances, and settlements (net)	26
Transfers in and/or out of Level 3	(5		)
Balance at September 30, 2014	66
Net realized/unrealized gains (losses)	(2		)
Purchases, sales, issuances, and settlements (net)	33
Transfers in and/or out of Level 3	(6		)
Balance at September 30, 2015	$	91

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, 2015
	Pension Benefits				Other Post-Retirement Benefits
2016	$	741			$	39
2017	744				39
2018	748				39
2019	755				39
2020	764				39
2021 - 2025	3,903				178

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