Other Long-Term Liabilities

Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as for environmental remediation liabilities and liabilities under agreements related to compliance with certain environmental regulations. See Note 8, Note 15 — Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives, and Note 21 — Legal Proceedings — Environmental Agreements. The table below summarizes the types and amounts of Other long-term liabilities:



Other Long-Term Liabilities At September 30
	2018		2017
Interest rate swap liabilities	$	1,122	$	1,418
Gallatin coal combustion residual facilities liability	862		880
Capital lease obligations	178		182
Currency swap liabilities	81		92
EnergyRight® financing obligation	102		115
Environmental agreements liability	11		13
Membership interests of VIE subject to mandatory redemption	28		30
Commodity contract derivative liabilities	8		9
Other	323		316
Total other long-term liabilities	$	2,715	$	3,055

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 Accounts payable and accrued liabilities and Other long-term liabilities on the consolidated balance sheets. As of September 30, 2018 and 2017, the carrying amount of the interest rate swap liabilities reported in Accounts payable and accrued liabilities was approximately $77 million and $93 million, respectively. See Note 15 — Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives for information regarding the interest rate swap liabilities.

EnergyRight^®Financing Obligation. TVA purchases certain loans receivable from its LPCs in association with the EnergyRight^® Solutions program. The current and long-term portions of the resulting financing obligation are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA’s consolidated balance sheets. As of September 30, 2018 and 2017, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was approximately $25 million and $29 million, respectively. See Note 6 for information regarding the associated loans receivable.