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Debt and Other Obligations | 6 Months Ended
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Mar. 31, 2018
Debt Disclosure [Abstract] |
Debt and Other Obligations | Debt and Other Obligations Debt Outstanding Total debt outstanding at March 31, 2018, and September 30, 2017, consisted of the following:
Debt Outstanding
| At March 31, 2018 |  | At September 30, 2017
Short-term debt |  |  |
Short-term debt, net | $ | 1,998 |  |  | $ | 1,998 |
Current maturities of power bonds | 2,031 |  |  | 1,728 |
Current maturities of long-term debt of variable interest entities | 37 |  |  | 36 |
Current maturities of notes payable | 46 |  |  | 53 |
Total current debt outstanding, net | 4,112 |  |  | 3,815 |
Long-term debt |  |  |  |  |
Long-term power bonds(1) | 20,391 |  |  | 20,357 |
Long-term debt of variable interest entities | 1,156 |  |  | 1,175 |
Long-term notes payable | 47 |  |  | 69 |
Unamortized discounts, premiums, issue costs, and other | (160 | ) |  | (163 | )
Total long-term debt, net | 21,434 |  |  | 21,438 |
Total outstanding debt | $ | 25,546 |  |  | $ | 25,253 |
Note (1) Includes net exchange gain from currency transactions of $87 million and $125 million at March 31, 2018, and September 30, 2017, respectively. Debt Securities Activity The table below summarizes the long-term debt securities activity for the period from October 1, 2017, to March 31, 2018:
Debt Securities Activity
|  | Date |  | Amount(1) |  | Interest Rate
Issues |  |  |  |  |  |
2018 Series A(2) |  | March 2018 |  | $ | 1,000 |  |  | 2.25 | %
Discount on debt issues |  |  |  | (2 | ) |  |
Total long-term debt issuances |  |  |  | $ | 998 |  |  |
Redemptions/Maturities |  |  |  |  |  |
electronotes® |  | First Quarter 2018 |  | $ | 47 |  |  | 4.10 | %
electronotes® |  | Second Quarter 2018 |  | 2 |  |  | 3.50 | %
1997 Series E |  | First Quarter 2018 |  | 650 |  |  | 6.25 | %
2009 Series B |  | First Quarter 2018 |  | 1 |  |  | 3.77 | %
Total redemptions/maturities of power bonds |  |  |  | 700 |  |  |  |
Notes payable |  |  |  | 29 |  |  | 0.86 | %
Debt of variable interest entities |  |  |  | 18 |  |  | 4.31 | %
Total redemptions/maturities of debt |  |  |  | $ | 747 |  |  |  |
Notes (1) All redemptions were at 100 percent of par. (2) The 2018 Series A bonds were issued at 99.8 percent of par. Credit Facility Agreements TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2018 with a maturity date of September 30, 2018. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the United States with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at March 31, 2018. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit. TVA also has funding available under four long-term revolving credit facilities totaling $2.7 billion: a $150 million credit facility that matures on December 12, 2019, a $500 million credit facility that matures on February 1, 2022, a $1.0 billion credit facility that matures on June 2, 2020, and a $1.0 billion credit facility that matures on September 30, 2020. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At March 31, 2018, and September 30, 2017, there were approximately $0.9 billion and $1.2 billion, respectively, of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 13 — Other Derivative Instruments — Collateral. The following table provides additional information regarding TVA's funding available under the four long-term credit facilities:
Summary of Long-Term Credit Facilities At March 31, 2018
| Facility Limit |  | Letters of Credit Outstanding |  | Cash Borrowings |  | Availability
Maturity Date |  |  |  |  |  |  |
December 2019 | $ | 150 |  |  | $ | 38 |  |  | $ | — |  |  | $ | 112 |
February 2022 | 500 |  |  | 500 |  |  | — |  |  | — |
June 2020 | 1,000 |  |  | 171 |  |  | — |  |  | 829 |
September 2020 | 1,000 |  |  | 212 |  |  | — |  |  | 788 |
Total | $ | 2,650 |  |  | $ | 921 |  |  | $ | — |  |  | $ | 1,729 |
Lease/Leasebacks TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking combustion turbine units ("CTs") as well as certain qualified technological equipment and software (collectively, "QTE"). Due to TVA's continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. On September 20, 2017, TVA acquired 100 percent of the equity interests in two special purpose entities ("SPEs") created for the purpose of facilitating a portion of the leaseback arrangements. As a result of the acquisition, TVA effectively settled $70 million of its leaseback obligations related to eight CTs. On July 20, 2016, TVA acquired 100 percent of the equity interests in two SPEs created for the purpose of facilitating lease/leaseback arrangements. As a result of the acquisition, TVA effectively settled $70 million of its leaseback obligations related to eight CTs. At March 31, 2018, and September 30, 2017, the outstanding leaseback obligations related to the remaining CTs and QTE were $302 million and $338 million, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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