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Debt and Other Obligations | 6 Months Ended
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Mar. 31, 2020
Debt Disclosure [Abstract] |
Debt and Other Obligations | Debt and Other Obligations Debt Outstanding Total debt outstanding at March 31, 2020, and September 30, 2019, consisted of the following:
Debt Outstanding (in millions)
| At March 31, 2020 |  | At September 30, 2019
Short-term debt |  |  |
Short-term debt, net | $ | 1,875 |  |  | $ | 922 |
Current maturities of power bonds issued at par | 1,552 |  |  | 1,030 |
Current maturities of long-term debt of VIEs issued at par | 40 |  |  | 39 |
Current maturities of notes payable | 22 |  |  | 23 |
Total current debt outstanding, net | 3,489 |  |  | 2,014 |
Long-term debt |  |  |  |  |
Long-term power bonds(1) | 17,491 |  |  | 19,225 |
Long-term debt of VIEs, net | 1,069 |  |  | 1,089 |
Unamortized discounts, premiums, issue costs, and other | (121 | ) |  | (131 | )
Total long-term debt, net | 18,439 |  |  | 20,183 |
Total debt outstanding | $ | 21,928 |  |  | $ | 22,197 |
Note (1) Includes net exchange gain from currency transactions of $183 million and $191 million at March 31, 2020, and September 30, 2019, respectively. The increase in short-term debt of approximately $1.0 billion is primarily a result of power bond maturities and increased short-term debt issuance to hold a higher cash balance. Due to recent higher volatility in the financial markets associated with the COVID-19 pandemic, TVA increased its target balance of Cash and cash equivalents by $500 million through discount note issuances. Debt Securities Activity The table below summarizes the long-term debt securities activity for the period from October 1, 2019, to March 31, 2020:
Debt Securities Activity(1)
|  | Date |  | Amount(2) (in millions) |  | Interest Rate
Redemptions/Maturities |  |  |  |  |  |
electronotes® |  | First Quarter 2020 |  | $ | 217 |  |  | 3.33 | %
2009 Series B |  | December 2019 |  | 1 |  |  | 3.77 | %
2018 Series A |  | March 2020 |  | 1,000 |  |  | 2.25 | %
Total redemptions/maturities of power bonds |  |  |  | 1,218 |  |  |  |
Debt of variable interest entities |  |  |  | 20 |  |  | 4.32 | %
Total redemptions/maturities of debt |  |  |  | $ | 1,238 |  |  |  |
Notes (1) Amounts for notes payable were less than $1 million at March 31, 2020, and are therefore not represented in the table above. (2) All redemptions were at 100 percent of par. Credit Facility Agreements TVA has funding available under four long-term revolving credit facilities totaling $2.7 billion: a $150 million credit facility that matures on December 11, 2021, a $1.0 billion credit facility that matures on June 13, 2023, a $1.0 billion credit facility that matures on September 28, 2023, and a $500 million credit facility that matures on February 1, 2025. 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, 2020, and September 30, 2019, there were approximately $1.4 billion and $1.3 billion, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 14 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral. The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:
Summary of Long-Term Credit Facilities At March 31, 2020 (in millions)
|  | Facility Limit |  | Letters of Credit Outstanding |  | Cash Borrowings |  | Availability
Maturity Date |  |  |  |  |  |  |  |
December 2021 |  | $ | 150 |  |  | $ | 38 |  |  | $ | — |  |  | $ | 112 |
June 2023 |  | 1,000 |  |  | 409 |  |  | — |  |  | 591 |
September 2023 |  | 1,000 |  |  | 450 |  |  | — |  |  | 550 |
February 2025 |  | 500 |  |  | 500 |  |  | — |  |  | — |
Total |  | $ | 2,650 |  |  | $ | 1,397 |  |  | $ | — |  |  | $ | 1,253 |
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 in 2019 with a maturity date of September 30, 2020. 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 U.S. with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at March 31, 2020. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit. 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 ("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. At March 31, 2020, and September 30, 2019, the outstanding leaseback obligations related to the remaining CTs and QTE were $223 million and $263 million, respectively. In March 2019, TVA made final rent payments under lease/leaseback transactions involving eight CTs, and TVA had previously acquired the equity interests related to these transactions. These transactions were terminated in July 2019. Final rent payments are scheduled to be made under the remaining CT lease/leaseback transactions on various dates from May 2020 to January 2022. TVA has already acquired the equity interests related to transactions involving eight of these CTs and will have the option to acquire the equity interests related to transactions involving the remaining eight CTs for additional amounts. In addition, on October 30, 2019, TVA provided notice of its intent to purchase the ownership interest in certain QTE. Repurchase payments are expected to be paid through a series of installments in 2021 and 2022, after which the associated leases will be terminated.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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