XML 154 R47.htm IDEA: XBRL DOCUMENT v3.21.2

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Valuation Techniques

The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:

Level 1			—						Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2			—						Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3			—						Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.

Unrealized Investment Gains (Losses)

TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:

Unrealized Investment Gains (Losses) At or for the years ended September 30
Fund			Financial Statement Presentation						2021						2020
NDT			Regulatory asset						$	279					$	37
ART			Regulatory asset						145						32
SERP			Other income (expense)						7						3
DCP			Other income (expense)						1						2

Fair Value Measurements

Fair Value Measurements At September 30, 2021
			Quoted Prices in Active  Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Assets
Investments
Equity securities			$	634					$	—					$	—					$	634
Government debt securities(1)			573						24						—						597
Corporate debt securities(2)			—						411						—						411
Mortgage and asset-backed securities			—						63						—						63
Institutional mutual funds			225						—						—						225
Forward debt securities contracts			—						2						—						2
Private equity funds measured at net asset value(3)			—						—						—						357
Private real asset funds measured at net asset value(3)			—						—						—						272
Private credit measured at net asset value(3)			—						—						—						71
Commingled funds measured at net asset value(3)			—						—						—						1,421
Total investments			1,432						500						—						4,053
Commodity contract derivatives			—						250						—						250
Total			$	1,432					$	750					$	—					$	4,303
			Quoted Prices in Active Markets for Identical Liabilities (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Liabilities
Currency swaps(4)			$	—					$	83					$	—					$	83
Interest rate swaps			—						1,639						—						1,639
Commodity contract derivatives			—						3						—						3
Total			$	—					$	1,725					$	—					$	1,725

Notes

(1) Includes government-sponsored entities, including $573 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(2) Includes both U.S. and foreign debt.

(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

Fair Value Measurements At September 30, 2020
			Quoted Prices in Active  Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Assets
Investments
Equity securities			$	500					$	—					$	—					$	500
Government debt securities(1)			485						40						—						525
Corporate debt securities(2)			—						356						—						356
Mortgage and asset-backed securities			—						27						—						27
Institutional mutual funds			188						—						—						188
Forward debt securities contracts			—						13						—						13
Private equity funds measured at net asset value(3)			—						—						—						194
Private real asset funds measured at net asset value(3)			—						—						—						168
Private credit measured at net asset value(3)			—						—						—						53
Commingled funds measured at net asset value(3)			—						—						—						1,174
Total investments			1,173						436						—						3,198
Commodity contract derivatives			—						49						—						49
Total			$	1,173					$	485					$	—					$	3,247
			Quoted Prices in Active Markets for Identical Liabilities (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Liabilities
Currency swaps(4)			$	—					$	209					$	—					$	209
Interest rate swaps			—						2,041						—						2,041
Commodity contract derivatives			—						3						—						3
Total			$	—					$	2,253					$	—					$	2,253

Notes

(1) Includes government-sponsored entities.

(2) Includes both U.S. and foreign debt.

(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

Fair Value Measurements Using Significant Unobservable Inputs

The following table presents a reconciliation of all commodity contract derivatives measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

Fair Value Measurements Using Significant Unobservable Inputs (in millions)
			Commodity Contract Derivatives(1)
Balance at October 1, 2019			$	(4)
Settlements			(1)
Change in net unrealized gains (losses) deferred as regulatory assets and liabilities			5
Balance at September 30, 2020			$	—

Estimated Values of Financial Instruments Not Recorded at Fair Value

The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2021 and 2020, were as follows:

Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions)
									At September 30, 2021												At September 30, 2020
			Valuation Classification						Carrying Amount						Fair Value						Carrying Amount						Fair Value
EnergyRight® receivables, net (including current portion)			Level 2						$	72					$	71					$	87					$	86
Loans and other long-term receivables, net (including current portion)			Level 2						99						94						105						93
EnergyRight® financing obligations (including current portion)			Level 2						82						92						97						108
Unfunded loan commitments			Level 2						—						3						—						2
Membership interests of VIEs subject to mandatory redemption (including current portion)			Level 2						23						30						26						35
Long-term outstanding power bonds, net (including current maturities)			Level 2						18,485						24,309						19,743						26,630
Long-term debt of VIEs, net (including current maturities)			Level 2						1,049						1,307						1,089						1,419

X

- Definition

The tabular disclosure of the estimated values of financial instruments not recorded at fair value. This disclosure includes the class of financial instrument, valuation classification, carrying amount, and fair value.

+ References

No definition available.

+ Details

Name:	tve_EstimatedValuesOfFinancialInstrumentsNotRecordedAtFairValueTableTextBlock
Namespace Prefix:	tve_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets or liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset or liability.

+ References

No definition available.

+ Details

Name:	tve_FairValueassetsandliabilitiesMeasuredonRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix:	tve_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

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

X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of unrealized gains and losses on investments.

+ References

No definition available.

+ Details

Name:	us-gaap_UnrealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration