XML 38 R15.htm IDEA: XBRL DOCUMENT
v3.24.2

Other Long-Term Assets (Text Block) | 9 Months Ended
--- | ---
Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Long-Term Assets | Other Long-Term Assets The table below summarizes the types and amounts of TVA's other long-term assets:
Other Long-Term Assets (in millions)
| At June 30, 2024 |  | At September 30, 2023(1)
Loans and other long-term receivables, net | $ | 109 |  |  | $ | 97 |
Prepaid long-term service agreements | 52 |  |  | 64 |
EnergyRight® receivables, net | 44 |  |  | 47 |
Cloud assets | 31 |  |  | 15 |
Prepaid capital assets | 9 |  |  | 28 |
Commodity contract derivative assets | 9 |  |  | 12 |
Other | 81 |  |  | 67 |
Total other long-term assets | $ | 335 |  |  | $ | 330 |
Note (1) At September 30, 2023, $15 million previously classified as Other (a component of Other long-term assets) has been reclassified to Cloud assets (a component of Other long-term assets) to conform to current year presentation. Loans and Other Long-Term Receivables. TVA's loans and other long-term receivables primarily consist of economic development loans for qualifying organizations and a receivable for reimbursements to recover the cost of providing long-term, on-site storage for spent nuclear fuel. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At June 30, 2024 and September 30, 2023, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $11 million and $7 million, respectively. EnergyRight® Receivables. In association with the EnergyRight® program, TVA's local power company customers ("LPCs") offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At both June 30, 2024, and September 30, 2023, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million. See Note 10 — Other Long-Term Liabilities for information regarding the associated financing obligation. Allowance for Loan Losses. The allowance for loan loss is an estimate of expected credit losses, measured over the estimated life of the loan receivables, that considers reasonable and supportable forecasts of future economic conditions in addition to information about historical experience and current conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts. The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.
Allowance Components (in millions)
| At June 30, 2024 |  | At September 30, 2023
EnergyRight® loan reserve | $ | 1 |  |  | $ | 1 |
Economic development loan specific loan reserve | 1 |  |  | 1 |
Economic development loan collective reserve | — |  |  | 1 |
Total allowance for loan losses | $ | 2 |  |  | $ | 3 |
Prepaid Long-Term Service Agreements. TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under certain of these agreements, payments made exceed the value of parts received and services rendered. The current and long-term portions of the resulting prepayments are reported in Other current assets and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At June 30, 2024, and September 30, 2023, prepayments of $9 million and $25 million, respectively, were recorded in Other current assets. Cloud Assets. TVA has capitalized the implementation costs of hosting arrangements that are considered service contracts as cloud assets. The cloud assets are amortized over the term of the associated hosting arrangements. The current and long-term portions of the cloud assets are reported in Other current assets and Other long-term assets, respectively, on TVA’s Consolidated Balance Sheets. At June 30, 2024, and September 30, 2023, the carrying amount of the cloud assets reported in Other current assets was $9 million and $7 million, respectively. Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. See Note 13 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

X
- References No definition available. + Details
Name: | us-gaap_DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for other assets. This disclosure includes other current assets and other noncurrent assets. + References No definition available. + Details
Name: | us-gaap_OtherAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration