Segment Reporting
TVA operates as a single reportable segment that includes the generation, transmission, and sale of electricity throughout the Tennessee Valley. Revenue is primarily derived from wholesale electricity sales to LPCs and directly served customers. TVA's Chief Executive Officer ("CEO") serves as the CODM. The CODM uses net income in the annual planning process and to monitor budget versus actual results on a monthly basis in assessing financial performance and in determining how to allocate resources.
The following table includes operating revenues, expenses, and net income as regularly provided to the CODM, which align directly to the amounts presented in TVA’s Consolidated Statements of Operations. As the segment measure used by the CODM is net income, no reconciliation is necessary.
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For the years ended September 30 (in millions) |
| 2025 | | 2024(2) | | 2023(2) |
| | | | | |
| Base Revenue | $ | 9,415 | | | $ | 8,725 | | | $ | 7,863 | |
| Fuel Revenue | 4,068 | | | 3,398 | | | 4,025 | |
| Other Revenue | 189 | | 191 | | | 166 | |
| Total Operating Revenue | 13,672 | | | 12,314 | | | 12,054 | |
| | | | | |
| Fuel | 2,376 | | | 2,169 | | | 2,549 | |
| Purchased Power | 2,106 | | | 1,581 | | | 1,633 | |
| Operating and Maintenance | 3,717 | | | 3,641 | | | 3,372 | |
| Depreciation and Amortization | 2,271 | | | 2,138 | | | 2,213 | |
| Interest Expense | 1,196 | | | 1,066 | | | 1,056 | |
| Tax Equivalents | 633 | | | 557 | | | 593 | |
Other Segment Items(1) | 13 | | | 27 | | | 138 | |
| Net Income | $ | 1,360 | | | $ | 1,135 | | | $ | 500 | |
Notes
(1) Other segment items include non-utility related miscellaneous income and expenses, pension and post-retirement benefit costs, and interest income.
(2) Prior period amounts have been reclassified to conform to the current period presentation resulting from the retrospective adoption of ASU 2023-07, Segment Reporting. Expanded segment disclosures were not required in the comparative periods presented because the company operated, and continues to operate, as a single reportable segment for which detailed segment expense disclosures were not previously required.
Segment asset information is not presented, as it is not regularly reviewed by the CODM. The CODM evaluates capital planning and resource allocation on a consolidated basis which is presented in TVA's Consolidated Balance Sheet.
Capital expenditures were $5.0 billion, $3.9 billion, and $3.0 billion for the years ended September 30, 2025, 2024, and 2023, respectively.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.