XML 149 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2011
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes PNMR PNMR’s income taxes (benefit) from continuing operations consist of the following components:
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
| (In thousands)
Current federal income tax | $ | 1,319 |  |  | $ | (52,184 | ) |  | $ | (81,963 | )
Current state income tax | (4,208 | ) |  | (15,528 | ) |  | (3,770 | )
Deferred federal income tax | 119,280 |  |  | 28,364 |  |  | 112,707 |
Deferred state income tax | 7,462 |  |  | 9,522 |  |  | 4,393 |
Amortization of accumulated investment tax credits | (2,318 | ) |  | (2,429 | ) |  | (2,549 | )
Total income taxes (benefit) | $ | 121,535 |  |  | $ | (32,255 | ) |  | $ | 28,818 |
PNMR’s provision for income taxes from continuing operations differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors:
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
| (In thousands)
Federal income tax at statutory rates | $ | 109,364 |  |  | $ | (22,183 | ) |  | $ | 33,163 |
First Choice goodwill | 15,055 |  |  | — |  |  | — |
Investment tax credits | (2,318 | ) |  | (2,429 | ) |  | (2,549 | )
Flow-through of depreciation items | 3,659 |  |  | 3,995 |  |  | 3,777 |
Earnings attributable to non-controlling interest in Valencia | (4,917 | ) |  | (4,747 | ) |  | (4,162 | )
State income tax | 3,395 |  |  | (6,312 | ) |  | 344 |
Other | (2,703 | ) |  | (579 | ) |  | (1,755 | )
Total income taxes (benefit) | $ | 121,535 |  |  | $ | (32,255 | ) |  | $ | 28,818 |
Effective tax rate | 38.9 | % |  | 50.89 | % |  | 30.41 | %
The components of PNMR’s net accumulated deferred income tax liability were:
| December 31,
| 2011 |  | 2010
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss | $ | 86,985 |  |  | $ | 72,950 |
Pension | 50,515 |  |  | 58,267 |
Regulatory liabilities related to income taxes | 49,413 |  |  | 17,037 |
Optim Energy | — |  |  | 46,508 |
Other | 109,875 |  |  | 96,379 |
Total deferred tax assets | 296,788 |  |  | 291,141 |
Deferred tax liabilities: |  |  |
Depreciation and plant related | (697,528 | ) |  | (579,505 | )
Investment tax credit | (15,771 | ) |  | (18,089 | )
Regulatory assets related to income taxes | (56,312 | ) |  | (53,287 | )
Stranded costs | (28,439 | ) |  | (33,287 | )
Other | (168,688 | ) |  | (164,282 | )
Total deferred tax liabilities | (966,738 | ) |  | (848,450 | )
Net accumulated deferred income tax liabilities | (669,950 | ) |  | (557,309 | )
Current accumulated deferred income tax (asset) liability | 9,080 |  |  | (886 | )
Non-current accumulated deferred income tax liability | $ | (660,870 | ) |  | $ | (558,195 | )
The following table reconciles the change in PNMR’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings:
| Year Ended
| December 31, 2011
| (In thousands)
Net change in deferred income tax liability per above table | $ | 112,641 |
Change in tax effects of income tax related regulatory assets and liabilities | 29,427 |
Tax effect of mark-to-market adjustments | (356 | )
Tax effect of excess pension liability | (508 | )
Adjustment for uncertain income tax positions | (16,555 | )
Other | (225 | )
Deferred income taxes | $ | 124,424 |
PNM PNM’s income taxes (benefit) from continuing operations consist of the following components:
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
| (In thousands)
Current federal income tax | $ | (46,364 | ) |  | $ | (77,691 | ) |  | $ | (64,342 | )
Current state income tax | (6,776 | ) |  | 438 |  |  | (13,621 | )
Deferred federal income tax | 78,673 |  |  | 109,170 |  |  | 77,264 |
Deferred state income tax | 14,212 |  |  | 6,939 |  |  | 16,974 |
Amortization of accumulated investment tax credits | (2,318 | ) |  | (2,429 | ) |  | (2,549 | )
Total income taxes | $ | 37,427 |  |  | $ | 36,427 |  |  | $ | 13,726 |
PNM’s provision for income taxes from continuing operations differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors:
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
| (In thousands)
Federal income tax at statutory rates | $ | 37,088 |  |  | $ | 37,551 |  |  | $ | 15,969 |
Investment tax credits | (2,318 | ) |  | (2,429 | ) |  | (2,549 | )
Flow-through of depreciation items | 3,656 |  |  | 3,994 |  |  | 3,776 |
Earnings attributable to non-controlling interest in Valencia | (4,917 | ) |  | (4,747 | ) |  | (4,162 | )
State income tax | 4,797 |  |  | 4,747 |  |  | 1,933 |
Other | (879 | ) |  | (2,689 | ) |  | (1,241 | )
Total income taxes | $ | 37,427 |  |  | $ | 36,427 |  |  | $ | 13,726 |
Effective tax rate | 35.32 | % |  | 33.95 | % |  | 30.08 | %
The components of PNM’s net accumulated deferred income tax liability were:
| December 31,
| 2011 |  | 2010
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss | $ | 72,615 |  |  | $ | 66,320 |
Pension | 54,270 |  |  | 61,055 |
Regulatory liabilities related to income taxes | 43,578 |  |  | 10,779 |
Other | 47,263 |  |  | 52,161 |
Total deferred tax assets | 217,726 |  |  | 190,315 |
Deferred tax liabilities: |  |  |
Depreciation and plant related | (570,278 | ) |  | (476,533 | )
Investment tax credit | (15,771 | ) |  | (18,089 | )
Regulatory assets related to income taxes | (45,331 | ) |  | (42,070 | )
Other | (123,098 | ) |  | (128,152 | )
Total deferred tax liabilities | (754,478 | ) |  | (664,844 | )
Net accumulated deferred income tax liabilities | (536,752 | ) |  | (474,529 | )
Current accumulated deferred income tax liability | 16,562 |  |  | 9,783 |
Non-current accumulated deferred income tax liability | $ | (520,190 | ) |  | $ | (464,746 | )
The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings:
| Year Ended
| December 31, 2011
| (In thousands)
Net change in deferred income tax liability per above table | $ | 62,223 |
Change in tax effects of income tax related regulatory assets and liabilities | 29,539 |
Tax effect of mark-to-market adjustments | 367 |
Tax effect of excess pension liability | (360 | )
Adjustment for uncertain income tax positions | (1,196 | )
Other | (6 | )
Deferred income taxes | $ | 90,567 |
TNMP TNMP’s income taxes from continuing operations consist of the following components:
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
| (In thousands)
Current federal income tax | $ | (3,578 | ) |  | $ | 3,532 |  |  | $ | (25,237 | )
Current state income tax | 1,981 |  |  | 1,766 |  |  | 1,584 |
Deferred federal income tax | 15,507 |  |  | 4,775 |  |  | 31,664 |
Deferred state income tax | (29 | ) |  | (29 | ) |  | (26 | )
Total income taxes | $ | 13,881 |  |  | $ | 10,044 |  |  | $ | 7,985 |
TNMP’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the periods shown. The differences are attributable to the following factors:
| Year Ended December 31,
| 2011 |  | 2010 |  | 2009
| (In thousands)
Federal income tax at statutory rates | $ | 12,648 |  |  | $ | 9,109 |  |  | $ | 7,053 |
State income tax | 1,288 |  |  | 1,148 |  |  | 1,032 |
Other | (55 | ) |  | (213 | ) |  | (100 | )
Total income taxes | $ | 13,881 |  |  | $ | 10,044 |  |  | $ | 7,985 |
Effective tax rate | 38.41 | % |  | 38.59 | % |  | 39.63 | %
The components of TNMP’s net accumulated deferred income tax liability at December 31, were:
| December 31,
| 2011 |  | 2010
| (In thousands)
Deferred tax assets: |  |  |
Regulatory liabilities related to income taxes | $ | 5,835 |  |  | $ | 6,259 |
Other | 16,043 |  |  | 16,638 |
Total deferred tax assets | 21,878 |  |  | 22,897 |
Deferred tax liabilities: |  |  |
Depreciation and plant related | (125,270 | ) |  | (103,456 | )
Stranded costs | (28,439 | ) |  | (33,287 | )
Regulatory assets related to income taxes | (10,981 | ) |  | (11,217 | )
Other | (14,113 | ) |  | (15,182 | )
Total deferred tax liabilities | (178,803 | ) |  | (163,142 | )
Net accumulated deferred income tax liabilities | (156,925 | ) |  | (140,245 | )
Current accumulated deferred income tax (asset) | (2,272 | ) |  | (1,876 | )
Non-current accumulated deferred income tax liability | $ | (159,197 | ) |  | $ | (142,121 | )
The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax benefit included in the Consolidated Statement of Earnings:
| Year Ended
| December 31, 2011
| (In thousands)
Net change in deferred income tax liability per above table | $ | 16,680 |
Change in tax effects of income tax related regulatory assets and liabilities | (112 | )
Tax effect of excess pension liability | (148 | )
Adjustments for uncertain income tax positions | (87 | )
Other | (855 | )
Deferred income taxes | $ | 15,478 |
GAAP requires that the Company recognize only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. A reconciliation of unrecognized tax benefits (expenses) is as follows:
| PNMR |  | PNM |  | TNMP
| (In thousands)
Balance at December 31, 2008 | $ | 16,388 |  |  | $ | 69 |  |  | $ | 541 |
Additions based on tax positions related to 2009 | 6,633 |  |  | (287 | ) |  | 6,255 |
Reductions for tax positions of prior years | (430 | ) |  | — |  |  | — |
Settlements | — |  |  | — |  |  | — |
Balance at December 31, 2009 | 22,591 |  |  | (218 | ) |  | 6,796 |
Additions based on tax positions related to 2010 | 13,514 |  |  | 12,136 |  |  | 992 |
Reductions for tax positions of prior years | — |  |  | — |  |  | — |
Settlements | — |  |  | — |  |  | — |
Balance at December 31, 2010 | 36,105 |  |  | 11,918 |  |  | 7,788 |
Additions based on tax positions related to 2011 | (790 | ) |  | (717 | ) |  | (74 | )
Reductions for tax positions of prior years | (15,735 | ) |  | (449 | ) |  | (13 | )
Settlements | — |  |  | — |  |  | — |
Balance at December 31, 2011 | $ | 19,580 |  |  | $ | 10,752 |  |  | $ | 7,701 |
Included in the balance at December 31, 2011 are $3.8 million and $0.5 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate for PNMR and PNM. None of TNMP’s unrecognized tax benefits at December 31, 2011 would affect the effective tax rate if recognized. The Company believes that it is reasonably possible that approximately $16.8 million of PNMR’s unrecognized tax expenses, $8.7 million of PNM’s unrecognized tax expenses, and $7.5 million of TNMP’s unrecognized tax benefits will be reduced or settled in 2012 as a result of the conclusion of income tax examinations. Estimated interest income related to refunds the Company expects to receive is included in Other Income and estimated interest expense and penalties related to potential cash settlements are included in Interest Expense in the Consolidated Statements of Earnings (Loss). Interest income (expense) related to income taxes is as follows:
| PNMR |  | PNM |  | TNMP
| (In thousands)
2011 | $ | 467 |  |  | $ | 401 |  |  | $ | 2 |
2010 | $ | 397 |  |  | $ | 465 |  |  | $ | (8 | )
2009 | $ | 6,418 |  |  | $ | 7,746 |  |  | $ | (6 | )
Accumulated accrued interest receivable (payable) related to income taxes is as follows:
| PNMR |  | PNM |  | TNMP
| (In thousands)
December 31, 2011: |  |  |  |  |
Accumulated accrued interest receivable | $ | 3,552 |  |  | $ | 3,552 |  |  | $ | — |
Accumulated accrued interest payable | $ | (1,107 | ) |  | $ | (23 | ) |  | $ | (113 | )
December 31, 2010: |  |  |  |  |
Accumulated accrued interest receivable | $ | 4,001 |  |  | $ | 4,001 |  |  | $ | — |
Accumulated accrued interest payable | $ | (1,174 | ) |  | $ | (23 | ) |  | $ | (115 | )
The Company files a federal consolidated and several consolidated and separate state income tax returns. The tax years prior to 2003 are closed to examination by either federal or state taxing authorities. Tax year 2003 is open for examination only for certain items. Tax year 2004 is closed to examination by federal and state taxing authorities. Other tax years are open to examination by federal and state taxing authorities. At December 31, 2011, the Company has $139.9 million of federal net operating loss carryforwards that expire in 2030 and $24.3 million of federal tax credit carryforwards that expire beginning in 2023. State net operating losses expire beginning in 2015 and vary from federal due to differences between state and federal tax law.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration