XML 66 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information

The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided.

PNM Electric
PNM Electric includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM Electric provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM Electric also includes the generation and sale of electricity into the wholesale market as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM's jurisdictional assets as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale and transmission rates.

TNMP Electric
TNMP Electric is an electric utility providing regulated transmission and distribution services in Texas under the TECA. TNMP's operations are subject to traditional rate regulation by the PUCT.

First Choice
First Choice, which was sold by PNMR on November 1, 2011 (Note 14), operated as a certified retail electric provider. First Choice provided electricity to residential, small commercial, and governmental customers. Although First Choice was regulated in certain respects by the PUCT, it was not subject to traditional rate regulation.

Corporate and Other

The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company.

The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.

PNMR SEGMENT INFORMATION
 
PNM
Electric
 
TNMP
Electric
 
First
Choice
 
Corporate
and Other
 
Consolidated
Three Months Ended March 31, 2012
(In thousands)
Electric operating revenues
$
250,416

 
$
54,958

 
 
 
$
—

 
$
305,374

Cost of energy
80,557

 
11,290

 
 
 
—

 
91,847

Gross margin
169,859

 
43,668

 
 
 
—

 
213,527

Other operating expenses
104,120

 
20,590

 
 
 
(3,326
)
 
121,384

Depreciation and amortization
23,634

 
11,287

 
 
 
3,493

 
38,414

Operating income (loss)
42,105

 
11,791

 
 
 
(167
)
 
53,729

Interest income
3,335

 
—

 
 
 
(43
)
 
3,292

Other income (deductions)
4,982

 
105

 
 
 
(2,539
)
 
2,548

Net interest charges
(18,493
)
 
(7,097
)
 
 
 
(3,976
)
 
(29,566
)
Segment earnings (loss) before income taxes
31,929

 
4,799

 
 
 
(6,725
)
 
30,003

Income taxes (benefit)
10,852

 
1,788

 
 
 
(3,114
)
 
9,526

Segment earnings (loss)
21,077

 
3,011

 
 
 
(3,611
)
 
20,477

Valencia non-controlling interest
(3,265
)
 
—

 
 
 
—

 
(3,265
)
Subsidiary preferred stock dividends
(132
)
 
—

 
 
 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
17,680

 
$
3,011

 
 
 
$
(3,611
)
 
$
17,080

 
 
 
 
 
 
 
 
 
 
At March 31, 2012:
 
 
 
 
 
 
 
 
 
Total Assets
$
4,031,859

 
$
1,037,616

 
 
 
$
128,421

 
$
5,197,896

Goodwill
$
51,632

 
$
226,665

 
 
 
$
—

 
$
278,297

Additions to utility and non-utility plant included in accounts payable
$
18,296

 
$
801

 
 
 
$
673

 
$
19,770

Three Months Ended March 31, 2011
 
Electric revenues from non-affiliates
$
234,238

 
$
45,028

 
$
108,450

 
$
(53
)
 
$
387,663

Intersegment revenues
—

 
8,814

 
—

 
(8,814
)
 
—

Total electric operating revenues
234,238

 
53,842

 
108,450

 
(8,867
)
 
387,663

Cost of energy
89,214

 
10,153

 
67,954

 
(8,814
)
 
158,507

Gross margin
145,024

 
43,689

 
40,496

 
(53
)
 
229,156

Other operating expenses
103,124

 
19,703

 
18,987

 
(3,351
)
 
138,463

Depreciation and amortization
23,735

 
10,262

 
280

 
4,196

 
38,473

Operating income (loss)
18,165

 
13,724

 
21,229

 
(898
)
 
52,220

Interest income
4,057

 
—

 
4

 
(33
)
 
4,028

Other income (deductions)
5,217

 
316

 
(106
)
 
(1,602
)
 
3,825

Net interest charges
(18,080
)
 
(7,299
)
 
(146
)
 
(5,090
)
 
(30,615
)
Segment earnings (loss) before income taxes
9,359

 
6,741

 
20,981

 
(7,623
)
 
29,458

Income taxes (benefit)
2,395

 
2,578

 
7,492

 
(2,959
)
 
9,506

Segment earnings (loss)
6,964

 
4,163

 
13,489

 
(4,664
)
 
19,952

Valencia non-controlling interest
(3,183
)
 
—

 
—

 
—

 
(3,183
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
3,649

 
$
4,163

 
$
13,489

 
$
(4,664
)
 
$
16,637

 
 
 
 
 
 
 
 
 
 
At March 31, 2011:
 
 
 
 
 
 
 
 
 
     Total Assets
$
3,866,571

 
$
1,011,252

 
$
215,457

 
$
120,446

 
$
5,213,726

     Goodwill
$
51,632

 
$
226,665

 
$
43,013

 
$
—

 
$
321,310