XML 58 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Pension and Other Postretirement Benefit Plans | 6 Months Ended
--- | ---
Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract] |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (“PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. Additional information concerning pension and OPEB plans is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2013 Annual Reports on Form 10-K. Annual net periodic benefit cost (income) for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year. The Society of Actuaries has proposed a change in mortality assumptions to reflect increased life expectancy and the corresponding decrease in mortality rates. If adopted, this change will have impacts on the Company’s pension plans, as the mortality assumptions are used as the basis for stating the pension obligation in financial statements, determining funding requirements, and making minimum lump-sum calculations. The Company, with the assistance of its consulting actuaries, is studying the impact of the mortality table changes. This study is on-going and subject to change. Preliminary estimates indicate that, beginning in 2016, the Company’s pension liabilities could increase by as much as 7% over those using the current mortality assumptions. Although pension expense and funding requirements also will likely increase, these changes are not expected to be material. PNM Plans The following tables present the components of the PNM Plans’ net periodic benefit cost:
| Three Months Ended June 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2014 |  | 2013 |  | 2014 |  | 2013 |  | 2014 |  | 2013
| (In thousands)
Components of Net Periodic |  |  |  |  |  |  |  |  |  |  |
Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 45 |  |  | $ | 65 |  |  | $ | — |  |  | $ | — |
Interest cost | 7,541 |  |  | 7,035 |  |  | 1,159 |  |  | 1,029 |  |  | 205 |  |  | 180 |
Expected return on plan assets | (9,511 | ) |  | (10,482 | ) |  | (1,410 | ) |  | (1,261 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 3,255 |  |  | 3,710 |  |  | 556 |  |  | 1,061 |  |  | 52 |  |  | 58 |
Amortization of prior service cost | (241 | ) |  | 19 |  |  | (336 | ) |  | (336 | ) |  | — |  |  | — |
Net periodic benefit cost | $ | 1,044 |  |  | $ | 282 |  |  | $ | 14 |  |  | $ | 558 |  |  | $ | 257 |  |  | $ | 238 |
| Six Months Ended June 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2014 |  | 2013 |  | 2014 |  | 2013 |  | 2014 |  | 2013
| (In thousands)
Components of Net Periodic |  |  |  |  |  |  |  |  |  |  |
Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 91 |  |  | $ | 130 |  |  | $ | — |  |  | $ | — |
Interest cost | 15,082 |  |  | 14,071 |  |  | 2,315 |  |  | 2,057 |  |  | 411 |  |  | 360 |
Expected return on plan assets | (19,022 | ) |  | (20,965 | ) |  | (2,819 | ) |  | (2,522 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 6,510 |  |  | 7,420 |  |  | 1,113 |  |  | 2,121 |  |  | 105 |  |  | 116 |
Amortization of prior service cost | (483 | ) |  | 38 |  |  | (672 | ) |  | (672 | ) |  | — |  |  | — |
Net periodic benefit cost | $ | 2,087 |  |  | $ | 564 |  |  | $ | 28 |  |  | $ | 1,114 |  |  | $ | 516 |  |  | $ | 476 |
PNM does not anticipate making any contributions to its pension trust in 2014 due to the current funded status of the pension plan. PNM made contributions to its pension plan trust of zero and $60.0 million in the three and six months ended June 30, 2013. Based on current law, including recent amendments to funding requirements, and estimates of portfolio performance, contributions to the PNM pension plan trust for 2015-2018 are estimated to total $61.5 million. These anticipated contributions were developed using current funding assumptions, with discount rates of 5.2% to 5.5%. Actual amounts required to be funded in the future will depend on the actuarial assumptions at that time, including the appropriate discount rate. PNM may make additional contributions at its discretion. PNM made contributions to the OPEB trust of $0.8 million and $1.6 million in the three and six months ended June 30, 2014 and $1.1 million and $1.6 million in the three and six months ended June 30, 2013. PNM expects to make contributions to the OPEB trust totaling $3.3 million in 2014 and $14.0 million for 2015-2018. Disbursements under the executive retirement program, which are funded by PNM and considered to be contributions to the plan, were $0.4 million and $0.7 million in the three and six months ended June 30, 2014 and $0.4 million and $0.8 million in the three and six months ended June 30, 2013 and are expected to total $1.5 million during 2014. TNMP Plans The following tables present the components of the TNMP Plans’ net periodic benefit cost (income):
| Three Months Ended June 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2014 |  | 2013 |  | 2014 |  | 2013 |  | 2014 |  | 2013
| (In thousands)
Components of Net Periodic |  |  |  |  |  |  |  |  |  |  |
Benefit Cost (Income) |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 59 |  |  | $ | 75 |  |  | $ | — |  |  | $ | — |
Interest cost | 798 |  |  | 772 |  |  | 155 |  |  | 141 |  |  | 10 |  |  | 9 |
Expected return on plan assets | (1,132 | ) |  | (1,212 | ) |  | (133 | ) |  | (126 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 166 |  |  | 262 |  |  | (31 | ) |  | — |  |  | — |  |  | — |
Amortization of prior service cost | — |  |  | — |  |  | 8 |  |  | 14 |  |  | — |  |  | — |
Net Periodic Benefit Cost (Income) | $ | (168 | ) |  | $ | (178 | ) |  | $ | 58 |  |  | $ | 104 |  |  | $ | 10 |  |  | $ | 9 |
| Six Months Ended June 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2014 |  | 2013 |  | 2014 |  | 2013 |  | 2014 |  | 2013
| (In thousands)
Components of Net Periodic |  |  |  |  |  |  |  |  |  |  |
Benefit Cost (Income) |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 119 |  |  | $ | 150 |  |  | $ | — |  |  | $ | — |
Interest cost | 1,597 |  |  | 1,544 |  |  | 309 |  |  | 283 |  |  | 20 |  |  | 18 |
Expected return on plan assets | (2,263 | ) |  | (2,425 | ) |  | (267 | ) |  | (252 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 333 |  |  | 524 |  |  | (61 | ) |  | — |  |  | — |  |  | — |
Amortization of prior service cost | — |  |  | — |  |  | 16 |  |  | 28 |  |  | — |  |  | — |
Net Periodic Benefit Cost (Income) | $ | (333 | ) |  | $ | (357 | ) |  | $ | 116 |  |  | $ | 209 |  |  | $ | 20 |  |  | $ | 18 |
TNMP does not anticipate making additional contributions to its pension trust in 2014 due to the current funded status of the pension plan. TNMP made contributions to its pension plan trust of zero and $1.0 million in the three and six months ended June 30, 2013. Based on current law, including recent amendments to funding requirements, and estimates of portfolio performance, TNMP estimates there would be no contributions to its pension plan trust for 2015-2018. The anticipated contributions were developed using current funding assumptions, including discount rates of 5.2% and 5.5%. Actual amounts to be funded in the future will depend on the actuarial assumptions at that time, including the appropriate discount rate. TNMP may make additional contributions at its discretion. TNMP made contributions to the OPEB trust of $0.3 million in the three and six months ended June 30, 2014 and $0.3 million in the three and six months ended June 30, 2013. TNMP expects to make contributions to the OPEB trust totaling $0.3 million in 2014 and $1.4 million for 2015-2018. Disbursements under the executive retirement program, which are funded by TNMP and considered to be contributions to the plan, were less than $0.1 million in the three and six months ended June 30, 2014 and 2013 and are expected to total $0.1 million during 2014.

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

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6414718&loc=d3e28014-114942 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35742057&loc=SL14450702-114947 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6414199&loc=d3e39622-114963 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration