XML 74 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information
 6 Months Ended
Jun. 30, 2015
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
PNM includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM also provides generation service to firm-requirements wholesale customers and sells electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity into the wholesale market includes the optimization of PNM’s jurisdictional capacity, as well as the capacity from PVNGS Unit 3, which currently is not included in retail rates. FERC has jurisdiction over wholesale and transmission rates.

TNMP
TNMP 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.

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
 
TNMP
 
Corporate
and Other
 
Consolidated
 
(In thousands)
Three Months Ended June 30, 2015
 
Electric operating revenues
$
275,450

 
$
77,437

 
$
—

 
$
352,887

Cost of energy
95,728

 
18,310

 
—

 
114,038

Margin
179,722

 
59,127

 
—

 
238,849

Other operating expenses
103,541

 
20,807

 
(3,962
)
 
120,386

Depreciation and amortization
29,002

 
13,591

 
3,456

 
46,049

Operating income (loss)
47,179

 
24,729

 
506

 
72,414

Interest income
1,946

 
—

 
(5
)
 
1,941

Other income (deductions)
7,446

 
793

 
(673
)
 
7,566

Net interest charges
(19,681
)
 
(6,856
)
 
(2,376
)
 
(28,913
)
Segment earnings (loss) before income taxes
36,890

 
18,666

 
(2,548
)
 
53,008

Income taxes (benefit)
11,527

 
6,801

 
(975
)
 
17,353

Segment earnings (loss)
25,363

 
11,865

 
(1,573
)
 
35,655

Valencia non-controlling interest
(3,850
)
 
—

 
—

 
(3,850
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
21,381

 
$
11,865

 
$
(1,573
)
 
$
31,673

 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
Electric operating revenues
$
537,390

 
$
148,365

 
$
—

 
$
685,755

Cost of energy
193,594

 
36,089

 
—

 
229,683

Margin
343,796

 
112,276

 
—

 
456,072

Other operating expenses
207,557

 
42,567

 
(7,546
)
 
242,578

Depreciation and amortization
57,405

 
27,049

 
7,056

 
91,510

Operating income
78,834

 
42,660

 
490

 
121,984

Interest income
3,717

 
—

 
(26
)
 
3,691

Other income (deductions)
13,257

 
2,084

 
(2,452
)
 
12,889

Net interest charges
(39,640
)
 
(13,781
)
 
(5,765
)
 
(59,186
)
Segment earnings (loss) before income taxes
56,168

 
30,963

 
(7,753
)
 
79,378

Income taxes (benefit)
17,302

 
11,404

 
(2,836
)
 
25,870

Segment earnings (loss)
38,866

 
19,559

 
(4,917
)
 
53,508

Valencia non-controlling interest
(7,231
)
 
—

 
—

 
(7,231
)
Subsidiary preferred stock dividends
(264
)
 
—

 
—

 
(264
)
Segment earnings (loss) attributable to PNMR
$
31,371

 
$
19,559

 
$
(4,917
)
 
$
46,013

 
 
 
 
 
 
 
 
At June 30, 2015:
 
 
 
 
 
 
 
Total Assets
$
4,544,279

 
$
1,268,862

 
$
113,877

 
$
5,927,018

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297

 
PNM
 
TNMP
 
Corporate
and Other
 
Consolidated
 
(In thousands)
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
Electric operating revenues
$
275,704

 
$
70,456

 
$
—

 
$
346,160

Cost of energy
92,642

 
16,777

 
—

 
109,419

Margin
183,062

 
53,679

 
—

 
236,741

Other operating expenses
106,233

 
20,411

 
(3,362
)
 
123,282

Depreciation and amortization
27,023

 
12,003

 
3,137

 
42,163

Operating income
49,806

 
21,265

 
225

 
71,296

Interest income
2,065

 
—

 
(25
)
 
2,040

Other income (deductions)
5,512

 
514

 
(316
)
 
5,710

Net interest charges
(20,023
)
 
(6,655
)
 
(3,294
)
 
(29,972
)
Segment earnings (loss) before income taxes
37,360

 
15,124

 
(3,410
)
 
49,074

Income taxes (benefit)
13,106

 
5,590

 
(2,803
)
 
15,893

Segment earnings (loss)
24,254

 
9,534

 
(607
)
 
33,181

Valencia non-controlling interest
(3,908
)
 
—

 
—

 
(3,908
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
20,214

 
$
9,534

 
$
(607
)
 
$
29,141

 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
Electric operating revenues
$
538,441

 
$
136,616

 
$
—

 
$
675,057

Cost of energy
189,268

 
32,765

 
—

 
222,033

Margin
349,173

 
103,851

 
—

 
453,024

Other operating expenses
213,957

 
41,481

 
(6,593
)
 
248,845

Depreciation and amortization
54,105

 
23,844

 
6,181

 
84,130

Operating income
81,111

 
38,526

 
412

 
120,049

Interest income
4,193

 
—

 
(35
)
 
4,158

Other income (deductions)
7,180

 
702

 
(958
)
 
6,924

Net interest charges
(39,835
)
 
(13,252
)
 
(6,419
)
 
(59,506
)
Segment earnings (loss) before income taxes
52,649

 
25,976

 
(7,000
)
 
71,625

Income taxes (benefit)
17,189

 
9,640

 
(4,516
)
 
22,313

Segment earnings (loss)
35,460

 
16,336

 
(2,484
)
 
49,312

Valencia non-controlling interest
(7,439
)
 
—

 
—

 
(7,439
)
Subsidiary preferred stock dividends
(264
)
 
—

 
—

 
(264
)
Segment earnings (loss) attributable to PNMR
$
27,757

 
$
16,336

 
$
(2,484
)
 
$
41,609

 
 
 
 
 
 
 
 
At June 30, 2014:
 
 
 
 
 
 
 
Total Assets
$
4,290,529

 
$
1,208,517

 
$
105,146

 
$
5,604,192

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297