EX-12.1 3 pnm12312015ex121.htm EXHIBIT 12.1 Exhibit


 
Exhibit 12.1
 
 
PNM RESOURCES, INC. AND SUBSIDIARIES
 
Ratio of Earnings to Fixed Charges
 
(In thousands, except ratio)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
 
2015
 
2014
 
2013
 
2012
 
2011
 
 
Fixed charges, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
 
$
117,932

 
$
117,337

 
$
118,880

 
$
125,379

 
$
122,998

 
 
Amortization of debt premium, discount, and expenses
 
3,575

 
4,194

 
3,716

 
4,023

 
3,695

 
 
Estimated interest factor of lease rental charges
 
3,298

 
4,686

 
5,847

 
5,585

 
6,665

 
 
Preferred dividend requirements of subsidiary
 
784

 
809

 
800

 
769

 
864

 
 
     Total Fixed Charges
 
$
125,589

 
$
127,026

 
$
129,243

 
$
135,756

 
$
134,222

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations before income taxes and non-controlling interest
 
$
46,153

 
$
200,647

 
$
175,069

 
$
175,035

 
$
321,469

 
 
Fixed charges as above
 
125,589

 
127,026

 
129,243

 
135,756

 
134,222

 
 
Interest capitalized
 
(9,753
)
 
(6,256
)
 
(5,209
)
 
(5,432
)
 
(2,697
)
 
 
Non-controlling interest in earnings of Valencia
 
(14,910
)
 
(14,127
)
 
(14,521
)
 
(14,050
)
 
(14,047
)
 
 
Preferred dividend requirements of subsidiary
 
(784
)
 
(809
)
 
(800
)
 
(769
)
 
(864
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Available for Fixed Charges
 
$
146,295

 
$
306,481

 
$
283,782

 
$
290,540

 
$
438,083

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
1.16

1 
2.41

2 
2.20

3 
2.14

 
3.26

4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2015 includes a pre-tax loss of $167.5 million due to the write-off of regulatory disallowances and restructuring costs at PNM. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 2.50 for 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2014 includes a pre-tax loss of $1.1 million due to the write-off of regulatory disallowances at PNM. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 2.42 for 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2013 includes a pre-tax loss of $12.2 million due to the write-off of regulatory disallowances at PNM. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 2.29 for 2013.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes a pre-tax loss of $21.4 million due to the write-off of regulatory disallowances at PNM and TNMP. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 3.42. In addition, 2011 includes a pre-tax gain on the sale of First Choice of $174.9 million. If that gain were also excluded, the Ratio of Earnings to Fixed Charges would have been 1.96.