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Segment Information
 3 Months Ended
Mar. 31, 2016
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 activities of PNMR Development and NM Capital are also included in Corporate and Other.

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 March 31, 2016
 
Electric operating revenues
$
235,606

 
$
75,355

 
$
—

 
$
310,961

Cost of energy
72,444

 
19,925

 
—

 
92,369

Utility margin
163,162

 
55,430

 
—

 
218,592

Other operating expenses
108,001

 
22,368

 
(3,114
)
 
127,255

Depreciation and amortization
31,864

 
14,508

 
3,457

 
49,829

Operating income
23,297

 
18,554

 
(343
)
 
41,508

Interest income
1,522

 
—

 
2,100

 
3,622

Other income (deductions)
7,943

 
608

 
(1,068
)
 
7,483

Net interest charges
(21,591
)
 
(7,369
)
 
(2,531
)
 
(31,491
)
Segment earnings (loss) before income taxes
11,171

 
11,793

 
(1,842
)
 
21,122

Income taxes
3,610

 
4,337

 
(790
)
 
7,157

Segment earnings (loss)
7,561

 
7,456

 
(1,052
)
 
13,965

Valencia non-controlling interest
(3,287
)
 
—

 
—

 
(3,287
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
4,142

 
$
7,456

 
$
(1,052
)
 
$
10,546

 
 
 
 
 
 
 
 
At March 31, 2016:
 
 
 
 
 
 
 
Total Assets
$
4,719,346

 
$
1,312,402

 
$
242,064

 
$
6,273,812

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297

 
PNM
 
TNMP
 
Corporate
and Other
 
Consolidated
 
(In thousands)
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
Electric operating revenues
$
261,940

 
$
70,928

 
$
—

 
$
332,868

Cost of energy
97,866

 
17,779

 
—

 
115,645

Utility margin
164,074

 
53,149

 
—

 
217,223

Other operating expenses
104,016

 
21,760

 
(3,583
)
 
122,193

Depreciation and amortization
28,403

 
13,458

 
3,600

 
45,461

Operating income
31,655

 
17,931

 
(17
)
 
49,569

Interest income
1,771

 
—

 
(21
)
 
1,750

Other income (deductions)
5,810

 
1,291

 
(1,778
)
 
5,323

Net interest charges
(19,959
)
 
(6,925
)
 
(3,389
)
 
(30,273
)
Segment earnings (loss) before income taxes
19,277

 
12,297

 
(5,205
)
 
26,369

Income taxes (benefit)
5,775

 
4,603

 
(1,861
)
 
8,517

Segment earnings (loss)
13,502

 
7,694

 
(3,344
)
 
17,852

Valencia non-controlling interest
(3,380
)
 
—

 
—

 
(3,380
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
9,990

 
$
7,694

 
$
(3,344
)
 
$
14,340

 
 
 
 
 
 
 
 
At March 31, 2015:
 
 
 
 
 
 
 
Total Assets
$
4,444,290

 
$
1,232,687

 
$
223,629

 
$
5,900,606

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297


At December 31, 2015, the Company adopted ASU 2015-03 – Interest – Imputation of Interest (Subtopic 835-30) and ASU 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes, which require that debt issuance costs be reflected as a direct reduction of the related debt liability, except for arrangements such as the Company’s revolving credit facilities, and eliminated the requirement to classify deferred tax assets and liabilities as non-current or current. The Company applied the updates retrospectively to make all periods comparable. As a result, amounts previously reported as total assets at March 31, 2015 above have been reduced to reflect the reclassifications aggregating $38.7 million for PNMR, $20.2 million for PNM, and $10.7 million for TNMP.