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Segment Information
 6 Months Ended
Jun. 30, 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 power 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 June 30, 2016
 
Electric operating revenues
$
233,346

 
$
82,045

 
$
—

 
$
315,391

Cost of energy
61,367

 
19,996

 
—

 
81,363

Utility margin
171,979

 
62,049

 
—

 
234,028

Other operating expenses
97,617

 
23,777

 
(3,143
)
 
118,251

Depreciation and amortization
32,602

 
14,897

 
3,456

 
50,955

Operating income (loss)
41,760

 
23,375

 
(313
)
 
64,822

Interest income
5,518

 
—

 
4,676

 
10,194

Other income (deductions)
4,382

 
677

 
(268
)
 
4,791

Net interest charges
(22,690
)
 
(7,473
)
 
(3,058
)
 
(33,221
)
Segment earnings before income taxes
28,970

 
16,579

 
1,037

 
46,586

Income taxes
9,177

 
6,071

 
386

 
15,634

Segment earnings
19,793

 
10,508

 
651

 
30,952

Valencia non-controlling interest
(3,744
)
 
—

 
—

 
(3,744
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
(132
)
Segment earnings attributable to PNMR
$
15,917

 
$
10,508

 
$
651

 
$
27,076

 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Electric operating revenues
$
468,952

 
$
157,400

 
$
—

 
$
626,352

Cost of energy
133,811

 
39,921

 
—

 
173,732

Utility margin
335,141

 
117,479

 
—

 
452,620

Other operating expenses
205,619

 
46,144

 
(6,256
)
 
245,507

Depreciation and amortization
64,466

 
29,406

 
6,912

 
100,784

Operating income (loss)
65,056

 
41,929

 
(656
)
 
106,329

Interest income
7,040

 
—

 
6,775

 
13,815

Other income (deductions)
12,325

 
1,285

 
(1,335
)
 
12,275

Net interest charges
(44,281
)
 
(14,841
)
 
(5,590
)
 
(64,712
)
Segment earnings (loss) before income taxes
40,140

 
28,373

 
(806
)
 
67,707

Income taxes (benefit)
12,788

 
10,408

 
(406
)
 
22,790

Segment earnings (loss)
27,352

 
17,965

 
(400
)
 
44,917

Valencia non-controlling interest
(7,031
)
 
—

 
—

 
(7,031
)
Subsidiary preferred stock dividends
(264
)
 
—

 
—

 
(264
)
Segment earnings (loss) attributable to PNMR
$
20,057

 
$
17,965

 
$
(400
)
 
$
37,622

 
 
 
 
 
 
 
 
At June 30, 2016:
 
 
 
 
 
 
 
Total Assets
$
4,775,481

 
$
1,339,525

 
$
245,450

 
$
6,360,456

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297

 
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

Utility 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
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

Utility 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
$
4,524,390

 
$
1,258,285

 
$
106,121

 
$
5,888,796

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 June 30, 2015 above have been reduced to reflect the reclassifications aggregating $38.2 million for PNMR, $19.9 million for PNM, and $10.6 million for TNMP.