XML 32 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information
 3 Months Ended
Mar. 31, 2017
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 includes the generation and sale of electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM’s jurisdictional capacity, as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale power and transmission rates.

TNMP
TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area.

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, 2017
 
 
 
 
 
 
 
Electric operating revenues
$
251,558

 
$
78,620

 
$
—

 
$
330,178

Cost of energy
81,317

 
21,487

 
—

 
102,804

Utility margin
170,241

 
57,133

 
—

 
227,374

Other operating expenses
95,894

 
23,797

 
(4,660
)
 
115,031

Depreciation and amortization
36,016

 
15,371

 
4,996

 
56,383

Operating income (loss)
38,331

 
17,965

 
(336
)
 
55,960

Interest income
2,816

 
—

 
2,065

 
4,881

Other income (deductions)
7,683

 
732

 
(335
)
 
8,080

Interest charges
(21,012
)
 
(7,404
)
 
(3,284
)
 
(31,700
)
Segment earnings (loss) before income taxes
27,818

 
11,293

 
(1,890
)
 
37,221

Income taxes (benefit)
7,708

 
3,689

 
(622
)
 
10,775

Segment earnings (loss)
20,110

 
7,604

 
(1,268
)
 
26,446

Valencia non-controlling interest
(3,452
)
 
—

 
—

 
(3,452
)
Subsidiary preferred stock dividends
(132
)
 
—

 
—

 
(132
)
Segment earnings (loss) attributable to PNMR
$
16,526

 
$
7,604

 
$
(1,268
)
 
$
22,862

 
 
 
 
 
 
 
 
At March 31, 2017:
 
 
 
 
 
 
 
Total Assets
$
4,870,201

 
$
1,396,055

 
$
211,423

 
$
6,477,679

Goodwill
$
51,632

 
$
226,665

 
$
—

 
$
278,297

 
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 (loss)
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

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 (benefit)
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