XML 38 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Pension and Other Postretirement Benefit Plans | 9 Months Ended
--- | ---
Sep. 30, 2018
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans. The periodic costs or income of the PNM Plans and TNMP Plans are included in regulated rates to the extent attributable to regulated operations. PNM and TNMP receive a regulated return on the amounts funded for pension and OPEB plans in excess of the periodic cost or income to the extent included in retail rates (a “prepaid pension asset”). Additional information concerning pension and OPEB plans is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2017 Annual Reports on Form 10-K. Annual net periodic benefit cost for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year. In March 2017, the FASB issued Accounting Standards Update 2017-07 – Compensation - Retirement Benefits (Topic 715) to improve the presentation of net periodic pension and other postretirement benefit costs. Prior to ASU 2017-07, the Company presented all of its net periodic benefit costs, net of amounts capitalized to construction and other accounts, as administrative and general expenses on its statements of earnings. ASU 2017-07 requires the service cost component of net benefit costs be presented in the same line item or items as employees’ compensation. The other components of net periodic benefit cost (the “non-service cost components”) are required to be presented separately from the service cost component and outside of operating income. ASU 2017-07 also limits capitalization of net periodic benefit costs to only the service cost component. ASU 2017-07 requires retrospective presentation of the service and non-service cost components of net periodic benefit costs in the income statement and prospective application regarding the capitalization of only the service cost component of net periodic benefit costs. The Company adopted ASU 2017-07 as of January 1, 2018, its required effective date. In accordance with the standard, the PNM and PNMR Condensed Consolidated Statements of Earnings reflect a reclassification from administrative and general expenses to other (deductions) for the non-service cost components of net periodic benefit costs in the amount of $2.1 million and $6.4 million, net of amounts capitalized prior to the adoption of the standard, in the three and nine months ended September 30, 2017. The non-service components of TNMP’s net periodic benefit costs in 2017 were insignificant. The Company believes PNM and TNMP can continue to capitalize the non-service cost components of net periodic benefit costs as regulatory assets and liabilities to the extent attributable to regulated operations. During the three and nine months ended September 30, 2018, PNM recorded $1.1 million and $3.2 million of non-service cost as other (deductions), which is net of $0.1 million and $0.3 million deferred as regulatory assets, and TNMP recorded $0.1 million and $0.3 million of non-service cost to other income, which is net of less than $0.1 million and $0.1 million deferred as regulatory liabilities. PNM Plans The following table presents the components of the PNM Plans’ net periodic benefit cost:
| Three Months Ended September 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
| (In thousands)
Components of Net Periodic Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 21 |  |  | $ | 24 |  |  | $ | — |  |  | $ | — |
Interest cost | 6,068 |  |  | 6,727 |  |  | 860 |  |  | 1,006 |  |  | 155 |  |  | 174 |
Expected return on plan assets | (8,672 | ) |  | (8,451 | ) |  | (1,353 | ) |  | (1,308 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 4,087 |  |  | 4,001 |  |  | 588 |  |  | 921 |  |  | 90 |  |  | 78 |
Amortization of prior service cost | (241 | ) |  | (241 | ) |  | (416 | ) |  | (416 | ) |  | — |  |  | — |
Net periodic benefit cost | $ | 1,242 |  |  | $ | 2,036 |  |  | $ | (300 | ) |  | $ | 227 |  |  | $ | 245 |  |  | $ | 252 |
| Nine Months Ended September 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
| (In thousands)
Components of Net Periodic Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 62 |  |  | $ | 72 |  |  | $ | — |  |  | $ | — |
Interest cost | 18,203 |  |  | 20,181 |  |  | 2,579 |  |  | 3,019 |  |  | 467 |  |  | 523 |
Expected return on plan assets | (26,014 | ) |  | (25,352 | ) |  | (4,061 | ) |  | (3,923 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 12,261 |  |  | 12,004 |  |  | 1,765 |  |  | 2,762 |  |  | 269 |  |  | 235 |
Amortization of prior service cost | (724 | ) |  | (724 | ) |  | (1,248 | ) |  | (1,248 | ) |  | — |  |  | — |
Net periodic benefit cost | $ | 3,726 |  |  | $ | 6,109 |  |  | $ | (903 | ) |  | $ | 682 |  |  | $ | 736 |  |  | $ | 758 |
PNM did not make any contributions to its pension plan trust in the nine months ended September 30, 2018 and 2017 and does not anticipate making any contributions to the pension plan in 2018-2021, but expects to contribute $5.5 million in 2022, based on current law, including recent amendments to funding requirements, and estimates of portfolio performance. The funding assumptions were developed using discount rates of 4.0% to 5.1%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. PNM may make additional contributions at its discretion. PNM made no contributions to the OPEB trust in the nine months ended September 30, 2018 and 2017. PNM does not expect to make any contributions to the OPEB trust in 2018-2022. Disbursements under the executive retirement program, which are funded by PNM and considered to be contributions to the plan, were $0.4 million and $1.3 million in the three and nine months ended September 30, 2018 and $0.4 million and $1.2 million in the three and nine months ended September 30, 2017 and are expected to total $1.6 million during 2018 and $5.7 million for 2019-2022. TNMP Plans The following table presents the components of the TNMP Plans’ net periodic benefit cost:
| Three Months Ended September 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
| (In thousands)
Components of Net Periodic Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 33 |  |  | $ | 36 |  |  | $ | — |  |  | $ | — |
Interest cost | 656 |  |  | 722 |  |  | 119 |  |  | 139 |  |  | 7 |  |  | 8 |
Expected return on plan assets | (991 | ) |  | (945 | ) |  | (135 | ) |  | (114 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 272 |  |  | 231 |  |  | (56 | ) |  | (20 | ) |  | 4 |  |  | 2 |
Amortization of prior service cost | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net Periodic Benefit Cost | $ | (63 | ) |  | $ | 8 |  |  | $ | (39 | ) |  | $ | 41 |  |  | $ | 11 |  |  | $ | 10 |
| Nine Months Ended September 30,
| Pension Plan |  | OPEB Plan |  | Executive Retirement Program
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
| (In thousands)
Components of Net Periodic Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 100 |  |  | $ | 107 |  |  | $ | — |  |  | $ | — |
Interest cost | 1,969 |  |  | 2,165 |  |  | 358 |  |  | 417 |  |  | 22 |  |  | 25 |
Expected return on plan assets | (2,972 | ) |  | (2,834 | ) |  | (406 | ) |  | (342 | ) |  | — |  |  | — |
Amortization of net (gain) loss | 816 |  |  | 692 |  |  | (170 | ) |  | (60 | ) |  | 11 |  |  | 7 |
Amortization of prior service cost | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net Periodic Benefit Cost | $ | (187 | ) |  | $ | 23 |  |  | $ | (118 | ) |  | $ | 122 |  |  | $ | 33 |  |  | $ | 32 |
TNMP did not make any contributions to its pension plan trust in the nine months ended September 30, 2018 and 2017 and does not anticipate making any contributions in 2018-2022, based on current law, including recent amendments to funding requirements, and estimates of portfolio performance. The funding assumptions were developed using discount rates of 4.0% to 5.1%. Actual amounts to be funded in the future will depend on the actuarial assumptions at that time, including the appropriate discount rate. TNMP may make additional contributions at its discretion. TNMP made contributions of zero and $0.3 million to the OPEB trust in the three and nine months ended September 30, 2018 and zero and $0.7 million in the three and nine months ended September 30, 2017. TNMP expects to make no additional contributions to the OPEB trust in 2018 and $1.4 million for 2019-2022. Disbursements under the executive retirement program, which are funded by TNMP and considered to be contributions to the plan, were less than $0.1 million in the three and nine months ended September 30, 2018 and 2017 and are expected to total $0.1 million during 2018 and $0.4 million in 2019-2022.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration