XML 51 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1

Fair Value of Derivative and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value of Derivative and Other Financial Instruments [Abstract]

Summary of Derivatives

PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges, are summarized as follows:

	Economic Hedges
	September 30, 2018				December 31, 2017
	(In thousands)
Current assets	$	1,083			$	1,088
Deferred charges	2,741				3,556
	3,824				4,644
Current liabilities	(1,092		)		(1,182		)
Long-term liabilities	(2,741		)		(3,556		)
	(3,833		)		(4,738		)
Net	$	(9	)		$	(94	)

Effect of Mark-to-Market on Earnings, Excluding Tax Effects

The following table presents the effect of mark-to-market commodity derivative instruments on PNM’s earnings, excluding income tax effects. Commodity derivatives had no impact on OCI for the periods presented.

	Economic Hedges
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2018				2017				2018				2017
	(In thousands)
Electric operating revenues	$	(93	)		$	(2,237	)		$	(95	)		$	5,697
Cost of energy	93				(14		)		97				(5,289		)
Total gain	$	—			$	(2,251	)		$	2			$	408

Schedule of Net Buy (Sell) Volume Positions

The table below presents PNM’s net buy (sell) volume positions:

		Economic Hedges
		MMBTU			MWh
September 30, 2018		100,000			4,800
December 31, 2017		100,000			—

Schedule of Gross Realized Gains and Losses

The proceeds and gross realized gains and losses on the disposition of securities held in the NDT and coal mine reclamation trusts are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold. Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $(0.8) million and $(4.6) million for the three and nine months ended September 30, 2018 and $0.1 million and $1.1 million for the three and nine months ended September 30, 2017.

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2018				2017				2018				2017
	(In thousands)
Proceeds from sales	$	117,801			$	98,532			$	911,899			$	456,577
Gross realized gains	$	3,460			$	8,128			$	17,030			$	24,745
Gross realized (losses)	$	(3,149	)		$	(2,829	)		$	(14,018	)		$	(8,150	)

Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table.

		Three Months Ended September 30, 2018				Nine Months Ended September 30, 2018
		(In thousands)
Equity securities:
Net gains from equity securities sold		$	113			$	5,443
Net gains from equity securities still held		2,943				2,636
Total net gains on equity securities		3,056				8,079
Available-for-sale debt securities:
Net (losses) on debt securities		(593		)		(6,998		)
Net gains on investment securities		$	2,463			$	1,081

Investments Classified by Contractual Maturity Date

At September 30, 2018, the available-for-sale debt securities held by PNM, had the following final maturities:

	Fair Value
	(In thousands)
Within 1 year	$	9,986
After 1 year through 5 years	59,944
After 5 years through 10 years	67,585
After 10 years through 15 years	10,375
After 15 years through 20 years	11,151
After 20 years	46,887
	$	205,928

Schedule of Investments

Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale securities. Under ASU 2016-01, PNM does not classify its investments in equity instruments as available-for-sale securities beginning January 1, 2018.

					GAAP Fair Value Hierarchy
	Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Unrealized Gains
	(In thousands)
September 30, 2018
Cash and cash equivalents	$	3,527			$	3,527			$	—			$	—
Equity securities:
Corporate stocks, common	40,017				40,017				—				—
Corporate stocks, preferred	7,239				1,587				5,652				—
Mutual funds and other	75,035				75,035				—				—
Available-for-sale debt securities:
U.S. Government	25,689				15,400				10,289				—				$	23
International Government	8,460				—				8,460				—				90
Municipals	51,280				—				51,280				—				78
Corporate and other	120,499				—				117,445				3,054				1,827
	$	331,746			$	135,566			$	193,126			$	3,054			$	2,018
Commodity derivative assets	$	3,824			$	—			$	3,824			$	—
Commodity derivative liabilities	(3,833		)		—				(3,833		)		—
Net	$	(9	)		$	—			$	(9	)		$	—
December 31, 2017
Available-for-sale securities
Cash and cash equivalents	$	52,636			$	52,636			$	—			$	—
Equity securities:
Domestic value	40,032				40,032				—				—				$	4,011
Domestic growth	35,456				35,456				—				—				3,995
International and other	45,867				42,332				3,535				—				6,810
Fixed income securities:
U.S. Government	34,317				33,645				672				—				273
Municipals	48,076				—				48,076				—				1,225
Corporate and other	67,140				—				67,140				—				1,714
	$	323,524			$	204,101			$	119,423			$	—			$	18,028
Commodity derivative assets	$	4,644			$	—			$	4,644			$	—
Commodity derivative liabilities	(4,738		)		—				(4,738		)		—
Net	$	(94	)		$	—			$	(94	)		$	—

Summary of Level 3 Measurements

A reconciliation of the changes in Level 3 fair value measurements is as follows:

	Corporate Debt
	(In thousands)
Balance at December 31, 2017	$	—
Actual return on assets sold during the period	(6		)
Actual return on assets still held at period end	16
Purchases	5,234
Sales	(2,190		)
Balance at September 30, 2018	$	3,054

Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value

The carrying amounts and fair values of investments in the Westmoreland Loan, other investments, and long-term debt, which are not recorded at fair value on the Condensed Consolidated Balance Sheets are presented below:

									GAAP Fair Value Hierarchy
	Carrying Amount				Fair Value				Level 1				Level 2				Level 3
September 30, 2018	(In thousands)
PNMR
Long-term debt	$	2,614,511			$	2,642,154			$	—			$	2,642,154			$	—
Other investments	$	348			$	348			$	348			$	—			$	—
PNM
Long-term debt	$	1,656,102			$	1,665,064			$	—			$	1,665,064			$	—
Other investments	$	142			$	142			$	142			$	—			$	—
TNMP
Long-term debt	$	560,293			$	580,017			$	—			$	580,017			$	—
Other investments	$	206			$	206			$	206			$	—			$	—
December 31, 2017
PNMR
Long-term debt	$	2,437,645			$	2,554,836			$	—			$	2,554,836			$	—
Westmoreland Loan	$	56,640			$	66,588			$	—			$	—			$	66,588
Other investments	$	503			$	503			$	503			$	—			$	—
PNM
Long-term debt	$	1,657,910			$	1,727,135			$	—			$	1,727,135			$	—
Other investments	$	283			$	283			$	283			$	—			$	—
TNMP
Long-term debt	$	480,620			$	527,563			$	—			$	527,563			$	—
Other investments	$	220			$	220			$	220			$	—			$	—

X

- Definition

Fair Value of Derivative and Other Financial Instruments [Abstract]

+ References

No definition available.

+ Details

Name:	pnm_FairValueOfDerivativeAndOtherFinancialInstrumentsAbstract
Namespace Prefix:	pnm_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19279-110258

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2C
-URI http://asc.fasb.org/extlink&oid=99377789&loc=SL7498348-110258

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bb)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109250915&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

+ References

No definition available.

+ Details

Name:	us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=112275985&loc=d3e4179-114921

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=108410482&loc=d3e2439-114920

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=108410482&loc=d3e1928-114920

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=108410482&loc=d3e2410-114920

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=108410482&loc=d3e2417-114920

+ Details

Name:	us-gaap_ScheduleOfDefinedBenefitPlansDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the notional amounts of outstanding derivative positions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

+ Details

Name:	us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27357-111563

+ Details

Name:	us-gaap_ScheduleOfRealizedGainLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration