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Fair Value of Derivative and Other Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Schedule of Commodity Derivatives | PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Consolidated Balance Sheets:
| Economic Hedges
| December 31,
| 2021 |  | 2020
| (In thousands)
Other current assets | $ | 684 |  |  | $ | 1,096 |
Other deferred charges |  |  | 455 |
| 684 |  |  | 1,551 |
Other current liabilities | (2,275) |  |  | (1,096) |
Other deferred credits |  |  | (455) |
| (2,275) |  |  | (1,551) |
Net | $ | (1,591) |  |  | $ | — |
Schedule of Realized Gain (Loss) | Gains and losses recognized on the Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table:
|  | Year ended December 31,
|  | 2021 |  | 2020 |  | 2019
|  | (In thousands)
Equity securities: |  |  |  |  |  |
Net gains from equity securities sold |  | $ | 8,738 |  |  | $ | 5,861 |  |  | $ | 5,698 |
Net gains (losses) from equity securities still held |  | (442) |  |  | 17,707 |  |  | 18,319 |
Total net gains on equity securities |  | 8,296 |  |  | 23,568 |  |  | 24,017 |
Available-for-sale debt securities: |  |  |  |  |  |
Net gains (losses) on debt securities |  | 8,554 |  |  | (1,969) |  |  | 5,572 |
Net gains on investment securities |  | $ | 16,850 |  |  | $ | 21,599 |  |  | $ | 29,589 |
Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $0.7 million, $(3.2) million, and $3.0 million for the years ended December 31, 2021, 2020 and 2019.
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
| (In thousands)
Proceeds from sales | $ | 459,867 |  |  | $ | 590,998 |  |  | $ | 494,528 |
Gross realized gains | $ | 39,408 |  |  | $ | 35,904 |  |  | $ | 25,760 |
Gross realized (losses) | $ | (22,815) |  |  | $ | (28,817) |  |  | $ | (17,453) |
Investments Classified by Contractual Maturity Date | At December 31, 2021, the available-for-sale debt securities held by PNM, had the following final maturities:
| Fair Value |  |  |  |
| (In thousands) |  |  |  |
Within 1 year | $ | 29,680 |  |  |  |  |
After 1 year through 5 years | 77,278 |  |  |  |  |
After 5 years through 10 years | 93,302 |  |  |  |  |
After 10 years through 15 years | 20,893 |  |  |  |  |
After 15 years through 20 years | 12,933 |  |  |  |  |
After 20 years | 39,120 |  |  |  |  |
| $ | 273,206 |  |  |  |  |
Schedule of Instruments Presented by Level of Hierarchy | Items recorded at fair value by PNM on the 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.
|  |  | GAAP Fair Value Hierarchy |  |
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |  |  | Unrealized Gains
| (In thousands)
December 31, 2021 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 7,895 |  |  | $ | 7,895 |  |  | $ | — |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |
Corporate stocks, common | 97,626 |  |  | 97,626 |  |  | — |  |  |  |  |
Corporate stocks, preferred | 9,114 |  |  | 3,775 |  |  | 5,339 |  |  |  |  |
Mutual funds and other | 75,285 |  |  | 75,241 |  |  | 44 |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |
U.S. government | 43,128 |  |  | 13,204 |  |  | 29,924 |  |  |  |  | $ | 214 |
International government | 16,001 |  |  | — |  |  | 16,001 |  |  |  |  | 1,508 |
Municipals | 47,050 |  |  | — |  |  | 47,050 |  |  |  |  | 1,807 |
Corporate and other | 167,027 |  |  | — |  |  | 167,027 |  |  |  |  | 12,212 |
| $ | 463,126 |  |  | $ | 197,741 |  |  | $ | 265,385 |  |  |  |  | $ | 15,741 |
December 31, 2020 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 6,107 |  |  | $ | 6,107 |  |  | $ | — |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Corporate stocks, common | 85,271 |  |  | 85,271 |  |  | — |  |  |  |  |  |  |
Corporate stocks, preferred | 9,910 |  |  | 3,608 |  |  | 6,302 |  |  |  |  |  |  |
Mutual funds and other | 58,817 |  |  | 58,762 |  |  | 55 |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government | 55,839 |  |  | 29,579 |  |  | 26,260 |  |  |  |  | $ | 950 |  |  |
International government | 16,032 |  |  | — |  |  | 16,032 |  |  |  |  | 2,537 |  |  |
Municipals | 50,139 |  |  | — |  |  | 50,139 |  |  |  |  | 2,779 |  |  |
Corporate and other | 158,000 |  |  | 3 |  |  | 157,997 |  |  |  |  | 21,121 |  |  |
| $ | 440,115 |  |  | $ | 183,330 |  |  | $ | 256,785 |  |  |  |  | $ | 27,387 |  |  |
Summary of Carrying Amounts and Fair Value of Instruments | The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Consolidated Balance Sheets are presented below:
| Carrying Amount |  | Fair Value |  |  |  |  |  |
December 31, 2021 | (In thousands) |  |  |  |  |  |
PNMR | $ | 3,698,919 |  |  | $ | 3,915,010 |  |  |  |  |  |  |
PNM | $ | 1,881,110 |  |  | $ | 1,975,987 |  |  |  |  |  |  |
TNMP | $ | 918,050 |  |  | $ | 1,039,023 |  |  |  |  |  |  |
December 31, 2020 |  |  |  |  |  |  |  |  |
PNMR | $ | 3,295,150 |  |  | $ | 3,571,382 |  |  |  |  |  |  |
PNM | $ | 1,696,620 |  |  | $ | 1,818,169 |  |  |  |  |  |  |
TNMP | $ | 853,673 |  |  | $ | 1,006,722 |  |  |  |  |  |  |
Schedule of Investments Held by the Employee Benefit Plans | The fair values of investments held by the employee benefit plans are as follows:
|  |  | GAAP Fair Value Hierarchy |  |
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |
December 31, 2021 | (In thousands)
PNM Pension Plan |  |  |  |  |  |  |
Participation in PNMR Master Trust Investments: |  |  |  |  |  |  |
Investments categorized within fair value hierarchy | $ | 527,873 |  |  | $ | 235,605 |  |  | $ | 292,268 |  |  |
Uncategorized investments | 49,432 |  |  |  |  |  |  |
Total Master Trust Investments | $ | 577,305 |  |  |  |  |  |  |
TNMP Pension Plan |  |  |  |  |  |  |
Participation in PNMR Master Trust Investments: |  |  |  |  |  |  |
Investments categorized within fair value hierarchy | $ | 58,623 |  |  | $ | 21,390 |  |  | $ | 37,233 |  |  |
Uncategorized investments | 3,962 |  |  |  |  |  |  |
Total Master Trust Investments | $ | 62,585 |  |  |  |  |  |  |
PNM OPEB Plan |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,578 |  |  | $ | 1,578 |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |
Mutual funds | 94,549 |  |  | 58,383 |  |  | 36,166 |  |  |
| $ | 96,127 |  |  | $ | 59,961 |  |  | $ | 36,166 |  |  |
TNMP OPEB Plan |  |  |  |  |  |  |
Cash and cash equivalents | $ | 381 |  |  | $ | 381 |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |
Mutual funds | 12,249 |  |  | 11,575 |  |  | 674 |  |  |
| $ | 12,630 |  |  | $ | 11,956 |  |  | $ | 674 |  |  |
|  |  | GAAP Fair Value Hierarchy |  |
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |
December 31, 2020 | (In thousands)
PNM Pension Plan |  |  |  |  |  |  |
Participation in PNMR Master Trust Investments: |  |  |  |  |  |  |
Investments categorized within fair value hierarchy | $ | 498,907 |  |  | $ | 241,445 |  |  | $ | 257,462 |  |  |
Uncategorized investments | 88,984 |  |  |  |  |  |  |
Total Master Trust Investments | $ | 587,891 |  |  |  |  |  |  |
TNMP Pension Plan |  |  |  |  |  |  |
Participation in PNMR Master Trust Investments: |  |  |  |  |  |  |
Investments categorized within fair value hierarchy | $ | 56,966 |  |  | $ | 28,732 |  |  | $ | 28,234 |  |  |
Uncategorized investments | 9,230 |  |  |  |  |  |  |
Total Master Trust Investments | $ | 66,196 |  |  |  |  |  |  |
PNM OPEB Plan |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,310 |  |  | $ | 1,310 |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |
Mutual funds | 92,400 |  |  | 52,284 |  |  | 40,116 |  |  |
| $ | 93,710 |  |  | $ | 53,594 |  |  | $ | 40,116 |  |  |
TNMP OPEB Plan |  |  |  |  |  |  |
Cash and cash equivalents | $ | 18 |  |  | $ | 18 |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |
Mutual funds | 12,843 |  |  | 10,806 |  |  | 2,037 |  |  |
| $ | 12,861 |  |  | $ | 10,824 |  |  | $ | 2,037 |  |  |
The fair values of investments in the PNMR Master Trust are as follows:
|  |  | GAAP Fair Value Hierarchy |  |
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |
December 31, 2021 | (In thousands)
PNMR Master Trust |  |  |  |  |  |  |
Cash and cash equivalents | $ | 18,924 |  |  | $ | 18,924 |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |
Corporate stocks, common | 92,484 |  |  | 92,484 |  |  | — |  |  |
Corporate stocks, preferred | 806 |  |  | — |  |  | 806 |  |  |
Mutual funds and other | 222,106 |  |  | 59,203 |  |  | 162,903 |  |  |
Fixed income securities: |  |  |  |  |  |  |
U.S. government | 95,429 |  |  | 86,384 |  |  | 9,045 |  |  |
International government | 5,977 |  |  | — |  |  | 5,977 |  |  |
Municipals | 6,143 |  |  | — |  |  | 6,143 |  |  |
Corporate and other | 144,627 |  |  | — |  |  | 144,627 |  |  |
Total investments categorized within fair value hierarchy | 586,496 |  |  | $ | 256,995 |  |  | $ | 329,501 |  |  |
Uncategorized investments: |  |  |  |  |  |  |
Private equity funds | 10,479 |  |  |  |  |  |  |
Hedge funds | 8,913 |  |  |  |  |  |  |
Real estate funds | 34,002 |  |  |  |  |  |  |
| $ | 639,890 |  |  |  |  |  |  |
|  |  | GAAP Fair Value Hierarchy |  |
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |
December 31, 2020 | (In thousands)
PNMR Master Trust |  |  |  |  |  |  |
Cash and cash equivalents | $ | 20,812 |  |  | $ | 20,812 |  |  | $ | — |  |  |
Equity securities: |  |  |  |  |  |  |
Corporate stocks, common | 114,983 |  |  | 114,983 |  |  | — |  |  |
Corporate stocks, preferred | 1,187 |  |  | 135 |  |  | 1,052 |  |  |
Mutual funds and other | 173,931 |  |  | 47,418 |  |  | 126,513 |  |  |
Fixed income securities: |  |  |  |  |  |  |
U.S. government | 97,460 |  |  | 86,829 |  |  | 10,631 |  |  |
International government | 6,202 |  |  | — |  |  | 6,202 |  |  |
Municipals | 6,277 |  |  | — |  |  | 6,277 |  |  |
Corporate and other | 135,021 |  |  | — |  |  | 135,021 |  |  |
Total investments categorized within fair value hierarchy | 555,873 |  |  | $ | 270,177 |  |  | $ | 285,696 |  |  |
Uncategorized investments: |  |  |  |  |  |  |
Private equity funds | 12,552 |  |  |  |  |  |  |
Hedge funds | 52,285 |  |  |  |  |  |  |
Real estate funds | 33,377 |  |  |  |  |  |  |
| $ | 654,087 |  |  |  |  |  |  |

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- 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=123874694&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=123874694&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=123874694&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 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 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 (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + 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=123874694&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 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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