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Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Assets and Liabilities, Lessee

Information related to the Company’s operating leases recorded on the Consolidated Balance Sheets is presented below:

			December 31, 2022																		December 31, 2021
			PNM						TNMP						PNMR Consolidated						PNM						TNMP						PNMR Consolidated
			(In thousands)
Operating leases:
Operating lease assets, net of amortization			$	52,556					$	3,426					$	55,982					$	73,903					$	5,264					$	79,511
Current portion of operating lease liabilities			17,239						1,543						18,781						25,278						1,882						27,218
Long-term portion of operating lease liabilities			39,633						1,703						41,336						52,552						3,155						55,993

As discussed above, the Company classifies its fleet vehicle and equipment leases and its office equipment leases commencing on or after January 1, 2019, as financing leases. Information related to the Company’s financing leases recorded on the Consolidated Balance Sheets is presented below:

			December 31, 2022																		December 31, 2021
			PNM						TNMP						PNMR Consolidated						PNM						TNMP						PNMR Consolidated
			(In thousands)																		(In thousands)
Financing leases:
Non-utility property			$	19,324					$	20,084					$	39,738					$	15,171					$	16,181					$	31,695
Accumulated depreciation			(7,726)						(8,202)						(16,189)						(4,550)						(4,923)						(9,660)
Non-utility property, net			$	11,598					$	11,882					$	23,549					$	10,621					$	11,258					$	22,035
Other current liabilities			$	3,441					$	3,867					$	7,363					$	2,731					$	2,994					$	5,813
Other deferred credits			8,079						8,028						16,123						7,732						8,273						16,075

Lease, Cost

Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities is presented below:

			December 31, 2022																		December 31, 2021
			PNM						TNMP						PNMR Consolidated						PNM						TNMP						PNMR Consolidated
Weighted average remaining lease term (years):
Operating leases			6.74						2.16						6.48						5.60						2.90						5.44
Financing leases			3.99						3.39						3.68						4.30						4.14						4.20
Weighted average discount rate:
Operating leases			4.01		%				3.94		%				4.00		%				3.99		%				3.98		%				3.99		%
Financing leases			3.36		%				3.53		%				3.44		%				2.60		%				2.71		%				2.65		%

Information for the components of lease expense is as follows:

			Year Ended December 31, 2022
			PNM						TNMP						PNMR Consolidated
			(In thousands)
Operating lease cost			$	26,764					$	2,020					$	28,835
Amounts capitalized			(690)						(1,728)						(2,417)
Total operating lease expense			26,074						292						26,418
Financing lease cost:
Amortization of right-of-use assets			3,175						3,279						6,529
Interest on lease liabilities			327						330						659
Amounts capitalized			(2,264)						(3,208)						(5,471)
Total financing lease expense			1,238						401						1,717
Variable lease expense			890						—						890
Short-term lease expense (1)			3,058						5						3,109
Total lease expense for the period			$	31,260					$	698					$	32,134

(1) Includes expense of $2.7 million for the twelve months ended December 31, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $2.7 million for the twelve months ended December 31, 2022.

			Year Ended December 31, 2021
			PNM						TNMP						PNMR Consolidated
			(In thousands)
Operating lease cost			$	26,690					$	2,445					$	29,270
Amounts capitalized			(836)						(2,115)						(2,951)
Total operating lease expense			25,854						330						26,319
Financing lease cost:
Amortization of right-of-use assets			2,507						2,682						5,277
Interest on lease liabilities			263						307						574
Amounts capitalized			(1,726)						(2,678)						(4,404)
Total financing lease expense			1,044						311						1,447
Variable lease expense			380						—						380
Short-term lease expense			2,972						6						3,035
Total lease expense for the period			$	30,250					$	647					$	31,181

(1) Includes expense of $2.5 million for the twelve months ended December 31, 2021 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are partially offset with insurance reimbursements of $1.8 million for the twelve months ended December 31, 2021.

Supplemental cash flow information related to the Company’s leases is as follows:

			Year Ended December 31, 2022																		Year Ended December 31, 2021
			PNM						TNMP						PNMR Consolidated						PNM						TNMP						PNMR Consolidated
			(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	25,687					$	246					$	25,984					$	25,655					$	323					$	26,129
Operating cash flows from financing leases			96						43						141						90						34						128
Financing cash flows from financing leases			1,123						499						1,711						870						339						1,296
Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases			$	2,924					$	179					$	3,103					$	—					$	317					$	317
Financing leases			4,205						4,061						8,266						3,792						3,126						6,958

Finance Lease, Liability, Maturity

Future expected lease payments are shown below:

			As of December 31, 2022
			PNM												TNMP												PNMR Consolidated
			Financing						Operating						Financing						Operating						Financing						Operating
			(In thousands)
2023			$	3,764					$	17,566					$	4,210					$	1,330					$	8,029					$	19,037
2024			3,031						8,294						3,562						1,030						6,606						9,334
2025			2,140						7,070						2,592						525						4,734						7,595
2026			1,570						7,041						1,417						449						2,988						7,490
2027			1,066						7,018						473						—						1,539						7,018
Later years			788						17,366						375						—						1,162						17,366
Total minimum lease payments			12,359						64,355						12,629						3,334						25,058						67,840
Less: Imputed interest			839						7,483						734						88						1,572						7,723
Lease liabilities as of December 31, 2022			$	11,520					$	56,872					$	11,895					$	3,246					$	23,486					$	60,117

Lessee, Operating Lease, Liability, Maturity

Future expected lease payments are shown below:

			As of December 31, 2022
			PNM												TNMP												PNMR Consolidated
			Financing						Operating						Financing						Operating						Financing						Operating
			(In thousands)
2023			$	3,764					$	17,566					$	4,210					$	1,330					$	8,029					$	19,037
2024			3,031						8,294						3,562						1,030						6,606						9,334
2025			2,140						7,070						2,592						525						4,734						7,595
2026			1,570						7,041						1,417						449						2,988						7,490
2027			1,066						7,018						473						—						1,539						7,018
Later years			788						17,366						375						—						1,162						17,366
Total minimum lease payments			12,359						64,355						12,629						3,334						25,058						67,840
Less: Imputed interest			839						7,483						734						88						1,572						7,723
Lease liabilities as of December 31, 2022			$	11,520					$	56,872					$	11,895					$	3,246					$	23,486					$	60,117

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Assets and Liabilities, Lessee [Table Text Block]

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- Definition

Tabular disclosure of undiscounted cash flows of finance lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to finance lease liability recognized in statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=128292326&loc=SL77918701-209980

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- Definition

Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=128292326&loc=SL77918686-209980

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- Definition

Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=128292326&loc=SL77918701-209980

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