XML 39 R22.htm IDEA: XBRL DOCUMENT
v3.23.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2023
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, which includes the asset optimization of PNM's jurisdictional capacity, as well as providing transmission services to third parties. 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. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities. 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 the equity method investment in NMRD are also included in Corporate and Other. Eliminations of intercompany transactions are reflected in the Corporate and Other segment. 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 |  | PNMR Consolidated
| (In thousands)
Three Months Ended March 31, 2023 |  |  |  |  |  |  |  |  |
Electric operating revenues | $ | 430,165 |  |  | $ | 113,912 |  |  |  |  | $ | — |  |  | $ | 544,077 |
Cost of energy | 209,853 |  |  | 31,833 |  |  |  |  | — |  |  | 241,686 |
Utility margin | 220,312 |  |  | 82,079 |  |  |  |  | — |  |  | 302,391 |
Other operating expenses | 98,722 |  |  | 32,852 |  |  |  |  | (6,348) |  |  | 125,226 |
Depreciation and amortization | 43,686 |  |  | 27,440 |  |  |  |  | 6,948 |  |  | 78,074 |
Operating income (loss) | 77,904 |  |  | 21,787 |  |  |  |  | (600) |  |  | 99,091 |
Interest income (expense) | 4,849 |  |  | 114 |  |  |  |  | (120) |  |  | 4,843 |
Other income (deductions) | 7,033 |  |  | 136 |  |  |  |  | (127) |  |  | 7,042 |
Interest charges | (18,122) |  |  | (10,425) |  |  |  |  | (12,376) |  |  | (40,923) |
Segment earnings (loss) before income taxes | 71,664 |  |  | 11,612 |  |  |  |  | (13,223) |  |  | 70,053 |
Income taxes (benefit) | 11,829 |  |  | 1,579 |  |  |  |  | (3,628) |  |  | 9,780 |
Segment earnings (loss) | 59,835 |  |  | 10,033 |  |  |  |  | (9,595) |  |  | 60,273 |
Valencia non-controlling interest | (5,127) |  |  | — |  |  |  |  | — |  |  | (5,127) |
Subsidiary preferred stock dividends | (132) |  |  | — |  |  |  |  | — |  |  | (132) |
Segment earnings (loss) attributable to PNMR | $ | 54,576 |  |  | $ | 10,033 |  |  |  |  | $ | (9,595) |  |  | $ | 55,014 |
At March 31, 2023: |  |  |  |  |  |  |  |  |
Total Assets | $ | 6,306,396 |  |  | $ | 2,803,168 |  |  |  |  | $ | 243,572 |  |  | $ | 9,353,136 |
Goodwill | $ | 51,632 |  |  | $ | 226,665 |  |  |  |  | $ | — |  |  | $ | 278,297 |
Three Months Ended March 31, 2022 |  |  |  |  |  |  |  |  |
Electric operating revenues | $ | 338,709 |  |  | $ | 105,409 |  |  |  |  | $ | — |  |  | $ | 444,118 |
Cost of energy | 138,814 |  |  | 29,600 |  |  |  |  | — |  |  | 168,414 |
Utility margin | 199,895 |  |  | 75,809 |  |  |  |  | — |  |  | 275,704 |
Other operating expenses | 109,089 |  |  | 27,925 |  |  |  |  | (5,142) |  |  | 131,872 |
Depreciation and amortization | 45,790 |  |  | 23,642 |  |  |  |  | 6,332 |  |  | 75,764 |
Operating income (loss) | 45,016 |  |  | 24,242 |  |  |  |  | (1,190) |  |  | 68,068 |
Interest income (expense) | 3,133 |  |  | 1,182 |  |  |  |  | (23) |  |  | 4,292 |
Other income (deductions) | (25,216) |  |  | 937 |  |  |  |  | (205) |  |  | (24,484) |
Interest charges | (14,572) |  |  | (9,150) |  |  |  |  | (2,498) |  |  | (26,220) |
Segment earnings (loss) before income taxes | 8,361 |  |  | 17,211 |  |  |  |  | (3,916) |  |  | 21,656 |
Income taxes (benefit) | 823 |  |  | 2,151 |  |  |  |  | (536) |  |  | 2,438 |
Segment earnings (loss) | 7,538 |  |  | 15,060 |  |  |  |  | (3,380) |  |  | 19,218 |
Valencia non-controlling interest | (3,095) |  |  | — |  |  |  |  | — |  |  | (3,095) |
Subsidiary preferred stock dividends | (132) |  |  | — |  |  |  |  | — |  |  | (132) |
Segment earnings (loss) attributable to PNMR | $ | 4,311 |  |  | $ | 15,060 |  |  |  |  | $ | (3,380) |  |  | $ | 15,991 |
At March 31, 2022: |  |  |  |  |  |  |  |  |
Total Assets | $ | 6,040,088 |  |  | $ | 2,450,081 |  |  |  |  | $ | 237,517 |  |  | $ | 8,727,686 |
Goodwill | $ | 51,632 |  |  | $ | 226,665 |  |  |  |  | $ | — |  |  | $ | 278,297 |
Non-GAAP Financial Measures The Company defines utility margin as electric operating revenues less cost of energy. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. The Company believes that utility margin provides a more meaningful basis for evaluating operations than electric operating revenues since substantially all such costs are offset in revenues as fuel and purchase power costs are passed through to customers under PNM’s FPPAC and third-party transmission costs are passed on to consumers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented and is considered a non-GAAP measure. PNM and TNMP do not intend for utility margin to represent any financial measure as defined by GAAP however, the calculation of utility margin, as presented, most closely compares to gross margin as defined by GAAP. Reconciliations between utility margin and gross margin are presented below.
| PNM |  | TNMP |  | Corporate and Other |  | PNMR Consolidated |
| (In thousands) |
Three Months Ended March 31, 2023 |  |  |  |  |  |  |  |
Gross margin | $ | 140,381 |  |  | $ | 46,330 |  |  | $ | — |  |  | $ | 186,711 |  |
Energy production costs | 22,358 |  |  | — |  |  | — |  |  | 22,358 |  |
Transmission and distribution costs | 13,887 |  |  | 8,309 |  |  | — |  |  | 22,196 |  |
Depreciation and amortization | 43,686 |  |  | 27,440 |  |  | — |  |  | 71,126 |  | 1
Utility margin | $ | 220,312 |  |  | $ | 82,079 |  |  | $ | — |  |  | $ | 302,391 |  |
Three Months Ended March 31, 2022 |  |  |  |  |  |  |  |
Gross margin | $ | 108,928 |  |  | $ | 45,312 |  |  | $ | — |  |  | $ | 154,240 |  |
Energy production costs | 33,566 |  |  | — |  |  | — |  |  | 33,566 |  |
Transmission and distribution costs | 11,611 |  |  | 6,855 |  |  | — |  |  | 18,466 |  |
Depreciation and amortization | 45,790 |  |  | 23,642 |  |  | — |  |  | 69,432 |  | 1
Utility margin | $ | 199,895 |  |  | $ | 75,809 |  |  | $ | — |  |  | $ | 275,704 |  |
1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1.

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration