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Lease Commitments (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Assets and Liabilities, Lessee
Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below:
June 30, 2023December 31, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Operating leases:
Operating lease assets, net of amortization$47,648 $2,456 $50,104 $52,556 $3,426 $55,982 
Current portion of operating lease liabilities7,795 1,030 8,825 17,239 1,543 18,781 
Long-term portion of operating lease liabilities33,422 1,237 34,658 39,633 1,703 41,336 
Information related to the Company’s financing leases recorded on the Condensed Consolidated Balance Sheets is presented below:
June 30, 2023December 31, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Financing leases:
Non-utility property$24,105 $21,855 $46,290 $19,324 $20,084 $39,738 
Accumulated depreciation(9,857)(10,364)(20,518)(7,726)(8,202)(16,189)
Non-utility property, net14,248 11,491 25,772 11,598 11,882 23,549 
Other current liabilities$4,355 $4,184 $8,565 $3,441 $3,867 $7,363 
Other deferred credits9,859 7,323 17,190 8,079 8,028 16,123 

Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of June 30, 2023 is presented below:

PNMTNMPPNMR Consolidated
Weighted average remaining lease term (years):
Operating leases7.751.997.43
Financing leases3.993.093.58
Weighted average discount rate:
Operating leases4.07 %4.13 %4.08 %
Financing leases4.24 %3.90 %4.08 %
Lease, Cost
Information for the components of lease expense is as follows:

Three Months Ended June 30, 2023Six Months Ended June 30, 2023
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Operating lease cost:$2,468 $401 $2,869 $6,376 $830 $7,206 
Amounts capitalized(103)(331)(434)(263)(684)(947)
Total operating lease expense2,365 70 2,435 6,113 146 6,259 
Financing lease cost:
Amortization of right-of-use assets1,123 1,098 2,235 2,132 2,162 4,329 
Interest on lease liabilities140 112 252 262 223 486 
Amounts capitalized(778)(699)(1,477)(1,469)(1,699)(3,167)
Total financing lease expense485 511 1,010 925 686 1,648 
Variable lease expense360 — 360 622 — 622 
Short-term lease expense145 1 149 292 1 299 
Total lease expense for the period$3,355 $582 $3,954 $7,952 $833 $8,828 

Three Months Ended June 30, 2022Six Months Ended June 30, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Operating lease cost:$6,665 $495 $7,181 $13,349 $1,023 $14,418 
Amounts capitalized(173)(457)(630)(358)(926)(1,283)
Total operating lease expense6,492 38 6,551 12,991 97 13,135 
Financing lease cost:
Amortization of right-of-use assets769 799 1,583 1,501 1,555 3,095 
Interest on lease liabilities79 80 160 147 153 301 
Amounts capitalized(563)(764)(1,327)(1,060)(1,480)(2,540)
Total financing lease expense285 115 416 588 228 856 
Variable lease expense262 — 262 367 — 367 
Short-term lease expense (1)
1,137 3 1,147 2,269 3 2,317 
Total lease expense for the period$8,176 $156 $8,376 $16,215 $328 $16,675 

(1) Includes expense of $1.1 million and $2.3 million for the three and six months ended June 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $1.1 million and $2.3 million for the three and six months ended June 30, 2022.
Schedule of Leases, Supplemental Cash Flows
Supplemental cash flow information related to the Company’s leases is as follows:

Six Months EndedSix Months Ended
June 30, 2023June 30, 2022
PNMTNMPPNMR ConsolidatedPNMTNMPPNMR Consolidated
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$16,208 $155 $16,363 $16,260 $75 $16,381 
Operating cash flows from financing leases88 38 127 45 21 68 
Finance cash flows from financing leases792 646 1,474 528 236 809 
Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases$94 $6 $100 $1,079 $— $1,079 
Financing leases4,793 1,783 6,576 2,151 1,625 3,776 
Lessee, Operating Lease, Liability, Maturity
Future expected lease payments are shown below:

As of June 30, 2023
PNMTNMPPNMR Consolidated
FinancingOperatingFinancingOperatingFinancingOperating
(In thousands)
Remainder of 2023$2,539 $1,148 $2,343 $602 $4,900 $1,750 
20244,204 8,149 4,068 945 8,286 9,094 
20253,232 7,428 3,070 770 6,304 8,198 
20262,735 7,019 1,912 76 4,647 7,094 
20271,577 7,023 748 — 2,325 7,023 
Later years1,229 17,510 81 — 1,310 17,510 
Total minimum lease payments15,516 48,277 12,222 2,393 27,772 50,669 
Less: Imputed interest1,302 7,060 715 126 2,017 7,186 
Lease liabilities as of June 30, 2023$14,214 $41,217 $11,507 $2,267 $25,755 $43,483 
Finance Lease, Liability, Maturity
Future expected lease payments are shown below:

As of June 30, 2023
PNMTNMPPNMR Consolidated
FinancingOperatingFinancingOperatingFinancingOperating
(In thousands)
Remainder of 2023$2,539 $1,148 $2,343 $602 $4,900 $1,750 
20244,204 8,149 4,068 945 8,286 9,094 
20253,232 7,428 3,070 770 6,304 8,198 
20262,735 7,019 1,912 76 4,647 7,094 
20271,577 7,023 748 — 2,325 7,023 
Later years1,229 17,510 81 — 1,310 17,510 
Total minimum lease payments15,516 48,277 12,222 2,393 27,772 50,669 
Less: Imputed interest1,302 7,060 715 126 2,017 7,186 
Lease liabilities as of June 30, 2023$14,214 $41,217 $11,507 $2,267 $25,755 $43,483