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v3.23.3

Lease Commitments (Tables) | 9 Months Ended
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Sep. 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:
| September 30, 2023 |  | December 31, 2022
| PNM |  | TNMP |  | PNMR Consolidated |  | PNM |  | TNMP |  | PNMR Consolidated
| (In thousands)
Operating leases: |  |  |  |  |  |  |  |  |  |  |
Operating lease assets, net of amortization | $ | 183,889 |  |  | $ | 2,099 |  |  | $ | 185,989 |  |  | $ | 52,556 |  |  | $ | 3,426 |  |  | $ | 55,982 |
Current portion of operating lease liabilities | 10,992 |  |  | 991 |  |  | 11,983 |  |  | 17,239 |  |  | 1,543 |  |  | 18,781 |
Long-term portion of operating lease liabilities | 167,891 |  |  | 959 |  |  | 168,849 |  |  | 39,633 |  |  | 1,703 |  |  | 41,336 |
Information related to the Company’s financing leases recorded on the Condensed Consolidated Balance Sheets is presented below:
| September 30, 2023 |  | December 31, 2022
| PNM |  | TNMP |  | PNMR Consolidated |  | PNM |  | TNMP |  | PNMR Consolidated
| (In thousands)
Financing leases: |  |  |  |  |  |  |  |  |  |  |
Non-utility property | $ | 25,144 |  |  | $ | 22,931 |  |  | $ | 48,143 |  |  | $ | 19,324 |  |  | $ | 20,084 |  |  | $ | 39,738 |
Accumulated depreciation | (10,905) |  |  | (10,898) |  |  | (21,851) |  |  | (7,726) |  |  | (8,202) |  |  | (16,189) |
Non-utility property, net | 14,239 |  |  | 12,033 |  |  | 26,292 |  |  | 11,598 |  |  | 11,882 |  |  | 23,549 |
Other current liabilities | $ | 4,339 |  |  | $ | 4,459 |  |  | $ | 8,813 |  |  | $ | 3,441 |  |  | $ | 3,867 |  |  | $ | 7,363 |
Other deferred credits | 9,888 |  |  | 7,593 |  |  | 17,486 |  |  | 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 September 30, 2023 is presented below:
| PNM |  | TNMP |  | PNMR Consolidated
Weighted average remaining lease term (years): |  |  |  |  |
Operating leases | 17.08 |  | 1.84 |  | 16.92
Financing leases | 3.91 |  | 3.08 |  | 3.53
Weighted average discount rate: |  |  |  |  |
Operating leases | 5.61 | % |  | 4.15 | % |  | 5.60 | %
Financing leases | 4.43 | % |  | 4.24 | % |  | 4.34 | %
Lease, Cost | Information for the components of lease expense is as follows:
| Three Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2023
| PNM |  | TNMP |  | PNMR Consolidated |  | PNM |  | TNMP |  | PNMR Consolidated
| (In thousands)
Operating lease cost: | $ | 4,001 |  |  | $ | 345 |  |  | $ | 4,346 |  |  | $ | 10,377 |  |  | $ | 1,175 |  |  | $ | 11,552 |
Amounts capitalized | (71) |  |  | (302) |  |  | (373) |  |  | (334) |  |  | (1,031) |  |  | (1,365) |
Total operating lease expense | 3,930 |  |  | 43 |  |  | 3,973 |  |  | 10,043 |  |  | 144 |  |  | 10,187 |
Financing lease cost: |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | 1,193 |  |  | 1,183 |  |  | 2,389 |  |  | 3,325 |  |  | 3,345 |  |  | 6,718 |
Interest on lease liabilities | 148 |  |  | 126 |  |  | 274 |  |  | 411 |  |  | 349 |  |  | 760 |
Amounts capitalized | (844) |  |  | (1,071) |  |  | (1,915) |  |  | (2,313) |  |  | (3,076) |  |  | (5,389) |
Total financing lease expense | 497 |  |  | 238 |  |  | 748 |  |  | 1,423 |  |  | 618 |  |  | 2,089 |
Variable lease expense | 360 |  |  | — |  |  | 360 |  |  | 982 |  |  | — |  |  | 982 |
Short-term lease expense | 174 |  |  | 7 |  |  | 190 |  |  | 438 |  |  | 22 |  |  | 490 |
Total lease expense for the period | $ | 4,961 |  |  | $ | 288 |  |  | $ | 5,271 |  |  | $ | 12,886 |  |  | $ | 784 |  |  | $ | 13,748 |
| Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
| PNM |  | TNMP |  | PNMR Consolidated |  | PNM |  | TNMP |  | PNMR Consolidated
| (In thousands)
Operating lease cost: | $ | 6,736 |  |  | $ | 466 |  |  | $ | 7,205 |  |  | $ | 20,085 |  |  | $ | 1,489 |  |  | $ | 21,623 |
Amounts capitalized | (166) |  |  | (410) |  |  | (577) |  |  | (524) |  |  | (1,336) |  |  | (1,860) |
Total operating lease expense | 6,570 |  |  | 56 |  |  | 6,628 |  |  | 19,561 |  |  | 153 |  |  | 19,763 |
Financing lease cost: |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | 792 |  |  | 779 |  |  | 1,585 |  |  | 2,293 |  |  | 2,334 |  |  | 4,680 |
Interest on lease liabilities | 84 |  |  | 85 |  |  | 170 |  |  | 231 |  |  | 238 |  |  | 471 |
Amounts capitalized | (588) |  |  | (829) |  |  | (1,417) |  |  | (1,648) |  |  | (2,309) |  |  | (3,957) |
Total financing lease expense | 288 |  |  | 35 |  |  | 338 |  |  | 876 |  |  | 263 |  |  | 1,194 |
Variable lease expense | 262 |  |  | — |  |  | 262 |  |  | 629 |  |  | — |  |  | 629 |
Short-term lease expense (1) | 568 |  |  | 1 |  |  | 567 |  |  | 2,837 |  |  | 4 |  |  | 2,884 |
Total lease expense for the period | $ | 7,688 |  |  | $ | 92 |  |  | $ | 7,795 |  |  | $ | 23,903 |  |  | $ | 420 |  |  | $ | 24,470 |
(1) Includes expense of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are offset with insurance reimbursements of $0.4 million and $2.7 million for the three and nine months ended September 30, 2022.
Schedule of Leases, Supplemental Cash Flows | Supplemental cash flow information related to the Company’s leases is as follows:
| Nine Months Ended |  | Nine Months Ended
| September 30, 2023 |  | September 30, 2022
| 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 | $ | 18,714 |  |  | $ | 113 |  |  | $ | 18,827 |  |  | $ | 25,503 |  |  | $ | 118 |  |  | $ | 25,670 |
Operating cash flows from financing leases | 135 |  |  | 47 |  |  | 183 |  |  | 67 |  |  | 32 |  |  | 101 |
Finance cash flows from financing leases | 1,221 |  |  | 565 |  |  | 1,836 |  |  | 810 |  |  | 371 |  |  | 1,249 |
Non-cash information related to right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |  |  |  |
Operating leases | $ | 138,878 |  |  | $ | 6 |  |  | $ | 138,884 |  |  | $ | 2,924 |  |  | $ | — |  |  | $ | 2,924 |
Financing leases | 5,977 |  |  | 3,508 |  |  | 9,485 |  |  | 3,032 |  |  | 2,349 |  |  | 5,381 |
Lessee, Operating Lease, Liability, Maturity | Future expected lease payments are shown below:
| As of September 30, 2023
| PNM |  | TNMP |  | PNMR Consolidated
|  |  | Operating |  |  |  |  |  |  |  | Operating
| Financing |  | Battery Storage |  | Other |  | Financing |  | Operating |  | Financing |  | Battery Storage |  | Other
| (In thousands) |  |
Remainder of 2023 | $ | 1,344 |  |  | $ | 2,947 |  |  | $ | 145 |  |  | $ | 1,298 |  |  | $ | 264 |  |  | $ | 2,646 |  |  | $ | 2,947 |  |  | $ | 409 |
2024 | 4,510 |  |  | 11,786 |  |  | 8,154 |  |  | 4,564 |  |  | 945 |  |  | 9,088 |  |  | 11,786 |  |  | 9,099 |
2025 | 3,522 |  |  | 11,786 |  |  | 7,433 |  |  | 3,480 |  |  | 770 |  |  | 7,004 |  |  | 11,786 |  |  | 8,203 |
2026 | 3,010 |  |  | 11,786 |  |  | 7,024 |  |  | 2,299 |  |  | 76 |  |  | 5,309 |  |  | 11,786 |  |  | 7,100 |
2027 | 1,788 |  |  | 11,786 |  |  | 7,028 |  |  | 1,010 |  |  | — |  |  | 2,798 |  |  | 11,786 |  |  | 7,028 |
Later years | 1,386 |  |  | 184,041 |  |  | 17,619 |  |  | 219 |  |  | — |  |  | 1,605 |  |  | 184,041 |  |  | 17,619 |
Total minimum lease payments | 15,560 |  |  | 234,132 |  |  | 47,403 |  |  | 12,870 |  |  | 2,055 |  |  | 28,450 |  |  | 234,132 |  |  | 49,458 |
Less: Imputed interest | 1,333 |  |  | 95,916 |  |  | 6,736 |  |  | 818 |  |  | 105 |  |  | 2,151 |  |  | 95,916 |  |  | 6,842 |
Lease liabilities | $ | 14,227 |  | $ | 138,216 |  | $ | 40,667 |  | $ | 12,052 |  | $ | 1,950 |  | $ | 26,299 |  | $ | 138,216 |  | $ | 42,616
Finance Lease, Liability, Maturity | Future expected lease payments are shown below:
| As of September 30, 2023
| PNM |  | TNMP |  | PNMR Consolidated
|  |  | Operating |  |  |  |  |  |  |  | Operating
| Financing |  | Battery Storage |  | Other |  | Financing |  | Operating |  | Financing |  | Battery Storage |  | Other
| (In thousands) |  |
Remainder of 2023 | $ | 1,344 |  |  | $ | 2,947 |  |  | $ | 145 |  |  | $ | 1,298 |  |  | $ | 264 |  |  | $ | 2,646 |  |  | $ | 2,947 |  |  | $ | 409 |
2024 | 4,510 |  |  | 11,786 |  |  | 8,154 |  |  | 4,564 |  |  | 945 |  |  | 9,088 |  |  | 11,786 |  |  | 9,099 |
2025 | 3,522 |  |  | 11,786 |  |  | 7,433 |  |  | 3,480 |  |  | 770 |  |  | 7,004 |  |  | 11,786 |  |  | 8,203 |
2026 | 3,010 |  |  | 11,786 |  |  | 7,024 |  |  | 2,299 |  |  | 76 |  |  | 5,309 |  |  | 11,786 |  |  | 7,100 |
2027 | 1,788 |  |  | 11,786 |  |  | 7,028 |  |  | 1,010 |  |  | — |  |  | 2,798 |  |  | 11,786 |  |  | 7,028 |
Later years | 1,386 |  |  | 184,041 |  |  | 17,619 |  |  | 219 |  |  | — |  |  | 1,605 |  |  | 184,041 |  |  | 17,619 |
Total minimum lease payments | 15,560 |  |  | 234,132 |  |  | 47,403 |  |  | 12,870 |  |  | 2,055 |  |  | 28,450 |  |  | 234,132 |  |  | 49,458 |
Less: Imputed interest | 1,333 |  |  | 95,916 |  |  | 6,736 |  |  | 818 |  |  | 105 |  |  | 2,151 |  |  | 95,916 |  |  | 6,842 |
Lease liabilities | $ | 14,227 |  | $ | 138,216 |  | $ | 40,667 |  | $ | 12,052 |  | $ | 1,950 |  | $ | 26,299 |  | $ | 138,216 |  | $ | 42,616

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147478964/842-20-50-4 + Details
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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147478964/842-20-50-6 + Details
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