XML 97 R64.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | TXNM’s income taxes (benefits) consist of the following components:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Current federal income tax | $ | — |  |  | $ | — |  |  | $ | — |
Current state income tax (benefit) | (1,984) |  |  | (2,841) |  |  | 1,597 |
Deferred federal income tax (benefit) | 13,042 |  |  | (11,503) |  |  | 18,413 |
Deferred state income tax (benefit) | 10,630 |  |  | (825) |  |  | 7,302 |
Amortization of accumulated investment tax credits | (170) |  |  | (1,181) |  |  | (1,182) |
Total income taxes (benefits) | $ | 21,518 |  |  | $ | (16,350) |  |  | $ | 26,130 |
PNM’s income taxes (benefits) consist of the following components:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Current federal income tax (benefit) | $ | (7,005) |  |  | $ | 9,518 |  |  | $ | (13,533) |
Current state income tax (benefit) | (5,681) |  |  | (4,304) |  |  | 3,244 |
Deferred federal income tax (benefit) | 28,183 |  |  | (22,951) |  |  | 25,298 |
Deferred state income tax | 13,890 |  |  | 1,150 |  |  | 4,361 |
Amortization of accumulated investment tax credits | (170) |  |  | (171) |  |  | (172) |
Total income taxes (benefits) | $ | 29,217 |  |  | $ | (16,758) |  |  | $ | 19,198 |
TNMP’s income taxes consist of the following components:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Current federal income tax | $ | (2,549) |  |  | $ | 11,354 |  |  | $ | 17,055 |
Current state income tax | 3,300 |  |  | 3,055 |  |  | 2,662 |
Deferred federal income tax (benefit) | 26,363 |  |  | 2,917 |  |  | (4,527) |
Deferred state income tax (benefit) | — |  |  | (29) |  |  | (29) |
Total income taxes | $ | 27,114 |  |  | $ | 17,297 |  |  | $ | 15,161 |
Schedule of Effective Income Tax Rate Reconciliation | TXNM’s provision for income taxes (benefits) differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Federal income tax at statutory rates | $ | 58,850 |  |  | $ | 19,011 |  |  | $ | 44,375 |
Amortization of accumulated investment tax credits | (170) |  |  | (1,181) |  |  | (1,182) |
Amortization of excess deferred income tax | (23,362) |  |  | (22,859) |  |  | (23,599) |
Flow-through of depreciation items | 1,003 |  |  | 1,281 |  |  | 2,795 |
(Earnings) attributable to non-controlling interest in Valencia | (3,368) |  |  | (3,892) |  |  | (3,176) |
State income tax (benefit), net of federal (benefit) | 6,284 |  |  | (2,239) |  |  | 6,826 |
Allowance for equity funds used during construction | (3,756) |  |  | (3,145) |  |  | (2,898) |
Allocation of tax (benefit) related to stock compensation awards | (17) |  |  | (261) |  |  | 91 |
Non-deductible compensation | 1,332 |  |  | 1,659 |  |  | 1,125 |
Non-deductible merger related costs | — |  |  | (1,959) |  |  | 74 |
Sale of NMRD | (15,822) |  |  | — |  |  | — |
R&D credit | (1,500) |  |  | (2,050) |  |  | (1,320) |
Other | 2,044 |  |  | (715) |  |  | 3,019 |
Total income taxes (benefits) | $ | 21,518 |  |  | $ | (16,350) |  |  | $ | 26,130 |
Effective tax rate | 7.68 | % |  | (18.06) | % |  | 12.37 | %
PNM’s provision for income taxes (benefits) differed from the federal income tax computed at the statutory rate for each of the years shown. The differences are attributable to the following factors:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Federal income tax at statutory rates | $ | 49,868 |  |  | $ | 7,972 |  |  | $ | 29,026 |
Amortization of accumulated investment tax credits | (170) |  |  | (171) |  |  | (172) |
Amortization of excess deferred income tax | (20,750) |  |  | (14,252) |  |  | (14,421) |
Flow-through of depreciation items | 796 |  |  | 1,114 |  |  | 2,641 |
(Earnings) attributable to non-controlling interest in Valencia | (3,368) |  |  | (3,892) |  |  | (3,176) |
State income tax (benefit), net of federal (benefit) | 6,594 |  |  | (2,216) |  |  | 5,694 |
Allowance for equity funds used during construction | (2,739) |  |  | (2,065) |  |  | (1,958) |
Allocation of tax (benefit) related to stock compensation awards | (10) |  |  | (185) |  |  | 65 |
Non-deductible compensation | 822 |  |  | 1,015 |  |  | 701 |
Non-deductible merger costs | — |  |  | (33) |  |  | 10 |
R&D credit | (1,450) |  |  | (2,000) |  |  | (1,300) |
Other | (376) |  |  | (2,045) |  |  | 2,088 |
Total income taxes (benefits) | $ | 29,217 |  |  | $ | (16,758) |  |  | $ | 19,198 |
Effective tax rate | 12.30 | % |  | (44.15) | % |  | 13.89 | %
TNMP’s provision for income taxes differed from the federal income tax computed at the statutory rate for each of the periods shown. The differences are attributable to the following factors:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (In thousands)
Federal income tax at statutory rates | $ | 27,435 |  |  | $ | 23,569 |  |  | $ | 22,560 |
Amortization of excess deferred income tax | (2,612) |  |  | (8,607) |  |  | (9,177) |
State income tax, net of federal (benefit) | 2,606 |  |  | 2,414 |  |  | 2,103 |
Allocation of tax (benefit) related to stock compensation awards | (4) |  |  | (77) |  |  | 26 |
Non-deductible compensation | 509 |  |  | 642 |  |  | 422 |
Transaction costs | — |  |  | 3 |  |  | 1 |
Other | (820) |  |  | (647) |  |  | (774) |
Total income taxes | $ | 27,114 |  |  | $ | 17,297 |  |  | $ | 15,161 |
Effective tax rate | 20.75 | % |  | 15.41 | % |  | 14.11 | %
Schedule of Components of Net Accumulated Deferred Income Tax Liability | The components of TXNM’s net accumulated deferred income tax liability were:
| December 31,
| 2024 |  | 2023
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss | $ | 31,592 |  |  | $ | 16,833 |
Regulatory liabilities related to income taxes | 82,702 |  |  | 90,461 |
Federal tax credit carryforwards | 126,770 |  |  | 124,510 |
Regulatory disallowances | 42,330 |  |  | 42,330 |
Regulatory liability SJGS retirement credits | 40 |  |  | 28,797 |
Other | 52,955 |  |  | 35,492 |
Total deferred tax assets | 336,389 |  |  | 338,423 |
Deferred tax liabilities: |  |  |
Depreciation and plant related | (794,203) |  |  | (738,078) |
Investment tax credit | (81,068) |  |  | (95,046) |
Regulatory assets related to income taxes | (84,053) |  |  | (80,643) |
Pension | (41,383) |  |  | (41,141) |
Regulatory asset for shutdown of SJGS Units 2 and 3 | (20,860) |  |  | (22,454) |
Regulatory asset SJGS energy transition property | (85,365) |  |  | (86,521) |
Regulatory asset PVNGS investment | (21,044) |  |  | (20,503) |
PVNGS trusts | (48,421) |  |  | (41,767) |
Other | (59,384) |  |  | (57,550) |
Total deferred tax liabilities | (1,235,781) |  |  | (1,183,703) |
Net accumulated deferred income tax liabilities | $ | (899,392) |  |  | $ | (845,280) |
The components of PNM’s net accumulated deferred income tax liability were:
| December 31,
| 2024 |  | 2023
| (In thousands)
Deferred tax assets: |  |  |
Net operating loss | $ | — |  |  | $ | — |
Regulatory liabilities related to income taxes | 64,481 |  |  | 71,546 |
Federal tax credit carryforwards | 93,481 |  |  | 80,586 |
Regulatory disallowance | 42,330 |  |  | 42,330 |
Regulatory liability SJGS retirement credits | 40 |  |  | 28,797 |
Other | 35,650 |  |  | 35,993 |
Total deferred tax assets | 235,982 |  |  | 259,252 |
Deferred tax liabilities: |  |  |
Depreciation and plant related | (582,089) |  |  | (545,815) |
Investment tax credit | (81,068) |  |  | (73,844) |
Regulatory assets related to income taxes | (75,464) |  |  | (71,742) |
Pension | (36,678) |  |  | (36,483) |
Regulatory asset for shutdown of SJGS Units 2 and 3 | (20,860) |  |  | (22,454) |
Regulatory asset SJGS energy transition property | (85,365) |  |  | (86,521) |
Regulatory asset PVNGS investment | (21,044) |  |  | (20,503) |
PVNGS Trusts | (48,421) |  |  | (41,767) |
Other | (41,211) |  |  | (44,160) |
Total deferred tax liabilities | (992,200) |  |  | (943,289) |
Net accumulated deferred income tax liabilities | $ | (756,218) |  |  | $ | (684,037) |
The components of TNMP’s net accumulated deferred income tax liability were:
| December 31,
| 2024 |  | 2023
| (In thousands)
Deferred tax assets: |  |  |
Regulatory liabilities related to income taxes | $ | 18,221 |  |  | $ | 18,915 |
Other | 4,522 |  |  | 5,534 |
Total deferred tax assets | 22,743 |  |  | 24,449 |
Deferred tax liabilities: |  |  |
Depreciation and plant related | (200,709) |  |  | (179,483) |
Regulatory assets related to income taxes | (8,589) |  |  | (8,901) |
Loss on reacquired debt | (4,981) |  |  | (5,254) |
Pension | (4,706) |  |  | (4,659) |
AMS | (2,709) |  |  | (2,613) |
Other | (9,156) |  |  | (2,287) |
Total deferred tax liabilities | (230,850) |  |  | (203,197) |
Net accumulated deferred income tax liabilities | $ | (208,107) |  |  | $ | (178,748) |
Schedule of Change in Net Accumulated Deferred Income Tax Liability to the Deferred Income Tax | The following table reconciles the change in TXNM’s net accumulated deferred income tax liability to the deferred income tax (benefit) included in the Consolidated Statement of Earnings:
| Year Ended
| December 31, 2024
| (In thousands)
Net change in deferred income tax liability per above table | $ | 54,112 |
Change in tax effects of income tax related regulatory assets and liabilities | (11,629) |
Amortization of excess deferred income tax | (23,362) |
Tax effect of mark-to-market adjustments | 4,802 |
Tax effect of excess pension liability | (421) |
Adjustment for uncertain income tax positions | (135) |
Reclassification of unrecognized tax benefits | 135 |
Other | — |
Deferred income tax (benefit) | $ | 23,502 |
The following table reconciles the change in PNM’s net accumulated deferred income tax liability to the deferred income tax (benefit) included in the Consolidated Statement of Earnings:
| Year Ended
| December 31, 2024
| (In thousands)
Net change in deferred income tax liability per above table | $ | 72,181 |
Change in tax effects of income tax related regulatory assets and liabilities | (11,246) |
Amortization of excess deferred income tax | (20,750) |
Tax effect of mark-to-market adjustments | 3,554 |
Tax effect of excess pension liability | (421) |
Adjustment for uncertain income tax positions | (161) |
Reclassification of unrecognized tax benefits | (1,254) |
Deferred income tax (benefit) | $ | 41,903 |
The following table reconciles the change in TNMP’s net accumulated deferred income tax liability to the deferred income tax included in the Consolidated Statement of Earnings:
| Year Ended
| December 31, 2024
| (In thousands)
Net change in deferred income tax liability per above table | $ | 29,359 |
Change in tax effects of income tax related regulatory assets and liabilities | (383) |
Amortization of excess deferred income tax | (2,612) |
Other | (1) |
Deferred income tax | $ | 26,363 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of unrecognized tax benefits is as follows:
| TXNM |  | PNM |  | TNMP
| (In thousands)
Balance at December 31, 2021 | $ | 13,714 |  |  | $ | 10,771 |  |  | $ | 141 |
Additions based on tax positions related to 2021 | 1,444 |  |  | 1,437 |  |  | 7 |
Additions (reductions) for tax positions of prior years | (4) |  |  | (7) |  |  | 3 |
Balance at December 31, 2022 | 15,154 |  |  | 12,201 |  |  | 151 |
Additions based on tax positions related to 2022 | (277) |  |  | (294) |  |  | 17 |
Additions (reductions) for tax positions of prior years | 259 |  |  | 239 |  |  | 20 |
Balance at December 31, 2023 | 15,136 |  |  | 12,146 |  |  | 188 |
Additions (reductions) based on tax positions related to 2023 | 19 |  |  | 2 |  |  | 17 |
Additions for tax positions of prior years | (154) |  |  | (163) |  |  | 9 |
Balance at December 31, 2024 | $ | 15,001 |  |  | $ | 11,985 |  |  | $ | 214 |
Schedule of Impairments of Tax Attributes After Reflecting the Expiration of Carryforwards Under Applicable Tax Laws, Net of Federal Tax Benefit | Impairments of tax attributes after reflecting the expiration of carryforwards under applicable tax laws, net of federal tax benefit, for 2022 through 2024 are as follows:
| TXNM |  | PNM |  | TNMP
| (In thousands)
December 31, 2024: |  |  |  |  |
Federal tax credit carryforwards | $ | 131 |  |  | $ | — |  |  | $ | — |
Compensation expense | $ | (516) |  |  | $ | (335) |  |  | $ | (179) |
December 31, 2023: |  |  |  |  |
Federal tax credit carryforwards | $ | 839 |  |  | $ | (427) |  |  | $ | — |
Compensation expense | $ | 387 |  |  | $ | 246 |  |  | $ | 140 |
December 31, 2022: |  |  |  |  |
Federal tax credit carryforwards | $ | 187 |  |  | $ | 427 |  |  | $ | — |
Compensation expense | $ | 199 |  |  | $ | 140 |  |  | $ | 59 |
Schedule of Reserve Balances, After Reflecting Expiration of Carryforwards Under Applicable Tax Laws | The reserve balances, after reflecting expiration of carryforwards under applicable tax laws, at December 31, 2024 and 2023 are as follows:
| TXNM |  | PNM |  | TNMP
| (In thousands)
December 31, 2024: |  |  |  |  |
Federal tax credit carryforwards | $ | 2,186 |  |  | $ | — |  |  | $ | — |
Compensation expense | $ | 596 |  |  | $ | 394 |  |  | $ | 202 |
December 31, 2023: |  |  |  |  |
Federal tax credit carryforwards | $ | 2,055 |  |  | $ | — |  |  | $ | — |
Compensation expense | $ | 1,112 |  |  | $ | 729 |  |  | $ | 381 |

X
- Definition Schedule of Deferred Income Tax Components [Table Text Block] + References No definition available. + Details
Name: | pnm_ScheduleOfDeferredIncomeTaxComponentsTableTextBlock
Namespace Prefix: | pnm_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tax Carryforward, Impairments, Net Of Federal Tax Benefit [Table Text Block] + References No definition available. + Details
Name: | pnm_TaxCarryforwardImpairmentsNetOfFederalTaxBenefitTableTextBlock
Namespace Prefix: | pnm_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-3 + Details
Name: | us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration