Segment Information

12 Months Ended

Dec. 31, 2015

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, as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM’s jurisdictional assets as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale and transmission rates.

TNMP

TNMP is an electric utility providing regulated transmission and distribution services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT.

Corporate and Other

The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company.

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

2015	PNM			TNMP			Corporate and Other			Consolidated
	(In thousands)
Electric operating revenues	$	1,131,195		$	307,887		$	—		$	1,439,082
Cost of energy	391,131			73,518			—			464,649
Margin	740,064			234,369			—			974,433
Other operating expenses	590,967			88,051			(14,854		)	664,164
Depreciation and amortization	115,717			56,285			13,917			185,919
Operating income	33,380			90,033			937			124,350
Interest income	6,574			—			(76		)	6,498
Other income (deductions)	26,914			3,736			(485		)	30,165
Interest charges	(79,950		)	(27,681		)	(7,229		)	(114,860		)
Segment earnings (loss) before income taxes	(13,082		)	66,088			(6,853		)	46,153
Income taxes (benefit)	(12,758		)	24,125			3,708			15,075
Segment earnings (loss)	(324		)	41,963			(10,561		)	31,078
Valencia non-controlling interest	(14,910		)	—			—			(14,910		)
Subsidiary preferred stock dividends	(528		)	—			—			(528		)
Segment earnings (loss) attributable to PNMR	$	(15,762	)	$	41,963		$	(10,561	)	$	15,640
At December 31, 2015:
Total Assets	$	4,599,344		$	1,297,139		$	112,845		$	6,009,328
Goodwill	$	51,632		$	226,665		$	—		$	278,297

2014	PNM			TNMP			Corporate and Other			Consolidated
Electric operating revenues	$	1,147,914		$	287,939		$	—		$	1,435,853
Cost of energy	403,626			67,930			—			471,556
Margin	744,288			220,009			—			964,297
Other operating expenses	422,051			84,365			(14,450		)	491,966
Depreciation and amortization	109,524			50,056			13,054			172,634
Operating income	212,713			85,588			1,396			299,697
Interest income	8,557			—			(74		)	8,483
Other income (deductions)	12,258			2,138			(2,302		)	12,094
Interest charges	(79,442		)	(27,396		)	(12,789		)	(119,627		)
Segment earnings (loss) before income taxes	154,086			60,330			(13,769		)	200,647
Income taxes (benefit)	52,633			22,523			(5,418		)	69,738
Segment earnings (loss)	101,453			37,807			(8,351		)	130,909
Valencia non-controlling interest	(14,127		)	—			—			(14,127		)
Subsidiary preferred stock dividends	(528		)	—			—			(528		)
Segment earnings (loss) attributable to PNMR	$	86,798		$	37,807		$	(8,351	)	$	116,254
At December 31, 2014:
Total Assets	$	4,453,114		$	1,229,417		$	107,706		$	5,790,237
Goodwill	$	51,632		$	226,665		$	—		$	278,297

2013	PNM			TNMP			Corporate and Other			Consolidated
Electric operating revenues	$	1,116,312		$	271,611		$	—		$	1,387,923
Cost of energy	374,710			57,606			—			432,316
Margin	741,602			214,005			—			955,607
Other operating expenses	428,591			91,601			(18,308		)	501,884
Depreciation and amortization	103,826			50,219			12,836			166,881
Operating income	209,185			72,185			5,472			286,842
Interest income	10,182			—			(139		)	10,043
Other income (deductions)	11,288			1,919			(13,575		)	(368		)
Interest charges	(79,175		)	(27,393		)	(14,880		)	(121,448		)
Segment earnings (loss) before income taxes	151,480			46,711			(23,122		)	175,069
Income taxes (benefit)	48,804			17,621			(6,912		)	59,513
Segment earnings (loss)	102,676			29,090			(16,210		)	115,556
Valencia non-controlling interest	(14,521		)	—			—			(14,521		)
Subsidiary preferred stock dividends	(528		)	—			—			(528		)
Segment earnings (loss) attributable to PNMR	$	87,627		$	29,090		$	(16,210	)	$	100,507
At December 31, 2013:
Total Assets	$	4,174,261		$	1,151,327		$	101,270		$	5,426,858
Goodwill	$	51,632		$	226,665		$	—		$	278,297

Major Customers

No individual customer accounted for more than 10% of the electric operating revenues of PNMR or PNM. Three customers of TNMP accounted for 16% in 2015, 15% in 2014, and 16% in 2013; 13% in 2015, 15% in 2014, and 17% in 2013; and 11% in 2015, 11% in 2014, and 10% in 2013 of TNMP’s electric operating revenues.