Lease Commitments (Tables)

3 Months Ended

Mar. 31, 2019

Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets, including amounts recognized upon adoption of ASU 2016-02, is presented below:



	March 31, 2019						January 1, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating leases:
Operating lease assets, net of amortization	$	137,756	$	12,160	$	150,426	$	143,816	$	12,942	$	157,440
Current portion of operating lease liabilities	22,762		3,023		26,197		21,589		3,132		25,189
Long-term portion of operating lease liabilities	115,436		9,088		124,937		124,891		9,787		135,174

Information related to the Company’s financing leases recorded on the Condensed Consolidated Balance Sheets is presented below:



	March 31, 2019
	PNM			TNMP			PNMR Consolidated
	(In thousands)
Financing leases:
Non-utility property	$	1,635		$	1,268		$	2,904
Accumulated depreciation	(37		)	(40		)	(78		)
Non-utility property, net	$	1,598		$	1,228		$	2,826

Other current liabilities	$	233		$	217		$	450
Other deferred credits	1,083			1,006			2,089

Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities is presented below:



	March 31, 2019
	PNM		TNMP		PNMR Consolidated
Weighted average remaining lease term (In years):
Operating leases	7.18		4.67		6.95
Financing leases	5.72		5.75		5.74

Weighted average discount rate:
Operating leases	3.88	%	3.88	%	3.88	%
Financing leases	4.34	%	4.55	%	4.43	%

Lease, Cost

Information for the components of lease expense is as follows:



	Three Months Ended March 31, 2019
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Total operating lease expense	$	7,231	$	241	$	7,611

Financing lease expense:
Amortization of right-of-use assets	66		58		125
Interest on lease liabilities	16		17		32
Total financing lease expense	82		75		157

Variable lease expense	—		—		—
Short-term lease expense	74		3		94
Total lease expense for the period	$	7,387	$	319	$	7,862

Schedule of Leases, Supplemental Cash Flows

Supplemental cash flow information related to the Company’s leases is as follows:



	Three Months Ending March 31, 2019
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,452	$	284	$	9,891
Operating cash flows from financing leases	16		17		32
Finance cash flows from financing leases	25		33		58

Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	143,816	$	12,942	$	157,440
Financing leases	1,635		1,268		2,904

Lessee, Operating Lease, Liability, Maturity

Future expected lease payments as of March 31, 2019 and December 31, 2018 are shown below:



	As of March 31, 2019
	PNM				TNMP				PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2019	$	266	$	17,917	$	209	$	2,622	$	475	$	20,980
2020	344		27,045		269		2,993		613		30,555
2021	332		26,505		259		2,398		591		29,158
2022	319		26,235		249		1,846		568		28,255
2023	307		17,457		181		1,281		488		18,879
Later years	224		42,328		214		1,151		438		43,490
Total minimum lease payments	1,792		157,487		1,381		12,291		3,173		171,317
Less: Imputed interest	476		19,289		158		180		634		20,183
Lease liabilities as of March 31, 2019	$	1,316	$	138,198	$	1,223	$	12,111	$	2,539	$	151,134

Finance Lease, Liability, Maturity

Future expected lease payments as of March 31, 2019 and December 31, 2018 are shown below:



	As of March 31, 2019
	PNM				TNMP				PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2019	$	266	$	17,917	$	209	$	2,622	$	475	$	20,980
2020	344		27,045		269		2,993		613		30,555
2021	332		26,505		259		2,398		591		29,158
2022	319		26,235		249		1,846		568		28,255
2023	307		17,457		181		1,281		488		18,879
Later years	224		42,328		214		1,151		438		43,490
Total minimum lease payments	1,792		157,487		1,381		12,291		3,173		171,317
Less: Imputed interest	476		19,289		158		180		634		20,183
Lease liabilities as of March 31, 2019	$	1,316	$	138,198	$	1,223	$	12,111	$	2,539	$	151,134

Schedule of Future Minimum Rental Payments for Operating Leases



	As of December 31, 2018
	Operating leases
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Remainder of 2019	$	27,691	$	3,664	$	31,772
2020	27,000		3,102		30,404
2021	26,462		2,324		29,012
2022	26,217		1,795		28,175
2023	17,447		1,279		18,868
Later years	42,329		1,150		43,489
Total minimum lease payments	167,146		13,314		181,720