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Lease Commitments (Tables)

3 Months Ended

Mar. 31, 2020

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


	March 31, 2020										December 31, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating leases:
Operating lease assets, net of amortization	$	114,829	$	9,271	$	124,717	$	120,585	$	9,954	$	131,212
Current portion of operating lease liabilities	26,727		2,624		29,693		25,927		2,753		29,068
Long-term portion of operating lease liabilities	88,686		6,459		95,573		97,992		7,039		105,512

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


	March 31, 2020										December 31, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Financing leases:
Non-utility property	$	6,320	$	7,712	$	14,299	$	4,857	$	4,910	$	10,028
Accumulated depreciation	(729)		(756)		(1,527)		(482)		(466)		(973)
Non-utility property, net	5,591		6,956		12,772		4,375		4,444		9,055

Other current liabilities	975		1,255		2,298		722		850		1,637
Other deferred credits	4,316		5,706		10,182		3,333		3,597		7,102

Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of March 31, 2020 is presented below:



	PNM		TNMP		PNMR Consolidated
Weighted average remaining lease term (years):
Operating leases	6.55		3.98		6.35
Financing leases	5.53		5.68		5.57

Weighted average discount rate:
Operating leases	3.92	%	3.97	%	3.92	%
Financing leases	3.57	%	3.52	%	3.52	%

Lease, Cost

Information for the components of lease expense is as follows:


	Three Months Ended March 31, 2020
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost:	$	6,893	$	774	$	7,735
Less: amounts capitalized	(291)		(634)		(925)
Total operating lease expense	6,602		140		6,810
Financing lease cost:
Amortization of right-of-use assets	247		289		553
Interest on lease liabilities	45		56		103
Less: amounts capitalized	(175)		(283)		(458)
Total financing lease expense	117		62		198

Variable lease expense	32		—		32
Short-term lease expense	85		1		86
Total lease expense for the period	$	6,836	$	203	$	7,126


	Three Months Ended March 31, 2019
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost:	$	7,583	$	898	$	8,620
Less: amounts capitalized	(352)		(657)		(1,009)
Total operating lease expense	7,231		241		7,611
Financing lease cost:
Amortization of right-of-use assets	104		98		203
Interest on lease liabilities	16		17		32
Less: amounts capitalized	(38)		(40)		(78)
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 Ended March 31,										Three Months Ended March 31,
	2020										2019
	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	$	9,351	$	166	$	9,658	$	9,452	$	284	$	9,891
Operating cash flows from financing leases	16		9		27		16		17		32
Finance cash flows from financing leases	80		51		147		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	1,463		2,802		4,272		1,635		1,268		2,904

Lessee, Operating Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of March 31, 2020
	PNM						TNMP						PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2020	$	861	$	17,386	$	1,111	$	2,279	$	2,027	$	20,076
2021	1,117		26,576		1,441		2,448		2,631		29,316
2022	1,082		26,266		1,396		1,996		2,551		28,473
2023	1,038		17,735		1,269		1,508		2,345		19,423
2024	712		7,908		1,074		877		1,786		8,833
Later years	1,008		34,466		1,367		765		2,375		35,488
Total minimum lease payments	5,818		130,337		7,658		9,873		13,715		141,609
Less: Imputed interest	527		14,924		697		790		1,235		16,343
Lease liabilities as of March 31, 2020	$	5,291	$	115,413	$	6,961	$	9,083	$	12,480	$	125,266

Finance Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of March 31, 2020
	PNM						TNMP						PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2020	$	861	$	17,386	$	1,111	$	2,279	$	2,027	$	20,076
2021	1,117		26,576		1,441		2,448		2,631		29,316
2022	1,082		26,266		1,396		1,996		2,551		28,473
2023	1,038		17,735		1,269		1,508		2,345		19,423
2024	712		7,908		1,074		877		1,786		8,833
Later years	1,008		34,466		1,367		765		2,375		35,488
Total minimum lease payments	5,818		130,337		7,658		9,873		13,715		141,609
Less: Imputed interest	527		14,924		697		790		1,235		16,343
Lease liabilities as of March 31, 2020	$	5,291	$	115,413	$	6,961	$	9,083	$	12,480	$	125,266