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Lease Commitments (Tables)

6 Months Ended

Jun. 30, 2020

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


	June 30, 2020										December 31, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating leases:
Operating lease assets, net of amortization	$	109,042	$	8,535	$	118,140	$	120,585	$	9,954	$	131,212
Current portion of operating lease liabilities	24,039		2,428		26,744		25,927		2,753		29,068
Long-term portion of operating lease liabilities	85,028		5,897		91,320		97,992		7,039		105,512

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


	June 30, 2020										December 31, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Financing leases:
Non-utility property	$	8,561	$	9,712	$	18,540	$	4,857	$	4,910	$	10,028
Accumulated depreciation	(1,070)		(1,137)		(2,267)		(482)		(466)		(973)
Non-utility property, net	7,491		8,575		16,273		4,375		4,444		9,055

Other current liabilities	1,512		1,623		3,203		722		850		1,637
Other deferred credits	5,699		6,958		12,800		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 June 30, 2020 is presented below:



	PNM		TNMP		PNMR Consolidated
Weighted average remaining lease term (years):
Operating leases	6.10		3.85		5.93
Financing leases	4.94		5.48		5.21

Weighted average discount rate:
Operating leases	3.90	%	4.00	%	3.91	%
Financing leases	3.12	%	3.26	%	3.19	%

Lease, Cost

Information for the components of lease expense is as follows:


	Three Months Ended June 30, 2020										Six Months Ended June 30, 2020
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost:	$	6,847	$	746	$	7,658	$	13,740	$	1,521	$	15,393
Amounts capitalized	(247)		(602)		(849)		(538)		(1,237)		(1,774)
Total operating lease expense	$	6,600	$	144	$	6,809	$	13,202	$	284	$	13,619
Financing lease cost:
Amortization of right-of-use assets	341		382		741		588		672		1,294
Interest on lease liabilities	52		68		121		97		124		224
Amounts capitalized	(226)		(369)		(594)		(401)		(653)		(1,053)
Total financing lease expense	167		81		268		284		143		465

Variable lease expense	63		—		63		95		—		95
Short-term lease expense	75		1		75		160		1		161
Total lease expense for the period	$	6,905	$	226	$	7,215	$	13,741	$	428	$	14,340


	Three Months Ended June 30, 2019										Six Months Ended June 30, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost:	$	6,803	$	815	$	7,692	$	14,386	$	1,713	$	16,312
Amounts capitalized	(344)		(662)		(1,006)		(696)		(1,319)		(2,015)
Total operating lease expense	$	6,459	$	153	$	6,686	$	13,690	$	394	$	14,297
Financing lease cost:
Amortization of right-of-use assets	77		81		158		143		139		282
Interest on lease liabilities	14		17		31		30		34		64
Amounts capitalized	(41)		(38)		(79)		(82)		(75)		(157)
Total financing lease expense	50		60		110		91		98		189

Variable lease expense	32		—		32		32		—		32
Short-term lease expense	75		2		101		149		5		195
Total lease expense for the period	$	6,616	$	215	$	6,929	$	13,962	$	497	$	14,713

Schedule of Leases, Supplemental Cash Flows

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


	Six Months Ended June 30 ,										Six Months Ended June 30 ,
	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	$	16,511	$	331	$	17,125	$	16,704	$	529	$	17,494
Operating cash flows from financing leases	36		20		59		18		20		38
Finance cash flows from financing leases	207		120		360		54		76		130

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	3,703		4,802		8,513		2,516		2,305		4,821

Lessee, Operating Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of June 30, 2020
	PNM						TNMP						PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2020	$	862	$	9,979	$	944	$	1,437	$	1,842	$	11,686
2021	1,688		26,576		1,845		2,448		3,606		29,316
2022	1,642		26,266		1,766		1,996		3,480		28,473
2023	1,587		17,735		1,617		1,508		3,241		19,423
2024	985		7,908		1,379		877		2,364		8,833
Later years	1,019		34,466		1,791		765		2,811		35,489
Total minimum lease payments	7,783		122,930		9,342		9,031		17,344		133,220
Less: Imputed interest	572		13,863		761		705		1,340		15,167
Lease liabilities as of June 30, 2020	$	7,211	$	109,067	$	8,581	$	8,326	$	16,004	$	118,053

Finance Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of June 30, 2020
	PNM						TNMP						PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2020	$	862	$	9,979	$	944	$	1,437	$	1,842	$	11,686
2021	1,688		26,576		1,845		2,448		3,606		29,316
2022	1,642		26,266		1,766		1,996		3,480		28,473
2023	1,587		17,735		1,617		1,508		3,241		19,423
2024	985		7,908		1,379		877		2,364		8,833
Later years	1,019		34,466		1,791		765		2,811		35,489
Total minimum lease payments	7,783		122,930		9,342		9,031		17,344		133,220
Less: Imputed interest	572		13,863		761		705		1,340		15,167
Lease liabilities as of June 30, 2020	$	7,211	$	109,067	$	8,581	$	8,326	$	16,004	$	118,053