Fair Value of Derivative and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value of Derivative and Other Financial Instruments [Abstract]

Summary of Derivatives

PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets:

	Economic Hedges
	September 30, 2021		December 31, 2020
	(In thousands)
Other current assets	$	753	$	1,096
Other deferred charges	—		455
	753		1,551
Other current liabilities	(2,703)		(1,096)
Other deferred credits	—		(455)
	(2,703)		(1,551)
Net	$	(1,950)	$	—

Schedule of Gross Realized Gains and Losses

Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT and reclamation trusts are presented in the following table:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands)
Equity securities:
Net gains (losses) from equity securities sold	$	(309)	$	90	$	5,931	$	4,131
Net gains (losses) from equity securities still held	(3,153)		8,545		2,388		2,991
Total net gains (losses) on equity securities	(3,462)		8,635		8,319		7,122
Available-for-sale debt securities:
Net gains (losses) on debt securities	5,410		5,766		7,789		(3,950)
Net gains on investment securities	$	1,948	$	14,401	$	16,108	$	3,172

The proceeds and gross realized gains and losses on the disposition of securities held in the NDT and coal mine reclamation trusts are shown in the following table. Realized gains and losses are determined by specific identification of costs of securities sold. Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $0.6 million and $1.2 million for the three and nine months ended September 30, 2021 and $4.2 million and $(4.5) million for the three and nine months ended September 30, 2020.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands)
Proceeds from sales	$	128,683	$	134,567	$	396,870	$	489,218
Gross realized gains	$	10,986	$	12,998	$	30,290	$	30,085
Gross realized (losses)	$	(6,527)	$	(11,374)	$	(17,776)	$	(25,411)

Investments Classified by Contractual Maturity Date

At September 30, 2021, the available-for-sale debt securities held by PNM, had the following final maturities:

	Fair Value
	(In thousands)
Within 1 year	$	26,085
After 1 year through 5 years	77,703
After 5 years through 10 years	93,532
After 10 years through 15 years	21,475
After 15 years through 20 years	13,858
After 20 years	33,306
	$	265,959

Schedule of Investments

Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities:

			GAAP Fair Value Hierarchy
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unrealized Gains
	(In thousands)
September 30, 2021
Cash and cash equivalents	$	8,229	$	8,229	$	—
Equity securities:
Corporate stocks, common	99,681		99,681		—
Corporate stocks, preferred	9,046		3,256		5,790
Mutual funds and other	72,494		72,404		90
Available-for-sale debt securities:
U.S. government	44,408		14,914		29,494		$	270
International government	16,925		—		16,925		1,782
Municipals	47,860		—		47,860		1,896
Corporate and other	156,766		—		156,766		14,351
	$	455,409	$	198,484	$	256,925	$	18,299

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unrealized Gains
	(In thousands)
December 31, 2020
Cash and cash equivalents	$	6,107	$	6,107	$	—
Equity securities:
Corporate stocks, common	85,271		85,271		—
Corporate stocks, preferred	9,910		3,608		6,302
Mutual funds and other	58,817		58,762		55
Available-for-sale debt securities:
U.S. government	55,839		29,579		26,260		$	950
International government	16,032		—		16,032		2,537
Municipals	50,139		—		50,139		2,779
Corporate and other	158,000		3		157,997		21,121
	$	440,115	$	183,330	$	256,785	$	27,387

Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value

The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below:

	Carrying Amount		Fair Value
September 30, 2021	(In thousands)
PNMR	$	3,500,233	$	3,724,723
PNM	$	1,732,442	$	1,834,677
TNMP	$	918,074	$	1,040,046
December 31, 2020
PNMR	$	3,295,150	$	3,355,761
PNM	$	1,696,620	$	1,602,547
TNMP	$	853,673	$	1,006,722