XML 74 R53.htm IDEA: XBRL DOCUMENT

Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2021

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


	December 31, 2021						December 31, 2020
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating leases:
Operating lease assets, net of amortization	$	73,903	$	5,264	$	79,511	$	97,461	$	7,206	$	105,133
Current portion of operating lease liabilities	25,278		1,882		27,218		25,130		2,193		27,460
Long-term portion of operating lease liabilities	52,552		3,155		55,993		75,941		4,779		81,065

As discussed above, the Company classifies its fleet vehicle and equipment leases and its office equipment leases commencing on or after January 1, 2019 as financing leases. Information related to the Company’s financing leases recorded on the Consolidated Balance Sheets is presented below:


	December 31, 2021						December 31, 2020
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)						(In thousands)
Financing leases:
Non-utility property	$	15,171	$	16,181	$	31,695	$	11,453	$	13,299	$	25,055
Accumulated depreciation	(4,550)		(4,923)		(9,660)		(2,044)		(2,241)		(4,383)
Non-utility property, net	$	10,621	$	11,258	$	22,035	$	9,409	$	11,058	$	20,672

Other current liabilities	$	2,731	$	2,994	$	5,813	$	1,993	$	2,397	$	4,470
Other deferred credits	7,732		8,273		16,075		7,176		8,669		15,972

Lease, Cost

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:


	December 31, 2021						December 31, 2020
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
Weighted average remaining lease term (years):
Operating leases	5.60		2.90		5.44		6.23		3.46		6.04
Financing leases	4.30		4.14		4.20		4.78		4.84		4.79

Weighted average discount rate:
Operating leases	3.99	%	3.98	%	3.99	%	3.93	%	4.06	%	3.94	%
Financing leases	2.60	%	2.71	%	2.65	%	2.76	%	2.84	%	2.80	%

Information for the components of lease expense is as follows:


	Year Ended December 31, 2021
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost	$	26,690	$	2,445	$	29,270
Amounts capitalized	(836)		(2,115)		(2,951)
Total operating lease expense	25,854		330		26,319
Financing lease cost:
Amortization of right-of-use assets	2,507		2,682		5,277
Interest on lease liabilities	263		307		574
Amounts capitalized	(1,726)		(2,678)		(4,404)
Total financing lease expense	1,044		311		1,447
Variable lease expense	380		—		380
Short-term lease expense (1)	2,972		6		3,035
Total lease expense for the period	$	30,250	$	647	$	31,181

(1) Includes expense of $2.5 million for the twelve months ended December 31, 2021 for rental of temporary cooling towers associated with the SJGS Unit 1 outage. These amounts are partially offset with insurance reimbursements of $1.8 million for the twelve months ended December 31, 2021. For additional information on the SJGS Unit 1 outage see Note 17.


	Year Ended December 31, 2020
	PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost	$	27,302	$	2,870	$	30,418
Amounts capitalized	(1,020)		(2,375)		(3,395)
Total operating lease expense	26,282		495		27,023
Financing lease cost:
Amortization of right-of-use assets	1,563		1,775		3,412
Interest on lease liabilities	221		285		511
Amounts capitalized	(1,056)		(1,754)		(2,810)
Total financing lease expense	728		306		1,113
Variable lease expense	221		—		221
Short-term lease expense	288		5		295
Total lease expense for the period	$	27,519	$	806	$	28,652

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


	Year Ended December 31, 2021						Year Ended December 31, 2020
	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	$	25,655	$	323	$	26,129	$	26,007	$	596	$	27,121
Operating cash flows from financing leases	90		34		128		82		48		136
Financing cash flows from financing leases	870		339		1,296		557		307		936

Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	317	$	317	$	—	$	—	$	—
Financing leases	3,792		3,126		6,958		6,588		8,985		15,614

Finance Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of December 31, 2021
	PNM				TNMP				PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
2022	$	2,962	$	26,266	$	3,253	$	1,888	$	6,307	$	28,365
2023	2,841		17,735		3,017		1,480		5,912		19,395
2024	2,159		7,908		2,546		1,030		4,719		8,987
2025	1,345		6,946		1,638		525		2,985		7,509
2026	1,022		6,880		834		449		1,857		7,367
Later years	724		20,640		613		—		1,336		20,823
Total minimum lease payments	11,053		86,375		11,901		5,372		23,116		92,446
Less: Imputed interest	590		8,545		634		335		1,228		9,235
Lease liabilities as of December 31, 2021	$	10,463	$	77,830	$	11,267	$	5,037	$	21,888	$	83,211

Lessee, Operating Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of December 31, 2021
	PNM				TNMP				PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
2022	$	2,962	$	26,266	$	3,253	$	1,888	$	6,307	$	28,365
2023	2,841		17,735		3,017		1,480		5,912		19,395
2024	2,159		7,908		2,546		1,030		4,719		8,987
2025	1,345		6,946		1,638		525		2,985		7,509
2026	1,022		6,880		834		449		1,857		7,367
Later years	724		20,640		613		—		1,336		20,823
Total minimum lease payments	11,053		86,375		11,901		5,372		23,116		92,446
Less: Imputed interest	590		8,545		634		335		1,228		9,235
Lease liabilities as of December 31, 2021	$	10,463	$	77,830	$	11,267	$	5,037	$	21,888	$	83,211