XML 79 R56.htm IDEA: XBRL DOCUMENT

Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Defined Benefit Plans Disclosures

The following table presents information about the PBO, fair value of plan assets, and funded status of the plans:


	PNM				TNMP
	Year Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
	(In thousands)
PBO at beginning of year	$	433,645	$	584,061	$	43,961	$	59,609
Service cost	—		—		—		—
Interest cost	23,653		16,857		2,402		1,720

Actuarial (gain) loss	4,290		(118,552)		1,261		(11,711)
Benefits paid	(42,931)		(48,721)		(5,042)		(3,403)
Settlements	—		—		—		(2,254)
PBO at end of year	418,657		433,645		42,582		43,961
Fair value of plan assets at beginning of year	410,463		576,707		43,447		62,942
Actual return on plan assets	39,679		(117,523)		2,948		(13,838)
Employer contributions	—		—		—		—
Benefits paid	(42,931)		(48,721)		(5,042)		(3,403)
Settlements	—		—		—		(2,254)
Fair value of plan assets at end of year	407,211		410,463		41,353		43,447
Funded status – asset (liability) for pension benefits	$	(11,446)	$	(23,182)	$	(1,229)	$	(514)

The following table presents information about the APBO, the fair value of plan assets, and the funded status of the plans:


	PNM				TNMP
	Year Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
	(In thousands)
APBO at beginning of year	$	49,950	$	66,984	$	7,705	$	10,570
Service cost	—		10		21		38
Interest cost	2,703		1,914		425		307
Participant contributions	1,592		1,431		359		219
Actuarial (gain)	(1,608)		(14,829)		(282)		(2,788)
Benefits paid	(6,420)		(6,396)		(897)		(641)
Curtailment loss	—		836		—		—

APBO at end of year	46,217		49,950		7,331		7,705
Fair value of plan assets at beginning of year	70,301		95,805		8,718		12,593
Actual return on plan assets	7,762		(23,156)		173		(3,453)
Employer contributions	157		2,617		—		—
Participant contributions	1,592		1,431		359		219
Benefits paid	(6,420)		(6,396)		(897)		(641)
Fair value of plan assets at end of year	73,392		70,301		8,353		8,718
Funded status – asset	$	27,175	$	20,351	$	1,022	$	1,013

Schedule of Assumptions Used

Actuarial (gain) loss results from changes in:


	PNM				TNMP
	Year Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
	(in thousands)
Discount rates	$	8,806	$	(111,478)	$	969	$	(11,697)
Demographic experience (gain) loss	(1,777)		(7,074)		538		(742)
Mortality rate	(2,739)		—		(239)		—
Other assumptions and experience	—		—		(7)		728
	$	4,290	$	(118,552)	$	1,261	$	(11,711)

The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost (income). Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost (income) would be affected.


	Year Ended December 31,
PNM	2023		2022		2021
Discount rate for determining December 31 PBO	5.46	%	5.74	%	3.00	%
Discount rate for determining net periodic benefit cost	5.74		3.00		2.66
Expected return on plan assets	6.30		5.50		5.50
Rate of compensation increase	N/A		N/A		N/A
TNMP
Discount rate for determining December 31 PBO	5.47	%	5.75	%	3.01	%
Discount rate for determining net periodic benefit cost	5.75		3.01		2.69
Expected return on plan assets	5.50		4.40		5.50
Rate of compensation increase	N/A		N/A		N/A

Actuarial (gain) loss results from changes in:


	PNM				TNMP
	Year Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
	(in thousands)
Discount rates	$	868	$	(11,876)	$	174	$	(2,469)
Claims, contributions, and demographic experience	(2,171)		(2,985)		(423)		(319)
Assumed participation rate	—		—		—		—
Mortality rate	(305)		—		(33)		—

Dental trend assumption	—		32		—		—
	$	(1,608)	$	(14,829)	$	(282)	$	(2,788)

The following significant weighted-average assumptions were used to determine the APBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the APBO and net periodic benefit cost would be affected.


	Year Ended December 31,
PNM	2023		2022		2021
Discount rate for determining December 31 APBO	5.48	%	5.75	%	2.99	%
Discount rate for determining net periodic benefit cost	5.75		2.99		2.65
Expected return on plan assets	5.90		4.75		4.75
Rate of compensation increase	N/A		N/A		N/A
TNMP
Discount rate for determining December 31 APBO	5.48	%	5.75	%	2.99	%
Discount rate for determining net periodic benefit cost	5.75		2.99		2.65
Expected return on plan assets	4.70		3.80		3.80
Rate of compensation increase	N/A		N/A		N/A

The following significant weighted-average assumptions were used to determine the PBO and net periodic benefit cost. Should actual experience differ from actuarial assumptions, the PBO and net periodic benefit cost would be affected.


	Year Ended December 31,
PNM	2023		2022		2021
Discount rate for determining December 31 PBO	5.45	%	5.73	%	3.02	%
Discount rate for determining net periodic benefit cost	5.73		3.02		2.68
Long-term rate of return on plan assets	N/A		N/A		N/A
Rate of compensation increase	N/A		N/A		N/A
TNMP
Discount rate for determining December 31 PBO	5.47	%	5.75	%	3.01	%
Discount rate for determining net periodic benefit cost	5.75		3.01		2.69
Long-term rate of return on plan assets	N/A		N/A		N/A
Rate of compensation increase	N/A		N/A		N/A

Reclassification out of Accumulated Other Comprehensive Income

Information regarding AOCI is as follows:


	Accumulated Other Comprehensive Income (Loss)
	PNM						PNMR
	Unrealized Gains on Available-for-Sale Securities		Pension Liability Adjustment		Total		Fair Value Adjustment for Cash Flow Hedges		Total
	(In thousands)



Balance at December 31, 2020	$	20,403	$	(98,914)	$	(78,511)	$	(672)	$	(79,183)
Amounts reclassified from AOCI (pre-tax)	(9,765)		8,348		(1,417)		(903)		(2,320)
Income tax impact of amounts reclassified	2,480		(2,120)		360		229		589
Other OCI changes (pre-tax)	(1,881)		12,111		10,230		1,804		12,034
Income tax impact of other OCI changes	478		(3,076)		(2,598)		(458)		(3,056)
Net after-tax change	(8,688)		15,263		6,575		672		7,247

Balance at December 31, 2021	11,715		(83,651)		(71,936)		—		(71,936)





Amounts reclassified from AOCI (pre-tax)	(3,827)		7,104		3,277		(1,176)		2,101
Income tax impact of amounts reclassified	972		(1,804)		(832)		299		(533)
Other OCI changes (pre-tax)	(1,928)		(4,565)		(6,493)		12,285		5,792
Income tax impact of other OCI changes	490		1,159		1,649		(3,121)		(1,472)
Net after-tax change	(4,293)		1,894		(2,399)		8,287		5,888

Balance at December 31, 2022	7,422		(81,757)		(74,335)		8,287		(66,048)







Amounts reclassified from AOCI (pre-tax)	(7,199)		4,776		(2,423)		9,287		6,864
Income tax impact of amounts reclassified	1,828		(1,212)		616		(2,359)		(1,743)
Other OCI changes (pre-tax)	11,529		1,389		12,918		(15,483)		(2,565)
Income tax impact of other OCI changes	(2,928)		(353)		(3,281)		3,933		652
Net after-tax change	3,230		4,600		7,830		(4,622)		3,208

Balance at December 31, 2023	$	10,652	$	(77,157)	$	(66,505)	$	3,665	$	(62,840)

The following table presents pre-tax information about net actuarial (gain) loss in AOCI as of December 31, 2023.


	PNM		TNMP


	(In thousands)
Amounts in AOCI not yet recognized in net periodic benefit cost (income) at beginning of year	$	110,345	$	—
Experience (gain) loss	(6,193)		1,005
Regulatory asset (liability) adjustment	4,629		(1,005)

Amortization recognized in net periodic benefit (income)	(4,713)		—
Amounts in AOCI not yet recognized in net periodic benefit cost at end of year	$	104,068	$	—

The following table presents pre-tax information about net actuarial loss in AOCI as of December 31, 2023.


	December 31, 2023
	PNM		TNMP
	(In thousands)
Amount in AOCI not yet recognized in net periodic benefit cost at beginning of year	$	995	$	—
Experience (gain)	411		13
Regulatory asset adjustment	(238)		(13)
Amortization recognized in net periodic benefit (income)	(64)		—
Amount in AOCI not yet recognized in net periodic benefit cost at end of year	$	1,104	$	—

Schedule of Net Benefit Costs

The following table presents the components of net periodic benefit cost (income):


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
PNM
Service cost	$	—	$	—	$	—
Interest cost	23,653		16,857		16,143
Expected return on plan assets	(29,196)		(28,563)		(28,531)
Amortization of net loss	10,583		15,794		18,166
Amortization of prior service cost	—		—		—
Net periodic benefit cost	$	5,040	$	4,088	$	5,778
TNMP
Service cost	$	—	$	—	$	—
Interest cost	2,402		1,720		1,741
Expected return on plan assets	(2,697)		(2,472)		(3,181)
Amortization of net loss	439		932		1,247
Amortization of prior service cost	—		—		—
Settlement loss	—		1,033		746
Net periodic benefit cost	$	144	$	1,213	$	553

The following table presents the components of net periodic benefit cost (income):


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
PNM
Service cost	$	—	$	10	$	23
Interest cost	2,703		1,914		1,907
Expected return on plan assets	(4,969)		(4,351)		(4,167)
Amortization of net loss	—		—		—

Curtailment loss	$	—	$	836	$	—
Net periodic benefit (income)	$	(2,266)	$	(1,591)	$	(2,237)
TNMP
Service cost	$	21	$	38	$	45
Interest cost	425		307		308
Expected return on plan assets	(481)		(418)		(407)
Amortization of net (gain)	(760)		(520)		(322)

Net periodic benefit (income)	$	(795)	$	(593)	$	(376)

The following table presents the components of net periodic benefit cost:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
PNM
Service cost	$	—	$	—	$	—
Interest cost	540		362		363
Amortization of net loss	152		327		395
Amortization of prior service cost	—		—		—
Net periodic benefit cost	$	692	$	689	$	758
TNMP
Service cost	$	—	$	—	$	—
Interest cost	18		11		17
Amortization of net loss	—		—		33
Amortization of prior service cost	—		—		—
Net periodic benefit cost	$	18	$	11	$	50

Schedule of Expected Benefit Payments

The following pension benefit payments are expected to be paid:


	PNM		TNMP
	(In thousands)
2024	$	41,797	$	4,219
2025	40,901		4,183
2026	39,447		4,169
2027	38,563		3,982
2028	37,245		3,897
2029 - 2033	167,079		16,789

The following OPEB payments, which reflect expected future service and are net of participant contributions, are expected to be paid:


	PNM		TNMP
	(In thousands)
2024	$	5,305	$	611
2025	4,948		612
2026	4,710		620
2027	4,438		609
2028	4,213		603
2029 - 2033	17,817		2,745

The following executive retirement plan payments, which reflect expected future service, are expected:


	PNM		TNMP
	(In thousands)
2024	$	1,243	$	66
2025	1,193		58
2026	1,136		51
2027	1,073		44
2028	1,006		37
2029 - 2033	3,987		104

Schedule of Health Care Cost Trend Rates

The following table shows the assumed health care cost trend rates for the PNM OPEB plan:


	PNM
	December 31,
	2023		2022
Health care cost trend rate assumed for next year	6.00	%	6.25	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.75		4.75
Year that the rate reaches the ultimate trend rate	2029		2029

Schedule of Net Funded Status

For the executive retirement programs, the following table presents information about the PBO and funded status of the plans:


	PNM				TNMP
	Year Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
	(In thousands)
PBO at beginning of year	$	10,042	$	12,612	$	344	$	406
Service cost	—		—		—		—
Interest cost	540		362		18		11
Actuarial (gain) loss	411		(1,628)		13		(2)
Benefits paid	(1,279)		(1,304)		(59)		(71)
PBO at end of year – funded status	9,714		10,042		316		344
Less current liability	1,210		1,217		64		66
Non-current liability	$	8,504	$	8,825	$	252	$	278

Summary of Expenses for Other Retirement Plans

A summary of expenses for these other retirement plans is as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
PNMR
401(k) plan	$	16,118	$	15,844	$	16,648
Non-qualified plan	$	1,197	$	(1,027)	$	3,594
PNM
401(k) plan	$	10,839	$	11,067	$	11,826
Non-qualified plan	$	825	$	(721)	$	2,622
TNMP
401(k) plan	$	5,279	$	4,776	$	4,823
Non-qualified plan	$	372	$	(305)	$	972