Fair Value of Derivative and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

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
	March 31, 2020		December 31, 2019
	(In thousands)
Other current assets	$	1,095	$	1,089
Other deferred charges	1,275		1,507
	2,370		2,596
Other current liabilities	(1,095)		(1,089)
Other deferred credits	(1,275)		(1,507)
	(2,370)		(2,596)
Net	$	—	$	—

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
	March 31,
	2020		2019
	(In thousands)
Equity securities:
Net gains (losses) from equity securities sold	$	(1,315)	$	1,387
Net gains (losses) from equity securities still held	(18,931)		9,602
Total net gains (losses) on equity securities	(20,246)		10,989
Available-for-sale debt securities:
Net gains (losses) on debt securities	(12,603)		3,025
Net gains (losses) on investment securities	$	(32,849)	$	14,014

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 $(12.7) million and $3.4 million for the three months ended March 31, 2020 and 2019.

	Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Proceeds from sales	$	149,355	$	74,460
Gross realized gains	$	5,825	$	4,189
Gross realized (losses)	$	(7,035)	$	(3,170)

Investments Classified by Contractual Maturity Date

At March 31, 2020, the available-for-sale debt securities held by PNM, had the following final maturities:

	Fair Value
	(In thousands)
Within 1 year	$	22,001
After 1 year through 5 years	71,816
After 5 years through 10 years	75,923
After 10 years through 15 years	12,345
After 15 years through 20 years	12,220
After 20 years	39,047
	$	233,352

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)
March 31, 2020
Cash and cash equivalents	$	17,252	$	17,252	$	—
Equity securities:
Corporate stocks, common	49,838		49,838		—
Corporate stocks, preferred	7,974		2,365		5,609
Mutual funds and other	44,852		44,852		—
Available-for-sale debt securities:
U.S. government	46,450		30,630		15,820		$	2,636
International government	12,802		—		12,802		236
Municipals	45,115		—		45,115		1,518
Corporate and other	128,985		403		128,582		4,420
	$	353,268	$	145,340	$	207,928	$	8,810
December 31, 2019
Cash and cash equivalents	$	15,606	$	15,606	$	—
Equity securities:
Corporate stocks, common	64,527		64,527		—
Corporate stocks, preferred	9,033		2,212		6,821
Mutual funds and other	49,848		49,786		62
Available-for-sale debt securities:
U.S. government	48,439		31,389		17,050		$	535
International government	15,292		—		15,292		1,193
Municipals	46,642		—		46,642		1,768
Corporate and other	139,445		187		139,258		10,801
	$	388,832	$	163,707	$	225,125	$	14,297

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
March 31, 2020	(In thousands)
PNMR	$	3,008,275	$	3,060,098
PNM	$	1,748,401	$	1,763,727
TNMP	$	670,626	$	727,222
December 31, 2019
PNMR	$	3,007,717	$	3,142,704
PNM	$	1,748,020	$	1,795,149
TNMP	$	670,691	$	753,317