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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided.

PNM
PNM includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM also includes the generation and sale of electricity into the wholesale market, as well as providing transmission services to third parties. The sale of electricity includes the asset optimization of PNM’s jurisdictional capacity, as well as the capacity excluded from retail rates. FERC has jurisdiction over wholesale power and transmission rates.

TNMP

TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities.
Corporate and Other

The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company. The activities of PNMR Development, NM Capital, and the equity method investment in NMRD are also included in Corporate and Other. Eliminations of intercompany transactions are reflected in the Corporate and Other segment.

The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.

PNMR SEGMENT INFORMATION
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended June 30, 2020
Electric operating revenues$260,788  $96,861  $—  $357,649  
Cost of energy67,884  25,979  —  93,863  
Utility margin192,904  70,882  —  263,786  
Other operating expenses101,557  25,339  (4,282) 122,614  
Depreciation and amortization41,763  22,368  5,891  70,022  
Operating income (loss)49,584  23,175  (1,609) 71,150  
Interest income3,147  —  (76) 3,071  
Other income (deductions)20,954  1,963  (214) 22,703  
Interest charges(19,178) (7,361) (4,549) (31,088) 
Segment earnings (loss) before income taxes
54,507  17,777  (6,448) 65,836  
Income taxes (benefit)4,895  1,603  (2,223) 4,275  
Segment earnings (loss)
49,612  16,174  (4,225) 61,561  
Valencia non-controlling interest
(3,940) —  —  (3,940) 
Subsidiary preferred stock dividends
(132) —  —  (132) 
Segment earnings (loss) attributable to PNMR
$45,540  $16,174  $(4,225) $57,489  
Six Months Ended June 30, 2020
Electric operating revenues$508,921  $182,350  $—  $691,271  
Cost of energy142,408  50,165  —  192,573  
Utility margin366,513  132,185  —  498,698  
Other operating expenses200,113  50,461  (9,759) 240,815  
Depreciation and amortization83,212  44,204  11,579  138,995  
Operating income (loss)83,188  37,520  (1,820) 118,888  
Interest income6,643  —  (149) 6,494  
Other income (deductions)(13,072) 2,524  (755) (11,303) 
Interest charges(36,807) (14,533) (10,182) (61,522) 
Segment earnings (loss) before income taxes
39,952  25,511  (12,906) 52,557  
Income taxes (benefit)2,536  2,245  (2,386) 2,395  
Segment earnings (loss)
37,416  23,266  (10,520) 50,162  
Valencia non-controlling interest
(7,669) —  —  (7,669) 
Subsidiary preferred stock dividends
(264) —  —  (264) 
Segment earnings (loss) attributable to PNMR
$29,483  $23,266  $(10,520) $42,229  
At June 30, 2020:
Total Assets
$5,377,422  $1,985,721  $211,324  $7,574,467  
Goodwill
$51,632  $226,665  $—  $278,297  
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended June 30, 2019
Electric operating revenues$238,219  $92,009  $—  $330,228  
Cost of energy58,866  24,916  —  83,782  
Utility margin179,353  67,093  —  246,446  
Other operating expenses255,519  24,013  (5,536) 273,996  
Depreciation and amortization39,811  20,502  5,752  66,065  
Operating income (loss)(115,977) 22,578  (216) (93,615) 
Interest income3,530  —  (70) 3,460  
Other income (deductions)4,179  731  (78) 4,832  
Interest charges(18,526) (6,560) (4,705) (29,791) 
Segment earnings (loss) before income taxes
(126,794) 16,749  (5,069) (115,114) 
Income taxes (benefit)(43,481) 1,482  (832) (42,831) 
Segment earnings (loss)
(83,313) 15,267  (4,237) (72,283) 
Valencia non-controlling interest
(3,499) —  —  (3,499) 
Subsidiary preferred stock dividends
(132) —  —  (132) 
Segment earnings (loss) attributable to PNMR
$(86,944) $15,267  $(4,237) $(75,914) 
Three Months Ended June 30, 2019
Electric operating revenues$507,536  $172,336  $—  $679,872  
Cost of energy158,204  47,204  —  205,408  
Utility margin349,332  125,132  —  474,464  
Other operating expenses361,981  49,253  (11,299) 399,935  
Depreciation and amortization79,036  40,716  11,669  131,421  
Operating income (loss)(91,685) 35,163  (370) (56,892) 
Interest income7,187  —  (139) 7,048  
Other income (deductions)18,536  1,317  (814) 19,039  
Interest charges(36,886) (15,361) (9,178) (61,425) 
Segment earnings (loss) before income taxes
(102,848) 21,119  (10,501) (92,230) 
Income taxes (benefit)(41,508) 1,754  (1,854) (41,608) 
Segment earnings (loss)
(61,340) 19,365  (8,647) (50,622) 
Valencia non-controlling interest
(6,328) —  —  (6,328) 
Subsidiary preferred stock dividends
(264) —  —  (264) 
Segment earnings (loss) attributable to PNMR
$(67,932) $19,365  $(8,647) $(57,214) 
At June 30, 2019:
Total Assets
$5,105,090  $1,768,831  $174,746  $7,048,667  
Goodwill
$51,632  $226,665  $—  $278,297  

The Company defines utility margin as electric operating revenues less cost of energy. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. The Company believes that utility margin provides a more meaningful basis for evaluating operations than electric operating revenues since substantially all such costs are offset in revenues as fuel and purchase power costs are passed through to customers under PNM’s FPPAC and third-party transmission costs are passed on to customers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented under GAAP and is considered a non-GAAP measure.