Fair Value of Derivative and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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
	September 30, 2020		December 31, 2019
	(In thousands)
Other current assets	$	1,097	$	1,089
Other deferred charges	729		1,507
	1,826		2,596
Other current liabilities	(1,097)		(1,089)
Other deferred credits	(729)		(1,507)
	(1,826)		(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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(In thousands)
Equity securities:
Net gains from equity securities sold	$	90	$	514	$	4,131	$	4,675
Net gains from equity securities still held	8,545		1,011		2,991		10,916
Total net gains on equity securities	8,635		1,525		7,122		15,591
Available-for-sale debt securities:
Net gains (losses) on debt securities	5,766		161		(3,950)		4,708
Net gains on investment securities	$	14,401	$	1,686	$	3,172	$	20,299

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 $4.2 million and $(4.5) million for the three and nine months ended September 30, 2020 and $0.2 million and $2.8 million for the three and nine months ended September 30, 2019.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(In thousands)
Proceeds from sales	$	134,567	$	141,371	$	489,218	$	375,382
Gross realized gains	$	12,998	$	6,510	$	30,085	$	21,605
Gross realized (losses)	$	(11,374)	$	(6,026)	$	(25,411)	$	(14,998)

Investments Classified by Contractual Maturity Date

At September 30, 2020, the available-for-sale debt securities held by PNM, had the following final maturities:

	Fair Value
	(In thousands)
Within 1 year	$	29,941
After 1 year through 5 years	85,926
After 5 years through 10 years	85,507
After 10 years through 15 years	15,533
After 15 years through 20 years	8,861
After 20 years	41,289
	$	267,057

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, 2020
Cash and cash equivalents	$	8,493	$	8,493	$	—
Equity securities:
Corporate stocks, common	71,490		71,490		—
Corporate stocks, preferred	9,940		3,718		6,222
Mutual funds and other	51,571		51,571		—
Available-for-sale debt securities:
U.S. government	55,439		30,483		24,956		$	1,159
International government	14,330		—		14,330		1,586
Municipals	49,064		—		49,064		2,468
Corporate and other	148,224		10		148,214		16,679
	$	408,551	$	165,765	$	242,786	$	21,892
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
September 30, 2020	(In thousands)
PNMR	$	3,289,349	$	3,333,741
PNM	$	1,845,987	$	1,740,129
TNMP	$	853,706	$	1,000,248
December 31, 2019
PNMR	$	3,007,717	$	3,142,704
PNM	$	1,748,020	$	1,795,149
TNMP	$	670,691	$	753,317