XML 55 R38.htm IDEA: XBRL DOCUMENT

Lease Commitments (Tables)

9 Months Ended

Sep. 30, 2020

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


	September 30, 2020						December 31, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating leases:
Operating lease assets, net of amortization	$	103,251	$	7,876	$	111,638	$	120,585	$	9,954	$	131,212
Current portion of operating lease liabilities	24,282		2,341		26,826		25,927		2,753		29,068
Long-term portion of operating lease liabilities	76,252		5,311		81,933		97,992		7,039		105,512

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


	September 30, 2020						December 31, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Financing leases:
Non-utility property	$	10,491	$	11,047	$	21,841	$	4,857	$	4,910	$	10,028
Accumulated depreciation	(1,503)		(1,576)		(3,159)		(482)		(466)		(973)
Non-utility property, net	8,988		9,471		18,682		4,375		4,444		9,055

Other current liabilities	1,804		1,946		3,829		722		850		1,637
Other deferred credits	6,924		7,532		14,603		3,333		3,597		7,102

Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities as of September 30, 2020 is presented below:



	PNM		TNMP		PNMR Consolidated
Weighted average remaining lease term (years):
Operating leases	6.17		3.69		5.99
Financing leases	5.07		5.12		5.07

Weighted average discount rate:
Operating leases	3.93	%	4.03	%	3.93	%
Financing leases	2.85	%	3.05	%	2.95	%

Lease, Cost

Information for the components of lease expense is as follows:


	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost:	$	6,798	$	685	$	7,545	$	20,538	$	2,205	$	22,938
Amounts capitalized	(248)		(577)		(825)		(786)		(1,812)		(2,599)
Total operating lease expense	$	6,550	$	108	$	6,720	$	19,752	$	393	$	20,339
Financing lease cost:
Amortization of right-of-use assets	435		439		893		1,022		1,110		2,187
Interest on lease liabilities	58		74		134		156		198		358
Amounts capitalized	(281)		(452)		(733)		(682)		(1,105)		(1,787)
Total financing lease expense	212		61		294		496		203		758

Variable lease expense	63		—		63		158		—		158
Short-term lease expense	16		4		22		176		5		183
Total lease expense for the period	$	6,841	$	173	$	7,099	$	20,582	$	601	$	21,438


	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	PNM		TNMP		PNMR Consolidated		PNM		TNMP		PNMR Consolidated
	(In thousands)
Operating lease cost:	$	6,873	$	726	$	7,725	$	21,260	$	2,439	$	24,051
Amounts capitalized	(319)		(630)		(949)		(1,015)		(1,949)		(2,964)
Total operating lease expense	$	6,554	$	96	$	6,776	$	20,245	$	490	$	21,087
Financing lease cost:
Amortization of right-of-use assets	143		125		274		286		264		556
Interest on lease liabilities	26		27		54		56		61		117
Amounts capitalized	(81)		(114)		(195)		(158)		(233)		(391)
Total financing lease expense	88		38		133		184		92		282

Variable lease expense	32		—		32		64		—		64
Short-term lease expense	63		5		68		212		10		263
Total lease expense for the period	$	6,737	$	139	$	7,009	$	20,705	$	592	$	21,696

Schedule of Leases, Supplemental Cash Flows

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


	Nine Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2019
	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	$	25,804	$	483	$	26,708	$	26,092	$	757	$	27,225
Operating cash flows from financing leases	58		32		94		28		17		45
Finance cash flows from financing leases	378		215		646		113		72		189

Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—	$	—	$	143,816	$	12,942	$	157,816
Financing leases	5,635		6,309		11,985		3,645		3,678		7,402

Lessee, Operating Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of September 30, 2020
	PNM				TNMP				PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2020	$	511	$	438	$	565	$	682	$	1,097	$	1,253
2021	2,011		26,576		2,210		2,426		4,304		29,294
2022	1,959		26,266		2,115		1,975		4,155		28,452
2023	1,899		17,735		1,926		1,481		3,869		19,395
2024	1,277		7,908		1,583		877		2,863		8,833
Later years	1,739		34,467		1,977		765		3,717		35,489
Total minimum lease payments	9,396		113,390		10,376		8,206		20,005		122,716
Less: Imputed interest	668		12,856		898		554		1,573		13,957
Lease liabilities as of September 30, 2020	$	8,728	$	100,534	$	9,478	$	7,652	$	18,432	$	108,759

Finance Lease, Liability, Maturity

Future expected lease payments are shown below:


	As of September 30, 2020
	PNM				TNMP				PNMR Consolidated
	Financing		Operating		Financing		Operating		Financing		Operating
	(In thousands)
Remainder of 2020	$	511	$	438	$	565	$	682	$	1,097	$	1,253
2021	2,011		26,576		2,210		2,426		4,304		29,294
2022	1,959		26,266		2,115		1,975		4,155		28,452
2023	1,899		17,735		1,926		1,481		3,869		19,395
2024	1,277		7,908		1,583		877		2,863		8,833
Later years	1,739		34,467		1,977		765		3,717		35,489
Total minimum lease payments	9,396		113,390		10,376		8,206		20,005		122,716
Less: Imputed interest	668		12,856		898		554		1,573		13,957
Lease liabilities as of September 30, 2020	$	8,728	$	100,534	$	9,478	$	7,652	$	18,432	$	108,759