2.2.0.7falseGoodwill and Other Intangible Assets11601 - Disclosure - Goodwill and Other Intangible Assetstruefalsefalsefalse1USDfalsefalseUnit12Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit13Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit1Standardhttp://www.xbrl.org/2003/instancesharesxbrli0$20pnm_GoodwillAndOtherIntangibleAssetsAbstractpnmfalsenadurationGoodwill and Other Intangible Assets [Abstract]falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringGoodwill and Other Intangible Assets [Abstract]false31pnm_GoodwillAndOtherIntangibleAssetsTextBlockpnmfalsenadurationDescribes an entity's accounting policy for goodwill and intangible assets. This accounting policy also may address how an...falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabelfalse1falsefalsefalsefalse00<div> <font style="font-family: Times New Roman;" class="_mt" size="2">
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<p align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>Goodwill and Other Intangible Assets </b></font></p></td></tr></table>
<p style="margin-top: 6px; text-indent: 7%; margin-bottom: 0px;" align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2">The excess purchase price over the fair value of the assets acquired and the liabilities assumed by PNMR for its June 6, 2005 acquisition of TNP was recorded as goodwill and was pushed down to the businesses acquired. In 2007, the TNMP assets that were included in its New Mexico operations, including goodwill, were transferred to PNM. Additionally, other intangible assets, the trade name "First Choice" and the First Choice customer list, were acquired in the TNP acquisition. The trade name is considered to have an indefinite useful life; therefore, no amortization is recorded. The useful life of the customer list was estimated to be approximately eight years. </font></p>
<p style="margin-top: 12px; text-indent: 7%; margin-bottom: 0px;" align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2">The Company evaluates its goodwill and non-amortizing intangible assets for impairment annually at the reporting unit level or more frequently if circumstances indicate that the goodwill or intangible assets may be impaired. Application of the impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, and determination of the fair value of each reporting unit. The fair value of each reporting unit is estimated using a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of long-term growth rates for the business, and determination of appropriate weighted average cost of capital for each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and the conclusion of impairment for each reporting unit. </font></p>
<p style="margin-top: 12px; text-indent: 7%; margin-bottom: 0px;" align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2">For non-amortizing intangibles other than goodwill, the Company compares the fair value of the intangible asset to its recorded value. For goodwill, the first step of the impairment test requires that the Company compare the fair value of each reporting unit with its carrying value, including goodwill. If as a result of this analysis, the Company concludes there is an indication of impairment in a reporting unit having goodwill, the Company is required to perform the second step of the impairment analysis, determining the amount of goodwill impairment to be recorded. The amount is calculated by comparing the implied fair value of the goodwill to its carrying amount. This exercise would require the Company to allocate the fair value determined in step one to the individual assets and liabilities of the reporting unit. Any remaining fair value would be the implied fair value of goodwill on the testing date. To the extent the recorded amount of goodwill of a reporting unit exceeds the implied fair value determined in step two, an impairment loss would be reflected in results of operations. </font></p>
<p style="margin-top: 12px; text-indent: 7%; margin-bottom: 0px;" align="justify"><font style="font-family: Times New Roman;" class="_mt" size="2">The annual evaluations performed as of April 1, 2010 and 2009 did not indicate impairments of any of PNMR's reporting units or other intangible assets. Since the annual evaluation, there have been no indications that the fair values of the reporting units with recorded goodwill have decreased below the carrying values. </font></p></div> </div>(16)
Goodwill and Other Intangible Assets
The excess purchase price over the fair value of the assets acquired and the liabilities assumed by PNMR for itsfalsefalsefalseus-types:textBlockItemTypetextblockDescribes an entity's accounting policy for goodwill and intangible assets. This accounting policy also may address how an entity assesses and measures impairment of goodwill and intangible assets.No authoritative reference available.false12falseUnKnownUnKnownUnKnownfalsetrue