PNM Resources ("the Company") uses cash earnings to evaluate the operations of the Company and, in some cases, to establish goals for management and employees. While the Company believes this financial measure is appropriate and useful for investors, it is not a measure presented in accordance with generally accepted accounting principles in the U.S. (GAAP). The Company does not intend for this measure to represent net earnings as defined by GAAP. Furthermore, the Company's calculation of this measure as presented may or may not be comparable to similarly titled measures used by other companies.
The Company views cash earnings as a performance measure and, therefore, the most directly comparable GAAP measure is net cash flows from operating activities, as reported in the consolidated statement of cash flows of the Company's financial filings.
Reconciliations of the Company's annual cash earnings to GAAP consolidated net cash flows from operating activities periodically are provided in the appendix of quarterly earnings presentations. View quarterly earnings presentations.
For a discussion of forecasted cash earnings guidance, please see Ongoing Earnings Guidance and Other Financial Guidance Measures.