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DEBT | 12 Months Ended
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Sep. 30, 2013
Debt Disclosure [Abstract] |
DEBT | DEBT NJNG and NJR finance working capital requirements and capital expenditures through the issuance of various long-term debt and other financing arrangements, including unsecured credit and private placement debt shelf facilities. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. The following table presents the long-term debt of the Company as of September 30:
(Thousands) | 2013 | 2012
NJNG |  |  |
First mortgage bonds: | Maturity date: |  |
5.00% | Series HH | December 1, 2038 | $ | 12,000 |  | $ | 12,000 |
4.50% | Series II | August 1, 2023 | 10,300 |  | 10,300 |
4.60% | Series JJ | August 1, 2024 | 10,500 |  | 10,500 |
4.90% | Series KK | October 1, 2040 | 15,000 |  | 15,000 |
5.60% | Series LL | May 15, 2018 | 125,000 |  | 125,000 |
Variable | Series MM | September 1, 2027 | 9,545 |  | 9,545 |
Variable | Series NN | August 1, 2035 | 41,000 |  | 41,000 |
Variable | Series OO | August 1, 2041 | 46,500 |  | 46,500 |
3.15% | Series PP | April 15, 2028 | 50,000 |  | — |
4.77% Unsecured senior notes | March 15, 2014 | 60,000 |  | 60,000 |
Capital lease obligation-Buildings | June 1, 2021 | 20,381 |  | 21,907 |
Capital lease obligation-Meters | Various dates | 31,261 |  | 30,887 |
Capital lease obligation-Equipment | December 1, 2013 | 42 |  | 290 |
Less: Current maturities of long-term debt | (68,643 | ) | (7,760 | )
Total NJNG long-term debt | 362,886 |  | 375,169 |
NJR |  |  |
6.05% Unsecured senior notes | September 24, 2017 | 50,000 |  | 50,000 |
1.94% Unsecured senior notes | September 17, 2015 | 25,000 |  | 25,000 |
2.51% Unsecured senior notes | September 17, 2018 | 25,000 |  | 25,000 |
3.25% Unsecured senior notes | September 17, 2022 | 50,000 |  | 50,000 |
Total NJR long-term debt | 150,000 |  | 150,000 |
Total long-term debt | $ | 512,886 |  | $ | 525,169 |
Annual long-term debt redemption requirements, excluding capital leases, as of September 30, are as follows:
(Millions) | NJNG | NJR
2014 | $ | 60.0 |  | $ | — |
2015 | $ | — |  | $ | 25.0 |
2016 | $ | — |  | $ | — |
2017 | $ | — |  | $ | 50.0 |
2018 | $ | 125.0 |  | $ | 25.0 |
Thereafter | $ | 194.8 |  | $ | 50.0 |
NJNG First Mortgage Bonds NJNG's mortgage secures its First Mortgage Bonds and represents a lien on substantially all of its property, including natural gas supply contracts. Certain indentures supplemental to the mortgage include restrictions as to cash dividends and other distributions on NJNG's common stock that apply as long as certain series of First Mortgage Bonds are outstanding. As of September 30, 2013, restricted net assets for unconsolidated subsidiaries and consolidated subsidiaries were $510.9 million and under the most restrictive provision, $339.8 million of NJNG's retained earnings was available for dividends. In August 2011, NJNG completed a refunding of its outstanding ARS whereby the EDA issued three series of VRDN with a total principal amount of $97 million with maturity dates ranging from September 2027 to August 2041. NJNG and the EDA entered into a Loan Agreement securing the payment of principal and interest on the VRDNs by NJNG with a pledge of $97 million principal amount of First Mortgage Bonds issued by NJNG. Costs associated with the issuance of the VRDNs, as well as remaining unamortized debt costs associated with the ARS, will be amortized over the life of the VRDNs in accordance with ASC 980, Regulated Operations, therefore, there was no impact to income upon extinguishment of the ARS. VRDNs are sold to investors on a daily basis with the interest rate set by the remarketing agent. In the case where the remarketing agent is unable to sell the VRDNs to an investor on a given day, NJNG would be required to repurchase the EDA Bonds. Therefore, in conjunction with the issuance of the EDA Bonds, NJNG entered into the JPMC facility, as described below in the NJNG Short-term Debt section, to provide liquidity support in the event of a failed remarketing of the EDA Bonds and to ensure payment of principal and interest. There would be no increase in NJNG's debt if this were to occur. The rates on these types of investments are generally correlated with the Securities Industry and Financial Markets Association Municipal Swap Index and will initially accrue interest at a daily rate, with a maximum rate of 12 percent per annum. As of September 30, 2013, the interest rate on these securities was .09 percent. On April 15, 2013, NJNG issued $50 million of 3.15 percent senior secured notes due April 15, 2028, in the private placement market pursuant to a note purchase agreement entered into on February 8, 2013. Interest is payable semi-annually. The proceeds were used to refinance short-term debt and will fund capital expenditure requirements. NJNG Sale-Leasebacks NJNG's has entered into a sale-leaseback for its headquarters building, which has a 25 and a half-year term that expires in June 2021, with two five-year renewal options. The present value of the agreement's minimum lease payments is reflected as both a capital lease asset and a capital lease obligation, which are included in utility plant and long-term debt, respectively, on the Consolidated Balance Sheets. NJNG received $7.1 million, $6.5 million and $5.9 million for fiscal 2013, 2012 and 2011, respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. During fiscal 2013, 2012 and 2011, NJNG exercised early purchase options with respect to meter leases by making final principal payments of $752,000, $1 million and $3.9 million, respectively. This sale-leaseback program is expected to continue on an annual basis. Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows:
(Millions) | Lease Payments
2014 |  | $ | 11.3 |
2015 |  | 10.7 |
2016 |  | 10.9 |
2017 |  | 9.8 |
2018 |  | 7.9 |
Thereafter |  | 11.3 |
Subtotal |  | 61.9 |
Less: interest component |  | (10.2 | )
Total |  | $ | 51.7 |
NJR Long-term Debt NJR has two unsecured, uncommitted private placement debt shelf note agreements. The first agreement was entered into with Prudential on June 30, 2011, in the amount of $75 million, and expires on June 30, 2014. As of September 30, 2013, NJR had $50 million at 3.25 percent outstanding under this agreement, which will mature on September 17, 2022. On September 26, 2013, NJR entered into a second unsecured, uncommitted $100 million private placement shelf note agreement with MetLife. The MetLife Facility, subject to the terms and conditions set forth therein, allows NJR to issue senior notes to MetLife or certain of MetLife's affiliates from time to time during a three-year issuance period ending September 26, 2016, on terms and conditions, including interest rates and maturity dates, to be agreed upon in connection with each note issuance. The notes issued under the MetLife Facility will be guaranteed by certain unregulated subsidiaries of NJR. As of September 30, 2013, $100 million remains available for borrowing under the MetLife Facility. Additionally, NJR entered into another debt shelf note agreement on May 12, 2011, in the amount of $100 million, which expired on May 10, 2013. As of September 30, 2013, NJR had two series of notes outstanding under this agreement, $25 million at 1.94 percent, which will mature on September 15, 2015 and $25 million at 2.51 percent, which will mature on September 15, 2018. Notes issued under these agreements are guaranteed by certain unregulated subsidiaries of the Company. These credit lines were to be used for general corporate purposes, including working capital and capital expenditures. NJR had no long-term, variable-rate debt outstanding at September 30, 2013 and 2012. A summary of NJR's and NJNG's short-term bank facilities as of September 30, are as follows:
(Thousands) | 2013 |  | 2012
NJR |  |  |
Bank revolving credit facilities (1) | $ | 325,000 |  |  | $ | 325,000 |
Amount outstanding at end of period | $ | 97,000 |  |  | $ | 144,800 |
Weighted average interest rate at end of period | 1.00 | % |  | 1.16 | %
Amount available at end of period (2) | $ | 210,110 |  |  | $ | 166,339 |
Bank term loan | $ | 100,000 |  |  | $ | — |
Amount outstanding at end of period | $ | 100,000 |  |  | $ | — |
Weighted average interest rate at end of period | 0.74 | % |  | — | %
Amount available at end of period | $ | — |  |  | $ | — |
Bank letter of credit facility (3) | $ | 10,000 |  |  | $ | — |
NJNG |  |  |
Bank credit facility dedicated to EDA Bonds (1) (3) | $ | 100,000 |  |  | $ | 100,000 |
Bank revolving credit facilities (1) | $ | 250,000 |  |  | $ | 200,000 |
Amount outstanding at end of period | $ | 168,600 |  |  | $ | 135,000 |
Weighted average interest rate at end of period | .13 | % |  | .18 | %
Amount available at end of period (4) | $ | 81,400 |  |  | $ | 65,000 |
(1) | Committed credit facilities, which require commitment fees on the unused amounts.
(2) | Letters of credit outstanding total $17.9 million and $13.9 million as of September 30, 2013 and 2012, respectively, which reduces amount available.
(3) | There were no borrowings outstanding as of September 30, 2013 and 2012, respectively.
(4) | Letters of credit outstanding total $266,000 as of September 30, 2013, which reduces amount available. There were no letters of credit outstanding as of September 30, 2012.
NJR Short-term Debt NJR had a $325 million revolving unsecured committed credit facility, which was due to expire in December 2012. On August 22, 2012, NJR replaced the facility with a new $325 million unsecured committed credit facility expiring August 22, 2017. The credit facility is used primarily to finance its share repurchases, to satisfy NJRES' short-term liquidity needs and to finance, on an initial basis, unregulated investments. It also permits an increase to the facility, from time to time, with the existing or new lenders, in a minimum of $5 million increments up to a maximum of $100 million at the lending banks' discretion. As of September 30, 2013, NJR has three letters of credit outstanding totaling $17.9 million. One letter of credit for $14.5 million is on behalf of NJRES and two letters of credit, which total $3.4 million, are on behalf of NJRCEV. These letters of credit reduce the amount available under NJR's committed credit facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary. NJRES' letter of credit is used for margin requirements for natural gas transactions and expires on December 31, 2013. NJRCEV's letters of credit secures construction of ground-mounted solar projects; one expires on November 27, 2013 and the other expires on December 27, 2013. On September 13, 2013, NJR, as borrower, and certain of its unregulated subsidiaries, as guarantors, entered into an unsecured one-year $100 million Term Loan Credit Agreement with JPMorgan that terminates on September 15, 2014. As of September 30, 2013, NJR had $100 million outstanding under the JPMC Term Loan. On June 5, 2013, NJR entered into a new agreement permitting the issuance of stand-alone letters of credit for up to $10 million through June 5, 2014. No amounts have been drawn under this arrangement as of September 30, 2013. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJNG Short-term Debt NJNG entered into the JPMC facility, which is a $100 million four-year credit facility that expires in August 2015, to provide liquidity support in the event of a failed remarketing of the EDA Bonds and to ensure payment of principal and interest. NJNG had a $200 million unsecured committed credit facility expiring August 2014, which permits an increase to the facility, from time to time, with the existing or new lenders, in a minimum of $15 million increments up to a maximum of $50 million at the lending banks' discretion. In November 2012, NJNG utilized the accordion option available under its committed revolving syndicated credit facility to increase the amount of credit available from $200 million to $250 million. The credit facility is used to support NJNG's commercial paper program and provides for the issuance of letters of credit. As of September 30, 2013, NJNG had $168.6 million in borrowings outstanding under the facility. As of September 30, 2013, NJNG has one letter of credit outstanding for $266,000. NJNG's letter of credit is used for collateral for a remediation project and expires on August 11, 2014. This letter of credit reduces the amount available under NJNG's committed credit facility by the same amount. NJNG does not anticipate that this letter of credit will be drawn upon by the counterparty, and it will be renewed as necessary.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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