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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended
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Sep. 30, 2016
Accounting Policies [Abstract] |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by NJR to determine if it has the power to direct business activities and, therefore, would be considered a controlling interest that NJR would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2016, 2015 and 2014. Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. NJNG maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the Regulated Operations Topic of the FASB ASC. As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 3. Regulation, for a more detailed description of NJNG’s regulatory assets and liabilities. Gas in Storage Gas in storage is reflected at average cost on the Consolidated Balance Sheets, and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes gas in storage, at average cost by company, as of September 30:
| 2016 | 2015
($ in thousands) | Gas in Storage |  | Bcf | Gas in Storage |  | Bcf
NJRES |  | $ | 130,493 |  | 62.0 |  |  | $ | 93,696 |  | 44.6 |
NJNG |  | 75,758 |  | 21.3 |  |  | 70,209 |  | 21.4 |
Total |  | $ | 206,251 |  | 83.3 |  |  | $ | 163,905 |  | 66.0 |
Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, NJRES and NJNG enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on established tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets. The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:
(Millions) | 2016 | 2015 | 2014
NJRES | $ | 141.0 |  | $ | 130.6 |  | $ | 122.0 |
NJNG | 77.8 |  | 80.5 |  | 92.0 |
Total | $ | 218.8 |  | $ | 211.1 |  | $ | 214.0 |
NJRES expenses demand charges ratably over the term of the service being provided. NJNG’s costs associated with demand charges are included in its weighted average cost of gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of its gas commodity component of its BGSS tariff. Derivative Instruments NJR accounts for its financial instruments, such as futures, options, foreign exchange contracts, interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at NJRES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. NJR’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in gas purchases and changes in the fair value of their physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. NJRES designated its foreign exchange contracts, entered into prior to January 1, 2016, as cash flow hedges of Canadian dollar denominated gas purchases. Changes in the fair value of the effective portion of these hedges are recorded to AOCI, a component of stockholders’ equity, and reclassified to gas purchases on the Consolidated Statements of Operations when they settle. Ineffective portions of the cash flow hedges are recognized immediately in earnings. NJR did not have derivatives designated as fair value hedges during fiscal 2015 and 2016. The Derivatives and Hedging Topic of the ASC also provides for a NPNS scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. Effective January 1, 2016, NJR prospectively applies this normal scope exception on a case by case basis to physical commodity contracts at NJNG, forward SREC contracts at NJRCEV and when it does, it does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 4. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures, swaps, and certain options, are based on unadjusted, quoted prices in active markets. NJR’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at NJRES, and NJNG’s Treasury Lock are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and NJNG recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. NJRCEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. Revenues for NJRES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. NJRES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. Gas Purchases NJNG’s tariff includes a component for BGSS, which is designed to allow NJNG to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and credits from non-firm sales and transportation activities. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. Gas purchases at NJRES are comprised of gas costs NJRES is obligated to pay upon completion of a variety of transactions, as well as realized gains and losses from settled physical and financial derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in gas purchases as they occur. Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. In addition, NJR evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at NJR’s unregulated subsidiaries are recognized as a reduction to income tax expense when the property is placed in service. The Company invests in property that qualifies for PTCs. PTCs are recognized as reductions to current federal income tax expense as PTCs are generated through the production activities of the assets. Changes to the federal statutes related to ITCs and PTCs, which have the effect of reducing or eliminating the credits, could have a negative impact on earnings and cash flows. Capitalized and Deferred Interest NJNG’s base rates include the ability to recover AFUDC on its CWIP. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its CWIP. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 3 Regulation - Infrastructure programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30:
($ in thousands) | 2016 | 2015 | 2014
AFUDC: |  |  |
Debt | $ | 5,009 |  | $ | 2,472 |  | $ | 1,057 |
Equity | 4,375 |  | 3,825 |  | 1,562 |
Total | $ | 9,384 |  | $ | 6,297 |  | $ | 2,619 |
Weighted average interest rate | 5.06 | % | 4.63 | % | 3.30 | %
Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RA and USF expenditures. See Note 3. Regulation. The SBC interest rate changes each September based on the August 31 seven-year constant maturity Treasury rate plus 60 basis points. The rate was 2.05 percent, 2.54 percent and 2.65 percent for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Accordingly, other income included $54,000, $61,000 and $586,000 in the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Sales Tax Accounting Sales tax that is collected from customers is presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows:
(Millions) | 2016 | 2015 | 2014
Sales tax | $ | 31.0 |  | $ | 44.1 |  | $ | 47.4 |
TEFA (1) | — |  | — |  | 1.4 |
Total | $ | 31.0 |  | $ | 44.1 |  | $ | 48.8 |
(1) | TEFA was phased out in January 2014.
Cash and Cash Equivalents Cash and cash equivalents consists of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $1.6 million and $2.5 million as of September 30, 2016 and 2015, respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets, respectively. Property Plant and Equipment Regulated property, plant and equipment and solar and wind equipment are stated at original cost. Regulated property, plant and equipment costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable regulated property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. Depreciation is computed on a straight-line basis over the useful life of the assets for unregulated assets and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.32 percent of average depreciable property in fiscal 2016, 2.31 percent in fiscal 2015 and 2.44 percent in fiscal 2014. The Company recorded $72.7 million, $61.4 million and $52.7 million in depreciation expense during fiscal 2016, 2015 and 2014, respectively. Effective October 1, 2016, the overall depreciation rate is 2.4 percent, as settled in the base rate case. Property, plant and equipment was comprised of the following as of September 30:
(Thousands) |  |  |  |
Property Classifications | Estimated Useful Lives |  | 2016 | 2015
Distribution facilities | 38 to 74 years |  | $ | 1,823,672 |  | $ | 1,695,898 |
Transmission facilities | 35 to 56 years |  | 292,433 |  | 289,599 |
Storage facilities | 34 to 47 years |  | 78,238 |  | 41,669 |
Solar property | 20 to 25 years |  | 479,948 |  | 395,704 |
Wind property | 25 years |  | 228,644 |  | 137,292 |
All other property | 5 to 35 years |  | 52,195 |  | 62,123 |
Total property, plant and equipment |  |  | 2,955,130 |  | 2,622,285 |
Accumulated depreciation and amortization |  |  | (547,478 | ) | (494,024 | )
Property, plant and equipment, net |  |  | $ | 2,407,652 |  | $ | 2,128,261 |
Asset Held for Sale NJR’s subsidiary, CR&R, has committed to sell an approximately 56,400 square foot office building on five acres of land located in Monmouth County with a net book value of $7.7 million. Since it is probable that the sale will be completed within the next 12 months, as of September 30, 2016, the Company has classified the property as held for sale in the Consolidated Balance Sheets. Impairment of Long-Lived Assets The Company reviews the carrying amount of an asset for possible impairment whenever events or changes in circumstances indicate that such amount may not be recoverable. During fiscal 2014, NJRCEV recognized an impairment loss of $6.4 million, $3.8 million after tax, associated with its investment in OwnEnergy, a developer of onshore wind projects. The loss is included in other income, net on the Consolidated Statements of Operations. No other impairments were identified for the fiscal years ended September 30, 2016, 2015 and 2014. Investments in Equity Investees The Company accounts for its investments in Steckman Ridge, PennEast and Iroquois (through September 29, 2015), using the equity method of accounting, where its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions, but is not the primary beneficiary, as defined under ASC 810, Consolidation. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. See Note 6. Investment in Equity Investees for more information. Available for Sale Securities The Company has investments in two publicly traded energy companies that have a fair value of $55.8 million and $59.5 million as of September 30, 2016 and 2015, respectively, which are included in available for sale securities on the Consolidated Balance Sheets. Total unrealized gains associated with these equity securities, which are included as a part of accumulated other comprehensive income, a component of common stock equity, were $7.2 million, $4.2 million after tax, and $10.8 million, $6.4 million after tax, as of September 30, 2016 and 2015, respectively. On September 29, 2015, NJR Midstream Holdings Corporation exchanged its 5.53 percent equity method investment in Iroquois to DM for approximately 1.84 million DM Common Units. Since the exchange was, in substance, a contribution of real estate into another real estate venture, the Company recorded a deferred gain of $24.6 million based on the difference between the carrying amount of its investment of Iroquois, $21.5 million, and the fair value of the DM Common Units on the closing date of the transaction, $46.1 million. The deferred gain will be recognized in other income on the Consolidated Statements of Operations if and when the units are sold in the future. NJR classified the DM Common Units as available for sale securities and, therefore, any changes in fair value are recognized in accumulated other comprehensive income, a component of common stock equity. Reclassifications of realized gains out of other comprehensive income into income are determined based on average cost. There were no sales of securities during fiscal 2016 and 2015. Customer Accounts Receivable and Allowance for Doubtful Accounts Receivables consist of natural gas sales and transportation services billed to residential, commercial, industrial and other customers, as well as equipment sales, installations, solar leases and PPAs to commercial and residential customers. NJR evaluates its accounts receivables and, to the extent customer account balances are outstanding for more than 60 days, establishes an allowance for doubtful accounts. The allowance is based on a combination of factors including historical collection experience and trends, aging of receivables, general economic conditions in the company’s distribution or sales territories, and customer specific information. NJR writes-off customers’ accounts once it is determined they are uncollectible. The following table summarizes customer accounts receivable by company as of September 30:
(Thousands) | 2016 |  | 2015
NJRES | $ | 102,884 |  | 72 | % |  | $ | 107,461 |  | 69 | %
NJNG (1) | 30,951 |  | 22 |  |  | 41,130 |  | 26 |
NJRCEV | 1,807 |  | 1 |  |  | 1,084 |  | 1 |
NJRHS and other | 7,016 |  | 5 |  |  | 5,598 |  | 4 |
Total | $ | 142,658 |  | 100 | % |  | $ | 155,273 |  | 100 | %
(1) | Does not include unbilled revenues of $5.7 million and $6.4 million as of September 30, 2016 and 2015, respectively.
Loans Receivable NJNG provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. Refer to Note 5. Fair Value for a discussion of the Company’s fair value measurement policies and level disclosures. The Company has recorded $7.8 million and $6.2 million in other current assets and $39.5 million and $36.2 million in other noncurrent assets as of September 30, 2016 and 2015, respectively, on the Consolidated Balance Sheets, related to the loans. NJNG’s policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days. There was no allowance for doubtful accounts established for the SAVEGREEN loans during fiscal 2016 and 2015. Asset Retirement Obligations NJR recognizes a liability for its AROs based on the fair value of the liability when incurred, which is generally upon acquisition, construction, development and/or through the normal operation of the asset. Concurrently, NJR also capitalizes an asset retirement cost by increasing the carrying amount of the related asset by the same amount as the liability. In periods subsequent to the initial measurement, NJR is required to recognize changes in the liability resulting from the passage of time (accretion) or due to revisions to either timing or the amount of the originally estimated cash flows to settle the conditional ARO. Accumulated Other Comprehensive Income The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects, as of September 30:
(Thousands) | Unrealized gain (loss) on available for sale securities | Net unrealized gain (loss) on derivatives | Adjustment to postemployment benefit obligation | Total
Balance at September 30, 2014 | $ | 4,782 |  |  | $ | (93 | ) |  | $ | (10,283 | ) |  | $ | (5,594 | )
Other comprehensive income, net of tax |  |  |  |  |  |  |
Other comprehensive income (loss), before reclassifications, net of tax of ($1,135), $146, $4,362, $3,373 | 1,603 |  |  | (256 | ) |  | (6,483 | ) |  | (5,136 | )
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, ($202), ($674), ($876) | — |  |  | 349 |  | (1) | 987 |  | (2) | 1,336 |
Net current-period other comprehensive income (loss), net of tax of ($1,135), ($56), $3,688, $2,497 | 1,603 |  |  | 93 |  |  | (5,496 | ) |  | (3,800 | )
Balance at September 30, 2015 | $ | 6,385 |  |  | $ | — |  |  | $ | (15,779 | ) |  | $ | (9,394 | )
Other comprehensive income, net of tax |  |  |  |  |  |  |
Other comprehensive (loss), before reclassifications, net of tax of $1,499, $10, $3,164, $4,673 | (2,187 | ) |  | (17 | ) |  | (4,600 | ) |  | (6,804 | )
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(10), $(698), $(708) | — |  |  | 17 |  | (1) | 1,026 |  | (2) | 1,043 |
Net current-period other comprehensive (loss), net of tax of $1,499, $0, $2,466, $3,965 | (2,187 | ) |  | — |  |  | (3,574 | ) |  | (5,761 | )
Balance at September 30, 2016 | $ | 4,198 |  |  | $ | — |  |  | $ | (19,353 | ) |  | $ | (15,155 | )
(1) | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Consolidated Statements of Operations.
(2) | Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 10. Employee Benefit Plans.
Pension and Postemployment Plans NJR has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee’s years of service and compensation. NJR’s funding policy is to contribute annually to these plans at least the minimum amount required under Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. The Company made a discretionary contribution of $30 million during the first quarter of fiscal 2016 to improve the funded status of the pension plans based on then current actuarial assumptions, which included the adoption of the most recent mortality table. The Company made no discretionary contributions to the pension plans in fiscal 2015. NJR also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. NJR contributed $3 million, $6 million and $5 million in aggregate to these plans in fiscal 2016, 2015 and 2014, respectively. See Note 10. Employee Benefit Plans, for a more detailed description of the Company’s pension and postemployment plans. Foreign Currency Transactions NJRES’ market area includes Canadian delivery points and as a result, NJRES incurs certain natural gas commodity costs and demand fees denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of gas purchases on the Consolidated Statements of Operations and were not material during the fiscal years ended September 30, 2016, 2015 and 2014. Recently Adopted Updates to the Accounting Standards Codification Income Taxes In November 2015, the FASB issued ASU 2015-17, an amendment to ASC 740, Income Taxes, to simplify the balance sheet presentation of deferred income taxes. The update requires entities to present all deferred tax assets and liabilities as noncurrent. The Company elected to early adopt the amended guidance effective October 1, 2015, and applied the new provisions retrospectively. Accordingly, the following amounts on the Consolidated Balance Sheets, as of September 30, 2015, have been adjusted:
(Thousands) | As Previously Reported |  | Effect of Change |  | As Adjusted
Assets |  |  |  |  |
Deferred taxes (current) | $ | 56,296 |  |  | $ | (56,296 | ) |  | $ | — |
Total current assets | $ | 544,511 |  |  | $ | (56,296 | ) |  | $ | 488,215 |
Other noncurrent assets | $ | 60,300 |  |  | $ | 1,615 |  |  | $ | 61,915 |
Total noncurrent assets | $ | 666,266 |  |  | $ | 1,615 |  |  | $ | 667,881 |
Total assets | $ | 3,339,038 |  |  | $ | (54,681 | ) |  | $ | 3,284,357 |
Capitalization and Liabilities |  |  |  |  |
Deferred income taxes | $ | 499,616 |  |  | $ | (54,681 | ) |  | $ | 444,935 |
Total noncurrent liabilities | $ | 952,387 |  |  | $ | (54,681 | ) |  | $ | 897,706 |
Total capitalization and liabilities | $ | 3,339,038 |  |  | $ | (54,681 | ) |  | $ | 3,284,357 |
There was no additional impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. Stock Compensation In March 2016, the FASB issued ASU 2016-09, an amendment to ASC 718, Compensation - Stock Compensation, which simplifies several aspects of the accounting for employee share-based compensation, including the accounting for income taxes and forfeitures. The new guidance also increased the threshold for tax withholding to the maximum statutory rate, as applicable, to maintain equity classification and amended the classification of certain tax transactions within the statement of cash flows. The Company elected to early adopt the amended guidance during the third quarter of fiscal 2016 and applied the new provisions as of the beginning of the year of adoption on a retrospective or prospective basis depending on each amendment’s transition requirements. As such, effective October 1, 2015, NJR is recognizing forfeitures as they occur and is recognizing excess tax benefits (deficiencies) as a component of income tax (benefit) provision in its Consolidated Statements of Operations on a prospective basis. Accordingly, upon adoption, the Company recognized $1.8 million in excess tax benefits during fiscal 2016. The following table presents the adjustments to the Consolidated Statements of Cash Flows for the fiscal year ended September 30, 2015:
(Thousands) | As Previously Reported |  | Effect of Change |  | As Adjusted
Cash flows from operating activities |  |  |  |  |
Tax benefit from stock based compensation | $ | — |  |  | $ | 881 |  |  | $ | 881 |
Other noncurrent liabilities | $ | 25,695 |  |  | $ | 2,146 |  |  | $ | 27,841 |
Net cash flows provided from operating activities | $ | 387,920 |  |  | $ | 3,027 |  |  | $ | 390,947 |
Cash flows (used in) financing activities |  |  |  |  |
Tax benefit from stock options exercised | $ | 881 |  |  | $ | (881 | ) |  | $ | — |
Tax withholding payments related to net settled stock compensation | $ | — |  |  | $ | (2,146 | ) |  | $ | (2,146 | )
Cash flows (used in) financing activities | $ | (63,414 | ) |  | $ | (3,027 | ) |  | $ | (66,441 | )
The following table presents the adjustments to the Consolidated Statements of Cash Flows for the fiscal year ended September 30, 2014:
(Thousands) | As Previously Reported |  | Effect of Change |  | As Adjusted
Cash flows from operating activities |  |  |  |  |
Tax benefit from stock based compensation | $ | — |  |  | $ | 414 |  |  | $ | 414 |
Other noncurrent liabilities | $ | 19,775 |  |  | $ | 949 |  |  | $ | 20,724 |
Net cash flows provided from operating activities | $ | 356,786 |  |  | $ | 1,363 |  |  | $ | 358,149 |
Cash flows (used in) financing activities |  |  |  |  |
Tax benefit from stock options exercised | $ | 414 |  |  | $ | (414 | ) |  | $ | — |
Tax withholding payments related to net settled stock compensation | $ | — |  |  | $ | (949 | ) |  | $ | (949 | )
Cash flows (used in) financing activities | $ | (75,009 | ) |  | $ | (1,363 | ) |  | $ | (76,372 | )
There was no impact to the Consolidated Balance Sheets upon adoption of the new guidance. Other Recent Updates to the Accounting Standards Codification Revenue In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers, to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition, as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. In August 2015, the FASB issued ASU No. 2015-14, which defers the implementation of the new guidance for one year. The new guidance will become effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. The Company continues to evaluate the provisions of ASC 606, however, based on the review of customer contracts to date, it is not anticipating a material impact to its financial position, results of operations or cash flows upon adoption. Accordingly, the Company expects to transition to the new guidance using the modified retrospective approach. Stock Compensation In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation, which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for the Company’s fiscal year ending September 30, 2017, and interim periods within that year, on a prospective basis, and will not impact its financial position, results of operations or cash flows upon adoption. Consolidation In February 2015, the FASB issued ASU No. 2015-02, an amendment to ASC 810, Consolidation, which changes the consolidation analysis required under GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The new guidance will become effective for the Company’s fiscal year ending September 30, 2017, and interim periods within that year, on a full retrospective basis, and will not impact its financial position, results of operations or cash flows upon adoption. Interest In April 2015, the FASB issued ASU No. 2015-03, an amendment to ASC 835, Interest - Imputation of Interest, which simplifies the presentation of debt issuance costs by requiring them to be presented on the balance sheet as a deduction from the carrying amount of the liability. The amendments do not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU No. 2015-15, which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The new guidance will become effective for the Company’s fiscal year ending September 30, 2017, and interim periods within that year, on a retrospective basis, and will not have a material impact to its financial position, results of operations or cash flows upon adoption. Intangibles In April 2015, the FASB issued ASU No. 2015-05, an amendment to ASC 350, Intangibles - Goodwill and Other - Internal-Use Software, which clarifies the accounting for fees in a cloud computing arrangement. The amendments provide guidance on how an entity should evaluate the accounting for fees paid in a cloud computing arrangement to determine whether an arrangement includes the sale or license of software. The new guidance will become effective for the Company’s fiscal year ending September 30, 2017, and interim periods within that year, on a prospective basis, and will not impact its financial position, results of operations or cash flows upon adoption. Inventory In July 2015, the FASB issued ASU No. 2015-11, an amendment to ASC 330, Inventory, which requires entities to measure most inventory “at the lower of cost or net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The guidance is effective for the Company’s fiscal year ending September 30, 2018, and interim periods within that year. Upon adoption, the amendments will be applied on a prospective basis. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Financial Instruments In January 2016, the FASB issued ASU 2016-01, an amendment to ASC 825, Financial Instruments, to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. Upon adoption, the amendments will be applied on a modified-retrospective basis. The Company has evaluated the amendments and noted that, upon adoption, subsequent changes to the fair value of the Company’s available for sale securities will be recorded in the statement of operations as opposed to other comprehensive income. The Company does not expect any other material impacts to its financial position, results of operations or cash flows upon adoption. In June 2016, the FASB issued ASU 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses, which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. The guidance is effective for the Company’s fiscal year ending September 30, 2021, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Leases In February 2016, the FASB issued ASU 2016-02, an amendment to ASC 842, Leases, which provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows, which addresses eight specific cash flow issues for which there has been diversity in practice. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendments will be applied on a retrospective basis. The Company is currently evaluating the amendments to understand the impact on its consolidated statements of cash flows upon adoption. Use of Estimates The preparation of financial statements in conformity with GAAP requires NJR to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a monthly basis, NJR evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. AROs are evaluated as often as needed. NJR’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. NJR has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, NJR will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is NJR’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is NJR’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

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