XML 40 R25.htm IDEA: XBRL DOCUMENT
v3.4.0.3

DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended
--- | ---
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Fair Value of Derivative Assets and Liabilities | The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of:
|  |  | Fair Value
|  | March 31, 2016 |  | September 30, 2015
(Thousands) | Balance Sheet Location | Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
NJRES: |  |  |  |  |  |  |  |  |
Foreign currency contracts | Derivatives - current |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Fair value of derivatives designated as hedging instruments |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
NJNG: |  |  |  |  |  |  |  |  |
Physical commodity contracts | Derivatives - current |  | $ | 58 |  |  | $ | 90 |  |  | $ | — |  |  | $ | — |
Financial commodity contracts | Derivatives - current |  | 2,252 |  |  | 21,014 |  |  | 207 |  |  | 10,163 |
| Derivatives - noncurrent |  | — |  |  | — |  |  | — |  |  | 925 |
Interest rate contracts | Derivatives - noncurrent |  | — |  |  | 12,932 |  |  | — |  |  | 4,228 |
NJRES: |  |  |  |  |  |  |  |  |
Physical commodity contracts | Derivatives - current |  | 5,245 |  |  | 8,892 |  |  | 4,854 |  |  | 9,281 |
| Derivatives - noncurrent |  | 914 |  |  | 158 |  |  | 1,718 |  |  | — |
Financial commodity contracts | Derivatives - current |  | 47,241 |  |  | 23,739 |  |  | 35,682 |  |  | 13,347 |
| Derivatives - noncurrent |  | 260 |  |  | 823 |  |  | 2,626 |  |  | 386 |
Fair value of derivatives not designated as hedging instruments |  | $ | 55,970 |  |  | $ | 67,648 |  |  | $ | 45,087 |  |  | $ | 38,330 |
Total fair value of derivatives |  |  | $ | 55,977 |  |  | $ | 67,648 |  |  | $ | 45,087 |  |  | $ | 38,330 |
Offsetting Assets | The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.
(Thousands) | Amounts Presented in Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4)
As of March 31, 2016: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 6,159 |  |  | $ | (1,344 | ) |  | $ | (1,000 | ) |  | $ | 3,815 |
Financial commodity contracts |  | 47,501 |  |  | (19,324 | ) |  | (12,846 | ) |  | 15,331 |
Foreign currency contracts |  | 7 |  |  | — |  |  | — |  |  | 7 |
Total NJRES |  | $ | 53,667 |  |  | $ | (20,668 | ) |  | $ | (13,846 | ) |  | $ | 19,153 |
NJNG |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 58 |  |  | $ | (1 | ) |  | $ | — |  |  | $ | 57 |
Financial commodity contracts |  | 2,252 |  |  | (2,252 | ) |  | — |  |  | — |
Total NJNG |  | $ | 2,310 |  |  | $ | (2,253 | ) |  | $ | — |  |  | $ | 57 |
Derivative liabilities: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 9,050 |  |  | $ | (1,345 | ) |  | $ | (1,200 | ) |  | $ | 6,505 |
Financial commodity contracts |  | 24,562 |  |  | (19,324 | ) |  | (5,238 | ) |  | — |
Total NJRES |  | $ | 33,612 |  |  | $ | (20,669 | ) |  | $ | (6,438 | ) |  | $ | 6,505 |
NJNG |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 90 |  |  | $ | (1 | ) |  | $ | — |  |  | $ | 89 |
Financial commodity contracts |  | 21,014 |  |  | (2,252 | ) |  | (18,762 | ) |  | — |
Interest rate contracts |  | 12,932 |  |  | — |  |  | — |  |  | 12,932 |
Total NJNG |  | $ | 34,036 |  |  | $ | (2,253 | ) |  | $ | (18,762 | ) |  | $ | 13,021 |
As of September 30, 2015: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 6,562 |  |  | $ | (1,326 | ) |  | $ | — |  |  | $ | 5,236 |
Financial commodity contracts |  | 38,308 |  |  | (13,734 | ) |  | 3,841 |  |  | 28,415 |
Total NJRES |  | $ | 44,870 |  |  | $ | (15,060 | ) |  | $ | 3,841 |  |  | $ | 33,651 |
NJNG |  |  |  |  |  |  |  |
Financial commodity contracts |  | $ | 207 |  |  | $ | (207 | ) |  | $ | — |  |  | $ | — |
Derivative liabilities: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 9,271 |  |  | $ | (1,326 | ) |  | $ | (1,200 | ) |  | $ | 6,745 |
Financial commodity contracts |  | 13,733 |  |  | (13,733 | ) |  | — |  |  | — |
Total NJRES |  | $ | 23,004 |  |  | $ | (15,059 | ) |  | $ | (1,200 | ) |  | $ | 6,745 |
NJNG |  |  |  |  |  |  |  |
Financial commodity contracts |  | $ | 11,088 |  |  | $ | (207 | ) |  | $ | (10,881 | ) |  | $ | — |
Interest rate contracts |  | 4,228 |  |  | — |  |  | — |  |  | 4,228 |
Total NJNG |  | $ | 15,316 |  |  | $ | (207 | ) |  | $ | (10,881 | ) |  | $ | 4,228 |
(1) | Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20.
(2) | Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's with net margining and transactions with ISDA netting.
(3) | Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.
(4) | Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Offsetting Liabilities | The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.
(Thousands) | Amounts Presented in Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4)
As of March 31, 2016: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 6,159 |  |  | $ | (1,344 | ) |  | $ | (1,000 | ) |  | $ | 3,815 |
Financial commodity contracts |  | 47,501 |  |  | (19,324 | ) |  | (12,846 | ) |  | 15,331 |
Foreign currency contracts |  | 7 |  |  | — |  |  | — |  |  | 7 |
Total NJRES |  | $ | 53,667 |  |  | $ | (20,668 | ) |  | $ | (13,846 | ) |  | $ | 19,153 |
NJNG |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 58 |  |  | $ | (1 | ) |  | $ | — |  |  | $ | 57 |
Financial commodity contracts |  | 2,252 |  |  | (2,252 | ) |  | — |  |  | — |
Total NJNG |  | $ | 2,310 |  |  | $ | (2,253 | ) |  | $ | — |  |  | $ | 57 |
Derivative liabilities: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 9,050 |  |  | $ | (1,345 | ) |  | $ | (1,200 | ) |  | $ | 6,505 |
Financial commodity contracts |  | 24,562 |  |  | (19,324 | ) |  | (5,238 | ) |  | — |
Total NJRES |  | $ | 33,612 |  |  | $ | (20,669 | ) |  | $ | (6,438 | ) |  | $ | 6,505 |
NJNG |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 90 |  |  | $ | (1 | ) |  | $ | — |  |  | $ | 89 |
Financial commodity contracts |  | 21,014 |  |  | (2,252 | ) |  | (18,762 | ) |  | — |
Interest rate contracts |  | 12,932 |  |  | — |  |  | — |  |  | 12,932 |
Total NJNG |  | $ | 34,036 |  |  | $ | (2,253 | ) |  | $ | (18,762 | ) |  | $ | 13,021 |
As of September 30, 2015: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 6,562 |  |  | $ | (1,326 | ) |  | $ | — |  |  | $ | 5,236 |
Financial commodity contracts |  | 38,308 |  |  | (13,734 | ) |  | 3,841 |  |  | 28,415 |
Total NJRES |  | $ | 44,870 |  |  | $ | (15,060 | ) |  | $ | 3,841 |  |  | $ | 33,651 |
NJNG |  |  |  |  |  |  |  |
Financial commodity contracts |  | $ | 207 |  |  | $ | (207 | ) |  | $ | — |  |  | $ | — |
Derivative liabilities: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 9,271 |  |  | $ | (1,326 | ) |  | $ | (1,200 | ) |  | $ | 6,745 |
Financial commodity contracts |  | 13,733 |  |  | (13,733 | ) |  | — |  |  | — |
Total NJRES |  | $ | 23,004 |  |  | $ | (15,059 | ) |  | $ | (1,200 | ) |  | $ | 6,745 |
NJNG |  |  |  |  |  |  |  |
Financial commodity contracts |  | $ | 11,088 |  |  | $ | (207 | ) |  | $ | (10,881 | ) |  | $ | — |
Interest rate contracts |  | 4,228 |  |  | — |  |  | — |  |  | 4,228 |
Total NJNG |  | $ | 15,316 |  |  | $ | (207 | ) |  | $ | (10,881 | ) |  | $ | 4,228 |
(1) | Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20.
(2) | Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's with net margining and transactions with ISDA netting.
(3) | Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.
(4) | Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on Consolidated Statements of Operations | The following table reflects the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations as of:
(Thousands) | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives
|  | Three Months Ended | Six Months Ended
|  | March 31, | March 31,
Derivatives not designated as hedging instruments: | 2016 |  | 2015 | 2016 |  | 2015
NJRES: |  |  |  |  |  |  |
Physical commodity contracts | Operating revenues | $ | 9,128 |  |  | $ | (1,144 | ) | $ | 21,002 |  |  | $ | 14,947 |
Physical commodity contracts | Gas purchases | (5,583 | ) |  | 10,063 |  | (26,820 | ) |  | (9,793 | )
Financial commodity contracts | Gas purchases | 21,820 |  |  | (27,204 | ) | 63,096 |  |  | 90,517 |
Total unrealized and realized gains (losses) | $ | 25,365 |  |  | $ | (18,285 | ) | $ | 57,278 |  |  | $ | 95,671 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of March 31:
(Thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
| Three Months Ended | Three Months Ended | Three Months Ended
| March 31, | March 31, | March 31,
Derivatives in cash flow hedging relationships: | 2016 | 2015 | 2016 | 2015 | 2016 | 2015
Foreign currency contracts | $ | 29 |  | $ | (381 | ) | $ | 30 |  | $ | 567 |  | $ | — |  | $ | — |
(Thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
| Six Months Ended | Six Months Ended | Six Months Ended
| March 31, | March 31, | March 31,
Derivatives in cash flow hedging relationships: | 2016 | 2015 | 2016 | 2015 | 2016 | 2015
Foreign currency contracts | $ | (35 | ) | $ | (405 | ) | $ | 42 |  | $ | 542 |  | $ | — |  | $ | — |
Schedule of Outstanding Long (Short) Derivatives | NJNG and NJRES had the following outstanding long (short) derivatives as of:
|  |  | Volume (Bcf)
|  |  | March 31, 2016 |  | September 30, 2015
NJNG | Futures(1) |  | 15.2 |  |  | 25.8 |
| Physical |  | 5.9 |  |  | — |
NJRES | Futures |  | (88.6 | ) |  | (91.1 | )
| Options |  | 3.6 |  |  | 1.2 |
| Physical (2) |  | 137.4 |  |  | 48.2 |
(1) | Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement.
(2) | Not included are 48,000 SRECs that are open as of March 31, 2016.
Schedule of Broker Margin Accounts by Company | The balances by company, are as follows:
(Thousands) | Balance Sheet Location | March 31, 2016 | September 30, 2015
NJNG | Broker margin - Current assets | $ | 20,235 |  | $ | 12,990 |
NJRES | Broker margin - Current assets | $ | 13,921 |  | $ | — |
| Broker margin - Current (liabilities) | $ | (12,798 | ) | $ | (4,103 | )
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2016. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and NJRCEV residential solar installations.
(Thousands) | Gross Credit Exposure
Investment grade |  | $ | 84,613 |  |
Noninvestment grade |  | 8,407 |  |
Internally rated investment grade |  | 11,537 |  |
Internally rated noninvestment grade |  | 12,974 |  |
Total |  | $ | 117,531 |  |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of amounts receivable from and payable to broker-dealers and clearing organizations, including securities failed to receive, deposits received for securities loaned, amounts payable to clearing organizations related to open transactions, floor brokerage payables and payables for commodities futures accounts liquidating to an equity balance on a broker-dealer's records. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDueToFromBrokerDealersAndClearingOrganizationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for other derivative instruments not designated as hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 18 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6351-108592 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13531-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6442-108592 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6327-108592 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6404-108592 + Details
Name: | us-gaap_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration