FAIR VALUE (Tables)

12 Months Ended

Sep. 30, 2017

As of September 30, the estimated fair value of long-term debt at NJNG and NJR, including current maturities, excluding capital leases, debt issuance costs and solar asset financing obligations, is as follows:



(Thousands)	2017		2016
NJNG
Carrying value ^{(1) (2)}	$	672,045	$	707,845
Fair market value	$	673,051	$	731,615
NJR
Carrying value ⁽³⁾	$	425,000	$	375,000
Fair market value	$	434,625	$	399,462


(1)	Excludes capital leases of $39.7 million and $42.2 million as of September 30, 2017 and 2016, respectively.


(2)	Excludes debt issuance costs of $6.3 million and $7.7 million as of September 30, 2017 and 2016, respectively.


(3)	Excludes debt issuance costs of $770,000 and $853,000 as of September 30, 2017 and 2016, respectively.

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:



	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2017:
Assets
Physical commodity contracts		$	—		$	21,866		$	—	$	21,866
Financial commodity contracts		17,335			—			—		17,335
Financial commodity contracts - foreign exchange		—			44			—		44
Available for sale equity securities		65,752			—			—		65,752
Money market funds		112			—			—		112
Other		1,090			—			—		1,090
Total assets at fair value		$	84,289		$	21,910		$	—	$	106,199
Liabilities
Physical commodity contracts		$	—		$	25,371		$	—	$	25,371
Financial commodity contracts		24,036			—			—		24,036
Financial commodity contracts - foreign exchange		—			—			—		—
Interest rate contracts		—			8,467			—		8,467
Total liabilities at fair value		$	24,036		$	33,838		$	—	$	57,874
As of September 30, 2016:
Assets
Physical commodity contracts		$	—		$	10,216		$	—	$	10,216
Financial commodity contracts		24,974			—			—		24,974
Financial commodity contracts - foreign exchange		—			1			—		1
Available for sale equity securities		55,789			—			—		55,789
Money market funds		34,072			—			—		34,072
Other		1,444			—			—		1,444
Total assets at fair value		$	116,279		$	10,217		$	—	$	126,496
Liabilities
Physical commodity contracts		$	—		$	14,026		$	—	$	14,026
Financial commodity contracts		49,201			—			—		49,201
Financial commodity contracts - foreign exchange		—			32			—		32
Interest rate contracts		—			23,073			—		23,073
Total liabilities at fair value		$	49,201		$	37,131		$	—	$	86,332

Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

Assets measured at fair value on a non-recurring basis are summarized as follows:



	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2017:
Assets
Acquired wholesale energy contracts ⁽¹⁾		$	—		$	41,084		$	—	$	41,084
Total assets at fair value		$	—		$	41,084		$	—	$	41,084


(1)	Included in intangible asset on the Consolidated Balance Sheets, see Note 3. Acquisition for more information regarding the acquired contracts.