FAIR VALUE (Tables)

3 Months Ended

Dec. 31, 2017

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)	December 31, 2017		September 30, 2017
Carrying value ^{(1) (2) (3)}	$	1,097,045	$	1,097,045
Fair market value	$	1,111,265	$	1,107,676


(1)	Excludes capital leases of $45 million and $39.7 million as of December 31, 2017 and September 30, 2017, respectively.


(2)	Excludes NJNG's debt issuance costs of $6.2 million and $6.3 million as of December 31, 2017 and September 30, 2017, respectively.


(3)	Excludes NJR's debt issuance costs of $804,000 and $770,000 as of December 31, 2017 and September 30, 2017, respectively.

Schedule of Fair Value Assets and Liabilities Measured 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 December 31, 2017:
Assets:
Physical commodity contracts		$	—		$	16,535		$	—	$	16,535
Financial commodity contracts		35,265			—			—		35,265
Financial commodity contracts - foreign exchange		—			36			—		36
Available for sale equity securities - energy industry		55,995			—			—		55,995
Other ⁽¹⁾		1,106			—			—		1,106
Total assets at fair value		$	92,366		$	16,571		$	—	$	108,937
Liabilities:
Physical commodity contracts		$	—		$	38,840		$	—	$	38,840
Financial commodity contracts		71,143			—			—		71,143
Financial commodity contracts - foreign exchange		—			30			—		30
Interest rate contracts		—			12,534			—		12,534
Total liabilities at fair value		$	71,143		$	51,404		$	—	$	122,547
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 - energy industry		65,752			—			—		65,752
Other ⁽¹⁾		1,202			—			—		1,202
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
Interest rate contracts		—			8,467			—		8,467
Total liabilities at fair value		$	24,036		$	33,838		$	—	$	57,874


(1)	Includes money market funds of $4,000 and $112,000 as of December 31, 2017 and September 30, 2017, respectively.