FAIR VALUE (Tables)

6 Months Ended

Mar. 31, 2018

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)	March 31, 2018		September 30, 2017
Carrying value ^{(1) (2) (3)}	$	1,097,045	$	1,097,045
Fair market value	$	1,084,268	$	1,107,676


(1)	Excludes capital leases of $41.8 million and $39.7 million as of March 31, 2018 and September 30, 2017, respectively.


(2)	Excludes NJNG's debt issuance costs of $6.1 million and $6.3 million as of March 31, 2018 and September 30, 2017, respectively.


(3)	Excludes NJR's debt issuance costs of $768,000 and $770,000 as of March 31, 2018 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 March 31, 2018:
Assets:
Physical commodity contracts		$	—		$	7,373		$	—	$	7,373
Financial commodity contracts		20,443			12,562			—		33,005
Interest rate contracts		—			135			—		135
Available for sale equity securities - energy industry		28,228			—			—		28,228
Other ⁽¹⁾		1,214			—			—		1,214
Total assets at fair value		$	49,885		$	20,070		$	—	$	69,955
Liabilities:
Physical commodity contracts		$	—		$	31,263		$	—	$	31,263
Financial commodity contracts		36,353			565			—		36,918
Financial commodity contracts - foreign exchange		—			200			—		200
Interest rate contracts		—			14			—		14
Total liabilities at fair value		$	36,353		$	32,042		$	—	$	68,395
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 $11,000 and $112,000 as of March 31, 2018 and September 30, 2017, respectively.

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 March 31, 2018:
Assets
Impairment of available for sale securities ⁽¹⁾		$	17,838		$	—		$	—	$	17,838
Total assets at fair value		$	17,838		$	—		$	—	$	17,838


(1)	See Note 2. Summary of Significant Accounting Policies for more information regarding the impairment.