XML 57 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
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, 2013
 
September 30, 2012
(Thousands)
Balance Sheet Location
Asset
Derivatives
Liability
Derivatives
Asset
Derivatives
Liability
Derivatives
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
NJRES:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
Derivatives - current
 
$
57

 
$
26

 
$
116

 
$
97

 
Derivatives - noncurrent
 
14

 
—

 
70

 
15

Fair value of derivatives designated as hedging instruments
 
$
71

 
$
26

 
$
186

 
$
112

 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
NJNG:
 
 
 
 
 
 
 
 
 
Financial derivative contracts
Derivatives - current
 
$
14,768

 
$
1,579

 
$
6,203

 
$
5,034

 
Derivatives - noncurrent
 
—

 
—

 
1,000

 
—

NJRES:
 
 
 
 
 
 
 
 
 
Physical forward commodity contracts
Derivatives - current
 
10,669

 
4,490

 
19,590

 
9,530

 
Derivatives - noncurrent
 
61

 
232

 
658

 
216

Financial derivative contracts
Derivatives - current
 
16,658

 
40,430

 
22,112

 
27,779

 
Derivatives - noncurrent
 
706

 
1,078

 
600

 
2,902

Fair value of derivatives not designated as hedging instruments
 
$
42,862

 
$
47,809

 
$
50,163

 
$
45,461

Total fair value of derivatives
 
 
$
42,933

 
$
47,835

 
$
50,349

 
$
45,573
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
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:
2013
 
2012
2013
 
2012
NJRES:
 
 
 
 
 
 
 
Physical commodity contracts
Operating revenues
$
(2,224
)
 
$
8,745

$
(7,859
)
 
$
(3,163
)
Physical commodity contracts
Gas purchases
2,762

 
116

2,556

 
4,391

Financial derivative contracts
Gas purchases
(30,669
)
 
40,511

(1,467
)
 
102,965

Total unrealized and realized (losses) gains
$
(30,131
)
 
$
49,372

$
(6,770
)
 
$
104,193
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following tables reflect the effect of derivative instruments designated as cash flow hedges on OCI as of:
(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:
2013
2012
2013
2012
2013
2012
Foreign currency contracts
$
24

$
(25
)
$
(35
)
$
(23
)
$
—

$
—


(Thousands)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (1)
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:
2013
2012
2013
2012
2013
2012
Foreign currency contracts
$
(71
)
$
(75
)
$
44

$
(35
)
$
—

$
—

(1)
The settlement of foreign currency transactions over the next twelve months is expected to result in the reclassification of $32,000 from OCI into earnings. The maximum tenor is April 2015
Schedule of Derivative Instruments
NJNG and NJRES had the following outstanding long (short) derivatives as of:
 
 
 
Volume (Bcf)
 
 
 
March 31,
2013
September 30,
2012
NJNG
Futures
 
20.0

16.1

 
Swaps
(1) 
—

3.4

 
Options
 
1.8

—

NJRES
Futures
 
1.5

(28.6
)
 
Swaps
(1) 
—

13.2

 
Options
 
—

4.4

 
Physical
 
61.8

(3.5
)
(1) In October 2012, following the implementation of Dodd-Frank, ICE converted its cleared energy “swap” contracts to “futures” contracts and the NYMEX amended their product titles to remove the word “swap” from the titles of their “futures” and “option” contracts.
Schedule of Due to (from) Broker-Dealers and Clearing Organizations
The Company maintains separate broker margin accounts for NJNG and NJRES. The balances by company, are as follows:
(Thousands)
Balance Sheet Location
March 31,
2013
September 30,
2012
NJNG
Broker margin - Current assets
$
—

$
1,713

NJNG
Broker margin - Current (liabilities)
$
(10,805
)
$
—

NJRES
Broker margin - Current assets
$
42,930

$
20,216
Schedules of Concentration of Risk, by Risk Factor

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.
(Thousands)
Gross Credit Exposure
Investment grade
 
$
215,949

 
Noninvestment grade
 
4,333

 
Internally rated investment grade
 
44,515

 
Internally rated noninvestment grade
 
9,238

 
Total
 
$
274,035