FAIR VALUE MEASUREMENTS

The following table for the Company categorizes the assets and liabilities in the Condensed Consolidated Balance Sheets that are accounted for at fair value on a recurring basis in periods subsequent to initial recognition:



	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of June 30, 2014
ASSETS
Gas Utility
U. S. Stock/Bond Mutual Funds	$	16.7	$	2.9	$	—	$	—		$	19.6
Natural gas contracts	5.2		3.2		—		(0.5		)	7.9
Gasoline and heating oil contracts	0.1		—		—		—			0.1
Subtotal	22.0		6.1		—		(0.5		)	27.6
Gas Marketing
Natural gas contracts	0.8		5.0		0.8		(2.0		)	4.6
Total	$	22.8	$	11.1	$	0.8	$	(2.5	)	$	32.2
LIABILITIES
Gas Utility
Natural gas contracts	$	4.0	$	0.9	$	—	$	(4.7	)	$	0.2
Gas Marketing
Natural gas contracts	0.8		1.3		—		(2.0		)	0.1
Other
Interest Rate Swaps	—		10.5		—		—			10.5
Total	$	4.8	$	12.7	$	—	$	(6.7	)	$	10.8



As of September 30, 2013
ASSETS
Gas Utility
U. S. Stock/Bond Mutual Funds	$	14.5	$	—	$	—	$	—		$	14.5
Natural gas contracts	1.5		0.2		—		(1.7		)	—
Gasoline and heating oil contracts	0.1		—		—		(0.1		)	—
Subtotal	16.1		0.2		—		(1.8		)	14.5
Gas Marketing
Natural gas contracts	2.8		1.5		0.2		(1.2		)	3.3
Total	$	18.9	$	1.7	$	0.2	$	(3.0	)	$	17.8
LIABILITIES
Gas Utility
Natural gas contracts	$	3.5	$	5.4	$	—	$	(3.7	)	$	5.2
Gas Marketing
Natural gas contracts	0.2		1.5		—		(1.0		)	0.7
Total	$	3.7	$	6.9	$	—	$	(4.7	)	$	5.9

The mutual funds included in Level 1 are valued based on exchange-quoted market prices of individual securities. Derivative instruments included in Level 1 are valued using quoted market prices on the NYMEX. Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using Over The Counter Bulletin Board (OTCBB), broker, or dealer quotation services whose prices are derived principally from, or are corroborated by, observable market inputs. Also included in Level 2 are certain derivative instruments that have values that are similar to, and correlate with, quoted prices for exchange-traded instruments in active markets. Derivative instruments included in Level 3 are valued using generally unobservable inputs that are based upon the best information available and reflect management’s assumptions about how market participants would price the asset or liability. The Company’s and Utility's policy is to recognize transfers between the levels of the fair value hierarchy, if any, as of the beginning of the interim reporting period in which circumstances change or events occur to cause the transfer.

There were no material Level 3 beginning and ending net derivative balances for the Company.

The mutual funds are included in the Other investments line of the Condensed Consolidated Balance Sheets and Balance Sheets for the Company and the Utility, respectively. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the Condensed Consolidated Balance Sheets and Balance Sheets for the Company and the Utility, respectively, when a legally enforceable netting agreement exists between the Company or the Utility and the counterparty to a derivative contract. For additional information on derivative instruments, see Note 8, Derivative Instruments and Hedging Activities.