NOTES TO FINANCIAL STATEMENTS
The New Jersey Resources Corporation Employees’ Retirement Savings Plan (the Plan) is administered through a Benefits Administration Committee (the Plan Administrator) appointed by New Jersey Resources Corporation’s (the Company, NJR or the Sponsor) Board of Directors and is administered in accordance with the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
The following description of the Plan is provided for general information only. Participants should refer to the Plan document for more complete information.
The Plan is a defined contribution plan. The Plan provides a savings component and had provided an employee stock ownership plan component, as described below.
Savings Component
General
The savings component provides for deferred pre-tax contributions, after-tax contributions, catch-up contributions, an employer special contribution and Company matching contributions.
All permanent employees of the Company and its subsidiaries who have completed 30 days of service are eligible to participate on a voluntary basis. Eligible employees are automatically enrolled in the plan and their pre-tax contributions are automatically escalated each year up to 6 percent. Payroll deductions begin with the first available pay period following the completion of 30 days of service, unless the employee elects not to participate.
Contributions and Vesting
As directed by the Plan Administrator, contributions by employees and the Company are transferred to T. Rowe Price (the Trustee) and held in the Plan’s trust fund for investment and allocation to participants’ accounts.
Employee Contributions
Under the savings component, eligible employees may make contributions of between
1 percent
and
50 percent
of base compensation, as defined by the Plan, which shall be permitted as either pre-tax or after-tax contributions provided that they are within the calendar year elective deferral limit in effect for 401(k) contributions in accordance with the Internal Revenue Code (IRC). The elective deferral limit for pre-tax contributions was $
18,000
for both
2017
and
2016
. In addition, employees who have both reached the minimum age of 50 and the elective deferral limit by the end of the plan year, may elect to make pre-tax non-matchable catch-up contributions. During the plan years ended
December 31, 2017
and
2016
, the Internal Revenue Service allowed catch-up contributions of up to
$6,000
. The total contribution by any participant may not exceed
$54,000
for
2017
and
$53,000
for
2016
, except for those who have attained age 50, and then the total contribution by participant may not exceed
$60,000
and
$59,000
, respectively. Contributions by employees are made primarily through payroll deductions. The Plan also accepts qualified roll-over contributions from eligible employees. The participants’ contributions, plus actual earnings thereon, are fully vested at all times.
Employer Matching Contributions
For
2017
and
2016
, the Company contributed an amount equal to
65 percent
of the first
6 percent
of the pre-tax and/or after-tax participant contributions, subject to certain exceptions as described in the Plan. The Company’s contribution related to those employees was approximately
$3 million
and
$2.8 million
for
2017
and
2016
, respectively.
Employer Special Contributions
Non-transition union employees of NJR Home Services, an affiliated company, all union employees hired on or after January 1, 2012, and all non-represented employees hired on or after October 1, 2009, are not covered by the Company’s
defined benefit plans. For these employees, the Company contributes an amount equal to
3 percent
of base compensation for employees with less than five years but more than one year of service and
4 percent
of base compensation for employees with five or more years of service. Eligibility begins after one year of employment, and the contribution is made by March 31 of the year following the completion of one year of employment. The Company contributed
$385,560
and
$331,068
related to the represented employees and
$573,064
and
$449,744
related to the non-represented employees for
2017
and
2016
, respectively.
The employer special contribution for the represented employees stated herein is invested automatically into the Plan’s Stable Value Fund, and may subsequently be directed by the participant into the Plan’s qualified default investment. The annual contribution for the non-represented employees stated herein is invested automatically into the Plan’s default investment and may subsequently be directed by the participant into any of the other investment options available under the Plan. Effective March 28, 2016, the Plan’s default investment was changed from the T. Rowe Price Balanced Fund to various T. Rowe Price Retirement Year Funds, which are based on the participants’ year of birth.
Employer special contributions are not eligible for loans or in-service withdrawals and may only be distributed upon termination, retirement or death.
Vesting
Employer matching and special contributions vest on the basis of service as follows:
25 percent
after two years,
50 percent
after three years,
75 percent
after four years, and
100 percent
after five years. Contributions are subject to limitations. Employee contributions vest at 100 percent when made.
Payment of Benefits
Prior to retirement or termination of service with the Company, participants may withdraw their contributions from the Plan subject to certain limitations. Participants may not withdraw the Company’s contributions until they become vested. Withdrawal of participants’ pre-tax funds may generally be made only upon disability, hardship or the attainment of age 59-1/2.
Distributions made upon retirement or death may be made either in a lump sum or in equal installments over a period not to exceed five years. All other distributions are made in a lump sum payment.
Notes Receivable from Participants
The Plan may loan to a participant an amount that shall not exceed the lesser of
50 percent
of the value of the vested portion of such participant’s account, or
$50,000
. The minimum participant loan must be for
$1,000
and no participant may have more than two loans outstanding at any time. No loan shall be for a term of more than five years except for loans used to acquire the participant’s principal residence, which term shall not exceed ten years. The loans are secured by the balance in the participant’s account. Notes receivable from participants are valued at their principal balance plus accrued unpaid interest.
Principal and interest are paid ratably through payroll deductions. A participant may repay any such loan in full by check at any time in accordance with such rules as may be prescribed by the Plan Administrator. Payments of principal and interest on loans shall be credited to the participant’s account(s) from which the loan was funded and shall be reinvested in investment funds in accordance with the participant’s then current investment selection.
The interest rate for loans will be 1 percent above the prime rate reported in the Wall Street Journal or such other rate as is prescribed by the Plan Administrator based on periodic re-evaluations of the adequacy of such rate. The fixed rate of interest shall apply to the term of each loan. Interest rates ranged from
4.25 percent to 5.25 percent
at
December 31, 2017
.
Participant Accounts
Individual accounts are maintained for each plan participant. Each participant’s account is credited with the participant’s contribution, Company’s matching contribution, employer special contributions, loan repayments, if applicable, and plan earnings, and charged with withdrawals and an allocation of plan losses and administrative expenses that are paid by the Plan. Allocations are based on participant earnings or account balances, or specific participant transactions, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
Investments
Participants direct the investment of their contributions into various investment options offered by the Plan. Except as previously noted, Company contributions are invested at the same percentage in the same investment options as the participant directed investments, including NJR stock. The Plan currently offers various investment options for participants.
Forfeited Accounts
Forfeitures are used to reduce Company contributions. At
December 31, 2017
and
2016
, forfeited non-vested accounts balance totaled
$5,632
and
$3,468
, respectively. During the years ended
December 31, 2017
and
2016
, Company contributions were reduced by
$60,293
and
$52,256
, respectively, from forfeited, non-vested accounts.
Employee Stock Ownership Plan Component (ESOP)
General
The Plan’s ESOP, which is no longer available for participant contributions effective January 1, 1996, includes amounts held by the Plan Trustee in Company stock (NJR Common Stock). All participants’ respective shares of NJR Common Stock are 100 percent vested.
Payment of Benefits/Diversification
Distributions to ESOP participants may be made in the case of separation of service, and may be in the form of full shares of the Company’s common stock and cash in lieu of fractional shares. ESOP participants may also elect to receive their total distribution in cash. Effective January 1, 2006, ESOP participants were able to diversify all or part of their account balance into any of the other 401(k) plan investment options, including NJR Common Stock. If and when the participants make a transfer, they will be able to use these amounts for the allowable in-service withdrawals or participant loans.
Certain participants have the option to withdraw a portion of their ESOP accounts once a year after reaching age 55 and ten years of participation in the plan. This withdrawal option is offered annually to eligible participants until they reach age 59½.
In the event that a participant or beneficiary receives a distribution of shares of Company stock at a time when such Company stock is not readily tradable on an established market, then the following provisions shall apply:
|
|
|
|
|
The Company shall issue a “put option” to such participant or beneficiary. The put option shall provide the right to elect, at any time during the 60 day period following the date of such distribution or the first 60 days of the plan year immediately following the plan year in which the distribution is made, to sell such Company stock to the Company for an amount equal to the fair market value of such Company stock as of the most recent valuation date. The put option provision applies to both the ESOP and the NJR 401K stock.
|
Voting Rights
Each participant shall have the right, to the extent of the Company stock allocated to his accounts, to direct the Trustee by proxy, as to the manner in which to vote his shares on all matters shareholders of Company stock are entitled to vote. Best efforts must be utilized to distribute or cause to be distributed to each participant such information and proxy statements as will be distributed to shareholders of the Company. Unallocated shares of common stock, if any, held by the Trustee shall be voted by the Trustee in the same manner and in the same proportion as are those shares that are allocated to the accounts of the participants and the Trustee shall have no discretion in this matter. The Trustee shall not divulge to the Company the voting of any participant. The voting rights provision applies to both the ESOP and the NJR 401K stock. There were no unallocated NJR common stock shares as of
December 31, 2017
and
2016
.
Investment Income
The following amounts related to the ESOP were included in dividend income and net appreciation in fair value of investments, respectively, for the years ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Dividend income
|
$
|
979,416
|
|
|
$
|
944,031
|
|
|
Net appreciation in fair value of investments
|
$
|
4,587,180
|
|
|
$
|
2,475,929
|
|
|
|
|
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting.
Valuation of Investments and Income Recognition
The Plan’s investments are presented at fair value, which has been determined based on quoted market prices. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade date basis. Dividend income is recorded on the ex-dividend date; interest income is recorded as earned. Net appreciation includes gains and losses on investments bought and sold as well as held during the year.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
Administrative Expenses
Administrative expenses of the Plan were paid for by the Plan to the extent that they were not paid for by the Company.
In determining the amount of administrative expenses incurred by the Plan, T. Rowe Price provides the Plan with a fixed annual administrative budget that is measured by the rate of administrative fee payments for certain plan investment options. T. Rowe Price credits the Plan's Administrative Budget after each calendar quarter for administrative fee payments that exceed the established fee threshold, as defined. To the extent that the administrative fee payments payable to T. Rowe Price for any quarter do not meet the fixed annual administrative budget amount, the difference is owed to T. Rowe Price by the Plan and/or Plan Sponsor.
For the plan years 2017 and 2016, T. Rowe Price contributed
$69,729
and
$52,632
, respectively, to the Plan’s administrative budget account. During the year ended
December 31, 2017
, the Plan used
$96,157
of the administrative budget to off-set Plan expenses. The Plan did not use the administrative budget to off-set Plan expenses during the year ended
December 31, 2016
. As of
December 31, 2017
and
2016
, the balances of the administrative budget accounts were
$91,434
and
$117,282
, respectively.
Payment of Benefits
Benefit payments to participants are recorded when paid.
3. FAIR VALUE MEASUREMENTS
The Plan measures its investments at fair value on a recurring basis in accordance with accounting principles generally accepted in the United States of America. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework that the authoritative guidance establishes for measuring fair value includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.
The levels of the fair value hierarchy are as follows:
|
|
|
|
|
|
Level 1
|
Fair Value is based on unadjusted quoted prices in active markets that are accessible to the Plan for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.
|
|
|
|
|
Level 2
|
Fair Value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, quoted market prices in inactive markets for identical or similar assets, and other observable inputs.
|
|
|
|
|
Level 3
|
Fair Value would be based on significant unobservable inputs.
|
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at
December 31, 2017
and
2016
.
Mutual Funds
The Plan’s mutual funds are open-ended public investment vehicles, consisting of equity or fixed income securities. Mutual funds are valued at quoted market prices in active markets at year end. These investments are categorized within Level 1 of the hierarchy.
Stable Value Fund
Investments in common collective trusts during the plan year included the T. Rowe Price Stable Value fund (Stable Value Fund). Net Asset Value (NAV) per share for the Stable Value Fund is provided by the fund administrator and is based on the value of the underlying assets owned by the fund, minus liabilities, and then divided by the number of shares outstanding. NAV is computed daily as of the close of business each day by the Trustee for the fund. NAV is used as a practical expedient to estimate fair value. Participants’ withdrawals are unrestricted and are permitted daily at unit value. A full redemption of the Stable Value Fund by the Plan Sponsor may be subject to a holding period if sufficient liquidity does not exist.
NJR Stock
Participants can direct their contributions into NJR stock. In addition, as noted above, the Plan’s ESOP holds NJR stock. NJR Stock shares, which are valued at quoted market prices in active markets at year end, are categorized within Level 1 of the hierarchy.
The following tables summarize instruments measured at fair value on a recurring basis for the Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Market Prices in Active Markets for Identical Assets
|
Other Significant Observable Inputs
|
Significant Unobservable Inputs
|
|
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
Total
|
|
As of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds
|
|
$
|
128,340,866
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
128,340,866
|
|
|
NJR stock
|
|
70,313,679
|
|
|
|
—
|
|
|
|
—
|
|
|
70,313,679
|
|
|
Total assets in the fair value hierarchy
|
|
198,654,545
|
|
|
|
—
|
|
|
|
—
|
|
|
198,654,545
|
|
|
Investments measured at net asset value
(1)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
25,607,201
|
|
|
Total investments at fair value
|
|
$
|
198,654,545
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
224,261,746
|
|
|
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds
|
|
$
|
101,617,946
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
101,617,946
|
|
|
NJR stock
|
|
63,480,762
|
|
|
|
—
|
|
|
|
—
|
|
|
63,480,762
|
|
|
Total assets in the fair value hierarchy
|
|
165,098,708
|
|
|
|
—
|
|
|
|
—
|
|
|
165,098,708
|
|
|
Investments measured at net asset value
(1)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
25,261,833
|
|
|
Total investments at fair value
|
|
$
|
165,098,708
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
190,360,541
|
|
|
|
|
|
(1)
|
In accordance with Subtopic 820-10, certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the Statement of Net Assets Available for Benefits.
|
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. During the years ended
December 31, 2017
and
2016
, there were no transfers between levels.
The following table summarizes investments for which fair value is measured using NAV per share practical expedient as of
December 31, 2017
and
2016
, respectively. There are no participant redemption restrictions for these investments; the redemption notice period is applicable only to the Plan.
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
Unfunded Commitments
|
Redemption Frequency (if Currently Eligible)
|
Redemption Notice Period
|
|
As of December 31, 2017:
|
|
|
|
|
|
Stable Value Fund
|
$
|
25,607,201
|
|
n/a
|
Daily
|
12 months
|
|
|
|
|
|
|
|
As of December 31, 2016:
|
|
|
|
|
|
Stable Value Fund
|
$
|
25,261,833
|
|
n/a
|
Daily
|
12 months
|
The Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year)
appreciated
in value by approximately
$23.3 million
and
$9.3 million
during the years ended
December 31, 2017
and
2016
, respectively.
Non-Participant Directed Investments
Information about the net assets at fair value and the significant components of the changes in net assets relating to the non-participant-directed investments as of
December 31, 2017
and
2016
, and for the years then ended is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Net assets:
|
2017
|
|
2016
|
|
NJR Common Stock ESOP
|
$
|
36,668,404
|
|
|
$
|
33,870,481
|
|
|
T. Rowe Price Stable Value Fund
|
1,627,830
|
|
|
1,376,964
|
|
|
T. Rowe Price Retirement Year Funds
|
1,372,340
|
|
|
778,353
|
|
|
Total non-participant directed investments
|
$
|
39,668,574
|
|
|
$
|
36,025,798
|
|
|
|
|
|
|
|
Changes in net assets:
|
|
|
|
|
|
|
|
|
|
NJR Common Stock ESOP
|
|
|
|
|
Dividend income
|
$
|
979,416
|
|
|
$
|
944,031
|
|
|
Net appreciation in fair value of investments
|
4,587,180
|
|
|
2,475,929
|
|
|
Benefits paid to participants
|
(2,463,087
|
)
|
|
(1,153,568
|
)
|
|
Transfers to participant-directed investments
|
(305,586
|
)
|
|
(597,400
|
)
|
|
Net change
|
2,797,923
|
|
|
1,668,992
|
|
|
NJR Common Stock ESOP - beginning of year
|
33,870,481
|
|
|
32,201,489
|
|
|
NJR Common Stock ESOP - end of year
|
$
|
36,668,404
|
|
|
$
|
33,870,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
T. Rowe Price Stable Value Fund
|
|
|
|
|
Net appreciation in fair value of investments
|
$
|
29,613
|
|
|
$
|
23,807
|
|
|
Employer contributions
|
331,068
|
|
|
279,091
|
|
|
Benefits paid to participants
|
(109,778
|
)
|
|
(56,548
|
)
|
|
Administrative expenses
|
(37
|
)
|
|
(20
|
)
|
|
Net change
|
250,866
|
|
|
246,330
|
|
|
T. Rowe Price Stable Value Fund - beginning of year
|
1,376,964
|
|
|
1,130,634
|
|
|
T. Rowe Price Stable Value Fund - end of year
|
$
|
1,627,830
|
|
|
$
|
1,376,964
|
|
|
|
|
|
|
|
T. Rowe Price Balanced Fund
|
|
|
|
|
Net depreciation in fair value of investments
|
$
|
—
|
|
|
$
|
(1,178
|
)
|
|
Employer contributions
|
—
|
|
|
291,840
|
|
|
Benefits paid to participants
|
—
|
|
|
(764,406
|
)
|
|
Net change
|
—
|
|
|
(473,744
|
)
|
|
T. Rowe Price Balanced Fund - beginning of year
|
—
|
|
|
473,744
|
|
|
T. Rowe Price Balanced Fund - end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
T. Rowe Price Retirement Year Funds
|
|
|
|
|
Net appreciation in fair value of investments
|
$
|
211,020
|
|
|
$
|
61,876
|
|
|
Employer contributions
|
449,745
|
|
|
—
|
|
|
Transfers
|
(28,078
|
)
|
|
732,245
|
|
|
Benefits paid to participants
|
(38,700
|
)
|
|
(15,768
|
)
|
|
Net change
|
593,987
|
|
|
778,353
|
|
|
T. Rowe Price Retirement Year Funds - beginning of year
|
778,353
|
|
|
—
|
|
|
T. Rowe Price Retirement Year Funds - end of year
|
$
|
1,372,340
|
|
|
$
|
778,353
|
|
|
|
|
|
5.
|
FEDERAL INCOME TAX STATUS
|
The Internal Revenue Service (IRS) has determined and informed the Company by a letter dated December 18, 2013, that the Plan and related trust were designed as “qualified” in accordance with the applicable sections of the IRC. Although the Plan has been amended since the receipt of the determination letter, the Plan Administrator and the Plan’s
tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC, and that the Plan and the related trust continue to be tax-exempt.
Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
|
|
|
|
6.
|
RISKS AND UNCERTAINTIES
|
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefit.
As of
December 31, 2017
and
2016
, the Plan had approximately
$95.9 million
and
$88.7 million
, respectively, that was concentrated in three investments.
Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its matching contributions, as well as the special contributions, at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event that the Plan is terminated, participants would become 100 percent vested in their accounts, including unvested Company contributions.
|
|
|
|
8.
|
RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
|
The financial statements have been prepared on the accrual basis in conformity with generally accepted accounting principles in the United States of America. The Form 5500 is presented on the cash basis.
The following are reconciliations of net assets available for benefits and increase in net assets per the financial statements to the Form 5500 for the years ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Net assets available for benefits per the financial statements
|
$
|
229,385,063
|
|
|
$
|
195,373,413
|
|
|
Less: Amounts due from employer per the financial statements
|
(958,624
|
)
|
|
(780,812
|
)
|
|
Less: Amounts due from participants per the financial statements
|
(4,905
|
)
|
|
—
|
|
|
Net assets available for benefits per Form 5500
|
$
|
228,421,534
|
|
|
$
|
194,592,601
|
|
|
|
|
|
|
|
Contributions received from employer per the financial statements
|
$
|
3,993,390
|
|
|
$
|
3,614,293
|
|
|
Less: Current year contributions receivable from employer per the financial statements
|
(958,624
|
)
|
|
(780,812
|
)
|
|
Add: Prior year contributions receivable from employer per the financial statements
|
780,812
|
|
|
570,932
|
|
|
Contributions received from employer per Form 5500
|
$
|
3,815,578
|
|
|
$
|
3,404,413
|
|
|
|
|
|
|
|
Contributions received from participants per the financial statements
|
$
|
8,236,705
|
|
|
$
|
7,606,377
|
|
|
Less: Current year contributions receivable from participants per the financial statements
|
(4,905
|
)
|
|
—
|
|
|
Contributions received from participants per Form 5500
|
$
|
8,231,800
|
|
|
$
|
7,606,377
|
|
|
|
|
|
|
|
Increase in net assets per the financial statements
|
$
|
34,011,650
|
|
|
$
|
18,734,465
|
|
|
Less: Changes in amounts due from employer*
|
(177,812
|
)
|
|
(209,880
|
)
|
|
Less: Changes in amounts due from participants**
|
(4,905
|
)
|
|
—
|
|
|
Net income per Form 5500
|
$
|
33,828,933
|
|
|
$
|
18,524,585
|
|
|
|
|
|
*
|
Included in contributions from employer in Statements of Changes in Net Assets Available for Benefits.
|
|
|
|
|
**
|
Included in contributions from participants in Statements of Changes in Net Assets Available for Benefits.
|
|
|
|
|
9.
|
EXEMPT PARTY-IN-INTEREST TRANSACTIONS
|
Certain plan investments are shares of mutual funds managed by the Trustee of the Plan. T. Rowe Price is the Plan Trustee and certain plan assets are invested in the T. Rowe Price Common Trust Funds, the Plan also issues loans to participants, which are secured by the participants’ account balance. These transactions qualify as exempt party-in-interest transactions. Fees paid by the Plan to the Trustees amounted to
$120,787
and
$22,213
for the years ended
December 31, 2017
and
2016
, respectively.
At
December 31, 2017
and
2016
, the Plan held
1,749,097
and
1,788,190
shares of NJR Stock, respectively, with a fair value of approximately
$70.3 million
and
$63.5 million
, respectively. The Plan recorded dividend income from Company common stock of approximately
$1.8 million
and
$1.7 million
during the years ended
December 31, 2017
and
2016
, respectively.
Certain employees and officers of the Company, who may also be participants in the Plan, perform administrative services to the Plan at no cost to the Plan. These party-in-interest transactions are not deemed prohibited because they are covered by statutory or administrative exemptions from the IRC and ERISA’s rules on prohibited transactions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW JERSEY RESOURCES CORPORATION
|
|
Plan Number 005
|
|
|
EMPLOYEES’ RETIREMENT SAVINGS PLAN
|
|
Tax ID Number 22-2376465
|
|
|
|
|
|
|
|
|
|
FORM 5500, SCHEDULE H, PART IV, LINE 4i---
|
|
|
|
|
|
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
|
|
|
|
|
AS OF DECEMBER 31, 2017
|
|
|
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
|
(e)
|
|
|
Lessor, or Similar Party Identity of Issue, Borrower
|
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, and Par or Maturity Value
|
Cost
|
|
Current Value
|
|
|
|
|
|
|
|
|
|
Participant Directed:
|
|
|
|
|
|
*
|
T. Rowe Price Retirement 2005 Fund
|
Mutual Fund
|
$ **
|
|
$
|
8,677
|
|
|
*
|
T. Rowe Price Retirement 2010 Fund
|
Mutual Fund
|
**
|
|
|
522,189
|
|
|
*
|
T. Rowe Price Retirement 2015 Fund
|
Mutual Fund
|
**
|
|
|
1,555,015
|
|
|
*
|
T. Rowe Price Retirement 2020 Fund
|
Mutual Fund
|
**
|
|
|
5,835,173
|
|
|
*
|
T. Rowe Price Retirement 2025 Fund
|
Mutual Fund
|
**
|
|
|
6,936,159
|
|
|
*
|
T. Rowe Price Retirement 2030 Fund
|
Mutual Fund
|
**
|
|
|
7,807,318
|
|
|
*
|
T. Rowe Price Retirement 2035 Fund
|
Mutual Fund
|
**
|
|
|
5,733,024
|
|
|
*
|
T. Rowe Price Retirement 2040 Fund
|
Mutual Fund
|
**
|
|
|
2,614,055
|
|
|
*
|
T. Rowe Price Retirement 2045 Fund
|
Mutual Fund
|
**
|
|
|
2,365,261
|
|
|
*
|
T. Rowe Price Retirement 2050 Fund
|
Mutual Fund
|
**
|
|
|
1,569,053
|
|
|
*
|
T. Rowe Price Retirement 2055 Fund
|
Mutual Fund
|
**
|
|
|
985,904
|
|
|
*
|
T. Rowe Price Retirement 2060 Fund
|
Mutual Fund
|
**
|
|
|
98,560
|
|
|
*
|
T. Rowe Price Government Money Fund
|
Mutual Fund
|
**
|
|
|
136,314
|
|
|
|
Prudential Total Return Bond Fund Class Q
|
Mutual Fund
|
**
|
|
|
8,992,523
|
|
|
|
Harbor Capital Appreciation Fund
|
Mutual Fund
|
**
|
|
|
8,950,344
|
|
|
*
|
T. Rowe Price Stable Value Fund
|
Common Trust Fund
|
**
|
|
|
23,979,371
|
|
|
|
Vanguard Institutional Index
|
Mutual Fund
|
**
|
|
|
20,123,636
|
|
|
|
Vanguard Small Cap Index, Admiral
|
Mutual Fund
|
**
|
|
|
7,689,365
|
|
|
|
Vanguard Windsor II Fund
|
Mutual Fund
|
**
|
|
|
16,434,915
|
|
|
*
|
T. Rowe Price Small Cap Value Fund
|
Mutual Fund
|
**
|
|
|
7,743,492
|
|
|
|
American Funds Capital World Growth and Income Fund
|
Mutual Fund
|
**
|
|
|
11,654,167
|
|
|
|
Dodge & Cox International Stock Fund
|
Mutual Fund
|
**
|
|
|
9,213,388
|
|
|
*
|
NJR Common Stock 401(k)
|
Common Stock
|
**
|
|
|
33,645,275
|
|
|
|
|
|
|
|
|
|
|
Non-Participant Directed:
|
|
|
|
|
|
*
|
NJR Common Stock ESOP
|
Common Stock
|
23,163,431
|
|
|
36,668,404
|
|
|
*
|
T. Rowe Price Stable Value Fund
|
Common Trust Fund
|
1,627,830
|
|
|
1,627,830
|
|
|
*
|
T. Rowe Price Retirement 2010 Fund
|
Mutual Fund
|
13,298
|
|
|
13,944
|
|
|
*
|
T. Rowe Price Retirement 2015 Fund
|
Mutual Fund
|
25,326
|
|
|
27,127
|
|
|
*
|
T. Rowe Price Retirement 2020 Fund
|
Mutual Fund
|
46,709
|
|
|
51,726
|
|
|
*
|
T. Rowe Price Retirement 2025 Fund
|
Mutual Fund
|
179,867
|
|
|
203,423
|
|
|
*
|
T. Rowe Price Retirement 2030 Fund
|
Mutual Fund
|
301,727
|
|
|
348,013
|
|
|
*
|
T. Rowe Price Retirement 2035 Fund
|
Mutual Fund
|
210,921
|
|
|
245,543
|
|
|
*
|
T. Rowe Price Retirement 2040 Fund
|
Mutual Fund
|
92,703
|
|
|
107,832
|
|
|
*
|
T. Rowe Price Retirement 2045 Fund
|
Mutual Fund
|
119,299
|
|
|
138,800
|
|
|
*
|
T. Rowe Price Retirement 2050 Fund
|
Mutual Fund
|
96,731
|
|
|
112,806
|
|
|
*
|
T. Rowe Price Retirement 2055 Fund
|
Mutual Fund
|
102,824
|
|
|
119,202
|
|
|
*
|
T. Rowe Price Retirement 2060 Fund
|
Mutual Fund
|
3,549
|
|
|
3,918
|
|
|
|
|
|
|
|
|
|
*
|
Notes receivable from participants
|
Interest rates of 4.25% - 5.25%
|
—
|
|
|
4,159,788
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,984,215
|
|
|
$
|
228,421,534
|
|
|
|
|
|
*
|
Party-in-interest as defined by ERISA.
|
|
|
|
|
**
|
Cost information is not required for participant-directed investment and, therefore, is not included.
|