Schedule I

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule I

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF INCOME

(In Thousands)

	2021		2020		2019
Management Service Fee Revenues	$	48,220	$	44,410	$	34,757
Operating Expenses:
Operations	46,870		47,241		42,481
Depreciation	1,020		801		646
Energy and Other Taxes	2,194		1,992		1,842
Total Operating Expenses	50,084		50,034		44,969
Operating Loss	(1,864)		(5,624)		(10,212)
Other Income:
Equity in Earnings of Subsidiaries	121,324		190,245		118,910
Other	6,236		18,191		10,863
Total Other Income	127,560		208,436		129,773
Interest Charges	55,192		56,692		58,956
Income Taxes	(18,010)		(11,177)		(16,584)
Income from Continuing Operations	88,514		157,297		77,189
Equity in Earnings of Discontinued Operations - Net of taxes	51		(255)		(272)
Net Income	88,565		157,042		76,917
Subtract/Add: Income (Loss) Attributable to Noncontrolling Interests	474		(42)		—
Net Income Attributable to South Jersey Industries, Inc.	$	88,091	$	157,084	$	76,917

The accompanying notes are an integral part of the condensed financial statements.

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

 

	2021		2020		2019
Net Income	$	88,565	$	157,042	$	76,917
Other Comprehensive Income (Loss) - Net of Tax
Postretirement Liability Adjustment, net of tax of $(4,426), $2,316, and $2,539, respectively	11,455		(5,692)		(6,498)
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, net of tax of $(14), $(12), and $(11), respectively	32		34		35
Total Other Comprehensive Income (Loss) - Net of Tax (A)	11,487		(5,658)		(6,463)
Comprehensive Income	$	100,052	$	151,384	$	70,454
Subtract/Add: Comprehensive Income (Loss) Attributable to Noncontrolling Interests	474		(42)		—
Comprehensive Income Attributable to South Jersey Industries, Inc.	$	99,578	$	151,426	$	70,454

The accompanying notes are an integral part of the condensed financial statements.

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF CHANGES IN EQUITY AND COMPREHENSIVE INCOME

(In Thousands)

	South Jersey Industries, Inc.
	Years Ended December 31, 2019, 2020 and 2021
		Common Stock		Premium on Common Stock		Treasury Stock		AOCL		Retained Earnings		Total South Jersey Industries, Inc. Equity		NCI		Total
Balance at January 1, 2019		$	106,883	$	843,268	$	(292)	$	(26,095)	$	343,258	$	1,267,022	$	—	$	1,267,022
Net Income		—		—		—		—		76,917		76,917		—		76,917
Other Comprehensive Loss, Net of Tax		—		—		—		(6,463)		—		(6,463)		—		(6,463)
Common Stock Issued or Granted Through Equity Offering or Stock Plans		8,610		184,634		3		—		—		193,247		—		193,247
Cash Dividends Declared - Common Stock ($1.16 per share)		—		—		—		—		(106,938)		(106,938)		—		(106,938)
Balance at December 31, 2019		115,493		1,027,902		(289)		(32,558)		313,237		1,423,785		—		1,423,785
Net Income		—		—		—		—		157,084		157,084		(42)		157,042
Other Comprehensive Loss, Net of Tax		—		—		—		(5,658)		—		(5,658)		—		(5,658)
Common Stock Issued or Granted Through Equity Offering or Stock Plans		10,247		190,098		(32)		—		—		200,313		—		200,313
Cash Dividends Declared - Common Stock ($1.19 per share)		—		—		—		—		(114,643)		(114,643)		—		(114,643)
Capital Contributions of Noncontrolling Interest in Subsidiary		—		—		—		—		—		—		6,037		6,037
Balance at December 31, 2020		125,740		1,218,000		(321)		(38,216)		355,678		1,660,881		5,995		1,666,876
Net Income		—		—		—		—		88,091		88,091		474		88,565
Other Comprehensive Income, Net of Tax		—		—		—		11,487		—		11,487		—		11,487
Common Stock Issued or Granted Through Equity Offering or Stock Plans		20,935		410,538		34		—		—		431,507		—		431,507
Contract Liability Adjustment		—		(69,478)		—		—		—		(69,478)		—		(69,478)
Cash Dividends Declared - Common Stock ($1.22 per share)		—		—		—		—		(133,336)		(133,336)		—		(133,336)
Capital Contributions of Noncontrolling Interests in Subsidiaries		—		—		—		—		—		—		3,820		3,820
Balance at December 31, 2021		$	146,675	$	1,559,060	$	(287)	$	(26,729)	$	310,433	$	1,989,152	$	10,289	$	1,999,441

 The accompanying notes are an integral part of the condensed financial statements.

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31,

(In Thousands)

	2021		2020		2019
CASH USED IN OPERATING ACTIVITIES	$	(118,847)	$	(246,530)	$	(12,039)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (Advances to) Repayments from Associated Companies	(51,572)		124,140		(42,084)
Capital Expenditures	(19,230)		(12,961)		(29,944)
Other	—		56		1,865
Net Cash (Used in) Provided by Investing Activities	(70,802)		111,235		(70,163)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Issuance of Long-Term Debt	335,000		400,000		194,657
Principal Repayments of Long-Term Debt	(90,000)		(250,000)		(715,000)
Payments for Issuance of Long-Term Debt	(14,255)		(2,054)		(876)
Net (Repayments of) Borrowings from Short-Term Credit Facilities	(332,000)		(98,100)		496,100
Dividends on Common Stock	(133,336)		(114,643)		(106,938)
Proceeds from Sale of Common Stock	429,772		200,000		189,032
Payments for the Issuance of Common Stock	(2,322)		(2,409)		—
Capital Contributions of Noncontrolling Interests in Subsidiaries	3,820		6,037		—
Other	—		(1,023)		—
Net Cash Provided by Financing Activities	196,679		137,808		56,975
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	7,030		2,513		(25,227)
Cash, Cash Equivalents and Restricted Cash at Beginning of Year	2,620		107		25,334
Cash, Cash Equivalents and Restricted Cash at End of Year	$	9,650	$	2,620	$	107

The accompanying notes are an integral part of the condensed financial statements.

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED BALANCE SHEETS (In Thousands)

	2021		2020
Assets
Property Plant and Equipment:
Nonutility Property, Plant and Equipment, at cost	$	8,126	$	6,649
Accumulated Depreciation	(2,414)		(2,614)
Property, Plant and Equipment - Net	5,712		4,035
Investments:
Investments in Subsidiaries	3,166,214		2,958,076
Available-for-Sale Securities	37		32
Total Investments	3,166,251		2,958,108
Current Assets:
Cash and Cash Equivalents	9,650		2,620
Receivable from Associated Companies	240,217		190,829
Accounts Receivable	44		43
Other	22,974		19,365
Total Current Assets	272,885		212,857
Other Noncurrent Assets	96,940		65,933
Total Assets	$	3,541,788	$	3,240,933
Capitalization and Liabilities
Equity:
Common Stock SJI
Par Value $1.25 a share
Authorized - 220,000,000 shares (2021 and 2020)
Outstanding Shares - 117,340,493 (2021) and 100,591,940 (2020)	$	146,675	$	125,740
Premium on Common Stock	1,559,060		1,218,000
Treasury Stock (at par)	(287)		(321)
Accumulated Other Comprehensive Loss	(26,729)		(38,216)
Retained Earnings	310,433		355,678
Total South Jersey Industries, Inc. Equity	1,989,152		1,660,881
Noncontrolling Interests	10,289		5,995
Total Equity	1,999,441		1,666,876
Long-Term Debt	1,255,089		964,602
Current Liabilities:
Notes Payable - Banks	143,000		475,000
Current Portion of Long-Term Debt	35,000		90,000
Payable to Associated Companies	1,121		3,305
Accounts Payable	5,675		6,112
Other Current Liabilities	47,893		23,396
Total Current Liabilities	232,689		597,813
Other Noncurrent Liabilities	54,569		11,642
Total Capitalization and Liabilities	$	3,541,788	$	3,240,933

The accompanying notes are an integral part of the condensed financial statements.

 Notes to Condensed Financial Statements

1.BASIS OF PRESENTATION:

Pursuant to rules and regulations of the SEC, the parent company only condensed financial statements of SJI do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP in the United States. Therefore, these condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included under Item 8 in this Form 10-K.

Dividends were not received from subsidiaries in 2021, 2020 or 2019.

On July 1, 2021, pursuant to an intercompany rental agreement, SJG (the lessor) gave possession of the Company's corporate headquarters in Folsom, NJ to SJI (the lessee), This lease is classified as an operating lease by SJI with a lease term of 10 years, which includes the noncancelable period of 5 years plus the first 5-year renewal option. There are nine additional options to renew the lease after the original term expires, totaling an additional 45 years. if renewed. After considering various entity, contract, asset and market factors, SJI concluded that the least term is 10 years as it is not reasonably certain that SJI will exercise renewal options past that point. This resulted in the recognition of an ROU asset and liability, each of $16.8 million, recorded in Other Noncurrent Assets and Other Noncurrent Liabilities, respectively. The weighted average discount rate used for this lease was 3.0% as of December 31, 2021. See additional information in Note 9 to the consolidated financial statements.