INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate Reconciliation

Total income taxes applicable to operations differ from the tax that would have resulted by applying the statutory Federal income tax rate to pre-tax income for SJI and SJG for the following reasons (in thousands):

	2021		2020		2019
SJI (includes SJG and all other consolidated subsidiaries):
Tax at Statutory Rate	$	28,481	$	37,791	$	20,633
Increase (Decrease) Resulting from:
State Income Taxes	11,666		7,896		7,813
Federal and State Valuation Allowance	15,069		7,392		—
ESOP Dividend	(608)		(627)		(697)
Impairment on Investment in Equity Method Investee	4,172		—		—
AFUDC	(1,327)		(1,901)		(1,546)
Amortization of Excess Deferred Taxes	(5,354)		(6,174)		(3,475)
Investment and Other Tax Credits	(5,993)		(23,439)		(953)
Other - Net	1,001		1,726		(714)
Income Taxes:
Continuing Operations	47,107		22,664		21,061
Discontinued Operations	14		(66)		(70)
Total Income Tax Expense	$	47,121	$	22,598	$	20,991
SJG:
Tax at Statutory Rate	34,871		30,111		25,245
Increase (Decrease) Resulting from:
State Income Taxes	8,311		8,965		9,542
ESOP Dividend	(517)		(533)		(592)
AFUDC	(461)		(821)		(591)
Amortization of Excess Deferred Taxes	(3,075)		(3,154)		—
Other - Net	(715)		756		(782)
Total Income Tax Expense	38,414		35,324		32,822
The provision for income taxes is comprised of the following (in thousands):
SJI (includes SJG and all other consolidated subsidiaries):	2021		2020		2019

Current:
Federal	$	—	$	—	$	—
State	(235)		823		(482)
Total Current	(235)		823		(482)
Deferred:
Federal	31,209		3,312		11,171
State	16,133		18,529		10,372
Total Deferred	47,342		21,841		21,543
Income Taxes:
Continuing Operations	47,107		22,664		21,061
Discontinued Operations	14		(66)		(70)
Total Income Tax Expense (Benefit)	$	47,121	$	22,598	$	20,991
SJG:
Current:
Federal	$	—	$	—	$	—
State	—		—		—
Total Current	—		—		—
Deferred:
Federal	27,894		23,976		20,744
State	10,520		11,348		12,078
Total Deferred	38,414		35,324		32,822
Total Income Tax Expense	$	38,414	$	35,324	$	32,822

Schedule of Deferred Tax Assets and Liabilities

The net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes resulted in the following net deferred tax assets and liabilities for SJI and SJG at December 31 (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	2021		2020
Deferred Tax Assets:
Net Operating Loss Carryforward	$	179,518	$	141,252
Investment and Other Tax Credits	251,541		243,827
Deferred State Tax	30,567		24,338
Income Taxes Recoverable Through Rates	88,201		92,739
Pension & Other Post Retirement Benefits	16,575		34,558
Deferred Revenues	5,355		4,530
Provision for Uncollectibles	11,979		8,763

Other	15,461		17,691
Total Deferred Tax Asset	599,197		567,698
Valuation Allowance	(22,484)		(7,392)
Total Deferred Tax Asset, net of Valuation Allowance	$	576,713	$	560,306
Deferred Tax Liabilities:
Book versus Tax Basis of Property	$	586,081	$	512,357
Deferred Gas Costs - Net	14,102		13,737
Derivatives / Unrealized Gain	2,567		1,215
Environmental Remediation	49,378		50,262
Deferred Regulatory Costs	19,165		13,360
Budget Billing - Customer Accounts	6,310		5,248
Deferred Pension & Other Post Retirement Benefits	21,973		33,307
CIP	5,196		6,178
Equity In Loss Of Affiliated Companies	3,744		16,019
Goodwill Amortization	41,517		28,013
Other	8,176		8,977
Total Deferred Tax Liability	$	758,209	$	688,673
Deferred Tax Liability - Net	$	181,496	$	128,367
SJG:
Deferred Tax Assets:
Net Operating Loss and Tax Credits	$	27,688	$	35,301
Deferred State Tax	25,039		22,918
Provision for Uncollectibles	6,997		4,887
Income Taxes Recoverable Through Rates	54,900		58,573
Pension & Other Post Retirement Benefits	8,742		20,857
Deferred Revenues	5,479		4,739
Other	2,717		2,813
Total Deferred Tax Assets	$	131,562	$	150,088
Deferred Tax Liabilities:
Book Versus Tax Basis of Property	$	456,216	$	435,764
Deferred Fuel Costs - Net	18,015		10,189
Environmental Remediation	45,496		46,857
Deferred Regulatory Costs	17,209		15,087
Deferred Pension & Other Post Retirement Benefits	13,064		21,398
Budget Billing - Customer Accounts	6,310		5,248
Section 461 Prepayments	1,528		1,469
CIP	5,196		6,178
Other	11,930		11,507
Total Deferred Tax Liabilities	$	574,964	$	553,697
Deferred Tax Liability - Net	$	443,402	$	403,609

Summary of Operating Loss Carryforward

As of December 31, 2021, SJI has the following federal and state net operating loss carryforwards (in thousands):

	Net Operating Loss Carryforwards
Expire in:	Federal		State
2031	$	—	$	11,395
2032	21,541		3,108
2033	57,515		18,557
2034	107,043		13,658
2035	51,385		25,063
2036	102,256		126,344
2037	85,444		96,697
2038	—		127,846
2039	—		129,940
2040	—		82,476
2041	—		132,396
Indefinite	161,029		—
	$	586,213	$	767,480

Summary of Tax Credit Carryforwards

As of December 31, 2021, SJI has the following investment tax credit carryforwards (in thousands):

Expire in:	Investment Tax Credit Carryforwards
2030	$	11,628
2031	25,664
2032	32,031
2033	45,606
2034	37,699
2035	45,005
2036	11,744
2037	636
2038	93
2039	—
2040	23,814
2041	4,364
	$	238,284

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, is as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	2021		2020		2019
Balance at January 1,	$	2,372	$	1,566	$	1,147
Increase as a result of tax positions taken in prior years	14,611		806		419
Balance at December 31,	$	16,983	$	2,372	$	1,566
SJG:
Balance at January 1,	$	1,129	$	1,104	$	1,063
Increase as a result of tax position taken in prior years	14,023		25		41
Balance at December 31,	$	15,152	$	1,129	$	1,104