SEGMENTS OF BUSINESS

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS:

SJI operates in several different reportable operating segments which reflect the financial information regularly evaluated by the chief operating decision maker. These segments are as follows:

• Gas utility operations (SJG) consist primarily of natural gas distribution to residential, commercial and industrial customers.

• Wholesale energy operations include the activities of SJRG and SJEX.

• SJE is involved in both retail gas and retail electric activities.

◦ Retail gas and other operations include natural gas acquisition and transportation service business lines.

◦ Retail electric operations consist of electricity acquisition and transportation to commercial and industrial customers.

• On-Site energy production consists of Marina’s thermal energy facility and other energy-related projects. Also included in this segment are the activities of ACB, ACLE, BCLE, SCLE, SXLE, MCS, NBS and SBS. These entities became wholly-owned subsidiaries of Marina on December 31, 2015 (see Note 3). As such their activities are included only in the Identifiable Assets table below.

• Appliance service operations includes SJESP’s servicing of appliances under warranty via a subcontractor arrangement as well as on a time and materials basis.

• The activities of Midstream are a part of the Corporate & Services segment.

SJI groups its nonutility operations into two categories: Energy Group and Energy Services. Energy Group includes wholesale energy, retail gas and other, and retail electric operations. Energy Services includes on-site energy production and appliance service operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.  Intersegment sales and transfers are treated as if the sales or transfers were to third parties at current market prices.

Information about SJI’s operations in different reportable operating segments is presented below (in thousands):

	2015			2014			2013
Operating Revenues:
Gas Utility Operations	$	534,290		$	501,875		$	446,480
Energy Group:
Wholesale Energy Operations	129,098			77,048			831
Retail Gas and Other Operations	87,198			127,001			107,748
Retail Electric Operations	150,049			123,773			128,932
Subtotal Energy Group	366,345			327,822			237,511
Energy Services:
On-Site Energy Production	63,665			56,129			43,551
Appliance Service Operations	11,186			10,518			13,723
Subtotal Energy Services	74,851			66,647			57,274
Corporate & Services	31,156			30,174			31,286
Subtotal	1,006,642			926,518			772,551
Intersegment Sales	(47,074		)	(39,522		)	(41,130		)
Total Operating Revenues	$	959,568		$	886,996		$	731,421

	2015			2014			2013
Operating Income:
Gas Utility Operations	$	119,585		$	113,690		$	105,822
Energy Group:
Wholesale Energy Operations	35,024			9,493			(37,720		)
Retail Gas and Other Operations	(3,218		)	479			278
Retail Electric Operations	1,042			(466		)	(98		)
Subtotal Energy Group	32,848			9,506			(37,540		)
Energy Services:
On-Site Energy Production	2,027			2,560			(2,011		)
Appliance Service Operations	468			362			2,995
Subtotal Energy Services	2,495			2,922			984
Corporate and Services	1,966			1,485			370
Total Operating Income	$	156,894		$	127,603		$	69,636
Depreciation and Amortization:
Gas Utility Operations	$	58,668		$	52,155		$	48,261
Energy Group:
Wholesale Energy Operations	435			168			206
Retail Gas and Other Operations	161			83			93
Subtotal Energy Group	596			251			299
Energy Services:
On-Site Energy Production	30,242			25,020			15,192
Appliance Service Operations	316			269			261
Subtotal Energy Services	30,558			25,289			15,453
Corporate and Services	1,220			816			877
Total Depreciation and Amortization	$	91,042		$	78,511		$	64,890
Interest Charges:
Gas Utility Operations	$	19,906		$	17,872		$	12,550
Energy Group:
Wholesale Energy Operations	441			371			417
Retail Gas and Other Operations	185			267			280
Subtotal Energy Group	626			638			697
Energy Services:
On-Site Energy Production	8,169			8,723			4,480
Corporate and Services	11,822			8,803			6,004
Subtotal	40,523			36,036			23,731
Intersegment Borrowings	(8,901		)	(6,476		)	(4,906		)
Total Interest Charges	$	31,622		$	29,560		$	18,825

	2015			2014			2013
Income Taxes:
Gas Utility Operations	$	36,945		$	34,895		$	34,833
Energy Group:
Wholesale Energy Operations	14,410			4,822			(15,070		)
Retail Gas and Other Operations	(978		)	787			434
Retail Electric Operations	426			(190		)	(40		)
Subtotal Energy Group	13,858			5,419			(14,676		)
Energy Services:
On-Site Energy Production	(49,225		)	(36,404		)	(40,755		)
Appliance Service Operations	186			223			1,237
Subtotal Energy Services	(49,039		)	(36,181		)	(39,518		)
Corporate and Services	(404		)	316			347
Total Income Taxes	$	1,360		$	4,449		$	(19,014	)
Property Additions:
Gas Utility Operations	$	218,260		$	201,737		$	173,099
Energy Group:
Wholesale Energy Operations	382			18			50
Retail Gas and Other Operations	2,053			1,421			702
Subtotal Energy Group	2,435			1,439			752
Energy Services:
On-Site Energy Production (1)	139,018			132,214			151,592
Appliance Service Operations	379			84			—
Subtotal Energy Services	139,397			132,298			151,592
Corporate and Services	1,902			3,995			3,061
Total Property Additions	$	361,994		$	339,469		$	328,504

(1) The property additions for On-Site Energy Production do not include the approximately $40.9 million of Property, Plant and Equipment obtained through the acquisition of eight Energenic projects as discussed in Note 3.

	2015			2014
Identifiable Assets:
Gas Utility Operations	$	2,288,204		$	2,185,672
Energy Group:
Wholesale Energy Operations	231,660			366,119
Retail Gas and Other Operations	55,111			53,073
Retail Electric Operations	55,528			23,682
Subtotal Energy Group	342,299			442,874
Energy Services:
On-Site Energy Production	791,236			675,937
Appliance Service Operations	4,885			3,105
Subtotal Energy Services	796,121			679,042
Discontinued Operations	1,545			1,758
Corporate and Services	653,659			527,691
Intersegment Assets	(600,928		)	(487,612		)
Total Identifiable Assets	$	3,480,900		$	3,349,425