INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

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 the following reasons (in thousands):



	2015			2014			2013

Tax at Statutory Rate	$	37,440		$	35,727		$	22,181
Increase (Decrease) Resulting from:
State Income Taxes	3,985			1,960			971
ESOP Dividend	(1,298		)	(1,232		)	(1,176		)
Amortization of Investment Tax Credits - Utility	(149		)	(211		)	(258		)
AFUDC	(1,109		)	(1,481		)	(916		)
Investment and Other Tax Credits	(37,503		)	(30,661		)	(38,179		)
Other - Net	(6		)	347			(1,637		)
Income Taxes:
Continuing Operations	1,360			4,449			(19,014		)
Discontinued Operations	(257		)	(312		)	(426		)
Total Income Tax Expense (Benefit)	$	1,103		$	4,137		$	(19,440	)

The provision for Income Taxes is comprised of the following (in thousands):

	2015			2014			2013
Current:
Federal	$	—		$	(62	)	$	(273	)
State	(2,352		)	3,052			3,066
Total Current	(2,352		)	2,990			2,793
Deferred:
Federal	(4,622		)	1,707			(19,978		)
State	8,483			(37		)	(1,571		)
Total Deferred	3,861			1,670			(21,549		)
Investment Tax Credit - Utility	(149		)	(211		)	(258		)
Income Taxes:
Continuing Operations	1,360			4,449			(19,014		)
Discontinued Operations	(257		)	(312		)	(426		)
Total Income Tax Expense (Benefit)	$	1,103		$	4,137		$	(19,440	)

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 at December 31 (in thousands):



	2015		2014
Deferred Tax Assets:
Net Operating Loss Carryforward	$	195,358	$	157,174
Investment and Other Tax Credits	200,491		154,805
Derivatives / Unrealized Gain	5,652		12,554
Conservation Incentive Program	—		2,027
Deferred State Tax	24,833		21,548
Investment Tax Credit Basis Gross-Up	—		77
Pension & Other Post Retirement Benefits	29,998		34,892
Deferred Revenues	4,924		11,647
Provision for Uncollectibles	4,200		6,296
Other	6,448		6,734
Total Deferred Tax Asset	$	471,904	$	407,754

Deferred Tax Liabilities:
Book versus Tax Basis of Property	$	675,521	$	558,960
Deferred Gas Costs - Net	3,998		22,959
Environmental Remediation	19,207		12,147
Deferred Regulatory Costs	566		6,333
Budget Billing - Customer Accounts	830		1,138
Deferred Pension & Other Post Retirement Benefits	42,216		39,891
Conservation Incentive Program	1,132		—
Equity In Loss Of Affiliated Companies	9,111		39,230
Other	15,268		13,868
Total Deferred Tax Liability	$	767,849	$	694,526

Deferred Tax Liability - Net	$	295,945	$	286,772

Current Deferred Tax Asset	$	—	$	(57,748	)
Noncurrent Deferred Tax Liability	295,945		344,520
Deferred Tax Liability - Net	$	295,945	$	286,772

Summary of operating loss carryforward

As of December 31, 2015, SJI has the following federal and state net operating loss carryforwards (in thousands):



	Net Operating Loss Carryforwards
Expire in:	Federal		State
2031	$	163,880	$	45,866
2032	43,724		19,356
2033	68,696		34,940
2034	117,325		28,622
2035	133,782		21,685
	$	527,407	$	150,469

Summary of tax credit carryforwards

As of December 31, 2015, SJI has the following investment tax credit carryforwards (in thousands):



Expire in:	Investment Tax Credit Carryforward
2030	$	11,628
2031	26,613
2032	32,071
2033	46,179
2034	38,727
2035	42,548
	$	197,766

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):



	2015		2014		2013
Balance at January 1,	$	552	$	547	$	503
Increase as a result of tax positions taken in prior years	7		5		44
Decrease due to a lapse in the statute of limitations	—		—		—
Settlements	—		—		—
Balance at December 31,	$	559	$	552	$	547