SEGMENTS OF BUSINESS

3 Months Ended

Mar. 31, 2016

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, industrial and residential 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).

• 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 and 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):

	Three Months Ended March 31,
	2016			2015
Operating Revenues:
Gas Utility Operations	$	187,766		$	267,658
Energy Group:
Wholesale Energy Operations	65,074			35,345
Retail Gas and Other Operations	29,733			38,078
Retail Electric Operations	39,491			29,777
Subtotal Energy Group	134,298			103,200
Energy Services:
On-Site Energy Production	16,321			13,572
Appliance Service Operations	1,888			2,357
Subtotal Energy Services	18,209			15,929
Corporate and Services	8,876			9,086
Subtotal	349,149			395,873
Intersegment Sales	(16,114		)	(12,921		)
Total Operating Revenues	$	333,035		$	382,952

	Three Months Ended March 31,
	2016			2015
Operating Income:
Gas Utility Operations	$	75,773		$	73,189
Energy Group:
Wholesale Energy Operations	38,244			330
Retail Gas and Other Operations	(759		)	3,087
Retail Electric Operations	585			(182		)
Subtotal Energy Group	38,070			3,235
Energy Services:
On-Site Energy Production	(89		)	(482		)
Appliance Service Operations	44			(52		)
Subtotal Energy Services	(45		)	(534		)
Corporate and Services	455			481
Total Operating Income	$	114,253		$	76,371
Depreciation and Amortization:
Gas Utility Operations	$	15,626		$	14,167
Energy Group:
Wholesale Energy Operations	204			32
Retail Gas and Other Operations	85			20
Subtotal Energy Group	289			52
Energy Services:
On-Site Energy Production	9,919			7,051
Appliance Service Operations	84			74
Subtotal Energy Services	10,003			7,125
Corporate and Services	223			242
Total Depreciation and Amortization	$	26,141		$	21,586
Interest Charges:
Gas Utility Operations	$	4,787		$	5,190
Energy Group:
Wholesale Energy Operations	64			242
Retail Gas and Other Operations	132			73
Subtotal Energy Group	196			315
Energy Services:
On-Site Energy Production	3,462			2,315
Corporate and Services	3,452			2,988
Subtotal	11,897			10,808
Intersegment Borrowings	(2,737		)	(2,207		)
Total Interest Charges	$	9,160		$	8,601

	Three Months Ended March 31,
	2016			2015
Income Taxes:
Gas Utility Operations	$	27,404		$	26,172
Energy Group:
Wholesale Energy Operations	14,737			867
Retail Gas and Other Operations	(168		)	1,576
Retail Electric Operations	239			(74		)
Subtotal Energy Group	14,808			2,369
Energy Services:
On-Site Energy Production	(3,012		)	(12,047		)
Appliance Service Operations	26			(8		)
Subtotal Energy Services	(2,986		)	(12,055		)
Corporate and Services	41			127
Total Income Taxes	$	39,267		$	16,613
Property Additions:
Gas Utility Operations	$	51,370		$	43,326
Energy Group:
Wholesale Energy Operations	6			4
Retail Gas and Other Operations	371			729
Subtotal Energy Group	377			733
Energy Services:
On-Site Energy Production	2,651			4,381
Appliance Service Operations	101			116
Subtotal Energy Services	2,752			4,497
Corporate and Services	163			1,064
Total Property Additions	$	54,662		$	49,620

	March 31, 2016			December 31, 2015
Identifiable Assets (See Note 1):
Gas Utility Operations	$	2,365,728		$	2,281,576
Energy Group:
Wholesale Energy Operations	174,326			231,660
Retail Gas and Other Operations	60,178			55,111
Retail Electric Operations	51,239			55,528
Subtotal Energy Group	285,743			342,299
Energy Services:
On-Site Energy Production	784,474			790,231
Appliance Service Operations	3,849			4,885
Subtotal Energy Services	788,323			795,116
Discontinued Operations	1,542			1,545
Corporate and Services	648,213			652,325
Intersegment Assets	(595,565		)	(600,928		)
Total Identifiable Assets	$	3,493,984		$	3,471,933