SEGMENTS OF BUSINESS

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Operating Revenues:
Gas Utility Operations	$	68,762		$	75,812		$	256,528		$	343,470
Energy Group:
Wholesale Energy Operations	(1,309		)	33,276			63,765			68,621
Retail Gas and Other Operations	22,305			18,065			52,038			56,143
Retail Electric Operations	43,065			36,186			82,556			65,963
Subtotal Energy Group	64,061			87,527			198,359			190,727
Energy Services:
On-Site Energy Production	23,043			15,136			39,364			28,708
Appliance Service Operations	2,050			2,699			3,938			5,056
Subtotal Energy Services	25,093			17,835			43,302			33,764
Corporate and Services	8,417			7,765			17,293			16,851
Subtotal	166,333			188,939			515,482			584,812
Intersegment Sales	(11,931		)	(11,229		)	(28,045		)	(24,150		)
Total Operating Revenues	$	154,402		$	177,710		$	487,437		$	560,662

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Operating (Loss) Income:
Gas Utility Operations	$	9,931		$	11,961		$	85,704		$	85,150
Energy Group:
Wholesale Energy Operations	(31,149		)	15,158			7,095			15,488
Retail Gas and Other Operations	6,250			153			5,491			3,240
Retail Electric Operations	2,277			174			2,862			(8		)
Subtotal Energy Group	(22,622		)	15,485			15,448			18,720
Energy Services:
On-Site Energy Production	4,561			2,177			4,472			1,695
Appliance Service Operations	258			247			302			195
Subtotal Energy Services	4,819			2,424			4,774			1,890
Corporate and Services	(114		)	470			341			951
Total Operating (Loss) Income	$	(7,986	)	$	30,340		$	106,267		$	106,711
Depreciation and Amortization:
Gas Utility Operations	$	15,788		$	14,239		$	31,414		$	28,406
Energy Group:
Wholesale Energy Operations	204			15			408			47
Retail Gas and Other Operations	83			20			168			40
Subtotal Energy Group	287			35			576			87
Energy Services:
On-Site Energy Production	10,895			7,457			20,814			14,508
Appliance Service Operations	91			73			175			147
Subtotal Energy Services	10,986			7,530			20,989			14,655
Corporate and Services	260			458			483			700
Total Depreciation and Amortization	$	27,321		$	22,262		$	53,462		$	43,848
Interest Charges:
Gas Utility Operations	$	4,552		$	5,113		$	9,339		$	10,303
Energy Group:
Wholesale Energy Operations	1			(112		)	65			130
Retail Gas and Other Operations	78			47			210			120
Subtotal Energy Group	79			(65		)	275			250
Energy Services:
On-Site Energy Production	3,442			1,661			6,904			3,976
Corporate and Services	2,858			2,939			6,310			5,927
Subtotal	10,931			9,648			22,828			20,456
Intersegment Borrowings	(2,702		)	(2,174		)	(5,439		)	(4,381		)
Total Interest Charges	$	8,229		$	7,474		$	17,389		$	16,075

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Income Taxes:
Gas Utility Operations	$	1,415		$	3,292		$	28,819		$	29,464
Energy Group:
Wholesale Energy Operations	(12,258		)	5,986			2,479			6,853
Retail Gas and Other Operations	2,450			92			2,282			1,668
Retail Electric Operations	931			71			1,170			(3		)
Subtotal Energy Group	(8,877		)	6,149			5,931			8,518
Energy Services:
On-Site Energy Production	110			(12,861		)	(2,902		)	(24,908		)
Appliance Service Operations	126			105			152			97
Subtotal Energy Services	236			(12,756		)	(2,750		)	(24,811		)
Corporate and Services	37			36			78			163
Total Income Taxes	$	(7,189	)	$	(3,279	)	$	32,078		$	13,334
Property Additions:
Gas Utility Operations	$	50,133		$	62,175		$	101,503		$	105,501
Energy Group:
Wholesale Energy Operations	1			375			7			379
Retail Gas and Other Operations	354			392			725			1,121
Subtotal Energy Group	355			767			732			1,500
Energy Services:
On-Site Energy Production	2,665			26,040			5,316			30,421
Appliance Service Operations	251			212			352			328
Subtotal Energy Services	2,916			26,252			5,668			30,749
Corporate and Services	564			537			727			1,601
Total Property Additions	$	53,968		$	89,731		$	108,630		$	139,351

	June 30, 2016			December 31, 2015
Identifiable Assets (See Note 1):
Gas Utility Operations	$	2,410,522		$	2,281,576
Energy Group:
Wholesale Energy Operations	179,809			231,660
Retail Gas and Other Operations	40,581			55,111
Retail Electric Operations	44,958			55,528
Subtotal Energy Group	265,348			342,299
Energy Services:
On-Site Energy Production	776,907			790,231
Appliance Service Operations	3,492			4,885
Subtotal Energy Services	780,399			795,116
Discontinued Operations	1,776			1,545
Corporate and Services	633,685			652,325
Intersegment Assets	(569,149		)	(600,928		)
Total Identifiable Assets	$	3,522,581		$	3,471,933