XML 52 R37.htm IDEA: XBRL DOCUMENT v3.20.2
DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding derivative contracts
As of June 30, 2020, SJI and SJG had outstanding derivative contracts as follows: 
SJI ConsolidatedSJG
Derivative contracts intended to limit exposure to market risk to:
    Expected future purchases of natural gas (in MMdts)78.9  10.2  
    Expected future sales of natural gas (in MMdts)84.0  0.4  
    Expected future purchases of electricity (in MMmWh)0.2  
    Expected future sales of electricity (in MMmWh)0.2  
Basis and Index related net purchase (sale) contracts (in MMdts)94.1  2.5  
Schedule of notional amounts of outstanding derivative positions
As of June 30, 2020, SJI’s active interest rate swaps were as follows:

Notional AmountFixed Interest RateStart DateMaturityObligor
$20,000,000  3.049%3/15/20173/15/2027SJI
$20,000,000  3.049%3/15/20173/15/2027SJI
$10,000,000  3.049%3/15/20173/15/2027SJI
$12,500,000  3.530%12/1/20062/1/2036SJG
$12,500,000  3.430%12/1/20062/1/2036SJG
Fair value of derivative instruments
The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, are as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):
Derivatives not designated as hedging instruments under GAAPJune 30, 2020December 31, 2019
 AssetsLiabilitiesAssetsLiabilities
Energy-related commodity contracts:    
Derivatives - Energy Related - Current$31,925  $25,963  $52,892  $41,965  
Derivatives - Energy Related - Non-Current11,486  5,305  7,243  8,206  
Interest rate contracts:    
Derivatives - Other - Current—  2,101  —  1,155  
Derivatives - Other - Noncurrent—  18,491  —  11,505  
Total derivatives not designated as hedging instruments under GAAP$43,411  $51,860  $60,135  $62,831  
Total Derivatives$43,411  $51,860  $60,135  $62,831  


SJG:
Derivatives not designated as hedging instruments under GAAPJune 30, 2020December 31, 2019
AssetsLiabilitiesAssetsLiabilities
Energy-related commodity contracts:    
Derivatives – Energy Related – Current$4,699  $2,651  $16,904  $14,671  
Derivatives – Energy Related – Non-Current143  —  5  95  
Interest rate contracts:  
Derivatives – Other - Current—  732  —  488  
Derivatives – Other - Noncurrent—  10,675  —  7,368  
Total derivatives not designated as hedging instruments under GAAP$4,842  $14,058  $16,909  $22,622  
Total Derivatives$4,842  $14,058  $16,909  $22,622  
Offsetting assets Information related to these offsetting arrangements were as follows (in thousands):
As of June 30, 2020
DescriptionGross amounts of recognized assets/liabilitiesGross amount offset in the balance sheetNet amounts of assets/liabilities in balance sheetGross amounts not offset in the balance sheetNet amount
Financial InstrumentsCash Collateral Posted
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets$43,411  $—  $43,411  $(23,219) (A)$—  $20,192  
Derivatives - Energy Related Liabilities$(31,268) $—  $(31,268) $23,219  (B)$4,297  $(3,752) 
Derivatives - Other$(20,592) $—  $(20,592) $—  $—  $(20,592) 
SJG:
Derivatives - Energy Related Assets$4,842  $—  $4,842  $(369) (A)$—  $4,473  
Derivatives - Energy Related Liabilities$(2,651) $—  $(2,651) $369  (B)$2,085  $(197) 
Derivatives - Other$(11,407) $—  $(11,407) $—  $—  $(11,407) 

As of December 31, 2019
DescriptionGross amounts of recognized assets/liabilitiesGross amount offset in the balance sheetNet amounts of assets/liabilities in balance sheetGross amounts not offset in the balance sheetNet amount
Financial InstrumentsCash Collateral Posted
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets$60,135  $—  $60,135  $(32,185) (A)$—  $27,950  
Derivatives - Energy Related Liabilities$(50,171) $—  $(50,171) $32,185  (B)$12,878  $(5,108) 
Derivatives - Other$(12,660) $—  $(12,660) $—  $—  $(12,660) 
SJG:
Derivatives - Energy Related Assets$16,909  $—  $16,909  $(11,860) (A)$—  $5,049  
Derivatives - Energy Related Liabilities$(14,766) $—  $(14,766) $11,860  (B)$2,706  $(200) 
Derivatives - Other$(7,856) $—  $(7,856) $—  $—  $(7,856) 

(A) The balances at June 30, 2020 and December 31, 2019 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at June 30, 2020 and December 31, 2019 were related to derivative assets which can be net settled against derivative liabilities.
Offsetting liabilities Information related to these offsetting arrangements were as follows (in thousands):
As of June 30, 2020
DescriptionGross amounts of recognized assets/liabilitiesGross amount offset in the balance sheetNet amounts of assets/liabilities in balance sheetGross amounts not offset in the balance sheetNet amount
Financial InstrumentsCash Collateral Posted
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets$43,411  $—  $43,411  $(23,219) (A)$—  $20,192  
Derivatives - Energy Related Liabilities$(31,268) $—  $(31,268) $23,219  (B)$4,297  $(3,752) 
Derivatives - Other$(20,592) $—  $(20,592) $—  $—  $(20,592) 
SJG:
Derivatives - Energy Related Assets$4,842  $—  $4,842  $(369) (A)$—  $4,473  
Derivatives - Energy Related Liabilities$(2,651) $—  $(2,651) $369  (B)$2,085  $(197) 
Derivatives - Other$(11,407) $—  $(11,407) $—  $—  $(11,407) 

As of December 31, 2019
DescriptionGross amounts of recognized assets/liabilitiesGross amount offset in the balance sheetNet amounts of assets/liabilities in balance sheetGross amounts not offset in the balance sheetNet amount
Financial InstrumentsCash Collateral Posted
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets$60,135  $—  $60,135  $(32,185) (A)$—  $27,950  
Derivatives - Energy Related Liabilities$(50,171) $—  $(50,171) $32,185  (B)$12,878  $(5,108) 
Derivatives - Other$(12,660) $—  $(12,660) $—  $—  $(12,660) 
SJG:
Derivatives - Energy Related Assets$16,909  $—  $16,909  $(11,860) (A)$—  $5,049  
Derivatives - Energy Related Liabilities$(14,766) $—  $(14,766) $11,860  (B)$2,706  $(200) 
Derivatives - Other$(7,856) $—  $(7,856) $—  $—  $(7,856) 

(A) The balances at June 30, 2020 and December 31, 2019 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at June 30, 2020 and December 31, 2019 were related to derivative assets which can be net settled against derivative liabilities.
Derivatives in cash flow hedging relationships
The effect of derivative instruments on the condensed consolidated statements of income (loss) are as follows (in thousands):

 Three Months Ended
June 30,		Six Months Ended
June 30,
Derivatives in Cash Flow Hedging Relationships under GAAP2020201920202019
SJI (includes SJG and all other consolidated subsidiaries):
Interest Rate Contracts:  
Losses reclassified from AOCL into income (a)$(12) $(12) $(24) $(24) 
SJG:
Interest Rate Contracts:
Losses reclassified from AOCL into income (a)$(12) $(12) (24) (24) 

(a) Included in Interest Charges

 Three Months Ended
June 30,		Six Months Ended
June 30,
Derivatives Not Designated as Hedging Instruments under GAAP2020201920202019
SJI (includes SJG and all other consolidated subsidiaries):
Losses on energy-related commodity contracts (a)$(1,285) $(143) $(1,561) $(12,203) 
Losses on interest rate contracts (b)(336) (1,745) (4,382) (2,835) 
Total$(1,621) $(1,888) $(5,943) $(15,038) 

(a)  Included in Operating Revenues - Nonutility
(b)  Included in Interest Charges