Segment Information

6 Months Ended

Mar. 25, 2023

Segment Reporting [Abstract]

Segment Information

18.Segment Information

The Partnership manages and evaluates its operations in four operating segments, three of which are reportable segments: Propane, Fuel Oil and Refined Fuels, and Natural Gas and Electricity. The chief operating decision maker evaluates performance of the operating segments using a number of performance measures, including gross margins and income before interest expense and provision for income taxes (operating profit). Costs excluded from these profit measures are captured in Corporate and include corporate overhead expenses not allocated to the operating segments. Unallocated corporate overhead expenses include all costs of back office support functions that are reported as general and administrative expenses within the condensed consolidated statements of operations. In addition, certain costs associated with field operations support that are reported in operating expenses within the condensed consolidated statements of operations, including purchasing, training and safety, are not allocated to the individual operating segments. Thus, operating profit for each operating segment includes only the costs that are directly attributable to the operations of the individual segment. The accounting policies of the operating segments are otherwise the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 24, 2022.

The propane segment is primarily engaged in the retail distribution of propane to residential, commercial, industrial, agricultural and government customers and, to a lesser extent, wholesale distribution to large industrial end users. In the residential, commercial and government markets, propane is used primarily for space heating, water heating, cooking and clothes drying. Industrial customers use propane generally as a motor fuel burned in internal combustion engines that power over-the-road vehicles, forklifts and stationary engines, to fire furnaces and as a cutting gas. In the agricultural markets, propane is primarily used for tobacco curing, crop drying, poultry brooding and weed control. In addition, the Partnership’s equity investment in Oberon is included within the propane segment.

The fuel oil and refined fuels segment is primarily engaged in the retail distribution of fuel oil, diesel, kerosene and gasoline to residential and commercial customers for use primarily as a source of heat in homes and buildings.

The natural gas and electricity segment is engaged in the marketing of natural gas and electricity to residential and commercial customers in the deregulated energy markets of New York and Pennsylvania. Under this operating segment, the Partnership owns the relationship with the end consumer and has agreements with the local distribution companies to deliver the natural gas or electricity from the Partnership’s suppliers to the customer.

Activities in the “all other” category include the Partnership’s service business, which is primarily engaged in the sale, installation and servicing of a wide variety of home comfort equipment, particularly in the areas of heating and ventilation. In addition, the Partnership’s platform of RNG businesses and the equity investment in IH are included within “all other.”

The following table presents certain data by reportable segment and provides a reconciliation of total operating segment information to the corresponding condensed consolidated amounts for the periods presented:

	Three Months Ended						Six Months Ended
	March 25,			March 26,			March 25,			March 26,
	2023			2022			2023			2022
Revenues:
Propane	$	457,140		$	516,821		$	799,493		$	847,938
Fuel oil and refined fuels		38,126			43,501			68,267			64,467
Natural gas and electricity		11,856			14,395			20,546			23,618
All other		19,379			13,378			35,665			27,479
Total revenues	$	526,501		$	588,095		$	923,971		$	963,502
Operating income (loss):
Propane	$	156,959		$	221,386		$	251,367		$	287,961
Fuel oil and refined fuels		6,347			7,185			8,429			8,879
Natural gas and electricity		3,138			3,450			4,230			5,120
All other		(10,087	)		(5,002	)		(15,862	)		(10,792	)
Corporate		(30,678	)		(35,058	)		(60,170	)		(61,951	)
Total operating income		125,679			191,961			187,994			229,217
Reconciliation to net income:
Interest expense, net		19,871			15,254			35,865			30,553
Other, net		1,106			1,234			2,081			2,364
Provision for (benefit from) income taxes		225			371			177			(100	)
Net income	$	104,477		$	175,102		$	149,871		$	196,400
Depreciation and amortization:
Propane	$	11,331		$	11,764		$	23,221		$	25,498
Fuel oil and refined fuels		419			428			828			856
Natural gas and electricity		—			5			3			10
All other		2,912			45			2,955			90
Corporate		1,402			1,820			2,836			3,893
Total depreciation and amortization	$	16,064		$	14,062		$	29,843		$	30,347

	As of
	March 25,		September 24,
	2023		2022
Assets:
Propane	$	1,991,478	$	1,957,257
Fuel oil and refined fuels		55,245		49,683
Natural gas and electricity		12,782		12,504
All other		243,211		47,853
Corporate		48,389		36,429
Total assets	$	2,351,105	$	2,103,726