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Segment Information
6 Months Ended
Mar. 30, 2019
Segment Reporting [Abstract]  
Segment Information

17.

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 29, 2018.

The propane segment is primarily engaged in the retail distribution of propane to residential, commercial, industrial and agricultural customers and, to a lesser extent, wholesale distribution to large industrial end users.  In the residential and commercial 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.

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.

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 30,

 

 

March 31,

 

 

March 30,

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

433,056

 

 

$

462,814

 

 

$

754,416

 

 

$

784,944

 

Fuel oil and refined fuels

 

 

41,598

 

 

 

41,699

 

 

 

70,507

 

 

 

67,014

 

Natural gas and electricity

 

 

17,596

 

 

 

20,392

 

 

 

31,000

 

 

 

33,539

 

All other

 

 

12,127

 

 

 

11,377

 

 

 

25,558

 

 

 

24,062

 

Total revenues

 

$

504,377

 

 

$

536,282

 

 

$

881,481

 

 

$

909,559

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

162,650

 

 

$

144,395

 

 

$

233,121

 

 

$

220,118

 

Fuel oil and refined fuels

 

 

8,071

 

 

 

7,199

 

 

 

11,541

 

 

 

11,023

 

Natural gas and electricity

 

 

4,885

 

 

 

5,454

 

 

 

7,713

 

 

 

8,939

 

All other

 

 

(4,152

)

 

 

(4,981

)

 

 

(8,796

)

 

 

(10,214

)

Corporate

 

 

(29,364

)

 

 

(24,663

)

 

 

(52,955

)

 

 

(45,542

)

Total operating income

 

 

142,090

 

 

 

127,404

 

 

 

190,624

 

 

 

184,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Reconciliation to net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

19,647

 

 

 

19,402

 

 

 

39,135

 

 

 

38,916

 

Other, net

 

 

1,175

 

 

 

1,174

 

 

 

2,351

 

 

 

2,346

 

Provision for (benefit from) income taxes

 

 

252

 

 

 

41

 

 

 

403

 

 

 

(893

)

Net income

 

$

121,016

 

 

$

106,787

 

 

$

148,735

 

 

$

143,955

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

27,939

 

 

$

28,288

 

 

$

54,894

 

 

$

56,069

 

Fuel oil and refined fuels

 

 

503

 

 

 

716

 

 

 

1,025

 

 

 

1,295

 

Natural gas and electricity

 

 

 

 

 

 

 

 

 

 

 

 

All other

 

 

48

 

 

 

56

 

 

 

100

 

 

 

106

 

Corporate

 

 

2,133

 

 

 

3,143

 

 

 

4,675

 

 

 

5,864

 

Total depreciation and amortization

 

$

30,623

 

 

$

32,203

 

 

$

60,694

 

 

$

63,334

 

 

 

 

As of

 

 

 

March 30,

 

 

September 29,

 

 

 

2019

 

 

2018

 

Assets:

 

 

 

 

 

 

 

 

Propane

 

$

2,020,044

 

 

$

1,995,060

 

Fuel oil and refined fuels

 

 

55,396

 

 

 

47,911

 

Natural gas and electricity

 

 

15,277

 

 

 

13,067

 

All other

 

 

3,649

 

 

 

3,363

 

Corporate

 

 

45,604

 

 

 

41,798

 

Total assets

 

$

2,139,970

 

 

$

2,101,199