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Financial Instruments and Risk Management (Tables)
6 Months Ended
Mar. 30, 2019
Fair Value Disclosures [Abstract]  
Fair value of the Partnership's derivative instruments and their location in the condensed consolidated balance sheets

The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of March 30, 2019 and September 29, 2018, respectively:

 

 

 

As of March 30, 2019

 

 

As of September 29, 2018

 

Asset Derivatives

 

Location

 

Fair Value

 

 

Location

 

Fair Value

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Commodity-related derivatives

 

Other current assets

 

$

3,944

 

 

Other current assets

 

$

14,875

 

 

 

Other assets

 

 

 

 

Other assets

 

 

13

 

 

 

 

 

$

3,944

 

 

 

 

$

14,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability Derivatives

 

Location

 

Fair Value

 

 

Location

 

Fair Value

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Commodity-related derivatives

 

Other current liabilities

 

$

2,285

 

 

Other current liabilities

 

$

6,122

 

 

 

Other liabilities

 

 

 

 

Other liabilities

 

 

167

 

 

 

 

 

$

2,285

 

 

 

 

$

6,289

 

Reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

 

 

 

Fair Value Measurement Using Significant

Unobservable Inputs (Level 3)

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

March 30, 2019

 

 

March 31, 2018

 

 

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Beginning balance of over-the-counter options

 

$

1,546

 

 

$

361

 

 

$

4,108

 

 

$

737

 

Beginning balance realized during the period

 

 

(1,179

)

 

 

(287

)

 

 

(2,466

)

 

 

(532

)

Contracts purchased during the period

 

 

 

 

 

 

 

 

800

 

 

 

 

Change in the fair value of outstanding contracts

 

 

869

 

 

 

(74

)

 

 

(1,008

)

 

 

(205

)

Ending balance of over-the-counter options

 

$

1,236

 

 

$

 

 

$

1,434

 

 

$

 

Effect of the Partnership's derivative instruments on the condensed consolidated statements of operations

The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income, as applicable, for the three and six months ended March 30, 2019 and March 31, 2018 are as follows:

 

 

 

 

 

Three Months Ended March 30, 2019

 

 

 

 

Three Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives Not Designated

as Hedging Instruments

 

 

 

Unrealized Gains (Losses)

Recognized in Income

 

 

 

 

Unrealized Gains (Losses)

Recognized in Income

 

 

 

 

 

Location

 

Amount

 

 

 

 

Location

 

Amount

 

Commodity-related

   derivatives

 

 

 

Cost of

products sold

 

$

8,521

 

 

 

 

Cost of

products sold

 

$

(3,696

)

 

 

 

 

 

Six Months Ended March 30, 2019

 

 

 

 

Six Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives Not Designated

as Hedging Instruments

 

 

 

Unrealized Gains (Losses)

Recognized in Income

 

 

 

 

Unrealized Gains (Losses)

Recognized in Income

 

 

 

 

 

Location

 

Amount

 

 

 

 

Location

 

Amount

 

Commodity-related

   derivatives

 

 

 

Cost of

products sold

 

$

(7,390

)

 

 

 

Cost of

products sold

 

$

(5,227

)

Fair value of the Partnership's recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets

 

The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:

 

 

 

As of March 30, 2019

 

 

As of September 29, 2018

 

 

 

 

 

 

 

 

 

 

 

Net amounts

 

 

 

 

 

 

 

 

 

 

Net amounts

 

 

 

 

 

 

 

 

 

 

 

presented in the

 

 

 

 

 

 

 

 

 

 

presented in the

 

 

 

Gross amounts

 

 

Effects of netting

 

 

balance sheet

 

 

Gross amounts

 

 

Effects of netting

 

 

balance sheet

 

Asset Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity-related derivatives

 

$

7,101

 

 

$

(3,157

)

 

$

3,944

 

 

$

23,181

 

 

$

(8,293

)

 

$

14,888

 

Liability Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity-related derivatives

 

$

5,442

 

 

$

(3,157

)

 

$

2,285

 

 

$

14,582

 

 

$

(8,293

)

 

$

6,289

 

Fair Value of the Partnership's Senior Notes .  Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (also defined below in Note 9) of the Partnership are as follows:

 

 

As of

 

 

 

March 30,

 

 

September 29,

 

 

 

2019

 

 

2018

 

5.5% senior notes due June 1, 2024

 

$

511,875

 

 

$

518,112

 

5.75% senior notes due March 1, 2025

 

 

242,500

 

 

 

242,500

 

5.875% senior notes due March 1, 2027

 

 

331,625

 

 

 

334,250

 

 

 

$

1,086,000

 

 

$

1,094,862