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Segment Information
12 Months Ended
Sep. 28, 2019
Segment Reporting [Abstract]  
Segment Information

16.

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 consolidated statements of operations.  In addition, certain costs associated with field operations support that are reported in operating expenses within the 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 the summary of significant accounting policies in Note 2.

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:

 

 

 

Year Ended

 

 

 

September 28,

 

 

September 29,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

1,083,446

 

 

$

1,153,323

 

 

$

1,011,078

 

Fuel oil and refined fuels

 

 

92,084

 

 

 

91,520

 

 

 

78,126

 

Natural gas and electricity

 

 

45,206

 

 

 

54,308

 

 

 

55,103

 

All other

 

 

46,969

 

 

 

45,262

 

 

 

43,579

 

Total revenues

 

$

1,267,705

 

 

$

1,344,413

 

 

$

1,187,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

254,447

 

 

$

248,473

 

 

$

218,346

 

Fuel oil and refined fuels

 

 

8,489

 

 

 

7,605

 

 

 

8,552

 

Natural gas and electricity

 

 

8,758

 

 

 

12,309

 

 

 

13,826

 

All other

 

 

(19,516

)

 

 

(20,145

)

 

 

(23,017

)

Corporate

 

 

(101,324

)

 

 

(90,239

)

 

 

(89,112

)

Total operating income

 

 

150,854

 

 

 

158,003

 

 

 

128,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

1,567

 

Interest expense, net

 

 

76,663

 

 

 

77,383

 

 

 

75,263

 

Other, net

 

 

4,702

 

 

 

4,692

 

 

 

13,311

 

Provision for (benefit from) income taxes

 

 

857

 

 

 

(606

)

 

 

459

 

Net income

 

$

68,632

 

 

$

76,534

 

 

$

37,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

108,763

 

 

$

111,460

 

 

$

111,374

 

Fuel oil and refined fuels

 

 

2,083

 

 

 

2,574

 

 

 

2,610

 

Natural gas and electricity

 

 

 

 

 

 

 

 

 

All other

 

 

196

 

 

 

215

 

 

 

283

 

Corporate

 

 

9,830

 

 

 

10,973

 

 

 

13,671

 

Total depreciation and amortization

 

$

120,872

 

 

$

125,222

 

 

$

127,938

 

 

 

 

As of

 

 

 

September 28,

 

 

September 29,

 

 

 

2019

 

 

2018

 

Assets:

 

 

 

 

 

 

 

 

Propane

 

$

1,904,344

 

 

$

1,995,060

 

Fuel oil and refined fuels

 

 

44,279

 

 

 

47,911

 

Natural gas and electricity

 

 

11,907

 

 

 

13,067

 

All other

 

 

2,950

 

 

 

3,363

 

Corporate

 

 

34,868

 

 

 

41,798

 

Total assets

 

$

1,998,348

 

 

$

2,101,199