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Segment Information
6 Months Ended
Mar. 28, 2020
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 28, 2019.

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 28,

 

 

March 30,

 

 

March 28,

 

 

March 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

347,686

 

 

$

433,056

 

 

$

633,111

 

 

$

754,416

 

Fuel oil and refined fuels

 

 

31,502

 

 

 

41,598

 

 

 

57,393

 

 

 

70,507

 

Natural gas and electricity

 

 

10,198

 

 

 

17,596

 

 

 

18,919

 

 

 

31,000

 

All other

 

 

11,669

 

 

 

12,127

 

 

 

25,510

 

 

 

25,558

 

Total revenues

 

$

401,055

 

 

$

504,377

 

 

$

734,933

 

 

$

881,481

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

115,143

 

 

$

162,650

 

 

$

201,265

 

 

$

233,121

 

Fuel oil and refined fuels

 

 

6,391

 

 

 

8,071

 

 

 

9,119

 

 

 

11,541

 

Natural gas and electricity

 

 

2,778

 

 

 

4,885

 

 

 

5,007

 

 

 

7,713

 

All other

 

 

(4,846

)

 

 

(4,152

)

 

 

(10,233

)

 

 

(8,796

)

Corporate

 

 

(21,841

)

 

 

(29,364

)

 

 

(47,679

)

 

 

(52,955

)

Total operating income

 

 

97,625

 

 

 

142,090

 

 

 

157,479

 

 

 

190,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on debt extinguishment

 

 

109

 

 

 

 

 

 

109

 

 

 

 

Interest expense, net

 

 

19,176

 

 

 

19,647

 

 

 

38,248

 

 

 

39,135

 

Other, net

 

 

979

 

 

 

1,175

 

 

 

1,957

 

 

 

2,351

 

Provision for (benefit from) income taxes

 

 

 

 

 

252

 

 

 

(359

)

 

 

403

 

Net income

 

$

77,361

 

 

$

121,016

 

 

$

117,524

 

 

$

148,735

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane

 

$

26,871

 

 

$

27,939

 

 

$

53,851

 

 

$

54,894

 

Fuel oil and refined fuels

 

 

468

 

 

 

503

 

 

 

975

 

 

 

1,025

 

Natural gas and electricity

 

 

6

 

 

 

 

 

 

6

 

 

 

 

All other

 

 

48

 

 

 

48

 

 

 

95

 

 

 

100

 

Corporate

 

 

1,895

 

 

 

2,133

 

 

 

3,635

 

 

 

4,675

 

Total depreciation and amortization

 

$

29,288

 

 

$

30,623

 

 

$

58,562

 

 

$

60,694

 

 

 

 

As of

 

 

 

March 28,

 

 

September 28,

 

 

 

2020

 

 

2019

 

Assets:

 

 

 

 

 

 

 

 

Propane

 

$

2,031,125

 

 

$

1,904,344

 

Fuel oil and refined fuels

 

 

54,635

 

 

 

44,279

 

Natural gas and electricity

 

 

12,341

 

 

 

11,907

 

All other

 

 

16,479

 

 

 

2,950

 

Corporate

 

 

45,437

 

 

 

34,868

 

Total assets

 

$

2,160,017

 

 

$

1,998,348