Segment Information

9 Months Ended

Jun. 27, 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						Nine Months Ended
	June 27,			June 29,			June 27,			June 29,
	2020			2019			2020			2019
Revenues:
Propane	$	179,049		$	183,052		$	812,160		$	937,468
Fuel oil and refined fuels		11,702			12,921			69,095			83,428
Natural gas and electricity		6,099			7,527			25,018			38,527
All other		10,056			10,712			35,566			36,270
Total revenues	$	206,906		$	214,212		$	941,839		$	1,095,693
Operating income (loss):
Propane	$	32,074		$	21,038		$	233,339		$	254,159
Fuel oil and refined fuels		1,078			(1,084	)		10,197			10,457
Natural gas and electricity		1,742			1,059			6,749			8,772
All other		(5,053	)		(5,018	)		(15,286	)		(13,814	)
Corporate		(24,961	)		(24,779	)		(72,640	)		(77,734	)
Total operating income (loss)		4,880			(8,784	)		162,359			181,840
Reconciliation to net (loss) income:
Loss on debt extinguishment		—			—			109			—
Interest expense, net		18,474			18,906			56,722			58,041
Other, net		1,878			1,176			3,835			3,527
Provision for (benefit from) income taxes		106			175			(253	)		578
Net (loss) income	$	(15,578	)	$	(29,041	)	$	101,946		$	119,694
Depreciation and amortization:
Propane	$	26,724		$	26,828		$	80,575		$	81,722
Fuel oil and refined fuels		451			594			1,426			1,619
Natural gas and electricity		6			—			12			—
All other		47			49			142			149
Corporate		1,925			2,680			5,560			7,355
Total depreciation and amortization	$	29,153		$	30,151		$	87,715		$	90,845

	As of
	June 27,		September 28,
	2020		2019
Assets:
Propane	$	1,957,320	$	1,904,344
Fuel oil and refined fuels		49,079		44,279
Natural gas and electricity		10,656		11,907
All other		16,402		2,950
Corporate		41,511		34,868
Total assets	$	2,074,968	$	1,998,348