Segment Information

12 Months Ended

Sep. 26, 2020

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 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 26,			September 28,			September 29,
	2020			2019			2018
Revenues:
Propane	$	955,143		$	1,083,446		$	1,153,323
Fuel oil and refined fuels		75,039			92,084			91,520
Natural gas and electricity		31,184			45,206			54,308
All other		46,531			46,969			45,262
Total revenues	$	1,107,897		$	1,267,705		$	1,344,413
Operating income (loss):
Propane	$	239,771		$	254,447		$	248,473
Fuel oil and refined fuels		9,338			8,489			7,605
Natural gas and electricity		7,459			8,758			12,309
All other		(20,377	)		(19,516	)		(20,145	)
Corporate		(95,921	)		(101,324	)		(90,239	)
Total operating income		140,270			150,854			158,003
Reconciliation to net income:
Loss on debt extinguishment		109			—			—
Interest expense, net		74,727			76,663			77,383
Other, net		4,822			4,702			4,692
(Benefit from) provision for income taxes		(146	)		857			(606	)
Net income	$	60,758		$	68,632		$	76,534
Depreciation and amortization:
Propane	$	106,725		$	108,763		$	111,460
Fuel oil and refined fuels		1,843			2,083			2,574
Natural gas and electricity		18			—			—
All other		189			196			215
Corporate		8,016			9,830			10,973
Total depreciation and amortization	$	116,791		$	120,872		$	125,222

	As of
	September 26,		September 28,
	2020		2019
Assets:
Propane	$	1,934,960	$	1,904,344
Fuel oil and refined fuels		47,063		44,279
Natural gas and electricity		10,594		11,907
All other		18,733		2,950
Corporate		35,903		34,868
Total assets	$	2,047,253	$	1,998,348