Segment Information

9 Months Ended

Jun. 26, 2021

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 26, 2020.

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 26,			June 27,			June 26,			June 27,
	2021			2020			2021			2020
Revenues:
Propane	$	208,689		$	179,049		$	958,641		$	812,160
Fuel oil and refined fuels		11,314			11,702			59,075			69,095
Natural gas and electricity		5,835			6,099			23,461			25,018
All other		12,247			10,056			39,337			35,566
Total revenues	$	238,085		$	206,906		$	1,080,514		$	941,839
Operating income (loss):
Propane	$	41,460		$	32,074		$	297,155		$	233,339
Fuel oil and refined fuels		(433	)		1,078			9,800			10,197
Natural gas and electricity		1,103			1,742			6,466			6,749
All other		(5,117	)		(5,053	)		(14,410	)		(15,286	)
Corporate		(29,010	)		(24,961	)		(86,165	)		(72,640	)
Total operating income		8,003			4,880			212,846			162,359
Reconciliation to net (loss) income:
Loss on debt extinguishment		16,029			—			16,029			109
Interest expense, net		16,737			18,474			52,964			56,722
Other, net		1,085			1,878			3,745			3,835
Provision for (benefit from) income taxes		173			106			936			(253	)
Net (loss) income	$	(26,021	)	$	(15,578	)	$	139,172		$	101,946
Depreciation and amortization:
Propane	$	25,083		$	26,724		$	75,762		$	80,575
Fuel oil and refined fuels		429			451			1,225			1,426
Natural gas and electricity		6			6			18			12
All other		47			47			141			142
Corporate		1,689			1,925			5,471			5,560
Total depreciation and amortization	$	27,254		$	29,153		$	82,617		$	87,715

	As of
	June 26,		September 26,
	2021		2020
Assets:
Propane	$	1,924,514	$	1,934,960
Fuel oil and refined fuels		48,381		47,063
Natural gas and electricity		10,794		10,594
All other		18,594		18,733
Corporate		44,479		35,903
Total assets	$	2,046,762	$	2,047,253