Segment Information

6 Months Ended

Mar. 26, 2022

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 25, 2021.

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.  In addition, the Partnership’s equity investment in IH is included within “all other”.

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 26,			March 27,			March 26,			March 27,
	2022			2021			2022			2021
Revenues:
Propane	$	516,821		$	481,328		$	847,938		$	749,952
Fuel oil and refined fuels		43,501			32,011			64,467			47,761
Natural gas and electricity		14,395			10,750			23,618			17,626
All other		13,378			13,149			27,479			27,090
Total revenues	$	588,095		$	537,238		$	963,502		$	842,429
Operating income (loss):
Propane	$	221,386		$	172,090		$	287,961		$	255,695
Fuel oil and refined fuels		7,185			7,608			8,879			10,233
Natural gas and electricity		3,450			3,404			5,120			5,363
All other		(5,002	)		(4,232	)		(10,792	)		(9,293	)
Corporate		(35,058	)		(31,713	)		(61,951	)		(57,155	)
Total operating income		191,961			147,157			229,217			204,843
Reconciliation to net income:
Interest expense, net		15,254			18,092			30,553			36,227
Other, net		1,234			1,582			2,364			2,660
Provision for (benefit from) income taxes		371			267			(100	)		763
Net income	$	175,102		$	127,216		$	196,400		$	165,193
Depreciation and amortization:
Propane	$	11,764		$	24,988		$	25,498		$	50,679
Fuel oil and refined fuels		428			396			856			796
Natural gas and electricity		5			6			10			12
All other		45			47			90			94
Corporate		1,820			1,909			3,893			3,782
Total depreciation and amortization	$	14,062		$	27,346		$	30,347		$	55,363

	As of
	March 26,		September 25,
	2022		2021
Assets:
Propane	$	2,031,431	$	1,935,399
Fuel oil and refined fuels		59,301		47,039
Natural gas and electricity		13,241		11,275
All other		48,859		17,767
Corporate		47,025		40,250
Total assets	$	2,199,857	$	2,051,730