Financial Instruments and Risk Management (Tables)
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6 Months Ended |
Mar. 26, 2022 |
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| Fair Value Disclosures [Abstract] |
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| Fair value of the Partnership's derivative instruments and their location in the condensed consolidated balance sheets |
The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of March 26, 2022 and September 25, 2021, respectively:
|
|
|
As of March 26, 2022 |
|
|
As of September 25, 2021 |
|
|
Asset Derivatives |
|
Location |
|
Fair Value |
|
|
Location |
|
Fair Value |
|
|
Derivatives not designated as
hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity-related derivatives |
|
Other current assets |
|
$ |
57,470 |
|
|
Other current assets |
|
$ |
53,019 |
|
|
|
|
Other assets |
|
|
— |
|
|
Other assets |
|
|
1,813 |
|
|
|
|
|
|
$ |
57,470 |
|
|
|
|
$ |
54,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Derivatives |
|
Location |
|
Fair Value |
|
|
Location |
|
Fair Value |
|
|
Derivatives not designated as
hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity-related derivatives |
|
Other current liabilities |
|
$ |
14,162 |
|
|
Other current liabilities |
|
$ |
8,715 |
|
|
|
|
Other liabilities |
|
|
— |
|
|
Other liabilities |
|
|
1,632 |
|
|
|
|
|
|
$ |
14,162 |
|
|
|
|
$ |
10,347 |
|
|
| Reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs |
The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:
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|
|
Fair Value Measurement Using Significant
Unobservable Inputs (Level 3) |
|
|
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
|
March 26, 2022 |
|
|
March 27, 2021 |
|
|
|
|
Assets |
|
|
Liabilities |
|
|
Assets |
|
|
Liabilities |
|
|
Beginning balance of over-the-counter options |
|
$ |
4,626 |
|
|
$ |
(451 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
Beginning balance realized during the period |
|
|
(4,615 |
) |
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
Contracts purchased during the period |
|
|
— |
|
|
|
— |
|
|
|
750 |
|
|
|
— |
|
|
Change in the fair value of outstanding contracts |
|
|
(11 |
) |
|
|
346 |
|
|
|
— |
|
|
|
— |
|
|
Ending balance of over-the-counter options |
|
$ |
— |
|
|
$ |
(94 |
) |
|
$ |
750 |
|
|
$ |
— |
|
|
| Effect of the Partnership's derivative instruments on the condensed consolidated statements of operations |
The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations for the three and six months ended March 26, 2022 and March 27, 2021 are as follows:
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|
|
Three Months Ended March 26, 2022 |
|
|
Three Months Ended March 27, 2021 |
|
|
Derivatives Not Designated
as Hedging Instruments |
|
Unrealized Gains (Losses)
Recognized in Income |
|
|
Unrealized Gains (Losses)
Recognized in Income |
|
|
|
|
Location |
|
Amount |
|
|
Location |
|
Amount |
|
|
Commodity-related derivatives |
|
Cost of products sold |
|
$ |
32,984 |
|
|
Cost of products sold |
|
$ |
1,638 |
|
|
|
|
Six Months Ended March 26, 2022 |
|
|
Six Months Ended March 27, 2021 |
|
|
Derivatives Not Designated
as Hedging Instruments |
|
Unrealized Gains (Losses)
Recognized in Income |
|
|
Unrealized Gains (Losses)
Recognized in Income |
|
|
|
|
Location |
|
Amount |
|
|
Location |
|
Amount |
|
|
Commodity-related derivatives |
|
Cost of products sold |
|
$ |
(521 |
) |
|
Cost of products sold |
|
$ |
6,493 |
|
|
| Fair value of the Partnership's recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets |
The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:
|
|
|
As of March 26, 2022 |
|
|
As of September 25, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net amounts |
|
|
|
|
|
|
|
|
|
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Net amounts |
|
|
|
|
|
|
|
|
|
|
|
|
presented in the |
|
|
|
|
|
|
|
|
|
|
presented in the |
|
|
|
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Gross amounts |
|
|
Effects of netting |
|
|
balance sheet |
|
|
Gross amounts |
|
|
Effects of netting |
|
|
balance sheet |
|
|
Asset Derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity-related derivatives |
|
$ |
69,022 |
|
|
$ |
(11,552 |
) |
|
$ |
57,470 |
|
|
$ |
76,508 |
|
|
$ |
(21,676 |
) |
|
$ |
54,832 |
|
|
Liability Derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity-related derivatives |
|
$ |
25,714 |
|
|
$ |
(11,552 |
) |
|
$ |
14,162 |
|
|
$ |
32,023 |
|
|
$ |
(21,676 |
) |
|
$ |
10,347 |
|
|
| Fair Value of the Partnership's Senior Notes |
. Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (also defined below in Note 10) of the Partnership are as follows:
|
|
|
As of |
|
|
|
|
March 26, |
|
|
September 25, |
|
|
|
|
2022 |
|
|
2021 |
|
|
5.875% senior notes due March 1, 2027 |
|
|
357,000 |
|
|
|
367,063 |
|
|
5.0% senior notes due June 1, 2031 |
|
|
609,375 |
|
|
|
676,000 |
|
|
|
|
$ |
966,375 |
|
|
$ |
1,043,063 |
|
|