Segment Information | 1 8 . 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 |