Financial Instruments and Risk Management (Tables)
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3 Months Ended |
Dec. 24, 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 December 24, 2022 and September 24, 2022, respectively:
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As of December 24, 2022 |
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As of September 24, 2022 |
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Asset Derivatives |
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Location |
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Fair Value |
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Location |
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Fair Value |
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Derivatives not designated as
hedging instruments: |
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Commodity-related derivatives |
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Other current assets |
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$ |
11,761 |
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Other current assets |
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$ |
18,263 |
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Other assets |
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— |
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Other assets |
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16,430 |
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$ |
11,761 |
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$ |
34,693 |
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Liability Derivatives |
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Location |
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Fair Value |
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Location |
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Fair Value |
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Derivatives not designated as
hedging instruments: |
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Commodity-related derivatives |
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Other current liabilities |
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$ |
12,569 |
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Other current liabilities |
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$ |
16,957 |
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Other liabilities |
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319 |
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Other liabilities |
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1,895 |
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$ |
12,888 |
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$ |
18,852 |
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| 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) |
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Three Months Ended |
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Three Months Ended |
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December 24, 2022 |
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December 25, 2021 |
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Assets |
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Liabilities |
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Assets |
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Liabilities |
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Beginning balance of over-the-counter options |
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$ |
222 |
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$ |
3,408 |
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$ |
4,626 |
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$ |
451 |
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Beginning balance realized during the period |
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(46 |
) |
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(298 |
) |
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(1,629 |
) |
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— |
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Contracts purchased during the period |
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— |
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— |
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— |
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— |
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Change in the fair value of outstanding contracts |
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(65 |
) |
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308 |
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(2,137 |
) |
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(3 |
) |
Ending balance of over-the-counter options |
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$ |
111 |
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$ |
3,418 |
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$ |
860 |
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$ |
448 |
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| 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 months ended December 24, 2022 and December 25, 2021 are as follows:
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Three Months Ended December 24, 2022 |
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Three Months Ended December 25, 2021 |
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Derivatives Not Designated
as Hedging Instruments |
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Unrealized Gains (Losses)
Recognized in Income |
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Unrealized Gains (Losses)
Recognized in Income |
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Location |
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Amount |
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Location |
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Amount |
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Commodity-related derivatives |
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Cost of products sold |
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$ |
(13,706 |
) |
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Cost of products sold |
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$ |
(33,505 |
) |
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| 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:
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As of December 24, 2022 |
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As of September 24, 2022 |
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Net amounts |
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Net amounts |
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presented in the |
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presented in the |
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Gross amounts |
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Effects of netting |
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balance sheet |
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Gross amounts |
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Effects of netting |
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balance sheet |
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Asset Derivatives |
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Commodity-related derivatives |
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$ |
42,523 |
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$ |
(30,762 |
) |
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$ |
11,761 |
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$ |
117,260 |
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$ |
(82,567 |
) |
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$ |
34,693 |
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Liability Derivatives |
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Commodity-related derivatives |
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$ |
43,650 |
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$ |
(30,762 |
) |
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$ |
12,888 |
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$ |
101,419 |
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|
$ |
(82,567 |
) |
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$ |
18,852 |
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| 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:
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As of |
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December 24, |
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September 24, |
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2022 |
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2022 |
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5.875% senior notes due March 1, 2027 |
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336,000 |
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|
336,375 |
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5.0% senior notes due June 1, 2031 |
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559,000 |
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|
547,625 |
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$ |
895,000 |
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$ |
884,000 |
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