Segment Information

9 Months Ended

Jun. 25, 2011

Segment Information [Abstract]

Segment Information

14. Segment Information

The Partnership manages and evaluates its operations in five 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 the summary of significant accounting policies Note in the Partnership's Annual Report on Form 10-K for the fiscal year ended September 25, 2010.

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, and activities from the Partnership's HomeTown Hearth & Grill and Suburban Franchising subsidiaries.

The following table presents relevant financial information 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 25,			June 26,			June 25,			June 26,
	2011			2010			2011			2010
Revenues:
Propane	$	169,258		$	155,538		$	786,968		$	758,410
Fuel oil and refined fuels		22,528			20,090			124,448			120,648
Natural gas and electricity		16,691			13,608			68,348			59,311
All other		8,086			8,834			29,208			30,296
Total revenues	$	216,563		$	198,070		$	1,008,972		$	968,665
Operating income:
Propane	$	20,434		$	22,010		$	193,700		$	220,688
Fuel oil and refined fuels		(318	)		(141	)		14,437			14,703
Natural gas and electricity		1,789			2,119			10,409			9,338
All other		(3,433	)		(4,604	)		(8,947	)		(12,817	)
Corporate		(18,119	)		(18,829	)		(51,672	)		(60,803	)
Total operating income		353			555			157,927			171,109
Reconciliation to net (loss) income:
Loss on debt extinguishment		-			-			-			9,473
Interest expense, net		6,867			6,808			20,532			20,599
Provision for income taxes		273			363			737			890
Net (loss) income	$	(6,787	)	$	(6,616	)	$	136,658		$	140,147
Depreciation and amortization:
Propane	$	5,011		$	5,235		$	15,326		$	12,596
Fuel oil and refined fuels		1,378			788			2,691			2,332
Natural gas and electricity		225			241			672			747
All other		34			295			192			420
Corporate		3,022			2,309			7,423			6,999
Total depreciation and amortization	$	9,670		$	8,868		$	26,304		$	23,094
	As of
	June 25,			September 25,
	2011			2010
Assets:
Propane	$	708,398		$	693,699
Fuel oil and refined fuels		47,341			57,681
Natural gas and electricity		19,320			21,552
All other		4,040			3,042
Corporate		285,005			282,267
Eliminations		(87,981	)		(87,981	)
Total assets	$	976,123		$	970,260