Segment Information

12 Months Ended

Sep. 24, 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 consolidated statements of operations.  In addition, certain costs associated with field operations support that are reported in operating expenses within the 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 in Note 2.

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 certain data by reportable segment and provides a reconciliation of total operating segment information to the corresponding consolidated amounts for the periods presented:

	Year Ended
	September 24,			September 25,			September 26,
	2011			2010			2009
Revenues:
Propane	$	929,492		$	885,459		$	864,012
Fuel oil and refined fuels		139,572			135,059			159,596
Natural gas and electricity		84,721			77,587			76,832
All other		36,767			38,589			42,714
Total revenues	$	1,190,552		$	1,136,694		$	1,143,154
Operating income:
Propane	$	203,567		$	230,717		$	268,969
Fuel oil and refined fuels		11,140			11,589			17,950
Natural gas and electricity		11,667			11,629			12,791
All other		(13,750	)		(17,995	)		(16,346	)
Corporate		(69,396	)		(82,572	)		(72,749	)
Total operating income		143,228			153,368			210,615
Reconciliation to net income:
Loss on debt extinguishment		-			9,473			4,624
Interest expense, net		27,378			27,397			38,267
Provision for income taxes		884			1,182			2,486
Net income	$	114,966		$	115,316		$	165,238
Depreciation and amortization:
Propane	$	19,525		$	17,505		$	15,951
Fuel oil and refined fuels		4,139			3,277			4,253
Natural gas and electricity		897			970			1,008
All other		111			261			436
Corporate		10,956			8,821			8,695
Total depreciation and amortization	$	35,628		$	30,834		$	30,343

	As of
	September 24,		September 25,
	2011		2010
Assets:
Propane	$	706,008	$	693,699
Fuel oil and refined fuels		44,973		57,681
Natural gas and electricity		18,675		21,552
All other		3,719		3,042
Corporate		183,084		194,940
Total assets	$	956,459	$	970,914