Segment Information

6 Months Ended

Mar. 24, 2012

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 24, 2011.

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 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						Six Months Ended
	March 24, 2012			March 26, 2011			March 24, 2012			March 26, 2011
Revenues:
Propane	$	283,759		$	358,309		$	524,115		$	617,710
Fuel oil and refined fuels		43,748			63,518			74,729			101,920
Natural gas and electricity		21,708			32,689			39,759			51,657
All other		8,411			9,586			18,909			21,122
Total revenues	$	357,626		$	464,102		$	657,512		$	792,409
Operating income:
Propane	$	70,483		$	108,128		$	113,981		$	173,266
Fuel oil and refined fuels		3,465			13,033			5,931			14,755
Natural gas and electricity		1,639			5,375			4,343			8,620
All other		(3,732	)		(2,951	)		(6,329	)		(5,514	)
Corporate		(15,730	)		(16,352	)		(31,511	)		(33,553	)
Total operating income		56,125			107,233			86,415			157,574
Reconciliation to net income:
Loss on debt extinguishment		507			-			507			-
Interest expense, net		6,425			6,819			13,263			13,665
Provision for income taxes		(380	)		98			(160	)		464
Net income	$	49,573		$	100,316		$	72,805		$	143,445
Depreciation and amortization:
Propane	$	4,942		$	4,800		$	9,855		$	9,493
Fuel oil and refined fuels		620			617			1,162			1,271
Natural gas and electricity		79			224			303			447
All other		20			98			53			105
Corporate		1,988			2,715			4,061			5,318
Total depreciation and amortization	$	7,649		$	8,454		$	15,434		$	16,634

	As of
	March 24, 2012		September 24, 2011
Assets:
Propane	$	728,135	$	706,008
Fuel oil and refined fuels		48,347		44,973
Natural gas and electricity		18,621		18,675
All other		3,694		3,719
Corporate		132,681		183,084
Total assets	$	931,478	$	956,459