Segment Information

6 Months Ended

Mar. 30, 2013

Segment Information [Abstract]

Segment Information

15. 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 revenues 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 Note 2, “Summary of Significant Accounting Policies,” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 29, 2012.

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 franchising subsidiary, Suburban Cylinder Express.

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 30,			March 24,			March 30,			March 24,
	2013			2012			2013			2012
Revenues:
Propane	$	540,537		$	283,759		$	933,322		$	524,115
Fuel oil and refined fuels		92,795			43,748			154,941			74,729
Natural gas and electricity		29,732			21,708			48,121			39,759
All other		15,362			8,411			32,745			18,909
Total revenues	$	678,426		$	357,626		$	1,169,129		$	657,512
Operating income:
Propane	$	179,961		$	70,483		$	286,269		$	113,981
Fuel oil and refined fuels		5,742			3,465			6,441			5,931
Natural gas and electricity		5,711			1,639			8,277			4,343
All other		(6,525	)		(3,732	)		(11,374	)		(6,329	)
Corporate		(29,244	)		(15,730	)		(49,492	)		(31,511	)
Total operating income		155,645			56,125			240,121			86,415
Reconciliation to net income:
Loss on debt extinguishment		—			507			—			507
Interest expense, net		24,343			6,425			48,899			13,263
Provision for (benefit from) income taxes		150			(380	)		282			(160	)
Net income	$	131,152		$	49,573		$	190,940		$	72,805
Depreciation and amortization:
Propane	$	23,042		$	4,942		$	45,564		$	9,855
Fuel oil and refined fuels		1,345			620			2,936			1,162
Natural gas and electricity		40			79			118			303
All other		208			20			271			53
Corporate		5,013			1,988			9,118			4,061
Total depreciation and amortization	$	29,648		$	7,649		$	58,007		$	15,434

	As of
	March 30,		September 29,
	2013		2012
Assets:
Propane	$	2,558,422	$	2,529,021
Fuel oil and refined fuels		115,827		101,108
Natural gas and electricity		20,099		14,777
All other		4,487		7,232
Corporate		256,944		232,310
Total assets	$	2,955,779	$	2,884,448