Segment Information

6 Months Ended

Mar. 29, 2014

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 28, 2013.

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 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 29,			March 30,			March 29,			March 30,
	2014			2013			2014			2013
Revenues:
Propane	$	728,504		$	540,537		$	1,167,098		$	933,322
Fuel oil and refined fuels		93,722			92,795			147,990			154,941
Natural gas and electricity		39,083			29,732			57,399			48,121
All other		12,463			15,362			27,341			32,745
Total revenues	$	873,772		$	678,426		$	1,399,828		$	1,169,129
Operating income:
Propane	$	189,517		$	178,285		$	295,899		$	282,445
Fuel oil and refined fuels		9,271			5,759			9,750			6,449
Natural gas and electricity		5,022			5,711			7,674			8,277
All other		(6,538	)		(6,534	)		(12,388	)		(11,394	)
Corporate		(26,228	)		(29,244	)		(49,836	)		(49,492	)
Total operating income		171,044			153,977			251,099			236,285
Reconciliation to net income:
Interest expense, net		21,226			24,343			42,433			48,899
Provision for income taxes		271			150			448			282
Net income	$	149,547		$	129,484		$	208,218		$	187,104
Depreciation and amortization:
Propane	$	26,808		$	24,718		$	52,541		$	49,388
Fuel oil and refined fuels		899			1,328			3,195			2,928
Natural gas and electricity		2			40			42			118
All other		192			217			397			291
Corporate		5,381			5,013			11,934			9,118
Total depreciation and amortization	$	33,282		$	31,316		$	68,109		$	61,843

	As of
	March 29,		September 28,
	2014		2013
Assets:
Propane	$	2,589,935	$	2,452,909
Fuel oil and refined fuels		95,864		77,473
Natural gas and electricity		23,586		16,789
All other		3,711		3,860
Corporate		140,449		176,956
Total assets	$	2,853,545	$	2,727,987