Segment Information

9 Months Ended

Jun. 28, 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						Nine Months Ended
	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Revenues:
Propane	$	242,173		$	230,777		$	1,409,271		$	1,164,099
Fuel oil and refined fuels		26,898			31,026			174,888			185,967
Natural gas and electricity		16,912			16,132			74,311			64,253
All other		11,160			12,870			38,501			45,615
Total revenues	$	297,143		$	290,805		$	1,696,971		$	1,459,934
Operating (loss) income:
Propane	$	4,457		$	12,267		$	300,356		$	294,713
Fuel oil and refined fuels		(3,160	)		(5,263	)		6,590			1,186
Natural gas and electricity		1,492			1,802			9,166			10,079
All other		(6,724	)		(7,625	)		(19,112	)		(19,019	)
Corporate		(22,640	)		(21,836	)		(72,476	)		(71,328	)
Total operating (loss) income		(26,575	)		(20,655	)		224,524			215,631
Reconciliation to net (loss) income:
Loss on debt extinguishment		11,589			—			11,589			—
Interest expense, net		20,662			24,385			63,095			73,284
Provision for income taxes		163			148			611			430
Net (loss) income	$	(58,989	)	$	(45,188	)	$	149,229		$	141,917
Depreciation and amortization:
Propane	$	26,067		$	24,802		$	78,608		$	74,189
Fuel oil and refined fuels		1,240			1,284			4,435			4,212
Natural gas and electricity		2			40			44			158
All other		187			227			584			518
Corporate		5,496			5,152			17,430			14,270
Total depreciation and amortization	$	32,992		$	31,505		$	101,101		$	93,347

	As of
	June 28, 2014		September 28, 2013
Assets:
Propane	$	2,418,145	$	2,452,909
Fuel oil and refined fuels		74,314		77,473
Natural gas and electricity		14,495		16,789
All other		4,391		3,860
Corporate		138,155		176,956
Total assets	$	2,649,500	$	2,727,987