Segment Information

12 Months Ended

Sep. 27, 2014

Segment Information [Abstract]

Segment Information

16. 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 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 27, 2014			September 28, 2013			September 29, 2012
Revenues:
Propane	$	1,606,840		$	1,357,102		$	843,648
Fuel oil and refined fuels		194,684			208,957			114,288
Natural gas and electricity		87,093			79,432			67,419
All other		49,640			58,115			38,103
Total revenues	$	1,938,257		$	1,703,606		$	1,063,458
Operating income:
Propane	$	295,916		$	287,473		$	142,548
Fuel oil and refined fuels		2,473			(2,799	)		890
Natural gas and electricity		10,818			11,565			6,991
All other		(25,644	)		(26,483	)		(17,239	)
Corporate		(93,437	)		(92,780	)		(91,533	)
Total operating income		190,126			176,976			41,657
Reconciliation to net income:
Loss on debt extinguishment		11,589			2,144			2,249
Interest expense, net		83,261			95,427			38,633
Provision for income taxes		767			607			137
Net income	$	94,509		$	78,798		$	638
Depreciation and amortization:
Propane	$	106,491		$	104,533		$	34,826
Fuel oil and refined fuels		5,429			4,634			3,652
Natural gas and electricity		46			198			464
All other		699			638			345
Corporate		23,734			20,381			7,747
Total depreciation and amortization	$	136,399		$	130,384		$	47,034

	As of
	September 27, 2014		September 28, 2013
Assets:
Propane	$	2,365,320	$	2,452,909
Fuel oil and refined fuels		69,360		77,473
Natural gas and electricity		13,992		16,789
All other		3,342		3,860
Corporate		157,349		176,956
Total assets	$	2,609,363	$	2,727,987