Financial Instruments and Risk Management (Tables)

3 Months Ended

Dec. 27, 2014

Financial Instruments and Risk Management [Abstract]

Fair value of the Partnership's derivative instruments and their location in the condensed consolidated balance sheet

The following summarizes the gross fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheet as of December 27, 2014 and September 27, 2014, respectively:


	As of December 27, 2014			As of September 27, 2014
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	17,737	Other current assets	$	3,924
	Other assets		190	Other assets		62

		$	17,927		$	3,986


Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swap	Other current liabilities	$	1,176	Other current liabilities	$	1,257
	Other liabilities		234	Other liabilities		283

Derivatives not designated as hedging instruments:		$	1,410		$	1,540

Commodity-related derivatives	Other current liabilities	$	6,306	Other current liabilities	$	1,527
	Other liabilities		—	Other liabilities		53

		$	6,306		$	1,580

Reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:


	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Three Months Ended December 27, 2014					Three Months Ended December 28, 2013
	Assets			Liabilities		Assets			Liabilities
Beginning balance of over-the-counter options	$	1,512		$	—	$	1,847		$	—
Beginning balance realized during the period		(304	)		—		(20	)		—
Contracts purchased during the period		589			12		—			401
Change in the fair value of outstanding contracts		3,500			—		1,058			—

Ending balance of over-the-counter options	$	5,297		$	12	$	2,885		$	401

Effect of the Partnership's derivative instruments on the condensed consolidated statements of operations

The effect of the Partnership’s derivative instruments on the condensed consolidated statement of operations and the condensed consolidated statement of comprehensive income, as applicable, for the three months ended December 27, 2014 and December 28, 2013 are as follows:

Three months ended December 27, 2014

Three months ended December 28, 2013

Derivatives in Cash Flow Hedging Relationships

Gains (Losses)
Recognized in OCI
(Effective Portion)

Gains (Losses) Reclassified
from Accumulated OCI into
Income

Gains (Losses)
Recognized in OCI
(Effective Portion)

Gains (Losses) Reclassified
from Accumulated OCI into
Income

Location

Amount

Location

Amount

Interest rate swap

(227

)

Interest expense

(357

)

(166

)

Interest expense

(353

)

Derivatives Not Designated as Hedging Instruments

Unrealized Gains (Losses)
Recognized in Income

Location

Amount

Location

Amount

Commodity-related derivatives

Cost of
products sold

9,505

Cost of
products sold

(290

)

Fair value of Partnership's recognized derivative assets and liabilities on a gross basis and amounts offset on condensed consolidated balance sheets

The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:


	As of December 27, 2014
	Gross amounts		Effects of netting			Net amounts presented in the balance sheet
Asset Derivatives
Commodity-related derivatives	$	20,694	$	(2,767	)	$	17,927
Interest rate swap		1,860		(1,860	)		—

	$	22,554	$	(4,627	)	$	17,927


Liability Derivatives
Commodity-related derivatives	$	9,073	$	(2,767	)	$	6,306
Interest rate swap		3,270		(1,860	)		1,410

	$	12,343	$	(4,627	)	$	7,716


	As of September 27, 2014
	Gross amounts		Effects of netting			Net amounts presented in the balance sheet
Asset Derivatives
Commodity-related derivatives	$	9,533	$	(5,547	)	$	3,986
Interest rate swap		2,139		(2,139	)		—

	$	11,672	$	(7,686	)	$	3,986


Liability Derivatives
Commodity-related derivatives	$	7,127	$	(5,547	)	$	1,580
Interest rate swap		3,679		(2,139	)		1,540

	$	10,806	$	(7,686	)	$	3,120

Fair value of the Partnership's Senior Notes

The fair value of the borrowings under the Revolving Credit Facility (defined below) approximates the carrying value since the interest rates are periodically adjusted to reflect market conditions. Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (defined below) of the Partnership are as follows:


	As of
	December 27, 2014		September 27, 2014

7.375% senior notes due March 15, 2020	$	261,875	$	263,250
7.375% senior notes due August 1, 2021		366,085		363,489
5.5% senior notes due June 1, 2024		511,875		508,594

	$	1,139,835	$	1,135,333

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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