Segment Information

6 Months Ended

Mar. 28, 2015

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 27, 2014.

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 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Revenues:
Propane	$	498,616		$	728,504		$	853,266		$	1,167,098
Fuel oil and refined fuels		60,426			93,722			99,356			147,990
Natural gas and electricity		28,281			39,083			44,248			57,399
All other		12,066			12,463			25,463			27,341
Total revenues	$	599,389		$	873,772		$	1,022,333		$	1,399,828
Operating income:
Propane	$	189,265		$	189,517		$	292,341		$	295,899
Fuel oil and refined fuels		9,434			9,271			10,880			9,750
Natural gas and electricity		7,457			5,022			10,215			7,674
All other		(5,289	)		(6,538	)		(10,967	)		(12,388	)
Corporate		(29,276	)		(26,228	)		(54,910	)		(49,836	)
Total operating income		171,591			171,044			247,559			251,099
Reconciliation to net income:
Loss on debt extinguishment		15,072			—			15,072			—
Interest expense, net		19,711			21,226			39,710			42,433
Provision for income taxes		174			271			336			448
Net income	$	136,634		$	149,547		$	192,441		$	208,218
Depreciation and amortization:
Propane	$	27,562		$	26,808		$	54,641		$	52,541
Fuel oil and refined fuels		728			899			1,561			3,195
Natural gas and electricity		2			2			4			42
All other		69			192			149			397
Corporate		4,868			5,381			9,503			11,934
Total depreciation and amortization	$	33,229		$	33,282		$	65,858		$	68,109

	As of
	March 28, 2015		September 27, 2014
Assets:
Propane	$	2,378,783	$	2,365,320
Fuel oil and refined fuels		73,599		69,360
Natural gas and electricity		20,224		13,992
All other		3,381		3,342
Corporate		175,497		157,349
Total assets	$	2,651,484	$	2,609,363