Segment Information

9 Months Ended

Jun. 27, 2015

Segment Reporting [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 condensed consolidated statements of operations.  In addition, certain costs associated with field operations support that are reported in operating expenses within the condensed 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						Nine Months Ended
	June 27,			June 28,			June 27,			June 28,
	2015			2014			2015			2014
Revenues:
Propane	$	181,259		$	242,173		$	1,034,525		$	1,409,271
Fuel oil and refined fuels		17,043			26,898			116,399			174,888
Natural gas and electricity		11,861			16,912			56,109			74,311
All other		10,139			11,160			35,602			38,501
Total revenues	$	220,302		$	297,143		$	1,242,635		$	1,696,971
Operating (loss) income:
Propane	$	7,352		$	4,457		$	299,693		$	300,356
Fuel oil and refined fuels		(662	)		(3,160	)		10,218			6,590
Natural gas and electricity		2,349			1,492			12,564			9,166
All other		(7,352	)		(6,724	)		(18,319	)		(19,112	)
Corporate		(23,521	)		(22,640	)		(78,431	)		(72,476	)
Total operating (loss) income		(21,834	)		(26,575	)		225,725			224,524
Reconciliation to net (loss) income:
Loss on debt extinguishment		—			11,589			15,072			11,589
Interest expense, net		18,933			20,662			58,643			63,095
Provision for income taxes		185			163			521			611
Net (loss) income	$	(40,952	)	$	(58,989	)	$	151,489		$	149,229
Depreciation and amortization:
Propane	$	27,118		$	26,067		$	81,759		$	78,608
Fuel oil and refined fuels		896			1,240			2,457			4,435
Natural gas and electricity		2			2			6			44
All other		70			187			219			584
Corporate		4,644			5,496			14,147			17,430
Total depreciation and amortization	$	32,730		$	32,992		$	98,588		$	101,101

	As of
	June 27,		September27,
	2015		2014
Assets:
Propane	$	2,256,645	$	2,365,320
Fuel oil and refined fuels		62,562		69,360
Natural gas and electricity		12,831		13,992
All other		3,357		3,342
Corporate		204,917		157,349
Total assets	$	2,540,312	$	2,609,363