Segment Information

6 Months Ended

Mar. 26, 2016

Segment Reporting [Abstract]

Segment Information

17. Segment Information

The Partnership manages and evaluates its operations in four 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 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 26, 2015.

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.

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:

	Three Months Ended						Six Months Ended
	March 26,			March 28,			March 26,			March 28,
	2016			2015			2016			2015
Revenues:
Propane	$	348,216		$	498,616		$	579,691		$	853,266
Fuel oil and refined fuels		28,814			60,426			49,502			99,356
Natural gas and electricity		15,962			28,281			27,636			44,248
All other		11,148			12,066			23,168			25,463
Total revenues	$	404,140		$	599,389		$	679,997		$	1,022,333
Operating income (loss):
Propane	$	129,277		$	189,265		$	184,860		$	292,341
Fuel oil and refined fuels		6,470			9,434			8,439			10,880
Natural gas and electricity		4,444			7,457			6,696			10,215
All other		(5,812	)		(5,289	)		(12,868	)		(10,967	)
Corporate		(23,166	)		(29,276	)		(44,570	)		(54,910	)
Total operating income		111,213			171,591			142,557			247,559
Reconciliation to net income:
Loss on debt extinguishment		292			15,072			292			15,072
Interest expense, net		18,852			19,711			37,745			39,710
Provision for income taxes		58			174			243			336
Net income	$	92,011		$	136,634		$	104,277		$	192,441
Depreciation and amortization:
Propane	$	27,518		$	27,562		$	54,625		$	54,641
Fuel oil and refined fuels		686			728			1,382			1,561
Natural gas and electricity		1			2			3			4
All other		79			69			161			149
Corporate		4,866			4,868			8,617			9,503
Total depreciation and amortization	$	33,150		$	33,229		$	64,788		$	65,858

	As of
	March 26,		September26,
	2016		2015
Assets:
Propane	$	2,246,909	$	2,209,343
Fuel oil and refined fuels		58,166		58,077
Natural gas and electricity		15,068		13,253
All other		2,510		2,888
Corporate		117,038		202,169
Total assets	$	2,439,691	$	2,485,730