Segment Information

9 Months Ended

Jun. 25, 2016

Segment Reporting [Abstract]

Segment Information

16. 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						Nine Months Ended
	June 25,			June 27,			June 25,			June 27,
	2016			2015			2016			2015
Revenues:
Propane	$	172,322		$	181,259		$	752,013		$	1,034,525
Fuel oil and refined fuels		12,459			17,043			61,961			116,399
Natural gas and electricity		10,596			11,861			38,232			56,109
All other		9,722			10,139			32,890			35,602
Total revenues	$	205,099		$	220,302		$	885,096		$	1,242,635
Operating (loss) income:
Propane	$	14,182		$	7,352		$	199,042		$	299,693
Fuel oil and refined fuels		(854	)		(662	)		7,585			10,218
Natural gas and electricity		1,969			2,349			8,665			12,564
All other		(6,014	)		(7,352	)		(18,882	)		(18,319	)
Corporate		(20,063	)		(23,521	)		(64,633	)		(78,431	)
Total operating (loss) income		(10,780	)		(21,834	)		131,777			225,725
Reconciliation to net (loss) income:
Loss on debt extinguishment		—			—			292			15,072
Interest expense, net		18,638			18,933			56,383			58,643
Provision for income taxes		180			185			423			521
Net (loss) income	$	(29,598	)	$	(40,952	)	$	74,679		$	151,489
Depreciation and amortization:
Propane	$	27,324		$	27,118		$	81,949		$	81,759
Fuel oil and refined fuels		673			896			2,055			2,457
Natural gas and electricity		—			2			3			6
All other		73			70			234			219
Corporate		4,218			4,644			12,835			14,147
Total depreciation and amortization	$	32,288		$	32,730		$	97,076		$	98,588

	As of
	June 25,		September26,
	2016		2015
Assets:
Propane	$	2,170,839	$	2,209,343
Fuel oil and refined fuels		53,625		58,077
Natural gas and electricity		12,640		13,253
All other		2,374		2,888
Corporate		121,907		202,169
Total assets	$	2,361,385	$	2,485,730