Segment Information

6 Months Ended

Mar. 25, 2017

Segment Reporting [Abstract]

Segment Information

15. 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 24, 2016.

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 25,			March 26,			March 25,			March 26,
	2017			2016			2017			2016
Revenues:
Propane	$	385,654		$	348,216		$	655,113		$	579,691
Fuel oil and refined fuels		34,630			28,814			56,726			49,502
Natural gas and electricity		19,239			15,962			32,306			27,636
All other		11,055			11,148			23,740			23,168
Total revenues	$	450,578		$	404,140		$	767,885		$	679,997
Operating income:
Propane	$	115,346		$	129,277		$	190,009		$	184,860
Fuel oil and refined fuels		6,828			6,470			9,676			8,439
Natural gas and electricity		5,535			4,444			8,655			6,696
All other		(5,186	)		(5,812	)		(10,392	)		(12,868	)
Corporate		(19,666	)		(23,166	)		(41,606	)		(44,570	)
Total operating income		102,857			111,213			156,342			142,557
Reconciliation to net income:
Loss on debt extinguishment		1,567			292			1,567			292
Interest expense, net		17,487			18,852			36,318			37,745
Provision for income tax (benefit) expense		(9	)		58			156			243
Net income	$	83,812		$	92,011		$	118,301		$	104,277
Depreciation and amortization:
Propane	$	28,072		$	27,518		$	55,456		$	54,625
Fuel oil and refined fuels		667			686			1,298			1,382
Natural gas and electricity		—			1			—			3
All other		76			79			146			161
Corporate		3,855			4,866			7,031			8,617
Total depreciation and amortization	$	32,670		$	33,150		$	63,931		$	64,788

	As of
	March 25,		September24,
	2017		2016
Assets:
Propane	$	2,157,744	$	2,141,108
Fuel oil and refined fuels		57,488		53,266
Natural gas and electricity		15,208		13,415
All other		1,990		2,185
Corporate		51,455		72,325
Total assets	$	2,283,885	$	2,282,299