10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 24, 2017

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:  1-14222

SUBURBAN PROPANE PARTNERS, L.P.

(Exact name of registrant as specified in its charter)

Delaware	22-3410353
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

240 Route 10 West

Whippany, NJ 07981

(973)  887-5300

(Address, including zip code, and telephone number,

including area code, of registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,”  “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐ (do not check if a smaller reporting company)	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

At July 31, 2017, there were 61,102,950 Common Units of Suburban Propane Partners, L.P. outstanding.

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

INDEX TO FORM 10-Q

		Page
	PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)
	Condensed Consolidated Balance Sheets as of June 24, 2017 and September 24, 2016	1
	Condensed Consolidated Statements of Operations for the three months ended June 24, 2017 and June 25, 2016	2
	Condensed Consolidated Statements of Operations for the nine months ended June 24, 2017 and June 25, 2016	3
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended June 24, 2017 and June 25, 2016	4
	Condensed Consolidated Statements of Cash Flows for the nine months ended June 24, 2017 and June 25, 2016	5
	Condensed Consolidated Statement of Partners’ Capital for the nine months ended June 24, 2017	6
	Notes to Condensed Consolidated Financial Statements	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	32
ITEM 4.	CONTROLS AND PROCEDURES	34
	PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	35
ITEM 1A.	RISK FACTORS	35
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	35
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	35
ITEM 4.	MINE SAFETY DISCLOSURES	35
ITEM 5.	OTHER INFORMATION	35
ITEM 6.	EXHIBITS	36
SignaturEs		37

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements (“Forward-Looking Statements”) as defined in the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to future business expectations and predictions and financial condition and results of operations of Suburban Propane Partners, L.P. (the “Partnership”). Some of these statements can be identified by the use of forward-looking terminology such as “prospects,” “outlook,” “believes,” “estimates,” “intends,” “may,” “will,” “should,” “could,” “anticipates,” “expects” or “plans” or the negative or other variation of these or similar words, or by discussion of trends and conditions, strategies or risks and uncertainties.  These Forward-Looking Statements involve certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such Forward-Looking Statements (statements contained in this Quarterly Report identifying such risks and uncertainties are referred to as “Cautionary Statements”). The risks and uncertainties and their impact on the Partnership’s results include, but are not limited to, the following risks:

• The impact of weather conditions on the demand for propane, fuel oil and other refined fuels, natural gas and electricity;

• Volatility in the unit cost of propane, fuel oil and other refined fuels, natural gas and electricity, the impact of the Partnership’s hedging and risk management activities, and the adverse impact of price increases on volumes sold as a result of customer conservation;

• The ability of the Partnership to compete with other suppliers of propane, fuel oil and other energy sources;

• The impact on the price and supply of propane, fuel oil and other refined fuels from the political, military or economic instability of the oil producing nations, global terrorism and other general economic conditions;

• The ability of the Partnership to acquire sufficient volumes of, and the costs to the Partnership of acquiring, transporting and storing, propane, fuel oil and other refined fuels;

• The ability of the Partnership to acquire and maintain reliable transportation for its propane, fuel oil and other refined fuels;

• The ability of the Partnership to retain customers or acquire new customers;

• The impact of customer conservation, energy efficiency and technology advances on the demand for propane, fuel oil and other refined fuels, natural gas and electricity;

• The ability of management to continue to control expenses;

• The impact of changes in applicable statutes and government regulations, or their interpretations, including those relating to the environment and climate change, derivative instruments and other regulatory developments on the Partnership’s business;

• The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes;

• The impact of legal proceedings on the Partnership’s business;

• The impact of operating hazards that could adversely affect the Partnership’s operating results to the extent not covered by insurance;

• The Partnership’s ability to make strategic acquisitions and successfully integrate them;

• The impact of current conditions in the global capital and credit markets, and general economic pressures;

• The operating, legal and regulatory risks the Partnership may face; and

• Other risks referenced from time to time in filings with the Securities and Exchange Commission (“SEC”) and those factors listed or incorporated by reference into the Partnership’s most recent Annual Report under “Risk Factors.”

Some of these Forward-Looking Statements are discussed in more detail in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report.  Reference is also made to the risk factors discussed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 24, 2016.  On different occasions, the Partnership or its representatives have made or may make Forward-Looking Statements in other filings with the SEC, press releases or oral statements made by or with the approval of one of the Partnership’s authorized executive officers.  Readers are cautioned not to place undue reliance on Forward-Looking Statements, which reflect management’s view only as of the date made.  The Partnership undertakes no obligation to update any Forward-Looking Statement or Cautionary Statement, except as required by law.  All subsequent written and oral Forward-Looking Statements attributable to the Partnership or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements in this Quarterly Report and in future SEC reports.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	June 24,			September 24,
	2017			2016
ASSETS
Current assets:
Cash and cash equivalents	$	3,211		$	37,341
Accounts receivable, less allowance for doubtful accounts of $4,196 and    $2,441, respectively		72,945			53,802
Inventories		41,812			45,352
Other current assets		12,816			10,804
Total current assets		130,784			147,299
Property, plant and equipment, net		706,425			742,129
Goodwill		1,094,635			1,094,635
Other intangible assets, net		233,965			276,329
Other assets		25,491			21,907
Total assets	$	2,191,300		$	2,282,299
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Accounts payable	$	29,083		$	32,286
Accrued employment and benefit costs		23,697			16,495
Customer deposits and advances		56,503			106,155
Accrued interest		15,555			16,589
Other current liabilities		31,041			33,529
Total current liabilities		155,879			205,054
Long-term borrowings		1,250,159			1,224,502
Accrued insurance		53,410			43,406
Other liabilities		88,334			101,106
Total liabilities		1,547,782			1,574,068
Commitments and contingencies
Partners’ capital:
Common Unitholders (61,078 and 60,789 units issued and outstanding at    June 24, 2017 and September 24, 2016, respectively)		685,536			754,063
Accumulated other comprehensive loss		(42,018	)		(45,832	)
Total partners’ capital		643,518			708,231
Total liabilities and partners’ capital	$	2,191,300		$	2,282,299

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit amounts)

(unaudited)

	Three Months Ended
	June 24,			June 25,
	2017			2016
Revenues
Propane	$	188,406		$	172,322
Fuel oil and refined fuels		12,886			12,459
Natural gas and electricity		11,923			10,596
All other		9,680			9,722
		222,895			205,099
Costs and expenses
Cost of products sold		92,094			75,497
Operating		97,070			103,316
General and administrative		12,968			14,547
Depreciation and amortization		31,825			32,288
		233,957			225,648
Gain on sale of business		—			9,769
Operating loss		(11,062	)		(10,780	)
Interest expense, net		18,502			18,638
Loss before provision for income taxes		(29,564	)		(29,418	)
Provision for income taxes		152			180
Net loss	$	(29,716	)	$	(29,598	)
Net loss per Common Unit - basic	$	(0.48	)	$	(0.49	)
Weighted average number of Common Units outstanding - basic		61,290			61,004
Net loss per Common Unit - diluted	$	(0.48	)	$	(0.49	)
Weighted average number of Common Units outstanding - diluted		61,290			61,004

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit amounts)

(unaudited)

	Nine Months Ended
	June 24,		June 25,
	2017		2016
Revenues
Propane	$	843,519	$	752,013
Fuel oil and refined fuels		69,612		61,961
Natural gas and electricity		44,229		38,232
All other		33,420		32,890
		990,780		885,096
Costs and expenses
Cost of products sold		402,726		305,012
Operating		306,839		315,747
General and administrative		40,179		45,253
Depreciation and amortization		95,756		97,076
		845,500		763,088
Gain on sale of business		—		9,769
Operating income		145,280		131,777
Loss on debt extinguishment		1,567		292
Interest expense, net		54,820		56,383
Income before provision for income taxes		88,893		75,102
Provision for income taxes		308		423
Net income	$	88,585	$	74,679
Net income per Common Unit - basic	$	1.45	$	1.23
Weighted average number of Common Units outstanding - basic		61,227		60,947
Net income per Common Unit - diluted	$	1.44	$	1.22
Weighted average number of Common Units outstanding - diluted		61,410		61,127

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Net (loss) income	$	(29,716	)	$	(29,598	)	$	88,585		$	74,679
Other comprehensive income:
Net unrealized (losses) on cash flow hedges		—			(107	)		(10	)		(47	)
Reclassification of realized losses on cash flow hedges    into earnings		—			252			215			844
Amortization of net actuarial losses and prior service    credits into earnings		1,203			1,130			3,609			3,390
Other comprehensive income		1,203			1,275			3,814			4,187
Total comprehensive (loss) income	$	(28,513	)	$	(28,323	)	$	92,399		$	78,866

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended
	June 24,			June 25,
	2017			2016
Cash flows from operating activities:
Net income	$	88,585		$	74,679
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		95,756			97,076
Gain on sale of business		—			(9,769	)
Loss on debt extinguishment		1,567			292
Other, net		7,271			7,269
Changes in assets and liabilities:
Accounts receivable		(19,143	)		(2,274	)
Inventories		3,492			7,721
Other current and noncurrent assets		(5,193	)		(1,502	)
Accounts payable		(2,826	)		(7,699	)
Accrued employment and benefit costs		6,189			(8,339	)
Customer deposits and advances		(49,652	)		(40,831	)
Contribution to defined benefit pension plan		(7,542	)		—
Other current and noncurrent liabilities		4,738			12,037
Net cash provided by operating activities		123,242			128,660
Cash flows from investing activities:
Capital expenditures		(22,004	)		(32,261	)
Acquisition of business		—			(42,945	)
Proceeds from sale of business		—			21,181
Proceeds from sale of property, plant and equipment		3,829			4,663
Net cash (used in) investing activities		(18,175	)		(49,362	)
Cash flows from financing activities:
Proceeds from long-term borrowings		350,000			—
Repayments of long-term borrowings (includes premium and fees)		(360,931	)		—
Proceeds from borrowings under revolving credit facility		273,240			100,000
Repayments of borrowings under revolving credit facility		(232,095	)		(100,000	)
Issuance costs associated with long-term borrowings		(7,064	)		(2,678	)
Partnership distributions		(162,347	)		(161,572	)
Net cash (used in) financing activities		(139,197	)		(164,250	)
Net (decrease) in cash and cash equivalents		(34,130	)		(84,952	)
Cash and cash equivalents at beginning of period		37,341			152,338
Cash and cash equivalents at end of period	$	3,211		$	67,386

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL

(in thousands)

(unaudited)

						Accumulated
						Other			Total
	Number of		Common			Comprehensive			Partners’
	CommonUnits		Unitholders			(Loss)			Capital
Balance at September 24, 2016		60,789	$	754,063		$	(45,832	)	$	708,231
Net income				88,585						88,585
Other comprehensive income							3,814			3,814
Partnership distributions				(162,347	)					(162,347	)
Common Units issued under Restricted Unit Plans		289
Compensation cost recognized under Restricted Unit Plans, net of    forfeitures				5,235						5,235
Balance at June 24, 2017		61,078	$	685,536		$	(42,018	)	$	643,518

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except unit and per unit amounts)

(unaudited)

1. Partnership Organization and Formation

Suburban Propane Partners, L.P. (the “Partnership”) is a publicly traded Delaware limited partnership principally engaged, through its operating partnership and subsidiaries, in the retail marketing and distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets.  In addition, to complement its core marketing and distribution businesses, the Partnership services a wide variety of home comfort equipment, particularly for heating and ventilation.  The publicly traded limited partner interests in the Partnership are evidenced by common units traded on the New York Stock Exchange (“Common Units”), with 61,078,243 Common Units outstanding at June 24, 2017.  The holders of Common Units are entitled to participate in distributions and exercise the rights and privileges available to limited partners under the Third Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”).  Rights and privileges under the Partnership Agreement include, among other things, the election of all members of the Board of Supervisors and voting on the removal of the general partner.

Suburban Propane, L.P. (the “Operating Partnership”), a Delaware limited partnership, is the Partnership’s operating subsidiary formed to operate the propane business and assets.  In addition, Suburban Sales & Service, Inc. (the “Service Company”), a subsidiary of the Operating Partnership, was formed to operate the service work and appliance and parts businesses of the Partnership.  The Operating Partnership, together with its direct and indirect subsidiaries, accounts for substantially all of the Partnership’s assets, revenues and earnings.  The Partnership, the Operating Partnership and the Service Company commenced operations in March 1996 in connection with the Partnership’s initial public offering.

The general partner of both the Partnership and the Operating Partnership is Suburban Energy Services Group LLC (the “General Partner”), a Delaware limited liability company, the sole member of which is the Partnership’s Chief Executive Officer.  Other than as a holder of 784 Common Units that will remain in the General Partner, the General Partner does not have any economic interest in the Partnership or the Operating Partnership.

The Partnership’s fuel oil and refined fuels, natural gas and electricity and services businesses are structured as either limited liability companies that are treated as corporations or corporate entities (collectively referred to as the “Corporate Entities”) and, as such, are subject to corporate level income tax.

Suburban Energy Finance Corp., a direct 100%-owned subsidiary of the Partnership, was formed on November 26, 2003 to serve as co-issuer, jointly and severally with the Partnership, of the Partnership’s senior notes.

2. Basis of Presentation

Principles of Consolidation.  The condensed consolidated financial statements include the accounts of the Partnership, the Operating Partnership and all of its direct and indirect subsidiaries.  All significant intercompany transactions and account balances have been eliminated.  The Partnership consolidates the results of operations, financial condition and cash flows of the Operating Partnership as a result of the Partnership’s 100% limited partner interest in the Operating Partnership.

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).  They include all adjustments that the Partnership considers necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods presented.  Such adjustments consist only of normal recurring items, unless otherwise disclosed.  These financial statements should be read in conjunction with the financial statements included in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 24, 2016.  Due to the seasonal nature of the Partnership’s operations, the results of operations for interim periods are not necessarily indicative of the results to be expected for a full year.

Fiscal Period.  The Partnership uses a 52/53 week fiscal year which ends on the last Saturday in September.  The Partnership’s fiscal quarters are generally thirteen weeks in duration.  When the Partnership’s fiscal year is 53 weeks long, as is the case for fiscal 2017, the corresponding fourth quarter is fourteen weeks in duration.

7

Revenue Recognition.  Sales of propane, fuel oil and refined fuels are recognized at the time product is delivered to the customer.  Revenue from the sale of appliances and equipment is recognized at the time of sale or when installation is complete, as applicable.  Revenue from repairs, maintenance and other service activities is recognized upon completion of the service.  Revenue from annually billed service contracts is recognized ratably over the service period.  Revenue from the natural gas and electricity business is recognized based on customer usage as determined by meter readings for amounts delivered, some of which may be unbilled at the end of each accounting period.  Revenue from annually billed tank fees is deferred at the time of billings and recognized on a straight-line basis over one year.

Fair Value Measurements.  The Partnership measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market.  The principal market is the market with the greatest level of activity and volume for the asset or liability.

The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values.  The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.

• Level 1: Quoted prices in active markets for identical assets or liabilities.

• Level 2: Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

• Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Business Combinations.  The Partnership accounts for business combinations using the acquisition method and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date.  Goodwill represents the excess of the purchase price over the fair value of the net assets acquired, including the amount assigned to identifiable intangible assets.  The primary drivers that generate goodwill are the value of synergies between the acquired entities and the Partnership, and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset.  Identifiable intangible assets with finite lives are amortized over their useful lives.  The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.  The Partnership expenses all acquisition-related costs as incurred.

Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Estimates have been made by management in the areas of self-insurance and litigation reserves, pension and other postretirement benefit liabilities and costs, valuation of derivative instruments, depreciation and amortization of long-lived assets, asset impairment assessments, tax valuation allowances, allowances for doubtful accounts, and purchase price allocation for acquired businesses.  The Partnership uses Society of Actuaries life expectancy information when developing the annual mortality assumptions for the pension and postretirement benefit plans, which are used to measure net periodic benefit costs and the obligation under these plans.  Actual results could differ from those estimates, making it reasonably possible that a material change in these estimates could occur in the near term.

Reclassifications.  Certain prior period amounts have been reclassified to conform with the current period presentation.  See Recently Adopted Accounting Pronouncements, below.

Recently Issued Accounting Pronouncements.In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”).  This update eliminates the second of the two-step goodwill impairment test, as described in Note 5, “Goodwill and Other Intangible Assets.”  Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit.  ASU 2017-04 is effective for the first interim period within annual reporting periods beginning after December 15, 2019, which will be the Partnership’s first quarter of fiscal 2021.  Early adoption of ASU 2017-04 is permitted.  The Partnership does not expect the adoption of ASU 2017-04 will have a material impact on the Partnership’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”).  This update addresses eight specific cash flow issues and is intended to reduce diversity in practice on how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  ASU 2016-15 is effective for the first interim period within annual reporting periods beginning after December 15, 2017, which will be the Partnership’s first quarter of fiscal 2019.  Early adoption of ASU 2016-15 is permitted.  The Partnership is currently evaluating the impact of adopting the standard on the Partnership’s consolidated statements of cash flows.

8

In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This update is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, which will be the Partnership’s first quarter of fiscal 2018. Early adoption of ASU 2016-09 is permitted. The Partnership does not expect the adoption of ASU 2016-09 will have a material impact on the Partnership’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for the first interim period within annual reporting periods beginning after December 15, 2018, which will be the Partnership’s first quarter of fiscal 2020. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is currently evaluating the impact of adopting ASU 2016-02 on the Partnership’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”).  This update provides a principles-based approach to revenue recognition, requiring revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. On July 9, 2015, the FASB finalized a one-year deferral of the effective date of ASU 2014-09.  The revenue standard is therefore effective for the first interim period within annual reporting periods beginning after December 15, 2017, which will be the Partnership’s first quarter of fiscal 2019.  Early adoption as of the original effective date is permitted.  ASU 2014-09 can be applied either retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures.  While the Partnership is still in the process of evaluating the potential impact of ASU 2014-09, it does not expect its adoption will have a material impact on the Partnership’s consolidated financial statements.

Recently Adopted Accounting Pronouncements.During the first quarter of fiscal 2017, the Partnership adopted new accounting guidance regarding the classification of deferred debt issuance costs under ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Deferred debt issuance costs associated with long-term debt are now reflected as a direct deduction from the carrying amount of such debt rather than as a deferred charge. Total deferred debt issuance costs were $19,996 and $17,391 at June 24, 2017 and September 24, 2016, respectively. Deferred debt issuance costs associated with line-of-credit arrangements remain classified as other assets on the Partnership’s consolidated balance sheet.  As of June 24, 2017 and September 24, 2016, the Partnership has reflected $15,986 and $13,670 of such costs as a reduction to long-term debt on the condensed consolidated balance sheets, respectively.  Refer to Note 7, “Long-Term Borrowings” for a tabular display of long-term borrowings.

3. Financial Instruments and Risk Management

Cash and Cash Equivalents.  The Partnership considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.  The carrying amount approximates fair value because of the short-term maturity of these instruments.

Derivative Instruments and Hedging Activities

Commodity Price Risk.  Given the retail nature of its operations, the Partnership maintains a certain level of priced physical inventory to help ensure its field operations have adequate supply commensurate with the time of year.  The Partnership’s strategy is to keep its physical inventory priced relatively close to market for its field operations.  The Partnership enters into a combination of exchange-traded futures and option contracts and, in certain instances, over-the-counter options and swap contracts (collectively, “derivative instruments”) to hedge price risk associated with propane and fuel oil physical inventories, as well as future purchases of propane or fuel oil used in its operations and to help ensure adequate supply during periods of high demand.  In addition, the Partnership sells propane and fuel oil to customers at fixed prices, and enters into derivative instruments to hedge a portion of its exposure to fluctuations in commodity prices as a result of selling the fixed price contracts.  Under this risk management strategy, realized gains or losses on derivative instruments will typically offset losses or gains on the physical inventory once the product is sold or delivered as it pertains to fixed price contracts.  All of the Partnership’s derivative instruments are reported on the condensed consolidated balance sheet at their fair values.  In addition, in the course of normal operations, the Partnership routinely enters into contracts such as forward priced physical contracts for the purchase or sale of propane and fuel oil that qualify for and are designated as normal purchase or normal sale contracts.  Such contracts are exempted from the fair value accounting requirements and are accounted for at the time product is purchased or sold under the related contract.  The Partnership does not use derivative instruments for speculative

9

trading purposes.  Market risks associated with futures, options, forward and swap contracts are monitored daily for compliance with the Partnership’s Hedging and Risk Management Policy which includes volume limits for open positions.  Priced on-hand inventory is also reviewed and managed daily as to exposures to changing market prices.

On the date that derivative instruments are entered into, other than those designated as normal purchases or normal sales, the Partnership makes a determination as to whether the derivative instrument qualifies for designation as a hedge.  Changes in the fair value of derivative instruments are recorded each period in current period earnings or other comprehensive income (“OCI”), depending on whether the derivative instrument is designated as a hedge and, if so, the type of hedge.  For derivative instruments designated as cash flow hedges, the Partnership formally assesses, both at the hedge contract’s inception and on an ongoing basis, whether the hedge contract is highly effective in offsetting changes in cash flows of hedged items.  Changes in the fair value of derivative instruments designated as cash flow hedges are reported in OCI to the extent effective and reclassified into earnings during the same period in which the hedged item affects earnings.  The mark-to-market gains or losses on ineffective portions of cash flow hedges are recognized in earnings immediately.  Changes in the fair value of derivative instruments that are not designated as cash flow hedges, and that do not meet the normal purchase and normal sale exemption, are recorded within earnings as they occur.  Cash flows associated with derivative instruments are reported as operating activities within the condensed consolidated statement of cash flows.

Interest Rate Risk.  A portion of the Partnership’s borrowings bear interest at prevailing interest rates based upon, at the Operating Partnership’s option, LIBOR plus an applicable margin or the base rate, defined as the higher of the Federal Funds Rate plus ½ of 1% or the agent bank’s prime rate, or LIBOR plus 1%, plus the applicable margin.  The applicable margin is dependent on the level of the Partnership’s total leverage (the ratio of total debt to income before deducting interest expense, income taxes, depreciation and amortization (“EBITDA”)).  Therefore, the Partnership is subject to interest rate risk on the variable component of the interest rate.  From time to time, the Partnership enters into interest rate swap agreements to manage a part of its variable interest rate risk. The interest rate swaps have been designated as, and are accounted for as, cash flow hedges.  The fair value of the interest rate swaps are determined using an income approach, whereby future settlements under the swaps are converted into a single present value, with fair value being based on the value of current market expectations about those future amounts.  Changes in the fair value are recognized in OCI until the hedged item is recognized in earnings.  However, due to changes in the underlying interest rate environment, the corresponding value in OCI is subject to change prior to its impact on earnings.

Valuation of Derivative Instruments.  The Partnership measures the fair value of its exchange-traded options and futures contracts using quoted market prices found on the New York Mercantile Exchange (the “NYMEX”) (Level 1 inputs); the fair value of its swap contracts using quoted forward prices, and the fair value of its interest rate swaps using model-derived valuations driven by observable projected movements of the 3-month LIBOR (Level 2 inputs); and the fair value of its over-the-counter options contracts using Level 3 inputs.  The Partnership’s over-the-counter options contracts are valued based on an internal option model.  The inputs utilized in the model are based on publicly available information as well as broker quotes.  The significant unobservable inputs used in the fair value measurements of the Partnership’s over-the-counter options contracts are interest rate and market volatility.

The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of June 24, 2017 and September 24, 2016, respectively:

	As of June 24, 2017			As of September 24, 2016
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	866	Other current assets	$	3,306
	Other assets		1,079	Other assets		1,546
		$	1,945		$	4,852
Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swap	Other current liabilities	$	—	Other current liabilities	$	205
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current liabilities	$	2,806	Other current liabilities	$	1,002
	Other liabilities		—	Other liabilities		1,353
		$	2,806		$	2,355

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The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended					Nine Months Ended
	June 24, 2017					June 25, 2016
	Assets			Liabilities		Assets			Liabilities
Beginning balance of over-the-counter options	$	809		$	—	$	2,781		$	347
Beginning balance realized during the period		(589	)		—		(2,546	)		(275	)
Contracts purchased during the period		—			—		762			—
Change in the fair value of outstanding contracts		(115	)		—		(234	)		(72	)
Ending balance of over-the-counter options	$	105		$	—	$	763		$	—

As of June 24, 2017 and September 24, 2016, the Partnership’s outstanding commodity-related derivatives had a weighted average maturity of approximately seven and six months, respectively.

The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income, as applicable, for the three and nine months ended June 24, 2017 and June 25, 2016 are as follows:

Three Months Ended June 24, 2017

Three Months Ended June 25, 2016

Derivatives in Cash Flow

Gains (Losses) Recognized  in OCI

Gains (Losses) Reclassified from Accumulated OCI into Income

Gains (Losses) Recognized  in OCI

Gains (Losses) Reclassified from Accumulated OCI into Income

Hedging Relationships

(Effective Portion)

Location

Amount

(Effective Portion)

Location

Amount

Interest rate swap

$

—

Interest expense

$

—

$

(107

)

Interest expense

$

(252

)

Derivatives Not Designated as Hedging Instruments

Unrealized Gains (Losses) Recognized in Income

Unrealized Gains (Losses) Recognized in Income

Location

Amount

Location

Amount

Commodity-related    derivatives

Cost of products sold

$

(655

)

Cost of products sold

$

(56

)

	Nine Months Ended June 24, 2017							Nine Months Ended June 25, 2016
Derivatives in Cash Flow	Gains (Losses) Recognized  in OCI			Gains (Losses) Reclassified from Accumulated OCI into Income				Gains (Losses) Recognized  in OCI			Gains (Losses) Reclassified from Accumulated OCI into Income
Hedging Relationships	(Effective Portion)			Location	Amount			(Effective Portion)			Location	Amount
Interest rate swap	$	(10	)	Interest expense	$	(215	)	$	(47	)	Interest expense	$	(844	)
Derivatives Not Designated as Hedging Instruments				Unrealized Gains (Losses) Recognized in Income							Unrealized Gains (Losses) Recognized in Income
				Location	Amount						Location	Amount
Commodity-related    derivatives				Cost of products sold	$	(2,708	)				Cost of products sold	$	(2,005	)

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The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:

	As of June 24, 2017							As of September 24, 2016
						Net amounts							Net amounts
						presented in the							presented in the
	Gross amounts		Effects of netting			balance sheet		Gross amounts		Effects of netting			balance sheet
Asset Derivatives
Commodity-related derivatives	$	6,709	$	(4,764	)	$	1,945	$	6,842	$	(1,990	)	$	4,852
Interest rate swap		—		—			—		230		(230	)		—
	$	6,709	$	(4,764	)	$	1,945	$	7,072	$	(2,220	)	$	4,852
Liability Derivatives
Commodity-related derivatives	$	7,570	$	(4,764	)	$	2,806	$	4,345	$	(1,990	)	$	2,355
Interest rate swap		—		—			—		435		(230	)		205
	$	7,570	$	(4,764	)	$	2,806	$	4,780	$	(2,220	)	$	2,560

The Partnership had $2,593 and $206 posted cash collateral as of June 24, 2017 and September 24, 2016, respectively, with its brokers for outstanding commodity-related derivatives.

Bank Debt and Senior Notes.  The fair value of the borrowings under the Revolving Credit Facility (defined below in Note 7) approximates the carrying value since the interest rates are adjusted quarterly to reflect market conditions.  Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (also defined below in Note 7) of the Partnership are as follows:

	As of
	June 24,		September 24,
	2017		2016
7.375% senior notes due August 1, 2021	$	—	$	360,893
5.5% senior notes due June 1, 2024		522,811		534,188
5.75% senior notes due March 1, 2025		249,375		253,438
5.875% senior notes due March 1, 2027		350,000		—
	$	1,122,186	$	1,148,519

4. Inventories

Inventories are stated at the lower of cost or market.  Cost is determined using a weighted average method for propane, fuel oil and refined fuels and natural gas, and a standard cost basis for appliances, which approximates average cost.  Inventories consist of the following:

	As of
	June 24,		September 24,
	2017		2016
Propane, fuel oil and refined fuels and natural gas	$	40,642	$	43,905
Appliances		1,170		1,447
	$	41,812	$	45,352

5. Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net assets acquired.  Goodwill is subject to an impairment review at a reporting unit level, on an annual basis as of the end of fiscal July of each year, or when an event occurs or circumstances change that would indicate potential impairment.

The Partnership has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Partnership determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Partnership concludes otherwise, then it is required to perform the first step of the two-step impairment test.

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Under the two-step impairment test, the Partnership assesses the carrying value of goodwill at a reporting unit level based on an estimate of the fair value of the respective reporting unit.  Fair value of the reporting unit is estimated using discounted cash flow analyses taking into consideration estimated cash flows in a ten-year projection period and a terminal value calculation at the end of the projection period.  If the fair value of the reporting unit exceeds its carrying value, the goodwill associated with the reporting unit is not considered to be impaired.  If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized to the extent that the carrying amount of the associated goodwill, if any, exceeds the implied fair value of the goodwill.

The carrying values of goodwill assigned to the Partnership’s operating segments are as follows:

			Fuel oil and			Natural gas
	Propane		refined fuels			and electricity		Total
Balance as of September 24, 2016 and    June 24, 2017
Goodwill	$	1,082,297	$	10,900		$	7,900	$	1,101,097
Accumulated adjustments		—		(6,462	)		—		(6,462	)
	$	1,082,297	$	4,438		$	7,900	$	1,094,635

Other intangible assets consist of the following:

	As of
	June 24,			September 24,
	2017			2016
Customer relationships	$	492,656		$	492,656
Non-compete agreements		31,040			31,040
Tradenames		3,482			3,482
Other		1,967			1,967
		529,145			529,145
Less: accumulated amortization
Customer relationships		(265,879	)		(225,634	)
Non-compete agreements		(24,583	)		(22,533	)
Tradenames		(3,482	)		(3,482	)
Other		(1,236	)		(1,167	)
		(295,180	)		(252,816	)
	$	233,965		$	276,329

6. Net Income Per Common Unit

Computations of basic income per Common Unit are performed by dividing net income by the weighted average number of outstanding Common Units, and vested (and unissued) restricted units granted under the Partnership’s Restricted Unit Plans, as defined below, to retirement-eligible grantees.  Computations of diluted income per Common Unit are performed by dividing net income by the weighted average number of outstanding Common Units and unissued restricted units granted under the Restricted Unit Plans.  In computing diluted net income per Common Unit, weighted average units outstanding used to compute basic net income per Common Unit were increased by 183,752 and 179,864 units for the nine months ended June 24, 2017 and June 25, 2016, respectively, to reflect the potential dilutive effect of the unvested restricted units outstanding using the treasury stock method.  Diluted loss per unit for the three months ended June 24, 2017 and June 25, 2016 does not include unvested Restricted Units as their effect would be anti-dilutive.  

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7. Long-Term Borrowings

Long-term borrowings consist of the following:

	As of
	June 24,			September 24,
	2017			2016 (1)
7.375% senior notes, due August 1, 2021, including    unamortized premium of $-0- and $16,992, respectively	$	—		$	363,172
5.5% senior notes, due June 1, 2024		525,000			525,000
5.75% senior notes, due March 1, 2025		250,000			250,000
5.875% senior notes due March 1, 2027		350,000			—
Revolving Credit Facility, due March 3, 2021		141,145			100,000
Less: unamortized debt issuance costs		(15,986	)		(13,670	)
	$	1,250,159		$	1,224,502

(1) Long-term borrowings as of September 24, 2016 reflect the retrospective impact from the adoption of new accounting guidance regarding the balance sheet classification of debt issuance costs (See Note 2).

Senior Notes

2021 Senior Notes

On August 1, 2012, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., issued $503,443 in aggregate principal amount of unregistered 7.375% senior notes due August 1, 2021 (the “2021 Senior Notes”) in a private placement in conjunction with the acquisition of the retail propane assets and operations of Inergy, L.P.  The 2021 Senior Notes required semi-annual interest payments in February and August.  On December 19, 2012, the Partnership completed an offer to exchange its then-outstanding unregistered 7.375% senior notes due 2021 for an equal principal amount of 7.375% senior notes due 2021 that were registered under the Securities Act of 1933, as amended.

On August 2, 2013, the Partnership repurchased, pursuant to an optional redemption, $133,400 of its 2021 Senior Notes using net proceeds from a public offering of Common Units and net proceeds from the underwriters’ exercise of their over-allotment option to purchase additional Common Units.  In addition, on August 6, 2013, the Partnership repurchased $23,863 of 2021 Senior Notes in a private transaction using cash on hand.  

On February 14, 2017, the Partnership repurchased, satisfied and discharged all of its remaining outstanding 2021 Senior Notes with net proceeds from the issuance of the 2027 Senior Notes, as defined below, and borrowings under the Revolving Credit Facility, also as defined below, pursuant to a tender offer and redemption.  In connection with this tender offer and redemption, the Partnership recognized a loss on the extinguishment of debt of $1,567 consisting of $15,078 for the redemption premium and related fees, as well as the write-off of $2,272 and ($15,783) in unamortized debt origination costs and unamortized premium, respectively.

2024 Senior Notes

On May 27, 2014, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., completed a public offering of $525,000 in aggregate principal amount of 5.5% senior notes due June 1, 2024 (the “2024 Senior Notes”).  The 2024 Senior Notes were issued at 100% of the principal amount and require semi-annual interest payments in June and December.  The net proceeds from the issuance of the 2024 Senior Notes, along with cash on hand, were used to repurchase,  satisfy and discharge all of the Partnership’s then-outstanding 7.5% senior notes due in 2018.

2025 Senior Notes

On February 25, 2015, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., completed a public offering of $250,000 in aggregate principal amount of 5.75% senior notes due March 1, 2025 (the “2025 Senior Notes”).  The 2025 Senior Notes were issued at 100% of the principal amount and require semi-annual interest payments in March and September.  The net proceeds from the issuance of the 2025 Senior Notes, along with cash on hand, were used to repurchase, satisfy and discharge all of the Partnership’s then-outstanding 7.375% senior notes due in 2020.  

14

2027 Senior Notes

On February 14, 2017, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., completed a public offering of $350,000 in aggregate principal amount of 5.875% senior notes due March 1, 2027 (the “2027 Senior Notes”).  The 2027 Senior Notes were issued at 100% of the principal amount and require semi-annual interest payments in March and September.  The net proceeds from the issuance of the 2027 Senior Notes, along with borrowings under the Revolving Credit Facility, were used to repurchase, satisfy and discharge all of the 2021 Senior Notes.

The Partnership’s obligations under the 2024 Senior Notes, 2025 Senior Notes and 2027 Senior Notes (collectively, the “Senior Notes”) are unsecured and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment with any future senior indebtedness.  The Senior Notes are structurally subordinated to, which means they rank effectively behind, any debt and other liabilities of the Operating Partnership.  The Partnership is permitted to redeem some or all of the Senior Notes at redemption prices and times as specified in the indentures governing the Senior Notes.  The Senior Notes each have a change of control provision that would require the Partnership to offer to repurchase the notes at 101% of the principal amount repurchased, if a change of control, as defined in the indenture, occurs and is followed by a rating decline (a decrease in the rating of the notes by either Moody’s Investors Service or Standard and Poor’s Rating Group by one or more gradations) within 90 days of the consummation of the change of control.

Credit Agreement.  The Operating Partnership has an amended and restated credit agreement, dated March 3, 2016 (the “Amended Credit Agreement”) that provides for a five-year $500,000 revolving credit facility (the “Revolving Credit Facility”) with a maturity date of March 3, 2021, of which $141,145 and $100,000 was outstanding as of June 24, 2017 and September 24, 2016, respectively.  Borrowings under the Revolving Credit Facility may be used for general corporate purposes, including working capital, capital expenditures and acquisitions.  The Operating Partnership has the right to prepay any borrowings under the Revolving Credit Facility, in whole or in part, without penalty at any time prior to maturity.  In connection with the March 3, 2016 amendment and restatement, the Partnership recognized a non-cash charge of $292 during the second quarter of fiscal 2016 to write off a portion of unamortized debt origination costs of the previous credit agreement.  

The Amended Credit Agreement contains certain restrictive and affirmative covenants applicable to the Operating Partnership, its subsidiaries and the Partnership, as well as certain financial covenants, including (a) requiring the Partnership’s Consolidated Interest Coverage Ratio, as defined in the Amended Credit Agreement, to be not less than 2.5 to 1.0 as of the end of any fiscal quarter, (b) prohibiting the Total Consolidated Leverage Ratio, as defined in the Amended Credit Agreement, of the Partnership from being greater than 5.5 to 1.0 as of the end of any fiscal quarter and (c) prohibiting the Senior Secured Consolidated Leverage Ratio, as defined in the Amended Credit Agreement, of the Operating Partnership from being greater than 3.0 to 1.0 as of the end of any fiscal quarter.  

On May 1, 2017, the Operating Partnership secured an amendment to the Amended Credit Agreement that provides for certain modifications to the terms of the Amended Credit Agreement, including the following: (i) amendment of the definition of Applicable Rate (as defined in the Amended Credit Agreement) to add an additional pricing level of 3.00% for Eurodollar Rate Loans and Letter of Credit Fees, 2.00% for Base Rate Loans and 0.500% for Commitment Fee, which would be applicable should the Total Consolidated Leverage Ratio exceed 5.5 to 1.0 at the end of the applicable measuring period and (ii) amendment of the maximum permitted Total Consolidated Leverage Ratio from 5.5 to 1.0 at the end of any fiscal quarter to 5.95 to 1.0 for each fiscal quarter ending in June, September and December 2017, and March and June 2018, 5.75 to 1.0 for the fiscal quarter ending in September 2018, and 5.5 to 1.0 for the fiscal quarter ending in December 2018 and for each fiscal quarter thereafter.

The Partnership and certain subsidiaries of the Operating Partnership act as guarantors with respect to the obligations of the Operating Partnership under the Amended Credit Agreement pursuant to the terms and conditions set forth therein.  The obligations under the Amended Credit Agreement are secured by liens on substantially all of the personal property of the Partnership, the Operating Partnership and their subsidiaries, as well as mortgages on certain real property.

Borrowings under the Revolving Credit Facility bear interest at prevailing interest rates based upon, at the Operating Partnership’s option, LIBOR plus the Applicable Rate, or the base rate, defined as the higher of the Federal Funds Rate plus ½ of 1%, the administrative agent bank’s prime rate, or LIBOR plus 1%, plus in each case the Applicable Rate.  The Applicable Rate is dependent upon the Partnership’s Total Consolidated Leverage Ratio.  As of June 24, 2017, the interest rate for borrowings under the Revolving Credit Facility was approximately 3.6%.  The interest rate and the Applicable Rate will be reset following the end of each calendar quarter.

15

In connection with the previous credit agreement, the Operating Partnership entered into an interest rate swap agreement with a notional amount of $100,000, an effective date of June 25, 2013 and a termination date of January 5, 2017.  Under this interest rate swap agreement, the Operating Partnership paid a fixed interest rate of 1.63% to the issuing lender on the notional principal amount outstanding, and the issuing lender paid the Operating Partnership a floating rate, namely LIBOR, on the same notional principal amount.  The interest rate swap was designated as a cash flow hedge.  The Partnership did not enter into a new interest rate swap agreement upon termination.

As of June 24, 2017, the Partnership had standby letters of credit issued under the Revolving Credit Facility of $43,256 which expire periodically through April 3, 2018.

The Amended Credit Agreement and the Senior Notes both contain various restrictive and affirmative covenants applicable to the Operating Partnership, its subsidiaries and the Partnership, respectively, including (i) restrictions on the incurrence of additional indebtedness, and (ii) restrictions on certain liens, investments, guarantees, loans, advances, payments, mergers, consolidations, distributions, sales of assets and other transactions.  Under the Amended Credit Agreement and the indentures governing the Senior Notes, the Operating Partnership and the Partnership are generally permitted to make cash distributions equal to available cash, as defined, as of the end of the immediately preceding quarter, if no event of default exists or would exist upon making such distributions, and with respect to the indentures governing the Senior Notes, the Partnership’s consolidated fixed charge coverage ratio, as defined, is greater than 1.75 to 1.  The Partnership and the Operating Partnership were in compliance with all covenants and terms of the Senior Notes and the Amended Credit Agreement as of June 24, 2017.

The aggregate amounts of long-term debt maturities subsequent to June 24, 2017 are as follows: fiscal 2017: $-0-; fiscal 2018: $-0-; fiscal 2019: $-0-; fiscal 2020: $-0-; fiscal 2021: $141,145; and thereafter: $1,125,000.

8. Distributions of Available Cash

The Partnership makes distributions to its partners no later than 45 days after the end of each fiscal quarter in an aggregate amount equal to its Available Cash for such quarter.  Available Cash, as defined in the Partnership Agreement, generally means all cash on hand at the end of the respective fiscal quarter less the amount of cash reserves established by the Board of Supervisors in its reasonable discretion for future cash requirements.  These reserves are retained for the proper conduct of the Partnership’s business, the payment of debt principal and interest and for distributions during the next four quarters.

On July 20, 2017, the Partnership announced a quarterly distribution of $0.8875 per Common Unit, or $3.55 per Common Unit on an annualized basis, in respect of the third quarter of fiscal 2017, payable on August 8, 2017 to holders of record on August 1, 2017.

9. Unit-Based Compensation Arrangements

The Partnership recognizes compensation cost over the respective service period for employee services received in exchange for an award of equity, or equity-based compensation, based on the grant date fair value of the award.  The Partnership measures liability awards under an equity-based payment arrangement based on remeasurement of the award’s fair value at the conclusion of each interim and annual reporting period until the date of settlement, taking into consideration the probability that the performance conditions will be satisfied.

Restricted Unit Plan.  On July 22, 2009, the Partnership adopted the Suburban Propane Partners, L.P. 2009 Restricted Unit Plan, as amended (the “Restricted Unit Plan”), which authorizes the issuance of Common Units to executives, managers and other employees and members of the Board of Supervisors of the Partnership.  The total number of Common Units authorized for issuance under the Restricted Unit Plan was 2,400,000 as of June 24, 2017.  In accordance with an August 6, 2013 amendment to the Restricted Unit Plan, unless otherwise stipulated by the Compensation Committee of the Partnership’s Board of Supervisors on or before the grant date, all restricted unit awards granted after the date of the amendment will vest 33.33% on each of the first three anniversaries of the award grant date.  Prior to the August 6, 2013 amendment, unless otherwise stipulated by the Compensation Committee of the Partnership’s Board of Supervisors on or before the grant date, restricted units awarded under the Restricted Unit Plan vest over time with 25% of the Common Units vesting at the end of each of the third and fourth anniversaries of the grant date and the remaining 50% of the Common Units vesting at the end of the fifth anniversary of the grant date.  The Restricted Unit Plan participants are not eligible to receive quarterly distributions on, or vote, their respective restricted units until vested.  Restricted units cannot be sold or transferred prior to vesting.  The value of the restricted unit is established by the market price of the Common Unit on the date of grant, net of estimated future distributions during the vesting period.  Restricted units are subject to forfeiture in certain circumstances as defined in the Restricted Unit Plan. Compensation expense for the unvested awards is recognized ratably over the vesting periods and is net of estimated forfeitures.

16

During the nine months ended June 24, 2017, the Partnership awarded 323,715 restricted units under the Restricted Unit Plan at an aggregate grant date fair value of $6,799.  The following is a summary of activity for the Restricted Unit Plan for the nine months ended June 24, 2017:

				WeightedAverage
	Restricted			Grant Date Fair
	Units			Value Per Unit
Outstanding September 24, 2016		654,120		$	26.74
Awarded		323,715			21.00
Forfeited		(1,758	)		(30.65	)
Vested (with Common Units issued)		(323,752	)		(30.11	)
Outstanding June 24, 2017		652,325		$	22.21

As of June 24, 2017, unrecognized compensation cost related to unvested restricted units awarded under the Restricted Unit Plan amounted to $4,325.  Compensation cost associated with unvested awards is expected to be recognized over a weighted-average period of 1 year.  Compensation expense recognized under the Restricted Unit Plan, net of forfeitures, for the three and nine months ended June 24, 2017 was $1,372 and $6,209, respectively, and $1,671 and $7,062 for the three and nine months ended June 25, 2016, respectively.

Distribution Equivalent Rights Plan.  On January 17, 2017, the Partnership adopted the Distribution Equivalent Rights Plan (the “DER Plan”), which gives the Compensation Committee of the Partnership’s Board of Supervisors discretion to award distribution equivalent rights (“DERs”) to executive officers of the Partnership.  Once awarded, DERs entitle the grantee to a cash payment each time the Board of Supervisors declares a cash distribution on the Partnership’s Common Units, which cash payment will be equal to an amount calculated by multiplying the number of unvested restricted units which are held by the grantee on the record date of the distribution, by the amount of the declared distribution per Common Unit.  Compensation expense recognized under the DER Plan was $205 and $640 for the three and nine months ended June 24, 2017, respectively.

Long-Term Incentive Plan.  On August 6, 2013, the Partnership adopted the 2014 Long-Term Incentive Plan (“LTIP”).  The LTIP is a non-qualified, unfunded, long-term incentive plan for officers and key employees that provides for payment, in the form of cash, of an award of equity-based compensation at the end of a three-year performance period.  The level of compensation earned under the LTIP is based on the Partnership’s average distribution coverage ratio over the three-year measurement period.  The Partnership’s average distribution coverage ratio is calculated as the Partnership’s average distributable cash flow, as defined by the LTIP, for each of the three years in the measurement period, subject to certain adjustments as set forth in the LTIP, divided by the amount of annualized cash distributions to be paid by the Partnership, based on the annualized cash distribution rate at the beginning of the measurement period.

As a result of the quarterly remeasurement of the liability for awards under the LTIP, compensation expense for the three and nine months ended June 24, 2017 reflected income of $550 and $2,026, respectively, and income of $671 and $1,401 for the three and nine months ended June 25, 2016, respectively. As of June 24, 2017 and September 24, 2016, the Partnership had a liability included within accrued employment and benefit costs (or other liabilities, as applicable) of $-0- and $2,026, respectively, related to estimated future payments under the LTIP.

10. Commitments and Contingencies

Self-Insurance.  The Partnership is self-insured for general and product, workers’ compensation and automobile liabilities up to predetermined thresholds above which third party insurance applies. As of June 24, 2017 and September 24, 2016, the Partnership had accrued insurance liabilities of $66,190 and $59,676, respectively, representing the total estimated losses under these self-insurance programs. For the portion of the estimated liability that exceeds insurance deductibles, the Partnership records an asset within other assets (or other current assets, as applicable) related to the amount of the liability expected to be covered by insurance which amounted to $18,827 and $15,524 as of June 24, 2017 and September 24, 2016, respectively.

Legal Matters.  The Partnership’s operations are subject to operating hazards and risks normally incidental to handling, storing and delivering combustible liquids such as propane.  The Partnership has been, and will continue to be, a defendant in various legal proceedings and litigation as a result of these operating hazards and risks, and as a result of other aspects of its business.  During the first quarter of fiscal 2016, the Partnership settled a product liability matter for $3,000.  Although any litigation is inherently uncertain, based on past experience, the information currently available to the Partnership, and the amount of its accrued insurance liabilities, the Partnership does not believe that currently pending or threatened litigation matters, or known claims or known contingent claims, will have a material adverse effect on its results of operations, financial condition or cash flow.

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11. Guarantees

The Partnership has residual value guarantees associated with certain of its operating leases, related primarily to transportation equipment, with remaining lease periods scheduled to expire periodically through fiscal 2024.  Upon completion of the lease period, the Partnership guarantees that the fair value of the equipment will equal or exceed the guaranteed amount, or the Partnership will pay the lessor the difference.  Although the fair value of equipment at the end of its lease term has historically exceeded the guaranteed amounts, the maximum potential amount of aggregate future payments the Partnership could be required to make under these leasing arrangements, assuming the equipment is deemed worthless at the end of the lease term, was $14,675 as of June 24, 2017.  The fair value of residual value guarantees for outstanding operating leases was de minimis as of June 24, 2017 and September 24, 2016.

12. Pension Plans and Other Postretirement Benefits

The following table provides the components of net periodic benefit costs:

	Pension Benefits
	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Interest cost	$	1,041		$	1,260		$	3,123		$	3,781
Expected return on plan assets		(537	)		(854	)		(1,611	)		(2,563	)
Amortization of net loss (gain)		1,301			1,304			3,901			3,913
Net periodic benefit cost	$	1,805		$	1,710		$	5,413		$	5,131

	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Interest cost	$	96		$	130		$	288		$	400
Amortization of prior service credits		—			(100	)		—			(300	)
Amortization of net loss (gain)		(98	)		(74	)		(292	)		(223	)
Net periodic benefit cost	$	(2	)	$	(44	)	$	(4	)	$	(123	)

The Partnership expects to contribute approximately $9,527 to the defined benefit pension plan during fiscal 2017, of which $7,542 was contributed during the nine months ended June 24, 2017. The projected annual contribution requirements related to the Partnership’s postretirement health care and life insurance benefit plan for fiscal 2017 is $922, of which $899 was contributed during the nine months ended June 24, 2017.

The Partnership contributes to multi-employer pension plans (“MEPPs”) in accordance with various collective bargaining agreements covering union employees. As one of the many participating employers in these MEPPs, the Partnership is responsible with the other participating employers for any plan underfunding.  As of June 24, 2017 and September 24, 2016, the Partnership’s estimated obligation to these MEPPs was $22,960 and $24,205, respectively, as a result of its voluntary withdrawal from certain MEPPs.

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13. Amounts Reclassified Out of Accumulated Other Comprehensive Income

The following table summarizes amounts reclassified out of accumulated other comprehensive (loss) income for the three and nine months ended June 24, 2017 and June 25, 2016:

	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Cash Flow Hedges
Balance, beginning of period	$	—		$	(659	)	$	(205	)	$	(1,311	)
Other comprehensive income before reclassifications:
Unrealized (losses) gains		—			(107	)		(10	)		(47	)
Reclassifications to earnings:
Realized losses (a)		—			252			215			844
Other comprehensive income		—			145			205			797
Balance, end of period	$	—		$	(514	)	$	—		$	(514	)
Pension Benefits
Balance, beginning of period	$	(48,791	)	$	(50,227	)	$	(51,391	)	$	(52,836	)
Reclassifications to earnings:
Amortization of net loss (b)		1,301			1,304			3,901			3,913
Other comprehensive income		1,301			1,304			3,901			3,913
Balance, end of period	$	(47,490	)	$	(48,923	)	$	(47,490	)	$	(48,923	)
Postretirement Benefits
Balance, beginning of period	$	5,570		$	4,915		$	5,764		$	5,264
Reclassifications to earnings:
Amortization of prior service credits (b)		—			(100	)		—			(300	)
Amortization of net gain (b)		(98	)		(74	)		(292	)		(223	)
Other comprehensive loss		(98	)		(174	)		(292	)		(523	)
Balance, end of period	$	5,472		$	4,741		$	5,472		$	4,741
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	(43,221	)	$	(45,971	)	$	(45,832	)	$	(48,883	)
Other comprehensive income before reclassifications		—			(107	)		(10	)		(47	)
Reclassifications to earnings		1,203			1,382			3,824			4,234
Other comprehensive income		1,203			1,275			3,814			4,187
Balance, end of period	$	(42,018	)	$	(44,696	)	$	(42,018	)	$	(44,696	)

(a) Reclassification of realized losses on cash flow hedges are recognized in interest expense.

(b) These amounts are included in the computation of net periodic benefit cost.  See Note 12, “Pension Plans and Other Postretirement Benefits.”

14. Income Taxes

For federal income tax purposes, as well as for state income tax purposes in the majority of the states in which the Partnership operates, the earnings attributable to the Partnership and the Operating Partnership are not subject to income tax at the partnership level.  With the exception of those states that impose an entity-level income tax on partnerships, the taxable income or loss attributable to the Partnership and to the Operating Partnership, which may vary substantially from the income (loss) before income taxes reported by the Partnership in the condensed consolidated statement of operations, are includable in the federal and state income tax returns of the Common Unitholders.  The aggregate difference in the basis of the Partnership’s net assets for financial and tax reporting purposes cannot be readily determined as the Partnership does not have access to each Common Unitholder’s basis in the Partnership.

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As described in Note 1, the earnings of the Corporate Entities are subject to corporate level federal and state income tax.  However, based upon past performance, the Corporate Entities are currently reporting an income tax provision composed primarily of minimum state income taxes.  A full valuation allowance has been provided against the deferred tax assets based upon an analysis of all available evidence, both negative and positive at the balance sheet date, which, taken as a whole, indicates that it is more likely than not that sufficient future taxable income will not be available to utilize the assets.  Management’s periodic reviews include, among other things, the nature and amount of the taxable income and expense items, the expected timing of when assets will be used or liabilities will be required to be reported and the reliability of historical profitability of businesses expected to provide future earnings.  Furthermore, management considered tax-planning strategies it could use to increase the likelihood that the deferred assets will be realized.

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.

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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 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Revenues:
Propane	$	188,406		$	172,322		$	843,519		$	752,013
Fuel oil and refined fuels		12,886			12,459			69,612			61,961
Natural gas and electricity		11,923			10,596			44,229			38,232
All other		9,680			9,722			33,420			32,890
Total revenues	$	222,895		$	205,099		$	990,780		$	885,096
Operating (loss) income:
Propane	$	11,323		$	14,182		$	201,332		$	199,042
Fuel oil and refined fuels		199			(854	)		9,875			7,585
Natural gas and electricity		2,806			1,969			11,461			8,665
All other		(5,747	)		(6,014	)		(16,139	)		(18,882	)
Corporate		(19,643	)		(20,063	)		(61,249	)		(64,633	)
Total operating (loss) income		(11,062	)		(10,780	)		145,280			131,777
Reconciliation to net (loss) income:
Loss on debt extinguishment		—			—			1,567			292
Interest expense, net		18,502			18,638			54,820			56,383
Provision for income taxes		152			180			308			423
Net (loss) income	$	(29,716	)	$	(29,598	)	$	88,585		$	74,679
Depreciation and amortization:
Propane	$	27,787		$	27,324		$	83,243		$	81,949
Fuel oil and refined fuels		625			673			1,923			2,055
Natural gas and electricity		—			—			—			3
All other		76			73			222			234
Corporate		3,337			4,218			10,368			12,835
Total depreciation and amortization	$	31,825		$	32,288		$	95,756		$	97,076

	As of
	June 24,		September24,
	2017		2016
Assets:
Propane	$	2,081,268	$	2,141,108
Fuel oil and refined fuels		51,591		53,266
Natural gas and electricity		12,592		13,415
All other		1,907		2,185
Corporate		43,942		72,325
Total assets	$	2,191,300	$	2,282,299

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion of the financial condition and results of operations of the Partnership as of and for the three and nine months ended June 24, 2017. The discussion should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the historical consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended September 24, 2016.

Executive Overview

The following are factors that regularly affect our operating results and financial condition.  In addition, our business is subject to the risks and uncertainties described in Item 1A included in the Annual Report on Form 10-K for the fiscal year ended September 24, 2016.

Product Costs and Supply

The level of profitability in the retail propane, fuel oil, natural gas and electricity businesses is largely dependent on the difference between retail sales price and our costs to acquire and transport products.  The unit cost of our products, particularly propane, fuel oil and natural gas, is subject to volatility as a result of supply and demand dynamics or other market conditions, including, but not limited to, economic and political factors impacting crude oil and natural gas supply or pricing.  We enter into product supply contracts that are generally one-year agreements subject to annual renewal, and also purchase product on the open market.  We attempt to reduce price risk by pricing product on a short-term basis.  Our propane supply contracts typically provide for pricing based upon index formulas using the posted prices established at major supply points such as Mont Belvieu, Texas, or Conway, Kansas (plus transportation costs) at the time of delivery.

To supplement our annual purchase requirements, we may utilize forward fixed price purchase contracts to acquire a portion of the propane that we resell to our customers, which allows us to manage our exposure to unfavorable changes in commodity prices and to assure adequate physical supply.  The percentage of contract purchases, and the amount of supply contracted for under forward contracts at fixed prices, will vary from year to year based on market conditions.

Changes in our costs to acquire and transport products can occur rapidly over a short period of time and can impact profitability.  There is no assurance that we will be able to pass on product acquisition and transportation cost increases fully or immediately, particularly when such costs increase rapidly.  Therefore, average retail sales prices can vary significantly from year to year as our costs fluctuate with the propane, fuel oil, crude oil and natural gas commodity markets and infrastructure conditions.  In addition, periods of sustained higher commodity and/or transportation prices can lead to customer conservation, resulting in reduced demand for our product.

Seasonality

The retail propane and fuel oil distribution businesses, as well as the natural gas marketing business, are seasonal because these fuels are primarily used for heating in residential and commercial buildings.  Historically, approximately two‑thirds of our retail propane volume is sold during the six-month peak heating season from October through March. The fuel oil business tends to experience greater seasonality given its more limited use for space heating and approximately three-fourths of our fuel oil volumes are sold between October and March.  Consequently, sales and operating profits are concentrated in our first and second fiscal quarters.  Cash flows from operations, therefore, are greatest during the second and third fiscal quarters when customers pay for product purchased during the winter heating season.  We expect lower operating profits and either net losses or lower net income during the period from April through September (our third and fourth fiscal quarters).  To the extent necessary, we will reserve cash from the second and third quarters for distribution to holders of our Common Units in the fourth quarter and the following fiscal year first quarter.

Weather

Weather conditions have a significant impact on the demand for our products, in particular propane, fuel oil and natural gas, for both heating and agricultural purposes.  Many of our customers rely heavily on propane, fuel oil or natural gas as a heating source.  Accordingly, the volume sold is directly affected by the severity of the winter weather in our service areas, which can vary substantially from year to year.  In any given area, sustained warmer than normal temperatures will tend to result in reduced propane, fuel oil and natural gas consumption, while sustained colder than normal temperatures will tend to result in greater consumption.

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Hedging and Risk Management Activities

We engage in hedging and risk management activities to reduce the effect of price volatility on our product costs and to ensure the availability of product during periods of short supply.  We enter into propane forward, options and swap agreements with third parties, and use futures and options contracts traded on the New York Mercantile Exchange (“NYMEX”) to purchase and sell propane, fuel oil and crude oil at fixed prices in the future.  The majority of the futures, forward and options agreements are used to hedge price risk associated with propane and fuel oil physical inventory, as well as, in certain instances, forecasted purchases of propane or fuel oil.  In addition, we sell propane and fuel oil to customers at fixed prices, and enter into derivative instruments to hedge a portion of our exposure to fluctuations in commodity prices as a result of selling the fixed price contracts. Forward contracts are generally settled physically at the expiration of the contract whereas futures, options and swap contracts are generally settled at the expiration of the contract through a net settlement mechanism.  Although we use derivative instruments to reduce the effect of price volatility associated with priced physical inventory and forecasted transactions, we do not use derivative instruments for speculative trading purposes. Risk management activities are monitored by an internal Commodity Risk Management Committee, made up of six members of management and reporting to the Audit Committee, through enforcement of our Hedging and Risk Management Policy.

Critical Accounting Policies and Estimates

Our significant accounting policies are summarized in Note 2, “Summary of Significant Accounting Policies,” included within the Notes to Consolidated Financial Statements section of our Annual Report on Form 10-K for the fiscal year ended September 24, 2016.

Certain amounts included in or affecting our consolidated financial statements and related disclosures must be estimated, requiring management to make certain assumptions with respect to values or conditions that cannot be known with certainty at the time the financial statements are prepared.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We are also subject to risks and uncertainties that may cause actual results to differ from estimated results. Estimates are used when accounting for depreciation and amortization of long-lived assets, employee benefit plans, self-insurance and litigation reserves, environmental reserves, allowances for doubtful accounts, asset valuation assessments and valuation of derivative instruments.  We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known to us.  Management has reviewed these critical accounting estimates and related disclosures with the Audit Committee of our Board of Supervisors.

Results of Operations and Financial Condition

Consistent with the seasonal nature of the propane and fuel oil businesses, we typically experience a net loss in the third quarter of our fiscal year.  Net loss for the third quarter of fiscal 2017 was $29.7 million, or $0.48 per Common Unit, compared to a net loss of $29.6 million, or $0.49 per Common Unit, in the prior year third quarter.  

Net loss and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the third quarter of fiscal 2016 included a $9.8 million gain from the sale of certain assets and operations in a non-strategic market of the propane segment, partially offset by a $6.6 million charge related to our voluntary full withdrawal from a multi-employer pension plan covering certain employees acquired in connection with our 2012 acquisition of the retail propane assets and operations of Inergy, L.P.  Excluding the effects of the foregoing items in the prior year and unrealized (non-cash) mark-to-market adjustments on derivative instruments in both years, Adjusted EBITDA (as defined and reconciled below) increased to $21.4 million for the third quarter of fiscal 2017 from $18.4 million in the prior year third quarter.

Retail propane gallons sold in the third quarter of fiscal 2017 of 77.7 million gallons decreased 2.5 million gallons, or 3.1%, compared to the prior year third quarter. Sales of fuel oil and other refined fuels decreased approximately 0.5 million gallons compared to the prior year. Although weather during the third quarter typically has less of an impact on volumes sold than it does during the heating season, volumes in the third quarter of fiscal 2017 were adversely impacted by warmer than normal temperatures, particularly during the month of April where average temperatures across all of our service territories (as measured by heating degree days) were 23% warmer than normal and 12% warmer than April 2016, according to the National Oceanic and Atmospheric Administration.  From an overall weather perspective, average temperatures across all of our service territories for the third quarter of fiscal 2017 were 18% warmer than normal and 9% warmer than the prior year third quarter.  

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Revenues in the third quarter of fiscal 2017 of $222.9 million increased $17.8 million, or 8.7%, compared to the prior year third quarter, primarily due to higher retail selling prices associated with higher wholesale product costs, offset to an extent by lower volumes sold. Average propane prices (basis Mont Belvieu, Texas) and fuel oil prices were 27.9% and 8.6% higher than the prior year third quarter, respectively. Cost of products sold for the third quarter of fiscal 2017 of $92.1 million increased $16.6 million, or 22.0%, compared to the prior year third quarter, primarily due to higher wholesale product costs. Cost of products sold included a $0.7 million unrealized (non-cash) loss attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $0.1 million unrealized (non-cash) loss in the prior year third quarter. These unrealized losses are excluded from Adjusted EBITDA for both periods in the table below.  

Combined operating and general and administrative expenses of $110.0 million for the third quarter of fiscal 2017 were $7.8 million, or 6.6%, lower than the prior year third quarter, primarily due to lower payroll and benefit-related expenses attributable to a reduced headcount, and the charge recorded in the prior year third quarter for the multi-employer pension plan withdrawal discussed above.  

Depreciation and amortization expense of $31.8 million decreased $0.5 million, or 1.4%, compared to the prior year third quarter. Net interest expense of $18.5 million decreased $0.1 million compared to the prior year third quarter. During the third quarter of fiscal 2017, we funded a portion of our cash needs with $11.3 million of incremental borrowings under our Revolving Credit Facility.

As previously reported, we took proactive steps during the third quarter of fiscal 2017 to further strengthen our liquidity position in light of recent prolonged warm weather trends, by securing, on May 1, 2017, an amendment to the Amended Credit Agreement that provides for certain modifications to the terms of our Operating Partnership’s Revolving Credit Facility. The amendment provides added cushion under the consolidated leverage test, which we believe is a prudent measure that will add financial flexibility to support our cash needs and to continue to invest in our long-term strategic growth initiatives. Under this amendment, the maximum consolidated leverage ratio was increased from 5.50 to 5.95 starting with the recently concluded quarter and continuing through each of the subsequent fiscal quarters through June 2018, stepping down to 5.75 for the quarter ending September 2018 and then returning to the pre-amendment level of 5.50 for the fiscal quarter ending December 2018 and for each quarter thereafter.  For the recently concluded quarter, the actual consolidated leverage ratio was 5.19, which was below both the 5.95 maximum in effect and the 5.50 maximum in effect prior to this amendment.  See Item 1, Note 7 of this Quarterly Report.

As previously announced on July 20, 2017, the Partnership’s Board of Supervisors has declared a quarterly distribution of $0.8875 per Common Unit for the three months ended June 24, 2017.  The distribution is payable on August 8, 2017 to Common Unitholders of record as of August 1, 2017.

As we reported at the end of the second quarter of fiscal 2017, our goals as we plan for fiscal 2018 include restoring our balance sheet strength to provide a better path toward long-term profitable growth. We also indicated that we would be undertaking a thorough assessment of customer demand trends and expectations under varying weather scenarios, following record warm winters in the past two seasons. As a result, pending finalization of our business plans for fiscal 2018, at its meeting on August 1, 2017 our Board of Supervisors discussed reducing the distribution level by up to 33% beginning with the quarterly distribution to be paid in November 2017 in respect of the fourth quarter of fiscal 2017.   A final decision on the amount of the reduction in the distribution level will not be made until the Board meets again in October to declare the fourth quarter distribution.

This has been, and continues to be, a deliberate and thorough process to evaluate the business under many different circumstances, all with the goal of best positioning the business for long-term profitable growth, starting with a return to strong financial metrics.  A reduction in the annualized distribution would enhance our distribution coverage ratio, provide excess liquidity to reduce leverage and, more importantly, provide enhanced financial flexibility to support our growth initiatives.

Our anticipated cash requirements for the remainder of fiscal 2017 include: (i) maintenance and growth capital expenditures of approximately $8.0 million; (ii) interest and income tax payments of approximately $21.9 million; and (iii) cash distributions of approximately $54.3 million to our Common Unitholders based on the current quarterly distribution rate of $0.8875 per Common Unit.  Based on our current cash position as of June 24, 2017, availability of funds under our Revolving Credit Facility and expected cash flow from operating activities, we expect to have sufficient funds to meet our obligations, including for the remainder of fiscal 2017.

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Three Months Ended June 24, 2017 Compared to Three Months Ended June 25, 2016

Revenues

(Dollars and gallons in thousands)	Three Months Ended							Percent
	June 24,		June 25,		Increase			Increase
	2017		2016		(Decrease)			(Decrease)
Revenues
Propane	$	188,406	$	172,322	$	16,084			9.3	%
Fuel oil and refined fuels		12,886		12,459		427			3.4	%
Natural gas and electricity		11,923		10,596		1,327			12.5	%
All other		9,680		9,722		(42	)		(0.4	)%
Total revenues	$	222,895	$	205,099	$	17,796			8.7	%
Retail gallons sold
Propane		77,712		80,184		(2,472	)		(3.1	)%
Fuel oil and refined fuels		5,243		5,771		(528	)		(9.1	)%

Total revenues of $222.9 million increased $17.8 million, or 8.7%, compared to the prior year third quarter primarily due to higher average selling prices, partially offset by lower volumes sold.  As discussed above, average temperatures across all of our service territories during the third quarter of fiscal 2017 were 18% warmer than normal and 9% warmer than the prior year third quarter.  Each of our service territories had average temperatures that were warmer than normal with only our west coast service territory having temperatures that were cooler than the prior year.

Revenues from the distribution of propane and related activities of $188.4 million increased $16.1 million, or 9.3%, compared to the prior year primarily due to higher average retail selling prices, offset to an extent by lower volumes sold.  Average propane selling prices increased 11.4% attributable to higher wholesale product costs, resulting in a $17.4 million increase in revenues.  As a result of the adverse impact of the aforementioned warmer temperatures on customer demand, retail propane gallons sold decreased 2.5 million gallons, or 3.1%, resulting in a $4.9 million decrease in revenues.  Included within the propane segment are revenues from other propane activities of $17.9 million, which increased $3.6 million.

Revenues from the distribution of fuel oil and refined fuels of $12.9 million increased $0.4 million, or 3.4%, compared to the prior year primarily due to higher average selling prices, offset to an extent by lower volumes sold.  During the third quarter of fiscal 2017, average fuel oil and refined fuels selling prices increased 13.6% attributable to higher wholesale product costs, resulting in a $1.5 million increase in revenues.  Fuel oil and refined fuels gallons sold decreased 0.5 million gallons, or 9.1%, resulting in a $1.1 million decrease in revenues.  

Revenues in our natural gas and electricity segment of $11.9 million increased $1.3 million, or 12.5%, compared to the prior year, primarily due to higher average natural gas selling prices, attributable to higher wholesale costs.

Cost of Products Sold

(Dollars in thousands)	Three Months Ended									Percent
	June 24,			June 25,			Increase			Increase
	2017			2016			(Decrease)			(Decrease)
Cost of products sold
Propane	$	73,893		$	58,114		$	15,779			27.2	%
Fuel oil and refined fuels		8,545			8,460			85			1.0	%
Natural gas and electricity		7,069			6,197			872			14.1	%
All other		2,587			2,726			(139	)		(5.1	)%
Total cost of products sold	$	92,094		$	75,497		$	16,597			22.0	%
As a percent of total revenues		41.3	%		36.8	%

The cost of products sold reported in the condensed consolidated statements of operations represents the weighted average unit cost of propane, fuel oil and refined fuels, and natural gas and electricity sold, including transportation costs to deliver product from our supply points to storage or to our customer service centers.  Cost of products sold also includes the cost of appliances and related parts sold or installed by our customer service centers computed on a basis that approximates the average cost of the products.  

Given the retail nature of our operations, we maintain a certain level of priced physical inventory to help ensure that our field operations have adequate supply commensurate with the time of year.  Our strategy has been, and will continue to be, to keep our

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physical inventory priced relatively close to market for our field operations.  Consistent with past practices, we principally utilize futures and/or options contracts traded on the NYMEX to mitigate the price risk associated with our priced physical inventory.  Under this risk management strategy, realized gains or losses on futures or options contracts, which are reported in cost of products sold, will typically offset losses or gains on the physical inventory once the product is sold (which may or may not occur in the same accounting period).  We do not use futures or options contracts, or other derivative instruments, for speculative trading purposes.  Unrealized (non-cash) gains or losses from changes in the fair value of derivative instruments that are not designated as cash flow hedges are recorded within cost of products sold.  Cost of products sold excludes depreciation and amortization; these amounts are reported separately within the condensed consolidated statements of operations.

In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) and fuel oil prices were 27.9% and 8.6% higher than the prior year third quarter, respectively.  The net change in the fair value of derivative instruments resulted in unrealized (non-cash) losses of $0.7 million and $0.1 million in the third quarter of 2017 and 2016, respectively, resulting in an increase of $0.6 million in cost of products sold compared to the prior year, of which a $0.9 million increase was reported in the propane segment, and a $0.3 million decrease was reported in the fuel oil and refined fuels segment.

Cost of products sold associated with the distribution of propane and related activities of $73.9 million increased $15.8 million, or 27.2%, compared to the prior year, primarily due to higher average wholesale costs, partially offset by lower volumes sold.  Higher average wholesale propane costs contributed to increases in cost of products sold in the propane segment of $14.9 million, while lower volumes sold resulted in a decrease of $1.6 million compared to the prior year.  Cost of products sold from other propane activities increased $1.6 million compared to the prior year.

Cost of products sold associated with our fuel oil and refined fuels segment of $8.5 million increased $0.1 million, or 1.0%, compared to the prior year.  Higher average fuel oil and refined fuels wholesale costs resulted in an increase in cost of products sold of $1.1 million and lower volumes sold resulted in a decrease of $0.7 million.  

Cost of products sold in our natural gas and electricity segment of $7.1 million increased $0.9 million, or 14.1%, compared to the prior year, primarily due to higher wholesale costs.

Total cost of products sold as a percent of total revenues increased 4.5 percentage points to 41.3% from 36.8% primarily due to the year-over-year increase in wholesale propane costs outpacing the year-over-year increase in average propane selling prices.

Operating Expenses

(Dollars in thousands)	Three Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
Operating expenses	$	97,070		$	103,316		$	(6,246	)		(6.0	)%
As a percent of total revenues		43.5	%		50.4	%

All costs of operating our retail distribution and appliance sales and service operations are reported within operating expenses in the condensed consolidated statements of operations.  These operating expenses include the compensation and benefits of field and direct operating support personnel, costs of operating and maintaining our vehicle fleet, overhead and other costs of our purchasing, training and safety departments and other direct and indirect costs of operating our customer service centers.

Operating expenses of $97.1 million for the third quarter of fiscal 2017 decreased $6.2 million, or 6.0%, compared to $103.3 million in the prior year third quarter.  In the prior year third quarter, we accrued $6.6 million for our voluntary full withdrawal from a multi-employer pension plan, which was excluded from our calculation of Adjusted EBITDA below.  Other factors impacting operating expenses included lower payroll and benefit-related expenses attributable to reduced headcount and continued savings from operating efficiencies identified and implemented in fiscal 2017, which were offset by higher fuel costs to operate our fleet, higher bad debt expense stemming from the impact of higher commodity prices on accounts receivable and higher variable compensation expense associated with higher operating earnings.

General and Administrative Expenses

(Dollars in thousands)	Three Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
General and administrative expenses	$	12,968		$	14,547		$	(1,579	)		(10.9	)%
As a percent of total revenues		5.8	%		7.1	%

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All costs of our back office support functions, including compensation and benefits for executives and other support functions, as well as other costs and expenses to maintain finance and accounting, treasury, legal, human resources, corporate development and the information systems functions are reported within general and administrative expenses in the condensed consolidated statements of operations.

General and administrative expenses of $13.0 million for the third quarter of fiscal 2017 decreased $1.6 million, or 10.9%, compared to the prior year third quarter primarily due to lower payroll and benefit-related expenses attributable to reduced headcount, offset to an extent by higher variable compensation expense associated with higher earnings.  

Depreciation and Amortization

(Dollars in thousands)	Three Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
Depreciation and amortization	$	31,825		$	32,288		$	(463	)		(1.4	)%
As a percent of total revenues		14.3	%		15.7	%

Depreciation and amortization expense of $31.8 million in the third quarter of fiscal 2017 decreased $0.5 million, or 1.4%, compared to the prior year primarily as a result of accelerated depreciation recorded in the prior year for assets taken out of service.

Interest Expense, net

(Dollars in thousands)	Three Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
Interest expense, net	$	18,502		$	18,638		$	(136	)		(0.7	)%
As a percent of total revenues		8.3	%		9.1	%

Net interest expense of $18.5 million in the third quarter of fiscal 2017 was slightly lower than the prior year, driven primarily by savings from the refinancing of our 7.375% senior notes due August 1, 2021 (the “2021 Senior Notes”) with the issuance of 5.875% senior notes due March 1, 2027 (the “2027 Senior Notes”) in the second quarter of fiscal 2017, offset to an extent by additional interest on incremental borrowings under our Revolving Credit Facility.  See Liquidity and Capital Resources below for additional discussion.

Gain on Sale of Business

On April 22, 2016, we sold certain assets and operations in a non-strategic market of the propane segment for $26.0 million, including $5.0 million of non-compete consideration that will be received over a five-year period, resulting in a gain of $9.8 million that was recognized during the third quarter of fiscal 2016.  The corresponding net assets and results of operations were not material to our results of operations, financial position and cash flows.

EBITDA and Adjusted EBITDA

EBITDA represents net income before deducting interest expense, income taxes, depreciation and amortization.  Adjusted EBITDA represents EBITDA excluding the unrealized net gain or loss on mark-to-market activity for derivative instruments and other items, as applicable, as provided in the table below.  Our management uses EBITDA and Adjusted EBITDA as supplemental measures of operating performance and we are including them because we believe that they provide our investors and industry analysts with additional information that we determined is useful to evaluate our operating results.  EBITDA and Adjusted EBITDA are not recognized terms under US GAAP and should not be considered as an alternative to net income or net cash provided by operating activities determined in accordance with US GAAP.  Because EBITDA and Adjusted EBITDA as determined by us excludes some, but not all, items that affect net income, they may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other companies.

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The following table sets forth our calculations of EBITDA and Adjusted EBITDA:

(Dollars in thousands)	Three Months Ended
	June 24,			June 25,
	2017			2016
Net loss	$	(29,716	)	$	(29,598	)
Add:
Provision for income taxes		152			180
Interest expense, net		18,502			18,638
Depreciation and amortization		31,825			32,288
EBITDA		20,763			21,508
Unrealized (non-cash) losses on changes in fair value    of derivatives		655			56
Gain on sale of business		—			(9,769	)
Multi-employer pension plan withdrawal charge		—			6,600
Adjusted EBITDA	$	21,418		$	18,395

Nine Months Ended June 24, 2017 Compared to Nine Months Ended June 25, 2016

Revenues

(Dollars and gallons in thousands)	Nine Months Ended							Percent
	June 24,		June 25,		Increase			Increase
	2017		2016		(Decrease)			(Decrease)
Revenues
Propane	$	843,519	$	752,013	$	91,506			12.2	%
Fuel oil and refined fuels		69,612		61,961		7,651			12.3	%
Natural gas and electricity		44,229		38,232		5,997			15.7	%
All other		33,420		32,890		530			1.6	%
Total revenues	$	990,780	$	885,096	$	105,684			11.9	%
Retail gallons sold
Propane		350,188		351,545		(1,357	)		(0.4	)%
Fuel oil and refined fuels		27,251		27,632		(381	)		(1.4	)%

Total revenues increased $105.7 million, or 11.9%, to $990.8 million for the first nine months of fiscal 2017 compared to $885.1 million for the prior year period, primarily due to higher average selling prices as volumes sold were roughly flat to the prior year.   Average temperatures (as measured in heating degree days) across all of our service territories for the first nine months of fiscal 2017 were 15% warmer than normal and 2% cooler than the comparable prior year period.  During the heating season (October through March), we experienced unseasonably warm weather throughout much of the period in nearly all of our service territories, with cooler weather arriving during brief bursts in the final three weeks of each of the first and second quarters.  In fact, the first two months of each of the first and second quarters of fiscal 2017 were reported as record warm.

Revenues from the distribution of propane and related activities of $843.5 million increased $91.5 million, or 12.2%, primarily due to higher average retail selling prices. Average propane selling prices increased 10.7% associated with higher wholesale propane costs, resulting in a $75.0 million increase in revenues.  Retail propane gallons sold decreased 1.4 million gallons, or 0.4%, resulting in a $2.7 million decrease in revenues.  Included within the propane segment are revenues from other propane activities of $65.6 million, which increased $19.2 million.

Revenues from the distribution of fuel oil and refined fuels of $69.6 million increased $7.6 million, or 12.3%, primarily due to higher average selling prices. Average selling prices for fuel oil and refined fuels increased 13.8%, resulting in an $8.4 million increase in revenues.  Fuel oil and refined fuels gallons sold decreased 0.4 million gallons, or 1.4%, resulting in a $0.8 million decrease in revenues.

Revenues in our natural gas and electricity segment of $44.2 million increased $6.0 million, or 15.7%, primarily due to higher average selling prices and higher customer usage as a result of cooler temperatures in the northeast and an expanded customer base.

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Cost of Products Sold

(Dollars in thousands)	Nine Months Ended									Percent
	June 24,			June 25,			Increase			Increase
	2017			2016			(Decrease)			(Decrease)
Cost of products sold
Propane	$	322,251		$	234,287		$	87,964			37.5	%
Fuel oil and refined fuels		44,935			38,065			6,870			18.0	%
Natural gas and electricity		25,876			22,486			3,390			15.1	%
All other		9,665			10,174			(509	)		(5.0	)%
Total cost of products sold	$	402,726		$	305,012		$	97,714			32.0	%
As a percent of total revenues		40.6	%		34.5	%

In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) and fuel oil prices were 48.3% and 22.0% higher than the first nine months of the prior year, respectively.  The net change in the fair value of derivative instruments during the period resulted in unrealized (non-cash) losses of $2.7 million and $2.0 million in the first nine months of fiscal 2017 and 2016, respectively, resulting in an increase of $0.7 million in cost of products sold compared to the prior year, of which a $1.3 million increase was reported in the propane segment and a decrease of $0.6 million was reported in the fuel oil and refined fuels segments.

Cost of products sold associated with the distribution of propane and related activities of $322.3 million increased $88.0 million, or 37.5%. Higher average wholesale costs resulted in an increase of $69.9 million compared to the prior year, while the decrease in volumes sold reduced costs by $0.9 million.  Cost of products sold from other propane activities increased $17.7 million compared to the prior year.

Cost of products sold associated with our fuel oil and refined fuels segment of $44.9 million increased $6.9 million, or 18.0%.  Higher average wholesale costs resulted in an increase of $6.3 million and lower volumes sold resulted in a decrease of $0.5 million over the prior year period.  Cost of products sold from other fuel oil and refined fuels activities increased $1.7 million compared to the prior year.

Cost of products sold in our natural gas and electricity segment of $25.9 million increased $3.4 million, or 15.1%, primarily due to higher average wholesale costs and higher customer usage.

Total cost of products sold as a percent of total revenues increased 6.1 percentage points to 40.6% from 34.5% primarily due to the year-over-year rise in wholesale propane costs outpacing the year-over-year increase in average propane selling prices.

Operating Expenses

(Dollars in thousands)	Nine Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
Operating expenses	$	306,839		$	315,747		$	(8,908	)		(2.8	)%
As a percent of total revenues		31.0	%		35.7	%

Operating expenses of $306.8 million for the first nine months of fiscal 2017 decreased $8.9 million, or 2.8%, compared to the prior year period. Operating expenses for the first nine months of fiscal 2016 included a $6.6 million charge resulting from our voluntary full withdrawal from a multi-employer pension plan and a $3.0 million charge related to the settlement of a product liability legal matter, both of which were excluded from our calculation of Adjusted EBITDA below.  Other factors impacting operating expenses included lower payroll and benefit-related expenses attributable to reduced headcount reflecting the actions taken during the prior fiscal year to streamline operations, and continued savings from operating efficiencies identified and implemented during the current fiscal year, which was offset by an increase in provisions for potential uncollectible accounts as a result of the impact of higher commodity prices on accounts receivable, higher variable compensation expense and higher fuel costs to operate our fleet.

General and Administrative Expenses

(Dollars in thousands)	Nine Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
General and administrative expenses	$	40,179		$	45,253		$	(5,074	)		(11.2	%)
As a percent of total revenues		4.1	%		5.1	%

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General and administrative expenses of $40.2 million for the first nine months of fiscal 2017 decreased $5.1 million, or 11.2%, compared to the prior year period, primarily due to lower payroll and benefit-related expenses attributable to reduced headcount and lower professional services fees, offset to an extent by higher variable compensation expense associated with higher earnings.

Depreciation and Amortization

(Dollars in thousands)	Nine Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
Depreciation and amortization	$	95,756		$	97,076		$	(1,320	)		(1.4	)%
As a percent of total revenues		9.7	%		11.0	%

Depreciation and amortization expense of $95.8 million for the first nine months of fiscal 2017 decreased $1.3 million, or 1.4%, primarily as a result of accelerated depreciation expense recorded in the prior year for assets taken out of service.

Interest Expense, net

(Dollars in thousands)	Nine Months Ended
	June 24,			June 25,						Percent
	2017			2016			Decrease			Decrease
Interest expense, net	$	54,820		$	56,383		$	(1,563	)		(2.8	)%
As a percent of total revenues		5.5	%		6.4	%

Net interest expense of $54.8 million decreased $1.6 million, or 2.8%, compared to the prior year period, driven primarily by savings from the refinancing of the 2021 Senior Notes with the issuance of the 2027 Senior Notes in the second quarter of fiscal 2017, offset to an extent by additional interest on incremental borrowings from our Revolving Credit Facility.  See Liquidity and Capital Resources below for additional discussion.

Loss on Debt Extinguishment

On February 14, 2017, we repurchased, satisfied and discharged all of our previously outstanding 2021 Senior Notes with net proceeds from the issuance of the 2027 Senior Notes and borrowings under the Revolving Credit Facility, pursuant to a tender offer and redemption. In connection with this tender offer and redemption during the second quarter of fiscal 2017, we recognized a loss on the extinguishment of debt of $1.6 million, consisting of $15.1 million for the redemption premium and related fees, as well as the write-off of $2.3 million and ($15.8) million in unamortized debt origination costs and unamortized premium, respectively.

In connection with the execution of the amendment and restatement of our previous revolving credit facility during the second quarter of fiscal 2016, we recognized a non-cash charge of $0.3 million to write-off a portion of unamortized debt origination costs of the previous credit agreement.

Gain on Sale of Business

On April 22, 2016, we sold certain assets and operations in a non-strategic market of the propane segment for $26.0 million, including $5.0 million of non-compete consideration that will be received over a five-year period, resulting in a gain of $9.8 million that was recognized during the third quarter of fiscal 2016.  The corresponding net assets and results of operations were not material to our results of operations, financial position and cash flows.

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EBITDA and Adjusted EBITDA

The following table sets forth our calculations of EBITDA and Adjusted EBITDA:

(Dollars in thousands)	Nine Months Ended
	June 24,		June 25,
	2017		2016
Net income	$	88,585	$	74,679
Add:
Provision for income taxes		308		423
Interest expense, net		54,820		56,383
Depreciation and amortization		95,756		97,076
EBITDA		239,469		228,561
Unrealized (non-cash) losses on changes in fair value of    derivatives		2,708		2,005
Loss on debt extinguishment		1,567		292
Gain on sale of business		—		(9,769	)
Multi-employer pension plan withdrawal charge		—		6,600
Product liability settlement		—		3,000
Adjusted EBITDA	$	243,744	$	230,689

Liquidity and Capital Resources

Analysis of Cash Flows

Operating Activities. Net cash provided by operating activities for the first nine months of fiscal 2017 and fiscal 2016 was $123.2 million and $128.7 million, respectively.  The year-over-year decrease in net cash provided by operating activities was primarily attributable to an increase in working capital stemming from the impact of higher wholesale product costs on accounts receivable and inventory, partially offset by higher earnings (discussed above).

Investing Activities.  Net cash used in investing activities of $18.2 million for the first nine months of fiscal 2017 consisted of capital expenditures of $22.0 million (including approximately $13.6 million to support the growth of operations and $8.4 million for maintenance expenditures), partially offset by $3.8 million in net proceeds from the sale of property, plant and equipment.

Net cash used in investing activities of $49.4 million for the first nine months of fiscal 2016 consisted of $42.9 million for the acquisition of the assets of Propane USA Distribution, LLC and capital expenditures of $32.3 million (including approximately $18.6 million to support the growth of operations and $13.7 million for maintenance expenditures), partially offset by $21.2 million in proceeds from the sale of assets and operations in a non-strategic market and $4.7 million in net proceeds from the sale of other property, plant and equipment.

Financing Activities. Net cash used in financing activities for the first nine months of fiscal 2017 of $139.2 million reflects the quarterly distributions to Common Unitholders at a rate of $0.8875 per Common Unit paid in respect of the fourth quarter of fiscal 2016 and the first and second quarters of fiscal 2017.  In addition, cash used in financing activities included proceeds of $350.0 million from the issuance of the 2027 Senior Notes in February 2017 which were used, along with borrowings under the Revolving Credit Facility, to repurchase, satisfy and discharge all of the previously outstanding 2021 Senior Notes, as well as to pay tender premiums and other related fees of $14.7 million and debt issuance costs of $6.1 million, pursuant to a tender offer and redemption.  Total net borrowings under the Revolving Credit Facility were $41.1 million for the first nine months of fiscal 2017, which were used to fund a portion of our cash needs.  During the third quarter of fiscal 2017, we paid $1.0 million for costs incurred to amend the Revolving Credit Facility.

Net cash used in financing activities for the first nine months of fiscal 2016 of $164.3 million reflects the quarterly distributions to Common Unitholders at a rate of $0.8875 per Common Unit paid in respect of the fourth quarter of fiscal 2015 and first and second quarters of fiscal 2016.  Upon the execution of the amendment and restatement of our credit agreement on March 3, 2016, we rolled the $100.0 million then-outstanding under the revolving credit facility of the previous credit agreement into the Revolving Credit Facility of the new Amended Credit Agreement.  Financing activities for the first nine months of fiscal 2016 also reflects the payment of $2.7 million in debt origination costs associated with the refinancing of the credit agreement.

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Summary of Long-Term Debt Obligations and Revolving Credit Lines

As of June 24, 2017, our long-term debt consisted of $525.0 million in aggregate principal amount of 5.5% senior notes due June 1, 2024, $250.0 million in aggregate principal amount of 5.75% senior notes due March 1, 2025, $350.0 million in aggregate principal amount of 5.875% senior notes due March 1, 2027 and $141.1 million outstanding under our Revolving Credit Facility.  See Item 1, Note 7 of this Quarterly Report.

The aggregate amounts of long-term debt maturities subsequent to June 24, 2017 are as follows: fiscal 2017: $-0- million; fiscal 2018: $-0- million; fiscal 2019: $-0-; fiscal 2020: $-0-; fiscal 2021: $141.1 million; and thereafter: $1,125.0 million.

Partnership Distributions

We are required to make distributions in an amount equal to all of our Available Cash, as defined in our Third Amended and Restated Partnership Agreement, as amended (the “Partnership Agreement”), no more than 45 days after the end of each fiscal quarter to holders of record on the applicable record dates.  Available Cash, as defined in the Partnership Agreement, generally means all cash on hand at the end of the respective fiscal quarter less the amount of cash reserves established by the Board of Supervisors in its reasonable discretion for future cash requirements. These reserves are retained for the proper conduct of our business, the payment of debt principal and interest and for distributions during the next four quarters.  The Board of Supervisors reviews the level of Available Cash on a quarterly basis based upon information provided by management.

On July 20, 2017, we announced a quarterly distribution of $0.8875 per Common Unit, or $3.55 on an annualized basis, in respect of the third quarter of fiscal 2017, payable on August 8, 2017 to holders of record on August 1, 2017.

At its meeting on August 1, 2017, the Partnership’s Board of Supervisors discussed reducing the distribution level by up to 33% beginning with the quarterly distribution to be paid in November 2017 in respect of the fourth quarter of fiscal 2017.  A final decision on the amount of the reduction in the distribution level will not be made until the Board of Supervisors meets again in October 2017 to declare the distribution in respect of the fourth quarter.

Other Commitments

We have a noncontributory, cash balance format, defined benefit pension plan which was frozen to new participants effective January 1, 2000.  Effective January 1, 2003, the defined benefit pension plan was amended such that future service credits ceased and eligible employees would receive interest credits only toward their ultimate retirement benefit.  We also provide postretirement health care and life insurance benefits for certain retired employees under a plan that was also frozen to new participants effective March 31, 1998.  At June 24, 2017, we had a liability for the defined benefit pension plan and accrued retiree health and life benefits of $43.3 million and $15.5 million, respectively.

We are self-insured for general and product, workers’ compensation and automobile liabilities up to predetermined thresholds above which third party insurance applies.  At June 24, 2017, we had accrued insurance liabilities of $66.2 million, and an insurance recovery asset of $18.8 million related to the amount of the liability expected to be covered by insurance.

Legal Matters

See Item 1, Note 10, Legal Matters subsection of this Quarterly Report.

Off-Balance Sheet Arrangements

Guarantees

See Item 1, Note 11 of this Quarterly Report.

Recently Issued Accounting Pronouncements

See Item 1, Note 2, Recently Issued Accounting Pronouncements subsection of this Quarterly Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Price Risk

We enter into product supply contracts that are generally one-year agreements subject to annual renewal, and also purchase product on the open market.  Our propane supply contracts typically provide for pricing based upon index formulas using the posted

32

prices established at major supply points such as Mont Belvieu, Texas, or Conway, Kansas (plus transportation costs) at the time of delivery. In addition, to supplement our annual purchase requirements, we may utilize forward fixed price purchase contracts to acquire a portion of the propane that we resell to our customers, which allows us to manage our exposure to unfavorable changes in commodity prices and to ensure adequate physical supply. The percentage of contract purchases, and the amount of supply contracted for under forward contracts at fixed prices, will vary from year to year based on market conditions.  In certain instances, and when market conditions are favorable, we are able to purchase product under our supply arrangements at a discount to the market.

Product cost changes can occur rapidly over a short period of time and can impact profitability. We attempt to reduce commodity price risk by pricing product on a short-term basis. The level of priced, physical product maintained in storage facilities and at our customer service centers for immediate sale to our customers will vary depending on several factors, including, but not limited to, price, supply and demand dynamics for a given time of the year.  Typically, our on hand priced position does not exceed more than four to eight weeks of our supply needs, depending on the time of the year.  In the course of normal operations, we routinely enter into contracts such as forward priced physical contracts for the purchase or sale of propane and fuel oil that, under accounting rules for derivative instruments and hedging activities, qualify for and are designated as normal purchase or normal sale contracts. Such contracts are exempted from fair value accounting and are accounted for at the time product is purchased or sold under the related contract.

Under our hedging and risk management strategies, we enter into a combination of exchange-traded futures and options contracts and, in certain instances, over-the-counter options and swap contracts (collectively, “derivative instruments”) to manage the price risk associated with physical product and with future purchases of the commodities used in our operations, principally propane and fuel oil, as well as to help ensure the availability of product during periods of high demand.  In addition, we sell propane and fuel oil to customers at fixed prices, and enter into derivative instruments to hedge a portion of its exposure to fluctuations in commodity prices as a result of selling the fixed price contracts. We do not use derivative instruments for speculative or trading purposes.  Futures and swap contracts require that we sell or acquire propane or fuel oil at a fixed price for delivery at fixed future dates.  An option contract allows, but does not require, its holder to buy or sell propane or fuel oil at a specified price during a specified time period. However, the writer of an option contract must fulfill the obligation of the option contract, should the holder choose to exercise the option.  At expiration, the contracts are settled by the delivery of the product to the respective party or are settled by the payment of a net amount equal to the difference between the then market price and the fixed contract price or option exercise price. To the extent that we utilize derivative instruments to manage exposure to commodity price risk and commodity prices move adversely in relation to the contracts, we could suffer losses on those derivative instruments when settled.  Conversely, if prices move favorably, we could realize gains. Under our hedging and risk management strategy, realized gains or losses on derivative instruments will typically offset losses or gains on the physical inventory once the product is sold to customers at market prices, or delivered to customers as it pertains to fixed price contracts.

Futures are traded with brokers of the NYMEX and require daily cash settlements in margin accounts.  Forward contracts are generally settled at the expiration of the contract term by physical delivery, and swap and options contracts are generally settled at expiration through a net settlement mechanism.  Market risks associated with our derivative instruments are monitored daily for compliance with our Hedging and Risk Management Policy which includes volume limits for open positions.  Open inventory positions are reviewed and managed daily as to exposures to changing market prices.

Credit Risk

Exchange-traded futures and options contracts are guaranteed by the NYMEX and, as a result, have minimal credit risk.  We are subject to credit risk with over-the-counter forward, swap and options contracts to the extent the counterparties do not perform.  We evaluate the financial condition of each counterparty with which we conduct business and establish credit limits to reduce exposure to the risk of non-performance by our counterparties.

Interest Rate Risk

A portion of our borrowings bear interest at prevailing interest rates based upon, at the Operating Partnership’s option, LIBOR, plus an applicable margin or the base rate, defined as the higher of the Federal Funds Rate plus ½ of 1% or the agent bank’s prime rate, or LIBOR plus 1%, plus the applicable margin.  The applicable margin is dependent on the level of the Partnership’s total consolidated leverage (the total ratio of debt to consolidated EBITDA).  Therefore, we are subject to interest rate risk on the variable component of the interest rate.  From time to time, we enter into interest rate swap agreements to manage a part of our variable interest rate risk.  The interest rate swaps have been designated as a cash flow hedge.  Changes in the fair value of the interest rate swaps are recognized in other comprehensive income (“OCI”) until the hedged item is recognized in earnings. At June 24, 2017, we were not party to an interest rate swap agreement.

33

Derivative Instruments and Hedging Activities

All of our derivative instruments are reported on the balance sheet at their fair values.  On the date that derivative instruments are entered into, we make a determination as to whether the derivative instrument qualifies for designation as a hedge.  Changes in the fair value of derivative instruments are recorded each period in current period earnings or OCI, depending on whether a derivative instrument is designated as a hedge and, if so, the type of hedge.  For derivative instruments designated as cash flow hedges, we formally assess, both at the hedge contract’s inception and on an ongoing basis, whether the hedge contract is highly effective in offsetting changes in cash flows of hedged items.  Changes in the fair value of derivative instruments designated as cash flow hedges are reported in OCI to the extent effective and reclassified into earnings during the same period in which the hedged item affects earnings.  The mark-to-market gains or losses on ineffective portions of cash flow hedges are immediately recognized in earnings.  Changes in the fair value of derivative instruments that are not designated as cash flow hedges, and that do not meet the normal purchase and normal sale exemption, are recorded in earnings as they occur.  Cash flows associated with derivative instruments are reported as operating activities within the condensed consolidated statement of cash flows.

Sensitivity Analysis

In an effort to estimate our exposure to unfavorable market price changes in commodities related to our open positions under derivative instruments, we developed a model that incorporates the following data and assumptions:

A. The fair value of open positions as of June 24, 2017.

B. The market prices for the underlying commodities used to determine A. above were adjusted adversely by a hypothetical 10% change and compared to the fair value amounts in A. above to project the potential negative impact on earnings that would be recognized for the respective scenario.

Based on the sensitivity analysis described above, a hypothetical 10% adverse change in market prices for open derivative instruments as of June 24, 2017 indicates an increase in potential future net losses of $2.3 million.  See also Item 7A of our Annual Report on Form 10-K for the fiscal year ended September 24, 2016. The above hypothetical change does not reflect the worst case scenario. Actual results may be significantly different depending on market conditions and the composition of the open position portfolio.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Partnership maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to provide reasonable assurance that information required to be disclosed in the Partnership’s filings and submissions under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to the Partnership’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

The Partnership completed an evaluation under the supervision and with participation of the Partnership’s management, including the Partnership’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Partnership’s disclosure controls and procedures as of June 24, 2017.  Based on this evaluation, the Partnership’s principal executive officer and principal financial officer have concluded that as of June 24, 2017, such disclosure controls and procedures were effective to provide the reasonable assurance described above.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended June 24, 2017 that have materially affected or are reasonably likely to materially affect its internal control over financial reporting.

34

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Part I, Item 1. Financial Statements, Note 10, Legal Matters subsection to the Condensed Consolidated Financial Statements, of this Form 10-Q is hereby incorporated herein by reference.

ITEM 1A. RISK FACTORS

On January 19, 2017, the U.S. Treasury Department and the Internal Revenue Service issued final regulations providing guidance on the treatment of income from natural resource activities of publicly traded partnerships as qualifying income for purposes of section 7704 of the Internal Revenue Code.  The final regulations superseded proposed regulations issued in May 2015 and described in the risk factors disclosed in Item 1A of the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 24, 2016.  The final regulations did not modify the amount of gross income that the Partnership is able to treat as qualifying income for purposes of the qualifying income requirement and therefore did not affect the Partnership’s ability to continue to qualify as a publicly traded partnership or affect the characterization of the income from the Partnership’s propane activities as qualifying income. 

There were no other material changes to the risk factors disclosed in Item 1A in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 24, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c) The following table provides information about deemed purchases by the Partnership during the three months ended June 24, 2017 of its Common Units:

					Number of Shares	Approximate Dollar Value
	Total Number of		Average		Purchased as Part of	of Shares that May
	Shares		Price Paid		Publicly Announced	Yet be Purchased
Period	Purchased (1)		per Share		Program	under the Program
March 26, 2017 through April 22, 2017		8,358	$	27.15	N/A	N/A
April 23, 2017 through May 20, 2017		411	$	26.82	N/A	N/A
May 21, 2017 through June 24, 2017		—	$	—	N/A	N/A
Total		8,769	$	27.13	N/A	N/A

(1) This represents the number of Common Units withheld from participants for income tax withholding purposes for those executive officers of the Partnership whose shares of restricted units vested during the period.  Such restricted units were issued to participants pursuant to the Suburban Propane Partners, L.P. 2009 Restricted Unit Plan that was adopted by the Partnership on July 22, 2009.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

35

ITEM 6. EXHIBITS

(a) Exhibits

INDEX TO EXHIBITS

The exhibits listed on this Exhibit Index are filed as part of this Quarterly Report.  Exhibits required to be filed by Item 601 of Regulation S-K, which are not listed below, are not applicable.

Exhibit Number	Description
10.1	First Amendment to the Second Amended and Restated Credit Agreement among Suburban Propane, L.P., Suburban Propane Partners, L.P. and Bank of America, N.A., as Administrative Agent, and the Lenders party thereto, dated May 1, 2017. (Incorporated by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K filed May 4, 2017).
31.1	Certification of the President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith).
31.2	Certification of the Chief Financial Officer and Chief Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith).
32.1	Certification of the President and Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith).
32.2	Certification of the Chief Financial Officer and Chief Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SUBURBAN PROPANE PARTNERS, L.P.
August 3, 2017	By:	/s/ MICHAEL A. KUGLIN
Date		Michael A. Kuglin
		Chief Financial Officer and Chief Accounting Officer
August 3, 2017	By:	/s/ DANIEL S. BLOOMSTEIN
Date		Daniel S. Bloomstein
		Controller

37

EX-31.1

EXHIBIT 31.1

Certification of the President and Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael A. Stivala, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Suburban Propane Partners, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Supervisors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 3, 2017	By:	/s/ MICHAEL A. STIVALA
		Michael A. Stivala
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of the Chief Financial Officer and Chief Accounting Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael A. Kuglin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Suburban Propane Partners, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Supervisors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 3, 2017	By:	/s/ MICHAEL A. KUGLIN
		Michael A. Kuglin
		Chief Financial Officer and Chief Accounting Officer

EX-32.1

EXHIBIT 32.1

Certification of the President and Chief Executive Officer Pursuant to

18 U.S.C. Section 1350, as Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Suburban Propane Partners, L.P. (the “Partnership”) on Form 10-Q for the period ended June 24, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael A. Stivala, President and Chief Executive Officer of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/ MICHAEL A. STIVALA
	Michael A. Stivala
	President and Chief Executive Officer
	August 3, 2017

EX-32.2

EXHIBIT 32.2

Certification of the Chief Financial Officer and Chief Accounting Officer

18 U.S.C. Section 1350, as Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Suburban Propane Partners, L.P. (the “Partnership”) on Form 10-Q for the period ended June 24, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael A. Kuglin, Chief Financial Officer and Chief Accounting Officer of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

By:	/s/ MICHAEL A. KUGLIN
	Michael A. Kuglin
	Chief Financial Officer and Chief Accounting Officer
	August 3, 2017

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 24, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	SUBURBAN PROPANE PARTNERS LP
Entity Central Index Key	0001005210
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		61,102,950
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Trading Symbol	SPH
Amendment Flag	false
Document Period End Date	Jun. 24, 2017

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Current assets:
Cash and cash equivalents	$ 3,211	$ 37,341
Accounts receivable, less allowance for doubtful accounts of $4,196 and $2,441, respectively	72,945	53,802
Inventories	41,812	45,352
Other current assets	12,816	10,804
Total current assets	130,784	147,299
Property, plant and equipment, net	706,425	742,129
Goodwill	1,094,635	1,094,635
Other intangible assets, net	233,965	276,329
Other assets	25,491	21,907
Total assets	2,191,300	2,282,299
Current liabilities:
Accounts payable	29,083	32,286
Accrued employment and benefit costs	23,697	16,495
Customer deposits and advances	56,503	106,155
Accrued interest	15,555	16,589
Other current liabilities	31,041	33,529
Total current liabilities	155,879	205,054
Long-term borrowings	1,250,159	1,224,502
Accrued insurance	53,410	43,406
Other liabilities	88,334	101,106
Total liabilities	1,547,782	1,574,068
Commitments and contingencies
Partners’ capital:
Common Unitholders (61,078 and 60,789 units issued and outstanding at June 24, 2017 and September 24, 2016, respectively)	685,536	754,063
Accumulated other comprehensive loss	(42,018)	(45,832)
Total partners’ capital	643,518	708,231
Total liabilities and partners’ capital	$ 2,191,300	$ 2,282,299

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Current assets:
Allowance for doubtful accounts	$ 4,196	$ 2,441
Partners’ capital:
Common units issued (in units)	61,078,000	60,789,000
Common units outstanding (in units)	61,078,243	60,789,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Revenues
Propane	$ 188,406	$ 172,322	$ 843,519	$ 752,013
Fuel oil and refined fuels	12,886	12,459	69,612	61,961
Natural gas and electricity	11,923	10,596	44,229	38,232
All other	9,680	9,722	33,420	32,890
Total Revenues	222,895	205,099	990,780	885,096
Costs and expenses
Cost of products sold	92,094	75,497	402,726	305,012
Operating	97,070	103,316	306,839	315,747
General and administrative	12,968	14,547	40,179	45,253
Depreciation and amortization	31,825	32,288	95,756	97,076
Total Expenses	233,957	225,648	845,500	763,088
Gain on sale of business	0	9,769	0	9,769
Operating income (loss)	(11,062)	(10,780)	145,280	131,777
Loss on debt extinguishment	0	0	1,567	292
Interest expense, net	18,502	18,638	54,820	56,383
(Loss) income before provision for income taxes	(29,564)	(29,418)	88,893	75,102
Provision for income taxes	152	180	308	423
Net (loss) income	$ (29,716)	$ (29,598)	$ 88,585	$ 74,679
Net (loss) income per Common Unit - basic	$ (0.48)	$ (0.49)	$ 1.45	$ 1.23
Weighted average number of Common Units outstanding - basic	61,290	61,004	61,227	60,947
Net (loss) income per Common Unit - diluted	$ (0.48)	$ (0.49)	$ 1.44	$ 1.22
Weighted average number of Common Units outstanding - diluted	61,290	61,004	61,410	61,127

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (29,716)	$ (29,598)	$ 88,585	$ 74,679
Other comprehensive income:
Net unrealized (losses) on cash flow hedges	0	(107)	(10)	(47)
Reclassification of realized losses on cash flow hedges into earnings	0	252	215	844
Amortization of net actuarial losses and prior service credits into earnings	1,203	1,130	3,609	3,390
Other comprehensive income	1,203	1,275	3,814	4,187
Total comprehensive (loss) income	$ (28,513)	$ (28,323)	$ 92,399	$ 78,866

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016
Cash flows from operating activities:
Net income	$ 88,585	$ 74,679
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	95,756	97,076
Gain on sale of business	0	(9,769)
Loss on debt extinguishment	1,567	292
Other, net	7,271	7,269
Changes in assets and liabilities:
Accounts receivable	(19,143)	(2,274)
Inventories	3,492	7,721
Other current and noncurrent assets	(5,193)	(1,502)
Accounts payable	(2,826)	(7,699)
Accrued employment and benefit costs	6,189	(8,339)
Customer deposits and advances	(49,652)	(40,831)
Contribution to defined benefit pension plan	(7,542)	0
Other current and noncurrent liabilities	4,738	12,037
Net cash provided by operating activities	123,242	128,660
Cash flows from investing activities:
Capital expenditures	(22,004)	(32,261)
Acquisition of business	0	(42,945)
Proceeds from sale of business	0	21,181
Proceeds from sale of property, plant and equipment	3,829	4,663
Net cash (used in) investing activities	(18,175)	(49,362)
Cash flows from financing activities:
Proceeds from long-term borrowings	350,000	0
Repayments of long-term borrowings (includes premium and fees)	(360,931)	0
Proceeds from borrowings under revolving credit facility	273,240	100,000
Repayments of borrowings under revolving credit facility	(232,095)	(100,000)
Issuance costs associated with long-term borrowings	(7,064)	(2,678)
Partnership distributions	(162,347)	(161,572)
Net cash (used in) financing activities	(139,197)	(164,250)
Net (decrease) in cash and cash equivalents	(34,130)	(84,952)
Cash and cash equivalents at beginning of period	37,341	152,338
Cash and cash equivalents at end of period	$ 3,211	$ 67,386

XML

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (unaudited) - 9 months ended Jun. 24, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Unitholders [Member]	Accumulated Other Comprehensive (Loss) [Member]
Balance (in units) at Sep. 24, 2016		60,789
Balance at Sep. 24, 2016	$ 708,231	$ 754,063	$ (45,832)
Net income	88,585	88,585
Other comprehensive income	3,814		3,814
Partnership distributions	(162,347)	$ (162,347)
Common Units issued under Restricted Unit Plans (in units)		289
Compensation cost recognized under Restricted Unit Plans, net of forfeitures	5,235	$ 5,235
Balance (in units) at Jun. 24, 2017		61,078
Balance at Jun. 24, 2017	$ 643,518	$ 685,536	$ (42,018)

XML

Partnership Organization and Formation

9 Months Ended

Jun. 24, 2017

Partnership Organization And Formation [Abstract]

Partnership Organization and Formation

1. Partnership Organization and Formation

Suburban Propane Partners, L.P. (the “Partnership”) is a publicly traded Delaware limited partnership principally engaged, through its operating partnership and subsidiaries, in the retail marketing and distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets.  In addition, to complement its core marketing and distribution businesses, the Partnership services a wide variety of home comfort equipment, particularly for heating and ventilation.  The publicly traded limited partner interests in the Partnership are evidenced by common units traded on the New York Stock Exchange (“Common Units”), with 61,078,243 Common Units outstanding at June 24, 2017.  The holders of Common Units are entitled to participate in distributions and exercise the rights and privileges available to limited partners under the Third Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”).  Rights and privileges under the Partnership Agreement include, among other things, the election of all members of the Board of Supervisors and voting on the removal of the general partner.

Suburban Propane, L.P. (the “Operating Partnership”), a Delaware limited partnership, is the Partnership’s operating subsidiary formed to operate the propane business and assets.  In addition, Suburban Sales & Service, Inc. (the “Service Company”), a subsidiary of the Operating Partnership, was formed to operate the service work and appliance and parts businesses of the Partnership.  The Operating Partnership, together with its direct and indirect subsidiaries, accounts for substantially all of the Partnership’s assets, revenues and earnings.  The Partnership, the Operating Partnership and the Service Company commenced operations in March 1996 in connection with the Partnership’s initial public offering.

The general partner of both the Partnership and the Operating Partnership is Suburban Energy Services Group LLC (the “General Partner”), a Delaware limited liability company, the sole member of which is the Partnership’s Chief Executive Officer.  Other than as a holder of 784 Common Units that will remain in the General Partner, the General Partner does not have any economic interest in the Partnership or the Operating Partnership.

The Partnership’s fuel oil and refined fuels, natural gas and electricity and services businesses are structured as either limited liability companies that are treated as corporations or corporate entities (collectively referred to as the “Corporate Entities”) and, as such, are subject to corporate level income tax.

Suburban Energy Finance Corp., a direct 100%-owned subsidiary of the Partnership, was formed on November 26, 2003 to serve as co-issuer, jointly and severally with the Partnership, of the Partnership’s senior notes.

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Basis of Presentation

9 Months Ended

Jun. 24, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

2. Basis of Presentation

Principles of Consolidation.  The condensed consolidated financial statements include the accounts of the Partnership, the Operating Partnership and all of its direct and indirect subsidiaries.  All significant intercompany transactions and account balances have been eliminated.  The Partnership consolidates the results of operations, financial condition and cash flows of the Operating Partnership as a result of the Partnership’s 100% limited partner interest in the Operating Partnership.

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).  They include all adjustments that the Partnership considers necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods presented.  Such adjustments consist only of normal recurring items, unless otherwise disclosed.  These financial statements should be read in conjunction with the financial statements included in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 24, 2016.  Due to the seasonal nature of the Partnership’s operations, the results of operations for interim periods are not necessarily indicative of the results to be expected for a full year.

Fiscal Period.  The Partnership uses a 52/53 week fiscal year which ends on the last Saturday in September.  The Partnership’s fiscal quarters are generally thirteen weeks in duration.  When the Partnership’s fiscal year is 53 weeks long, as is the case for fiscal 2017, the corresponding fourth quarter is fourteen weeks in duration.

Revenue Recognition.  Sales of propane, fuel oil and refined fuels are recognized at the time product is delivered to the customer.  Revenue from the sale of appliances and equipment is recognized at the time of sale or when installation is complete, as applicable.  Revenue from repairs, maintenance and other service activities is recognized upon completion of the service.  Revenue from annually billed service contracts is recognized ratably over the service period.  Revenue from the natural gas and electricity business is recognized based on customer usage as determined by meter readings for amounts delivered, some of which may be unbilled at the end of each accounting period.  Revenue from annually billed tank fees is deferred at the time of billings and recognized on a straight-line basis over one year.

Fair Value Measurements.  The Partnership measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market.  The principal market is the market with the greatest level of activity and volume for the asset or liability.

The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values.  The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.

• Level 1: Quoted prices in active markets for identical assets or liabilities.

• Level 2: Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

• Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Business Combinations.  The Partnership accounts for business combinations using the acquisition method and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date.  Goodwill represents the excess of the purchase price over the fair value of the net assets acquired, including the amount assigned to identifiable intangible assets.  The primary drivers that generate goodwill are the value of synergies between the acquired entities and the Partnership, and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset.  Identifiable intangible assets with finite lives are amortized over their useful lives.  The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.  The Partnership expenses all acquisition-related costs as incurred.

Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Estimates have been made by management in the areas of self-insurance and litigation reserves, pension and other postretirement benefit liabilities and costs, valuation of derivative instruments, depreciation and amortization of long-lived assets, asset impairment assessments, tax valuation allowances, allowances for doubtful accounts, and purchase price allocation for acquired businesses.  The Partnership uses Society of Actuaries life expectancy information when developing the annual mortality assumptions for the pension and postretirement benefit plans, which are used to measure net periodic benefit costs and the obligation under these plans.  Actual results could differ from those estimates, making it reasonably possible that a material change in these estimates could occur in the near term.

Reclassifications.  Certain prior period amounts have been reclassified to conform with the current period presentation.  See Recently Adopted Accounting Pronouncements, below.

Recently Issued Accounting Pronouncements.In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”).  This update eliminates the second of the two-step goodwill impairment test, as described in Note 5, “Goodwill and Other Intangible Assets.”  Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit.  ASU 2017-04 is effective for the first interim period within annual reporting periods beginning after December 15, 2019, which will be the Partnership’s first quarter of fiscal 2021.  Early adoption of ASU 2017-04 is permitted.  The Partnership does not expect the adoption of ASU 2017-04 will have a material impact on the Partnership’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”).  This update addresses eight specific cash flow issues and is intended to reduce diversity in practice on how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  ASU 2016-15 is effective for the first interim period within annual reporting periods beginning after December 15, 2017, which will be the Partnership’s first quarter of fiscal 2019.  Early adoption of ASU 2016-15 is permitted.  The Partnership is currently evaluating the impact of adopting the standard on the Partnership’s consolidated statements of cash flows.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This update is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, which will be the Partnership’s first quarter of fiscal 2018. Early adoption of ASU 2016-09 is permitted. The Partnership does not expect the adoption of ASU 2016-09 will have a material impact on the Partnership’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for the first interim period within annual reporting periods beginning after December 15, 2018, which will be the Partnership’s first quarter of fiscal 2020. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is currently evaluating the impact of adopting ASU 2016-02 on the Partnership’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”).  This update provides a principles-based approach to revenue recognition, requiring revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. On July 9, 2015, the FASB finalized a one-year deferral of the effective date of ASU 2014-09.  The revenue standard is therefore effective for the first interim period within annual reporting periods beginning after December 15, 2017, which will be the Partnership’s first quarter of fiscal 2019.  Early adoption as of the original effective date is permitted.  ASU 2014-09 can be applied either retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures.  While the Partnership is still in the process of evaluating the potential impact of ASU 2014-09, it does not expect its adoption will have a material impact on the Partnership’s consolidated financial statements.

Recently Adopted Accounting Pronouncements.During the first quarter of fiscal 2017, the Partnership adopted new accounting guidance regarding the classification of deferred debt issuance costs under ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Deferred debt issuance costs associated with long-term debt are now reflected as a direct deduction from the carrying amount of such debt rather than as a deferred charge. Total deferred debt issuance costs were $19,996 and $17,391 at June 24, 2017 and September 24, 2016, respectively. Deferred debt issuance costs associated with line-of-credit arrangements remain classified as other assets on the Partnership’s consolidated balance sheet.  As of June 24, 2017 and September 24, 2016, the Partnership has reflected $15,986 and $13,670 of such costs as a reduction to long-term debt on the condensed consolidated balance sheets, respectively.  Refer to Note 7, “Long-Term Borrowings” for a tabular display of long-term borrowings.

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Financial Instruments and Risk Management

9 Months Ended

Jun. 24, 2017

Fair Value Disclosures [Abstract]

Financial Instruments and Risk Management

3. Financial Instruments and Risk Management

Cash and Cash Equivalents.  The Partnership considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.  The carrying amount approximates fair value because of the short-term maturity of these instruments.

Derivative Instruments and Hedging Activities

Commodity Price Risk.  Given the retail nature of its operations, the Partnership maintains a certain level of priced physical inventory to help ensure its field operations have adequate supply commensurate with the time of year.  The Partnership’s strategy is to keep its physical inventory priced relatively close to market for its field operations.  The Partnership enters into a combination of exchange-traded futures and option contracts and, in certain instances, over-the-counter options and swap contracts (collectively, “derivative instruments”) to hedge price risk associated with propane and fuel oil physical inventories, as well as future purchases of propane or fuel oil used in its operations and to help ensure adequate supply during periods of high demand.  In addition, the Partnership sells propane and fuel oil to customers at fixed prices, and enters into derivative instruments to hedge a portion of its exposure to fluctuations in commodity prices as a result of selling the fixed price contracts.  Under this risk management strategy, realized gains or losses on derivative instruments will typically offset losses or gains on the physical inventory once the product is sold or delivered as it pertains to fixed price contracts.  All of the Partnership’s derivative instruments are reported on the condensed consolidated balance sheet at their fair values.  In addition, in the course of normal operations, the Partnership routinely enters into contracts such as forward priced physical contracts for the purchase or sale of propane and fuel oil that qualify for and are designated as normal purchase or normal sale contracts.  Such contracts are exempted from the fair value accounting requirements and are accounted for at the time product is purchased or sold under the related contract.  The Partnership does not use derivative instruments for speculative trading purposes.  Market risks associated with futures, options, forward and swap contracts are monitored daily for compliance with the Partnership’s Hedging and Risk Management Policy which includes volume limits for open positions.  Priced on-hand inventory is also reviewed and managed daily as to exposures to changing market prices.

On the date that derivative instruments are entered into, other than those designated as normal purchases or normal sales, the Partnership makes a determination as to whether the derivative instrument qualifies for designation as a hedge.  Changes in the fair value of derivative instruments are recorded each period in current period earnings or other comprehensive income (“OCI”), depending on whether the derivative instrument is designated as a hedge and, if so, the type of hedge.  For derivative instruments designated as cash flow hedges, the Partnership formally assesses, both at the hedge contract’s inception and on an ongoing basis, whether the hedge contract is highly effective in offsetting changes in cash flows of hedged items.  Changes in the fair value of derivative instruments designated as cash flow hedges are reported in OCI to the extent effective and reclassified into earnings during the same period in which the hedged item affects earnings.  The mark-to-market gains or losses on ineffective portions of cash flow hedges are recognized in earnings immediately.  Changes in the fair value of derivative instruments that are not designated as cash flow hedges, and that do not meet the normal purchase and normal sale exemption, are recorded within earnings as they occur.  Cash flows associated with derivative instruments are reported as operating activities within the condensed consolidated statement of cash flows.

Interest Rate Risk.  A portion of the Partnership’s borrowings bear interest at prevailing interest rates based upon, at the Operating Partnership’s option, LIBOR plus an applicable margin or the base rate, defined as the higher of the Federal Funds Rate plus ½ of 1% or the agent bank’s prime rate, or LIBOR plus 1%, plus the applicable margin.  The applicable margin is dependent on the level of the Partnership’s total leverage (the ratio of total debt to income before deducting interest expense, income taxes, depreciation and amortization (“EBITDA”)).  Therefore, the Partnership is subject to interest rate risk on the variable component of the interest rate.  From time to time, the Partnership enters into interest rate swap agreements to manage a part of its variable interest rate risk. The interest rate swaps have been designated as, and are accounted for as, cash flow hedges.  The fair value of the interest rate swaps are determined using an income approach, whereby future settlements under the swaps are converted into a single present value, with fair value being based on the value of current market expectations about those future amounts.  Changes in the fair value are recognized in OCI until the hedged item is recognized in earnings.  However, due to changes in the underlying interest rate environment, the corresponding value in OCI is subject to change prior to its impact on earnings.

Valuation of Derivative Instruments.  The Partnership measures the fair value of its exchange-traded options and futures contracts using quoted market prices found on the New York Mercantile Exchange (the “NYMEX”) (Level 1 inputs); the fair value of its swap contracts using quoted forward prices, and the fair value of its interest rate swaps using model-derived valuations driven by observable projected movements of the 3-month LIBOR (Level 2 inputs); and the fair value of its over-the-counter options contracts using Level 3 inputs.  The Partnership’s over-the-counter options contracts are valued based on an internal option model.  The inputs utilized in the model are based on publicly available information as well as broker quotes.  The significant unobservable inputs used in the fair value measurements of the Partnership’s over-the-counter options contracts are interest rate and market volatility.

The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of June 24, 2017 and September 24, 2016, respectively:

	As of June 24, 2017			As of September 24, 2016
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	866	Other current assets	$	3,306
	Other assets		1,079	Other assets		1,546
		$	1,945		$	4,852
Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swap	Other current liabilities	$	—	Other current liabilities	$	205
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current liabilities	$	2,806	Other current liabilities	$	1,002
	Other liabilities		—	Other liabilities		1,353
		$	2,806		$	2,355

The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended					Nine Months Ended
	June 24, 2017					June 25, 2016
	Assets			Liabilities		Assets			Liabilities
Beginning balance of over-the-counter options	$	809		$	—	$	2,781		$	347
Beginning balance realized during the period		(589	)		—		(2,546	)		(275	)
Contracts purchased during the period		—			—		762			—
Change in the fair value of outstanding contracts		(115	)		—		(234	)		(72	)
Ending balance of over-the-counter options	$	105		$	—	$	763		$	—

As of June 24, 2017 and September 24, 2016, the Partnership’s outstanding commodity-related derivatives had a weighted average maturity of approximately seven and six months, respectively.

The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income, as applicable, for the three and nine months ended June 24, 2017 and June 25, 2016 are as follows:

Three Months Ended June 24, 2017

Three Months Ended June 25, 2016

Derivatives in Cash Flow

Gains (Losses) Recognized  in OCI

Gains (Losses) Reclassified from Accumulated OCI into Income

Gains (Losses) Recognized  in OCI

Gains (Losses) Reclassified from Accumulated OCI into Income

Hedging Relationships

(Effective Portion)

Location

Amount

(Effective Portion)

Location

Amount

Interest rate swap

$

—

Interest expense

$

—

$

(107

)

Interest expense

$

(252

)

Derivatives Not Designated as Hedging Instruments

Unrealized Gains (Losses) Recognized in Income

Unrealized Gains (Losses) Recognized in Income

Location

Amount

Location

Amount

Commodity-related    derivatives

Cost of products sold

$

(655

)

Cost of products sold

$

(56

)

	Nine Months Ended June 24, 2017							Nine Months Ended June 25, 2016
Derivatives in Cash Flow	Gains (Losses) Recognized  in OCI			Gains (Losses) Reclassified from Accumulated OCI into Income				Gains (Losses) Recognized  in OCI			Gains (Losses) Reclassified from Accumulated OCI into Income
Hedging Relationships	(Effective Portion)			Location	Amount			(Effective Portion)			Location	Amount
Interest rate swap	$	(10	)	Interest expense	$	(215	)	$	(47	)	Interest expense	$	(844	)
Derivatives Not Designated as Hedging Instruments				Unrealized Gains (Losses) Recognized in Income							Unrealized Gains (Losses) Recognized in Income
				Location	Amount						Location	Amount
Commodity-related    derivatives				Cost of products sold	$	(2,708	)				Cost of products sold	$	(2,005	)

The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:

	As of June 24, 2017							As of September 24, 2016
						Net amounts							Net amounts
						presented in the							presented in the
	Gross amounts		Effects of netting			balance sheet		Gross amounts		Effects of netting			balance sheet
Asset Derivatives
Commodity-related derivatives	$	6,709	$	(4,764	)	$	1,945	$	6,842	$	(1,990	)	$	4,852
Interest rate swap		—		—			—		230		(230	)		—
	$	6,709	$	(4,764	)	$	1,945	$	7,072	$	(2,220	)	$	4,852
Liability Derivatives
Commodity-related derivatives	$	7,570	$	(4,764	)	$	2,806	$	4,345	$	(1,990	)	$	2,355
Interest rate swap		—		—			—		435		(230	)		205
	$	7,570	$	(4,764	)	$	2,806	$	4,780	$	(2,220	)	$	2,560

The Partnership had $2,593 and $206 posted cash collateral as of June 24, 2017 and September 24, 2016, respectively, with its brokers for outstanding commodity-related derivatives.

Bank Debt and Senior Notes.  The fair value of the borrowings under the Revolving Credit Facility (defined below in Note 7) approximates the carrying value since the interest rates are adjusted quarterly to reflect market conditions.  Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (also defined below in Note 7) of the Partnership are as follows:

	As of
	June 24,		September 24,
	2017		2016
7.375% senior notes due August 1, 2021	$	—	$	360,893
5.5% senior notes due June 1, 2024		522,811		534,188
5.75% senior notes due March 1, 2025		249,375		253,438
5.875% senior notes due March 1, 2027		350,000		—
	$	1,122,186	$	1,148,519

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Inventories

9 Months Ended

Jun. 24, 2017

Inventory Disclosure [Abstract]

Inventories

4. Inventories

Inventories are stated at the lower of cost or market.  Cost is determined using a weighted average method for propane, fuel oil and refined fuels and natural gas, and a standard cost basis for appliances, which approximates average cost.  Inventories consist of the following:

	As of
	June 24,		September 24,
	2017		2016
Propane, fuel oil and refined fuels and natural gas	$	40,642	$	43,905
Appliances		1,170		1,447
	$	41,812	$	45,352

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Goodwill and Other Intangible Assets

9 Months Ended

Jun. 24, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net assets acquired.  Goodwill is subject to an impairment review at a reporting unit level, on an annual basis as of the end of fiscal July of each year, or when an event occurs or circumstances change that would indicate potential impairment.

The Partnership has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Partnership determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Partnership concludes otherwise, then it is required to perform the first step of the two-step impairment test.

Under the two-step impairment test, the Partnership assesses the carrying value of goodwill at a reporting unit level based on an estimate of the fair value of the respective reporting unit.  Fair value of the reporting unit is estimated using discounted cash flow analyses taking into consideration estimated cash flows in a ten-year projection period and a terminal value calculation at the end of the projection period.  If the fair value of the reporting unit exceeds its carrying value, the goodwill associated with the reporting unit is not considered to be impaired.  If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized to the extent that the carrying amount of the associated goodwill, if any, exceeds the implied fair value of the goodwill.

The carrying values of goodwill assigned to the Partnership’s operating segments are as follows:

			Fuel oil and			Natural gas
	Propane		refined fuels			and electricity		Total
Balance as of September 24, 2016 and    June 24, 2017
Goodwill	$	1,082,297	$	10,900		$	7,900	$	1,101,097
Accumulated adjustments		—		(6,462	)		—		(6,462	)
	$	1,082,297	$	4,438		$	7,900	$	1,094,635

Other intangible assets consist of the following:

	As of
	June 24,			September 24,
	2017			2016
Customer relationships	$	492,656		$	492,656
Non-compete agreements		31,040			31,040
Tradenames		3,482			3,482
Other		1,967			1,967
		529,145			529,145
Less: accumulated amortization
Customer relationships		(265,879	)		(225,634	)
Non-compete agreements		(24,583	)		(22,533	)
Tradenames		(3,482	)		(3,482	)
Other		(1,236	)		(1,167	)
		(295,180	)		(252,816	)
	$	233,965		$	276,329

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Net Income Per Common Unit

9 Months Ended

Jun. 24, 2017

Earnings Per Share [Abstract]

Net Income Per Common Unit

6. Net Income Per Common Unit

Computations of basic income per Common Unit are performed by dividing net income by the weighted average number of outstanding Common Units, and vested (and unissued) restricted units granted under the Partnership’s Restricted Unit Plans, as defined below, to retirement-eligible grantees.  Computations of diluted income per Common Unit are performed by dividing net income by the weighted average number of outstanding Common Units and unissued restricted units granted under the Restricted Unit Plans.  In computing diluted net income per Common Unit, weighted average units outstanding used to compute basic net income per Common Unit were increased by 183,752 and 179,864 units for the nine months ended June 24, 2017 and June 25, 2016, respectively, to reflect the potential dilutive effect of the unvested restricted units outstanding using the treasury stock method.  Diluted loss per unit for the three months ended June 24, 2017 and June 25, 2016 does not include unvested Restricted Units as their effect would be anti-dilutive.  

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Long-Term Borrowings

9 Months Ended

Jun. 24, 2017

Debt Disclosure [Abstract]

Long Term Borrowings

7. Long-Term Borrowings

Long-term borrowings consist of the following:

	As of
	June 24,			September 24,
	2017			2016 (1)
7.375% senior notes, due August 1, 2021, including    unamortized premium of $-0- and $16,992, respectively	$	—		$	363,172
5.5% senior notes, due June 1, 2024		525,000			525,000
5.75% senior notes, due March 1, 2025		250,000			250,000
5.875% senior notes due March 1, 2027		350,000			—
Revolving Credit Facility, due March 3, 2021		141,145			100,000
Less: unamortized debt issuance costs		(15,986	)		(13,670	)
	$	1,250,159		$	1,224,502

(1) Long-term borrowings as of September 24, 2016 reflect the retrospective impact from the adoption of new accounting guidance regarding the balance sheet classification of debt issuance costs (See Note 2).

Senior Notes

2021 Senior Notes

On August 1, 2012, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., issued $503,443 in aggregate principal amount of unregistered 7.375% senior notes due August 1, 2021 (the “2021 Senior Notes”) in a private placement in conjunction with the acquisition of the retail propane assets and operations of Inergy, L.P.  The 2021 Senior Notes required semi-annual interest payments in February and August.  On December 19, 2012, the Partnership completed an offer to exchange its then-outstanding unregistered 7.375% senior notes due 2021 for an equal principal amount of 7.375% senior notes due 2021 that were registered under the Securities Act of 1933, as amended.

On August 2, 2013, the Partnership repurchased, pursuant to an optional redemption, $133,400 of its 2021 Senior Notes using net proceeds from a public offering of Common Units and net proceeds from the underwriters’ exercise of their over-allotment option to purchase additional Common Units.  In addition, on August 6, 2013, the Partnership repurchased $23,863 of 2021 Senior Notes in a private transaction using cash on hand.  

On February 14, 2017, the Partnership repurchased, satisfied and discharged all of its remaining outstanding 2021 Senior Notes with net proceeds from the issuance of the 2027 Senior Notes, as defined below, and borrowings under the Revolving Credit Facility, also as defined below, pursuant to a tender offer and redemption.  In connection with this tender offer and redemption, the Partnership recognized a loss on the extinguishment of debt of $1,567 consisting of $15,078 for the redemption premium and related fees, as well as the write-off of $2,272 and ($15,783) in unamortized debt origination costs and unamortized premium, respectively.

2024 Senior Notes

On May 27, 2014, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., completed a public offering of $525,000 in aggregate principal amount of 5.5% senior notes due June 1, 2024 (the “2024 Senior Notes”).  The 2024 Senior Notes were issued at 100% of the principal amount and require semi-annual interest payments in June and December.  The net proceeds from the issuance of the 2024 Senior Notes, along with cash on hand, were used to repurchase, satisfy and discharge all of the Partnership’s then-outstanding 7.5% senior notes due in 2018.

2025 Senior Notes

On February 25, 2015, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., completed a public offering of $250,000 in aggregate principal amount of 5.75% senior notes due March 1, 2025 (the “2025 Senior Notes”).  The 2025 Senior Notes were issued at 100% of the principal amount and require semi-annual interest payments in March and September.  The net proceeds from the issuance of the 2025 Senior Notes, along with cash on hand, were used to repurchase, satisfy and discharge all of the Partnership’s then-outstanding 7.375% senior notes due in 2020.  

2027 Senior Notes

On February 14, 2017, the Partnership and its 100%-owned subsidiary, Suburban Energy Finance Corp., completed a public offering of $350,000 in aggregate principal amount of 5.875% senior notes due March 1, 2027 (the “2027 Senior Notes”).  The 2027 Senior Notes were issued at 100% of the principal amount and require semi-annual interest payments in March and September.  The net proceeds from the issuance of the 2027 Senior Notes, along with borrowings under the Revolving Credit Facility, were used to repurchase, satisfy and discharge all of the 2021 Senior Notes.

The Partnership’s obligations under the 2024 Senior Notes, 2025 Senior Notes and 2027 Senior Notes (collectively, the “Senior Notes”) are unsecured and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment with any future senior indebtedness.  The Senior Notes are structurally subordinated to, which means they rank effectively behind, any debt and other liabilities of the Operating Partnership.  The Partnership is permitted to redeem some or all of the Senior Notes at redemption prices and times as specified in the indentures governing the Senior Notes.  The Senior Notes each have a change of control provision that would require the Partnership to offer to repurchase the notes at 101% of the principal amount repurchased, if a change of control, as defined in the indenture, occurs and is followed by a rating decline (a decrease in the rating of the notes by either Moody’s Investors Service or Standard and Poor’s Rating Group by one or more gradations) within 90 days of the consummation of the change of control.

Credit Agreement.  The Operating Partnership has an amended and restated credit agreement, dated March 3, 2016 (the “Amended Credit Agreement”) that provides for a five-year $500,000 revolving credit facility (the “Revolving Credit Facility”) with a maturity date of March 3, 2021, of which $141,145 and $100,000 was outstanding as of June 24, 2017 and September 24, 2016, respectively.  Borrowings under the Revolving Credit Facility may be used for general corporate purposes, including working capital, capital expenditures and acquisitions.  The Operating Partnership has the right to prepay any borrowings under the Revolving Credit Facility, in whole or in part, without penalty at any time prior to maturity.  In connection with the March 3, 2016 amendment and restatement, the Partnership recognized a non-cash charge of $292 during the second quarter of fiscal 2016 to write off a portion of unamortized debt origination costs of the previous credit agreement.  

The Amended Credit Agreement contains certain restrictive and affirmative covenants applicable to the Operating Partnership, its subsidiaries and the Partnership, as well as certain financial covenants, including (a) requiring the Partnership’s Consolidated Interest Coverage Ratio, as defined in the Amended Credit Agreement, to be not less than 2.5 to 1.0 as of the end of any fiscal quarter, (b) prohibiting the Total Consolidated Leverage Ratio, as defined in the Amended Credit Agreement, of the Partnership from being greater than 5.5 to 1.0 as of the end of any fiscal quarter and (c) prohibiting the Senior Secured Consolidated Leverage Ratio, as defined in the Amended Credit Agreement, of the Operating Partnership from being greater than 3.0 to 1.0 as of the end of any fiscal quarter.  

On May 1, 2017, the Operating Partnership secured an amendment to the Amended Credit Agreement that provides for certain modifications to the terms of the Amended Credit Agreement, including the following: (i) amendment of the definition of Applicable Rate (as defined in the Amended Credit Agreement) to add an additional pricing level of 3.00% for Eurodollar Rate Loans and Letter of Credit Fees, 2.00% for Base Rate Loans and 0.500% for Commitment Fee, which would be applicable should the Total Consolidated Leverage Ratio exceed 5.5 to 1.0 at the end of the applicable measuring period and (ii) amendment of the maximum permitted Total Consolidated Leverage Ratio from 5.5 to 1.0 at the end of any fiscal quarter to 5.95 to 1.0 for each fiscal quarter ending in June, September and December 2017, and March and June 2018, 5.75 to 1.0 for the fiscal quarter ending in September 2018, and 5.5 to 1.0 for the fiscal quarter ending in December 2018 and for each fiscal quarter thereafter.

The Partnership and certain subsidiaries of the Operating Partnership act as guarantors with respect to the obligations of the Operating Partnership under the Amended Credit Agreement pursuant to the terms and conditions set forth therein.  The obligations under the Amended Credit Agreement are secured by liens on substantially all of the personal property of the Partnership, the Operating Partnership and their subsidiaries, as well as mortgages on certain real property.

Borrowings under the Revolving Credit Facility bear interest at prevailing interest rates based upon, at the Operating Partnership’s option, LIBOR plus the Applicable Rate, or the base rate, defined as the higher of the Federal Funds Rate plus ½ of 1%, the administrative agent bank’s prime rate, or LIBOR plus 1%, plus in each case the Applicable Rate.  The Applicable Rate is dependent upon the Partnership’s Total Consolidated Leverage Ratio.  As of June 24, 2017, the interest rate for borrowings under the Revolving Credit Facility was approximately 3.6%.  The interest rate and the Applicable Rate will be reset following the end of each calendar quarter.

In connection with the previous credit agreement, the Operating Partnership entered into an interest rate swap agreement with a notional amount of $100,000, an effective date of June 25, 2013 and a termination date of January 5, 2017.  Under this interest rate swap agreement, the Operating Partnership paid a fixed interest rate of 1.63% to the issuing lender on the notional principal amount outstanding, and the issuing lender paid the Operating Partnership a floating rate, namely LIBOR, on the same notional principal amount.  The interest rate swap was designated as a cash flow hedge.  The Partnership did not enter into a new interest rate swap agreement upon termination.

As of June 24, 2017, the Partnership had standby letters of credit issued under the Revolving Credit Facility of $43,256 which expire periodically through April 3, 2018.

The Amended Credit Agreement and the Senior Notes both contain various restrictive and affirmative covenants applicable to the Operating Partnership, its subsidiaries and the Partnership, respectively, including (i) restrictions on the incurrence of additional indebtedness, and (ii) restrictions on certain liens, investments, guarantees, loans, advances, payments, mergers, consolidations, distributions, sales of assets and other transactions.  Under the Amended Credit Agreement and the indentures governing the Senior Notes, the Operating Partnership and the Partnership are generally permitted to make cash distributions equal to available cash, as defined, as of the end of the immediately preceding quarter, if no event of default exists or would exist upon making such distributions, and with respect to the indentures governing the Senior Notes, the Partnership’s consolidated fixed charge coverage ratio, as defined, is greater than 1.75 to 1.  The Partnership and the Operating Partnership were in compliance with all covenants and terms of the Senior Notes and the Amended Credit Agreement as of June 24, 2017.

The aggregate amounts of long-term debt maturities subsequent to June 24, 2017 are as follows: fiscal 2017: $-0-; fiscal 2018: $-0-; fiscal 2019: $-0-; fiscal 2020: $-0-; fiscal 2021: $141,145; and thereafter: $1,125,000.

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Distributions of Available Cash

9 Months Ended

Jun. 24, 2017

Distributions Made To Members Or Limited Partners [Abstract]

Distributions of Available Cash

8. Distributions of Available Cash

The Partnership makes distributions to its partners no later than 45 days after the end of each fiscal quarter in an aggregate amount equal to its Available Cash for such quarter.  Available Cash, as defined in the Partnership Agreement, generally means all cash on hand at the end of the respective fiscal quarter less the amount of cash reserves established by the Board of Supervisors in its reasonable discretion for future cash requirements.  These reserves are retained for the proper conduct of the Partnership’s business, the payment of debt principal and interest and for distributions during the next four quarters.

On July 20, 2017, the Partnership announced a quarterly distribution of $0.8875 per Common Unit, or $3.55 per Common Unit on an annualized basis, in respect of the third quarter of fiscal 2017, payable on August 8, 2017 to holders of record on August 1, 2017.

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Unit-Based Compensation Arrangements

9 Months Ended

Jun. 24, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Unit-Based Compensation Arrangements

9. Unit-Based Compensation Arrangements

The Partnership recognizes compensation cost over the respective service period for employee services received in exchange for an award of equity, or equity-based compensation, based on the grant date fair value of the award.  The Partnership measures liability awards under an equity-based payment arrangement based on remeasurement of the award’s fair value at the conclusion of each interim and annual reporting period until the date of settlement, taking into consideration the probability that the performance conditions will be satisfied.

Restricted Unit Plan.  On July 22, 2009, the Partnership adopted the Suburban Propane Partners, L.P. 2009 Restricted Unit Plan, as amended (the “Restricted Unit Plan”), which authorizes the issuance of Common Units to executives, managers and other employees and members of the Board of Supervisors of the Partnership.  The total number of Common Units authorized for issuance under the Restricted Unit Plan was 2,400,000 as of June 24, 2017.  In accordance with an August 6, 2013 amendment to the Restricted Unit Plan, unless otherwise stipulated by the Compensation Committee of the Partnership’s Board of Supervisors on or before the grant date, all restricted unit awards granted after the date of the amendment will vest 33.33% on each of the first three anniversaries of the award grant date.  Prior to the August 6, 2013 amendment, unless otherwise stipulated by the Compensation Committee of the Partnership’s Board of Supervisors on or before the grant date, restricted units awarded under the Restricted Unit Plan vest over time with 25% of the Common Units vesting at the end of each of the third and fourth anniversaries of the grant date and the remaining 50% of the Common Units vesting at the end of the fifth anniversary of the grant date.  The Restricted Unit Plan participants are not eligible to receive quarterly distributions on, or vote, their respective restricted units until vested.  Restricted units cannot be sold or transferred prior to vesting.  The value of the restricted unit is established by the market price of the Common Unit on the date of grant, net of estimated future distributions during the vesting period.  Restricted units are subject to forfeiture in certain circumstances as defined in the Restricted Unit Plan. Compensation expense for the unvested awards is recognized ratably over the vesting periods and is net of estimated forfeitures.

During the nine months ended June 24, 2017, the Partnership awarded 323,715 restricted units under the Restricted Unit Plan at an aggregate grant date fair value of $6,799.  The following is a summary of activity for the Restricted Unit Plan for the nine months ended June 24, 2017:

				WeightedAverage
	Restricted			Grant Date Fair
	Units			Value Per Unit
Outstanding September 24, 2016		654,120		$	26.74
Awarded		323,715			21.00
Forfeited		(1,758	)		(30.65	)
Vested (with Common Units issued)		(323,752	)		(30.11	)
Outstanding June 24, 2017		652,325		$	22.21

As of June 24, 2017, unrecognized compensation cost related to unvested restricted units awarded under the Restricted Unit Plan amounted to $4,325.  Compensation cost associated with unvested awards is expected to be recognized over a weighted-average period of 1 year.  Compensation expense recognized under the Restricted Unit Plan, net of forfeitures, for the three and nine months ended June 24, 2017 was $1,372 and $6,209, respectively, and $1,671 and $7,062 for the three and nine months ended June 25, 2016, respectively.

Distribution Equivalent Rights Plan.  On January 17, 2017, the Partnership adopted the Distribution Equivalent Rights Plan (the “DER Plan”), which gives the Compensation Committee of the Partnership’s Board of Supervisors discretion to award distribution equivalent rights (“DERs”) to executive officers of the Partnership.  Once awarded, DERs entitle the grantee to a cash payment each time the Board of Supervisors declares a cash distribution on the Partnership’s Common Units, which cash payment will be equal to an amount calculated by multiplying the number of unvested restricted units which are held by the grantee on the record date of the distribution, by the amount of the declared distribution per Common Unit.  Compensation expense recognized under the DER Plan was $205 and $640 for the three and nine months ended June 24, 2017, respectively.

Long-Term Incentive Plan.  On August 6, 2013, the Partnership adopted the 2014 Long-Term Incentive Plan (“LTIP”).  The LTIP is a non-qualified, unfunded, long-term incentive plan for officers and key employees that provides for payment, in the form of cash, of an award of equity-based compensation at the end of a three-year performance period.  The level of compensation earned under the LTIP is based on the Partnership’s average distribution coverage ratio over the three-year measurement period.  The Partnership’s average distribution coverage ratio is calculated as the Partnership’s average distributable cash flow, as defined by the LTIP, for each of the three years in the measurement period, subject to certain adjustments as set forth in the LTIP, divided by the amount of annualized cash distributions to be paid by the Partnership, based on the annualized cash distribution rate at the beginning of the measurement period.

As a result of the quarterly remeasurement of the liability for awards under the LTIP, compensation expense for the three and nine months ended June 24, 2017 reflected income of $550 and $2,026, respectively, and income of $671 and $1,401 for the three and nine months ended June 25, 2016, respectively. As of June 24, 2017 and September 24, 2016, the Partnership had a liability included within accrued employment and benefit costs (or other liabilities, as applicable) of $-0- and $2,026, respectively, related to estimated future payments under the LTIP.

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Commitments and Contingencies

9 Months Ended

Jun. 24, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Self-Insurance.  The Partnership is self-insured for general and product, workers’ compensation and automobile liabilities up to predetermined thresholds above which third party insurance applies. As of June 24, 2017 and September 24, 2016, the Partnership had accrued insurance liabilities of $66,190 and $59,676, respectively, representing the total estimated losses under these self-insurance programs. For the portion of the estimated liability that exceeds insurance deductibles, the Partnership records an asset within other assets (or other current assets, as applicable) related to the amount of the liability expected to be covered by insurance which amounted to $18,827 and $15,524 as of June 24, 2017 and September 24, 2016, respectively.

Legal Matters.  The Partnership’s operations are subject to operating hazards and risks normally incidental to handling, storing and delivering combustible liquids such as propane.  The Partnership has been, and will continue to be, a defendant in various legal proceedings and litigation as a result of these operating hazards and risks, and as a result of other aspects of its business.  During the first quarter of fiscal 2016, the Partnership settled a product liability matter for $3,000.  Although any litigation is inherently uncertain, based on past experience, the information currently available to the Partnership, and the amount of its accrued insurance liabilities, the Partnership does not believe that currently pending or threatened litigation matters, or known claims or known contingent claims, will have a material adverse effect on its results of operations, financial condition or cash flow.

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Guarantees

9 Months Ended

Jun. 24, 2017

Guarantees [Abstract]

Guarantees

11. Guarantees

The Partnership has residual value guarantees associated with certain of its operating leases, related primarily to transportation equipment, with remaining lease periods scheduled to expire periodically through fiscal 2024.  Upon completion of the lease period, the Partnership guarantees that the fair value of the equipment will equal or exceed the guaranteed amount, or the Partnership will pay the lessor the difference.  Although the fair value of equipment at the end of its lease term has historically exceeded the guaranteed amounts, the maximum potential amount of aggregate future payments the Partnership could be required to make under these leasing arrangements, assuming the equipment is deemed worthless at the end of the lease term, was $14,675 as of June 24, 2017.  The fair value of residual value guarantees for outstanding operating leases was de minimis as of June 24, 2017 and September 24, 2016.

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Pension Plans and Other Postretirement Benefits

9 Months Ended

Jun. 24, 2017

Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]

Pension Plans and Other Postretirement Benefits

12. Pension Plans and Other Postretirement Benefits

The following table provides the components of net periodic benefit costs:

	Pension Benefits
	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Interest cost	$	1,041		$	1,260		$	3,123		$	3,781
Expected return on plan assets		(537	)		(854	)		(1,611	)		(2,563	)
Amortization of net loss (gain)		1,301			1,304			3,901			3,913
Net periodic benefit cost	$	1,805		$	1,710		$	5,413		$	5,131

	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Interest cost	$	96		$	130		$	288		$	400
Amortization of prior service credits		—			(100	)		—			(300	)
Amortization of net loss (gain)		(98	)		(74	)		(292	)		(223	)
Net periodic benefit cost	$	(2	)	$	(44	)	$	(4	)	$	(123	)

The Partnership expects to contribute approximately $9,527 to the defined benefit pension plan during fiscal 2017, of which $7,542 was contributed during the nine months ended June 24, 2017. The projected annual contribution requirements related to the Partnership’s postretirement health care and life insurance benefit plan for fiscal 2017 is $922, of which $899 was contributed during the nine months ended June 24, 2017.

The Partnership contributes to multi-employer pension plans (“MEPPs”) in accordance with various collective bargaining agreements covering union employees. As one of the many participating employers in these MEPPs, the Partnership is responsible with the other participating employers for any plan underfunding.  As of June 24, 2017 and September 24, 2016, the Partnership’s estimated obligation to these MEPPs was $22,960 and $24,205, respectively, as a result of its voluntary withdrawal from certain MEPPs.

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Amounts Reclassified Out of Accumulated Other Comprehensive Income

9 Months Ended

Jun. 24, 2017

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Amounts Reclassified Out of Accumulated Other Comprehensive Income

13. Amounts Reclassified Out of Accumulated Other Comprehensive Income

The following table summarizes amounts reclassified out of accumulated other comprehensive (loss) income for the three and nine months ended June 24, 2017 and June 25, 2016:

	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Cash Flow Hedges
Balance, beginning of period	$	—		$	(659	)	$	(205	)	$	(1,311	)
Other comprehensive income before reclassifications:
Unrealized (losses) gains		—			(107	)		(10	)		(47	)
Reclassifications to earnings:
Realized losses (a)		—			252			215			844
Other comprehensive income		—			145			205			797
Balance, end of period	$	—		$	(514	)	$	—		$	(514	)
Pension Benefits
Balance, beginning of period	$	(48,791	)	$	(50,227	)	$	(51,391	)	$	(52,836	)
Reclassifications to earnings:
Amortization of net loss (b)		1,301			1,304			3,901			3,913
Other comprehensive income		1,301			1,304			3,901			3,913
Balance, end of period	$	(47,490	)	$	(48,923	)	$	(47,490	)	$	(48,923	)
Postretirement Benefits
Balance, beginning of period	$	5,570		$	4,915		$	5,764		$	5,264
Reclassifications to earnings:
Amortization of prior service credits (b)		—			(100	)		—			(300	)
Amortization of net gain (b)		(98	)		(74	)		(292	)		(223	)
Other comprehensive loss		(98	)		(174	)		(292	)		(523	)
Balance, end of period	$	5,472		$	4,741		$	5,472		$	4,741
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	(43,221	)	$	(45,971	)	$	(45,832	)	$	(48,883	)
Other comprehensive income before reclassifications		—			(107	)		(10	)		(47	)
Reclassifications to earnings		1,203			1,382			3,824			4,234
Other comprehensive income		1,203			1,275			3,814			4,187
Balance, end of period	$	(42,018	)	$	(44,696	)	$	(42,018	)	$	(44,696	)

(a) Reclassification of realized losses on cash flow hedges are recognized in interest expense.

(b) These amounts are included in the computation of net periodic benefit cost.  See Note 12, “Pension Plans and Other Postretirement Benefits.”

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Income Taxes

9 Months Ended

Jun. 24, 2017

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

For federal income tax purposes, as well as for state income tax purposes in the majority of the states in which the Partnership operates, the earnings attributable to the Partnership and the Operating Partnership are not subject to income tax at the partnership level.  With the exception of those states that impose an entity-level income tax on partnerships, the taxable income or loss attributable to the Partnership and to the Operating Partnership, which may vary substantially from the income (loss) before income taxes reported by the Partnership in the condensed consolidated statement of operations, are includable in the federal and state income tax returns of the Common Unitholders.  The aggregate difference in the basis of the Partnership’s net assets for financial and tax reporting purposes cannot be readily determined as the Partnership does not have access to each Common Unitholder’s basis in the Partnership.

As described in Note 1, the earnings of the Corporate Entities are subject to corporate level federal and state income tax.  However, based upon past performance, the Corporate Entities are currently reporting an income tax provision composed primarily of minimum state income taxes.  A full valuation allowance has been provided against the deferred tax assets based upon an analysis of all available evidence, both negative and positive at the balance sheet date, which, taken as a whole, indicates that it is more likely than not that sufficient future taxable income will not be available to utilize the assets.  Management’s periodic reviews include, among other things, the nature and amount of the taxable income and expense items, the expected timing of when assets will be used or liabilities will be required to be reported and the reliability of historical profitability of businesses expected to provide future earnings.  Furthermore, management considered tax-planning strategies it could use to increase the likelihood that the deferred assets will be realized.

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Segment Information

9 Months Ended

Jun. 24, 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						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Revenues:
Propane	$	188,406		$	172,322		$	843,519		$	752,013
Fuel oil and refined fuels		12,886			12,459			69,612			61,961
Natural gas and electricity		11,923			10,596			44,229			38,232
All other		9,680			9,722			33,420			32,890
Total revenues	$	222,895		$	205,099		$	990,780		$	885,096
Operating (loss) income:
Propane	$	11,323		$	14,182		$	201,332		$	199,042
Fuel oil and refined fuels		199			(854	)		9,875			7,585
Natural gas and electricity		2,806			1,969			11,461			8,665
All other		(5,747	)		(6,014	)		(16,139	)		(18,882	)
Corporate		(19,643	)		(20,063	)		(61,249	)		(64,633	)
Total operating (loss) income		(11,062	)		(10,780	)		145,280			131,777
Reconciliation to net (loss) income:
Loss on debt extinguishment		—			—			1,567			292
Interest expense, net		18,502			18,638			54,820			56,383
Provision for income taxes		152			180			308			423
Net (loss) income	$	(29,716	)	$	(29,598	)	$	88,585		$	74,679
Depreciation and amortization:
Propane	$	27,787		$	27,324		$	83,243		$	81,949
Fuel oil and refined fuels		625			673			1,923			2,055
Natural gas and electricity		—			—			—			3
All other		76			73			222			234
Corporate		3,337			4,218			10,368			12,835
Total depreciation and amortization	$	31,825		$	32,288		$	95,756		$	97,076

	As of
	June 24,		September24,
	2017		2016
Assets:
Propane	$	2,081,268	$	2,141,108
Fuel oil and refined fuels		51,591		53,266
Natural gas and electricity		12,592		13,415
All other		1,907		2,185
Corporate		43,942		72,325
Total assets	$	2,191,300	$	2,282,299

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Basis of Presentation (Policies)

9 Months Ended

Jun. 24, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Principles of Consolidation

Principles of Consolidation.  The condensed consolidated financial statements include the accounts of the Partnership, the Operating Partnership and all of its direct and indirect subsidiaries.  All significant intercompany transactions and account balances have been eliminated.  The Partnership consolidates the results of operations, financial condition and cash flows of the Operating Partnership as a result of the Partnership’s 100% limited partner interest in the Operating Partnership.

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).  They include all adjustments that the Partnership considers necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods presented.  Such adjustments consist only of normal recurring items, unless otherwise disclosed.  These financial statements should be read in conjunction with the financial statements included in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 24, 2016.  Due to the seasonal nature of the Partnership’s operations, the results of operations for interim periods are not necessarily indicative of the results to be expected for a full year.

Fiscal Period

Fiscal Period.  The Partnership uses a 52/53 week fiscal year which ends on the last Saturday in September.  The Partnership’s fiscal quarters are generally thirteen weeks in duration.  When the Partnership’s fiscal year is 53 weeks long, as is the case for fiscal 2017, the corresponding fourth quarter is fourteen weeks in duration.

Revenue Recognition

Revenue Recognition.  Sales of propane, fuel oil and refined fuels are recognized at the time product is delivered to the customer.  Revenue from the sale of appliances and equipment is recognized at the time of sale or when installation is complete, as applicable.  Revenue from repairs, maintenance and other service activities is recognized upon completion of the service.  Revenue from annually billed service contracts is recognized ratably over the service period.  Revenue from the natural gas and electricity business is recognized based on customer usage as determined by meter readings for amounts delivered, some of which may be unbilled at the end of each accounting period.  Revenue from annually billed tank fees is deferred at the time of billings and recognized on a straight-line basis over one year.

Fair Value Measurements

Fair Value Measurements.  The Partnership measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market.  The principal market is the market with the greatest level of activity and volume for the asset or liability.

The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values.  The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.

• Level 1: Quoted prices in active markets for identical assets or liabilities.

• Level 2: Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

• Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Business Combinations

Business Combinations.  The Partnership accounts for business combinations using the acquisition method and accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date.  Goodwill represents the excess of the purchase price over the fair value of the net assets acquired, including the amount assigned to identifiable intangible assets.  The primary drivers that generate goodwill are the value of synergies between the acquired entities and the Partnership, and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset.  Identifiable intangible assets with finite lives are amortized over their useful lives.  The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.  The Partnership expenses all acquisition-related costs as incurred.

Use of Estimates

Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Estimates have been made by management in the areas of self-insurance and litigation reserves, pension and other postretirement benefit liabilities and costs, valuation of derivative instruments, depreciation and amortization of long-lived assets, asset impairment assessments, tax valuation allowances, allowances for doubtful accounts, and purchase price allocation for acquired businesses.  The Partnership uses Society of Actuaries life expectancy information when developing the annual mortality assumptions for the pension and postretirement benefit plans, which are used to measure net periodic benefit costs and the obligation under these plans.  Actual results could differ from those estimates, making it reasonably possible that a material change in these estimates could occur in the near term.

Reclassifications

Reclassifications.  Certain prior period amounts have been reclassified to conform with the current period presentation.  See Recently Adopted Accounting Pronouncements, below.

Recently Issued and Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements.In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”).  This update eliminates the second of the two-step goodwill impairment test, as described in Note 5, “Goodwill and Other Intangible Assets.”  Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit.  ASU 2017-04 is effective for the first interim period within annual reporting periods beginning after December 15, 2019, which will be the Partnership’s first quarter of fiscal 2021.  Early adoption of ASU 2017-04 is permitted.  The Partnership does not expect the adoption of ASU 2017-04 will have a material impact on the Partnership’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”).  This update addresses eight specific cash flow issues and is intended to reduce diversity in practice on how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  ASU 2016-15 is effective for the first interim period within annual reporting periods beginning after December 15, 2017, which will be the Partnership’s first quarter of fiscal 2019.  Early adoption of ASU 2016-15 is permitted.  The Partnership is currently evaluating the impact of adopting the standard on the Partnership’s consolidated statements of cash flows.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This update is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, which will be the Partnership’s first quarter of fiscal 2018. Early adoption of ASU 2016-09 is permitted. The Partnership does not expect the adoption of ASU 2016-09 will have a material impact on the Partnership’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for the first interim period within annual reporting periods beginning after December 15, 2018, which will be the Partnership’s first quarter of fiscal 2020. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is currently evaluating the impact of adopting ASU 2016-02 on the Partnership’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”).  This update provides a principles-based approach to revenue recognition, requiring revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. On July 9, 2015, the FASB finalized a one-year deferral of the effective date of ASU 2014-09.  The revenue standard is therefore effective for the first interim period within annual reporting periods beginning after December 15, 2017, which will be the Partnership’s first quarter of fiscal 2019.  Early adoption as of the original effective date is permitted.  ASU 2014-09 can be applied either retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures.  While the Partnership is still in the process of evaluating the potential impact of ASU 2014-09, it does not expect its adoption will have a material impact on the Partnership’s consolidated financial statements.

Recently Adopted Accounting Pronouncements.During the first quarter of fiscal 2017, the Partnership adopted new accounting guidance regarding the classification of deferred debt issuance costs under ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Deferred debt issuance costs associated with long-term debt are now reflected as a direct deduction from the carrying amount of such debt rather than as a deferred charge. Total deferred debt issuance costs were $19,996 and $17,391 at June 24, 2017 and September 24, 2016, respectively. Deferred debt issuance costs associated with line-of-credit arrangements remain classified as other assets on the Partnership’s consolidated balance sheet.  As of June 24, 2017 and September 24, 2016, the Partnership has reflected $15,986 and $13,670 of such costs as a reduction to long-term debt on the condensed consolidated balance sheets, respectively.  Refer to Note 7, “Long-Term Borrowings” for a tabular display of long-term borrowings.

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Financial Instruments and Risk Management (Tables)

9 Months Ended

Jun. 24, 2017

Fair Value Disclosures [Abstract]

Fair value of the Partnership's derivative instruments and their location in the condensed consolidated balance sheets

The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of June 24, 2017 and September 24, 2016, respectively:

	As of June 24, 2017			As of September 24, 2016
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	866	Other current assets	$	3,306
	Other assets		1,079	Other assets		1,546
		$	1,945		$	4,852
Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swap	Other current liabilities	$	—	Other current liabilities	$	205
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current liabilities	$	2,806	Other current liabilities	$	1,002
	Other liabilities		—	Other liabilities		1,353
		$	2,806		$	2,355

Reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended					Nine Months Ended
	June 24, 2017					June 25, 2016
	Assets			Liabilities		Assets			Liabilities
Beginning balance of over-the-counter options	$	809		$	—	$	2,781		$	347
Beginning balance realized during the period		(589	)		—		(2,546	)		(275	)
Contracts purchased during the period		—			—		762			—
Change in the fair value of outstanding contracts		(115	)		—		(234	)		(72	)
Ending balance of over-the-counter options	$	105		$	—	$	763		$	—

Effect of the Partnership's derivative instruments on the condensed consolidated statements of operations

The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income, as applicable, for the three and nine months ended June 24, 2017 and June 25, 2016 are as follows:

Three Months Ended June 24, 2017

Three Months Ended June 25, 2016

Derivatives in Cash Flow

Gains (Losses) Recognized  in OCI

Gains (Losses) Reclassified from Accumulated OCI into Income

Gains (Losses) Recognized  in OCI

Gains (Losses) Reclassified from Accumulated OCI into Income

Hedging Relationships

(Effective Portion)

Location

Amount

(Effective Portion)

Location

Amount

Interest rate swap

$

—

Interest expense

$

—

$

(107

)

Interest expense

$

(252

)

Derivatives Not Designated as Hedging Instruments

Unrealized Gains (Losses) Recognized in Income

Unrealized Gains (Losses) Recognized in Income

Location

Amount

Location

Amount

Commodity-related    derivatives

Cost of products sold

$

(655

)

Cost of products sold

$

(56

)

	Nine Months Ended June 24, 2017							Nine Months Ended June 25, 2016
Derivatives in Cash Flow	Gains (Losses) Recognized  in OCI			Gains (Losses) Reclassified from Accumulated OCI into Income				Gains (Losses) Recognized  in OCI			Gains (Losses) Reclassified from Accumulated OCI into Income
Hedging Relationships	(Effective Portion)			Location	Amount			(Effective Portion)			Location	Amount
Interest rate swap	$	(10	)	Interest expense	$	(215	)	$	(47	)	Interest expense	$	(844	)
Derivatives Not Designated as Hedging Instruments				Unrealized Gains (Losses) Recognized in Income							Unrealized Gains (Losses) Recognized in Income
				Location	Amount						Location	Amount
Commodity-related    derivatives				Cost of products sold	$	(2,708	)				Cost of products sold	$	(2,005	)

Fair value of the Partnership's recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets

The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:

	As of June 24, 2017							As of September 24, 2016
						Net amounts							Net amounts
						presented in the							presented in the
	Gross amounts		Effects of netting			balance sheet		Gross amounts		Effects of netting			balance sheet
Asset Derivatives
Commodity-related derivatives	$	6,709	$	(4,764	)	$	1,945	$	6,842	$	(1,990	)	$	4,852
Interest rate swap		—		—			—		230		(230	)		—
	$	6,709	$	(4,764	)	$	1,945	$	7,072	$	(2,220	)	$	4,852
Liability Derivatives
Commodity-related derivatives	$	7,570	$	(4,764	)	$	2,806	$	4,345	$	(1,990	)	$	2,355
Interest rate swap		—		—			—		435		(230	)		205
	$	7,570	$	(4,764	)	$	2,806	$	4,780	$	(2,220	)	$	2,560

Fair Value of the Partnership's Senior Notes

Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (also defined below in Note 7) of the Partnership are as follows:

	As of
	June 24,		September 24,
	2017		2016
7.375% senior notes due August 1, 2021	$	—	$	360,893
5.5% senior notes due June 1, 2024		522,811		534,188
5.75% senior notes due March 1, 2025		249,375		253,438
5.875% senior notes due March 1, 2027		350,000		—
	$	1,122,186	$	1,148,519

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Inventories (Tables)

9 Months Ended

Jun. 24, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consist of the following:

	As of
	June 24,		September 24,
	2017		2016
Propane, fuel oil and refined fuels and natural gas	$	40,642	$	43,905
Appliances		1,170		1,447
	$	41,812	$	45,352

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Jun. 24, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Carrying values of goodwill assigned to the partnership's operating segments

The carrying values of goodwill assigned to the Partnership’s operating segments are as follows:

			Fuel oil and			Natural gas
	Propane		refined fuels			and electricity		Total
Balance as of September 24, 2016 and    June 24, 2017
Goodwill	$	1,082,297	$	10,900		$	7,900	$	1,101,097
Accumulated adjustments		—		(6,462	)		—		(6,462	)
	$	1,082,297	$	4,438		$	7,900	$	1,094,635

Other intangible assets

Other intangible assets consist of the following:

	As of
	June 24,			September 24,
	2017			2016
Customer relationships	$	492,656		$	492,656
Non-compete agreements		31,040			31,040
Tradenames		3,482			3,482
Other		1,967			1,967
		529,145			529,145
Less: accumulated amortization
Customer relationships		(265,879	)		(225,634	)
Non-compete agreements		(24,583	)		(22,533	)
Tradenames		(3,482	)		(3,482	)
Other		(1,236	)		(1,167	)
		(295,180	)		(252,816	)
	$	233,965		$	276,329

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Long-Term Borrowings (Tables)

9 Months Ended

Jun. 24, 2017

Debt Disclosure [Abstract]

Long-term borrowings

Long-term borrowings consist of the following:

	As of
	June 24,			September 24,
	2017			2016 (1)
7.375% senior notes, due August 1, 2021, including    unamortized premium of $-0- and $16,992, respectively	$	—		$	363,172
5.5% senior notes, due June 1, 2024		525,000			525,000
5.75% senior notes, due March 1, 2025		250,000			250,000
5.875% senior notes due March 1, 2027		350,000			—
Revolving Credit Facility, due March 3, 2021		141,145			100,000
Less: unamortized debt issuance costs		(15,986	)		(13,670	)
	$	1,250,159		$	1,224,502

(1) Long-term borrowings as of September 24, 2016 reflect the retrospective impact from the adoption of new accounting guidance regarding the balance sheet classification of debt issuance costs (See Note 2).

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Unit-Based Compensation Arrangements (Tables)

9 Months Ended

Jun. 24, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of activity for the Restricted Unit Plans

The following is a summary of activity for the Restricted Unit Plan for the nine months ended June 24, 2017:

				WeightedAverage
	Restricted			Grant Date Fair
	Units			Value Per Unit
Outstanding September 24, 2016		654,120		$	26.74
Awarded		323,715			21.00
Forfeited		(1,758	)		(30.65	)
Vested (with Common Units issued)		(323,752	)		(30.11	)
Outstanding June 24, 2017		652,325		$	22.21

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Pension Plans and Other Postretirement Benefits (Tables)

9 Months Ended

Jun. 24, 2017

Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]

Components of Net Periodic Benefit Costs

The following table provides the components of net periodic benefit costs:

	Pension Benefits
	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Interest cost	$	1,041		$	1,260		$	3,123		$	3,781
Expected return on plan assets		(537	)		(854	)		(1,611	)		(2,563	)
Amortization of net loss (gain)		1,301			1,304			3,901			3,913
Net periodic benefit cost	$	1,805		$	1,710		$	5,413		$	5,131

	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Interest cost	$	96		$	130		$	288		$	400
Amortization of prior service credits		—			(100	)		—			(300	)
Amortization of net loss (gain)		(98	)		(74	)		(292	)		(223	)
Net periodic benefit cost	$	(2	)	$	(44	)	$	(4	)	$	(123	)

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Amounts Reclassified Out of Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Jun. 24, 2017

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Reclassification out of accumulated other comprehensive (loss) income

The following table summarizes amounts reclassified out of accumulated other comprehensive (loss) income for the three and nine months ended June 24, 2017 and June 25, 2016:

	Three Months Ended						Nine Months Ended
	June 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Cash Flow Hedges
Balance, beginning of period	$	—		$	(659	)	$	(205	)	$	(1,311	)
Other comprehensive income before reclassifications:
Unrealized (losses) gains		—			(107	)		(10	)		(47	)
Reclassifications to earnings:
Realized losses (a)		—			252			215			844
Other comprehensive income		—			145			205			797
Balance, end of period	$	—		$	(514	)	$	—		$	(514	)
Pension Benefits
Balance, beginning of period	$	(48,791	)	$	(50,227	)	$	(51,391	)	$	(52,836	)
Reclassifications to earnings:
Amortization of net loss (b)		1,301			1,304			3,901			3,913
Other comprehensive income		1,301			1,304			3,901			3,913
Balance, end of period	$	(47,490	)	$	(48,923	)	$	(47,490	)	$	(48,923	)
Postretirement Benefits
Balance, beginning of period	$	5,570		$	4,915		$	5,764		$	5,264
Reclassifications to earnings:
Amortization of prior service credits (b)		—			(100	)		—			(300	)
Amortization of net gain (b)		(98	)		(74	)		(292	)		(223	)
Other comprehensive loss		(98	)		(174	)		(292	)		(523	)
Balance, end of period	$	5,472		$	4,741		$	5,472		$	4,741
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	(43,221	)	$	(45,971	)	$	(45,832	)	$	(48,883	)
Other comprehensive income before reclassifications		—			(107	)		(10	)		(47	)
Reclassifications to earnings		1,203			1,382			3,824			4,234
Other comprehensive income		1,203			1,275			3,814			4,187
Balance, end of period	$	(42,018	)	$	(44,696	)	$	(42,018	)	$	(44,696	)

(a) Reclassification of realized losses on cash flow hedges are recognized in interest expense.

(b) These amounts are included in the computation of net periodic benefit cost.  See Note 12, “Pension Plans and Other Postretirement Benefits.”

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Segment Information (Tables)

9 Months Ended

Jun. 24, 2017

Segment Reporting [Abstract]

Disclosure by reportable segment and reconciliation of total operating segment information

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 24,			June 25,			June 24,			June 25,
	2017			2016			2017			2016
Revenues:
Propane	$	188,406		$	172,322		$	843,519		$	752,013
Fuel oil and refined fuels		12,886			12,459			69,612			61,961
Natural gas and electricity		11,923			10,596			44,229			38,232
All other		9,680			9,722			33,420			32,890
Total revenues	$	222,895		$	205,099		$	990,780		$	885,096
Operating (loss) income:
Propane	$	11,323		$	14,182		$	201,332		$	199,042
Fuel oil and refined fuels		199			(854	)		9,875			7,585
Natural gas and electricity		2,806			1,969			11,461			8,665
All other		(5,747	)		(6,014	)		(16,139	)		(18,882	)
Corporate		(19,643	)		(20,063	)		(61,249	)		(64,633	)
Total operating (loss) income		(11,062	)		(10,780	)		145,280			131,777
Reconciliation to net (loss) income:
Loss on debt extinguishment		—			—			1,567			292
Interest expense, net		18,502			18,638			54,820			56,383
Provision for income taxes		152			180			308			423
Net (loss) income	$	(29,716	)	$	(29,598	)	$	88,585		$	74,679
Depreciation and amortization:
Propane	$	27,787		$	27,324		$	83,243		$	81,949
Fuel oil and refined fuels		625			673			1,923			2,055
Natural gas and electricity		—			—			—			3
All other		76			73			222			234
Corporate		3,337			4,218			10,368			12,835
Total depreciation and amortization	$	31,825		$	32,288		$	95,756		$	97,076

	As of
	June 24,		September24,
	2017		2016
Assets:
Propane	$	2,081,268	$	2,141,108
Fuel oil and refined fuels		51,591		53,266
Natural gas and electricity		12,592		13,415
All other		1,907		2,185
Corporate		43,942		72,325
Total assets	$	2,191,300	$	2,282,299

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Partnership Organization and Formation - Additional Information (Details) - shares	Jun. 24, 2017	Sep. 24, 2016
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items]
Common units outstanding (in units)	61,078,243	60,789,000
Ownership interest in Suburban Energy Finance Corp (in hundredths)	100.00%
General Partner [Member] | Common Unitholders [Member]
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items]
Common units outstanding (in units)	784

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Basis of Presentation - Additional Information (Details) $ in Thousands	9 Months Ended
	Jun. 24, 2017 USD ($) wk	Sep. 24, 2016 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Limited partner interest in the Operating Partnership (in hundredths)	100.00%
Minimum number of weeks in the fiscal year reporting calendar	52
Maximum number of weeks in the fiscal year reporting calendar	53
Minimum number of weeks in a fiscal quarter	13
Maximum number of weeks in a fiscal quarter	14
Deferred debt issuance costs | $	$ 19,996	$ 17,391
Senior Notes [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Deferred debt issuance costs | $	$ 15,986	$ 13,670	[1]

[1] Long-term borrowings as of September 24, 2016 reflect the retrospective impact from the adoption of new accounting guidance regarding the balance sheet classification of debt issuance costs (See Note 2).

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Financial Instruments and Risk Management - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 24, 2017	Sep. 24, 2016
Derivatives, Fair Value [Line Items]
Maximum maturity period of highly liquid investment considered as cash equivalents	3 months
Margin over basis rate (in hundredths)	1.00%
Cash collateral	$ 2,593	$ 206
Commodity Contract [Member]
Derivatives, Fair Value [Line Items]
Weighted average maturity of outstanding commodity-related derivatives	7 months	6 months

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Financial Instruments and Risk Management - Fair Value of the Partnership's Derivative Instruments and their Location in the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Derivatives, Fair Value [Line Items]
Fair value - assets	$ 6,709	$ 7,072
Fair value - liabilities	7,570	4,780
Commodity-Related Derivatives [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	6,709	6,842
Fair value - liabilities	7,570	4,345
Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	0	230
Fair value - liabilities	0	435
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	1,945	4,852
Fair value - liabilities	2,806	2,355
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	866	3,306
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	1,079	1,546
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value - liabilities	2,806	1,002
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value - liabilities	0	1,353
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value - liabilities	$ 0	$ 205

XML

Financial Instruments and Risk Management - Reconciliation of the Beginning and Ending Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016
Reconciliation of beginning and ending balances of assets measured at fair value on recurring basis using significant unobservable inputs [Rollforward]
Beginning balance of over-the-counter options	$ 809	$ 2,781
Beginning balance realized during the period	(589)	(2,546)
Contracts purchased during the period	0	762
Change in the fair value of outstanding contracts	(115)	(234)
Ending balance of over-the-counter options	105	763
Reconciliation of beginning and ending balances of liabilities measured at fair value on recurring basis using significant unobservable inputs [Rollforward]
Beginning balance of over-the-counter options	0	347
Beginning balance realized during the period	0	(275)
Contracts purchased during the period	0	0
Change in the fair value of outstanding contracts	0	(72)
Ending balance of over-the-counter options	$ 0	$ 0

XML

Financial Instruments and Risk Management - Effect of the Partnership's Derivative Instruments on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instruments [Member]
Derivative Instruments Gain Loss [Line Items]
Gains (Losses) Recognized in OCI (Effective Portion)	$ 0	$ (107)	$ (10)	$ (47)
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instruments [Member] | Interest Expense [Member]
Derivative Instruments Gain Loss [Line Items]
Gains (Losses) Reclassified from Accumulated OCI into Income	0	(252)	(215)	(844)
Commodity-Related Derivatives [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Cost of Products Sold [Member]
Derivative Instruments Gain Loss [Line Items]
Unrealized Gains (Losses) Recognized in Income	$ (655)	$ (56)	$ (2,708)	$ (2,005)

XML

Financial Instruments and Risk Management - Fair Value of Partnership's Recognized Derivative Assets and Liabilities on a Gross Basis and Amounts Offset on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Asset Derivatives [Abstracts]
Gross amounts	$ 6,709	$ 7,072
Effects of netting	(4,764)	(2,220)
Net amounts presented in the balance sheet	1,945	4,852
Liability Derivatives [Abstracts]
Gross amounts	7,570	4,780
Effects of netting	(4,764)	(2,220)
Net amounts presented in the balance sheet	2,806	2,560
Commodity-Related Derivatives [Member]
Asset Derivatives [Abstracts]
Gross amounts	6,709	6,842
Effects of netting	(4,764)	(1,990)
Net amounts presented in the balance sheet	1,945	4,852
Liability Derivatives [Abstracts]
Gross amounts	7,570	4,345
Effects of netting	(4,764)	(1,990)
Net amounts presented in the balance sheet	2,806	2,355
Interest Rate Swaps [Member]
Asset Derivatives [Abstracts]
Gross amounts	0	230
Effects of netting	0	(230)
Net amounts presented in the balance sheet	0	0
Liability Derivatives [Abstracts]
Gross amounts	0	435
Effects of netting	0	(230)
Net amounts presented in the balance sheet	$ 0	$ 205

XML

Financial Instruments and Risk Management - Fair Value of the Partnership's Senior Notes (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	$ 1,122,186	$ 1,148,519
7.375% Senior Notes due August 1, 2021 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	0	360,893
5.5% Senior Notes due June 1, 2024 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	522,811	534,188
5.75% Senior Notes due March 1, 2025 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	249,375	253,438
5.875% Senior Notes due March 1, 2027 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	$ 350,000	$ 0

XML

Financial Instruments and Risk Management - Fair Value of the Partnership's Senior Notes (Parenthetical) (Details)	9 Months Ended
	Jun. 24, 2017	Sep. 24, 2016
7.375% Senior Notes due August 1, 2021 [Member]
Bank Debt and Senior Notes [Abstract]
Stated interest rate (in hundredths)	7.375%	7.375%
Maturity date	Aug. 01, 2021
5.5% Senior Notes due June 1, 2024 [Member]
Bank Debt and Senior Notes [Abstract]
Stated interest rate (in hundredths)	5.50%	5.50%
Maturity date	Jun. 01, 2024
5.75% Senior Notes due March 1, 2025 [Member]
Bank Debt and Senior Notes [Abstract]
Stated interest rate (in hundredths)	5.75%	5.75%
Maturity date	Mar. 01, 2025
5.875% Senior Notes due March 1, 2027 [Member]
Bank Debt and Senior Notes [Abstract]
Stated interest rate (in hundredths)	5.875%	5.875%
Maturity date	Mar. 01, 2027

XML

Inventories - Inventories (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Inventory Net [Abstract]
Propane, fuel oil and refined fuels and natural gas	$ 40,642	$ 43,905
Appliances	1,170	1,447
Total inventory	$ 41,812	$ 45,352

XML

Goodwill and Other Intangible Assets - Additional Information (Details)	9 Months Ended
	Jun. 24, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Projection period for discounted cash flow analyses to estimate reporting unit fair value	10 years

XML

Goodwill and Other Intangible Assets - Carrying Values of Goodwill Assigned to Partnership's Operating Segments (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Goodwill [Line Items]
Goodwill	$ 1,101,097	$ 1,101,097
Accumulated adjustments	(6,462)	(6,462)
Goodwill, net	1,094,635	1,094,635
Propane [Member]
Goodwill [Line Items]
Goodwill	1,082,297	1,082,297
Accumulated adjustments	0	0
Goodwill, net	1,082,297	1,082,297
Fuel Oil and Refined Fuels [Member]
Goodwill [Line Items]
Goodwill	10,900	10,900
Accumulated adjustments	(6,462)	(6,462)
Goodwill, net	4,438	4,438
Natural Gas and Electricity [Member]
Goodwill [Line Items]
Goodwill	7,900	7,900
Accumulated adjustments	0	0
Goodwill, net	$ 7,900	$ 7,900

XML

Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	$ 529,145	$ 529,145
Accumulated amortization	(295,180)	(252,816)
Other intangible assets, net	233,965	276,329
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	492,656	492,656
Accumulated amortization	(265,879)	(225,634)
Non-compete Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	31,040	31,040
Accumulated amortization	(24,583)	(22,533)
Tradenames [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	3,482	3,482
Accumulated amortization	(3,482)	(3,482)
Other [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	1,967	1,967
Accumulated amortization	$ (1,236)	$ (1,167)

XML

Net Income Per Common Unit - Additional Information (Details) - shares	9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016
Earnings Per Share [Abstract]
Increase in weighted average units outstanding used to compute basic net income per Common Unit to reflect the potential dilutive effect of the unvested restricted units outstanding (in units)	183,752	179,864

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Long-Term Borrowings - Summary of Long-Term Borrowings (Details) - USD ($) $ in Thousands	Jun. 24, 2017	Sep. 24, 2016
Debt Instrument [Line Items]
Long-term borrowings, gross	$ 1,250,159	$ 1,224,502	[1]
Less: unamortized debt issuance costs	(19,996)	(17,391)
7.375% Senior Notes due August 1, 2021 [Member]
Debt Instrument [Line Items]
Long-term borrowings, gross	0	363,172	[1]
5.5% Senior Notes due June 1, 2024 [Member]
Debt Instrument [Line Items]
Long-term borrowings, gross	525,000	525,000	[1]
5.75% Senior Notes due March 1, 2025 [Member]
Debt Instrument [Line Items]
Long-term borrowings, gross	250,000	250,000	[1]
5.875% Senior Notes due March 1, 2027 [Member]
Debt Instrument [Line Items]
Long-term borrowings, gross	350,000	0	[1]
Revolving Credit Facility due March 3, 2021 [Member]
Debt Instrument [Line Items]
Long-term borrowings, gross	141,145	100,000	[1]
Senior Notes [Member]
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	$ (15,986)	$ (13,670)	[1]

[1] Long-term borrowings as of September 24, 2016 reflect the retrospective impact from the adoption of new accounting guidance regarding the balance sheet classification of debt issuance costs (See Note 2).

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Long-Term Borrowings - Summary of Long-Term Borrowings (Parenthetical) (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 24, 2017	Sep. 24, 2016
7.375% Senior Notes due August 1, 2021 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)	7.375%	7.375%
Maturity date	Aug. 01, 2021
Net unamortized premium	$ 0	$ 16,992
5.5% Senior Notes due June 1, 2024 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)	5.50%	5.50%
Maturity date	Jun. 01, 2024
5.75% Senior Notes due March 1, 2025 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)	5.75%	5.75%
Maturity date	Mar. 01, 2025
5.875% Senior Notes due March 1, 2027 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)	5.875%	5.875%
Maturity date	Mar. 01, 2027
Revolving Credit Facility due March 3, 2021 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 03, 2021

XML

Long-Term Borrowings - Additional Information (Details)				3 Months Ended									9 Months Ended
	May 01, 2017	Feb. 14, 2017 USD ($)	Mar. 03, 2016 USD ($)	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jun. 24, 2017 USD ($)	Jun. 25, 2016 USD ($)	Mar. 26, 2016 USD ($)	Jun. 24, 2017 USD ($)	Jun. 25, 2016 USD ($)	Sep. 24, 2016 USD ($)		Aug. 06, 2013 USD ($)	Aug. 02, 2013 USD ($)
Debt Instrument [Line Items]
Ownership interest in Suburban Energy Finance Corp (in hundredths)										100.00%			100.00%
Loss on debt extinguishment										$ 0	$ 0		$ 1,567,000	$ 292,000
Long-term borrowings										1,250,159,000			$ 1,250,159,000		$ 1,224,502,000	[1]
Consolidated interest coverage ratio, minimum													2.5
Total consolidated leverage ratio, maximum													5.5
Senior secured unconsolidated leverage ratio maximum													3.0
Margin over basis rate (in hundredths)													1.00%
Notional Amount										100,000,000			$ 100,000,000
Consolidated fixed charge coverage ratio, minimum													1.75
Long-term debt maturities, 2017										0			$ 0
Long-term debt maturities, 2018										0			0
Long-term debt maturities, 2019										0			0
Long-term debt maturities, 2020										0			0
Long-term debt maturities, 2021										141,145,000			141,145,000
Long-term debt maturities, 2021 and thereafter										1,125,000,000			1,125,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Standby letters of credit issued under the Revolving Credit Facility										$ 43,256,000			$ 43,256,000
Amended Credit Agreement Due 2021 [Member]
Debt Instrument [Line Items]
Weighted average interest rate (in hundredths)										3.60%			3.60%
Amended Credit Agreement Due 2021 [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
Margin over basis rate (in hundredths)													0.50%
Description of applicable interest rate on borrowings													Federal Funds Rate
Amended Credit Agreement Due 2021 [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Margin over basis rate (in hundredths)													1.00%
Description of applicable interest rate on borrowings													LIBOR
Amendment to Amended Credit Agreement Due 2021 [Member]
Debt Instrument [Line Items]
Total consolidated leverage ratio, maximum										5.95			5.5
Amendment to Amended Credit Agreement Due 2021 [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Total consolidated leverage ratio, maximum				5.5	5.75	5.95	5.95	5.95	5.95
Amendment to Amended Credit Agreement Due 2021 [Member] | Eurodollar Rate Loans [Member]
Debt Instrument [Line Items]
Margin over basis rate (in hundredths)	3.00%
Amendment to Amended Credit Agreement Due 2021 [Member] | Letter of Credit Fees [Member]
Debt Instrument [Line Items]
Margin over basis rate (in hundredths)	3.00%
Amendment to Amended Credit Agreement Due 2021 [Member] | Base Rate Loans [Member]
Debt Instrument [Line Items]
Margin over basis rate (in hundredths)	2.00%
Amendment to Amended Credit Agreement Due 2021 [Member] | Commitment Fee [Member]
Debt Instrument [Line Items]
Margin over basis rate (in hundredths)	0.50%
Amended Credit Agreement Due 2017 [Member]
Debt Instrument [Line Items]
Effective date													Jun. 25, 2013
Termination date													Jan. 05, 2017
Fixed interest rate (in hundredths)										1.63%			1.63%
7.375% Senior Notes due August 1, 2021 [Member]
Debt Instrument [Line Items]
Date public offering completed													Aug. 01, 2012
Aggregate principal amount										$ 503,443,000			$ 503,443,000
Stated interest rate (in hundredths)										7.375%			7.375%		7.375%
Maturity date													Aug. 01, 2021
Debt instrument repurchase amount																	$ 23,863,000	$ 133,400,000
Loss on debt extinguishment		$ 1,567,000
Redemption premium and related fees		15,078,000
Write-off unamortized debt origination costs		2,272,000
Write-off unamortized premium		$ (15,783,000)
Long-term borrowings										$ 0			$ 0		$ 363,172,000	[1]
5.5% Senior Notes due June 1, 2024 [Member]
Debt Instrument [Line Items]
Date public offering completed													May 27, 2014
Aggregate principal amount										$ 525,000,000			$ 525,000,000
Stated interest rate (in hundredths)										5.50%			5.50%		5.50%
Maturity date													Jun. 01, 2024
Percentage of principal amount at which debt was issued (in hundredths)										100.00%			100.00%
Percentage of the principal amount repurchase offer under change of control provision (in hundredths)										101.00%			101.00%
Repurchase of debt due to decline in rating after consummation of change of control, period													90 days
Long-term borrowings										$ 525,000,000			$ 525,000,000		$ 525,000,000	[1]
7.5% Senior Notes due October 1, 2018 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)										7.50%			7.50%
5.75% Senior Notes due March 1, 2025 [Member]
Debt Instrument [Line Items]
Date public offering completed													Feb. 25, 2015
Aggregate principal amount										$ 250,000,000			$ 250,000,000
Stated interest rate (in hundredths)										5.75%			5.75%		5.75%
Maturity date													Mar. 01, 2025
Percentage of principal amount at which debt was issued (in hundredths)										100.00%			100.00%
Percentage of the principal amount repurchase offer under change of control provision (in hundredths)										101.00%			101.00%
Repurchase of debt due to decline in rating after consummation of change of control, period													90 days
Long-term borrowings										$ 250,000,000			$ 250,000,000		$ 250,000,000	[1]
7.375% Senior Notes due 2020 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)										7.375%			7.375%
5.875% Senior Notes due March 1, 2027 [Member]
Debt Instrument [Line Items]
Date public offering completed													Feb. 14, 2017
Aggregate principal amount										$ 350,000,000			$ 350,000,000
Stated interest rate (in hundredths)										5.875%			5.875%		5.875%
Maturity date													Mar. 01, 2027
Percentage of principal amount at which debt was issued (in hundredths)										100.00%			100.00%
Percentage of the principal amount repurchase offer under change of control provision (in hundredths)										101.00%			101.00%
Repurchase of debt due to decline in rating after consummation of change of control, period													90 days
Long-term borrowings										$ 350,000,000			$ 350,000,000		$ 0	[1]
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term borrowings										$ 141,145,000			$ 141,145,000		$ 100,000,000
Revolving Credit Facility [Member] | Amended Credit Agreement Due 2021 [Member]
Debt Instrument [Line Items]
Write-off unamortized debt origination costs												$ 292,000
Credit Facility, maximum amount			$ 500,000,000
Revolving credit facility, term			5 years

[1] Long-term borrowings as of September 24, 2016 reflect the retrospective impact from the adoption of new accounting guidance regarding the balance sheet classification of debt issuance costs (See Note 2).

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Distributions of Available Cash - Additional Information (Details)	9 Months Ended
	Jun. 24, 2017 $ / shares
Distributions Made To Members Or Limited Partners [Abstract]
Distributions to its partners	45 days
Declaration date of quarterly distribution	Jul. 20, 2017
Distributions paid (in dollars per unit)	$ 0.8875
Common Unit distribution on an annualized basis (in dollars per unit)	$ 3.55
Distribution date of quarterly distribution	Aug. 08, 2017
Date of record of quarterly distribution	Aug. 01, 2017

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Unit-Based Compensation Arrangements - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
	Aug. 06, 2013	Jun. 24, 2017	Jun. 25, 2016	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016	Sep. 24, 2016
Distribution Equivalent Rights Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense		$ 205			$ 640
Distribution Equivalent Rights Plan, terms		On January 17, 2017, the Partnership adopted the Distribution Equivalent Rights Plan (the “DER Plan”), which gives the Compensation Committee of the Partnership’s Board of Supervisors discretion to award distribution equivalent rights (“DERs”) to executive officers of the Partnership. Once awarded, DERs entitle the grantee to a cash payment each time the Board of Supervisors declares a cash distribution on the Partnership’s Common Units, which cash payment will be equal to an amount calculated by multiplying the number of unvested restricted units which are held by the grantee on the record date of the distribution, by the amount of the declared distribution per Common Unit.
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total number of Common Units authorized for issuance (in units)		2,400,000			2,400,000
Restricted Unit Plans, terms of award					In accordance with an August 6, 2013 amendment to the Restricted Unit Plan, unless otherwise stipulated by the Compensation Committee of the Partnership’s Board of Supervisors on or before the grant date, all restricted unit awards granted after the date of the amendment will vest 33.33% on each of the first three anniversaries of the award grant date. Prior to the August 6, 2013 amendment, unless otherwise stipulated by the Compensation Committee of the Partnership’s Board of Supervisors on or before the grant date, restricted units awarded under the Restricted Unit Plan vest over time with 25% of the Common Units vesting at the end of each of the third and fourth anniversaries of the grant date and the remaining 50% of the Common Units vesting at the end of the fifth anniversary of the grant date. The Restricted Unit Plan participants are not eligible to receive quarterly distributions on, or vote, their respective restricted units until vested. Restricted units cannot be sold or transferred prior to vesting. The value of the restricted unit is established by the market price of the Common Unit on the date of grant, net of estimated future distributions during the vesting period. Restricted units are subject to forfeiture in certain circumstances as defined in the Restricted Unit Plan.
Number of restricted units awarded					323,715
Aggregate grant date fair value of restricted units awarded					$ 6,799
Unrecognized compensation cost		$ 4,325			$ 4,325
Weighted-average recognition period of compensation cost					1 year
Compensation expense		1,372	$ 1,671		$ 6,209	$ 7,062
Long-Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Long-Term Incentive Plan, terms of award					The LTIP is a non-qualified, unfunded, long-term incentive plan for officers and key employees that provides for payment, in the form of cash, of an award of equity-based compensation at the end of a three-year performance period.
Measurement period of average distribution coverage ratio	3 years
Compensation expense		550		$ 671	$ 2,026	$ 1,401
Liability included within accrued employment and benefit costs (or other liabilities, as applicable) related to estimated future payments under the LTIP		$ 0			$ 0		$ 2,026

XML

Unit-Based Compensation Arrangements - Summary of Activity for the Restricted Units Plans (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Jun. 24, 2017 $ / shares shares
Restricted Units [Rollforward]
Outstanding, beginning of period (in units) | shares	654,120
Awarded (in units) | shares	323,715
Forfeited (in units) | shares	(1,758)
Vested (with Common Units issued) (in units) | shares	(323,752)
Outstanding, end of period (in units) | shares	652,325
Weighted Average Grant Date Fair Value Per Unit [Abstract]
Outstanding, beginning of period (in dollars per unit) | $ / shares	$ 26.74
Awarded (in dollars per unit) | $ / shares	21.00
Forfeited (in dollars per unit) | $ / shares	(30.65)
Vested (with Common Units issued) (in dollars per unit) | $ / shares	(30.11)
Outstanding, end of period (in dollars per unit) | $ / shares	$ 22.21

XML

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2015	Jun. 24, 2017	Sep. 24, 2016
Commitments And Contingencies Disclosure [Abstract]
Accrued insurance liabilities		$ 66,190	$ 59,676
Portion of the estimated liability that exceeds insurance deductibles		$ 18,827	$ 15,524
Product liability matter settled, amount	$ 3,000

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Guarantees - Additional Information (Details)	9 Months Ended
	Jun. 24, 2017 USD ($)
Guarantees [Abstract]
Transportation equipment remaining lease periods	2024
Maximum potential amount of aggregate future payments Partnership could be required to make	$ 14,675,000

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Pension Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 96	$ 130	$ 288	$ 400
Amortization of prior service credits	0	(100)	0	(300)
Amortization of net loss (gain)	(98)	(74)	(292)	(223)
Net periodic benefit cost	(2)	(44)	(4)	(123)
Pension Benefits [Member] | United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1,041	1,260	3,123	3,781
Expected return on plan assets	(537)	(854)	(1,611)	(2,563)
Amortization of net loss (gain)	1,301	1,304	3,901	3,913
Net periodic benefit cost	$ 1,805	$ 1,710	$ 5,413	$ 5,131

XML

Pension Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Sep. 24, 2016
Components of net periodic benefit costs included in operating expenses [Abstract]
Contribution to defined pension benefit plan	$ 7,542	$ 0
Estimated obligation due to withdrawal multi employer pension plans	22,960		$ 24,205
Defined Benefit Pension Plan [Member]
Components of net periodic benefit costs included in operating expenses [Abstract]
Defined benefit plan expected contribution to be paid for fiscal year	9,527
Contribution to defined pension benefit plan	7,542
Post-Retirement Benefits [Member]
Components of net periodic benefit costs included in operating expenses [Abstract]
Defined benefit plan expected contribution to be paid for fiscal year	922
Employer contribution for postretirement health care and life insurance	$ 899

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Amounts Reclassified Out of Accumulated Other Comprehensive Income - Reclassification out of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		$ (43,221)	$ (45,971)	$ (45,832)	$ (48,883)
Other comprehensive income before reclassifications		0	(107)	(10)	(47)
Reclassifications to earnings		1,203	1,382	3,824	4,234
Other comprehensive income		1,203	1,275	3,814	4,187
Balance ending		(42,018)	(44,696)	(42,018)	(44,696)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		0	(659)	(205)	(1,311)
Other comprehensive income before reclassifications		0	(107)	(10)	(47)
Reclassifications to earnings	[1]	0	252	215	844
Other comprehensive income		0	145	205	797
Balance ending		0	(514)	0	(514)
Pension Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		(48,791)	(50,227)	(51,391)	(52,836)
Other comprehensive income		1,301	1,304	3,901	3,913
Balance ending		(47,490)	(48,923)	(47,490)	(48,923)
Amortization of Net Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications to earnings	[2]	1,301	1,304	3,901	3,913
Post-Retirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		5,570	4,915	5,764	5,264
Other comprehensive income		(98)	(174)	(292)	(523)
Balance ending		5,472	4,741	5,472	4,741
Amortization of Prior Service Credits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications to earnings	[2]	0	(100)	0	(300)
Amortization of Net (Gain) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications to earnings	[2]	$ (98)	$ (74)	$ (292)	$ (223)

[1] Reclassification of realized losses on cash flow hedges are recognized in interest expense.

[2] These amounts are included in the computation of net periodic benefit cost. See Note 12, “Pension Plans and Other Postretirement Benefits.”

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Segment Information - Additional Information (Details)	9 Months Ended
	Jun. 24, 2017 Segment
Segment Reporting [Abstract]
Number of operating segments	4
Number of reportable segments	3

XML

Segment Information - Disclosure by Reportable Segment and Reconciliation of Total Operating Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016	Sep. 24, 2016
Revenues [Abstract]
Total revenues	$ 222,895	$ 205,099	$ 990,780	$ 885,096
Operating (loss) income:
Total operating (loss) income	(11,062)	(10,780)	145,280	131,777
Reconciliation to net (loss) income:
Loss on debt extinguishment	0	0	1,567	292
Interest expense, net	18,502	18,638	54,820	56,383
Provision for income taxes	152	180	308	423
Net (loss) income	(29,716)	(29,598)	88,585	74,679
Depreciation and amortization [Abstract]
Total depreciation and amortization	31,825	32,288	95,756	97,076
Assets [Abstract]
Total assets	2,191,300		2,191,300		$ 2,282,299
Operating/Reportable Segments [Member] | Propane [Member]
Revenues [Abstract]
Total revenues	188,406	172,322	843,519	752,013
Operating (loss) income:
Total operating (loss) income	11,323	14,182	201,332	199,042
Depreciation and amortization [Abstract]
Total depreciation and amortization	27,787	27,324	83,243	81,949
Assets [Abstract]
Total assets	2,081,268		2,081,268		2,141,108
Operating/Reportable Segments [Member] | Fuel Oil and Refined Fuels [Member]
Revenues [Abstract]
Total revenues	12,886	12,459	69,612	61,961
Operating (loss) income:
Total operating (loss) income	199	(854)	9,875	7,585
Depreciation and amortization [Abstract]
Total depreciation and amortization	625	673	1,923	2,055
Assets [Abstract]
Total assets	51,591		51,591		53,266
Operating/Reportable Segments [Member] | Natural Gas and Electricity [Member]
Revenues [Abstract]
Total revenues	11,923	10,596	44,229	38,232
Operating (loss) income:
Total operating (loss) income	2,806	1,969	11,461	8,665
Depreciation and amortization [Abstract]
Total depreciation and amortization	0	0	0	3
Assets [Abstract]
Total assets	12,592		12,592		13,415
Operating/Reportable Segments [Member] | All Other [Member]
Revenues [Abstract]
Total revenues	9,680	9,722	33,420	32,890
Operating (loss) income:
Total operating (loss) income	(5,747)	(6,014)	(16,139)	(18,882)
Depreciation and amortization [Abstract]
Total depreciation and amortization	76	73	222	234
Assets [Abstract]
Total assets	1,907		1,907		2,185
Operating/Reportable Segments [Member] | Corporate [Member]
Operating (loss) income:
Total operating (loss) income	(19,643)	(20,063)	(61,249)	(64,633)
Depreciation and amortization [Abstract]
Total depreciation and amortization	3,337	$ 4,218	10,368	$ 12,835
Assets [Abstract]
Total assets	$ 43,942		$ 43,942		$ 72,325