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 December 30, 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 February 5, 2018, there were 61,393,674 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	1
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	1
	Condensed Consolidated Balance Sheets as of December 30, 2017 and September 30, 2017	1
	Condensed Consolidated Statements of Operations for the three months ended December 30, 2017 and December 24, 2016	2
	Condensed Consolidated Statements of Comprehensive Income for the three months ended December 30, 2017 and December 24, 2016	3
	Condensed Consolidated Statements of Cash Flows for the three months ended December 30, 2017 and December 24, 2016	4
	Condensed Consolidated Statement of Partners’ Capital for the three months ended December 30, 2017	5
	Notes to Condensed Consolidated Financial Statements	6
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	27
ITEM 4.	CONTROLS AND PROCEDURES	28
	PART II. OTHER INFORMATION	30
ITEM 1.	LEGAL PROCEEDINGS	30
ITEM 1A.	RISK FACTORS	30
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	30
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	30
ITEM 4.	MINE SAFETY DISCLOSURES	30
ITEM 5.	OTHER INFORMATION	30
ITEM 6.	EXHIBITS	31
SignaturEs		32

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 30, 2017.  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)

	December 30,			September 30,
	2017			2017
ASSETS
Current assets:
Cash and cash equivalents	$	5,907		$	2,789
Accounts receivable, less allowance for doubtful accounts of $3,744 and    $3,044, respectively		138,788			65,683
Inventories		61,761			53,220
Other current assets		26,253			17,801
Total current assets		232,709			139,493
Property, plant and equipment, net		677,562			692,627
Goodwill		1,093,470			1,094,635
Other intangible assets, net		207,900			219,876
Other assets		24,731			24,652
Total assets	$	2,236,372		$	2,171,283
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Accounts payable	$	73,498		$	38,652
Accrued employment and benefit costs		21,625			27,402
Customer deposits and advances		79,098			97,023
Accrued interest		16,766			13,682
Other current liabilities		31,657			33,607
Total current liabilities		222,644			210,366
Long-term borrowings		1,319,969			1,272,164
Accrued insurance		55,756			54,921
Other liabilities		81,956			80,850
Total liabilities		1,680,325			1,618,301
Commitments and contingencies
Partners’ capital:
Common Unitholders (61,389 and 61,105 units issued and outstanding at    December 30, 2017 and September 30, 2017, respectively)		584,102			581,794
Accumulated other comprehensive loss		(28,055	)		(28,812	)
Total partners’ capital		556,047			552,982
Total liabilities and partners’ capital	$	2,236,372		$	2,171,283

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
	December 30,			December 24,
	2017			2016
Revenues
Propane	$	322,130		$	269,459
Fuel oil and refined fuels		25,315			22,096
Natural gas and electricity		13,147			13,067
All other		12,685			12,685
		373,277			317,307
Costs and expenses
Cost of products sold		165,189			118,165
Operating		99,611			99,349
General and administrative		16,775			15,047
Depreciation and amortization		31,131			31,261
		312,706			263,822
Loss on sale of business		4,823			—
Operating income		55,748			53,485
Interest expense, net		19,514			18,831
Income before (benefit from) provision for income taxes		36,234			34,654
(Benefit from) provision for income taxes		(934	)		165
Net income	$	37,168		$	34,489
Net income per Common Unit - basic	$	0.61		$	0.57
Weighted average number of Common Units outstanding - basic		61,333			61,042
Net income per Common Unit - diluted	$	0.60		$	0.56
Weighted average number of Common Units outstanding - diluted		61,525			61,232

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 COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	Three Months Ended
	December 30,		December 24,
	2017		2016
Net income	$	37,168	$	34,489
Other comprehensive income:
Net unrealized (losses) on cash flow hedges		—		(5	)
Reclassification of realized losses on cash flow hedges    into earnings		—		200
Amortization of net actuarial losses and prior service    credits into earnings		757		1,203
Other comprehensive income		757		1,398
Total comprehensive income	$	37,925	$	35,887

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

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SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	December 30,			December 24,
	2017			2016
Cash flows from operating activities:
Net income	$	37,168		$	34,489
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		31,131			31,261
Loss on sale of business		4,823			—
Other, net		2,432			2,541
Changes in assets and liabilities:
Accounts receivable		(73,005	)		(55,039	)
Inventories		(8,511	)		(8,451	)
Other current and noncurrent assets		(7,779	)		(7,335	)
Accounts payable		36,316			36,213
Accrued employment and benefit costs		(5,776	)		4,453
Customer deposits and advances		(17,925	)		(13,820	)
Contribution to defined benefit pension plan		—			(1,396	)
Other current and noncurrent liabilities		2,832			323
Net cash provided by operating activities		1,706			23,239
Cash flows from investing activities:
Capital expenditures		(8,499	)		(6,828	)
Acquisition of business		(4,051	)		—
Proceeds from sale of business		2,800			—
Proceeds from sale of property, plant and equipment		1,372			2,098
Net cash (used in) investing activities		(8,378	)		(4,730	)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility		113,800			57,500
Repayments of borrowings under revolving credit facility		(66,500	)		(54,100	)
Partnership distributions		(36,663	)		(53,952	)
Other, net		(847	)		(736	)
Net cash provided by (used in) financing activities		9,790			(51,288	)
Net increase (decrease) in cash and cash equivalents		3,118			(32,779	)
Cash and cash equivalents at beginning of period		2,789			37,341
Cash and cash equivalents at end of period	$	5,907		$	4,562

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

4

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 30, 2017		61,105	$	581,794		$	(28,812	)	$	552,982
Net income				37,168						37,168
Other comprehensive income							757			757
Partnership distributions				(36,663	)					(36,663	)
Common Units issued under Restricted Unit Plans		284
Compensation cost recognized under Restricted Unit Plans, net of    forfeitures				1,803						1,803
Balance at December 30, 2017		61,389	$	584,102		$	(28,055	)	$	556,047

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

5

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 61,389,265 Common Units outstanding at December 30, 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, (the “Partnership Agreement”) as amended.  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 U.S. 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 30, 2017.  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 was the case for fiscal 2017, the corresponding fourth quarter is fourteen weeks in duration.

6

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 March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”).  This update provides guidance on the capitalization, presentation and disclosure of net benefit costs.  ASU 2017-07 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 and will be applied retrospectively upon adoption.  The Partnership is currently evaluating the impact that the standard will have on the Partnership’s consolidated statements of operations.

In January 2017, the FASB issued ASU 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 6, “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.

7

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”).  This updateaddresses 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 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 2018, the Partnership adopted new accounting guidance regarding stock-based compensation under ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”).  Cash payments made to the taxing authorities on employees’ behalf for withheld shares are now presented as financing activities on the condensed consolidated statement of cash flows, rather than operating activities.  The amounts paid to federal and state taxing authorities were $847 and $736 for the three months ended December 30, 2017 and December 24, 2016, respectively.

3. Acquisition and Disposition of Businesses

On November 7, 2017, the Operating Partnership acquired the propane assets and operations of a propane retailer headquartered in California for $4,871, including $750 for non-compete consideration, plus working capital acquired.  As of December 30, 2017, $4,051 was paid and the remainder of the purchase price will be funded in accordance with the terms of the asset purchase and non-compete agreements.  The acquisition was consummated pursuant to the Partnership’s strategic growth initiatives.  The purchase price allocation and results of operations the acquired business were not material to the Partnership’s condensed consolidated financial position and statement of operations.

On December 8, 2017, the Operating Partnership sold certain assets and operations in a non-strategic market of its propane segment for $2,800, plus working capital consideration, resulting in a loss of $4,823 that was recognized during the first quarter of fiscal 2018, principally for the allocated goodwill and other identifiable intangible assets associated with this business.  The corresponding net assets and results of operations were not material to the Partnership’s condensed consolidated results of operations, financial position and cash flows.

4. 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.

8

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 derivative instruments 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 manages part of its variable interest rate risk by entering into interest rate swap agreements. 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.

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The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of December 30, 2017 and September 30, 2017, respectively:

	As of December 30, 2017			As of September 30, 2017
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	10,738	Other current assets	$	11,164
	Other assets		—	Other assets		771
		$	10,738		$	11,935
Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current liabilities	$	2,342	Other current liabilities	$	1,978
	Other liabilities		274	Other liabilities		432
		$	2,616		$	2,410

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)
	Three Months Ended						Three Months Ended
	December 30, 2017						December 24, 2016
	Assets			Liabilities			Assets		Liabilities
Beginning balance of over-the-counter options	$	4,108		$	737		$	809	$	—
Beginning balance realized during the period		(313	)		—			—		—
Contracts purchased during the period		—			—			48		—
Change in the fair value of outstanding contracts		122			(305	)		332		—
Ending balance of over-the-counter options	$	3,917		$	432		$	1,189	$	—

As of December 30, 2017 and September 30, 2017, the Partnership’s outstanding commodity-related derivatives had a weighted average maturity of approximately four and five 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 months ended December 30, 2017 and December 24, 2016 are as follows:

Three Months Ended December 30, 2017

Three Months Ended December 24, 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

$

—

$

(5

)

Interest expense

$

(200

)

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

$

(1,531

)

Cost of products sold

$

459

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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 December 30, 2017							As of September 30, 2017
						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	$	12,435	$	(1,697	)	$	10,738	$	16,378	$	(4,443	)	$	11,935
Liability Derivatives
Commodity-related derivatives	$	4,313	$	(1,697	)	$	2,616	$	6,853	$	(4,443	)	$	2,410

The Partnership had no posted cash collateral as of December 30, 2017 and September 30, 2017 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 8) 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 8) of the Partnership are as follows:

	As of
	December 30,		September 30,
	2017		2017
5.5% senior notes due June 1, 2024	$	522,375	$	527,888
5.75% senior notes due March 1, 2025		246,875		248,750
5.875% senior notes due March 1, 2027		343,980		349,125
	$	1,113,230	$	1,125,763

5. 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
	December 30,		September 30,
	2017		2017
Propane, fuel oil and refined fuels and natural gas	$	60,226	$	51,844
Appliances		1,535		1,376
	$	61,761	$	53,220

6. 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, an entity 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 an entity 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 30, 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
Fiscal 2018 Activity
Goodwill disposed (2)		(1,165	)		—			—		(1,165	)
Balance as of December 30, 2017
Goodwill	$	1,081,132		$	10,900		$	7,900	$	1,099,932
Accumulated adjustments		—			(6,462	)		—		(6,462	)
	$	1,081,132		$	4,438		$	7,900	$	1,093,470

Other intangible assets consist of the following:

	As of
	December 30,			September 30,
	2017			2017
Customer relationships (1) (2)	$	491,461		$	492,656
Non-compete agreements (1)		31,790			31,040
Other		1,967			1,967
		525,218			525,663
Less: accumulated amortization
Customer relationships		(290,131	)		(279,287	)
Non-compete agreements		(25,906	)		(25,242	)
Other		(1,281	)		(1,258	)
		(317,318	)		(305,787	)
	$	207,900		$	219,876

(1) Reflects the impact from the acquisition (Note 3).

(2) Reflects the impact from the disposition of certain assets and operations in a non-strategic market of the propane

segment (Note 3).

7. 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 Plan, 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 Plan.  In computing diluted net income per Common Unit, weighted average units outstanding used to compute basic net income per Common Unit were increased by 191,893 and 190,259 units for the three months ended December 30, 2017 and December 24, 2016, respectively, to reflect the potential dilutive effect of the unvested restricted units outstanding using the treasury stock method.  

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8. Long-Term Borrowings

Long-term borrowings consist of the following:

	As of
	December 30,			September 30,
	2017			2017
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			350,000
Revolving Credit Facility, due March 3, 2021		209,945			162,645
Subtotal		1,334,945			1,287,645
Less: unamortized debt issuance costs		(14,976	)		(15,481	)
	$	1,319,969		$	1,272,164

Senior Notes

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 previously outstanding 7.375% senior notes due in 2021.

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 $209,945 and $162,645 was outstanding as of December 30, 2017 and September 30, 2017, 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.

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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 5.95 to 1.0 for each fiscal quarter ending in 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,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.

       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 December 30, 2017, the interest rate for borrowings under the Revolving Credit Facility was approximately 3.8%.  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 December 30, 2017, the Partnership had standby letters of credit issued under the Revolving Credit Facility of $45,626 which expire periodically through November 1, 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 December 30, 2017.

The aggregate amounts of long-term debt maturities subsequent to December 30, 2017 are as follows: fiscal 2018: $-0-; fiscal 2019: $-0-; fiscal 2020: $-0-; fiscal 2021: $209,945; fiscal 2022: $-0-; and thereafter: $1,125,000.

9. 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 January 25, 2018, the Partnership announced a quarterly distribution of $0.60 per Common Unit, or $2.40 per Common Unit on an annualized basis, in respect of the first quarter of fiscal 2018, payable on February 13, 2018 to holders of record on February 6, 2018.

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10. 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 December 30, 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 issued 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 three months ended December 30, 2017, the Partnership awarded 424,431 restricted units under the Restricted Unit Plan at an aggregate grant date fair value of $8,285.  The following is a summary of activity for the Restricted Unit Plan for the three months ended December 30, 2017:

				WeightedAverage
	Restricted			Grant Date Fair
	Units			Value Per Unit
Outstanding September 30, 2017		621,045		$	22.10
Awarded		424,431			19.52
Forfeited		(9,226	)		(19.78	)
Vested (with Common Units issued)		(319,109	)		(24.48	)
Outstanding December 30, 2017		717,141		$	19.54

As of December 30, 2017, unrecognized compensation cost related to unvested restricted units awarded under the Restricted Unit Plan amounted to $8,627.  Compensation cost associated with unvested awards is expected to be recognized over a weighted-average period of 1.1 years.  Compensation expense for the Restricted Unit Plan, net of forfeitures, for the three months ended December 30, 2017 and December 24, 2016 was $2,649 and $2,875, 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 for the three months ended December 30, 2017 and December 24, 2016 was $207 and $-0-, 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.

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As a result of the quarterly remeasurement of the liability for awards under the LTIP, compensation expense for the three months ended December 30, 2017 and December 24, 2016 reflected expense of $1,632, and income of $986, respectively. As of December 30, 2017 and September 30, 2017, the Partnership had a liability included within accrued employment and benefit costs (or other liabilities, as applicable) of $3,268 and $1,637, respectively, related to estimated future payments under the LTIP.

11. 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 December 30, 2017 and September 30, 2017, the Partnership had accrued insurance liabilities of $70,536 and $68,581, 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 prepaid expenses and other current assets, as applicable) related to the amount of the liability expected to be covered by insurance which amounted to $18,626  as of December 30, 2017 and September 30, 2017.

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. 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.

12. 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 $16,816 as of December 30, 2017.  The fair value of residual value guarantees for outstanding operating leases was de minimis as of December 30, 2017 and September 30, 2017.

13. Pension Plans and Other Postretirement Benefits

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

	Pension Benefits
	Three Months Ended
	December 30,			December 24,
	2017			2016
Interest cost	$	944		$	1,041
Expected return on plan assets		(474	)		(537	)
Amortization of net loss		921			1,300
Net periodic benefit cost	$	1,391		$	1,804

	Postretirement Benefits
	Three Months Ended
	December 30,			December 24,
	2017			2016
Interest cost	$	69		$	96
Amortization of prior service credits		(124	)		—
Amortization of net (gain)		(164	)		(97	)
Net periodic benefit cost	$	(219	)	$	(1	)

The Partnership expects to contribute approximately $10,290 to the defined benefit pension plan during fiscal 2018, of which $-0- was contributed during the three months ended December 30, 2017. The projected annual contribution requirements related to the Partnership’s postretirement health care and life insurance benefit plan for fiscal 2018 is $1,243, of which $258 was contributed during the three months ended December 30, 2017.

16

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 December 30, 2017 and September 30, 2017, the Partnership’s estimated obligation to these MEPPs was $23,389 and $23,665, respectively, as a result of its voluntary full withdrawal from certain MEPPs.

14. Amounts Reclassified Out of Accumulated Other Comprehensive Income

The following table summarizes amounts reclassified out of accumulated other comprehensive (loss) income for the three months ended December 30, 2017 and December 24, 2016:

	Three Months Ended
	December 30,			December 24,
	2017			2016
Cash Flow Hedges
Balance, beginning of period	$	—		$	(205	)
Other comprehensive income before reclassifications:
Unrealized (losses)		—			(5	)
Reclassifications to earnings:
Realized losses (a)		—			200
Other comprehensive income		—			195
Balance, end of period	$	—		$	(10	)
Pension Benefits
Balance, beginning of period	$	(37,311	)	$	(51,391	)
Reclassifications to earnings:
Amortization of net loss (b)		921			1,300
Other comprehensive income		921			1,300
Balance, end of period	$	(36,390	)	$	(50,091	)
Postretirement Benefits
Balance, beginning of period	$	8,499		$	5,764
Reclassifications to earnings:
Amortization of net gain (b)		(164	)		(97	)
Other comprehensive loss		(164	)		(97	)
Balance, end of period	$	8,335		$	5,667
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	(28,812	)	$	(45,832	)
Other comprehensive income before reclassifications		—			(5	)
Reclassifications to earnings		757			1,403
Other comprehensive income		757			1,398
Balance, end of period	$	(28,055	)	$	(44,434	)

(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 13, “Pension Plans and Other Postretirement Benefits.”

15. 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.

17

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 (with the exception of the AMT credit carryforward; see below) 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.

On December 22, 2017, the Tax Cuts and Jobs Act (“2017 Act”) was signed into law, which enacted significant changes to U.S. tax and related laws.  Some of the provisions of the 2017 Act that could affect the Partnership, the Operating Partnership and their subsidiaries include, but are not limited to, a reduction of the federal corporate income tax rate from 35% to 21%, limitations on the deductibility of interest expense, restrictions on the use of net operating loss carryforwards arising in taxable years beginning after December 31, 2017 and full expensing for certain qualified property.

The 2017 Act made Alternative Minimum Tax (“AMT”) credit carryforwards fully refundable without regard to future taxable income. Accordingly, the Partnership concluded that the existing valuation allowance on the AMT credit carryforwards of the Corporate Entities should be released as part of accounting for tax reform. The reversal of the valuation allowance resulted in a $1,086 discrete deferred tax benefit being recorded during the first quarter of fiscal 2018.  The Partnership remeasured all other federal net deferred tax assets of the Corporate Entities using the new 21% federal income tax rate and correspondingly adjusted the full valuation allowance.  The blended corporate tax federal rate requirements of Internal Revenue Code Section 15 do not apply because the Corporate Entities are calendar-year tax filers.

The Partnership will continue to analyze the 2017 Act to determine the full effects of the new law on its consolidated financial statements.

16. Segment Information

The Partnership manages and evaluates its operations in four operating segments, three of which are reportable segments: Propane, Fuel Oil and Refined Fuels, and Natural Gas and Electricity.  The chief operating decision maker evaluates performance of the operating segments using a number of performance measures, including gross margins and income before interest expense and provision for income taxes (operating profit).  Costs excluded from these profit measures are captured in Corporate and include corporate overhead expenses not allocated to the operating segments.  Unallocated corporate overhead expenses include all costs of back office support functions that are reported as general and administrative expenses within the condensed consolidated statements of operations.  In addition, certain costs associated with field operations support that are reported in operating expenses within the condensed consolidated statements of operations, including purchasing, training and safety, are not allocated to the individual operating segments.  Thus, operating profit for each operating segment includes only the costs that are directly attributable to the operations of the individual segment. The accounting policies of the operating segments are otherwise the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017.

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.

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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
	December 30,			December 24,
	2017			2016
Revenues:
Propane	$	322,130		$	269,459
Fuel oil and refined fuels		25,315			22,096
Natural gas and electricity		13,147			13,067
All other		12,685			12,685
Total revenues	$	373,277		$	317,307
Operating income (loss):
Propane (1)	$	74,551		$	74,663
Fuel oil and refined fuels		3,824			2,848
Natural gas and electricity		3,485			3,120
All other		(5,233	)		(5,206	)
Corporate		(20,879	)		(21,940	)
Total operating income		55,748			53,485
Reconciliation to net income:
Interest expense, net		19,514			18,831
(Benefit from) provision for income taxes		(934	)		165
Net income	$	37,168		$	34,489
Depreciation and amortization:
Propane	$	27,781		$	27,384
Fuel oil and refined fuels		579			631
Natural gas and electricity		—			—
All other		50			70
Corporate		2,721			3,176
Total depreciation and amortization	$	31,131		$	31,261

	As of
	December 30,		September 30,
	2017		2017
Assets:
Propane	$	2,110,715	$	2,066,997
Fuel oil and refined fuels		54,943		49,863
Natural gas and electricity		15,816		12,455
All other		3,753		2,147
Corporate		51,145		39,821
Total assets	$	2,236,372	$	2,171,283

(1) Includes the loss on sale of business of $4,823 for the three months ended December 30, 2017 (see Note 3).

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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 months ended December 30, 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 30, 2017.

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 30, 2017.

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 30, 2017.

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

Net income for the first quarter of fiscal 2018 was $37.2 million, or $0.61 per Common Unit, compared to net income of $34.5 million, or $0.57 per Common Unit, in the prior year first quarter.  

Net income and EBITDA for the first quarter of fiscal 2018 included a $4.8 million loss from the sale of certain assets and operations in a non-strategic market of the propane segment.  Excluding the effect of the foregoing item and unrealized (non-cash) mark-to-market adjustments on derivative instruments in both years, Adjusted EBITDA (as defined and reconciled below) increased $8.9 million, or 10.6%, to $93.2 million for the first quarter of fiscal 2018, compared to $84.3 million in the prior year first quarter.

Retail propane gallons sold in the first quarter of fiscal 2018 of 125.0 million gallons increased 5.4% compared to the prior year first quarter.  Sales of fuel oil and other refined fuels of 9.1 million gallons in the first quarter of fiscal 2018 increased 1.2% compared to the prior year first quarter. According to the National Oceanic and Atmospheric Administration, average temperatures (as measured by heating degree days) across all of our service territories for the first quarter of fiscal 2018 were 8% warmer than normal, yet 6% cooler than the prior year first quarter.  

Revenues in the first quarter of fiscal 2018 of $373.3 million increased $56.0 million, or 17.6%, compared to the prior year first quarter, primarily due to higher volumes sold and higher average retail selling prices associated with higher average wholesale costs. Average posted propane prices (basis Mont Belvieu, Texas) for the first quarter of fiscal 2018 were 63.7% higher than the prior year first quarter. Cost of products sold for the first quarter of fiscal 2018 of $165.2 million increased $47.0 million, or 39.8%, compared to $118.2 million in the prior year first quarter, primarily due to higher volumes sold and higher wholesale costs. Cost of products sold for the first quarter of fiscal 2018 included a $1.5 million unrealized (non-cash) loss attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $0.5 million unrealized (non-cash) gain in the prior year first quarter.  Excluding these unrealized gains and losses, propane unit margins for the first quarter of fiscal 2018 were flat compared to the prior year first quarter.    

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Combined operating and general and administrative expenses of $116.4 million for the first quarter of fiscal 2018 increased $2.0 million, or 1.7%, compared to the prior year first quarter, primarily due to higher variable operating costs attributable to an increase in operational activities, higher variable compensation expense associated with higher earnings and an increase in general insurance expense.    

Depreciation and amortization expense of $31.1 million was essentially flat compared to the prior year first quarter. Net interest expense of $19.5 million increased marginally compared to the prior year first quarter.

During the first quarter of fiscal 2018, we funded a portion of our cash needs, including working capital requirements, with $47.3 million of incremental net borrowings under our Revolving Credit Facility.  Working capital typically increases during the fiscal first quarter due to the seasonal nature of the retail propane and fuel oil distribution businesses.  Our working capital requirements during the first quarter of fiscal 2018 increased approximately $72.0 million compared to the prior year first quarter, primarily due to an increase in accounts receivable stemming from the impact of higher wholesale costs on average selling prices and higher volumes sold.  Our working capital requirements typically peak towards the end of the heating season after which, accounts receivable becomes a significant source of cash from operating activities.  Despite the incremental net borrowings, our Consolidated Leverage Ratio (as defined under the Amended Credit Agreement) as of December 30, 2017 was 5.15x which was flat compared to the end of fiscal 2017 due to the year-over-year increase in Adjusted EBITDA for the fiscal first quarter.      

As previously announced on January 25, 2018, the Partnership’s Board of Supervisors had declared a quarterly distribution of $0.60 per Common Unit for the three months ended December 30, 2017. On an annualized basis, this distribution rate equates to $2.40 per Common Unit. The distribution is payable on February 13, 2018 to Common Unitholders of record as of February 6, 2018.

Our anticipated cash requirements for the remainder of fiscal 2018 include: (i) maintenance and growth capital expenditures of approximately $26.5 million; (ii) interest and income tax payments of approximately $57.7 million; and (iii) cash distributions of approximately $110.5 million to our Common Unitholders based on the current quarterly distribution rate of $0.60 per Common Unit. Based on our liquidity position, which includes cash on hand,  availability of funds under our Revolving Credit Facility and expected cash flow from operating activities, we expect to have sufficient funds to meet our current and future obligations.

Three Months Ended December 30, 2017 Compared to Three Months Ended December 24, 2016

Revenues

(Dollars and gallons in thousands)	Three Months Ended
	December 30,		December 24,				Percent
	2017		2016		Increase		Increase
Revenues
Propane	$	322,130	$	269,459	$	52,671		19.5	%
Fuel oil and refined fuels		25,315		22,096		3,219		14.6	%
Natural gas and electricity		13,147		13,067		80		0.6	%
All other		12,685		12,685		—		0.0	%
Total revenues	$	373,277	$	317,307	$	55,970		17.6	%
Retail gallons sold
Propane		124,986		118,601		6,385		5.4	%
Fuel oil and refined fuels		9,122		9,012		110		1.2	%

Total revenues of $373.3 million increased $56.0 million, or 17.6%, compared to the prior year first quarter primarily due to higher average selling prices and higher volumes sold.  As discussed above, average temperatures across all of our service territories during the first quarter of fiscal 2018 were 8% warmer than normal and 6% cooler than the prior year first quarter.  The cooler temperatures compared to the prior year were experienced throughout the majority of our service territories which contributed to an increase in customer demand for heating needs, especially in our eastern and mid-western territories.

Revenues from the distribution of propane and related activities of $322.1 million increased $52.7 million, or 19.5%, compared to the prior year primarily due to higher average retail selling prices and volumes sold.  Average propane selling prices increased 15.0% associated with higher wholesale costs, resulting in a $39.1 million increase in revenues.  As a result of the impact of the aforementioned cooler temperatures on customer demand, retail propane gallons sold increased 6.4 million gallons, or 5.4%, resulting in a $13.4 million increase in revenues.  Included within the propane segment are revenues from other propane activities of $21.2 million, which increased $0.2 million.

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Revenues from the distribution of fuel oil and refined fuels of $25.3 million increased $3.2 million, or 14.6%, compared to the prior year first quarter primarily due to higher average selling prices and amodest increase in volumes sold.  During the first quarter of fiscal 2018, average fuel oil and refined fuels selling prices increased 12.9% attributable to higher wholesale costs, resulting in a $2.9 million increase in revenues.  Fuel oil and refined fuels gallons sold increased 0.1 million gallons, or 1.2%, resulting in a $0.3 million increase in revenues.  

Revenues in our natural gas and electricity segment of $13.1 million were modestly higher than the prior year.

Cost of Products Sold

(Dollars in thousands)	Three Months Ended									Percent
	December 30,			December 24,			Increase			Increase
	2017			2016			(Decrease)			(Decrease)
Cost of products sold
Propane	$	136,728		$	91,938		$	44,790			48.7	%
Fuel oil and refined fuels		17,182			14,580			2,602			17.8	%
Natural gas and electricity		7,648			7,698			(50	)		(0.6	)%
All other		3,631			3,949			(318	)		(8.1	)%
Total cost of products sold	$	165,189		$	118,165		$	47,024			39.8	%
As a percent of total revenues		44.3	%		37.2	%

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 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.  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.  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 63.7% and 20.7% higher than the prior year first quarter, respectively.  The net change in the fair value of derivative instruments resulted in a $1.5 million unrealized (non-cash) loss in the first quarter of fiscal 2018 compared to an unrealized (non-cash) gain of $0.5 million in the prior year first quarter, resulting in an increase of $2.0 million in cost of products sold year-over-year, all of which was reported within the propane segment.

Cost of products sold associated with the distribution of propane and related activities of $136.7 million increased $44.8 million, or 48.7%, compared to the prior year first quarter, primarily due to higher average wholesale costs and higher volumes sold.  Higher average wholesale propane costs and higher volumes sold contributed to increases in cost of products sold in the propane segment of $46.2 million and $4.7 million, respectively, compared to the prior year.  Cost of products sold from other propane activities decreased $8.1 million compared to the prior year primarily due to realized gains on derivative contracts used to hedge price risk associated with propane gallons sold on a fixed price basis as a result of the rise in the commodity prices.

Cost of products sold associated with our fuel oil and refined fuels segment of $17.2 million increased $2.6 million, or 17.8%, compared to the prior year first quarter.  Higher average fuel oil and refined fuels wholesale costs and higher volumes sold contributed to increases in cost of products sold of $2.4 million and $0.2 million, respectively, compared to the prior year first quarter.  

Cost of products sold in our natural gas and electricity segment of $7.6 million were modestly lower compared to the prior year.

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Total cost of products sold as a percent of total revenues increased 7.1 percentage points to 44.3% from 37.2% primarily due to the year-over-year increase in wholesale propane costs outpacing the year-over-year increase in average propane selling prices, and to a much lesser extent, the impact of the net change in fair value of derivative instruments used in risk management activities discussed above.  Excluding these unrealized (non-cash) gains and losses from both periods, propane unit margins for the first quarter of fiscal 2018 were flat compared to the prior year first quarter.

Operating Expenses

(Dollars in thousands)	Three Months Ended
	December 30,			December 24,					Percent
	2017			2016			Increase		Increase
Operating expenses	$	99,611		$	99,349		$	262		0.3	%
As a percent of total revenues		26.7	%		31.3	%

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 $99.6 million for the first quarter of fiscal 2018 increased $0.3 million, or 0.3%, compared to $99.3 million in the prior year first quarter.  The slight increase in operating expenses was primarily due to higher variable operating costs attributable to an increase in deliveries to support higher customer demand, as well as higher variable compensation associated with higher operating earnings, and higher general insurance expense, all of which was substantially offset by continued savings from operating efficiencies.

General and Administrative Expenses

(Dollars in thousands)	Three Months Ended
	December 30,			December 24,					Percent
	2017			2016			Increase		Increase
General and administrative expenses	$	16,775		$	15,047		$	1,728		11.5	%
As a percent of total revenues		4.5	%		4.7	%

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 $16.8 million for the first quarter of fiscal 2018 increased $1.7 million, or 11.5%, compared to the prior year first quarter primarily due to higher variable compensation expense associated with higher earnings, partially offset by lower professional services fees and lower maintenance costs on our information systems.  

Depreciation and Amortization

(Dollars in thousands)	Three Months Ended
	December 30,			December 24,						Percent
	2017			2016			Decrease			Decrease
Depreciation and amortization	$	31,131		$	31,261		$	(130	)		(0.4	)%
As a percent of total revenues		8.3	%		9.9	%

Depreciation and amortization expense of $31.1 million in the first quarter of fiscal 2018 was essentially flat to the prior year.

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Interest Expense, net

(Dollars in thousands)	Three Months Ended
	December 30,			December 24,					Percent
	2017			2016			Increase		Increase
Interest expense, net	$	19,514		$	18,831		$	683		3.6	%
As a percent of total revenues		5.2	%		5.9	%

Net interest expense of $19.5 million in the first quarter of fiscal 2018 was $0.7 million higher than the prior year quarter, driven primarily by additional interest from incremental borrowings under our Revolving Credit Facility, offset to an extent by savings from the refinancing of our previously outstanding 7.375% senior notes due August 1, 2021 with the issuance of 5.875% senior notes due March 1, 2027 in the second quarter of fiscal 2017.  See Liquidity and Capital Resources below for additional discussion.

Loss on Sale of Business

On December 8, 2017, we sold certain assets and operations in a non-strategic market of our propane segment for $2.8 million plus working capital consideration, resulting in a loss of $4.8 million that was recognized during the first quarter of fiscal 2018. The corresponding net assets and results of operations were not material to our condensed consolidated 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.

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

(Dollars in thousands)	Three Months Ended
	December 30,			December 24,
	2017			2016
Net income	$	37,168		$	34,489
Add:
(Benefit from) provision for income taxes		(934	)		165
Interest expense, net		19,514			18,831
Depreciation and amortization		31,131			31,261
EBITDA		86,879			84,746
Unrealized (non-cash) losses (gains) on changes in fair value    of derivatives		1,531			(459	)
Loss on sale of business		4,823			—
Adjusted EBITDA	$	93,233		$	84,287

Liquidity and Capital Resources

Analysis of Cash Flows

Operating Activities. Net cash provided by operating activities for the first quarter of fiscal 2018 and fiscal 2017 was $1.7 million and $23.2 million, respectively.  The year-over-year decrease in net cash provided by operating activities was primarily attributable to a larger increase in working capital this fiscal first quarter compared to the prior year first quarter, stemming from the impact of higher wholesale costs on average selling prices, and in turn, accounts receivable, partially offset by higher earnings (discussed above).  Given the seasonal nature of the propane and fuel oil businesses, working capital requirements typically peak towards the end of the heating season after which, accounts receivable becomes a significant source of cash from operating activities.

25

Investing Activities.  Net cash used in investing activities of $8.4 million for the first quarter of fiscal 2018 consisted of capital expenditures of $8.5 million (including approximately $4.5 million to support the growth of operations and $4.0 million for maintenance expenditures) and$4.1 million used in the acquisition of a business (see Item 1, Note 3 of this Quarterly Report);partially offset by $2.8 million in proceeds from the sale of assets and operations in a non-strategic market and $1.4 million in proceeds from the sale of other property, plant and equipment.

Net cash used in investing activities of $4.7 million for the first quarter of fiscal 2017 consisted of capital expenditures of $6.8 million (including approximately $3.7 million to support the growth of operations and $3.1 million for maintenance expenditures), partially offset by $2.1 million in net proceeds from the sale of property, plant and equipment.

Financing Activities. Net cash provided by financing activities for the first quarter of fiscal 2018 of $9.8 million reflected total net borrowings under the Revolving Credit Facility of $47.3 million for the first quarter of fiscal 2018, which were used to fund a portion of our working capital requirements, offset to an extent by $36.7 million paid for the quarterly distributions to Common Unitholders at a rate of $0.60 per Common Unit paid in respect of the fourth quarter of fiscal 2017 and other financing activities of $0.8 million.  

Net cash used in financing activities for the first quarter of fiscal 2017 of $51.3 million reflected the quarterly distributions of $54.0 million to Common Unitholders at a rate of $0.8875 per Common Unit paid in respect of the fourth quarter of fiscal 2016 and other financing activities of $0.7 million, partially offset by net borrowings of $3.4 million under our Revolving Credit Facility to fund a portion of our working capital requirements.

Summary of Long-Term Debt Obligations and Revolving Credit Lines

As of December 30, 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 $209.9 million outstanding under our Revolving Credit Facility.  See Item 1, Note 8 of this Quarterly Report.

The aggregate amounts of long-term debt maturities subsequent to December 30, 2017 are as follows: fiscal 2018: $-0-; fiscal 2019: $-0-; fiscal 2020: $-0-; fiscal 2021: $209.9 million; fiscal 2022: $-0-; 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 January 25, 2018, we announced a quarterly distribution of $0.60 per Common Unit, or $2.40 on an annualized basis, in respect of the first quarter of fiscal 2018, payable on February 13, 2018 to holders of record on February 6, 2018.

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 frozen to new participants effective March 31, 1998.  At December 30, 2017, we had a liability for the defined benefit pension plan and accrued retiree health and life benefits of $37.5 million and $12.2 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 December 30, 2017, we had accrued insurance liabilities of $70.5 million, and an insurance recovery asset of $18.6 million related to the amount of the liability expected to be covered by insurance.

26

Legal Matters

See Item 1, Note 11, Legal Matters subsection of this Quarterly Report.

Off-Balance Sheet Arrangements

Guarantees

See Item 1, Note 12 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 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 our 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.

27

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 our 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 December 30, 2017, we were not party to an interest rate swap agreement.

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 December 30, 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 December 30, 2017 indicates a decrease in potential future net gains of $3.6 million.  See also Item 7A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. 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.

28

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 December 30, 2017.  Based on this evaluation, the Partnership’s principal executive officer and principal financial officer have concluded that as of December 30, 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 December 30, 2017 that have materially affected or are reasonably likely to materially affect its internal control over financial reporting.

29

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Part I, Item 1. Financial Statements, Note 11, Legal Matters subsection to the Condensed Consolidated Financial Statements of this Quarterly Report is hereby incorporated herein by reference.

ITEM 1A. RISK FACTORS

There have been no 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 30, 2017.

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 December 30, 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
October 1, 2017 through October 28, 2017		—		—	N/A	N/A
October 29, 2017 through November 25, 2017		34,388	$	24.64	N/A	N/A
November 26, 2017 through December 30, 2017		—		—	N/A	N/A
Total		34,388	$	24.64	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.

30

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
3.1	Amendment No. 2, dated January 24, 2018, to the Third Amended and Restated Agreement of Limited Partnership of the Partnership dated as of October 19, 2006, as amended as of July 31, 2007.  (Incorporated by reference to Exhibit 3.1 to the Partnership’s Current Report on Form 8-K filed on January 24, 2018).
3.2	Amendment No. 2, dated January 24, 2018, to the Third Amended and Restated Agreement of Limited Partnership of the Operating Partnership dated as of October 19, 2006, as amended as of June 24, 2009.  (Incorporated by reference to Exhibit 3.2 to the Partnership’s Current Report on Form 8-K filed on January 24, 2018).
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. (Furnished 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. (Furnished 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

31

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.
February 8, 2018	By:	/s/ MICHAEL A. KUGLIN
Date		Michael A. Kuglin
		Chief Financial Officer and Chief Accounting Officer
February 8, 2018	By:	/s/ DANIEL S. BLOOMSTEIN
Date		Daniel S. Bloomstein
		Vice President and Controller

32

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.

February 8, 2018	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.

February 8, 2018	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 December 30, 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
	February 8, 2018

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 December 30, 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
	February 8, 2018

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 30, 2017	Feb. 05, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	SUBURBAN PROPANE PARTNERS LP
Entity Central Index Key	0001005210
Current Fiscal Year End Date	--09-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		61,393,674
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Trading Symbol	SPH
Amendment Flag	false
Document Period End Date	Dec. 30, 2017

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 5,907	$ 2,789
Accounts receivable, less allowance for doubtful accounts of $3,744 and $3,044, respectively	138,788	65,683
Inventories	61,761	53,220
Other current assets	26,253	17,801
Total current assets	232,709	139,493
Property, plant and equipment, net	677,562	692,627
Goodwill	1,093,470	1,094,635
Other intangible assets, net	207,900	219,876
Other assets	24,731	24,652
Total assets	2,236,372	2,171,283
Current liabilities:
Accounts payable	73,498	38,652
Accrued employment and benefit costs	21,625	27,402
Customer deposits and advances	79,098	97,023
Accrued interest	16,766	13,682
Other current liabilities	31,657	33,607
Total current liabilities	222,644	210,366
Long-term borrowings	1,319,969	1,272,164
Accrued insurance	55,756	54,921
Other liabilities	81,956	80,850
Total liabilities	1,680,325	1,618,301
Commitments and contingencies
Partners’ capital:
Common Unitholders (61,389 and 61,105 units issued and outstanding at December 30, 2017 and September 30, 2017, respectively)	584,102	581,794
Accumulated other comprehensive loss	(28,055)	(28,812)
Total partners’ capital	556,047	552,982
Total liabilities and partners’ capital	$ 2,236,372	$ 2,171,283

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Current assets:
Allowance for doubtful accounts	$ 3,744	$ 3,044
Partners’ capital:
Common units issued (in units)	61,389,000	61,105,000
Common units outstanding (in units)	61,389,265	61,105,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 30, 2017	Dec. 24, 2016
Revenues
Propane	$ 322,130	$ 269,459
Fuel oil and refined fuels	25,315	22,096
Natural gas and electricity	13,147	13,067
All other	12,685	12,685
Total Revenues	373,277	317,307
Costs and expenses
Cost of products sold	165,189	118,165
Operating	99,611	99,349
General and administrative	16,775	15,047
Depreciation and amortization	31,131	31,261
Total Expenses	312,706	263,822
Loss on sale of business	4,823	0
Operating income	55,748	53,485
Interest expense, net	19,514	18,831
Income before (benefit from) provision for income taxes	36,234	34,654
(Benefit from) provision for income taxes	(934)	165
Net income	$ 37,168	$ 34,489
Net income per Common Unit - basic	$ 0.61	$ 0.57
Weighted average number of Common Units outstanding - basic	61,333	61,042
Net income per Common Unit - diluted	$ 0.60	$ 0.56
Weighted average number of Common Units outstanding - diluted	61,525	61,232

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2017	Dec. 24, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 37,168	$ 34,489
Other comprehensive income:
Net unrealized (losses) on cash flow hedges	0	(5)
Reclassification of realized losses on cash flow hedges into earnings	0	200
Amortization of net actuarial losses and prior service credits into earnings	757	1,203
Other comprehensive income	757	1,398
Total comprehensive income	$ 37,925	$ 35,887

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2017	Dec. 24, 2016
Cash flows from operating activities:
Net income	$ 37,168	$ 34,489
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	31,131	31,261
Loss on sale of business	4,823	0
Other, net	2,432	2,541
Changes in assets and liabilities:
Accounts receivable	(73,005)	(55,039)
Inventories	(8,511)	(8,451)
Other current and noncurrent assets	(7,779)	(7,335)
Accounts payable	36,316	36,213
Accrued employment and benefit costs	(5,776)	4,453
Customer deposits and advances	(17,925)	(13,820)
Contribution to defined benefit pension plan	0	(1,396)
Other current and noncurrent liabilities	2,832	323
Net cash provided by operating activities	1,706	23,239
Cash flows from investing activities:
Capital expenditures	(8,499)	(6,828)
Acquisition of business	(4,051)	0
Proceeds from sale of business	2,800	0
Proceeds from sale of property, plant and equipment	1,372	2,098
Net cash (used in) investing activities	(8,378)	(4,730)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	113,800	57,500
Repayments of borrowings under revolving credit facility	(66,500)	(54,100)
Partnership distributions	(36,663)	(53,952)
Other, net	(847)	(736)
Net cash provided by (used in) financing activities	9,790	(51,288)
Net increase (decrease) in cash and cash equivalents	3,118	(32,779)
Cash and cash equivalents at beginning of period	2,789	37,341
Cash and cash equivalents at end of period	$ 5,907	$ 4,562

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CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (unaudited) - 3 months ended Dec. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Unitholders [Member]	Accumulated Other Comprehensive (Loss) [Member]
Balance at Sep. 30, 2017	$ 552,982	$ 581,794	$ (28,812)
Balance (in units) at Sep. 30, 2017		61,105
Net income	37,168	$ 37,168
Other comprehensive income	757		757
Partnership distributions	(36,663)	$ (36,663)
Common Units issued under Restricted Unit Plans (in units)		284
Compensation cost recognized under Restricted Unit Plans, net of forfeitures	1,803	$ 1,803
Balance at Dec. 30, 2017	$ 556,047	$ 584,102	$ (28,055)
Balance (in units) at Dec. 30, 2017		61,389

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Partnership Organization and Formation

3 Months Ended

Dec. 30, 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 61,389,265 Common Units outstanding at December 30, 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, (the “Partnership Agreement”) as amended.  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 U.S. 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

3 Months Ended

Dec. 30, 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 30, 2017.  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 was 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 March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”).  This update provides guidance on the capitalization, presentation and disclosure of net benefit costs.  ASU 2017-07 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 and will be applied retrospectively upon adoption.  The Partnership is currently evaluating the impact that the standard will have on the Partnership’s consolidated statements of operations.

In January 2017, the FASB issued ASU 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 6, “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 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 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 2018, the Partnership adopted new accounting guidance regarding stock-based compensation under ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”).  Cash payments made to the taxing authorities on employees’ behalf for withheld shares are now presented as financing activities on the condensed consolidated statement of cash flows, rather than operating activities.  The amounts paid to federal and state taxing authorities were $847 and $736 for the three months ended December 30, 2017 and December 24, 2016, respectively.

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Acquisition and Disposition of Businesses

3 Months Ended

Dec. 30, 2017

Business Combination Disposition [Abstract]

Acquisition and Disposition of Businesses

3. Acquisition and Disposition of Businesses

On November 7, 2017, the Operating Partnership acquired the propane assets and operations of a propane retailer headquartered in California for $4,871, including $750 for non-compete consideration, plus working capital acquired.  As of December 30, 2017, $4,051 was paid and the remainder of the purchase price will be funded in accordance with the terms of the asset purchase and non-compete agreements.  The acquisition was consummated pursuant to the Partnership’s strategic growth initiatives.  The purchase price allocation and results of operations the acquired business were not material to the Partnership’s condensed consolidated financial position and statement of operations.

On December 8, 2017, the Operating Partnership sold certain assets and operations in a non-strategic market of its propane segment for $2,800, plus working capital consideration, resulting in a loss of $4,823 that was recognized during the first quarter of fiscal 2018, principally for the allocated goodwill and other identifiable intangible assets associated with this business.  The corresponding net assets and results of operations were not material to the Partnership’s condensed consolidated results of operations, financial position and cash flows.

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Financial Instruments and Risk Management

3 Months Ended

Dec. 30, 2017

Fair Value Disclosures [Abstract]

Financial Instruments and Risk Management

4. 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 derivative instruments 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 manages part of its variable interest rate risk by entering into interest rate swap agreements. 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 December 30, 2017 and September 30, 2017, respectively:

	As of December 30, 2017			As of September 30, 2017
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	10,738	Other current assets	$	11,164
	Other assets		—	Other assets		771
		$	10,738		$	11,935
Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current liabilities	$	2,342	Other current liabilities	$	1,978
	Other liabilities		274	Other liabilities		432
		$	2,616		$	2,410

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)
	Three Months Ended						Three Months Ended
	December 30, 2017						December 24, 2016
	Assets			Liabilities			Assets		Liabilities
Beginning balance of over-the-counter options	$	4,108		$	737		$	809	$	—
Beginning balance realized during the period		(313	)		—			—		—
Contracts purchased during the period		—			—			48		—
Change in the fair value of outstanding contracts		122			(305	)		332		—
Ending balance of over-the-counter options	$	3,917		$	432		$	1,189	$	—

As of December 30, 2017 and September 30, 2017, the Partnership’s outstanding commodity-related derivatives had a weighted average maturity of approximately four and five 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 months ended December 30, 2017 and December 24, 2016 are as follows:

Three Months Ended December 30, 2017

Three Months Ended December 24, 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

$

—

$

(5

)

Interest expense

$

(200

)

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

$

(1,531

)

Cost of products sold

$

459

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 December 30, 2017							As of September 30, 2017
						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	$	12,435	$	(1,697	)	$	10,738	$	16,378	$	(4,443	)	$	11,935
Liability Derivatives
Commodity-related derivatives	$	4,313	$	(1,697	)	$	2,616	$	6,853	$	(4,443	)	$	2,410

The Partnership had no posted cash collateral as of December 30, 2017 and September 30, 2017 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 8) 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 8) of the Partnership are as follows:

	As of
	December 30,		September 30,
	2017		2017
5.5% senior notes due June 1, 2024	$	522,375	$	527,888
5.75% senior notes due March 1, 2025		246,875		248,750
5.875% senior notes due March 1, 2027		343,980		349,125
	$	1,113,230	$	1,125,763

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Inventories

3 Months Ended

Dec. 30, 2017

Inventory Disclosure [Abstract]

Inventories

5. 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
	December 30,		September 30,
	2017		2017
Propane, fuel oil and refined fuels and natural gas	$	60,226	$	51,844
Appliances		1,535		1,376
	$	61,761	$	53,220

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Goodwill and Other Intangible Assets

3 Months Ended

Dec. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

6. 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, an entity 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 an entity 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 30, 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
Fiscal 2018 Activity
Goodwill disposed (2)		(1,165	)		—			—		(1,165	)
Balance as of December 30, 2017
Goodwill	$	1,081,132		$	10,900		$	7,900	$	1,099,932
Accumulated adjustments		—			(6,462	)		—		(6,462	)
	$	1,081,132		$	4,438		$	7,900	$	1,093,470

Other intangible assets consist of the following:

	As of
	December 30,			September 30,
	2017			2017
Customer relationships (1) (2)	$	491,461		$	492,656
Non-compete agreements (1)		31,790			31,040
Other		1,967			1,967
		525,218			525,663
Less: accumulated amortization
Customer relationships		(290,131	)		(279,287	)
Non-compete agreements		(25,906	)		(25,242	)
Other		(1,281	)		(1,258	)
		(317,318	)		(305,787	)
	$	207,900		$	219,876

(1) Reflects the impact from the acquisition (Note 3).

(2) Reflects the impact from the disposition of certain assets and operations in a non-strategic market of the propane

segment (Note 3).

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Net Income Per Common Unit

3 Months Ended

Dec. 30, 2017

Earnings Per Share [Abstract]

Net Income Per Common Unit

7. 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 Plan, 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 Plan.  In computing diluted net income per Common Unit, weighted average units outstanding used to compute basic net income per Common Unit were increased by 191,893 and 190,259 units for the three months ended December 30, 2017 and December 24, 2016, respectively, to reflect the potential dilutive effect of the unvested restricted units outstanding using the treasury stock method.  

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Long-Term Borrowings

3 Months Ended

Dec. 30, 2017

Debt Disclosure [Abstract]

Long Term Borrowings

8. Long-Term Borrowings

Long-term borrowings consist of the following:

	As of
	December 30,			September 30,
	2017			2017
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			350,000
Revolving Credit Facility, due March 3, 2021		209,945			162,645
Subtotal		1,334,945			1,287,645
Less: unamortized debt issuance costs		(14,976	)		(15,481	)
	$	1,319,969		$	1,272,164

Senior Notes

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 previously outstanding 7.375% senior notes due in 2021.

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 $209,945 and $162,645 was outstanding as of December 30, 2017 and September 30, 2017, 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.

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 5.95 to 1.0 for each fiscal quarter ending in 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, 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.  

       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 December 30, 2017, the interest rate for borrowings under the Revolving Credit Facility was approximately 3.8%.  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 December 30, 2017, the Partnership had standby letters of credit issued under the Revolving Credit Facility of $45,626 which expire periodically through November 1, 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 December 30, 2017.

The aggregate amounts of long-term debt maturities subsequent to December 30, 2017 are as follows: fiscal 2018: $-0-; fiscal 2019: $-0-; fiscal 2020: $-0-; fiscal 2021: $209,945; fiscal 2022: $-0-; and thereafter: $1,125,000.

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Distributions of Available Cash

3 Months Ended

Dec. 30, 2017

Distributions Made To Members Or Limited Partners [Abstract]

Distributions of Available Cash

9. 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 January 25, 2018, the Partnership announced a quarterly distribution of $0.60 per Common Unit, or $2.40 per Common Unit on an annualized basis, in respect of the first quarter of fiscal 2018, payable on February 13, 2018 to holders of record on February 6, 2018.

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Unit-Based Compensation Arrangements

3 Months Ended

Dec. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Unit-Based Compensation Arrangements

10. 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 December 30, 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 issued 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 three months ended December 30, 2017, the Partnership awarded 424,431 restricted units under the Restricted Unit Plan at an aggregate grant date fair value of $8,285.  The following is a summary of activity for the Restricted Unit Plan for the three months ended December 30, 2017:

				WeightedAverage
	Restricted			Grant Date Fair
	Units			Value Per Unit
Outstanding September 30, 2017		621,045		$	22.10
Awarded		424,431			19.52
Forfeited		(9,226	)		(19.78	)
Vested (with Common Units issued)		(319,109	)		(24.48	)
Outstanding December 30, 2017		717,141		$	19.54

As of December 30, 2017, unrecognized compensation cost related to unvested restricted units awarded under the Restricted Unit Plan amounted to $8,627.  Compensation cost associated with unvested awards is expected to be recognized over a weighted-average period of 1.1 years.  Compensation expense for the Restricted Unit Plan, net of forfeitures, for the three months ended December 30, 2017 and December 24, 2016 was $2,649 and $2,875, 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 for the three months ended December 30, 2017 and December 24, 2016 was $207 and $-0-, 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.

As a result of the quarterly remeasurement of the liability for awards under the LTIP, compensation expense for the three months ended December 30, 2017 and December 24, 2016 reflected expense of $1,632, and income of $986, respectively. As of December 30, 2017 and September 30, 2017, the Partnership had a liability included within accrued employment and benefit costs (or other liabilities, as applicable) of $3,268 and $1,637, respectively, related to estimated future payments under the LTIP.

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Commitments and Contingencies

3 Months Ended

Dec. 30, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. 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 December 30, 2017 and September 30, 2017, the Partnership had accrued insurance liabilities of $70,536 and $68,581, 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 prepaid expenses and other current assets, as applicable) related to the amount of the liability expected to be covered by insurance which amounted to $18,626  as of December 30, 2017 and September 30, 2017.

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. 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

3 Months Ended

Dec. 30, 2017

Guarantees [Abstract]

Guarantees

12. 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 $16,816 as of December 30, 2017.  The fair value of residual value guarantees for outstanding operating leases was de minimis as of December 30, 2017 and September 30, 2017.

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Pension Plans and Other Postretirement Benefits

3 Months Ended

Dec. 30, 2017

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

Pension Plans and Other Postretirement Benefits

13. Pension Plans and Other Postretirement Benefits

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

	Pension Benefits
	Three Months Ended
	December 30,			December 24,
	2017			2016
Interest cost	$	944		$	1,041
Expected return on plan assets		(474	)		(537	)
Amortization of net loss		921			1,300
Net periodic benefit cost	$	1,391		$	1,804

	Postretirement Benefits
	Three Months Ended
	December 30,			December 24,
	2017			2016
Interest cost	$	69		$	96
Amortization of prior service credits		(124	)		—
Amortization of net (gain)		(164	)		(97	)
Net periodic benefit cost	$	(219	)	$	(1	)

The Partnership expects to contribute approximately $10,290 to the defined benefit pension plan during fiscal 2018, of which $-0- was contributed during the three months ended December 30, 2017. The projected annual contribution requirements related to the Partnership’s postretirement health care and life insurance benefit plan for fiscal 2018 is $1,243, of which $258 was contributed during the three months ended December 30, 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 December 30, 2017 and September 30, 2017, the Partnership’s estimated obligation to these MEPPs was $23,389 and $23,665, respectively, as a result of its voluntary full withdrawal from certain MEPPs.

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Amounts Reclassified Out of Accumulated Other Comprehensive Income

3 Months Ended

Dec. 30, 2017

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Amounts Reclassified Out of Accumulated Other Comprehensive Income

14. Amounts Reclassified Out of Accumulated Other Comprehensive Income

The following table summarizes amounts reclassified out of accumulated other comprehensive (loss) income for the three months ended December 30, 2017 and December 24, 2016:

	Three Months Ended
	December 30,			December 24,
	2017			2016
Cash Flow Hedges
Balance, beginning of period	$	—		$	(205	)
Other comprehensive income before reclassifications:
Unrealized (losses)		—			(5	)
Reclassifications to earnings:
Realized losses (a)		—			200
Other comprehensive income		—			195
Balance, end of period	$	—		$	(10	)
Pension Benefits
Balance, beginning of period	$	(37,311	)	$	(51,391	)
Reclassifications to earnings:
Amortization of net loss (b)		921			1,300
Other comprehensive income		921			1,300
Balance, end of period	$	(36,390	)	$	(50,091	)
Postretirement Benefits
Balance, beginning of period	$	8,499		$	5,764
Reclassifications to earnings:
Amortization of net gain (b)		(164	)		(97	)
Other comprehensive loss		(164	)		(97	)
Balance, end of period	$	8,335		$	5,667
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	(28,812	)	$	(45,832	)
Other comprehensive income before reclassifications		—			(5	)
Reclassifications to earnings		757			1,403
Other comprehensive income		757			1,398
Balance, end of period	$	(28,055	)	$	(44,434	)

(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 13, “Pension Plans and Other Postretirement Benefits.”

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Income Taxes

3 Months Ended

Dec. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

15. 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 (with the exception of the AMT credit carryforward; see below) 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.

On December 22, 2017, the Tax Cuts and Jobs Act (“2017 Act”) was signed into law, which enacted significant changes to U.S. tax and related laws.  Some of the provisions of the 2017 Act that could affect the Partnership, the Operating Partnership and their subsidiaries include, but are not limited to, a reduction of the federal corporate income tax rate from 35% to 21%, limitations on the deductibility of interest expense, restrictions on the use of net operating loss carryforwards arising in taxable years beginning after December 31, 2017 and full expensing for certain qualified property.

The 2017 Act made Alternative Minimum Tax (“AMT”) credit carryforwards fully refundable without regard to future taxable income. Accordingly, the Partnership concluded that the existing valuation allowance on the AMT credit carryforwards of the Corporate Entities should be released as part of accounting for tax reform. The reversal of the valuation allowance resulted in a $1,086 discrete deferred tax benefit being recorded during the first quarter of fiscal 2018.  The Partnership remeasured all other federal net deferred tax assets of the Corporate Entities using the new 21% federal income tax rate and correspondingly adjusted the full valuation allowance.  The blended corporate tax federal rate requirements of Internal Revenue Code Section 15 do not apply because the Corporate Entities are calendar-year tax filers.

The Partnership will continue to analyze the 2017 Act to determine the full effects of the new law on its consolidated financial statements.

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Segment Information

3 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

Segment Information

16. Segment Information

The Partnership manages and evaluates its operations in four operating segments, three of which are reportable segments: Propane, Fuel Oil and Refined Fuels, and Natural Gas and Electricity.  The chief operating decision maker evaluates performance of the operating segments using a number of performance measures, including gross margins and income before interest expense and provision for income taxes (operating profit).  Costs excluded from these profit measures are captured in Corporate and include corporate overhead expenses not allocated to the operating segments.  Unallocated corporate overhead expenses include all costs of back office support functions that are reported as general and administrative expenses within the condensed consolidated statements of operations.  In addition, certain costs associated with field operations support that are reported in operating expenses within the condensed consolidated statements of operations, including purchasing, training and safety, are not allocated to the individual operating segments.  Thus, operating profit for each operating segment includes only the costs that are directly attributable to the operations of the individual segment. The accounting policies of the operating segments are otherwise the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017.

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
	December 30,			December 24,
	2017			2016
Revenues:
Propane	$	322,130		$	269,459
Fuel oil and refined fuels		25,315			22,096
Natural gas and electricity		13,147			13,067
All other		12,685			12,685
Total revenues	$	373,277		$	317,307
Operating income (loss):
Propane (1)	$	74,551		$	74,663
Fuel oil and refined fuels		3,824			2,848
Natural gas and electricity		3,485			3,120
All other		(5,233	)		(5,206	)
Corporate		(20,879	)		(21,940	)
Total operating income		55,748			53,485
Reconciliation to net income:
Interest expense, net		19,514			18,831
(Benefit from) provision for income taxes		(934	)		165
Net income	$	37,168		$	34,489
Depreciation and amortization:
Propane	$	27,781		$	27,384
Fuel oil and refined fuels		579			631
Natural gas and electricity		—			—
All other		50			70
Corporate		2,721			3,176
Total depreciation and amortization	$	31,131		$	31,261

	As of
	December 30,		September 30,
	2017		2017
Assets:
Propane	$	2,110,715	$	2,066,997
Fuel oil and refined fuels		54,943		49,863
Natural gas and electricity		15,816		12,455
All other		3,753		2,147
Corporate		51,145		39,821
Total assets	$	2,236,372	$	2,171,283

(1) Includes the loss on sale of business of $4,823 for the three months ended December 30, 2017 (see Note 3).

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Basis of Presentation (Policies)

3 Months Ended

Dec. 30, 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 30, 2017.  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 was 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 March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”).  This update provides guidance on the capitalization, presentation and disclosure of net benefit costs.  ASU 2017-07 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 and will be applied retrospectively upon adoption.  The Partnership is currently evaluating the impact that the standard will have on the Partnership’s consolidated statements of operations.

In January 2017, the FASB issued ASU 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 6, “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 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 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 2018, the Partnership adopted new accounting guidance regarding stock-based compensation under ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”).  Cash payments made to the taxing authorities on employees’ behalf for withheld shares are now presented as financing activities on the condensed consolidated statement of cash flows, rather than operating activities.  The amounts paid to federal and state taxing authorities were $847 and $736 for the three months ended December 30, 2017 and December 24, 2016, respectively.

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Financial Instruments and Risk Management (Tables)

3 Months Ended

Dec. 30, 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 December 30, 2017 and September 30, 2017, respectively:

	As of December 30, 2017			As of September 30, 2017
Asset Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current assets	$	10,738	Other current assets	$	11,164
	Other assets		—	Other assets		771
		$	10,738		$	11,935
Liability Derivatives	Location	Fair Value		Location	Fair Value
Derivatives not designated as hedging instruments:
Commodity-related derivatives	Other current liabilities	$	2,342	Other current liabilities	$	1,978
	Other liabilities		274	Other liabilities		432
		$	2,616		$	2,410

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)
	Three Months Ended						Three Months Ended
	December 30, 2017						December 24, 2016
	Assets			Liabilities			Assets		Liabilities
Beginning balance of over-the-counter options	$	4,108		$	737		$	809	$	—
Beginning balance realized during the period		(313	)		—			—		—
Contracts purchased during the period		—			—			48		—
Change in the fair value of outstanding contracts		122			(305	)		332		—
Ending balance of over-the-counter options	$	3,917		$	432		$	1,189	$	—

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 months ended December 30, 2017 and December 24, 2016 are as follows:

Three Months Ended December 30, 2017

Three Months Ended December 24, 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

$

—

$

(5

)

Interest expense

$

(200

)

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

$

(1,531

)

Cost of products sold

$

459

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 December 30, 2017							As of September 30, 2017
						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	$	12,435	$	(1,697	)	$	10,738	$	16,378	$	(4,443	)	$	11,935
Liability Derivatives
Commodity-related derivatives	$	4,313	$	(1,697	)	$	2,616	$	6,853	$	(4,443	)	$	2,410

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 8) of the Partnership are as follows:

	As of
	December 30,		September 30,
	2017		2017
5.5% senior notes due June 1, 2024	$	522,375	$	527,888
5.75% senior notes due March 1, 2025		246,875		248,750
5.875% senior notes due March 1, 2027		343,980		349,125
	$	1,113,230	$	1,125,763

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Inventories (Tables)

3 Months Ended

Dec. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consist of the following:

	As of
	December 30,		September 30,
	2017		2017
Propane, fuel oil and refined fuels and natural gas	$	60,226	$	51,844
Appliances		1,535		1,376
	$	61,761	$	53,220

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Dec. 30, 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 30, 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
Fiscal 2018 Activity
Goodwill disposed (2)		(1,165	)		—			—		(1,165	)
Balance as of December 30, 2017
Goodwill	$	1,081,132		$	10,900		$	7,900	$	1,099,932
Accumulated adjustments		—			(6,462	)		—		(6,462	)
	$	1,081,132		$	4,438		$	7,900	$	1,093,470

Other intangible assets

Other intangible assets consist of the following:

	As of
	December 30,			September 30,
	2017			2017
Customer relationships (1) (2)	$	491,461		$	492,656
Non-compete agreements (1)		31,790			31,040
Other		1,967			1,967
		525,218			525,663
Less: accumulated amortization
Customer relationships		(290,131	)		(279,287	)
Non-compete agreements		(25,906	)		(25,242	)
Other		(1,281	)		(1,258	)
		(317,318	)		(305,787	)
	$	207,900		$	219,876

(1) Reflects the impact from the acquisition (Note 3).

(2) Reflects the impact from the disposition of certain assets and operations in a non-strategic market of the propane

segment (Note 3).

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Long-Term Borrowings (Tables)

3 Months Ended

Dec. 30, 2017

Debt Disclosure [Abstract]

Long-term borrowings

Long-term borrowings consist of the following:

	As of
	December 30,			September 30,
	2017			2017
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			350,000
Revolving Credit Facility, due March 3, 2021		209,945			162,645
Subtotal		1,334,945			1,287,645
Less: unamortized debt issuance costs		(14,976	)		(15,481	)
	$	1,319,969		$	1,272,164

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Unit-Based Compensation Arrangements (Tables)

3 Months Ended

Dec. 30, 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 three months ended December 30, 2017:

				WeightedAverage
	Restricted			Grant Date Fair
	Units			Value Per Unit
Outstanding September 30, 2017		621,045		$	22.10
Awarded		424,431			19.52
Forfeited		(9,226	)		(19.78	)
Vested (with Common Units issued)		(319,109	)		(24.48	)
Outstanding December 30, 2017		717,141		$	19.54

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Pension Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Dec. 30, 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
	December 30,			December 24,
	2017			2016
Interest cost	$	944		$	1,041
Expected return on plan assets		(474	)		(537	)
Amortization of net loss		921			1,300
Net periodic benefit cost	$	1,391		$	1,804

	Postretirement Benefits
	Three Months Ended
	December 30,			December 24,
	2017			2016
Interest cost	$	69		$	96
Amortization of prior service credits		(124	)		—
Amortization of net (gain)		(164	)		(97	)
Net periodic benefit cost	$	(219	)	$	(1	)

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Amounts Reclassified Out of Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Dec. 30, 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 months ended December 30, 2017 and December 24, 2016:

	Three Months Ended
	December 30,			December 24,
	2017			2016
Cash Flow Hedges
Balance, beginning of period	$	—		$	(205	)
Other comprehensive income before reclassifications:
Unrealized (losses)		—			(5	)
Reclassifications to earnings:
Realized losses (a)		—			200
Other comprehensive income		—			195
Balance, end of period	$	—		$	(10	)
Pension Benefits
Balance, beginning of period	$	(37,311	)	$	(51,391	)
Reclassifications to earnings:
Amortization of net loss (b)		921			1,300
Other comprehensive income		921			1,300
Balance, end of period	$	(36,390	)	$	(50,091	)
Postretirement Benefits
Balance, beginning of period	$	8,499		$	5,764
Reclassifications to earnings:
Amortization of net gain (b)		(164	)		(97	)
Other comprehensive loss		(164	)		(97	)
Balance, end of period	$	8,335		$	5,667
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	(28,812	)	$	(45,832	)
Other comprehensive income before reclassifications		—			(5	)
Reclassifications to earnings		757			1,403
Other comprehensive income		757			1,398
Balance, end of period	$	(28,055	)	$	(44,434	)

(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 13, “Pension Plans and Other Postretirement Benefits.”

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Segment Information (Tables)

3 Months Ended

Dec. 30, 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
	December 30,			December 24,
	2017			2016
Revenues:
Propane	$	322,130		$	269,459
Fuel oil and refined fuels		25,315			22,096
Natural gas and electricity		13,147			13,067
All other		12,685			12,685
Total revenues	$	373,277		$	317,307
Operating income (loss):
Propane (1)	$	74,551		$	74,663
Fuel oil and refined fuels		3,824			2,848
Natural gas and electricity		3,485			3,120
All other		(5,233	)		(5,206	)
Corporate		(20,879	)		(21,940	)
Total operating income		55,748			53,485
Reconciliation to net income:
Interest expense, net		19,514			18,831
(Benefit from) provision for income taxes		(934	)		165
Net income	$	37,168		$	34,489
Depreciation and amortization:
Propane	$	27,781		$	27,384
Fuel oil and refined fuels		579			631
Natural gas and electricity		—			—
All other		50			70
Corporate		2,721			3,176
Total depreciation and amortization	$	31,131		$	31,261

	As of
	December 30,		September 30,
	2017		2017
Assets:
Propane	$	2,110,715	$	2,066,997
Fuel oil and refined fuels		54,943		49,863
Natural gas and electricity		15,816		12,455
All other		3,753		2,147
Corporate		51,145		39,821
Total assets	$	2,236,372	$	2,171,283

(1) Includes the loss on sale of business of $4,823 for the three months ended December 30, 2017 (see Note 3).

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Partnership Organization and Formation - Additional Information (Details) - shares	Dec. 30, 2017	Sep. 30, 2017
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items]
Common units outstanding (in units)	61,389,265	61,105,000
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	3 Months Ended
	Dec. 30, 2017 USD ($) wk	Dec. 24, 2016 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Abstract]
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
Cash paid to taxing authorities on employee’s’ behalf for withheld shares | $	$ 847	$ 736

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Acquisition and Disposition of Businesses - Additional Information (Details) - USD ($) $ in Thousands			2 Months Ended	3 Months Ended
	Dec. 08, 2017	Nov. 07, 2017	Dec. 30, 2017	Dec. 30, 2017	Dec. 24, 2016
Business Acquisition And Dispositions [Line Items]
Business acquisition, cost of acquired, cash paid		$ 4,871
Cash paid to acquire business			$ 4,051	$ 4,051	$ 0
Business disposition, sales price	$ 2,800
Loss on sale of certain assets and operations				$ 4,823	$ 0
Non-compete Agreements [Member]
Business Acquisition And Dispositions [Line Items]
Business acquisition, cost of acquired, cash paid		$ 750

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Financial Instruments and Risk Management - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017
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	$ 0	$ 0
Commodity Contract [Member]
Derivatives, Fair Value [Line Items]
Weighted average maturity of outstanding commodity-related derivatives	4 months	5 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	Dec. 30, 2017	Sep. 30, 2017
Commodity-Related Derivatives [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	$ 12,435	$ 16,378
Fair value - liabilities	4,313	6,853
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	10,738	11,935
Fair value - liabilities	2,616	2,410
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	10,738	11,164
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value - assets	0	771
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value - liabilities	2,342	1,978
Derivatives Not Designated as Hedging Instruments [Member] | Commodity-Related Derivatives [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value - liabilities	$ 274	$ 432

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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	3 Months Ended
	Dec. 30, 2017	Dec. 24, 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	$ 4,108	$ 809
Beginning balance realized during the period	(313)	0
Contracts purchased during the period	0	48
Change in the fair value of outstanding contracts	122	332
Ending balance of over-the-counter options	3,917	1,189
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	737	0
Beginning balance realized during the period	0	0
Contracts purchased during the period	0	0
Change in the fair value of outstanding contracts	(305)	0
Ending balance of over-the-counter options	$ 432	$ 0

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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
	Dec. 30, 2017	Dec. 24, 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	$ (5)
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	(200)
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	$ (1,531)	$ 459

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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) - Commodity-Related Derivatives [Member] - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Asset Derivatives [Abstracts]
Gross amounts	$ 12,435	$ 16,378
Effects of netting	(1,697)	(4,443)
Net amounts presented in the balance sheet	10,738	11,935
Liability Derivatives [Abstracts]
Gross amounts	4,313	6,853
Effects of netting	(1,697)	(4,443)
Net amounts presented in the balance sheet	$ 2,616	$ 2,410

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Financial Instruments and Risk Management - Fair Value of the Partnership's Senior Notes (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	$ 1,113,230	$ 1,125,763
5.5% Senior Notes due June 1, 2024 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	522,375	527,888
5.75% Senior Notes due March 1, 2025 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	246,875	248,750
5.875% Senior Notes due March 1, 2027 [Member]
Bank Debt and Senior Notes [Abstract]
Fair value of Senior Notes	$ 343,980	$ 349,125

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Financial Instruments and Risk Management - Fair Value of the Partnership's Senior Notes (Parenthetical) (Details)	3 Months Ended
	Dec. 30, 2017	Sep. 30, 2017
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

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Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Inventory Net [Abstract]
Propane, fuel oil and refined fuels and natural gas	$ 60,226	$ 51,844
Appliances	1,535	1,376
Total inventory	$ 61,761	$ 53,220

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Goodwill and Other Intangible Assets - Additional Information (Details)	3 Months Ended
	Dec. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Projection period for discounted cash flow analyses to estimate reporting unit fair value	10 years

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Goodwill and Other Intangible Assets - Carrying Values of Goodwill Assigned to Partnership's Operating Segments (Details) - USD ($) $ in Thousands		3 Months Ended
		Dec. 30, 2017	Sep. 30, 2017
Goodwill [Line Items]
Goodwill		$ 1,099,932	$ 1,101,097
Accumulated adjustments		(6,462)	(6,462)
Goodwill, net		1,093,470	1,094,635
Goodwill disposed	[1]	(1,165)
Propane [Member]
Goodwill [Line Items]
Goodwill		1,081,132	1,082,297
Accumulated adjustments		0	0
Goodwill, net		1,081,132	1,082,297
Goodwill disposed	[1]	(1,165)
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
Goodwill disposed	[1]	0
Natural Gas and Electricity [Member]
Goodwill [Line Items]
Goodwill		7,900	7,900
Accumulated adjustments		0	0
Goodwill, net		7,900	$ 7,900
Goodwill disposed	[1]	$ 0

[1] Reflects the impact from the disposition of certain assets and operations in a non-strategic market of the propane segment (Note 3).

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Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands		Dec. 30, 2017	Sep. 30, 2017
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross		$ 525,218	$ 525,663
Accumulated amortization		(317,318)	(305,787)
Other intangible assets, net		207,900	219,876
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	[1],[2]	491,461	492,656
Accumulated amortization		(290,131)	(279,287)
Non-compete Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross	[1]	31,790	31,040
Accumulated amortization		(25,906)	(25,242)
Other [Member]
Finite Lived Intangible Assets [Line Items]
Other intangible assets, gross		1,967	1,967
Accumulated amortization		$ (1,281)	$ (1,258)

[1] Reflects the impact from the acquisition (Note 3).

[2] Reflects the impact from the disposition of certain assets and operations in a non-strategic market of the propane segment (Note 3).

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Net Income Per Common Unit - Additional Information (Details) - shares	3 Months Ended
	Dec. 30, 2017	Dec. 24, 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)	191,893	190,259

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Long-Term Borrowings - Summary of Long-Term Borrowings (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Debt Instrument [Line Items]
Long-term borrowings	$ 1,334,945	$ 1,287,645
Less: unamortized debt issuance costs	(14,976)	(15,481)
Long-term borrowings	1,319,969	1,272,164
5.5% Senior Notes due June 1, 2024 [Member]
Debt Instrument [Line Items]
Long-term borrowings	525,000	525,000
5.75% Senior Notes due March 1, 2025 [Member]
Debt Instrument [Line Items]
Long-term borrowings	250,000	250,000
5.875% Senior Notes due March 1, 2027 [Member]
Debt Instrument [Line Items]
Long-term borrowings	350,000	350,000
Revolving Credit Facility due March 3, 2021 [Member]
Debt Instrument [Line Items]
Long-term borrowings	$ 209,945	$ 162,645

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Long-Term Borrowings - Summary of Long-Term Borrowings (Parenthetical) (Details)	3 Months Ended
	Dec. 30, 2017	Sep. 30, 2017
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

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Long-Term Borrowings - Additional Information (Details)		3 Months Ended
	Mar. 03, 2016 USD ($)	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)
Debt Instrument [Line Items]
Long-term borrowings						$ 1,319,969,000	$ 1,272,164,000
Margin over basis rate (in hundredths)						1.00%
Notional Amount						$ 100,000,000
Consolidated fixed charge coverage ratio, minimum						1.75
Long-term debt maturities, 2018						$ 0
Long-term debt maturities, 2019						0
Long-term debt maturities, 2020						0
Long-term debt maturities, 2021						209,945,000
Long-term debt maturities, 2022						0
Long-term debt maturities, 2022 and thereafter						1,125,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Standby letters of credit issued under the Revolving Credit Facility						$ 45,626,000
Amended Credit Agreement Due 2021 [Member]
Debt Instrument [Line Items]
Consolidated interest coverage ratio, minimum						2.5
Total consolidated leverage ratio, maximum						5.95
Senior secured unconsolidated leverage ratio maximum						3.0
Weighted average interest rate (in hundredths)						3.80%
Amended Credit Agreement Due 2021 [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
Description of applicable interest rate on borrowings						Federal Funds Rate
Margin over basis rate (in hundredths)						0.50%
Amended Credit Agreement Due 2021 [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Description of applicable interest rate on borrowings						LIBOR
Margin over basis rate (in hundredths)						1.00%
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
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%
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
Date public offering completed						May 27, 2014
Aggregate principal amount						$ 525,000,000
Percentage of principal amount at which debt was issued (in hundredths)						100.00%
Percentage of the principal amount repurchase offer under change of control provision (in hundredths)						101.00%
Repurchase of debt due to decline in rating after consummation of change of control, period						90 days
7.5% Senior Notes due October 1, 2018 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)						7.50%
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
Date public offering completed						Feb. 25, 2015
Aggregate principal amount						$ 250,000,000
Percentage of principal amount at which debt was issued (in hundredths)						100.00%
Percentage of the principal amount repurchase offer under change of control provision (in hundredths)						101.00%
Repurchase of debt due to decline in rating after consummation of change of control, period						90 days
7.375% Senior Notes due 2020 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)						7.375%
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
Date public offering completed						Feb. 14, 2017
Aggregate principal amount						$ 350,000,000
Percentage of principal amount at which debt was issued (in hundredths)						100.00%
Percentage of the principal amount repurchase offer under change of control provision (in hundredths)						101.00%
Repurchase of debt due to decline in rating after consummation of change of control, period						90 days
7.375% Senior Notes due August 1, 2021 [Member]
Debt Instrument [Line Items]
Stated interest rate (in hundredths)						7.375%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maturity date						Mar. 03, 2021
Long-term borrowings						$ 209,945,000	$ 162,645,000
Revolving Credit Facility [Member] | Amended Credit Agreement Due 2021 [Member]
Debt Instrument [Line Items]
Credit Facility, maximum amount	$ 500,000,000
Revolving credit facility, term	5 years

XML

Distributions of Available Cash - Additional Information (Details)	3 Months Ended
	Dec. 30, 2017 $ / shares
Distributions Made To Members Or Limited Partners [Abstract]
Distributions to its partners	45 days
Declaration date of quarterly distribution	Jan. 25, 2018
Distributions paid (in dollars per unit)	$ 0.60
Common Unit distribution on an annualized basis (in dollars per unit)	$ 2.40
Distribution date of quarterly distribution	Feb. 13, 2018
Date of record of quarterly distribution	Feb. 06, 2018

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Unit-Based Compensation Arrangements - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended
	Aug. 06, 2013	Dec. 30, 2017	Dec. 24, 2016	Sep. 30, 2017
Distribution Equivalent Rights Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense		$ 207	$ 0
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
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 issued 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		424,431
Aggregate grant date fair value of restricted units awarded		$ 8,285
Unrecognized compensation cost		$ 8,627
Weighted-average recognition period of compensation cost		1 year 1 month 7 days
Compensation expense		$ 2,649	2,875
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		$ 1,632	$ (986)
Liability included within accrued employment and benefit costs (or other liabilities, as applicable) related to estimated future payments under the LTIP		$ 3,268		$ 1,637

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Unit-Based Compensation Arrangements - Summary of Activity for the Restricted Units Plans (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Dec. 30, 2017 $ / shares shares
Restricted Units [Rollforward]
Outstanding, beginning of period (in units) | shares	621,045
Awarded (in units) | shares	424,431
Forfeited (in units) | shares	(9,226)
Vested (with Common Units issued) (in units) | shares	(319,109)
Outstanding, end of period (in units) | shares	717,141
Weighted Average Grant Date Fair Value Per Unit [Abstract]
Outstanding, beginning of period (in dollars per unit) | $ / shares	$ 22.10
Awarded (in dollars per unit) | $ / shares	19.52
Forfeited (in dollars per unit) | $ / shares	(19.78)
Vested (with Common Units issued) (in dollars per unit) | $ / shares	(24.48)
Outstanding, end of period (in dollars per unit) | $ / shares	$ 19.54

XML

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Accrued insurance liabilities	$ 70,536	$ 68,581
Portion of the estimated liability that exceeds insurance deductibles	$ 18,626	$ 18,626

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Guarantees - Additional Information (Details)	3 Months Ended
	Dec. 30, 2017 USD ($)
Guarantees [Abstract]
Transportation equipment remaining lease periods	2024
Maximum potential amount of aggregate future payments Partnership could be required to make	$ 16,816,000

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Pension Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2017	Dec. 24, 2016
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 69	$ 96
Amortization of prior service credits	(124)	0
Amortization of net loss (gain)	(164)	(97)
Net periodic benefit cost	(219)	(1)
Pension Benefits [Member] | United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	944	1,041
Expected return on plan assets	(474)	(537)
Amortization of net loss (gain)	921	1,300
Net periodic benefit cost	$ 1,391	$ 1,804

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Pension Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2017	Dec. 24, 2016	Sep. 30, 2017
Components of net periodic benefit costs included in operating expenses [Abstract]
Contribution to defined pension benefit plan	$ 0	$ 1,396
Estimated obligation due to full withdrawal multi employer pension plans	23,389		$ 23,665
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	10,290
Contribution to defined pension benefit plan	0
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	1,243
Employer contribution for postretirement health care and life insurance	$ 258

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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
		Dec. 30, 2017	Dec. 24, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		$ (28,812)	$ (45,832)
Other comprehensive income before reclassifications		0	(5)
Reclassifications to earnings		757	1,403
Other comprehensive income		757	1,398
Balance ending		(28,055)	(44,434)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		0	(205)
Other comprehensive income before reclassifications		0	(5)
Reclassifications to earnings	[1]	0	200
Other comprehensive income		0	195
Balance ending		0	(10)
Pension Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		(37,311)	(51,391)
Other comprehensive income		921	1,300
Balance ending		(36,390)	(50,091)
Amortization of Net Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications to earnings	[2]	921	1,300
Post-Retirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance beginning		8,499	5,764
Other comprehensive income		(164)	(97)
Balance ending		8,335	5,667
Amortization of Net (Gain) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications to earnings	[2]	$ (164)	$ (97)

[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 13, “Pension Plans and Other Postretirement Benefits.”

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 30, 2017	Sep. 29, 2018
Income Taxes [Line Items]
Federal corporate income tax rate	35.00%
Discrete deferred tax benefit	$ 1,086
Scenario, Forecast [Member]
Income Taxes [Line Items]
Federal corporate income tax rate		21.00%

XML

Segment Information - Additional Information (Details)	3 Months Ended
	Dec. 30, 2017 Segment
Segment Reporting [Abstract]
Number of operating segments	4
Number of reportable segments	3

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Segment Information - Disclosure by Reportable Segment and Reconciliation of Total Operating Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended
		Dec. 30, 2017	Dec. 24, 2016	Sep. 30, 2017
Revenues [Abstract]
Total revenues		$ 373,277	$ 317,307
Operating income (loss):
Total operating income		55,748	53,485
Reconciliation to net income:
Interest expense, net		19,514	18,831
(Benefit from) provision for income taxes		(934)	165
Net income		37,168	34,489
Depreciation and amortization [Abstract]
Total depreciation and amortization		31,131	31,261
Assets [Abstract]
Total assets		2,236,372		$ 2,171,283
Operating/Reportable Segments [Member] | Propane [Member]
Revenues [Abstract]
Total revenues		322,130	269,459
Operating income (loss):
Total operating income	[1]	74,551	74,663
Depreciation and amortization [Abstract]
Total depreciation and amortization		27,781	27,384
Assets [Abstract]
Total assets		2,110,715		2,066,997
Operating/Reportable Segments [Member] | Fuel Oil and Refined Fuels [Member]
Revenues [Abstract]
Total revenues		25,315	22,096
Operating income (loss):
Total operating income		3,824	2,848
Depreciation and amortization [Abstract]
Total depreciation and amortization		579	631
Assets [Abstract]
Total assets		54,943		49,863
Operating/Reportable Segments [Member] | Natural Gas and Electricity [Member]
Revenues [Abstract]
Total revenues		13,147	13,067
Operating income (loss):
Total operating income		3,485	3,120
Depreciation and amortization [Abstract]
Total depreciation and amortization		0	0
Assets [Abstract]
Total assets		15,816		12,455
Operating/Reportable Segments [Member] | All Other [Member]
Revenues [Abstract]
Total revenues		12,685	12,685
Operating income (loss):
Total operating income		(5,233)	(5,206)
Depreciation and amortization [Abstract]
Total depreciation and amortization		50	70
Assets [Abstract]
Total assets		3,753		2,147
Operating/Reportable Segments [Member] | Corporate [Member]
Operating income (loss):
Total operating income		(20,879)	(21,940)
Depreciation and amortization [Abstract]
Total depreciation and amortization		2,721	$ 3,176
Assets [Abstract]
Total assets		$ 51,145		$ 39,821

[1] Includes the loss on sale of business of $4,823 for the three months ended December 30, 2017 (see Note 3).

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Segment Information - Disclosure by Reportable Segment and Reconciliation of Total Operating Segment Information (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2017	Dec. 24, 2016
Segment Reporting Information [Line Items]
Loss on sale of business	$ 4,823	$ 0
Operating/Reportable Segments [Member] | Propane [Member]
Segment Reporting Information [Line Items]
Loss on sale of business	$ 4,823