Derivatives and Hedging-Fair Value Measurements and Accounting for the Offsetting of Certain Contracts (Tables)

6 Months Ended

Mar. 31, 2015

Partnership's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The Partnership had no assets or liabilities that are measured at fair value on a nonrecurring basis subsequent to their initial recognition. The Partnership’s financial assets and liabilities measured at fair value on a recurring basis are listed on the following table.


(In thousands)					Fair Value Measurements at Reporting Date Using:
Derivatives Not Designated as Hedging Instruments Under FASB ASC 815-10	Balance Sheet Location	Total			Quoted Prices in Active Markets for Identical Assets Level 1			Significant Other Observable Inputs Level 2

Asset Derivatives at March 31, 2015
Commodity contracts	Fair asset and fair liability value of derivative instruments	$	34,566		$	8,124		$	26,442
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net balance		1,093			180			913

Commodity contract assets at March 31, 2015		$	35,659		$	8,304		$	27,355


Liability Derivatives at March 31, 2015
Commodity contracts	Fair liability and fair asset value of derivative instruments	$	(41,647	)	$	(7,591	)	$	(34,056	)
Commodity contracts	Long-term derivative liabilities included in the other long-term liabilities balance		(1,063	)		(122	)		(941	)

Commodity contract liabilities at March 31, 2015		$	(42,710)		$	(7,713	)	$	(34,997	)


Asset Derivatives at September 30, 2014
Commodity contracts	Fair asset and fair liability value of derivative instruments	$	26,263		$	2,328		$	23,935

Commodity contract assets at September 30, 2014		$	26,263		$	2,328		$	23,935


Liability Derivatives at September 30, 2014
Commodity contracts	Fair liability and fair asset value of derivative instruments	$	(36,279	)	$	—		$	(36,279	)

Commodity contract liabilities at September 30, 2014		$	(36,279)		$	—		$	(36,279)


(In thousands)	The Effect of Derivative Instruments on the Statement of Operations
		Amount of (Gain) or Loss Recognized
Derivatives Not Designated as Hedging Instruments Under FASB ASC 815-10	Location of (Gain) or Loss Recognized in Income on Derivative	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014			Six Months Ended March 31, 2015			Six Months Ended March 31, 2014
Closed Positions
Commodity contracts	Cost of product (a)	$	17,322		$	3,216		$	10,517		$	8,527
Commodity contracts	Cost of installations and service (a)	$	859		$	(87	)	$	1,345		$	(95	)
Commodity contracts	Delivery and branch expenses (a)	$	991		$	(75	)	$	1,465		$	(114	)
(a) Represents realized closed positions and includes the cost of options as they expire.

Open Positions
Commodity contracts	(Increase) / decrease in the fair value of derivative instruments	$	(12,631	)	$	4,105		$	(4,341	)	$	(1,353	)

Partnership's Derivatives Assets (Liabilities) Offset by Counterparty

The Partnership’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table.


(In thousands)									Gross Amounts Not Offset in the Statement of Financial Position
Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities)	Gross Assets Recognized		Gross Liabilities Offset in the Statement of Financial Position			Net Assets (Liabilities) Presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Fair asset value of derivative instruments	$	8,159	$	(7,590	)	$	569		$	—	$	—	$	569
Long-term derivative assets included in deferred charges and other assets, net		672		(550	)		122			—		—		122
Fair liability value of derivative instruments		26,407		(34,057	)		(7,650	)		—		—		(7,650	)
Long-term derivative liabilities included in other long-term liabilities, net		421		(513	)		(92	)						(92	)

Total at March 31, 2015	$	35,659	$	(42,710	)	$	(7,051	)	$	—	$	—	$	(7,051	)

Fair asset value of derivative instruments	$	2,342	$	—		$	2,342		$	—	$	—	$	2,342
Fair liability value of derivative instruments		23,921		(36,279	)		(12,358	)		—		—		(12,358	)

Total at September 30, 2014	$	26,263	$	(36,279	)	$	(10,016	)	$	—	$	—	$	(10,016	)

Partnership's Derivatives Assets (Liabilities) Offset by Counterparty

The Partnership’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table.


(In thousands)									Gross Amounts Not Offset in the Statement of Financial Position
Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities)	Gross Assets Recognized		Gross Liabilities Offset in the Statement of Financial Position			Net Assets (Liabilities) Presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Fair asset value of derivative instruments	$	8,159	$	(7,590	)	$	569		$	—	$	—	$	569
Long-term derivative assets included in deferred charges and other assets, net		672		(550	)		122			—		—		122
Fair liability value of derivative instruments		26,407		(34,057	)		(7,650	)		—		—		(7,650	)
Long-term derivative liabilities included in other long-term liabilities, net		421		(513	)		(92	)						(92	)

Total at March 31, 2015	$	35,659	$	(42,710	)	$	(7,051	)	$	—	$	—	$	(7,051	)

Fair asset value of derivative instruments	$	2,342	$	—		$	2,342		$	—	$	—	$	2,342
Fair liability value of derivative instruments		23,921		(36,279	)		(12,358	)		—		—		(12,358	)

Total at September 30, 2014	$	26,263	$	(36,279	)	$	(10,016	)	$	—	$	—	$	(10,016	)