Company: SPH
Filing Date: 2025-02-12
Form Type: S-3
Source: 0001193125-25-024546
Chunk: 28

Company: SUBURBAN PROPANE PARTNERS LP
Filing Date: 2025-02-12
Form: S-3
Chunk 28
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 have made the election permitted by Section 754 of the Code. That election is irrevocable without the consent of the IRS. The election
will generally permit us to adjust a unit purchaser’s tax basis in our assets (“inside basis”) under Section 743(b) of the Code to reflect the unitholder’s purchase price (such adjustment, a “Section 743(b)
adjustment”) if the unitholder purchases from an existing unitholder. The Section 743(b) adjustment does not apply to a unitholder who purchases common units directly from us in an issuance such as this one, and it belongs only to the
purchaser and not to other unitholders. For purposes of this discussion, the inside basis in our assets with respect to a unitholder will be considered to have two components: (i) the unitholder’s share of our tax basis in our assets
(“common basis”) and (ii) the unitholder’s Section 743(b) adjustment to that basis.

The calculations involved in
the Section 754 election are complex, particularly as they relate to publicly traded partnerships, and will be made on the basis of certain simplifying assumptions as to the purchase price paid for particular common units and other matters.
Moreover, we intend to depreciate the portion of a Section 743(b) adjustment attributable to unrealized appreciation in the value of any property contributed to us consistent with the methods employed by other publicly traded partnerships and
the Treasury Regulations under Section 743 of the Code. Due to these simplifying assumptions and the particular methods we have chosen, the IRS could seek to reallocate some or all of any Section 743(b) adjustments we make to the basis of
certain assets. Should the IRS require a different basis adjustment to be made, and should, in our opinion, the expense of compliance exceed the benefit of the election, we may seek permission from the IRS to revoke our Section 754 election. If
permission is granted, a subsequent purchaser of our common units may be allocated more income than would have been allocated had the election not been revoked.

We have adopted the remedial allocation method as to all our properties. Where the remedial allocation method is adopted, the Treasury
Regulations under Section 743 of the Internal Revenue Code require a portion of the Section 743(b) adjustment that is attributable to unrealized appreciation in the value of Contributed Property

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that is subject to depreciation under Section 168 of the Internal Revenue Code and whose book