Company: SPH
Filing Date: 2025-02-12
Form Type: S-3
Source: 0001193125-25-024546
Chunk: 21

Company: SUBURBAN PROPANE PARTNERS LP
Filing Date: 2025-02-12
Form: S-3
Chunk 21
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 “Section 751 Assets.” To that extent, the unitholder will be treated as having been distributed the unitholder’s proportionate share of the
Section 751 Assets and then having exchanged those assets with us in return for the non-pro rata portion of the deemed distribution made to the unitholder. This latter deemed exchange will generally
result in the unitholder’s realization of ordinary income, which will equal the excess of (i) the non-pro rata portion of that distribution over (ii) the unitholder’s tax basis (often zero)
for the share of Section 751 Assets deemed relinquished in the exchange.

Basis of Common Units

A unitholder’s initial tax basis in our common units will be the amount the unitholder paid for the common units plus the
unitholder’s share of our nonrecourse liabilities. That basis will be increased by the unitholder’s share of our income, by any increases in the unitholder’s share of our nonrecourse liabilities, and, on the disposition of a unit, by
the unitholder’s share of certain items related to business interest not yet deductible by the unitholder due to applicable limitations. Please read “— Limitations on Interest Deductions.” That basis will be decreased, but
not below zero, by distributions from us, by the unitholder’s share of our losses, by any decreases in the unitholder’s share of our nonrecourse liabilities, by the unitholder’s share of our excess business interest (generally, the
excess of our business interest over the amount that is deductible) and by the unitholder’s share of our expenditures that are not deductible in computing taxable income and are not required to be capitalized.

Limitations on Deductibility of Losses

The deduction by a unitholder of the unitholder’s share of our losses will be limited to the unitholder’s tax basis in the
unitholder’s common units and, in the case of an individual unitholder or corporate unitholder that is a

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closely held corporation, to the amount for which the unitholder is considered to be “at risk” with respect to our activities (as described below), if that is less than the
unitholder’s tax basis. A unitholder subject to these limitations must recapture losses deducted in previous years to the extent that distributions cause the unitholder’s at-risk amount to be
less than