Goodwill And Intangible Assets, Net

12 Months Ended

Jul. 31, 2014

Goodwill and intangible assets, net

Goodwill and intangible assets, net consist of the following:



	July 31, 2014							July 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Goodwill, net	$	273,210	$	—		$	273,210	$	253,362	$	—		$	253,362

Intangible assets, net
Amortized intangible assets
Customer related	$	500,100	$	(322,277	)	$	177,823	$	416,620	$	(302,179	)	$	114,441
Non-compete agreements	63,933		(43,120		)	20,813		47,974		(40,994		)	6,980
Permits and favorable lease arrangements	10,683		(119		)	10,564		—		—			—
Other	9,177		(4,592		)	4,585		9,172		(3,445		)	5,727
	583,893		(370,108		)	213,785		473,766		(346,618		)	127,148

Unamortized intangible assets
Trade names & trademarks	62,386					62,386		62,368					62,368
Total intangible assets, net	$	646,279	$	(370,108	)	$	276,171	$	536,134	$	(346,618	)	$	189,516

Changes in the carrying amount of goodwill, by reportable segment, are as follows:



	Propane and related equipment sales			Midstream operations		Total
Balance July 31, 2012	$	248,944		$	—	$	248,944
Acquisitions	4,640			—		4,640
Other	(222		)	—		(222		)
Balance July 31, 2013	253,362			—		253,362
Acquisitions	2,922			16,957		19,879
Other	(31		)	—		(31		)
Balance July 31, 2014	$	256,253		$	16,957	$	273,210

Customer related intangible assets have estimated lives of 12 to 15 years, permits and favorable lease arrangements have estimated lives of 15 years while non-compete agreements and other intangible assets have estimated lives ranging from two to 10 years. Ferrellgas intends to utilize all acquired trademarks and trade names and does not believe there are any legal, regulatory, contractual, competitive, economical or other factors that would limit their useful lives. Therefore, trademarks and trade names have indefinite useful lives. Customer related intangibles, permits and favorable lease arrangements non-compete agreements and other intangibles carry a weighted average life of eleven years, fifteen years, seven years and six years, respectively.



Aggregate amortization expense related to intangible assets, net:
For the year ended July 31,
2014	$	23,490
2013	21,725
2012	21,604



Estimated amortization expense:
For the year ended July 31,
2015	$	27,950
2016	26,164
2017	25,589
2018	23,034
2019	17,247

Ferrellgas, L.P. [Member]

Goodwill And Intangible Assets, Net

Goodwill and intangible assets, net

Goodwill and intangible assets, net consist of the following:



	July 31, 2014							July 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Goodwill, net	$	273,210	$	—		$	273,210	$	253,362	$	—		$	253,362

Intangible assets, net
Amortized intangible assets
Customer related	$	500,100	$	(322,277	)	$	177,823	$	416,620	$	(302,179	)	$	114,441
Non-compete agreements	63,933		(43,120		)	20,813		47,974		(40,994		)	6,980
Permits and favorable lease arrangements	10,683		(119		)	10,564		—		—			—
Other	9,177		(4,592		)	4,585		9,172		(3,445		)	5,727
	583,893		(370,108		)	213,785		473,766		(346,618		)	127,148

Unamortized intangible assets
Trade names & trademarks	62,386					62,386		62,368					62,368
Total intangible assets, net	$	646,279	$	(370,108	)	$	276,171	$	536,134	$	(346,618	)	$	189,516

Changes in the carrying amount of goodwill, by reportable segment, are as follows:



	Propane and related equipment sales			Midstream operations		Total
Balance July 31, 2012	$	248,944		$	—	$	248,944
Acquisitions	4,640			—		4,640
Other	(222		)	—		(222		)
Balance July 31, 2013	253,362			—		253,362
Acquisitions	2,922			16,957		19,879
Other	(31		)	—		(31		)
Balance July 31, 2014	$	256,253		$	16,957	$	273,210

Customer related intangibles have estimated lives of 12 to 15 years, permits and favorable lease arrangements have estimated lives of 15 years while non-compete agreements and other intangible assets have estimated lives ranging from two to 10 years. Ferrellgas, L.P. intends to utilize all acquired trademarks and trade names and does not believe there are any legal, regulatory, contractual, competitive, economical or other factors that would limit their useful lives. Therefore, trademarks and trade names have indefinite useful lives. Customer related intangibles, permits and favorable lease arrangements, non-compete agreements and other intangibles carry a weighted average life of eleven years, fifteen years, seven years and six years, respectively.



Aggregate amortization expense related to intangible assets, net:
For the year ended July 31,
2014	$	23,490
2013	21,725
2012	21,604



Estimated amortization expense:
For the year ended July 31,
2015	$	27,950
2016	26,164
2017	25,589
2018	23,034
2019	17,247

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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