Fair Value Measurement (Tables)

3 Months Ended

Oct. 31, 2014

Schedule of fair value assets and liabilities

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2014 and July 31, 2014:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)			Total
October 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,138		$	—		$	2,138
Propane commodity derivatives	$	—	$	1,278		$	—		$	1,278
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,847	)	$	—		$	(4,847	)
Propane commodity derivatives	$	—	$	(8,241	)	$	—		$	(8,241	)
Contingent consideration	$	—	$	—		$	(4,600	)	$	(4,600	)
July 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,101		$	—		$	2,101
Propane commodity derivatives	$	—	$	7,006		$	—		$	7,006
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(5,075	)	$	—		$	(5,075	)
Propane commodity derivatives	$	—	$	(83	)	$	—		$	(83	)
Contingent consideration	$	—	$	—		$	(6,400	)	$	(6,400	)

Level 3 fair value rollforward

The following is a reconciliation of the opening and closing balances for the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period ended October 31, 2014:

	Contingent consideration liability
Balance at July 31, 2014	$	6,400
Increase in fair value related to accretion	200
Change in fair value included in earnings	(2,000		)
Balance at October 31, 2014	$	4,600

Quantitative information of unobservable inputs

Quantitative information about Level 3 fair value measurements

	Fair value at October 31, 2014		Valuation technique		Unobservable input	Range	Weighted average
Contingent consideration liability	$	4,600	Discounted cash flow	A.	Weighted average cost of capital (WACC)	N/A	20	%
				B.	Probability of forecast	10% - 75%	N/A

Sensitivity of unobservable inputs

As of October 31, 2014, fluctuations in these inputs could have the following effect (in thousands):

	Increase/(decrease)
	5% increase in WACC			5% decrease in WACC		10% increase in best earnings forecast probability		10% decrease in best earnings forecast probability
Change in the fair value of contingent consideration	$	(350	)	$	360	$	1,060	$	(1,090	)

Ferrellgas, L.P. [Member]

Schedule of fair value assets and liabilities

The following table presents Ferrellgas, L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2014 and July 31, 2014:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)			Total
October 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,138		$	—		$	2,138
Propane commodity derivatives	$	—	$	1,278		$	—		$	1,278
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,847	)	$	—		$	(4,847	)
Propane commodity derivatives	$	—	$	(8,241	)	$	—		$	(8,241	)
Contingent consideration	$	—	$	—		$	(4,600	)	$	(4,600	)
July 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,101		$	—		$	2,101
Propane commodity derivatives	$	—	$	7,006		$	—		$	7,006
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(5,075	)	$	—		$	(5,075	)
Propane commodity derivatives	$	—	$	(83	)	$	—		$	(83	)
Contingent consideration	$	—	$	—		$	(6,400	)	$	(6,400	)

Level 3 fair value rollforward

The following is a reconciliation of the opening and closing balances for the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period ended October 31, 2014:

	Contingent consideration liability
Balance at July 31, 2014	$	6,400
Increase in fair value related to accretion	200
Change in fair value included in earnings	(2,000		)
Balance at October 31, 2014	$	4,600

Quantitative information of unobservable inputs

Quantitative information about Level 3 fair value measurements

	Fair value at October 31, 2014		Valuation technique		Unobservable input	Range	Weighted average
Contingent consideration liability	$	4,600	Discounted cash flow	A.	Weighted average cost of capital (WACC)	N/A	20	%
				B.	Probability of forecast	10% - 75%	N/A

Sensitivity of unobservable inputs

As of October 31, 2014, fluctuations in these inputs could have the following effect (in thousands):

	Increase/(decrease)
	5% increase in WACC			5% decrease in WACC		10% increase in best earnings forecast probability		10% decrease in best earnings forecast probability
Change in the fair value of contingent consideration	$	(350	)	$	360	$	1,060	$	(1,090	)