Supplemental Financial Statement Information

6 Months Ended

Jan. 31, 2018

Supplemental Financial Statement Information

Supplemental financial statement information

Inventories consist of the following:

	January 31, 2018		July 31, 2017
Propane gas and related products	$	81,644	$	67,049
Appliances, parts and supplies, and other	28,448		25,503
Inventories	$	110,092	$	92,552

In addition to inventories on hand, Ferrellgas enters into contracts to take delivery of propane for supply procurement purposes with terms that generally do not exceed 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2018, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 81.9 million gallons of propane at fixed prices.

Other assets, net consist of the following:

	January 31, 2018		July 31, 2017
Notes receivable, less current portion	$	36,371	$	32,500
Other	41,341		41,557
Other assets, net	$	77,712	$	74,057

Other current liabilities consist of the following:

	January 31, 2018		July 31, 2017
Accrued interest	$	18,975	$	18,671
Customer deposits and advances	24,676		25,541
Other	96,859		82,012
Other current liabilities	$	140,510	$	126,224

Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:

	For the three months ended January 31,				For the six months ended January 31,
	2018		2017		2018		2017
Operating expense	$	54,613	$	47,157	$	97,928	$	88,883
Depreciation and amortization expense	1,123		996		2,235		2,022
Equipment lease expense	6,296		6,652		12,364		13,318
Total shipping and handling expenses	$	62,032	$	54,805	$	112,527	$	104,223

During the quarter ended January 31, 2018, Ferrellgas committed to a plan to dispose of all of its rail cars utilized in the Midstream operations segment and as a result, reclassified 1,292 rail cars from "Property, plant and equipment, net" to "Assets held for sale" on our condensed consolidated balance sheets as of January 31, 2018. For the three and six months ended January 31, 2018, "Loss on asset sales and disposals" includes a loss of $35.5 million related to the write-down of these rail cars classified as "Assets held for sale". On February 20, 2018, Ferrellgas completed the sale of 1,072 of these rail cars and received approximately $47.0 million in cash. Proceeds from the transaction were used to reduce outstanding debt on Ferrellgas' secured credit facility.

During the quarter ended January 31, 2018, Ferrellgas completed the sale of Bridger Energy, LLC in the Midstream operations segment in exchange for an $8.5 million secured promissory note due in May 2020. For the three and six months ended January 31, 2018, "Loss on asset sales and disposals" includes a loss of $3.6 million related to this sale. 

"Loss on asset sales and disposals" during the three and six months ended January 31, 2018 and 2017 consists of:

	For the three months ended January 31,				For the six months ended January 31,
	2018		2017		2018		2017
Loss on assets held for sale	$	35,515	$	—	$	35,515	$	—
Loss on sale of assets and other	3,734		45		4,629		6,468
Loss on asset sales and disposals	$	39,249	$	45	$	40,144	$	6,468

Certain cash flow and significant non-cash activities are presented below:

	For the six months ended January 31,
	2018		2017
Cash paid for:
Interest	$	78,682	$	69,572
Income taxes	$	12	$	26
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,508	$	—
Change in accruals for property, plant and equipment additions	$	47	$	(100	)

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information

Supplemental financial statement information

Inventories consist of the following:

	January 31, 2018		July 31, 2017
Propane gas and related products	$	81,644	$	67,049
Appliances, parts and supplies, and other	28,448		25,503
Inventories	$	110,092	$	92,552

In addition to inventories on hand, Ferrellgas, L.P. enters into contracts to take delivery of propane for supply procurement purposes with terms that generally do not exceed 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2018, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 81.9 million gallons of propane at fixed prices.

Other assets, net consist of the following:

	January 31, 2018		July 31, 2017
Notes receivable, less current portion	$	36,371	$	32,500
Other	41,341		41,557
Other assets, net	$	77,712	$	74,057

Other current liabilities consist of the following:

	January 31, 2018		July 31, 2017
Accrued interest	$	15,041	$	14,737
Customer deposits and advances	24,676		25,541
Other	96,874		81,738
Other current liabilities	$	136,591	$	122,016

Shipping and handling expenses are classified in the following condensed consolidated statements of operations line items:

	For the three months ended January 31,				For the six months ended January 31,
	2018		2017		2018		2017
Operating expense	$	54,613	$	47,157	$	97,928	$	88,883
Depreciation and amortization expense	1,123		996		2,235		2,022
Equipment lease expense	6,296		6,652		12,364		13,318
Total shipping and handling expenses	$	62,032	$	54,805	$	112,527	$	104,223

During the quarter ended January 31, 2018, Ferrellgas, L.P. committed to a plan to dispose of all of its rail cars utilized in the Midstream operations segment and as a result, reclassified 1,292 rail cars from "Property, plant and equipment, net" to "Assets held for sale" on our condensed consolidated balance sheets as of January 31, 2018. For the three and six months ended January 31, 2018, "Loss on asset sales and disposals" includes a loss of $35.5 million related to the write-down of these rail cars classified as "Assets held for sale". On February 20, 2018, Ferrellgas, L.P. completed the sale of 1,072 of these rail cars and received approximately $47.0 million in cash. Proceeds from the transaction were used to reduce outstanding debt on Ferrellgas L.P.'s secured credit facility.

During the quarter ended January 31, 2018, Ferrellgas, L.P. completed the sale of Bridger Energy, LLC in the Midstream operations segment in exchange for an $8.5 million secured promissory note due in May 2020. For the three and six months ended January 31, 2018, "Loss on asset sales and disposals" includes a loss of $3.6 million related to this sale. 

"Loss on asset sales and disposals" during the three and six months ended January 31, 2018 and 2017 consists of:

	For the three months ended January 31,				For the six months ended January 31,
	2018		2017		2018		2017
Loss on assets held for sale	$	35,515	$	—	35,515		—
Loss on sale of assets and other	3,734		45		4,629		6,468
Loss on asset sales and disposals	$	39,249	$	45	$	40,144	$	6,468

Certain cash flow and significant non-cash activities are presented below:

	For the six months ended January 31,
	2018		2017
Cash paid for:
Interest	$	63,286	$	61,723
Income taxes	$	1	$	25
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	1,508	$	—
Change in accruals for property, plant and equipment additions	$	47	$	(100	)