Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Apr. 30, 2014

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of fair value derivatives that were designated as hedging instruments in Ferrellgas’ condensed consolidated balance sheets as of April 30, 2014 and July 31, 2013:  

	April 30, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	8,420	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	1,863		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,192		Other current liabilities	—
Interest rate swap agreements	Other assets, net	190		Other liabilities	6,254
	Total	$	12,665	Total	$	6,254
	July 31, 2013
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	1,400	Other current liabilities	$	569
Propane commodity derivatives	Other assets, net	1,132		Other liabilities	338
Interest rate swap agreements	Prepaid expenses and other current assets	3,341		Other current liabilities	—
Interest rate swap agreements	Other assets, net	442		Other liabilities	4,998
	Total	$	6,315	Total	$	5,905

Fair Value Hedge Derivative Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of earnings for the three and nine months endedApril 30, 2014 and 2013 due to derivatives designated as fair value hedging instruments:  

		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item)
Derivative Instrument	Location of Gain Recognized on Derivative	For the three months ended April 30,				For the three months ended April 30,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	627	$	805	$	(2,275	)	$	(5,469	)

		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item)
Derivative Instrument	Location of Gain Recognized on Derivative	For the nine months ended April 30,				For the nine months ended April 30,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,948	$	2,412	$	(9,915	)	$	(16,406	)

Cash Flow Hedge Derivative Effect on Comprehensive Income

The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income for the three and nine months endedApril 30, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:

	For the three months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	(165	)	Cost of product sold- propane and other gas liquids sales	$	(3,885	)
Interest rate swap agreements	825			Interest expense	—
	$	660			$	(3,885	)

	For the three months ended April 30, 2013
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	1,130		Cost of product sold- propane and other gas liquids sales	$	(1,723	)
Interest rate swap agreements	(98		)	Interest expense	—
	$	1,032			$	(1,723	)

	For the nine months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	17,298		Cost of product sold- propane and other gas liquids sales	$	(8,640	)
Interest rate swap agreements	(251		)	Interest expense	—
	$	17,047			$	(8,640	)

	For the nine months ended April 30, 2013
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	2,044		Cost of product sold- propane and other gas liquids sales	$	(10,348	)
Interest rate swap agreements	(941		)	Interest expense	—
	$	1,103			$	(10,348	)

Changes in Derivative Value Effect on Other Comprehensive Income (Loss)

The changes in derivatives included in AOCI for the nine months endedApril 30, 2014 and 2013 were as follows:  

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,298			2,044
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(8,640		)	10,348
Change in value of risk management interest rate derivatives	(251		)	(941		)
Ending balance	$	10,473		$	(1,348	)

Ferrellgas, L.P. [Member]

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value derivatives that were designated as hedging instruments in Ferrellgas, L.P.’s condensed consolidated balance sheets as of April 30, 2014 and July 31, 2013: 

	April 30, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	8,420	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	1,863		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,192		Other current liabilities	—
Interest rate swap agreements	Other assets, net	190		Other liabilities	6,254
	Total	$	12,665	Total	$	6,254
	July 31, 2013
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	1,400	Other current liabilities	$	569
Propane commodity derivatives	Other assets, net	1,132		Other liabilities	338
Interest rate swap agreements	Prepaid expenses and other current assets	3,341		Other current liabilities	—
Interest rate swap agreements	Other assets, net	442		Other liabilities	4,998
	Total	$	6,315	Total	$	5,905

Fair Value Hedge Derivative Effect on Earnings

The following table provides a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of earnings for the nine months endedApril 30, 2014 and 2013 due to derivatives designated as fair value hedging instruments:  

		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item)
Derivative Instrument	Location of Gain Recognized on Derivative	For the three months ended April 30,				For the three months ended April 30,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	627	$	805	$	(2,275	)	$	(5,469	)

		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item)
Derivative Instrument	Location of Gain Recognized on Derivative	For the nine months ended April 30,				For the nine months ended April 30,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,948	$	2,412	$	(9,915	)	$	(16,406	)

Cash Flow Hedge Derivative Effect on Comprehensive Income

The following tables provide a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of comprehensive income for the three and nine months endedApril 30, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:  

	For the three months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	(165	)	Cost of product sold- propane and other gas liquids sales	$	(3,885	)
Interest rate swap agreements	825			Interest expense	—
	$	660			$	(3,885	)
	For the three months ended April 30, 2013
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	1,130		Cost of product sold- propane and other gas liquids sales	$	(1,723	)
Interest rate swap agreements	(98		)	Interest expense	—
	$	1,032			$	(1,723	)

	For the nine months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	17,298		Cost of product sold- propane and other gas liquids sales	$	(8,640	)
Interest rate swap agreements	(251		)	Interest expense	—
	$	17,047			$	(8,640	)

	For the nine months ended April 30, 2013
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
Propane commodity derivatives	$	2,044		Cost of product sold- propane and other gas liquids sales	$	(10,348	)
Interest rate swap agreements	(941		)	Interest expense	—
	$	1,103			$	(10,348	)

Changes in Derivative Value Effect on Other Comprehensive Income (Loss)

The changes in derivatives included in AOCI for the nine months endedApril 30, 2014 and 2013 were as follows: 

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,298			2,044
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(8,640		)	10,348
Change in value of risk management interest rate derivatives	(251		)	(941		)
Ending balance	$	10,473		$	(1,348	)