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

9 Months Ended

Apr. 30, 2018

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value of derivatives in Ferrellgas’ condensed consolidated balance sheets as of April 30, 2018 and July 31, 2017:  

	April 30, 2018
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	14,449	Other current liabilities	$	2,207
Commodity derivatives-propane	Other assets, net	5,301		Other liabilities	32
Interest rate swap agreements	Prepaid expenses and other current assets	41		Other current liabilities	738
Interest rate swap agreements	Other assets, net	—		Other liabilities	2,484
	Total	$	19,791	Total	$	5,461
	July 31, 2017
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	11,061	Other current liabilities	$	415
Commodity derivatives-propane	Other assets, net	4,413		Other liabilities	15
Interest rate swap agreements	Prepaid expenses and other current assets	583		Other current liabilities	595
Interest rate swap agreements	Other assets, net	—		Other liabilities	112
Derivatives not designated as hedging instruments
Commodity derivatives-crude oil	Prepaid expenses and other current assets	738		Other current liabilities	828
	Total	$	16,795	Total	$	1,965

Schedule of Derivative Collateral

The following tables provide a summary of cash margin balances as of April 30, 2018 and July 31, 2017, respectively:

	April 30, 2018
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expenses and other current assets	$	1,623	Other current liabilities	$	8,434
	Other assets, net	1,405		Other liabilities	3,631
		$	3,028		$	12,065

	July 31, 2017
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expenses and other current assets	$	1,778	Other current liabilities	$	7,729
	Other assets, net	1,631		Other liabilities	3,073
		$	3,409		$	10,802

Fair Value Hedge Derivative Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of operations for the three and nine months endedApril 30, 2018 and 2017 due to derivatives designated as fair value hedging instruments:  

		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rate Debt (Related Hedged Item)
Derivative Instrument	Location of Amounts Recognized on Derivative	For the three months ended April 30,				For the three months ended April 30,
		2018		2017		2018			2017
Interest rate swap agreements	Interest expense	$	40	$	323	$	(2,275	)	$	(2,275	)
		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rate Debt (Related Hedged Item)
Derivative Instrument	Location of Amounts Recognized on Derivative	For the nine months ended April 30,				For the nine months ended April 30,
		2018		2017		2018			2017
Interest rate swap agreements	Interest expense	$	266	$	1,071	$	(6,825	)	$	(6,825	)

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 (loss) for the three and nine months endedApril 30, 2018 and 2017 due to derivatives designated as cash flow hedging instruments:

	For the three months ended April 30, 2018
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
					Effective portion			Ineffective portion
Commodity derivatives	$	(169	)	Cost of sales-propane and other gas liquids sales	$	6,628		$	—
Interest rate swap agreements	10			Interest expense	(60		)	—
	$	(159	)		$	6,568		$	—
	For the three months ended April 30, 2017
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
					Effective portion			Ineffective portion
Commodity derivatives	$	(6,642	)	Cost of sales-propane and other gas liquids sales	$	2,411		$	—
Interest rate swap agreements	146			Interest expense	(478		)	—
	$	(6,496	)		$	1,933		$	—
	For the nine months ended April 30, 2018
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
					Effective portion			Ineffective portion
Commodity derivatives	$	23,114		Cost of sales-propane and other gas liquids sales	$	20,646		$	—
Interest rate swap agreements	248			Interest expense	(386		)	—
	$	23,362			$	20,260		$	—
	For the nine months ended April 30, 2017
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
					Effective portion			Ineffective portion
Commodity derivatives	$	12,930		Cost of sales-propane and other gas liquids sales	$	(1,112	)	$	—
Interest rate swap agreements	974			Interest expense	(1,707		)	—
	$	13,904			$	(2,819	)	$	—

Derivatives not Designated as Hedging, Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of operations for the three and nine months endedApril 30, 2018 and 2017 due to the change in fair value of derivatives not designated as hedging instruments:

	For the three months ended April 30, 2018
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	—		Cost of sales - midstream operations
	For the three months ended April 30, 2017
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	1,464		Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	(393	)	Operating expense
	For the nine months ended April 30, 2018
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	(3,470	)	Cost of sales - midstream operations
	For the nine months ended April 30, 2017
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	(784	)	Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	1,123		Operating expense

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

The changes in derivatives included in AOCI for the nine months endedApril 30, 2018 and 2017 were as follows:  

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2018			2017
Beginning balance	$	14,648		$	(9,815	)
Change in value of risk management commodity derivatives	23,114			12,930
Reclassification of (gains) and losses on commodity hedges to cost of sales - propane and other gas liquids sales, net	(20,646		)	1,112
Change in value of risk management interest rate derivatives	248			974
Reclassification of losses on interest rate hedges to interest expense	386			1,707
Ending balance	$	17,750		$	6,908

Ferrellgas, L.P. [Member]

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value of derivatives in Ferrellgas, L.P.’s condensed consolidated balance sheets as of April 30, 2018 and July 31, 2017: 

	April 30, 2018
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	14,449	Other current liabilities	$	2,207
Commodity derivatives-propane	Other assets, net	5,301		Other liabilities	32
Interest rate swap agreements	Prepaid expenses and other current assets	41		Other current liabilities	738
Interest rate swap agreements	Other assets, net	—		Other liabilities	2,484
	Total	$	19,791	Total	$	5,461
	July 31, 2017
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	11,061	Other current liabilities	$	415
Commodity derivatives-propane	Other assets, net	4,413		Other liabilities	15
Interest rate swap agreements	Prepaid expenses and other current assets	583		Other current liabilities	595
Interest rate swap agreements	Other assets, net	—		Other liabilities	112
Derivatives not designated as hedging instruments
Commodity derivatives-crude oil	Prepaid expenses and other current assets	738		Other current liabilities	828
	Total	$	16,795	Total	$	1,965

Schedule of Derivative Collateral

The following tables provide a summary of cash margin balances as of April 30, 2018 and July 31, 2017, respectively:

	April 30, 2018
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expenses and other current assets	$	1,623	Other current liabilities	$	8,434
	Other assets, net	1,405		Other liabilities	3,631
		$	3,028		$	12,065

	July 31, 2017
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expenses and other current assets	$	1,778	Other current liabilities	$	7,729
	Other assets, net	1,631		Other liabilities	3,073
		$	3,409		$	10,802

Fair Value Hedge Derivative Effect on Earnings

The following tables provides a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of operations for the three and nine months endedApril 30, 2018 and 2017 due to derivatives designated as fair value hedging instruments:

		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rate Debt (Related Hedged Item)
Derivative Instrument	Location of Amounts Recognized on Derivative	For the three months ended April 30,				For the three months ended April 30,
		2018		2017		2018			2017
Interest rate swap agreements	Interest expense	$	40	$	323	$	(2,275	)	$	(2,275	)
		Amount of Gain Recognized on Derivative				Amount of Interest Expense Recognized on Fixed-Rate Debt (Related Hedged Item)
Derivative Instrument	Location of Amounts Recognized on Derivative	For the nine months ended April 30,				For the nine months ended April 30,
		2018		2017		2018			2017
Interest rate swap agreements	Interest expense	$	266	$	1,071	$	(6,825	)	$	(6,825	)

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 (loss) for the three and nine months endedApril 30, 2018 and 2017 due to derivatives designated as cash flow hedging instruments:  

	For the three months ended April 30, 2018
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
					Effective portion			Ineffective portion
Commodity derivatives	$	(169	)	Cost of sales-propane and other gas liquids sales	$	6,628		$	—
Interest rate swap agreements	10			Interest expense	(60		)	—
	$	(159	)		$	6,568		$	—
	For the three months ended April 30, 2017
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
					Effective portion			Ineffective portion
Commodity derivatives	$	(6,642	)	Cost of sales-propane and other gas liquids sales	$	2,411		$	—
Interest rate swap agreements	146			Interest expense	(478		)	—
	$	(6,496	)		$	1,933		$	—
	For the nine months ended April 30, 2018
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
					Effective portion			Ineffective portion
Commodity derivatives	$	23,114		Cost of sales-propane and other gas liquids sales	$	20,646		$	—
Interest rate swap agreements	248			Interest expense	(386		)	—
	$	23,362			$	20,260		$	—
	For the nine months ended April 30, 2017
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
					Effective portion			Ineffective portion
Commodity derivatives	$	12,930		Cost of sales-propane and other gas liquids sales	$	(1,112	)	$	—
Interest rate swap agreements	974			Interest expense	(1,707		)	—
	$	13,904			$	(2,819	)	$	—

Derivatives not Designated as Hedging, Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas, L.P.'s condensed consolidated statements of operations for the three and nine months endedApril 30, 2018 and 2017 due to the change in fair value of derivatives not designated as hedging instruments:

	For the three months ended April 30, 2018
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	—		Cost of sales - midstream operations
	For the three months ended April 30, 2017
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	1,464		Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	(393	)	Operating expense
	For the nine months ended April 30, 2018
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	(3,470	)	Cost of sales - midstream operations
	For the nine months ended April 30, 2017
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Recognized in Income
Commodity derivatives - crude oil	$	(784	)	Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	1,123		Operating expense

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

The changes in derivatives included in AOCI for the nine months endedApril 30, 2018 and 2017 were as follows: 

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2018			2017
Beginning balance	$	14,648		$	(9,815	)
Change in value of risk management commodity derivatives	23,114			12,930
Reclassification of (gains) and losses on commodity hedges to cost of sales - propane and other gas liquids sales, net	(20,646		)	1,112
Change in value of risk management interest rate derivatives	248			974
Reclassification of losses on interest rate hedges to interest expense	386			1,707
Ending balance	$	17,750		$	6,908