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 July 31, 2022, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 5.3 million gallons of propane at fixed prices.

Depreciation expense totaled $71.0 million, $64.1 million and $64.5 million for fiscal 2022, 2021 and 2020, respectively.

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

Ferrellgas maintains its cash and cash equivalents in various bank accounts that, at times, may exceed federally insured limits. Ferrellgas’ cash and cash equivalent accounts have been placed with high credit quality financial institutions. For purposes of the consolidated statements of cash flows, Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less.

The operating partnership

Cash, cash equivalents and restricted cash consist of the following:


	July 31, 2022		July 31, 2021
Cash and cash equivalents	$	147,258	$	270,188
Restricted cash⁽¹⁾		11,208		11,500
Cash, cash equivalents and restricted cash	$	158,466	$	281,688

(1)

As of July 31, 2022 and 2021, respectively, restricted cash consists of an $11.2 million and $11.5 million cash deposit made with the administrative agent under the operating partnership’s senior secured credit facility that was terminated in April 2020, which may be used by the administrative agent to pay contingent obligations arising under the financing agreement that governed the terminated senior secured credit facility. For additional discussion see Note H – Debt.

Certain cash flow and non-cash activities

Ferrellgas Partners

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


	For the year ended July 31,
	2022		2021		2020
Cash paid for:
Interest ⁽¹⁾	$	91,897	$	156,449	$	147,402
Income taxes	$	1,018	$	706	$	289
Non-cash investing and financing activities:
Liability incurred in connection with Financing Agreement amendment	$	—	$	—	$	8,863
Liabilities incurred in connection with acquisitions	$	2,022	$	1,344	$	975
Change in accruals for property, plant and equipment additions	$	450	$	(386)	$	216
Lease liabilities arising from operating right-of-use assets	$	12,748	$	8,374	$	14,938
Lease liabilities arising from finance right-of-use assets	$	2,209	$	2,310	$	45,455
Accrued senior preferred units distributions	$	17,466	$	16,013	$	—

(1)	See Principles of consolidation and basis of presentation in Note B – Summary of significant accounting policies - for information on the correction of an error for the year ended July 31, 2021.

The operating partnership

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


	For the year ended July 31,
	2022		2021		2020
Cash paid for:
Interest	$	91,897	$	156,449	$	132,006
Income taxes	$	1,014	$	693	$	241
Non-cash investing and financing activities:
Liability incurred in connection with Financing Agreement amendment	$	—	$	—	$	8,863
Liabilities incurred in connection with acquisitions	$	2,022	$	1,344	$	975
Change in accruals for property, plant and equipment additions	$	450	$	(386)	$	216
Lease liabilities arising from operating right-of-use assets	$	12,748	$	8,374	$	14,938
Lease liabilities arising from finance right-of-use assets	$	2,209	$	2,310	$	45,455
Accrued senior preferred units distributions	$	17,466	$	16,013	$	—