Supplemental Financial Statement Information

9 Months Ended

Apr. 30, 2020

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

D.    Supplemental financial statement information

Inventories consist of the following:

	April 30, 2020		July 31, 2019
Propane gas and related products	$	49,114	$	66,001
Appliances, parts and supplies, and other		16,095		14,453
Inventories	$	65,209	$	80,454

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 April 30, 2020, Ferrellgas had committed, for supply procurement purposes, to deliver approximately 1.9 million gallons of propane at fixed prices, net of contracts to take delivery.

Prepaid expenses and other current assets consist of the following:

	April 30, 2020		July 31, 2019
Broker margin deposit assets	$	27,233	$	25,028
Other		19,990		17,247
Prepaid expenses and other current assets	$	47,223	$	42,275

Other assets, net consist of the following:

	April 30, 2020		July 31, 2019
Notes receivable, less current portion	$	8,760	$	16,216
Other		78,712		52,889
Other assets, net	$	87,472	$	69,105

Other current liabilities consist of the following:

	April 30, 2020		July 31, 2019
Accrued interest	$	53,192	$	20,484
Customer deposits and advances		23,785		24,686
Accrued payroll		27,999		17,356
Accrued insurance		12,519		18,524
Price risk management liabilities		18,378		14,198
Other		38,950		42,989
Other current liabilities	$	174,823	$	138,237

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

	For the three months ended April 30,				For the nine months ended April 30,
	2020		2019		2020		2019
Operating expense - personnel, vehicle, plant and other	$	54,664	$	54,753	$	167,666	$	162,474
Depreciation and amortization expense		2,007		1,934		5,883		4,396
Operating expense - equipment lease expense		8,308		7,784		23,934		23,172
	$	64,979	$	64,471	$	197,483	$	190,042

Cash and cash equivalents consist of the following:

	April 30, 2020		July 31, 2019
Cash and cash equivalents	$	177,529	$	11,054
Restricted cash (1)		141,318		—
Cash, cash equivalents and restricted cash	$	318,847	$	11,054

(1) The $141.3 million of restricted cash includes $123.8 million of pledged cash collateral for letters of credit outstanding, an $11.5 million cash deposit made with the administrative agent under the terminated Senior Secured Credit Facility, which may be used by the administrative agent to pay contingent obligations arising under the Financing Agreement that governed the Senior Secured Credit Facility, and $6.0 million of additional pledged collateral. For additional discussion see Note F – Debt.

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

	For the nine months ended April 30,
	2020		2019
Cash paid for:
Interest	$	96,418	$	93,465
Income taxes	$	50	$	21
Non-cash investing and financing activities:
Liability incurred in connection with Term Loan amendment	$	8,863	$	—
Liabilities incurred in connection with acquisitions	$	—	$	1,174
Change in accruals for property, plant and equipment additions	$	486	$	1,202
Right-of-use assets arising from operating and finance lease liabilities	$	42,042	$	—

Currently Ferrellgas finances the production of delivery trucks and computer equipment, prior to leasing these items from third parties. The cash paid to finance this activity is reported in the statement of cash flows as “Cash payments to construct assets in connection with future lease transactions”. The cash received from lessors to purchase these items from Ferrellgas followed by entry into a lease transaction is reported in the statement of cash flows as “Cash receipts in connection with leased vehicles”.

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

D.    Supplemental financial statement information

Inventories consist of the following:

	April 30, 2020		July 31, 2019
Propane gas and related products	$	49,114	$	66,001
Appliances, parts and supplies, and other		16,095		14,453
Inventories	$	65,209	$	80,454

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 April 30, 2020, Ferrellgas, L.P. had committed, for supply procurement purposes, to deliver approximately 1.9 million gallons of propane at fixed prices, net of contracts to take delivery.

Prepaid expenses and other current assets consist of the following:

	April 30, 2020		July 31, 2019
Broker margin deposit assets	$	27,233	$	25,028
Other		19,942		17,129
Prepaid expenses and other current assets	$	47,175	$	42,157

Other assets, net consist of the following:

	April 30, 2020		July 31, 2019
Notes receivable, less current portion	$	8,760	$	16,216
Other		78,712		52,889
Other assets, net	$	87,472	$	69,105

Other current liabilities consist of the following:

	April 30, 2020		July 31, 2019
Accrued interest	$	41,560	$	16,550
Customer deposits and advances		23,785		24,686
Accrued payroll		27,999		17,356
Accrued insurance		12,519		18,524
Price risk management liabilities		18,378		14,198
Other		38,950		42,989
Other current liabilities	$	163,191	$	134,303

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

	For the three months ended April 30,				For the nine months ended April 30,
	2020		2019		2020		2019
Operating expense - personnel, vehicle, plant and other	$	54,664	$	54,753	$	167,666	$	162,474
Depreciation and amortization expense		2,007		1,934		5,883		4,396
Operating expense - equipment lease expense		8,308		7,784		23,934		23,172
	$	64,979	$	64,471	$	197,483	$	190,042

Cash and cash equivalents consist of the following:

	April 30, 2020		July 31, 2019
Cash and cash equivalents	$	177,519	$	11,046
Restricted cash (1)		141,318		—
Cash, cash equivalents and restricted cash	$	318,837	$	11,046

(1) The $141.3 million of restricted cash includes $123.8 million of pledged cash collateral for letters of credit outstanding, an $11.5 million cash deposit made with the administrative agent under the terminated Senior Secured Credit Facility, which may be used by the administrative agent to pay contingent obligations arising under the Financing Agreement that governed the Senior Secured Credit Facility, and $6.0 million of additional pledged collateral. For additional discussion see Note F – Debt.

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

	For the nine months ended April 30,
	2020		2019
Cash paid for:
Interest	$	81,023	$	78,069
Income taxes	$	1	$	(9)
Non-cash investing and financing activities:
Liability incurred in connection with Term Loan amendment	$	8,863	$	—
Liabilities incurred in connection with acquisitions	$	—	$	1,174
Change in accruals for property, plant and equipment additions	$	486	$	1,202
Right-of-use assets arising from operating and finance lease liabilities	$	42,042	$	—

Currently Ferrellgas, L.P. finances the production of delivery trucks and computer equipment, prior to leasing these items from third parties. The cash paid to finance this activity is reported in the statement of cash flows as “Cash payments to construct assets in connection with future lease transactions”. The cash received from lessors to purchase these items from Ferrellgas, L.P. followed by entry into a lease transaction is reported in the statement of cash flows as “Cash receipts in connection with leased vehicles”.