10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended January 31, 2014
or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from         to

Commission file numbers: 001-11331, 333-06693, 000-50182 and 000-50183

Ferrellgas Partners, L.P.

Ferrellgas Partners Finance Corp.

Ferrellgas, L.P.

Ferrellgas Finance Corp.

(Exact name of registrants as specified in their charters)

Delaware Delaware Delaware Delaware	43-1698480 43-1742520 43-1698481 14-1866671
(States or other jurisdictions of incorporation or organization)	(I.R.S. Employer Identification Nos.)
7500 College Boulevard, Suite 1000, Overland Park, Kansas	66210
(Address of principal executive office)	(Zip Code)

Registrants’ telephone number, including area code: (913) 661-1500

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, or smaller reporting companies. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Ferrellgas Partners, L.P.:
Large accelerated filer x	Accelerated filer o	Non-accelerated filer o (do not check if a smaller reporting company)	Smaller reporting company o

Ferrellgas Partners Finance Corp, Ferrellgas, L.P. and Ferrellgas Finance Corp.:
Large accelerated filer o	Accelerated filer o	Non-accelerated filer x (do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

Ferrellgas Partners, L.P. and Ferrellgas, L.P. Yes ¨ No x

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. Yes x No ¨

At February 28, 2014, the registrants had common units or shares of common stock outstanding as follows:

Ferrellgas Partners, L.P.	79,187,419	Common Units
Ferrellgas Partners Finance Corp.	1,000	Common Stock
Ferrellgas, L.P.	n/a	n/a
Ferrellgas Finance Corp.	1,000	Common Stock

Documents Incorporated by Reference: None

EACH OF FERRELLGAS PARTNERS FINANCE CORP. AND FERRELLGAS FINANCE CORP. MEET THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION 

H(1)(A) AND (B) OF FORM 10-Q AND ARE THEREFORE, WITH RESPECT TO EACH SUCH REGISTRANT, FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

1

FERRELLGAS PARTNERS, L.P.

FERRELLGAS PARTNERS FINANCE CORP.

FERRELLGAS, L.P.

FERRELLGAS FINANCE CORP.

TABLE OF CONTENTS

	PART I - FINANCIAL INFORMATION	Page
ITEM 1.	FINANCIAL STATEMENTS (unaudited)
	Ferrellgas Partners, L.P. and Subsidiaries
	Condensed Consolidated Balance Sheets – January 31, 2014 and July 31, 2013	3
	Condensed Consolidated Statements of Earnings – Three and six months ended January 31, 2014 and 2013	4
	Condensed Consolidated Statements of Comprehensive Income – Three and six months ended January 31, 2014 and 2013	5
	Condensed Consolidated Statements of Partners’ Deficit – Six months ended January 31, 2014	6
	Condensed Consolidated Statements of Cash Flows – Six months ended January 31, 2014 and 2013	7
	Notes to Condensed Consolidated Financial Statements	8
	Ferrellgas Partners Finance Corp.
	Condensed Balance Sheets – January 31, 2014 and July 31, 2013	20
	Condensed Statements of Earnings – Three and six months ended January 31, 2014 and 2013	20
	Condensed Statements of Cash Flows – Six months ended January 31, 2014 and 2013	21
	Notes to Condensed Financial Statements	22
	Ferrellgas, L.P. and Subsidiaries
	Condensed Consolidated Balance Sheets – January 31, 2014 and July 31, 2013	23
	Condensed Consolidated Statements of Earnings – Three and six months ended January 31, 2014 and 2013	24
	Condensed Consolidated Statements of Comprehensive Income – Three and six months ended January 31, 2014 and 2013	25
	Condensed Consolidated Statements of Partners’ Deficit – Six months ended January 31, 2014	26
	Condensed Consolidated Statements of Cash Flows – Six months ended January 31, 2014 and 2013	27
	Notes to Condensed Consolidated Financial Statements	28
	Ferrellgas Finance Corp.
	Condensed Balance Sheets – January 31, 2014 and July 31, 2013	37
	Condensed Statements of Earnings – Three and six months ended January 31, 2014 and 2013	37
	Condensed Statements of Cash Flows – Six months ended January 31, 2014 and 2013	38
	Notes to Condensed Financial Statements	39
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	40
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	56
ITEM 4.	CONTROLS AND PROCEDURES	57
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	59
ITEM 1A.	RISK FACTORS	59
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	59
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	59
ITEM 4.	MINE SAFETY DISCLOSURES	59
ITEM 5.	OTHER INFORMATION	59
ITEM 6.	EXHIBITS	E-1

2

PART I - FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS (unaudited)

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
	January 31, 2014			July 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	18,292		$	6,464
Accounts and notes receivable, net (including $314,475 and $130,025 of accounts receivable pledged as collateral at January 31, 2014 and July 31, 2013, respectively)	356,359			131,791
Inventories	135,830			117,116
Prepaid expenses and other current assets	44,891			25,608
Total current assets	555,372			280,979
Property, plant and equipment (net of accumulated depreciation of $618,706 and $617,541 at January 31, 2014 and July 31, 2013, respectively)	582,484			589,727
Goodwill	253,331			253,362
Intangible assets (net of accumulated amortization of $357,548 and $346,618 at January 31, 2014 and July 31, 2013, respectively)	182,977			189,516
Other assets, net	46,630			42,444
Total assets	$	1,620,794		$	1,356,028
LIABILITIES AND PARTNERS' DEFICIT
Current liabilities:
Accounts payable	$	137,073		$	49,128
Short-term borrowings	67,045			50,054
Collateralized note payable	219,000			82,000
Other current liabilities	112,241			121,102
Total current liabilities	535,359			302,284
Long-term debt	1,150,911			1,106,940
Other liabilities	35,724			33,431
Contingencies and commitments (Note J)
Partners' deficit:
Common unitholders (79,144,419 and 79,072,819 units outstanding at January 31, 2014 and July 31, 2013, respectively)	(54,480		)	(28,931		)
General partner unitholder (799,439 and 798,715 units outstanding at January 31, 2014 and July 31, 2013, respectively)	(60,621		)	(60,362		)
Accumulated other comprehensive income	13,078			1,697
Total Ferrellgas Partners, L.P. partners' deficit	(102,023		)	(87,596		)
Noncontrolling interest	823			969
Total partners' deficit	(101,200		)	(86,627		)
Total liabilities and partners' deficit	$	1,620,794		$	1,356,028
See notes to condensed consolidated financial statements.

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per unit data)
(unaudited)
	For the three months ended January 31,						For the six months ended January 31,
	2014			2013			2014			2013
Revenues:
Propane and other gas liquids sales	$	789,446		$	583,074		$	1,171,669		$	918,355
Other	80,237			75,791			113,044			103,419
Total revenues	869,683			658,865			1,284,713			1,021,774
Costs and expenses:
Cost of product sold - propane and other gas liquids sales	551,506			376,236			810,260			589,893
Cost of product sold - other	48,709			47,437			62,055			56,634
Operating expense (includes $1.5 million and $0.6 million for the three months ended January 31, 2014 and 2013, respectively, and $2.3 million and $1.3 million for the six months ended January 31, 2014 and 2013, respectively, for non-cash stock and unit-based compensation)	118,282			106,192			222,046			203,337
Depreciation and amortization expense	20,643			20,751			40,858			41,626
General and administrative expense (includes $4.4 million and $2.5 million for the three months ended January 31, 2014 and 2013, respectively, and $8.0 million and $4.9 million for the six months ended January 31, 2014 and 2013, respectively, for non-cash stock and unit-based compensation)	16,475			12,717			30,889			23,872
Equipment lease expense	4,274			3,827			8,340			7,750
Non-cash employee stock ownership plan compensation charge	3,636			7,447			6,679			9,849
Loss on disposal of assets	1,337			2,120			1,694			2,391
Operating income	104,821			82,138			101,892			86,422
Interest expense	(22,090		)	(22,619		)	(44,183		)	(45,054		)
Loss on extinguishment of debt	(20,901		)	—			(21,202		)	—
Other income, net	57			241			273			332
Earnings before income taxes	61,887			59,760			36,780			41,700
Income tax expense	764			917			714			653
Net earnings	61,123			58,843			36,066			41,047
Net earnings attributable to noncontrolling interest	659			636			445			498
Net earnings attributable to Ferrellgas Partners, L.P.	60,464			58,207			35,621			40,549
Less: General partner's interest in net earnings	3,663			3,138			356			405
Common unitholders' interest in net earnings	$	56,801		$	55,069		$	35,265		$	40,144
Basic and diluted net earnings per common unitholders' interest	$	0.72		$	0.70		$	0.45		$	0.51
Cash distributions declared per common unit	$	0.50		$	0.50		$	1.00		$	1.00
See notes to condensed consolidated financial statements.

4

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
	For the three months ended January 31,						For the six months ended January 31,
	2014			2013			2014			2013
Net earnings	$	61,123		$	58,843		$	36,066		$	41,047
Other comprehensive income (loss):
Change in value of risk management derivatives	5,783			(6,205		)	16,387			71
Reclassification of derivative gains and losses to earnings	(3,826		)	4,434			(4,755		)	8,625
Foreign currency translation adjustment	(14		)	1			(135		)	3
Other comprehensive income (loss)	1,943			(1,770		)	11,497			8,699
Comprehensive income	63,066			57,073			47,563			49,746
Less: Comprehensive income attributable to noncontrolling interest	679			618			561			585
Comprehensive income attributable to Ferrellgas Partners, LP	$	62,387		$	56,455		$	47,002		$	49,161
See notes to condensed consolidated financial statements.

5

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS' DEFICIT
(in thousands)
(unaudited)
	Number of units								Accumulated other comprehensive income		Total Ferrellgas Partners, L.P. partners' deficit						Total partners' deficit
	Common unitholders	General Partner unitholder	Common unitholders			General Partner unitholder								Non-controlling interest
Balance at July 31, 2013	79,072.8	798.7	$	(28,931	)	$	(60,362	)	$	1,697	$	(87,596	)	$	969		$	(86,627	)
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	—	—	16,689			168			—		16,857			172			17,029
Distributions	—	—	(79,108		)	(799		)	—		(79,907		)	(896		)	(80,803		)
Common units issued in connection with acquisitions	62.6	0.6	1,500			15			—		1,515			15			1,530
Exercise of common unit options	9.0	0.1	105			1			—		106			2			108
Net earnings	—	—	35,265			356			—		35,621			445			36,066
Other comprehensive income	—	—							11,381		11,381			116			11,497
Balance at January 31, 2014	79,144.4	799.4	$	(54,480	)	$	(60,621	)	$	13,078	$	(102,023	)	$	823		$	(101,200	)
See notes to condensed consolidated financial statements.

6

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	For the six months ended January 31,
	2014			2013
Cash flows provided by (used in) operating activities:
Net earnings	$	36,066		$	41,047
Reconciliation of net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization expense	40,858			41,626
Non-cash employee stock ownership plan compensation charge	6,679			9,849
Non-cash stock and unit-based compensation charge	10,350			6,212
Loss on disposal of assets	1,694			2,391
Non-cash loss on extinguishment of debt	6,526			—
Provision for doubtful accounts	2,105			2,515
Deferred tax expense	616			391
Other	1,823			1,911
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable, net of securitization	(227,911		)	(117,208		)
Inventories	(18,526		)	(2,390		)
Prepaid expenses and other current assets	(10,134		)	(1,489		)
Accounts payable	87,395			55,190
Accrued interest expense	(3,809		)	(116		)
Other current liabilities	(4,615		)	8,473
Other liabilities	721			534
Net cash provided by (used in) operating activities	(70,162		)	48,936
Cash flows provided by (used in) investing activities:
Business acquisitions, net of cash acquired	(5,227		)	(6,488		)
Capital expenditures	(22,873		)	(21,964		)
Proceeds from sale of assets	2,482			6,163
Other	(8		)	—
Net cash used in investing activities	(25,626		)	(22,289		)
Cash flows provided by (used in) financing activities:
Distributions	(79,907		)	(79,814		)
Proceeds from issuance of long-term debt	369,493			22,552
Payments on long-term debt	(327,563		)	(1,868		)
Net additions to (reductions in) short-term borrowings	16,991			(23,052		)
Net additions to collateralized short-term borrowings	137,000			60,000
Cash paid for financing costs	(7,473		)	—
Noncontrolling interest activity	(896		)	(894		)
Proceeds from exercise of common unit options	106			105
Cash contribution from general partner in connection with common unit issuances	—			1
Net cash provided by (used in) financing activities	107,751			(22,970		)
Effect of exchange rate changes on cash	(135		)	3
Net change in cash and cash equivalents	11,828			3,680
Cash and cash equivalents - beginning of period	6,464			8,429
Cash and cash equivalents - end of period	$	18,292		$	12,109
See notes to condensed consolidated financial statements.

7

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per unit data, unless otherwise designated)

 (unaudited)

A.  Partnership organization and formation

Ferrellgas Partners, L.P. (“Ferrellgas Partners”) is a publicly traded limited partnership, owning an approximate 99% limited partner interest in Ferrellgas, L.P. (the "operating partnership"). Ferrellgas Partners and the operating partnership, collectively referred to as “Ferrellgas,” are both Delaware limited partnerships and are governed by their respective partnership agreements. Ferrellgas Partners was formed to acquire and hold a limited partner interest in the operating partnership. As of January 31, 2014, Ferrell Companies, Inc. ("Ferrell Companies") beneficially owns 21.7 million Ferrellgas Partners common units. Ferrellgas, Inc. (the "general partner") has retained a 1% general partner interest in Ferrellgas Partners and also holds an approximate 1% general partner interest in the operating partnership, representing an effective 2% general partner interest in Ferrellgas on a combined basis. The general partner performs all management functions required by Ferrellgas.

Ferrellgas Partners is a holding entity that conducts no operations and has two subsidiaries, Ferrellgas Partners Finance Corp. and the operating partnership. Ferrellgas Partners owns a 100% equity interest in Ferrellgas Partners Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt issued by Ferrellgas Partners. The operating partnership is the only operating subsidiary of Ferrellgas Partners. Ferrellgas has a single reportable operating segment.

The operating partnership is engaged primarily in the distribution of propane and related equipment and supplies in the United States. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Therefore, the results of operations for the six months endedJanuary 31, 2014 and 2013 are not necessarily indicative of the results to be expected for a full fiscal year. The operating partnership serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico.

The condensed consolidated financial statements of Ferrellgas reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas' Annual Report on Form 10-K for fiscal 2013.

B.    Summary of significant accounting policies

(1)   Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, valuation methods used to value intangibles and goodwill in business combinations, allowance for doubtful accounts, fair value of reporting units, fair values of derivative contracts, and stock and unit-based compensation calculations.

8

(2)   Supplemental cash flow information: For purposes of the condensed 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. Certain cash flow and significant non-cash activities are presented below:

	For the six months ended January 31,
	2014		2013
CASH PAID FOR:
Interest	$	45,648	$	42,646
Income taxes	$	178	$	45
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common units in connection with acquisitions	$	1,500	$	—
Liabilities incurred in connection with acquisitions	$	682	$	1,060
Change in accruals for property, plant and equipment additions	$	1,082	$	598

C. Supplemental financial statement information

Inventories consist of the following:

	January 31, 2014		July 31, 2013
Propane gas and related products	$	107,179	$	94,946
Appliances, parts and supplies	28,651		22,170
Inventories	$	135,830	$	117,116

In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2014, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 49.3 million gallons of propane at fixed prices.

Other current liabilities consist of the following:

	January 31, 2014		July 31, 2013
Accrued interest	$	15,986	$	19,795
Accrued payroll	20,586		30,295
Customer deposits and advances	22,909		20,420
Other	52,760		50,592
Other current liabilities	$	112,241	$	121,102

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

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	54,755	$	48,260	$	100,733	$	92,161
Depreciation and amortization expense	1,440		1,400		2,855		2,927
Equipment lease expense	3,767		3,493		7,394		6,880
	$	59,962	$	53,153	$	110,982	$	101,968

9

D. Accounts and notes receivable, net and accounts receivable securitization

Accounts and notes receivable, net consist of the following:

	January 31, 2014			July 31, 2013
Accounts receivable pledged as collateral	$	314,475		$	130,025
Accounts receivable	46,009			4,867
Other	477			506
Less: Allowance for doubtful accounts	(4,602		)	(3,607		)
Accounts and notes receivable, net	$	356,359		$	131,791

At January 31, 2014, $314.5 million of trade accounts receivable were pledged as collateral against $219.0 million of collateralized notes payable due to the commercial paper conduit. At July 31, 2013, $130.0 million of trade accounts receivable were pledged as collateral against $82.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from the operating partnership. The operating partnership does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. 

As of January 31, 2014, the operating partnership had received cash proceeds of $219.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2013, the operating partnership had received cash proceeds of $82.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 2.0% and 2.4% as of January 31, 2014 and July 31, 2013, respectively.

10

E.Debt

Short-term borrowings

Ferrellgas classified a portion of its secured credit facility borrowings as short-term because it was used to fund working capital needs that management had intended to pay down within the 12 month period following each balance sheet date. As of January 31, 2014 and July 31, 2013, $67.0 million and $50.1 million, respectively, were classified as short-term borrowings. For further discussion see the secured credit facility section below.

Long-term debt

Long-term debt consists of the following:

	January 31, 2014			July 31, 2013
Senior notes
Fixed rate, 6.50%, due 2021	$	500,000		$	500,000
Fixed rate, 6.75%, due 2022	325,000			—
Fixed rate, 9.125%, due 2017, net of unamortized discount of $2,556 at July 31, 2013	—			297,444
Fixed rate, 8.625%, due 2020	182,000			182,000
Fair value adjustments related to interest rate swaps	(3,197		)	(1,657		)
Secured credit facility
Variable interest rate, expiring October 2018 (net of $67.0 million and $50.1 million classified as short-term borrowings at January 31, 2014 and July 31, 2013, respectively)	140,455			121,346
Notes payable
9.0% and 9.1% weighted average interest rate at January 31, 2014 and July 31, 2013, respectively, due 2014 to 2022, net of unamortized discount of $2,176 and $2,392 at January 31, 2014 and July 31, 2013, respectively	9,836			10,898
	1,154,094			1,110,031
Less: current portion, included in other current liabilities on the condensed consolidated balance sheets	3,183			3,091
Long-term debt	$	1,150,911		$	1,106,940

Senior notes

During November 2013, Ferrellgas issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. Ferrellgas received $319.3 million of net proceeds after deducting underwriters' fees. Ferrellgas used the net proceeds to redeem all of its $300.0 million9.125% fixed rate senior notes due October 1, 2017. Ferrellgas used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

As a result of the above transactions, the scheduled annual principal payments on long-term debt have been updated as follows:

For the fiscal year ending July 31,	Scheduled annual principal payments
2014	$	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	1,148,872
Total	$	1,159,467

11

Secured credit facility

During October 2013, Ferrellgas executed an amendment to its secured credit facility. This amendment extended the maturity date to October 2018 and increased the size of the facility from $400.0 million to $500.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million. Ferrellgas incurred a loss on extinguishment of debt of $0.3 million related to the writeoff of capitalized financing costs. Borrowings on the amended secured credit facility bear interest, at our option, at a rate equal to either:

• for Base Rate Loans or Swing Line Loans, the Base Rate, which is defined as the higher of i) the federal funds rate plus 0.50%, ii) Bank of America’s prime rate; or iii) the Eurodollar Rate plus 1.00%; plus a margin varying from 0.75% to 1.75%; or

• for Eurodollar Rate Loans, the Eurodollar Rate, which is defined as the LIBOR Rate plus a margin varying from 1.75% to 2.75%.

As of January 31, 2014, Ferrellgas had total borrowings outstanding under its secured credit facility of $207.5 million, of which$140.5 million was classified as long-term debt. As of July 31, 2013, Ferrellgas had total borrowings outstanding under its secured credit facility of $171.4 million, of which $121.3 million was classified as long-term debt. Additionally, Ferrellgas had $232.2 million and $177.9 million of available borrowing capacity under our secured credit facility as of January 31, 2014 and January 31, 2013, respectively.

Borrowings outstanding at January 31, 2014 and July 31, 2013 under the secured credit facilities had weighted average interest rates of 3.4% and 3.7%, respectively.

The obligations under the credit facility are secured by substantially all assets of the operating partnership, the general partner and certain subsidiaries of the operating partnership but specifically excluding (a) assets that are subject to the operating partnership’s accounts receivable securitization facility, (b) the general partner’s equity interest in Ferrellgas Partners and (c) equity interest in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of the operating partnership.

Letters of credit outstanding at January 31, 2014 totaled $60.3 million and were used primarily to secure insurance arrangements and, to a lesser extent, product purchases. Letters of credit outstanding at July 31, 2013 totaled $53.9 million and were used primarily to secure insurance arrangements and, to a lesser extent, commodity hedges and product purchases. At January 31, 2014, Ferrellgas had remaining letter of credit capacity of $139.7 million. At July 31, 2013, Ferrellgas had remaining letter of credit capacity of $146.1 million.

Interest rate swaps

During May 2012, the operating partnership entered into a $140.0 million interest rate swap agreement to hedge against changes in the fair value of a portion of its $300.0 million 9.125% fixed rate senior notes due 2017. The operating partnership received 9.125% and paid one-month LIBOR plus 7.96% on the $140.0 million swapped. The operating partnership accounted for this agreement as a fair value hedge. In October 2013, this interest rate swap was terminated. As a result, the operating partnership discontinued hedge accounting treatment for this agreement at a cost of $0.2 million, which was classified as loss on extinguishment of debt when the related senior notes were redeemed as discussed above.

12

F.  Partners' deficit

Partnership distributions paid

Ferrellgas Partners has paid the following distributions:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Public common unitholders	$	26,534	$	26,470	$	53,032	$	52,940
Ferrell Companies (1)	10,735		10,735		21,470		21,470
FCI Trading Corp. (2)	98		98		196		196
Ferrell Propane, Inc. (3)	26		26		52		52
James E. Ferrell (4)	2,179		2,179		4,358		4,358
General partner	400		399		799		798
	$	39,972	$	39,907	$	79,907	$	79,814

(1) Ferrell Companies is the owner of the general partner and an approximately 27% direct owner of Ferrellgas Partner's common units and thus a related party.

(2) FCI Trading Corp. is an affiliate of the general partner and thus a related party.

(3) Ferrell Propane, Inc. is controlled by the general partner and thus a related party.

(4) James E. Ferrell is the Chairman of the Board of Directors of the general partner and a related party.

On February 27, 2014, Ferrellgas Partners declared a cash distribution of $0.50 per common unit for the three months ended January 31, 2014, which is expected to be paid on March 17, 2014. Included in this cash distribution are the following amounts to be paid to related parties:

Ferrell Companies	$	10,735
FCI Trading Corp.	98
Ferrell Propane, Inc.	26
James E. Ferrell	2,179
General partner	400

See additional discussions about transactions with related parties in Note I – Transactions with related parties.

Accumulated other comprehensive income (loss)(“AOCI”)

See Note H – Derivative instruments and hedging activities – for details regarding changes in the fair value of risk management financial derivatives recorded within AOCI for the six months endedJanuary 31, 2014 and 2013.

General partner’s commitment to maintain its capital account

Ferrellgas’ partnership agreements allows the general partner to have an option to maintain its effective 2% general partner interest concurrent with the issuance of other additional equity.

During the six months endedJanuary 31, 2014, the general partner made non-cash contributions of $0.3 million to Ferrellgas to maintain its effective 2% general partner interest.

During the six months endedJanuary 31, 2013, the general partner made non-cash contributions of $0.3 million to Ferrellgas to maintain its effective 2% general partner interest.

13

G. Fair value measurements

Derivative Financial Instruments

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of January 31, 2014 and July 31, 2013:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Total
January 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,171		$	—	$	2,171
Propane commodity derivatives	$	—	$	14,333		$	—	$	14,333
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(6,003	)	$	—	$	(6,003	)
July 31, 2013:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	3,783		$	—	$	3,783
Propane commodity derivatives	$	—	$	2,532		$	—	$	2,532
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,998	)	$	—	$	(4,998	)
Propane commodity derivatives	$	—	$	(907	)	$	—	$	(907	)

The fair values of Ferrellgas’ non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of interest rate swap contracts are based upon third-party quotes or indicative values based on recent market transactions.

H.  Derivative instruments and hedging activities

Ferrellgas is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Ferrellgas also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates.

Derivative instruments and hedging activities

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges.

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

14

	January 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	11,914	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	2,419		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,171		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	6,003
	Total	$	16,504	Total	$	6,003
	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

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of earnings for the three and six months endedJanuary 31, 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 January 31,				For the three months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	489	$	883	$	(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 six months ended January 31,				For the six months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,321	$	1,607	$	(7,640	)	$	(10,938	)

15

The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income for the three and six months endedJanuary 31, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:

	For the three months ended January 31, 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	$	5,846		Cost of product sold- propane and other gas liquids sales	$	(3,826	)
Interest rate swap agreements	(63		)	Interest expense	—
	$	5,783			$	(3,826	)

	For the three months ended January 31, 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	$	(5,612	)	Cost of product sold- propane and other gas liquids sales	$	(4,434	)
Interest rate swap agreements	(593		)	Interest expense	—
	$	(6,205	)		$	(4,434	)

	For the six months ended January 31, 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	$	17,463		Cost of product sold- propane and other gas liquids sales	$	(4,755	)
Interest rate swap agreements	(1,076		)	Interest expense	—
	$	16,387			$	(4,755	)

	For the six months ended January 31, 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	$	914		Cost of product sold- propane and other gas liquids sales	$	(8,625	)
Interest rate swap agreements	(843		)	Interest expense	—
	$	71			$	(8,625	)

16

The changes in derivatives included in AOCI for the six months endedJanuary 31, 2014 and 2013 were as follows:  

	For the six months ended January 31,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,463			914
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(4,755		)	8,625
Change in value of risk management interest rate derivatives	(1,076		)	(843		)
Ending balance	$	13,698		$	(4,103	)

Ferrellgas expects to reclassify net gains of approximately $11.9 million to earnings during the next 12 months. These net gains are expected to be offset by reduced margins on propane sales commitments Ferrellgas has with its customers that qualify for the normal purchase normal sales exception.

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas had no reclassifications to earnings resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship.

As of January 31, 2014, Ferrellgas had financial derivative contracts covering 1.4 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane.

Derivative Financial Instruments Credit Risk

Ferrellgas is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas’ counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas in the forms of letters of credit, parental guarantees or cash. Although Ferrellgas has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, Ferrellgas would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was $14.3 million at January 31, 2014.  

Ferrellgas holds certain derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon the operating partnership’s debt rating. At January 31, 2014, a downgrade in the operating partnership’s debt rating would not trigger any further reduction in credit limit. There were no derivatives with credit-risk-related contingent features in a liability position on January 31, 2014 and Ferrellgas had no collateral posted in the normal course of business related to such derivatives.

I. Transactions with related parties

Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas’ partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas’ business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of earnings as follows:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	61,412	$	53,594	$	109,570	$	101,378
General and administrative expense	$	9,200	$	7,183	$	15,101	$	13,456

17

See additional discussions about transactions with the general partner and related parties in Note F – Partners’ deficit.

J. Contingencies and commitments

Litigation

Ferrellgas’ operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, Ferrellgas can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, Ferrellgas is not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on the consolidated financial condition, results of operations and cash flows of Ferrellgas.

During the first quarter of fiscal 2014 Ferrellgas reached a settlement with the Offices of the District Attorneys of several counties in California relating to an investigation of labeling and filling practices relating to the amount of propane contained in barbeque cylinders. Ferrellgas has also received notice that the Federal Trade Commission is investigating barbeque cylinder labeling and filling practices and any anti-trust issues relating to cylinder fill level. Ferrellgas already paid and reflected in the condensed consolidated financial statements the settlement reached.

Ferrellgas has also been named as a defendant in a putative class action lawsuit filed in the United States District Court in Kansas. The complaint was the subject of a motion to dismiss which was granted, in part, in August 2011. The surviving claims allege breach of contract and breach of the implied duty of good faith and fair dealing, both of which allegedly arise from the existence of an oral contract for continuous propane service. Ferrellgas believes the claims are without merit and intends to defend them vigorously. The case, which has not been certified for class treatment, is currently on appeal before the Tenth Circuit Court of Appeals following the denial of a motion to arbitrate the individual plaintiff's claim. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to this putative class action lawsuit.

K. Net earnings per common unitholders’ interest

Below is a calculation of the basic and diluted net loss available per common unitholders’ interest reported in the condensed consolidated statements of earnings for the periods indicated. Considering the participating securities and the two-class method, Ferrellgas calculates net earnings per common unitholders’ interest for each period presented according to distributions declared and participation rights in undistributed earnings, as if all of the earnings or loss for the period had been distributed. In periods with undistributed earnings above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the general partner and a dilution of the earnings to the limited partners. Due to the seasonality of the propane business, the dilutive effect of the two-class method typically impacts only the three months ending January 31. The dilutive effect on net earnings per common unitholders' interest was $0.04 and $0.03 for the three months ended January 31, 2014 and 2013, respectively. There was no dilutive effect for either the six months endedJanuary 31, 2014 or 2013.

In periods with net losses, the allocation of the net losses to the limited partners and the general partner will be determined based on the same allocation basis specified in Ferrellgas Partners’ partnership agreement that would apply to periods in which there were no undistributed earnings. Additionally, there are no dilutive securities in periods with net losses.

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
	(in thousands, except per unitholders' interest amounts)
Common unitholders’ interest in net earnings	$	56,801	$	55,069	$	35,265	$	40,144
Weighted average common units outstanding - basic	79,129.4		79,015.6		79,102.6		79,014.4
Dilutive securities	29.3		36.1		29.9		40.6
Weighted average common units outstanding - diluted	79,158.7		79,051.7		79,132.5		79,055.0
Basic and diluted net earnings per common unitholders’ interest	$	0.72	$	0.70	$	0.45	$	0.51

18

L. Subsequent events

Ferrellgas evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas' condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that require recognition or disclosure in its condensed consolidated financial statements.

19

FERRELLGAS PARTNERS FINANCE CORP.
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)
CONDENSED BALANCE SHEETS
(unaudited)
	January 31, 2014			July 31, 2013
ASSETS
Cash	$	969		$	969
Total assets	$	969		$	969
Contingencies and commitments (Note B)
STOCKHOLDER'S EQUITY
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	$	1,000		$	1,000
Additional paid in capital	13,007			12,957
Accumulated deficit	(13,038		)	(12,988		)
Total stockholder's equity	$	969		$	969
See notes to condensed financial statements.

FERRELLGAS PARTNERS FINANCE CORP.
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)
CONDENSED STATEMENTS OF EARNINGS
(unaudited)
	For the three months ended January 31,					For the six months ended January 31,
	2014		2013			2014			2013
General and administrative expense	$	—	$	215		$	50		$	215
Net loss	$	—	$	(215	)	$	(50	)	$	(215	)
See notes to condensed financial statements.

20

FERRELLGAS PARTNERS FINANCE CORP.
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
	For the six months ended January 31,
	2014			2013
Cash flows provided by (used in) operating activities:
Net loss	$	(50	)	$	(215	)
Cash used in operating activities	(50		)	(215		)
Cash flows provided by (used in) financing activities:
Capital contribution	50			215
Cash provided by financing activities	50			215
Net change in cash	—			—
Cash - beginning of period	969			969
Cash - end of period	$	969		$	969
See notes to condensed financial statements.

21

FERRELLGAS PARTNERS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas Partners, L.P.)

 (unaudited)

NOTES TO CONDENSED FINANCIAL STATEMENTS

A. Formation

Ferrellgas Partners Finance Corp. (the “Finance Corp.”), a Delaware corporation, was formed on March 28, 1996 and is a wholly-owned subsidiary of Ferrellgas Partners, L.P. (the “Partnership”).

The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the interim periods presented. All adjustments to the condensed financial statements were of a normal recurring nature.

The Finance Corp. has nominal assets, does not conduct any operations and has no employees.

B. Contingencies and commitments

The Finance Corp. serves as co-issuer and co-obligor for the Partnership's $182.0 million, 8.625% senior notes due 2020.

22

FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
	January 31, 2014		July 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	18,176	$	6,307
Accounts and notes receivable, net (including $314,475 and $130,025 of accounts receivable pledged as collateral at January 31, 2014 and July 31, 2013, respectively)	356,359		131,791
Inventories	135,830		117,116
Prepaid expenses and other current assets	44,851		25,582
Total current assets	555,216		280,796
Property, plant and equipment (net of accumulated depreciation of $618,706 and $617,541 at January 31, 2014 and July 31, 2013, respectively)	582,484		589,727
Goodwill	253,331		253,362
Intangible assets (net of accumulated amortization of $357,548 and $346,618 at January 31, 2014 and July 31, 2013, respectively)	182,977		189,516
Other assets, net	43,956		39,531
Total assets	$	1,617,964	$	1,352,932
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable	$	137,073	$	49,128
Short-term borrowings	67,045		50,054
Collateralized note payable	219,000		82,000
Other current liabilities	110,061		118,903
Total current liabilities	533,179		300,085
Long-term debt	968,911		924,940
Other liabilities	35,724		33,431
Contingencies and commitments (Note J)
Partners' capital:
Limited partner	66,249		91,810
General partner	676		938
Accumulated other comprehensive income	13,225		1,728
Total partners' capital	80,150		94,476
Total liabilities and partners' capital	$	1,617,964	$	1,352,932
See notes to condensed consolidated financial statements.

23

FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands)
(unaudited)
	For the three months ended January 31,						For the six months ended January 31,
	2014			2013			2014			2013
Revenues:
Propane and other gas liquids sales	$	789,446		$	583,074		$	1,171,669		$	918,355
Other	80,237			75,791			113,044			103,419
Total revenues	869,683			658,865			1,284,713			1,021,774
Costs and expenses:
Cost of product sold - propane and other gas liquids sales	551,506			376,236			810,260			589,893
Cost of product sold - other	48,709			47,437			62,055			56,634
Operating expense (includes $1.5 million and $0.6 million for the three months ended January 31, 2014 and 2013, respectively, and $2.3 million and $1.3 million for the six months ended January 31, 2014 and 2013, respectively, for non-cash stock and unit-based compensation)	118,277			106,125			222,166			203,207
Depreciation and amortization expense	20,643			20,751			40,858			41,626
General and administrative expense (includes $4.4 million and $2.5 million for the three months ended January 31, 2014 and 2013, respectively, and $8.0 million and $4.9 million for the six months ended January 31, 2014 and 2013, respectively, for non-cash stock and unit-based compensation)	16,475			12,717			30,889			23,872
Equipment lease expense	4,274			3,827			8,340			7,750
Non-cash employee stock ownership plan compensation charge	3,636			7,447			6,679			9,849
Loss on disposal of assets	1,337			2,120			1,694			2,391
Operating income	104,826			82,205			101,772			86,552
Interest expense	(18,047		)	(18,576		)	(36,096		)	(36,970		)
Loss on extinguishment of debt	(20,901		)	—			(21,202		)	—
Other income, net	57			241			273			332
Earnings before income taxes	65,935			63,870			44,747			49,914
Income tax expense	764			917			714			653
Net earnings	$	65,171		$	62,953		$	44,033		$	49,261
See notes to condensed consolidated financial statements.

24

FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
	For the three months ended January 31,						For the six months ended January 31,
	2014			2013			2014			2013
Net earnings	$	65,171		$	62,953		$	44,033		$	49,261
Other comprehensive income (loss):
Change in value of risk management derivatives	5,783			(6,205		)	16,387			71
Reclassification of derivative gains and losses to earnings	(3,826		)	4,434			(4,755		)	8,625
Foreign currency translation adjustment	(14		)	1			(135		)	3
Other comprehensive income (loss)	1,943			(1,770		)	11,497			8,699
Comprehensive income	$	67,114		$	61,183		$	55,530		$	57,960
See notes to condensed consolidated financial statements.

25

FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
(in thousands)
(unaudited)
							Accumulated
							other		Total
	Limited			General			comprehensive		partners'
	partner			partner			income		capital
Balance at July 31, 2013	$	91,810		$	938		$	1,728	$	94,476
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	16,857			172			—		17,029
Contributions in connection with acquisitions	1,500			15			—		1,515
Contributions from partners	250			2			—		252
Distributions	(87,756		)	(896		)	—		(88,652		)
Net earnings	43,588			445			—		44,033
Other comprehensive income	—			—			11,497		11,497
Balance at January 31, 2014	$	66,249		$	676		$	13,225	$	80,150
See notes to condensed consolidated financial statements.

26

FERRELLGAS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	For the six months ended January 31,
	2014			2013
Cash flows provided by (used in) operating activities:
Net earnings	$	44,033		$	49,261
Reconciliation of net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization expense	40,858			41,626
Non-cash employee stock ownership plan compensation charge	6,679			9,849
Non-cash stock and unit-based compensation charge	10,350			6,212
Loss on disposal of assets	1,694			2,391
Non-cash loss on extinguishment of debt	6,526			—
Provision for doubtful accounts	2,105			2,515
Deferred tax expense	616			391
Other	1,582			1,700
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable, net of securitization	(227,911		)	(117,208		)
Inventories	(18,526		)	(2,390		)
Prepaid expenses and other current assets	(10,120		)	(1,493		)
Accounts payable	87,395			55,190
Accrued interest expense	(3,810		)	(116		)
Other current liabilities	(4,595		)	8,348
Other liabilities	721			534
Net cash provided by (used in) operating activities	(62,403		)	56,810
Cash flows provided by (used in) investing activities:
Business acquisitions, net of cash acquired	(5,242		)	(6,488		)
Capital expenditures	(22,873		)	(21,964		)
Proceeds from sale of assets	2,482			6,163
Other	(8		)	—
Net cash used in investing activities	(25,641		)	(22,289		)
Cash flows provided by (used in) financing activities:
Distributions	(88,652		)	(88,557		)
Contributions from partners	252			—
Proceeds from issuance of long-term debt	369,493			22,552
Payments on long-term debt	(327,563		)	(1,868		)
Net additions to (reductions in) short-term borrowings	16,991			(23,052		)
Net additions to collateralized short-term borrowings	137,000			60,000
Cash paid for financing costs	(7,473		)	—
Net cash provided by (used in) financing activities	100,048			(30,925		)
Effect of exchange rate changes on cash	(135		)	3
Net change in cash and cash equivalents	11,869			3,599
Cash and cash equivalents - beginning of period	6,307			8,218
Cash and cash equivalents - end of period	$	18,176		$	11,817
See notes to condensed consolidated financial statements.

27

FERRELLGAS, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, unless otherwise designated)

 (unaudited)

A.    Partnership organization and formation

Ferrellgas, L.P. is a limited partnership that owns and operates propane distribution and related assets. Ferrellgas Partners, L.P. (“Ferrellgas Partners”), a publicly traded limited partnership, holds an approximate 99% limited partner interest in, and consolidates, Ferrellgas, L.P. Ferrellgas, Inc. (the “general partner”), a wholly-owned subsidiary of Ferrell Companies, Inc. (“Ferrell Companies”), holds an approximate 1% general partner interest in Ferrellgas, L.P. and performs all management functions required by Ferrellgas, L.P.

Ferrellgas, L.P. owns a 100% equity interest in Ferrellgas Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt issued by Ferrellgas, L.P.

Ferrellgas, L.P. is engaged primarily in the distribution of propane and related equipment and supplies in the United States. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Therefore, the results of operations for the six months endedJanuary 31, 2014 and 2013 are not necessarily indicative of the results to be expected for a full fiscal year. Ferrellgas, L.P. serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico.

The condensed consolidated financial statements of Ferrellgas, L.P. and subsidiaries reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas, L.P.’s Annual Report on Form 10-K for fiscal 2013.

B.    Summary of significant accounting policies

(1)Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, valuation methods used to value intangibles and goodwill in business combinations, allowance for doubtful accounts, fair value of reporting units, fair value of derivative contracts, and stock and unit-based compensation calculations.

(2)Supplemental cash flow information: For purposes of the condensed consolidated statements of cash flows, Ferrellgas, L.P. considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Certain cash flow and significant non-cash activities are presented below:

	For the six months ended January 31,
	2014		2013
CASH PAID FOR:
Interest	$	37,800	$	34,797
Income taxes	$	179	$	45
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Assets contributed from Ferrellgas Partners in connection with acquisitions	$	1,500	$	—
Liabilities incurred in connection with acquisitions	$	682	$	1,060
Change in accruals for property, plant and equipment additions	$	1,082	$	598

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C.    Supplemental financial statement information

Inventories consist of the following:

	January 31, 2014		July 31, 2013
Propane gas and related products	$	107,179	$	94,946
Appliances, parts and supplies	28,651		22,170
Inventories	$	135,830	$	117,116

In addition to inventories on hand, Ferrellgas, L.P. enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2014, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 49.3 million gallons of propane at fixed prices.

Other current liabilities consist of the following:

	January 31, 2014		July 31, 2013
Accrued interest	$	13,977	$	17,787
Accrued payroll	20,586		30,295
Customer deposits and advances	22,909		20,420
Other	52,589		50,401
Other current liabilities	$	110,061	$	118,903

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

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	54,755	$	48,260	$	100,733	$	92,161
Depreciation and amortization expense	1,440		1,400		2,855		2,927
Equipment lease expense	3,767		3,493		7,394		6,880
	$	59,962	$	53,153	$	110,982	$	101,968

D. Accounts and notes receivable, net and accounts receivable securitization

Accounts and notes receivable, net consist of the following:

	January 31, 2014			July 31, 2013
Accounts receivable pledged as collateral	$	314,475		$	130,025
Accounts receivable	46,009			4,867
Other	477			506
Less: Allowance for doubtful accounts	(4,602		)	(3,607		)
Accounts and notes receivable, net	$	356,359		$	131,791

At January 31, 2014, $314.5 million of trade accounts receivable were pledged as collateral against $219.0 million of collateralized notes payable due to a commercial paper conduit. At July 31, 2013, $130.0 million of trade accounts receivable were pledged as collateral against $82.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from Ferrellgas, L.P. Ferrellgas, L.P. does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. 

As of January 31, 2014, Ferrellgas, L.P. had received cash proceeds of $219.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2013, Ferrellgas, L.P. had received cash proceeds of $82.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 2.0% and 2.4% as of January 31, 2014 and July 31, 2013, respectively.

29

E.    Debt

Short-term borrowings

Ferrellgas, L.P. classified a portion of its secured credit facility borrowings as short-term because it was used to fund working capital needs that management had intended to pay down within the 12 month period following each balance sheet date. As of January 31, 2014 and July 31, 2013, $67.0 million and $50.1 million, respectively, were classified as short-term borrowings. For further discussion see the secured credit facility section below.

Long-term debt

Long-term debt consists of the following:

	January 31, 2014			July 31, 2013
Senior notes
Fixed rate, 6.50%, due 2021	$	500,000		$	500,000
Fixed rate, 6.75%, due 2022	325,000			—
Fixed rate, 9.125%, due 2017, net of unamortized discount of $2,556 at July 31, 2013	—			297,444
Fair value adjustments related to interest rate swaps	(3,197		)	(1,657		)
Secured credit facility
Variable interest rate, expiring October 2018 (net of $67.0 million and $50.1 million classified as short-term borrowings at January 31, 2014 and July 31, 2013, respectively)	140,455			121,346
Notes payable
9.0% and 9.1% weighted average interest rate at January 31, 2014 and July 31, 2013, respectively, due 2014 to 2022, net of unamortized discount of $2,176 and $2,392 at January 31, 2014 and July 31, 2013, respectively	9,836			10,898
	972,094			928,031
Less: current portion, included in other current liabilities on the condensed consolidated balance sheets	3,183			3,091
Long-term debt	$	968,911		$	924,940

Senior Notes

During November 2013, Ferrellgas, L.P. issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. Ferrellgas, L.P. received $319.3 million of net proceeds after deducting underwriters' fees. Ferrellgas, L.P. used the net proceeds to redeem all of its $300.0 million9.125% fixed rate senior notes due October 1, 2017. Ferrellgas, L.P. used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

30

As a result of the above transactions, the scheduled annual principal payments on long-term debt have been updated as follows:

For the fiscal year ending July 31,	Scheduled annual principal payments
2014	$	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	966,872
Total	$	977,467

Secured credit facility

During October 2013, Ferrellgas, L.P. executed an amendment to its secured credit facility. This amendment extended the maturity date to October 2018 and increased the size of the facility from $400.0 million to $500.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million. Ferrellgas, L.P. incurred a loss on extinguishment of debt of $0.3 million related to the writeoff of capitalized financing costs. Borrowings on the amended secured credit facility bear interest, at our option, at a rate equal to either:

• for Base Rate Loans or Swing Line Loans, the Base Rate, which is defined as the higher of i) the federal funds rate plus 0.50%, ii) Bank of America’s prime rate; or iii) the Eurodollar Rate plus 1.00%; plus a margin varying from 0.75% to 1.75%; or

• for Eurodollar Rate Loans, the Eurodollar Rate, which is defined as the LIBOR Rate plus a margin varying from 1.75% to 2.75%.

As of January 31, 2014, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $207.5 million, of which $140.5 million was classified as long-term debt. As of July 31, 2013, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $171.4 million, of which $121.3 million was classified as long-term debt. Additionally, Ferrellgas had $232.2 million and $177.9 million of available borrowing capacity under our secured credit facility as of January 31, 2014 and January 31, 2013, respectively.

Borrowings outstanding at January 31, 2014 and July 31, 2013 under the secured credit facilities had weighted average interest rates of 3.4% and 3.7%, respectively.

The obligations under this credit facility are secured by substantially all assets of Ferrellgas, L.P., the general partner and certain subsidiaries of Ferrellgas, L.P. but specifically excluding (a) assets that are subject to Ferrellgas, L.P.’s accounts receivable securitization facility, (b) the general partner’s equity interest in Ferrellgas Partners and (c) equity interest in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of Ferrellgas, L.P.

Letters of credit outstanding at January 31, 2014 totaled $60.3 million and were used primarily to secure insurance arrangements and to a lesser extent, product purchases. Letters of credit outstanding at July 31, 2013 totaled $53.9 million and were used primarily to secure insurance arrangements and to a lesser extent, commodity hedges and product purchases. At January 31, 2014, Ferrellgas, L.P. had remaining letter of credit capacity of $139.7 million. At July 31, 2013 Ferrellgas, L.P. had remaining letter of credit capacity of $146.1 million. 

Interest rate swaps

During May 2012, Ferrellgas, L.P. entered into a $140.0 million interest rate swap agreement to hedge against changes in the fair value of a portion of its $300.0 million 9.125% fixed rate senior notes due 2017. Ferrellgas, L.P. received 9.125% and paid one-month LIBOR plus 7.96% on the $140.0 million swapped. Ferrellgas, L.P. accounted for this agreement as a fair value hedge. In October 2013, this interest rate swap was terminated. As a result, Ferrellgas, L.P. discontinued hedge accounting treatment for this agreement at a cost of $0.2 million, which was classified as loss on extinguishment of debt when the related senior notes were redeemed as discussed above.

F.  Partners’ capital

Partnership distributions paid

Ferrellgas, L.P. has paid the following distributions:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Ferrellgas Partners	$	47,821	$	47,756	$	87,756	$	87,663
General partner	488		487		896		894
	$	48,309	$	48,243	$	88,652	$	88,557

On February 27, 2014, Ferrellgas, L.P. declared distributions for the three months ended January 31, 2014 to Ferrellgas Partners and the general partner of $40.0 million and $0.4 million, respectively, which are expected to be paid on March 17, 2014.

See additional discussions about transactions with related parties in Note I – Transactions with related parties.

Accumulated other comprehensive income (loss)(“AOCI”)

See Note H – Derivative instruments and hedging activities – for details regarding changes in the fair value of risk management financial derivatives recorded within AOCI for the six months endedJanuary 31, 2014 and 2013.

General partner’s commitment to maintain its capital account

Ferrellgas, L.P.’s partnership agreement allows the general partner to have an option to maintain its 1.0101% general partner interest concurrent with the issuance of other additional equity.

During the six months endedJanuary 31, 2014, the general partner made non-cash contributions of $0.2 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest.

During the six months endedJanuary 31, 2013, the general partner made non-cash contributions of $0.2 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest.

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G.    Fair value measurements

Derivative Financial Instruments

The following table presents Ferrellgas L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of January 31, 2014 and July 31, 2013:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Total
January 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,171		$	—	$	2,171
Propane commodity derivatives	$	—	$	14,333		$	—	$	14,333
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(6,003	)	$	—	$	(6,003	)
July 31, 2013:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	3,783		$	—	$	3,783
Propane commodity derivatives	$	—	$	2,532		$	—	$	2,532
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,998	)	$	—	$	(4,998	)
Propane commodity derivatives	$	—	$	(907	)	$	—	$	(907	)

The fair values of Ferrellgas L.P.’s non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of interest rate swap contracts are based upon third-party quotes or indicative values based on recent market transactions.

H.   Derivative instruments and hedging activities

Ferrellgas, L.P. is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas, L.P. utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Ferrellgas, L.P. also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates.

Derivative instruments and hedging activities

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas, L.P. did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges.

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 January 31, 2014 and July 31, 2013: 

32

	January 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	11,914	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	2,419		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,171		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	6,003
	Total	$	16,504	Total	$	6,003
	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

The following table provides a summary of the effect on Ferrellgas L.P.’s condensed consolidated statements of earnings for the six months endedJanuary 31, 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 January 31,				For the three months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	489	$	883	$	(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 six months ended January 31,				For the six months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,321	$	1,607	$	(7,640	)	$	(10,938	)

The following tables provide a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of comprehensive income for the three and six months endedJanuary 31, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:  

33

	For the three months ended January 31, 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	$	5,846		Cost of product sold- propane and other gas liquids sales	$	(3,826	)
Interest rate swap agreements	(63		)	Interest expense	—
	$	5,783			$	(3,826	)
	For the three months ended January 31, 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	$	(5,612	)	Cost of product sold- propane and other gas liquids sales	$	(4,434	)
Interest rate swap agreements	(593		)	Interest expense	—
	$	(6,205	)		$	(4,434	)

	For the six months ended January 31, 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	$	17,463		Cost of product sold- propane and other gas liquids sales	$	(4,755	)
Interest rate swap agreements	(1,076		)	Interest expense	—
	$	16,387			$	(4,755	)

	For the six months ended January 31, 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	$	914		Cost of product sold- propane and other gas liquids sales	$	(8,625	)
Interest rate swap agreements	(843		)	Interest expense	—
	$	71			$	(8,625	)

The changes in derivatives included in AOCI for the six months endedJanuary 31, 2014 and 2013 were as follows: 

	For the six months ended January 31,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,463			914
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(4,755		)	8,625
Change in value of risk management interest rate derivatives	(1,076		)	(843		)
Ending balance	$	13,698		$	(4,103	)

34

Ferrellgas, L.P. expects to reclassify net gains of approximately $11.9 million to earnings during the next 12 months. These net gains are expected to be offset by reduced margins on propane sales commitments Ferrellgas, L.P. has with its customers that qualify for the normal purchase normal sales exception.

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas, L.P. had no reclassifications to earnings resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship.

As of January 31, 2014, Ferrellgas, L.P. had financial derivative contracts covering 1.4 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane.

Derivative Financial Instruments Credit Risk

Ferrellgas, L.P. is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas, L.P.’s counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas, L.P. maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas, L.P. in the forms of letters of credit, parental guarantees or cash. Although Ferrellgas, L.P. has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, Ferrellgas, L.P. would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was $14.3 million at January 31, 2014.  

Ferrellgas, L.P. holds certain derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon the Ferrellgas, L.P.’s debt rating. At January 31, 2014, a downgrade in the Ferrellgas, L.P.’s debt rating would not trigger any further reduction in credit limit. There were no derivatives with credit-risk-related contingent features in a liability position on January 31, 2014 and Ferrellgas, L.P. had no posted collateral in the normal course of business related to such derivatives.

I.    Transactions with related parties

Ferrellgas, L.P. has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas, L.P.’s partnership agreement, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas, L.P. and all other necessary or appropriate expenses allocable to Ferrellgas, L.P. or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas, L.P.’s business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas, L.P.’s behalf and are reported in the condensed consolidated statements of earnings as follows:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	61,412	$	53,594	$	109,570	$	101,378
General and administrative expense	$	9,200	$	7,183	$	15,101	$	13,456

See additional discussions about transactions with the general partner and related parties in Note F – Partners’ capital.

J.    Contingencies and commitments

Litigation

Ferrellgas, L.P.’s operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, Ferrellgas, L.P. can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, Ferrellgas, L.P. is not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on the consolidated financial condition, results of operations and cash flows of Ferrellgas, L.P.

35

During the first quarter of fiscal 2014 Ferrellgas, L.P. reached a settlement with the Offices of the District Attorneys of several counties in California relating to an investigation of labeling and filling practices relating to the amount of propane contained in barbeque cylinders. Ferrellgas, L.P. has also received notice that the Federal Trade Commission is investigating barbeque cylinder labeling and filling practices and any anti-trust issues relating to cylinder fill level. Ferrellgas, L.P. already paid and reflected in the condensed consolidated financial statements the settlement reached.

Ferrellgas, L.P. has also been named as a defendant in a putative class action lawsuit filed in the United States District Court in Kansas. The complaint was the subject of a motion to dismiss which was granted, in part, in August 2011. The surviving claims allege breach of contract and breach of the implied duty of good faith and fair dealing, both of which allegedly arise from the existence of an oral contract for continuous propane service. Ferrellgas, L.P. believes the claims are without merit and intends to defend them vigorously. The case, which has not been certified for class treatment, is currently on appeal before the Tenth Circuit Court of Appeals following the denial of a motion to arbitrate the individual plaintiff's claim. Ferrellgas, L.P. does not believe loss is probable or reasonably estimable at this time related to this putative class action lawsuit.

K.  Subsequent events

Ferrellgas, L.P. evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas, L.P.’s condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that require recognition or disclosure in its condensed consolidated financial statements.

36

FERRELLGAS FINANCE CORP.
(a wholly-owned subsidiary of Ferrellgas, L.P.)
CONDENSED BALANCE SHEETS
(unaudited)
	January 31, 2014			July 31, 2013
ASSETS
Cash	$	1,100		$	1,100
Total assets	$	1,100		$	1,100
Contingencies and commitments (Note B)
STOCKHOLDER'S EQUITY
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	$	1,000		$	1,000
Additional paid in capital	48,710			43,870
Accumulated deficit	(48,610		)	(43,770		)
Total stockholder's equity	$	1,100		$	1,100
See notes to condensed financial statements.

FERRELLGAS FINANCE CORP.
(a wholly-owned subsidiary of Ferrellgas, L.P.)
CONDENSED STATEMENTS OF EARNINGS
(unaudited)
	For the three months ended January 31,						For the six months ended January 31,
	2014			2013			2014			2013
General and administrative expense	$	4,790		$	3,175		$	4,840		$	4,675
Net loss	$	(4,790	)	$	(3,175	)	$	(4,840	)	$	(4,675	)
See notes to condensed financial statements.

37

FERRELLGAS FINANCE CORP.
(a wholly-owned subsidiary of Ferrellgas, L.P.)
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
	For the six months ended January 31,
	2014			2013
Cash flows provided by (used in) operating activities:
Net loss	$	(4,840	)	$	(4,675	)
Cash used in operating activities	(4,840		)	(4,675		)
Cash flows provided by (used in) financing activities:
Capital contribution	4,840			4,675
Cash provided by financing activities	4,840			4,675
Net change in cash	—			—
Cash - beginning of period	1,100			1,100
Cash - end of period	$	1,100		$	1,100
See notes to condensed financial statements.

38

FERRELLGAS FINANCE CORP.

(a wholly-owned subsidiary of Ferrellgas, L.P.)

  (unaudited)

NOTES TO CONDENSED FINANCIAL STATEMENTS

A.    Formation

Ferrellgas Finance Corp. (the “Finance Corp.”), a Delaware corporation, was formed on January 16, 2003 and is a wholly-owned subsidiary of Ferrellgas, L.P. (the “Partnership”).

The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the interim periods presented. All adjustments to the condensed financial statements were of a normal recurring nature.

The Finance Corp. has nominal assets, does not conduct any operations and has no employees.

B.    Contingencies and commitments

During November 2013, the Partnership issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 with the proceeds used to fund the redemption of $300.0 million of 9.125% fixed rate senior notes due October 1, 2017.

The Finance Corp. serves as co-issuer and co-obligor for the following debt securities of the Partnership:

• $500.0 million, 6.50% senior notes due 2021; and

• $325.0 million, 6.75% senior notes due 2022.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our management’s discussion and analysis of financial condition and results of operations relates to Ferrellgas Partners and the operating partnership.

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. have nominal assets, do not conduct any operations and have no employees other than officers. Ferrellgas Partners Finance Corp. serves as co-issuer and co-obligor for debt securities of Ferrellgas Partners while Ferrellgas Finance Corp. serves as co-issuer and co-obligor for debt securities of the operating partnership. Accordingly, and due to the reduced disclosure format, a discussion of the results of operations, liquidity and capital resources of Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. is not presented.

In this Quarterly Report on Form 10-Q, unless the context indicates otherwise:

• “us,” “we,” “our,” “ours,” or “consolidated” are references exclusively to Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas Partners Finance Corp., Ferrellgas, L.P. and Ferrellgas Finance Corp., except when used in connection with “common units,” in which case these terms refer to Ferrellgas Partners, L.P. without its consolidated subsidiaries;

• “Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, without its consolidated subsidiaries;

• the “operating partnership” refers to Ferrellgas, L.P., together with its consolidated subsidiaries, including Ferrellgas Finance Corp.;

• our “general partner” refers to Ferrellgas, Inc.;

• “Ferrell Companies” refers to Ferrell Companies, Inc., the sole shareholder of our general partner;

• “unitholders” refers to holders of common units of Ferrellgas Partners;

• “retail sales” refers to Propane and other gas liquid sales: Retail — Sales to End Users or the volume of propane sold primarily to our residential, industrial/commercial and agricultural customers;

• “wholesale sales” refers to Propane and other gas liquid sales: Wholesale — Sales to Resellers or the volume of propane sold primarily to our portable tank exchange customers and bulk propane sold to wholesale customers;

• “other gas sales” refers to Propane and other gas liquid sales: Other Gas Sales or the volume of bulk propane sold to other third party propane distributors or marketers and the volume of refined fuel sold;

• “propane sales volume” refers to the volume of propane sold to our retail sales and wholesale sales customers; and

• “Notes” refers to the notes to the condensed consolidated financial statements of Ferrellgas Partners or the operating partnership, as applicable.

Ferrellgas Partners is a holding entity that conducts no operations and has two direct subsidiaries, Ferrellgas Partners Finance Corp. and the operating partnership. Ferrellgas Partners’ only significant assets are its approximate 99% limited partnership interest in the operating partnership and its 100% equity interest in Ferrellgas Partners Finance Corp. The common units of Ferrellgas Partners are listed on the New York Stock Exchange and our activities are primarily conducted through the operating partnership.

The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings, except for interest expense related to the senior notes co-issued by Ferrellgas Partners and Ferrellgas Partners Finance Corp.

Our general partner performs all management functions for us and our subsidiaries and holds a 1% general partner interest in Ferrellgas Partners and an approximate 1% general partner interest in the operating partnership. The parent company of our general partner, Ferrell Companies, beneficially owns approximately 27% of our outstanding common units. Ferrell Companies is owned 100% by an employee stock ownership trust.

40

We file annual, quarterly, and other reports and information with the SEC. You may read and download our SEC filings over the Internet from several commercial document retrieval services as well as at the SEC’s website at www.sec.gov. You may also read and copy our SEC filings at the SEC’s Public Reference Room located at 100 F Street, NE, Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information concerning the Public Reference Room and any applicable copy charges. Because our common units are traded on the New York Stock Exchange under the ticker symbol “FGP,” we also provide our SEC filings and particular other information to the New York Stock Exchange. You may obtain copies of these filings and such other information at the offices of the New York Stock Exchange located at 11 Wall Street, New York, New York 10005. In addition, our SEC filings are available on our website at www.ferrellgas.com at no cost as soon as reasonably practicable after our electronic filing or furnishing thereof with the SEC. Please note that any Internet addresses provided in this Quarterly Report on Form 10-Q are for informational purposes only and are not intended to be hyperlinks. Accordingly, no information found and/or provided at such Internet addresses is intended or deemed to be incorporated by reference herein.

The following is a discussion of our historical financial condition and results of operations and should be read in conjunction with our historical condensed consolidated financial statements and accompanying Notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

The discussions set forth in the “Results of Operations” and “Liquidity and Capital Resources” sections generally refer to Ferrellgas Partners and its consolidated subsidiaries. However, in these discussions there exist two material differences between Ferrellgas Partners and the operating partnership. Those material differences are:

• because Ferrellgas Partners has outstanding $182.0 million in aggregate principal amount of 8.625% senior notes due fiscal 2020, the two partnerships incur different amounts of interest expense on their outstanding indebtedness; see the statements of earnings in their respective condensed consolidated financial statements and Note E – Debt in the respective notes to their condensed consolidated financial statements; and

• Ferrellgas Partners issued common units during both fiscal 2014 and 2013.

Overview

We believe we are a leading distributor of propane and related equipment and supplies to customers primarily in the United States and conduct our business as a single reportable operating segment. We believe we are the second largest retail marketer of propane in the United States as measured by the volume of our retail sales in fiscal 2013 and the largest national provider of propane by portable tank exchange.

We serve residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia and Puerto Rico. Our operations primarily include the distribution and sale of propane and related equipment and supplies with concentrations in the Midwest, Southeast, Southwest and Northwest regions of the United States. Sales from propane distribution are generated principally from transporting propane purchased from third parties to propane distribution locations and then to tanks on customers’ premises or to portable propane tanks delivered to nationwide and local retailers. Sales from portable tank exchanges, nationally branded under the name Blue Rhino, are generated through a network of independent and partnership-owned distribution outlets. Our market areas for our residential and agricultural customers are generally rural while our market areas for our industrial/commercial and portable tank exchange customers are generally urban.

In the residential and industrial/commercial markets, propane is primarily used for space heating, water heating, cooking and other propane fueled appliances. In the portable tank exchange market, propane is used primarily for outdoor cooking using gas grills. In the agricultural market, propane is primarily used for crop drying, space heating, irrigation and weed control. In addition, propane is used for a variety of industrial applications, including as an engine fuel which is burned in internal combustion engines that power vehicles and forklifts and as a heating or energy source in manufacturing and drying processes.

The market for propane is seasonal because of increased demand during the months of November through March (the “winter heating season”) primarily for the purpose of providing heating in residential and commercial buildings. Consequently, sales and operating profits are concentrated in our second and third fiscal quarters, which are during the winter heating season. However, our propane by portable tank exchange sales volumes provide increased operating profits during our first and fourth fiscal quarters due to its counter-seasonal business activities. These sales also provide us the ability to better utilize our seasonal resources at our propane distribution locations. Other factors affecting our results of operations include competitive conditions,

41

volatility in energy commodity prices, demand for propane, timing of acquisitions and general economic conditions in the United States.

We use information on temperatures to understand how our results of operations are affected by temperatures that are warmer or colder than normal. We define “normal” temperatures based on 30 year historical information published by the National Oceanic and Atmospheric Administration (“NOAA”). Based on this information we calculate a ratio of actual heating degree days to normal heating degree days. Heating degree days are a general indicator of weather impacting propane usage.

Weather conditions have a significant impact on demand for propane for heating purposes during the winter heating season. Accordingly, the volume of propane used by our customers for this purpose is affected by the severity of the winter weather in the regions we serve and can vary substantially from year to year. In any given region, sustained warmer-than-normal temperatures will tend to result in reduced propane usage, while sustained colder-than-normal temperatures will tend to result in greater usage. Although there is a strong correlation between weather and customer usage, general economic conditions in the United States and the wholesale price of propane can have a significant impact on this correlation. Additionally, there is a natural time lag between the onset of cold weather and increased sales to customers. If the United States were to experience a cooling trend, we could expect nationwide demand for propane to increase which could lead to greater sales, income and liquidity availability. Conversely, if the United States were to experience a warming trend, we could expect nationwide demand for propane to decrease which could lead to a reduction in our sales, income and liquidity availability. For the quarter ended January 31, 2014, weather in the more highly concentrated geographic areas we serve was 18% colder than that of the prior year and 6% colder than normal.

Our gross margin from the retail distribution of propane is primarily based on the cents-per-gallon difference between the sales prices we charge our customers and our costs to purchase and deliver propane to our propane distribution locations. Our residential customers and portable tank exchange customers typically provide us a greater cents-per-gallon margin than our industrial/commercial, agricultural, wholesale and other customers. We track “Propane sales volumes,” “Revenues – Propane and other gas liquids sales” and “Gross margin – Propane and other gas liquids sales” by customer; however, we are not able to specifically allocate operating and other costs in a manner that would determine their specific profitability with a high degree of accuracy. The wholesale propane price per gallon is subject to various market conditions, including inflation, and may fluctuate based on changes in demand, supply and other energy commodity prices, primarily crude oil and natural gas, as propane prices tend to correlate with the fluctuations of these underlying commodities. Propane prices continued to be volatile in fiscal 2014 as evidenced by increases in the average wholesale market prices at major supply points in Mt. Belvieu, Texas and Conway, Kansas. During the six months ended January 31, 2014, the average wholesale market price was 34% more than the prior year period at Mt. Belvieu, Texas and 69% more than the prior year period at Conway, Kansas. We believe the sustained higher average wholesale prices during the six months ended January 31, 2014 have negatively impacted our propane sales volume as we have passed price increases on to our customers.

We employ risk management activities that attempt to mitigate price risks related to the purchase, storage, transport and sale of propane. We enter into propane sales commitments with a portion of our customers that provide for a contracted price agreement for a specified period of time. These commitments can expose us to product price risk if not immediately economically hedged with an offsetting propane purchase commitment. Moreover, customers may not fulfill their purchase agreement due to the effects of warmer than normal weather, customer conservation or economic conditions.

Our open financial derivative purchase commitments are designated as hedges primarily for fiscal 2014 through 2016 sales commitments and, as of January 31, 2014, have experienced net mark to market gains of approximately $14.3 million. Because these financial derivative purchase commitments qualify for hedge accounting treatment, the resulting asset, liability and related mark to market gains or losses are recorded on the condensed consolidated balance sheets as “Prepaid expenses and other current assets,” "Other assets, net," “Other current liabilities,” "Other liabilities" and “Accumulated other comprehensive income (loss),” respectively, until settled. Upon settlement, realized gains or losses on these contracts will be reclassified to “Cost of product sold-propane and other gas liquid sales” in the condensed consolidated statements of earnings as the underlying inventory is sold. These financial derivative purchase commitment net gains are expected to be offset by decreased margins on propane sales commitments that qualify for the normal purchase normal sale exception. At January 31, 2014, we estimate 70% of currently open financial derivative purchase commitments, the related propane sales commitments and the resulting gross margin will be realized into earnings during the next twelve months.

We enter into interest rate derivative contracts, including swaps, to manage our exposure to interest rate risk associated with our fixed rate senior notes and our floating rate borrowings from both the secured credit facility and the accounts receivable securitization facility. Fluctuations in interest rates subject us to interest rate risk. Decreases in interest rates increase the fair value of our fixed rate debt, while increases in interest rates subject us to the risk of increased interest expense related to our variable rate borrowings.

Our business strategy is to:

42

• expand our operations through disciplined acquisitions and internal growth;

• capitalize on our national presence and economies of scale;

• maximize operating efficiencies through utilization of our technology platform; and

• align employee interests with our investors through significant employee ownership. 

“Net earnings attributable to Ferrellgas Partners, L.P.” in the six months endedJanuary 31, 2014 was $35.6 million compared to $40.5 million in the prior year period. This decrease was primarily due to:

• a $21.2 million loss on extinguishment of debt related to the early extinguishment of all of our $300.0 million 9.125% fixed rate senior notes due October 1, 2017 and related interest rate swap termination;

• an $18.7 million increase in “operating expenses” due primarily to the increase in propane sales volume; and

• a $7.0 million increase in “general and administrative expenses”;

partially offset by the following:

• a $32.9 million increase in “Gross margin – Propane and other gas liquid sales” due primarily to the increase in propane sales volume;

• a $4.2 million increase in “Gross margin – Other”; and

• a $3.2 million decrease in "Non-cash employee stock ownership plan compensation charge" due to a decrease in the allocation of Ferrell Companies shares to employees.

We completed our last annual goodwill impairment test on January 31, 2014. We are not aware of any indicators of impairment.

Forward-looking Statements

This report includes forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. These statements often use words such as “anticipate,” “believe,” “intend,” “plan,” “projection,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” or the negative of those terms or other variations of them or comparable terminology. These statements often discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future and are based upon the beliefs and assumptions of our management and on the information currently available to them. In particular, statements, express or implied, concerning our future operating results or our ability to generate sales, income or cash flow are forward-looking statements.

Forward-looking statements are not guarantees of performance. Undue reliance should not be put on any forward-looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially from those expressed in or implied by these forward-looking statements. Many of the factors that will affect our future results are beyond our ability to control or predict.

Some of our forward-looking statements include the following:

• whether the operating partnership will have sufficient funds to meet its obligations, including its obligations under its debt securities, and to enable it to distribute to Ferrellgas Partners sufficient funds to permit Ferrellgas Partners to meet its obligations with respect to its existing debt;

• whether Ferrellgas Partners and the operating partnership will continue to meet all of the quarterly financial tests required by the agreements governing their indebtedness; and

• our expectations that in fiscal 2014 propane gallons sold will be greater than in fiscal 2013 primarily due to colder than prior year winter weather; our expectations that "Total revenues" and "Cost of product sold-propane and other gas liquids sales" will increase in fiscal 2014 based upon the effect of the current increase in the wholesale price of propane; and our expectations that "Net earnings" in fiscal 2014 will approximate "Net earnings" in fiscal 2013 primarily due to our expectation that net earnings from the colder than prior year temperatures will offset the effect of losses from the restructuring of debt which occurred in November 2013.

When considering any forward-looking statement, keep in mind the risk factors set forth in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for fiscal 2013. Any of these risks could impair our business, financial condition or results of operations. Any such impairment may affect our ability to make distributions to our unitholders or to pay interest on the principal of our debt securities. In addition, the trading price, if any, of our securities could decline as a result of any such impairment.

Except for our ongoing obligations to disclose material information as required by federal securities laws, we undertake no obligation to update any forward-looking statements or risk factors after the date of this Quarterly Report on Form 10-Q.

43

44

Results of Operations

Three months ended January 31, 2014 compared to January 31, 2013

							Favorable
(amounts in thousands)							(Unfavorable)
Three months ended January 31,	2014			2013			Variance
Propane sales volumes (gallons):
Retail – Sales to End Users	246,929			221,796			25,133			11	%
Wholesale – Sales to Resellers	95,922			76,728			19,194			25	%
	342,851			298,524			44,327			15	%
Revenues -
Propane and other gas liquids sales:
Retail – Sales to End Users	$	545,670		$	402,144		$	143,526		36	%
Wholesale – Sales to Resellers	193,093			121,312			71,781			59	%
Other Gas Sales (a)	50,683			59,618			(8,935		)	(15	)%
	$	789,446		$	583,074		$	206,372		35	%
Gross margin -
Propane and other gas liquids sales: (b)
Retail – Sales to End Users (a)	$	187,081		$	172,207		$	14,874		9	%
Wholesale – Sales to Resellers (a)	50,859			34,631			16,228			47	%
	$	237,940		$	206,838		$	31,102		15	%
Gross margin - Other	$	31,528		$	28,354		$	3,174		11	%
Operating income	104,821			82,138			22,683			28	%
Adjusted EBITDA (c)	136,356			116,113			20,243			17	%
Interest expense	(22,090		)	(22,619		)	529			2	%
Interest expense - operating partnership	(18,047		)	(18,576		)	529			3	%
Loss on extinguishment of debt	(20,901		)	—			(20,901		)	NM

NM - Not Meaningful

a) Gross margin from other gas sales is allocated to Gross margin Retail - Sales to End Users and Wholesale - Sales to Resellers based on the volumes of fixed-price sales commitments in each respective category.

b) Gross margin from propane and other gas liquids sales represents “Revenues - propane and other gas liquids sales” less “Cost of product sold – propane and other gas liquids sales” and does not include depreciation and amortization.

c) Adjusted EBITDA is calculated as net earnings attributable to Ferrellgas Partners, L.P. plus income tax expense, interest expense, depreciation and amortization expense, loss on extinguishment of debt, non-cash employee stock ownership plan compensation charge, non-cash stock and unit-based compensation charge, loss on disposal of assets, other income, net, nonrecurring litigation accrual and related legal fees, and net earnings attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows investors to view the partnership's performance in a manner similar to the method management uses, adjusted for items management believes makes it easier to compare its results with other companies that have different financing and capital structures. This method of calculating Adjusted EBITDA may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.

45

The following table summarizes EBITDA and Adjusted EBITDA for the three months ended January 31, 2014 and 2013, respectively:

(amounts in thousands)
Three months ended January 31,	2014			2013
Net earnings attributable to Ferrellgas Partners, L.P.	$	60,464		$	58,207
Income tax expense	764			917
Interest expense	22,090			22,619
Depreciation and amortization expense	20,643			20,751
EBITDA	103,961			102,494
Loss on extinguishment of debt	20,901			—
Non-cash employee stock ownership plan compensation charge	3,636			7,447
Non-cash stock and unit-based compensation charge	5,919			3,120
Loss on disposal of assets	1,337			2,120
Other income, net	(57		)	(241		)
Nonrecurring litigation accrual and related legal fees	—			537
Net earnings attributable to noncontrolling interest	659			636
Adjusted EBITDA	$	136,356		$	116,113

Propane sales volumes during the three months ended January 31, 2014increased15%, or 44.3 million gallons, from that of the prior year period due to 25.1 million of increased gallon sales to retail customers and 19.2 million of increased gallons to wholesale customers. Weather in the more highly concentrated geographic areas we serve for the three months ended January 31, 2014 was approximately 18% colder than that of the prior year period and 6% colder than normal. We believe retail and wholesale customer sales volume increased due to colder weather and heavier than normal propane use for crop drying during an unusually wet harvest season.

Our sales price per gallon correlates to the wholesale market price of propane. The wholesale market price at major supply points in Mt. Belvieu, Texas and Conway, Kansas during the three months ended January 31, 2014 averaged 54% and 105% more than the prior year period, respectively. The wholesale market price at Mt. Belvieu, Texas averaged $1.29 and $0.84 per gallon during the three months ended January 31, 2014 and 2013, respectively, while the wholesale market price at Conway, Kansas averaged $1.58 and $0.77 per gallon during the three months ended January 31, 2014 and 2013, respectively.

Revenues - Propane and other gas liquids sales

Retail sales increased$143.5 million compared to the prior year period. This increase resulted primarily from a $99.3 million increase in sales price per gallon and $44.2 million of increased sales volumes, both as discussed above.

Wholesale sales increased$71.8 million compared to the prior year period. This increase resulted primarily from $46.2 million of increased sales price per gallon and $25.6 million of increased sales volumes, both as discussed above.

Other gas sales decreased$8.9 million compared to the prior year period primarily due to $25.9 million of decreased sales volumes, partially offset by $17.0 million of increased sales price per gallon.

Gross margin - Propane and other gas liquids sales

Gross margin increased $31.1 million primarily due to the 44.3 million increase in gallon sales resulting from a combination of a colder than prior year winter heating season and heavier than normal propane use for crop drying during an unusually wet harvest season. Gross margin for propane and other gas liquid sales calculated on a cents-per-gallon basis is unchanged from that of the prior year period.

Gross margin - other

Gross margin - other increased$3.2 million primarily due to $4.6 million of grilling tool and accessory sales gained through acquisitions.

Operating income

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Operating income increased$22.7 million compared to the prior year period primarily due to a $31.1 million increase in “Gross margin – Propane and other gas liquid sales”, as discussed above, a $3.8 million decrease in "Non-cash employee stock ownership plan compensation charge" and a $3.2 million increase in “Gross margin – Other,” as discussed above, partially offset by a $12.1 million increase in “Operating expense” and a $3.8 million increase in “General and administrative expense”.

"Non-cash employee stock ownership plan compensation charge" decreased primarily due to an additional allocation of Ferrell Companies shares to employees during the prior year that was not repeated in the current year. Operating expense increased primarily due to variable delivery costs related to the increase in propane sales volume and the timing of a $3.7 million increase in performance based incentive expenses. “General and administrative expense” increased primarily due to the timing of a $2.3 million increase in performance based incentive expenses and $1.9 million of increased non-cash stock based compensation charges.

Adjusted EBITDA

Adjusted EBITDA increased$20.2 million compared to the prior year period primarily due to $31.1 million of increased “Gross margin – Propane and other gas liquid sales” and a $3.2 million increase in “Gross margin – Other,” both as discussed above, partially offset by a $11.1 million increase in “Operating expense” and a $1.9 million increase in “General and administrative expense”.

"Operating expense" increased primarily due to variable delivery costs related to the increase in propane sales volume and the timing of a $3.7 million increase in performance based incentive expenses. “General and administrative expense” increased primarily due to the timing of a $2.3 million increase in performance based incentive expenses.

Loss on extinguishment of debt

During the three months ended January 31, 2014, we redeemed the outstanding principal amount on our $300.0 million 9.125% fixed rate senior notes due October 1, 2017, incurring a loss on extinguishment of debt of $20.9 million.

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Six months ended January 31, 2014 compared to January 31, 2013

							Favorable
(amounts in thousands)							(Unfavorable)
Six months ended January 31,	2014			2013			Variance
Propane sales volumes (gallons):
Retail – Sales to End Users	372,181			346,679			25,502			7	%
Wholesale – Sales to Resellers	161,701			131,283			30,418			23	%
	533,882			477,962			55,920			12	%
Revenues -
Propane and other gas liquids sales:
Retail – Sales to End Users	$	769,924		$	608,935		$	160,989		26	%
Wholesale – Sales to Resellers	318,240			224,057			94,183			42	%
Other Gas Sales (a)	83,505			85,363			(1,858		)	(2	)%
	$	1,171,669		$	918,355		$	253,314		28	%
Gross margin -
Propane and other gas liquids sales: (b)
Retail – Sales to End Users (a)	$	268,481		$	256,922		$	11,559		4	%
Wholesale – Sales to Resellers (a)	92,928			71,540			21,388			30	%
	$	361,409		$	328,462		$	32,947		10	%
Gross margin - Other	$	50,989		$	46,785		$	4,204		9	%
Operating income	101,892			86,422			15,470			18	%
Adjusted EBITDA (c)	162,798			147,725			15,073			10	%
Interest expense	(44,183		)	(45,054		)	871			2	%
Interest expense - operating partnership	(36,096		)	(36,970		)	874			2	%
Loss on extinguishment of debt	(21,202		)	—			(21,202		)	NM

NM - Not Meaningful

a) Gross margin from other gas sales is allocated to Gross margin Retail - Sales to End Users and Wholesale - Sales to Resellers based on the volumes of fixed-price sales commitments in each respective category.

b) Gross margin from propane and other gas liquids sales represents “Revenues - propane and other gas liquids sales” less “Cost of product sold – propane and other gas liquids sales” and does not include depreciation and amortization.

c) Adjusted EBITDA is calculated as net earnings attributable to Ferrellgas Partners, L.P. plus income tax expense, interest expense, depreciation and amortization expense, loss on extinguishment of debt, non-cash employee stock ownership plan compensation charge, non-cash stock and unit-based compensation charge, loss on disposal of assets, other income, net, nonrecurring litigation accrual and related legal fees, and net earnings attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows investors to view the partnership's performance in a manner similar to the method management uses, adjusted for items management believes makes it easier to compare its results with other companies that have different financing and capital structures. This method of calculating Adjusted EBITDA may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.

The following table summarizes EBITDA and Adjusted EBITDA for the six months ended January 31, 2014 and 2013, respectively:

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(amounts in thousands)
Six months ended January 31,	2014			2013
Net earnings attributable to Ferrellgas Partners, L.P.	$	35,621		$	40,549
Income tax expense	714			653
Interest expense	44,183			45,054
Depreciation and amortization expense	40,858			41,626
EBITDA	121,376			127,882
Loss on extinguishment of debt	21,202			—
Non-cash employee stock ownership plan compensation charge	6,679			9,849
Non-cash stock and unit-based compensation charge	10,350			6,212
Loss on disposal of assets	1,694			2,391
Other income, net	(273		)	(332		)
Nonrecurring litigation accrual and related legal fees	1,325			1,225
Net earnings attributable to noncontrolling interest	445			498
Adjusted EBITDA	$	162,798		$	147,725

Propane sales volumes during the six months ended January 31, 2014increased12%, or 55.9 million gallons, from that of the prior year period due to 30.4 million of increased gallon sales to wholesale customers and 25.5 million of increased gallons to retail customers. Weather in the more highly concentrated geographic areas we serve for the six months ended January 31, 2014 was approximately 14% colder than that of the prior year period and 3% colder than normal. We believe retail and wholesale customer sales volume increased due to colder weather and heavier than normal propane use for crop drying during an unusually wet harvest season.

Our sales price per gallon correlates to the wholesale market price of propane. The wholesale market price at major supply points in Mt. Belvieu, Texas and Conway, Kansas during the six months ended January 31, 2014 averaged 34% and 69% more than the prior year period, respectively. The wholesale market price at Mt. Belvieu, Texas averaged $1.19 and $0.89 per gallon during the six months ended January 31, 2014 and 2013, respectively, while the wholesale market price at Conway, Kansas averaged $1.32 and $0.78 per gallon during the six months ended January 31, 2014 and 2013, respectively.

Revenues - Propane and other gas liquids sales

Retail sales increased$161.0 million compared to the prior year period. This increase resulted primarily from a $116.2 million increase in sales price per gallon and $44.8 million of increased sales volumes, both as discussed above.

Wholesale sales increased$94.2 million compared to the prior year period. This increase resulted primarily from $58.4 million of increased sales price per gallon and $35.8 million of increased sales volumes, both as discussed above.

Other gas sales decreased$1.9 million compared to the prior year period primarily due to $24.9 million of decreased sales volumes, offset by $23.0 million of increased sales price per gallon.

Gross margin - Propane and other gas liquids sales

Gross margin increased $32.9 million primarily due to the 55.9 million increase in gallon sales resulting from a combination of a colder than prior year winter heating season and heavier than normal propane use for crop drying during an unusually wet harvest season. Gross margin for propane and other gas liquid sales calculated on a cents-per-gallon basis declined slightly from that of the prior year period.

Gross margin - other

Gross margin - other increased$4.2 million primarily due to $5.2 million of grilling tool and accessory sales gained through acquisitions.

Operating income

Operating income increased$15.5 million compared to the prior year period primarily due to $32.9 million of increased “Gross margin – Propane and other gas liquid sales”, a $4.2 million increase in “Gross margin – Other,” both as discussed above, and a $3.2 million decrease in "Non-cash employee stock ownership plan compensation charge", partially offset by a $18.7 million increase in “Operating expense” and a $7.0 million increase in “General and administrative expense”.

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"Non-cash employee stock ownership plan compensation charge" decreased primarily due to an additional allocation of Ferrell Companies shares to employees during the prior year that was not repeated in the current year. Operating expense increased primarily due to variable delivery costs related to the increase in propane sales volume and the timing of a $2.0 million increase in performance based incentive expense. “General and administrative expense” increased primarily due to $3.1 million of increased non-cash stock based compensation charges, the timing of a $1.6 million increase in performance based incentive expenses and $1.5 million in personnel and other corporate costs.

Adjusted EBITDA

Adjusted EBITDA increased$15.1 million compared to the prior year period primarily due to $32.9 million of increased “Gross margin – Propane and other gas liquid sales”, a $4.2 million increase in “Gross margin – Other,” both as discussed above, partially offset by a $17.7 million increase in “Operating expense” and a $3.9 million increase in “General and administrative expense”.

Operating expense increased primarily due to variable delivery costs related to the increase in propane sales volume and the timing of a $2.0 million increase in performance based incentive expense. “General and administrative expense” increased primarily due to the timing of a $1.6 million increase in performance based incentive expenses and $1.5 million in personnel and other corporate costs.

Loss on extinguishment of debt

During the six months ended January 31, 2014, we redeemed the outstanding principal amount on our $300.0 million 9.125% fixed rate senior notes due October 1, 2017, incurring a loss on extinguishment of debt of $20.9 million. We incurred an additional $0.3 million loss on extinguishment of debt related to the write-off of capitalized financing costs as a result of amending our secured credit facility.

Forward-looking statements

We expect propane gallons in fiscal 2014 will be greater than in fiscal 2013 primarily due to colder than prior year winter weather. We expect that "Total revenues" and "Cost of product sold-propane and other gas liquids sales" will increase in fiscal 2014 primarily based upon the effect of the current increase in the wholesale price of propane. We also expect that "Net earnings" in fiscal 2014 will approximate "Net earnings" in fiscal 2013 primarily due to our expectation that net earnings from the colder than prior year temperatures will offset the effect of losses from the restructuring of debt which occurred in November 2013.

Liquidity and Capital Resources

General

Our liquidity and capital resources enable us to fund our working capital requirements, letter of credit requirements, debt service payments, acquisition and capital expenditures and distributions to our unitholders. Our liquidity and capital resources may be affected by our ability to access the capital markets or by unforeseen demands on cash, or other events beyond our control.

During November 2013, we issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. We received $319.3 million of net proceeds after deducting underwriters' fees. We applied the net proceeds to redeem all of our $300.0 million9.125% fixed rate senior notes due October 1, 2017. We used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

During October 2013, we executed an amendment to our secured credit facility. This amendment extended the maturity date to October 2018 and increased the size of the facility from $400.0 million to $500.0 million with no change to the size of the letter of credit sub-limit which remains at $200.0 million.

For the twelve months ended January 31, 2014, our distributable cash flow was approximately 120% of the total cash distributions paid for that period compared to approximately 108% for the twelve months ended October 31, 2013. This increase is the result of an increase in adjusted EBITDA in the second quarter of fiscal 2014 as compared to the same period in fiscal 2013.

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Subject to meeting the financial tests discussed below and also subject to the risk factors identified in our Annual Report on Form 10-K for fiscal 2013 entitled, “Item 1A. Risk Factors,” we believe we will continue to have sufficient access to capital markets at yields acceptable to us to support our expected growth expenditures and refinancing of debt maturities. Our disciplined approach to fund necessary capital spending and other partnership needs, combined with sufficient trade credit to operate our business efficiently and available credit under our secured credit facility and our accounts receivable securitization facility should provide us the means to meet our anticipated liquidity and capital resource requirements.

During periods of high volatility, our risk management activities may expose us to the risk of counterparty margin calls in amounts greater than we have the capacity to fund. Likewise our counterparties may not be able to fulfill their margin calls from us or may default on the settlement of positions with us.

Our working capital requirements are subject to, among other things, the price of propane, delays in the collection of receivables, volatility in energy commodity prices, liquidity imposed by insurance providers, downgrades in our credit ratings, decreased trade credit, significant acquisitions, the weather, customer retention and purchasing patterns and other changes in the demand for propane. Relatively colder weather or higher propane prices during the winter heating season are factors that could significantly increase our working capital requirements.

Our ability to satisfy our obligations is dependent upon our future performance, which will be subject to prevailing economic, financial, business and weather conditions and other factors, many of which are beyond our control. Due to the seasonality of the retail propane distribution business, a significant portion of our cash flow from operations is generated during the winter heating season. Our net cash provided by operating activities primarily reflects earnings from our business activities adjusted for depreciation and amortization and changes in our working capital accounts. Historically, we generate significantly lower net cash from operating activities in our first and fourth fiscal quarters as compared to the second and third fiscal quarters due to the seasonality of our business.

A quarterly distribution of $0.50 will be paid on March 17, 2014 to all common units that were outstanding on March 10, 2014. This represents the seventy-eighth consecutive minimum quarterly distribution paid to our common unitholders dating back to October 1994.

Our secured credit facility, publicly-held debt and accounts receivable securitization facility contain several financial tests and covenants restricting our ability to pay distributions, incur debt and engage in certain other business transactions. In general, these tests are based on our debt-to-cash flow ratio and cash flow-to-interest expense ratio. Our general partner currently believes that the most restrictive of these tests are debt incurrence limitations under the terms of our secured credit and accounts receivable securitization facilities and limitations on the payment of distributions within our 8.625% senior notes due 2020.

As of January 31, 2014, we met all of our required quarterly financial tests and covenants. Based upon current estimates of our cash flow, our general partner believes that we will be able to continue to meet all of our required quarterly financial tests and covenants in fiscal 2014. However, we may not meet the applicable financial tests in future quarters if we were to experience:

• significantly warmer than normal temperatures during the winter heating season;

• a more volatile energy commodity cost environment;

• an unexpected downturn in business operations;

• a change in customer retention or purchasing patterns due to economic or other factors in the United States; or

• a material downturn in the credit and/or equity markets.

Failure to meet applicable financial tests could have a material effect on our operating capacity and cash flows and could restrict our ability to incur debt or to make cash distributions to our unitholders, even if sufficient funds were available. Depending on the circumstances, we may consider alternatives to permit the incurrence of debt or the continued payment of the quarterly cash distribution to our unitholders. No assurances can be given, however, that such alternatives can or will be implemented with respect to any given quarter.

We expect our future capital expenditures and working capital needs to be provided by a combination of cash generated from future operations, existing cash balances, the secured credit facility or the accounts receivable securitization facility. See additional information about the accounts receivable securitization facility in “Financing Activities – Accounts receivable securitization.” In order to reduce existing indebtedness, fund future acquisitions and expansive capital projects, we may obtain funds from our facilities, we may issue additional debt to the extent permitted under existing financing arrangements or we may issue additional equity securities, including, among others, common units.

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Toward this purpose, the following registration statements were effective upon filing or declared effective by the SEC:

• a shelf registration statement for the periodic sale of up to $750.0 million in common units, debt securities and/or other securities; Ferrellgas Partners Finance Corp. may, at our election, be the co-issuer and co-obligor on any debt securities issued by Ferrellgas Partners under this shelf registration statement; as of February 28, 2014, these two registrants collectively had $750.0 million available under this shelf registration statement; and

• an “acquisition” shelf registration statement for the periodic sale of up to $250.0 million in common units to fund acquisitions; as of February 28, 2014, Ferrellgas Partners had $225.8 million available under this shelf registration statement.

Operating Activities

Net cash used in operating activities was $70.2 million for the six months ended January 31, 2014, compared to net cash provided by operating activities of $48.9 million for the six months ended January 31, 2013. This decrease in cash provided by operating activities was primarily due to a $120.1 million increase in working capital requirements partially offset by a $0.8 million increase in cash flow from operations.

The increase in working capital requirements was primarily due to a $110.7 million increase in accounts receivable resulting from the increase in the wholesale price of propane as well as the increase in demand for propane due to colder than prior year temperatures and heavier than normal propane use for crop drying during an unusually wet harvest season during the three months ended January 31, 2014, a $16.1 million increase in inventory from the increase in the wholesale price of propane as well as the timing of inventory purchases, a $13.1 million decrease in other current liabilities primarily due to the timing of payroll, a $8.6 million increase in prepaid expenses and other current assets primarily due to the timing of deposits made toward the purchase of propane appliances and a $3.7 million increase in accrued interest expense due to the timing of interest payments due. These increases in working capital requirements were partially offset by a $32.2 million increase in accounts payable from the timing of purchases and disbursements. 

The increase in cash flow from operations is primarily due to $32.9 million of increased “Gross margin – Propane and other gas liquid sales”, a $4.2 million increase in “Gross margin – Other,” each as discussed above and a $3.2 million decrease in "Non-cash employee stock ownership plan compensation charge" due to a decrease in the allocation of Ferrell Companies shares to employees, partially offset by an $18.7 million increase in “Operating expense”, a $7.0 million increase in “General and administrative expense” and $14.7 million of make whole and consent payments related to the early extinguishment of all of our $300.0 million 9.125% fixed rate senior notes due October 1, 2017.

The operating partnership

Net cash used in operating activities was $62.4 million for the six months ended January 31, 2014, compared to net cash provided by operating activities of $56.8 million for the six months ended January 31, 2013. This decrease in cash provided by operating activities was primarily due to a $119.9 million increase in working capital requirements partially offset by a $0.5 million increase in cash flow from operations.

The increase in working capital requirements was primarily due to a $110.7 million increase in accounts receivable resulting from the increase in the wholesale price of propane as well as the increase in demand for propane due to colder than prior year temperatures and heavier than normal propane use for crop drying during an unusually wet harvest season during the three months ended January 31, 2014, a $16.1 million increase in inventory from the increase in the wholesale price of propane as well as the timing of inventory purchases, a $12.9 million decrease in other current liabilities primarily due to the timing of payroll, a $8.6 million increase in prepaid expenses and other current assets primarily due to the timing of deposits made toward the purchase of propane appliances and a $3.7 million increase in accrued interest expense due to the timing of interest payments due. These increases in working capital requirements were partially offset by a $32.2 million increase in accounts payable from the timing of purchases and disbursements. 

The increase in cash flow from operations is primarily due to $32.9 million of increased “Gross margin – Propane and other gas liquid sales”, a $4.2 million increase in “Gross margin – Other,” each as discussed above and a $3.2 million decrease in "Non-cash employee stock ownership plan compensation charge" due to a decrease in the allocation of Ferrell Companies shares to employees, partially offset by a $19.0 million increase in “Operating expense”, a $7.0 million increase in “General and administrative expense” and $14.7 million of make whole and consent payments related to the early extinguishment of all of our $300.0 million 9.125% fixed rate senior notes due October 1, 2017.

Investing Activities

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Net cash used in investing activities was $25.6 million for the six months ended January 31, 2014, compared to net cash used in investing activities of $22.3 million for the six months ended January 31, 2013. This increase in net cash used in investing activities is primarily due to a decrease of $3.7 million in “Proceeds from sale of assets” resulting primarily from the one-time sale of underutilized assets during the prior year period that was not repeated during the current year period.

Financing Activities

Net cash provided by financing activities was $107.8 million for the six months ended January 31, 2014, compared to net cash used in financing activities of $23.0 million for the six months ended January 31, 2013. This increase in net cash provided by financing activities was primarily due to a $117.0 million net increase in the short term portion of our secured credit facility and accounts receivable securitization facility borrowings, both of which are a result of the working capital requirements discussed in operating activities above and a $21.2 million net increase in proceeds from long-term borrowings as discussed below. This increase was partially offset by $7.5 million in "Cash paid for financing costs".

During November 2013, we issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. We received $319.3 million of net proceeds after deducting underwriters' fees. We used the net proceeds to redeem all of our $300.0 million 9.125% fixed rate senior notes due October 1, 2017. We used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

Distributions

Ferrellgas Partners paid a $0.50 per unit quarterly distribution on all common units, as well as the related general partner distributions, totaling $79.9 million during the six months ended January 31, 2014 in connection with the distributions declared for the three months ended July 31, 2013 and October 31, 2013. The quarterly distribution on all common units and the related general partner distribution for the three months ended January 31, 2014 of $40.0 million are expected to be paid on March 17, 2014 to holders of record on March 10, 2014.

Secured credit facility

During October 2013, we executed an amendment to our secured credit facility. This amendment extended the maturity date to October 2018 and increased the size of the facility from $400.0 million to $500.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million.

As of January 31, 2014, we had total borrowings outstanding under our secured credit facility of $207.5 million, of which $140.5 million was classified as long-term debt. Additionally, Ferrellgas had $232.2 million and $177.9 million of available borrowing capacity under our secured credit facility as of January 31, 2014 and January 31, 2013, respectively.

Borrowings outstanding at January 31, 2014 under the secured credit facility had a weighted average interest rate of 3.4%. All borrowings under the secured credit facility bear interest, at our option, at a rate equal to either:

• for Base Rate Loans or Swing Line Loans, the Base Rate, which is defined as the higher of i) the federal funds rate plus 0.50%, ii) Bank of America’s prime rate; or iii) the Eurodollar Rate plus 1.00%; plus a margin varying from 0.75% to 1.75%; or

• for Eurodollar Rate Loans, the Eurodollar Rate, which is defined as the LIBOR Rate plus a margin varying from 1.75% to 2.75%.

As of January 31, 2014, the federal funds rate and Bank of America’s prime rate were 0.07% and 3.25%, respectively. As of January 31, 2014, the one-month and three-month Eurodollar Rates were 0.19% and 0.26%, respectively.

In addition, an annual commitment fee is payable at a per annum rate ranging from 0.35% to 0.50% times the actual daily amount by which the facility exceeds the sum of (i) the outstanding amount of revolving credit loans and (ii) the outstanding amount of letter of credit obligations.

The obligations under this credit facility are secured by substantially all assets of the operating partnership, the general partner and certain subsidiaries of the operating partnership but specifically excluding (a) assets that are subject to the operating partnership’s accounts receivable securitization facility, (b) the general partner’s equity interest in Ferrellgas Partners and (c)

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equity interest in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of the operating partnership.

Letters of credit outstanding at January 31, 2014 totaled $60.3 million and were used primarily to secure insurance arrangements and, to a lesser extent, product purchases. At January 31, 2014, we had remaining letter of credit capacity of $139.7 million.

All standby letter of credit commitments under our secured credit facility bear a per annum rate varying from 1.75% to 2.75% (as of January 31, 2014, the rate was 2.50%) times the daily maximum amount available to be drawn under such letter of credit. Letter of credit fees are computed on a quarterly basis in arrears.

Accounts receivable securitization

Ferrellgas Receivables is accounted for as a consolidated subsidiary. Expenses associated with accounts receivable securitization transactions are recorded in “Interest expense” in the consolidated statements of earnings. Additionally, borrowings and repayments associated with these transactions are recorded in “Cash flows from financing activities” in the consolidated statements of cash flows.

Cash flows from our accounts receivable securitization facility increased$77.0 million. We received net funding of $137.0 million from this facility during the six months ended January 31, 2014 as compared to receiving net funding of $60.0 million from this facility in the prior year period.

Our strategy is to maximize liquidity by utilizing the accounts receivable securitization facility along with borrowings under the secured credit facility. See additional discussion about the secured credit facility in “Financing Activities – Secured credit facility.” Our utilization of the accounts receivable securitization facility is limited by the amount of accounts receivable that we are permitted to securitize according to the facility agreement. As of January 31, 2014, we had received cash proceeds of $219.0 million related to the securitization of our trade accounts receivable, with no remaining capacity to receive additional proceeds. As of January 31, 2014, the weighted average interest rate was 2.0%. As our trade accounts receivable increase during the winter heating season, the securitization facility permits us to receive greater proceeds as eligible trade accounts receivable increases, thereby providing additional cash for working capital needs.

Debt issuances and repayments

During November 2013, we issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. We received $319.3 million of net proceeds after deducting underwriters' fees. We applied the net proceeds to redeem all of our $300.0 million 9.125% fixed rate senior notes due October 1, 2017. We used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

The operating partnership

The financing activities discussed above also apply to the operating partnership except for cash flows related to distributions and contributions received, as discussed below.

Distributions

The operating partnership paid cash distributions of $88.7 million and $88.6 million during the six months ended January 31, 2014 and 2013, respectively. The operating partnership expects to pay cash distributions of $40.4 million on March 17, 2014.

Disclosures about Effects of Transactions with Related Parties

We have no employees and are managed and controlled by our general partner. Pursuant to our partnership agreement, our general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on our behalf, and all other necessary or appropriate expenses allocable to us or otherwise reasonably incurred by our general partner in connection with operating our business. These reimbursable costs, which totaled $124.7 million for the six months ended January 31, 2014, include operating expenses such as compensation and benefits paid to employees of our general partner who perform services on our behalf, as well as related general and administrative expenses and severance costs.  

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Related party common unitholder information consisted of the following:

	Common unit ownership at	Distributions (in thousands) paid during the six months ended
	January 31, 2014	January 31, 2014
Ferrell Companies (1)	21,469,664	$	21,470
FCI Trading Corp. (2)	195,686	196
Ferrell Propane, Inc. (3)	51,204	52
James E. Ferrell (4)	4,358,475	4,358

(1) Ferrell Companies is the sole shareholder of our general partner.

(2) FCI Trading Corp. is an affiliate of the general partner and is wholly-owned by Ferrell Companies.

(3) Ferrell Propane, Inc. is wholly-owned by our general partner.

(4) James E. Ferrell is the Chairman of the Board of Directors of our general partner.

During the six months ended January 31, 2014, Ferrellgas Partners and the operating partnership together paid the general partner distributions of $1.7 million.

On March 17, 2014, Ferrellgas Partners expects to pay distributions to Ferrell Companies, FCI Trading Corp., Ferrell Propane, Inc., James E. Ferrell (indirectly) and the general partner of $10.7 million, $0.1 million, $26 thousand, $2.2 million and $0.8 million, respectively.

Contractual Obligations

In the performance of our operations, we are bound by certain contractual obligations.

The following table summarizes our long-term debt and fixed rate interest obligations at January 31, 2014. These obligations reflect the issuance of $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par and the subsequent redemption of $300.0 million 9.125% fixed rate senior notes due October 1, 2017, as discussed above.

	Payment or settlement due by fiscal year
(in thousands)	2014		2015		2016		2017		2018		Thereafter		Total
Long-term debt, including current portion (1)	$	795	$	3,053	$	2,997	$	2,676	$	1,074	$	1,148,872	$	1,159,467
Fixed rate interest obligations (2)	39,455		70,135		70,135		70,135		70,135		205,676		525,671

_________________________________

(1) We have long and short-term payment obligations under agreements such as our senior notes and our credit facility. Amounts shown in the table represent our scheduled future maturities of long-term debt (including current maturities thereof) for the periods indicated. For additional information regarding our debt obligations, please see “Liquidity and Capital Resources — Financing Activities."

(2) Fixed rate interest obligations represent the amount of interest due on fixed rate long-term debt. These amounts do not include interest on the long term portion of our credit facility, a variable rate debt obligation.

The operating partnership

The contractual obligation updates included in the table above also apply to the operating partnership and are summarized in the table below:

	Payment or settlement due by fiscal year
(in thousands)	2014		2015		2016		2017		2018		Thereafter		Total
Long-term debt, including current portion (1)	$	795	$	3,053	$	2,997	$	2,676	$	1,074	$	966,872	$	977,467
Fixed rate interest obligations (2)	31,606		54,438		54,438		54,438		54,438		174,280		423,638

_________________________________

(1) The operating partnership has long and short-term payment obligations under agreements such as the operating partnership’s senior notes and credit facility. Amounts shown in the table represent the operating partnership’s scheduled future maturities of long-term debt (including current maturities thereof) for the periods indicated. For additional

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information regarding the operating partnership’s debt obligations, please see “Liquidity and Capital Resources — Financing Activities.”

(2) Fixed rate interest obligations represent the amount of interest due on fixed rate long-term debt. These amounts do not include interest on the long term portion of our credit facility, a variable rate debt obligation.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We did not enter into any risk management trading activities during the six months ended January 31, 2014. Our remaining market risk sensitive instruments and positions have been determined to be “other than trading.”

Commodity Price Risk Management

Our risk management activities primarily attempt to mitigate price risks related to the purchase, storage, transport and sale of propane generally in the contract and spot markets from major domestic energy companies on a short-term basis. We attempt to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts.

Our risk management strategy involves taking positions in the forward or financial markets that are equal and opposite to our positions in the physical products market in order to minimize the risk of financial loss from an adverse price change. This risk management strategy is successful when our gains or losses in the physical product markets are offset by our losses or gains in the forward or financial markets. These financial derivatives are designated as cash flow hedges.

Our risk management activities include the use of financial derivative instruments including, but not limited to, price swaps, options, futures and basis swaps to seek protection from adverse price movements and to minimize potential losses. We enter into these financial derivative instruments directly with third parties in the over-the-counter market and with brokers who are clearing members with the New York Mercantile Exchange. We also enter into forward propane purchase and sales contracts with counterparties. These forward contracts qualify for the normal purchase normal sales exception within GAAP guidance and are therefore not recorded on our financial statements until settled.

Market risks associated with energy commodities are monitored daily by senior management for compliance with our commodity risk management policy. This policy includes an aggregate dollar loss limit and limits on the term of various contracts. We also utilize volume limits for various energy commodities and review our positions daily where we remain exposed to market risk, so as to manage exposures to changing market prices.

We have prepared a sensitivity analysis to estimate the exposure to market risk of our energy commodity positions. Forward contracts, futures, swaps and options outstanding as of January 31, 2014 and July 31, 2013, that were used in our risk management activities were analyzed assuming a hypothetical 10% adverse change in prices for the delivery month for all energy commodities. The potential loss in future earnings from these positions due to a 10% adverse movement in market prices of the underlying energy commodities was estimated at $6.3 million and $10.3 million as of January 31, 2014 and July 31, 2013, respectively. The preceding hypothetical analysis is limited because changes in prices may or may not equal 10%, thus actual results may differ. Our sensitivity analysis does not include the anticipated transactions associated with these hedging transactions, which we anticipate will be 100% effective.

Credit Risk

We maintain credit policies with regard to our counterparties for propane procurement that we believe significantly minimize overall credit risk. These policies include an evaluation of counterparties’ financial condition (including credit ratings), and entering into agreements with counterparties that govern credit guidelines.

These counterparties consist of major energy companies who are suppliers, wholesalers, retailers, end users and financial institutions. The overall impact due to certain changes in economic, regulatory and other events may impact our overall exposure to credit risk, either positively or negatively in that counterparties may be similarly impacted. Based on our policies, exposures, credit and other reserves, management does not anticipate a material adverse effect on financial position or results of operations as a result of counterparty performance. 

Interest Rate Risk

At January 31, 2014, we had $426.5 million in variable rate secured credit facility and collateralized note payable borrowings. Thus, assuming a one percent increase in our variable interest rate, our interest rate risk related to these borrowings would result in a loss in future earnings of $4.3 million for the twelve months ending January 31,2015. The preceding hypothetical analysis is limited because changes in interest rates may or may not equal one percent, thus actual results may differ. We manage a portion of our interest rate exposure by utilizing interest rate swaps. To the extent that we have debt with

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variable interest rates that is not hedged, our results of operations, cash flows and financial condition could be materially adversely affected by significant increases in interest rates. In October 2013, our interest rate swap maturing in 2017 was terminated. As a result, we discontinued hedge accounting treatment for the agreement associated with this swap at a cost of $0.2 million.

We have the following interest rate swaps outstanding as of January 31, 2014, all of which are designated as hedges for accounting purposes:

Term	Notional Amount(s) (in thousands)	Type
May-21	$140,000	Pay a floating rate and receive a fixed rate of 6.50%
Aug-18 (1)	$175,000 and $100,000	Forward starting to pay a fixed rate of 1.95% and receive a floating rate

(1) These forward starting swaps have an effective date of August 2015 and a term of three years.

A hypothetical one percent change in interest rates would result in a net change in earnings of $1.4 million for the twelve months ending January 31,2015. There would be no effect on cash flows due to a hypothetical change in interest rates on the $175.0 million swap because its forward start date is August 2015. The preceding hypothetical analysis is limited because changes in interest rates may or may not equal one percent, thus actual results may differ.

ITEM 4.    CONTROLS AND PROCEDURES

An evaluation was performed by the management of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp., with the participation of the principal executive officer and principal financial officer of our general partner, of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our management, including our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act, were effective.

The management of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp. does not expect that our disclosure controls and procedures will prevent all errors and all fraud. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Based on the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the above mentioned Partnerships and Corporations have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events. Therefore, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Our disclosure controls and procedures are designed to provide such reasonable assurances of achieving our desired control objectives, and the principal executive officer and principal financial officer of our general partner have concluded, as of January 31, 2014, that our disclosure controls and procedures are effective in achieving that level of reasonable assurance.

57

During the most recent fiscal quarter ended January 31, 2014, there have been no changes in our internal control over financial reporting (as defined in Rule 13a–15(f) or Rule 15d–15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

58

PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

Our operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, we are threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, we are not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on our financial condition, results of operations and cash flows.

    During the first quarter of fiscal 2014 we reached a settlement with the Offices of the District Attorneys of several counties in California relating to an investigation of labeling and filling practices relating to the amount of propane contained in barbeque cylinders. We have also received notice that the Federal Trade Commission is investigating barbeque cylinder labeling and filling practices and any anti-trust issues relating to cylinder fill level. We already paid and reflected in the condensed consolidated financial statements the settlement reached.

    We have also been named as a defendant in a putative class action lawsuit filed in the United States District Court in Kansas. The complaint was the subject of a motion to dismiss which was granted, in part, in August, 2011. The surviving claims allege breach of contract and breach of the implied duty of good faith and fair dealing, both of which allegedly arise from the existence of an oral contract for continuous propane service. We believe that the claims are without merit and intend to defend them vigorously. The case, which has not been certified for class treatment, is currently on appeal before the Tenth Circuit Court of Appeals following the denial of a motion to arbitrate the individual plaintiff's claim. We do not believe loss is probable or reasonably estimable at this time related to this putative class action lawsuit.

ITEM 1A.    RISK FACTORS

There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for fiscal 2013.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.     OTHER INFORMATION

None.

59

ITEM 6.     EXHIBITS

The exhibits listed below are furnished as part of this Quarterly Report on Form 10-Q. Exhibits required by Item 601 of Regulation S-K of the Securities Act, which are not listed, are not applicable.

Exhibit Number	Description
3.1	Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated as of February 18, 2003. Incorporated by reference to Exhibit 3.1 to our registration statement on Form S-3 filed March 6, 2009.
3.2	First Amendment to Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated as of March 8, 2005. Incorporated by reference to Exhibit 3.2 to our registration statement on Form S-3 filed March 6, 2009.
3.3	Second Amendment to Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated as of June 29, 2005. Incorporated by reference to Exhibit 3.3 to our registration statement on Form S-3 filed March 6, 2009.
3.4	Third Amendment to Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated as of October 11, 2006. Incorporated by reference to Exhibit 3.4 to our registration statement on Form S-3 filed March 6, 2009.
3.5	Certificate of Incorporation of Ferrellgas Partners Finance Corp. filed with the Delaware Division of Corporations on March 28, 1996. Incorporated by reference to Exhibit 3.6 to our registration statement on Form S-3 filed March 6, 2009.
3.6	Bylaws of Ferrellgas Partners Finance Corp. adopted as of April 1, 1996. Incorporated by reference to Exhibit 3.7 to our registration statement on Form S-3 filed March 6, 2009.
3.7	Third Amended and Restated Agreement of Limited Partnership of Ferrellgas, L.P. dated as of April 7, 2004. Incorporated by reference to Exhibit 3.5 to our registration statement on Form S-3 filed March 6, 2009.
3.8	Certificate of Incorporation of Ferrellgas Finance Corp. filed with the Delaware Division of Corporations on January 16, 2003. Incorporated by reference to Exhibit 3.8 to our registration statement on Form S-3 filed March 6, 2009.
3.9	Bylaws of Ferrellgas Finance Corp. adopted as of January 16, 2003. Incorporated by reference to Exhibit 3.9 to our registration statement on Form S-3 filed March 6, 2009.
4.1	Specimen Certificate evidencing Common Units representing Limited Partner Interests. Incorporated by reference to Exhibit A of Exhibit 3.1 to our registration statement on Form S-3 filed March 6, 2009.
4.2	Indenture dated as of November 4, 2013 with form of Note attached, among Ferrellgas, L.P., Ferrellgas Finance Corp. and U.S. Bank National Association, as trustee, relating to $325 million aggregate amount of the Registrant’s 6 3/4% Senior Notes due 2022. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed November 5, 2013.
4.3	Indenture dated as of April 13, 2010, among Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp. and U.S. Bank National Association, as trustee, relating to $280 million aggregate amount of the Registrant’s 8 5/8% Senior Notes due 2020. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed April 13, 2010.
4.4	First Supplemental Indenture dated as of April 13, 2010, with form of Note attached, among Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp. and U.S. Bank National Association, as trustee, relating to $280 million aggregate amount of the Registrant’s 8 5/8% Senior Notes due 2020. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed April 13, 2010.
4.5	Indenture dated as of November 24, 2010, among Ferrellgas, L.P., Ferrellgas Finance Corp. and U.S. Bank National Association, as trustee, relating to $500 million aggregate amount of the Registrant’s 6 1/2% Senior Notes due 2021. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed November 30, 2010.
4.6	Registration Rights Agreement dated as of December 17, 1999, by and between Ferrellgas Partners, L.P. and Williams Natural Gas Liquids, Inc. Incorporated by reference to Exhibit 4.8 to our Quarterly Report on Form 10-Q filed March 10, 2009.
4.7	First Amendment to Registration Rights Agreement dated as of March 14, 2000, by and between Ferrellgas Partners, L.P. and Williams Natural Gas Liquids, Inc. Incorporated by reference to Exhibit 4.9 to our Quarterly Report on Form 10-Q filed March 10, 2009.
4.8	Second Amendment to Registration Rights Agreement dated as of April 6, 2001, by and between Ferrellgas Partners, L.P. and The Williams Companies, Inc. Incorporated by reference to Exhibit 4.10 to our Quarterly Report on Form 10-Q filed March 10, 2009.
4.9	Third Amendment to Registration Rights Agreement dated as of June 29, 2005, by and between Ferrellgas Partners, L.P. and JEF Capital Management, Inc. Incorporated by reference to Exhibit 4.13 to our Quarterly Report on Form 10-Q filed June 9, 2010.
4.10	Registration Rights Agreement dated as of November 4, 2013 by and among Ferrellgas, L.P., Ferrellgas Finance Corp. and the initial purchasers named therein. Incorporated by reference to Exhibit 4.3 to our Current Report on Form 8-K filed November 5, 2013.
10.1	Credit Agreement dated as of November 2, 2009, among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, Bank of America, N.A. as administrative agent, swing line lender and L/C issuer, and the lenders party hereto. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed November 4, 2009.
10.2	First Amendment to Credit Agreement dated as of September 23, 2011, among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, Bank of America, N.A. as administrative agent, swing line lender and L/C issuer, and the lenders party hereto. Incorporated by reference to Exhibit 10.2 to our Annual Report on Form 10-K filed September 26, 2011.
10.3	Second Amendment to Credit Agreement dated as of October 21, 2013, among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, Bank of America, N.A. as administrative agent, swing line lender and L/C issuer, and the lenders party hereto. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed October 23, 2013.
10.4	Amended and Restated Receivable Sale Agreement dated as of January 19, 2012, between Ferrellgas, L.P. and Blue Rhino Global Sourcing, Inc., as originators, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed January 20, 2012.
10.5	Receivables Purchase Agreement dated as of January 19, 2012, among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, the purchasers from time to time party hereto, Fifth Third Bank and SunTrust Bank, as co-agents, and Wells Fargo Bank, N.A., as administrative agent. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed January 20, 2012.

E-1

		10.6	First Amendment to Receivables Purchase Agreement dated as of April 30, 2012, among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, the purchasers from time to time party hereto, Fifth Third Bank and SunTrust Bank, as co-agents, and Wells Fargo Bank, N.A., as administrative agent. Incorporated by reference to Exhibit 10.5 to our Quarterly Report on Form 10-Q filed June 8, 2012.
	#	10.7	Ferrell Companies, Inc. Supplemental Savings Plan, as amended and restated effective January 1, 2010. Incorporated by reference to Exhibit 10.14 to our Quarterly Report on Form 10-Q filed March 10, 2010.
	#	10.8	Second Amended and Restated Ferrellgas Unit Option Plan, effective April 19, 2001. Incorporated by reference to Exhibit 10.5 to our Annual Report on Form 10-K filed September 28, 2010.
	#	10.9	Ferrell Companies, Inc. 1998 Incentive Compensation Plan, as amended and restated effective October 11, 2004. Incorporated by reference to Exhibit 10.22 to our Annual Report on Form 10-K filed September 28, 2009.
	#	10.10	Amendment to Ferrell Companies, Inc. 1998 Incentive Compensation Plan, dated as of March 7, 2010. Incorporated by reference to Exhibit 10.7 to our Quarterly Report on Form 10-Q filed June 9, 2010.
	#	10.11	Employment, Confidentiality, and Noncompete Agreement dated as of July 17, 1998 by and among Ferrell Companies, Inc. as the company, Ferrellgas, Inc. as the company, James E. Ferrell as the executive and LaSalle National Bank as trustee of the Ferrell Companies, Inc. Employee Stock Ownership Trust. Incorporated by reference to Exhibit 10.19 to our Quarterly Report on Form 10-Q filed March 10, 2009.
	#	10.12	Change In Control Agreement dated as of October 9, 2006 by and between Ferrellgas, Inc. as the company and James E. Ferrell as the executive. Incorporated by reference to Exhibit 10.10 to our Quarterly Report on Form 10-Q filed December 9, 2011.
	#	10.13	Employment Agreement dated as of August 10, 2009 by and between Ferrellgas, Inc. as the company and Stephen L. Wambold as the executive. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed August 10, 2009.
	#	10.14	Employment Agreement dated as of August 10, 2009 by and between Ferrellgas, Inc. as the company and James R. VanWinkle as the executive. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed August 10, 2009.
	#	10.15	Employment Agreement dated as of August 10, 2009 by and between Ferrellgas, Inc. as the company and Tod Brown as the executive. Incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K filed August 10, 2009.
	#	10.16	Employment Agreement dated as of August 10, 2009 by and between Ferrellgas, Inc. as the company and George L. Koloroutis as the executive. Incorporated by reference to Exhibit 10.6 to our Current Report on Form 8-K filed August 10, 2009.
	#	10.17	Agreement and Release dated as of January 19, 2012 by and between Ferrellgas, Inc. as the company and George L. Koloroutis as the executive. Incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed January 20, 2012.
	#	10.18	Employment Agreement dated as of September 25, 2013 by and between Ferrell Companies, Inc. as the company and Boyd H. McGathey as the executive. Incorporated by reference to Exhibit 10.17 to our Annual Report on Form 10-K filed September 26, 2013.
		10.19	ISDA 2002 Master Agreement and Schedule to the 2002 ISDA Master Agreement both dated as of May 3, 2012 together with three Confirmation of Swap Transaction documents each dated as of May 8, 2012, all between SunTrust Bank and Ferrellgas, L.P. Incorporated by reference to Exhibit 10.17 to our Quarterly Report on Form 10-Q filed June 8, 2012.
	#	10.20	Form of Director/Officer Indemnification Agreement, by and between Ferrellgas, Inc. and each director and executive officer. Incorporated by reference to Exhibit 10.16 to our Quarterly Report on Form 10-Q filed March 9, 2012.
		16.1	Deloitte & Touche LLP letter regarding change in certifying accountant.  Incorporated by reference to Exhibit 16.1 to our CurrentReport on Form 8-K filed September 7, 2012.
*		31.1	Certification of Ferrellgas Partners, L.P. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*		31.2	Certification of Ferrellgas Partners Finance Corp. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*		31.3	Certification of Ferrellgas, L.P. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*		31.4	Certification of Ferrellgas Finance Corp. pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.
*		32.1	Certification of Ferrellgas Partners, L.P. pursuant to 18 U.S.C. Section 1350.
*		32.2	Certification of Ferrellgas Partners Finance Corp. pursuant to 18 U.S.C. Section 1350.
*		32.3	Certification of Ferrellgas, L.P. pursuant to 18 U.S.C. Section 1350.
*		32.4	Certification of Ferrellgas Finance Corp. pursuant to 18 U.S.C. Section 1350.
*		101.INS	XBRL Instance Document.
*		101.SCH	XBRL Taxonomy Extension Schema Document.
*		101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
*		101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
*		101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
*		101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
		*	Filed herewith
		#	Management contracts or compensatory plans.

E-2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		FERRELLGAS PARTNERS, L.P.
		By Ferrellgas, Inc. (General Partner)
Date:	March 10, 2014	By	/s/ J. Ryan VanWinkle
			J. Ryan VanWinkle
			Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer)
		FERRELLGAS PARTNERS FINANCE CORP.
Date:	March 10, 2014	By	/s/ J. Ryan VanWinkle
			J. Ryan VanWinkle
			Chief Financial Officer and Sole Director
		FERRELLGAS, L.P.
		By Ferrellgas, Inc. (General Partner)
Date:	March 10, 2014	By	/s/ J. Ryan VanWinkle
			J. Ryan VanWinkle
			Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer)
		FERRELLGAS FINANCE CORP.
Date:	March 10, 2014	By	/s/ J. Ryan VanWinkle
			J. Ryan VanWinkle
			Chief Financial Officer and Sole Director

E-3

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

FERRELLGAS PARTNERS, L.P.

I, Stephen L. Wambold, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas Partners, L.P. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold

Chief Executive Officer and President of

Ferrellgas, Inc., general partner of the Registrant

CERTIFICATIONS

FERRELLGAS PARTNERS, L.P.

I, J. Ryan VanWinkle, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas Partners, L.P. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., general partner of the Registrant

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

FERRELLGAS PARTNERS FINANCE CORP.

I, Stephen L. Wambold, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas Partners Finance Corp. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold
Chief Executive Officer and President

CERTIFICATIONS

FERRELLGAS PARTNERS FINANCE CORP.

I, J. Ryan VanWinkle, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas Partners Finance Corp. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Chief Financial Officer and Sole Director

EX-31.3

EXHIBIT 31.3

CERTIFICATIONS

FERRELLGAS, L.P.

I, Stephen L. Wambold, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas, L.P. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold
Chief Executive Officer and President of

Ferrellgas, Inc., general partner of the Registrant

CERTIFICATIONS

FERRELLGAS, L.P.

I, J. Ryan VanWinkle, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas, L.P. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., general partner of the Registrant

EX-31.4

EXHIBIT 31.4

CERTIFICATIONS

FERRELLGAS FINANCE CORP.

I, Stephen L. Wambold, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas Finance Corp. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold
Chief Executive Officer and President

CERTIFICATIONS

FERRELLGAS FINANCE CORP.

I, J. Ryan VanWinkle, certify that:

1. I have reviewed this report on Form 10-Q for the period ended January 31, 2014 of Ferrellgas Finance Corp. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5) The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: March 10, 2014/s/ J. Ryan VanWinkle

J. Ryan VanWinkle
Chief Financial Officer and Sole Director

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. 1350,
AS ADOPTED PURSUANT TO
SECTION 906
OF THE
SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas Partners, L.P. (the “Partnership”) for the period ended January 31, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership at the dates and for the periods indicated within the Report.

The foregoing certification is made solely for purposes of 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be incorporated by reference into any registration statement of the Partnership or other filing of the Partnership made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated:  March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold

Chief Executive Officer and President of Ferrellgas, Inc., the Partnership’s general partner

/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., the Partnership’s general partner

*As required by 18 U.S.C. 1350, a signed original of this written statement has been provided to the Partnership.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. 1350,
AS ADOPTED PURSUANT TO
SECTION 906
OF THE
SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas Partners Finance Corp. for the period ended January 31, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Ferrellgas Partners Finance Corp. at the dates and for the periods indicated within the Report.

The foregoing certification is made solely for purposes of 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be incorporated by reference into any registration statement of Ferrellgas Partners Finance Corp. or other filing of Ferrellgas Partners Finance Corp. made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated:  March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold

Chief Executive Officer and President

/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Chief Financial Officer and Sole Director

*As required by 18 U.S.C. 1350, a signed original of this written statement has been provided to Ferrellgas Partners Finance Corp.

EX-32.3

EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906

OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas, L.P. (the “Partnership”) for the period ended January 31, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership at the dates and for the periods indicated within the Report.

The foregoing certification is made solely for purposes of 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be incorporated by reference into any registration statement of the Partnership or other filing of the Partnership made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated:  March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold

Chief Executive Officer and President of Ferrellgas, Inc., the Partnership’s general partner

/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) of Ferrellgas, Inc., the Partnership’s general partner

*As required by 18 U.S.C. 1350, a signed original of this written statement has been provided to the Partnership.

EX-32.4

EXHIBIT 32.4

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906

OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Ferrellgas Finance Corp. for the period ended January 31, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Ferrellgas Finance Corp. at the dates and for the periods indicated within the Report.

The foregoing certification is made solely for purposes of 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is subject to the “knowledge” and “willfulness” qualifications contained in 18 U.S.C. 1350(c).

This certification is being furnished to the SEC and is not to be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18. In addition, this certification is not to be incorporated by reference into any registration statement of Ferrellgas Finance Corp. or other filing of Ferrellgas Finance Corp. made pursuant to the Exchange Act or Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference.

Dated:  March 10, 2014/s/ Stephen L. Wambold

Stephen L. Wambold

Chief Executive Officer and President

/s/ J. Ryan VanWinkle

J. Ryan VanWinkle

Chief Financial Officer and Sole Director

*As required by 18 U.S.C. 1350, a signed original of this written statement has been provided to Ferrellgas Finance Corp.

XML

Debt (Short-Term Borrowings Narrative) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Short-term borrowings	$ 67,045	$ 50,054
Ferrellgas, L.P. [Member]
Short-term borrowings	$ 67,045	$ 50,054

XML

Transactions With Related Parties (Narrative) (Details)	Jan. 31, 2014 employee
Number of employees	0
Ferrellgas, L.P. [Member]
Number of employees	0

XML

Fair Value Measurements (Assets And Liabilities Fair Value Hierarchy) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Interest rate swap assets	$ 2,171	$ 3,783
Propane commodity derivative assets	14,333	2,532
Interest rate swap liabilities	(6,003)	(4,998)
Propane commodity derivative liabilities		(907)
Ferrellgas, L.P. [Member]
Interest rate swap assets	2,171	3,783
Propane commodity derivative assets	14,333	2,532
Interest rate swap liabilities	(6,003)	(4,998)
Propane commodity derivative liabilities		(907)
Level 1 [Member]
Interest rate swap assets
Propane commodity derivative assets
Interest rate swap liabilities
Propane commodity derivative liabilities
Level 1 [Member] | Ferrellgas, L.P. [Member]
Interest rate swap assets
Propane commodity derivative assets
Interest rate swap liabilities
Propane commodity derivative liabilities
Level 2 [Member]
Interest rate swap assets	2,171	3,783
Propane commodity derivative assets	14,333	2,532
Interest rate swap liabilities	(6,003)	(4,998)
Propane commodity derivative liabilities		(907)
Level 2 [Member] | Ferrellgas, L.P. [Member]
Interest rate swap assets	2,171	3,783
Propane commodity derivative assets	14,333	2,532
Interest rate swap liabilities	(6,003)	(4,998)
Propane commodity derivative liabilities		(907)
Level 3 [Member]
Interest rate swap assets
Propane commodity derivative assets
Interest rate swap liabilities
Propane commodity derivative liabilities
Level 3 [Member] | Ferrellgas, L.P. [Member]
Interest rate swap assets
Propane commodity derivative assets
Interest rate swap liabilities
Propane commodity derivative liabilities

XML

Transactions With Related Parties (Schedule Of Transactions With Related Parties) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Related Party Transaction [Line Items]
General and administrative expense	$ 16,475,000	$ 12,717,000	$ 30,889,000	$ 23,872,000
Ferrellgas, L.P. [Member]
Related Party Transaction [Line Items]
General and administrative expense	16,475,000	12,717,000	30,889,000	23,872,000
Compensation And Benefits [Member]
Related Party Transaction [Line Items]
Operating expense	61,412,000	53,594,000	109,570,000	101,378,000
General and administrative expense	9,200,000	7,183,000	15,101,000	13,456,000
Compensation And Benefits [Member] | Ferrellgas, L.P. [Member]
Related Party Transaction [Line Items]
Operating expense	61,412,000	53,594,000	109,570,000	101,378,000
General and administrative expense	$ 9,200,000	$ 7,183,000	$ 15,101,000	$ 13,456,000

XML

Partners' Capital (Distributions Paid) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Limited Partners' Capital Account [Line Items]
Distributions	$ 39,972	$ 39,907	$ 79,907	$ 79,814
Ferrellgas, L.P. [Member]
Limited Partners' Capital Account [Line Items]
Distributions	48,309	48,243	88,652	88,557
Public Common Unitholders [Member]
Limited Partners' Capital Account [Line Items]
Distributions	26,534	26,470	53,032	52,940
Ferrell Companies [Member]
Limited Partners' Capital Account [Line Items]
Distributions	10,735	10,735	21,470	21,470
FCI Trading Corp. [Member]
Limited Partners' Capital Account [Line Items]
Distributions	98	98	196	196
Ferrell Propane, Inc. [Member]
Limited Partners' Capital Account [Line Items]
Distributions	26	26	52	52
James E. Ferrell [Member]
Limited Partners' Capital Account [Line Items]
Distributions	2,179	2,179	4,358	4,358
General Partner [Member]
Limited Partners' Capital Account [Line Items]
Distributions	400	399	799	798
General Partner [Member] | Ferrellgas, L.P. [Member]
Limited Partners' Capital Account [Line Items]
Distributions	488	487	896	894
Ferrellgas Partners [Member] | Ferrellgas, L.P. [Member]
Limited Partners' Capital Account [Line Items]
Distributions	$ 47,821	$ 47,756	$ 87,756	$ 87,663

XML

Supplemental Financial Statement Information (Narrative) (Details)	6 Months Ended
	Jan. 31, 2014 gal
Maximum term of supply procurement contracts	36 months
Net procurement of fixed priced propane in gallons	49,300,000
Ferrellgas, L.P. [Member]
Maximum term of supply procurement contracts	36 months
Net procurement of fixed priced propane in gallons	49,300,000

XML

Net Earnings Per Common Unitholders' Interest Net Earnings (Loss) Per Common Unitholders' Interest (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Earnings Per Share [Abstract]
Dilutive effect on earnings per share	$ 0.04	$ 0.03	$ 0	$ 0

XML

Debt Debt (Tables)

6 Months Ended

Jan. 31, 2014

Debt Instrument [Line Items]

Components of Long-term Debt

Long-term debt consists of the following:

	January 31, 2014			July 31, 2013
Senior notes
Fixed rate, 6.50%, due 2021	$	500,000		$	500,000
Fixed rate, 6.75%, due 2022	325,000			—
Fixed rate, 9.125%, due 2017, net of unamortized discount of $2,556 at July 31, 2013	—			297,444
Fixed rate, 8.625%, due 2020	182,000			182,000
Fair value adjustments related to interest rate swaps	(3,197		)	(1,657		)
Secured credit facility
Variable interest rate, expiring October 2018 (net of $67.0 million and $50.1 million classified as short-term borrowings at January 31, 2014 and July 31, 2013, respectively)	140,455			121,346
Notes payable
9.0% and 9.1% weighted average interest rate at January 31, 2014 and July 31, 2013, respectively, due 2014 to 2022, net of unamortized discount of $2,176 and $2,392 at January 31, 2014 and July 31, 2013, respectively	9,836			10,898
	1,154,094			1,110,031
Less: current portion, included in other current liabilities on the condensed consolidated balance sheets	3,183			3,091
Long-term debt	$	1,150,911		$	1,106,940

Scheduled Annual Principal Payments On Long-term Debt

As a result of the above transactions, the scheduled annual principal payments on long-term debt have been updated as follows:

For the fiscal year ending July 31,	Scheduled annual principal payments
2014	$	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	1,148,872
Total	$	1,159,467

Ferrellgas, L.P. [Member]

Debt Instrument [Line Items]

Components of Long-term Debt

Long-term debt consists of the following:

	January 31, 2014			July 31, 2013
Senior notes
Fixed rate, 6.50%, due 2021	$	500,000		$	500,000
Fixed rate, 6.75%, due 2022	325,000			—
Fixed rate, 9.125%, due 2017, net of unamortized discount of $2,556 at July 31, 2013	—			297,444
Fair value adjustments related to interest rate swaps	(3,197		)	(1,657		)
Secured credit facility
Variable interest rate, expiring October 2018 (net of $67.0 million and $50.1 million classified as short-term borrowings at January 31, 2014 and July 31, 2013, respectively)	140,455			121,346
Notes payable
9.0% and 9.1% weighted average interest rate at January 31, 2014 and July 31, 2013, respectively, due 2014 to 2022, net of unamortized discount of $2,176 and $2,392 at January 31, 2014 and July 31, 2013, respectively	9,836			10,898
	972,094			928,031
Less: current portion, included in other current liabilities on the condensed consolidated balance sheets	3,183			3,091
Long-term debt	$	968,911		$	924,940

Scheduled Annual Principal Payments On Long-term Debt

As a result of the above transactions, the scheduled annual principal payments on long-term debt have been updated as follows:

For the fiscal year ending July 31,	Scheduled annual principal payments
2014	$	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	966,872
Total	$	977,467

XML

Derivative Instruments and Hedging Activities (Fair Value of Financial Derivatives Balance Sheet Locations) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Derivatives, Fair Value [Line Items]
Propane commodity derivative assets	$ 14,333	$ 2,532
Interest rate swap assets	2,171	3,783
Derivative assets, fair value	16,504	6,315
Propane commodity derivative liabilities		907
Interest rate swap liabilities	6,003	4,998
Derivative liabilities, fair value	6,003	5,905
Ferrellgas, L.P. [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative assets	14,333	2,532
Interest rate swap assets	2,171	3,783
Derivative assets, fair value	16,504	6,315
Propane commodity derivative liabilities		907
Interest rate swap liabilities	6,003	4,998
Derivative liabilities, fair value	6,003	5,905
Prepaid Expenses And Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative assets	11,914	1,400
Interest rate swap assets	2,171	3,341
Prepaid Expenses And Other Current Assets [Member] | Ferrellgas, L.P. [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative assets	11,914	1,400
Interest rate swap assets	2,171	3,341
Other Assets, Net [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative assets	2,419	1,132
Interest rate swap assets	0	442
Other Assets, Net [Member] | Ferrellgas, L.P. [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative assets	2,419	1,132
Interest rate swap assets	0	442
Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative liabilities	0	569
Interest rate swap liabilities	0	0
Other Current Liabilities [Member] | Ferrellgas, L.P. [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative liabilities	0	569
Interest rate swap liabilities	0	0
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative liabilities	0	338
Interest rate swap liabilities	6,003	4,998
Other Liabilities [Member] | Ferrellgas, L.P. [Member]
Derivatives, Fair Value [Line Items]
Propane commodity derivative liabilities	0	338
Interest rate swap liabilities	$ 6,003	$ 4,998

XML

Debt Debt (Scheduled Annual Principal Payments On Long-term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014
2014	$ 795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	1,148,872
Total	1,159,467
Ferrellgas, L.P. [Member]
2014	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	966,872
Total	$ 977,467

XML

Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Narrative) (Details) (USD $)	6 Months Ended	12 Months Ended
	Jan. 31, 2014	Jul. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable pledged as collateral	$ 314,475,000	$ 130,025,000
Ferrellgas, L.P. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable pledged as collateral	314,475,000	130,025,000
Accounts Receivable Securitization [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable pledged as collateral	314,500,000	130,000,000
Collateralized notes payable	219,000,000	82,000,000
Proceeds from accounts receivable securitization	219,000,000	82,000,000
Available proceeds from additional trade accounts receivable	0	0
Weighted average interest rate on borrowings under accounts receivable securitization	2.00%	2.40%
Accounts Receivable Securitization [Member] | Ferrellgas, L.P. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable pledged as collateral	314,500,000	130,000,000
Collateralized notes payable	219,000,000	82,000,000
Proceeds from accounts receivable securitization	219,000,000	82,000,000
Available proceeds from additional trade accounts receivable	$ 0	$ 0
Weighted average interest rate on borrowings under accounts receivable securitization	2.00%	2.40%

XML

Derivative Instruments and Hedging Activities (Cash Flow Hedge Derivative Effect on Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Amount of gain (loss) recognized in AOCI	$ 5,783	$ (6,205)	$ 16,387	$ 71
Amount of gain (loss) reclassified from AOCI into income	(3,826)	(4,434)	(4,755)	(8,625)
Ferrellgas, L.P. [Member]
Amount of gain (loss) recognized in AOCI	5,783	(6,205)	16,387	71
Amount of gain (loss) reclassified from AOCI into income	(3,826)	(4,434)	(4,755)	(8,625)
Propane commodity derivatives [Member]
Amount of gain (loss) recognized in AOCI	5,846	(5,612)	17,463	914
Amount of gain (loss) reclassified from AOCI into income			4,755	(8,625)
Propane commodity derivatives [Member] | Ferrellgas, L.P. [Member]
Amount of gain (loss) recognized in AOCI	5,846	(5,612)	17,463	914
Amount of gain (loss) reclassified from AOCI into income			4,755	(8,625)
Interest Rate Swap [Member]
Amount of gain (loss) recognized in AOCI	(63)	(593)	(1,076)	(843)
Interest Rate Swap [Member] | Ferrellgas, L.P. [Member]
Amount of gain (loss) recognized in AOCI	(63)	(593)	(1,076)	(843)
Cost of Product Sold [Member] | Propane commodity derivatives [Member]
Amount of gain (loss) reclassified from AOCI into income	(3,826)	(4,434)	(4,755)	(8,625)
Cost of Product Sold [Member] | Propane commodity derivatives [Member] | Ferrellgas, L.P. [Member]
Amount of gain (loss) reclassified from AOCI into income	(3,826)	(4,434)	(4,755)	(8,625)
Interest Expense [Member] | Interest Rate Swap [Member]
Amount of gain (loss) reclassified from AOCI into income	0	0	0	0
Interest Expense [Member] | Interest Rate Swap [Member] | Ferrellgas, L.P. [Member]
Amount of gain (loss) reclassified from AOCI into income	$ 0	$ 0	$ 0	$ 0

XML

Partners' Capital (Distributions Expected To Be Paid To Related Parties) (Details) (Subsequent Event [Member], USD $) In Thousands, unless otherwise specified	0 Months Ended
	Mar. 17, 2014
Ferrell Companies [Member]
Distribution Expected To Be Made to Member or Limited Partner [Line Items]
Cash distributions to related parties	$ 10,735
FCI Trading Corp. [Member]
Distribution Expected To Be Made to Member or Limited Partner [Line Items]
Cash distributions to related parties	98
Ferrell Propane, Inc. [Member]
Distribution Expected To Be Made to Member or Limited Partner [Line Items]
Cash distributions to related parties	26
James E. Ferrell [Member]
Distribution Expected To Be Made to Member or Limited Partner [Line Items]
Cash distributions to related parties	2,179
General Partner [Member]
Distribution Expected To Be Made to Member or Limited Partner [Line Items]
Cash distributions to related parties	$ 400

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Partnership Organization And Formation

6 Months Ended

Jan. 31, 2014

Partnership Organization And Formation

Partnership organization and formation

Ferrellgas Partners, L.P. (“Ferrellgas Partners”) is a publicly traded limited partnership, owning an approximate 99% limited partner interest in Ferrellgas, L.P. (the "operating partnership"). Ferrellgas Partners and the operating partnership, collectively referred to as “Ferrellgas,” are both Delaware limited partnerships and are governed by their respective partnership agreements. Ferrellgas Partners was formed to acquire and hold a limited partner interest in the operating partnership. As of January 31, 2014, Ferrell Companies, Inc. ("Ferrell Companies") beneficially owns 21.7 million Ferrellgas Partners common units. Ferrellgas, Inc. (the "general partner") has retained a 1% general partner interest in Ferrellgas Partners and also holds an approximate 1% general partner interest in the operating partnership, representing an effective 2% general partner interest in Ferrellgas on a combined basis. The general partner performs all management functions required by Ferrellgas.

Ferrellgas Partners is a holding entity that conducts no operations and has two subsidiaries, Ferrellgas Partners Finance Corp. and the operating partnership. Ferrellgas Partners owns a 100% equity interest in Ferrellgas Partners Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt issued by Ferrellgas Partners. The operating partnership is the only operating subsidiary of Ferrellgas Partners. Ferrellgas has a single reportable operating segment.

The operating partnership is engaged primarily in the distribution of propane and related equipment and supplies in the United States. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Therefore, the results of operations for the six months endedJanuary 31, 2014 and 2013 are not necessarily indicative of the results to be expected for a full fiscal year. The operating partnership serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico.

The condensed consolidated financial statements of Ferrellgas reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas' Annual Report on Form 10-K for fiscal 2013.

Ferrellgas Partners Finance Corp. [Member]

Partnership Organization And Formation

Formation

Ferrellgas Partners Finance Corp. (the “Finance Corp.”), a Delaware corporation, was formed on March 28, 1996 and is a wholly-owned subsidiary of Ferrellgas Partners, L.P. (the “Partnership”).

The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the interim periods presented. All adjustments to the condensed financial statements were of a normal recurring nature.

The Finance Corp. has nominal assets, does not conduct any operations and has no employees.

Ferrellgas, L.P. [Member]

Partnership Organization And Formation

Partnership organization and formation

Ferrellgas, L.P. is a limited partnership that owns and operates propane distribution and related assets. Ferrellgas Partners, L.P. (“Ferrellgas Partners”), a publicly traded limited partnership, holds an approximate 99% limited partner interest in, and consolidates, Ferrellgas, L.P. Ferrellgas, Inc. (the “general partner”), a wholly-owned subsidiary of Ferrell Companies, Inc. (“Ferrell Companies”), holds an approximate 1% general partner interest in Ferrellgas, L.P. and performs all management functions required by Ferrellgas, L.P.

Ferrellgas, L.P. owns a 100% equity interest in Ferrellgas Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of debt issued by Ferrellgas, L.P.

Ferrellgas, L.P. is engaged primarily in the distribution of propane and related equipment and supplies in the United States. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Therefore, the results of operations for the six months endedJanuary 31, 2014 and 2013 are not necessarily indicative of the results to be expected for a full fiscal year. Ferrellgas, L.P. serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico.

The condensed consolidated financial statements of Ferrellgas, L.P. and subsidiaries reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal recurring nature. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with (i) the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (ii) the consolidated financial statements and accompanying notes included in Ferrellgas, L.P.’s Annual Report on Form 10-K for fiscal 2013.

Ferrellgas Finance Corp. [Member]

Partnership Organization And Formation

Formation

Ferrellgas Finance Corp. (the “Finance Corp.”), a Delaware corporation, was formed on January 16, 2003 and is a wholly-owned subsidiary of Ferrellgas, L.P. (the “Partnership”).

The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the interim periods presented. All adjustments to the condensed financial statements were of a normal recurring nature.

The Finance Corp. has nominal assets, does not conduct any operations and has no employees.

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Debt (Secured Credit Facility Narrative) (Details) (USD $)	6 Months Ended
	Jan. 31, 2014	Jul. 31, 2013	Jan. 31, 2013
Debt Instrument [Line Items]
Letters of credit outstanding	$ 60,300,000	$ 53,900,000
Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Letters of credit outstanding	60,300,000	53,900,000
Secured Credit Facility [Member]
Debt Instrument [Line Items]
Maturity date	Oct. 20, 2018
Secured credit facility maximum borrowing capacity	500,000,000.0	400,000,000.0
Write off of capitalized financing costs	300,000
Total credit faciltiy borrowings outstanding	207,500,000	171,400,000
Amount of credit facility borrowings classified as long-term debt	140,500,000	121,300,000
Weighted average interest rate on credit facility borrowings	3.40%	3.70%
Available borrowing capacity	232,200,000		177,900,000
Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Maturity date	Oct. 20, 2018
Secured credit facility maximum borrowing capacity	500,000,000.0	400,000,000.0
Write off of capitalized financing costs	300,000
Total credit faciltiy borrowings outstanding	207,500,000	171,400,000
Amount of credit facility borrowings classified as long-term debt	140,500,000	121,300,000
Weighted average interest rate on credit facility borrowings	3.40%	3.70%
Available borrowing capacity	232,200,000		177,900,000
Letter Of Credit [Member]
Debt Instrument [Line Items]
Secured credit facility maximum borrowing capacity	200,000,000.0
Available borrowing capacity	139,700,000	146,100,000
Letter Of Credit [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Secured credit facility maximum borrowing capacity	200,000,000.0
Available borrowing capacity	$ 139,700,000	$ 146,100,000
Federal Funds Rate [Member] | Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	0.50%
Federal Funds Rate [Member] | Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	0.50%
Eurodollar Rate Loan [Member] | Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	1.00%
Eurodollar Rate Loan [Member] | Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	1.00%
Minimum [Member] | Base Rate [Member] | Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	0.75%
Minimum [Member] | Base Rate [Member] | Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	0.75%
Minimum [Member] | LIBOR [Member] | Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	1.75%
Minimum [Member] | LIBOR [Member] | Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	1.75%
Maximum [Member] | Base Rate [Member] | Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	1.75%
Maximum [Member] | Base Rate [Member] | Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	1.75%
Maximum [Member] | LIBOR [Member] | Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	2.75%
Maximum [Member] | LIBOR [Member] | Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Debt Instrument [Line Items]
Credit facility interest rate basis spread rate	2.75%

XML

Transactions With Related Parties (Tables)

6 Months Ended

Jan. 31, 2014

Schedule of Transactions With Related Parties

These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of earnings as follows:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	61,412	$	53,594	$	109,570	$	101,378
General and administrative expense	$	9,200	$	7,183	$	15,101	$	13,456

Ferrellgas, L.P. [Member]

Schedule of Transactions With Related Parties

These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas, L.P.’s behalf and are reported in the condensed consolidated statements of earnings as follows:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	61,412	$	53,594	$	109,570	$	101,378
General and administrative expense	$	9,200	$	7,183	$	15,101	$	13,456

XML

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

6 Months Ended

Jan. 31, 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 January 31, 2014 and July 31, 2013:  

	January 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	11,914	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	2,419		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,171		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	6,003
	Total	$	16,504	Total	$	6,003
	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 six months endedJanuary 31, 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 January 31,				For the three months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	489	$	883	$	(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 six months ended January 31,				For the six months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,321	$	1,607	$	(7,640	)	$	(10,938	)

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 six months endedJanuary 31, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:

	For the three months ended January 31, 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	$	5,846		Cost of product sold- propane and other gas liquids sales	$	(3,826	)
Interest rate swap agreements	(63		)	Interest expense	—
	$	5,783			$	(3,826	)

	For the three months ended January 31, 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	$	(5,612	)	Cost of product sold- propane and other gas liquids sales	$	(4,434	)
Interest rate swap agreements	(593		)	Interest expense	—
	$	(6,205	)		$	(4,434	)

	For the six months ended January 31, 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	$	17,463		Cost of product sold- propane and other gas liquids sales	$	(4,755	)
Interest rate swap agreements	(1,076		)	Interest expense	—
	$	16,387			$	(4,755	)

	For the six months ended January 31, 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	$	914		Cost of product sold- propane and other gas liquids sales	$	(8,625	)
Interest rate swap agreements	(843		)	Interest expense	—
	$	71			$	(8,625	)

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

The changes in derivatives included in AOCI for the six months endedJanuary 31, 2014 and 2013 were as follows:  

	For the six months ended January 31,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,463			914
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(4,755		)	8,625
Change in value of risk management interest rate derivatives	(1,076		)	(843		)
Ending balance	$	13,698		$	(4,103	)

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 January 31, 2014 and July 31, 2013: 

	January 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	11,914	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	2,419		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,171		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	6,003
	Total	$	16,504	Total	$	6,003
	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 six months endedJanuary 31, 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 January 31,				For the three months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	489	$	883	$	(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 six months ended January 31,				For the six months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,321	$	1,607	$	(7,640	)	$	(10,938	)

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 six months endedJanuary 31, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:  

	For the three months ended January 31, 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	$	5,846		Cost of product sold- propane and other gas liquids sales	$	(3,826	)
Interest rate swap agreements	(63		)	Interest expense	—
	$	5,783			$	(3,826	)
	For the three months ended January 31, 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	$	(5,612	)	Cost of product sold- propane and other gas liquids sales	$	(4,434	)
Interest rate swap agreements	(593		)	Interest expense	—
	$	(6,205	)		$	(4,434	)

	For the six months ended January 31, 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	$	17,463		Cost of product sold- propane and other gas liquids sales	$	(4,755	)
Interest rate swap agreements	(1,076		)	Interest expense	—
	$	16,387			$	(4,755	)

	For the six months ended January 31, 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	$	914		Cost of product sold- propane and other gas liquids sales	$	(8,625	)
Interest rate swap agreements	(843		)	Interest expense	—
	$	71			$	(8,625	)

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

The changes in derivatives included in AOCI for the six months endedJanuary 31, 2014 and 2013 were as follows: 

	For the six months ended January 31,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,463			914
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(4,755		)	8,625
Change in value of risk management interest rate derivatives	(1,076		)	(843		)
Ending balance	$	13,698		$	(4,103	)

XML

Contingencies And Commitments (Narrative) (Details) (Senior Notes [Member], USD $)						3 Months Ended		3 Months Ended
	Jan. 31, 2014 Fixed Rate, 8.625%, Due 2020 [Member] Ferrellgas Partners Finance Corp. [Member]	Jan. 31, 2014 Fixed Rate, 6.50%, Due 2021 [Member] Ferrellgas Finance Corp. [Member]	Nov. 04, 2013 Fixed Rate, 6.75%, Due 2022 [Member]	Jan. 31, 2014 Fixed Rate, 6.75%, Due 2022 [Member] Ferrellgas Finance Corp. [Member]	Nov. 04, 2013 Fixed Rate, 6.75%, Due 2022 [Member] Ferrellgas Finance Corp. [Member]	Jan. 31, 2014 Fixed Rate, 9.125%, Due 2017 [Member]	Dec. 04, 2013 Fixed Rate, 9.125%, Due 2017 [Member]	Jan. 31, 2014 Fixed Rate, 9.125%, Due 2017 [Member] Ferrellgas Finance Corp. [Member]	Dec. 04, 2013 Fixed Rate, 9.125%, Due 2017 [Member] Ferrellgas Finance Corp. [Member]
Debt principal amount	$ 182,000,000	$ 500,000,000	$ 325,000,000.0	$ 325,000,000	$ 325,000,000.0
Debt interest rate	8.625%	6.50%	6.75%	6.75%	6.75%		9.125%		9.125%
Debt maturity year	2020	2021	2022	2022	2022
Debt redemption principal amount							$ 300,000,000.0		$ 300,000,000.0
Maturity date						Oct. 01, 2017		Oct. 01, 2017

XML

Debt (Interest Rate Swaps Narrative) (Details) (Fixed Rate, 9.125%, Due 2017 [Member], USD $) In Millions, unless otherwise specified	6 Months Ended
	Jan. 31, 2014
Swap inception date	May 07, 2012
Swap notional amount	$ 140.0
Description of hedged item	$300.0 million 9.125% fixed rate senior notes due 2017
Swap fixed interest rate	9.125%
Swap variable rate basis	one-month LIBOR
Basis spread on swap variable rate	7.96%
Swap settlement cost	0.2
Ferrellgas, L.P. [Member]
Swap inception date	May 07, 2012
Swap notional amount	140.0
Description of hedged item	$300.0 million 9.125% fixed rate senior notes due 2017
Swap fixed interest rate	9.125%
Swap variable rate basis	one-month LIBOR
Basis spread on swap variable rate	7.96%
Swap settlement cost	$ 0.2

XML

Net Earnings (Loss) Per Common Unitholders' Interest (Tables)

6 Months Ended

Jan. 31, 2014

Earnings Per Share [Abstract]

Basic And Diluted Net Earnings Per Common Unitholders' Interest

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
	(in thousands, except per unitholders' interest amounts)
Common unitholders’ interest in net earnings	$	56,801	$	55,069	$	35,265	$	40,144
Weighted average common units outstanding - basic	79,129.4		79,015.6		79,102.6		79,014.4
Dilutive securities	29.3		36.1		29.9		40.6
Weighted average common units outstanding - diluted	79,158.7		79,051.7		79,132.5		79,055.0
Basic and diluted net earnings per common unitholders’ interest	$	0.72	$	0.70	$	0.45	$	0.51

XML

Partnership Organization And Formation (Details)	6 Months Ended
	Jan. 31, 2014 employee	Jul. 31, 2013
Limited partner interest	99.00%
General partner ownership interest	1.00%
Number of entity subsidiaries	2
Equity interest in subsidiary	100.00%
Number of states in which entity operates	50
Number of employees	0
Ferrellgas Partners Finance Corp. [Member]
Common stock shares outstanding	1,000	1,000
Corporation formation date	Mar. 28, 1996
Number of employees	0
Ferrellgas, L.P. [Member]
Limited partner interest	99.00%
General partner ownership interest	1.00%
Equity interest in subsidiary	100.00%
Number of states in which entity operates	50
Number of employees	0
Ferrellgas Finance Corp. [Member]
Common stock shares outstanding	1,000	1,000
Corporation formation date	Jan. 16, 2003
Number of employees	0
Ferrell Companies [Member]
Common stock shares outstanding	21,700,000
Operating Partnership [Member]
General partner ownership interest	1.00%
Ferrellgas [Member]
General partner ownership interest	2.00%

XML

Consolidated Statements Of Cash Flows (USD $)	6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Cash flows provided by (used in) operating activities:
Net earnings (loss)	$ 36,066,000	$ 41,047,000
Reconciliation of net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization expense	40,858,000	41,626,000
Non-cash employee stock ownership plan compensation charge	6,679,000	9,849,000
Non-cash stock and unit-based compensation charge	10,350,000	6,212,000
Loss on disposal of assets	1,694,000	2,391,000
Non-cash loss on extinguishment of debt	6,526,000	0
Provision for doubtful accounts	2,105,000	2,515,000
Deferred tax expense	616,000	391,000
Other	1,823,000	1,911,000
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable, net of securitization	(227,911,000)	(117,208,000)
Inventories	(18,526,000)	(2,390,000)
Prepaid expenses and other current assets	(10,134,000)	(1,489,000)
Accounts payable	87,395,000	55,190,000
Accrued interest expense	(3,809,000)	(116,000)
Other current liabilities	(4,615,000)	8,473,000
Other liabilities	721,000	534,000
Net cash provided by (used in) operating activities	(70,162,000)	48,936,000
Cash flows provided by (used in) investing activities:
Business acquisitions, net of cash acquired	(5,227,000)	(6,488,000)
Capital expenditures	(22,873,000)	(21,964,000)
Proceeds from sale of assets	2,482,000	6,163,000
Other	(8,000)	0
Net cash used in investing activities	(25,626,000)	(22,289,000)
Cash flows provided by (used in) financing activities:
Distributions	(79,907,000)	(79,814,000)
Proceeds from issuance of long-term debt	369,493,000	22,552,000
Payments on long-term debt	(327,563,000)	(1,868,000)
Net additions to (reductions in) short-term borrowings	16,991,000	(23,052,000)
Net additions to collateralized short-term borrowings	137,000,000	60,000,000
Cash paid for financing costs	(7,473,000)	0
Noncontrolling interest activity	(896,000)	(894,000)
Proceeds from exercise of common unit options	106,000	105,000
Contributions from partners	0	1,000
Net cash provided by (used in) financing activities	107,751,000	(22,970,000)
Effect of exchange rate changes on cash	(135,000)	3,000
Net change in cash and cash equivalents	11,828,000	3,680,000
Cash and cash equivalents - beginning of period	6,464,000	8,429,000
Cash and cash equivalents - end of period	18,292,000	12,109,000
Ferrellgas Partners Finance Corp. [Member]
Cash flows provided by (used in) operating activities:
Net earnings (loss)	(50)	(215)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Net cash provided by (used in) operating activities	(50)	(215)
Cash flows provided by (used in) financing activities:
Capital contribution	50	215
Net cash provided by (used in) financing activities	50	215
Net change in cash	0	0
Cash - beginning of period	969	969
Cash - end of period	969	969
Ferrellgas, L.P. [Member]
Cash flows provided by (used in) operating activities:
Net earnings (loss)	44,033,000	49,261,000
Reconciliation of net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization expense	40,858,000	41,626,000
Non-cash employee stock ownership plan compensation charge	6,679,000	9,849,000
Non-cash stock and unit-based compensation charge	10,350,000	6,212,000
Loss on disposal of assets	1,694,000	2,391,000
Non-cash loss on extinguishment of debt	6,526,000	0
Provision for doubtful accounts	2,105,000	2,515,000
Deferred tax expense	616,000	391,000
Other	1,582,000	1,700,000
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts and notes receivable, net of securitization	(227,911,000)	(117,208,000)
Inventories	(18,526,000)	(2,390,000)
Prepaid expenses and other current assets	(10,120,000)	(1,493,000)
Accounts payable	87,395,000	55,190,000
Accrued interest expense	(3,810,000)	(116,000)
Other current liabilities	(4,595,000)	8,348,000
Other liabilities	721,000	534,000
Net cash provided by (used in) operating activities	(62,403,000)	56,810,000
Cash flows provided by (used in) investing activities:
Business acquisitions, net of cash acquired	(5,242,000)	(6,488,000)
Capital expenditures	(22,873,000)	(21,964,000)
Proceeds from sale of assets	2,482,000	6,163,000
Other	(8,000)	0
Net cash used in investing activities	(25,641,000)	(22,289,000)
Cash flows provided by (used in) financing activities:
Distributions	(88,652,000)	(88,557,000)
Proceeds from issuance of long-term debt	369,493,000	22,552,000
Payments on long-term debt	(327,563,000)	(1,868,000)
Net additions to (reductions in) short-term borrowings	16,991,000	(23,052,000)
Net additions to collateralized short-term borrowings	137,000,000	60,000,000
Cash paid for financing costs	(7,473,000)	0
Contributions from partners	252,000	0
Net cash provided by (used in) financing activities	100,048,000	(30,925,000)
Effect of exchange rate changes on cash	(135,000)	3,000
Net change in cash and cash equivalents	11,869,000	3,599,000
Cash and cash equivalents - beginning of period	6,307,000	8,218,000
Cash and cash equivalents - end of period	18,176,000	11,817,000
Ferrellgas Finance Corp. [Member]
Cash flows provided by (used in) operating activities:
Net earnings (loss)	(4,840)	(4,675)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Net cash provided by (used in) operating activities	(4,840)	(4,675)
Cash flows provided by (used in) financing activities:
Capital contribution	4,840	4,675
Net cash provided by (used in) financing activities	4,840	4,675
Net change in cash	0	0
Cash - beginning of period	1,100	1,100
Cash - end of period	$ 1,100	$ 1,100

XML

Summary Of Significant Accounting Policies (Significant Cash And Non-Cash Activities) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Cash Paid For [Abstract]
Interest	$ 45,648	$ 42,646
Income taxes	178	45
Non-Cash Investing Activities [Abstract]
Issuance of common units in connection with acquisitions	1,530
Liabilities incurred in connection with acquisitions	682	1,060
Change in accruals for property, plant and equipment additions	1,082	598
Ferrellgas, L.P. [Member]
Cash Paid For [Abstract]
Interest	37,800	34,797
Income taxes	179	45
Non-Cash Investing Activities [Abstract]
Issuance of common units in connection with acquisitions	1,515
Liabilities incurred in connection with acquisitions	682	1,060
Change in accruals for property, plant and equipment additions	1,082	598
Common Unitholders [Member]
Non-Cash Investing Activities [Abstract]
Issuance of common units in connection with acquisitions	1,500	0
Common Unitholders [Member] | Ferrellgas, L.P. [Member]
Non-Cash Investing Activities [Abstract]
Issuance of common units in connection with acquisitions	$ 1,500	$ 0

XML

Debt Debt (Components of Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Schedule of Capitalization, Long-term Debt [Line Items]
Notes payable	$ 9,836	$ 10,898
Total long-term debt	1,154,094	1,110,031
Less: current portion	3,183	3,091
Long-term debt	1,150,911	1,106,940
Short-term borrowings	67,045	50,054
Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Notes payable	9,836	10,898
Total long-term debt	972,094	928,031
Less: current portion	3,183	3,091
Long-term debt	968,911	924,940
Short-term borrowings	67,045	50,054
Fixed Rate, 6.50%, Due 2021 [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	500,000	500,000
Debt interest rate	6.50%
Debt maturity year	2021
Fixed Rate, 6.50%, Due 2021 [Member] | Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	500,000	500,000
Debt interest rate	6.50%
Debt maturity year	2021
Fixed Rate, 6.75%, Due 2022 [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	325,000
Debt interest rate	6.75%
Debt maturity year	2022
Fixed Rate, 6.75%, Due 2022 [Member] | Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	325,000
Debt interest rate	6.75%
Debt maturity year	2022
Fixed Rate, 9.125%, Due 2017 [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes		297,444
Debt interest rate	9.125%
Debt maturity year	2017
Debt instrument unamortized discount		2,556
Fixed Rate, 9.125%, Due 2017 [Member] | Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes		297,444
Debt interest rate	9.125%
Debt maturity year	2017
Debt instrument unamortized discount		2,556
Fixed Rate, 8.625%, Due 2020 [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	182,000	182,000
Debt interest rate	8.625%
Debt maturity year	2020
Interest Rate Swap [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	(3,197)	(1,657)
Interest Rate Swap [Member] | Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Senior notes	(3,197)	(1,657)
Secured Credit Facility [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Line of credit facility	140,455	121,346
Debt maturity year	2018
Short-term borrowings	67,045	50,054
Debt weighted average interest rate	3.40%	3.70%
Secured Credit Facility [Member] | Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Line of credit facility	140,455	121,346
Debt maturity year	2018
Short-term borrowings	67,045	50,054
Debt weighted average interest rate	3.40%	3.70%
Notes Payable [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Debt instrument maturity year range start	2014
Debt instrument maturity year range end	2022
Debt instrument unamortized discount	2,176	2,392
Debt weighted average interest rate	9.00%	9.10%
Notes Payable [Member] | Ferrellgas, L.P. [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Debt instrument maturity year range start	2014
Debt instrument maturity year range end	2022
Debt instrument unamortized discount	$ 2,176	$ 2,392
Debt weighted average interest rate	9.00%	9.10%

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Derivative Instruments and Hedging Activities (Changes in Derivative Value Effect on Other Comprehensive Income Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jul. 31, 2013	Jan. 31, 2014 Ferrellgas, L.P. [Member]	Jan. 31, 2013 Ferrellgas, L.P. [Member]	Jan. 31, 2014 Ferrellgas, L.P. [Member]	Jan. 31, 2013 Ferrellgas, L.P. [Member]	Jul. 31, 2013 Ferrellgas, L.P. [Member]	Jan. 31, 2014 Propane commodity derivatives [Member]	Jan. 31, 2013 Propane commodity derivatives [Member]	Jan. 31, 2014 Propane commodity derivatives [Member]	Jan. 31, 2013 Propane commodity derivatives [Member]	Jan. 31, 2014 Propane commodity derivatives [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2013 Propane commodity derivatives [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2014 Propane commodity derivatives [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2013 Propane commodity derivatives [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2014 Interest Rate Swap [Member]	Jan. 31, 2013 Interest Rate Swap [Member]	Jan. 31, 2014 Interest Rate Swap [Member]	Jan. 31, 2013 Interest Rate Swap [Member]	Jan. 31, 2014 Interest Rate Swap [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2013 Interest Rate Swap [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2014 Interest Rate Swap [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2013 Interest Rate Swap [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2014 Derivative [Member]	Jul. 31, 2013 Derivative [Member]	Jan. 31, 2013 Derivative [Member]	Jul. 31, 2012 Derivative [Member]	Jan. 31, 2014 Derivative [Member] Ferrellgas, L.P. [Member]	Jul. 31, 2013 Derivative [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2013 Derivative [Member] Ferrellgas, L.P. [Member]	Jul. 31, 2012 Derivative [Member] Ferrellgas, L.P. [Member]
Beginning balance	$ 13,078		$ 13,078		$ 1,697	$ 13,225		$ 13,225		$ 1,728																	$ 13,698	$ 2,066	$ (4,103)	$ (12,799)	$ 13,698	$ 2,066	$ (4,103)	$ (12,799)
Change in value of risk management derivatives	5,783	(6,205)	16,387	71		5,783	(6,205)	16,387	71		5,846	(5,612)	17,463	914	5,846	(5,612)	17,463	914	(63)	(593)	(1,076)	(843)	(63)	(593)	(1,076)	(843)
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	3,826	4,434	4,755	8,625		3,826	4,434	4,755	8,625				(4,755)	8,625			(4,755)	8,625
Ending balance	$ 13,078		$ 13,078		$ 1,697	$ 13,225		$ 13,225		$ 1,728																	$ 13,698	$ 2,066	$ (4,103)	$ (12,799)	$ 13,698	$ 2,066	$ (4,103)	$ (12,799)

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Consolidated Balance Sheets (USD $)	Jan. 31, 2014	Jul. 31, 2013
Current assets:
Cash and cash equivalents	$ 18,292,000	$ 6,464,000
Accounts and notes receivable, net	356,359,000	131,791,000
Inventories	135,830,000	117,116,000
Prepaid expenses and other current assets	44,891,000	25,608,000
Total current assets	555,372,000	280,979,000
Property, plant and equipment, net	582,484,000	589,727,000
Goodwill	253,331,000	253,362,000
Intangible assets, net	182,977,000	189,516,000
Other assets, net	46,630,000	42,444,000
Total assets	1,620,794,000	1,356,028,000
Current liabilities:
Accounts payable	137,073,000	49,128,000
Short-term borrowings	67,045,000	50,054,000
Collateralized note payable	219,000,000	82,000,000
Other current liabilities	112,241,000	121,102,000
Total current liabilities	535,359,000	302,284,000
Long-term debt	1,150,911,000	1,106,940,000
Other liabilities	35,724,000	33,431,000
Contingencies and commitments
Partners' capital (deficit)
Common unitholders	(54,480,000)	(28,931,000)
General partner unitholder	(60,621,000)	(60,362,000)
Accumulated other comprehensive income	13,078,000	1,697,000
Total Ferrellgas Partners, L.P. partners' capital (deficit)	(102,023,000)	(87,596,000)
Noncontrolling interest	823,000	969,000
Total partners' capital (deficit)	(101,200,000)	(86,627,000)
Total liabilities and partners' capital (deficit)	1,620,794,000	1,356,028,000
Ferrellgas Partners Finance Corp. [Member]
Current assets:
Cash	969	969
Total assets	969	969
Current liabilities:
Contingencies and commitments
STOCKHOLDER'S EQUITY
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	1,000	1,000
Additional paid in capital	13,007	12,957
Accumulated deficit	(13,038)	(12,988)
Total stockholder's equity	969	969
Ferrellgas, L.P. [Member]
Current assets:
Cash and cash equivalents	18,176,000	6,307,000
Accounts and notes receivable, net	356,359,000	131,791,000
Inventories	135,830,000	117,116,000
Prepaid expenses and other current assets	44,851,000	25,582,000
Total current assets	555,216,000	280,796,000
Property, plant and equipment, net	582,484,000	589,727,000
Goodwill	253,331,000	253,362,000
Intangible assets, net	182,977,000	189,516,000
Other assets, net	43,956,000	39,531,000
Total assets	1,617,964,000	1,352,932,000
Current liabilities:
Accounts payable	137,073,000	49,128,000
Short-term borrowings	67,045,000	50,054,000
Collateralized note payable	219,000,000	82,000,000
Other current liabilities	110,061,000	118,903,000
Total current liabilities	533,179,000	300,085,000
Long-term debt	968,911,000	924,940,000
Other liabilities	35,724,000	33,431,000
Contingencies and commitments
Partners' capital (deficit)
Common unitholders	66,249,000	91,810,000
General partner unitholder	676,000	938,000
Accumulated other comprehensive income	13,225,000	1,728,000
Total partners' capital (deficit)	80,150,000	94,476,000
Total liabilities and partners' capital (deficit)	1,617,964,000	1,352,932,000
Ferrellgas Finance Corp. [Member]
Current assets:
Cash	1,100	1,100
Total assets	1,100	1,100
Current liabilities:
Contingencies and commitments
STOCKHOLDER'S EQUITY
Common stock, $1.00 par value; 2,000 shares authorized; 1,000 shares issued and outstanding	1,000	1,000
Additional paid in capital	48,710	43,870
Accumulated deficit	(48,610)	(43,770)
Total stockholder's equity	$ 1,100	$ 1,100

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Partners' Capital (Narrative) (Details) (USD $)	6 Months Ended						0 Months Ended
	Jan. 31, 2014	Jan. 31, 2014 Ferrellgas, L.P. [Member]	Jan. 31, 2014 General Partner [Member]	Jan. 31, 2013 General Partner [Member]	Jan. 31, 2014 General Partner [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2013 General Partner [Member] Ferrellgas, L.P. [Member]	Mar. 17, 2014 Subsequent Event [Member]	Feb. 27, 2014 Subsequent Event [Member]	Mar. 17, 2014 Subsequent Event [Member] Ferrellgas, L.P. [Member]	Feb. 27, 2014 Subsequent Event [Member] Ferrellgas, L.P. [Member]	Mar. 17, 2014 Subsequent Event [Member] Ferrellgas Partners [Member] Ferrellgas, L.P. [Member]	Mar. 17, 2014 Subsequent Event [Member] General Partner [Member]	Mar. 17, 2014 Subsequent Event [Member] General Partner [Member] Ferrellgas, L.P. [Member]
Capital Unit [Line Items]
Limited partner ownership interest	27.00%
Cash distribution declaration date								Feb. 27, 2014		Feb. 27, 2014
Cash distributions to related parties											$ 40,000,000	$ 400,000	$ 400,000
Cash distributions declared per common unit								$ 0.50
Cash distributions payment date							Mar. 17, 2014		Mar. 17, 2014
General partner ownership interest	1.00%	1.00%	2.00%		1.0101%
Non-cash contributions			$ 300,000	$ 300,000	$ 200,000	$ 200,000

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Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Net earnings	$ 61,123,000	$ 58,843,000	$ 36,066,000	$ 41,047,000
Other comprehensive income (loss):
Change in value of risk management derivatives	5,783,000	(6,205,000)	16,387,000	71,000
Reclassification of derivative gains and losses to earnings	(3,826,000)	4,434,000	(4,755,000)	8,625,000
Foreign currency translation adjustment	(14,000)	1,000	(135,000)	3,000
Other comprehensive income (loss)	1,943,000	(1,770,000)	11,497,000	8,699,000
Comprehensive income	63,066,000	57,073,000	47,563,000	49,746,000
Less: Comprehensive income attributable to noncontrolling interest	679,000	618,000	561,000	585,000
Comprehensive income attributable to Ferrellgas Partners, LP	62,387,000	56,455,000	47,002,000	49,161,000
Ferrellgas, L.P. [Member]
Net earnings	65,171,000	62,953,000	44,033,000	49,261,000
Other comprehensive income (loss):
Change in value of risk management derivatives	5,783,000	(6,205,000)	16,387,000	71,000
Reclassification of derivative gains and losses to earnings	(3,826,000)	4,434,000	(4,755,000)	8,625,000
Foreign currency translation adjustment	(14,000)	1,000	(135,000)	3,000
Other comprehensive income (loss)	1,943,000	(1,770,000)	11,497,000	8,699,000
Comprehensive income	$ 67,114,000	$ 61,183,000	$ 55,530,000	$ 57,960,000

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Supplemental Financial Statement Information (Other Current Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Accrued interest	$ 15,986	$ 19,795
Accrued payroll	20,586	30,295
Customer deposits and advances	22,909	20,420
Other	52,760	50,592
Other current liabilities	112,241	121,102
Ferrellgas, L.P. [Member]
Accrued interest	13,977	17,787
Accrued payroll	20,586	30,295
Customer deposits and advances	22,909	20,420
Other	52,589	50,401
Other current liabilities	$ 110,061	$ 118,903

XML

Summary Of Significant Accounting Policies (Tables)

6 Months Ended

Jan. 31, 2014

Certain cash flow and significant non-cash activities

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

	For the six months ended January 31,
	2014		2013
CASH PAID FOR:
Interest	$	45,648	$	42,646
Income taxes	$	178	$	45
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common units in connection with acquisitions	$	1,500	$	—
Liabilities incurred in connection with acquisitions	$	682	$	1,060
Change in accruals for property, plant and equipment additions	$	1,082	$	598

Ferrellgas, L.P. [Member]

Certain cash flow and significant non-cash activities

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

	For the six months ended January 31,
	2014		2013
CASH PAID FOR:
Interest	$	37,800	$	34,797
Income taxes	$	179	$	45
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Assets contributed from Ferrellgas Partners in connection with acquisitions	$	1,500	$	—
Liabilities incurred in connection with acquisitions	$	682	$	1,060
Change in accruals for property, plant and equipment additions	$	1,082	$	598

XML

Supplemental Financial Statement Information (Shipping And Handling Expenses) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	$ 59,962	$ 53,153	$ 110,982	$ 101,968
Ferrellgas, L.P. [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	59,962	53,153	110,982	101,968
Operating Expense [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	54,755	48,260	100,733	92,161
Operating Expense [Member] | Ferrellgas, L.P. [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	54,755	48,260	100,733	92,161
Depreciation And Amortization Expense [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	1,440	1,400	2,855	2,927
Depreciation And Amortization Expense [Member] | Ferrellgas, L.P. [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	1,440	1,400	2,855	2,927
Equipment Lease Expense [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	3,767	3,493	7,394	6,880
Equipment Lease Expense [Member] | Ferrellgas, L.P. [Member]
Condensed Financial Statements, Captions [Line Items]
Shipping and handling expenses	$ 3,767	$ 3,493	$ 7,394	$ 6,880

XML

Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Tables)

6 Months Ended

Jan. 31, 2014

Accounts And Notes Receivable, Net

Accounts and notes receivable, net consist of the following:

	January 31, 2014			July 31, 2013
Accounts receivable pledged as collateral	$	314,475		$	130,025
Accounts receivable	46,009			4,867
Other	477			506
Less: Allowance for doubtful accounts	(4,602		)	(3,607		)
Accounts and notes receivable, net	$	356,359		$	131,791

Ferrellgas, L.P. [Member]

Accounts And Notes Receivable, Net

Accounts and notes receivable, net consist of the following:

	January 31, 2014			July 31, 2013
Accounts receivable pledged as collateral	$	314,475		$	130,025
Accounts receivable	46,009			4,867
Other	477			506
Less: Allowance for doubtful accounts	(4,602		)	(3,607		)
Accounts and notes receivable, net	$	356,359		$	131,791

XML

Consolidated Statements Of Partners' Capital (Deficit) (USD $)	6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	$ (86,627,000)		$ (101,200,000)
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	17,029,000
Distributions	(80,803,000)
Issuance of common units in connection with acquisitions - value	1,530,000
Exercise of common unit options - value	108,000
Net earnings	36,066,000	41,047,000
Other comprehensive income	11,497,000	8,699,000
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	1,697,000		13,078,000
Other comprehensive income	11,381,000
Total Ferrellgas Partners, L.P. Partners' Capital (Deficit) [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	(87,596,000)		(102,023,000)
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	16,857,000
Distributions	(79,907,000)
Issuance of common units in connection with acquisitions - value	1,515,000
Exercise of common unit options - value	106,000
Net earnings	35,621,000
Other comprehensive income	11,381,000
Non-Controlling Interest [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	969,000		823,000
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	172,000
Distributions	(896,000)
Issuance of common units in connection with acquisitions - value	15,000
Exercise of common unit options - value	2,000
Net earnings	445,000
Other comprehensive income	116,000
Common Unitholders [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance (in units)	79,072,800		79,144,400
Partners' capital balance	(28,931,000)		(54,480,000)
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	16,689,000
Distributions	(79,108,000)
Issuance of common units in connection with acquisitions - units	62,600
Issuance of common units in connection with acquisitions - value	1,500,000	0
Exercise of common unit options -units	9,000
Exercise of common unit options - value	105,000
Net earnings	35,265,000
General Partner Unitholder [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance (in units)	798,700		799,400
Partners' capital balance	(60,362,000)		(60,621,000)
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	168,000
Distributions	(799,000)
Issuance of common units in connection with acquisitions - units	600
Issuance of common units in connection with acquisitions - value	15,000
Exercise of common unit options -units	100
Exercise of common unit options - value	1,000
Net earnings	356,000
Ferrellgas, L.P. [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	94,476,000		80,150,000
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	17,029,000
Distributions	(88,652,000)
Issuance of common units in connection with acquisitions - value	1,515,000
Contributions from partners	252,000
Net earnings	44,033,000	49,261,000
Other comprehensive income	11,497,000	8,699,000
Ferrellgas, L.P. [Member] | Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	1,728,000		13,225,000
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges
Distributions
Issuance of common units in connection with acquisitions - value
Contributions from partners
Net earnings
Other comprehensive income	11,497,000
Ferrellgas, L.P. [Member] | Common Unitholders [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	91,810,000		66,249,000
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	16,857,000
Distributions	(87,756,000)
Issuance of common units in connection with acquisitions - value	1,500,000	0
Contributions from partners	250,000
Net earnings	43,588,000
Other comprehensive income
Ferrellgas, L.P. [Member] | General Partner Unitholder [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Partners' capital balance	938,000		676,000
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges	172,000
Distributions	(896,000)
Issuance of common units in connection with acquisitions - value	15,000
Contributions from partners	2,000
Net earnings	445,000
Other comprehensive income

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Accounts receivable pledged as collateral	$ 314,475	$ 130,025
Property, plant and equipment accumulated depreciation	618,706	617,541
Intangible assets accumulated amortization	357,548	346,618
Common unitholders, units outstanding	79,144,419	79,072,819
General partner unitholder, units outstanding	799,439	798,715
Ferrellgas Partners Finance Corp. [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000
Ferrellgas, L.P. [Member]
Accounts receivable pledged as collateral	314,475	130,025
Property, plant and equipment accumulated depreciation	618,706	617,541
Intangible assets accumulated amortization	$ 357,548	$ 346,618
Ferrellgas Finance Corp. [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000

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Transactions With Related Parties

6 Months Ended

Jan. 31, 2014

Transactions With Related Parties

Transactions with related parties

Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas’ partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas’ business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of earnings as follows:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	61,412	$	53,594	$	109,570	$	101,378
General and administrative expense	$	9,200	$	7,183	$	15,101	$	13,456

See additional discussions about transactions with the general partner and related parties in Note F – Partners’ deficit.

Ferrellgas, L.P. [Member]

Transactions With Related Parties

Transactions with related parties

Ferrellgas, L.P. has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas, L.P.’s partnership agreement, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas, L.P. and all other necessary or appropriate expenses allocable to Ferrellgas, L.P. or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas, L.P.’s business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas, L.P.’s behalf and are reported in the condensed consolidated statements of earnings as follows:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	61,412	$	53,594	$	109,570	$	101,378
General and administrative expense	$	9,200	$	7,183	$	15,101	$	13,456

See additional discussions about transactions with the general partner and related parties in Note F – Partners’ capital.

XML

Document And Entity Information	6 Months Ended
	Jan. 31, 2014	Feb. 28, 2014
Entity Registrant Name	FERRELLGAS PARTNERS L P
Entity Central Index Key	0000922358
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		79,187,419
Trading Symbol	fgp
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Ferrellgas Partners Finance Corp. [Member]
Entity Registrant Name	FERRELLGAS PARTNERS FINANCE CORP
Entity Central Index Key	0001012493
Current Fiscal Year End Date	--07-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1,000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Ferrellgas, L.P. [Member]
Entity Registrant Name	FERRELLGAS L P
Entity Central Index Key	0000922359
Current Fiscal Year End Date	--07-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Ferrellgas Finance Corp. [Member]
Entity Registrant Name	FERRELLGAS FINANCE CORP
Entity Central Index Key	0000922360
Current Fiscal Year End Date	--07-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1,000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Contingencies And Commitments

6 Months Ended

Jan. 31, 2014

Contingencies And Commitments

Contingencies and commitments

Litigation

Ferrellgas’ operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, Ferrellgas can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, Ferrellgas is not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on the consolidated financial condition, results of operations and cash flows of Ferrellgas.

During the first quarter of fiscal 2014 Ferrellgas reached a settlement with the Offices of the District Attorneys of several counties in California relating to an investigation of labeling and filling practices relating to the amount of propane contained in barbeque cylinders. Ferrellgas has also received notice that the Federal Trade Commission is investigating barbeque cylinder labeling and filling practices and any anti-trust issues relating to cylinder fill level. Ferrellgas already paid and reflected in the condensed consolidated financial statements the settlement reached.

Ferrellgas has also been named as a defendant in a putative class action lawsuit filed in the United States District Court in Kansas. The complaint was the subject of a motion to dismiss which was granted, in part, in August 2011. The surviving claims allege breach of contract and breach of the implied duty of good faith and fair dealing, both of which allegedly arise from the existence of an oral contract for continuous propane service. Ferrellgas believes the claims are without merit and intends to defend them vigorously. The case, which has not been certified for class treatment, is currently on appeal before the Tenth Circuit Court of Appeals following the denial of a motion to arbitrate the individual plaintiff's claim. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to this putative class action lawsuit.

Ferrellgas Partners Finance Corp. [Member]

Contingencies And Commitments

Contingencies and commitments

The Finance Corp. serves as co-issuer and co-obligor for the Partnership's $182.0 million, 8.625% senior notes due 2020.

Ferrellgas, L.P. [Member]

Contingencies And Commitments

Contingencies and commitments

Litigation

Ferrellgas, L.P.’s operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, Ferrellgas, L.P. can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. Other than as discussed below, Ferrellgas, L.P. is not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on the consolidated financial condition, results of operations and cash flows of Ferrellgas, L.P.

During the first quarter of fiscal 2014 Ferrellgas, L.P. reached a settlement with the Offices of the District Attorneys of several counties in California relating to an investigation of labeling and filling practices relating to the amount of propane contained in barbeque cylinders. Ferrellgas, L.P. has also received notice that the Federal Trade Commission is investigating barbeque cylinder labeling and filling practices and any anti-trust issues relating to cylinder fill level. Ferrellgas, L.P. already paid and reflected in the condensed consolidated financial statements the settlement reached.

Ferrellgas, L.P. has also been named as a defendant in a putative class action lawsuit filed in the United States District Court in Kansas. The complaint was the subject of a motion to dismiss which was granted, in part, in August 2011. The surviving claims allege breach of contract and breach of the implied duty of good faith and fair dealing, both of which allegedly arise from the existence of an oral contract for continuous propane service. Ferrellgas, L.P. believes the claims are without merit and intends to defend them vigorously. The case, which has not been certified for class treatment, is currently on appeal before the Tenth Circuit Court of Appeals following the denial of a motion to arbitrate the individual plaintiff's claim. Ferrellgas, L.P. does not believe loss is probable or reasonably estimable at this time related to this putative class action lawsuit.

Ferrellgas Finance Corp. [Member]

Contingencies And Commitments

Contingencies and commitments

During November 2013, the Partnership issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 with the proceeds used to fund the redemption of $300.0 million of 9.125% fixed rate senior notes due October 1, 2017.

The Finance Corp. serves as co-issuer and co-obligor for the following debt securities of the Partnership:

• $500.0 million, 6.50% senior notes due 2021; and

• $325.0 million, 6.75% senior notes due 2022.

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Consolidated Statements Of Earnings (USD $)	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Revenues:
Propane and other gas liquids sales	$ 789,446,000	$ 583,074,000	$ 1,171,669,000	$ 918,355,000
Other	80,237,000	75,791,000	113,044,000	103,419,000
Total revenues	869,683,000	658,865,000	1,284,713,000	1,021,774,000
Costs and expenses:
Cost of product sold - propane and other gas liquids sales	551,506,000	376,236,000	810,260,000	589,893,000
Cost of product sold - other	48,709,000	47,437,000	62,055,000	56,634,000
Operating expense	118,282,000	106,192,000	222,046,000	203,337,000
Depreciation and amortization expense	20,643,000	20,751,000	40,858,000	41,626,000
General and administrative expense	16,475,000	12,717,000	30,889,000	23,872,000
Equipment lease expense	4,274,000	3,827,000	8,340,000	7,750,000
Non-cash employee stock ownership plan compensation charge	3,636,000	7,447,000	6,679,000	9,849,000
Loss on disposal of assets	1,337,000	2,120,000	1,694,000	2,391,000
Operating income	104,821,000	82,138,000	101,892,000	86,422,000
Interest expense	(22,090,000)	(22,619,000)	(44,183,000)	(45,054,000)
Loss on extinguishment of debt	(20,901,000)	0	(21,202,000)	0
Other income, net	57,000	241,000	273,000	332,000
Earnings before income taxes	61,887,000	59,760,000	36,780,000	41,700,000
Income tax expense	764,000	917,000	714,000	653,000
Net earnings (loss)	61,123,000	58,843,000	36,066,000	41,047,000
Net earnings attributable to noncontrolling interest	659,000	636,000	445,000	498,000
Net earnings attributable to Ferrellgas Partners, L.P.	60,464,000	58,207,000	35,621,000	40,549,000
Less: General partner's interest in net earnings	3,663,000	3,138,000	356,000	405,000
Common unitholders' interest in net earnings	56,801,000	55,069,000	35,265,000	40,144,000
Basic and diluted net earnings per common unitholders' interest	$ 0.72	$ 0.70	$ 0.45	$ 0.51
Cash distributions declared per common unit	$ 0.50	$ 0.50	$ 1.00	$ 1.00
Ferrellgas Partners Finance Corp. [Member]
Costs and expenses:
General and administrative expense	0	215	50	215
Net earnings (loss)	0	(215)	(50)	(215)
Ferrellgas, L.P. [Member]
Revenues:
Propane and other gas liquids sales	789,446,000	583,074,000	1,171,669,000	918,355,000
Other	80,237,000	75,791,000	113,044,000	103,419,000
Total revenues	869,683,000	658,865,000	1,284,713,000	1,021,774,000
Costs and expenses:
Cost of product sold - propane and other gas liquids sales	551,506,000	376,236,000	810,260,000	589,893,000
Cost of product sold - other	48,709,000	47,437,000	62,055,000	56,634,000
Operating expense	118,277,000	106,125,000	222,166,000	203,207,000
Depreciation and amortization expense	20,643,000	20,751,000	40,858,000	41,626,000
General and administrative expense	16,475,000	12,717,000	30,889,000	23,872,000
Equipment lease expense	4,274,000	3,827,000	8,340,000	7,750,000
Non-cash employee stock ownership plan compensation charge	3,636,000	7,447,000	6,679,000	9,849,000
Loss on disposal of assets	1,337,000	2,120,000	1,694,000	2,391,000
Operating income	104,826,000	82,205,000	101,772,000	86,552,000
Interest expense	(18,047,000)	(18,576,000)	(36,096,000)	(36,970,000)
Loss on extinguishment of debt	(20,901,000)	0	(21,202,000)	0
Other income, net	57,000	241,000	273,000	332,000
Earnings before income taxes	65,935,000	63,870,000	44,747,000	49,914,000
Income tax expense	764,000	917,000	714,000	653,000
Net earnings (loss)	65,171,000	62,953,000	44,033,000	49,261,000
Ferrellgas Finance Corp. [Member]
Costs and expenses:
General and administrative expense	4,790	3,175	4,840	4,675
Net earnings (loss)	$ (4,790)	$ (3,175)	$ (4,840)	$ (4,675)

XML

Accounts And Notes Receivable, Net And Accounts Receivable Securitization

6 Months Ended

Jan. 31, 2014

Accounts And Notes Receivable, Net And Accounts Receivable Securitization

Accounts and notes receivable, net and accounts receivable securitization

Accounts and notes receivable, net consist of the following:

	January 31, 2014			July 31, 2013
Accounts receivable pledged as collateral	$	314,475		$	130,025
Accounts receivable	46,009			4,867
Other	477			506
Less: Allowance for doubtful accounts	(4,602		)	(3,607		)
Accounts and notes receivable, net	$	356,359		$	131,791

At January 31, 2014, $314.5 million of trade accounts receivable were pledged as collateral against $219.0 million of collateralized notes payable due to the commercial paper conduit. At July 31, 2013, $130.0 million of trade accounts receivable were pledged as collateral against $82.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from the operating partnership. The operating partnership does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. 

As of January 31, 2014, the operating partnership had received cash proceeds of $219.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2013, the operating partnership had received cash proceeds of $82.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 2.0% and 2.4% as of January 31, 2014 and July 31, 2013, respectively.

Ferrellgas, L.P. [Member]

Accounts And Notes Receivable, Net And Accounts Receivable Securitization

Accounts and notes receivable, net and accounts receivable securitization

Accounts and notes receivable, net consist of the following:

	January 31, 2014			July 31, 2013
Accounts receivable pledged as collateral	$	314,475		$	130,025
Accounts receivable	46,009			4,867
Other	477			506
Less: Allowance for doubtful accounts	(4,602		)	(3,607		)
Accounts and notes receivable, net	$	356,359		$	131,791

At January 31, 2014, $314.5 million of trade accounts receivable were pledged as collateral against $219.0 million of collateralized notes payable due to a commercial paper conduit. At July 31, 2013, $130.0 million of trade accounts receivable were pledged as collateral against $82.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from Ferrellgas, L.P. Ferrellgas, L.P. does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. 

As of January 31, 2014, Ferrellgas, L.P. had received cash proceeds of $219.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2013, Ferrellgas, L.P. had received cash proceeds of $82.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 2.0% and 2.4% as of January 31, 2014 and July 31, 2013, respectively.

XML

Supplemental Financial Statement Information

6 Months Ended

Jan. 31, 2014

Supplemental Financial Statement Information

Supplemental financial statement information

Inventories consist of the following:

	January 31, 2014		July 31, 2013
Propane gas and related products	$	107,179	$	94,946
Appliances, parts and supplies	28,651		22,170
Inventories	$	135,830	$	117,116

In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2014, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 49.3 million gallons of propane at fixed prices.

Other current liabilities consist of the following:

	January 31, 2014		July 31, 2013
Accrued interest	$	15,986	$	19,795
Accrued payroll	20,586		30,295
Customer deposits and advances	22,909		20,420
Other	52,760		50,592
Other current liabilities	$	112,241	$	121,102

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

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	54,755	$	48,260	$	100,733	$	92,161
Depreciation and amortization expense	1,440		1,400		2,855		2,927
Equipment lease expense	3,767		3,493		7,394		6,880
	$	59,962	$	53,153	$	110,982	$	101,968

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information

Supplemental financial statement information

Inventories consist of the following:

	January 31, 2014		July 31, 2013
Propane gas and related products	$	107,179	$	94,946
Appliances, parts and supplies	28,651		22,170
Inventories	$	135,830	$	117,116

In addition to inventories on hand, Ferrellgas, L.P. enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2014, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 49.3 million gallons of propane at fixed prices.

Other current liabilities consist of the following:

	January 31, 2014		July 31, 2013
Accrued interest	$	13,977	$	17,787
Accrued payroll	20,586		30,295
Customer deposits and advances	22,909		20,420
Other	52,589		50,401
Other current liabilities	$	110,061	$	118,903

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

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	54,755	$	48,260	$	100,733	$	92,161
Depreciation and amortization expense	1,440		1,400		2,855		2,927
Equipment lease expense	3,767		3,493		7,394		6,880
	$	59,962	$	53,153	$	110,982	$	101,968

XML

Supplemental Financial Statement Information (Tables)

6 Months Ended

Jan. 31, 2014

Schedule of Inventories

Inventories consist of the following:

	January 31, 2014		July 31, 2013
Propane gas and related products	$	107,179	$	94,946
Appliances, parts and supplies	28,651		22,170
Inventories	$	135,830	$	117,116

Other Current Liabilities

Other current liabilities consist of the following:

	January 31, 2014		July 31, 2013
Accrued interest	$	15,986	$	19,795
Accrued payroll	20,586		30,295
Customer deposits and advances	22,909		20,420
Other	52,760		50,592
Other current liabilities	$	112,241	$	121,102

Shipping And Handling Expenses

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

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	54,755	$	48,260	$	100,733	$	92,161
Depreciation and amortization expense	1,440		1,400		2,855		2,927
Equipment lease expense	3,767		3,493		7,394		6,880
	$	59,962	$	53,153	$	110,982	$	101,968

Ferrellgas, L.P. [Member]

Schedule of Inventories

Inventories consist of the following:

	January 31, 2014		July 31, 2013
Propane gas and related products	$	107,179	$	94,946
Appliances, parts and supplies	28,651		22,170
Inventories	$	135,830	$	117,116

Other Current Liabilities

Other current liabilities consist of the following:

	January 31, 2014		July 31, 2013
Accrued interest	$	13,977	$	17,787
Accrued payroll	20,586		30,295
Customer deposits and advances	22,909		20,420
Other	52,589		50,401
Other current liabilities	$	110,061	$	118,903

Shipping And Handling Expenses

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

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Operating expense	$	54,755	$	48,260	$	100,733	$	92,161
Depreciation and amortization expense	1,440		1,400		2,855		2,927
Equipment lease expense	3,767		3,493		7,394		6,880
	$	59,962	$	53,153	$	110,982	$	101,968

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Net Earnings (Loss) Per Common Unitholders' Interest

6 Months Ended

Jan. 31, 2014

Earnings Per Share [Abstract]

Net Earning Per Common Unitholders' Interest

Net earnings per common unitholders’ interest

Below is a calculation of the basic and diluted net loss available per common unitholders’ interest reported in the condensed consolidated statements of earnings for the periods indicated. Considering the participating securities and the two-class method, Ferrellgas calculates net earnings per common unitholders’ interest for each period presented according to distributions declared and participation rights in undistributed earnings, as if all of the earnings or loss for the period had been distributed. In periods with undistributed earnings above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the general partner and a dilution of the earnings to the limited partners. Due to the seasonality of the propane business, the dilutive effect of the two-class method typically impacts only the three months ending January 31. The dilutive effect on net earnings per common unitholders' interest was $0.04 and $0.03 for the three months ended January 31, 2014 and 2013, respectively. There was no dilutive effect for either the six months endedJanuary 31, 2014 or 2013.

In periods with net losses, the allocation of the net losses to the limited partners and the general partner will be determined based on the same allocation basis specified in Ferrellgas Partners’ partnership agreement that would apply to periods in which there were no undistributed earnings. Additionally, there are no dilutive securities in periods with net losses.

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
	(in thousands, except per unitholders' interest amounts)
Common unitholders’ interest in net earnings	$	56,801	$	55,069	$	35,265	$	40,144
Weighted average common units outstanding - basic	79,129.4		79,015.6		79,102.6		79,014.4
Dilutive securities	29.3		36.1		29.9		40.6
Weighted average common units outstanding - diluted	79,158.7		79,051.7		79,132.5		79,055.0
Basic and diluted net earnings per common unitholders’ interest	$	0.72	$	0.70	$	0.45	$	0.51

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Fair Value Measurements

6 Months Ended

Jan. 31, 2014

Fair Value Measurements

Fair value measurements

Derivative Financial Instruments

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of January 31, 2014 and July 31, 2013:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Total
January 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,171		$	—	$	2,171
Propane commodity derivatives	$	—	$	14,333		$	—	$	14,333
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(6,003	)	$	—	$	(6,003	)
July 31, 2013:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	3,783		$	—	$	3,783
Propane commodity derivatives	$	—	$	2,532		$	—	$	2,532
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,998	)	$	—	$	(4,998	)
Propane commodity derivatives	$	—	$	(907	)	$	—	$	(907	)

The fair values of Ferrellgas’ non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of interest rate swap contracts are based upon third-party quotes or indicative values based on recent market transactions.

Ferrellgas, L.P. [Member]

Fair Value Measurements

Fair value measurements

Derivative Financial Instruments

The following table presents Ferrellgas L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of January 31, 2014 and July 31, 2013:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Total
January 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,171		$	—	$	2,171
Propane commodity derivatives	$	—	$	14,333		$	—	$	14,333
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(6,003	)	$	—	$	(6,003	)
July 31, 2013:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	3,783		$	—	$	3,783
Propane commodity derivatives	$	—	$	2,532		$	—	$	2,532
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,998	)	$	—	$	(4,998	)
Propane commodity derivatives	$	—	$	(907	)	$	—	$	(907	)

The fair values of Ferrellgas L.P.’s non-exchange traded commodity derivative contracts are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of interest rate swap contracts are based upon third-party quotes or indicative values based on recent market transactions.

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Debt

6 Months Ended

Jan. 31, 2014

Debt

Debt

Short-term borrowings

Ferrellgas classified a portion of its secured credit facility borrowings as short-term because it was used to fund working capital needs that management had intended to pay down within the 12 month period following each balance sheet date. As of January 31, 2014 and July 31, 2013, $67.0 million and $50.1 million, respectively, were classified as short-term borrowings. For further discussion see the secured credit facility section below.

Long-term debt

Long-term debt consists of the following:

	January 31, 2014			July 31, 2013
Senior notes
Fixed rate, 6.50%, due 2021	$	500,000		$	500,000
Fixed rate, 6.75%, due 2022	325,000			—
Fixed rate, 9.125%, due 2017, net of unamortized discount of $2,556 at July 31, 2013	—			297,444
Fixed rate, 8.625%, due 2020	182,000			182,000
Fair value adjustments related to interest rate swaps	(3,197		)	(1,657		)
Secured credit facility
Variable interest rate, expiring October 2018 (net of $67.0 million and $50.1 million classified as short-term borrowings at January 31, 2014 and July 31, 2013, respectively)	140,455			121,346
Notes payable
9.0% and 9.1% weighted average interest rate at January 31, 2014 and July 31, 2013, respectively, due 2014 to 2022, net of unamortized discount of $2,176 and $2,392 at January 31, 2014 and July 31, 2013, respectively	9,836			10,898
	1,154,094			1,110,031
Less: current portion, included in other current liabilities on the condensed consolidated balance sheets	3,183			3,091
Long-term debt	$	1,150,911		$	1,106,940

Senior notes

During November 2013, Ferrellgas issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. Ferrellgas received $319.3 million of net proceeds after deducting underwriters' fees. Ferrellgas used the net proceeds to redeem all of its $300.0 million9.125% fixed rate senior notes due October 1, 2017. Ferrellgas used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

As a result of the above transactions, the scheduled annual principal payments on long-term debt have been updated as follows:

For the fiscal year ending July 31,	Scheduled annual principal payments
2014	$	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	1,148,872
Total	$	1,159,467

Secured credit facility

During October 2013, Ferrellgas executed an amendment to its secured credit facility. This amendment extended the maturity date to October 2018 and increased the size of the facility from $400.0 million to $500.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million. Ferrellgas incurred a loss on extinguishment of debt of $0.3 million related to the writeoff of capitalized financing costs. Borrowings on the amended secured credit facility bear interest, at our option, at a rate equal to either:

• for Base Rate Loans or Swing Line Loans, the Base Rate, which is defined as the higher of i) the federal funds rate plus 0.50%, ii) Bank of America’s prime rate; or iii) the Eurodollar Rate plus 1.00%; plus a margin varying from 0.75% to 1.75%; or

• for Eurodollar Rate Loans, the Eurodollar Rate, which is defined as the LIBOR Rate plus a margin varying from 1.75% to 2.75%.

As of January 31, 2014, Ferrellgas had total borrowings outstanding under its secured credit facility of $207.5 million, of which$140.5 million was classified as long-term debt. As of July 31, 2013, Ferrellgas had total borrowings outstanding under its secured credit facility of $171.4 million, of which $121.3 million was classified as long-term debt. Additionally, Ferrellgas had $232.2 million and $177.9 million of available borrowing capacity under our secured credit facility as of January 31, 2014 and January 31, 2013, respectively.

Borrowings outstanding at January 31, 2014 and July 31, 2013 under the secured credit facilities had weighted average interest rates of 3.4% and 3.7%, respectively.

The obligations under the credit facility are secured by substantially all assets of the operating partnership, the general partner and certain subsidiaries of the operating partnership but specifically excluding (a) assets that are subject to the operating partnership’s accounts receivable securitization facility, (b) the general partner’s equity interest in Ferrellgas Partners and (c) equity interest in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of the operating partnership.

Letters of credit outstanding at January 31, 2014 totaled $60.3 million and were used primarily to secure insurance arrangements and, to a lesser extent, product purchases. Letters of credit outstanding at July 31, 2013 totaled $53.9 million and were used primarily to secure insurance arrangements and, to a lesser extent, commodity hedges and product purchases. At January 31, 2014, Ferrellgas had remaining letter of credit capacity of $139.7 million. At July 31, 2013, Ferrellgas had remaining letter of credit capacity of $146.1 million.

Interest rate swaps

During May 2012, the operating partnership entered into a $140.0 million interest rate swap agreement to hedge against changes in the fair value of a portion of its $300.0 million 9.125% fixed rate senior notes due 2017. The operating partnership received 9.125% and paid one-month LIBOR plus 7.96% on the $140.0 million swapped. The operating partnership accounted for this agreement as a fair value hedge. In October 2013, this interest rate swap was terminated. As a result, the operating partnership discontinued hedge accounting treatment for this agreement at a cost of $0.2 million, which was classified as loss on extinguishment of debt when the related senior notes were redeemed as discussed above.

Ferrellgas, L.P. [Member]

Debt

Debt

Short-term borrowings

Ferrellgas, L.P. classified a portion of its secured credit facility borrowings as short-term because it was used to fund working capital needs that management had intended to pay down within the 12 month period following each balance sheet date. As of January 31, 2014 and July 31, 2013, $67.0 million and $50.1 million, respectively, were classified as short-term borrowings. For further discussion see the secured credit facility section below.

Long-term debt

Long-term debt consists of the following:

	January 31, 2014			July 31, 2013
Senior notes
Fixed rate, 6.50%, due 2021	$	500,000		$	500,000
Fixed rate, 6.75%, due 2022	325,000			—
Fixed rate, 9.125%, due 2017, net of unamortized discount of $2,556 at July 31, 2013	—			297,444
Fair value adjustments related to interest rate swaps	(3,197		)	(1,657		)
Secured credit facility
Variable interest rate, expiring October 2018 (net of $67.0 million and $50.1 million classified as short-term borrowings at January 31, 2014 and July 31, 2013, respectively)	140,455			121,346
Notes payable
9.0% and 9.1% weighted average interest rate at January 31, 2014 and July 31, 2013, respectively, due 2014 to 2022, net of unamortized discount of $2,176 and $2,392 at January 31, 2014 and July 31, 2013, respectively	9,836			10,898
	972,094			928,031
Less: current portion, included in other current liabilities on the condensed consolidated balance sheets	3,183			3,091
Long-term debt	$	968,911		$	924,940

Senior Notes

During November 2013, Ferrellgas, L.P. issued $325.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to par. Ferrellgas, L.P. received $319.3 million of net proceeds after deducting underwriters' fees. Ferrellgas, L.P. used the net proceeds to redeem all of its $300.0 million9.125% fixed rate senior notes due October 1, 2017. Ferrellgas, L.P. used the remaining proceeds to pay the related $14.7 million make whole and consent payments, $3.3 million in interest payments and to reduce outstanding indebtedness under the secured credit facility. This redemption also resulted in $6.0 million of non-cash write-offs of unamortized debt discount and related capitalized debt costs. The make whole and consent payments and the non-cash write-offs of unamortized debt discount and related capitalized debt costs are classified as loss on extinguishment of debt.

As a result of the above transactions, the scheduled annual principal payments on long-term debt have been updated as follows:

For the fiscal year ending July 31,	Scheduled annual principal payments
2014	$	795
2015	3,053
2016	2,997
2017	2,676
2018	1,074
Thereafter	966,872
Total	$	977,467

Secured credit facility

During October 2013, Ferrellgas, L.P. executed an amendment to its secured credit facility. This amendment extended the maturity date to October 2018 and increased the size of the facility from $400.0 million to $500.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million. Ferrellgas, L.P. incurred a loss on extinguishment of debt of $0.3 million related to the writeoff of capitalized financing costs. Borrowings on the amended secured credit facility bear interest, at our option, at a rate equal to either:

• for Base Rate Loans or Swing Line Loans, the Base Rate, which is defined as the higher of i) the federal funds rate plus 0.50%, ii) Bank of America’s prime rate; or iii) the Eurodollar Rate plus 1.00%; plus a margin varying from 0.75% to 1.75%; or

• for Eurodollar Rate Loans, the Eurodollar Rate, which is defined as the LIBOR Rate plus a margin varying from 1.75% to 2.75%.

As of January 31, 2014, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $207.5 million, of which $140.5 million was classified as long-term debt. As of July 31, 2013, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $171.4 million, of which $121.3 million was classified as long-term debt. Additionally, Ferrellgas had $232.2 million and $177.9 million of available borrowing capacity under our secured credit facility as of January 31, 2014 and January 31, 2013, respectively.

Borrowings outstanding at January 31, 2014 and July 31, 2013 under the secured credit facilities had weighted average interest rates of 3.4% and 3.7%, respectively.

The obligations under this credit facility are secured by substantially all assets of Ferrellgas, L.P., the general partner and certain subsidiaries of Ferrellgas, L.P. but specifically excluding (a) assets that are subject to Ferrellgas, L.P.’s accounts receivable securitization facility, (b) the general partner’s equity interest in Ferrellgas Partners and (c) equity interest in certain unrestricted subsidiaries. Such obligations are also guaranteed by the general partner and certain subsidiaries of Ferrellgas, L.P.

Letters of credit outstanding at January 31, 2014 totaled $60.3 million and were used primarily to secure insurance arrangements and to a lesser extent, product purchases. Letters of credit outstanding at July 31, 2013 totaled $53.9 million and were used primarily to secure insurance arrangements and to a lesser extent, commodity hedges and product purchases. At January 31, 2014, Ferrellgas, L.P. had remaining letter of credit capacity of $139.7 million. At July 31, 2013 Ferrellgas, L.P. had remaining letter of credit capacity of $146.1 million. 

Interest rate swaps

During May 2012, Ferrellgas, L.P. entered into a $140.0 million interest rate swap agreement to hedge against changes in the fair value of a portion of its $300.0 million 9.125% fixed rate senior notes due 2017. Ferrellgas, L.P. received 9.125% and paid one-month LIBOR plus 7.96% on the $140.0 million swapped. Ferrellgas, L.P. accounted for this agreement as a fair value hedge. In October 2013, this interest rate swap was terminated. As a result, Ferrellgas, L.P. discontinued hedge accounting treatment for this agreement at a cost of $0.2 million, which was classified as loss on extinguishment of debt when the related senior notes were redeemed as discussed above.

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Partners' Capital

6 Months Ended

Jan. 31, 2014

Partners' Capital

Partners' deficit

Partnership distributions paid

Ferrellgas Partners has paid the following distributions:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Public common unitholders	$	26,534	$	26,470	$	53,032	$	52,940
Ferrell Companies (1)	10,735		10,735		21,470		21,470
FCI Trading Corp. (2)	98		98		196		196
Ferrell Propane, Inc. (3)	26		26		52		52
James E. Ferrell (4)	2,179		2,179		4,358		4,358
General partner	400		399		799		798
	$	39,972	$	39,907	$	79,907	$	79,814

(1) Ferrell Companies is the owner of the general partner and an approximately 27% direct owner of Ferrellgas Partner's common units and thus a related party.

(2) FCI Trading Corp. is an affiliate of the general partner and thus a related party.

(3) Ferrell Propane, Inc. is controlled by the general partner and thus a related party.

(4) James E. Ferrell is the Chairman of the Board of Directors of the general partner and a related party.

On February 27, 2014, Ferrellgas Partners declared a cash distribution of $0.50 per common unit for the three months ended January 31, 2014, which is expected to be paid on March 17, 2014. Included in this cash distribution are the following amounts to be paid to related parties:

Ferrell Companies	$	10,735
FCI Trading Corp.	98
Ferrell Propane, Inc.	26
James E. Ferrell	2,179
General partner	400

See additional discussions about transactions with related parties in Note I – Transactions with related parties.

Accumulated other comprehensive income (loss)(“AOCI”)

See Note H – Derivative instruments and hedging activities – for details regarding changes in the fair value of risk management financial derivatives recorded within AOCI for the six months endedJanuary 31, 2014 and 2013.

General partner’s commitment to maintain its capital account

Ferrellgas’ partnership agreements allows the general partner to have an option to maintain its effective 2% general partner interest concurrent with the issuance of other additional equity.

During the six months endedJanuary 31, 2014, the general partner made non-cash contributions of $0.3 million to Ferrellgas to maintain its effective 2% general partner interest.

During the six months endedJanuary 31, 2013, the general partner made non-cash contributions of $0.3 million to Ferrellgas to maintain its effective 2% general partner interest.

Ferrellgas, L.P. [Member]

Partners' Capital

Partners’ capital

Partnership distributions paid

Ferrellgas, L.P. has paid the following distributions:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Ferrellgas Partners	$	47,821	$	47,756	$	87,756	$	87,663
General partner	488		487		896		894
	$	48,309	$	48,243	$	88,652	$	88,557

On February 27, 2014, Ferrellgas, L.P. declared distributions for the three months ended January 31, 2014 to Ferrellgas Partners and the general partner of $40.0 million and $0.4 million, respectively, which are expected to be paid on March 17, 2014.

See additional discussions about transactions with related parties in Note I – Transactions with related parties.

Accumulated other comprehensive income (loss)(“AOCI”)

See Note H – Derivative instruments and hedging activities – for details regarding changes in the fair value of risk management financial derivatives recorded within AOCI for the six months endedJanuary 31, 2014 and 2013.

General partner’s commitment to maintain its capital account

Ferrellgas, L.P.’s partnership agreement allows the general partner to have an option to maintain its 1.0101% general partner interest concurrent with the issuance of other additional equity.

During the six months endedJanuary 31, 2014, the general partner made non-cash contributions of $0.2 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest.

During the six months endedJanuary 31, 2013, the general partner made non-cash contributions of $0.2 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jan. 31, 2014

Derivative Instruments and Hedging Activities

Derivative instruments and hedging activities

Ferrellgas is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Ferrellgas also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates.

Derivative instruments and hedging activities

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges.

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

	January 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	11,914	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	2,419		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,171		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	6,003
	Total	$	16,504	Total	$	6,003
	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

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of earnings for the three and six months endedJanuary 31, 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 January 31,				For the three months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	489	$	883	$	(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 six months ended January 31,				For the six months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,321	$	1,607	$	(7,640	)	$	(10,938	)

The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income for the three and six months endedJanuary 31, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:

	For the three months ended January 31, 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	$	5,846		Cost of product sold- propane and other gas liquids sales	$	(3,826	)
Interest rate swap agreements	(63		)	Interest expense	—
	$	5,783			$	(3,826	)

	For the three months ended January 31, 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	$	(5,612	)	Cost of product sold- propane and other gas liquids sales	$	(4,434	)
Interest rate swap agreements	(593		)	Interest expense	—
	$	(6,205	)		$	(4,434	)

	For the six months ended January 31, 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	$	17,463		Cost of product sold- propane and other gas liquids sales	$	(4,755	)
Interest rate swap agreements	(1,076		)	Interest expense	—
	$	16,387			$	(4,755	)

	For the six months ended January 31, 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	$	914		Cost of product sold- propane and other gas liquids sales	$	(8,625	)
Interest rate swap agreements	(843		)	Interest expense	—
	$	71			$	(8,625	)

The changes in derivatives included in AOCI for the six months endedJanuary 31, 2014 and 2013 were as follows:  

	For the six months ended January 31,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,463			914
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(4,755		)	8,625
Change in value of risk management interest rate derivatives	(1,076		)	(843		)
Ending balance	$	13,698		$	(4,103	)

Ferrellgas expects to reclassify net gains of approximately $11.9 million to earnings during the next 12 months. These net gains are expected to be offset by reduced margins on propane sales commitments Ferrellgas has with its customers that qualify for the normal purchase normal sales exception.

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas had no reclassifications to earnings resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship.

As of January 31, 2014, Ferrellgas had financial derivative contracts covering 1.4 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane.

Derivative Financial Instruments Credit Risk

Ferrellgas is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas’ counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas in the forms of letters of credit, parental guarantees or cash. Although Ferrellgas has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, Ferrellgas would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was $14.3 million at January 31, 2014.  

Ferrellgas holds certain derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon the operating partnership’s debt rating. At January 31, 2014, a downgrade in the operating partnership’s debt rating would not trigger any further reduction in credit limit. There were no derivatives with credit-risk-related contingent features in a liability position on January 31, 2014 and Ferrellgas had no collateral posted in the normal course of business related to such derivatives.

Ferrellgas, L.P. [Member]

Derivative Instruments and Hedging Activities

Derivative instruments and hedging activities

Ferrellgas, L.P. is exposed to certain market risks related to its ongoing business operations. These risks include exposure to changing commodity prices as well as fluctuations in interest rates. Ferrellgas, L.P. utilizes derivative instruments to manage its exposure to fluctuations in commodity prices. Ferrellgas, L.P. also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates.

Derivative instruments and hedging activities

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas, L.P. did not recognize any gain or loss in earnings related to hedge ineffectiveness and did not exclude any component of financial derivative contract gains or losses from the assessment of hedge effectiveness related to commodity cash flow hedges.

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 January 31, 2014 and July 31, 2013: 

	January 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Propane commodity derivatives	Prepaid expenses and other current assets	$	11,914	Other current liabilities	$	—
Propane commodity derivatives	Other assets, net	2,419		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,171		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	6,003
	Total	$	16,504	Total	$	6,003
	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

The following table provides a summary of the effect on Ferrellgas L.P.’s condensed consolidated statements of earnings for the six months endedJanuary 31, 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 January 31,				For the three months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	489	$	883	$	(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 six months ended January 31,				For the six months ended January 31,
		2014		2013		2014			2013
Interest rate swap agreements	Interest expense	$	1,321	$	1,607	$	(7,640	)	$	(10,938	)

The following tables provide a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of comprehensive income for the three and six months endedJanuary 31, 2014 and 2013 due to the effective portion of derivatives designated as cash flow hedging instruments:  

	For the three months ended January 31, 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	$	5,846		Cost of product sold- propane and other gas liquids sales	$	(3,826	)
Interest rate swap agreements	(63		)	Interest expense	—
	$	5,783			$	(3,826	)
	For the three months ended January 31, 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	$	(5,612	)	Cost of product sold- propane and other gas liquids sales	$	(4,434	)
Interest rate swap agreements	(593		)	Interest expense	—
	$	(6,205	)		$	(4,434	)

	For the six months ended January 31, 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	$	17,463		Cost of product sold- propane and other gas liquids sales	$	(4,755	)
Interest rate swap agreements	(1,076		)	Interest expense	—
	$	16,387			$	(4,755	)

	For the six months ended January 31, 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	$	914		Cost of product sold- propane and other gas liquids sales	$	(8,625	)
Interest rate swap agreements	(843		)	Interest expense	—
	$	71			$	(8,625	)

The changes in derivatives included in AOCI for the six months endedJanuary 31, 2014 and 2013 were as follows: 

	For the six months ended January 31,
Gains and losses on derivatives included in AOCI	2014			2013
Beginning balance	$	2,066		$	(12,799	)
Change in value of risk management commodity derivatives	17,463			914
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales	(4,755		)	8,625
Change in value of risk management interest rate derivatives	(1,076		)	(843		)
Ending balance	$	13,698		$	(4,103	)

Ferrellgas, L.P. expects to reclassify net gains of approximately $11.9 million to earnings during the next 12 months. These net gains are expected to be offset by reduced margins on propane sales commitments Ferrellgas, L.P. has with its customers that qualify for the normal purchase normal sales exception.

During the six months endedJanuary 31, 2014 and 2013, Ferrellgas, L.P. had no reclassifications to earnings resulting from the discontinuance of any cash flow hedges arising from the probability of the original forecasted transactions not occurring within the originally specified period of time defined within the hedging relationship.

As of January 31, 2014, Ferrellgas, L.P. had financial derivative contracts covering 1.4 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane.

Derivative Financial Instruments Credit Risk

Ferrellgas, L.P. is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Ferrellgas, L.P.’s counterparties principally consist of major energy companies and major U.S. financial institutions. Ferrellgas, L.P. maintains credit policies with regard to its counterparties that it believes reduces its overall credit risk. These policies include evaluating and monitoring its counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by Ferrellgas, L.P. in the forms of letters of credit, parental guarantees or cash. Although Ferrellgas, L.P. has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, Ferrellgas, L.P. would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was $14.3 million at January 31, 2014.  

Ferrellgas, L.P. holds certain derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon the Ferrellgas, L.P.’s debt rating. At January 31, 2014, a downgrade in the Ferrellgas, L.P.’s debt rating would not trigger any further reduction in credit limit. There were no derivatives with credit-risk-related contingent features in a liability position on January 31, 2014 and Ferrellgas, L.P. had no posted collateral in the normal course of business related to such derivatives.

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Supplemental Financial Statement Information (Schedule Of Inventories) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Propane gas and related products	$ 107,179	$ 94,946
Appliances, parts and supplies	28,651	22,170
Inventories	135,830	117,116
Ferrellgas, L.P. [Member]
Propane gas and related products	107,179	94,946
Appliances, parts and supplies	28,651	22,170
Inventories	$ 135,830	$ 117,116

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Derivative Instruments and Hedging Activities (Fair Value Hedge Derivative Effect on Earnings) (Details) (Interest Rate Swap [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Gain (loss) recognized on derivative	$ 489	$ 883	$ 1,321	$ 1,607
Interest expense recognized on fixed-rate debt	(2,275)	(5,469)	(7,640)	(10,938)
Ferrellgas, L.P. [Member]
Gain (loss) recognized on derivative	489	883	1,321	1,607
Interest expense recognized on fixed-rate debt	$ (2,275)	$ (5,469)	$ (7,640)	$ (10,938)

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Summary Of Significant Accounting Policies (Policy)

6 Months Ended

Jan. 31, 2014

Significant Accounting Policies [Line Items]

Accounting estimates

Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, valuation methods used to value intangibles and goodwill in business combinations, allowance for doubtful accounts, fair value of reporting units, fair values of derivative contracts, and stock and unit-based compensation calculations.

Cash equivalents

Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less.

Ferrellgas, L.P. [Member]

Significant Accounting Policies [Line Items]

Accounting estimates

Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, valuation methods used to value intangibles and goodwill in business combinations, allowance for doubtful accounts, fair value of reporting units, fair value of derivative contracts, and stock and unit-based compensation calculations.

Cash equivalents

Ferrellgas, L.P. considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less.

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Partners' Capital (Tables)

6 Months Ended

Jan. 31, 2014

Cash distributions

Ferrellgas Partners has paid the following distributions:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Public common unitholders	$	26,534	$	26,470	$	53,032	$	52,940
Ferrell Companies (1)	10,735		10,735		21,470		21,470
FCI Trading Corp. (2)	98		98		196		196
Ferrell Propane, Inc. (3)	26		26		52		52
James E. Ferrell (4)	2,179		2,179		4,358		4,358
General partner	400		399		799		798
	$	39,972	$	39,907	$	79,907	$	79,814

Ferrellgas, L.P. [Member]

Cash distributions

Ferrellgas, L.P. has paid the following distributions:

	For the three months ended January 31,				For the six months ended January 31,
	2014		2013		2014		2013
Ferrellgas Partners	$	47,821	$	47,756	$	87,756	$	87,663
General partner	488		487		896		894
	$	48,309	$	48,243	$	88,652	$	88,557

Subsequent Event [Member]

Dividends expected to be paid to related parties

Included in this cash distribution are the following amounts to be paid to related parties:

Ferrell Companies	$	10,735
FCI Trading Corp.	98
Ferrell Propane, Inc.	26
James E. Ferrell	2,179
General partner	400

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Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $)	6 Months Ended
	Jan. 31, 2014 MMBbls	Jan. 31, 2013
Derivative [Line Items]
Gain or loss in earnings related to hedge ineffectiveness	$ 0	$ 0
Components of financial derivative contract gains or losses excluded from the assessment of hedge effectiveness	0	0
Reclassification of net gain to earnings during next 12 months	11,900,000
Reclassification of gain (loss) to earnings from discontinuance of cash flow hedges	0	0
Number of barrels of propane covered by cash flow hedges	1,400,000
Derivative amount of credit risk	14,300,000
Derivative net liability position aggregate fair value	0
Collateral already posted	0
Ferrellgas, L.P. [Member]
Derivative [Line Items]
Gain or loss in earnings related to hedge ineffectiveness	0	0
Components of financial derivative contract gains or losses excluded from the assessment of hedge effectiveness	0	0
Reclassification of net gain to earnings during next 12 months	11,900,000
Reclassification of gain (loss) to earnings from discontinuance of cash flow hedges	0	0
Number of barrels of propane covered by cash flow hedges	1,400,000
Derivative amount of credit risk	14,300,000
Derivative net liability position aggregate fair value	0
Collateral already posted	$ 0

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Debt (Senior Notes Narrative) (Details) (USD $)	6 Months Ended				3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014 Ferrellgas, L.P. [Member]	Jan. 31, 2013 Ferrellgas, L.P. [Member]	Jan. 31, 2014 Senior Notes [Member] Fixed Rate, 6.75%, Due 2022 [Member]	Nov. 04, 2013 Senior Notes [Member] Fixed Rate, 6.75%, Due 2022 [Member]	Jan. 31, 2014 Senior Notes [Member] Fixed Rate, 6.75%, Due 2022 [Member] Ferrellgas, L.P. [Member]	Nov. 04, 2013 Senior Notes [Member] Fixed Rate, 6.75%, Due 2022 [Member] Ferrellgas, L.P. [Member]	Jan. 31, 2014 Senior Notes [Member] Fixed Rate, 9.125%, Due 2017 [Member]	Dec. 04, 2013 Senior Notes [Member] Fixed Rate, 9.125%, Due 2017 [Member]	Jan. 31, 2014 Senior Notes [Member] Fixed Rate, 9.125%, Due 2017 [Member] Ferrellgas, L.P. [Member]	Dec. 04, 2013 Senior Notes [Member] Fixed Rate, 9.125%, Due 2017 [Member] Ferrellgas, L.P. [Member]
Debt issuance principal amount						$ 325,000,000.0		$ 325,000,000.0
Debt interest rate						6.75%		6.75%		9.125%		9.125%
Debt maturity year						2022		2022
Net proceeds from issuance of senior notes					319,300,000.0		319,300,000.0
Debt redemption principal amount										300,000,000.0		300,000,000.0
Maturity date									Oct. 01, 2017		Oct. 01, 2017
Make whole and consent payments									14,700,000		14,700,000
Interest payments	45,648,000	42,646,000	37,800,000	34,797,000					3,300,000		3,300,000
Write off of capitalized financing costs									$ 6,000,000		$ 6,000,000

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Consolidated Statements Of Earnings (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Operating Expense [Member]
Non-cash stock and unit-based compensation	$ 1.5	$ 0.6	$ 2.3	$ 1.3
Operating Expense [Member] | Ferrellgas, L.P. [Member]
Non-cash stock and unit-based compensation	1.5	0.6	2.3	1.3
General And Administrative Expense [Member]
Non-cash stock and unit-based compensation	4.4	2.5	8.0	4.9
General And Administrative Expense [Member] | Ferrellgas, L.P. [Member]
Non-cash stock and unit-based compensation	$ 4.4	$ 2.5	$ 8.0	$ 4.9

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Summary Of Significant Accounting Policies

6 Months Ended

Jan. 31, 2014

Significant Accounting Policies [Line Items]

Summary Of Significant Accounting Policies

Summary of significant accounting policies

(1)   Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, valuation methods used to value intangibles and goodwill in business combinations, allowance for doubtful accounts, fair value of reporting units, fair values of derivative contracts, and stock and unit-based compensation calculations.

(2)   Supplemental cash flow information: For purposes of the condensed 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. Certain cash flow and significant non-cash activities are presented below:

	For the six months ended January 31,
	2014		2013
CASH PAID FOR:
Interest	$	45,648	$	42,646
Income taxes	$	178	$	45
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common units in connection with acquisitions	$	1,500	$	—
Liabilities incurred in connection with acquisitions	$	682	$	1,060
Change in accruals for property, plant and equipment additions	$	1,082	$	598

Ferrellgas, L.P. [Member]

Significant Accounting Policies [Line Items]

Summary Of Significant Accounting Policies

Summary of significant accounting policies

(1)Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. Significant estimates impacting the condensed consolidated financial statements include accruals that have been established for contingent liabilities, pending claims and legal actions arising in the normal course of business, useful lives of property, plant and equipment, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, valuation methods used to value intangibles and goodwill in business combinations, allowance for doubtful accounts, fair value of reporting units, fair value of derivative contracts, and stock and unit-based compensation calculations.

(2)Supplemental cash flow information: For purposes of the condensed consolidated statements of cash flows, Ferrellgas, L.P. considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Certain cash flow and significant non-cash activities are presented below:

	For the six months ended January 31,
	2014		2013
CASH PAID FOR:
Interest	$	37,800	$	34,797
Income taxes	$	179	$	45
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Assets contributed from Ferrellgas Partners in connection with acquisitions	$	1,500	$	—
Liabilities incurred in connection with acquisitions	$	682	$	1,060
Change in accruals for property, plant and equipment additions	$	1,082	$	598

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Net Earnings (Loss) Per Common Unitholders' Interest (Schedule of Earnings Per Share) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Common unitholders' interest in net earnings	$ 56,801	$ 55,069	$ 35,265	$ 40,144
Weighted average common units outstanding - basic	79,129,400	79,015,600	79,102,600	79,014,400
Dilutive securities	29,300	36,100	29,900	40,600
Weighted average common units outstanding - diluted	79,158,700	79,051,700	79,132,500	79,055,000
Basic and diluted net earnings per common unitholders' interest	$ 0.72	$ 0.70	$ 0.45	$ 0.51

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Fair Value Measurement (Tables)

6 Months Ended

Jan. 31, 2014

Schedule of fair value assets and liabilities

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of January 31, 2014 and July 31, 2013:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Total
January 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,171		$	—	$	2,171
Propane commodity derivatives	$	—	$	14,333		$	—	$	14,333
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(6,003	)	$	—	$	(6,003	)
July 31, 2013:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	3,783		$	—	$	3,783
Propane commodity derivatives	$	—	$	2,532		$	—	$	2,532
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,998	)	$	—	$	(4,998	)
Propane commodity derivatives	$	—	$	(907	)	$	—	$	(907	)

Ferrellgas, L.P. [Member]

Schedule of fair value assets and liabilities

The following table presents Ferrellgas L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of January 31, 2014 and July 31, 2013:

	Asset (Liability)
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Total
January 31, 2014:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	2,171		$	—	$	2,171
Propane commodity derivatives	$	—	$	14,333		$	—	$	14,333
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(6,003	)	$	—	$	(6,003	)
July 31, 2013:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	3,783		$	—	$	3,783
Propane commodity derivatives	$	—	$	2,532		$	—	$	2,532
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	—	$	(4,998	)	$	—	$	(4,998	)
Propane commodity derivatives	$	—	$	(907	)	$	—	$	(907	)

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Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Accounts And Notes Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Accounts receivable pledged as collateral	$ 314,475	$ 130,025
Accounts receivable	46,009	4,867
Other	477	506
Less: Allowance for doubtful accounts	(4,602)	(3,607)
Accounts and notes receivable, net	356,359	131,791
Ferrellgas, L.P. [Member]
Accounts receivable pledged as collateral	314,475	130,025
Accounts receivable	46,009	4,867
Other	477	506
Less: Allowance for doubtful accounts	(4,602)	(3,607)
Accounts and notes receivable, net	$ 356,359	$ 131,791

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Subsequent Events

6 Months Ended

Jan. 31, 2014

Subsequent Events

Subsequent events

Ferrellgas evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas' condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that require recognition or disclosure in its condensed consolidated financial statements.

Ferrellgas, L.P. [Member]

Subsequent Events

Subsequent events

Ferrellgas, L.P. evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas, L.P.’s condensed consolidated financial statements were issued and concluded that there were no events or transactions occurring during this period that require recognition or disclosure in its condensed consolidated financial statements.