ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended July 31, 2016 | |
or | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware Delaware Delaware Delaware (States or other jurisdictions of incorporation or organization) | 43-1698480 43-1742520 43-1698481 14-1866671 (I.R.S. Employer Identification Nos.) | |
7500 College Boulevard, Suite 1000, Overland Park, Kansas (Address of principal executive office) | 66210 (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common Units of Ferrellgas Partners, L.P. | New York Stock Exchange |
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 |
Ferrellgas Partners, L.P. | 97,152,665 | Common Units | ||
Ferrellgas Partners Finance Corp. | 1,000 | Common Stock | ||
Ferrellgas, L.P. | n/a | n/a | ||
Ferrellgas Finance Corp. | 1,000 | Common Stock |
Page | ||||||
• | “us,” “we,” “our,” “ours,” “consolidated,” or "Ferrellgas" 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; |
• | “water solutions revenues” refers to fees charged for the processing and disposal of salt water as well as the sale of skimming oil; |
• | "crude oil logistics revenues" refers to fees charged for crude oil transportation and logistics services on behalf of producers and end-users of crude oil; |
• | "crude oil sales" refers to crude oil purchased and sold in connection with crude oil transportation and logistics services on behalf of producers and end-users of crude oil; |
• | "crude oil hauled" refers to the crude oil volume in barrels transported through our operation of a fleet of trucks and tank trailers and rail cars; |
• | "Jamex" refers to Jamex Marketing, LLC; |
• | “salt water volume” refers to the number of barrels of salt water processed at our disposal sites; |
• | “skimming oil” refers to the oil collected from the process used at our salt water disposal wells through a combination of gravity and chemicals to separate crude oil that is dissolved in the salt water; |
• | “Notes” refers to the notes of the consolidated financial statements of Ferrellgas Partners or the operating partnership, as applicable; and |
• | "MBbls/d" refers to one thousand barrels per day. |
• | that 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; |
• | that Ferrellgas Partners and the operating partnership will continue to meet all of the quarterly financial tests required by the agreements governing their indebtedness; and |
• | that our future maintenance capital expenditures and working capital needs will be provided by a combination of cash generated from future operations, existing cash balances, the secured credit facility or the accounts receivable securitization facility. |
• | the effect of weather conditions on the demand for propane; |
• | the prices of wholesale propane, motor fuel and crude oil; |
• | disruptions to the supply of propane; |
• | competition from other industry participants and other energy sources; |
• | energy efficiency and technology advances; |
• | the termination or non-renewal of certain arrangements or agreements; |
• | adverse changes in our relationships with our national propane customers; |
• | significant delays in the collection of accounts or notes receivable; |
• | changes in demand for, and production of, hydrocarbon products; |
• | capacity overbuild of midstream energy infrastructure in our midstream operational areas; |
• | disruptions to railroad operations on the railroads we use; |
• | increased trucking and rail regulations; |
• | cost increases that exceed contractual rate increases for our logistics services; |
• | inherent operating and litigation risks in gathering, transporting, handling and storing propane and crude oil; |
• | our inability to complete acquisitions or to successfully integrate acquired operations; |
• | costs of complying with, or liabilities imposed under, environmental, health and safety laws; |
• | economic and political instability, particularly in areas of the world tied to the energy industry; and |
• | disruptions in the capital and credit markets. |
• | the retail distribution of propane and related equipment sales, and |
• | midstream operations - crude oil logistics. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Fiscal year ended | Propane sales volumes (in millions) | ||
July 31, 2016 | 779 | ||
July 31, 2015 | 879 | ||
July 31, 2014 | 947 |
• | our efficiency in delivering propane to customers; |
• | our employee training and safety programs; |
• | our enhanced customer service, facilitated by our technology platform and our 24 hours a day, seven days a week emergency retail customer call support capabilities; and |
• | our national distributor network for our commercial and portable tank exchange customers. |
• | the sale of refined fuels, and |
• | common carrier services |
• | Expand our operations through internal growth, as accretive opportunities become available; |
• | capitalize on our national presence and economies of scale; and |
• | maximize operating efficiencies through utilization of our technology platform. |
• | product procurement; |
• | transportation; |
• | fleet purchases; |
• | propane customer administration; and |
• | general administration. |
(1) | Jamex agreed to execute and deliver a secured promissory note in favor of Bridger in original principal amount of $49.5 million (the "Jamex Secured Promissory Note") in satisfaction of all obligations owed to Bridger under the |
(2) | Mr. Ballengee and Bacchus Capital Trading, LLC, an entity controlled by Mr. Ballengee, executed and delivered a joint guarantee of the Jamex Secured Promissory Note obligations up to a maximum aggregate amount of $20.0 million; |
(3) | The operating partnership agreed to provide Jamex with a $5.0 million revolving secured working capital facility evidenced by a revolving promissory note (the “Jamex Revolving Promissory Note” and, together with the Jamex Secured Promissory Note, the “Jamex Notes”); |
(4) | The other Jamex entities agreed to execute and deliver a security agreement and a full guarantee of the obligations under the Jamex Notes; |
(5) | Ferrellgas paid approximately $16.9 million to Jamex and in return received (and cancelled) 0.9 million of Ferrellgas Partners' common units; |
(6) | The parties agreed to terminate the Jamex TLA and certain other commercial agreements and arrangements between them, and release any claims between or among them that may exist (other than those arising under the Jamex Termination Agreement or the other agreements entered into in connection with the Jamex Termination Agreement); and |
(7) | Ferrellgas waived the remaining lockup provision applicable to Jamex under the Registration Rights Agreement dated June 24, 2015 to which Jamex is party. |
• | the perception that another company can provide better service; |
• | the availability of crude oil alternative supply points, or crude oil supply points located closer to the operations of its customers; and |
• | a decision by its competitors to develop, acquire or construct crude oil midstream assets and provide gathering, transportation, terminalling or storage services in geographic areas, or to customers, served by Bridger's assets and services. |
Propane field operations | 3,340 | |
Crude oil logistics operations | 110 | |
Other operations | 36 | |
Centralized corporate functions | 422 | |
Total | 3,908 |
• | impair our ability to effectively market or acquire propane; or |
• | impair our ability to raise equity or debt capital for acquisitions, capital expenditures or ongoing operations. |
• | the level of domestic production and consumer demand; |
• | the availability of imported oil and actions taken by foreign oil producing nations; |
• | the availability of alternative transportation systems with adequate capacity; |
• | the availability of competitive fuels; |
• | fluctuating demand for oil and other hydrocarbon products; |
• | the impact of conservation efforts; |
• | the level of excess production capacity; |
• | the cost of exploring for, producing and delivering oil and gas; |
• | weather conditions; |
• | political uncertainty and sociopolitical unrest; |
• | technological advances affecting energy consumption; |
• | governmental regulation and taxation; and |
• | prevailing economic conditions. |
• | mechanical or structural failures with respect to our assets, at our facilities or with respect to third-party assets or facilities on which our operations are dependent; |
• | damages to pipelines and facilities, related equipment and surrounding properties caused by earthquakes, floods, fires, severe weather, explosions and other natural disasters and acts of terrorism; and |
• | the inability of third-party facilities on which our operations are dependent, to complete capital projects and to restart timely refining operations following a shutdown. |
• | we had total indebtedness of approximately $2.1 billion; |
• | Ferrellgas Partners had partners’ deficit of approximately $651.8 million; |
• | we had total potential availability under our secured credit facility of approximately $219.3 million, although we would only be able to borrow $8.1 million as of July 31, 2016 under the existing covenants; and |
• | we had aggregate future minimum rental commitments under non-cancelable operating leases of approximately $179.7 million; provided, however, if we elect to purchase the underlying assets at the end of the lease terms, such aggregate buyout would be $26.0 million. |
• | $3.9 million - 2017 |
• | $2.4 million - 2018; |
• | $294.9 million - 2019; |
• | $183.0 million - 2020; |
• | $500.8 million - 2021; and |
• | $975.2 million - thereafter. |
• | make it more difficult for us to satisfy our obligations with respect to our securities; |
• | impair our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes; |
• | result in higher interest expense in the event of increases in interest rates since some of our debt is, and will continue to be, at variable rates of interest; |
• | impair our operating capacity and cash flows if we fail to comply with financial and restrictive covenants in our debt agreements and an event of default occurs as a result of that failure that is not cured or waived; |
• | require us to dedicate a substantial portion of our cash flow to payments on our indebtedness and other financial obligations, thereby reducing the availability of our cash flow to fund distributions, working capital, capital expenditures and other general partnership requirements; |
• | limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and |
• | place us at a competitive disadvantage compared to our competitors that have proportionately less debt. |
• | restructure or refinance their indebtedness; |
• | enter into other necessary financial transactions; |
• | reduce or suspend Ferrellgas Partners' distributions; |
• | seek additional equity capital; or |
• | sell their assets. |
• | incur additional indebtedness; |
• | make distributions to our unitholders; |
• | purchase or redeem our outstanding equity interests or subordinated debt; |
• | make specified investments; |
• | create or incur liens; |
• | sell assets; |
• | engage in specified transactions with affiliates; |
• | restrict the ability of our subsidiaries to make specified payments, loans, guarantees and transfers of assets or interests in assets; |
• | engage in sale-leaseback transactions; |
• | effect a merger or consolidation with or into other companies or a sale of all or substantially all of our properties or assets; and |
• | engage in other lines of business. |
• | to obtain future financings; |
• | to make needed capital expenditures; |
• | to withstand a future downturn in our business or the economy in general; or |
• | to conduct operations or otherwise take advantage of business opportunities that may arise. |
• | a significant increase in the wholesale cost of propane; |
• | a significant reduction in the production of crude oil; |
• | a significant delay in the collections of accounts and notes receivable; |
• | increased volatility in energy commodity prices related to risk management activities; |
• | increased liquidity requirements imposed by insurance providers; |
• | a significant downgrade in our credit rating leading to decreased trade credit; |
• | a significant acquisition; or |
• | a large uninsured unfavorable lawsuit result or settlement. |
• | we will be able to acquire any of these candidates on economically acceptable terms, which may include the assumption of known or unknown liabilities such as environmental liabilities and indemnity limitations; |
• | we will be able to successfully integrate acquired operations with any expected cost savings; |
• | any acquisitions made will not be dilutive to our earnings and distributions; |
• | we will not have unforeseen difficulties operating in new geographic areas or in new business segments; |
• | management's and employees' attention will not be diverted from other business concerns' |
• | we will not have customer or key employee loss from the acquired businesses; |
• | any additional equity we issue as consideration for an acquisition will not be dilutive to our unitholders; or |
• | any additional debt we incur to finance an acquisition will not affect the operating partnership’s ability to make distributions to Ferrellgas Partners or service the operating partnership’s existing debt. |
• | the lenders under the operating partnership’s indebtedness; |
• | the claims of lessors under the operating partnership’s operating leases; |
• | the claims of the lenders and their affiliates under the operating partnership’s accounts receivable securitization facility; |
• | debt securities, including any subordinated debt securities, issued by the operating partnership; and |
• | all other possible future creditors of the operating partnership and its subsidiaries. |
• | a liquid market for the debt securities will develop; |
• | a debt holder will be able to sell its debt securities; or |
• | a debt holder will receive any specific price upon any sale of its debt securities. |
• | cash flow generated by operations; |
• | weather in our areas of operation; |
• | borrowing capacity under our secured credit facility; |
• | principal and interest payments made on our debt; |
• | the costs of acquisitions, including related debt service payments; |
• | restrictions contained in debt instruments; |
• | issuances of debt and equity securities; |
• | fluctuations in working capital; |
• | capital expenditures; |
• | adjustments in reserves made by our general partner in its discretion; |
• | prevailing economic conditions; and |
• | financial, business and other factors, a number of which will be beyond our control. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
• | to comply with the terms of any of our agreements or obligations, including the establishment of reserves to fund the payment of interest and principal in the future of any debt securities of Ferrellgas Partners or the operating partnership; |
• | to provide for level distributions of cash notwithstanding the seasonality of our business; and |
• | to provide for future capital expenditures and other payments deemed by our general partner to be necessary or advisable. |
• | making any distributions to unitholders if an event of default exists or would exist when such distribution is made; |
• | distributing amounts in excess of 100% of available cash for the immediately preceding fiscal quarter if its consolidated fixed charge coverage ratio as defined in the indenture is less than 1.75 to 1.00; or |
• | distributing amounts in excess of $25.0 million less any restricted payments made for the prior sixteen fiscal quarters plus the aggregate cash contributions made to us during that period if its consolidated fixed charge coverage ratio as defined in the indenture is less than or equal to 1.75 to 1.00. |
• | discourage a person or group from attempting to remove our general partner or otherwise change management; and |
• | reduce the price at which our common units will trade under various circumstances. |
• | incur additional indebtedness; |
• | engage in transactions with affiliates; |
• | create or incur liens; |
• | sell assets; |
• | make restricted payments, loans and investments; |
• | enter into business combinations and asset sale transactions; and |
• | engage in other lines of business. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
• | the vote of the holders of at least 66 2/3% of the outstanding units entitled to vote thereon, which includes the common units owned by our general partner and its affiliates; and |
• | upon the election of a successor general partner by the vote of the holders of not less than a majority of the outstanding common units entitled to vote. |
• | remove or replace our general partner; |
• | make specified amendments to our partnership agreements; or |
• | take other action pursuant to our partnership agreements that constitutes participation in the “control” of our business, |
• | the general partner does not breach any duty to us or our unitholders by borrowing funds or approving any borrowing; our general partner is protected even if the purpose or effect of the borrowing is to increase incentive distributions to our general partner; |
• | our general partner does not breach any duty to us or our unitholders by taking any actions consistent with the standards of reasonable discretion outlined in the definitions of available cash and cash from operations contained in our partnership agreements; and |
• | our general partner does not breach any standard of care or duty by resolving conflicts of interest unless our general partner acts in bad faith. |
• | decisions of our general partner with respect to the amount and timing of our cash expenditures, borrowings, acquisitions, issuances of additional securities and changes in reserves in any quarter may affect the amount of incentive distributions we are obligated to pay our general partner; |
• | borrowings do not constitute a breach of any duty owed by our general partner to our unitholders even if these borrowings have the purpose or effect of directly or indirectly enabling us to make distributions to the holder of our incentive distribution rights, currently our general partner; |
• | we do not have any employees and rely solely on employees of our general partner and its affiliates; |
• | under the terms of our partnership agreements, we must reimburse our general partner and its affiliates for costs incurred in managing and operating us, including costs incurred in rendering corporate staff and support services to us; |
• | our general partner is not restricted from causing us to pay it or its affiliates for any services rendered on terms that are fair and reasonable to us or causing us to enter into additional contractual arrangements with any of such entities; |
• | neither our partnership agreements nor any of the other agreements, contracts and arrangements between us, on the one hand, and our general partner and its affiliates, on the other, are or will be the result of arms-length negotiations; |
• | whenever possible, our general partner limits our liability under contractual arrangements to all or a portion of our assets, with the other party thereto having no recourse against our general partner or its assets; |
• | our partnership agreements permit our general partner to make these limitations even if we could have obtained more favorable terms if our general partner had not limited its liability; |
• | any agreements between us and our general partner or its affiliates will not grant to our unitholders, separate and apart from us, the right to enforce the obligations of our general partner or such affiliates in favor of us; therefore, our general partner will be primarily responsible for enforcing those obligations; |
• | our general partner may exercise its right to call for and purchase common units as provided in the partnership agreement of Ferrellgas Partners or assign that right to one of its affiliates or to us; |
• | our partnership agreements provide that it will not constitute a breach of our general partner’s fiduciary duties to us for its affiliates to engage in activities of the type conducted by us, other than retail propane sales to end users in the continental United States in the manner engaged in by our general partner immediately prior to our initial public offering, even if these activities are in direct competition with us; |
• | our general partner and its affiliates have no obligation to present business opportunities to us; |
• | our general partner selects the attorneys, accountants and others who perform services for us, and these persons may also perform services for our general partner and its affiliates; however, our general partner is authorized to retain separate counsel for us or our unitholders, depending on the nature of the conflict that arises; and |
• | James E. Ferrell is the Interim Chief Executive Officer and President of our general partner; and is the Chairman of the Board of Directors of our general partner. Mr. Ferrell also owns other companies with whom we may, from time to time, conduct transactions within our ordinary course of business. Mr. Ferrell’s ownership of these entities may conflict with his duties as a director of our general partner, including our relationship and conduct of business with any of Mr. Ferrell’s companies. |
• | decisions of our general partner with respect to the amount and timing of our cash expenditures, borrowings, acquisitions, issuances of additional securities and changes in reserves in any quarter may affect the amount of incentive distributions we are obligated to pay our general partner; |
• | borrowings do not constitute a breach of any duty owed by our general partner to our unitholders even if these borrowings have the purpose or effect of directly or indirectly enabling us to make distributions to the holder of our incentive distribution rights, currently our general partner; |
• | we do not have any employees and rely solely on employees of our general partner and its affiliates; |
• | under the terms of our partnership agreements, we must reimburse our general partner and its affiliates for costs incurred in managing and operating us, including costs incurred in rendering corporate staff and support services to us; |
• | our general partner is not restricted from causing us to pay it or its affiliates for any services rendered on terms that are fair and reasonable to us or causing us to enter into additional contractual arrangements with any of such entities; |
• | neither our partnership agreements nor any of the other agreements, contracts and arrangements between us, on the one hand, and our general partner and its affiliates, on the other, are or will be the result of arms-length negotiations; |
• | whenever possible, our general partner limits our liability under contractual arrangements to all or a portion of our assets, with the other party thereto having no recourse against our general partner or its assets; |
• | our partnership agreements permit our general partner to make these limitations even if we could have obtained more favorable terms if our general partner had not limited its liability; |
• | any agreements between us and our general partner or its affiliates will not grant to our unitholders, separate and apart from us, the right to enforce the obligations of our general partner or such affiliates in favor of us; therefore, our general partner will be primarily responsible for enforcing those obligations; |
• | our general partner may exercise its right to call for and purchase common units as provided in the partnership agreement of Ferrellgas Partners or assign that right to one of its affiliates or to us; |
• | our partnership agreements provide that it will not constitute a breach of our general partner’s fiduciary duties to us for its affiliates to engage in activities of the type conducted by us, other than retail propane sales to end users in the continental United States in the manner engaged in by our general partner immediately prior to our initial public offering, even if these activities are in direct competition with us; |
• | our general partner and its affiliates have no obligation to present business opportunities to us; |
• | our general partner selects the attorneys, accountants and others who perform services for us. These persons may also perform services for our general partner and its affiliates. Our general partner is authorized to retain separate counsel for us or our unitholders, depending on the nature of the conflict that arises; and |
• | James E. Ferrell is the Interim Chief Executive Officer and President of our general partner; and is the Chairman of the Board of Directors of our general partner. Mr. Ferrell also owns other companies with whom we may, from time to time, conduct transactions within our ordinary course of business. Mr. Ferrell’s ownership of these entities may conflict with his duties as a director of our general partner, including our relationship and conduct of business with any of Mr. Ferrell's companies. |
Owned | Leased | Total | |||||||
Truck tractors | 83 | 88 | 171 | ||||||
Propane transport trailers | 269 | 1 | 270 | ||||||
Portable tank delivery trucks | 204 | 327 | 531 | ||||||
Portable tank exchange delivery trailers | 219 | 86 | 305 | ||||||
Bulk propane delivery trucks | 738 | 734 | 1,472 | ||||||
Pickup and service trucks | 642 | 407 | 1,049 | ||||||
Railroad tank cars | — | 93 | 93 | ||||||
Owned | Leased | Total | |||||||
Truck tractors | 412 | — | 412 | ||||||
Propane transport trailers | 8 | — | 8 | ||||||
Pickup and service trucks | 51 | 5 | 56 | ||||||
Passenger vehicles | 6 | — | 6 | ||||||
Water trailers | 10 | 11 | 21 | ||||||
Crude oil trailers | 683 | — | 683 | ||||||
Railroad tank cars | 1,292 | — | 1,292 | ||||||
Pipeline injection terminals | 19 | — | 19 |
Location name | Region | Permitted Capacity (barrels per day) | |
Gillet, Texas (A) | Eagle Ford shale | 25,000 | |
Engler, Texas (A) | Eagle Ford shale | 25,000 | |
Helena, Texas (A) | Eagle Ford shale | 25,000 | |
Kenedy, Texas (B) | Eagle Ford shale | 25,000 | |
Dilley, Texas (B) | Eagle Ford shale | 25,000 | |
Dietert, Texas (A) | Eagle Ford shale | 10,000 | |
Gerold, Texas (A) | Eagle Ford shale | 25,000 | |
Mellenbruch, Texas (A) | Eagle Ford shale | 20,000 | |
Hirsch, Texas (A) | Eagle Ford shale | 20,000 | |
Asherton, Texas (B) | Eagle Ford shale | 25,000 |
ITEM 5. | MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED UNITHOLDER AND STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
Common Unit Price Range | Distributions | |||||||||||
High | Low | Declared Per Unit | ||||||||||
2015 Fiscal Year | ||||||||||||
First Quarter | $ | 28.68 | $ | 24.87 | $ | 0.50 | ||||||
Second Quarter | 28.45 | 21.98 | 0.50 | |||||||||
Third Quarter | 25.40 | 22.13 | 0.50 | |||||||||
Fourth Quarter | 24.82 | 20.00 | 0.50 | |||||||||
2016 Fiscal Year | ||||||||||||
First Quarter | $ | 22.64 | $ | 19.54 | $ | 0.5125 | ||||||
Second Quarter | 20.98 | 14.36 | 0.5125 | |||||||||
Third Quarter | 18.81 | 15.16 | 0.5125 | |||||||||
Fourth Quarter | 20.68 | 16.48 | 0.5125 |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Ferrellgas Partners, L.P. | ||||||||||||||||||||
Year Ended July 31, | ||||||||||||||||||||
(in thousands, except per unit data) | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Income statement data: | ||||||||||||||||||||
Total revenues | $ | 2,039,367 | $ | 2,024,390 | $ | 2,405,860 | $ | 1,975,467 | $ | 2,339,092 | ||||||||||
Interest expense | 137,937 | 100,396 | 86,502 | 89,145 | 93,254 | |||||||||||||||
Asset impairments | 658,118 | — | — | — | — | |||||||||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (665,415 | ) | 29,620 | 33,211 | 56,426 | (10,952 | ) | |||||||||||||
Basic and diluted net earnings (loss) per common unitholders’ interest | $ | (6.68 | ) | $ | 0.35 | $ | 0.41 | $ | 0.71 | $ | (0.14 | ) | ||||||||
Cash distributions declared per common unit | $ | 2.05 | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | ||||||||||
Balance sheet data: | ||||||||||||||||||||
Working capital (1) | $ | (77,062 | ) | $ | (44,371 | ) | $ | 9,891 | $ | (21,305 | ) | $ | (50,875 | ) | ||||||
Total assets (2) | 1,683,306 | 2,437,729 | 1,553,564 | 1,342,163 | 1,381,140 | |||||||||||||||
Long-term debt (2) | 1,941,335 | 1,778,065 | 1,273,508 | 1,093,075 | 1,042,946 | |||||||||||||||
Partners' capital (deficit) | (651,780 | ) | 207,709 | (111,646 | ) | (86,627 | ) | (27,526 | ) | |||||||||||
Operating data (unaudited): | ||||||||||||||||||||
Propane sales volumes (gallons) | 778,892 | 878,846 | 946,570 | 901,370 | 878,130 | |||||||||||||||
Crude oil hauled (barrels) | 79,411 | 10,447 | — | — | — | |||||||||||||||
Crude oil sold (barrels) | 6,860 | 702 | — | — | — | |||||||||||||||
Capital expenditures: | ||||||||||||||||||||
Maintenance | $ | 16,877 | $ | 19,449 | $ | 18,138 | $ | 15,248 | $ | 15,864 | ||||||||||
Growth | 96,058 | 50,388 | 32,843 | 25,916 | 32,865 | |||||||||||||||
Acquisition | 28,245 | 901,612 | 169,430 | 31,919 | 14,034 | |||||||||||||||
Total | $ | 141,180 | $ | 971,449 | $ | 220,411 | $ | 73,083 | $ | 62,763 | ||||||||||
Supplemental data (unaudited): | ||||||||||||||||||||
Adjusted EBITDA (a) | $ | 344,730 | $ | 300,184 | $ | 288,148 | $ | 272,249 | $ | 193,086 | ||||||||||
Ferrellgas Partners, L.P. | ||||||||||||||||||||
Year Ended July 31, | ||||||||||||||||||||
Reconciliation of Net Earnings (Loss) to EBITDA and Adjusted EBITDA and Distributable cash flow attributable to common unit holders: | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | $ | (665,415 | ) | $ | 29,620 | $ | 33,211 | $ | 56,426 | $ | (10,952 | ) | ||||||||
Income tax expense (benefit) | (36 | ) | (315 | ) | 2,516 | 1,855 | 1,128 | |||||||||||||
Interest expense | 137,937 | 100,396 | 86,502 | 89,145 | 93,254 | |||||||||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | 83,344 | 83,841 | |||||||||||||||
EBITDA | (377,001 | ) | 228,280 | 206,431 | 230,770 | 167,271 | ||||||||||||||
Asset impairments | 658,118 | — | — | — | — | |||||||||||||||
Loss on extinguishment of debt | — | — | 21,202 | — | — | |||||||||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | 15,769 | 9,440 | |||||||||||||||
Non-cash stock and unit-based compensation charge | 9,324 | 25,982 | 24,508 | 13,545 | 8,843 | |||||||||||||||
Loss on asset sales and disposals | 30,835 | 7,099 | 6,486 | 10,421 | 6,035 | |||||||||||||||
Other (income) expense, net | (110 | ) | 350 | 479 | (565 | ) | (506 | ) | ||||||||||||
Severance charges | 1,453 | — | — | — | 1,055 | |||||||||||||||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | 5,000 | — | — | |||||||||||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 806 | 1,749 | 1,568 | 892 | |||||||||||||||
Acquisitions and transition expenses | 99 | 16,373 | — | — | — | |||||||||||||||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments | 1,137 | 2,412 | — | — | — | |||||||||||||||
Net earnings (loss) attributable to noncontrolling interest | (6,620 | ) | 469 | 504 | 741 | 56 | ||||||||||||||
Adjusted EBITDA (a) | 344,730 | 300,184 | 288,148 | 272,249 | 193,086 | |||||||||||||||
Net cash interest (b) | (132,860 | ) | (96,150 | ) | (83,686 | ) | (83,495 | ) | (87,600 | ) | ||||||||||
Maintenance capital expenditures (c) | (17,137 | ) | (19,612 | ) | (17,673 | ) | (15,070 | ) | (16,044 | ) | ||||||||||
Cash paid for taxes | (777 | ) | (712 | ) | (816 | ) | (550 | ) | (764 | ) | ||||||||||
Proceeds from asset sales | 6,023 | 5,905 | 4,524 | 9,980 | 5,742 | |||||||||||||||
Distributable cash flow attributable to equity investors (d) | 199,979 | 189,615 | 190,497 | 183,114 | 94,420 | |||||||||||||||
Less: Distributable cash flow attributable to general partner and non-controlling interest | (4,000 | ) | (3,792 | ) | (3,810 | ) | (3,663 | ) | (1,888 | ) | ||||||||||
Distributable cash flow attributable to common unit holders (e) | 195,979 | 185,823 | 186,687 | 179,451 | 92,532 | |||||||||||||||
Less: Distributions paid to common unitholders | (202,119 | ) | (165,433 | ) | (159,316 | ) | (158,087 | ) | (154,955 | ) | ||||||||||
Distributable cash flow surplus/(shortage) | $ | (6,140 | ) | $ | 20,390 | $ | 27,371 | $ | 21,364 | $ | (62,423 | ) |
Ferrellgas, L.P. | ||||||||||||||||||||
Year Ended July 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Income statement data: | ||||||||||||||||||||
Total revenues | $ | 2,039,367 | $ | 2,024,390 | $ | 2,405,860 | $ | 1,975,467 | $ | 2,339,092 | ||||||||||
Interest expense | 121,818 | 84,227 | 70,332 | 72,974 | 77,127 | |||||||||||||||
Asset impairments | 658,118 | — | — | — | — | |||||||||||||||
Net earnings (loss) | (655,391 | ) | 46,427 | 49,907 | 73,375 | 5,589 | ||||||||||||||
Balance sheet data: | ||||||||||||||||||||
Working capital (1) | $ | (75,149 | ) | $ | (41,986 | ) | $ | 11,901 | $ | (19,289 | ) | $ | (48,843 | ) | ||||||
Total assets (2) | 1,683,213 | 2,435,603 | 1,553,516 | 1,341,878 | 1,380,756 | |||||||||||||||
Long-term debt (2) | 1,760,881 | 1,598,033 | 1,093,897 | 913,886 | 864,179 | |||||||||||||||
Partners' capital (deficit) | (469,413 | ) | 390,126 | 69,925 | 94,476 | 153,140 | ||||||||||||||
Operating data (unaudited): | ||||||||||||||||||||
Propane sales volumes (gallons) | 778,892 | 878,846 | 946,570 | 901,370 | 878,130 | |||||||||||||||
Crude oil hauled (barrels) | 79,411 | 10,447 | ||||||||||||||||||
Crude oil sold (barrels) | 6,860 | 702 | ||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||
Maintenance | $ | 16,877 | $ | 19,449 | $ | 18,138 | $ | 15,248 | $ | 15,864 | ||||||||||
Growth | 96,058 | 50,388 | 32,843 | 25,916 | 32,865 | |||||||||||||||
Acquisition | 28,245 | 901,612 | 169,430 | 31,919 | 14,034 | |||||||||||||||
Total | $ | 141,180 | $ | 971,449 | $ | 220,411 | $ | 73,083 | $ | 62,763 | ||||||||||
Supplemental data (unaudited): | ||||||||||||||||||||
Adjusted EBITDA (a) | $ | 345,250 | $ | 300,288 | $ | 288,125 | $ | 272,269 | $ | 193,436 |
Ferrellgas, L.P. | ||||||||||||||||||||
Year Ended July 31, | ||||||||||||||||||||
Reconciliation of Net Earnings (Loss) to EBITDA and Adjusted EBITDA : | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Net earnings (loss) | $ | (655,391 | ) | $ | 46,427 | $ | 49,907 | $ | 73,375 | $ | 5,589 | |||||||||
Income tax expense (benefit) | (41 | ) | (384 | ) | 2,471 | 1,838 | 1,120 | |||||||||||||
Interest expense | 121,818 | 84,227 | 70,332 | 72,974 | 77,127 | |||||||||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | 83,344 | 83,841 | |||||||||||||||
EBITDA | (383,101 | ) | 228,849 | 206,912 | 231,531 | 167,677 | ||||||||||||||
Asset impairments | 658,118 | — | — | — | — | |||||||||||||||
Loss on extinguishment of debt | — | — | 21,202 | — | — | |||||||||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | 15,769 | 9,440 | |||||||||||||||
Non-cash stock and unit-based compensation charge | 9,324 | 25,982 | 24,508 | 13,545 | 8,843 | |||||||||||||||
Loss on asset sales and disposals | 30,835 | 7,099 | 6,486 | 10,421 | 6,035 | |||||||||||||||
Other (income) expense, net | (110 | ) | 354 | 479 | (565 | ) | (506 | ) | ||||||||||||
Severance charges | 1,453 | — | — | — | 1,055 | |||||||||||||||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | 5,000 | — | — | |||||||||||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 806 | 1,749 | 1,568 | 892 | |||||||||||||||
Acquisition and transition expenses | 99 | 16,373 | — | — | — | |||||||||||||||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments | 1,137 | 2,412 | — | — | — | |||||||||||||||
Adjusted EBITDA (a) | $ | 345,250 | $ | 300,288 | $ | 288,125 | $ | 272,269 | $ | 193,436 | ||||||||||
• | maintenance capital expenditures, which include capitalized expenditures for betterment and replacement of property, plant and equipment; |
• | growth capital expenditures, which include expenditures for purchases of both bulk and portable propane tanks and other equipment to facilitate expansion of our customer base and operating capacity; and |
• | acquisition capital expenditures, which include expenditures related to the acquisition of propane and related equipment sales operations and midstream operations and represent the total cost of acquisitions less working capital acquired. |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | 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 operations in their respective consolidated financial statements and Note I – Debt in the respective notes to their consolidated financial statements; and |
• | Ferrellgas Partners issued common units during both fiscal 2015 and 2016 and repurchased common units during both fiscal 2016 and in the beginning of fiscal 2017. |
(1) | Jamex agreed to execute and deliver a secured promissory note in favor of Bridger in original principal amount of $49.5 million (the "Jamex Secured Promissory Note") in satisfaction of all obligations owed to Bridger under the Jamex TLA; |
(2) | Mr. Ballengee and Bacchus Capital Trading, LLC, an entity controlled by Mr. Ballengee, executed and delivered a joint guarantee of the Jamex Secured Promissory Note obligations up to a maximum aggregate amount of $20.0 million; |
(3) | The operating partnership agreed to provide Jamex with a $5.0 million revolving secured working capital facility evidenced by a revolving promissory note (the “Jamex Revolving Promissory Note” and, together with the Jamex Secured Promissory Note, the “Jamex Notes”); |
(4) | The other Jamex entities agreed to execute and deliver a security agreement and a full guarantee of the obligations under the Jamex Notes; |
(5) | Ferrellgas paid approximately $16.9 million to Jamex and in return received (and cancelled) 0.9 million of Ferrellgas Partners' common units; |
(6) | The parties agreed to terminate the Jamex TLA and certain other commercial agreements and arrangements between them, and release any claims between or among them that may exist (other than those arising under the Jamex Termination Agreement or the other agreements entered into in connection with the Jamex Termination Agreement); and |
(7) | Ferrellgas waived the remaining lockup provision applicable to Jamex under the Registration Rights Agreement dated June 24, 2015 to which Jamex is party. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
(amounts in thousands) | Year ended July 31, | ||||||||||
2016 | 2015 | 2014 | |||||||||
Total revenues | $ | 2,039,367 | $ | 2,024,390 | $ | 2,405,860 | |||||
Total cost of sales | 1,161,904 | 1,224,511 | 1,614,540 | ||||||||
Operating expense | 459,178 | 437,457 | 451,528 | ||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | ||||||||
General and administrative expense | 56,635 | 77,238 | 65,156 | ||||||||
Equipment lease expense | 28,833 | 24,273 | 17,745 | ||||||||
Non-cash employment stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | ||||||||
Asset impairments | 658,118 | — | — | ||||||||
Loss on asset sales and disposal | 30,835 | 7,099 | 6,486 | ||||||||
Operating income (loss) | (534,244 | ) | 130,520 | 144,414 | |||||||
Interest expense | (137,937 | ) | (100,396 | ) | (86,502 | ) | |||||
Loss on extinguishment of debt | — | — | (21,202 | ) | |||||||
Other income (expense), net | 110 | (350 | ) | (479 | ) | ||||||
Earnings (loss) before income taxes | (672,071 | ) | 29,774 | 36,231 | |||||||
Income tax expense (benefit) | (36 | ) | (315 | ) | 2,516 | ||||||
Net earnings (loss) | (672,035 | ) | 30,089 | 33,715 | |||||||
Net earnings (loss) attributable to noncontrolling interest | (6,620 | ) | 469 | 504 | |||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (665,415 | ) | 29,620 | 33,211 | |||||||
Less: General partner's interest in net earnings (loss) | (6,654 | ) | 296 | 332 | |||||||
Common unitholders' interest in net earnings (loss) | $ | (658,761 | ) | $ | 29,324 | $ | 32,879 |
(amounts in thousands) | ||||||||||||
Fiscal year ended July 31 | 2016 | 2015 | 2014 | |||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | $ | (665,415 | ) | $ | 29,620 | $ | 33,211 | |||||
Income tax expense (benefit) | (36 | ) | (315 | ) | 2,516 | |||||||
Interest expense | 137,937 | 100,396 | 86,502 | |||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | |||||||||
EBITDA | (377,001 | ) | 228,280 | 206,431 | ||||||||
Loss on extinguishment of debt | — | — | 21,202 | |||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | |||||||||
Non-cash stock based compensation charge | 9,324 | 25,982 | 24,508 | |||||||||
Asset impairments | 658,118 | — | — | |||||||||
Loss on asset sales and disposal | 30,835 | 7,099 | 6,486 | |||||||||
Other income (expense), net | (110 | ) | 350 | 479 | ||||||||
Change in fair value of contingent consideration (included in operating expense) | (100 | ) | (6,300 | ) | 5,000 | |||||||
Severance costs | 1,453 | — | — | |||||||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 806 | 1,749 | |||||||||
Unrealized (non-cash) losses on changes in fair value of derivatives | 1,137 | 2,412 | — | |||||||||
Acquisition and transition expenses | 99 | 16,373 | — | |||||||||
Net earnings (loss) attributable to noncontrolling interest | (6,620 | ) | 469 | 504 | ||||||||
Adjusted EBITDA | 344,730 | 300,184 | 288,148 | |||||||||
Net cash interest expense (a) | (132,860 | ) | (96,150 | ) | (83,686 | ) | ||||||
Maintenance capital expenditures (b) | (17,137 | ) | (19,612 | ) | (17,673 | ) | ||||||
Cash paid for taxes | (777 | ) | (712 | ) | (816 | ) | ||||||
Proceeds from asset sales | 6,023 | 5,905 | 4,524 | |||||||||
Distributable cash flow to equity investors | 199,979 | 189,615 | 190,497 | |||||||||
Distributable cash flow attributable to general partner and non-controlling interest | (4,000 | ) | (3,792 | ) | (3,810 | ) | ||||||
Distributable cash flow attributable to common unitholders | 195,979 | 185,823 | 186,687 | |||||||||
Distributions paid to common unitholders | (202,119 | ) | (165,433 | ) | (159,316 | ) | ||||||
Distributable cash flow excess/(shortage) | $ | (6,140 | ) | $ | 20,390 | $ | 27,371 |
(a) | Net cash interest expense is the sum of interest expense less non-cash interest expense and other income (expense), net. This amount includes interest expense related to the accounts receivable securitization facility. |
(b) | Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment. |
(amounts in thousands) | |||||||||||||
Favorable | |||||||||||||
Fiscal year ended July 31, | 2016 | 2015 | (Unfavorable) Variance | ||||||||||
Propane sales volumes (gallons): | |||||||||||||
Retail - Sales to End Users | 552,771 | 608,781 | (56,010 | ) | (9 | )% | |||||||
Wholesale - Sales to Resellers | 226,121 | 270,065 | (43,944 | ) | (16 | )% | |||||||
778,892 | 878,846 | (99,954 | ) | (11 | )% | ||||||||
Revenues - | |||||||||||||
Propane and other gas liquids sales: | |||||||||||||
Retail - Sales to End Users | $ | 777,830 | $ | 1,071,754 | $ | (293,924 | ) | (27 | )% | ||||
Wholesale - Sales to Resellers | 375,845 | 478,247 | (102,402 | ) | (21 | )% | |||||||
Other Gas Sales (a) | 48,693 | 107,015 | (58,322 | ) | (54 | )% | |||||||
Other (b) | 211,761 | 260,185 | (48,424 | ) | (19 | )% | |||||||
Propane and related equipment revenues | $ | 1,414,129 | $ | 1,917,201 | $ | (503,072 | ) | (26 | )% | ||||
Gross Margin - | |||||||||||||
Propane and other gas liquids sales: (c) | |||||||||||||
Retail - Sales to End Users (a) | $ | 448,255 | $ | 493,407 | $ | (45,152 | ) | (9 | )% | ||||
Wholesale - Sales to Resellers (a) | 189,680 | 186,385 | 3,295 | 2 | % | ||||||||
Other (b) | 85,524 | 89,488 | (3,964 | ) | (4 | )% | |||||||
Propane and related equipment gross margin | 723,459 | 769,280 | $ | (45,821 | ) | (6 | )% | ||||||
Operating expense | 414,103 | 423,129 | 9,026 | 2 | % | ||||||||
Equipment lease expense | 25,481 | 22,766 | (2,715 | ) | (12 | )% | |||||||
Operating income | 204,910 | 239,263 | (34,353 | ) | (14 | )% | |||||||
Depreciation and amortization expense | 69,785 | 76,217 | 6,432 | 8 | % | ||||||||
Loss on asset sales and disposals | 9,180 | 7,099 | (2,081 | ) | (29 | )% | |||||||
Severance costs | 1,287 | — | (1,287 | ) | NM | ||||||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 806 | 806 | NM | |||||||||
Unrealized (non-cash) losses on changes in fair value of derivatives | 1,585 | 2,412 | 827 | 34 | % | ||||||||
Adjusted EBITDA | $ | 286,747 | $ | 325,797 | $ | (39,050 | ) | (12 | )% |
(amounts in thousands) | Favorable | ||||||||||
(Unfavorable) | |||||||||||
Fiscal year ended July 31, | 2016 | 2015 | Variance | ||||||||
Volumes (barrels): | |||||||||||
Crude oil hauled | 79,411 | 10,447 | 68,964 | ||||||||
Crude oil sold | 6,757 | 496 | 6,261 | ||||||||
Revenues - | |||||||||||
Crude oil logistics revenues | $ | 332,332 | $ | 49,648 | $ | 282,684 | |||||
Crude oil sales | 279,226 | 31,864 | 247,362 | ||||||||
Gross Margin (a) | 146,989 | 13,737 | 133,252 | ||||||||
Operating, general and administrative expense (b) | 37,934 | 5,151 | (32,783 | ) | |||||||
Equipment lease expense | 397 | 3 | (394 | ) | |||||||
Operating income (loss) | (597,980 | ) | 3,848 | (601,828 | ) | ||||||
Depreciation and amortization expense | 57,001 | 4,735 | (52,266 | ) | |||||||
Asset impairments | 628,802 | — | (628,802 | ) | |||||||
Loss on asset sales and disposals | 20,835 | — | (20,835 | ) | |||||||
Severance costs | 91 | — | (91 | ) | |||||||
Unrealized (non-cash) losses on changes in fair value of derivatives | (448 | ) | — | 448 | |||||||
Adjusted EBITDA | $ | 108,301 | $ | 8,583 | $ | 99,718 |
(amounts in thousands) | Favorable | ||||||||||||
Fiscal year ended | 2016 | 2015 | (Unfavorable) Variance | ||||||||||
Revenues (a) | $ | 13,680 | $ | 25,677 | $ | (11,997 | ) | (47 | )% | ||||
Gross margin (a) (b) | 7,015 | 16,862 | (9,847 | ) | (58 | )% | |||||||
Operating expense | 11,389 | 4,986 | (6,403 | ) | (128 | )% | |||||||
General and administrative expense | 43,063 | 54,641 | 11,578 | 21 | % | ||||||||
Equipment lease expense | 2,955 | 1,504 | (1,451 | ) | (96 | )% | |||||||
Operating loss | (141,174 | ) | (112,591 | ) | (28,583 | ) | (25 | )% | |||||
Depreciation and amortization expense | 23,727 | 17,627 | (6,100 | ) | (35 | )% | |||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | (2,882 | ) | (12 | )% | |||||||
Non-cash stock based compensation charge | 9,324 | 25,982 | 16,658 | 64 | % | ||||||||
Asset impairments | 29,316 | — | (29,316 | ) | NM | ||||||||
Loss on asset sales and disposals | 820 | — | (820 | ) | NM | ||||||||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | (6,200 | ) | NM | ||||||
Severance costs | 75 | — | (75 | ) | NM | ||||||||
Acquisition and transition expenses | 99 | 16,373 | 16,274 | NM | |||||||||
Adjusted EBITDA | $ | (50,318 | ) | $ | (34,196 | ) | $ | (16,122 | ) | (47 | )% |
(amounts in thousands) | |||||||||||||
Favorable | |||||||||||||
Fiscal year ended July 31, | 2015 | 2014 | (Unfavorable) Variance | ||||||||||
Propane sales volumes (gallons): | |||||||||||||
Retail - Sales to End Users | 608,781 | 651,358 | (42,577 | ) | (7 | )% | |||||||
Wholesale - Sales to Resellers | 270,065 | 295,212 | (25,147 | ) | (9 | )% | |||||||
878,846 | 946,570 | (67,724 | ) | (7 | )% | ||||||||
Revenues - | |||||||||||||
Propane and other gas liquids sales: | |||||||||||||
Retail - Sales to End Users | $ | 1,071,754 | $ | 1,392,526 | $ | (320,772 | ) | (23 | )% | ||||
Wholesale - Sales to Resellers | 478,247 | 619,710 | (141,463 | ) | (23 | )% | |||||||
Other Gas Sales (a) | 107,015 | 135,107 | (28,092 | ) | (21 | )% | |||||||
Other (b) | 260,185 | 251,082 | 9,103 | 4 | % | ||||||||
Propane and related equipment revenues | 1,917,201 | $ | 2,398,425 | $ | (481,224 | ) | (20 | )% | |||||
Gross Margin - | |||||||||||||
Propane and other gas liquids sales: (c) | |||||||||||||
Retail - Sales to End Users (a) | 493,407 | 497,508 | (4,101 | ) | (1 | )% | |||||||
Wholesale - Sales to Resellers (a) | 186,385 | 193,447 | (7,062 | ) | (4 | )% | |||||||
Other (b) | 89,488 | 94,900 | (5,412 | ) | (6 | )% | |||||||
Propane and related equipment gross margin | 769,280 | 785,855 | $ | (16,575 | ) | (2 | )% | ||||||
Operating expense | 423,129 | 439,166 | 16,037 | 4 | % | ||||||||
Equipment lease expense | 22,766 | 15,397 | (7,369 | ) | (48 | )% | |||||||
Operating income | 239,263 | 242,741 | (3,478 | ) | (1 | )% | |||||||
Depreciation and amortization expense | 76,217 | 80,413 | 4,196 | 5 | % | ||||||||
Loss on asset sales and disposals | 7,099 | 6,486 | (613 | ) | (9 | )% | |||||||
Severance costs | — | — | — | NM | |||||||||
Litigation accrual and related legal fees associated with a class action lawsuit | 806 | 1,652 | 846 | NM | |||||||||
Unrealized (non-cash) losses on changes in fair value of derivatives | 2,412 | — | (2,412 | ) | NM | ||||||||
Adjusted EBITDA | $ | 325,797 | $ | 331,292 | $ | (5,495 | ) | (2 | )% |
(amounts in thousands) | Favorable | ||||||||||
(Unfavorable) | |||||||||||
Fiscal year ended July 31, | 2015 | 2014 | Variance | ||||||||
Volumes (barrels): | |||||||||||
Crude oil hauled | 10,447 | — | 10,447 | ||||||||
Crude oil sold | 496 | — | 496 | ||||||||
Revenues - | |||||||||||
Crude oil logistics revenues | $ | 49,648 | $ | — | $ | 49,648 | |||||
Crude oil sales | 31,864 | — | 31,864 | ||||||||
Gross Margin (a) | 13,737 | — | 13,737 | ||||||||
Operating, general and administrative expense | 5,151 | — | (5,151 | ) | |||||||
Equipment lease expense | 3 | — | (3 | ) | |||||||
Operating income | 3,848 | — | 3,848 | ||||||||
Depreciation and amortization expense | 4,735 | — | (4,735 | ) | |||||||
Adjusted EBITDA | $ | 8,583 | $ | — | $ | 8,583 |
(amounts in thousands) | Favorable | ||||||||||||
Fiscal year ended | 2015 | 2014 | (Unfavorable) Variance | ||||||||||
Revenues | $ | 25,677 | $ | 7,435 | $ | 18,242 | NM | ||||||
Gross margin (a) | 16,862 | 5,465 | 11,397 | NM | |||||||||
Operating expense | 4,986 | 7,027 | 2,041 | 29 | % | ||||||||
General and administrative expense | 54,641 | 44,331 | (10,310 | ) | (23 | )% | |||||||
Equipment lease expense | 1,504 | 2,348 | 844 | 36 | % | ||||||||
Operating loss | (112,591 | ) | (98,327 | ) | (14,264 | ) | (15 | )% | |||||
Depreciation and amortization expense | 17,627 | 3,789 | (13,838 | ) | NM | ||||||||
Non-cash employee stock ownership plan compensation charge | 24,713 | 21,789 | (2,924 | ) | (13 | )% | |||||||
Non-cash stock based compensation charge | 25,982 | 24,508 | (1,474 | ) | (6 | )% | |||||||
Change in fair value of contingent consideration | (6,300 | ) | 5,000 | 11,300 | NM | ||||||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 97 | 97 | NM | |||||||||
Acquisition and transition expenses | 16,373 | — | (16,373 | ) | NM | ||||||||
Adjusted EBITDA | $ | (34,196 | ) | $ | (43,144 | ) | $ | 8,948 | 21 | % |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Distributable Cash Flow to equity investors | Cash reserves (deficiency) approved by our General Partner | Cash distributions paid to equity investors | DCF ratio | ||||||||
Year ended July 31, 2016 | $ | 199,979 | $ | (6,427 | ) | $ | 206,406 | 0.97 | |||
Year ended July 31, 2015 | 189,615 | 20,646 | 168,969 | 1.12 | |||||||
Increase (decrease) | $ | 10,364 | $ | (27,073 | ) | $ | 37,437 | (0.15 | ) |
• | significantly warmer than normal temperatures during the winter heating season; |
• | a more volatile energy commodity cost environment; |
• | an unexpected downturn in business operations; |
• | a significant delay in the collections of accounts or notes receivable; |
• | 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. |
• | a shelf registration statement for the periodic sale of common units for general business purposes, which among other things, may include the following: repayment of outstanding indebtedness; the redemption of any senior notes or other securities (other than common units) previously issued; working capital; capital expenditures; acquisitions, or other general business purposes. As of August 31, 2016, Ferrellgas Partners has issued 6.3 million common units from this shelf registration statement; and |
• | an “acquisition” shelf registration statement for the periodic sale of up to $500.0 million in common units to fund acquisitions; as of August 31, 2016, Ferrellgas Partners had $500.0 million available under this shelf registration statement. |
• | Maintenance capital expenditures. These capital expenditures include expenditures for betterment and replacement of property, plant and equipment rather than to generate incremental distributable cash flow. Examples of maintenance capital expenditures include a routine replacement of a worn-out asset or replacement of major vehicle components; and |
• | Growth capital expenditures. These expenditures are undertaken primarily to generate incremental distributable cash flow. Examples include expenditures for purchases of both bulk and portable propane tanks and other equipment to facilitate expansion of our customer base and operating capacity. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
• | 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%. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
• | a significant increase in the wholesale cost of propane; |
• | a significant reduction in the production of crude oil; |
• | a significant delay in the collections of accounts or notes receivable; |
• | increased volatility in energy commodity prices related to risk management activities; |
• | increased liquidity requirements imposed by insurance providers; |
• | a significant downgrade in our credit rating leading to decreased trade credit; |
• | a significant acquisition; or |
• | a large uninsured unfavorable lawsuit settlement. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Common unit ownership at | Distributions paid during the year ended (in thousands) | ||||||
July 31, 2016 | July 31, 2016 | ||||||
Ferrell Companies (1) | 22,529,361 | $ | 46,184 | ||||
FCI Trading Corp. (2) | 195,686 | 400 | |||||
Ferrell Propane, Inc. (3) | 51,204 | 104 | |||||
James E. Ferrell (4) (6) | 4,763,475 | 9,764 | |||||
James H. Ballengee (5) (6) | 4,771,447 | 13,449 |
(1) | Ferrell Companies is the sole shareholder of our general partner. During September 2014, we completed a non-brokered registered direct offering to Ferrell Companies of 1.1 million common units. Net proceeds of approximately $30.0 million were used to reduce outstanding indebtedness under our secured credit facility. |
(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 Interim Chief Executive Officer and President of our general partner; and is the Chairman of the Board of Directors of our general partner. JEF Capital Management owns 4,758,859 of these common units and is wholly-owned by the James E. Ferrell Revocable Trust Two for which James E. Ferrell is the trustee and sole beneficiary. The remaining 4,616 common units are held by Ferrell Resources Holdings, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary. |
(5) | James H. Ballengee is the owner of Jamex Marketing, LLC, which is the record holder of these units. Prior to April 30, 2016, Jamex Marketing, LLC owned more than 5% of the outstanding common units. As of July 31, 2016, Jamex Marketing, LLC owned less than 5% of the outstanding common units. Refer to above discussion in this Item 7. "Management's Discussion & Analysis" for a description of a group of agreements executed with Jamex on September 1, 2016, including the purchase by Ferrellgas Partners of 0.9 million of Ferrellgas Partners' common units for approximately $16.9 million, as well as a description of the restrictions on the remaining Ferrellgas Partners common units owned by Jamex, and any cash distributions and proceeds received by Jamex in respect thereof. |
(6) | Beneficially owned limited partner units are based on the most recent Schedule 13G, Schedule 13D or Section 16 SEC filing, or information provided by the beneficial owner. |
Payment or settlement due by fiscal year | ||||||||||||||||||||||||||||
(in thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | |||||||||||||||||||||
Long-term debt, including current portion (1) | $ | 3,921 | $ | 2,379 | $ | 294,914 | $ | 182,960 | $ | 500,810 | $ | 975,175 | $ | 1,960,159 | ||||||||||||||
Fixed rate interest obligations (2) | 114,010 | 114,010 | 114,010 | 114,010 | 98,313 | 83,531 | 637,884 | |||||||||||||||||||||
Operating lease obligations (3) | 54,842 | 36,789 | 28,260 | 21,603 | 16,689 | 21,471 | 179,654 | |||||||||||||||||||||
Operating lease buyouts (4) | 3,197 | 3,444 | 3,521 | 2,693 | 3,326 | 9,818 | 25,999 | |||||||||||||||||||||
Purchase obligations: (5) | ||||||||||||||||||||||||||||
Product purchase commitments: (6) | ||||||||||||||||||||||||||||
Estimated payment obligations | 57,664 | 13,658 | 4,648 | — | — | — | 75,970 | |||||||||||||||||||||
Total | $ | 233,634 | $ | 170,280 | $ | 445,353 | $ | 321,266 | $ | 619,138 | $ | 1,089,995 | $ | 2,879,666 | ||||||||||||||
Underlying product purchase volume commitments (in gallons) | 121,535 | 27,825 | 9,030 | — | — | — | 158,390 |
(1) | We have long and short-term payment obligations under agreements such as our senior notes and our secured 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, not including the effect of interest rate swaps. These amounts do not include interest on the long-term portion of our secured credit facility, a variable rate debt obligation. As of July 31, 2016, variable rate interest on our outstanding balance of long-term variable rate debt of $293.1 million would be $9.4 million on an annual basis, not including the effect of interest rate swaps. Actual variable rate interest amounts will differ due to changes in interest rates and actual seasonal borrowings under our secured credit facility. |
(3) | We lease certain property, plant and equipment under noncancelable and cancelable operating leases. Amounts shown in the table represent minimum lease payment obligations under our third-party operating leases for the periods indicated. |
(4) | Operating lease buyouts represent the maximum amount we would pay if we were to exercise our right to buyout the assets at the end of their lease term. Historically, we have been successful in renewing certain leases that are subject to buyouts. However, there is no assurance we will be successful in the future. |
(5) | We define a purchase obligation as an agreement to purchase goods or services that is enforceable and legally binding (unconditional) on us that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transactions. |
(6) | We have long and short-term product purchase obligations for propane and energy commodities with third-party suppliers. These purchase obligations are entered into at either variable or fixed prices. The purchase prices that we are obligated to pay under variable price contracts approximate market prices at the time we take delivery of the volumes. Our estimated future variable price contract payment obligations are based on the July 31, 2016 market price of the applicable commodity applied to future volume commitments. Actual future payment obligations may vary depending on market prices at the time of delivery. The purchase prices that we are obligated to pay under fixed price contracts are established at the inception of the contract. Our estimated future fixed price contract payment obligations are based on the contracted fixed price under each commodity contract. Quantities shown in the table represent our volume commitments and estimated payment obligations under these contracts for the periods indicated. |
Payment or settlement due by fiscal year | ||||||||||||||||||||||||||||
(in thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | |||||||||||||||||||||
Long-term debt, including current portion (1) | $ | 3,921 | $ | 2,379 | $ | 294,914 | $ | 960 | $ | 500,810 | $ | 975,175 | $ | 1,778,159 | ||||||||||||||
Fixed rate interest obligations (2) | $ | 98,313 | $ | 98,313 | $ | 98,313 | $ | 98,312 | $ | 98,312 | $ | 83,531 | $ | 575,094 |
(1) | The operating partnership has long and short-term payment obligations under agreements such as the operating partnership’s senior notes and secured 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 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, not including the effect of interest rate swaps. These amounts do not include interest on the long-term portion of our secured credit facility, a variable rate debt obligation. As of July 31, 2016, variable rate interest on our outstanding balance of long-term variable rate debt of $293.1 million would be $9.4 million on an annual basis, not including the effect of interest rate swaps. Actual variable rate interest amounts will differ due to changes in interest rates and actual seasonal borrowings under our secured credit facility. |
• | made guarantees; |
• | an obligation under derivative instruments classified as equity; or |
• | any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the company, or that engages in leasing, hedging or research and development arrangements with the company. |
Title of Guidance | Effective Date | |
Accounting Standard Update No. 2014-09 "Revenue from Contracts with Customers" | Fiscal years, and interim reporting periods within those years, beginning after December 15, 2017 | |
Accounting Standard Update No. 2015-02, "Consolidation: Amendments to the Consolidation Analysis" | Fiscal years, and interim reporting periods within those years, beginning after December 15, 2015 | |
Accounting Standard Update No. 2015-06, "Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments" | Fiscal years, and interim reporting periods within those years, beginning after December 15, 2015 | |
Accounting Standard Update No. 2015-11, "Inventory (Topic 330) - Simplifying the Measurement of Inventory" | Fiscal years, and interim reporting periods within those years, beginning after December 15, 2016 | |
Accounting Standard Update No. 2016-02, "Leases (Topic 842)" | Fiscal years, and interim reporting periods within those years, beginning after December 15, 2018 | |
Accounting Standard Update No. 2016-13, "Financial Instruments - Credit Losses (Topic 326)" | Fiscal years, and interim reporting periods within those years, beginning after December 15, 2019 |
• | Our stock-based awards plans grant awards out of Ferrell Companies. Ferrell Companies is not a publicly-traded company and management does not believe it can be categorized within any certain industry group. As a result, our volatility computation is highly subjective. If a different volatility factor were used, it could significantly change the fair value assigned to stock-based awards at each balance sheet date. |
• | Management believes we have three groups of employees that participate in our stock-based compensation plans. If a determination were made that we have a different number of groups of employees, that determination could significantly change the expected term and forfeiture rate assigned to our stock and unit-based awards. |
• | Our method for computing the expected term of our stock-based awards utilizes a combination of historical exercise patterns and estimates made by management on grantee exercises patterns. This method could assign a term to our stock-based awards that is significantly different from their actual terms, which could result in a significant difference in the fair value assigned to the awards at each balance sheet date. |
• | Our method for computing the expected forfeiture rates of our stock-based awards utilizes a combination of historical forfeiture patterns and estimates made by management on forfeiture patterns. If actual forfeiture rates were to differ significantly from our estimates, it could result in significant differences between actual and reported compensation expense for our stock-based awards. |
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 | $175,000 and decreasing to $100,000 in August 2017 | Pay a fixed rate of 1.95% and receive a floating rate |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
Name | Age | Director Since | Executive Officer Since | Position | |||||
James E. Ferrell | 76 | 1984 | 2016 | Interim Chief Executive Officer and President; Chairman of the Board of Directors | |||||
Alan C. Heitmann | 58 | N/A | 2015 | Executive Vice President and Chief Financial Officer; Treasurer | |||||
Tod D. Brown | 53 | N/A | 2006 | Executive Vice President, Ferrellgas, Inc. and Chief Executive Officer, Blue Rhino | |||||
Thomas M. Van Buren | 43 | N/A | 2015 | Executive Vice President, Ferrell North America and Midstream | |||||
Julio E. Rios II | 45 | N/A | 2015 | Executive Vice President, Ferrellgas, Inc. and President and Chief Executive Officer, Bridger Logistics, LLC | |||||
Jeremy H. Gamboa | 40 | N/A | 2015 | Executive Vice President, Ferrellgas, Inc. and Chief Operating Officer, Bridger Logistics, LLC | |||||
Pamela A. Breuckmann | 40 | 2013 | N/A | Director | |||||
A. Andrew Levison | 60 | 1994 | N/A | Director | |||||
John R. Lowden | 59 | 2003 | N/A | Director | |||||
Michael F. Morrissey | 74 | 1999 | N/A | Director | |||||
David L. Starling | 67 | 2014 | N/A | Director | |||||
Stephen M. Clifford | 56 | 2015 | N/A | Director |
• | distributions on its combined approximate 2% general partner interest in Ferrellgas Partners and the operating partnership; and |
• | reimbursement for: |
• | all direct and indirect costs and expenses incurred on our behalf; |
• | all selling, general and administrative expenses incurred by our general partner on our behalf; and |
• | all other expenses necessary or appropriate to the conduct of our business and allocable to us. |
Named Executive Officers |
Stephen L. Wambold, Chief Executive Officer and President (1) |
Alan C. Heitmann, Executive Vice President and Chief Financial Officer, Treasurer |
Thomas M. Van Buren, Executive Vice President, Ferrell North America and Midstream |
Julio E. Rios II, Executive Vice President, Ferrellgas and Chief Executive Officer Bridger Logistics, LLC |
Jeremy H. Gamboa, Executive Vice President, Ferrellgas and Chief Operating Officer Bridger Logistics, LLC |
• | companies in our industry or related industries (oil and gas, gas utilities, master limited partnerships); |
• | companies identified as our peer group of competitors; |
• | companies with similar total sales; |
• | companies with similar net income; and |
• | companies with similar market value. |
• | Targa Resources Partners, L.P. |
• | Suburban Propane Partners, L.P. |
• | Enbridge Energy Partners, L.P. |
• | Laclede Group Inc. |
• | Genesis Energy, L.P. |
• | WGL Holdings Inc. |
• | UGI Corp. |
• | Star Gas Partners, L.P. |
• | Atmos Energy Corp., L.P. |
• | New Jersey Resources Corp. |
• | Amerigas Partners, L.P. |
• | Alliance Resource Partners, L.P. |
• | Copano Energy LLC |
• | base salary; |
• | non-equity incentive plan; |
• | discretionary bonus; |
• | equity-based and incentive compensation plans; |
• | employee stock ownership plan ("ESOP"); |
• | deferred compensation plans; and |
• | employment and change-in-control agreements. |
Low Point | High Point | |||||||
Chief Executive Officer | $ | 431,000 | $ | 736,000 | ||||
Chief Operating Officer | 362,000 | 512,000 | ||||||
Chief Financial Officer | 287,000 | 369,000 | ||||||
Top Division Executive | 303,000 | 363,000 |
Named Executive Officer | 2016 Annual Base Salary (1) | ||
Stephen L. Wambold (2) | $ | 700,000 | |
Alan C. Heitmann (3) | 375,000 | ||
Thomas M. Van Buren | 335,000 | ||
Julio E. Rios II | 500,000 | ||
Jeremy H. Gamboa | 400,000 |
Named Executive Officer | % of Salary Incentive Target | |
Stephen L. Wambold (1) | 100 | % |
Alan C. Heitmann | 100 | % |
Thomas M. Van Buren | 100 | % |
Julio E. Rios II | 100 | % |
Jeremy H. Gamboa | 100 | % |
Percent of Planned Incentive DCF Achieved | Incentive Target Potential |
100% | 100% |
105% | 125% |
110% and above | 150% |
(in thousands) | |||
Net loss attributable to Ferrellgas Partners, L.P. | $ | (665,415 | ) |
Add (subtract): | |||
Income tax benefit | (36 | ) | |
Interest expense | 137,937 | ||
Depreciation and amortization expense | 150,513 | ||
Asset impairments | 658,118 | ||
Non-cash employee stock ownership plan compensation charge | 27,595 | ||
Non-cash stock-based compensation charge | 9,324 | ||
Loss on asset sales and disposal | 30,835 | ||
Other income, net | (110 | ) | |
Change in fair value of contingent consideration | (100 | ) | |
Severance | 1,453 | ||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments | 1,137 | ||
Acquisition and transition expenses | 99 | ||
Net loss attributable to noncontrolling interest | (6,620 | ) | |
Maintenance capital expenditures | (17,137 | ) | |
Incentive DCF | $ | 327,593 |
Number of Completed Years of Service | Vested Percent |
Less than 3 years | —% |
3 years | 20% |
4 years | 40% |
5 years | 60% |
6 years | 80% |
7 years or more | 100% |
Salary | Bonus | Option Awards | Non-Equity Incentive Plan Compensation | All Other Compensation | Total | |||||||||
(1) | (3) | |||||||||||||
Name and Principal Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | |||||||
Stephen L. Wambold (2) | 2016 | 700,000 | — | 632,566 | — | 29,180 | 1,361,746 | |||||||
Chief Executive Officer and President | 2015 | 700,000 | — | 1,778,450 | — | 28,498 | 2,506,948 | |||||||
2014 | 700,000 | 300,000 | 1,998,240 | 875,000 | 27,989 | 3,901,229 | ||||||||
Alan C. Heitmann | 2016 | 375,000 | — | 651,388 | — | 30,531 | 1,056,919 | |||||||
Executive Vice President and Chief Financial Officer; Treasurer | 2015 | 298,593 | 250,000 | 671,820 | — | 33,230 | 1,253,643 | |||||||
Thomas M. Van Buren | 2016 | 335,000 | — | 277,095 | — | 334,005 | 946,100 | |||||||
Executive Vice President, Ferrell North America and Midstream | 2015 | 303,793 | — | 785,034 | — | 56,451 | 1,145,278 | |||||||
Julio E. Rios II | 2016 | 500,000 | — | 932,000 | — | 16,629 | 1,448,629 | |||||||
Executive Vice President, Ferrellgas and Chief Executive Officer, Bridger Logistics LLC | ||||||||||||||
Jeremy H. Gamboa | 2016 | 400,000 | — | 932,000 | — | 15,302 | 1,347,302 | |||||||
Executive Vice President, Ferrellgas and Chief Operating Officer, Bridger Logistics LLC |
(1) | See Note B – Summary of significant accounting policies (16) Stock-based plans – to our consolidated financial statements for information concerning these awards. The value reported represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718 Compensation - Stock Compensation. |
(2) | On September 27, 2016, Mr. Wambold resigned as Chief Executive Officer, President and Director of Ferrellgas, Inc. |
(3) | All Other Compensation consisted of the following: |
ESOP Allocations | 401(k) Plan Match | SSP Match | Other | Total All Other Compensation | ||||||||
Name | Year | ($) | ($) | ($) | ($) | ($) | ||||||
Stephen L. Wambold (4) | 2016 | 18,553 | 5,254 | 5,373 | — | 29,180 | ||||||
2015 | 16,890 | 6,702 | 4,906 | — | 28,498 | |||||||
2014 | 16,324 | 3,535 | 8,130 | — | 27,989 | |||||||
Alan C. Heitmann | 2016 | 18,553 | 1,969 | 10,009 | — | 30,531 | ||||||
2015 | 16,890 | 11,336 | 5,004 | — | 33,230 | |||||||
Thomas M. Van Buren | 2016 | 18,553 | 5,707 | 6,820 | 302,925 | (5) | 334,005 | |||||
2015 | 16,890 | 6,261 | 5,164 | 28,136 | (6) | 56,451 | ||||||
Julio E. Rios II | 2016 | 9,994 | 6,635 | — | — | 16,629 | ||||||
Jeremy H. Gamboa | 2016 | 9,994 | 5,308 | — | — | 15,302 | ||||||
(4) | On September 27, 2016, Mr. Wambold resigned as Chief Executive Officer, President and Director of Ferrellgas, Inc. |
(5) | This amount primarily includes $296,250 for relocation costs and $3,653 for payment of personal financial, tax or legal advice. |
(6) | This amount primarily includes $22,472 for relocation costs and $5,204 for payment of personal financial, tax or legal advice. |
All Other Option Awards: Number of Securities Underlying Options | Exercise or Base Price of Option Awards | Grant Date Fair Value of Award | ||||||
Name | Grant Date | (#) | ($/Share) | ($) | ||||
Stephen L. Wambold (4) | (2 | ) | 10/31/2015 | 88,004 | 31.45 | 176,008 | ||
(3 | ) | 10/31/2015 | 181,174 | 31.45 | 456,558 | |||
Alan C. Heitmann | (1 | ) | 10/31/2015 | 250,000 | 31.45 | 242,500 | ||
(1 | ) | 7/31/2016 | 180,000 | 27.40 | 228,600 | |||
(3 | ) | 7/31/2016 | 62,600 | 27.40 | 180,288 | |||
Thomas M. Van Buren | (1 | ) | 10/31/2015 | 250,000 | 31.45 | 242,500 | ||
(3 | ) | 10/31/2015 | 13,728 | 31.45 | 34,595 | |||
Julio E. Rios II | (2 | ) | 6/17/2016 | 400,000 | 27.40 | 932,000 | ||
Jeremy H. Gamboa | (2 | ) | 6/17/2016 | 400,000 | 27.40 | 932,000 | ||
(1) | Grant vested immediately and expires in ten years. |
(2) | Grant vests ratably over three years and expires in ten years. |
(3) | Grant vests ratably over five years and expires in ten years. |
(4) | On September 27, 2016, Mr. Wambold resigned as Chief Executive Officer, President and Director of Ferrellgas, Inc. |
Ferrell Companies Incentive Compensation Plan | ||||||||
Option Awards | ||||||||
Number of Securities Underlying Unexercised Options | Number of Securities Underlying Unexercised Options | Option Exercise Price | Option | |||||
Name | (#) Exercisable | (#) Unexercisable | ($) | Expiration Date | ||||
Stephen L. Wambold (22) | 7,875 | — | (3) | 11.78 | 5/1/2019 | |||
37,275 | — | (4) | 23.95 | 7/19/2021 | ||||
— | 57,760 | (6) | 22.14 | 10/1/2021 | ||||
— | 30,320 | (7) | 22.14 | 10/31/2021 | ||||
120 | 120 | (9) | 22.14 | 1/31/2022 | ||||
— | 44,480 | (11) | 21.92 | 10/31/2022 | ||||
100 | 200 | (12) | 21.92 | 1/31/2023 | ||||
1 | 90,671 | (8) | 24.65 | 10/31/2023 | ||||
— | 212,562 | (14) | 24.65 | 10/31/2023 | ||||
14,376 | 14,810 | (10) | 28.70 | 4/30/2024 | ||||
144 | 432 | (15) | 28.70 | 4/30/2024 | ||||
446,250 | — | (1) | 31.65 | 10/31/2024 | ||||
43,852 | 89,032 | (11) | 31.65 | 10/31/2024 | ||||
56,930 | 227,719 | (17) | 31.65 | 10/31/2024 | ||||
19,554 | 39,700 | (13) | 31.15 | 4/30/2025 | ||||
223 | 891 | (18) | 31.15 | 4/30/2025 | ||||
20,815 | 83,260 | (19) | 31.15 | 7/31/2025 | ||||
— | 88,004 | (14) | 31.45 | 10/31/2025 | ||||
— | 181,174 | (20) | 31.45 | 10/31/2025 | ||||
Alan C. Heitmann | 1,975 | — | (4) | 23.95 | 7/19/2021 | |||
— | 1,200 | (6) | 22.14 | 10/1/2021 | ||||
— | 2,725 | (9) | 22.14 | 1/31/2022 | ||||
101,500 | — | (1) | 31.65 | 10/31/2024 | ||||
250,000 | — | (2) | 31.45 | 10/31/2025 | ||||
180,000 | — | (5) | 27.40 | 7/31/2026 | ||||
— | 62,600 | (21) | 27.40 | 7/31/2026 | ||||
Thomas M. Van Buren | — | 1,200 | (6) | 22.14 | 10/1/2021 | |||
— | 5,120 | (7) | 22.14 | 10/31/2021 | ||||
— | 19,224 | (14) | 24.65 | 10/31/2023 | ||||
75,000 | — | (1) | 31.65 | 10/31/2024 | ||||
7,400 | 29,600 | (17) | 31.65 | 10/31/2024 | ||||
3,746 | 14,982 | (17) | 31.65 | 10/31/2024 | ||||
250,000 | — | (2) | 31.45 | 10/31/2025 | ||||
— | 13,728 | (20) | 31.45 | 10/31/2025 | ||||
Julio E. Rios II | — | 400,000 | (16) | 27.40 | 6/17/2026 | |||
Jeremy H. Gamboa | — | 400,000 | (16) | 27.40 | 6/17/2026 |
(1) | These options were fully vested on 10/31/2014. |
(2) | These options were fully vested on 10/31/2015. |
(3) | These options were fully vested on 4/28/2016. |
(4) | These options were fully vested on 7/17/2016. |
(5) | These options were fully vested on 7/31/2016. |
(6) | These options will be fully vested on 9/29/2016. |
(7) | These options will be fully vested on 10/29/2016. |
(8) | These options will be fully vested on 10/30/2016. |
(9) | These options will be fully vested on 1/29/2017. |
(10) | These options will be fully vested on 4/29/2017. |
(11) | These options will be fully vested on 10/30/2017. |
(12) | These options will be fully vested on 1/30/2018. |
(13) | These options will be fully vested on 4/29/2018. |
(14) | These options will be fully vested on 10/30/2018. |
(15) | These options will be fully vested on 4/29/2019. |
(16) | These options will be fully vested on 6/17/2019. |
(17) | These options will be fully vested on 10/30/2019. |
(18) | These options will be fully vested on 4/28/2020. |
(19) | These options will be fully vested on 7/29/2020. |
(20) | These options will be fully vested on 10/29/2020. |
(21) | These options will be fully vested on 7/30/2021. |
(22) | On September 27, 2016, Mr. Wambold resigned as Chief Executive Officer, President and Director of Ferrellgas, Inc. |
Ferrell Companies Incentive Compensation Plan | ||||
Option Awards | ||||
Number of Equity Based Awards Exercised | Value Realized on Exercise | |||
Name | (#) | ($) | ||
Steven L. Wambold (1) | 269,178 | 2,112,206 | ||
Alan C. Heitmann | 312,600 | 798,227 | ||
Thomas M. Van Buren | 263,728 | 188,984 | ||
Julio E. Rios II | — | — | ||
Jeremy H. Gamboa | — | — |
Ferrell Companies Unit Option Plan | ||||
Option Awards | ||||
Number of Equity Based Awards Exercised | Value Realized on Exercise | |||
Name | (#) | ($) | ||
Thomas M. Van Buren | 5,800 | 24,070 |
Executive Contributions in Last FY | Registrant Contributions in Last FY (1) | Aggregate Earnings in Last FY | Aggregate Withdrawals/ Distributions | Aggregate Balance at Last FYE (2) | ||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||
Stephen L. Wambold (3) | 33,654 | 5,373 | 9,674 | — | 522,498 | |||||
Alan C. Heitmann | 54,087 | 10,009 | 6,193 | — | 489,556 | |||||
Thomas M. Van Buren | 12,885 | 6,820 | 4,542 | — | 108,587 | |||||
Julio E. Rios II | — | — | — | — | — | |||||
Jeremy H. Gamboa | — | — | — | — | — |
(1) | Amounts are included in the Summary Compensation Table above. |
(2) | The portion of this amount representing registrant contributions made in years prior was previously reported as compensation to the NEO in the Summary Compensation Table for previous years. |
(3) | On September 27, 2016, Mr. Wambold resigned as Chief Executive Officer, President and Director of Ferrellgas, Inc. |
(i) | the willful and continued failure by the NEO to substantially perform his duties for Ferrellgas, Inc. (other than any such failure resulting from the NEO’s being disabled) within a reasonable period of time after a written demand for substantial performance is delivered to the NEO by the Board of Ferrellgas, Inc., which demand specifically identifies the manner in which the Board of Ferrellgas, Inc. believes that the NEO has not substantially performed his duties; |
(ii) | the willful engaging by the NEO in conduct which is demonstrably and materially injurious to Ferrellgas, Inc., monetarily or otherwise; |
(iii) | the engaging by the NEO in egregious misconduct involving serious moral turpitude to the extent that, in the reasonable judgment of the Board of Ferrellgas, Inc., the NEO’s credibility and reputation no longer conform to the standard of the Ferrellgas, Inc.’s executives; or |
(iv) | the NEO’s material breach of a material term of this Agreement. |
(i) | A reduction in excess of 10% in the NEO’s salary or target incentive potential as in effect as of the effective date of the employment agreement, as the same may be modified from time to time in accordance with the employment agreement; |
(ii) | A material diminution in the NEO’s authority, duties or responsibilities as in effect as of the effective date of the employment agreement, as the same may be modified from time to time in accordance with the employment agreement; |
(iii) | The relocation of the NEO’s principal office location to a location which is more than 50 highway miles from the location of the NEO’s principal office location as in effect on the effective date of the employment agreement (or such subsequent principal location agreed to by the NEO); or |
(iv) | Ferrellgas, Inc.’s material breach of any material term of the employment agreement. |
(i) | a payment equal to two times the NEO’s annual base salary in effect immediately prior to the termination date; this amount would be paid in substantially equal monthly installments over a two year timeframe beginning within five days following the termination date; |
(ii) | a payment equal to two times the NEO’s target bonus, at his target bonus rate in effect immediately prior to the termination date; this amount would be paid in substantially equal monthly installments over a two year timeframe beginning within five days following the termination date; |
(iii) | receive continuing group medical coverage for himself and his dependents for two years following the termination date; and |
(iv) | a lump sum payment of $12,000 for professional outplacement services. |
NEO | Two times annual base salary ($) | Two times target bonus ($) | ||
Stephen L. Wambold (1) | 1,400,000 | 1,400,000 | ||
Alan C. Heitmann (2) | 800,250 | 800,250 | ||
Thomas M. Van Buren | 670,000 | 670,000 | ||
Julio E. Rios II | 1,000,000 | 1,000,000 | ||
Jeremy H. Gamboa | 800,000 | 800,000 |
NEO | SAR payout at July 31, 2016 upon a change in control ($) | |
Stephen L. Wambold (1) | 2,228,793 | |
Alan C. Heitmann | 251,109 | |
Thomas M. Van Buren | 109,099 | |
Julio E. Rios II | 360,000 | |
Jeremy H. Gamboa | 360,000 |
Fees Paid in Cash | Option Awards (6) | All Other Compensation | Total | ||||||
Name | ($) | ($) | ($) | ($) | |||||
James E. Ferrell | (1) | 200,000 | — | — | 200,000 | ||||
David L. Starling | (2) | 62,500 | — | — | 62,500 | ||||
A. Andrew Levison | (3) | 62,500 | 21,788 | — | 84,288 | ||||
John R. Lowden | (3) | 78,750 | 18,750 | — | 97,500 | ||||
Michael F. Morrissey | (4) | 80,000 | 21,270 | — | 101,270 | ||||
Pamela A. Breuckmann | (2) | 62,500 | 33,000 | — | 95,500 | ||||
Stephen M. Clifford | (2) | 40,625 | 116,500 | — | 157,125 | ||||
Daniel G. Kaye | (5) | 33,125 | 44,890 | — | 78,015 |
(1) | At July 31, 2016, this director had 324,740 SAR awards outstanding. |
(2) | At July 31, 2016, this director had 50,000 SAR awards outstanding. |
(3) | At July 31, 2016, this director had 95,000 SAR awards outstanding. |
(4) | At July 31, 2016, this director had 115,000 SAR awards outstanding. |
(5) | At July 31, 2016, this former director had 7,241 SAR awards outstanding |
(6) | See Note B – Summary of significant accounting policies (16) Stock based plans – to our consolidated financial statements for information concerning these awards. The value reported represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718 Compensation - Stock Compensation. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIALOWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS. |
• | persons that own more than 5% of our common units; |
• | persons that are directors, nominees or named executive officers of our general partner; and |
• | all directors and executive officers of our general partner as a group. |
Title of class | Name and address of beneficial owner | Units beneficially owned | Percentage of class | ||
Common units | Ferrell Companies, Inc. Employee Stock Ownership Trust 125 S. LaSalle Street, 17th floor Chicago, IL 60603 | 22,776,251 | 23.4 | ||
James E. Ferrell 7500 College Blvd. Suite 1000 Overland Park, KS 66210 | 4,763,475 | 4.9 | |||
Stephen L. Wambold | 150,000 | * | |||
Alan C. Heitmann | 15,960 | * | |||
Thomas M. Van Buren | 11,000 | * | |||
Julio E. Rios II | 1,104,737 | 1.1 | |||
A. Andrew Levison | 21,800 | * | |||
John R. Lowden | 5,000 | * | |||
Michael F. Morrissey | 6,000 | * | |||
Stephen M. Clifford | 3,000 | * | |||
Pamela A. Breuckmann | 14,955 | * | |||
David L. Starling | 4,000 | * | |||
Jeremy H. Gamboa | 552,368 | * | |||
All Directors and Executive Officers as a Group | 6,702,295 | 6.9 |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. |
Common unit ownership at July 31, 2016 | Distributions paid during the year ended July 31, 2016 (in thousands) | ||||
Ferrell Companies (1) | 22,529,361 | $ | 46,184 | ||
James E. Ferrell (2) (6) | 4,763,475 | 9,764 | |||
FCI Trading Corp. (3) | 195,686 | 400 | |||
Ferrell Propane, Inc. (4) | 51,204 | 104 | |||
James H. Ballengee (5) (6) | 4,771,447 | 13,449 |
(1) | Ferrell Companies is the sole shareholder of our general partner. |
(2) | James E. Ferrell is the Interim Chief Executive Officer and President of our general partner; and is the Chairman of the Board of Directors of our general partner. JEF Capital Management owns 4,758,859 of these common units and is wholly-owned by the James E. Ferrell Revocable Trust Two for which James E. Ferrell is the trustee and sole beneficiary. The remaining 4,616 common units are held by Ferrell Resources Holdings, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary. |
(3) | FCI Trading Corp. is an affiliate of the general partner and is wholly-owned by Ferrell Companies. |
(4) | Ferrell Propane, Inc. is wholly-owned by our general partner. |
(5) | James H. Ballengee is the owner of Jamex Marketing, LLC, which is the record holder of these units. Prior to April 30, 2016, Jamex Marketing, LLC owned more than 5% of the outstanding common units. As of July 31, 2016, Jamex Marketing, LLC owned less than 5% of the outstanding common units. Refer to Item 1. "Business" for a description of a group of agreements executed with Jamex on September 1, 2016, including the purchase by Ferrellgas Partners of 0.9 million of Ferrellgas Partners' common units for approximately $16.9 million, as well as a description of the restrictions on the remaining Ferrellgas Partners common units owned by Jamex, and any cash distributions and proceeds received by Jamex in respect thereof. |
(6) | Beneficially owned limited partner units are based on the most recent Schedule 13G, Schedule 13D or Section 16 SEC filing, or information provided by the beneficial owner. |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES. |
(in thousands) | 2016 | 2015 | |||||
Audit fees (1) | $ | 1,580 | $ | 1,119 | |||
Audit-related fees (2) | 20 | 403 | |||||
Tax fees (3) | — | — | |||||
All other fees (4) | — | 173 | |||||
Total | $ | 1,600 | $ | 1,695 |
(1) | Audit fees consist of the aggregate fees billed for each of the last two fiscal years for professional services rendered by Grant Thornton LLP in connection with the audit of our annual financial statements and the review of financial statements included in our quarterly reports on Form 10-Q. In addition, these fees also covered those services that are normally provided by an accountant in connection with statutory and regulatory filings or engagements and services related to the audit of our internal controls over financial reporting, accounting consultations, consents, comfort letters and assistance with and review of documents filed with the SEC. |
(2) | Audit-related fees consist of the aggregate fees billed in each of the last two fiscal years for assurance and related services by Grant Thornton LLP that we believe are reasonably related to the performance of the audit or review of our financial statements and that would not normally be reported under Item 9(e)(1) of Schedule 14A. These services generally consisted of financial accounting and reporting consultations not classified as audit fees, due diligence related to mergers and acquisitions and audits of our benefit plans. |
(3) | Tax fees consist of the aggregate fees billed in each of the last two fiscal years for professional services provided by Grant Thornton. |
(4) | All other fees consist of the aggregate fees billed in each of the last two fiscal years for products and services provided by Grant Thornton, other than the services that would normally be reported in Items 9(e)(1) through 9(e)(3) of Schedule 14A. |
See "Index to Financial Statements" set forth on page F-1. | |
See "Index to Financial Statement Schedules" set forth on page S-1. | |
See "Index to Exhibits" set forth on page E-1. |
FERRELLGAS PARTNERS, L.P. | ||||
By Ferrellgas, Inc. (General Partner) | ||||
Date: | September 28, 2016 | By | /s/ James E. Ferrell | |
James E. Ferrell | ||||
Interim Chief Executive Officer and President; Chairman of the Board of Directors |
Signature | Title | Date | ||
/s/ James E. Ferrell | Interim Chief Executive Officer and President; Chairman of the Board of Directors | 9/28/2016 | ||
James E. Ferrell | ||||
/s/ Pamela A. Breuckmann | Director | 9/28/2016 | ||
Pamela A. Breuckmann | ||||
/s/ Stephen M. Clifford | Director | 9/28/2016 | ||
Stephen M. Clifford | ||||
/s/ A. Andrew Levison | Director | 9/28/2016 | ||
A. Andrew Levison | ||||
/s/ John R. Lowden | Director | 9/28/2016 | ||
John R. Lowden | ||||
/s/ Michael F. Morrissey | Director | 9/28/2016 | ||
Michael F. Morrissey | ||||
/s/ David L. Starling | Director | 9/28/2016 | ||
David L. Starling | ||||
/s/ Alan C. Heitmann | Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) | 9/28/2016 | ||
Alan C. Heitmann |
FERRELLGAS PARTNERS FINANCE CORP. | ||||
Date: | September 28, 2016 | By | /s/ James E. Ferrell | |
James E. Ferrell | ||||
Interim Chief Executive Officer and President; Chairman of the Board of Directors |
Signature | Title | Date | ||
/s/ James E. Ferrell | Interim Chief Executive Officer and President (Principal Executive Officer); Chairman of the Board of Directors | 9/28/2016 | ||
James E. Ferrell | ||||
/s/ Alan C. Heitmann | Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) | 9/28/2016 | ||
Alan C. Heitmann |
FERRELLGAS, L.P. | ||||
By Ferrellgas, Inc. (General Partner) | ||||
Date: | September 28, 2016 | By | /s/ James E. Ferrell | |
James E. Ferrell | ||||
Interim Chief Executive Officer and President; Chairman of the Board of Directors |
Signature | Title | Date | ||
/s/ James E. Ferrell | Interim Chief Executive Officer and President; Chairman of the Board of Directors | 9/28/2016 | ||
James E. Ferrell | ||||
/s/ Pamela A. Breuckmann | Director | 9/28/2016 | ||
Pamela A. Breuckmann | ||||
/s/ Stephen M. Clifford | Director | 9/28/2016 | ||
Stephen M. Clifford | ||||
/s/ A. Andrew Levison | Director | 9/28/2016 | ||
A. Andrew Levison | ||||
/s/ John R. Lowden | Director | 9/28/2016 | ||
John R. Lowden | ||||
/s/ Michael F. Morrissey | Director | 9/28/2016 | ||
Michael F. Morrissey | ||||
/s/ David L. Starling | Director | 9/28/2016 | ||
David L. Starling | ||||
/s/ Alan C. Heitmann | Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) | 9/28/2016 | ||
Alan C. Heitmann |
FERRELLGAS FINANCE CORP. | ||||
Date: | September 28, 2016 | By | /s/ James E. Ferrell | |
James E. Ferrell | ||||
Interim Chief Executive Officer and President; Chairman of the Board of Directors |
Signature | Title | Date | ||
/s/ James E. Ferrell | Interim Chief Executive Officer and President (Principal Executive Officer); Chairman of the Board of Directors | 9/28/2016 | ||
James E. Ferrell | ||||
/s/ Alan C. Heitmann | Executive Vice President and Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer) | 9/28/2016 | ||
Alan C. Heitmann | ||||
INDEX TO FINANCIAL STATEMENTS | ||
Page | ||
Ferrellgas Partners, L.P. and Subsidiaries | ||
Ferrellgas Partners Finance Corp. | ||
Ferrellgas, L.P. and Subsidiaries | ||
Ferrellgas Finance Corp. | ||
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except unit data) | ||||||||
July 31, | ||||||||
ASSETS | 2016 | 2015 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,965 | $ | 7,652 | ||||
Accounts and notes receivable (including $106,464 and $123,791 of accounts receivable pledged as collateral at 2016 and 2015, respectively, and net of allowance for doubtful accounts of $5,067 and $4,816 at 2016 and 2015, respectively) | 149,583 | 196,918 | ||||||
Inventories | 90,594 | 96,754 | ||||||
Prepaid expenses and other current assets | 39,973 | 64,285 | ||||||
Total current assets | 285,115 | 365,609 | ||||||
Property, plant and equipment, net | 774,680 | 965,217 | ||||||
Goodwill | 256,103 | 478,747 | ||||||
Intangible assets, net | 280,185 | 580,043 | ||||||
Assets held for sale | 780 | — | ||||||
Other assets, net | 86,443 | 48,113 | ||||||
Total assets | $ | 1,683,306 | $ | 2,437,729 | ||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 67,928 | $ | 83,974 | ||||
Short-term borrowings | 101,291 | 75,319 | ||||||
Collateralized note payable | 64,000 | 70,000 | ||||||
Other current liabilities | 128,958 | 180,687 | ||||||
Total current liabilities | 362,177 | 409,980 | ||||||
Long-term debt | 1,941,335 | 1,778,065 | ||||||
Other liabilities | 31,574 | 41,975 | ||||||
Contingencies and commitments (Note M) | ||||||||
Partners' capital (deficit): | ||||||||
Common unitholders (98,002,665 and 100,376,789 units outstanding at 2016 and 2015, respectively) | (570,754 | ) | 299,730 | |||||
General partner unitholder (989,926 and 1,013,907 units outstanding at 2016 and 2015, respectively) | (65,835 | ) | (57,042 | ) | ||||
Accumulated other comprehensive loss | (10,468 | ) | (38,934 | ) | ||||
Total Ferrellgas Partners, L.P. partners' capital (deficit) | (647,057 | ) | 203,754 | |||||
Noncontrolling interest | (4,723 | ) | 3,955 | |||||
Total partners' capital (deficit) | (651,780 | ) | 207,709 | |||||
Total liabilities and partners' capital | $ | 1,683,306 | $ | 2,437,729 | ||||
See notes to consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(in thousands, except per unit data) | ||||||||||||
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Revenues: | ||||||||||||
Propane and other gas liquids sales | $ | 1,202,368 | $ | 1,657,016 | $ | 2,147,343 | ||||||
Midstream operations | 625,238 | 107,189 | 7,435 | |||||||||
Other | 211,761 | 260,185 | 251,082 | |||||||||
Total revenues | 2,039,367 | 2,024,390 | 2,405,860 | |||||||||
Costs and expenses: | ||||||||||||
Cost of sales - propane and other gas liquids sales | 564,433 | 977,224 | 1,456,388 | |||||||||
Cost of sales - midstream operations | 471,234 | 76,590 | 1,970 | |||||||||
Cost of sales - other | 126,237 | 170,697 | 156,182 | |||||||||
Operating expense | 459,178 | 437,457 | 451,528 | |||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | |||||||||
General and administrative expense | 56,635 | 77,238 | 65,156 | |||||||||
Equipment lease expense | 28,833 | 24,273 | 17,745 | |||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | |||||||||
Asset impairments | 658,118 | — | — | |||||||||
Loss on asset sales and disposal | 30,835 | 7,099 | 6,486 | |||||||||
Operating income (loss) | (534,244 | ) | 130,520 | 144,414 | ||||||||
Interest expense | (137,937 | ) | (100,396 | ) | (86,502 | ) | ||||||
Loss on extinguishment of debt | — | — | (21,202 | ) | ||||||||
Other income (expense), net | 110 | (350 | ) | (479 | ) | |||||||
Earnings (loss) before income taxes | (672,071 | ) | 29,774 | 36,231 | ||||||||
Income tax expense (benefit) | (36 | ) | (315 | ) | 2,516 | |||||||
Net earnings (loss) | (672,035 | ) | 30,089 | 33,715 | ||||||||
Net earnings (loss) attributable to noncontrolling interest | (6,620 | ) | 469 | 504 | ||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (665,415 | ) | 29,620 | 33,211 | ||||||||
Less: General partner's interest in net earnings (loss) | (6,654 | ) | 296 | 332 | ||||||||
Common unitholders' interest in net earnings (loss) | $ | (658,761 | ) | $ | 29,324 | $ | 32,879 | |||||
Basic and diluted net earnings (loss) per common unitholders' interest | $ | (6.68 | ) | $ | 0.35 | $ | 0.41 | |||||
Cash distributions declared per common unit | $ | 2.05 | $ | 2.00 | $ | 2.00 | ||||||
See notes to consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(in thousands) | ||||||||||||
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net earnings (loss) | $ | (672,035 | ) | $ | 30,089 | $ | 33,715 | |||||
Other comprehensive income (loss) | ||||||||||||
Change in value on risk management derivatives | 1,789 | (73,647 | ) | 14,592 | ||||||||
Reclassification of gains and losses of derivatives to earnings | 27,302 | 28,258 | (10,175 | ) | ||||||||
Foreign currency translation adjustment | — | (2 | ) | (145 | ) | |||||||
Pension liability adjustment | (333 | ) | (185 | ) | 258 | |||||||
Other comprehensive income (loss) | 28,758 | (45,576 | ) | 4,530 | ||||||||
Comprehensive income (loss) | (643,277 | ) | (15,487 | ) | 38,245 | |||||||
Less: comprehensive income (loss) attributable to noncontrolling interest | 6,328 | (8 | ) | (550 | ) | |||||||
Comprehensive income (loss) attributable to Ferrellgas Partners, LP | $ | (636,949 | ) | $ | (15,495 | ) | $ | 37,695 | ||||
See notes to consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (DEFICIT) | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Number of units | |||||||||||||||||||||||||||||
Common unitholders | General Partner unitholder | Common unitholders | General Partner unitholder | Accumulated other comprehensive income (loss) | Total Ferrellgas Partner, L.P. partners' capital (deficit) | Non-controlling interest | Total partners' capital (deficit) | ||||||||||||||||||||||
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 | — | — | 45,370 | 459 | 45,829 | 468 | 46,297 | ||||||||||||||||||||||
Distributions | — | — | (159,316 | ) | (1,609 | ) | (160,925 | ) | (1,803 | ) | (162,728 | ) | |||||||||||||||||
Common units issued in connection with acquisitions | 62.6 | 0.6 | 1,500 | 15 | 1,515 | 15 | 1,530 | ||||||||||||||||||||||
Exercise of common unit options | 52.0 | 0.5 | 605 | 6 | 611 | 6 | 617 | ||||||||||||||||||||||
Common units issued in offering, net of issuance costs | 2,040.8 | 20.7 | 50,000 | 505 | 50,505 | 515 | 51,020 | ||||||||||||||||||||||
Net earnings | 32,879 | 332 | 33,211 | 504 | 33,715 | ||||||||||||||||||||||||
Other comprehensive income | 4,484 | 4,484 | 46 | 4,530 | |||||||||||||||||||||||||
Balance at July 31, 2014 | 81,228.2 | 820.5 | (57,893 | ) | (60,654 | ) | 6,181 | (112,366 | ) | 720 | (111,646 | ) | |||||||||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | — | — | 49,681 | 502 | 50,183 | 512 | 50,695 | ||||||||||||||||||||||
Distributions | — | — | (165,433 | ) | (1,672 | ) | (167,105 | ) | (6,139 | ) | (173,244 | ) | |||||||||||||||||
Common units issued in connection with acquisitions | 11,334.2 | 114.5 | 262,952 | 2,656 | 265,608 | 31 | 265,639 | ||||||||||||||||||||||
Exercise of common unit options | 5.8 | 0.1 | 91 | 1 | 92 | — | 92 | ||||||||||||||||||||||
Common units issued in offering, net of issuance costs | 7,808.6 | 78.9 | 181,008 | 1,829 | 182,837 | 8,823 | 191,660 | ||||||||||||||||||||||
Net earnings | 29,324 | 296 | 29,620 | 469 | 30,089 | ||||||||||||||||||||||||
Other comprehensive income | (45,115 | ) | (45,115 | ) | (461 | ) | (45,576 | ) | |||||||||||||||||||||
Balance at July 31, 2015 | 100,376.8 | 1,014.0 | 299,730 | (57,042 | ) | (38,934 | ) | 203,754 | 3,955 | 207,709 | |||||||||||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | — | — | 36,181 | 365 | 36,546 | 373 | 36,919 | ||||||||||||||||||||||
Distributions | — | — | (202,118 | ) | (2,042 | ) | (204,160 | ) | (2,723 | ) | (206,883 | ) | |||||||||||||||||
Common unit repurchases | (2,385.7 | ) | (24.2 | ) | (45,968 | ) | (464 | ) | (46,432 | ) | — | (46,432 | ) | ||||||||||||||||
Exercise of common unit options | 11.6 | 0.1 | 182 | 2 | 184 | — | 184 | ||||||||||||||||||||||
Net loss | (658,761 | ) | (6,654 | ) | (665,415 | ) | (6,620 | ) | (672,035 | ) | |||||||||||||||||||
Other comprehensive loss | 28,466 | 28,466 | 292 | 28,758 | |||||||||||||||||||||||||
Balance at July 31, 2016 | 98,002.7 | 989.9 | $ | (570,754 | ) | $ | (65,835 | ) | $ | (10,468 | ) | $ | (647,057 | ) | $ | (4,723 | ) | $ | (651,780 | ) | |||||||||
See notes to consolidated financial statements. |
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in thousands) | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | (672,035 | ) | $ | 30,089 | $ | 33,715 | ||||
Reconciliation of net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | ||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | ||||||||
Non-cash stock and unit-based compensation charge | 9,324 | 25,982 | 24,508 | ||||||||
Asset impairments | 658,118 | — | — | ||||||||
Loss on asset sales and disposal | 30,835 | 7,099 | 6,486 | ||||||||
Loss on extinguishment of debt | — | — | 6,526 | ||||||||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | 5,000 | ||||||
Provision for doubtful accounts | 1,703 | 3,419 | 3,419 | ||||||||
Deferred tax expense (benefit) | (504 | ) | 270 | 88 | |||||||
Other | 4,967 | 3,361 | 5,372 | ||||||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | |||||||||||
Accounts and notes receivable, net of securitization | 6,812 | (1,739 | ) | (48,087 | ) | ||||||
Inventories | 5,788 | 49,050 | (28,738 | ) | |||||||
Prepaid expenses and other current assets | 17,961 | (24,956 | ) | (3,960 | ) | ||||||
Accounts payable | (14,924 | ) | (1,547 | ) | 16,279 | ||||||
Accrued interest expense | (658 | ) | 5,099 | (7,613 | ) | ||||||
Other current liabilities | (40,252 | ) | 10,754 | 8,579 | |||||||
Other assets and liabilities | 9,184 | (20,801 | ) | (1,896 | ) | ||||||
Net cash provided by operating activities | 194,327 | 203,072 | 125,669 | ||||||||
Cash flows from investing activities: | |||||||||||
Business acquisitions, net of cash acquired | (15,144 | ) | (641,427 | ) | (162,004 | ) | |||||
Capital expenditures | (117,518 | ) | (72,481 | ) | (52,572 | ) | |||||
Proceeds from sale of assets | 17,089 | 5,905 | 4,524 | ||||||||
Other | (286 | ) | (14 | ) | (23 | ) | |||||
Net cash used in investing activities | (115,859 | ) | (708,017 | ) | (210,075 | ) | |||||
Cash flows from financing activities: | |||||||||||
Distributions | (204,160 | ) | (167,105 | ) | (160,925 | ) | |||||
Proceeds from increase in long-term debt | 168,117 | 628,134 | 750,351 | ||||||||
Payments on long-term debt | (14,959 | ) | (119,457 | ) | (569,841 | ) | |||||
Net additions to short-term borrowings | 25,972 | 5,800 | 19,465 | ||||||||
Net additions to (reductions in) collateralized short-term borrowings | (6,000 | ) | (21,000 | ) | 9,000 | ||||||
Cash paid for financing costs | (1,214 | ) | (10,301 | ) | (11,508 | ) | |||||
Noncontrolling interest activity | (2,693 | ) | 2,684 | (1,282 | ) | ||||||
Repurchase of common units (including fees of $34 for the year ended July 31, 2016) | (46,432 | ) | — | — | |||||||
Proceeds from exercise of common unit options | 182 | 91 | 605 | ||||||||
Proceeds from equity offering, net of issuance costs of $648 and $0 for the years ended July 31, 2015 and 2014, respectively | — | 181,008 | 50,000 | ||||||||
Cash contribution from general partner in connection with common unit issuances | 32 | 4,456 | 511 | ||||||||
Net cash provided by (used in) financing activities | (81,155 | ) | 504,310 | 86,376 | |||||||
Effect of exchange rate changes on cash | — | (2 | ) | (145 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (2,687 | ) | (637 | ) | 1,825 | ||||||
Cash and cash equivalents - beginning of year | 7,652 | 8,289 | 6,464 | ||||||||
Cash and cash equivalents - end of year | $ | 4,965 | $ | 7,652 | $ | 8,289 | |||||
See notes to consolidated financial statements. |
• | Propane and related equipment sales consists of the distribution of propane and related equipment and supplies. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. Ferrellgas serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia, and Puerto Rico. |
• | Midstream operations consists of one reportable operating segment: crude oil logistics. The crude oil logistics segment ("Bridger") generates income by providing crude oil transportation and logistics services on behalf of producers and end-users of crude oil. Bridger's services include transportation through its operation of a fleet of trucks and tank trailers and railcars primarily servicing Texas, Louisiana, North Dakota, Pennsylvania, Colorado and Wyoming; pipeline services in North Dakota, Montana, Wyoming, New Mexico, Mississippi, Oklahoma and Texas; and crude oil purchase and sale in connection with pipeline management services. |
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
CASH PAID FOR: | |||||||||||
Interest | $ | 133,629 | $ | 91,783 | $ | 90,820 | |||||
Income taxes | $ | 777 | $ | 712 | $ | 816 | |||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||||
Issuance of common units in connection with acquisitions | $ | — | $ | 262,952 | $ | 1,500 | |||||
Liabilities incurred in connection with acquisitions | $ | 2,126 | $ | 481 | $ | 4,312 | |||||
Change in accruals for property, plant and equipment additions | $ | (1,122 | ) | $ | 498 | $ | 978 |
• | Level 1: Quoted prices in active markets for identical assets or liabilities. |
• | Level 2: Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. |
• | Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current expense (benefit) | $ | 468 | $ | (585 | ) | $ | 2,428 | |||||
Deferred expense (benefit) | (504 | ) | 270 | 88 | ||||||||
Income tax expense (benefit) | $ | (36 | ) | $ | (315 | ) | $ | 2,516 |
July 31, | ||||||||
2016 | 2015 | |||||||
Deferred tax assets | $ | 1,156 | $ | 724 | ||||
Deferred tax liabilities | (4,085 | ) | (4,157 | ) | ||||
Net deferred tax liability | $ | (2,929 | ) | $ | (3,433 | ) |
July 31, | ||||||||||
2016 | 2015 | |||||||||
Current Standard | Previous Standard | Current Standard | Previous Standard | |||||||
Other assets | 86,443 | 109,618 | 48,113 | 74,440 | ||||||
Long-term debt | 1,941,335 | 1,964,510 | 1,778,065 | 1,804,392 |
• | Gasco Energy Supply, LLC., based in Missouri, acquired December 2015; |
• | Warren Energy Supply, Inc. based in Utah, acquired February 2016; and |
• | Selphs Propane, Inc., based in Colorado, acquired June 2016. |
• | KanGas, based in Kansas, acquired November 2013; |
• | Motor Propane, based in Wisconsin, acquired December 2013; |
• | Country Boys Propane, based in Georgia, acquired March 2014; |
• | Viking Propane, based in California, acquired May 2014; |
• | Kaw Valley Propane, based in Kansas, acquired June 2014; |
• | Wise Choice Propane, based in Ohio, acquired July 2014; and |
• | Sharp Propane, based in Texas, acquired July 2014. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Cash payments, net of cash acquired | $ | 4,476 | $ | 4,250 | $ | 34,219 | ||||||
Issuance of liabilities and other costs and considerations | 2,126 | 481 | 2,942 | |||||||||
Common units, net of issuance costs | — | 3,000 | 1,500 | |||||||||
Aggregate fair value of transactions | $ | 6,602 | $ | 7,731 | $ | 38,661 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Working capital | $ | (249 | ) | $ | 233 | $ | (919 | ) | ||||
Customer tanks, buildings, land and other | 3,625 | 236 | 14,519 | |||||||||
Goodwill | — | — | 2,922 | |||||||||
Customer lists | 2,962 | 6,569 | 19,480 | |||||||||
Non-compete agreements | 264 | 693 | 2,659 | |||||||||
Aggregate fair value of net assets acquired | $ | 6,602 | $ | 7,731 | $ | 38,661 |
June 24, 2016 (as adjusted) | July 31, 2015 (as initially reported) | Measurement period adjustments | ||||||||||
Working capital | $ | (8,315 | ) | $ | 1,783 | $ | (10,098 | ) | ||||
Transportation equipment | 293,491 | 293,491 | — | |||||||||
Injection stations and pipelines | 41,632 | 41,632 | — | |||||||||
Goodwill | 189,196 | 193,311 | (4,115 | ) | ||||||||
Customer relationships | 277,224 | 261,811 | 15,413 | |||||||||
Non-compete agreements | 10,000 | 14,800 | (4,800 | ) | ||||||||
Trade names & trademarks | 9,400 | 5,800 | 3,600 | |||||||||
Office equipment | 7,449 | 7,449 | — | |||||||||
Other | 2,375 | 2,375 | — | |||||||||
Aggregate fair value of net assets acquired | $ | 822,452 | $ | 822,452 | $ | — |
For the year ended July 31, | ||||
2015 | ||||
Revenue | $ | 81,512 | ||
Operating income | 3,848 |
For the year ended July 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 2,319,927 | $ | 2,583,680 | ||||
Net earnings (loss) | (11,834 | ) | 4,388 | |||||
Net earnings (loss) per common unitholders' interest | $ | (0.14 | ) | $ | 0.05 |
• | the issuance of senior secured notes in June 2015; |
• | the sale of common units in June 2015 in a public offering; and |
• | the issuance of common units to the seller in June 2015. |
• | C&E Production, LLC, based in Texas, acquired September 2014; and |
• | Segrest Saltwater Resources, based in Texas, acquired May 2015. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Cash payments. net of cash acquired | $ | — | $ | 74,677 | $ | 127,785 | ||||||
Issuance of liabilities and other costs and considerations | — | — | 2,555 | |||||||||
Aggregate fair value of transactions | $ | — | $ | 74,677 | $ | 130,340 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Working capital | $ | — | $ | 1,155 | $ | 490 | ||||||
Customer tanks, buildings, land and other | — | 1,704 | 622 | |||||||||
Salt water disposal wells | — | 10,705 | 24,288 | |||||||||
Goodwill | — | 12,359 | 16,957 | |||||||||
Customer relationships | — | 38,846 | 64,000 | |||||||||
Non-compete agreements | — | 3,639 | 13,300 | |||||||||
Permits and favorable lease arrangements | — | 6,269 | 10,683 | |||||||||
Aggregate fair value of net assets acquired | $ | — | $ | 74,677 | $ | 130,340 |
2016 | 2015 | |||||||
Propane gas and related products | $ | 59,726 | $ | 68,731 | ||||
Crude oil | 4,642 | — | ||||||
Appliances, parts and supplies | 26,226 | 28,023 | ||||||
Inventories | $ | 90,594 | $ | 96,754 |
Estimated useful lives | 2016 | 2015 | |||||||
Land | Indefinite | $ | 35,309 | $ | 34,389 | ||||
Land improvements | 2-20 | 14,097 | 13,249 | ||||||
Buildings and improvements | 20 | 73,021 | 71,923 | ||||||
Vehicles, including transport trailers | 8-20 | 122,691 | 228,646 | ||||||
Bulk equipment and district facilities | 5-30 | 104,428 | 111,657 | ||||||
Tanks, cylinders and customer equipment | 2-30 | 767,234 | 772,904 | ||||||
Salt water disposal wells and related equipment | 2-30 | 57,695 | 38,460 | ||||||
Rail cars | 30 | 92,980 | 150,235 | ||||||
Injection stations | 20 | 13,130 | 37,619 | ||||||
Pipeline | 15 | 1,663 | 4,074 | ||||||
Computer and office equipment | 2-5 | 122,304 | 123,386 | ||||||
Construction in progress | n/a | 10,481 | 16,841 | ||||||
1,415,033 | 1,603,383 | ||||||||
Less: accumulated depreciation | 640,353 | 638,166 | |||||||
Property, plant and equipment, net | $ | 774,680 | $ | 965,217 |
2016 | 2015 | |||||||
Jamex receivable, net | $ | 39,760 | $ | — | ||||
Other | 46,683 | 48,113 | ||||||
Other assets, net | $ | 86,443 | $ | 48,113 |
2016 | 2015 | |||||||
Accrued interest | $ | 16,623 | $ | 17,281 | ||||
Accrued payroll | 13,438 | 17,485 | ||||||
Customer deposits and advances | 27,391 | 28,792 | ||||||
Price risk management liabilities | 18,401 | 31,450 | ||||||
Other | 53,105 | 85,679 | ||||||
Other current liabilities | $ | 128,958 | $ | 180,687 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Operating expense | $ | 167,980 | $ | 174,105 | $ | 190,999 | ||||||
Depreciation and amortization expense | 4,282 | 5,127 | 5,829 | |||||||||
Equipment lease expense | 25,967 | 22,667 | 15,807 | |||||||||
$ | 198,229 | $ | 201,899 | $ | 212,635 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Loss on assets held for sale | $ | 12,112 | $ | — | $ | — | ||||||
Loss on sale of assets held for sale | 1,698 | — | — | |||||||||
Loss on sale of assets and other | 17,025 | 7,099 | 6,486 | |||||||||
Loss on asset sales and disposal | $ | 30,835 | $ | 7,099 | $ | 6,486 |
2016 | 2015 | ||||||
Accounts receivable pledged as collateral | $ | 106,464 | $ | 123,791 | |||
Accounts receivable | 48,148 | 77,636 | |||||
Other | 38 | 307 | |||||
Less: Allowance for doubtful accounts | (5,067 | ) | (4,816 | ) | |||
Accounts and notes receivable, net | $ | 149,583 | $ | 196,918 |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
July 31, 2016 | July 31, 2015 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Goodwill, net (a) | $ | 256,103 | $ | — | $ | 256,103 | $ | 478,747 | $ | — | $ | 478,747 | ||||||||||||
Intangible assets, net | ||||||||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||
Customer related (b) | $ | 554,030 | $ | (372,342 | ) | $ | 181,688 | $ | 807,122 | $ | (349,719 | ) | $ | 457,403 | ||||||||||
Non-compete agreements (c) | 39,487 | (23,384 | ) | 16,103 | 53,711 | (18,730 | ) | 34,981 | ||||||||||||||||
Permits and favorable lease arrangements | 17,225 | (2,335 | ) | 14,890 | 16,952 | (1,173 | ) | 15,779 | ||||||||||||||||
Other | 9,301 | (6,210 | ) | 3,091 | 9,182 | (5,497 | ) | 3,685 | ||||||||||||||||
620,043 | (404,271 | ) | 215,772 | 886,967 | (375,119 | ) | 511,848 | |||||||||||||||||
Unamortized intangible assets | ||||||||||||||||||||||||
Trade names & trademarks (d) | 64,413 | — | 64,413 | 68,195 | — | 68,195 | ||||||||||||||||||
Total intangible assets, net | $ | 684,456 | $ | (404,271 | ) | $ | 280,185 | $ | 955,162 | $ | (375,119 | ) | $ | 580,043 |
Propane and related equipment sales | Midstream operations - water solutions (a) | Midstream operations - crude oil logistics | Total | |||||||||
Balance July 31, 2014 | $ | 256,253 | $ | 16,957 | $ | — | $ | 273,210 | ||||
Acquisitions | — | 12,359 | 193,311 | 205,670 | ||||||||
Other | (133 | ) | — | — | (133 | ) | ||||||
Balance July 31, 2015 | 256,120 | 29,316 | 193,311 | 478,747 | ||||||||
Acquisitions | — | — | 1,358 | 1,358 | ||||||||
Measurement period adjustments | $ | — | $ | — | (4,115 | ) | (4,115 | ) | ||||
Dispositions | (17 | ) | — | — | (17 | ) | ||||||
Impairment | — | (29,316 | ) | (190,554 | ) | (219,870 | ) | |||||
Balance July 31, 2016 | $ | 256,103 | $ | — | $ | — | $ | 256,103 |
Aggregate amortization expense related to intangible assets, net: | |||
For the year ended July 31, | |||
2016 | $ | 61,970 | |
2015 | 34,585 | ||
2014 | 23,490 |
Estimated amortization expense: | |||
For the year ended July 31, | |||
2017 | $ | 31,823 | |
2018 | 29,778 | ||
2019 | 26,508 | ||
2020 | 20,487 | ||
2021 | 18,767 |
2016 | 2015 | |||||||
Senior notes | ||||||||
Fixed rate, 6.50%, due 2021 (1) | $ | 500,000 | $ | 500,000 | ||||
Fixed rate, 6.75%, due 2023 (4) | 500,000 | 500,000 | ||||||
Fixed rate, 6.75%, due 2022, net of unamortized premium of $4,008 and $4,906 at 2016 and 2015, respectively (3) | 479,008 | 479,906 | ||||||
Fixed rate, 8.625%, due 2020 (2) | 182,000 | 182,000 | ||||||
Fair value adjustments related to interest rate swaps | 5,830 | 876 | ||||||
Secured credit facility | ||||||||
Variable interest rate, expiring October 2018 (net of $101.3 million and $75.3 million classified as short-term borrowings at July 31, 2016 and 2015, respectively) | 293,109 | 136,081 | ||||||
Notes payable | ||||||||
11.8% and 9.5% weighted average interest rate at July 31, 2016 and 2015, respectively, due 2016 to 2022, net of unamortized discount of $1,566 and $1,914 at July 31, 2016 and 2015, respectively | 8,484 | 9,181 | ||||||
Total debt, excluding unamortized debt issuance costs | 1,968,431 | 1,808,044 | ||||||
Unamortized debt issuance costs | (23,175 | ) | (26,327 | ) | ||||
Less: current portion, included in other current liabilities on the consolidated balance sheets | 3,921 | 3,652 | ||||||
Long-term debt | $ | 1,941,335 | $ | 1,778,065 |
(1) | During November 2010, Ferrellgas issued $500.0 million in aggregate principal amount of 6.50% senior notes due 2021 at an offering price equal to par. These notes are general unsecured senior obligations of Ferrellgas and are effectively junior to all future senior secured indebtedness of Ferrellgas, to the extent of the value of the assets securing the debt, and are structurally subordinated to all existing and future indebtedness and obligations of the operating partnership. The senior notes bear interest from the date of issuance, payable semi-annually in arrears on May 1 and November 1 of each year. The outstanding principal amount is due on May 1, 2021. Ferrellgas would incur prepayment penalties if it were to repay the notes prior to 2019. |
(2) | During April 2010, Ferrellgas issued $280.0 million of its fixed rate senior notes. The senior notes bear interest from the date of issuance, payable semi-annually in arrears on June 15 and December 15 of each year. Ferrellgas would incur prepayment penalties if it were to repay the notes prior to 2018. During March 2011, Ferrellgas redeemed $98.0 million of these fixed rate senior notes. |
(3) | 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 million 9.125% 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. During June 2014, Ferrellgas issued an additional $150.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to 104% of par. Ferrellgas used the net proceeds for general corporate purposes, including to repay indebtedness under its secured credit facility and to pay related transaction fees and expenses. |
(4) | During June 2015, Ferrellgas issued $500.0 million in aggregate principal amount of 6.75% senior notes due 2023 at an offering price equal to par. The senior notes bear interest from the date of issuance, payable semi-annually in arrears on June 15 and December 15 of each year. The outstanding principal amount is due on June 15, 2023. Ferrellgas would incur prepayment penalties if it were to repay the notes prior to 2021. Ferrellgas received $491.3 million of net proceeds after deducting underwriters' fees. Ferrellgas used the net proceeds to fund a portion of the cash portion of the consideration for the acquisition of the outstanding membership interests in Bridger Logistics, LLC and its subsidiaries with remaining amounts being used to repay outstanding borrowing under the secured credit facility after the closing of the acquisitions. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
• | 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% (as of July 31, 2016 and 2015, the margin was 1.75% and 1.50%, respectively); 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 July 31, 2016 and 2015, the margin was 2.75% and 2.50%, respectively). |
For the year ending July 31, | Scheduled annual principal payments | |||
2017 | $ | 3,921 | ||
2018 | 2,379 | |||
2019 | 294,914 | |||
2020 | 182,960 | |||
2021 | 500,810 | |||
Thereafter | 975,175 | |||
Total | $ | 1,960,159 |
2016 | 2015 | |||||
Public common unitholders (1) | 65,691,492 | 63,294,168 | ||||
Ferrell Companies (2) | 22,529,361 | 22,529,361 | ||||
FCI Trading Corp. (3) | 195,686 | 195,686 | ||||
Ferrell Propane, Inc. (4) | 51,204 | 51,204 | ||||
James E. Ferrell (5) | 4,763,475 | 4,763,475 | ||||
James H. Ballengee (6) (7) | 4,771,447 | 9,542,895 |
(1) | These common units are listed on the New York Stock Exchange under the symbol “FGP.” |
(2) | Ferrell Companies is the owner of the general partner and a 23.0% direct owner of Ferrellgas Partner’s common units and thus a related party. Ferrell Companies also beneficially owns 195,686 and 51,204 common units of Ferrellgas Partners held by FCI Trading Corp. (“FCI Trading”) and Ferrell Propane, Inc. (“Ferrell Propane”), respectively, bringing Ferrell Companies’ total beneficial ownership to 23.2%. |
(3) | FCI Trading is an affiliate of the general partner and thus a related party. |
(4) | Ferrell Propane is controlled by the general partner and thus a related party. |
(5) | James E. Ferrell is the Interim Chief Executive Officer and President of our general partner; and is the Chairman of the Board of Directors of our general partner and a related party. JEF Capital Management owns 4,758,859 of these common units and is wholly-owned by the James E. Ferrell Revocable Trust Two for which James E. Ferrell is the trustee and sole beneficiary. The remaining 4,616 common units are held by Ferrell Resources Holdings, Inc., which is wholly-owned by the James E. Ferrell Revocable Trust One, for which James E. Ferrell is the trustee and sole beneficiary. |
(6) | Jamex Marketing, LLC is the unitholder of record of these common units. Refer to Note S. - Subsequent events, for a description of group of agreements executed with Jamex on September 1, 2016, including the purchase by Ferrellgas Partners of 0.9 million of Ferrellgas Partners' common units for approximately $16.9 million, as well as a description of the restrictions on the remaining Ferrellgas Partners common units owned by Jamex, and any cash distributions and proceeds received by Jamex in respect thereof. |
(7) | Beneficially owned limited partner units are based on the most recent Schedule 13G, Schedule 13D, or Section 16 SEC filing, or information provided by the beneficial owner. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Public common unitholders | $ | 132,217 | $ | 111,163 | $ | 107,164 | ||||||
Ferrell Companies | 46,184 | 45,059 | 42,939 | |||||||||
FCI Trading Corp. | 400 | 392 | 392 | |||||||||
Ferrell Propane, Inc. | 104 | 104 | 104 | |||||||||
James E. Ferrell | 9,764 | 8,717 | 8,717 | |||||||||
James Ballengee | 13,449 | — | — | |||||||||
General partner | 2,042 | 1,670 | 1,609 | |||||||||
$ | 204,160 | $ | 167,105 | $ | 160,925 |
Ferrell Companies | $ | 11,546 | |
FCI Trading Corp. | 100 | ||
Ferrell Propane, Inc. | 26 | ||
James E. Ferrell | 2,441 | ||
James H. Ballengee | 2,010 | ||
General partner | 503 |
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 | |||||||||||||
July 31, 2016: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 5,830 | $ | — | $ | 5,830 | ||||||||
Commodity derivatives | $ | — | $ | 8,241 | $ | — | $ | 8,241 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (3,553 | ) | $ | — | $ | (3,553 | ) | ||||||
Commodity derivatives | $ | — | $ | (17,689 | ) | $ | — | $ | (17,689 | ) | ||||||
July 31, 2015: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 1,828 | $ | — | $ | 1,828 | ||||||||
Commodity derivatives | $ | — | $ | 4,655 | $ | — | $ | 4,655 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (4,748 | ) | $ | — | $ | (4,748 | ) | ||||||
Commodity derivatives | $ | — | $ | (42,375 | ) | $ | — | $ | (42,375 | ) | ||||||
Contingent consideration | $ | — | $ | — | $ | (100 | ) | $ | (100 | ) |
Contingent consideration liability | ||||
Balance at July 31, 2014 | $ | 6,400 | ||
Increase in fair value related to accretion | 400 | |||
Change in fair value included in earnings | (6,700 | ) | ||
Balance at July 31, 2015 | 100 | |||
Increase in fair value related to accretion | — | |||
Change in fair value included in earnings | (100 | ) | ||
Balance at July 31, 2016 | $ | — |
July 31, 2016 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 2,263 | Other current liabilities | $ | 10,184 | ||||||
Commodity derivatives-propane | Other assets, net | 3,056 | Other liabilities | 1,597 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 1,654 | Other current liabilities | 2,309 | ||||||||
Interest rate swap agreements | Other assets, net | 4,176 | Other liabilities | 1,244 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-vehicle fuel | Prepaid expenses and other current assets | — | Other current liabilities | 3,996 | ||||||||
Commodity derivatives-vehicle fuel | Other assets, net | — | Other liabilities | — | ||||||||
Commodity derivatives-crude oil | Prepaid expenses and other current assets | 2,922 | Other current liabilities | 1,912 | ||||||||
Total | $ | 14,071 | Total | $ | 21,242 | |||||||
July 31, 2015 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 3,614 | Other current liabilities | $ | 27,929 | ||||||
Commodity derivatives-propane | Other assets, net | 1,041 | Other liabilities | 12,034 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 1,828 | Other current liabilities | 2,241 | ||||||||
Interest rate swap agreements | Other assets, net | — | Other liabilities | 2,507 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-vehicle fuel | Prepaid expenses and other current assets | — | Other current liabilities | 1,280 | ||||||||
Commodity derivatives-vehicle fuel | Other assets, net | — | Other liabilities | 1,132 | ||||||||
Total | $ | 6,483 | Total | $ | 47,123 |
July 31, 2016 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Deposits | Prepaid expense and other current assets | $ | 8,252 | Other current liabilities | $ | — | ||||||
Other assets, net | 1,275 | Other liabilities | — | |||||||||
$ | 9,527 | $ | — | |||||||||
July 31, 2015 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Deposits | Prepaid expense and other current assets | $ | 18,009 | Other current liabilities | $ | 15 | ||||||
Other assets, net | 11,786 | Other liabilities | — | |||||||||
$ | 29,795 | $ | 15 |
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 year ended July 31, | For the year ended July 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Interest rate swap agreements | Interest expense | $ | 1,919 | $ | 1,892 | $ | 2,520 | $ | (9,100 | ) | $ | (9,100 | ) | $ | (11,985 | ) |
For the year ended July 31, 2016 | |||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Effective portion | Ineffective portion | |||||||||
Commodity derivatives | $ | 4,409 | Cost of product sold- propane and other gas liquids sales | $ | (24,438 | ) | $ | — | |||||
Interest rate swap agreements | (2,620 | ) | Interest expense | (2,864 | ) | — | |||||||
$ | 1,789 | $ | (27,302 | ) | $ | — |
For the year ended July 31, 2015 | |||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Effective portion | Ineffective portion | |||||||||
Commodity derivatives | $ | (70,291 | ) | Cost of product sold- propane and other gas liquids sales | $ | (28,059 | ) | $ | — | ||||
Interest rate swap agreements | (3,356 | ) | Interest expense | — | (199 | ) | |||||||
$ | (73,647 | ) | $ | (28,059 | ) | $ | (199 | ) | |||||
For the year ended July 31, 2014 | |||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Effective portion | Ineffective portion | |||||||||
Commodity derivatives | $ | 15,473 | Cost of product sold- propane and other gas liquids sales | $ | 10,175 | $ | — | ||||||
Interest rate swap agreements | (881 | ) | Interest expense | — | — | ||||||||
$ | 14,592 | $ | 10,175 | $ | — |
For the year ended July 31, 2016 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Reclassified in Income | ||||
Commodity derivatives - crude oil | $ | 1,084 | Cost of sales - midstream operations | |||
Commodity derivatives - vehicle fuel | $ | (4,351 | ) | Operating expense | ||
For the year ended July 31, 2015 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Reclassified in Income | ||||
Commodity derivatives - vehicle fuel | $ | (2,412 | ) | Operating expense |
For the year ended July 31, | ||||||||||||
Gains and losses on derivatives included in AOCI | 2016 | 2015 | 2014 | |||||||||
Beginning balance | $ | (38,906 | ) | $ | 6,483 | $ | 2,066 | |||||
Change in value on risk management commodity derivatives | 4,409 | (70,291 | ) | 15,473 | ||||||||
Reclassification of gains and losses of commodity hedges to cost of product sold - propane and other gas liquids sales, net | 24,438 | 28,059 | (10,175 | ) | ||||||||
Change in value on risk management interest rate derivatives | (2,620 | ) | (3,356 | ) | (881 | ) | ||||||
Reclassification of gains and losses on interest rate hedges to interest expense | 2,864 | 199 | — | |||||||||
Ending balance | $ | (9,815 | ) | $ | (38,906 | ) | $ | 6,483 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Operating expense | $ | 230,437 | $ | 217,742 | $ | 216,657 | ||||||
General and administrative expense | $ | 30,239 | $ | 27,278 | $ | 32,119 |
Future minimum rental and buyout amounts by fiscal year | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | |||||||||||||||||||
Operating lease obligations | $ | 54,842 | $ | 36,789 | $ | 28,260 | $ | 21,603 | $ | 16,689 | $ | 21,471 | ||||||||||||
Operating lease buyouts | $ | 3,197 | $ | 3,444 | $ | 3,521 | $ | 2,693 | $ | 3,326 | $ | 9,818 |
Ratio of total distributions payable to: | ||||||
Quarterly distribution per common unit | Common unitholder | General partner | ||||
$0.56 to $0.63 | 86.9 | % | 13.1 | % | ||
$0.64 to $0.82 | 76.8 | % | 23.2 | % | ||
$0.83 and above | 51.5 | % | 48.5 | % |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Common unitholders’ interest in net earnings (loss) | $ | (658,761 | ) | $ | 29,324 | $ | 32,879 | |||||
Weighted average common units outstanding (in thousands) | 98,682.8 | 84,646.2 | 79,651.1 | |||||||||
Dilutive securities | — | 6.7 | 20.6 | |||||||||
Weighted average common units outstanding plus dilutive securities | 98,682.8 | 84,652.9 | 79,671.7 | |||||||||
Basic and diluted net earnings (loss) per common unitholders’ interest | $ | (6.68 | ) | $ | 0.35 | $ | 0.41 |
Year Ended July 31, 2016 | ||||||||||||||||||||
Propane and related equipment sales | Midstream Operations - Crude Oil Logistics | Corporate and other | Eliminations | Total | ||||||||||||||||
Segment revenues | $ | 1,414,129 | $ | 611,558 | $ | 15.875 | $ | (2,195 | ) | $ | 2,039,367 | |||||||||
Direct costs (1) | 1,127,382 | 503,257 | 65,543 | (1,545 | ) | 1,694,637 | ||||||||||||||
Adjusted EBITDA | $ | 286,747 | $ | 108,301 | $ | (49,668 | ) | $ | (650 | ) | $ | 344,730 | ||||||||
Year Ended July 31, 2015 | ||||||||||||||||||||
Propane and related equipment sales | Midstream Operations - Crude Oil Logistics | Corporate and other | Eliminations | Total | ||||||||||||||||
Segment revenues | $ | 1,917,201 | $ | 81,512 | $ | 25,677 | $ | — | $ | 2,024,390 | ||||||||||
Direct costs (1) | 1,591,404 | 72,929 | 59,873 | — | 1,724,206 | |||||||||||||||
Adjusted EBITDA | $ | 325,797 | $ | 8,583 | $ | (34,196 | ) | $ | — | $ | 300,184 | |||||||||
Year Ended July 31, 2014 | ||||||||||||||||||||
Propane and related equipment sales | Midstream Operations - Crude Oil Logistics | Corporate and other | Eliminations | Total | ||||||||||||||||
Segment revenues | $ | 2,398,425 | $ | — | $ | 7,435 | $ | — | $ | 2,405,860 | ||||||||||
Direct costs (1) | 2,067,133 | — | 50,579 | — | 2,117,712 | |||||||||||||||
Adjusted EBITDA | $ | 331,292 | $ | — | $ | (43,144 | ) | $ | — | $ | 288,148 |
Year Ended July 31, | ||||||||
2016 | 2015 | |||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | $ | (665,415 | ) | $ | 29,620 | |||
Income tax benefit | (36 | ) | (315 | ) | ||||
Interest expense | 137,937 | 100,396 | ||||||
Depreciation and amortization expense | 150,513 | 98,579 | ||||||
EBITDA | (377,001 | ) | 228,280 | |||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | ||||||
Non-cash stock-based compensation charge | 9,324 | 25,982 | ||||||
Asset impairments | 658,118 | — | ||||||
Loss on asset sales and disposals | 30,835 | 7,099 | ||||||
Other (income) expense, net | (110 | ) | 350 | |||||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | ||||
Severance costs | 1,453 | — | ||||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 806 | ||||||
Acquisition and transition expenses | 99 | 16,373 | ||||||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments | 1,137 | 2,412 | ||||||
Net earnings (loss) attributable to noncontrolling interest | (6,620 | ) | 469 | |||||
Adjusted EBITDA | $ | 344,730 | $ | 300,184 |
July 31, | July 31, | |||||||
2016 | 2015 | |||||||
Assets | ||||||||
Propane and related equipment sales | $ | 1,202,214 | $ | 1,295,831 | ||||
Midstream operations - crude oil logistics | 275,303 | 917,325 | ||||||
Corporate and other | 205,789 | 224,573 | ||||||
Total consolidated assets | $ | 1,683,306 | $ | 2,437,729 |
Year Ended July 31, 2016 | ||||||||||||||||||
Propane and related equipment sales | Midstream operations - Crude oil logistics | Corporate and other | Total | |||||||||||||||
Capital expenditures: | ||||||||||||||||||
Maintenance | $ | 13,487 | $ | 71 | $ | 3,319 | $ | 16,877 | ||||||||||
Growth | 32,906 | 52,401 | 10,751 | 96,058 | ||||||||||||||
Total | $ | 46,393 | $ | 52,472 | $ | 14,070 | $ | 112,935 | ||||||||||
Year Ended July 31, 2015 | ||||||||||||||||||
Propane and related equipment sales | Midstream operations - Crude oil logistics | Corporate & other | Total | |||||||||||||||
Capital expenditures: | ||||||||||||||||||
Maintenance | $ | 16,020 | $ | — | $ | 3,429 | $ | 19,449 | ||||||||||
Growth | 36,958 | 64 | 13,366 | 50,388 | ||||||||||||||
Total | $ | 52,978 | $ | 64 | $ | 16,795 | $ | 69,837 |
For the year ended July 31, 2016 | First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
Revenues | $ | 471,146 | $ | 649,238 | $ | 509,472 | $ | 409,511 | ||||||||
Gross margin from propane and other gas liquids sales (a) | 123,550 | 202,027 | 186,668 | 125,690 | ||||||||||||
Gross margin from midstream operations (b) | 40,066 | 39,890 | 33,572 | 40,476 | ||||||||||||
Net earnings (loss) (c) | (80,566 | ) | 57,755 | 18,918 | (668,142 | ) | ||||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (79,793 | ) | 57,127 | 18,685 | (661,434 | ) | ||||||||||
Common unitholders’ interest in net earnings (loss) | (78,995 | ) | 56,556 | 18,498 | (654,820 | ) | ||||||||||
Basic and diluted net earnings (loss) per common unitholders’ interest | $ | (0.79 | ) | $ | 0.58 | $ | 0.19 | $ | (6.68 | ) | ||||||
For the year ended July 31, 2015 | First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
Revenues | $ | 443,355 | $ | 665,973 | $ | 532,551 | $ | 382,511 | ||||||||
Gross margin from propane and other gas liquids sales (a) | 129,547 | 230,175 | 191,983 | 128,087 | ||||||||||||
Gross margin from midstream operations (b) | 5,948 | 4,934 | 3,416 | 16,301 | ||||||||||||
Net earnings (loss) | (33,169 | ) | 86,371 | 36,220 | (59,333 | ) | ||||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (32,875 | ) | 85,458 | 35,812 | (58,775 | ) | ||||||||||
Common unitholders’ interest in net earnings (loss) | (32,546 | ) | 84,603 | 35,454 | (58,187 | ) | ||||||||||
Basic and diluted net earnings (loss) per common unitholders’ interest | $ | (0.40 | ) | $ | 0.89 | $ | 0.43 | $ | (0.64 | ) |
(a) | Gross margin from “Propane and other gas liquids sales” represents “Revenues - propane and other gas liquids sales” less “Cost of sales – propane and other gas liquids sales.” |
(b) | Gross margin from "Midstream operations" represents "Revenues - midstream operations" less "Cost of sales - midstream operations." |
(c) | Includes asset impairment charges of $29.3 million and $628.8 million in the first and fourth quarters of fiscal 2016, respectively. |
(1) | Jamex agreed to execute and deliver a secured promissory note in favor of Bridger in original principal amount of $49.5 million (the "Jamex Secured Promissory Note") in satisfaction of all obligations owed to Bridger under the Jamex TLA; |
(2) | Mr. Ballengee and Bacchus Capital Trading, LLC, an entity controlled by Mr. Ballengee, executed and delivered a joint guarantee of the Jamex Secured Promissory Note obligations up to a maximum aggregate amount of $20.0 million; |
(3) | The operating partnership agreed to provide Jamex with a $5.0 million revolving secured working capital facility evidenced by a revolving promissory note (the “Jamex Revolving Promissory Note” and, together with the Jamex Secured Promissory Note, the “Jamex Notes”); |
(4) | The other Jamex entities agreed to execute and deliver a security agreement and a full guarantee of the obligations under the Jamex Notes; |
(5) | Ferrellgas paid approximately $16.9 million to Jamex and in return received (and cancelled) 0.9 million of Ferrellgas Partners' common units; |
(6) | The parties agreed to terminate the Jamex TLA and certain other commercial agreements and arrangements between them, and release any claims between or among them that may exist (other than those arising under the Jamex Termination Agreement or the other agreements entered into in connection with the Jamex Termination Agreement); and |
(7) | Ferrellgas waived the remaining lockup provision applicable to Jamex under the Registration Rights Agreement dated June 24, 2015 to which Jamex is party. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
FERRELLGAS PARTNERS FINANCE CORP. | |||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | |||||||
BALANCE SHEETS | |||||||
July 31, | |||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Cash | $ | 1,000 | $ | 1,000 | |||
Total assets | $ | 1,000 | $ | 1,000 | |||
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 | 19,747 | 17,485 | |||||
Accumulated deficit | (19,747 | ) | (17,485 | ) | |||
Total stockholder's equity | $ | 1,000 | $ | 1,000 | |||
See notes to financial statements. |
FERRELLGAS PARTNERS FINANCE CORP. | |||||||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | |||||||||||
STATEMENTS OF OPERATIONS | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
General and administrative expense | $ | 2,262 | $ | 2,348 | $ | 2,149 | |||||
Net loss | $ | (2,262 | ) | $ | (2,348 | ) | $ | (2,149 | ) | ||
See notes to financial statements. |
FERRELLGAS PARTNERS FINANCE CORP. | |||||||||||||||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | |||||||||||||||||||
STATEMENTS OF STOCKHOLDER'S EQUITY | |||||||||||||||||||
Additional | Total | ||||||||||||||||||
Common stock | paid in | Accumulated | stockholder's | ||||||||||||||||
Shares | Dollars | capital | deficit | equity | |||||||||||||||
July 31, 2013 | 1,000 | $ | 1,000 | $ | 12,957 | $ | (12,988 | ) | $ | 969 | |||||||||
Capital contribution | — | — | 2,149 | — | 2,149 | ||||||||||||||
Net loss | — | — | — | (2,149 | ) | (2,149 | ) | ||||||||||||
July 31, 2014 | 1,000 | 1,000 | 15,106 | (15,137 | ) | 969 | |||||||||||||
Capital contribution | — | — | 2,379 | — | 2,379 | ||||||||||||||
Net loss | — | — | — | (2,348 | ) | (2,348 | ) | ||||||||||||
July 31, 2015 | 1,000 | 1,000 | 17,485 | (17,485 | ) | 1,000 | |||||||||||||
Capital contribution | — | — | 2,262 | — | 2,262 | ||||||||||||||
Net loss | — | — | — | (2,262 | ) | (2,262 | ) | ||||||||||||
July 31, 2016 | 1,000 | $ | 1,000 | $ | 19,747 | $ | (19,747 | ) | $ | 1,000 | |||||||||
See notes to financial statements. |
FERRELLGAS PARTNERS FINANCE CORP. | |||||||||||
(a wholly-owned subsidiary of Ferrellgas Partners, L.P.) | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (2,262 | ) | $ | (2,348 | ) | $ | (2,149 | ) | ||
Cash used in operating activities | (2,262 | ) | (2,348 | ) | (2,149 | ) | |||||
Cash flows from financing activities: | |||||||||||
Capital contribution | 2,262 | 2,379 | 2,149 | ||||||||
Cash provided by financing activities | 2,262 | 2,379 | 2,149 | ||||||||
Change in cash | — | 31 | — | ||||||||
Cash - beginning of year | 1,000 | 969 | 969 | ||||||||
Cash - end of year | $ | 1,000 | $ | 1,000 | $ | 969 | |||||
See notes to financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
July 31, | |||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,890 | $ | 5,600 | |||
Accounts and notes receivable (including $106,464 and $123,791 of accounts receivable pledged as collateral at 2016 and 2015, respectively, and net of allowance for doubtful accounts of $5,067 and $4,816 at 2016 and 2015, respectively) | 149,583 | 196,918 | |||||
Inventories | 90,594 | 96,754 | |||||
Prepaid expenses and other current assets | 39,955 | 64,211 | |||||
Total current assets | 285,022 | 363,483 | |||||
Property, plant and equipment, net | 774,680 | 965,217 | |||||
Goodwill | 256,103 | 478,747 | |||||
Intangible assets, net | 280,185 | 580,043 | |||||
Assets held for sale | 780 | — | |||||
Other assets, net | 86,443 | 48,113 | |||||
Total assets | $ | 1,683,213 | $ | 2,435,603 | |||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 67,928 | $ | 83,974 | |||
Short-term borrowings | 101,291 | 75,319 | |||||
Collateralized note payable | 64,000 | 70,000 | |||||
Other current liabilities | 126,952 | 176,176 | |||||
Total current liabilities | 360,171 | 405,469 | |||||
Long-term debt | 1,760,881 | 1,598,033 | |||||
Other liabilities | 31,574 | 41,975 | |||||
Contingencies and commitments (Note M) | |||||||
Partners' capital (deficit): | |||||||
Limited partner | (454,222 | ) | 425,105 | ||||
General partner | (4,631 | ) | 4,339 | ||||
Accumulated other comprehensive loss | (10,560 | ) | (39,318 | ) | |||
Total partners' capital (deficit) | (469,413 | ) | 390,126 | ||||
Total liabilities and partners' capital | $ | 1,683,213 | $ | 2,435,603 | |||
See notes to consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in thousands) | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues: | |||||||||||
Propane and other gas liquids sales | $ | 1,202,368 | $ | 1,657,016 | $ | 2,147,343 | |||||
Midstream operations | 625,238 | 107,189 | 7,435 | ||||||||
Other | 211,761 | 260,185 | 251,082 | ||||||||
Total revenues | 2,039,367 | 2,024,390 | 2,405,860 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - propane and other gas liquids sales | 564,433 | 977,224 | 1,456,388 | ||||||||
Cost of sales - midstream operations | 471,234 | 76,590 | 1,970 | ||||||||
Cost of sales - other | 126,237 | 170,697 | 156,182 | ||||||||
Operating expense | 459,178 | 437,353 | 451,551 | ||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | ||||||||
General and administrative expense | 56,115 | 77,238 | 65,156 | ||||||||
Equipment lease expense | 28,833 | 24,273 | 17,745 | ||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | ||||||||
Asset impairments | 658,118 | — | — | ||||||||
Loss on asset sales and disposal | 30,835 | 7,099 | 6,486 | ||||||||
Operating income (loss) | (533,724 | ) | 130,624 | 144,391 | |||||||
Interest expense | (121,818 | ) | (84,227 | ) | (70,332 | ) | |||||
Loss on extinguishment of debt | — | — | (21,202 | ) | |||||||
Other income (expense), net | 110 | (354 | ) | (479 | ) | ||||||
Earnings (loss) before income taxes | (655,432 | ) | 46,043 | 52,378 | |||||||
Income tax expense (benefit) | (41 | ) | (384 | ) | 2,471 | ||||||
Net earnings (loss) | $ | (655,391 | ) | $ | 46,427 | $ | 49,907 | ||||
See notes to consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(in thousands) | ||||||||||||
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net earnings (loss) | $ | (655,391 | ) | $ | 46,427 | $ | 49,907 | |||||
Other comprehensive income (loss) | ||||||||||||
Change in value on risk management derivatives | 1,789 | (73,647 | ) | 14,592 | ||||||||
Reclassification of gains and losses of derivatives to earnings | 27,302 | 28,258 | (10,175 | ) | ||||||||
Foreign currency translation adjustment | — | (2 | ) | (145 | ) | |||||||
Pension liability adjustment | (333 | ) | (185 | ) | 258 | |||||||
Other comprehensive income (loss) | 28,758 | (45,576 | ) | 4,530 | ||||||||
Comprehensive income (loss) | $ | (626,633 | ) | $ | 851 | $ | 54,437 | |||||
See notes to consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (DEFICIT) | |||||||||||||||
(in thousands) | |||||||||||||||
Accumulated | |||||||||||||||
other | Total | ||||||||||||||
Limited | General | comprehensive | partners' | ||||||||||||
partner | partner | income (loss) | 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 | 45,829 | 468 | 46,297 | ||||||||||||
Cash contributions in connection with acquisitions | 1,500 | 15 | 1,515 | ||||||||||||
Cash contributed by Ferrellgas Partners and general partner | 51,105 | 521 | 51,626 | ||||||||||||
Distributions | (176,623 | ) | (1,803 | ) | (178,426 | ) | |||||||||
Net earnings | 49,403 | 504 | 49,907 | ||||||||||||
Other comprehensive income | 4,530 | 4,530 | |||||||||||||
Balance at July 31, 2014 | 63,024 | 643 | 6,258 | 69,925 | |||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | 50,183 | 512 | 50,695 | ||||||||||||
Contributions in connection with acquisitions | 825,452 | 8,423 | 833,875 | ||||||||||||
Cash contributed by Ferrellgas Partners and general partner | 42,224 | 431 | 42,655 | ||||||||||||
Distributions | (601,736 | ) | (6,139 | ) | (607,875 | ) | |||||||||
Net earnings | 45,958 | 469 | 46,427 | ||||||||||||
Other comprehensive loss | (45,576 | ) | (45,576 | ) | |||||||||||
Balance at July 31, 2015 | 425,105 | 4,339 | (39,318 | ) | 390,126 | ||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | 36,546 | 373 | 36,919 | ||||||||||||
Contributions in connection with acquisitions | (284 | ) | — | (284 | ) | ||||||||||
Distributions | (266,818 | ) | (2,723 | ) | (269,541 | ) | |||||||||
Net loss | (648,771 | ) | (6,620 | ) | (655,391 | ) | |||||||||
Other comprehensive income | 28,758 | 28,758 | |||||||||||||
Balance at July 31, 2016 | $ | (454,222 | ) | $ | (4,631 | ) | $ | (10,560 | ) | $ | (469,413 | ) | |||
See notes to consolidated financial statements. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in thousands) | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | (655,391 | ) | $ | 46,427 | $ | 49,907 | ||||
Reconciliation of net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | 150,513 | 98,579 | 84,202 | ||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | 21,789 | ||||||||
Non-cash stock and unit-based compensation charge | 9,324 | 25,982 | 24,508 | ||||||||
Asset impairments | 658,118 | — | — | ||||||||
Loss on asset sales and disposal | 30,835 | 7,099 | 6,486 | ||||||||
Loss on extinguishment of debt | — | — | 6,526 | ||||||||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | 5,000 | ||||||
Provision for doubtful accounts | 1,703 | 3,419 | 3,419 | ||||||||
Deferred tax expense (benefit) | (504 | ) | 270 | 88 | |||||||
Other | 4,545 | 2,921 | 4,898 | ||||||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | |||||||||||
Accounts and notes receivable, net of securitization | 6,528 | (1,739 | ) | (48,087 | ) | ||||||
Inventories | 5,788 | 49,050 | (28,738 | ) | |||||||
Prepaid expenses and other current assets | 17,957 | (24,934 | ) | (3,994 | ) | ||||||
Accounts payable | (14,924 | ) | (1,547 | ) | 16,279 | ||||||
Accrued interest expense | (658 | ) | 5,099 | (7,611 | ) | ||||||
Other current liabilities | (37,769 | ) | 8,250 | 8,674 | |||||||
Other assets and liabilities | 9,184 | (20,801 | ) | (1,896 | ) | ||||||
Net cash provided by operating activities | 212,744 | 216,488 | 141,450 | ||||||||
Cash flows from investing activities: | |||||||||||
Business acquisitions, net of cash acquired | (15,144 | ) | (78,927 | ) | (162,019 | ) | |||||
Capital expenditures | (117,518 | ) | (72,481 | ) | (52,572 | ) | |||||
Proceeds from sale of assets | 17,089 | 5,905 | 4,524 | ||||||||
Other | (286 | ) | (14 | ) | (23 | ) | |||||
Net cash used in investing activities | (115,859 | ) | (145,517 | ) | (210,090 | ) | |||||
Cash flows from financing activities: | |||||||||||
Distributions | (269,541 | ) | (607,875 | ) | (178,426 | ) | |||||
Contributions | 30 | 51,047 | 51,626 | ||||||||
Proceeds from increase in long-term debt | 168,117 | 628,134 | 750,351 | ||||||||
Payments on long-term debt | (14,959 | ) | (119,457 | ) | (569,841 | ) | |||||
Net additions to short-term borrowings | 25,972 | 5,800 | 19,465 | ||||||||
Net additions to (reductions in) to collateralized short-term borrowings | (6,000 | ) | (21,000 | ) | 9,000 | ||||||
Cash paid for financing costs | (1,214 | ) | (10,301 | ) | (11,414 | ) | |||||
Net cash provided by (used in) financing activities | (97,595 | ) | (73,652 | ) | 70,761 | ||||||
Effect of exchange rate changes on cash | — | (2 | ) | (145 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (710 | ) | (2,683 | ) | 1,976 | ||||||
Cash and cash equivalents - beginning of year | 5,600 | 8,283 | 6,307 | ||||||||
Cash and cash equivalents - end of year | $ | 4,890 | $ | 5,600 | $ | 8,283 | |||||
See notes to consolidated financial statements. |
• | Propane and related equipment sales consists of the distribution of propane and related equipment and supplies. The propane distribution market is seasonal because propane is used primarily for heating in residential and commercial buildings. 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. |
• | Midstream operations consists of one reportable operating segment: crude oil logistics. The crude oil logistics segment ("Bridger") generates income by providing crude oil transportation and logistics services on behalf of producers and end-users of crude oil. Bridger's services include transportation through its operation of a fleet of trucks and tank trailers and railcars primarily servicing Texas, Louisiana, North Dakota, Pennsylvania, Colorado and Wyoming; pipeline services in North Dakota, Montana, Wyoming, New Mexico, Mississippi, Oklahoma and Texas; and crude oil purchase and sale in connection with pipeline management services. |
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
CASH PAID FOR: | |||||||||||
Interest | $ | 117,931 | $ | 76,085 | $ | 75,121 | |||||
Income taxes | $ | 773 | $ | 643 | $ | 771 | |||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||||
Assets contributed from Ferrellgas Partners in connection with acquisitions | $ | — | $ | 825,452 | $ | 1,500 | |||||
Liabilities incurred in connection with acquisitions | $ | 2,126 | $ | 481 | $ | 4,312 | |||||
Change in accruals for property, plant and equipment additions | $ | (1,122 | ) | $ | 498 | $ | 978 |
• | Level 1: Quoted prices in active markets for identical assets or liabilities. |
• | Level 2: Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. |
• | Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current expense (benefit) | $ | 463 | $ | (654 | ) | $ | 2,383 | |||||
Deferred expense (benefit) | (504 | ) | 270 | 88 | ||||||||
Income tax expense (benefit) | $ | (41 | ) | $ | (384 | ) | $ | 2,471 |
July 31, | ||||||||
2016 | 2015 | |||||||
Deferred tax assets | $ | 1,156 | $ | 724 | ||||
Deferred tax liabilities | (4,085 | ) | (4,157 | ) | ||||
Net deferred tax liability | $ | (2,929 | ) | $ | (3,433 | ) |
July 31, | ||||||||||
2016 | 2015 | |||||||||
Current Standard | Previous Standard | Current Standard | Previous Standard | |||||||
Other assets | 86,443 | 108,072 | 48,113 | 72,472 | ||||||
Long-term debt | 1,760,881 | 1,782,510 | 1,598,033 | 1,622,392 | ||||||
• | Gasco Energy Supply, LLC., based in Missouri, acquired December 2015; |
• | Warren Energy Supply, Inc. based in Utah, acquired February 2016; and |
• | Selphs Propane, Inc., based in Colorado, acquired June 2016. |
• | KanGas, based in Kansas, acquired November 2013; |
• | Motor Propane, based in Wisconsin, acquired December 2013; |
• | Country Boys Propane, based in Georgia, acquired March 2014; |
• | Viking Propane, based in California, acquired May 2014; |
• | Kaw Valley Propane, based in Kansas, acquired June 2014; |
• | Wise Choice Propane, based in Ohio, acquired July 2014; and |
• | Sharp Propane, based in Texas, acquired July 2014. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Cash payments, net of cash acquired | $ | 4,476 | $ | 4,250 | $ | 34,219 | ||||||
Issuance of liabilities and other costs and considerations | 2,126 | 481 | 2,942 | |||||||||
Common units, net of issuance costs | — | 3,000 | 1,500 | |||||||||
Aggregate fair value of transactions | $ | 6,602 | $ | 7,731 | $ | 38,661 | ||||||
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Working capital | (249 | ) | 233 | (919 | ) | |||||||
Customer tanks, buildings, land and other | 3,625 | 236 | 14,519 | |||||||||
Goodwill | — | — | 2,922 | |||||||||
Customer lists | 2,962 | 6,569 | 19,480 | |||||||||
Non-compete agreements | 264 | 693 | 2,659 | |||||||||
Aggregate fair value of net assets acquired | $ | 6,602 | $ | 7,731 | $ | 38,661 |
June 24, 2016 (as adjusted) | July 31, 2015 (as initially reported) | Measurement period adjustments | ||||||||||
Working capital | $ | (8,315 | ) | $ | 1,783 | $ | (10,098 | ) | ||||
Transportation equipment | 293,491 | 293,491 | — | |||||||||
Injection stations and pipelines | 41,632 | 41,632 | — | |||||||||
Goodwill | 189,196 | 193,311 | (4,115 | ) | ||||||||
Customer relationships | 277,224 | 261,811 | 15,413 | |||||||||
Non-compete agreements | 10,000 | 14,800 | (4,800 | ) | ||||||||
Trade names & trademarks | 9,400 | 5,800 | 3,600 | |||||||||
Office equipment | 7,449 | 7,449 | — | |||||||||
Other | 2,375 | 2,375 | — | |||||||||
Aggregate fair value of net assets acquired | $ | 822,452 | $ | 822,452 | $ | — |
For the year ended July 31, | ||||
2015 | ||||
Revenue | $ | 81,512 | ||
Operating income | 3,848 |
For the year ended July 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 2,319,927 | $ | 2,583,680 | ||||
Net earnings | 4,504 | 20,580 |
• | C&E Production, LLC, based in Texas, acquired September 2014; and |
• | Segrest Saltwater Resources, based in Texas, acquired May 2015. |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Cash payments, net of cash acquired | $ | — | $ | 74,677 | $ | 127,785 | ||||||
Issuance of liabilities and other costs and considerations | — | — | 2,555 | |||||||||
Aggregate fair value of transactions | $ | — | $ | 74,677 | $ | 130,340 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Working capital | $ | — | $ | 1,155 | $ | 490 | ||||||
Customer tanks, buildings, land and other | — | 1,704 | 622 | |||||||||
Salt water disposal wells | — | 10,705 | 24,288 | |||||||||
Goodwill | — | 12,359 | 16,957 | |||||||||
Customer relationships | — | 38,846 | 64,000 | |||||||||
Non-compete agreements | — | 3,639 | 13,300 | |||||||||
Permits and favorable lease arrangements | — | 6,269 | 10,683 | |||||||||
Aggregate fair value of net assets acquired | $ | — | $ | 74,677 | $ | 130,340 |
2016 | 2015 | |||||||
Propane gas and related products | $ | 59,726 | $ | 68,731 | ||||
Crude oil | 4,642 | — | ||||||
Appliances, parts and supplies | 26,226 | 28,023 | ||||||
Inventories | $ | 90,594 | $ | 96,754 |
Estimated useful lives | 2016 | 2015 | |||||||
Land | Indefinite | $ | 35,309 | $ | 34,389 | ||||
Land improvements | 2-20 | 14,097 | 13,249 | ||||||
Buildings and improvements | 20 | 73,021 | 71,923 | ||||||
Vehicles, including transport trailers | 8-20 | 122,691 | 228,646 | ||||||
Bulk equipment and district facilities | 5-30 | 104,428 | 111,657 | ||||||
Tanks, cylinders and customer equipment | 2-30 | 767,234 | 772,904 | ||||||
Salt water disposal wells and related equipment | 2-30 | 57,695 | 38,460 | ||||||
Rail cars | 30 | 92,980 | 150,235 | ||||||
Injection stations | 20 | 13,130 | 37,619 | ||||||
Pipeline | 15 | 1,663 | 4,074 | ||||||
Computer and office equipment | 2-5 | 122,304 | 123,386 | ||||||
Construction in progress | n/a | 10,481 | 16,841 | ||||||
1,415,033 | 1,603,383 | ||||||||
Less: accumulated depreciation | 640,353 | 638,166 | |||||||
Property, plant and equipment, net | $ | 774,680 | $ | 965,217 |
2016 | 2015 | |||||||
Jamex receivable, net | $ | 39,760 | $ | — | ||||
Other | 46,683 | 48,113 | ||||||
Other assets, net | $ | 86,443 | $ | 48,113 |
2016 | 2015 | |||||||
Accrued interest | $ | 14,617 | $ | 15,275 | ||||
Accrued payroll | 13,438 | 17,485 | ||||||
Customer deposits and advances | 27,391 | 28,792 | ||||||
Price risk management liabilities | 18,401 | 31,450 | ||||||
Other | 53,105 | 83,174 | ||||||
Other current liabilities | $ | 126,952 | $ | 176,176 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Operating expense | $ | 167,980 | $ | 174,105 | $ | 190,999 | ||||||
Depreciation and amortization expense | 4,282 | 5,127 | 5,829 | |||||||||
Equipment lease expense | 25,967 | 22,667 | 15,807 | |||||||||
$ | 198,229 | $ | 201,899 | $ | 212,635 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Loss on assets held for sale | $ | 12,112 | $ | — | $ | — | ||||||
Loss on sale of assets held for sale | 1,698 | — | — | |||||||||
Loss on sale of assets and other | 17,025 | 7,099 | 6,486 | |||||||||
Loss on asset sales and disposal | $ | 30,835 | $ | 7,099 | $ | 6,486 |
2016 | 2015 | ||||||
Accounts receivable pledged as collateral | $ | 106,464 | $ | 123,791 | |||
Accounts receivable | 48,148 | 77,636 | |||||
Other | 38 | 307 | |||||
Less: Allowance for doubtful accounts | (5,067 | ) | (4,816 | ) | |||
Accounts and notes receivable, net | $ | 149,583 | $ | 196,918 |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
July 31, 2016 | July 31, 2015 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Goodwill, net (a) | $ | 256,103 | $ | — | $ | 256,103 | $ | 478,747 | $ | — | $ | 478,747 | ||||||||||||
Intangible assets, net | ||||||||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||
Customer related (b) | $ | 554,030 | $ | (372,342 | ) | $ | 181,688 | $ | 807,122 | $ | (349,719 | ) | $ | 457,403 | ||||||||||
Non-compete agreements (c) | 39,487 | (23,384 | ) | 16,103 | 53,711 | (18,730 | ) | 34,981 | ||||||||||||||||
Permits and favorable lease arrangements | 17,225 | (2,335 | ) | 14,890 | 16,952 | (1,173 | ) | 15,779 | ||||||||||||||||
Other | 9,301 | (6,210 | ) | 3,091 | 9,182 | (5,497 | ) | 3,685 | ||||||||||||||||
620,043 | (404,271 | ) | 215,772 | 886,967 | (375,119 | ) | 511,848 | |||||||||||||||||
Unamortized intangible assets | ||||||||||||||||||||||||
Trade names & trademarks (d) | 64,413 | 64,413 | 68,195 | 68,195 | ||||||||||||||||||||
Total intangible assets, net | $ | 684,456 | $ | (404,271 | ) | $ | 280,185 | $ | 955,162 | $ | (375,119 | ) | $ | 580,043 |
Propane and related equipment sales | Midstream operations - water solutions (a) | Midstream operations - crude oil logistics | Total | |||||||||
Balance July 31, 2014 | $ | 256,253 | $ | 16,957 | $ | — | $ | 273,210 | ||||
Acquisitions | — | 12,359 | 193,311 | 205,670 | ||||||||
Other | (133 | ) | — | — | (133 | ) | ||||||
Balance July 31, 2015 | 256,120 | 29,316 | 193,311 | 478,747 | ||||||||
Acquisitions | — | — | 1,358 | 1,358 | ||||||||
Measurement period adjustments | — | — | (4,115 | ) | (4,115 | ) | ||||||
Dispositions | (17 | ) | — | — | (17 | ) | ||||||
Impairment | — | (29,316 | ) | (190,554 | ) | (219,870 | ) | |||||
Balance July 31, 2016 | $ | 256,103 | $ | — | $ | — | $ | 256,103 |
Aggregate amortization expense related to intangible assets, net: | |||
For the year ended July 31, | |||
2016 | $ | 61,970 | |
2015 | 34,585 | ||
2014 | 23,490 |
Estimated amortization expense: | |||
For the year ended July 31, | |||
2017 | $ | 31,823 | |
2018 | 29,778 | ||
2019 | 26,508 | ||
2020 | 20,487 | ||
2021 | 18,767 |
2016 | 2015 | |||||||
Senior notes | ||||||||
Fixed rate, 6.50%, due 2021 (1) | $ | 500,000 | $ | 500,000 | ||||
Fixed rate, 6.75%, due 2023 (3) | 500,000 | 500,000 | ||||||
Fixed rate, 6.75%, due 2022, net of unamortized premium of $4,008 and $4,906 at 2016 and 2015, respectively (2) | 479,008 | 479,906 | ||||||
Fair value adjustments related to interest rate swaps | 5,830 | 876 | ||||||
Secured credit facility | ||||||||
Variable interest rate, expiring October 2018 (net of $101.3 million and $75.3 million classified as short-term borrowings at July 31, 2016 and 2015, respectively) | 293,109 | 136,081 | ||||||
Notes payable | ||||||||
11.8% and 9.5% weighted average interest rate at July 31, 2016 and 2015, respectively, due 2016 to 2022, net of unamortized discount of $1,566 and $1,914 at July 31, 2016 and 2015, respectively | 8,484 | 9,181 | ||||||
Total debt, excluding unamortized debt issuance costs | 1,786,431 | 1,626,044 | ||||||
Unamortized debt issuance costs | (21,629 | ) | (24,359 | ) | ||||
Less: current portion, included in other current liabilities on the consolidated balance sheets | 3,921 | 3,652 | ||||||
Long-term debt | $ | 1,760,881 | $ | 1,598,033 |
(1) | During November 2010, Ferrellgas, L.P. issued $500.0 million in aggregate principal amount of new 6.50% senior notes due 2021 at an offering price equal to par. These notes are general unsecured senior obligations of Ferrellgas, L.P. and are effectively junior to all future senior secured indebtedness of Ferrellgas, L.P., to the extent of the value of the assets securing the debt, and are structurally subordinated to all existing and future indebtedness and obligations of Ferrellgas, L.P. The senior notes bear interest from the date of issuance, payable semi-annually in arrears on May 1 and November 1 of each year. The outstanding principal amount is due on May 1, 2021. Ferrellgas, L.P. would incur prepayment penalties if it were to repay the notes prior to 2019. |
(2) | 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 million 9.125% 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. During June 2014, Ferrellgas, L.P. issued an additional $150.0 million in aggregate principal amount of 6.75% senior notes due 2022 at an offering price equal to 104% of par. Ferrellgas, L.P. used the net proceeds for general corporate purposes, including to repay indebtedness under its secured credit facility and to pay related transaction fees and expenses. |
(3) | During June 2015, Ferrellgas, L.P. issued $500.0 million in aggregate principal amount of 6.75% senior notes due 2023 at an offering price equal to par. The senior notes bear interest from the date of issuance, payable semi-annually in arrears on June 15 and December 15 of each year. The outstanding principal amount is due on June 15, 2023. Ferrellgas, L.P. would incur prepayment penalties if it were to repay the notes prior to 2021. Ferrellgas, L.P. received $491.3 million of net proceeds after deducting underwriters' fees. Ferrellgas, L.P. used the net proceeds to fund a portion of the cash portion of the consideration for the acquisition of the outstanding membership interests in Bridger Logistics, LLC and its subsidiaries with remaining amounts being used to repay outstanding borrowing under the secured credit facility after the closing of the acquisitions. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
• | 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% (as of July 31, 2016 and 2015, the margin was 1.75% and 1.50%, respectively); 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 July 31, 2016 and 2015, the margin was 2.75% and 2.50%, respectively). |
For the year ending July 31, | Scheduled annual principal payments | |||
2017 | $ | 3,921 | ||
2018 | 2,379 | |||
2019 | 294,914 | |||
2020 | 960 | |||
2021 | 500,810 | |||
Thereafter | 975,175 | |||
Total | $ | 1,778,159 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Ferrellgas Partners | $ | 220,058 | $ | 182,803 | $ | 176,623 | ||||||
General partner | 2,246 | 1,864 | 1,803 |
• | Distributed $418.9 million and $4.3 million in cash to Ferrellgas Partners and the general partner, respectively. |
• | Received an asset contribution of $822.5 million from Ferrellgas Partners. |
• | In connection with this non-cash contribution, Ferrellgas, L.P. received a cash contribution of $8.4 million from the general partner. |
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 | |||||||||||||
July 31, 2016: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 5,830 | $ | — | $ | 5,830 | ||||||||
Commodity derivatives | $ | — | $ | 8,241 | $ | — | $ | 8,241 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (3,553 | ) | $ | — | $ | (3,553 | ) | ||||||
Commodity derivatives | $ | — | $ | (17,689 | ) | $ | — | $ | (17,689 | ) | ||||||
July 31, 2015: | ||||||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | 1,828 | $ | — | $ | 1,828 | ||||||||
Commodity derivatives | $ | — | $ | 4,655 | $ | — | $ | 4,655 | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments: | ||||||||||||||||
Interest rate swap agreements | $ | — | $ | (4,748 | ) | $ | — | $ | (4,748 | ) | ||||||
Commodity derivatives | $ | — | $ | (42,375 | ) | $ | — | $ | (42,375 | ) | ||||||
Contingent consideration | $ | — | $ | — | $ | (100 | ) | $ | (100 | ) |
Contingent consideration liability | ||||
Balance at July 31, 2014 | $ | 6,400 | ||
Increase in fair value related to accretion | 400 | |||
Change in fair value included in earnings | (6,700 | ) | ||
Balance at July 31, 2015 | 100 | |||
Increase in fair value related to accretion | — | |||
Change in fair value included in earnings | (100 | ) | ||
Balance at July 31, 2016 | $ | — |
July 31, 2016 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 2,263 | Other current liabilities | $ | 10,184 | ||||||
Commodity derivatives-propane | Other assets, net | 3,056 | Other liabilities | 1,597 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 1,654 | Other current liabilities | 2,309 | ||||||||
Interest rate swap agreements | Other assets, net | 4,176 | Other liabilities | 1,244 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-vehicle fuel | Prepaid expenses and other current assets | — | Other current liabilities | 3,996 | ||||||||
Commodity derivatives-vehicle fuel | Other assets, net | — | Other liabilities | — | ||||||||
Commodity derivatives-crude oil | Prepaid expenses and other current assets | 2,922 | Other current liabilities | 1,912 | ||||||||
Total | $ | 14,071 | Total | $ | 21,242 | |||||||
July 31, 2015 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Location | Fair value | Location | Fair value | ||||||||
Derivatives designated as hedging instruments | ||||||||||||
Commodity derivatives-propane | Prepaid expenses and other current assets | $ | 3,614 | Other current liabilities | $ | 27,929 | ||||||
Commodity derivatives-propane | Other assets, net | 1,041 | Other liabilities | 12,034 | ||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | 1,828 | Other current liabilities | 2,241 | ||||||||
Interest rate swap agreements | Other assets, net | — | Other liabilities | 2,507 | ||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Commodity derivatives-vehicle fuel | Prepaid expenses and other current assets | — | Other current liabilities | 1,280 | ||||||||
Commodity derivatives-vehicle fuel | Other assets, net | — | Other liabilities | 1,132 | ||||||||
Total | $ | 6,483 | Total | $ | 47,123 |
July 31, 2016 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Deposits | Prepaid expense and other current assets | $ | 8,252 | Other current liabilities | $ | — | ||||||
Other assets, net | 1,275 | Other liabilities | — | |||||||||
$ | 9,527 | $ | — | |||||||||
July 31, 2015 | ||||||||||||
Assets | Liabilities | |||||||||||
Description | Location | Amount | Location | Amount | ||||||||
Margin Deposits | Prepaid expense and other current assets | $ | 18,009 | Other current liabilities | $ | 15 | ||||||
Other assets, net | 11,786 | Other liabilities | — | |||||||||
$ | 29,795 | $ | 15 |
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 year ended July 31, | For the year ended July 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Interest rate swap agreements | Interest expense | $ | 1,919 | $ | 1,892 | $ | 2,520 | $ | (9,100 | ) | $ | (9,100 | ) | $ | (11,985 | ) |
For the year ended July 31, 2016 | |||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Effective portion | Ineffective portion | |||||||||
Commodity derivatives | $ | 4,409 | Cost of product sold- propane and other gas liquids sales | $ | (24,438 | ) | $ | — | |||||
Interest rate swap agreements | (2,620 | ) | Interest expense | (2,864 | ) | — | |||||||
$ | 1,789 | $ | (27,302 | ) | $ | — | |||||||
For the year ended July 31, 2015 | |||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Effective portion | Ineffective portion | |||||||||
Commodity derivatives | $ | (70,291 | ) | Cost of product sold- propane and other gas liquids sales | $ | (28,059 | ) | $ | — | ||||
Interest rate swap agreements | (3,356 | ) | Interest expense | — | (199 | ) | |||||||
$ | (73,647 | ) | $ | (28,059 | ) | $ | (199 | ) | |||||
For the year ended July 31, 2014 | |||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||
Derivative Instrument | Amount of Gain (Loss) Recognized in AOCI | Location of Gain (Loss) Reclassified from AOCI into Income | Effective portion | Ineffective portion | |||||||||
Commodity derivatives | $ | 15,473 | Cost of product sold- propane and other gas liquids sales | $ | 10,175 | $ | — | ||||||
Interest rate swap agreements | (881 | ) | Interest expense | — | — | ||||||||
$ | 14,592 | $ | 10,175 | $ | — |
For the year ended July 31, 2016 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Reclassified in Income | ||||
Commodity derivatives - crude oil | $ | 1,084 | Cost of sales - midstream operations | |||
Commodity derivatives - vehicle fuel | $ | (4,351 | ) | Operating expense | ||
For the year ended July 31, 2015 | ||||||
Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income | Location of Gain (Loss) Reclassified in Income | ||||
Commodity derivatives - vehicle fuel | $ | (2,412 | ) | Operating expense |
For the year ended July 31, | ||||||||||||
Gains and losses on derivatives included in AOCI | 2016 | 2015 | 2014 | |||||||||
Beginning balance | $ | (38,906 | ) | $ | 6,483 | $ | 2,066 | |||||
Change in value on risk management commodity derivatives | 4,409 | (70,291 | ) | 15,473 | ||||||||
Reclassification of gains and losses of commodity hedges to cost of product sold - propane and other gas liquids sales, net | 24,438 | 28,059 | (10,175 | ) | ||||||||
Change in value on risk management interest rate derivatives | (2,620 | ) | (3,356 | ) | (881 | ) | ||||||
Reclassification of gains and losses on interest rate hedges to interest expense | $ | 2,864 | $ | 199 | $ | — | ||||||
Ending balance | $ | (9,815 | ) | $ | (38,906 | ) | $ | 6,483 |
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Operating expense | $ | 230,437 | $ | 217,742 | $ | 216,657 | ||||||
General and administrative expense | $ | 30,239 | $ | 27,278 | $ | 32,119 |
Future minimum rental and buyout amounts by fiscal year | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | |||||||||||||||||||
Operating lease obligations | $ | 54,842 | $ | 36,789 | $ | 28,260 | $ | 21,603 | $ | 16,689 | $ | 21,471 | ||||||||||||
Operating lease buyouts | $ | 3,197 | $ | 3,444 | $ | 3,521 | $ | 2,693 | $ | 3,326 | $ | 9,818 |
Year Ended July 31, 2016 | ||||||||||||||||||||
Propane and related equipment sales | Midstream Operations - Crude Oil Logistics | Corporate and other | Eliminations | Total | ||||||||||||||||
Segment revenues | $ | 1,414,129 | $ | 611,558 | $ | 15,875 | $ | (2,195 | ) | $ | 2,039,367 | |||||||||
Direct costs (1) | 1,127,382 | 503,257 | 65,023 | (1,545 | ) | 1,694,117 | ||||||||||||||
Adjusted EBITDA | $ | 286,747 | $ | 108,301 | $ | (49,148 | ) | $ | (650 | ) | $ | 345,250 | ||||||||
Year Ended July 31, 2015 | ||||||||||||||||||||
Propane and related equipment sales | Midstream Operations - Crude Oil Logistics | Corporate and other | Eliminations | Total | ||||||||||||||||
Segment revenues | $ | 1,917,201 | $ | 81,512 | $ | 25,677 | $ | — | $ | 2,024,390 | ||||||||||
Direct costs (1) | 1,591,300 | 72,929 | 59,873 | — | 1,724,102 | |||||||||||||||
Adjusted EBITDA | $ | 325,901 | $ | 8,583 | $ | (34,196 | ) | $ | — | $ | 300,288 | |||||||||
Year Ended July 31, 2014 | ||||||||||||||||||||
Propane and related equipment sales | Midstream Operations - Crude Oil Logistics | Corporate and other | Eliminations | Total | ||||||||||||||||
Segment revenues | $ | 2,398,425 | $ | — | $ | 7,435 | $ | — | $ | 2,405,860 | ||||||||||
Direct costs (1) | 2,067,156 | — | 50,579 | — | 2,117,735 | |||||||||||||||
Adjusted EBITDA | $ | 331,269 | $ | — | $ | (43,144 | ) | $ | — | $ | 288,125 |
Year Ended July 31 | ||||||
2016 | 2015 | |||||
Net earnings (loss) | (655,391 | ) | 46,427 | |||
Income tax benefit | (41 | ) | (384 | ) | ||
Interest expense | 121,818 | 84,227 | ||||
Depreciation and amortization expense | 150,513 | 98,579 | ||||
EBITDA | (383,101 | ) | 228,849 | |||
Non-cash employee stock ownership plan compensation charge | 27,595 | 24,713 | ||||
Non-cash stock-based compensation charge | 9,324 | 25,982 | ||||
Asset impairments | 658,118 | — | ||||
Loss on asset sales and disposal | 30,835 | 7,099 | ||||
Other (income) expense, net | (110 | ) | 354 | |||
Change in fair value of contingent consideration | (100 | ) | (6,300 | ) | ||
Severance costs | 1,453 | — | ||||
Litigation accrual and related legal fees associated with a class action lawsuit | — | 806 | ||||
Acquisition and transition expenses | 99 | 16,373 | ||||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments | 1,137 | 2,412 | ||||
Adjusted EBITDA | 345,250 | 300,288 |
July 31, | July 31, | |||||
2016 | 2015 | |||||
Assets | ||||||
Propane and related equipment sales | 1,202,214 | 1,291,737 | ||||
Midstream operations - crude oil logistics | 275,303 | 917,325 | ||||
Corporate and other | 205,696 | 226,541 | ||||
Total consolidated assets | 1,683,213 | 2,435,603 |
Year Ended July 31, 2016 | |||||||||||||||||
Propane and related equipment sales | Midstream operations - Crude oil logistics | Corporate and other | Total | ||||||||||||||
Capital expenditures: | |||||||||||||||||
Maintenance | $ | 13,487 | $ | 71 | $ | 3,319 | $ | 16,877 | |||||||||
Growth | 32,906 | 52,401 | 10,751 | 96,058 | |||||||||||||
Total | $ | 46,393 | $ | 52,472 | $ | 14,070 | $ | 112,935 | |||||||||
Year Ended July 31, 2015 | |||||||||||||||||
Propane and related equipment sales | Midstream operations - Crude oil logistics | Corporate & other | Total | ||||||||||||||
Capital expenditures: | |||||||||||||||||
Maintenance | $ | 16,020 | $ | — | $ | 3,429 | $ | 19,449 | |||||||||
Growth | 36,958 | 64 | 13,366 | 50,388 | |||||||||||||
Total | $ | 52,978 | $ | 64 | $ | 16,795 | $ | 69,837 |
For the year ended July 31, 2016 | First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
Revenues | $ | 471,146 | $ | 649,238 | $ | 509,472 | $ | 409,511 | ||||||||
Gross margin from propane and other gas liquids sales (a) | 123,550 | 202,027 | 186,668 | 125,690 | ||||||||||||
Gross margin from midstream operations (b) | $ | 40,066 | $ | 39,890 | $ | 33,572 | $ | 40,476 | ||||||||
Net earnings (loss) (c) | $ | (76,536 | ) | $ | 62,187 | $ | 23,049 | $ | (664,091 | ) | ||||||
For the year ended July 31, 2015 | First quarter | Second quarter | Third quarter | Fourth quarter | ||||||||||||
Revenues | $ | 443,355 | $ | 665,973 | $ | 532,551 | $ | 382,511 | ||||||||
Gross margin from propane and other gas liquids sales (a) | 129,547 | 230,175 | 191,983 | 128,087 | ||||||||||||
Gross margin from midstream operations (b) | $ | 5,948 | $ | 4,934 | $ | 3,416 | $ | 16,301 | ||||||||
Net earnings (loss) | $ | (29,137 | ) | $ | 90,409 | $ | 40,404 | $ | (55,249 | ) |
(a) | Gross margin from “Propane and other gas liquids sales” represents “Revenues - propane and other gas liquids sales” less “Cost of sales – propane and other gas liquids sales.” |
(b) | Gross margin from "Midstream operations" represents "Revenues - midstream operations" less "Cost of sales - midstream operations." |
(c) | Includes asset impairment charges of $29.3 million and $628.8 million in the first and fourth quarters of fiscal 2016, respectively. |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
As of July 31, 2016 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 4,472 | $ | 1 | $ | 417 | $ | — | $ | — | $ | 4,890 | |||||||||||
Accounts and notes receivable | (2,703 | ) | — | 45,822 | 106,464 | — | 149,583 | ||||||||||||||||
Intercompany receivables | 34,089 | — | — | — | (34,089 | ) | — | ||||||||||||||||
Inventories | 71,422 | — | 19,172 | — | — | 90,594 | |||||||||||||||||
Prepaid expenses and other current assets | 27,922 | 2 | 12,029 | 2 | — | 39,955 | |||||||||||||||||
Total current assets | 135,202 | 3 | 77,440 | 106,466 | (34,089 | ) | 285,022 | ||||||||||||||||
Property, plant and equipment, net | 557,460 | — | 217,220 | — | — | 774,680 | |||||||||||||||||
Goodwill | 246,098 | — | 10,005 | — | — | 256,103 | |||||||||||||||||
Intangible assets, net | 141,794 | — | 138,391 | — | — | 280,185 | |||||||||||||||||
Intercompany receivables | 450,000 | — | — | — | (450,000 | ) | — | ||||||||||||||||
Investments in consolidated subsidiaries | 3,630 | — | — | — | (3,630 | ) | — | ||||||||||||||||
Assets held for sale | — | — | 780 | — | — | 780 | |||||||||||||||||
Other assets, net (1) | 37,742 | — | 48,236 | 465 | — | 86,443 | |||||||||||||||||
Total assets | $ | 1,571,926 | $ | 3 | $ | 492,072 | $ | 106,931 | $ | (487,719 | ) | $ | 1,683,213 | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 33,781 | $ | — | $ | 34,147 | $ | — | $ | — | $ | 67,928 | |||||||||||
Short-term borrowings | 101,291 | — | — | — | — | 101,291 | |||||||||||||||||
Collateralized note payable | — | — | — | 64,000 | — | 64,000 | |||||||||||||||||
Intercompany payables | — | — | 35,491 | (1,402 | ) | (34,089 | ) | — | |||||||||||||||
Other current liabilities | 119,048 | — | 7,754 | 150 | — | 126,952 | |||||||||||||||||
Total current liabilities | 254,120 | — | 77,392 | 62,748 | (34,089 | ) | 360,171 | ||||||||||||||||
Long-term debt (1) | 1,759,868 | — | 451,013 | — | (450,000 | ) | 1,760,881 | ||||||||||||||||
Other liabilities | 27,351 | — | 3,998 | 225 | — | 31,574 | |||||||||||||||||
Contingencies and commitments | |||||||||||||||||||||||
Partners' capital (deficit): | |||||||||||||||||||||||
Partners' equity | (458,853 | ) | 3 | (39,684 | ) | 43,633 | (3,952 | ) | (458,853 | ) | |||||||||||||
Accumulated other comprehensive income (loss) | (10,560 | ) | — | (647 | ) | 325 | 322 | (10,560 | ) | ||||||||||||||
Total partners' capital (deficit) | (469,413 | ) | 3 | (40,331 | ) | 43,958 | (3,630 | ) | (469,413 | ) | |||||||||||||
Total liabilities and partners' capital (deficit) | $ | 1,571,926 | $ | 3 | $ | 492,072 | $ | 106,931 | $ | (487,719 | ) | $ | 1,683,213 | ||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
As of July 31, 2015 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 5,579 | $ | 1 | $ | 20 | $ | — | $ | — | $ | 5,600 | |||||||||||
Accounts and notes receivable | (2,858 | ) | — | 80,657 | 119,119 | — | 196,918 | ||||||||||||||||
Intercompany receivables | 39,238 | — | — | — | (39,238 | ) | — | ||||||||||||||||
Inventories | 78,132 | — | 18,622 | — | — | 96,754 | |||||||||||||||||
Prepaid expenses and other current assets | 42,069 | — | 22,140 | 2 | — | 64,211 | |||||||||||||||||
Total current assets | 162,160 | 1 | 121,439 | 119,121 | (39,238 | ) | 363,483 | ||||||||||||||||
Property, plant and equipment, net | 569,640 | — | 395,577 | — | — | 965,217 | |||||||||||||||||
Goodwill | 246,116 | — | 232,631 | — | — | 478,747 | |||||||||||||||||
Intangible assets, net | 155,659 | — | 424,384 | — | — | 580,043 | |||||||||||||||||
Intercompany receivables | 450,000 | — | — | — | (450,000 | ) | — | ||||||||||||||||
Investments in consolidated subsidiaries | 661,081 | — | — | — | (661,081 | ) | — | ||||||||||||||||
Other assets, net (1) | 37,660 | — | 10,087 | 366 | — | 48,113 | |||||||||||||||||
Total assets | $ | 2,282,316 | $ | 1 | $ | 1,184,118 | $ | 119,487 | $ | (1,150,319 | ) | $ | 2,435,603 | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 40,210 | $ | — | $ | 43,764 | $ | — | $ | — | $ | 83,974 | |||||||||||
Short-term borrowings | 75,319 | — | — | — | — | 75,319 | |||||||||||||||||
Collateralized note payable | — | — | — | 70,000 | — | 70,000 | |||||||||||||||||
Intercompany payables | — | — | 30,289 | 8,949 | (39,238 | ) | — | ||||||||||||||||
Other current liabilities | 142,137 | — | 33,903 | 136 | — | 176,176 | |||||||||||||||||
Total current liabilities | 257,666 | — | 107,956 | 79,085 | (39,238 | ) | 405,469 | ||||||||||||||||
Long-term debt (1) | 1,597,080 | — | 450,953 | — | (450,000 | ) | 1,598,033 | ||||||||||||||||
Other liabilities | 37,444 | — | 4,306 | 225 | — | 41,975 | |||||||||||||||||
Contingencies and commitments | |||||||||||||||||||||||
Partners' capital: | |||||||||||||||||||||||
Partners' equity | 429,444 | 1 | 621,550 | 39,852 | (661,403 | ) | 429,444 | ||||||||||||||||
Accumulated other comprehensive income (loss) | (39,318 | ) | — | (647 | ) | 325 | 322 | (39,318 | ) | ||||||||||||||
Total partners' capital | 390,126 | 1 | 620,903 | 40,177 | (661,081 | ) | 390,126 | ||||||||||||||||
Total liabilities and partners' capital | $ | 2,282,316 | $ | 1 | $ | 1,184,118 | $ | 119,487 | $ | (1,150,319 | ) | $ | 2,435,603 | ||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the year ended July 31, 2016 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Propane and other gas liquids sales | $ | 1,202,368 | $ | — | $ | — | $ | — | $ | — | $ | 1,202,368 | |||||||||||
Midstream operations | — | — | 625,238 | — | — | 625,238 | |||||||||||||||||
Other | 73,200 | — | 138,561 | — | — | 211,761 | |||||||||||||||||
Total revenues | 1,275,568 | — | 763,799 | — | — | 2,039,367 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales - propane and other gas liquids sales | 564,433 | — | — | — | — | 564,433 | |||||||||||||||||
Cost of sales - midstream operations | (1,545 | ) | — | 472,779 | — | — | 471,234 | ||||||||||||||||
Cost of sales - other | 8,867 | — | 117,370 | — | — | 126,237 | |||||||||||||||||
Operating expense | 399,680 | — | 58,789 | 4,028 | (3,319 | ) | 459,178 | ||||||||||||||||
Depreciation and amortization expense | 75,059 | — | 75,212 | 242 | — | 150,513 | |||||||||||||||||
General and administrative expense | 50,592 | 7 | 5,516 | — | — | 56,115 | |||||||||||||||||
Equipment lease expense | 28,322 | — | 511 | — | — | 28,833 | |||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 27,595 | — | — | — | — | 27,595 | |||||||||||||||||
Asset impairments | — | — | 658,118 | — | — | 658,118 | |||||||||||||||||
Loss on asset sales and disposal | 9,180 | — | 21,655 | — | — | 30,835 | |||||||||||||||||
Operating income (loss) | 113,385 | (7 | ) | (646,151 | ) | (4,270 | ) | 3,319 | (533,724 | ) | |||||||||||||
— | — | ||||||||||||||||||||||
Interest expense | (77,493 | ) | — | (42,325 | ) | (2,186 | ) | 186 | (121,818 | ) | |||||||||||||
Other income (expense), net | 110 | — | — | 3,505 | (3,505 | ) | 110 | ||||||||||||||||
Earnings (loss) before income taxes | 36,002 | (7 | ) | (688,476 | ) | (2,951 | ) | — | (655,432 | ) | |||||||||||||
Income tax expense (benefit) | 839 | — | (880 | ) | — | — | (41 | ) | |||||||||||||||
Equity in earnings (loss) of subsidiaries | (690,554 | ) | — | — | — | 690,554 | — | ||||||||||||||||
Net earnings (loss) | (655,391 | ) | (7 | ) | (687,596 | ) | (2,951 | ) | 690,554 | (655,391 | ) | ||||||||||||
Other comprehensive income | 28,758 | — | — | — | — | 28,758 | |||||||||||||||||
Comprehensive income (loss) | $ | (626,633 | ) | $ | (7 | ) | $ | (687,596 | ) | $ | (2,951 | ) | $ | 690,554 | $ | (626,633 | ) |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the year ended July 31, 2015 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Propane and other gas liquids sales | $ | 1,657,016 | $ | — | $ | — | $ | — | $ | — | $ | 1,657,016 | |||||||||||
Midstream operations | — | — | 107,189 | — | — | 107,189 | |||||||||||||||||
Other | 73,704 | — | 186,481 | — | — | 260,185 | |||||||||||||||||
Total revenues | 1,730,720 | — | 293,670 | — | — | 2,024,390 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales - propane and other gas liquids sales | 977,224 | — | — | — | — | 977,224 | |||||||||||||||||
Cost of sales - midstream operations | — | — | 76,590 | — | — | 76,590 | |||||||||||||||||
Cost of sales - other | 7,649 | — | 163,048 | — | — | 170,697 | |||||||||||||||||
Operating expense | 413,112 | — | 25,189 | 5,206 | (6,154 | ) | 437,353 | ||||||||||||||||
Depreciation and amortization expense | 75,834 | — | 22,745 | — | — | 98,579 | |||||||||||||||||
General and administrative expense | 76,250 | 4 | 984 | — | — | 77,238 | |||||||||||||||||
Equipment lease expense | 24,213 | — | 60 | — | — | 24,273 | |||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 24,713 | — | — | — | — | 24,713 | |||||||||||||||||
Loss on asset sales and disposal | 7,095 | — | 4 | — | — | 7,099 | |||||||||||||||||
Operating income (loss) | 124,630 | (4 | ) | 5,050 | (5,206 | ) | 6,154 | 130,624 | |||||||||||||||
— | — | ||||||||||||||||||||||
Interest expense | (72,765 | ) | — | (8,499 | ) | (2,622 | ) | (341 | ) | (84,227 | ) | ||||||||||||
Other income (expense), net | (354 | ) | — | — | 5,813 | (5,813 | ) | (354 | ) | ||||||||||||||
Earnings (loss) before income taxes | 51,511 | (4 | ) | (3,449 | ) | (2,015 | ) | — | 46,043 | ||||||||||||||
Income tax expense (benefit) | 292 | — | (676 | ) | — | — | (384 | ) | |||||||||||||||
Equity in earnings (loss) of subsidiaries | (4,792 | ) | — | — | — | 4,792 | — | ||||||||||||||||
Net earnings (loss) | 46,427 | (4 | ) | (2,773 | ) | (2,015 | ) | 4,792 | 46,427 | ||||||||||||||
Other comprehensive income (loss) | (45,576 | ) | — | 2 | (4 | ) | 2 | (45,576 | ) | ||||||||||||||
Comprehensive income (loss) | $ | 851 | $ | (4 | ) | $ | (2,771 | ) | $ | (2,019 | ) | $ | 4,794 | $ | 851 |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the year ended July 31, 2014 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Propane and other gas liquids sales | $ | 2,147,343 | $ | — | $ | — | $ | — | $ | — | $ | 2,147,343 | |||||||||||
Midstream operations | — | — | 7,435 | — | — | 7,435 | |||||||||||||||||
Other | 77,460 | — | 173,622 | — | — | 251,082 | |||||||||||||||||
Total revenues | 2,224,803 | — | 181,057 | — | — | 2,405,860 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales - propane and other gas liquids sales | 1,456,388 | — | — | — | — | 1,456,388 | |||||||||||||||||
Cost of sales - midstream operations | — | — | 1,970 | — | — | 1,970 | |||||||||||||||||
Cost of sales - other | 7,640 | — | 148,542 | — | — | 156,182 | |||||||||||||||||
Operating expense | 429,089 | — | 20,919 | 7,057 | (5,514 | ) | 451,551 | ||||||||||||||||
Depreciation and amortization expense | 79,255 | — | 4,947 | — | — | 84,202 | |||||||||||||||||
General and administrative expense | 64,824 | 5 | 327 | — | — | 65,156 | |||||||||||||||||
Equipment lease expense | 17,745 | — | — | — | — | 17,745 | |||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 21,789 | — | — | — | — | 21,789 | |||||||||||||||||
Loss on asset sales and disposal | 6,492 | — | (6 | ) | — | — | 6,486 | ||||||||||||||||
Operating income (loss) | 141,581 | (5 | ) | 4,358 | (7,057 | ) | 5,514 | 144,391 | |||||||||||||||
Interest expense | (64,508 | ) | — | (4,839 | ) | (2,824 | ) | 1,839 | (70,332 | ) | |||||||||||||
Loss on extinguishment of debt | (21,202 | ) | — | — | — | — | (21,202 | ) | |||||||||||||||
Other income (expense), net | (479 | ) | — | — | 7,353 | (7,353 | ) | (479 | ) | ||||||||||||||
Earnings (loss) before income taxes | 55,392 | (5 | ) | (481 | ) | (2,528 | ) | — | 52,378 | ||||||||||||||
Income tax expense | 703 | — | 1,768 | — | — | 2,471 | |||||||||||||||||
Equity in earnings (loss) of subsidiaries | (4,782 | ) | — | — | — | 4,782 | — | ||||||||||||||||
Net earnings (loss) | 49,907 | (5 | ) | (2,249 | ) | (2,528 | ) | 4,782 | 49,907 | ||||||||||||||
Other comprehensive income (loss) | 4,530 | — | (145 | ) | — | 145 | 4,530 | ||||||||||||||||
Comprehensive income (loss) | $ | 54,437 | $ | (5 | ) | $ | (2,394 | ) | $ | (2,528 | ) | $ | 4,927 | $ | 54,437 |
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the year ended July 31, 2016 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 102,569 | $ | (9 | ) | $ | 89,728 | $ | 14,456 | $ | 6,000 | $ | 212,744 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Business acquisitions, net of cash acquired | (15,144 | ) | — | — | — | — | (15,144 | ) | |||||||||||||||
Capital expenditures | (52,501 | ) | — | (65,017 | ) | — | — | (117,518 | ) | ||||||||||||||
Proceeds from sale of assets | 17,089 | — | — | — | — | 17,089 | |||||||||||||||||
Cash collected for purchase of interest in accounts receivable | — | — | — | 946,804 | (946,804 | ) | — | ||||||||||||||||
Cash remitted to Ferrellgas, L.P for accounts receivable | — | — | — | (940,804 | ) | 940,804 | — | ||||||||||||||||
Net changes in advances with consolidated entities | 38,759 | — | — | — | (38,759 | ) | — | ||||||||||||||||
Other | (286 | ) | — | — | — | — | (286 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | (12,083 | ) | — | (65,017 | ) | 6,000 | (44,759 | ) | (115,859 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Distributions | (269,541 | ) | — | — | — | — | (269,541 | ) | |||||||||||||||
Contributions from Partners | 30 | — | — | — | — | 30 | |||||||||||||||||
Proceeds from increase in long-term debt | 168,117 | — | — | — | — | 168,117 | |||||||||||||||||
Payments on long-term debt | (14,959 | ) | — | — | — | — | (14,959 | ) | |||||||||||||||
Net additions short-term borrowings | 25,972 | — | — | — | — | 25,972 | |||||||||||||||||
Net reductions in collateralized short-term borrowings | — | — | — | (6,000 | ) | — | (6,000 | ) | |||||||||||||||
Net changes in advances with parent | — | 9 | (24,314 | ) | (14,454 | ) | 38,759 | — | |||||||||||||||
Cash paid for financing costs | (1,214 | ) | — | — | — | — | (1,214 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | (91,595 | ) | 9 | (24,314 | ) | (20,454 | ) | 38,759 | (97,595 | ) | |||||||||||||
Effect of exchange rate changes on cash | 2 | — | — | (2 | ) | — | — | ||||||||||||||||
Decrease in cash and cash equivalents | (1,107 | ) | — | 397 | — | — | (710 | ) | |||||||||||||||
Cash and cash equivalents - beginning of year | 5,579 | 1 | 20 | — | — | 5,600 | |||||||||||||||||
Cash and cash equivalents - end of year | $ | 4,472 | $ | 1 | $ | 417 | $ | — | $ | — | $ | 4,890 | |||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the year ended July 31, 2015 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 197,740 | $ | (4 | ) | $ | (12,875 | ) | $ | 10,627 | $ | 21,000 | $ | 216,488 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Business acquisitions, net of cash acquired | (71,750 | ) | — | (7,177 | ) | — | — | (78,927 | ) | ||||||||||||||
Capital expenditures | (56,955 | ) | — | (15,526 | ) | — | — | (72,481 | ) | ||||||||||||||
Proceeds from sale of assets | 5,905 | — | — | — | — | 5,905 | |||||||||||||||||
Cash collected for purchase of interest in accounts receivable | — | — | — | 1,299,325 | (1,299,325 | ) | — | ||||||||||||||||
Cash remitted to Ferrellgas, L.P for accounts receivable | — | — | — | (1,278,325 | ) | 1,278,325 | — | ||||||||||||||||
Net changes in advances with consolidated entities | (24,493 | ) | — | — | — | 24,493 | — | ||||||||||||||||
Other | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||
Net cash used in investing activities | (147,307 | ) | — | (22,703 | ) | 21,000 | 3,493 | (145,517 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Distributions | (607,875 | ) | — | — | — | — | (607,875 | ) | |||||||||||||||
Contributions from Partners | 51,047 | — | — | — | — | 51,047 | |||||||||||||||||
Proceeds from increase in long-term debt | 628,134 | — | — | — | — | 628,134 | |||||||||||||||||
Reductions in long-term debt | (119,457 | ) | — | — | — | — | (119,457 | ) | |||||||||||||||
Net additions to short-term borrowings | 5,800 | — | — | — | — | 5,800 | |||||||||||||||||
Net additions to collateralized short-term borrowings | — | — | — | (21,000 | ) | — | (21,000 | ) | |||||||||||||||
Net changes in advances with parent | — | 4 | 35,114 | (10,625 | ) | (24,493 | ) | — | |||||||||||||||
Cash paid for financing costs | (10,301 | ) | — | — | — | — | (10,301 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | (52,652 | ) | 4 | 35,114 | (31,625 | ) | (24,493 | ) | (73,652 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Increase in cash and cash equivalents | (2,219 | ) | — | (464 | ) | — | — | (2,683 | ) | ||||||||||||||
Cash and cash equivalents - beginning of year | 7,798 | 1 | 484 | — | — | 8,283 | |||||||||||||||||
Cash and cash equivalents - end of year | $ | 5,579 | $ | 1 | $ | 20 | $ | — | $ | — | $ | 5,600 | |||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the year ended July 31, 2014 | |||||||||||||||||||||||
Ferrellgas, L.P. (Parent and Co-Issuer) | Ferrellgas Finance Corp. (Co-Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 188,218 | $ | (5 | ) | $ | (17,339 | ) | $ | (20,424 | ) | $ | (9,000 | ) | $ | 141,450 | |||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Business acquisitions, net of cash acquired | (33,569 | ) | — | (128,450 | ) | — | — | (162,019 | ) | ||||||||||||||
Capital expenditures | (49,509 | ) | — | (3,063 | ) | — | — | (52,572 | ) | ||||||||||||||
Proceeds from sale of assets | 4,524 | — | — | — | — | 4,524 | |||||||||||||||||
Cash collected for purchase of interest in accounts receivable | — | — | — | 1,578,597 | (1,578,597 | ) | — | ||||||||||||||||
Cash remitted to Ferrellgas, L.P for accounts receivable | — | — | — | (1,587,597 | ) | 1,587,597 | — | ||||||||||||||||
Net changes in advances with consolidated entities | (169,708 | ) | — | — | — | 169,708 | — | ||||||||||||||||
Other | (23 | ) | — | — | — | — | (23 | ) | |||||||||||||||
Net cash used in investing activities | (248,285 | ) | — | (131,513 | ) | (9,000 | ) | 178,708 | (210,090 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Distributions | (178,426 | ) | — | — | — | — | (178,426 | ) | |||||||||||||||
Contributions from Partners | 51,626 | — | — | — | — | 51,626 | |||||||||||||||||
Proceeds from increase in long-term debt | 750,351 | — | — | — | — | 750,351 | |||||||||||||||||
Reductions in long-term debt | (569,841 | ) | — | — | — | — | (569,841 | ) | |||||||||||||||
Net reductions in short-term borrowings | 19,465 | — | — | — | — | 19,465 | |||||||||||||||||
Net additions to collateralized short-term borrowings | — | — | — | 9,000 | — | 9,000 | |||||||||||||||||
Net changes in advances with parent | — | 5 | 149,279 | 20,424 | (169,708 | ) | — | ||||||||||||||||
Cash paid for financing costs | (11,414 | ) | — | — | — | — | (11,414 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 61,761 | 5 | 149,279 | 29,424 | (169,708 | ) | 70,761 | ||||||||||||||||
Effect of exchange rate changes on cash | (145 | ) | — | — | — | — | (145 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 1,549 | — | 427 | — | — | 1,976 | |||||||||||||||||
Cash and cash equivalents - beginning of year | 6,249 | 1 | 57 | — | — | 6,307 | |||||||||||||||||
Cash and cash equivalents - end of year | $ | 7,798 | $ | 1 | $ | 484 | $ | — | $ | — | $ | 8,283 | |||||||||||
(1) | Jamex agreed to execute and deliver a secured promissory note in favor of Bridger in original principal amount of $49.5 million (the "Jamex Secured Promissory Note") in satisfaction of all obligations owed to Bridger under the Jamex TLA; |
(2) | Mr. Ballengee and Bacchus Capital Trading, LLC, an entity controlled by Mr. Ballengee, executed and delivered a joint guarantee of the Jamex Secured Promissory Note obligations up to a maximum aggregate amount of $20.0 million; |
(3) | The operating partnership agreed to provide Jamex with a $5.0 million revolving secured working capital facility evidenced by a revolving promissory note (the “Jamex Revolving Promissory Note” and, together with the Jamex Secured Promissory Note, the “Jamex Notes”); |
(4) | The other Jamex entities agreed to execute and deliver a security agreement and a full guarantee of the obligations under the Jamex Notes; |
(5) | Ferrellgas Partners paid approximately $16.9 million to Jamex and in return received (and cancelled) 0.9 million of Ferrellgas Partners' common units; |
(6) | The parties agreed to terminate the Jamex TLA and certain other commercial agreements and arrangements between them, and release any claims between or among them that may exist (other than those arising under the Jamex Termination Agreement or the other agreements entered into in connection with the Jamex Termination Agreement); and |
(7) | Ferrellgas Partners waived the remaining lockup provision applicable to Jamex under the Registration Rights Agreement dated June 24, 2015 to which Jamex is party. |
Maximum leverage ratio | Maximum leverage ratio | |||||
Date | (prior to amendments) | (after amendments) | ||||
October 31, 2016 | 5.50 | 6.05 | ||||
January 31, 2017 | 5.50 | 5.95 | ||||
April 30, 2017 | 5.50 | 5.95 | ||||
July 31, 2017 | 5.50 | 6.05 | ||||
October 31, 2017 | 5.50 | 5.95 | ||||
January 31, 2018 | 5.50 | 5.95 | ||||
April 30, 2018 & thereafter | 5.50 | 5.50 |
FERRELLGAS FINANCE CORP. | |||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | |||||||
BALANCE SHEETS | |||||||
July 31, | |||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Cash | $ | 1,100 | $ | 1,100 | |||
Other current assets | 1,500 | — | |||||
Total assets | $ | 2,600 | $ | 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 | 61,820 | 53,267 | |||||
Accumulated deficit | (60,220 | ) | (53,167 | ) | |||
Total stockholder's equity | $ | 2,600 | $ | 1,100 | |||
See notes to financial statements. |
FERRELLGAS FINANCE CORP. | |||||||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | |||||||||||
STATEMENTS OF OPERATIONS | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
General and administrative expense | $ | 7,053 | $ | 4,108 | $ | 5,289 | |||||
Net loss | $ | (7,053 | ) | $ | (4,108 | ) | $ | (5,289 | ) | ||
See notes to financial statements. |
FERRELLGAS FINANCE CORP. | ||||||||||||||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | ||||||||||||||||||
STATEMENTS OF STOCKHOLDER'S EQUITY | ||||||||||||||||||
Additional | Total | |||||||||||||||||
Common stock | paid in | Accumulated | stockholder's | |||||||||||||||
Shares | Dollars | capital | deficit | equity | ||||||||||||||
July 31, 2013 | 1,000 | $ | 1,000 | $ | 43,870 | $ | (43,770 | ) | $ | 1,100 | ||||||||
Capital contribution | — | — | 5,289 | — | 5,289 | |||||||||||||
Net loss | — | — | — | (5,289 | ) | (5,289 | ) | |||||||||||
July 31, 2014 | 1,000 | 1,000 | 49,159 | (49,059 | ) | 1,100 | ||||||||||||
Capital contribution | — | — | 4,108 | — | 4,108 | |||||||||||||
Net loss | — | — | — | (4,108 | ) | (4,108 | ) | |||||||||||
July 31, 2015 | 1,000 | 1,000 | 53,267 | (53,167 | ) | 1,100 | ||||||||||||
Capital contribution | — | — | 8,553 | — | 8,553 | |||||||||||||
Net loss | — | — | — | (7,053 | ) | (7,053 | ) | |||||||||||
July 31, 2016 | 1,000 | $ | 1,000 | $ | 61,820 | $ | (60,220 | ) | $ | 2,600 | ||||||||
See notes to financial statements. |
FERRELLGAS FINANCE CORP. | |||||||||||
(a wholly-owned subsidiary of Ferrellgas, L.P.) | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
For the year ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (7,053 | ) | $ | (4,108 | ) | $ | (5,289 | ) | ||
Changes in operating assets and liabilities: | |||||||||||
Prepaid expenses and other current assets | (1,500 | ) | — | — | |||||||
Cash used in operating activities | (8,553 | ) | (4,108 | ) | (5,289 | ) | |||||
Cash flows from financing activities: | |||||||||||
Capital contribution | 8,553 | 4,108 | 5,289 | ||||||||
Cash provided by financing activities | 8,553 | 4,108 | 5,289 | ||||||||
Change in cash | — | — | — | ||||||||
Cash - beginning of year | 1,100 | 1,100 | 1,100 | ||||||||
Cash - end of year | $ | 1,100 | $ | 1,100 | $ | 1,100 |
Page | ||
Ferrellgas Partners, L.P. and Subsidiaries | ||
Ferrellgas, L.P. and Subsidiaries | ||
Schedule 1 | ||||||||
FERRELLGAS PARTNERS, L.P. | ||||||||
PARENT ONLY | ||||||||
BALANCE SHEETS | ||||||||
(in thousands, except unit data) | ||||||||
July 31, | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 75 | $ | 2,052 | ||||
Prepaid expenses and other current assets | 18 | 74 | ||||||
Investment in Ferrellgas, L.P. | — | 386,171 | ||||||
Total assets | $ | 93 | $ | 388,297 | ||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | ||||||||
Other current liabilities | $ | 2,006 | $ | 4,511 | ||||
Long-term debt | 180,454 | 180,032 | ||||||
Investment in Ferrellgas, L.P. | 464,690 | — | ||||||
Partners' capital (deficit) | ||||||||
Common unitholders (98,002,665 and 100,376,789 units outstanding at 2016 and 2015, respectively) | (570,754 | ) | 299,730 | |||||
General partner (989,926 and 1,013,907 units outstanding at 2016 and 2015, respectively) | (65,835 | ) | (57,042 | ) | ||||
Accumulated other comprehensive loss | (10,468 | ) | (38,934 | ) | ||||
Total Ferrellgas Partners, L.P. partners' capital (deficit) | (647,057 | ) | 203,754 | |||||
Total liabilities and partners' capital | $ | 93 | $ | 388,297 |
FERRELLGAS PARTNERS, L.P. | ||||||||||||
PARENT ONLY | ||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
(in thousands) | ||||||||||||
For the year ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Equity in earnings (loss) of Ferrellgas, L.P. | $ | (648,771 | ) | $ | 45,958 | $ | 49,403 | |||||
Operating expense | — | 104 | 23 | |||||||||
General and administrative expense | 520 | — | — | |||||||||
Operating income (loss) | (649,291 | ) | 45,854 | 49,426 | ||||||||
Interest expense | (16,119 | ) | (16,169 | ) | (16,170 | ) | ||||||
Income tax expense (benefit) | 5 | (69 | ) | (45 | ) | |||||||
Other income | 0 | 4 | 0 | |||||||||
Net earnings (loss) | $ | (665,415 | ) | $ | 29,620 | $ | 33,211 |
FERRELLGAS PARTNERS, L.P. | |||||||||
PARENT ONLY | |||||||||
STATEMENTS OF CASH FLOWS | |||||||||
(in thousands) | |||||||||
For the year ended July 31, | |||||||||
2016 | 2015 | 2014 | |||||||
Cash flows from operating activities: | |||||||||
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (665,415 | ) | 29,620 | 33,211 | |||||
Reconciliation of net earnings (loss) to net cash used in operating activities: | |||||||||
Other | (1,743 | ) | 2,922 | 426 | |||||
Equity in earnings (loss) of Ferrellgas, L.P. | 648,771 | (45,958 | ) | (49,403 | ) | ||||
Net cash used in operating activities | (18,387 | ) | (13,416 | ) | (15,766 | ) | |||
Cash flows from investing activities: | |||||||||
Business acquisitions, net of cash acquired | — | (562,500 | ) | — | |||||
Distributions received from Ferrellgas, L.P. | 266,818 | 601,736 | 176,623 | ||||||
Cash contributed to Ferrellgas, L.P. | — | (42,224 | ) | (51,105 | ) | ||||
Net cash provided by (used in) investing activities | 266,818 | (2,988 | ) | 125,518 | |||||
Cash flows from financing activities: | |||||||||
Distributions paid to common and general partner unitholders | (204,160 | ) | (167,105 | ) | (160,925 | ) | |||
Cash paid for financing costs | — | — | (94 | ) | |||||
Issuance of common units (net of issuance costs of $0, $648, and $0 for the years ended July 31, 2016, 2015, and 2014) | — | 181,008 | 50,000 | ||||||
Repurchase of common units (including fees of $34, $0 and $0 for the years ended July 31, 2016, 2015 and 2014) | (46,432 | ) | — | — | |||||
Proceeds from exercise of common unit options | 182 | 91 | 605 | ||||||
Cash contribution from general partners in connection with common unit issuances | 2 | 4,456 | 511 | ||||||
Net cash provided by (used in) financing activities | (250,408 | ) | 18,450 | (109,903 | ) | ||||
Increase (decrease) in cash and cash equivalents | (1,977 | ) | 2,046 | (151 | ) | ||||
Cash and cash equivalents - beginning of year | 2,052 | 6 | 157 | ||||||
Cash and cash equivalents - end of year | 75 | 2,052 | 6 |
Schedule II | ||||||||||||||||||
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | ||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance at | Charged to | Balance | ||||||||||||||||
beginning | cost and | at end | ||||||||||||||||
Description | of period | expenses | Other | of period | ||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||
Allowance for doubtful accounts | $ | 4,816 | $ | 1,703 | $ | (993 | ) | (1) | $ | 5,526 | ||||||||
Year ended July 31, 2015 | ||||||||||||||||||
Allowance for doubtful accounts | $ | 4,756 | $ | 3,419 | $ | (3,359 | ) | (1) | $ | 4,816 | ||||||||
Year ended July 31, 2014 | ||||||||||||||||||
Allowance for doubtful accounts | $ | 3,607 | $ | 3,419 | $ | (2,270 | ) | (1) | $ | 4,756 |
(1) | Uncollectible accounts written off, net of recoveries. |
Schedule II | ||||||||||||||||||
FERRELLGAS, L.P. AND SUBSIDIARIES | ||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance at | Charged to | Balance | ||||||||||||||||
beginning | cost and | at end | ||||||||||||||||
Description | of period | expenses | Other | of period | ||||||||||||||
Year ended July 31, 2016 | ||||||||||||||||||
Allowance for doubtful accounts | $ | 4,816 | $ | 1,703 | $ | (993 | ) | (1) | $ | 5,526 | ||||||||
Year ended July 31, 2015 | ||||||||||||||||||
Allowance for doubtful accounts | $ | 4,756 | $ | 3,419 | $ | (3,359 | ) | (1) | $ | 4,816 | ||||||||
Year ended July 31, 2014 | ||||||||||||||||||
Allowance for doubtful accounts | $ | 3,607 | $ | 3,419 | $ | (2,270 | ) | (1) | $ | 4,756 |
(1) | Uncollectible accounts written off, net of recoveries. |
Exhibit Number | Description | |||
@ | 2.1 | Purchase and Sale Agreement, dated May 29, 2015, by and between Ferrellgas Partners, L.P. and Bridger, L.L.C. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed June 1, 2015. | ||
3.1 | Certificate of Limited Partnership of Ferrellgas Partners, L.P. Incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K filed September 29, 2015. | |||
3.2 | 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. | |||
3.3 | 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. | |||
3.4 | 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. | |||
3.5 | 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. | |||
3.6 | 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. | |||
3.7 | 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. | |||
3.8 | Certificate of Limited Partnership of Ferrellgas, L.P. Incorporated by reference to Exhibit 3.9 to our Annual Report on Form 10-K filed September 29, 2015. | |||
3.9 | 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. | |||
3.10 | 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. | |||
3.11 | 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, by and among Ferrellgas, L.P., Ferrellgas Finance Corp. and U.S. Bank National Association, as trustee, relating to $475 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, by and 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, by and 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 4.6 to our Annual Report on Form 10-K filed September 29, 2014. | |||
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 4.7 to our Annual Report on Form 10-K filed September 29, 2014. | |||
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 4.8 to our Annual Report on Form 10-K filed September 29, 2014. | |||
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 | Indenture, dated June 8, 2015, by and among Ferrellgas, L.P., Ferrellgas, Finance Corp. the subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee, relating to $500 million aggregate amount of the Registrant’s 6 3/4% Senior Notes due 2023. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed June 8, 2015. |
4.11 | Registration Rights Agreement, dated as of June 8, 2015, by and among Ferrellgas, L.P., Ferrellgas Finance Corp. and J.P. Morgan Securities L.L.C., as representative of the several initial purchasers. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed June 8, 2015 | |||
4.12 | Registration Rights Agreement, dated as of June 24, 2015 among Ferrellgas Partners, L.P., Jamex Marketing, LLC, Rios Holdings, Inc. and Gamboa Enterprises, LLC. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed June 24, 2015. | |||
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 Annual Report on Form 10-K filed September 29, 2014. | |||
10.2 | Amendment No. 1 to Credit Agreement dated as of September 23, 2011, by and 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 | Amendment No. 2 to Credit Agreement dated as of October 21, 2013, by and 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 | Amendment No. 3 to Credit Agreement dated as of June 6, 2014, by and 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 June 9, 2014. | |||
10.5 | Amendment No. 4 to Credit Agreement and Amendment No. 2 to Security Agreement, dated as of May 29, 2015, by and 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 10.5 to our Quarterly Report on Form 10-Q filed June 9, 2015. | |||
10.6 | 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. | |||
10.7 | 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. | |||
10.8 | 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. | |||
10.9 | Second Amendment to Receivables Purchase Agreement dated as of April 1, 2014, 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 10.1 to our Current Report on Form 8-K filed April 4, 2014. | |||
10.10 | Third Amendment to Receivables Purchase Agreement dated as of July 27, 2016, 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 10.1 to our Current Report on Form 8-K filed July 27, 2016. | |||
# | 10.11 | 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. | ||
# | 10.12 | Ferrell Companies, Inc. 1998 Incentive Compensation Plan, as amended and restated effective October 11, 2004. Incorporated by reference to Exhibit 10.9 to our Annual Report on Form 10-K filed September 29, 2014. | ||
# | 10.13 | 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. | ||
# | 10.14 | 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 10.11 to our Annual Report on Form 10-K filed September 29, 2014. | ||
# | 10.15 | 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 10.13 to our Annual Report on Form 10-K filed September 29, 2014. | ||
# | 10.16 | 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 10.15 to our Annual Report on Form 10-K filed September 29, 2014. | ||
# | 10.17 | 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. | ||
10.18 | 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. | |||
# | 10.19 | 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. | ||
10.20 | Membership interest purchase agreement dated May 1, 2014, among Ferrellgas, L.P. and the former members of Sable Environmental LLC and Sable SWD 2 LLC. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed May 1, 2014. | |||
# | 10.21 | Ferrell Companies, Inc. 2015 Deferred Appreciation Rights Plan, dated as of July 31, 2015. Incorporated by reference to Exhibit 10.23 to our Annual Report on Form 10-K filed September 29, 2015. | ||
# | 10.22 | Employment agreement dated July 10, 2015 by and between Ferrellgas, Inc. as the company and Alan C. Heitmann as the executive. Incorporated by reference to Exhibit 99.1 to our Current Report on Form 8-K filed July 15, 2015. | ||
# | 10.23 | Employment agreement dated as of May 29, 2015 by and between Ferrellgas, Inc. as the company and Julio E. Rios, II as the executive. Incorporated by reference to Exhibit 10.25 to our Annual Report on Form 10-K filed September 29, 2015. | ||
# | 10.24 | Employment agreement dated as of May 29, 2015 by and between Ferrellgas, Inc. as the company and Jeremy H. Gamboa as the executive. Incorporated by reference to Exhibit 10.26 to our Annual Report on Form 10-K filed September 29, 2015. |
# | 10.25 | Employment agreement dated as of May 28, 2015 by and between Ferrellgas, Inc. as the company and Thomas M. Van Buren as the executive. Incorporated by reference to Exhibit 10.27 to our Annual Report on Form 10-K filed September 29, 2015. | ||
+ | 10.26 | Transportation Logistics Agreement, dated May 29, 2015, by and between Ferrellgas Partners, L.P. and Bridger, L.L.C. Incorporated by reference to Exhibit 10.28 to our Annual Report on Form 10-K filed September 29, 2015. | ||
10.27 | Termination, Settlement and Release Agreement dated September 1, 2016, by and between Jamex, LLC, Jamex Marketing, LLC, Jamex Unitholder, LLC, and, together with Jamex and Jamex Parent, and James Ballengee, on the one hand, and Ferrellgas Partners, L.P. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed September 2, 2016. | |||
# | 10.28 | Agreement and Release dated as of October 21, 2015 by and between Ferrellgas, Inc., Ferrell Companies, Inc., Ferrellgas Partners, L.P., Ferrellgas, L.P. and Boyd H. McGathey as the executive. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed September 2, 2016. | ||
10.29 | Common Unit Repurchase Agreement, dated as of November 13, 2015, by and between Jamex Marketing, LLC and Ferrellgas Partners, L.P. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed November 13, 2015. | |||
10.30 | Secured Promissory Note dated September 1, 2016 between Jamex Marketing, LLC and Bridger Logistics, LLC. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed September 2, 2016. | |||
10.31 | Secured Revolving Promissory Note dated September 1, 2016 between Jamex Marketing, LLC and Ferrellgas, L.P. Incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed September 2, 2016. | |||
10.32 | Guaranty Agreement dated September 1, 2016 by James Ballengee and Bacchus Capital Trading, LLC in favor of Bridger Logistics, LLC. Incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K filed September 2, 2016. | |||
10.33 | Guaranty Agreement (Term Note) dated September 1, 2016 by the Guarantors party thereto in favor of Bridger Logistics, LLC. Incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K filed September 2, 2016. | |||
10.34 | Guaranty Agreement (Working Capital Note) dated September 1, 2016 by the Guarantors party thereto in favor of Ferrellgas, L.P. Incorporated by reference to Exhibit 10.6 to our Current Report on Form 8-K filed September 2, 2016. | |||
10.35 | Security Agreement dated September 1, 2016 by the Grantors party thereto in favor of Ferrellgas, L.P. as collateral agent for itself and for the benefit of Bridger Logistics, LLC. Incorporated by reference to Exhibit 10.7 to our Current Report on Form 8-K filed September 2, 2016. | |||
* | 10.36 | Agreement and release dated September 27, 2016 by and between Stephen L. Wambold and Ferrellgas, Inc., Ferrell Companies, Inc., Ferrellgas Partners, L.P. and Ferrellgas, L.P. | ||
* | 10.37 | Amendment No. 5 to Credit Agreement dated as of September 27, 2016, by and 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. | ||
* | 10.38 | Fourth Amendment to Receivables Purchase Agreement dated as of September 27, 2016, 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. | ||
* | 21.1 | List of subsidiaries | ||
* | 23.1 | Consent of Grant Thornton LLP, independent registered public accounting firm, for the certain use of its report appearing in the Annual Report on Form 10-K of Ferrellgas Partners, L.P. for the year ended July 31, 2016. | ||
* | 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. | |||
@ | Exhibits and Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A list of these Exhibits and Schedules is included in the index of each Purchase and Sale Agreement. Ferrellgas agrees to furnish a supplemental copy of any such omitted Exhibit or Schedule to the SEC upon request. | |||
+ | Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been filed separately with the SEC. |
1. | Ferrellgas agrees to pay to Employee the total gross amount of Nine Hundred Thousand Dollars ($900,000.00), less all applicable deductions, payable in bi-weekly installments at his last rate of base salary, commencing immediately until paid in full. |
2. | Ferrellgas agrees, on the eighth (8th) day after Employee signs this Agreement and Release, to cover the cost of Employee's COBRA continuation premium for fifteen (15) months, provided Employee enrolls in COBRA in accordance with the prescribed enrollment procedures and due date for the continuance of medical benefits. COBRA information will be sent to Employee by The Taben Group. |
3. | In exchange for the mutual promises made here, Employee agrees to forever RELEASE and DISCHARGE Ferrell, and Ferrell's officers, employees, directors and agents from any and all claims arising from his employment and/or cessation of employment and all debts, obligations, claims, demands, or causes of action of any kind whatsoever, known or unknown, in tort, contract, by statute or on any other basis, for equitable relief, compensatory, punitive or other damages, expenses (including attorney’s fees), reimbursements or costs of any kind, including, but not limited to, any and all claims, demands, rights and/or causes of action, including those which might arise out of allegations relating to a claimed breach of an alleged oral or written employment contract, or relating to purported employment discrimination or civil rights violations, such as, but not limited to, those arising under Title VII of the Civil Rights Act of 1964 and all amendments thereto, Executive Order 11246, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Equal Pay Act, the Rehabilitation Act of 1973, the Americans with Disabilities Act and/or any other applicable federal, state, or local employment discrimination statute, ordinance or common law doctrine which Employee might assert against Ferrell. Employee waives any right to recover in any lawsuit brought on his behalf by any government agency or other person. This provision specifically releases any claims by Employee pursuant to his executive employment agreement with Ferrell dated August 10, 2009. Except as specifically provided, this paragraph does not release any rights or obligations under this Agreement or any rights or Employee’s vested interest existing (as of the Effective Date) in stock appreciation rights in the Ferrell Companies, Inc., the Employee Stock Ownership Plan, the Employee’s 401(k) Investment Plan, or the Ferrell Companies, Inc. Supplemental Savings Plan, provided that unvested interests shall be canceled or forfeited and no further vesting shall occur. |
4. | Employee further promises not to make any derogatory, disparaging or false statements intended to harm the business or personal reputation of Ferrell, its directors, officers and employees. |
5. | Employee agrees that he will not, at any time, seek re-employment with Ferrell. |
6. | Employee agrees that the Ferrellgas Employee Agreement signed at the beginning of his employment, his Option Grantee Agreements and Executive Employment Agreement dated August 10, 2009, incorporated herein by reference, and/or any similar agreements, are enforceable agreements by Ferrell (not Employee), that his obligations under these agreements inure to the benefit of Ferrell, and that this Agreement and Release does not release him from any obligations under them or under any other contract which obligates Employee not to reveal the Confidential Information of Ferrellgas. |
7. | Employee understands and agrees that if he violates any promises, Ferrell may pursue all permissible remedies to redress such violations including seeking repayment of all payments made under this Agreement and Release and recovery of costs and reasonable attorney’s fees. |
8. | This agreement terminates Employee’s participation in any bonus performance plan maintained by Ferrellgas and no sums shall be due thereunder to Employee. |
9. | Employee agrees to remain available (upon reasonable prior notice) to consult with Ferrell in connection with any claims or litigation involving Ferrell and any transitional matters involving Employee’s prior duties with Ferrell. Ferrell shall reimburse Employee for his reasonable out-of-pocket expenses in connection with such consultation. |
10. | This agreement shall be governed by the laws of the state of Kansas, except with respect to the issuance, ownership and exercise of options or stock appreciation rights, which shall be governed by the state of Delaware. |
Stephen L. Wambold | ||
Date |
A. | The Borrower, the General Partner, the Administrative Agent and the Lenders entered into that certain Credit Agreement, dated as of November 2, 2009 (as amended, supplemented, or restated to the date hereof, the “Original Agreement” and, as amended by this Amendment, the “Credit Agreement”), for the purpose and consideration therein expressed, whereby the Lenders became obligated to make loans and other extensions of credit to the Borrower as therein provided; and |
B. | The Borrower, the General Partner, the Administrative Agent and the Lenders desire to amend the Original Agreement as set forth herein; |
068800 000218 18512284.7 | [Amendment No. 5] |
068800 000218 18512284.7 | 2 | [Amendment No. 5] |
Pricing Level | Consolidated Leverage Ratio | Eurodollar Rate/Standby Letters of Credit | Base Rate | Commercial Letters of Credit | Commitment Fee |
1 | <2.75:1 | 1.75% | 0.75% | 1.75% | 0.35% |
2 | ≥2.75:1 but <3.25:1 | 2.00% | 1.00% | 2.00% | 0.35% |
3 | ≥3.25:1 but <3.75:1 | 2.25% | 1.25% | 2.25% | 0.50% |
4 | ≥3.75:1 but <4.25:1 | 2.50% | 1.50% | 2.50% | 0.50% |
5 | ≥4.25:1 but <5.00:1 | 2.75% | 1.75% | 2.75% | 0.50% |
6 | ≥5.00:1 but < 5.50 to 1 | 3.00% | 2.00% | 3.00% | 0.50% |
7 | ≥5.50:1 | 3.50% | 2.50% | 3.50% | 0.50% |
068800 000218 18512284.7 | 3 | [Amendment No. 5] |
Pricing Level | Consolidated Leverage Ratio | Eurodollar Rate/Standby Letters of Credit | Base Rate | Commercial Letters of Credit | Commitment Fee |
1 | <2.75:1 | 1.75% | 0.75% | 1.75% | 0.35% |
2 | ≥2.75:1 but <3.25:1 | 2.00% | 1.00% | 2.00% | 0.35% |
3 | ≥3.25:1 but <3.75:1 | 2.25% | 1.25% | 2.25% | 0.50% |
4 | ≥3.75:1 but ≤4.25:1 | 2.50% | 1.50% | 2.50% | 0.50% |
5 | >4.25:1 | 2.75% | 1.75% | 2.75% | 0.50% |
068800 000218 18512284.7 | 4 | [Amendment No. 5] |
068800 000218 18512284.7 | 5 | [Amendment No. 5] |
068800 000218 18512284.7 | 6 | [Amendment No. 5] |
068800 000218 18512284.7 | 7 | [Amendment No. 5] |
068800 000218 18512284.7 | 8 | [Amendment No. 5] |
Fiscal Quarters Ended: | Maximum Ratio |
October 31, 2016 | 6.05 to 1.0 |
January 31, 2017 and April 30, 2017 | 5.95 to 1.0 |
July 31, 2017 | 6.05 to 1.0 |
October 31, 2017 and January 31, 2018 | 5.95 to 1.0 |
April 30, 2018 and at all times thereafter | 5.5 to 1.0 |
068800 000218 18512284.7 | 9 | [Amendment No. 5] |
068800 000218 18512284.7 | 10 | [Amendment No. 5] |
068800 000218 18512284.7 | 11 | [Amendment No. 5] |
068800 000218 18512284.7 | 12 | [Amendment No. 5] |
068800 000218 18512284.7 | [Amendment No. 5] |
FERRELLGAS, L.P. By: Ferrellgas, Inc., as its General Partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
FERRELLGAS, INC. | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
BANK OF AMERICA, N.A, as Administrative Agent | ||
By: | /s/ Priscilla Baker | |
Name: | Priscilla Baker | |
Title: | Assistant Vice President |
BANK OF AMERICA, N.A, as a Lender | ||
By: | /s/ Kimberly Miller | |
Name: | Kimberly Miller | |
Title: | Associate |
WELLS FARGO BANK, N.A | ||
By: | /s/ David Brooks | |
Name: | David Brooks | |
Title: | Director |
JPMORGAN CHASE BANK, N.A. | ||
By: | /s/ Kenneth Fatur | |
Name: | Kenneth Fatur | |
Title: | Managing Director |
FIFTH THIRD BANK | ||
By: | /s/ Stephen Watts | |
Name: | Stephen Watts | |
Title: | VP |
BMO HARRIS BANK N.A. | ||
By: | /s/ David Hunt | |
Name: | David Hunt | |
Title: | VP | |
By: | /s/ Chad Rock | |
Name: | Chad Rock | |
Title: | Director |
THE PRIVATEBANK & TRUST COMPANY | ||
By: | /s/ Zack Strube | |
Name: | Zack Strube | |
Title: | Associate Managing Director |
SUNTRUST BANK | ||
By: | /s/ Yann Pirio | |
Name: | Yann Pirio | |
Title: | Managing Director |
CAPITAL ONE, N.A. | ||
By: | /s/ Gina Monette | |
Name: | Gina Monette | |
Title: | Vice President |
PNC BANK, NATIONAL ASSOCIATION | ||
By: | /s/ Madeline L. Moran | |
Name: | Madeline L. Moran | |
Title: | Assistant Vice President |
U.S. BANK NATIONAL ASSOCIATION | ||
By: | /s/ Tim Landro | |
Name: | Tim Landro | |
Title: | Vice President |
FERRELLGAS, INC. BLUE RHINO GLOBAL SOURCING, INC. | ||
By: | /s/ Alan C. Heitmann | |
Alan C. Heitmann | ||
Executive Vice President, Chief Financial Officer & Treasurer |
BRIDGER ENVIRONMENTAL, LLC BRIDGER LOGISTICS, LLC By: Ferrellgas, L.P., its sole member By: Ferrellgas, Inc., its general partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
BRIDGER ENERGY, LLC BRIDGER LAKE, LLC BRIDGER MARINE, LLC BRIDGER ADMINISTRATIVE SERVICES II, LLC BRIDGER REAL PROPERTY, LLC BRIDGER TRANSPORTATION, LLC BRIDGER LEASING, LLC BRIDGER STORAGE, LLC BRIDGER RAIL SHIPPING, LLC By: Bridger Logistics, LLC, its sole member By: Ferrellgas, L.P., its sole member By: Ferrellgas, Inc., its general partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
J.J. ADDISON PARTNERS, LLC J.J. KARNACK PARTNERS, LLC J.J. LIBERTY, LLC By: Bridger Real Property, LLC, its sole member By: Bridger Logistics, LLC, its sole member By: Ferrellgas, L.P., its sole member By: Ferrellgas, Inc., its general partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
BRIDGER TERMINALS, LLC By: Bridger Logistics, LLC, its sole member By: Ferrellgas, L.P., its sole member By: Ferrellgas, Inc., its general partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
BRIDGER SWAN RANCH, LLC By: Bridger Terminals, LLC, its sole member By: Bridger Logistics, LLC, its sole member By: Ferrellgas, L.P., its sole member By: Ferrellgas, Inc., its general partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
SOUTH C&C TRUCKING, LLC By: Bridger Logistics, LLC, its sole manager By: Ferrellgas, L.P., its sole member By: Ferrellgas, Inc., its general partner | ||
By: | /s/ Alan C. Heitmann | |
Name: | Alan C. Heitmann | |
Title: | Executive Vice President, Chief Financial Officer & Treasurer |
Fiscal Quarters Ended: | Maximum Ratio |
October 31, 2016 | 6.05 to 1.0 |
January 31, 2017 and April 30, 2017 | 5.95 to 1.0 |
July 31, 2017 | 6.05 to 1.0 |
October 31, 2017 and January 31, 2018 | 5.95 to 1.0 |
April 30, 2018 and at all times thereafter | 5.5 to 1.0 |
Pricing Level | Consolidated Leverage Ratio | Applicable Margin |
1 | <5.00:1 | 1.35% |
2 | ≥5.00:1 but < 5.50 to 1 | 1.45% |
3 | ≥5.50:1 | 1.65% |
Title: | Executive Vice President and |
Title: | Executive Vice President and Chief Financial Officer |
Name: | Eero Maki |
Title: | Senior Vice President |
Name: | Emily Shields |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
1. | I have reviewed this report on Form 10-K for the year ended July 31, 2016 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. |
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Accounts receivable pledged as collateral | $ 106,464,000 | $ 123,791,000 |
Allowance for doubtful accounts | $ 5,067,000 | $ 4,816,000 |
Common unitholders, units outstanding | 98,002,665 | 100,376,789 |
General partner unitholder, units outstanding | 989,926 | 1,013,907 |
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 | $ 106,464,000 | $ 123,791,000 |
Allowance for doubtful accounts | $ 5,067,000 | $ 4,816,000 |
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 |
Consolidated Statements Of Earnings - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Revenues: | |||
Propane and other gas liquids sales | $ 1,202,368,000 | $ 1,657,016,000 | $ 2,147,343,000 |
Midstream operations | 625,238,000 | 107,189,000 | 7,435,000 |
Other | 211,761,000 | 260,185,000 | 251,082,000 |
Total revenues | 2,039,367,000 | 2,024,390,000 | 2,405,860,000 |
Costs and expenses: | |||
Cost of product sold - propane and other gas liquids sales | 564,433,000 | 977,224,000 | 1,456,388,000 |
Cost of sales - midstream operations | 471,234,000 | 76,590,000 | 1,970,000 |
Cost of product sold - other | 126,237,000 | 170,697,000 | 156,182,000 |
Operating expense | 459,178,000 | 437,457,000 | 451,528,000 |
Depreciation and amortization expense | 150,513,000 | 98,579,000 | 84,202,000 |
General and administrative expense | 56,635,000 | 77,238,000 | 65,156,000 |
Equipment lease expense | 28,833,000 | 24,273,000 | 17,745,000 |
Non-cash employee stock ownership plan compensation charge | 27,595,000 | 24,713,000 | 21,789,000 |
Asset Impairment Charges | 658,118,000 | 0 | 0 |
Loss on disposal of assets | 30,835,000 | 7,099,000 | 6,486,000 |
Operating income (loss) | (534,244,000) | 130,520,000 | 144,414,000 |
Interest expense | (137,937,000) | (100,396,000) | (86,502,000) |
Loss on extinguishment of debt | 0 | 0 | (21,202,000) |
Other income (expense), net | 110,000 | (350,000) | (479,000) |
Earnings (loss) before income taxes | (672,071,000) | 29,774,000 | 36,231,000 |
Income tax expense | (36,000) | (315,000) | 2,516,000 |
Net earnings (loss) | (672,035,000) | 30,089,000 | 33,715,000 |
Net earnings (loss) attributable to noncontrolling interest | (6,620,000) | 469,000 | 504,000 |
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (665,415,000) | 29,620,000 | 33,211,000 |
Less: General partner's interest in net earnings (loss) | (6,654,000) | 296,000 | 332,000 |
Common unitholders' interest in net earnings (loss) | $ (658,761,000) | $ 29,324,000 | $ 32,879,000 |
Basic and diluted net earnings (loss) per common unitholders' interest | $ (6.68) | $ 0.35 | $ 0.41 |
Cash distributions declared per common unit | $ 2.05 | $ 2.00 | $ 2.00 |
Ferrellgas Partners Finance Corp. [Member] | |||
Costs and expenses: | |||
General and administrative expense | $ 2,262 | $ 2,348 | $ 2,149 |
Net earnings (loss) | (2,262) | (2,348) | (2,149) |
Ferrellgas, L.P. [Member] | |||
Revenues: | |||
Propane and other gas liquids sales | 1,202,368,000 | 1,657,016,000 | 2,147,343,000 |
Midstream operations | 625,238,000 | 107,189,000 | 7,435,000 |
Other | 211,761,000 | 260,185,000 | 251,082,000 |
Total revenues | 2,039,367,000 | 2,024,390,000 | 2,405,860,000 |
Costs and expenses: | |||
Cost of product sold - propane and other gas liquids sales | 564,433,000 | 977,224,000 | 1,456,388,000 |
Cost of sales - midstream operations | 471,234,000 | 76,590,000 | 1,970,000 |
Cost of product sold - other | 126,237,000 | 170,697,000 | 156,182,000 |
Operating expense | 459,178,000 | 437,353,000 | 451,551,000 |
Depreciation and amortization expense | 150,513,000 | 98,579,000 | 84,202,000 |
General and administrative expense | 56,115,000 | 77,238,000 | 65,156,000 |
Equipment lease expense | 28,833,000 | 24,273,000 | 17,745,000 |
Non-cash employee stock ownership plan compensation charge | 27,595,000 | 24,713,000 | 21,789,000 |
Asset Impairment Charges | 658,118,000 | 0 | 0 |
Loss on disposal of assets | 30,835,000 | 7,099,000 | 6,486,000 |
Operating income (loss) | (533,724,000) | 130,624,000 | 144,391,000 |
Interest expense | (121,818,000) | (84,227,000) | (70,332,000) |
Loss on extinguishment of debt | 0 | 0 | (21,202,000) |
Other income (expense), net | 110,000 | (354,000) | (479,000) |
Earnings (loss) before income taxes | (655,432,000) | 46,043,000 | 52,378,000 |
Income tax expense | (41,000) | (384,000) | 2,471,000 |
Net earnings (loss) | (655,391,000) | 46,427,000 | 49,907,000 |
Ferrellgas Finance Corp. [Member] | |||
Costs and expenses: | |||
General and administrative expense | 7,053 | 4,108 | 5,289 |
Net earnings (loss) | $ (7,053) | $ (4,108) | $ (5,289) |
Consolidated Statements Of Partners' Capital (Deficit) - USD ($) |
Total |
Accumulated Other Comprehensive Income (Loss) |
Total Ferrellgas Partners, L.P. Partners' Capital (Deficit) [Member] |
Non-Controlling Interest [Member] |
Common Unitholders [Member] |
General Partner Unitholder [Member] |
Ferrellgas Partners Finance Corp. [Member] |
Ferrellgas Partners Finance Corp. [Member]
Common Stock [Member]
|
Ferrellgas Partners Finance Corp. [Member]
Additional Paid-in Capital [Member]
|
Ferrellgas Partners Finance Corp. [Member]
Accumulated deficit [Member]
|
Ferrellgas, L.P. [Member] |
Ferrellgas, L.P. [Member]
Accumulated Other Comprehensive Income (Loss)
|
Ferrellgas, L.P. [Member]
Common Unitholders [Member]
|
Ferrellgas, L.P. [Member]
General Partner Unitholder [Member]
|
Ferrellgas Finance Corp. [Member] |
Ferrellgas Finance Corp. [Member]
Common Stock [Member]
|
Ferrellgas Finance Corp. [Member]
Additional Paid-in Capital [Member]
|
Ferrellgas Finance Corp. [Member]
Accumulated deficit [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Partners' capital balance (in shares) at Jul. 31, 2013 | 79,072,800 | 798,700 | ||||||||||||||||
Partners' capital balance at Jul. 31, 2013 | $ (86,627,000) | $ 1,697,000 | $ (87,596,000) | $ 969,000 | $ (28,931,000) | $ (60,362,000) | $ 94,476,000 | $ 1,728,000 | $ 91,810,000 | $ 938,000 | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | 46,297,000 | 45,829,000 | 468,000 | 45,370,000 | 459,000 | 46,297,000 | 45,829,000 | 468,000 | ||||||||||
Distributions | (162,728,000) | (160,925,000) | (1,803,000) | $ (159,316,000) | $ (1,609,000) | (178,426,000) | (176,623,000) | (1,803,000) | ||||||||||
Common units issued in connection with acquisitions - shares | 62,600 | 600 | ||||||||||||||||
Common units issued in connection with acquisitions - value | 1,530,000 | 1,515,000 | 15,000 | $ 1,500,000 | $ 15,000 | 1,515,000 | 1,500,000 | 15,000 | ||||||||||
Exercise of common unit options - shares | 52,000 | 500 | ||||||||||||||||
Exercise of common unit options - value | 617,000 | 611,000 | 6,000 | $ 605,000 | $ 6,000 | |||||||||||||
Common units issued in offering, net of issuance costs - shares | 2,040,800 | 20,700 | ||||||||||||||||
Common units issued in offering, net of issuance costs - value | 51,020,000 | 50,505,000 | 515,000 | $ 50,000,000 | $ 505,000 | |||||||||||||
Net earnings (loss) | 33,715,000 | 33,211,000 | 504,000 | $ 32,879,000 | $ 332,000 | $ (2,149) | $ 0 | $ (2,149) | 49,907,000 | (49,403,000) | (504,000) | $ (5,289) | $ 0 | $ (5,289) | ||||
Other comprehensive income (loss) | 4,530,000 | 4,484,000 | 4,484,000 | 46,000 | 4,530,000 | 4,530,000 | ||||||||||||
Partners' capital balance (in shares) at Jul. 31, 2014 | 81,228,200 | 820,500 | ||||||||||||||||
Partners' capital balance at Jul. 31, 2014 | (111,646,000) | 6,181,000 | (112,366,000) | 720,000 | $ (57,893,000) | $ (60,654,000) | 69,925,000 | 6,258,000 | 63,024,000 | 643,000 | ||||||||
Stockholders' equity balance (in shares) at Jul. 31, 2013 | 1,000 | 1,000 | ||||||||||||||||
Stockholders' equity balance at Jul. 31, 2013 | 969 | $ 1,000 | 12,957 | (12,988) | 1,100 | $ 1,000 | 43,870 | (43,770) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Capital contribution | 2,149 | 2,149 | 0 | 5,289 | 5,289 | 0 | ||||||||||||
Cash contributed by Ferrellgas Partners and general partner | 51,626,000 | 51,105,000 | 521,000 | |||||||||||||||
Stockholders' equity balance (in shares) at Jul. 31, 2014 | 1,000 | 1,000 | ||||||||||||||||
Stockholders' equity balance at Jul. 31, 2014 | 969 | $ 1,000 | 15,106 | (15,137) | 1,100 | $ 1,000 | 49,159 | (49,059) | ||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | 50,695,000 | 50,183,000 | 512,000 | 49,681,000 | 502,000 | 50,695,000 | 50,183,000 | 512,000 | ||||||||||
Distributions | (173,244,000) | (167,105,000) | (6,139,000) | $ (165,433,000) | $ (1,672,000) | (607,875,000) | (601,736,000) | (6,139,000) | ||||||||||
Common units issued in connection with acquisitions - shares | 11,334,200 | 114,500 | ||||||||||||||||
Common units issued in connection with acquisitions - value | 265,639,000 | 265,608,000 | 31,000 | $ 262,952,000 | $ 2,656,000 | 833,875,000 | 825,452,000 | 8,423,000 | ||||||||||
Exercise of common unit options - shares | 5,800 | 100 | ||||||||||||||||
Exercise of common unit options - value | 92,000 | 92,000 | 0 | $ 91,000 | $ 1,000 | |||||||||||||
Common units issued in offering, net of issuance costs - shares | 7,808,600 | 78,900 | ||||||||||||||||
Common units issued in offering, net of issuance costs - value | 191,660,000 | 182,837,000 | 8,823,000 | $ 181,008,000 | $ 1,829,000 | |||||||||||||
Net earnings (loss) | 30,089,000 | 29,620,000 | 469,000 | $ 29,324,000 | $ 296,000 | (2,348) | 0 | (2,348) | 46,427,000 | 45,958,000 | 469,000 | (4,108) | 0 | (4,108) | ||||
Other comprehensive income (loss) | (45,576,000) | (45,115,000) | (45,115,000) | (461,000) | (45,576,000) | (45,576,000) | ||||||||||||
Partners' capital balance (in shares) at Jul. 31, 2015 | 100,376,800 | 1,014,000 | ||||||||||||||||
Partners' capital balance at Jul. 31, 2015 | 207,709,000 | (38,934,000) | 203,754,000 | 3,955,000 | $ 299,730,000 | $ (57,042,000) | 390,126,000 | (39,318,000) | 425,105,000 | 4,339,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Capital contribution | 2,379 | 2,379 | 0 | 4,108 | 4,108 | 0 | ||||||||||||
Cash contributed by Ferrellgas Partners and general partner | 42,655,000 | 42,224,000 | 431,000 | |||||||||||||||
Stockholders' equity balance (in shares) at Jul. 31, 2015 | 1,000 | 1,000 | ||||||||||||||||
Stockholders' equity balance at Jul. 31, 2015 | 1,000 | $ 1,000 | 17,485 | (17,485) | 1,100 | $ 1,000 | 53,267 | (53,167) | ||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||||
Contributions in connection with non-cash ESOP and stock and unit-based compensation charges | 36,919,000 | 36,546,000 | 373,000 | 36,181,000 | 365,000 | 36,919,000 | 36,546,000 | 373,000 | ||||||||||
Distributions | $ (206,883,000) | (204,160,000) | (2,723,000) | $ (202,118,000) | $ (2,042,000) | (269,541,000) | (266,818,000) | (2,723,000) | ||||||||||
Partners' Capital Account, Units, Treasury Units Purchased | 2,400,000 | (2,385,700) | (24,200) | |||||||||||||||
Partners' Capital Account, Treasury Units, Purchased | $ (46,432,000) | (46,432,000) | 0 | $ (45,968,000) | $ (464,000) | |||||||||||||
Common units issued in connection with acquisitions - value | (284,000) | (284,000) | 0 | |||||||||||||||
Exercise of common unit options - shares | 11,600 | 100 | ||||||||||||||||
Exercise of common unit options - value | 184,000 | 184,000 | 0 | $ 182,000 | $ 2,000 | |||||||||||||
Net earnings (loss) | (672,035,000) | (665,415,000) | (6,620,000) | $ (658,761,000) | $ (6,654,000) | (2,262) | 0 | (2,262) | (655,391,000) | (648,771,000) | (6,620,000) | (7,053) | 0 | (7,053) | ||||
Other comprehensive income (loss) | 28,758,000 | 28,466,000 | 28,466,000 | 292,000 | 28,758,000 | 28,758,000 | ||||||||||||
Partners' capital balance (in shares) at Jul. 31, 2016 | 98,002,700 | 989,900 | ||||||||||||||||
Partners' capital balance at Jul. 31, 2016 | $ (651,780,000) | $ (10,468,000) | $ (647,057,000) | $ (4,723,000) | $ (570,754,000) | $ (65,835,000) | $ (469,413,000) | $ (10,560,000) | $ (454,222,000) | $ (4,631,000) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Capital contribution | 2,262 | 2,262 | 0 | 8,553 | 8,553 | 0 | ||||||||||||
Stockholders' equity balance (in shares) at Jul. 31, 2016 | 1,000 | 1,000 | ||||||||||||||||
Stockholders' equity balance at Jul. 31, 2016 | $ 1,000 | $ 1,000 | $ 19,747 | $ (19,747) | $ 2,600 | $ 1,000 | $ 61,820 | $ (60,220) |
Consolidated Statements Of Cash Flows Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Proceeds from equity offering, net of issuance costs of $648, $0 and $0 for the years ended July 31, 2014, 2013 and 2012, respectively | $ 0 | $ 648 | $ 0 |
Payments for Repurchase of Equity | $ 34 | $ 0 | $ 0 |
Partnership Organization And Formation |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 | |||||||||
Partnership Organization And Formation | Partnership organization and formation Ferrellgas Partners, L.P. (“Ferrellgas Partners”) was formed on April 19, 1994, and 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 July 31, 2016, Ferrell Companies Inc. beneficially owns 22.8 million of Ferrellgas Partners’ outstanding common units and also owns 100% of Ferrellgas, Inc. Ferrellgas, Inc. (the "general partner") retains 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. As general partner, it performs all management functions required by Ferrellgas. Creditors of the operating partnership have no recourse with regards to Ferrellgas Partners. 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 any debt issued by Ferrellgas Partners. The operating partnership is the only operating subsidiary of Ferrellgas Partners. Ferrellgas is engaged in the following primary businesses:
|
||||||||
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 Partnership contributed $1,000 to the Finance Corp. on April 8, 1996 in exchange for 1,000 shares of common stock. 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. was formed on April 22, 1994, and is a Delaware limited partnership. 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 Partners and Ferrellgas, L.P. are governed by their respective partnership agreements. These agreements contain specific provisions for the allocation of net earnings and loss to each of the partners for purposes of maintaining the partner capital accounts. 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 any debt issued by Ferrellgas, L.P. Ferrellgas, L.P. is engaged in the following primary businesses:
|
||||||||
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 Partnership contributed $1,000 to the Finance Corp. on January 24, 2003 in exchange for 1,000 shares of common stock. The Finance Corp. has nominal assets, does not conduct any operations and has no employees. |
Summary Of Significant Accounting Policies |
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Significant Accounting Policies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 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 assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. (2) Principles of consolidation: The accompanying consolidated financial statements present the consolidated financial position, results of operations and cash flows of Ferrellgas Partners, its wholly-owned subsidiary, Ferrellgas Partners Finance Corp., and the operating partnership, its majority-owned subsidiary, after elimination of all intercompany accounts and transactions. The accounts of Ferrellgas Partners’ majority-owned subsidiary are included based on the determination that the operating partnership is a variable interest entity for whom Ferrellgas Partners has no ability through voting rights or similar rights to make decisions and thus does not have the power to direct the activities of the operating partnership that most significantly impact economic performance. However, Ferrellgas Partners has the obligation to absorb the losses of and the right to receive benefits from the operating partnership that are significant to the operating partnership. Furthermore, assets and liabilities of Ferrellgas Partners consist substantially of the operating partnership. The operating partnership includes the accounts of its wholly-owned subsidiaries. The general partner’s approximate 1% general partner interest in the operating partnership is accounted for as a noncontrolling interest. The wholly-owned consolidated subsidiary of the operating partnership, Ferrellgas Receivables, LLC (“Ferrellgas Receivables”), is a special purpose entity that has agreements with the operating partnership to securitize, on an ongoing basis, a portion of its trade accounts receivable. (3) Supplemental cash flow information: For purposes of the consolidated statements of cash flows, Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Certain cash flow and significant non-cash activities are presented below:
(4) Fair value measurements: Ferrellgas measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.
(5) Accounts receivable securitization: Through its wholly-owned and consolidated subsidiary Ferrellgas Receivables, Ferrellgas has agreements to securitize, on an ongoing basis, a portion of its trade accounts receivable. (6) Inventories: Inventories are stated at the lower of cost or market using weighted average cost and actual cost methods. (7) Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and routine repairs are expensed as incurred. Ferrellgas capitalizes computer software, equipment replacement and betterment expenditures that upgrade, replace or completely rebuild major mechanical components and extend the original useful life of the equipment. Depreciation is calculated using the straight-line method based on the estimated useful lives of the assets ranging from two to 30 years. Ferrellgas, using its best estimates based on reasonable and supportable assumptions and projections, tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of its assets or asset groups might not be recoverable. The recoverability tests for property, plant and equipment are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the asset group. (8) Goodwill: Ferrellgas records goodwill as the excess of the cost of acquisitions over the fair value of the related net assets at the date of acquisition. Ferrellgas tests goodwill for impairment annually during the second quarter or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas has determined that it has five reporting units for goodwill impairment testing purposes. As of July 31, 2016, two of these reporting units contain goodwill that is subject to at least an annual assessment for impairment by applying a fair-value-based test. Under this test, the carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the date of the evaluation on a specific identification basis. To the extent a reporting unit’s carrying value exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the second step of the impairment test must be performed. In the second step, the implied fair value of goodwill is determined by assigning the fair value of a reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for that excess. Ferrellgas completed its last annual goodwill impairment test on January 31, 2016 and did not incur an impairment loss. (9) Intangible assets: Intangible assets with finite useful lives, consisting primarily of customer related assets, non-compete agreements, permits, favorable lease arrangements and patented technology, are stated at cost, net of accumulated amortization calculated using the straight-line method over periods ranging from two to 15 years. When necessary, intangible assets’ useful lives are revised and the impact on amortization reflected on a prospective basis. Trade names and trademarks have indefinite lives, are not amortized, and are stated at cost. Ferrellgas tests finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of these assets or asset groups might not be recoverable. Ferrellgas tests indefinite-lived intangible assets for impairment annually on January 31 or more frequently if circumstances dictate. The recoverability tests for definite-lived intangible assets are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the asset group. (10) Derivative instruments and hedging activities: Commodity and Transportation Fuel Price Risk. Ferrellgas’ overall objective for entering into commodity based derivative contracts, including commodity options and swaps, is to hedge a portion of its exposure to market fluctuations in propane, gasoline, diesel and crude oil prices. Ferrellgas’ risk management activities primarily attempt to mitigate price risks related to the purchase, storage, transport and sale of propane and crude oil generally in the contract and spot markets from major domestic energy companies on a short-term basis. Ferrellgas attempts to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts. Additionally, Ferrellgas risk management activities attempt to mitigate price risks related to the purchase of gasoline and diesel fuel for use in the transport of propane from retail fueling stations through the use of financial derivative instruments. Ferrellgas’ risk management strategy involves taking positions in the forward or financial markets that are equal and opposite to Ferrellgas’ 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 Ferrellgas’ gains or losses in the physical product markets are offset by its losses or gains in the forward or financial markets. The propane related financial derivatives are designated as cash flow hedges. The gasoline and diesel related financial derivatives are not formally designated and documented as a hedge of exposure to fluctuations in the market price of fuel. Ferrellgas’ risk management activities may include the use of financial derivative instruments including, but not limited to, swaps, options, and futures to seek protection from adverse price movements and to minimize potential losses. Ferrellgas enters 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. All of Ferrellgas’ financial derivative instruments are reported on the consolidated balance sheets at fair value. Ferrellgas also enters 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 Ferrellgas’ financial statements until settled. On the date that derivative contracts are entered into, other than those designated as normal purchases or normal sales, Ferrellgas makes a determination as to whether the derivative instrument qualifies for designation as a hedge. These financial instruments are formally designated and documented as a hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transaction. Because of the high degree of correlation between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the anticipated cash flows of the underlying exposure being hedged. Since the fair value of these derivatives fluctuates over their contractual lives, their fair value amounts should not be viewed in isolation, but rather in relation to the anticipated cash flows of the underlying hedged transaction and the overall reduction in Ferrellgas’ risk relating to adverse fluctuations in propane prices. Ferrellgas formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the anticipated cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is recognized in “Cost of product sold - propane and other gas liquids sales” in the consolidated statements of operations. Financial instruments formally designated and documented as a hedge of a specific underlying exposure are recorded gross at fair value as either “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities”, or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in other comprehensive income. Financial instruments not formally designated and documented as a hedge of a specific underlying exposure are recorded at fair value as “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities”, or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in "Cost of sales - midstream operations" and "Operating expense" on the consolidated statements of operations. Interest Rate Risk. Ferrellgas’ overall objective for entering into interest rate derivative contracts, including swaps, is to manage its exposure to interest rate risk associated with its fixed rate senior notes and its floating rate borrowings from both the secured credit facility and the accounts receivable securitization facility. Fluctuations in interest rates subject Ferrellgas to interest rate risk. Decreases in interest rates increase the fair value of Ferrellgas’ fixed rate debt, while increases in interest rates subject Ferrellgas to the risk of increased interest expense related to its variable rate borrowings. Ferrellgas enters into fair value hedges to help reduce its fixed interest rate risk. Interest rate swaps are used to hedge the exposure to changes in the fair value of fixed rate debt due to changes in interest rates. Fixed rate debt that has been designated as being hedged is recorded at fair value while the fair value of interest rate derivatives that are considered fair value hedges are classified as “Prepaid expenses and other current assets”, “Other assets, net”, Other current liabilities” or as “Other liabilities” on the consolidated balance sheets. Changes in the fair value of fixed rate debt and any related fair value hedges are recognized as they occur in “Interest expense” on the consolidated statements of operations. Ferrellgas enters into cash flow hedges to help reduce its variable interest rate risk. Interest rate swaps are used to hedge the risk associated with rising interest rates and their effect on forecasted interest payments related to variable rate borrowings. These interest rate swaps are designated as cash flow hedges. Thus, the effective portions of changes in the fair value of the hedges are recorded in “Prepaid expenses and other current assets”, “Other assets, net”, “Other current liabilities” or as “Other liabilities” with an offsetting entry to “Other comprehensive income” at interim periods and are subsequently recognized as interest expense in the consolidated statement of earnings when the forecasted transaction impacts earnings. Changes in the fair value of any cash flow hedges that are considered ineffective are recognized as interest expense on the consolidated statement of earnings as they occur. (11) Revenue recognition: Revenues from Ferrellgas' propane and related equipment sales segment are recognized at the time product is delivered with payments generally due 30 days after receipt. Amounts are considered past due after 30 days. Ferrellgas determines accounts receivable allowances based on management’s assessment of the creditworthiness of the customers and other collection actions. Ferrellgas offers “even pay” billing programs that can create customer deposits or advances. Revenue is recognized from these customer deposits or advances to customers at the time product is delivered. Other revenues, which include revenue from the sale of propane appliances and equipment is recognized at the time of delivery or installation. Ferrellgas recognizes shipping and handling revenues and expenses for sales of propane, appliances and equipment at the time of delivery or installation. Shipping and handling revenues are included in the price of propane charged to customers, and are classified as revenue. Revenues from annually billed, non-refundable propane tank rentals are recognized in “Revenues: other” on a straight-line basis over one year. Revenues from Ferrellgas' midstream operations - crude oil logistics segment include crude oil sales, pipeline tariffs, trucking fees, rail throughput fees, pipeline management services, leasing, throughput, and storage; all items deemed as being associated with the transportation of crude oil. These revenues are recognized upon completion of the related service or delivery of product. (12) Shipping and handling expenses: Shipping and handling expenses related to delivery personnel, vehicle repair and maintenance and general liability expenses are classified within “Operating expense” in the consolidated statements of operations. Depreciation expenses on delivery vehicles Ferrellgas owns are classified within “Depreciation and amortization expense.” Delivery vehicles and distribution technology leased by Ferrellgas are classified within “Equipment lease expense.” See Note F – Supplemental financial statement information – for the financial statement presentation of shipping and handling expenses. (13) Cost of sales: “Cost of sales – propane and other gas liquids sales” includes all costs to acquire propane and other gas liquids, the costs of storing and transporting inventory prior to delivery to Ferrellgas’ customers, the results from risk management activities to hedge related price risk and the costs of materials related to the refurbishment of Ferrellgas’ portable propane tanks. "Cost of sales - midstream operations" includes all costs incurred to purchase and transport crude oil, including the costs of terminaling and transporting crude oil prior to delivery to customers. “Cost of sales – other” primarily includes costs related to the sale of propane appliances and equipment. (14) Operating expenses: “Operating expense” primarily includes the personnel, vehicle, delivery, handling, plant, office, selling, marketing, credit and collections and other expenses related to the retail distribution of propane and related equipment and supplies. Within midstream operations, "Operating expense" includes plant, office, selling, marketing, credit and collections and other expense. (15) General and administrative expenses: “General and administrative expense” primarily includes personnel and incentive expense related to executives, and employees and other overhead expense related to centralized corporate functions. (16) Stock-based plans: Ferrell Companies, Inc. Incentive Compensation Plans (“ICPs”) The ICPs are not Ferrellgas stock-compensation plans; however, in accordance with Ferrellgas’ partnership agreements, all Ferrellgas employee-related costs incurred by Ferrell Companies are allocated to Ferrellgas. As a result, Ferrellgas incurs a non-cash compensation charge from Ferrell Companies. During the years ended July 31, 2016, 2015 and 2014, the portion of the total non-cash compensation charge relating to the ICPs was $9.3 million, $25.6 million and $24.5 million, respectively. Ferrell Companies is authorized to issue up to 9.25 million stock appreciation rights (“SARs”) that are based on shares of Ferrell Companies common stock. The SARs were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The SARs awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. Effective July 31, 2015, Ferrell Companies is authorized to issue deferred appreciation right ("DARs") awards that are based on shares of Ferrell Companies common stock. The DAR awards were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The DAR awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. (17) Income taxes: Ferrellgas Partners is a publicly-traded master limited partnership with one subsidiary that is a taxable corporation. The operating partnership is a limited partnership with three subsidiaries that are taxable corporations. Partnerships are generally not subject to federal income tax, although publicly-traded partnerships are treated as corporations for federal income tax purposes and therefore subject to Federal income tax unless a qualifying income test is satisfied. If this qualifying income test is satisfied, the publicly-traded partnership will be treated as a partnership for Federal income tax purposes. Based on Ferrellgas’ calculations, Ferrellgas Partners satisfies the qualifying income test. As a result, except for the taxable corporations, Ferrellgas Partners’ earnings or losses for Federal income tax purposes are included in the tax returns of the individual partners, Ferrellgas Partners’ unitholders. Accordingly, the accompanying consolidated financial statements of Ferrellgas Partners reflect federal income taxes related to the above mentioned taxable corporations and certain states that allow for income taxation of partnerships. Net earnings for financial statement purposes may differ significantly from taxable income reportable to Ferrellgas Partners unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities, the taxable income allocation requirements under Ferrellgas Partners’ partnership agreement and differences between Ferrellgas Partners' financial reporting year end and its calendar tax year end. Income tax expense (benefit) consisted of the following:
Deferred taxes consisted of the following:
(18) Sales taxes: Ferrellgas accounts for the collection and remittance of sales tax on a net tax basis. As a result, these amounts are not reflected in the consolidated statements of operations. (19) Net earnings (loss) per common unitholders’ interest: Net earnings (loss) per common unitholders’ interest is computed by dividing “Net earnings (loss) attributable to Ferrellgas Partners, L.P.,” after deducting the general partner's 1% interest, by the weighted average number of outstanding common units and the dilutive effect, if any, of outstanding unit options. See Note P – Net earnings (loss) per common unitholders’ interest – for further discussion about these calculations. (20) Loss contingencies: In the normal course of business, Ferrellgas is involved in various claims and legal proceedings. Ferrellgas records a liability for such matters when it is probable that a loss has been incurred and the amounts can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. Legal costs associated with these loss contingencies are expensed as incurred. (21) Assets held for sale: Assets held for sale represent trucks that have met the criteria of “held for sale” accounting. During the first quarter of fiscal 2016, Ferrellgas committed to a plan to sell certain trucks held by the Midstream operations - crude oil logistics segment. These assets were reclassified from "Vehicles, including transport trailers" to Assets held for sale in the balance sheet as of October 31, 2015. Ferrellgas ceased depreciation on these assets during October 2015. Assets held for sale are recorded at the lower of the carrying amount or fair value less costs to sell. See Note F – Supplemental financial statement information – for further discussion of these held for sale assets. (22) Debt issuance costs: In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. At July 31, 2016, we adopted this ASU, which requires certain debt issuance costs to be reported as a reduction to the carrying amount of the long-term debt. Ferrellgas has applied this ASU retrospectively to its July 31, 2015 consolidated balance sheet. Additionally, in August 2015, the FASB issued ASU No. 2015-15, which provides additional guidance related to the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. An entity may still present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Ferrellgas will continue to report such debt issuance costs as other assets. The following table compares the other asset and long-term debt balances as currently reported to the amounts that would have been reported under the old accounting standard. See Note I – Debt – for further discussion of debt issuance costs.
(23) New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board (IASB) to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Early application is not permitted. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. FASB Accounting Standard Update No. 2015-02 In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, which provides additional guidance on the consolidation of limited partnerships and on the evaluation of variable interest entities. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-06 In September 2015, the FASB issued ASU 2015-06, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments, which requires all entities to record the effects on earnings, if any, of changes in provisional amounts for items in a business combination in the same period in which the adjustment amounts are determined. The requirement to retrospectively account for the adjustments is eliminated by this amendment. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 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 assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. (2) Principles of consolidation: The accompanying consolidated financial statements present the consolidated financial position, results of operations and cash flows of Ferrellgas, L.P. and its subsidiaries after elimination of all intercompany accounts and transactions. Ferrellgas, L.P. consolidates the following wholly-owned entities: Bridger Logistics, LLC, Sable Environmental, LLC, Sable SWD 2, LLC, Blue Rhino Global Sourcing, Inc., Blue Rhino Canada, Inc., Ferrellgas Real Estate, Inc., Ferrellgas Finance Corp. and Ferrellgas Receivables, LLC (“Ferrellgas Receivables”), a special purpose entity that has agreements with Ferrellgas, L.P. to securitize, on an ongoing basis, a portion of its trade accounts receivable. (3) Supplemental cash flow information: For purposes of the 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:
(4) Fair value measurements: Ferrellgas, L.P. measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.
(5) Accounts receivable securitization: Through its wholly-owned and consolidated subsidiary Ferrellgas Receivables, Ferrellgas, L.P. has agreements to securitize, on an ongoing basis, a portion of its trade accounts receivable. (6) Inventories: Inventories are stated at the lower of cost or market using weighted average cost and actual cost methods. (7) Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and routine repairs are expensed as incurred. Ferrellgas, L.P. capitalizes computer software, equipment replacement and betterment expenditures that upgrade, replace or completely rebuild major mechanical components and extend the original useful life of the equipment. Depreciation is calculated using the straight-line method based on the estimated useful lives of the assets ranging from two to 30 years. Ferrellgas, L.P., using its best estimates based on reasonable and supportable assumptions and projections, tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of its assets or asset groups might not be recoverable. The recoverability tests for property, plant and equipment are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas, L.P. management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the assets. (8) Goodwill: Ferrellgas, L.P. records goodwill as the excess of the cost of acquisitions over the fair value of the related net assets at the date of acquisition. Ferrellgas, L.P. tests goodwill for impairment annually during the second quarter or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas, L.P. has determined that it has five reporting units for goodwill impairment testing purposes. As of July 31, 2016, two of these reporting units contain goodwill that is subject to at least an annual assessment for impairment by applying a fair-value-based test. Under this test, the carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the date of the evaluation on a specific identification basis. To the extent a reporting unit’s carrying value exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the second step of the impairment test must be performed. In the second step, the implied fair value of goodwill is determined by assigning the fair value of a reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for that excess. Ferrellgas, L.P. completed its last annual goodwill impairment test on January 31, 2016 and did not incur an impairment loss. (9) Intangible assets: Intangible assets with finite useful lives, consisting primarily of customer related assets, non-compete agreements, permits, favorable lease arrangements and patented technology, are stated at cost, net of accumulated amortization calculated using the straight-line method over periods ranging from two to 15 years. When necessary, intangible assets’ useful lives are revised and the impact on amortization reflected on a prospective basis. Trade names and trademarks have indefinite lives, are not amortized, and are stated at cost. Ferrellgas, L.P. tests finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of these assets or asset groups might not be recoverable. Ferrellgas, L.P. tests indefinite-lived intangible assets for impairment annually on January 31 or more frequently if circumstances dictate. The recoverability tests for definite-lived intangible assets are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas, L.P. management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the assets. (10) Derivative instruments and hedging activities: Commodity and Transportation Fuel Price Risk. Ferrellgas, L.P.’s overall objective for entering into commodity based derivative contracts, including commodity options and swaps, is to hedge a portion of its exposure to market fluctuations in propane, gasoline, diesel and crude oil prices. Ferrellgas, L.P's risk management activities primarily attempt to mitigate price risks related to the purchase, storage, transport and sale of propane and crude oil generally in the contract and spot markets from major domestic energy companies on a short-term basis. Ferrellgas, L.P attempts to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts. Additionally, Ferrellgas, L.P.'s risk management activities attempt to mitigate price risks related to the purchase of gasoline and diesel fuel for use in the transport of propane from retail fueling stations through the use of financial derivative instruments. Ferrellgas, L.P.’s risk management strategy involves taking positions in the forward or financial markets that are equal and opposite to Ferrellgas, L.P.’s 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 Ferrellgas, L.P.’s gains or losses in the physical product markets are offset by its losses or gains in the forward or financial markets. These financial derivatives are designated as cash flow hedges. The gasoline and diesel related financial derivatives are not formally designated and documented as a hedge of exposure to fluctuations in the market price of fuel. Ferrellgas, L.P.’s risk management activities may include the use of financial derivative instruments including, but not limited to, swaps, options, and futures to seek protection from adverse price movements and to minimize potential losses. Ferrellgas, L.P. enters 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. All of Ferrellgas, L.P.’s financial derivative instruments are reported on the consolidated balance sheets at fair value. Ferrellgas, L.P. also enters 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 Ferrellgas, L.P.’s financial statements until settled. On the date that derivative contracts are entered into, other than those designated as normal purchases or normal sales, Ferrellgas, L.P. makes a determination as to whether the derivative instrument qualifies for designation as a hedge. These financial instruments are formally designated and documented as a hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transaction. Because of the high degree of correlation between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the anticipated cash flows of the underlying exposure being hedged. Since the fair value of these derivatives fluctuates over their contractual lives, their fair value amounts should not be viewed in isolation, but rather in relation to the anticipated cash flows of the underlying hedged transaction and the overall reduction in Ferrellgas, L.P.’s risk relating to adverse fluctuations in propane prices. Ferrellgas, L.P. formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the anticipated cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is recognized in “Cost of product sold - propane and other gas liquids sales” in the consolidated statements of operations. Financial instruments formally designated and documented as a hedge of a specific underlying exposure are recorded gross at fair value as either “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities” or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in other comprehensive income. Financial instruments not formally designated and documented as a hedge of a specific underlying exposure are recorded at fair value as “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities”, or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in "Cost of sales - midstream operations" and "Operating expense" on the consolidated statements of operations. Interest Rate Risk. Ferrellgas, L.P.’s overall objective for entering into interest rate derivative contracts, including swaps, is to manage its exposure to interest rate risk associated with its fixed rate senior notes and its floating rate borrowings from both the secured credit facility and the accounts receivable securitization facility. Fluctuations in interest rates subject Ferrellgas, L.P. to interest rate risk. Decreases in interest rates increase the fair value of Ferrellgas, L.P.’s fixed rate debt, while increases in interest rates subject Ferrellgas, L.P. to the risk of increased interest expense related to its variable rate borrowings. Ferrellgas, L.P. enters into fair value hedges to help reduce its fixed interest rate risk. Interest rate swaps are used to hedge the exposure to changes in the fair value of fixed rate debt due to changes in interest rates. Fixed rate debt that has been designated as being hedged is recorded at fair value while the fair value of interest rate derivatives that are considered fair value hedges are classified as “Prepaid expenses and other current assets”, “Other assets, net”, “Other current liabilities” or as “Other liabilities” on the consolidated balance sheets. Changes in the fair value of fixed rate debt and any related fair value hedges are recognized as they occur in “Interest expense” on the consolidated statements of operations. Ferrellgas, L.P. enters into cash flow hedges to help reduce its variable interest rate risk. Interest rate swaps are used to hedge the risk associated with rising interest rates and their effect on forecasted interest payments related to variable rate borrowings. These interest rate swaps are designated as cash flow hedges. Thus, the effective portions of changes in the fair value of the hedges are recorded in “Prepaid expenses and other current assets”, “Other assets, net”, “Other current liabilities” or as “Other liabilities” with an offsetting entry to “Other comprehensive income” at interim periods and are subsequently recognized as interest expense in the consolidated statement of earnings when the forecasted transaction impacts earnings. Changes in the fair value of any cash flow hedges that are considered ineffective are recognized as interest expense on the consolidated statement of earnings as they occur. (11) Revenue recognition: Revenues from Ferrellgas, L.P.'s propane and related equipment sales segment are recognized at the time product is delivered with payments generally due 30 days after receipt. Amounts are considered past due after 30 days. Ferrellgas, L.P. determines accounts receivable allowances based on management’s assessment of the creditworthiness of the customers and other collection actions. Ferrellgas, L.P. offers “even pay” billing programs that can create customer deposits or advances. Revenue is recognized from these customer deposits or advances to customers at the time product is delivered. Other revenues, which include revenue from the sale of propane appliances and equipment is recognized at the time of delivery or installation. Ferrellgas, L.P. recognizes shipping and handling revenues and expenses for sales of propane, appliances and equipment at the time of delivery or installation. Shipping and handling revenues are included in the price of propane charged to customers, and are classified as revenue. Revenues from annually billed, non-refundable propane tank rentals are recognized in “Revenues: other” on a straight-line basis over one year. Revenues from Ferrellgas, L.P.'s midstream operations - crude oil logistics segment include crude oil sales, pipeline tariffs, trucking fees, rail throughput fees, pipeline management services, leasing, throughput, and storage; all items deemed as being associated with the transportation of crude oil. These revenues are recognized upon completion of the related service or delivery of product. (12) Shipping and handling expenses: Shipping and handling expenses related to delivery personnel, vehicle repair and maintenance and general liability expenses are classified within “Operating expense” in the consolidated statements of operations. Depreciation expenses on delivery vehicles Ferrellgas, L.P. owns are classified within “Depreciation and amortization expense.” Delivery vehicles and distribution technology leased by Ferrellgas, L.P. are classified within “Equipment lease expense.” See Note F – Supplemental financial statement information – for the financial statement presentation of shipping and handling expenses. (13) Cost of sales: “Cost of sales – propane and other gas liquids sales” includes all costs to acquire propane and other gas liquids, the costs of storing and transporting inventory prior to delivery to Ferrellgas, L.P.’s customers, the results from risk management activities to hedge related price risk and the costs of materials related to the refurbishment of Ferrellgas, L.P.’s portable propane tanks. "Cost of sales - midstream operations" includes all costs incurred to purchase and transport crude oil, including the costs of terminaling and transporting crude oil prior to delivery to customers. “Cost of sales – other” primarily includes costs related to the sale of propane appliances and equipment. (14) Operating expenses: “Operating expense” primarily includes the personnel, vehicle, delivery, handling, plant, office, selling, marketing, credit and collections and other expenses related to the retail distribution of propane and related equipment and supplies. Within midstream operations, "Operating expense" includes plant, office, selling, marketing, credit and collections and other expense. (15) General and administrative expenses: “General and administrative expense” primarily includes personnel and incentive expense related to executives, and employees and other overhead expense related to centralized corporate functions. (16) Stock-based plans: Ferrell Companies, Inc. Incentive Compensation Plans (“ICPs”) The ICPs are not Ferrellgas, L.P. stock-compensation plans; however, in accordance with Ferrellgas, L.P.’s partnership agreements, all Ferrellgas, L.P. employee-related costs incurred by Ferrell Companies are allocated to Ferrellgas, L.P. As a result, Ferrellgas, L.P. incurs a non-cash compensation charge from Ferrell Companies. During the years ended July 31, 2016, 2015 and 2014, the portion of the total non-cash compensation charge relating to the ICPs was $9.3 million, $25.6 million and $24.5 million, respectively. Ferrell Companies is authorized to issue up to 9.25 million stock appreciation rights (“SARs”) that are based on shares of Ferrell Companies common stock. The SARs were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The SARs awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. Effective July 31, 2015, Ferrell Companies is authorized to issue deferred appreciation right ("DARs") awards that are based on shares of Ferrell Companies common stock. The DAR awards were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The DAR awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. (17) Income taxes: Ferrellgas, L.P. is a limited partnership and owns three subsidiaries that are taxable corporations. As a result, except for the taxable corporations, Ferrellgas, L.P.’s earnings or losses for federal income tax purposes are included in the tax returns of the individual partners. Accordingly, the accompanying consolidated financial statements of Ferrellgas, L.P. reflect federal income taxes related to the above mentioned taxable corporations and certain states that allow for income taxation of partnerships. Net earnings for financial statement purposes may differ significantly from taxable income reportable to partners as a result of differences between the tax basis and financial reporting basis of assets and liabilities, the taxable income allocation requirements under Ferrellgas, L.P.’s partnership agreement and differences between Ferrellgas, L.P.’s financial reporting year end and limited partners tax year end. Income tax expense (benefit) consisted of the following:
Deferred taxes consisted of the following:
(18) Sales taxes: Ferrellgas, L.P. accounts for the collection and remittance of sales tax on a net tax basis. As a result, these amounts are not reflected in the consolidated statements of operations. (19) Loss contingencies: In the normal course of business, Ferrellgas, L.P. is involved in various claims and legal proceedings. Ferrellgas, L.P. records a liability for such matters when it is probable that a loss has been incurred and the amounts can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. Legal costs associated with these loss contingencies are expensed as incurred. (20) Assets held for sale: Assets held for sale represent trucks that have met the criteria of “held for sale” accounting. During the first quarter of fiscal 2016, Ferrellgas committed to a plan to sell certain trucks held by the Midstream operations - crude oil logistics segment. These assets were reclassified from "Vehicles, including transport trailers" to Assets held for sale in the balance sheet as of October 31, 2015. Ferrellgas ceased depreciation on these assets during October 2015. Assets held for sale are recorded at the lower of the carrying amount or fair value less costs to sell. See Note F – Supplemental financial statement information – for further discussion of these held for sale assets. (21) Debt issuance costs: In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. At July 31, 2016, Ferrellgas, L.P. adopted this ASU, which requires certain debt issuance costs to be reported as a reduction to the carrying amount of the long-term debt. Ferrellgas, L.P. has applied this ASU retrospectively to its July 31, 2015 consolidated balance sheet. Additionally, in August 2015, the FASB issued ASU No. 2015-15, which provides additional guidance related to the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. An entity may still present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Ferrellgas, L.P. will continue to report such debt issuance costs as other assets. The following table compares the other asset and long-term debt balances as currently reported to the amounts that would have been reported under the old accounting standard. See Note I – Debt – for further discussion of debt issuance costs.
(22) New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board (IASB) to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas, L.P. for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Early application is not permitted. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas, L.P. is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. FASB Accounting Standard Update No. 2015-02 In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis which provides additional guidance on the consolidation of limited partnerships and on the evaluation of variable interest entities. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-06 In September 2015, the FASB issued ASU 2015-06, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments, which requires all entities to record the effects on earnings, if any, of changes in provisional amounts for items in a business combination in the same period in which the adjustment amounts are determined. The requirement to retrospectively account for the adjustments is eliminated by this amendment. ASU 2015-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. ASU 2015-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
Asset impairments |
12 Months Ended |
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Jul. 31, 2016 | |
Asset Impairment Charges [Text Block] | Asset impairments First Quarter ended October 31, 2015 Goodwill impairment During the three months ended October 31, 2015, Ferrellgas determined that the continued and prolonged decline in the price of crude oil constituted a triggering event for its Midstream operations - water solutions business that required an update to the goodwill impairment assessment as of October 31, 2015. The first step of this test primarily consists of a discounted future cash flow model to predict fair value. The result of this first step is based on the following critical assumptions: (1) the NYMEX West Texas Intermediate (“WTI”) crude oil curve was used to estimate future oil prices; (2) the oil skimming rate was expected to increase or decrease consistent with the projected increases/decreases in the NYMEX WTI crude oil curve consistent with past history; and (3) certain organic growth projects were projected to increase the salt water volumes processed as new drilling activity increases associated with the projected NYMEX WTI crude oil curve. As noted in our discussion of this reporting unit in Ferrellgas' Annual Report on Form 10-K for the year ended July 31, 2015, Ferrellgas believes that the results of this business are closely tied to the price of WTI crude oil. The daily average closing price for WTI crude oil for the three months ended July 31, 2015 of $56.63 decreased 20.7% to $44.90 during the three months ended October 31, 2015. Additionally, the projected NYMEX WTI crude oil curve decreased approximately 6.5% from August 31, 2015 to October 31, 2015. These events have led to an overall decline in drilling activity and volumes in the Eagle Ford shale region of Texas. These market changes, in addition to previous declines noted during fiscal year 2015, negatively affected Ferrellgas' current period results and future projections sufficiently to indicate that the fair value of the reporting unit likely no longer exceeded its carrying value. In the second step, the implied fair value of goodwill is determined by assigning the fair value of a reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for that excess. As of October 31, 2015, Ferrellgas performed the first step of the goodwill impairment test for the Midstream operations - water solutions reporting unit and determined that the carrying value of the reporting unit exceeded the fair value. Ferrellgas then completed the second step of the goodwill impairment analysis comparing the implied fair value of the reporting unit to the carrying amount of goodwill and determined that goodwill was completely impaired and has written off the entire $29.3 million of goodwill related to this reporting unit. Fourth Quarter ended July 31, 2016 During the year ended July 31, 2016, approximately 60% of Midstream Operations - Crude oil logistics' segment (Bridger) gross margin was generated from its largest customer and Jamex, that customer's supplier, under take-or-pay arrangements. Bridger's largest customer during the fiscal year ended July 31, 2016 owns a refinery in Trainer, Pennsylvania. Bridger is party to an agreement with this customer under which Bridger provided logistics services to transport crude oil from the Bakken region in North Dakota to the Trainer refinery. That agreement has a minimum volume commitment and payment obligation from the refinery for logistics services associated with the delivery of 65 MBbls/d. However, if the quantity of crude oil delivered to the refinery dropped below 35 MBbls/d, the minimum volume commitment and payment obligation from the refinery would be suspended and Jamex would become responsible for payments to Bridger under the pay provisions of the Jamex TLA. During February 2016, Jamex ceased sourcing barrels for delivery to the refinery and since that time Bridger had been billing Jamex directly in accordance with the pay provisions of the Jamex TLA. During July 2016, Ferrellgas determined Jamex would not resume sourcing barrels for delivery to the refinery or be likely to continue to make payments under the pay provisions of the Jamex TLA. As a result, Ferrellgas began negotiating a settlement with Jamex, and the Jamex TLA was terminated on September 1, 2016. While the agreement with the refinery owner was not terminated as a result of the execution and delivery of the Jamex Termination Agreement, Bridger has been unable to negotiate a revised transportation and logistics agreement with that customer; accordingly it is unlikely that Bridger will continue to make any deliveries under the existing agreement. Consequently, we do not anticipate any material contribution to revenue or gross margin from Jamex or Bridger's largest customer in the future. Additionally, the continued, sustained decline in crude oil prices and resulting decrease in crude oil production in the regions in which we operate significantly impacted our trucking operations during the three months ended July 31, 2016, a trend Ferrellgas anticipates will continue into fiscal 2017 and beyond. This expected decline in future cash flows from operations constituted a triggering event in the fourth fiscal quarter of 2016 for its Midstream operations - crude oil logistics business, requiring impairment testing of indefinite-lived intangible assets, long-lived tangible and intangible assets within certain asset groups, and goodwill. Tradename impairment Upon applying the fair-value-based test to its Midstream operations - crude oil logistics segment indefinite-lived intangible asset, which consists of its tradename, Ferrellgas determined that the estimated fair value of the tradename as of July 31, 2016 was less than the carrying value, and as a result recorded an impairment charge of $7.4 million as of July 31, 2016. Ferrellgas estimated the fair value of the tradename using the relief from royalty method, which is an income approach. Critical assumptions included in the relief from royalty method include: (1) discounted future cash flows; (2) growth factors; (3) a discount rate; and (4) a long-term growth rate. The majority of these critical assumptions were unobservable, accordingly Ferrellgas' estimate of fair value of the tradename is considered to be Level 3 in the fair value hierarchy. Long-lived asset impairment Ferrellgas determined that multiple asset groups within the Midstream operations - crude oil logistics segment were not recoverable. Ferrellgas estimated the fair value of each of these asset groups and recorded impairment charges to the extent that fair value was less than the carrying value of the asset group. Impairment charges of $249.0 million related to customer relationships and non-compete agreements and $181.8 million related to property, plant and equipment are included in “Asset impairments” in the Consolidated Statement of Operations. Fair value of the asset groups was determined using an income approach, which was comprised of multiple significant unobservable inputs including: (1) estimate of future cash flows; (2) the timing, success rate and capital required for certain organic growth projects; (3) the amount of capital expenditures required to maintain the existing cash flows; and (4) a terminal period growth rate equal to the expected rate of inflation. Accordingly, Ferrellgas' estimates of fair value of these asset groups are considered to be Level 3 in the fair value hierarchy. Goodwill impairment Ferrellgas concluded that the fair value of the Midstream operations - crude oil logistics reporting unit no longer exceeded its carrying value as of July 31, 2016. Upon applying the second step of the impairment test, Ferrellgas determined that the implied fair value of goodwill was zero, and accordingly we recorded an impairment charge of $190.6 million as of July 31, 2016, or all of the goodwill previously allocated to this reporting unit. Ferrellgas used a discounted future cash flow model to estimate fair value of the reporting unit, which included multiple significant unobservable inputs, thus the estimate is considered to be Level 3 in the fair value hierarchy. Ferrellgas prepared various cash flow models involving certain potential scenarios and probability weighted these scenarios which included the following critical assumptions: (1) discounted future cash flows; (2) the timing, success rate and capital required for certain organic growth projects; (3) the amount of capital expenditures required to maintain the existing cash flows; and (4) a terminal period growth rate equal to the expected rate of inflation. In addition to these critical cash flow assumptions, a discount rate of 11.5% was applied to the various projected cash flow models. Judgments and assumptions are inherent in management’s estimates used to determine the fair value of Ferrellgas' reporting units and the fair value of its indefinite-lived assets and long-lived assets, and are consistent with what management believes would be utilized by primary market participants. |
Ferrellgas, L.P. [Member] | |
Asset Impairment Charges [Text Block] | Asset impairments First Quarter ended October 31, 2015 Goodwill impairment During the three months ended October 31, 2015, Ferrellgas, L.P. determined that the continued and prolonged decline in the price of crude oil constituted a triggering event for its Midstream operations - water solutions business that required an update to the goodwill impairment assessment as of October 31, 2015. The first step of this test primarily consists of a discounted future cash flow model to predict fair value. The result of this first step is based on the following critical assumptions: (1) the NYMEX West Texas Intermediate (“WTI”) crude oil curve was used to estimate future oil prices; (2) the oil skimming rate was expected to increase or decrease consistent with the projected increases/decreases in the NYMEX WTI crude oil curve consistent with past history; and (3) certain organic growth projects were projected to increase the salt water volumes processed as new drilling activity increases associated with the projected NYMEX WTI crude oil curve. As noted in our discussion of this reporting unit in Ferrellgas, L.P.'s Annual Report on Form 10-K for the year ended July 31, 2015, Ferrellgas, L.P. believes that the results of this business are closely tied to the price of WTI crude oil. The daily average closing price for WTI crude oil for the three months ended July 31, 2015 of $56.63 decreased 20.7% to $44.90 during the three months ended October 31, 2015. Additionally, the projected NYMEX WTI crude oil curve decreased approximately 6.5% from August 31, 2015 to October 31, 2015. These events have led to an overall decline in drilling activity and volumes in the Eagle Ford shale region of Texas. These market changes, in addition to previous declines noted during fiscal year 2015, negatively affected Ferrellgas, L.P.'s current period results and future projections sufficiently to indicate that the fair value of the reporting unit likely no longer exceeded its carrying value. In the second step, the implied fair value of goodwill is determined by assigning the fair value of a reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for that excess. As of October 31, 2015, Ferrellgas, L.P. performed the first step of the goodwill impairment test for the Midstream operations - water solutions reporting unit and determined that the carrying value of the reporting unit exceeded the fair value. Ferrellgas, L.P. then completed the second step of the goodwill impairment analysis comparing the implied fair value of the reporting unit to the carrying amount of goodwill and determined that goodwill was completely impaired and has written off the entire $29.3 million of goodwill related to this reporting unit. Fourth Quarter ended July 31, 2016 During the year ended July 31, 2016, approximately 60% of Midstream Operations - Crude oil logistics' segment (Bridger) gross margin was generated from its largest customer and Jamex, that customer's supplier, under take-or-pay arrangements. Bridger's largest customer during the fiscal year ended July 31, 2016 owns a refinery in Trainer, Pennsylvania. Bridger is party to an agreement with this customer under which Bridger provided logistics services to transport crude oil from the Bakken region in North Dakota to the Trainer refinery. That agreement has a minimum volume commitment and payment obligation from the refinery for logistics services associated with the delivery of 65 MBbls/d. However, if the quantity of crude oil delivered to the refinery dropped below 35 MBbls/d, the minimum volume commitment and payment obligation from the refinery would be suspended and Jamex would become responsible for payments to Bridger under the pay provisions of the Jamex TLA. During February 2016, Jamex ceased sourcing barrels for delivery to the refinery and since that time Bridger had been billing Jamex directly in accordance with the pay provisions of the Jamex TLA. During July 2016, Ferrellgas, L.P. determined Jamex would not resume sourcing barrels for delivery to the refinery or be likely to continue to make payments under the pay provisions of the Jamex TLA. As a result, Ferrellgas, L.P. began negotiating a settlement with Jamex, and the Jamex TLA was terminated on September 1, 2016. While the agreement with the refinery owner was not terminated as a result of the execution and delivery of the Jamex Termination Agreement, Bridger has been unable to negotiate a revised transportation and logistics agreement with that customer; accordingly it is unlikely that Bridger will continue to make any deliveries under the existing agreement. Consequently, we do not anticipate any material contribution to revenue or gross margin from Jamex or Bridger's largest customer in the future. Additionally, the continued, sustained decline in crude oil prices and resulting decrease in crude oil production in the regions in which we operate significantly impacted our trucking operations during the three months ended July 31, 2016, a trend Ferrellgas, L.P. anticipates will continue into fiscal 2017 and beyond. This expected decline in future cash flows from operations constituted a triggering event in the fourth fiscal quarter of 2016 for its Midstream operations - crude oil logistics business, requiring impairment testing of indefinite-lived intangible assets, long-lived tangible and intangible assets within certain asset groups, and goodwill. Tradename impairment Upon applying the fair-value-based test to its Midstream operations - crude oil logistics segment indefinite-lived intangible asset, which consists of its tradename, Ferrellgas, L.P. determined that the estimated fair value of the tradename as of July 31, 2016 was less than the carrying value, and as a result recorded an impairment charge of $7.4 million as of July 31, 2016. Ferrellgas, L.P. estimated the fair value of the tradename using the relief from royalty method, which is an income approach. Critical assumptions included in the relief from royalty method include: (1) discounted future cash flows; (2) growth factors; (3) a discount rate; and (4) a long-term growth rate. The majority of these critical assumptions were unobservable, accordingly Ferrellgas, L.P.'s estimate of fair value of the tradename is considered to be Level 3 in the fair value hierarchy. Long-lived asset impairment Ferrellgas, L.P. determined that multiple asset groups within the Midstream operations - crude oil logistics segment were not recoverable. Ferrellgas, L.P. estimated the fair value of each of these asset groups and recorded impairment charges to the extent that fair value was less than the carrying value of the asset group. Impairment charges of $249.0 million related to customer relationships and non-compete agreements and $181.8 million related to property, plant and equipment are included in “Asset impairments” in the Consolidated Statement of Operations. Fair value of the asset groups was determined using an income approach, which was comprised of multiple significant unobservable inputs including: (1) estimate of future cash flows; (2) the timing, success rate and capital required for certain organic growth projects; (3) the amount of capital expenditures required to maintain the existing cash flows; and (4) a terminal period growth rate equal to the expected rate of inflation. Accordingly, Ferrellgas, L.P.'s estimates of fair value of these asset groups are considered to be Level 3 in the fair value hierarchy. Goodwill impairment Ferrellgas, L.P. concluded that the fair value of the Midstream operations - crude oil logistics reporting unit no longer exceeded its carrying value as of July 31, 2016. Upon applying the second step of the impairment test, Ferrellgas, L.P. determined that the implied fair value of goodwill was zero, and accordingly we recorded an impairment charge of $190.6 million as of July 31, 2016, or all of the goodwill previously allocated to this reporting unit. Ferrellgas, L.P. used a discounted future cash flow model to estimate fair value of the reporting unit, which included multiple significant unobservable inputs, thus the estimate is considered to be Level 3 in the fair value hierarchy. Ferrellgas, L.P. prepared various cash flow models involving certain potential scenarios and probability weighted these scenarios which included the following critical assumptions: (1) discounted future cash flows; (2) the timing, success rate and capital required for certain organic growth projects; (3) the amount of capital expenditures required to maintain the existing cash flows; and (4) a terminal period growth rate equal to the expected rate of inflation. In addition to these critical cash flow assumptions, a discount rate of 11.5% was applied to the various projected cash flow models. Judgments and assumptions are inherent in management’s estimates used to determine the fair value of Ferrellgas, L.P.'s reporting units and the fair value of its indefinite-lived assets and long-lived assets, and are consistent with what management believes would be utilized by primary market participants. |
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Business Combinations | Business combinations Business combinations are accounted for under the acquisition method of accounting and the assets acquired and liabilities assumed are recorded at their estimated fair market values as of the acquisition dates. The results of operations are included in the consolidated statements of operations from the date of acquisition. The pro forma effect of these transactions was not material to Ferrellgas' balance sheets or results of operations, except for Bridger as noted below. Propane and related equipment sales During fiscal 2016, Ferrellgas acquired propane distribution assets with an aggregate value of $6.6 million in the following transactions:
During fiscal 2015, Ferrellgas acquired the propane distribution assets of Propane Advantage, LLC, based in Utah, with an aggregate value of $7.7 million. During fiscal 2014, Ferrellgas acquired propane distribution assets with an aggregate value of $38.7 million in the following transactions:
The goodwill arising from the propane and related equipment sales acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Ferrellgas and the acquired companies. These acquisitions were funded as follows on their dates of acquisition:
The aggregate fair values, for the acquisitions in propane and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:
The estimated fair values and useful lives of assets acquired during fiscal 2016 are based on a preliminary valuation and are subject to final valuation adjustments. Ferrellgas intends to continue its analysis of the net assets of these transactions to determine the final allocation of the total purchase price to the various assets and liabilities acquired. The estimated fair values and useful lives of assets acquired during fiscal 2015 and 2014 are based on internal valuations and included only minor adjustments during the 12 month period after the date of acquisition. Due to the immateriality of these adjustments, Ferrellgas did not retrospectively adjust the consolidated statements of operations for those measurement period adjustments. Midstream operations - Crude oil logistics solutions and other During fiscal 2016, Ferrellgas acquired the crude oil logistics assets of South C&C Trucking, LLC, based in Texas, with an aggregate value of $10.7 million. The aggregate fair values for this acquisition were allocated as follows: $(0.6) million of working capital, $9.2 million of plant, property, and equipment, $0.7 million of intangibles, and $1.4 million of goodwill. On June 24, 2015, Ferrellgas acquired Bridger (based near Dallas, Texas) and formed a new midstream operation - crude oil logistics segment. Ferrellgas paid $560.0 million of cash, net of cash acquired and issued $260.0 million of Ferrellgas Partners common units to the seller, along with $2.5 million of other seller costs and consideration for an aggregate value of $822.5 million. Ferrellgas has incurred and charged to operating expenses, net $16.4 million of costs during the year ended July 31, 2015, related to the acquisition and transition of Bridger. Bridger's assets include rail cars, trucks, tank trailers, injection stations, a pipeline, and other assets. Bridger's operations provide crude oil transportation logistics on behalf of producers and end-users of crude oil on a fee-for-service basis, and purchases and sells crude oil in connection with other fee-for-service arrangements. The excess of purchase consideration over net assets assumed was recorded as goodwill, which represents the strategic value assigned to Bridger, including the knowledge and experience of the workforce in place. On the one year anniversary date of the Bridger acquisition, Ferrellgas completed the acquisition accounting for this acquisition. The following table summarizes the final calculation of the fair values of the assets acquired and liabilities assumed:
The following amounts from this acquisition were included in the operating results for the year ending July 31, 2015:
Pro forma results of operations (unaudited) The following summarized unaudited pro forma consolidated statement of earnings information assumes that the acquisition of Bridger during fiscal 2015 occurred as of August 1, 2013. These unaudited pro forma results are for comparative purposes only and may not be indicative of the results that would have occurred had this acquisition been completed on August 1, 2013 or the results that would be attained in the future.
The unaudited pro forma consolidated data presented above has also been prepared as if the following transactions, which are described in Notes I and J to these consolidated financial statements, had been completed on August 1, 2013:
During fiscal 2015, Ferrellgas acquired salt water disposal assets with an aggregate value of $74.7 million in the following transactions, which includes $1.4 million paid in fiscal 2015 as a working capital and valuation adjustment for prior year acquisitions:
During fiscal 2014, Ferrellgas acquired salt water disposal assets with an aggregate value of $130.3 million relating to the midstream - water solutions segment. This included the acquisitions of Sable Environmental, LLC and Sable SWD 2, LLC ("Sable"), based in Corpus Christi, Texas and Dietert SWD, based in LaSalle County, Texas. The Sable acquisition was funded through borrowings from the secured credit facility, and subsequently Sable's ownership group purchased $50.0 million of Ferrellgas Partners common units. The excess of purchase consideration over net assets assumed was recorded as goodwill, which represents the strategic value assigned to Sable, including the knowledge and experience of the workforce in place. These acquisitions were funded as follows on their dates of acquisition:
The aggregate fair values for these acquisitions were allocated as follows:
The acquisition of Sable included contingent consideration which requires Ferrellgas to pay the former owners of Sable a multiple for earnings in excess of certain EBITDA targets for each of the first two years following the acquisition date. At the date of acquisition, the potential undiscounted amount of all future payments that Ferrellgas could be required to make under the contingent consideration arrangement was between $0 and $2.0 million based upon management's estimate of the likelihood that the target EBITDA metric will be met and exceeded and the amount by which it could be exceeded at the date of acquisition. See further discussion of the determination of the fair value of the contingent consideration at Note K - Fair Value Measurements. |
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business combinations Business combinations are accounted for under the acquisition method of accounting and the assets acquired and liabilities assumed are recorded at their estimated fair market values as of the acquisition dates. The results of operations are included in the consolidated statements of operations from the date of acquisition. The pro forma effect of these transactions was not material to Ferrellgas, L.P.’s balance sheets or results of operations, except for Bridger as noted below. Propane and related equipment sales During fiscal 2016, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $6.6 million in the following transactions.
During fiscal 2015, Ferrellgas, L.P. acquired the assets of Propane Advantage, LLC, based in Utah, with an aggregate value of $7.7 million. During fiscal 2014, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $38.7 million in the following transactions:
The goodwill arising from the propane and related equipment sales acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Ferrellgas, L.P. and the acquired companies. These acquisitions were funded as follows on their dates of acquisition:
The aggregate fair values, for the acquisitions in propane and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:
The estimated fair values and useful lives of assets acquired during fiscal 2016 are based on a preliminary valuation and are subject to final valuation adjustments. Ferrellgas, L.P. intends to continue its analysis of the net assets of these transactions to determine the final allocation of the total purchase price to the various assets and liabilities acquired. The estimated fair values and useful lives of assets acquired during fiscal 2015 and 2014 are based on internal valuations and included only minor adjustments during the 12 month period after the date of acquisition. Due to the immateriality of these adjustments, Ferrellgas, L.P. did not retrospectively adjust the consolidated statements of operations for those measurement period adjustments. Midstream operations - Crude oil logistics solutions and other During fiscal 2016, Ferrellgas, L.P. acquired the crude oil logistics assets of South C&C Trucking, LLC, based in Texas, with an aggregate value of $10.7 million. The aggregate fair values for this acquisition were allocated as follows: $(0.6) million of working capital, $9.2 million of plant, property, and equipment, $0.7 million of intangibles, and $1.4 million of goodwill. On June 24, 2015, Ferrellgas Partners acquired Bridger (based near Dallas, Texas) and formed a new midstream operation - crude oil logistics segment. Ferrellgas Partners paid $560.0 million of cash, net of cash acquired and issued $260.0 million of Ferrellgas Partners common units to the seller, along with $2.5 million of other seller costs and consideration for an aggregate value of $822.5 million. Ferrellgas Partners then contributed the Bridger assets and liabilities to Ferrellgas, L.P. Ferrellgas, L.P. has incurred and charged to operating expenses, net $16.4 million of costs during the year ended July 31, 2015, related to the acquisition and transition of Bridger. Bridger's assets include rail cars, trucks, tank trailers, injection stations, a pipeline, and other assets. Bridger's operations provide crude oil transportation logistics on behalf of producers and end-users of crude oil on a fee-for-service basis, and purchases and sells crude oil in connection with other fee-for-service arrangements. The excess of purchase consideration over net assets assumed was recorded as goodwill, which represents the strategic value assigned to Bridger, including the knowledge and experience of the workforce in place. On the one year anniversary date of the Bridger acquisition, Ferrellgas, L.P. completed the acquisition accounting for this acquisition. The following table summarizes the final calculation of the fair values of the assets acquired and liabilities assumed:
The following amounts from this acquisition were included in the operating results for the year ending July 31, 2015:
Pro forma results of operations (unaudited) The following summarized unaudited pro forma consolidated statement of earnings information assumes that the acquisition of Bridger during fiscal 2015 occurred as of August 1, 2013. These unaudited pro forma results are for comparative purposes only and may not be indicative of the results that would have occurred had this acquisition been completed on August 1, 2013 or the results that would be attained in the future.
The unaudited pro forma consolidated data presented above has also been prepared as if the issuance of senior secured notes in June 2015, which are described in Note I to these consolidated financial statements, had been completed on August 1, 2013. During fiscal 2015, Ferrellgas, L.P. acquired salt water disposal assets with an aggregate value of $74.7 million in the following transactions, which includes $1.4 million paid in fiscal 2015 as a working capital and valuation adjustment for prior year acquisitions:
During fiscal 2014, Ferrellgas, L.P. acquired salt water disposal assets with an aggregate value of $130.3 million relating to the midstream - water solutions segment. This included the acquisitions of Sable Environmental, LLC and Sable SWD 2, LLC ("Sable"), based in Corpus Christi, Texas and Dietert SWD, based in LaSalle County, Texas. The Sable acquisition was funded through borrowings from the secured credit facility, and subsequently Sable's ownership group purchased $50.0 million of Ferrellgas Partners common units. The excess of purchase consideration over net assets assumed was recorded as goodwill, which represents the strategic value assigned to Sable, including the knowledge and experience of the workforce in place. These acquisitions were funded as follows on their dates of acquisition:
The aggregate fair values for these acquisitions were allocated as follows:
The acquisition of Sable included contingent consideration which requires Ferrellgas, L.P. to pay the former owners of Sable a multiple for earnings in excess of certain EBITDA targets for each of the first two years following the acquisition date. At the date of acquisition, the potential undiscounted amount of all future payments that Ferrellgas, L.P. could be required to make under the contingent consideration arrangement was between $0 and $2.0 million based upon management's estimate of the likelihood that the target EBITDA metric will be met and exceeded and the amount by which it could be exceeded at the date of acquisition. See further discussion of the determination of the fair value of the contingent consideration at Note K - Fair Value Measurements. |
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Aggregate Fair Value Of Transaction | The aggregate fair values for these acquisitions were allocated as follows:
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Midstream Operations - Water Solutions [Member] | Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Fair Value Of Transaction | The aggregate fair values for these acquisitions were allocated as follows:
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Quarterly Distributions Of Available Cash |
12 Months Ended |
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Jul. 31, 2016 | |
Quarterly Distributions Of Available Cash | Quarterly distributions of available cash Ferrellgas Partners makes quarterly cash distributions of all of its "available cash.” Available cash is defined in the partnership agreement of Ferrellgas Partners as, generally, the sum of its consolidated cash receipts less consolidated cash disbursements and net changes in reserves established by the general partner for future requirements. Reserves are retained in order to provide for the proper conduct of Ferrellgas Partners’ business, or to provide funds for distributions with respect to any one or more of the next four fiscal quarters. Distributions are made within 45 days after the end of each fiscal quarter ending October, January, April and July to holders of record on the applicable record date. Distributions by Ferrellgas Partners in an amount equal to 100% of its available cash, as defined in its partnership agreement, will be made to the common unitholders and the general partner. Additionally, the payment of incentive distributions to the holders of incentive distribution rights will be made to the extent that certain target levels of cash distributions are achieved. See Note S - Subsequent Events for additional disclosures related to Ferrellgas' ability to make quarterly cash distributions. |
Ferrellgas, L.P. [Member] | |
Quarterly Distributions Of Available Cash | Quarterly distributions of available cash Ferrellgas, L.P. makes quarterly cash distributions of all of its "available cash." Available cash is defined in the partnership agreement of Ferrellgas, L.P. as, generally, the sum of its consolidated cash receipts less consolidated cash disbursements and net changes in reserves established by the general partner for future requirements. Reserves are retained in order to provide for the proper conduct of Ferrellgas, L.P.’s business, or to provide funds for distributions with respect to any one or more of the next four fiscal quarters. Distributions are made within 45 days after the end of each fiscal quarter ending October, January, April, and July. Distributions by Ferrellgas, L.P. in an amount equal to 100% of its available cash, as defined in its partnership agreement, will be made approximately 99% to Ferrellgas Partners and approximately 1% to the general partner. See Note S - Subsequent Events for additional disclosures related to Ferrellgas, L.P.'s ability to make quarterly cash distributions. |
Supplemental Financial Statement Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Information | Supplemental financial statement information Inventories consist of the following:
In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes with terms generally up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of July 31, 2016, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 96.9 million gallons of propane at fixed prices. Property, plant and equipment, net consist of the following:
As of July 31, 2016, property, plant and equipment amounts are net of impairment losses of $181.8 million. See Note C. Asset impairments for additional disclosures regarding these impairments. Depreciation expense totaled $85.8 million, $61.3 million and $58.3 million for fiscal 2016, 2015 and 2014, respectively. Other assets, net consist of the following:
At July 31, 2016, management determined a that a significant portion of the trade accounts receivable balance with Jamex should be considered noncurrent and accordingly, $39.8 million of this trade accounts receivable was reclassified from "Accounts and notes receivable, net" to "Other assets, net". The Jamex trade receivable was converted into a secured promissory note on September 1, 2016. See Note S – Subsequent events – for further discussion of this promissory note. Other current liabilities consist of the following:
Shipping and handling expenses are classified in the following consolidated statements of operations line items:
During the three month period ended October 31, 2015, Ferrellgas committed to a plan to dispose of certain assets in its Midstream operations - crude oil logistics segment. As of October 31, 2015, this plan resulted in 69 trucks sold and 136 trucks reclassified from "Vehicles, including transport trailers" to Assets held for sale. The held for sale assets were recorded at the lower of carrying value or estimated fair value, less an estimate of costs to sell. The estimate of fair value included significant unobservable inputs (Level 3 fair value). Subsequent to October 31, 2015, 65 of these trucks were sold, 59 were repurposed and reclassified to property, plant, and equipment as held for use within other Ferrellgas businesses, which constitutes a change in plan, and 12 trucks remain classified as held for sale assets as of July 31, 2016. Loss on asset sales and disposal during the year ended July 31, 2016 consists of:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Information | Supplemental financial statement information Inventories consist of the following:
In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes with terms generally up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of July 31, 2016, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 96.9 million gallons of propane at fixed prices. Property, plant and equipment, net consist of the following:
As of July 31, 2016, property, plant and equipment amounts are net of impairment losses of $181.8 million. See Note C. Asset impairments for additional disclosures regarding these impairments. Depreciation expense totaled $85.8 million, $61.3 million and $58.3 million for fiscal 2016, 2015 and 2014, respectively. Other assets, net consist of the following:
At July 31, 2016, management determined a that a significant portion of the trade accounts receivable balance with Jamex should be considered noncurrent and accordingly, $39.8 million of this trade accounts receivable was reclassified from "Accounts and notes receivable, net" to "Other assets, net". The Jamex trade receivable was converted into a secured promissory note on September 1, 2016. See Note S – Subsequent events – for further discussion of this promissory note. Other current liabilities consist of the following:
Shipping and handling expenses are classified in the following consolidated statements of operations line items:
During the three month period ended October 31, 2015, Ferrellgas, L.P. committed to a plan to dispose of certain assets in its Midstream operations - crude oil logistics segment. As of October 31, 2015, this plan resulted in 69 trucks sold and 136 trucks reclassified from "Vehicles, including transport trailers" to Assets held for sale. The held for sale assets were recorded at the lower of carrying value or estimated fair value, less an estimate of costs to sell. The estimate of fair value included significant unobservable inputs (Level 3 fair value). Subsequent to October 31, 2015, 65 of these trucks were sold, 59 were repurposed and reclassified to property, plant, and equipment as held for use within other Ferrellgas businesses, which constitutes a change in plan, and 12 trucks remain classified as held for sale assets as of July 31, 2016. Loss on asset sales and disposal during the year ended July 31, 2016 consists of:
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization |
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Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | G. Accounts and notes receivable, net and accounts receivable securitization Accounts and notes receivable, net consist of the following:
During July 2016, Ferrellgas executed an amendment to its accounts receivable securitization facility with Wells Fargo Bank, N.A., Fifth Third Bank and SunTrust Bank. This accounts receivable securitization facility has up to $225.0 million of capacity and matures on July 29, 2019. As part of this facility, Ferrellgas, through Ferrellgas Receivables, securitizes a portion of its trade accounts receivable through a commercial paper conduit for proceeds of up to $225.0 million during the months of January and February $175.0 million during the months of March, April, November and December and $145.0 million for all other months, depending on the availability of undivided interests in its accounts receivable from certain customers. At July 31, 2016, $106.5 million of trade accounts receivable were pledged as collateral against $64.0 million of collateralized notes payable due to the commercial paper conduit. At July 31, 2015, $123.8 million of trade accounts receivable were pledged as collateral against $70.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from Ferrellgas. Ferrellgas does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. Ferrellgas structured Ferrellgas Receivables in order to facilitate securitization transactions while complying with Ferrellgas’ various debt covenants. If the covenants were compromised, funding from the facility could be restricted or suspended, or its costs could increase. As of July 31, 2016, Ferrellgas had received cash proceeds of $64.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2015, Ferrellgas had received cash proceeds of $70.0 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 3.0% and 2.3% as of July 31, 2016 and 2015, respectively. On September 27, 2016, Ferrellgas entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Maximum Leverage Ratio | On September 27, 2016, Ferrellgas entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Accounts and notes receivable, net and accounts receivable securitization Accounts and notes receivable, net consist of the following:
During July 2016, Ferrellgas, L.P. executed an amendment to its accounts receivable securitization facility with Wells Fargo Bank, N.A., Fifth Third Bank and SunTrust Bank. This accounts receivable securitization facility has up to $225.0 million of capacity and matures on July 29, 2019. As part of this facility, Ferrellgas, L.P. through Ferrellgas Receivables, securitizes a portion of its trade accounts receivable through a commercial paper conduit for proceeds of up to $225.0 million during the months of January and February, $175.0 million during the months of March, April, November and December and $145.0 million for all other months, depending on the availability of undivided interests in its accounts receivable from certain customers. At July 31, 2016, $106.5 million of trade accounts receivable were pledged as collateral against $64.0 million of collateralized notes payable due to the commercial paper conduit. At July 31, 2015, $123.8 million of trade accounts receivable were pledged as collateral against $70.0 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. Ferrellgas, L.P. structured Ferrellgas Receivables in order to facilitate securitization transactions while complying with Ferrellgas, L.P.’s various debt covenants. If the covenants were compromised, funding from the facility could be restricted or suspended, or its costs could increase. As of July 31, 2016, Ferrellgas, L.P. had received cash proceeds of $64.0 million from trade accounts receivables securitized, with no remaining capacity to receive additional proceeds. As of July 31, 2015, Ferrellgas, L.P. had received cash proceeds of $70.0 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 3.0% and 2.3% as of July 31, 2016 and 2015, respectively. On September 27, 2016, Ferrellgas, L.P. entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Maximum Leverage Ratio | On September 27, 2016, Ferrellgas, L.P. entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Goodwill And Intangible Assets, Net |
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets, Net | Goodwill and intangible assets, net Goodwill and intangible assets, net consist of the following:
(a) Net of impairment losses of $219.9 million recorded during the year ended July 31, 2016. (b) Net of impairment losses of $242.0 million recorded during the year ended July 31, 2016. (c) Net of impairment losses of $7.0 million recorded during the year ended July 31, 2016. (d) Net of impairment losses of $7.4 million recorded during the year ended July 31, 2016. See Note C. Asset impairments for additional disclosures regarding these impairments. Changes in the carrying amount of goodwill, by operating segment, are as follows:
(a) Due to the relative immateriality of current and anticipated future results, our water solutions business is no longer considered a reportable segment. Customer related intangible assets have estimated lives of 10 to 15 years, permits and favorable lease arrangements have estimated lives of 15 years while non-compete agreements and other intangible assets have estimated lives ranging from two to 10 years. Ferrellgas intends to utilize all acquired trademarks and trade names and does not believe there are any legal, regulatory, contractual, competitive, economical or other factors that would limit their useful lives. Therefore, trademarks and trade names have indefinite useful lives. Customer related intangibles, permits and favorable lease arrangements non-compete agreements and other intangibles carry a weighted average life of 11, 13, six years and four years, respectively.
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Goodwill And Intangible Assets, Net | Goodwill and intangible assets, net Goodwill and intangible assets, net consist of the following:
(a) Net of impairment losses of $219.9 million recorded during the year ended July 31, 2016. (b) Net of impairment losses of $242.0 million recorded during the year ended July 31, 2016. (c) Net of impairment losses of $7.0 million recorded during the year ended July 31, 2016. (d) Net of impairment losses of $7.4 million recorded during the year ended July 31, 2016. See Note C. Asset impairments for additional disclosures regarding these impairments. Changes in the carrying amount of goodwill, by reportable segment, are as follows:
(a) Due to the relative immateriality of current and anticipated future results, our water solutions business is no longer considered a reportable segment. Customer related intangible assets have estimated lives of 10 to 15 years, permits and favorable lease arrangements have estimated lives of 15 years while non-compete agreements and other intangible assets have estimated lives ranging from two to 10 years. Ferrellgas, L.P. intends to utilize all acquired trademarks and trade names and does not believe there are any legal, regulatory, contractual, competitive, economical or other factors that would limit their useful lives. Therefore, trademarks and trade names have indefinite useful lives. Customer related intangibles, permits and favorable lease arrangements, non-compete agreements and other intangibles carry a weighted average life of 11, 13, six years and four years, respectively.
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Debt Disclosure [Text Block] | 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 July 31, 2016 and 2015, $101.3 million and $75.3 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:
Ferrellgas has retrospectively presented its unamortized debt issuance costs as a direct deduction from the current value of its debt. As of July 31, 2015, unamortized debt issuance costs of $26.3 million that were previously presented as an asset on Ferrellgas' balance sheets were reclassified to long-term debt. Secured credit facility During October 2013, Ferrellgas executed a second amendment to its secured credit facility. This amendment extended the maturity date to October 2018, 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 and decreased interest rates by 0.25%. Ferrellgas incurred a loss on extinguishment of debt of $0.3 million related to the writeoff of capitalized financing costs. During June 2014, Ferrellgas executed a third amendment to its secured credit facility. Immediately following the amendment, Ferrellgas increased the size of this facility from $500.0 million to $600.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million. This amendment did not change the interest rate or the maturity date of the secured credit facility which remains at October 2018. Borrowings under this amended facility are available for working capital needs, capital expenditures and other general partnership purposes, including the refinancing of existing indebtedness. During June 2015, Ferrellgas executed a fourth amendment to its secured credit facility to administer certain technical revisions in order to facilitate the Bridger Logistics Acquisition and related funding. This amendment did not change the terms or maturity date of the secured credit facility. During January 2016, Ferrellgas executed a commitment increase supplement to its secured credit facility that increased the size of this facility from $600.0 million to $700.0 million. The commitment increase supplement did not change the interest rate or maturity date of the secured credit facility which remains at October, 2018. The secured credit facility contains various affirmative and negative covenants and default provisions, as well as requirements with respect to the maintenance of specified financial ratios and limitations on the making of loans and investments. Ferrellgas' secured credit facility requires the operating partnership to maintain a leverage ratio of no more than 5.5x. Ferrellgas' leverage ratio is defined as the ratio of total debt of the operating partnership to trailing twelve month EBITDA of the operating partnership (adjusted for certain, defined items), as detailed in Ferrellgas' secured credit facility. Ferrellgas' leverage ratio was 5.48x as of July 31, 2016, which equates to headroom of $8.1 million or 0.3%, primarily because of the combination of (1) a $44.8 million unpaid accounts receivable balance due from Jamex at July 31, 2016; (2) the $45.9 million purchase of 2.4 million common units from Jamex in November 2015; (3) a $16.9 million repurchase of 0.9 million of Ferrellgas Partners' common units from Jamex on September 1, 2016; (4) Midstream operations - crude oil logistics (Bridger) growth capital expenditures of approximately $52.4 million; (5) the warm weather in fiscal 2016 which was 19% warmer than normal and 16% warmer than fiscal 2015, which led to reduced demand for propane; and (6) the decline in our water solutions business. Based on Ferrellgas' current internal forecast we believe it is likely its leverage ratio will exceed 5.5x at the end of the fiscal quarter ending October 31, 2016. Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Because of this leverage ratio requirement Ferrellgas is embarking on a strategy to reduce its debt. This strategy may include a reduction in Ferrellgas' annual distribution, which will continue to be determined by the board of directors of our general partner on a quarter-by-quarter basis. As of the date of this Annual Report on Form 10-K, the quarterly distribution for the first quarter of fiscal 2017 has not been determined, but Ferrellgas' board believes that it is possible that the annual distribution rate may be reduced from $2.05 to approximately $1.00 per common unit. Ferrellgas believes that any such reduction, together with any other debt reducing actions taken, would likely remain in effect until its leverage ratio reaches a level that Ferrellgas deems appropriate for its business. As of July 31, 2016, Ferrellgas had total borrowings outstanding under its secured credit facility of $394.4 million, of which $293.1 million was classified as long-term debt. As of July 31, 2015, Ferrellgas had total borrowings outstanding under its secured credit facility of $211.4 million, of which $136.1 million was classified as long-term debt. Borrowings outstanding at July 31, 2016 and 2015 under the secured credit facility had a weighted average interest rate of 3.7% and 3.5%, respectively. All borrowings under the secured credit facility bear interest, at Ferrellgas’ option, at a rate equal to either:
As of July 31, 2016, the federal funds rate and Bank of America’s prime rate were 0.40% and 3.50%, respectively. As of July 31, 2015, the federal funds rate and Bank of America’s prime rate were 0.14% and 3.25%, respectively. As of July 31, 2016, the one-month and three-month Eurodollar Rates were 0.48% and 0.68%, respectively. As of July 31, 2015, the one-month and three-month Eurodollar Rates were 0.19% and 0.33%, respectively. In addition, an annual commitment fee is payable at a per annum rate range 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 Ferrellgas, the general partner and certain subsidiaries of Ferrellgas but specifically excluding (a) assets that are subject to Ferrellgas’ 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. Letters of credit outstanding at July 31, 2016 totaled $86.3 million and were used primarily to secure insurance arrangements and to a lesser extent, commodity hedges and product purchases. Letters of credit outstanding at July 31, 2015 totaled $61.2 million and were used primarily to secure insurance arrangements and to a lesser extent, product purchases. At July 31, 2016, Ferrellgas had available letter of credit remaining capacity of $113.7 million. At July 31, 2015, Ferrellgas had available letter of credit remaining capacity of $138.8 million. Ferrellgas incurred commitment fees of $1.4 million, $1.5 million and $1.2 million in fiscal 2016, 2015 and 2014, respectively. Interest rate swaps In May 2012, Ferrellgas entered into a $140.0 million interest rate swap agreement to hedge against changes in fair value on a portion of its $300.0 million 9.125% fixed rate senior notes due 2017. Ferrellgas received 9.125% and paid one-month LIBOR plus 7.96%, on the $140.0 million swapped. In October 2013, this interest rate swap was terminated. As a result, Ferrellgas 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 accounted for this agreement as a fair value hedge. In May 2012, Ferrellgas also entered into a $140.0 million interest rate swap agreement to hedge against changes in fair value on a portion of its $500.0 million 6.5% fixed rate senior notes due 2021. Ferrellgas receives 6.5% and pays a one-month LIBOR plus 4.715%, on the $140.0 million swapped. Ferrellgas also accounts for this agreement as a fair value hedge. In May 2012, Ferrellgas entered into a forward interest rate swap agreement to hedge against variability in forecasted interest payments on Ferrellgas’ secured credit facility and collateralized note payable borrowings under the accounts receivable securitization facility. From August 2015 through July 2017, Ferrellgas will pay 1.95% and receive variable payments based on one-month LIBOR for the notional amount of $175.0 million. From August 2017 through July 2018, Ferrellgas will pay 1.95% and receive variable payments based on one-month LIBOR for the notional amount of $100.0 million. Ferrellgas accounts for this agreement as a cash flow hedge. Covenants The senior notes and the credit facility agreement contain various restrictive covenants applicable to Ferrellgas and its subsidiaries, the most restrictive relating to additional indebtedness. The only restriction that prohibits the operating partnership from making cash distributions, advances or loans of the minimum quarterly distribution is if a default or event of default exists or would exist upon making such distribution, advances or loans, or if the operating partnership fails to meet certain coverage tests. As of July 31, 2016, the operating partnership is in compliance with all requirements, tests, limitations and covenants related to these debt agreements. As of July 31, 2016, the operating partnership had no restricted net assets. Other than the senior notes and the credit facility agreement, there are no other agreements which restrict Ferrellgas' subsidiaries ability to transfer funds to Ferrellgas in the form of cash dividends, loans or advances. See Note S - Subsequent events for disclosure related to an amendment obtained by Ferrellgas on September 27, 2016. The scheduled annual principal payments on long-term debt are as follows:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | 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 July 31, 2016 and 2015, $101.3 million and $75.3 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:
Ferrellgas, L.P. has retrospectively presented its unamortized debt issuance costs as a direct deduction from the current value of its debt. As of July 31, 2015, unamortized debt issuance costs of $24.4 million that were previously presented as an asset on Ferrellgas, L.P.'s balance sheets were reclassified to long-term debt. Secured credit facility During October 2013, Ferrellgas, L.P. executed a second amendment to its secured credit facility. This amendment extended the maturity date to October 2018, 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 and decreased interest rates by 0.25%. Ferrellgas, L.P. incurred a loss on extinguishment of debt of $0.3 million related to the writeoff of capitalized financing costs. During June 2014, Ferrellgas, L.P. executed a third amendment to its secured credit facility. Immediately following the amendment, Ferrellgas, L.P. increased the size of this facility from $500.0 million to $600.0 million with no change to the size of the letter of credit sublimit which remains at $200.0 million. This amendment did not change the interest rate or the maturity date of the secured credit facility which remains at October 2018. Borrowings under this amended facility are available for working capital needs, capital expenditures and other general partnership purposes, including the refinancing of existing indebtedness. During June 2015, Ferrellgas, L.P. executed a fourth amendment to its secured credit facility to administer certain technical revisions in order to facilitate the Bridger Logistics Acquisition and related funding. This amendment did not change the terms or maturity date of the secured credit facility. During January 2016, Ferrellgas, L.P. executed a commitment increase supplement to its secured credit facility that increased the size of this facility from $600.0 million to $700.0 million. The commitment increase supplement did not change the interest rate or maturity date of the secured credit facility which remains at October, 2018. The secured credit facility contains various affirmative and negative covenants and default provisions, as well as requirements with respect to the maintenance of specified financial ratios and limitations on the making of loans and investments. Ferrellgas, L.P.'s secured credit facility requires the operating partnership to maintain a leverage ratio of no more than 5.5x. Ferrellgas, L.P.'s leverage ratio is defined as the ratio of total debt of the operating partnership to trailing twelve month EBITDA of the operating partnership (adjusted for certain, defined items), as detailed in Ferrellgas, L.P.'s secured credit facility. Ferrellgas, L.P.'s leverage ratio was 5.48x as of July 31, 2016, which equates to headroom of $8.1 million or 0.3%, primarily because of the combination of (1) a $44.8 million unpaid accounts receivable balance due from Jamex at July 31, 2016; (2) the $45.9 million purchase of 2.4 million common units from Jamex in November 2015; (3) a $16.9 million repurchase of 0.9 million of Ferrellgas Partners' common units from Jamex on September 1, 2016; (4) Midstream operations - crude oil logistics (Bridger) growth capital expenditures of approximately $52.4 million; (5) the warm weather in fiscal 2016 which was 19% warmer than normal and 16% warmer than fiscal 2015, which led to reduced demand for propane; and (6) the decline in our water solutions business. Based on Ferrellgas, L.P.'s current internal forecast we believe it is likely its leverage ratio will exceed 5.5x at the end of the fiscal quarter ending October 31, 2016. Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Because of this leverage ratio requirement Ferrellgas, L.P. is embarking on a strategy to reduce its debt. This strategy may include a reduction in Ferrellgas Partners' annual distribution, which will continue to be determined by the board of directors of our general partner on a quarter-by-quarter basis. As of the date of this Annual Report on Form 10-K, the quarterly distribution for the first quarter of fiscal 2017 has not been determined, but the general partner's board believes that it is possible that the annual distribution rate may be reduced from $2.05 to approximately $1.00 per common unit. Ferrellgas, L.P. believes that any such reduction, together with any other debt reducing actions taken, would likely remain in effect until its leverage ratio reaches a level that Ferrellgas, L.P. deems appropriate for its business. As of July 31, 2016, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $394.4 million, of which $293.1 million was classified as long-term debt. As of July 31, 2015, Ferrellgas, L.P. had total borrowings outstanding under its secured credit facility of $211.4 million, of which $136.1 million was classified as long-term debt. Borrowings outstanding at July 31, 2016 and 2015 under the secured credit facility had a weighted average interest rate of 3.7% and 3.5%, respectively. All borrowings under the secured credit facility bear interest, at Ferrellgas, L.P.’s option, at a rate equal to either:
As of July 31, 2016, the federal funds rate and Bank of America’s prime rate were 0.40% and 3.50%, respectively. As of July 31, 2015, the federal funds rate and Bank of America’s prime rate were 0.14% and 3.25%, respectively. As of July 31, 2016, the one-month and three-month Eurodollar Rates were 0.48% and 0.68%, respectively. As of July 31, 2015, the one-month and three-month Eurodollar Rates were 0.19% and 0.33%, respectively. In addition, an annual commitment fee is payable at a per annum rate range 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 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 July 31, 2016 totaled $86.3 million and were used primarily to secure insurance arrangements and to a lesser extent, commodity hedges and product purchases. Letters of credit outstanding at July 31, 2015 totaled $61.2 million and were used primarily to secure insurance arrangements and to a lesser extent, product purchases. At July 31, 2016, Ferrellgas, L.P. had available letter of credit remaining capacity of $113.7 million. At July 31, 2015 Ferrellgas, L.P. had available letter of credit remaining capacity of $138.8 million. Ferrellgas, L.P. incurred commitment fees of $1.4 million, $1.5 million and $1.2 million in fiscal 2016, 2015 and 2014, respectively. Interest rate swaps In May 2012, Ferrellgas, L.P. entered into a $140.0 million interest rate swap agreement to hedge against changes in fair value on 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. 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. The operating partnership accounted for this agreement as a fair value hedge. In May 2012, Ferrellgas, L.P. also entered into a $140.0 million interest rate swap agreement to hedge against changes in fair value on a portion of its $500.0 million 6.5% fixed rate senior notes due 2021. Ferrellgas, L.P. receives 6.5% and pays a one-month LIBOR plus 4.715%, on the $140.0 million swapped. The operating partnership accounts for this agreement as a fair value hedge. In May 2012, Ferrellgas, L.P. entered into a forward interest rate swap agreement to hedge against variability in forecasted interest payments on Ferrellgas, L.P.’s secured credit facility and collateralized note payable borrowings under the accounts receivable securitization facility. From August 2015 through July 2017, Ferrellgas, L.P. will pay 1.95% and receive variable payments based on one-month LIBOR for the notional amount of $175.0 million. From August 2017 through July 2018, Ferrellgas, L.P. will pay 1.95% and receive variable payments based on one-month LIBOR for the notional amount of $100.0 million. Ferrellgas, L.P. accounts for this agreement as a cash flow hedge. Covenants The senior notes and the credit facility agreement contain various restrictive covenants applicable to Ferrellgas, L.P. and its subsidiaries, the most restrictive relating to additional indebtedness. The only restriction that prohibits Ferrellgas, L.P. from making cash distributions, advances or loans of the minimum quarterly distribution is if a default or event of default exists or would exist upon making such distribution, advances or loans, or if Ferrellgas, L.P. fails to meet certain coverage tests. As of July 31, 2016, Ferrellgas, L.P. is in compliance with all requirements, tests, limitations and covenants related to these debt agreements. As of July 31, 2016, Ferrellgas, L.P. had no restricted net assets. Other than the senior notes and the credit facility agreement, there are no other agreements which restrict Ferrellgas, L.P.'s subsidiaries ability to transfer funds to Ferrellgas Partners in the form of cash dividends, loans or advances. See Note S - Subsequent events for disclosure related to an amendment obtained by Ferrellgas, L.P. on September 27, 2016. The scheduled annual principal payments on long-term debt are as follows:
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Partners' Capital | Partners' capital (deficit) As of July 31, 2016 and 2015, limited partner units were beneficially owned by the following:
Together these limited partner units represent Ferrellgas Partner’s limited partners’ interest and an effective 98% economic interest in Ferrellgas Partners, exclusive of the general partners’ incentive distribution rights. The general partner has an effective 2% interest in Ferrellgas Partners, excluding incentive distribution rights. Since ongoing distributions have not yet reached the levels required to commence payment of incentive distribution rights to the general partner, distributions to the partners from operations or interim capital transactions will generally be made in accordance with the above percentages. In liquidation, allocations and distributions will be made in accordance with each common unitholder’s positive capital account. The common units of Ferrellgas Partners represent limited partner interests in Ferrellgas Partners, which give the holders thereof the right to participate in distributions made by Ferrellgas Partners and to exercise the other rights or privileges available to such holders under the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated February 18, 2003, as amended (the “Partnership Agreement”). Under the terms of the Partnership Agreement, holders of common units have limited voting rights on matters affecting the business of Ferrellgas Partners. Generally, persons owning 20% or more of Ferrellgas Partners’ outstanding common units cannot vote; however, this limitation does not apply to those common units owned by the general partner or its “affiliates,” as such term is defined in the Partnership Agreement. Ferrellgas maintains shelf registration statements for the issuance of common units. The Partnership Agreement allows the general partner to issue an unlimited number of additional Ferrellgas general and limited partner interests of Ferrellgas Partners for such consideration and on such terms and conditions as shall be established by the general partner without the approval of any unitholders. Partnership distributions paid by Ferrellgas Partners
On August 26, 2016, Ferrellgas Partners declared a cash distribution of $0.5125 per common unit for the three months ended July 31, 2016, which was paid on September 14, 2016. Included in this cash distribution were the following amounts paid to related parties:
See additional discussions about transactions with related parties in Note M – Transactions with related parties. During fiscal 2015, in a non-brokered registered direct offering, which units are subject to certain contractual transfer restrictions, Ferrellgas issued to Ferrell Companies, Inc. and the former owners of two salt water disposal wells from C&E Production, LLC ("C&E") and its affiliates an aggregate of 1.5 million common units for an aggregate purchase price of $42.0 million. Ferrellgas used these proceeds to pay down a portion of the borrowing under the secured credit facility used to fund the C&E salt water disposal wells acquisition as well as propane and related equipment sales acquisitions completed in fiscal 2014. During fiscal 2015, Ferrellgas issued 6.3 million common units in a public offering valued at $139.1 million, after deducting for issuance costs. The net proceeds from this offering were used to partially fund the acquisition of Bridger. During fiscal 2015, Ferrellgas issued 11.3 million common units valued at $260.0 million in connection with the acquisitions of Bridger and propane distribution assets. During fiscal 2014, Ferrellgas, entered into an agreement with the former owners of Sable relating to a non-brokered registered direct offering of 2.0 million common units. Net proceeds of $50.0 million were used to reduce outstanding indebtedness under Ferrellgas’ secured credit facility initially used to fund the Sable acquisition. During fiscal 2014 Ferrellgas issued 0.1 million common units valued at $1.5 million in connection with acquisitions of propane distribution assets. Common unit repurchases During November, 2015, Ferrellgas repurchased approximately 2.4 million common units from Jamex Marketing, LLC, for approximately $45.9 million. See Note M – Transactions with related parties – for additional disclosure about this transaction. Accumulated Other Comprehensive Income (Loss) (“AOCI”) See Note L – Derivative instruments and hedging activities – for details regarding changes in fair value on risk management financial derivatives recorded within AOCI for the years ended July 31, 2016 and 2015. 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 fiscal 2016, the general partner made non-cash contributions of $0.7 million to Ferrellgas to maintain its effective 2% general partner interest. During fiscal 2015, the general partner made cash contributions of $13.3 million and non-cash contributions of $1.0 million to Ferrellgas to maintain its effective 2% general partner interest. |
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital | Partners’ capital (deficit) Partnership quarterly distributions paid Ferrellgas, L.P. has paid the following quarterly distributions.
On August 26, 2016, Ferrellgas, L.P. declared distributions for the three months ended July 31, 2016 to Ferrellgas Partners and the general partner of $50.3 million and $0.5 million, respectively, which were paid on September 14, 2016. Other Partnership distributions During November 2015, in connection with Ferrellgas Partners' repurchase of common units, Ferrellgas, L.P distributed $46.4 million and $0.5 million to Ferrellgas Partners and the general partner, respectively. Bridger transaction and related distributions and contributions During June 2015, in connection with the Bridger Logistics Acquisition, Ferrellgas, L.P. entered into the following transactions with Ferrellgas Partners and the general partner:
See Note D - Business combinations for details regarding the acquisition of Bridger. Other partnership contributions During fiscal 2015, Ferrellgas, L.P. received cash contributions of $42.2 million from Ferrellgas Partners. The proceeds were used to reduce outstanding indebtedness under Ferrellgas, L.P.'s secured credit facility. During fiscal 2015 Ferrellgas, L.P. received asset contributions of $3.0 million from Ferrellgas Partners in connection with acquisitions of propane distribution assets. See additional discussions about transactions with related parties in Note L – Transactions with related parties. Accumulated other comprehensive income (loss) (“AOCI”) See Note L – Derivative instruments and hedging activities – for details regarding changes in fair value on risk management financial derivatives recorded within AOCI for the years ended July 31, 2016 and 2015. 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 fiscal 2016, the general partner made non-cash contributions of $0.4 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest. During fiscal 2015, the general partner made cash contributions of $0.4 million and non-cash contributions of $0.5 million to Ferrellgas, L.P. to maintain its 1.0101% general partner interest. |
Fair Value Measurements |
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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 July 31, 2016 and 2015:
The following is a reconciliation of the opening and closing balances for the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended July 31, 2016, 2015 and 2014:
Methodology 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. The fair value of the trucks classified as assets held for sale represents Ferrellgas' estimate of expected sales price less costs to sell. The fair value measurements used to determine this value of the assets held for sale were based on a market approach utilizing prices from prior transactions and third party pricing information. The fair value of Ferrellgas' contingent consideration for the acquisition of Sable, is based upon Ferrellgas' estimate of the likelihood that the target EBITDA metric will be met and exceeded and the amount by which it could be exceeded then discounting that value at a risk- and inflation-adjusted rate. The inputs to this model are the likelihood of meeting and exceeding the target EBITDA metric and discount rate. Management and the sellers prepared an operating forecast based on Sable's operating capacities, historical performance, and projected oil and water volumes and set a target EBITDA metric. Management then assessed the likelihood of this target EBITDA metric being achieved and exceeded and assigned probabilities to various potential outcomes. To determine the appropriate discount rate, management used observable inputs such as inflation rates, short and long-term yields for U.S. government securities and Ferrellgas' nonperformance risk. Due to the significant unobservable inputs required in this measurement, management determined that the fair value measurement of the contingent consideration liability is level 3 in the fair value hierarchy. Other Financial Instruments The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. The carrying amount of the Jamex trade receivable, a financial instrument classified in "Other assets, net" on the consolidated balance sheet, also approximates the fair value based on its conversion to a note receivable on September 1, 2016, which bears a market interest rate. At July 31, 2016 and July 31, 2015, the estimated fair value of Ferrellgas’ long-term debt instruments was $1,920.1 million and $1,889.8 million, respectively. Ferrellgas estimates the fair value of long-term debt based on quoted market prices. The fair value of Ferrellgas' consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. At July 31, 2016, Ferrellgas had receivables from Jamex totaling $44.8 million. As described in Note S. Subsequent events, as well as elsewhere in this Annual Report on Form 10-K, on September 1, 2016, Ferrellgas entered into a group of agreements with Jamex which, among other things, Jamex agreed to execute and deliver a secured promissory note ("Jamex Secured Promissory Note") in favor of Bridger in satisfaction of all obligations owed to Bridger under the Jamex TLA, including the $44.8 million owed to Ferrellgas on July 31, 2016. The Jamex Secured Promissory Note is guaranteed pursuant to a guaranty agreement, jointly by James Ballengee and Bacchus (up to a maximum aggregate amount of $20.0 million), and fully guaranteed by the other Jamex entities. The obligations of Jamex and the other Jamex entities are secured by a lien on certain of those entities’ assets, including the remaining 3.9 million Ferrellgas Partners, L.P. common units owned by those entities as of September 2, 2016, and any cash distributions and proceeds in respect thereof, which are to be held in a controlled account that can be seized by Ferrellgas in the event of default. Ferrellgas has other financial instruments such as trade accounts receivable which could expose it to concentrations of credit risk. The credit risk from trade accounts receivable is limited because of a large customer base which extends across many different U.S. markets. |
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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 July 31, 2016 and 2015:
The following is a reconciliation of the opening and closing balances for the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended July 31, 2016, 2015 and 2014:
Methodology 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. The fair value of the trucks classified as assets held for sale represents Ferrellgas, L.P.'s estimate of expected sales price less costs to sell. The fair value measurements used to determine this value of the assets held for sale were based on a market approach utilizing prices from prior transactions and third party pricing information. The fair value of Ferrellgas, L.P.'s contingent consideration for the Sable acquisition is based upon Ferrellgas, L.P.'s estimate of the likelihood that the target EBITDA metric will be met and exceeded and the amount by which it could be exceeded then discounting that value at a risk- and inflation-adjusted rate. The inputs to this model are the likelihood of meeting and exceeding the target EBITDA metric and discount rate. Management and the sellers prepared an operating forecast based on Sable's operating capacities, historical performance, and projected oil and water volumes and set a target EBITDA metric. Management then assessed the likelihood of this target EBITDA metric being achieved and exceeded and assigned probabilities to various potential outcomes. To determine the appropriate discount rate, management used observable inputs such as inflation rates, short and long-term yields for U.S. government securities and our nonperformance risk. Due to the significant unobservable inputs required in this measurement, management determined that the fair value measurement of the contingent consideration liability is level 3 in the fair value hierarchy. Other Financial Instruments The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. The carrying amount of the Jamex trade receivable, a financial instrument classified in "Other assets, net" on the consolidated balance sheet, also approximates the fair value based on its conversion to a note receivable on September 1, 2016, which bears a market interest rate. At July 31, 2016 and July 31, 2015, the estimated fair value of Ferrellgas, L.P.’s long-term debt instruments was $1,736.2 million and $1,700.5 million, respectively. Ferrellgas, L.P. estimates the fair value of long-term debt based on quoted market prices. The fair value of our consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. At July 31, 2016, Ferrellgas, L.P. had receivables from Jamex totaling $44.8 million. As described in Note S. Subsequent events, as well as elsewhere in this Annual Report on Form 10-K, on September 1, 2016, Ferrellgas, L.P. entered into a group of agreements with Jamex which, among other things, Jamex agreed to execute and deliver a secured promissory note ("Jamex Secured Promissory Note") in favor of Bridger in satisfaction of all obligations owed to Bridger under the Jamex TLA, including the $44.8 million owed to Ferrellgas, L.P. on July 31, 2016. The Jamex Secured Promissory Note is guaranteed pursuant to a guaranty agreement, jointly by James Ballengee and Bacchus (up to a maximum aggregate amount of $20.0 million), and fully guaranteed by the other Jamex entities. The obligations of Jamex and the other Jamex entities are secured by a lien on certain of those entities’ assets, including the remaining 3.9 million Ferrellgas Partners, L.P. common units owned by those entities as of September 2, 2016, and any cash distributions and proceeds in respect thereof, which are to be held in a controlled account that can be seized by Ferrellgas, L.P. in the event of default. Ferrellgas, L.P. has other financial instruments such as trade accounts receivable which could expose it to concentrations of credit risk. The credit risk from trade accounts receivable is limited because of a large customer base which extends across many different U.S. markets. |
Derivative Instruments and Hedging Activities |
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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. Of these, the propane commodity derivative instruments are designated as cash flow hedges. All other commodity derivative instruments do not qualify or are not designated as cash flow hedges, therefore, the change in their fair value are recorded currently in earnings. Ferrellgas also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates, which is discussed in Note I - Debt. Additional information related to derivatives is provided in Note B – Summary of significant accounting policies. Derivative instruments and hedging activity During the year ended July 31, 2016, 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. During the year ended July 31, 2015, Ferrellgas recognized a $0.2 million loss 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 of derivatives within Ferrellgas’ consolidated balance sheets as of July 31, 2016 and 2015:
Ferrellgas' exchange traded commodity derivative contracts require cash margin deposit as collateral for contracts that are in a negative mark-to-market position. These cash margin deposits will be returned if mark-to-market conditions improve or will be applied against cash settlement when the contracts are settled. The following tables provide a summary of cash margin deposit balances as of July 31, 2016 and July 31, 2015, respectively:
The following table provides a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as fair value hedging instruments:
The following tables provide a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as cash flow hedging instruments:
The following table provides a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the year ended July 31, 2016 and 2015 due to the change in fair value of derivatives not designated as hedging instruments:
There was no effect on Ferrellgas' consolidated statement of comprehensive income for the year ended July 31, 2014 due to the change in fair value of derivatives not designated as hedging instruments. The changes in derivatives included in accumulated other comprehensive income (loss) (“AOCI”) for the years ended July 31, 2016, 2015 and 2014 were as follows:
Ferrellgas expects to reclassify net losses of approximately $7.9 million to earnings during the next 12 months. These net losses are expected to be offset by increased margins on propane sales commitments Ferrellgas has with its customers that qualify for the normal purchase normal sales exception. During the years ended July 31, 2016, 2015 and 2014, Ferrellgas had no reclassifications to earnings resulting from 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 July 31, 2016, Ferrellgas had financial derivative contracts covering 2.7 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane. As of July 31, 2016, Ferrellgas had financial derivative contracts covering 0.1 million barrels of diesel and 28 thousand barrels of unleaded gasoline related to fuel hedges in transportation of propane. As of July 31, 2016, Ferrellgas had financial derivative contracts covering 0.3 million barrels of crude oil related to the hedging of crude oil line fill and inventory. 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. Ferrellgas has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties. Based upon the gross fair values of the derivative financial instruments, the largest exposure Ferrellgas has with a single counterparty as of July 31, 2016 is $1.2 million. The operating partnership holds certain derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon the its debt rating. As of July 31, 2016, a downgrade in the Partnership’s debt rating could trigger a reduction in credit limit and would result in an additional collateral requirement of zero. There were no derivatives with credit-risk-related contingent features in a liability position on July 31, 2016 and the operating partnership had posted no collateral in the normal course of business related to such derivatives. |
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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. Of these, the propane commodity derivative instruments are designated as cash flow hedges. All other commodity derivative instruments do not qualify or are not designated as cash flow hedges, therefore, the change in their fair value are recorded currently in earnings. Ferrellgas, L.P. also periodically utilizes derivative instruments to manage its exposure to fluctuations in interest rates, which is discussed in Note I - Debt. Additional information related to derivatives is provided in Note B – Summary of significant accounting policies. Derivative instruments and hedging activity During the year ended July 31, 2016, 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. During the year ended July 31, 2015, Ferrellgas, L.P. recognized a $0.2 million loss 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 of derivatives within Ferrellgas, L.P.’s consolidated balance sheets as of July 31, 2016 and 2015:
Ferrellgas, L.P.'s exchange traded commodity derivative contracts require cash margin deposit as collateral for contracts that are in a negative mark-to-market position. These cash margin deposits will be returned if mark-to-market conditions improve or will be applied against cash settlement when the contracts are settled. The following tables provide a summary of cash margin deposit balances as of July 31, 2016 and July 31, 2015, respectively:
The following table provides a summary of the effect on Ferrellgas, L.P.’s consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as fair value hedging instruments:
The following tables provide a summary of the effect on Ferrellgas, L.P.'s consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as cash flow hedging instruments:
The following table provides a summary of the effect on Ferrellgas, L.P.'s consolidated statements of comprehensive income for the year ended July 31, 2016 and 2015 due to the change in fair value of derivatives not designated as hedging instruments:
There was no effect on Ferrellgas, L.P.'s consolidated statement of comprehensive income for the year ended July 31, 2014 due to the change in fair value of derivatives not designated as hedging instruments. The changes in derivatives included in accumulated other comprehensive income (loss) (“AOCI”) for the years ended July 31, 2016, 2015 and 2014 were as follows:
Ferrellgas, L.P. expects to reclassify net losses of approximately $7.9 million to earnings during the next 12 months. These net losses are expected to be offset by increased margins on propane sales commitments Ferrellgas, L.P. has with its customers that qualify for the normal purchase normal sales exception. During the years ended July 31, 2016, 2015 and 2014, Ferrellgas, L.P. had no reclassifications to earnings resulting from 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 July 31, 2016, Ferrellgas, L.P. had financial derivative contracts covering 2.7 million barrels of propane that were entered into as cash flow hedges of forward and forecasted purchases of propane. As of July 31, 2016, Ferrellgas, L.P. had financial derivative contracts covering 0.1 million barrels of diesel and 28 thousand barrels of unleaded gasoline related to fuel hedges in transportation of propane. As of July 31, 2016, Ferrellgas, L.P. had financial derivative contracts covering 0.3 million barrels of crude oil related to the hedging of crude oil line fill and inventory. 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. Ferrellgas, L.P. has concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties. Based upon the gross fair values of the derivative financial instruments, the largest exposure Ferrellgas, L.P. has with a single counterparty as of July 31, 2016 is $1.2 million. Ferrellgas, L.P. holds certain derivative contracts that have credit-risk-related contingent features which dictate credit limits based upon the Partnership’s debt rating. As of July 31, 2016, a downgrade in the Partnership’s debt rating could trigger a reduction in credit limit and would result in an additional collateral requirement of zero. There were no derivatives with credit-risk-related contingent features in a liability position on July 31, 2016 and Ferrellgas, L.P. had posted no collateral in the normal course of business related to such derivatives. |
Transactions With Related Parties |
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 consolidated statements of operations as follows:
During the period in which Jamex Marketing, LLC owned at least 5% of the outstanding common units, we entered into the following transactions: on November 13, 2015, we repurchased approximately 2.4 million common units from Jamex Marketing, LLC, for approximately $45.9 million; and, pursuant to the Jamex TLA, Bridger provided crude oil logistics services for Jamex Marketing, LLC, including the purchase, sale, transportation and storage of crude oil by truck, terminal and pipeline. During 2016 and 2015, Ferrellgas' total revenues from Jamex was $62.6 million and $9.4 million, respectively. During 2016 and 2015, Ferrellgas' total cost of sales from Jamex was $3.4 million and $8.4 million, respectively. The amounts due from and due to Jamex Marketing, LLC at July 31, 2016 were $44.8 million and $0.0 million, respectively. The amounts due from and due to Jamex Marketing, LLC at July 31, 2015 were $4.8 million and $4.2 million, respectively. See additional discussions about transactions with the general partner and related parties in Note J – Partners’ capital (deficit). |
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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 consolidated statements of operations as follows:
During the period in which Jamex Marketing, LLC owned at least 5% of the outstanding common units, we entered into the following transactions: on November 13, 2015, we repurchased approximately 2.4 million common units from Jamex Marketing, LLC, for approximately $45.9 million; and, pursuant to the Jamex TLA, Bridger provided crude oil logistics services for Jamex Marketing, LLC, including the purchase, sale, transportation and storage of crude oil by truck, terminal and pipeline. During 2016 and 2015, Ferrellgas' L.P.'s total revenues from Jamex was $62.6 million and $9.4 million, respectively. During 2016 and 2015, Ferrellgas' L.P.'s total cost of sales from Jamex was $3.4 million and $8.4 million, respectively. The amounts due from and to Jamex Marketing at July 31, 2016 were $44.8 million and $0.0 million, respectively. The amounts due from and to Jamex Marketing at July 31, 2015 were $4.8 million and $4.2 million, respectively. See additional discussions about transactions with the general partner and related parties in Note J – Partners’ capital (deficit). |
Contingencies And Commitments |
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 and crude oil. 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. Ferrellgas has been named as a defendant, along with a competitor, in putative class action lawsuits filed in multiple jurisdictions. The lawsuits allege that Ferrellgas and a competitor coordinated in 2008 to reduce the fill level in barbeque cylinders and combined to persuade a common customer to accept that fill reduction, resulting in increased cylinder costs to direct customers and end-user customers in violation of federal and certain state antitrust laws. The lawsuits seek treble damages, attorneys’ fees, injunctive relief and costs on behalf of the putative class. These lawsuits have been consolidated into one case by a multidistrict litigation panel. The Court has dismissed all claims brought by direct and indirect customers other than state law claims of indirect customers under Wisconsin, Maine and Vermont law. The direct customer plaintiffs have filed an appeal, which is pending. Ferrellgas believes it has strong defenses to the claims and intends to vigorously defend against the consolidated case. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuit. In addition, putative class action cases have been filed in California relating to residual propane remaining in the tank after use. Ferrellgas has prevailed at the trial court on a motion to dismiss those claims. The Plaintiffs have appealed and Ferrellgas intends to vigorously defend itself against the appeal. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuit. Long-term debt-related commitments Ferrellgas has long and short-term payment obligations under agreements such as senior notes and its secured credit facility. See Note I – Debt – for a description of these debt obligations and a schedule of future maturities. Operating lease commitments and buyouts Ferrellgas leases certain property, plant and equipment under non-cancelable and cancelable operating leases. Amounts shown in the table below represent minimum lease payment obligations under Ferrellgas’ third-party operating leases with terms in excess of one year for the periods indicated. These arrangements include the leasing of transportation equipment, property, computer equipment and propane tanks. Ferrellgas accounts for these arrangements as operating leases. Ferrellgas is required to recognize a liability for the fair value of guarantees. The only material guarantees Ferrellgas has are associated with residual value guarantees of operating leases. Most of the operating leases involving Ferrellgas’ transportation equipment contain residual value guarantees. These transportation equipment lease arrangements are scheduled to expire over the next seven fiscal years. Most of these arrangements provide that the fair value of the equipment will equal or exceed a guaranteed amount, or Ferrellgas will be required to pay the lessor the difference. The fair value of these residual value guarantees was $1.6 million as of July 31, 2016. Although the fair values of the underlying equipment at the end of the lease terms have historically exceeded these guaranteed amounts, the maximum potential amount of aggregate future payments Ferrellgas could be required to make under these leasing arrangements, assuming the equipment is worthless at the end of the lease term, was $7.9 million as of July 31, 2016. Ferrellgas does not know of any event, demand, commitment, trend or uncertainty that would result in a material change to these arrangements. Operating lease buyouts represent the maximum amount Ferrellgas would pay if it were to exercise its right to buyout the assets at the end of their lease term. The following table summarizes Ferrellgas’ contractual operating lease commitments and buyout obligations as of July 31, 2016:
Certain property and equipment is leased under non-cancelable operating leases, which require fixed monthly rental payments and which expire at various dates through 2026. Rental expense under these leases totaled $49.2 million, $45.0 million and $35.6 million for fiscal 2016, 2015 and 2014, respectively. |
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Ferrellgas Partners Finance Corp. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies And Commitments | Contingencies and commitments The Finance Corp. serves as co-issuer and co-obligor for debt securities of the Partnership. The senior unsecured notes contain various restrictive covenants applicable to the Partnership and its subsidiaries, the most restrictive relating to additional indebtedness. As of July 31, 2016, the Partnership is in compliance with all requirements, tests, limitations and covenants related to this debt agreement. |
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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 and crude oil. 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. Ferrellgas L.P. has been named as a defendant, along with a competitor, in putative class action lawsuits filed in multiple jurisdictions. The lawsuits allege that Ferrellgas L.P. and a competitor coordinated in 2008 to reduce the fill level in barbeque cylinders and combined to persuade a common customer to accept that fill reduction, resulting in increased cylinder costs to direct customers and end-user customers in violation of federal and certain state antitrust laws. The lawsuits seek treble damages, attorneys’ fees, injunctive relief and costs on behalf of the putative class. These lawsuits have been consolidated into one case by a multidistrict litigation panel. The Court has dismissed all claims brought by direct and indirect customers other than state law claims of indirect customers under Wisconsin, Maine and Vermont law. The direct customer plaintiffs have filed an appeal, which is pending. Ferrellgas L.P. believes it has strong defenses to the claims and intends to vigorously defend against the consolidated case. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuit. In addition, putative class action cases have been filed in California relating to residual propane remaining in the tank after use. Ferrellgas L.P. has prevailed at the trial court on a motion to dismiss those claims. The Plaintiffs have appealed and Ferrellgas L.P. intends to vigorously defend itself against the appeal. Ferrellgas does not believe loss is probable or reasonably estimable at this time related to the putative class action lawsuit. Long-term debt-related commitments Ferrellgas, L.P. has long and short-term payment obligations under agreements such as senior notes and its credit facility. See Note I – Debt – for a description of these debt obligations and a schedule of future maturities. Operating lease commitments and buyouts Ferrellgas, L.P. leases certain property, plant and equipment under non-cancelable and cancelable operating leases. Amounts shown in the table below represent minimum lease payment obligations under Ferrellgas, L.P.’s third-party operating leases with terms in excess of one year for the periods indicated. These arrangements include the leasing of transportation equipment, property, computer equipment and propane tanks. Ferrellgas, L.P. accounts for these arrangements as operating leases. Ferrellgas, L.P. is required to recognize a liability for the fair value of guarantees. The only material guarantees Ferrellgas, L.P. has are associated with residual value guarantees of operating leases. Most of the operating leases involving Ferrellgas, L.P.’s transportation equipment contain residual value guarantees. These transportation equipment lease arrangements are scheduled to expire over the next seven fiscal years. Most of these arrangements provide that the fair value of the equipment will equal or exceed a guaranteed amount, or Ferrellgas, L.P. will be required to pay the lessor the difference. The fair value of these residual value guarantees was $1.6 million as of July 31, 2016. Although the fair values of the underlying equipment at the end of the lease terms have historically exceeded these guaranteed amounts, the maximum potential amount of aggregate future payments Ferrellgas, L.P. could be required to make under these leasing arrangements, assuming the equipment is worthless at the end of the lease term, was $7.9 million as of July 31, 2016. Ferrellgas, L.P. does not know of any event, demand, commitment, trend or uncertainty that would result in a material change to these arrangements. Operating lease buyouts represent the maximum amount Ferrellgas, L.P. would pay if it were to exercise its right to buyout the assets at the end of their lease term. The following table summarizes Ferrellgas, L.P.’s contractual operating lease commitments and buyout obligations as of July 31, 2016:
Certain property and equipment is leased under non-cancelable operating leases, which require fixed monthly rental payments and which expire at various dates through 2026. Rental expense under these leases totaled $49.2 million, $45.0 million and $35.6 million for fiscal 2016, 2015 and 2014, respectively. |
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Ferrellgas Finance Corp. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies And Commitments | Contingencies and commitments The Finance Corp. serves as co-issuer and co-obligor for debt securities of the Partnership. The senior notes agreements contain various restrictive covenants applicable to the Partnership and its subsidiaries, the most restrictive relating to additional indebtedness. As of July 31, 2016, the Partnership is in compliance with all requirements, tests, limitations and covenants related to these debt agreements. |
Employee Benefits |
12 Months Ended |
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Jul. 31, 2016 | |
Employee Benefits | Employee benefits Ferrellgas has no employees and is managed and controlled by its general partner. Ferrellgas assumes all liabilities, which include specific liabilities related to the following employee benefit plans for the benefit of the officers and employees of the general partner. Ferrell Companies makes contributions to the ESOT, which causes a portion of the shares of Ferrell Companies owned by the ESOT to be allocated to employees’ accounts over time. The allocation of Ferrell Companies’ shares to employee accounts causes a non-cash compensation charge to be incurred by Ferrellgas, equivalent to the fair value of such shares allocated. This non-cash compensation charge is reported separately in Ferrellgas’ consolidated statements of operations and thus excluded from operating and general and administrative expenses. The non-cash compensation charges were $27.6 million, $24.7 million and $21.8 million during fiscal 2016, 2015 and 2014, respectively. Ferrellgas is not obligated to fund or make contributions to the ESOT. The general partner and its parent, Ferrell Companies, have a defined contribution profit-sharing plan which includes both profit sharing and matching contribution features. The plan covers substantially all full time employees. The plan, which qualifies under section 401(k) of the Internal Revenue Code, also provides for matching contributions under a cash or deferred arrangement based upon participant salaries and employee contributions to the plan. Matching contributions for fiscal 2016, 2015 and 2014 were $4.0 million, $3.9 million and $3.6 million, respectively. The general partner has a defined benefit plan that provides participants who were covered under a previously terminated plan with a guaranteed retirement benefit at least equal to the benefit they would have received under the terminated plan. Until July 31, 1999, benefits under the terminated plan were determined by years of credited service and salary levels. As of July 31, 1999, years of credited service and salary levels were frozen. The general partner’s funding policy for this plan is to contribute amounts deductible for Federal income tax purposes and invest the plan assets primarily in corporate stocks and bonds, U.S. Treasury bonds and short-term cash investments. During fiscal 2016, 2015 and 2014, other comprehensive income and other liabilities were adjusted by $0.3 million, $(0.2) million and $0.3 million, respectively. |
Ferrellgas, L.P. [Member] | |
Employee Benefits | Employee benefits Ferrellgas, L.P. has no employees and is managed and controlled by its general partner. Ferrellgas, L.P. assumes all liabilities, which include specific liabilities related to the following employee benefit plans for the benefit of the officers and employees of the general partner. Ferrell Companies makes contributions to the ESOT, which causes a portion of the shares of Ferrell Companies owned by the ESOT to be allocated to employees’ accounts over time. The allocation of Ferrell Companies’ shares to employee accounts causes a non-cash compensation charge to be incurred by Ferrellgas, L.P., equivalent to the fair value of such shares allocated. This non-cash compensation charge is reported separately in Ferrellgas, L.P.’s consolidated statements of operations and thus excluded from operating and general and administrative expenses. The non-cash compensation charges were $27.6 million, $24.7 million and $21.8 million during fiscal 2016, 2015 and 2014, respectively. Ferrellgas, L.P. is not obligated to fund or make contributions to the ESOT. The general partner and its parent, Ferrell Companies, have a defined contribution profit-sharing plan which includes both profit sharing and matching contribution features. The plan covers substantially all full time employees. The plan, which qualifies under section 401(k) of the Internal Revenue Code, also provides for matching contributions under a cash or deferred arrangement based upon participant salaries and employee contributions to the plan. Matching contributions for fiscal 2016, 2015 and 2014 were $4.0 million, $3.9 million and $3.6 million, respectively. The general partner has a defined benefit plan that provides participants who were covered under a previously terminated plan with a guaranteed retirement benefit at least equal to the benefit they would have received under the terminated plan. Until July 31, 1999, benefits under the terminated plan were determined by years of credited service and salary levels. As of July 31, 1999, years of credited service and salary levels were frozen. The general partner’s funding policy for this plan is to contribute amounts deductible for Federal income tax purposes and invest the plan assets primarily in corporate stocks and bonds, U.S. Treasury bonds and short-term cash investments. During fiscal 2016, 2015 and 2014, other comprehensive income and other liabilities were adjusted by $0.3 million, $(0.2) million and $0.3 million, respectively. |
Net Earnings (Loss) Per Common Unitholders' Interest |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Per Common Unitholders' Interest | Net earnings (loss) per common unitholders’ interest Below is a calculation of the basic and diluted net earnings per common unitholders’ interest in the consolidated statements of operations for the periods indicated. In accordance with guidance issued by the FASB regarding 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. Due to the seasonality of Ferrellgas' business, the dilutive effect of the two-class method typically impacts only the three months ending January 31. 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 as follows.
There was not a dilutive effect resulting from this guidance on basic and diluted net earnings per common unitholders’ interest for fiscal 2016, 2015 and 2014. 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 the Ferrellgas Partners’ partnership agreement that would apply to periods in which there were no undistributed earnings. Additionally, in periods with net losses, there are no dilutive securities.
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Segment Reporting Segment Reporting |
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Segment Reporting Disclosure | Segment reporting Ferrellgas has two primary operations: propane and related equipment sales and midstream operations. These two operations result in two reportable operating segments: propane and related equipment sales and midstream operations - crude oil logistics. During June 2015, subsequent to an acquisition, Ferrellgas formed a new midstream operation - crude oil logistics segment. The chief operating decision maker evaluates the operating segments using an Adjusted EBITDA performance measure which is based on earnings (loss) before income tax benefit, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, non-cash stock-based compensation charge, asset impairments, loss sale of assets and disposal, other income (expense), net, change in fair value of contingent consideration, severance costs, litigation accrual and related legal fees associated with a class action lawsuit, acquisition and transition expenses, unrealized (non-cash) losses on changes in fair value of derivatives not designated as hedging instruments and net earnings (loss) attributable to noncontrolling interests. This performance measure is not a GAAP measure, however the components are computed using amounts that are determined in accordance with GAAP. A reconciliation of this performance measure to net earnings attributable to Ferrellgas Partners L.P., which is its nearest comparable GAAP measure, is included in the tables below. In management's evaluation of performance, certain costs, such as compensation for administrative staff and executive management, are not allocated by segment and, accordingly, the following reportable segment results do not include such unallocated costs. The accounting policies of the operating segments are otherwise the same as those described in the summary of significant accounting policies in Note B. Assets reported within a segment are those assets that can be identified to a segment and primarily consist of trade receivables, property, plant and equipment, inventories, identifiable intangible assets and goodwill. Cash, certain prepaid assets and other assets are not allocated to segments. Although Ferrellgas can and does identify long-lived assets such as property, plant and equipment and identifiable intangible assets to reportable segments, Ferrellgas does not allocate the related depreciation and amortization to the segment as management evaluates segment performance exclusive of these non-cash charges. The propane and related equipment sales segment primarily includes 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. The midstream operations - crude oil logistics segment primarily includes a domestic crude oil transportation and logistics provider with an integrated portfolio of midstream assets. These assets connect crude oil production in prolific unconventional resource plays to downstream markets. Bridger’s truck, pipeline terminal, pipeline, rail and maritime assets form a comprehensive, fee-for-service business model, and substantially all of its cash flow is expected to be generated from fee-based commercial agreements. Bridger’s fee-based business model generates income by providing crude oil transportation and logistics services on behalf of producers and end users of crude oil. Until April 2016, Ferrellgas utilized a structure that included three reportable segments resulting from the Bridger Logistics Acquisition completed in June 2015 and the Sable acquisition completed in May 2014. Following April 2016, Ferrellgas utilized a structure that included two reportable segments which includes propane and related equipment sales segment and the midstream operations - crude oil logistics segment. The results from midstream operations - water solutions segment, which is no longer considered a reportable segment, is now reported within Corporate and other. Following is a summary of segment information for the years ended July 31, 2016, 2015 and 2014.
(1) Direct costs are comprised of "cost of sales-propane and other gas liquids sales", "cost of sales-other", "cost of sales-midstream operations", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock compensation charge", "asset impairments", "change in fair value of contingent consideration", "litigation accrual and related legal fees associated with a class action lawsuit", "acquisition and transition expenses" and "unrealized (non-cash) losses on changes in fair value of derivatives not designated as hedging instruments". Following is a reconciliation of Ferrellgas' total segment performance measure to consolidated net earnings:
Following are total assets by segment:
Following are capital expenditures by segment (unaudited):
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure | Segment reporting Ferrellgas, L.P. has two primary operations: propane and related equipment sales and midstream operations. These two operations result in two reportable operating segments: propane and related equipment sales and midstream operations - crude oil logistics. During June 2015, subsequent to an acquisition, Ferrellgas, L.P. formed a new midstream operation - crude oil logistics segment. The chief operating decision maker evaluates the operating segments using an Adjusted EBITDA performance measure which is based on earnings (loss) before income tax benefit, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, non-cash stock-based compensation charge, asset impairments, loss on asset sales and disposal, other income (expense), net, change in fair value of contingent consideration, severance costs, litigation accrual and related legal fees associated with a class action lawsuit, acquisition and transition expenses and unrealized (non-cash) losses on changes in fair value of derivatives not designated as hedging instruments. This performance measure is not a GAAP measure, however, the components are computed using amounts that are determined in accordance with GAAP. A reconciliation of this performance measure to net earnings, which is its nearest comparable GAAP measure, is included in the tables below. In management's evaluation of performance, certain costs, such as compensation for administrative staff and executive management, are not allocated by segment and, accordingly, the following reportable segment results do not include such unallocated costs. The accounting policies of the operating segments are otherwise the same as those described in the summary of significant accounting policies in Note B. Assets reported within a segment are those assets that can be identified to a segment and primarily consist of trade receivables, property, plant and equipment, inventories, identifiable intangible assets and goodwill. Cash, certain prepaid assets and other assets are not allocated to segments. Although Ferrellgas, L.P. can and does identify long-lived assets such as property, plant and equipment and identifiable intangible assets to reportable segments, Ferrellgas, L.P. does not allocate the related depreciation and amortization to the segment as management evaluates segment performance exclusive of these non-cash charges. The propane and related equipment sales segment primarily includes 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. The midstream operations - crude oil logistics segment primarily includes a domestic crude oil transportation and logistics provider with an integrated portfolio of midstream assets. These assets connect crude oil production in prolific unconventional resource plays to downstream markets. Bridger's truck, pipeline terminal, pipeline, rail and maritime assets form a comprehensive, fee-for-service business model, and substantially all of its cash flow is expected to be generated from fee-based commercial agreements. Bridger's fee-based business model generates income by providing crude oil transportation and logistics services on behalf of producers and end users of crude oil. Until April 2016, Ferrellgas, L.P. utilized a structure that included three reportable segments resulting from the Bridger Logistics Acquisition completed in June 2015 and the Sable acquisition completed in May 2014. Following April 2016, Ferrellgas, L.P. utilized a structure that included two reportable segments which includes propane and related equipment sales segment and the midstream operations - crude oil logistics segment. The results from midstream operations - water solutions segment, which is no longer considered a reportable segment, is now reported within Corporate and other. Following is a summary of segment information for the years ended July 31, 2016 and 2015.
(1) Direct costs are comprised of "cost of sales-propane and other gas liquids sales", "cost of sales-other", "cost of sales-midstream operations", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock compensation charge", "asset impairments", "change in fair value of contingent consideration", "litigation accrual and related legal fees associated with a class action lawsuit", "acquisition and transition expenses" and "unrealized (non-cash) losses on changes in fair value of derivatives not designated as hedging instruments". Following is a reconciliation of Ferrellgas, L.P.'s total segment performance measure to consolidated net earnings:
Following are total assets by segment:
Following are capital expenditures by segment (unaudited):
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Quarterly Data (Unaudited) |
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Quarterly Data | Quarterly data (unaudited) The following summarized unaudited quarterly data includes all adjustments (consisting only of normal recurring adjustments, with the exception of those items indicated below), which Ferrellgas considers necessary for a fair presentation. Due to the seasonality of the propane distribution business, first and fourth quarter Revenues, gross margin from propane and other gas liquids sales, Net earnings (loss) attributable to Ferrellgas Partners and common unitholders’ interest in net earnings (loss) are consistently less than the second and third quarter results. Other factors affecting the results of operations include competitive conditions, demand for product, timing of acquisitions, variations in the weather and fluctuations in propane prices. The sum of basic and diluted net earnings (loss) per common unitholders’ interest by quarter may not equal the basic and diluted net earnings (loss) per common unitholders’ interest for the year due to variations in the weighted average units outstanding used in computing such amounts.
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Data | Quarterly data (unaudited) The following summarized unaudited quarterly data includes all adjustments (consisting only of normal recurring adjustments, with the exception of those items indicated below), which Ferrellgas, L.P. considers necessary for a fair presentation. Due to the seasonality of the propane distribution business, first and fourth quarter Revenues, gross margin from propane and other gas liquids sales and Net earnings are consistently less than the second and third quarter results. Other factors affecting the results of operations include competitive conditions, demand for product, timing of acquisitions, variations in the weather and fluctuations in propane prices.
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Income Taxes |
12 Months Ended |
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Jul. 31, 2016 | |
Ferrellgas Partners Finance Corp. [Member] | |
Income Taxes | Income taxes Income taxes have been computed separately as the Finance Corp. files its own income tax return. Deferred income taxes are provided as a result of temporary differences between financial and tax reporting using the asset/liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and tax basis of existing assets and liabilities. Due to the inability of the Finance Corp. to utilize the deferred tax benefit of $7,468 associated with the net operating loss carryforward of $19,198, which expire at various dates through July 31, 2036, a valuation allowance has been provided on the full amount of the deferred tax asset. Accordingly, there is no net deferred tax benefit for fiscal 2016, 2015 or 2014, and there is no net deferred tax asset as of July 31, 2016 and 2015. |
Ferrellgas Finance Corp. [Member] | |
Income Taxes | Income taxes Income taxes have been computed separately as the Finance Corp. files its own income tax return. Deferred income taxes are provided as a result of temporary differences between financial and tax reporting using the asset/liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and tax basis of existing assets and liabilities. Due to the inability of the Finance Corp. to utilize the deferred tax benefit of $23,445 associated with the net operating loss carryforward of $60,271, which expires at various dates through July 31, 2036, a valuation allowance has been provided on the full amount of the deferred tax asset. Accordingly, there is no net deferred tax benefit for fiscal 2016, 2015 or 2014, and there is no net deferred tax asset as of July 31, 2016 and 2015. |
Guarantor financial information Guarantor financial information |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor financial information | Guarantor financial information The $500.0 million aggregate principal amount of registered 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are fully and unconditionally and joint and severally guaranteed by all of Ferrellgas, L.P.’s 100% owned subsidiaries except: i) Ferrellgas Finance Corp; ii) certain special purposes subsidiaries formed for use in connection with our accounts receivable securitization; and iii) foreign subsidiaries. Guarantees of these senior notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the assets of a guarantor or (b) all of the capital stock of such guarantor (including by way of merger or consolidation), in each case, to a person that is not Ferrellgas, L.P. or a restricted subsidiary of Ferrellgas, L.P., (ii) if Ferrellgas, L.P. designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon defeasance or discharge of the notes, (iv) upon the liquidation or dissolution of such guarantor, or (v) at such time as such guarantor ceases to guarantee any other indebtedness of either of the issuers and any other guarantor. The guarantor financial information discloses in separate columns the financial position, results of operations and the cash flows of Ferrellgas, L.P. (Parent), Ferrellgas Finance Corp. (co-issuer), Ferrellgas L.P.’s guarantor subsidiaries on a combined basis, and Ferrellgas L.P.’s non-guarantor subsidiaries on a combined basis. The dates and the periods presented in the guarantor financial information are consistent with the periods presented in Ferrellgas, L.P.’s consolidated financial statements.
(1) Revised to reclassify debt issuance costs for our senior notes from other assets to long-term debt for all balance sheet dates presented (see Note B to our consolidated financial statements included in this Annual Report).
(1) Revised to reclassify debt issuance costs for our senior notes from other assets to long-term debt for all balance sheet dates presented (see Note B to our consolidated financial statements included in this Annual Report).
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Subsequent Events |
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent events Termination of Bridger agreement with Jamex Marketing, LLC In connection with the closing of our acquisition of Bridger in June 2015, Bridger entered into a ten-year transportation and logistics agreement (the “Jamex TLA”) with Jamex pursuant to which Jamex would be responsible for certain payments to Bridger and also for sourcing crude oil volumes for Bridger’s largest customer. As a result of concerns regarding the collectability of amounts owed to Bridger from Jamex under the Jamex TLA and certain other matters between Bridger and Jamex as further described in Note C - Asset impairments, Bridger, Jamex, Ferrellgas Partners, L.P. and certain other affiliated parties entered into a group of agreements that terminated the Jamex TLA, facilitated Ferrellgas purchasing certain Ferrellgas common units from Jamex, and established payment terms for certain amounts owed by Jamex to Bridger under the Jamex TLA. Consequently, Ferrellgas does not anticipate any material contribution to revenue or EBITDA from Jamex or Bridger's largest customer in the future. On September 1, 2016, Bridger and Ferrellgas entered into a Termination, Settlement and Release Agreement (the “Jamex Termination Agreement”) with Jamex, certain of Jamex's affiliates, and James Ballengee (the owner of Jamex) pursuant to which:
The Jamex Secured Promissory Note has an annual interest rate of 7% (which rate would be reduced under certain circumstances), and contemplates quarterly amortizing principal payments, together with payments of accrued interest. The first payment, due December 17, 2016, will be an interest-only payment of approximately $1.0 million. The maturity date of the Jamex Secured Promissory Note will be December 17, 2021. Jamex will be allowed to prepay the Secured Promissory Note in whole or in part at any time. The Jamex Revolving Promissory Note, which provides Jamex with access to working capital liquidity to meet their unrelated and ongoing crude oil marketing and other business needs, has an annual interest rate of 0% (which rate would be increased in case of a default), and contains certain conditions precedent to the operating partnership’s obligation to make any advances thereunder. Each borrowing under the Jamex Revolving Promissory Note must be repaid within 10 days, and the ultimate maturity date of the Jamex Revolving Promissory Note is the earlier of September 1, 2021 and the date on which all obligations under the Jamex Secured Promissory Note are repaid. The Jamex Secured Promissory Note is guaranteed, pursuant to a Guaranty Agreement, jointly by James Ballengee and Bacchus (up to a maximum aggregate amount of $20.0 million), and each Note is fully guaranteed, pursuant to respective Guaranty Agreements, by the other Jamex entities. The obligations of Jamex and the other Jamex entities under the Notes are secured, pursuant to a Security Agreement, by a lien on certain of those entities’ assets, including the remaining 3.9 million common units owned by those entities and any cash distributions and proceeds in respect thereof, which are to be held in a controlled account that can be seized by Ferrellgas in the event of default. During the year ended July 31, 2016, approximately 60% of Midstream Operations - Crude oil logistics' segment (Bridger) gross margin was generated from its largest customer and Jamex, that customer's supplier, under take-or-pay arrangements. Bridger’s largest customer during the fiscal year ended July 31, 2016 owns a refinery in Trainer, Pennsylvania. Bridger is party to an agreement with this customer under which Bridger provided logistics services to transport crude oil from the Bakken region in North Dakota to the Trainer refinery. That agreement has a minimum volume commitment and payment obligation from the refinery for logistics services associated with the delivery of 65 MBbls/d. However, if the quantity of crude oil delivered to the refinery dropped below 35 MBbls/d, the minimum volume commitment and payment obligation from the refinery would be suspended and Jamex would become responsible for payments to Bridger under the pay provisions of the Jamex TLA. During February 2016, Jamex ceased sourcing barrels for delivery to the refinery and since that time Bridger had been billing Jamex directly in accordance with the pay provisions of the Jamex TLA. During July 2016, Ferrellgas determined Jamex would not resume sourcing barrels for delivery to the refinery or be likely to continue to make payments under the pay provisions of the Jamex TLA. As a result, Ferrellgas began negotiating a settlement with Jamex, and the Jamex TLA was terminated on September 1, 2016. While the agreement with the refinery owner was not terminated as a result of the execution and delivery of the Jamex Termination Agreement, Bridger has been unable to negotiate a revised transportation and logistics agreement with that customer; accordingly it is unlikely that Bridger will continue to make any deliveries under the existing agreement. Consequently, we do not anticipate any material contribution to revenue or gross margin from Jamex or Bridger's largest customer in the future. Secured credit facility and accounts receivable securitization facility amendments Ferrellgas' secured credit facility and accounts receivable securitization facility requires the operating partnership to maintain a leverage ratio of no more than 5.5x. Ferrellgas' leverage ratio is defined as the ratio of total debt of the operating partnership to trailing twelve month EBITDA of the operating partnership (adjusted for certain, defined items), as detailed in Ferrellgas' secured credit facility and accounts receivable securitization facility. Ferrellgas' leverage ratio was 5.48x as of July 31, 2016, which equates to headroom of $8.1 million or 0.3%, primarily because of the combination of (1) a $44.8 million unpaid accounts receivable balance due from Jamex at July 31, 2016; (2) the $45.9 million purchase of 2.4 million common units from Jamex in November 2015; (3) a $16.9 million repurchase of 0.9 million of Ferrellgas Partners' common units from Jamex on September 1, 2016; (4) Midstream operations - crude oil logistics (Bridger) growth capital expenditures of approximately $52.4 million; (5) the warm weather in fiscal 2016 which was 19% warmer than normal and 16% warmer than fiscal 2015, which led to reduced demand for propane; and (6) the decline in our water solutions business. Based on Ferrellgas' current internal forecast we believe it is likely its leverage ratio will exceed 5.5x at the end of the fiscal quarter ending October 31, 2016. Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Because of this leverage ratio requirement Ferrellgas is embarking on a strategy to reduce its debt. This strategy may include a reduction in Ferrellgas' annual distribution, which will continue to be determined by the board of directors of our general partner on a quarter-by-quarter basis. As of the date of this Annual Report on Form 10-K, the quarterly distribution for the first quarter of fiscal 2017 has not been determined, but Ferrellgas' board believes that it is possible that the annual distribution rate may be reduced from $2.05 to approximately $1.00 per common unit. Ferrellgas believes that any such reduction, together with any other debt reducing actions taken, would likely remain in effect until its leverage ratio reaches a level that Ferrellgas deems appropriate for its business. Ferrellgas has evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas’ consolidated financial statements were issued and, other than as discussed above, concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements. |
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Ferrellgas Partners Finance Corp. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent events The Finance Corp. has evaluated events and transactions occurring after the balance sheet date through the date the Finance Corp.’s consolidated financial statements were issued, and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements. |
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent events Termination of Bridger agreement with Jamex Marketing, LLC In connection with the closing of our acquisition of Bridger in June 2015, Bridger entered into a ten-year transportation and logistics agreement (the “Jamex TLA”) with Jamex pursuant to which Jamex would be responsible for certain payments to Bridger and also for sourcing crude oil volumes for Bridger’s largest customer. As a result of concerns regarding the collectability of amounts owed to Bridger from Jamex under the Jamex TLA and certain other matters between Bridger and Jamex as further described in Note C - Asset impairments, Bridger, Jamex, Ferrellgas Partners and certain other affiliated parties entered into a group of agreements that terminated the Jamex TLA, facilitated Ferrellgas Partners purchasing certain Ferrellgas Partners common units from Jamex, and established payment terms for certain amounts owed by Jamex to Bridger under the Jamex TLA. Consequently, Ferrellgas Partners does not anticipate any material contribution to revenue or EBITDA from Jamex or Bridger's largest customer in the future. On September 1, 2016, Bridger and Ferrellgas Partners entered into a Termination, Settlement and Release Agreement (the “Jamex Termination Agreement”) with Jamex, certain of Jamex's affiliates, and James Ballengee (the owner of Jamex) pursuant to which:
The Jamex Secured Promissory Note has an annual interest rate of 7% (which rate would be reduced under certain circumstances), and contemplates quarterly amortizing principal payments, together with payments of accrued interest. The first payment, due December 17, 2016, will be an interest-only payment of approximately $1.0 million. The maturity date of the Jamex Secured Promissory Note will be December 17, 2021. Jamex will be allowed to prepay the Secured Promissory Note in whole or in part at any time. The Jamex Revolving Promissory Note, which provides Jamex with access to working capital liquidity to meet their unrelated and ongoing crude oil marketing and other business needs, has an annual interest rate of 0% (which rate would be increased in case of a default), and contains certain conditions precedent to the operating partnership’s obligation to make any advances thereunder. Each borrowing under the Jamex Revolving Promissory Note must be repaid within 10 days, and the ultimate maturity date of the Jamex Revolving Promissory Note is the earlier of September 1, 2021 and the date on which all obligations under the Jamex Secured Promissory Note are repaid. The Jamex Secured Promissory Note is guaranteed, pursuant to a Guaranty Agreement, jointly by James Ballengee and Bacchus (up to a maximum aggregate amount of $20.0 million), and each Note is fully guaranteed, pursuant to respective Guaranty Agreements, by the other Jamex entities. The obligations of Jamex and the other Jamex entities under the Notes are secured, pursuant to a Security Agreement, by a lien on certain of those entities’ assets, including the remaining 3.9 million common units owned by those entities and any cash distributions and proceeds in respect thereof, which are to be held in a controlled account that can be seized by Ferrellgas, L.P. in the event of default. During the year ended July 31, 2016, approximately 60% of Midstream Operations - Crude oil logistics' segment (Bridger) gross margin was generated from its largest customer and Jamex, that customer's supplier, under take-or-pay arrangements. Bridger’s largest customer during the fiscal year ended July 31, 2016 owns a refinery in Trainer, Pennsylvania. Bridger is party to an agreement with this customer under which Bridger provided logistics services to transport crude oil from the Bakken region in North Dakota to the Trainer refinery. That agreement has a minimum volume commitment and payment obligation from the refinery for logistics services associated with the delivery of 65 MBbls/d. However, if the quantity of crude oil delivered to the refinery dropped below 35 MBbls/d, the minimum volume commitment and payment obligation from the refinery would be suspended and Jamex would become responsible for payments to Bridger under the pay provisions of the Jamex TLA. During February 2016, Jamex ceased sourcing barrels for delivery to the refinery and since that time Bridger had been billing Jamex directly in accordance with the pay provisions of the Jamex TLA. During July 2016, Ferrellgas, L.P. determined Jamex would not resume sourcing barrels for delivery to the refinery or be likely to continue to make payments under the pay provisions of the Jamex TLA. As a result, we began negotiating a settlement with Jamex, and the Jamex TLA was terminated on September 1, 2016. While the agreement with the refinery owner was not terminated as a result of the execution and delivery of the Jamex Termination Agreement, Bridger has been unable to negotiate a revised transportation and logistics agreement with that customer; accordingly it is unlikely that Bridger will continue to make any deliveries under the existing agreement. Consequently, we do not anticipate any material contribution to revenue or gross margin from Jamex or Bridger's largest customer in the future. Secured credit facility and accounts receivable securitization facility amendments Ferrellgas, L.P.'s secured credit facility and accounts receivable securitization facility requires the operating partnership to maintain a leverage ratio of no more than 5.5x. Ferrellgas, L.P.'s leverage ratio is defined as the ratio of total debt of the operating partnership to trailing twelve month EBITDA of the operating partnership (adjusted for certain, defined items), as detailed in Ferrellgas, L.P.'s secured credit facility and accounts receivable securitization facility. Ferrellgas, L.P.'s leverage ratio was 5.48x as of July 31, 2016, which equates to headroom of $8.1 million or 0.3%, primarily because of the combination of (1) a $44.8 million unpaid accounts receivable balance due from Jamex at July 31, 2016; (2) the $45.9 million purchase of 2.4 million common units from Jamex in November 2015; (3) a $16.9 million repurchase of 0.9 million of Ferrellgas Partners' common units from Jamex on September 1, 2016; (4) Midstream operations - crude oil logistics (Bridger) growth capital expenditures of approximately $52.4 million; (5) the warm weather in fiscal 2016 which was 19% warmer than normal and 16% warmer than fiscal 2015, which led to reduced demand for propane; and (6) the decline in our water solutions business. Based on Ferrellgas, L.P.'s current internal forecast we believe it is likely its leverage ratio will exceed 5.5x at the end of the fiscal quarter ending October 31, 2016. Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Because of this leverage ratio requirement Ferrellgas, L.P. is embarking on a strategy to reduce its debt. This strategy may include a reduction in Ferrellgas Partners' annual distribution, which will continue to be determined by the board of directors of our general partner on a quarter-by-quarter basis. As of the date of this Annual Report on Form 10-K, the quarterly distribution for the first quarter of fiscal 2017 has not been determined, but the general partner's board believes that it is possible that the annual distribution rate may be reduced from $2.05 to approximately $1.00 per common unit. Ferrellgas, L.P. believes that any such reduction, together with any other debt reducing actions taken, would likely remain in effect until its leverage ratio reaches a level that Ferrellgas, L.P. deems appropriate for its business. Ferrellgas, L.P. has evaluated events and transactions occurring after the balance sheet date through the date Ferrellgas, L.P.’s consolidated financial statements were issued and, other than as discussed above, concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements. |
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Subsequent Events | Subsequent events The Finance Corp. has evaluated events and transactions occurring after the balance sheet date through the date the Finance Corp.’s consolidated financial statements were issued, and concluded that there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements. |
Schedule I Parent Only Balance Sheets, Statements Of Earnings And Cash Flows |
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Guarantor financial information |
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Schedule II Valuation And Qualifying Accounts |
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Schedule II Valuation And Qualifying Accounts |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II Valuation And Qualifying Accounts |
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Summary Of Significant Accounting Policies (Policy) |
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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 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 assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. |
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Principles of consolidation | Principles of consolidation: The accompanying consolidated financial statements present the consolidated financial position, results of operations and cash flows of Ferrellgas Partners, its wholly-owned subsidiary, Ferrellgas Partners Finance Corp., and the operating partnership, its majority-owned subsidiary, after elimination of all intercompany accounts and transactions. The accounts of Ferrellgas Partners’ majority-owned subsidiary are included based on the determination that the operating partnership is a variable interest entity for whom Ferrellgas Partners has no ability through voting rights or similar rights to make decisions and thus does not have the power to direct the activities of the operating partnership that most significantly impact economic performance. However, Ferrellgas Partners has the obligation to absorb the losses of and the right to receive benefits from the operating partnership that are significant to the operating partnership. Furthermore, assets and liabilities of Ferrellgas Partners consist substantially of the operating partnership. The operating partnership includes the accounts of its wholly-owned subsidiaries. The general partner’s approximate 1% general partner interest in the operating partnership is accounted for as a noncontrolling interest. The wholly-owned consolidated subsidiary of the operating partnership, Ferrellgas Receivables, LLC (“Ferrellgas Receivables”), is a special purpose entity that has agreements with the operating partnership to securitize, on an ongoing basis, a portion of its trade accounts receivable. |
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Supplemental cash flow information | Supplemental cash flow information: For purposes of the consolidated statements of cash flows, Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Certain cash flow and significant non-cash activities are presented below:
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Fair value measurements | Fair value measurements: Ferrellgas measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.
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Accounts receivable securitization | Accounts receivable securitization: Through its wholly-owned and consolidated subsidiary Ferrellgas Receivables, Ferrellgas has agreements to securitize, on an ongoing basis, a portion of its trade accounts receivable. |
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Inventories | Inventories: Inventories are stated at the lower of cost or market using weighted average cost and actual cost methods. |
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Property, plant and equipment | Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and routine repairs are expensed as incurred. Ferrellgas capitalizes computer software, equipment replacement and betterment expenditures that upgrade, replace or completely rebuild major mechanical components and extend the original useful life of the equipment. Depreciation is calculated using the straight-line method based on the estimated useful lives of the assets ranging from two to 30 years. Ferrellgas, using its best estimates based on reasonable and supportable assumptions and projections, tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of its assets or asset groups might not be recoverable. The recoverability tests for property, plant and equipment are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the asset group. |
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Goodwill | Goodwill: Ferrellgas records goodwill as the excess of the cost of acquisitions over the fair value of the related net assets at the date of acquisition. Ferrellgas tests goodwill for impairment annually during the second quarter or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas has determined that it has five reporting units for goodwill impairment testing purposes. As of July 31, 2016, two of these reporting units contain goodwill that is subject to at least an annual assessment for impairment by applying a fair-value-based test. Under this test, the carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the date of the evaluation on a specific identification basis. To the extent a reporting unit’s carrying value exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the second step of the impairment test must be performed. In the second step, the implied fair value of goodwill is determined by assigning the fair value of a reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for that excess. Ferrellgas completed its last annual goodwill impairment test on January 31, 2016 and did not incur an impairment loss. |
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Intangible assets | Intangible assets: Intangible assets with finite useful lives, consisting primarily of customer related assets, non-compete agreements, permits, favorable lease arrangements and patented technology, are stated at cost, net of accumulated amortization calculated using the straight-line method over periods ranging from two to 15 years. When necessary, intangible assets’ useful lives are revised and the impact on amortization reflected on a prospective basis. Trade names and trademarks have indefinite lives, are not amortized, and are stated at cost. Ferrellgas tests finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of these assets or asset groups might not be recoverable. Ferrellgas tests indefinite-lived intangible assets for impairment annually on January 31 or more frequently if circumstances dictate. The recoverability tests for definite-lived intangible assets are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the asset group. |
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Derivative instruments and hedging activities | Derivative instruments and hedging activities: Commodity and Transportation Fuel Price Risk. Ferrellgas’ overall objective for entering into commodity based derivative contracts, including commodity options and swaps, is to hedge a portion of its exposure to market fluctuations in propane, gasoline, diesel and crude oil prices. Ferrellgas’ risk management activities primarily attempt to mitigate price risks related to the purchase, storage, transport and sale of propane and crude oil generally in the contract and spot markets from major domestic energy companies on a short-term basis. Ferrellgas attempts to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts. Additionally, Ferrellgas risk management activities attempt to mitigate price risks related to the purchase of gasoline and diesel fuel for use in the transport of propane from retail fueling stations through the use of financial derivative instruments. Ferrellgas’ risk management strategy involves taking positions in the forward or financial markets that are equal and opposite to Ferrellgas’ 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 Ferrellgas’ gains or losses in the physical product markets are offset by its losses or gains in the forward or financial markets. The propane related financial derivatives are designated as cash flow hedges. The gasoline and diesel related financial derivatives are not formally designated and documented as a hedge of exposure to fluctuations in the market price of fuel. Ferrellgas’ risk management activities may include the use of financial derivative instruments including, but not limited to, swaps, options, and futures to seek protection from adverse price movements and to minimize potential losses. Ferrellgas enters 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. All of Ferrellgas’ financial derivative instruments are reported on the consolidated balance sheets at fair value. Ferrellgas also enters 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 Ferrellgas’ financial statements until settled. On the date that derivative contracts are entered into, other than those designated as normal purchases or normal sales, Ferrellgas makes a determination as to whether the derivative instrument qualifies for designation as a hedge. These financial instruments are formally designated and documented as a hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transaction. Because of the high degree of correlation between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the anticipated cash flows of the underlying exposure being hedged. Since the fair value of these derivatives fluctuates over their contractual lives, their fair value amounts should not be viewed in isolation, but rather in relation to the anticipated cash flows of the underlying hedged transaction and the overall reduction in Ferrellgas’ risk relating to adverse fluctuations in propane prices. Ferrellgas formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the anticipated cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is recognized in “Cost of product sold - propane and other gas liquids sales” in the consolidated statements of operations. Financial instruments formally designated and documented as a hedge of a specific underlying exposure are recorded gross at fair value as either “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities”, or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in other comprehensive income. Financial instruments not formally designated and documented as a hedge of a specific underlying exposure are recorded at fair value as “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities”, or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in "Cost of sales - midstream operations" and "Operating expense" on the consolidated statements of operations. Interest Rate Risk. Ferrellgas’ overall objective for entering into interest rate derivative contracts, including swaps, is to manage its exposure to interest rate risk associated with its fixed rate senior notes and its floating rate borrowings from both the secured credit facility and the accounts receivable securitization facility. Fluctuations in interest rates subject Ferrellgas to interest rate risk. Decreases in interest rates increase the fair value of Ferrellgas’ fixed rate debt, while increases in interest rates subject Ferrellgas to the risk of increased interest expense related to its variable rate borrowings. Ferrellgas enters into fair value hedges to help reduce its fixed interest rate risk. Interest rate swaps are used to hedge the exposure to changes in the fair value of fixed rate debt due to changes in interest rates. Fixed rate debt that has been designated as being hedged is recorded at fair value while the fair value of interest rate derivatives that are considered fair value hedges are classified as “Prepaid expenses and other current assets”, “Other assets, net”, Other current liabilities” or as “Other liabilities” on the consolidated balance sheets. Changes in the fair value of fixed rate debt and any related fair value hedges are recognized as they occur in “Interest expense” on the consolidated statements of operations. Ferrellgas enters into cash flow hedges to help reduce its variable interest rate risk. Interest rate swaps are used to hedge the risk associated with rising interest rates and their effect on forecasted interest payments related to variable rate borrowings. These interest rate swaps are designated as cash flow hedges. Thus, the effective portions of changes in the fair value of the hedges are recorded in “Prepaid expenses and other current assets”, “Other assets, net”, “Other current liabilities” or as “Other liabilities” with an offsetting entry to “Other comprehensive income” at interim periods and are subsequently recognized as interest expense in the consolidated statement of earnings when the forecasted transaction impacts earnings. Changes in the fair value of any cash flow hedges that are considered ineffective are recognized as interest expense on the consolidated statement of earnings as they occur. |
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Revenue recognition | Revenue recognition: Revenues from Ferrellgas' propane and related equipment sales segment are recognized at the time product is delivered with payments generally due 30 days after receipt. Amounts are considered past due after 30 days. Ferrellgas determines accounts receivable allowances based on management’s assessment of the creditworthiness of the customers and other collection actions. Ferrellgas offers “even pay” billing programs that can create customer deposits or advances. Revenue is recognized from these customer deposits or advances to customers at the time product is delivered. Other revenues, which include revenue from the sale of propane appliances and equipment is recognized at the time of delivery or installation. Ferrellgas recognizes shipping and handling revenues and expenses for sales of propane, appliances and equipment at the time of delivery or installation. Shipping and handling revenues are included in the price of propane charged to customers, and are classified as revenue. Revenues from annually billed, non-refundable propane tank rentals are recognized in “Revenues: other” on a straight-line basis over one year. Revenues from Ferrellgas' midstream operations - crude oil logistics segment include crude oil sales, pipeline tariffs, trucking fees, rail throughput fees, pipeline management services, leasing, throughput, and storage; all items deemed as being associated with the transportation of crude oil. These revenues are recognized upon completion of the related service or delivery of product. |
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Shipping and handling expenses | Shipping and handling expenses: Shipping and handling expenses related to delivery personnel, vehicle repair and maintenance and general liability expenses are classified within “Operating expense” in the consolidated statements of operations. Depreciation expenses on delivery vehicles Ferrellgas owns are classified within “Depreciation and amortization expense.” Delivery vehicles and distribution technology leased by Ferrellgas are classified within “Equipment lease expense.” See Note F – Supplemental financial statement information – for the financial statement presentation of shipping and handling expenses. |
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Cost of product sold | Cost of sales: “Cost of sales – propane and other gas liquids sales” includes all costs to acquire propane and other gas liquids, the costs of storing and transporting inventory prior to delivery to Ferrellgas’ customers, the results from risk management activities to hedge related price risk and the costs of materials related to the refurbishment of Ferrellgas’ portable propane tanks. "Cost of sales - midstream operations" includes all costs incurred to purchase and transport crude oil, including the costs of terminaling and transporting crude oil prior to delivery to customers. “Cost of sales – other” primarily includes costs related to the sale of propane appliances and equipment. |
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Operating expenses | Operating expenses: “Operating expense” primarily includes the personnel, vehicle, delivery, handling, plant, office, selling, marketing, credit and collections and other expenses related to the retail distribution of propane and related equipment and supplies. Within midstream operations, "Operating expense" includes plant, office, selling, marketing, credit and collections and other expense. |
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General and administrative expenses | General and administrative expenses: “General and administrative expense” primarily includes personnel and incentive expense related to executives, and employees and other overhead expense related to centralized corporate functions. |
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Stock-based and unit option plans | Stock-based plans: Ferrell Companies, Inc. Incentive Compensation Plans (“ICPs”) The ICPs are not Ferrellgas stock-compensation plans; however, in accordance with Ferrellgas’ partnership agreements, all Ferrellgas employee-related costs incurred by Ferrell Companies are allocated to Ferrellgas. As a result, Ferrellgas incurs a non-cash compensation charge from Ferrell Companies. During the years ended July 31, 2016, 2015 and 2014, the portion of the total non-cash compensation charge relating to the ICPs was $9.3 million, $25.6 million and $24.5 million, respectively. Ferrell Companies is authorized to issue up to 9.25 million stock appreciation rights (“SARs”) that are based on shares of Ferrell Companies common stock. The SARs were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The SARs awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. Effective July 31, 2015, Ferrell Companies is authorized to issue deferred appreciation right ("DARs") awards that are based on shares of Ferrell Companies common stock. The DAR awards were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The DAR awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. |
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Income taxes | Income taxes: Ferrellgas Partners is a publicly-traded master limited partnership with one subsidiary that is a taxable corporation. The operating partnership is a limited partnership with three subsidiaries that are taxable corporations. Partnerships are generally not subject to federal income tax, although publicly-traded partnerships are treated as corporations for federal income tax purposes and therefore subject to Federal income tax unless a qualifying income test is satisfied. If this qualifying income test is satisfied, the publicly-traded partnership will be treated as a partnership for Federal income tax purposes. Based on Ferrellgas’ calculations, Ferrellgas Partners satisfies the qualifying income test. As a result, except for the taxable corporations, Ferrellgas Partners’ earnings or losses for Federal income tax purposes are included in the tax returns of the individual partners, Ferrellgas Partners’ unitholders. Accordingly, the accompanying consolidated financial statements of Ferrellgas Partners reflect federal income taxes related to the above mentioned taxable corporations and certain states that allow for income taxation of partnerships. Net earnings for financial statement purposes may differ significantly from taxable income reportable to Ferrellgas Partners unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities, the taxable income allocation requirements under Ferrellgas Partners’ partnership agreement and differences between Ferrellgas Partners' financial reporting year end and its calendar tax year end. Income tax expense (benefit) consisted of the following:
Deferred taxes consisted of the following:
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Sales taxes | Sales taxes: Ferrellgas accounts for the collection and remittance of sales tax on a net tax basis. As a result, these amounts are not reflected in the consolidated statements of operations. |
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Net earnings (loss) per common unitholders' interest | Net earnings (loss) per common unitholders’ interest: Net earnings (loss) per common unitholders’ interest is computed by dividing “Net earnings (loss) attributable to Ferrellgas Partners, L.P.,” after deducting the general partner's 1% interest, by the weighted average number of outstanding common units and the dilutive effect, if any, of outstanding unit options. See Note P – Net earnings (loss) per common unitholders’ interest – for further discussion about these calculations. |
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Loss Contingencies | Loss contingencies: In the normal course of business, Ferrellgas is involved in various claims and legal proceedings. Ferrellgas records a liability for such matters when it is probable that a loss has been incurred and the amounts can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. Legal costs associated with these loss contingencies are expensed as incurred. |
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Impairment or Disposal of Long-Lived Assets | Assets held for sale: Assets held for sale represent trucks that have met the criteria of “held for sale” accounting. During the first quarter of fiscal 2016, Ferrellgas committed to a plan to sell certain trucks held by the Midstream operations - crude oil logistics segment. These assets were reclassified from "Vehicles, including transport trailers" to Assets held for sale in the balance sheet as of October 31, 2015. Ferrellgas ceased depreciation on these assets during October 2015. Assets held for sale are recorded at the lower of the carrying amount or fair value less costs to sell. See Note F – Supplemental financial statement information – for further discussion of these held for sale assets. |
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Debt issuance costs | Debt issuance costs: In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. At July 31, 2016, we adopted this ASU, which requires certain debt issuance costs to be reported as a reduction to the carrying amount of the long-term debt. Ferrellgas has applied this ASU retrospectively to its July 31, 2015 consolidated balance sheet. Additionally, in August 2015, the FASB issued ASU No. 2015-15, which provides additional guidance related to the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. An entity may still present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Ferrellgas will continue to report such debt issuance costs as other assets. The following table compares the other asset and long-term debt balances as currently reported to the amounts that would have been reported under the old accounting standard. See Note I – Debt – for further discussion of debt issuance costs.
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New accounting standards | New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board (IASB) to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Early application is not permitted. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. FASB Accounting Standard Update No. 2015-02 In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, which provides additional guidance on the consolidation of limited partnerships and on the evaluation of variable interest entities. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-06 In September 2015, the FASB issued ASU 2015-06, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments, which requires all entities to record the effects on earnings, if any, of changes in provisional amounts for items in a business combination in the same period in which the adjustment amounts are determined. The requirement to retrospectively account for the adjustments is eliminated by this amendment. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
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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 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 assets, residual values of tanks, capitalization of customer tank installation costs, amortization methods of intangible assets, valuation methods used to value sales returns and allowances, allowance for doubtful accounts, fair value of reporting units, recoverability of long-lived assets, assumptions used to value business combinations, fair values of derivative contracts and stock-based compensation calculations. |
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Principles of consolidation | Principles of consolidation: The accompanying consolidated financial statements present the consolidated financial position, results of operations and cash flows of Ferrellgas, L.P. and its subsidiaries after elimination of all intercompany accounts and transactions. Ferrellgas, L.P. consolidates the following wholly-owned entities: Bridger Logistics, LLC, Sable Environmental, LLC, Sable SWD 2, LLC, Blue Rhino Global Sourcing, Inc., Blue Rhino Canada, Inc., Ferrellgas Real Estate, Inc., Ferrellgas Finance Corp. and Ferrellgas Receivables, LLC (“Ferrellgas Receivables”), a special purpose entity that has agreements with Ferrellgas, L.P. to securitize, on an ongoing basis, a portion of its trade accounts receivable. |
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Supplemental cash flow information | Supplemental cash flow information: For purposes of the 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:
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Fair value measurements | Fair value measurements: Ferrellgas, L.P. measures certain of its assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants – in either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. The common framework for measuring fair value utilizes a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.
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Accounts receivable securitization | Accounts receivable securitization: Through its wholly-owned and consolidated subsidiary Ferrellgas Receivables, Ferrellgas, L.P. has agreements to securitize, on an ongoing basis, a portion of its trade accounts receivable. |
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Inventories | Inventories: Inventories are stated at the lower of cost or market using weighted average cost and actual cost methods. |
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Property, plant and equipment | Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and routine repairs are expensed as incurred. Ferrellgas, L.P. capitalizes computer software, equipment replacement and betterment expenditures that upgrade, replace or completely rebuild major mechanical components and extend the original useful life of the equipment. Depreciation is calculated using the straight-line method based on the estimated useful lives of the assets ranging from two to 30 years. Ferrellgas, L.P., using its best estimates based on reasonable and supportable assumptions and projections, tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of its assets or asset groups might not be recoverable. The recoverability tests for property, plant and equipment are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas, L.P. management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the assets. |
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Goodwill | Goodwill: Ferrellgas, L.P. records goodwill as the excess of the cost of acquisitions over the fair value of the related net assets at the date of acquisition. Ferrellgas, L.P. tests goodwill for impairment annually during the second quarter or more frequently if events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit is less than the carrying value. Ferrellgas, L.P. has determined that it has five reporting units for goodwill impairment testing purposes. As of July 31, 2016, two of these reporting units contain goodwill that is subject to at least an annual assessment for impairment by applying a fair-value-based test. Under this test, the carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the date of the evaluation on a specific identification basis. To the extent a reporting unit’s carrying value exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the second step of the impairment test must be performed. In the second step, the implied fair value of goodwill is determined by assigning the fair value of a reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for that excess. Ferrellgas, L.P. completed its last annual goodwill impairment test on January 31, 2016 and did not incur an impairment loss. |
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Intangible assets | Intangible assets: Intangible assets with finite useful lives, consisting primarily of customer related assets, non-compete agreements, permits, favorable lease arrangements and patented technology, are stated at cost, net of accumulated amortization calculated using the straight-line method over periods ranging from two to 15 years. When necessary, intangible assets’ useful lives are revised and the impact on amortization reflected on a prospective basis. Trade names and trademarks have indefinite lives, are not amortized, and are stated at cost. Ferrellgas, L.P. tests finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of these assets or asset groups might not be recoverable. Ferrellgas, L.P. tests indefinite-lived intangible assets for impairment annually on January 31 or more frequently if circumstances dictate. The recoverability tests for definite-lived intangible assets are performed at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The recoverability test is performed by determining the carrying value of the asset group and comparing it to the estimated expected undiscounted future cash flows of the asset group. The expected future cash flows are estimated based on Ferrellgas, L.P. management's plans. If the carrying value exceeds the expected undiscounted future cash flows, an impairment loss is recognized for the difference between the estimated fair market value and the carrying value of the assets. |
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Derivative instruments and hedging activities | Derivative instruments and hedging activities: Commodity and Transportation Fuel Price Risk. Ferrellgas, L.P.’s overall objective for entering into commodity based derivative contracts, including commodity options and swaps, is to hedge a portion of its exposure to market fluctuations in propane, gasoline, diesel and crude oil prices. Ferrellgas, L.P's risk management activities primarily attempt to mitigate price risks related to the purchase, storage, transport and sale of propane and crude oil generally in the contract and spot markets from major domestic energy companies on a short-term basis. Ferrellgas, L.P attempts to mitigate these price risks through the use of financial derivative instruments and forward propane purchase and sales contracts. Additionally, Ferrellgas, L.P.'s risk management activities attempt to mitigate price risks related to the purchase of gasoline and diesel fuel for use in the transport of propane from retail fueling stations through the use of financial derivative instruments. Ferrellgas, L.P.’s risk management strategy involves taking positions in the forward or financial markets that are equal and opposite to Ferrellgas, L.P.’s 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 Ferrellgas, L.P.’s gains or losses in the physical product markets are offset by its losses or gains in the forward or financial markets. These financial derivatives are designated as cash flow hedges. The gasoline and diesel related financial derivatives are not formally designated and documented as a hedge of exposure to fluctuations in the market price of fuel. Ferrellgas, L.P.’s risk management activities may include the use of financial derivative instruments including, but not limited to, swaps, options, and futures to seek protection from adverse price movements and to minimize potential losses. Ferrellgas, L.P. enters 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. All of Ferrellgas, L.P.’s financial derivative instruments are reported on the consolidated balance sheets at fair value. Ferrellgas, L.P. also enters 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 Ferrellgas, L.P.’s financial statements until settled. On the date that derivative contracts are entered into, other than those designated as normal purchases or normal sales, Ferrellgas, L.P. makes a determination as to whether the derivative instrument qualifies for designation as a hedge. These financial instruments are formally designated and documented as a hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transaction. Because of the high degree of correlation between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the anticipated cash flows of the underlying exposure being hedged. Since the fair value of these derivatives fluctuates over their contractual lives, their fair value amounts should not be viewed in isolation, but rather in relation to the anticipated cash flows of the underlying hedged transaction and the overall reduction in Ferrellgas, L.P.’s risk relating to adverse fluctuations in propane prices. Ferrellgas, L.P. formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the anticipated cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is recognized in “Cost of product sold - propane and other gas liquids sales” in the consolidated statements of operations. Financial instruments formally designated and documented as a hedge of a specific underlying exposure are recorded gross at fair value as either “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities” or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in other comprehensive income. Financial instruments not formally designated and documented as a hedge of a specific underlying exposure are recorded at fair value as “Prepaid expenses and other current assets”, "Other assets, net", “Other current liabilities”, or "Other liabilities" on the consolidated balance sheets with changes in fair value reported in "Cost of sales - midstream operations" and "Operating expense" on the consolidated statements of operations. Interest Rate Risk. Ferrellgas, L.P.’s overall objective for entering into interest rate derivative contracts, including swaps, is to manage its exposure to interest rate risk associated with its fixed rate senior notes and its floating rate borrowings from both the secured credit facility and the accounts receivable securitization facility. Fluctuations in interest rates subject Ferrellgas, L.P. to interest rate risk. Decreases in interest rates increase the fair value of Ferrellgas, L.P.’s fixed rate debt, while increases in interest rates subject Ferrellgas, L.P. to the risk of increased interest expense related to its variable rate borrowings. Ferrellgas, L.P. enters into fair value hedges to help reduce its fixed interest rate risk. Interest rate swaps are used to hedge the exposure to changes in the fair value of fixed rate debt due to changes in interest rates. Fixed rate debt that has been designated as being hedged is recorded at fair value while the fair value of interest rate derivatives that are considered fair value hedges are classified as “Prepaid expenses and other current assets”, “Other assets, net”, “Other current liabilities” or as “Other liabilities” on the consolidated balance sheets. Changes in the fair value of fixed rate debt and any related fair value hedges are recognized as they occur in “Interest expense” on the consolidated statements of operations. Ferrellgas, L.P. enters into cash flow hedges to help reduce its variable interest rate risk. Interest rate swaps are used to hedge the risk associated with rising interest rates and their effect on forecasted interest payments related to variable rate borrowings. These interest rate swaps are designated as cash flow hedges. Thus, the effective portions of changes in the fair value of the hedges are recorded in “Prepaid expenses and other current assets”, “Other assets, net”, “Other current liabilities” or as “Other liabilities” with an offsetting entry to “Other comprehensive income” at interim periods and are subsequently recognized as interest expense in the consolidated statement of earnings when the forecasted transaction impacts earnings. Changes in the fair value of any cash flow hedges that are considered ineffective are recognized as interest expense on the consolidated statement of earnings as they occur. |
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Revenue recognition | Revenue recognition: Revenues from Ferrellgas, L.P.'s propane and related equipment sales segment are recognized at the time product is delivered with payments generally due 30 days after receipt. Amounts are considered past due after 30 days. Ferrellgas, L.P. determines accounts receivable allowances based on management’s assessment of the creditworthiness of the customers and other collection actions. Ferrellgas, L.P. offers “even pay” billing programs that can create customer deposits or advances. Revenue is recognized from these customer deposits or advances to customers at the time product is delivered. Other revenues, which include revenue from the sale of propane appliances and equipment is recognized at the time of delivery or installation. Ferrellgas, L.P. recognizes shipping and handling revenues and expenses for sales of propane, appliances and equipment at the time of delivery or installation. Shipping and handling revenues are included in the price of propane charged to customers, and are classified as revenue. Revenues from annually billed, non-refundable propane tank rentals are recognized in “Revenues: other” on a straight-line basis over one year. Revenues from Ferrellgas, L.P.'s midstream operations - crude oil logistics segment include crude oil sales, pipeline tariffs, trucking fees, rail throughput fees, pipeline management services, leasing, throughput, and storage; all items deemed as being associated with the transportation of crude oil. These revenues are recognized upon completion of the related service or delivery of product. |
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Shipping and handling expenses | Shipping and handling expenses: Shipping and handling expenses related to delivery personnel, vehicle repair and maintenance and general liability expenses are classified within “Operating expense” in the consolidated statements of operations. Depreciation expenses on delivery vehicles Ferrellgas, L.P. owns are classified within “Depreciation and amortization expense.” Delivery vehicles and distribution technology leased by Ferrellgas, L.P. are classified within “Equipment lease expense.” See Note F – Supplemental financial statement information – for the financial statement presentation of shipping and handling expenses. |
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Cost of product sold | Cost of sales: “Cost of sales – propane and other gas liquids sales” includes all costs to acquire propane and other gas liquids, the costs of storing and transporting inventory prior to delivery to Ferrellgas, L.P.’s customers, the results from risk management activities to hedge related price risk and the costs of materials related to the refurbishment of Ferrellgas, L.P.’s portable propane tanks. "Cost of sales - midstream operations" includes all costs incurred to purchase and transport crude oil, including the costs of terminaling and transporting crude oil prior to delivery to customers. “Cost of sales – other” primarily includes costs related to the sale of propane appliances and equipment. |
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Operating expenses | Operating expenses: “Operating expense” primarily includes the personnel, vehicle, delivery, handling, plant, office, selling, marketing, credit and collections and other expenses related to the retail distribution of propane and related equipment and supplies. Within midstream operations, "Operating expense" includes plant, office, selling, marketing, credit and collections and other expense. |
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General and administrative expenses | General and administrative expenses: “General and administrative expense” primarily includes personnel and incentive expense related to executives, and employees and other overhead expense related to centralized corporate functions. |
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Stock-based and unit option plans | Stock-based plans: Ferrell Companies, Inc. Incentive Compensation Plans (“ICPs”) The ICPs are not Ferrellgas, L.P. stock-compensation plans; however, in accordance with Ferrellgas, L.P.’s partnership agreements, all Ferrellgas, L.P. employee-related costs incurred by Ferrell Companies are allocated to Ferrellgas, L.P. As a result, Ferrellgas, L.P. incurs a non-cash compensation charge from Ferrell Companies. During the years ended July 31, 2016, 2015 and 2014, the portion of the total non-cash compensation charge relating to the ICPs was $9.3 million, $25.6 million and $24.5 million, respectively. Ferrell Companies is authorized to issue up to 9.25 million stock appreciation rights (“SARs”) that are based on shares of Ferrell Companies common stock. The SARs were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The SARs awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. Effective July 31, 2015, Ferrell Companies is authorized to issue deferred appreciation right ("DARs") awards that are based on shares of Ferrell Companies common stock. The DAR awards were established by Ferrell Companies to allow upper-middle and senior level managers as well as directors of the general partner to participate in the equity growth of Ferrell Companies. The DAR awards vest ratably over periods ranging from zero to 12 years or 100% upon a change of control of Ferrell Companies, or upon the death, disability or retirement at the age of 65 of the participant. All awards expire 10 or 15 years from the date of issuance. The fair value of each award is estimated on each balance sheet date using a binomial valuation model. |
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Income taxes | Income taxes: Ferrellgas, L.P. is a limited partnership and owns three subsidiaries that are taxable corporations. As a result, except for the taxable corporations, Ferrellgas, L.P.’s earnings or losses for federal income tax purposes are included in the tax returns of the individual partners. Accordingly, the accompanying consolidated financial statements of Ferrellgas, L.P. reflect federal income taxes related to the above mentioned taxable corporations and certain states that allow for income taxation of partnerships. Net earnings for financial statement purposes may differ significantly from taxable income reportable to partners as a result of differences between the tax basis and financial reporting basis of assets and liabilities, the taxable income allocation requirements under Ferrellgas, L.P.’s partnership agreement and differences between Ferrellgas, L.P.’s financial reporting year end and limited partners tax year end. Income tax expense (benefit) consisted of the following:
Deferred taxes consisted of the following:
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Sales taxes | Sales taxes: Ferrellgas, L.P. accounts for the collection and remittance of sales tax on a net tax basis. As a result, these amounts are not reflected in the consolidated statements of operations. |
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Loss Contingencies | Loss contingencies: In the normal course of business, Ferrellgas, L.P. is involved in various claims and legal proceedings. Ferrellgas, L.P. records a liability for such matters when it is probable that a loss has been incurred and the amounts can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. Legal costs associated with these loss contingencies are expensed as incurred. |
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Impairment or Disposal of Long-Lived Assets | Assets held for sale: Assets held for sale represent trucks that have met the criteria of “held for sale” accounting. During the first quarter of fiscal 2016, Ferrellgas committed to a plan to sell certain trucks held by the Midstream operations - crude oil logistics segment. These assets were reclassified from "Vehicles, including transport trailers" to Assets held for sale in the balance sheet as of October 31, 2015. Ferrellgas ceased depreciation on these assets during October 2015. Assets held for sale are recorded at the lower of the carrying amount or fair value less costs to sell. See Note F – Supplemental financial statement information – for further discussion of these held for sale assets. |
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Debt issuance costs | Debt issuance costs: In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. At July 31, 2016, Ferrellgas, L.P. adopted this ASU, which requires certain debt issuance costs to be reported as a reduction to the carrying amount of the long-term debt. Ferrellgas, L.P. has applied this ASU retrospectively to its July 31, 2015 consolidated balance sheet. Additionally, in August 2015, the FASB issued ASU No. 2015-15, which provides additional guidance related to the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. An entity may still present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Ferrellgas, L.P. will continue to report such debt issuance costs as other assets. The following table compares the other asset and long-term debt balances as currently reported to the amounts that would have been reported under the old accounting standard. See Note I – Debt – for further discussion of debt issuance costs.
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New accounting standards | New accounting standards: FASB Accounting Standard Update No. 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The issuance is part of a joint effort by the FASB and the International Accounting Standards Board (IASB) to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for Ferrellgas, L.P. for its annual reporting period beginning August 1, 2018, including interim periods within that reporting period. Early application is not permitted. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. Ferrellgas, L.P. is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the consolidated financial statements. FASB Accounting Standard Update No. 2015-02 In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis which provides additional guidance on the consolidation of limited partnerships and on the evaluation of variable interest entities. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-06 In September 2015, the FASB issued ASU 2015-06, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments, which requires all entities to record the effects on earnings, if any, of changes in provisional amounts for items in a business combination in the same period in which the adjustment amounts are determined. The requirement to retrospectively account for the adjustments is eliminated by this amendment. ASU 2015-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2015-11 In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. ASU 2015-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on the consolidated financial statements. FASB Accounting Standard Update No. 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. FASB Accounting Standard Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Ferrellgas is currently evaluating the impact of its pending adoption of this standard on the consolidated financial statements. |
Summary Of Significant Accounting Policies (Tables) |
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table compares the other asset and long-term debt balances as currently reported to the amounts that would have been reported under the old accounting standard. See Note I – Debt – for further discussion of debt issuance costs.
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Significant Cash And Non-Cash Activities | Certain cash flow and significant non-cash activities are presented below:
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Summary Of Income Tax Expense | Income tax expense (benefit) consisted of the following:
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Deferred Tax Assets And Liabilities | Deferred taxes consisted of the following:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table compares the other asset and long-term debt balances as currently reported to the amounts that would have been reported under the old accounting standard. See Note I – Debt – for further discussion of debt issuance costs.
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Significant Cash And Non-Cash Activities | Certain cash flow and significant non-cash activities are presented below:
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Summary Of Income Tax Expense | Income tax expense (benefit) consisted of the following:
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Deferred Tax Assets And Liabilities | Deferred taxes consisted of the following:
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Business Combinations (Tables) |
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquired, Income Statement Impact | The following amounts from this acquisition were included in the operating results for the year ending July 31, 2015:
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Business Acquisition, Pro Forma Information | These unaudited pro forma results are for comparative purposes only and may not be indicative of the results that would have occurred had this acquisition been completed on August 1, 2013 or the results that would be attained in the future.
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquired, Income Statement Impact | The following amounts from this acquisition were included in the operating results for the year ending July 31, 2015:
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Business Acquisition, Pro Forma Information | These unaudited pro forma results are for comparative purposes only and may not be indicative of the results that would have occurred had this acquisition been completed on August 1, 2013 or the results that would be attained in the future.
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Propane and related equipment sales [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Funding Of Acquisitions | These acquisitions were funded as follows on their dates of acquisition:
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Aggregate Fair Value Of Transaction | The aggregate fair values, for the acquisitions in propane and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:
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Propane and related equipment sales [Member] | Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Funding Of Acquisitions | These acquisitions were funded as follows on their dates of acquisition:
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Aggregate Fair Value Of Transaction | The aggregate fair values, for the acquisitions in propane and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:
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Midstream Operations - Water Solutions [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Funding Of Acquisitions | These acquisitions were funded as follows on their dates of acquisition:
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Aggregate Fair Value Of Transaction | The aggregate fair values for these acquisitions were allocated as follows:
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Midstream Operations - Water Solutions [Member] | Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Funding Of Acquisitions | These acquisitions were funded as follows on their dates of acquisition:
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Aggregate Fair Value Of Transaction | The aggregate fair values for these acquisitions were allocated as follows:
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Midstream - Crude Oil Logistics [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Fair Value Of Transaction | The following table summarizes the final calculation of the fair values of the assets acquired and liabilities assumed:
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Midstream - Crude Oil Logistics [Member] | Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Fair Value Of Transaction | The following table summarizes the final calculation of the fair values of the assets acquired and liabilities assumed:
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Supplemental Financial Statement Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Disclosure [Text Block] | Other assets, net consist of the following:
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Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Loss on asset sales and disposal during the year ended July 31, 2016 consists of:
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Schedule Of Inventories | Inventories consist of the following:
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Property, Plant And Equipment | Property, plant and equipment, net consist of the following:
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Other Current Liabilities | Other current liabilities consist of the following:
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Shipping And Handling Expenses | Shipping and handling expenses are classified in the following consolidated statements of operations line items:
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Disclosure [Text Block] | Other assets, net consist of the following:
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Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Loss on asset sales and disposal during the year ended July 31, 2016 consists of:
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Schedule Of Inventories | Inventories consist of the following:
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Property, Plant And Equipment | Property, plant and equipment, net consist of the following:
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Other Current Liabilities | Other current liabilities consist of the following:
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Shipping And Handling Expenses | Shipping and handling expenses are classified in the following consolidated statements of operations line items:
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Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio | On September 27, 2016, Ferrellgas entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Accounts And Notes Receivable | Accounts and notes receivable, net consist of the following:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio | On September 27, 2016, Ferrellgas, L.P. entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Accounts And Notes Receivable | Accounts and notes receivable, net consist of the following:
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Goodwill And Intangible Assets, Net (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets, Net | Goodwill and intangible assets, net consist of the following:
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Schedule of Goodwill Rollforward | Changes in the carrying amount of goodwill, by operating segment, are as follows:
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Schedule Of Aggregate Amortization Expense |
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Schedule Of Estimated Amortization Expense |
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets, Net | Goodwill and intangible assets, net consist of the following:
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Schedule of Goodwill Rollforward | Changes in the carrying amount of goodwill, by reportable segment, are as follows:
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Schedule Of Aggregate Amortization Expense |
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Schedule Of Estimated Amortization Expense |
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Debt (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio | On September 27, 2016, Ferrellgas entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Components Of Long-term Debt | Long-term debt consists of the following:
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Scheduled Annual Principal Payments On Long-term Debt | The scheduled annual principal payments on long-term debt are as follows:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio | On September 27, 2016, Ferrellgas, L.P. entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Components Of Long-term Debt | Long-term debt consists of the following:
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Scheduled Annual Principal Payments On Long-term Debt | The scheduled annual principal payments on long-term debt are as follows:
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Partners' Capital (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited Partner Units | As of July 31, 2016 and 2015, limited partner units were beneficially owned by the following:
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Ferrellgas Paid Cash Distributions |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ferrellgas Paid Cash Distributions | Ferrellgas, L.P. has paid the following quarterly distributions.
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Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Expected To Be Paid To Related Parties | Included in this cash distribution were the following amounts paid to related parties:
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Fair Value Measurement (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Fair Value Heirarchy | 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 July 31, 2016 and 2015:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a reconciliation of the opening and closing balances for the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended July 31, 2016, 2015 and 2014:
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Fair Value Inputs, Liabilities, Quantitative Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity of Unobservable Inputs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Fair Value Heirarchy | 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 July 31, 2016 and 2015:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a reconciliation of the opening and closing balances for the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended July 31, 2016, 2015 and 2014:
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Fair Value Inputs, Liabilities, Quantitative Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity of Unobservable Inputs |
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Derivatives Balance Sheet Locations | The following tables provide a summary of the fair value of derivatives within Ferrellgas’ consolidated balance sheets as of July 31, 2016 and 2015:
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Schedule of Derivative Collateral | The following tables provide a summary of cash margin deposit balances as of July 31, 2016 and July 31, 2015, respectively:
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Fair Value Hedge Derivative Effect on Earnings | The following table provides a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as fair value hedging instruments:
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Cash Flow Hedge Derivative Effect on Comprehensive Income | The following tables provide a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as cash flow hedging instruments:
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Derivatives not designated as hedging instruments effect on earnings | The following table provides a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the year ended July 31, 2016 and 2015 due to the change in fair value of derivatives not designated as hedging instruments:
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Changes in Derivative Value Effect on Other Comprehensive Income Loss | The changes in derivatives included in accumulated other comprehensive income (loss) (“AOCI”) for the years ended July 31, 2016, 2015 and 2014 were as follows:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Derivatives Balance Sheet Locations | The following tables provide a summary of the fair value of derivatives within Ferrellgas, L.P.’s consolidated balance sheets as of July 31, 2016 and 2015:
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Schedule of Derivative Collateral | The following tables provide a summary of cash margin deposit balances as of July 31, 2016 and July 31, 2015, respectively:
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Fair Value Hedge Derivative Effect on Earnings | The following table provides a summary of the effect on Ferrellgas, L.P.’s consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as fair value hedging instruments:
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Cash Flow Hedge Derivative Effect on Comprehensive Income | The following tables provide a summary of the effect on Ferrellgas, L.P.'s consolidated statements of comprehensive income for the years ended July 31, 2016, 2015 and 2014 due to derivatives designated as cash flow hedging instruments:
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Derivatives not designated as hedging instruments effect on earnings | The following table provides a summary of the effect on Ferrellgas, L.P.'s consolidated statements of comprehensive income for the year ended July 31, 2016 and 2015 due to the change in fair value of derivatives not designated as hedging instruments:
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Changes in Derivative Value Effect on Other Comprehensive Income Loss | The changes in derivatives included in accumulated other comprehensive income (loss) (“AOCI”) for the years ended July 31, 2016, 2015 and 2014 were as follows:
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Transactions With Related Parties (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation 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 consolidated statements of operations as follows:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation 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 consolidated statements of operations as follows:
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Contingencies And Commitments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Operating Lease Commitments And Buyouts | The following table summarizes Ferrellgas’ contractual operating lease commitments and buyout obligations as of July 31, 2016:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Operating Lease Commitments And Buyouts | The following table summarizes Ferrellgas, L.P.’s contractual operating lease commitments and buyout obligations as of July 31, 2016:
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Net Earnings (Loss) Per Common Unitholders' Interest (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Distribution Allocation | 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 as follows.
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Basic And Diluted Net Earnings Per Common Unitholders' Interest | Additionally, in periods with net losses, there are no dilutive securities.
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Segment Reporting Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Following is a reconciliation of Ferrellgas' total segment performance measure to consolidated net earnings:
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Reconciliation of Assets from Segment to Consolidated | Following are total assets by segment:
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Profit Measure [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following is a summary of segment information for the years ended July 31, 2016, 2015 and 2014.
(1) Direct costs are comprised of "cost of sales-propane and other gas liquids sales", "cost of sales-other", "cost of sales-midstream operations", "operating expense", "general and administrative expense", and "equipment lease expense" less "non-cash stock compensation charge", "asset impairments", "change in fair value of contingent consideration", "litigation accrual and related legal fees associated with a class action lawsuit", "acquisition and transition expenses" and "unrealized (non-cash) losses on changes in fair value of derivatives not designated as hedging instruments". |
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Capital Expenditures [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following are capital expenditures by segment (unaudited):
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Following is a reconciliation of Ferrellgas, L.P.'s total segment performance measure to consolidated net earnings:
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Reconciliation of Assets from Segment to Consolidated | Following are total assets by segment:
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Ferrellgas, L.P. [Member] | Profit Measure [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following is a summary of segment information for the years ended July 31, 2016 and 2015.
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Ferrellgas, L.P. [Member] | Capital Expenditures [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following are capital expenditures by segment (unaudited):
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Quarterly Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Unaudited Quarterly Data | The sum of basic and diluted net earnings (loss) per common unitholders’ interest by quarter may not equal the basic and diluted net earnings (loss) per common unitholders’ interest for the year due to variations in the weighted average units outstanding used in computing such amounts.
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Unaudited Quarterly Data | The following summarized unaudited quarterly data includes all adjustments (consisting only of normal recurring adjustments, with the exception of those items indicated below), which Ferrellgas, L.P. considers necessary for a fair presentation. Due to the seasonality of the propane distribution business, first and fourth quarter Revenues, gross margin from propane and other gas liquids sales and Net earnings are consistently less than the second and third quarter results. Other factors affecting the results of operations include competitive conditions, demand for product, timing of acquisitions, variations in the weather and fluctuations in propane prices.
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Guarantor financial information Guarantor financial information (Tables) - Ferrellgas, L.P. [Member] |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] |
(1) Revised to reclassify debt issuance costs for our senior notes from other assets to long-term debt for all balance sheet dates presented (see Note B to our consolidated financial statements included in this Annual Report).
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Condensed Income Statement [Table Text Block] |
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Condensed Cash Flow Statement [Table Text Block] |
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Subsequent Events Maximum leverage ratio (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio | On September 27, 2016, Ferrellgas entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Ferrellgas, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Leverage Ratio | On September 27, 2016, Ferrellgas, L.P. entered into a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility pursuant to which the leverage ratio covenant was modified, as follows:
Accordingly, on September 27, 2016, Ferrellgas, L.P. entered into a fifth amendment to our secured credit facility and a fourth amendment to our accounts receivable securitization facility pursuant to which the leverage ratio covenant was modified, as follows:
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Schedule I Parent Only Balance Sheets, Statements Of Earnings And Cash Flows (Tables) - Parent Company [Member] |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Parent Only Balance Sheet |
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Schedule Of Parent Only Statement Of Earnings |
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Schedule Of Parent Only Statement Of Cash |
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Schedule II Valuation And Qualifying Accounts (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Valuation And Qualifying Accounts |
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Ferrellgas, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Valuation And Qualifying Accounts |
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Summary Of Significant Accounting Policies (Summary Of Income Tax Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
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Current expense | $ 468 | $ (585) | $ 2,428 |
Deferred expense | (504) | 270 | 88 |
Income tax expense | (36) | (315) | 2,516 |
Ferrellgas, L.P. [Member] | |||
Current expense | 463 | (654) | 2,383 |
Deferred expense | (504) | 270 | 88 |
Income tax expense | $ (41) | $ (384) | $ 2,471 |
Summary Of Significant Accounting Policies (Deferred Taxes Assets And Liabilities) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
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Deferred tax assets | $ 1,156 | $ 724 |
Deferred tax liabilities | (4,085) | (4,157) |
Net deferred tax liability | (2,929) | (3,433) |
Ferrellgas, L.P. [Member] | ||
Deferred tax assets | 1,156 | 724 |
Deferred tax liabilities | (4,085) | (4,157) |
Net deferred tax liability | $ (2,929) | $ (3,433) |
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Debt Issuance Costs) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets, net | $ 86,443 | $ 48,113 |
Long-term debt | 1,941,335 | 1,778,065 |
Previous Accounting Guidance | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets, net | 109,618 | 74,440 |
Long-term debt | 1,964,510 | 1,804,392 |
Ferrellgas, L.P. [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets, net | 86,443 | 48,113 |
Long-term debt | 1,760,881 | 1,598,033 |
Ferrellgas, L.P. [Member] | Previous Accounting Guidance | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets, net | 108,072 | 72,472 |
Long-term debt | $ 1,782,510 | $ 1,622,392 |
Business Combinations Business Combinations (Acquired Company Income Statement Impact) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
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Operating Income (Loss) | $ (534,244) | $ 130,520 | $ 144,414 |
Midstream - Crude Oil Logistics [Member] | |||
Operating Income (Loss) | 3,848 | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 81,512 | ||
Ferrellgas, L.P. [Member] | |||
Operating Income (Loss) | $ (533,724) | 130,624 | $ 144,391 |
Ferrellgas, L.P. [Member] | Midstream - Crude Oil Logistics [Member] | |||
Operating Income (Loss) | 3,848 | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 81,512 |
Business Combinations Business Combinations (Pro Forma Information) (Details) - Midstream - Crude Oil Logistics [Member] - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
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Jul. 31, 2016 |
Jul. 31, 2015 |
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Business Acquisition, Pro Forma Revenue | $ 2,319,927 | $ 2,583,680 |
Business Acquisition, Pro Forma Net Income (Loss) | $ (11,834) | $ 4,388 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ (0.14) | $ 0.05 |
Ferrellgas, L.P. [Member] | ||
Business Acquisition, Pro Forma Revenue | $ 2,319,927 | $ 2,583,680 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 4,504 | $ 20,580 |
Quarterly Distributions Of Available Cash (Details) |
12 Months Ended |
---|---|
Jul. 31, 2016 | |
Maximum days after end of quarter to make distributions | 45 days |
Cash distributions available | 100.00% |
Ferrellgas, L.P. [Member] | |
Maximum days after end of quarter to make distributions | 45 days |
Cash distributions available | 100.00% |
Cash distributions to Ferrellgas Partners | 99.00% |
Cash distributions to general partner | 1.00% |
Supplemental Financial Statement Information (Schedule Of Inventories) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Propane gas and related products | $ 59,726 | $ 68,731 |
Energy Related Inventory, Petroleum | 4,642 | 0 |
Appliances, parts and supplies | 26,226 | 28,023 |
Inventories | 90,594 | 96,754 |
Ferrellgas, L.P. [Member] | ||
Propane gas and related products | 59,726 | 68,731 |
Energy Related Inventory, Petroleum | 4,642 | 0 |
Appliances, parts and supplies | 26,226 | 28,023 |
Inventories | $ 90,594 | $ 96,754 |
Supplemental Financial Statement Information (Other Current Liabilities) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Accrued interest | $ 16,623 | $ 17,281 |
Accrued payroll | 13,438 | 17,485 |
Customer deposits and advances | 27,391 | 28,792 |
Derivative Liability, Current | 18,401 | 31,450 |
Other | 53,105 | 85,679 |
Other current liabilities | 128,958 | 180,687 |
Ferrellgas, L.P. [Member] | ||
Accrued interest | 14,617 | 15,275 |
Accrued payroll | 13,438 | 17,485 |
Customer deposits and advances | 27,391 | 28,792 |
Derivative Liability, Current | 18,401 | 31,450 |
Other | 53,105 | 83,174 |
Other current liabilities | $ 126,952 | $ 176,176 |
Supplemental Financial Statement Information Supplemental Financial Statement Information (Other Assets) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Other assets, net | $ 86,443 | $ 48,113 |
Other Assets | 46,683 | 48,113 |
Jamex Marketing, LLC [Member] | ||
Accounts Receivable, Related Parties, Noncurrent | 39,800 | 0 |
Ferrellgas, L.P. [Member] | ||
Other assets, net | 86,443 | 48,113 |
Other Assets | 46,683 | 48,113 |
Ferrellgas, L.P. [Member] | Jamex Marketing, LLC [Member] | ||
Accounts Receivable, Related Parties, Noncurrent | $ 39,800 | $ 0 |
Accounts And Notes Receivable, Net And Accounts Receivable Securitization (Accounts And Notes Receivable) (Details) - USD ($) |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Accounts receivable pledged as collateral | $ 106,464,000 | $ 123,791,000 |
Accounts receivable | 48,148,000 | 77,636,000 |
Other | 38,000 | 307,000 |
Less: Allowance for doubtful accounts | (5,067,000) | (4,816,000) |
Accounts and notes receivable, net | 149,583,000 | 196,918,000 |
Ferrellgas, L.P. [Member] | ||
Accounts receivable pledged as collateral | 106,464,000 | 123,791,000 |
Accounts receivable | 48,148,000 | 77,636,000 |
Other | 38,000 | 307,000 |
Less: Allowance for doubtful accounts | (5,067,000) | (4,816,000) |
Accounts and notes receivable, net | $ 149,583,000 | $ 196,918,000 |
Accounts And Notes Receivable, Net And Accounts Receivable Securitization Maximum leverage ratio table (Details) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
|
required total leverage ratio | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% |
Ferrellgas, L.P. [Member] | ||||||||
required total leverage ratio | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% |
Debt [Member] | ||||||||
required total leverage ratio | 550.00% | 595.00% | 595.00% | 605.00% | 595.00% | 595.00% | 605.00% | |
Debt [Member] | Ferrellgas, L.P. [Member] | ||||||||
required total leverage ratio | 550.00% | 595.00% | 595.00% | 605.00% | 595.00% | 595.00% | 605.00% |
Goodwill And Intangible Assets, Net (Aggregate Amortization Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Aggregate amortization expense | $ 61,970 | $ 34,585 | $ 23,490 |
Ferrellgas, L.P. [Member] | |||
Aggregate amortization expense | $ 61,970 | $ 34,585 | $ 23,490 |
Goodwill And Intangible Assets, Net (Estimated Amortization Expense) (Details) $ in Thousands |
Jul. 31, 2016
USD ($)
|
---|---|
2017 | $ 31,823 |
2018 | 29,778 |
2019 | 26,508 |
2020 | 20,487 |
2021 | 18,767 |
Ferrellgas, L.P. [Member] | |
2017 | 31,823 |
2018 | 29,778 |
2019 | 26,508 |
2020 | 20,487 |
2021 | $ 18,767 |
Debt (Short-Term Borrowings Narrative) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Short-term borrowings | $ 101,291 | $ 75,319 |
Ferrellgas, L.P. [Member] | ||
Short-term borrowings | $ 101,291 | $ 75,319 |
Debt (Scheduled Annual Principal Payments On Long-term Debt) (Details) $ in Thousands |
Jul. 31, 2016
USD ($)
|
---|---|
2017 | $ 3,921 |
2018 | 2,379 |
2019 | 294,914 |
2020 | 182,960 |
2021 | 500,810 |
Thereafter | 975,175 |
Total long-term debt | 1,960,159 |
Ferrellgas, L.P. [Member] | |
2017 | 3,921 |
2018 | 2,379 |
2019 | 294,914 |
2020 | 960 |
2021 | 500,810 |
Thereafter | 975,175 |
Total long-term debt | $ 1,778,159 |
Debt Maximum Leverage Ratio (Details) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
|
required total leverage ratio | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% |
Debt [Member] | ||||||||
required total leverage ratio | 550.00% | 595.00% | 595.00% | 605.00% | 595.00% | 595.00% | 605.00% | |
Ferrellgas, L.P. [Member] | ||||||||
required total leverage ratio | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% |
Ferrellgas, L.P. [Member] | Debt [Member] | ||||||||
required total leverage ratio | 550.00% | 595.00% | 595.00% | 605.00% | 595.00% | 595.00% | 605.00% |
Partners' Capital (Limited Partner Units) (Details) - shares |
Oct. 31, 2016 |
Sep. 02, 2016 |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|---|---|
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 98,002,665 | 100,376,789 | ||
Public Common Unitholders [Member] | ||||
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 65,691,492 | 63,294,168 | ||
Ferrell Companies [Member] | ||||
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 22,529,361 | 22,529,361 | ||
FCI Trading Corp. [Member] | ||||
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 195,686 | 195,686 | ||
Ferrell Propane, Inc. [Member] | ||||
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 51,204 | 51,204 | ||
James E. Ferrell [Member] | ||||
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 4,763,475 | 4,763,475 | ||
James H. Ballengee [Member] | ||||
Capital Unit [Line Items] | ||||
Common unitholders, units outstanding | 3,900,000 | 3,900,000 | 4,771,447 | 9,542,895 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
Sep. 02, 2016 |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|---|
Estimated fair value of long-term debt | $ 1,920.1 | $ 1,889.8 | |
Common unitholders, units outstanding | 98,002,665 | 100,376,789 | |
Ferrellgas, L.P. [Member] | |||
Estimated fair value of long-term debt | $ 1,736.2 | $ 1,700.5 | |
Jamex Marketing, LLC [Member] | |||
Accounts Receivable, Related Parties | 44.8 | 4.8 | |
Notes Receivable, Related Parties | 20.0 | ||
Jamex Marketing, LLC [Member] | Ferrellgas, L.P. [Member] | |||
Accounts Receivable, Related Parties | 44.8 | $ 4.8 | |
Notes Receivable, Related Parties | $ 20.0 | ||
Common unitholders, units outstanding | 3,900,000 |
Fair Value Measurements Fair Value Measurements (Fair Value Inputs, Liabilities, Quantitative Information) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
---|---|---|---|
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 0 | $ 100 | $ 6,400 |
Ferrellgas, L.P. [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 0 | $ 100 | $ 6,400 |
Derivative Instruments and Hedging Activities (Fair Value Hedge Derivative Effect on Earnings) (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Derivative, Gain (Loss) on Derivative, Net | $ 1,919 | $ 1,892 | $ 2,520 |
Interest Expense, Debt | (9,100) | (9,100) | (11,985) |
Ferrellgas, L.P. [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 1,919 | 1,892 | 2,520 |
Interest Expense, Debt | $ (9,100) | $ (9,100) | $ (11,985) |
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Derivatives not Designated as Hedging Instruments Effects on Earnings) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Cost of Sales [Member] | Midstream - Crude Oil Logistics [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1,084 | |
Cost of Sales [Member] | Midstream - Crude Oil Logistics [Member] | Ferrellgas, L.P. [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1,084 | |
Operating Expense [Member] | Propane and related equipment sales [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (4,351) | $ (2,412) |
Operating Expense [Member] | Propane and related equipment sales [Member] | Ferrellgas, L.P. [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (4,351) | $ (2,412) |
Transactions With Related Parties (Allocation Of Transactions With Related Parties) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Related Party Transaction [Line Items] | |||
General and administrative expense | $ 56,635 | $ 77,238 | $ 65,156 |
Ferrellgas, L.P. [Member] | |||
Related Party Transaction [Line Items] | |||
General and administrative expense | 56,115 | 77,238 | 65,156 |
Compensation And Benefits [Member] | |||
Related Party Transaction [Line Items] | |||
Operating expense | 230,437 | 217,742 | 216,657 |
General and administrative expense | 30,239 | 27,278 | 32,119 |
Compensation And Benefits [Member] | Ferrellgas, L.P. [Member] | |||
Related Party Transaction [Line Items] | |||
Operating expense | 230,437 | 217,742 | 216,657 |
General and administrative expense | $ 30,239 | $ 27,278 | $ 32,119 |
Contingencies And Commitments (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Transportation Equipment [Member] | |||
Transportation equipment lease expiration period | 7 years | ||
Guarantees Residual Value, Fair Value Disclosure | $ 1.6 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 7.9 | ||
Transportation Equipment [Member] | Ferrellgas, L.P. [Member] | |||
Transportation equipment lease expiration period | 7 years | ||
Guarantees Residual Value, Fair Value Disclosure | $ 1.6 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 7.9 | ||
Property And Equipment [Member] | |||
Non-cancelable operating leases, expiration year | 2026 | ||
Rental expense | $ 49.2 | $ 45.0 | $ 35.6 |
Property And Equipment [Member] | Ferrellgas, L.P. [Member] | |||
Non-cancelable operating leases, expiration year | 2026 | ||
Rental expense | $ 49.2 | $ 45.0 | $ 35.6 |
Contingencies And Commitments (Contractual Operating Lease Commitments And Buyouts) (Details) $ in Thousands |
Jul. 31, 2016
USD ($)
|
---|---|
Operating Lease Obligations [Member] | |
Operating Leased Assets [Line Items] | |
2017 | $ 54,842 |
2018 | 36,789 |
2019 | 28,260 |
2020 | 21,603 |
2021 | 16,689 |
Thereafter | 21,471 |
Operating Lease Obligations [Member] | Ferrellgas, L.P. [Member] | |
Operating Leased Assets [Line Items] | |
2017 | 54,842 |
2018 | 36,789 |
2019 | 28,260 |
2020 | 21,603 |
2021 | 16,689 |
Thereafter | 21,471 |
Operating Lease Buyouts [Member] | |
Operating Leased Assets [Line Items] | |
2017 | 3,197 |
2018 | 3,444 |
2019 | 3,521 |
2020 | 2,693 |
2021 | 3,326 |
Thereafter | 9,818 |
Operating Lease Buyouts [Member] | Ferrellgas, L.P. [Member] | |
Operating Leased Assets [Line Items] | |
2017 | 3,197 |
2018 | 3,444 |
2019 | 3,521 |
2020 | 2,693 |
2021 | 3,326 |
Thereafter | $ 9,818 |
Employee Benefits (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016
USD ($)
employee
|
Jul. 31, 2015
USD ($)
|
Jul. 31, 2014
USD ($)
|
|
Number of employees | employee | 0 | ||
Non-cash employee stock ownership plan compensation charge | $ 27,595 | $ 24,713 | $ 21,789 |
Matching contributions | 4,000 | 3,900 | 3,600 |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | $ 300 | (200) | 300 |
Ferrellgas, L.P. [Member] | |||
Number of employees | employee | 0 | ||
Non-cash employee stock ownership plan compensation charge | $ 27,595 | 24,713 | 21,789 |
Matching contributions | 4,000 | 3,900 | 3,600 |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax | $ 300 | $ (200) | $ 300 |
Net Earnings (Loss) Per Common Unitholders' Interest Net Earnings (Loss) Per Common Unitholders' Interest (Narrative) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Earnings Per Share [Abstract] | |||
Dilutive effect on earnings per share | $ 0 | $ 0 | $ 0 |
Net Earnings (Loss) Per Common Unitholders' Interest (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Earnings Per Share [Abstract] | |||||||||||
Common unitholders' interest in net earnings (loss) | $ (654,820) | $ 18,498 | $ 56,556 | $ (78,995) | $ (58,187) | $ 35,454 | $ 84,603 | $ (32,546) | $ (658,761) | $ 29,324 | $ 32,879 |
Weighted average common units outstanding | 98,682,800 | 84,646,200 | 79,651,100 | ||||||||
Dilutive securities | 0 | 6,700 | 20,600 | ||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 98,682,800 | 84,652,900 | 79,671,700 | ||||||||
Basic and diluted net earnings (loss) per common unitholders' interest | $ (6.68) | $ 0.19 | $ 0.58 | $ (0.79) | $ (0.64) | $ 0.43 | $ 0.89 | $ (0.40) | $ (6.68) | $ 0.35 | $ 0.41 |
Segment Reporting Segment Reporting (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Statement [Line Items] | ||
Total assets | $ 1,683,306 | $ 2,437,729 |
Propane and related equipment sales [Member] | ||
Statement [Line Items] | ||
Total assets | 1,202,214 | 1,295,831 |
Midstream - Crude Oil Logistics [Member] | ||
Statement [Line Items] | ||
Total assets | 275,303 | 917,325 |
Corporate and Other [Member] | ||
Statement [Line Items] | ||
Total assets | 205,789 | 224,573 |
Ferrellgas, L.P. [Member] | ||
Statement [Line Items] | ||
Total assets | 1,683,213 | 2,435,603 |
Ferrellgas, L.P. [Member] | Propane and related equipment sales [Member] | ||
Statement [Line Items] | ||
Total assets | 1,202,214 | 1,291,737 |
Ferrellgas, L.P. [Member] | Midstream - Crude Oil Logistics [Member] | ||
Statement [Line Items] | ||
Total assets | 275,303 | 917,325 |
Ferrellgas, L.P. [Member] | Corporate and Other [Member] | ||
Statement [Line Items] | ||
Total assets | $ 205,696 | $ 226,541 |
Quarterly Data (Unaudited) (Summarized Unaudited Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Goodwill, Impairment Loss | $ (219,870) | ||||||||||
Revenues | $ 409,511 | $ 509,472 | $ 649,238 | $ 471,146 | $ 382,511 | $ 532,551 | $ 665,973 | $ 443,355 | 2,039,367 | $ 2,024,390 | $ 2,405,860 |
Net earnings (loss) | (668,142) | 18,918 | 57,755 | (80,566) | (59,333) | 36,220 | 86,371 | (33,169) | (672,035) | 30,089 | 33,715 |
Net earnings (loss) attributable to Ferrellgas Partners, L.P. | (661,434) | 18,685 | 57,127 | (79,793) | (58,775) | 35,812 | 85,458 | (32,875) | (665,415) | 29,620 | 33,211 |
Common unitholders' interest in net earnings (loss) | $ (654,820) | $ 18,498 | $ 56,556 | $ (78,995) | $ (58,187) | $ 35,454 | $ 84,603 | $ (32,546) | $ (658,761) | $ 29,324 | $ 32,879 |
Basic and diluted net earnings (loss) per common unitholders' interest | $ (6.68) | $ 0.19 | $ 0.58 | $ (0.79) | $ (0.64) | $ 0.43 | $ 0.89 | $ (0.40) | $ (6.68) | $ 0.35 | $ 0.41 |
Asset Impairment Charges | $ 628,800 | $ 658,118 | $ 0 | $ 0 | |||||||
Ferrellgas, L.P. [Member] | |||||||||||
Goodwill, Impairment Loss | (219,870) | ||||||||||
Revenues | 409,511 | $ 509,472 | $ 649,238 | $ 471,146 | $ 382,511 | $ 532,551 | $ 665,973 | $ 443,355 | 2,039,367 | 2,024,390 | 2,405,860 |
Net earnings (loss) | (664,091) | 23,049 | 62,187 | (76,536) | (55,249) | 40,404 | 90,409 | (29,137) | (655,391) | 46,427 | 49,907 |
Asset Impairment Charges | 628,800 | 658,118 | $ 0 | $ 0 | |||||||
Midstream Operations - Water Solutions [Member] | |||||||||||
Goodwill, Impairment Loss | (29,316) | ||||||||||
Midstream Operations - Water Solutions [Member] | Ferrellgas, L.P. [Member] | |||||||||||
Goodwill, Impairment Loss | (29,316) | ||||||||||
Propane and related equipment sales [Member] | |||||||||||
Goodwill, Impairment Loss | 0 | ||||||||||
Gross margin from propane and other gas liquids sales (a) | 125,690 | 186,668 | 202,027 | 123,550 | 128,087 | 191,983 | 230,175 | 129,547 | |||
Propane and related equipment sales [Member] | Ferrellgas, L.P. [Member] | |||||||||||
Goodwill, Impairment Loss | $ 0 | ||||||||||
Gross margin from propane and other gas liquids sales (a) | 125,690 | 186,668 | 202,027 | 123,550 | 128,087 | 191,983 | 230,175 | 129,547 | |||
Consolidated Midstream Operations [Member] | |||||||||||
Gross margin from propane and other gas liquids sales (a) | 40,476 | 33,572 | 39,890 | 40,066 | 16,301 | 3,416 | 4,934 | 5,948 | |||
Consolidated Midstream Operations [Member] | Ferrellgas, L.P. [Member] | |||||||||||
Gross margin from propane and other gas liquids sales (a) | $ 40,476 | $ 33,572 | $ 39,890 | $ 40,066 | $ 16,301 | $ 3,416 | $ 4,934 | $ 5,948 |
Income Taxes (Narrative) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Deferred tax expense (benefit) | $ (504,000) | $ 270,000 | $ 88,000 |
Deferred tax assets | 1,156,000 | 724,000 | |
Ferrellgas Partners Finance Corp. [Member] | |||
Deferred tax assets, operating loss carryforwards | 7,468 | ||
Net operating loss carryforward | $ 19,198 | ||
Net operating loss carryforward, expiration date | Jul. 31, 2036 | ||
Deferred tax expense (benefit) | $ 0 | 0 | 0 |
Deferred tax assets | 0 | 0 | |
Valuation allowance provided for deferred tax asset | 6,588 | ||
Ferrellgas Finance Corp. [Member] | |||
Deferred tax assets, operating loss carryforwards | 23,445 | ||
Net operating loss carryforward | $ 60,271 | ||
Net operating loss carryforward, expiration date | Jul. 31, 2036 | ||
Deferred tax expense (benefit) | $ 0 | 0 | $ 0 |
Deferred tax assets | 0 | $ 0 | |
Valuation allowance provided for deferred tax asset | $ 20,701 |
Guarantor financial information Guarantor financial information - Narrative (Details) - USD ($) $ in Millions |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Ferrellgas, L.P. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Fixed Rate Six Point Seven Five Due Two Thousand Twenty Three [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Debt Instrument, Face Amount | $ 500.0 | |
Debt instrument, fixed interest rate | 6.75% | |
Fixed Rate Six Point Seven Five Due Two Thousand Twenty Three [Member] | Ferrellgas, L.P. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Debt Instrument, Face Amount | $ 500.0 | $ 500.0 |
Debt instrument, fixed interest rate | 6.75% | 6.75% |
Subsequent Events Maximum Leverage Ratio (details) (Details) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
|
required total leverage ratio | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% |
Debt [Member] | ||||||||
required total leverage ratio | 550.00% | 595.00% | 595.00% | 605.00% | 595.00% | 595.00% | 605.00% | |
Ferrellgas, L.P. [Member] | ||||||||
required total leverage ratio | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% | 550.00% |
Ferrellgas, L.P. [Member] | Debt [Member] | ||||||||
required total leverage ratio | 550.00% | 595.00% | 595.00% | 605.00% | 595.00% | 595.00% | 605.00% |
Schedule I Parent Only Balance Sheets, Statements Of Earnings And Cash Flows (Balance Sheets) (Parenthetical) (Details) - shares |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Common unitholders, units outstanding | 98,002,665 | 100,376,789 |
General partner unitholder, units outstanding | 989,926 | 1,013,907 |
Parent Company [Member] | ||
Common unitholders, units outstanding | 98,002,665 | 100,376,789 |
General partner unitholder, units outstanding | 989,926 | 1,013,907 |
Schedule I Parent Only Balance Sheets, Statements Of Earnings And Cash Flows (Statement Of Earnings) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Condensed Financial Statements, Captions [Line Items] | |||||||||||
General and administrative expense | $ 56,635 | $ 77,238 | $ 65,156 | ||||||||
Operating Income (Loss) | (534,244) | 130,520 | 144,414 | ||||||||
Interest expense | (137,937) | (100,396) | (86,502) | ||||||||
Loss on extinguishment of debt | 0 | 0 | (21,202) | ||||||||
Other income (expense), net | 110 | (350) | (479) | ||||||||
Income tax expense | 36 | 315 | (2,516) | ||||||||
Other income | 0 | 4 | 0 | ||||||||
Net earnings (loss) | $ (668,142) | $ 18,918 | $ 57,755 | $ (80,566) | $ (59,333) | $ 36,220 | $ 86,371 | $ (33,169) | (672,035) | 30,089 | 33,715 |
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Equity in earnings (loss) of Ferrellgas, L.P. | (648,771) | 45,958 | 49,403 | ||||||||
Other Operating Income (Expense), Net | 0 | 104 | 23 | ||||||||
General and administrative expense | 520 | 0 | 0 | ||||||||
Operating Income (Loss) | (649,291) | 45,854 | 49,426 | ||||||||
Interest expense | (16,119) | (16,169) | (16,170) | ||||||||
Income tax expense | 5 | (69) | (45) | ||||||||
Net earnings (loss) | $ (665,415) | $ 29,620 | $ 33,211 |
Schedule II Valuation And Qualifying Accounts (Details) - Allowance For Doubtful Accounts [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 4,816 | $ 4,756 | $ 3,607 |
Charged to cost / expenses | 1,703 | 3,419 | 3,419 |
Other | (993) | (3,359) | (2,270) |
Balance at end of period | 5,526 | 4,816 | 4,756 |
Ferrellgas, L.P. [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 4,816 | 4,756 | 3,607 |
Charged to cost / expenses | 1,703 | 3,419 | 3,419 |
Other | (993) | (3,359) | (2,270) |
Balance at end of period | $ 5,526 | $ 4,816 | $ 4,756 |
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