Supplemental Financial Statement Information

12 Months Ended

Jul. 31, 2012

Supplemental Financial Statement Information

E.Supplemental financial statement information

Inventories consist of the following:

	2012		2011
Propane gas and related products	$	110,517	$	113,826
Appliances, parts and supplies		17,081		22,313
Inventories	$	127,598	$	136,139

In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes. Most of these contracts have terms of less than one year and call for payment based on market prices at the date of delivery. All supply procurement fixed price contracts have terms of fewer than 36 months. As of July 31, 2012, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately  104.8 million gallons of propane at fixed prices.

Property, plant and equipment, net consist of the following:

	Estimated useful lives	2012		2011
Land	Indefinite	$	31,229	$	30,920
Land improvements	2-20		11,418		11,200
Buildings and improvements	20		67,027		66,043
Vehicles, including transport trailers	8-20		102,374		104,188
Bulk equipment and district facilities	5-30		109,050		105,485
Tanks, cylinders and customer equipment	2-30		782,293		778,599
Computer and office equipment	2-5		116,916		116,281
Construction in progress	n/a		3,421		3,154
			1,223,728		1,215,870
Less:  accumulated depreciation			597,177		573,665
Property, plant and equipment, net		$	626,551	$	642,205

Depreciation expense totaled $60.0 million,  $58.7 million and $61.3 million for fiscal 2012, 2011 and 2010, respectively.

Other current liabilities consist of the following:

	2012		2011
Accrued interest	$	19,945	$	19,779
Accrued litigation and insurance		9,061		16,565
Accrued payroll		16,495		12,974
Customer deposits and advances		28,842		19,784
Other		48,324		35,711
Other current liabilities	$	122,667	$	104,813

Loss on disposal of assets and other consists of the following:

	For the year ended July 31,
	2012		2011		2010
Loss on disposal of assets	$	6,035	$	3,633	$	7,296
Loss on transfer of accounts receivable related to the accounts receivable securitization		-		-		6,566
Service income related to the accounts receivable securitization		-		-		(5,377)
Loss on disposal of assets and other	$	6,035	$	3,633	$	8,485

See Note B – Summary of significant accounting policies - (22) New accounting standards – ASC 860 & 810 Transfers of financial assets and variable interest entities – for a discussion of changes in accounting for accounts receivable securitization transactions.

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

	For the year ended July 31,
	2012		2011		2010
Operating expense	$	177,903	$	183,899	$	183,612
Depreciation and amortization expense		6,545		6,063		5,601
Equipment lease expense		12,841		12,823		14,192
	$	197,289	$	202,785	$	203,405

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information

E.Supplemental financial statement information

Inventories consist of the following:

	2012		2011
Propane gas and related products	$	110,517	$	113,826
Appliances, parts and supplies		17,081		22,313
Inventories	$	127,598	$	136,139

In addition to inventories on hand, Ferrellgas, L.P. enters into contracts primarily to buy propane for supply procurement purposes. Most of these contracts have terms of less than one year and call for payment based on market prices at the date of delivery. All supply procurement fixed price contracts have terms of fewer than 36 months. As of July 31, 2012, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately  104.8 million gallons of propane at fixed prices.

Property, plant and equipment, net consist of the following:

	Estimated useful lives	2012		2011
Land	Indefinite	$	31,229	$	30,920
Land improvements	2-20		11,418		11,200
Buildings and improvements	20		67,027		66,043
Vehicles, including transport trailers	8-20		102,374		104,188
Bulk equipment and district facilities	5-30		109,050		105,485
Tanks, cylinders and customer equipment	2-30		782,293		778,599
Computer and office equipment	2-5		116,916		116,281
Construction in progress	n/a		3,421		3,154
			1,223,728		1,215,870
Less:  accumulated depreciation			597,177		573,665
Property, plant and equipment, net		$	626,551	$	642,205

Depreciation expense totaled $60.0 million,  $58.7 million and $61.3 million for fiscal 2012, 2011 and 2010, respectively.

Other current liabilities consist of the following:

	2012		2011
Accrued interest	$	17,938	$	17,773
Accrued litigation and insurance		9,061		16,565
Accrued payroll		16,495		12,974
Customer deposits and advances		28,842		19,784
Other		48,048		35,578
Other current liabilities	$	120,384	$	102,674

oss on disposal of assets and other consists of the following:

	For the year ended July 31,
	2012		2011		2010
Loss on disposal of assets	$	6,035	$	3,633	$	7,296
Loss on transfer of accounts receivable related to the accounts receivable securitization		-		-		6,566
Service income related to the accounts receivable securitization		-		-		(5,377)
Loss on disposal of assets and other	$	6,035	$	3,633	$	8,485

See Note B – Summary of significant accounting policies - (20) New accounting standards – ASC 860 & 810 Transfers of financial assets and variable interest entities – for a discussion of changes in accounting for accounts receivable securitization transactions.

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

	For the year ended July 31,
	2012		2011		2010
Operating expense	$	177,903	$	183,899	$	183,612
Depreciation and amortization expense		6,545		6,063		5,601
Equipment lease expense		12,841		12,823		14,192
	$	197,289	$	202,785	$	203,405