Fair Value Measurements

3 Months Ended

Oct. 31, 2012

Fair Value Measurements

G.  Fair value measurements

Derivative financial  instruments

The following table presents Ferrellgas’ financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2012 and July 31, 2012:

	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
October 31, 2012:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	7,311	$	-	$	7,311
Commodity derivatives propane swaps	$	-	$	4,166	$	-	$	4,166
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	(2,028)	$	-	$	(2,028)
Commodity derivatives propane swaps	$	-	$	(4,469)	$	-	$	(4,469)
July 31, 2012:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	7,784	$	-	$	7,784
Commodity derivatives propane swaps	$	-	$	1,049	$	-	$	1,049
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	(1,778)	$	-	$	(1,778)
Commodity derivatives propane swaps	$	-	$	(12,069)	$	-	$	(12,069)

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

Ferrellgas, L.P. [Member]

Fair Value Measurements

G.  Fair value measurements

Derivative financial instruments

The following table presents Ferrellgas L.P.’s financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of October 31, 2012 and 2011:

		Asset (Liability)
	Quoted Prices in Active Markets for Idendical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
October 31, 2012:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	7,311	$	-	$	7,311
Commodity derivatives propane swaps	$	-	$	4,166	$	-	$	4,166
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	(2,028)	$	-	$	(2,028)
Commodity derivatives propane swaps	$	-	$	(4,469)	$	-	$	(4,469)
July 31, 2012:
Assets:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	7,784	$	-	$	7,784
Commodity derivatives propane swaps	$	-	$	1,049	$	-	$	1,049
Liabilities:
Derivative financial instruments:
Interest rate swap agreements	$	-	$	(1,778)	$	-	$	(1,778)
Commodity derivatives propane swaps	$	-	$	(12,069)	$	-	$	(12,069)

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.