Business Combinations

12 Months Ended

Jul. 31, 2013

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 earnings from the date of acquisition. The proforma effect of these transactions was not material to Ferrellgas’ balance sheets or results of operations.

During fiscal 2013, Ferrellgas acquired propane distribution and grilling tool assets with an aggregate value of $39.2 million in the following transactions:

• Capitol City Propane, based in California, acquired September 2012;

• Flores Gas, based in Texas, acquired October 2012;

• IGS Propane, based in Connecticut, acquired December 2012;

• Mr. Bar-B-Q, based in New York, acquired March 2013; and

• Western Petroleum, based in Utah, acquired April 2013.

During fiscal 2012, Ferrellgas acquired propane distribution assets with an aggregate value of $14.0 million in the following transactions:

• Economy Propane, based in California, acquired September 2011;

• Federal Petroleum Company, based in Texas, acquired October 2011;

• Polar Gas Company, based in Wisconsin, acquired November 2011;

• Welch Propane, based in Texas, acquired November 2011; and

• Rio Grande Valley Gas, based in Texas, acquired January 2012.

During fiscal 2011, Ferrellgas acquired propane distribution assets with an aggregate value of $12.6 million in the following transactions:

• Beatty’s Gas, based in Pennsylvania, acquired October 2010;

• Kings River Propane, based in California, acquired December 2010;

• Bennett Gas Company, based in Georgia, acquired December 2010;

• Ram Propane, based in Wyoming, acquired March 2011; and

• Williams Panhandle Propane, based in Florida, acquired July 2011.

These acquisitions were funded as follows (in thousands):

	For the year ended July 31,
	2013		2012		2011
Cash payments	$	37,186	$	10,387	$	7,298
Issuance of liabilities and other costs and considerations	2,035		2,347		2,348
Common units, net of issuance costs	—		1,300		2,940
Aggregate fair value of transactions	$	39,221	$	14,034	$	12,586

The aggregate fair values of these transactions were allocated as follows:

	For the year ended July 31,
	2013		2012		2011
Working capital	$	7,302	$	—	$	—
Customer tanks, buildings, land and other	5,155		7,454		7,746
Goodwill	4,640		—		5
Customer lists	12,211		5,574		3,151
Non-compete agreements	944		1,006		1,684
Other intangibles and other	5,678		—		—
Trade names & trademarks	3,291		—		—
Aggregate fair value of transactions	$	39,221	$	14,034	$	12,586

The estimated fair values and useful lives of assets acquired during fiscal 2013 are based on a preliminary valuations 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 2012 and 2011 are based on an valuations and included only minor adjustments during the 12 month period after the date of acquisition.

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 earnings 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.

During fiscal 2013, Ferrellgas, L.P. acquired propane distribution and grilling tool assets with an aggregate value of $39.2 million in the following transactions:

• Capitol City Propane, based in California, acquired September 2012;

• Flores Gas, based in Texas, acquired October 2012;

• IGS Propane, based in Connecticut, acquired December 2012;

• Mr. Bar-B-Q, based in New York, acquired March 2013; and

• Western Petroleum, based in Utah, acquired April 2013.

 During fiscal 2012, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $14.0 million in the following transactions:

• Economy Propane, based in California, acquired September 2011;

• Federal Petroleum Company, based in Texas, acquired October 2011;

• Polar Gas Company, based in Wisconsin, acquired November 2011;

• Welch Propane, based in Texas, acquired November 2011; and

• Rio Grande Valley Gas, based in Texas, acquired January 2012.

During fiscal 2011, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $12.6 million in the following transactions:

• Beatty’s Gas, based in Pennsylvania, acquired October 2010;

• Kings River Propane, based in California, acquired December 2010;

• Bennett Gas Company, based in Georgia, acquired December 2010;

• Ram Propane, based in Wyoming, acquired March 2011; and

• Williams Panhandle Propane, based in Florida, acquired July 2011.

These acquisitions were funded as follows (in thousands):

	For the year ended July 31,
	2013		2012		2011
Cash payments	$	37,186	$	10,400	$	7,298
Issuance of liabilities and other costs and considerations	2,035		2,334		2,348
Contribution of net assets from Ferrellgas Partners	—		1,300		2,940
Aggregate fair value of transactions	$	39,221	$	14,034	$	12,586

The aggregate fair values of these transactions were allocated as follows:

	For the year ended July 31,
	2013		2012		2011
Working capital	$	7,302	$	—	$	—
Customer tanks, buildings, land and other	5,155		7,454		7,746
Goodwill	4,640		—		5
Customer lists	12,211		5,574		3,151
Non-compete agreements	944		1,006		1,684
Other intangibles & other	5,678		—		—
Trade names & trademarks	3,291		—		—
Aggregate fair value of transactions	$	39,221	$	14,034	$	12,586

The estimated fair values and useful lives of assets acquired during fiscal 2013 are based on a preliminary valuations 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 2012 and 2011 are based on an valuations and included only minor adjustments during the 12 month period after the dates of acquisition.