Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Jul. 31, 2013
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Fair Value of Financial Derivatives Balance Sheet Locations |
The following tables provide a summary of fair value derivatives that were designated as hedging instruments in Ferrellgas’ consolidated balance sheets as of July 31, 2013 and 2012: | | | | | | | | | | | | | | | | July 31, 2013 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Location | | Fair value | | Location | | Fair value | Commodity derivatives propane swaps | | Prepaid expenses and other current assets | | $ | 1,400 |
| | Other current liabilities | | $ | 569 |
| Commodity derivatives propane swaps | | Other assets, net | | 1,132 |
| | Other liabilities | | 338 |
| Interest rate swap agreements, current portion | | Prepaid expenses and other current assets | | 3,341 |
| | Other current liabilities | | — |
| Interest rate swap agreements, noncurrent portion | | Other assets, net | | 442 |
| | Other liabilities | | 4,998 |
| | | Total | | $ | 6,315 |
| | Total | | $ | 5,905 |
| | | | | | | | | | | | | | | | | | | | | July 31, 2012 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Location | | Fair value | | Location | | Fair value | Commodity derivatives propane swaps |
| Prepaid expenses and other current assets |
| $ | 1,049 |
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| Other current liabilities |
| $ | 12,069 |
| Interest rate swap agreements, current portion |
| Prepaid expenses and other current assets |
| 3,346 |
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| Other current liabilities |
| — |
| Interest rate swap agreements, noncurrent portion |
| Other assets, net |
| 4,438 |
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| Other liabilities |
| 1,778 |
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| Total |
| $ | 8,833 |
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| Total |
| $ | 13,847 |
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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, 2013 and 2012 of derivatives accounted for under ASC 815-25, Derivatives and Hedging – Fair Value Hedges, that were designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | | | Amount of Gain Recognized on Derivative | | Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item) | Derivative Instrument | | Location of Gain Recognized on Derivative | | For the year ended July 31, | | For the year ended July 31, | | | | | 2013 | | 2012 | | 2013 | | 2012 | Interest rate swap agreements | | Interest expense | | $ | 3,205 |
| | $ | 757 |
| | $ | (21,875 | ) | | $ | (21,875 | ) |
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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, 2013 and 2012 of the effective portion of derivatives accounted for under ASC 815-30, Derivatives and Hedging – Cash Flow Hedges that were designated as hedging instruments: | | | | | | | | | | | | | | For the year ended July 31, 2013 | Derivative Instrument | | Amount of Gain (Loss) Recognized in AOCI on Derivative | | Location of Gain (Loss) Reclassified from AOCI into Income | | Amount of Gain (Loss) Reclassified from AOCI into Income | Commodity derivatives propane swaps | | $ | 2,032 |
| | Cost of product sold- propane and other gas liquids sales | | $ | (10,613 | ) | Interest rate swap agreements | | 2,220 |
| | Interest expense | | — |
| | | $ | 4,252 |
| | | | $ | (10,613 | ) |
| | | | | | | | | | | | | | For the year ended July 31, 2012 | Derivative Instrument | | Amount of Gain (Loss) Recognized in AOCI on Derivative | | Location of Gain (Loss) Reclassified from AOCI into Income | | Amount of Gain (Loss) Reclassified from AOCI into Income | Commodity derivatives propane swaps | | $ | (23,290 | ) | | Cost of product sold- propane and other gas liquids sales | | $ | (7,108 | ) | Interest rate swap agreements | | (1,778 | ) | | Interest expense | | — |
| | | $ | (25,068 | ) | | | | $ | (7,108 | ) |
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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, 2013, 2012 and 2011 were as follows: | | | | | | | | | | | | | | | | For the year ended July 31, | Gains and losses on derivatives included in AOCI | | 2013 | | 2012 | | 2011 | Beginning balance | | $ | (12,799 | ) | | $ | 5,161 |
| | $ | (157 | ) | Change in value on risk management commodity derivatives | | 2,032 |
| | (23,290 | ) | | 22,676 |
| Reclassification of gains and losses of commodity hedges to cost of product sold - propane and other gas liquids sales | | 10,613 |
| | 7,108 |
| | (17,358 | ) | Change in value on risk management interest rate derivatives | | 2,220 |
| | (1,778 | ) | | — |
| Ending balance | | $ | 2,066 |
| | $ | (12,799 | ) | | $ | 5,161 |
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Ferrellgas, L.P. [Member]
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Fair Value of Financial Derivatives Balance Sheet Locations |
The following tables provide a summary of the fair value derivatives that were designated as hedging instruments in Ferrellgas, L.P.’s consolidated balance sheets as of July 31, 2013 and 2012: | | | | | | | | | | | | | | | | July 31, 2013 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Location | | Fair value | | Location | | Fair value | Commodity derivatives propane swaps | | Prepaid expenses and other current assets | | $ | 1,400 |
| | Other current liabilities | | $ | 569 |
| Commodity derivatives propane swaps | | Other assets, net | | 1,132 |
| | Other liabilities | | 338 |
| Interest rate swap agreements, current portion | | Prepaid expenses and other current assets | | 3,341 |
| | Other current liabilities | | — |
| Interest rate swap agreements, noncurrent portion | | Other assets, net | | 442 |
| | Other liabilities | | 4,998 |
| | | Total | | $ | 6,315 |
| | Total | | $ | 5,905 |
| | | | | | | | | | | | | | | | | | | | | July 31, 2012 | | | Asset Derivatives | | Liability Derivatives | Derivative Instrument | | Location | | Fair value | | Location | | Fair value | Commodity derivatives propane swaps |
| Prepaid expenses and other current assets |
| $ | 1,049 |
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| Other current liabilities |
| $ | 12,069 |
| Interest rate swap agreements, current portion |
| Prepaid expenses and other current assets |
| 3,346 |
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| Other current liabilities |
| — |
| Interest rate swap agreements, noncurrent portion |
| Other assets, net |
| 4,438 |
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| Other liabilities |
| 1,778 |
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| Total |
| $ | 8,833 |
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| Total |
| $ | 13,847 |
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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, 2013 and 2012 of derivatives accounted for under ASC 815-25, Derivatives and Hedging – Fair Value Hedges, that were designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | | | Amount of Gain Recognized on Derivative | | Amount of Interest Expense Recognized on Fixed-Rated Debt (Related Hedged Item) | Derivative Instrument | | Location of Gain Recognized on Derivative | | For the year ended July 31, | | For the year ended July 31, | | | | | 2013 | | 2012 | | 2013 | | 2012 | Interest rate swap agreements | | Interest expense | | $ | 3,205 |
| | $ | 757 |
| | $ | (21,875 | ) | | $ | (21,875 | ) |
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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, 2013 and 2012 of the effective portion of derivatives accounted for under ASC 815-30, Derivatives and Hedging – Cash Flow Hedges that were designated as hedging instruments: | | | | | | | | | | | | | | For the year ended July 31, 2013 | Derivative Instrument | | Amount of Gain (Loss) Recognized in AOCI on Derivative |
| Location of Gain (Loss) Reclassified from AOCI into Income |
| Amount of Gain (Loss) Reclassified from AOCI into Income | Commodity derivatives propane swaps | | $ | 2,032 |
| | Cost of product sold- propane and other gas liquids sales | | $ | (10,613 | ) | Interest rate swap agreements | | 2,220 |
| | Interest expense | | — |
| | | $ | 4,252 |
| | | | $ | (10,613 | ) | | | | | | | | | | | | | | | | | For the year ended July 31, 2012 | Derivative Instrument | | Amount of Gain (Loss) Recognized in AOCI on Derivative |
| Location of Gain (Loss) Reclassified from AOCI into Income |
| Amount of Gain (Loss) Reclassified from AOCI into Income | Commodity derivatives propane swaps | | $ | (23,290 | ) | | Cost of product sold- propane and other gas liquids sales | | $ | (7,108 | ) | Interest rate swap agreements | | (1,778 | ) | | Interest expense | | — |
| | | $ | (25,068 | ) | | | | $ | (7,108 | ) |
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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, 2013, 2012 and 2011 were as follows: | | | | | | | | | | | | | | | | For the year ended July 31, | Gains and losses on derivatives included in AOCI | | 2013 | | 2012 | | 2011 | Beginning balance | | $ | (12,799 | ) | | $ | 5,161 |
| | $ | (157 | ) | Change in value on risk management commodity derivatives | | 2,032 |
| | (23,290 | ) | | 22,676 |
| Reclassification of gains and losses of commodity hedges to cost of product sold - propane and other gas liquids sales | | 10,613 |
| | 7,108 |
| | (17,358 | ) | Change in value on risk management interest rate derivatives | | 2,220 |
| | (1,778 | ) | | — |
| Ending balance | | $ | 2,066 |
| | $ | (12,799 | ) | | $ | 5,161 |
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