Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Apr. 30, 2015

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value of derivatives in Ferrellgas’ condensed consolidated balance sheets as of April 30, 2015 and July 31, 2014:  

	April 30, 2015
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives	Prepaid expenses and other current assets	$	1,550	Other current liabilities	$	20,709
Commodity derivatives	Other assets, net	1,893		Other liabilities	6,527
Interest rate swap agreements	Prepaid expenses and other current assets	1,950		Other current liabilities	1,660
Interest rate swap agreements	Other assets, net	195		Other liabilities	2,029
Derivatives not designated as hedging instruments
Commodity derivatives	Prepaid expenses and other current assets	734		Other current liabilities	—
Commodity derivatives	Other assets, net	906		Other liabilities	—
	Total	$	7,228	Total	$	30,925
	July 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives	Prepaid expenses and other current assets	$	5,301	Other current liabilities	$	83
Commodity derivatives	Other assets, net	1,705		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,101		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	5,075
	Total	$	9,107	Total	$	5,158

Schedule of Derivative Collateral

The following tables provide a summary of cash margin deposit balances as of April 30, 2015 and July 31, 2014, respectively:

	April 30, 2015
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Deposits	Prepaid expenses and other current assets	$	16,542	Other current liabilities	$	15
	Other assets, net	5,279		Other liabilities	—
		$	21,821		$	15

	July 31, 2014
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Deposits	Prepaid expenses and other current assets	$	156	Other current liabilities	$	—
	Other assets, net	189		Other liabilities	—
		$	345		$	—

Fair Value Hedge Derivative Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of earnings for the three and nine months endedApril 30, 2015 and 2014 due to derivatives designated as fair value 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 three months ended April 30,				For the three months ended April 30,
		2015		2014		2015			2014
Interest rate swap agreements	Interest expense	$	601	$	627	$	(2,275	)	$	(2,275	)

		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 nine months ended April 30,				For the nine months ended April 30,
		2015		2014		2015			2014
Interest rate swap agreements	Interest expense	$	1,408	$	1,948	$	(6,825	)	$	(9,915	)

Cash Flow Hedge Derivative Effect on Comprehensive Income

The following tables provide a summary of the effect on Ferrellgas’ condensed consolidated statements of comprehensive income for the three and nine months endedApril 30, 2015 and 2014 due to derivatives designated as cash flow hedging instruments:

	For the three months ended April 30, 2015
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI		Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
				Effective portion			Ineffective portion
Commodity derivatives	$	7,813	Cost of product sold- propane and other gas liquids sales	$	(10,907	)	$	—
Interest rate swap agreements	106		Interest expense	—			—
	$	7,919		$	(10,907	)	$	—

	For the three months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
					Effective portion			Ineffective portion
Commodity derivatives	$	(165	)	Cost of product sold- propane and other gas liquids sales	$	(3,885	)	$	—
Interest rate swap agreements	825			Interest expense	—			—
	$	660			$	(3,885	)	$	—

	For the nine months ended April 30, 2015
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
					Effective portion			Ineffective portion
Commodity derivatives	$	(47,855	)	Cost of product sold- propane and other gas liquids sales	$	(17,139	)	$	—
Interest rate swap agreements	(3,250		)	Interest expense	—			(199		)
	$	(51,105	)		$	(17,139	)	$	(199	)

	For the nine months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
					Effective portion		Ineffective portion
Commodity derivatives	$	17,298		Cost of product sold- propane and other gas liquids sales	$	8,640	$	—
Interest rate swap agreements	(251		)	Interest expense	—		—
	$	17,047			$	8,640	$	—

Derivatives not Designated as Hedging, Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas' condensed consolidated statements of earnings for the three and nine months endedApril 30, 2015 due to the change in fair value of derivatives not designated as hedging instruments:

	For the three months ended April 30, 2015
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income		Location of Gain (Loss) Recognized in Income
Commodity derivatives	$	1,609	Operating expense

	For the nine months ended April 30, 2015
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income		Location of Gain (Loss) Recognized in Income
Commodity derivatives	$	1,609	Operating expense

Changes in Derivative Value Effect on Other Comprehensive Income (Loss)

The changes in derivatives included in AOCI for the nine months endedApril 30, 2015 and 2014 were as follows:  

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2015			2014
Beginning balance	$	6,483		$	2,066
Change in value of risk management commodity derivatives	(47,855		)	17,298
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales, net	17,139			(8,640		)
Change in value of risk management interest rate derivatives	(3,250		)	(251		)
Reclassification of gains and losses on interest rate hedges to interest expense	$	199		$	—
Ending balance	$	(27,284	)	$	10,473

Ferrellgas, L.P. [Member]

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value of derivatives in Ferrellgas, L.P.’s condensed consolidated balance sheets as of April 30, 2015 and July 31, 2014: 

	April 30, 2015
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives	Prepaid expenses and other current assets	$	1,550	Other current liabilities	$	20,709
Commodity derivatives	Other assets, net	1,893		Other liabilities	6,527
Interest rate swap agreements	Prepaid expenses and other current assets	1,950		Other current liabilities	1,660
Interest rate swap agreements	Other assets, net	195		Other liabilities	2,029
Derivatives not designated as hedging instruments
Commodity derivatives	Prepaid expenses and other current assets	734		Other current liabilities	—
Commodity derivatives	Other assets, net	906		Other liabilities	—
	Total	$	7,228	Total	$	30,925
	July 31, 2014
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives	Prepaid expenses and other current assets	$	5,301	Other current liabilities	$	83
Commodity derivatives	Other assets, net	1,705		Other liabilities	—
Interest rate swap agreements	Prepaid expenses and other current assets	2,101		Other current liabilities	—
Interest rate swap agreements	Other assets, net	—		Other liabilities	5,075
	Total	$	9,107	Total	$	5,158

Schedule of Derivative Collateral

The following tables provide a summary of cash margin deposit balances as of April 30, 2015 and July 31, 2014, respectively:

	April 30, 2015
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Deposits	Prepaid expenses and other current assets	$	16,542	Other current liabilities	$	15
	Other assets, net	5,279		Other liabilities	—
		$	21,821		$	15

	July 31, 2014
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Deposits	Prepaid expenses and other current assets	$	156	Other current liabilities	$	—
	Other assets, net	189		Other liabilities	—
		$	345		$	—

Fair Value Hedge Derivative Effect on Earnings

The following table provides a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of earnings for the nine months endedApril 30, 2015 and 2014 due to derivatives designated as fair value 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 three months ended April 30,				For the three months ended April 30,
		2015		2014		2015			2014
Interest rate swap agreements	Interest expense	$	601	$	627	$	(2,275	)	$	(2,275	)

		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 nine months ended April 30,				For the nine months ended April 30,
		2015		2014		2015			2014
Interest rate swap agreements	Interest expense	$	1,408	$	1,948	$	(6,825	)	$	(9,915	)

Cash Flow Hedge Derivative Effect on Comprehensive Income

The following tables provide a summary of the effect on Ferrellgas, L.P.’s condensed consolidated statements of comprehensive income for the nine months endedApril 30, 2015 and 2014 due to derivatives designated as cash flow hedging instruments:  

	For the three months ended April 30, 2015
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCL		Location of Gain (Loss) Reclassified from AOCL into Income	Amount of Gain (Loss) Reclassified from AOCL into Income
				Effective portion			Ineffective portion
Commodity derivatives	$	7,813	Cost of product sold- propane and other gas liquids sales	$	(10,907	)	$	—
Interest rate swap agreements	106		Interest expense	—			—
	$	7,919		$	(10,907	)	$	—

	For the three months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCL into Income	Amount of Gain (Loss) Reclassified from AOCL into Income
					Effective portion			Ineffective portion
Commodity derivatives	$	(165	)	Cost of product sold- propane and other gas liquids sales	$	(3,885	)	$	—
Interest rate swap agreements	825			Interest expense	—			—
	$	660			$	(3,885	)	$	—

	For the nine months ended April 30, 2015
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCL into Income	Amount of Gain (Loss) Reclassified from AOCL into Income
					Effective portion			Ineffective portion
Commodity derivatives	$	(47,855	)	Cost of product sold- propane and other gas liquids sales	$	(17,139	)	$	—
Interest rate swap agreements	(3,250		)	Interest expense	—			(199		)
	$	(51,105	)		$	(17,139	)	$	(199	)
	For the nine months ended April 30, 2014
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCL into Income	Amount of Gain (Loss) Reclassified from AOCL into Income
					Effective portion			Ineffective portion
Commodity derivatives	$	17,298		Cost of product sold- propane and other gas liquids sales	$	8,640		$	—
Interest rate swap agreements	(251		)	Interest expense	—			—
	$	17,047			$	8,640		$	—

Derivatives not Designated as Hedging, Effect on Earnings

The following tables provide a summary of the effect on Ferrellgas, L.P.'s condensed consolidated statements of earnings for the three and nine months endedApril 30, 2015 due to the change in fair value of derivatives not designated as hedging instruments:

	For the three months ended April 30, 2015
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income		Location of Gain (Loss) Recognized in Income
Commodity derivatives	$	1,609	Operating expense

	For the nine months ended April 30, 2015
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income		Location of Gain (Loss) Recognized in Income
Commodity derivatives	$	1,609	Operating expense

Changes in Derivative Value Effect on Other Comprehensive Income (Loss)

The changes in derivatives included in AOCI for the nine months endedApril 30, 2015 and 2014 were as follows: 

	For the nine months ended April 30,
Gains and losses on derivatives included in AOCI	2015			2014
Beginning balance	$	6,483		$	2,066
Change in value of risk management commodity derivatives	(47,855		)	17,298
Reclassification of gains and losses on commodity hedges to cost of product sold - propane and other gas liquids sales, net	17,139			(8,640		)
Change in value of risk management interest rate derivatives	(3,250		)	(251		)
Reclassification of gains and losses on interest rate hedges to interest expense	$	199		$	—
Ending balance	$	(27,284	)	$	10,473