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 operations from the date of acquisition. The pro forma effect of these transactions was not material to Ferrellgas' balance sheets or results of operations.

Propane operations and related equipment sales

During fiscal 2017, Ferrellgas acquired propane distribution assets of Valley Center Propane, based in California, with an aggregate value of $4.4 million.

During fiscal 2016, Ferrellgas acquired propane distribution assets with an aggregate value of $6.6 million in the following transactions:


•	Gasco Energy Supply, LLC., based in Missouri, acquired December 2015;


•	Warren Energy Supply, Inc. based in Utah, acquired February 2016; and


•	Selphs Propane, Inc., based in Colorado, acquired June 2016.

During fiscal 2015, Ferrellgas acquired propane distribution assets of Propane Advantage, LLC, based in Utah, with an aggregate value of $7.7 million.

The goodwill arising from the propane operations and related equipment sales acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Ferrellgas and the acquired companies.

These acquisitions were funded as follows on their dates of acquisition:



	For the year ended July 31,
	2017		2016		2015
Cash payments, net of cash acquired	$	3,539	$	4,476	$	4,250
Issuance of liabilities and other costs and considerations	856		2,126		481
Common units, net of issuance costs	—		—		3,000
Aggregate fair value of transactions	$	4,395	$	6,602	$	7,731

The aggregate fair values, for the acquisitions in propane operations and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:



	For the year ended July 31,
	2017		2016			2015
Working capital	$	139	$	(249	)	$	233
Customer tanks, buildings, land and other	1,220		3,625			236
Customer lists	2,648		2,962			6,569
Non-compete agreements	388		264			693
Aggregate fair value of net assets acquired	$	4,395	$	6,602		$	7,731

The estimated fair values and useful lives of assets acquired during fiscal 2017 are based on a preliminary valuation 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 2016 and 2015 are based on internal valuations and included only minor adjustments during the 12 month period after the date of acquisition. Due to the immateriality of these adjustments, Ferrellgas did not retrospectively adjust the consolidated statements of operations for those measurement period adjustments.

Midstream operations

During fiscal 2016, Ferrellgas acquired the crude oil logistics assets of South C&C Trucking, LLC, based in Texas, with an aggregate value of $10.7 million. The aggregate fair values for this acquisition were allocated as follows: $(0.6) million of working capital, $9.2 million of plant, property, and equipment, $0.7 million of intangibles, and $1.4 million of goodwill.

On June 24, 2015, Ferrellgas acquired Bridger (based near Dallas, Texas) and formed a new midstream operations segment. Ferrellgas paid $560.0 million of cash, net of cash acquired and issued $260.0 million of Ferrellgas Partners common units to the seller, along with $2.5 million of other seller costs and consideration for an aggregate value of $822.5 million. Ferrellgas incurred and charged to operating expenses, net $16.4 million of costs during the year ended July 31, 2015, related to the acquisition and transition of Bridger.

Bridger's assets include rail cars, trucks, tank trailers, injection stations, a pipeline, and other assets. Bridger's operations provide crude oil transportation logistics on behalf of producers and end-users of crude oil on a fee-for-service basis, and purchases and sells crude oil in connection with other fee-for-service arrangements.

The excess of purchase consideration over net assets assumed was recorded as goodwill, which represented the strategic value assigned to Bridger, including the knowledge and experience of the workforce in place.

The following table summarizes the final estimated fair values of the assets acquired and liabilities assumed:



	June 24, 2016
Working capital	$	(8,315	)
Transportation equipment	293,491
Injection stations and pipelines	41,632
Goodwill	189,196
Customer relationships	277,224
Non-compete agreements	10,000
Trade names & trademarks	9,400
Office equipment	7,449
Other	2,375
Aggregate fair value of net assets acquired	$	822,452

During fiscal 2015, Ferrellgas acquired salt water disposal assets with an aggregate value of $74.7 million in the following transactions, which includes $1.4 million paid in fiscal 2015 as a working capital and valuation adjustment for prior year acquisitions:


•	C&E Production, LLC, based in Texas, acquired September 2014; and


•	Segrest Saltwater Resources, based in Texas, acquired May 2015.

These acquisitions were funded as follows on their dates of acquisition:

The aggregate fair values for these acquisitions were allocated as follows:



	For the year ended July 31,
	2015
Working capital	$	1,155
Customer tanks, buildings, land and other	1,704
Salt water disposal wells	10,705
Goodwill	12,359
Customer relationships	38,846
Non-compete agreements	3,639
Permits and favorable lease arrangements	6,269
Aggregate fair value of net assets acquired	$	74,677

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 operations 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.

Propane operations and related equipment sales

During fiscal 2017, Ferrellgas, L.P. acquired propane distribution assets of Valley Center Propane, based in California, with an aggregate value of $4.4 million.

During fiscal 2016, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $6.6 million.


•	Gasco Energy Supply, LLC., based in Missouri, acquired December 2015;


•	Warren Energy Supply, Inc. based in Utah, acquired February 2016; and


•	Selphs Propane, Inc., based in Colorado, acquired June 2016.

During fiscal 2015, Ferrellgas, L.P. acquired propane distribution assets of Propane Advantage, LLC, based in Utah, with an aggregate value of $7.7 million.

The goodwill arising from the propane operations and related equipment sales acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Ferrellgas, L.P. and the acquired companies.

These acquisitions were funded as follows on their dates of acquisition:



	For the year ended July 31,
	2017		2016		2015
Cash payments, net of cash acquired	$	3,539	$	4,476	$	4,250
Issuance of liabilities and other costs and considerations	856		2,126		481
Assets contributed from Ferrellgas Partners	—		—		3,000
Aggregate fair value of transactions	$	4,395	$	6,602	$	7,731

The aggregate fair values, for the acquisitions in propane operations and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:



	For the year ended July 31,
	2017		2016			2015
Working capital	139		(249		)	233
Customer tanks, buildings, land and other	1,220		3,625			236
Customer lists	2,648		2,962			6,569
Non-compete agreements	388		264			693
Aggregate fair value of net assets acquired	$	4,395	$	6,602		$	7,731

The estimated fair values and useful lives of assets acquired during fiscal 2017 are based on a preliminary valuation 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 2016 and 2015 are based on internal valuations and included only minor adjustments during the 12 month period after the date of acquisition. Due to the immateriality of these adjustments, Ferrellgas, L.P. did not retrospectively adjust the consolidated statements of operations for those measurement period adjustments.

Midstream operations

During fiscal 2016, Ferrellgas, L.P. acquired the crude oil logistics assets of South C&C Trucking, LLC, based in Texas, with an aggregate value of $10.7 million. The aggregate fair values for this acquisition were allocated as follows: $(0.6) million of working capital, $9.2 million of plant, property, and equipment, $0.7 million of intangibles, and $1.4 million of goodwill.

On June 24, 2015, Ferrellgas Partners acquired Bridger (based near Dallas, Texas) and formed a new midstream operations segment. Ferrellgas Partners paid $560.0 million of cash, net of cash acquired and issued $260.0 million of Ferrellgas Partners common units to the seller, along with $2.5 million of other seller costs and consideration for an aggregate value of $822.5 million. Ferrellgas Partners then contributed the Bridger assets and liabilities to Ferrellgas, L.P. Ferrellgas, L.P. incurred and charged to operating expenses, net $16.4 million of costs during the year ended July 31, 2015, related to the acquisition and transition of Bridger.

Bridger's assets include rail cars, trucks, tank trailers, injection stations, a pipeline, and other assets. Bridger's operations provide crude oil transportation logistics on behalf of producers and end-users of crude oil on a fee-for-service basis, and purchases and sells crude oil in connection with other fee-for-service arrangements.

The excess of purchase consideration over net assets assumed was recorded as goodwill, which represented the strategic value assigned to Bridger, including the knowledge and experience of the workforce in place.

The following table summarizes the final estimated fair values of the assets acquired and liabilities assumed in June 2015:



	June 24, 2016
Working capital	$	(8,315	)
Transportation equipment	293,491
Injection stations and pipelines	41,632
Goodwill	189,196
Customer relationships	277,224
Non-compete agreements	10,000
Trade names & trademarks	9,400
Office equipment	7,449
Other	2,375
Aggregate fair value of net assets acquired	$	822,452

During fiscal 2015, Ferrellgas, L.P. acquired salt water disposal assets with an aggregate value of $74.7 million in the following transactions, which includes $1.4 million paid in fiscal 2015 as a working capital and valuation adjustment for prior year acquisitions:


•	C&E Production, LLC, based in Texas, acquired September 2014; and


•	Segrest Saltwater Resources, based in Texas, acquired May 2015.

These acquisitions were funded as follows on their dates of acquisition:



	For the year ended July 31,
	2015
Cash payments, net of cash acquired	$	74,677

The aggregate fair values for these acquisitions were allocated as follows:



	For the year ended July 31,
	2015
Working capital	$	1,155
Customer tanks, buildings, land and other	1,704
Salt water disposal wells	10,705
Goodwill	12,359
Customer relationships	38,846
Non-compete agreements	3,639
Permits and favorable lease arrangements	6,269
Aggregate fair value of net assets acquired	$	74,677

Aggregate Fair Value Of Transaction

The aggregate fair values for these acquisitions were allocated as follows:



	For the year ended July 31,
	2015
Working capital	$	1,155
Customer tanks, buildings, land and other	1,704
Salt water disposal wells	10,705
Goodwill	12,359
Customer relationships	38,846
Non-compete agreements	3,639
Permits and favorable lease arrangements	6,269
Aggregate fair value of net assets acquired	$	74,677

Aggregate Fair Value Of Transaction

The aggregate fair values for these acquisitions were allocated as follows:



	For the year ended July 31,
	2015
Working capital	$	1,155
Customer tanks, buildings, land and other	1,704
Salt water disposal wells	10,705
Goodwill	12,359
Customer relationships	38,846
Non-compete agreements	3,639
Permits and favorable lease arrangements	6,269
Aggregate fair value of net assets acquired	$	74,677

For the year ended July 31,

Cash payments. net of cash acquired