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

12 Months Ended

Jul. 31, 2017

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value of derivatives within Ferrellgas’ consolidated balance sheets as of July 31, 2017 and 2016:  

	July 31, 2017
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	11,061	Other current liabilities	$	415
Commodity derivatives-propane	Other assets, net	4,413		Other liabilities	15
Interest rate swap agreements	Prepaid expenses and other current assets	583		Other current liabilities	595
Interest rate swap agreements	Other assets, net	—		Other liabilities	112
Derivatives not designated as hedging instruments
Commodity derivatives-crude oil	Prepaid expenses and other current assets	738		Other current liabilities	828
	Total	$	16,795	Total	$	1,965
	July 31, 2016
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	2,263	Other current liabilities	$	10,184
Commodity derivatives-propane	Other assets, net	3,056		Other liabilities	1,597
Interest rate swap agreements	Prepaid expenses and other current assets	1,654		Other current liabilities	2,309
Interest rate swap agreements	Other assets, net	4,176		Other liabilities	1,244
Derivatives not designated as hedging instruments
Commodity derivatives-vehicle fuel	Prepaid expenses and other current assets	—		Other current liabilities	3,996
Commodity derivatives-crude oil	Prepaid expenses and other current assets	2,922		Other current liabilities	1,912
	Total	$	14,071	Total	$	21,242

Schedule of Derivative Collateral

The following tables provide a summary of cash margin balances as of July 31, 2017 and July 31, 2016, respectively:

	July 31, 2017
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	1,778	Other current liabilities	$	7,729
	Other assets, net	1,631		Other liabilities	3,073
		$	3,409		$	10,802
	July 31, 2016
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	8,252	Other current liabilities	$	—
	Other assets, net	1,275		Other liabilities	—
		$	9,527		$	—

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, 2017, 2016 and 2015 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 year ended July 31,						For the year ended July 31,
		2017		2016		2015		2017			2016			2015
Interest rate swap agreements	Interest expense	$	1,319	$	1,919	$	1,892	$	(9,100	)	$	(9,100	)	$	(9,100	)

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, 2017, 2016 and 2015 due to derivatives designated as cash flow hedging instruments:

	For the year ended July 31, 2017
				Amount of Gain (Loss) Reclassified from AOCI into Income
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI		Location of Gain (Loss) Reclassified from AOCI into Income	Effective portion			Ineffective portion
Commodity derivatives	$	21,659	Cost of product sold- propane and other gas liquids sales	$	154		$	—
Interest rate swap agreements	866		Interest expense	(2,092		)	—
	$	22,525		$	(1,938	)	$	—

	For the year ended July 31, 2016
					Amount of Gain (Loss) Reclassified from AOCI into Income
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Effective portion			Ineffective portion
Commodity derivatives	$	4,409		Cost of product sold- propane and other gas liquids sales	$	(24,438	)	$	—
Interest rate swap agreements	(2,620		)	Interest expense	(2,864		)	—
	$	1,789			$	(27,302	)	$	—
	For the year ended July 31, 2015
					Amount of Gain (Loss) Reclassified from AOCI into Income
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Effective portion			Ineffective portion
Commodity derivatives	$	(70,291	)	Cost of product sold- propane and other gas liquids sales	$	(28,059	)	$	—
Interest rate swap agreements	(3,356		)	Interest expense	—			(199		)
	$	(73,647	)		$	(28,059	)	$	(199	)

Derivatives not designated as hedging instruments effect on earnings

The following table provides a summary of the effect on Ferrellgas’ consolidated statements of comprehensive income for the year ended July 31, 2017, 2016 and 2015 due to the change in fair value of derivatives not designated as hedging instruments:

	For the year ended July 31, 2017
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Reclassified in Income
Commodity derivatives - crude oil	$	(425	)	Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	1,090		Operating expense
	For the year ended July 31, 2016
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Reclassified in Income
Commodity derivatives - crude oil	$	1,084		Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	(4,351	)	Operating expense
	For the year ended July 31, 2015
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Reclassified in Income
Commodity derivatives - vehicle fuel	$	(2,412	)	Operating expense

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, 2017, 2016 and 2015 were as follows:  

	For the year ended July 31,
Gains and losses on derivatives included in AOCI	2017			2016			2015
Beginning balance	$	(9,815	)	$	(38,906	)	$	6,483
Change in value on risk management commodity derivatives	21,659			4,409			(70,291		)
Reclassification of gains and losses of commodity hedges to cost of product sold - propane and other gas liquids sales, net	(154		)	24,438			28,059
Change in value on risk management interest rate derivatives	866			(2,620		)	(3,356		)
Reclassification of gains and losses on interest rate hedges to interest expense	2,092			2,864			199
Ending balance	$	14,648		$	(9,815	)	$	(38,906	)

Ferrellgas, L.P. [Member]

Fair Value of Financial Derivatives Balance Sheet Locations

The following tables provide a summary of the fair value of derivatives within Ferrellgas, L.P.’s consolidated balance sheets as of July 31, 2017 and 2016: 

	July 31, 2017
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	11,061	Other current liabilities	$	415
Commodity derivatives-propane	Other assets, net	4,413		Other liabilities	15
Interest rate swap agreements	Prepaid expenses and other current assets	583		Other current liabilities	595
Interest rate swap agreements	Other assets, net	—		Other liabilities	112
Derivatives not designated as hedging instruments
Commodity derivatives-crude oil	Prepaid expenses and other current assets	738		Other current liabilities	828
	Total	$	16,795	Total	$	1,965
	July 31, 2016
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Location	Fair value		Location	Fair value
Derivatives designated as hedging instruments
Commodity derivatives-propane	Prepaid expenses and other current assets	$	2,263	Other current liabilities	$	10,184
Commodity derivatives-propane	Other assets, net	3,056		Other liabilities	1,597
Interest rate swap agreements	Prepaid expenses and other current assets	1,654		Other current liabilities	2,309
Interest rate swap agreements	Other assets, net	4,176		Other liabilities	1,244
Derivatives not designated as hedging instruments
Commodity derivatives-vehicle fuel	Prepaid expenses and other current assets	—		Other current liabilities	3,996
Commodity derivatives-crude oil	Prepaid expenses and other current assets	2,922		Other current liabilities	1,912
	Total	$	14,071	Total	$	21,242

Schedule of Derivative Collateral

The following tables provide a summary of cash margin balances as of July 31, 2017 and July 31, 2016, respectively:

	July 31, 2017
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	1,778	Other current liabilities	$	7,729
	Other assets, net	1,631		Other liabilities	3,073
		$	3,409		$	10,802
	July 31, 2016
	Assets			Liabilities
Description	Location	Amount		Location	Amount
Margin Balances	Prepaid expense and other current assets	$	8,252	Other current liabilities	$	—
	Other assets, net	1,275		Other liabilities	—
		$	9,527		$	—

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, 2017, 2016 and 2015 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 year ended July 31,						For the year ended July 31,
		2017		2016		2015		2017			2016			2015
Interest rate swap agreements	Interest expense	$	1,319	$	1,919	$	1,892	$	(9,100	)	$	(9,100	)	$	(9,100	)

Cash Flow Hedge Derivative Effect on Comprehensive Income

The following tables provide a summary of the effect on Ferrellgas, L.P.'s consolidated statements of comprehensive income for the years ended July 31, 2017, 2016 and 2015 due to derivatives designated as cash flow hedging instruments:

	For the year ended July 31, 2017
					Amount of Gain (Loss) Reclassified from AOCI into Income
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Effective portion			Ineffective portion
Commodity derivatives	$	21,659		Cost of product sold- propane and other gas liquids sales	$	154		$	—
Interest rate swap agreements	866			Interest expense	(2,092		)	—
	$	22,525			$	(1,938	)	$	—
	For the year ended July 31, 2016
					Amount of Gain (Loss) Reclassified from AOCI into Income
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Effective portion			Ineffective portion
Commodity derivatives	$	4,409		Cost of product sold- propane and other gas liquids sales	$	(24,438	)	$	—
Interest rate swap agreements	(2,620		)	Interest expense	(2,864		)	—
	$	1,789			$	(27,302	)	$	—
	For the year ended July 31, 2015
					Amount of Gain (Loss) Reclassified from AOCI into Income
Derivative Instrument	Amount of Gain (Loss) Recognized in AOCI			Location of Gain (Loss) Reclassified from AOCI into Income	Effective portion			Ineffective portion
Commodity derivatives	$	(70,291	)	Cost of product sold- propane and other gas liquids sales	$	(28,059	)	$	—
Interest rate swap agreements	(3,356		)	Interest expense	—			(199		)
	$	(73,647	)		$	(28,059	)	$	(199	)

Derivatives not designated as hedging instruments effect on earnings

The following table provides a summary of the effect on Ferrellgas, L.P.'s consolidated statements of comprehensive income for the year ended July 31, 2017 and 2016 due to the change in fair value of derivatives not designated as hedging instruments:

	For the year ended July 31, 2017
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Reclassified in Income
Commodity derivatives - crude oil	$	(425	)	Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	1,090		Operating expense
	For the year ended July 31, 2016
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Reclassified in Income
Commodity derivatives - crude oil	$	1,084		Cost of sales - midstream operations
Commodity derivatives - vehicle fuel	$	(4,351	)	Operating expense
	For the year ended July 31, 2015
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income			Location of Gain (Loss) Reclassified in Income
Commodity derivatives - vehicle fuel	$	(2,412	)	Operating expense

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, 2017, 2016 and 2015 were as follows: 

	For the year ended July 31,
Gains and losses on derivatives included in AOCI	2017			2016			2015
Beginning balance	$	(9,815	)	$	(38,906	)	$	6,483
Change in value on risk management commodity derivatives	21,659			4,409			(70,291		)
Reclassification of gains and losses of commodity hedges to cost of product sold - propane and other gas liquids sales, net	(154		)	24,438			28,059
Change in value on risk management interest rate derivatives	866			(2,620		)	(3,356		)
Reclassification of gains and losses on interest rate hedges to interest expense	$	2,092		$	2,864		$	199
Ending balance	$	14,648		$	(9,815	)	$	(38,906	)