Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Jul. 31, 2017 |
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| 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 |
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| | Total | | $ | 14,071 |
| | Total | | $ | 21,242 |
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| 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 |
| | | | $ | — |
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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, 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 | ) |
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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, 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 | ) | $ | — |
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| | | | | | | | | | | | | | | | | | 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 | ) |
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| 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 |
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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, 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 | ) |
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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 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 |
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| | Total | | $ | 14,071 |
| | Total | | $ | 21,242 |
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| 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 |
| | | | $ | — |
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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, 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 | ) |
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| 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 | ) |
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| 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 |
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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, 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 | ) |
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