Business Combinations

12 Months Ended

Jul. 31, 2011

Business Combinations

C.  Business combinations

Business combinations are accounted for under the purchase method 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 earnings from the date of acquisition. The pro forma effect of these transactions was not material to Ferrellgas' balance sheet or results of operations.

During fiscal 2011, Ferrellgas acquired propane distribution assets with an aggregate value of $12.6 million in the following five transactions:

·Beatty's Gas, based in Pennsylvania, acquired October 2010;

·Kings River Propane, based in California, acquired December 2010;

·Bennett Gas Company, based in Georgia, acquired December 2010;

·Ram Propane, based in Wyoming, acquired March 2011; and

·Williams Panhandle Propane, based in Florida, acquired July 2011.

These acquisitions were funded by $7.3 million in cash payments, the issuances of $2.4 million of liabilities and other costs and considerations, and $2.9 million of common units, net of issuance costs.

The aggregate fair values of these five transactions were allocated as follows:

Customer tanks, buildings, land and other	$  7,746
Non-compete agreements	1,684
Goodwill	5
Customer lists	3,151
	$12,586

The estimated fair values and useful lives of assets acquired are based on a preliminary internal 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.

During fiscal 2010, Ferrellgas acquired propane distribution assets with an aggregate value of $45.1 million in the following transaction:

·Vanson, LLC, based in Michigan, acquired September 2009.

This acquisition was funded by $36.5 million in cash payments, the issuances of $5.5 million of liabilities and other costs and considerations, and $3.1 million of common units, net of issuance costs.

The aggregate fair value of this transaction was allocated as follows:

Customer tanks, buildings, land and other	$14,707
Non-compete agreements	3,271
Customer lists	27,136
	$45,114

The estimated fair values and useful lives of assets acquired are based on an internal valuation and included only minor adjustments during the 12 month period after the date of acquisition.

During fiscal 2009, Ferrellgas acquired propane distribution assets with an aggregate value of $10.0 million in the following four transactions:

·Lorensen Propane Gas, Inc., based in California, acquired September 2008;

·HBH Gas Systems, LLC – Austin's Colony Phase 5, based in Texas, acquired September 2008;

·Ottawa Cooperative, based in Kansas, acquired May 2009; and

·Town & Country Propane, Inc, based in Missouri, acquired July 2009.

These acquisitions were funded by $2.7 million in cash payments, the issuances of $1.8 million of liabilities and other costs and considerations, and $5.5 million of common units, net of issuance costs.

The aggregate fair values of these four transactions were allocated as follows:

Customer tanks, buildings, land and other	$3,031
Non-compete agreements	1,438
Customer lists	5,475
Working capital	6
	$9,950

The estimated fair values and useful lives of assets acquired are based on an internal valuation and included only minor adjustments during the 12 month period after the date of acquisition.

Ferrellgas, L.P. And Subsidiaries [Member]

Business Combinations

C.  Business combinations

Business combinations are accounted for under the purchase method 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 earnings from the date of acquisition. The pro forma effect of these transactions was not material to Ferrellgas, L.P.'s balance sheet or results of operations.

During fiscal 2011, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $12.6 million in the following five transactions:

·Beatty's Gas, based in Pennsylvania, acquired October 2010;

·Kings River Propane, based in California, acquired December 2010;

·Bennett Gas Company, based in Georgia, acquired December 2010;

·Ram Propane, based in Wyoming, acquired March 2011; and

·Williams Panhandle Propane, based in Florida, acquired July 2011.

These acquisitions were funded by $7.3 million in cash payments, the issuances of $2.4 million of liabilities and other costs and considerations, and the contribution of net assets of $2.9 million from Ferrellgas Partners.

The aggregate fair values of these five transactions were allocated as follows:

Customer tanks, buildings, land and other	$  7,746
Non-compete agreements	1,684
Goodwill	5
Customer lists	3,151
	$12,586

The estimated fair values and useful lives of assets acquired are based on a preliminary internal 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.

During fiscal 2010, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $45.1 million in the following transaction:

·Vanson, LLC, based in Michigan, acquired September 2009.

This acquisition was funded by $36.5 million in cash payments, the issuances of $5.5 million of liabilities and other costs and considerations, and the contribution of net assets of $3.1 million from Ferrellgas Partners.

The aggregate fair value of this transaction was allocated as follows:

Customer tanks, buildings, land and other	$14,707
Non-compete agreements	3,271
Customer lists	27,136
	$45,114

The estimated fair values and useful lives of assets acquired are based on an internal valuation and included only minor adjustments during the 12 month period after the date of acquisition.

During fiscal 2009, Ferrellgas, L.P. acquired propane distribution assets with an aggregate value of $10.0 million in the following four transactions:

·Lorensen Propane Gas, Inc., based in California, acquired September 2008;

·HBH Gas Systems, LLC – Austin's Colony Phase 5, based in Texas, acquired September 2008;

·Ottawa Cooperative, based in Kansas, acquired May 2009; and

·Town & Country Propane, Inc, based in Missouri, acquired July 2009.

These acquisitions were funded by $2.7 million in cash payments, the issuances of $1.8 million of liabilities and other costs and considerations, and the contribution of net assets of $5.5 million from Ferrellgas Partners.

The aggregate fair values of these four transactions were allocated as follows:

Customer tanks, buildings, land and other	$3,031
Non-compete agreements	1,438
Customer lists	5,475
Working capital	6
	$9,950

The estimated fair values and useful lives of assets acquired are based on an internal valuation and included only minor adjustments during the 12 month period after the date of acquisition.