Supplemental Financial Statement Information

12 Months Ended

Jul. 31, 2011

Supplemental Financial Statement Information

E.  Supplemental financial statement information

     Inventories consist of the following:

	2011	2010
Propane gas and related products	$113,826	$146,805
Appliances, parts and supplies	22,313	20,106
Inventories	$136,139	$166,911

In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes. Most of these contracts have terms of less than one year and call for payment based on market prices at the date of delivery. All supply procurement fixed price contracts have terms of fewer than 24 months. As of July 31, 2011, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 50.1 million gallons of propane at fixed prices.

Property, plant and equipment, net consist of the following:

	Estimated
	useful lives	2011	2010
Land	Indefinite	$ 30,920	$ 30,566
Land improvements	2-20	11,200	11,108
Buildings and improvements	20	66,043	66,114
Vehicles, including transport trailers	8-20	104,188	99,246
Bulk equipment and district facilities	5-30	105,485	103,748
Tanks, cylinders and customer equipment	2-30	778,599	770,865
Computer and office equipment	2-5	116,281	115,189
Construction in progress	n/a	3,154	2,823
		1,215,870	1,199,659
Less:  accumulated depreciation		573,665	546,891
Property, plant and equipment, net		$642,205	$652,768
Depreciation expense totaled $58.7 million, $61.3 million and $62.3 million for fiscal 2011, 2010 and 2009, respectively.

    Other current liabilities consist of the following:

	2011	2010
Accrued interest	$  19,779	$  20,412
Accrued litigation and insurance	16,565	7,928
Accrued payroll	12,974	20,464
Customer deposits and advances	19,784	23,280
Other	35,711	35,970
Other current liabilities	$104,813	$108,054

Loss on disposal of assets and other consists of the following:	For the year ended July 31,
	2011	2010	2009
Loss on disposal of assets	$3,633	$7,296	$  5,009
Loss on transfer of accounts receivable related to the  accounts receivable securitization	-	6,566	12,124
Service income related to the accounts receivable  securitization	-	(5,377)	(4,091)
Loss on disposal of assets and other	$3,633	$8,485	$13,042

See Note B – Summary of significant accounting policies - (21) New accounting standards – Transfers of financial assets and variable interest entities – for a discussion of changes in accounting for accounts receivable securitization transactions.

Shipping and handling expenses are classified in the following consolidated statements of earnings line items:

	For the year ended July 31,
	2011	2010	2009
Operating expense	$183,899	$183,612	$178,218
Depreciation and amortization expense	6,063	5,601	4,915
Equipment lease expense	12,823	14,192	17,541
	$202,785	$203,405	$200,674

Ferrellgas, L.P. And Subsidiaries [Member]

Supplemental Financial Statement Information

E.  Supplemental financial statement information

     Inventories consist of the following:

	2011	2010
Propane gas and related products	$113,826	$146,805
Appliances, parts and supplies	22,313	20,106
Inventories	$136,139	$166,911

In addition to inventories on hand, Ferrellgas, L.P. enters into contracts primarily to buy propane for supply procurement purposes. Most of these contracts have terms of less than one year and call for payment based on market prices at the date of delivery. All supply procurement fixed price contracts have terms of fewer than 24 months. As of July 31, 2011, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 50.1 million gallons of propane at fixed prices.

  Property, plant and equipment, net consist of the following:

	Estimated
	useful lives	2011	2010
Land	Indefinite	$  30,920	$ 30,566
Land improvements	2-20	11,200	11,108
Buildings and improvements	20	66,043	66,114
Vehicles, including transport trailers	8-20	104,188	99,246
Bulk equipment and district facilities	5-30	105,485	103,748
Tanks, cylinders and customer equipment	2-30	778,599	770,865
Computer and office equipment	2-5	116,281	115,189
Construction in progress	n/a	3,154	2,823
		1,215,870	1,199,659
Less:  accumulated depreciation		573,665	546,891
Property, plant and equipment, net		$642,205	$652,768
Depreciation expense totaled $58.7 million, $61.3 million and $62.3 million for fiscal 2011, 2010 and 2009, respectively.

     Other current liabilities consist of the following:

	2011	2010
Accrued interest	$  17,773	$  17,324
Accrued litigation and insurance	16,565	7,928
Accrued payroll	12,974	20,464
Customer deposits and advances	19,784	23,280
Other	35,578	35,739
Other current liabilities	$102,674	$104,735

Loss on disposal of assets and other consists of the following:	For the year ended July 31,
	2011	2010	2009
Loss on disposal of assets	$3,633	$7,296	$ 5,009
Loss on transfer of accounts receivable related to the accounts receivable securitization	-	6,566	12,124
Service income related to the accounts receivable securitization	-	(5,377)	(4,091)
Loss on disposal of assets and other	$3,633	$8,485	$13,042

     See Note B – Summary of significant accounting policies - (20) New accounting standards – Transfers of financial assets and variable interest entities – for a discussion of changes in accounting for accounts receivable securitization transactions.

Shipping and handling expenses are classified in the following consolidated statements of earnings line items:

	For the year ended July 31,
	2011	2010	2009
Operating expense	$183,899	$183,612	$178,218
Depreciation and amortization expense	6,063	5,601	4,915
Equipment lease expense	12,823	14,192	17,541
	$202,785	$203,405	$200,674