Accounts And Notes Receivable, Net

3 Months Ended

Oct. 31, 2011

Accounts And Notes Receivable, Net

    D.     Accounts and notes receivable, net

    Accounts and notes receivable, net consist of the following:

	October 31,	July 31,
	2011	2011
Accounts receivable pledged as collateral	$139,451	$112,509
Accounts receivable	70,215	51,104
Other	228	229
Less: Allowance for doubtful accounts	(4,286)	(4,310)
Accounts and notes receivable, net	$205,608	$159,532

     The operating partnership, through Ferrellgas Receivables, securitizes a portion of its trade accounts receivable through a commercial paper conduit for proceeds of up to $145.0 million. At October 31, 2011, $139.5 million of trade accounts receivable were pledged as collateral against $81.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from the operating partnership. The operating partnership does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral. 

     The operating partnership structured Ferrellgas Receivables in order to facilitate securitization transactions while complying with Ferrellgas' various debt covenants. If the covenants were compromised, funding from the facility could be restricted or suspended, or its costs could increase. As of October 31, 2011, the operating partnership had received cash proceeds of $81.0 million from trade accounts receivables securitized, with the ability to receive proceeds of an additional $8.0 million. As of July 31, 2011, the operating partnership had received cash proceeds of $61.0 million from trade accounts receivables securitized, with the ability to receive proceeds of an additional $3.0 million. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 3.2% and 3.6% as of October 31, 2011 and July 31, 2011, respectively.

Ferrellgas, L.P. And Subsidiaries [Member]

Accounts And Notes Receivable, Net

D. Accounts and notes receivable, net

Accounts and notes receivable, net consist of the following:

	October 31, 2011	July 31, 2011
Accounts receivable pledged as collateral	$ 139,451	$ 112,509
Accounts receivable	70,215	51,104
Other	228	229
Less: Allowance for doubtful accounts	(4,286)	(4,310)
Accounts and notes receivable, net	$205,608	$159,532

Ferrellgas, L.P., through Ferrellgas Receivables, securitizes a portion of its trade accounts receivable through a commercial paper conduit for proceeds of up to $145.0 million. At October 31, 2011, $139.5 million of trade accounts receivable were pledged as collateral against $81.0 million of collateralized notes payable due to the commercial paper conduit. These accounts receivable pledged as collateral are bankruptcy remote from Ferrellgas, L.P. Ferrellgas, L.P. does not provide any guarantee or similar support to the collectability of these accounts receivable pledged as collateral.

Ferrellgas, L.P. structured Ferrellgas Receivables in order to facilitate securitization transactions while complying with Ferrellgas, L.P.'s various debt covenants. If the covenants were compromised, funding from the facility could be restricted or suspended, or its costs could increase. As of October 31, 2011, Ferrellgas, L.P. had received cash proceeds of $81.0 million from trade accounts receivables securitized, with the ability to receive proceeds of an additional $8.0 million.As of July 31, 2011, Ferrellgas, L.P. had received cash proceeds of $61.0 million from trade accounts receivables securitized, with the ability to receive proceeds of an additional $3.0 million. Borrowings under the accounts receivable securitization facility had a weighted average interest rate of 3.2% and 3.6% as of October 31, 2011 and July 31, 2011, respectively.