Segment Reporting Segment Reporting

6 Months Ended

Jan. 31, 2019

Segment Reporting Information [Line Items]

M. Segment reporting

As of January 31, 2019, Ferrellgas has one reportable operating segment: propane operations and related equipment sales. All remaining activities are included in Corporate and other.

Following is a summary of segment information for the three and six months ended January 31, 2019 and 2018:


	Three months ended January 31, 2019
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	573,377	$	—	$	573,377
Direct costs (1)		443,533		10,188		453,721
Adjusted EBITDA	$	129,844	$	(10,188)	$	119,656


	Three months ended January 31, 2018
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	637,880	$	117,276	$	755,156
Direct costs (1)		507,386		127,143		634,529
Adjusted EBITDA	$	130,494	$	(9,867)	$	120,627


	Six months ended January 31, 2019
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	925,686	$	—	$	925,686
Direct costs (1)		767,127		21,062		788,189
Adjusted EBITDA	$	158,559	$	(21,062)	$	137,497


	Six months ended January 31, 2018
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	971,775	$	238,036	$	1,209,811
Direct costs (1)		810,715		252,253		1,062,968
Adjusted EBITDA	$	161,060	$	(14,217)	$	146,843

(1)

Direct costs are comprised of "cost of sales-propane and other gas liquids sales", "cost of sales- midstream operations", "cost of sales-other", "operating expense", "general and administrative expense", and "equipment lease expense" less "severance charge", "legal fees and settlements", "unrealized (non-cash) losses on changes in fair value of derivatives not designated as hedging instruments" and "multi-employer pension plan withdrawal settlement".

Following is a reconciliation of Ferrellgas’ total segment performance measure to condensed consolidated net loss:


	Three months ended January 31,				Six months ended January 31,
	2019		2018		2019		2018
Net earnings (loss) attributable to Ferrellgas Partners, L.P.	$	43,344	$	(1,843)	$	(13,671)	$	(49,758)
Income tax expense (benefit)		3		(162)		161		215
Interest expense		44,891		42,673		88,769		83,480
Depreciation and amortization expense		19,605		25,485		38,597		51,217
EBITDA		107,843		66,153		113,856		85,154
Non-cash employee stock ownership plan compensation charge		1,944		4,031		4,692		7,993
Asset impairments		—		10,005		—		10,005
Loss on asset sales and disposals		2,216		39,249		6,720		40,144
Other income, net		(86)		(684)		(105)		(1,195)
Severance costs		1,600		—		1,600		1,663
Legal fees and settlements		5,608		2,118		9,172		2,118
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments		—		(314)		—		1,293
Multi-employer pension plan withdrawal settlement		—		—		1,524		—
Net earnings (loss) attributable to noncontrolling interest		531		69		38		(332)
Adjusted EBITDA	$	119,656	$	120,627	$	137,497	$	146,843

Following are total assets by segment:


Assets	January 31, 2019		July 31, 2018
Propane operations and related equipment sales	$	1,315,233	$	1,196,084
Corporate and other		72,887		167,197
Total consolidated assets	$	1,388,120	$	1,363,281

Following are capital expenditures by segment:


	Six months ended January 31, 2019
	Propane operations and
	related equipment sales		Corporate and other		Total
Capital expenditures:
Maintenance	$	31,460	$	549	$	32,009
Growth		23,316		—		23,316
Total	$	54,776	$	549	$	55,325


	Six months ended January 31, 2018
	Propane operations and
	related equipment sales		Corporate and other		Total
Capital expenditures:
Maintenance	$	12,016	$	1,427	$	13,443
Growth		18,311		1,013		19,324
Total	$	30,327	$	2,440	$	32,767

Ferrellgas, L.P. [Member]

Segment Reporting Information [Line Items]

Segment Reporting Disclosure

L. Segment reporting

As of January 31, 2019, Ferrellgas, L.P. has one reportable operating segment: propane operations and related equipment sales. All remaining activities are included in Corporate and other.

Following is a summary of segment information for the three and six months ended January 31, 2019 and 2018


	Three months ended January 31, 2019
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	573,377	$	—	$	573,377
Direct costs (1)		443,533		10,187		453,720
Adjusted EBITDA	$	129,844	$	(10,187)	$	119,657


	Three months ended January 31, 2018
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	637,880	$	117,276	$	755,156
Direct costs (1)		507,386		127,142		634,528
Adjusted EBITDA	$	130,494	$	(9,866)	$	120,628


	Six months ended January 31, 2019
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	925,686	$	—	$	925,686
Direct costs (1)		767,127		21,057		788,184
Adjusted EBITDA	$	158,559	$	(21,057)	$	137,502


	Six months ended January 31, 2018
	Propane operations
	and related equipment		Corporate and
	sales		other		Total
Segment revenues	$	971,775	$	238,036	$	1,209,811
Direct costs (1)		810,715		252,252		1,062,967
Adjusted EBITDA	$	161,060	$	(14,216)	$	146,844

(1)

Following is a reconciliation of Ferrellgas, L.P.’s total segment performance measure to condensed consolidated net loss:


	Three months ended January 31,				Six months ended January 31,
	2019		2018		2019		2018

Net earnings (loss)	$	52,617	$	6,847	$	3,803	$	(32,852)
Income tax expense (benefit)		3		(167)		154		204
Interest expense		36,150		34,058		71,345		66,254
Depreciation and amortization expense		19,605		25,485		38,597		51,217
EBITDA		108,375		66,223		113,899		84,823
Non-cash employee stock ownership plan compensation charge		1,944		4,031		4,692		7,993
Asset impairments		—		10,005		—		10,005
Loss on asset sales and disposals		2,216		39,249		6,720		40,144
Other income, net		(86)		(684)		(105)		(1,195)
Severance costs		1,600		—		1,600		1,663
Legal fees and settlements		5,608		2,118		9,172		2,118
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments		—		(314)		—		1,293
Multi-employer pension plan withdrawal settlement		—		—		1,524		—
Adjusted EBITDA	$	119,657	$	120,628	$	137,502	$	146,844

Following are total assets by segment:


	January 31, 2019		July 31, 2018
Assets
Propane operations and related equipment sales	$	1,315,233	$	1,196,084
Corporate and other		72,729		167,162
Total consolidated assets	$	1,387,962	$	1,363,246

Following are capital expenditures by segment:


	Six months ended January 31, 2019
	Propane operations and
	related equipment sales		Corporate and other		Total
Capital expenditures:
Maintenance	$	31,460	$	549	$	32,009
Growth		23,316		—		23,316
Total	$	54,776	$	549	$	55,325


	Six months ended January 31, 2018
	Propane operations and
	related equipment sales		Corporate and other		Total
Capital expenditures:
Maintenance	$	12,016	$	1,427	$	13,443
Growth		18,311		1,013		19,324
Total	$	30,327	$	2,440	$	32,767