Supplemental Financial Statement Information

12 Months Ended

Jul. 31, 2020

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

F.        Supplemental financial statement information

Inventories consist of the following:

	July 31, 2020		July 31, 2019
Propane gas and related products	$	58,733	$	66,001
Appliances, parts and supplies, and other		13,931		14,453
Inventories	$	72,664	$	80,454

In addition to inventories on hand, Ferrellgas enters into contracts to take delivery of propane for supply procurement purposes with terms that generally do not exceed 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of July 31, 2020, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 1.0 million gallons of propane at fixed prices.

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

	Estimated useful lives	July 31, 2020		July 31, 2019
Land	Indefinite	$	39,585	$	35,165
Land improvements	2-20		14,998		14,149
Buildings and improvements	20		88,349		86,444
Vehicles, including transport trailers	8-20		105,184		111,283
Bulk equipment and district facilities	5-30		111,019		109,751
Tanks, cylinders and customer equipment	2-30		784,466		779,827
Computer and office equipment	2-5		112,582		111,838
Construction in progress	n/a		6,889		7,061
			1,263,072		1,255,518
Less: accumulated depreciation			672,030		658,795
Property, plant and equipment, net		$	591,042	$	596,723

Depreciation expense totaled $64.5 million, $60.7 million and $67.1 million for fiscal 2020,  2019 and 2018, respectively.

Prepaid expenses and other current assets consist of the following:

	July 31, 2020		July 31, 2019
Broker margin deposit assets	$	14,398	$	25,028
Other		21,546		17,247
Prepaid expenses and other current assets	$	35,944	$	42,275

Other assets, net consist of the following:

	July 31, 2020		July 31, 2019
Notes receivable, less current portion and allowance	$	5,330	$	16,216
Finance lease right-of-use assets		41,426		—
Other		27,992		52,889
Other assets, net	$	74,748	$	69,105

Other current liabilities consist of the following:

	July 31, 2020		July 31, 2019
Accrued interest	$	53,841	$	20,484
Customer deposits and advances		32,257		24,686
Accrued payroll		18,375		17,356
Accrued insurance		14,796		18,524
Price risk management liabilities		5,029		14,198
Other		43,168		42,989
Other current liabilities	$	167,466	$	138,237

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

	For the year ended July 31,
	2020		2019		2018
Operating expense - personnel, vehicle, plant and other	$	219,598	$	215,780	$	195,646
Depreciation and amortization expense		9,857		6,375		4,947
Operating expense - equipment lease expense		32,518		30,759		25,765
	$	261,973	$	252,914	$	226,358

Cash and cash equivalents consist of the following:

	July 31, 2020		July 31, 2019
Cash and cash equivalents	$	238,002	$	11,054
Restricted cash (1)		95,759		—
Cash, cash equivalents and restricted cash	$	333,761	$	11,054

(1) The $95.8 million of restricted cash includes $78.2 million of pledged cash collateral for letters of credit outstanding, an $11.5 million cash deposit made with the administrative agent under the terminated Senior Secured Credit Facility, which may be used by the administrative agent to pay contingent obligations arising under the Financing Agreement that governed the Senior Secured Credit Facility, and $6.1 million of additional pledged collateral. For additional discussion see Note I – Debt.

For purposes of the consolidated statements of cash flows, Ferrellgas considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Certain cash flow and significant non-cash activities are presented below:

	For the year ended July 31,
	2020		2019		2018
Cash paid (refunded) for:
Interest	$	147,402	$	166,897	$	159,271
Income taxes	$	289	$	141	$	(291)
Non-cash investing and financing activities:
Liability incurred in connection with Term Loan amendment	$	8,863	$	—		—
Liabilities incurred in connection with acquisitions	$	975	$	1,650	$	1,993
Change in accruals for property, plant and equipment additions	$	216	$	1,132	$	264
Lease liabilities arising from operating right-of-use assets	$	14,938	$	—	$	—
Lease liabilities arising from finance right-of-use assets	$	45,455	$	—	$	—

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

F.      Supplemental financial statement information

Inventories consist of the following:

	July 31, 2020		July 31, 2019
Propane gas and related products	$	58,733	$	66,001
Appliances, parts and supplies, and other		13,931		14,453
Inventories	$	72,664	$	80,454

In addition to inventories on hand, Ferrellgas, L.P. enters into contracts to take delivery of propane for supply procurement purposes with terms that generally do not exceed 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of July 31, 2020, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 1.0 million gallons of propane at fixed prices.

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

	Estimated useful lives	July 31, 2020		July 31, 2019
Land	Indefinite	$	39,585	$	35,165
Land improvements	2-20		14,998		14,149
Buildings and improvements	20		88,349		86,444
Vehicles, including transport trailers	8-20		105,184		111,283
Bulk equipment and district facilities	5-30		111,019		109,751
Tanks, cylinders and customer equipment	2-30		784,466		779,827
Computer and office equipment	2-5		112,582		111,838
Construction in progress	n/a		6,889		7,061
			1,263,072		1,255,518
Less: accumulated depreciation			672,030		658,795
Property, plant and equipment, net		$	591,042	$	596,723

Depreciation expense totaled $64.5 million, $60.7 million and $67.1 million for fiscal 2020,  2019 and 2018, respectively.

Prepaid expenses and other current assets consist of the following:

	July 31, 2020		July 31, 2019
Broker margin deposit assets	$	14,398	$	25,028
Other		21,499		17,129
Prepaid expenses and other current assets	$	35,897	$	42,157

Other assets, net consist of the following:

	July 31, 2020		July 31, 2019
Notes receivable, less current portion and allowance	$	5,330	$	16,216
Finance lease right-of-use assets		41,426		—
Other		27,992		52,889
Other assets, net	$	74,748	$	69,105

Other current liabilities consist of the following:

	July 31, 2020		July 31, 2019
Accrued interest	$	34,511	$	16,550
Customer deposits and advances		32,257		24,686
Accrued payroll		18,375		17,356
Accrued insurance		14,796		18,524
Price risk management liabilities		5,029		14,198
Other		43,168		42,989
Other current liabilities	$	148,136	$	134,303

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

	For the year ended July 31,
	2020		2019		2018
Operating expense - personnel, vehicle, plant and other	$	219,598	$	215,780	$	195,646
Depreciation and amortization expense		9,857		6,375		4,947
Operating expense - equipment lease expense		32,518		30,759		25,765
	$	261,973	$	252,914	$	226,358

Cash and cash equivalents consist of the following:

	July 31, 2020		July 31, 2019
Cash and cash equivalents	$	237,996	$	11,046
Restricted cash (1)		95,759		—
Cash, cash equivalents and restricted cash	$	333,755	$	11,046

(1) The $95.8 million of restricted cash includes $78.2 million of pledged cash collateral for letters of credit outstanding, an $11.5 million cash deposit made with the administrative agent under the terminated Senior Secured Credit Facility, which may be used by the administrative agent to pay contingent obligations arising under the Financing Agreement that governed the Senior Secured Credit Facility, and $6.1 million of additional pledged collateral. For additional discussion see Note I – Debt.

For purposes of the consolidated statements of cash flows, Ferrellgas, L.P. considers cash equivalents to include all highly liquid debt instruments purchased with an original maturity of three months or less. Certain cash flow and significant non-cash activities are presented below:

	For the year ended July 31,
	2020		2019		2018
Cash paid (refunded) for:
Interest	$	132,006	$	136,106	$	128,479
Income taxes	$	241	$	111	$	(311)
Non-cash investing and financing activities:
Liability incurred in connection with Term Loan amendment	$	8,863	$	—	$	—
Liabilities incurred in connection with acquisitions	$	975	$	1,650	$	1,993
Change in accruals for property, plant and equipment additions	$	216	$	1,132	$	264
Lease liabilities arising from operating right-of-use assets	$	14,938	$	—	$	—
Lease liabilities arising from finance right-of-use assets	$	45,455	$	—	$	—