Leases

3 Months Ended

Oct. 31, 2020

C. Leases

The following table provides the operating and financing ROU assets and lease liabilities as of October 31, 2020 and July 31, 2020:


Leases	Classification		October 31, 2020		July 31, 2020
Assets
Operating lease assets	Operating lease right-of-use assets	$	100,349	$	107,349
Financing lease assets	Other assets, net		39,753		41,426
Total leased assets		$	140,102	$	148,775

Liabilities
Current
Operating	Current operating lease liabilities	$	28,280	$	29,345
Financing	Other current liabilities		7,186		6,955
Noncurrent
Operating	Operating lease liabilities		83,337		89,022
Financing	Other liabilities		32,033		33,473
Total leased liabilities		$	150,836	$	158,795

The following table provides the lease expenses for the three months ended October 31, 2020 and 2019:


		For the three months ended October 31,
Leases expense	Classification	2020		2019

Operating lease expense	Operating expense - personnel, vehicle, plant and other	$	1,783	$	1,741
	Operating expense - equipment lease expense		6,442		7,607
	Cost of sales - propane and other gas liquids sales		526		389
	General and administrative expense		282		266
Total operating lease expense			9,033		10,003

Short-term expense	Operating expense - personnel, vehicle, plant and other		2,033		1,954
	General and administrative expense		242		110
Total short-term expense			2,275		2,064

Variable lease expense	Operating expense - personnel, vehicle, plant and other		746		675
	Operating expense - equipment lease expense		388		733
Total variable lease expense			1,134		1,408

Finance lease expense:
Amortization of leased assets	Depreciation and amortization expense		2,165		40
Interest on lease liabilities	Interest expense		945		42
Total finance lease expense			3,110		82

Total lease expense (a)		$	15,552	$	13,557

(a)

As of October 31, 2020 and 2019 Ferrellgas has also recognized $0.1 million and $0.1 million, respectively, of expense related to the accretion of lease exit costs associated with a crude oil storage agreement that is no longer being utilized, primarily due to various Midstream dispositions, and for which Ferrellgas does not anticipate any future economic benefit.

Minimum annual payments under existing operating and finance lease liabilities as of October 31, 2020 are as follows:


Maturities of lease liabilities		Operating leases		Finance leases		Total
2021	$	25,539	$	7,751	$	33,290
2022		27,163		9,709		36,872
2023		35,832		7,742		43,574
2024		18,150		7,173		25,323
2025		12,889		7,183		20,072
Thereafter		21,532		10,655		32,187
Total lease payments	$	141,105	$	50,213	$	191,318
Less: Imputed interest		29,488		10,994		40,482
Present value of lease liabilities	$	111,617	$	39,219	$	150,836

The following table represents the weighted-average remaining lease term and discount rate as of October 31, 2020:


	As of October 31, 2020
Lease type	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	5.3	8.2%
Finance leases	5.9	8.6%

Cash flow information is presented below:


	For the three months ended October 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows	$	8,395	$	11,049

Cash paid for amounts included in the measurement of lease liabilities for financing leases:
Operating cash flows	$	877	$	42
Financing cash flows	$	1,703	$	38

Ferrellgas, L.P. [Member]

Leases