Supplemental Financial Statement Information

3 Months Ended

Oct. 31, 2020

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

D.    Supplemental financial statement information

Inventories consist of the following:

	October 31, 2020		July 31, 2020
Propane gas and related products	$	65,513	$	58,733
Appliances, parts and supplies, and other		13,467		13,931
Inventories	$	78,980	$	72,664

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 October 31, 2020, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 1.7 million gallons of propane at fixed prices.

Prepaid expenses and other current assets consist of the following:

	October 31, 2020		July 31, 2020
Broker margin deposit assets	$	9,381	$	14,398
Other		30,707		21,546
Prepaid expenses and other current assets	$	40,088	$	35,944

Other current liabilities consist of the following:

	October 31, 2020		July 31, 2020
Accrued interest	$	68,668	$	53,841
Customer deposits and advances		40,898		32,257
Accrued payroll		13,431		18,375
Accrued insurance		10,994		14,796
Price risk management liabilities		1,506		5,029
Other		51,441		43,168
Other current liabilities	$	186,938	$	167,466

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

	For the three months ended October 31,
	2020		2019
Operating expense - personnel, vehicle, plant and other	$	47,531	$	48,015
Depreciation and amortization expense		4,523		1,840
Operating expense - equipment lease expense		5,883		7,642
	$	57,937	$	57,497

Cash and cash equivalents consist of the following:

	October 31, 2020		July 31, 2020
Cash and cash equivalents	$	202,618	$	238,002
Restricted cash (1)		96,909		95,759
Cash, cash equivalents and restricted cash	$	299,527	$	333,761

(1) As of October 31, 2020, the $96.9 million of restricted cash includes $79.4 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 $6.0 million of additional pledged collateral. As of July 31, 2020, 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 condensed 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 three months ended October 31,
	2020		2019
Cash paid for:
Interest	$	36,997	$	8,284
Income taxes	$	35	$	—
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	—	$	520
Change in accruals for property, plant and equipment additions	$	(65)	$	(43)
Lease liabilities arising from operating right-of-use assets	$	366	$	11,563
Lease liabilities arising from finance right-of-use assets	$	554	$	5,614

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

D.    Supplemental financial statement information

Inventories consist of the following:

	October 31, 2020		July 31, 2020
Propane gas and related products	$	65,513	$	58,733
Appliances, parts and supplies, and other		13,467		13,931
Inventories	$	78,980	$	72,664

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 October 31, 2020, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 1.7 million gallons of propane at fixed prices.

Prepaid expenses and other current assets consist of the following:

	October 31, 2020		July 31, 2020
Broker margin deposit assets	$	9,381	$	14,398
Other		30,663		21,499
Prepaid expenses and other current assets	$	40,044	$	35,897

Other current liabilities consist of the following:

	October 31, 2020		July 31, 2020
Accrued interest	$	41,640	$	34,511
Customer deposits and advances		40,898		32,257
Accrued payroll		13,431		18,375
Accrued insurance		10,994		14,796
Price risk management liabilities		1,506		5,029
Other		51,441		43,168
Other current liabilities	$	159,910	$	148,136

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

	For the three months ended October 31,
	2020		2019
Operating expense - personnel, vehicle, plant and other	$	47,531	$	48,015
Depreciation and amortization expense		4,523		1,840
Operating expense - equipment lease expense		5,883		7,642
	$	57,937	$	57,497

Cash and cash equivalents consist of the following:

	October 31, 2020		July 31, 2020
Cash and cash equivalents	$	202,613	$	237,996
Restricted cash (1)		96,909		95,759
Cash, cash equivalents and restricted cash	$	299,522	$	333,755

(1) As of October 31, 2020, the $96.9 million of restricted cash includes $79.4 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 $6.0 million of additional pledged collateral. As of July 31, 2020, 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 condensed 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 three months ended October 31,
	2020		2019
Cash paid for:
Interest	$	36,997	$	8,284
Income taxes	$	35	$	—
Non-cash investing and financing activities:
Liabilities incurred in connection with acquisitions	$	—	$	520
Change in accruals for property, plant and equipment additions	$	(65)	$	(43)
Lease liabilities arising from operating right-of-use assets	$	366	$	11,563
Lease liabilities arising from finance right-of-use assets	$	554	$	5,614