Supplemental Financial Statement Information

6 Months Ended

Jan. 31, 2021

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

D.    Supplemental financial statement information

Inventories consist of the following:

	January 31, 2021		July 31, 2020
Propane gas and related products	$	76,843	$	58,733
Appliances, parts and supplies, and other		13,630		13,931
Inventories	$	90,473	$	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 January 31, 2021, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 2.7 million gallons of propane at fixed prices.

Prepaid expenses and other current assets consist of the following:

	January 31, 2021		July 31, 2020
Broker margin deposit assets	$	19,410	$	14,398
Price risk management asset		32,270		2,846
Other		21,234		18,700
Prepaid expenses and other current assets	$	72,914	$	35,944

Other current liabilities consist of the following:

	January 31, 2021		July 31, 2020
Accrued interest	$	34,583	$	53,841
Customer deposits and advances		33,144		32,257
Accrued payroll		23,902		18,375
Accrued insurance		11,416		14,796
Other		88,863		48,197
Other current liabilities	$	191,908	$	167,466

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

	For the three months ended January 31,				For the six months ended January 31,
	2021		2020		2021		2020
Operating expense - personnel, vehicle, plant and other	$	56,723	$	64,987	$	104,253	$	113,002
Depreciation and amortization expense		1,958		2,036		6,481		3,876
Operating expense - equipment lease expense		5,793		7,984		11,676		15,626
	$	64,474	$	75,007	$	122,410	$	132,504

Cash and cash equivalents consist of the following:

	January 31, 2021		July 31, 2020
Cash and cash equivalents	$	217,434	$	238,002
Restricted cash (1)		109,049		95,759
Cash, cash equivalents and restricted cash	$	326,483	$	333,761

(1) As of January 31, 2021, the $109.0 million of restricted cash includes $91.5 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 F – 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 six months ended January 31,
	2021		2020
Cash paid for:
Interest	$	88,107	$	83,826
Income taxes	$	305	$	1
Non-cash investing and financing activities:
Liability incurred in connection with Financing Agreement amendment	$	—	$	8,863
Liabilities incurred in connection with acquisitions	$	—	$	520
Change in accruals for property, plant and equipment additions	$	(178)	$	268
Lease liabilities arising from operating right-of-use assets	$	4,262	$	21,606
Lease liabilities arising from finance right-of-use assets	$	972	$	12,241

Ferrellgas, L.P. [Member]

Supplemental Financial Statement Information [Line Items]

Supplemental Financial Statement Information

D.    Supplemental financial statement information

Inventories consist of the following:

	January 31, 2021		July 31, 2020
Propane gas and related products	$	76,843	$	58,733
Appliances, parts and supplies, and other		13,630		13,931
Inventories	$	90,473	$	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 January 31, 2021, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 2.7 million gallons of propane at fixed prices.

Prepaid expenses and other current assets consist of the following:

	January 31, 2021		July 31, 2020
Broker margin deposit assets	$	19,410	$	14,398
Price risk management asset		32,270		2,846
Other		21,426		18,653
Prepaid expenses and other current assets	$	73,106	$	35,897

Other current liabilities consist of the following:

	January 31, 2021		July 31, 2020
Accrued interest	$	34,583	$	34,511
Customer deposits and advances		33,144		32,257
Accrued payroll		23,902		18,375
Accrued insurance		11,416		14,796
Other		87,663		48,197
Other current liabilities	$	190,708	$	148,136

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

	For the three months ended January 31,				For the six months ended January 31,
	2021		2020		2021		2020
Operating expense - personnel, vehicle, plant and other	$	56,723	$	64,987	$	104,253	$	113,002
Depreciation and amortization expense		1,958		2,036		6,481		3,876
Operating expense - equipment lease expense		5,793		7,984		11,676		15,626
	$	64,474	$	75,007	$	122,410	$	132,504

Cash and cash equivalents consist of the following:

	January 31, 2021		July 31, 2020
Cash and cash equivalents	$	197,528	$	237,996
Restricted cash (1)		109,049		95,759
Cash, cash equivalents and restricted cash	$	306,577	$	333,755

(1) As of January 31, 2021, the $109.0 million of restricted cash includes $91.5 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 F – 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 six months ended January 31,
	2021		2020
Cash paid for:
Interest	$	88,107	$	68,430
Income taxes	$	290	$	1
Non-cash investing and financing activities:
Liability incurred in connection with Financing Agreement amendment	$	—	$	8,863
Liabilities incurred in connection with acquisitions	$	—	$	520
Change in accruals for property, plant and equipment additions	$	(178)	$	268
Lease liabilities arising from operating right-of-use assets	$	4,262	$	21,606
Lease liabilities arising from finance right-of-use assets	$	972	$	12,241