Transactions With Related Parties

6 Months Ended

Jan. 31, 2021

K. Transactions with related parties

Ferrellgas has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas’ partnership agreements, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas and all other necessary or appropriate expenses allocable to Ferrellgas or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas’ business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas’ behalf and are reported in the condensed consolidated statements of operations as follows:


	For the three months ended January 31,				For the six months ended January 31,
	2021		2020		2021		2020
Operating expense	$	70,655	$	73,084	$	131,635	$	136,555

General and administrative expense	$	10,375	$	7,476	$	17,094	$	13,963

See additional discussions about transactions with the general partner and related parties in Note G – Partners’ deficit.

Ferrellgas, L.P. [Member]

K. Transactions with related parties

Ferrellgas, L.P. has no employees and is managed and controlled by its general partner. Pursuant to Ferrellgas, L.P.’s partnership agreement, the general partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of Ferrellgas, L.P. and all other necessary or appropriate expenses allocable to Ferrellgas, L.P. or otherwise reasonably incurred by its general partner in connection with operating Ferrellgas, L.P.’s business. These costs primarily include compensation and benefits paid to employees of the general partner who perform services on Ferrellgas, L.P.’s behalf and are reported in the condensed consolidated statements of operations as follows:


	For the three months ended January 31,				For the six months ended January 31,
	2021		2020		2021		2020
Operating expense	$	70,655	$	73,084	$	131,635	$	136,555

General and administrative expense	$	10,375	$	7,476	$	17,094	$	13,963

See additional discussions about transactions with the general partner and related parties in Note G – Partners’ deficit.

Term loan credit agreement with Ferrellgas Partners, L.P.

On January 8, 2021, Ferrellgas, L.P. entered into a term loan credit agreement with Ferrellgas Partners, L.P., pursuant to which Ferrellgas, L.P. extended to Ferrellgas Partners, L.P. an unsecured, non-amortizing term loan in the aggregate principal amount of $19.9 million. The term loan bears interest at a rate of 20% per annum, and all interest on the term loan will be added to the outstanding principal amount of the term loan. The term loan will mature on July 1, 2022. Interest income totaled $0.3 million and is classified in the “Other income (expense), net” line item on the condensed consolidated statements of operations.