Supplemental Financial Statement Information
 6 Months Ended
Jan. 31, 2016
Supplemental Financial Statement Information
Supplemental financial statement information
 
Inventories consist of the following:
 
 
January 31, 2016
 
July 31, 2015
Propane gas and related products
 
$
60,248

 
$
68,731

Crude oil
 
5,720

 
—

Appliances, parts and supplies
 
26,520

 
28,023

Inventories
 
$
92,488

 
$
96,754



In addition to inventories on hand, Ferrellgas enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2016, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 102.7 million gallons of propane at fixed prices.

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

 
 
 
January 31,
 
July 31,
 
Estimated Useful Lives
 
2016
 
2015
Land
Indefinite
 
$
35,581

 
$
34,389

Land improvements
2-20
 
13,441

 
13,249

Building and improvements
20
 
72,248

 
71,923

Vehicles, including transport trailers
8-20
 
213,038

 
228,646

Bulk equipment and district facilities
5-30
 
111,669

 
111,657

Tanks, cylinders and customer equipment
2-30
 
768,720

 
772,904

Salt water disposal wells and related equipment
2-30
 
52,095

 
38,460

Rail cars
30
 
173,513

 
150,235

Injection stations
20
 
32,178

 
37,619

Pipeline
15
 
4,074

 
4,074

Computer and office equipment
2-5
 
121,055

 
123,386

Construction in progress
n/a
 
23,503

 
16,841

 
 
 
1,621,115

 
1,603,383

Less: accumulated depreciation
 
 
654,120

 
638,166

Property, plant and equipment, net
 
 
$
966,995

 
$
965,217



Other current liabilities consist of the following:
 
 
January 31, 2016
 
July 31, 2015
Accrued interest
 
$
16,861

 
$
17,281

Accrued payroll
 
13,978

 
17,485

Customer deposits and advances
 
30,226

 
28,792

Price risk management liabilities
 
34,907

 
31,450

Other
 
54,962

 
85,679

Other current liabilities
 
$
150,934

 
$
180,687



Shipping and handling expenses are classified in the following condensed consolidated statements of earnings line items:
 
 
For the three months ended January 31,
 
For the six months ended January 31,
 
 
2016
 
2015
 
2016
 
2015
Operating expense
 
$
43,881

 
$
48,125

 
$
84,225

 
$
93,915

Depreciation and amortization expense
 
1,082

 
1,327

 
2,197

 
2,777

Equipment lease expense
 
6,486

 
5,713

 
12,915

 
10,578


 
$
51,449

 
$
55,165

 
$
99,337

 
$
107,270



During the three month period ended October 31, 2015, Ferrellgas committed to a plan to dispose of certain assets in its Midstream operations - crude oil logistics segment. As of October 31, 2015, this plan resulted in 69 tractor trucks sold and 136 tractor trucks reclassified from "Vehicles, including transport trailers" to Assets held for sale and were recorded at the lower of carrying value or estimated fair value, less an estimate of costs to sell. The estimate of fair value included significant unobservable inputs (Level 3 fair value). During the three month period ended January 31, 2016, 15 of these tractor trucks were sold, 69 were repurposed and reclassified to property, plant, and equipment as held for use within other Ferrellgas businesses, which constitutes a change in plan, and 52 tractor trucks remain classified as held for sale assets. Loss on disposal of assets and other during the three and six month periods ended January 31, 2016 consists of:
 
 
For the three months ended January 31,
 
For the six months ended January 31,
 
 
2016
 
2015
 
2016
 
2015
Loss on assets held for sale
 
$
—

 
$
—

 
$
12,112

 
$
—

(Gain) loss on sale of assets held for sale
 
(468
)
 
—

 
791

 
—

Loss on sale of assets
 
2,992

 
1,414

 
4,538

 
2,375

Loss on disposal of assets and other
 
$
2,524

 
$
1,414

 
$
17,441

 
$
2,375
Ferrellgas, L.P. [Member]  
Supplemental Financial Statement Information
Supplemental financial statement information
 
Inventories consist of the following:
 
 
January 31, 2016
 
July 31, 2015
Propane gas and related products
 
$
60,248

 
$
68,731

Crude oil
 
5,720

 
—

Appliances, parts and supplies
 
26,520

 
28,023

Inventories
 
$
92,488

 
$
96,754



In addition to inventories on hand, Ferrellgas, L.P. enters into contracts primarily to buy propane for supply procurement purposes with terms up to 36 months. Most of these contracts call for payment based on market prices at the date of delivery. As of January 31, 2016, Ferrellgas, L.P. had committed, for supply procurement purposes, to take delivery of approximately 102.7 million gallons of propane at fixed prices.

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

 
 
 
January 31,
 
July 31,
 
Estimated useful lives
 
2016
 
2015
Land
Indefinite
 
$
35,581

 
$
34,389

Land improvements
2-20
 
13,441

 
13,249

Building and improvements
20
 
72,248

 
71,923

Vehicles, including transport trailers
8-20
 
213,038

 
228,646

Bulk equipment and district facilities
5-30
 
111,669

 
111,657

Tanks, cylinders and customer equipment
2-30
 
768,720

 
772,904

Salt water disposal wells and related equipment
2-30
 
52,095

 
38,460

Rail cars
30
 
173,513

 
150,235

Injection stations
20
 
32,178

 
37,619

Pipeline
15
 
4,074

 
4,074

Computer and office equipment
2-5
 
121,055

 
123,386

Construction in progress
n/a
 
23,503

 
16,841

 
 
 
1,621,115

 
1,603,383

Less: accumulated depreciation
 
 
654,120

 
638,166

Property, plant and equipment, net
 
 
$
966,995

 
$
965,217



Other current liabilities consist of the following:
 
 
January 31, 2016
 
July 31, 2015
Accrued interest
 
$
14,855

 
$
15,275

Accrued payroll
 
13,978

 
17,485

Customer deposits and advances
 
30,226

 
28,792

Price risk management liabilities
 
34,907

 
31,450

Other
 
54,962

 
83,174

Other current liabilities
 
$
148,928

 
$
176,176



Shipping and handling expenses are classified in the following condensed consolidated statements of earnings line items:
 
 
For the three months ended January 31,
 
For the six months ended January 31,
 
 
2016
 
2015
 
2016
 
2015
Operating expense
 
$
43,881

 
$
48,125

 
$
84,225

 
$
93,915

Depreciation and amortization expense
 
1,082

 
1,327

 
2,197

 
2,777

Equipment lease expense
 
6,486

 
5,713

 
12,915

 
10,578

 
 
$
51,449

 
$
55,165

 
$
99,337

 
$
107,270



During the three month period ended October 31, 2015, Ferrellgas, L.P. committed to a plan to dispose of certain assets in its Midstream operations - crude oil logistics segment. As of October 31, 2015, this plan resulted in 69 tractor trucks sold and 136 tractor trucks reclassified from "Vehicles, including transport trailers" to Assets held for sale and were recorded at the lower of carrying value or estimated fair value, less an estimate of costs to sell. The estimate of fair value included significant unobservable inputs (Level 3 fair value). During the three month period ended January 31, 2016, 15 of these tractor trailers were sold, 69 were repurposed and reclassified to property, plant, and equipment as held for use within other Ferrellgas businesses, which constitutes a change in plan, and 52 tractor trucks remain classified as held for sale. Loss on disposal of assets and other during the three and six month periods ended January 31, 2016 consists of:

 
 
For the three months ended January 31,
 
For the six months ended January 31,
 
 
2016
 
2015
 
2016
 
2015
Loss on assets held for sale
 
$
—

 
$
—

 
$
12,112

 
$
—

(Gain) loss on sale of assets held for sale
 
(468
)
 
—

 
791

 
—

Loss on sale of assets
 
2,992

 
1,414

 
4,538

 
2,375

Loss on disposal of assets and other
 
$
2,524

 
$
1,414

 
$
17,441

 
$
2,375