| Guarantor financial information | Guarantor financial information The $500.0 million aggregate principal amount of unregistered 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are, and any notes registered under the Securities Act of 1933 and issued in exchange for such unregistered notes will be, fully and unconditionally and joint and severally guaranteed by all of Ferrellgas, L.P.’s 100% owned subsidiaries except: i) Ferrellgas Finance Corp; ii) certain special purposes subsidiaries formed for use in connection with our accounts receivable securitization; and iii) foreign subsidiaries. Guarantees of these senior notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the assets of a guarantor or (b) all of the capital stock of such guarantor (including by way of merger or consolidation), in each case, to a person that is not Ferrellgas, L.P. or a restricted subsidiary of Ferrellgas, L.P., (ii) if Ferrellgas, L.P. designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon defeasance or discharge of the notes, (iv) upon the liquidation or dissolution of such guarantor, or (v) at such time as such guarantor ceases to guarantee any other indebtedness of either of the issuers and any other guarantor. The guarantor financial information discloses in separate columns the financial position, results of operations and the cash flows of Ferrellgas, L.P. (Parent), Ferrellgas Finance Corp. (co-issuer), Ferrellgas L.P.’s guarantor subsidiaries on a combined basis, and Ferrellgas L.P.’s non-guarantor subsidiaries on a combined basis. The dates and the periods presented in the guarantor financial information are consistent with the periods presented in Ferrellgas, L.P.’s consolidated financial statements. FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of October 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 6,029 $ 1 $ 2,578 $ — $ — $ 8,608 Accounts and notes receivable (3,228 ) — 72,921 108,985 — 178,678 Intercompany receivables 32,939 — — — (32,939 ) — Inventories 79,953 — 16,126 — — 96,079 Prepaid expenses and other current assets 37,203 — 20,726 2 — 57,931 Total current assets 152,896 1 112,351 108,987 (32,939 ) 341,296 Property, plant and equipment, net 566,651 — 374,632 — — 941,283 Goodwill 243,615 — 216,000 — — 459,615 Intangible assets, net 151,403 — 410,923 — — 562,326 Intercompany receivables 450,000 — — — (450,000 ) — Investments in consolidated subsidiaries 641,776 — — — (641,776 ) — Assets held for sale — — 8,840 — — 8,840 Other assets, net 62,673 — 8,076 305 — 71,054 Total assets $ 2,269,014 $ 1 $ 1,130,822 $ 109,292 $ (1,124,715 ) $ 2,384,414 LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable $ 43,118 $ — $ 20,435 $ — $ — $ 63,553 Short-term borrowings 95,391 — — — — 95,391 Collateralized note payable — — — 68,000 — 68,000 Intercompany payables — — 31,596 1,343 (32,939 ) — Other current liabilities 173,372 — 21,527 130 — 195,029 Total current liabilities 311,881 — 73,558 69,473 (32,939 ) 421,973 Long-term debt 1,640,213 — 450,969 — (450,000 ) 1,641,182 Other liabilities 34,119 — 4,114 225 — 38,458 Contingencies and commitments Partners' capital: Partners' equity 313,509 1 603,153 39,269 (642,423 ) 313,509 Accumulated other comprehensive income (loss) (30,708 ) — (972 ) 325 647 (30,708 ) Total partners' capital 282,801 1 602,181 39,594 (641,776 ) 282,801 Total liabilities and partners' capital $ 2,269,014 $ 1 $ 1,130,822 $ 109,292 $ (1,124,715 ) $ 2,384,414 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of July 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 5,579 $ 1 $ 20 $ — $ — $ 5,600 Accounts and notes receivable (2,858 ) — 80,657 119,119 — 196,918 Intercompany receivables 39,238 — — — (39,238 ) — Inventories 78,132 — 18,622 — — 96,754 Prepaid expenses and other current assets 42,069 — 22,140 2 — 64,211 Total current assets 162,160 1 121,439 119,121 (39,238 ) 363,483 Property, plant and equipment, net 569,640 — 395,577 — — 965,217 Goodwill 246,116 — 232,631 — — 478,747 Intangible assets, net 155,659 — 424,384 — — 580,043 Intercompany receivables 450,000 — — — (450,000 ) — Investments in consolidated subsidiaries 661,081 — — — (661,081 ) — Other assets, net 62,019 — 10,087 366 — 72,472 Total assets $ 2,306,675 $ 1 $ 1,184,118 $ 119,487 $ (1,150,319 ) $ 2,459,962 LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable $ 40,210 $ — $ 43,764 $ — $ — $ 83,974 Short-term borrowings 75,319 — — — — 75,319 Collateralized note payable — — — 70,000 — 70,000 Intercompany payables — — 30,289 8,949 (39,238 ) — Other current liabilities 142,137 — 33,903 136 — 176,176 Total current liabilities 257,666 — 107,956 79,085 (39,238 ) 405,469 Long-term debt 1,621,439 — 450,953 — (450,000 ) 1,622,392 Other liabilities 37,444 — 4,306 225 — 41,975 Contingencies and commitments Partners' capital: Partners' equity 429,444 1 621,550 39,852 (661,403 ) 429,444 Accumulated other comprehensive income (loss) (39,318 ) — (647 ) 325 322 (39,318 ) Total partners' capital 390,126 1 620,903 40,177 (661,081 ) 390,126 Total liabilities and partners' capital $ 2,306,675 $ 1 $ 1,184,118 $ 119,487 $ (1,150,319 ) $ 2,459,962 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the three months ended October 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 245,301 $ — $ — $ — $ — $ 245,301 Midstream operations — — 193,670 — — 193,670 Other 17,377 — 14,798 — — 32,175 Total revenues 262,678 — 208,468 — — 471,146 Costs and expenses: Cost of sales - propane and other gas liquids sales 121,748 — 3 — — 121,751 Cost of sales - midstream operations — — 153,604 — — 153,604 Cost of sales - other 2,538 — 11,910 — — 14,448 Operating expense 96,974 — 17,659 2,370 (804 ) 116,199 Depreciation and amortization expense 18,550 — 18,429 — — 36,979 General and administrative expense 17,429 3 1,712 — — 19,144 Equipment lease expense 6,882 — 150 — — 7,032 Non-cash employee stock ownership plan compensation charge 5,256 — — — — 5,256 Goodwill impairment — — 29,316 — — 29,316 Loss on disposal of assets 1,545 — 13,372 — — 14,917 Operating loss (8,244 ) (3 ) (37,687 ) (2,370 ) 804 (47,500 ) — — Interest expense (18,521 ) — (10,688 ) (441 ) (108 ) (29,758 ) Other income (expense), net (122 ) — — 696 (696 ) (122 ) Loss before income taxes (26,887 ) (3 ) (48,375 ) (2,115 ) — (77,380 ) Income tax expense (benefit) 168 — (1,012 ) — — (844 ) Equity in earnings (loss) of subsidiaries (49,481 ) — — — 49,481 — Net loss (76,536 ) (3 ) (47,363 ) (2,115 ) 49,481 (76,536 ) Other comprehensive income 8,610 — — — — 8,610 Comprehensive loss $ (67,926 ) $ (3 ) $ (47,363 ) $ (2,115 ) $ 49,481 $ (67,926 ) FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the three months ended October 31, 2014 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 394,361 $ — $ — $ — $ — $ 394,361 Midstream operations — — 7,916 — — 7,916 Other 18,048 — 23,030 — — 41,078 Total revenues 412,409 — 30,946 — — 443,355 Costs and expenses: Cost of sales - propane and other gas liquids sales 264,814 — — — — 264,814 Cost of sales - midstream operations — — 1,968 — — 1,968 Cost of sales - other 2,051 — 19,841 — — 21,892 Operating expense 101,188 — 4,760 1,557 (1,074 ) 106,431 Depreciation and amortization expense 19,154 — 4,155 — — 23,309 General and administrative expense 23,392 3 — — — 23,395 Equipment lease expense 5,527 — 5 — — 5,532 Non-cash employee stock ownership plan compensation charge 4,374 — — — — 4,374 Loss on disposal of assets 961 — — — — 961 Operating loss (9,052 ) (3 ) 217 (1,557 ) 1,074 (9,321 ) — — Interest expense (18,695 ) — (1,183 ) (504 ) 504 (19,878 ) Other income (expense), net (449 ) — — 1,578 (1,578 ) (449 ) Loss before income taxes (28,196 ) (3 ) (966 ) (483 ) — (29,648 ) Income tax expense (benefit) 49 — (560 ) — — (511 ) Equity in earnings (loss) of subsidiaries (892 ) — — — 892 — Net loss (29,137 ) (3 ) (406 ) (483 ) 892 (29,137 ) Other comprehensive loss (15,027 ) — — — — (15,027 ) Comprehensive loss $ (44,164 ) $ (3 ) $ (406 ) $ (483 ) $ 892 $ (44,164 ) FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the three months ended October 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 12,807 $ (3 ) $ 22,041 $ 5,801 $ 2,000 $ 42,646 Cash flows from investing activities: Business acquisitions, net of cash acquired — — — — — — Capital expenditures (14,674 ) — (10,933 ) — — (25,607 ) Proceeds from sale of assets 1,013 — 2,562 — — 3,575 Cash collected for purchase of interest in accounts receivable — — — 186,280 (186,280 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (184,280 ) 184,280 — Net changes in advances with consolidated entities 16,908 — — — (16,908 ) — Other (14 ) — — — — (14 ) Net cash provided by (used in) investing activities 3,233 — (8,371 ) 2,000 (18,908 ) (22,046 ) Cash flows from financing activities: Distributions (52,493 ) — — — — (52,493 ) Contributions from Partners 30 — — — — 30 Proceeds from increase in long-term debt 21,321 — — — — 21,321 Reductions in long-term debt (4,380 ) — — — — (4,380 ) Net additions to short-term borrowings 20,072 — — — — 20,072 Net reductions in to collateralized short-term borrowings — — — (2,000 ) — (2,000 ) Net changes in advances with parent — 3 (11,112 ) (5,799 ) 16,908 — Cash paid for financing costs (142 ) — — — — (142 ) Net cash provided by (used in) financing activities (15,592 ) 3 (11,112 ) (7,799 ) 16,908 (17,592 ) Effect of exchange rate changes on cash 2 — — (2 ) — — Increase in cash and cash equivalents 450 — 2,558 — — 3,008 Cash and cash equivalents - beginning of year 5,579 1 20 — — 5,600 Cash and cash equivalents - end of year $ 6,029 $ 1 $ 2,578 $ — $ — $ 8,608 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the three months ended October 31, 2014 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 4,519 $ (3 ) $ (19,475 ) $ 9,603 $ (14,000 ) $ (19,356 ) Cash flows from investing activities: Business acquisitions, net of cash acquired (68,655 ) — — — — (68,655 ) Capital expenditures (16,809 ) — (753 ) — — (17,562 ) Proceeds from sale of assets 1,417 — — — — 1,417 Cash collected for purchase of interest in accounts receivable — — — 275,704 (275,704 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (289,704 ) 289,704 — Net changes in advances with consolidated entities (10,387 ) — — — 10,387 — Other — — — — — — Net cash used in investing activities (94,434 ) — (753 ) (14,000 ) 24,387 (84,800 ) Cash flows from financing activities: Distributions (42,200 ) — — — — (42,200 ) Contributions from Partners 42,655 — — — — 42,655 Proceeds from increase in long-term debt 83,044 — — — — 83,044 Reductions in long-term debt (44,388 ) — — — — (44,388 ) Net additions to short-term borrowings 52,711 — — — — 52,711 Net additions to collateralized short-term borrowings — — — 14,000 — 14,000 Net changes in advances with parent — 3 19,985 (9,601 ) (10,387 ) — Cash paid for financing costs (182 ) — — — — (182 ) Net cash provided by financing activities 91,640 3 19,985 4,399 (10,387 ) 105,640 Effect of exchange rate changes on cash — — — (2 ) — (2 ) Increase (decrease) in cash and cash equivalents 1,725 — (243 ) — — 1,482 Cash and cash equivalents - beginning of year 7,798 1 484 — — 8,283 Cash and cash equivalents - end of year $ 9,523 $ 1 $ 241 $ — $ — $ 9,765 | Guarantor financial information The $500.0 million aggregate principal amount of unregistered 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are, and any notes registered under the Securities Act of 1933 and issued in exchange for such unregistered notes will be, fully and unconditionally and joint and severally guaranteed by all of Ferrellgas, L.P.’s 100% owned subsidiaries except: i) Ferrellgas Finance Corp; ii) certain special purposes subsidiaries formed for use in connection with our accounts receivable securitization; and iii) foreign subsidiaries. Guarantees of these senior notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the assets of a guarantor or (b) all of the capital stock of such guarantor (including by way of merger or consolidation), in each case, to a person that is not Ferrellgas, L.P. or a restricted subsidiary of Ferrellgas, L.P., (ii) if Ferrellgas, L.P. designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon defeasance or discharge of the notes, (iv) upon the liquidation or dissolution of such guarantor, or (v) at such time as such guarantor ceases to guarantee any other indebtedness of either of the issuers and any other guarantor. The guarantor financial information discloses in separate columns the financial position, results of operations and the cash flows of Ferrellgas, L.P. (Parent), Ferrellgas Finance Corp. (co-issuer), Ferrellgas L.P.’s guarantor subsidiaries on a combined basis, and Ferrellgas L.P.’s non-guarantor subsidiaries on a combined basis. The dates and the periods presented in the guarantor financial information are consistent with the periods presented in Ferrellgas, L.P.’s consolidated financial statements. FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of January 31, 2016 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 10,564 $ 1 $ 1,146 $ — $ — $ 11,711 Accounts and notes receivable (3,564 ) — 81,603 186,343 — 264,382 Intercompany receivables 43,980 — — — (43,980 ) — Inventories 71,992 — 20,496 — — 92,488 Prepaid expenses and other current assets 38,572 — 18,554 2 — 57,128 Total current assets 161,544 1 121,799 186,345 (43,980 ) 425,709 Property, plant and equipment, net 563,096 — 403,899 — — 966,995 Goodwill 245,429 — 200,230 — — 445,659 Intangible assets, net 148,730 — 416,234 — — 564,964 Intercompany receivables 450,000 — — — (450,000 ) — Investments in consolidated subsidiaries 648,875 — — — (648,875 ) — Assets held for sale — — 3,120 — — 3,120 Other assets, net 62,242 — 10,743 243 — 73,228 Total assets $ 2,279,916 $ 1 $ 1,156,025 $ 186,588 $ (1,142,855 ) $ 2,479,675 LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable $ 68,773 $ — $ 67,327 $ — $ — $ 136,100 Short-term borrowings 86,200 — — — — 86,200 Collateralized note payable — — — 119,000 — 119,000 Intercompany payables — — 32,903 11,077 (43,980 ) — Other current liabilities 140,797 — 7,885 246 — 148,928 Total current liabilities 295,770 — 108,115 130,323 (43,980 ) 490,228 Long-term debt 1,711,805 — 450,985 — (450,000 ) 1,712,790 Other liabilities 36,019 — 4,091 225 — 40,335 Contingencies and commitments Partners' capital: Partners' equity 269,967 1 593,806 55,715 (649,522 ) 269,967 Accumulated other comprehensive income (loss) (33,645 ) — (972 ) 325 647 (33,645 ) Total partners' capital 236,322 1 592,834 56,040 (648,875 ) 236,322 Total liabilities and partners' capital $ 2,279,916 $ 1 $ 1,156,025 $ 186,588 $ (1,142,855 ) $ 2,479,675 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of July 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 5,579 $ 1 $ 20 $ — $ — $ 5,600 Accounts and notes receivable (2,858 ) — 80,657 119,119 — 196,918 Intercompany receivables 39,238 — — — (39,238 ) — Inventories 78,132 — 18,622 — — 96,754 Prepaid expenses and other current assets 42,069 — 22,140 2 — 64,211 Total current assets 162,160 1 121,439 119,121 (39,238 ) 363,483 Property, plant and equipment, net 569,640 — 395,577 — — 965,217 Goodwill 246,116 — 232,631 — — 478,747 Intangible assets, net 155,659 — 424,384 — — 580,043 Intercompany receivables 450,000 — — — (450,000 ) — Investments in consolidated subsidiaries 661,081 — — — (661,081 ) — Other assets, net 62,019 — 10,087 366 — 72,472 Total assets $ 2,306,675 $ 1 $ 1,184,118 $ 119,487 $ (1,150,319 ) $ 2,459,962 LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable $ 40,210 $ — $ 43,764 $ — $ — $ 83,974 Short-term borrowings 75,319 — — — — 75,319 Collateralized note payable — — — 70,000 — 70,000 Intercompany payables — — 30,289 8,949 (39,238 ) — Other current liabilities 142,137 — 33,903 136 — 176,176 Total current liabilities 257,666 — 107,956 79,085 (39,238 ) 405,469 Long-term debt 1,621,439 — 450,953 — (450,000 ) 1,622,392 Other liabilities 37,444 — 4,306 225 — 41,975 Contingencies and commitments Partners' capital: Partners' equity 429,444 1 621,550 39,852 (661,403 ) 429,444 Accumulated other comprehensive income (loss) (39,318 ) — (647 ) 325 322 (39,318 ) Total partners' capital 390,126 1 620,903 40,177 (661,081 ) 390,126 Total liabilities and partners' capital $ 2,306,675 $ 1 $ 1,184,118 $ 119,487 $ (1,150,319 ) $ 2,459,962 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the three months ended January 31, 2016 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 376,856 $ — $ — $ — $ — $ 376,856 Midstream operations — — 188,333 — — 188,333 Other 21,571 — 62,478 — — 84,049 Total revenues 398,427 — 250,811 — — 649,238 Costs and expenses: Cost of sales - propane and other gas liquids sales 174,832 — (3 ) — — 174,829 Cost of sales - midstream operations — — 148,443 — — 148,443 Cost of sales - other 2,257 — 53,517 — — 55,774 Operating expense 101,688 — 14,722 235 (648 ) 115,997 Depreciation and amortization expense 18,805 — 18,562 — — 37,367 General and administrative expense 8,306 — 1,368 — — 9,674 Equipment lease expense 7,161 — 117 — — 7,278 Non-cash employee stock ownership plan compensation charge 3,141 — — — — 3,141 Loss on disposal of assets 2,100 — 424 — — 2,524 Operating income (loss) 80,137 — 13,661 (235 ) 648 94,211 Interest expense (19,630 ) — (10,632 ) (692 ) 253 (30,701 ) Other income (expense), net (298 ) — — 901 (901 ) (298 ) Earnings (loss) before income taxes 60,209 — 3,029 (26 ) — 63,212 Income tax expense 110 — 915 — — 1,025 Equity in earnings (loss) of subsidiaries 2,088 — — — (2,088 ) — Net earnings (loss) 62,187 — 2,114 (26 ) (2,088 ) 62,187 Other comprehensive loss (2,937 ) — — — — (2,937 ) Comprehensive income (loss) $ 59,250 $ — $ 2,114 $ (26 ) $ (2,088 ) $ 59,250 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the three months ended January 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 560,867 $ — $ — $ — $ — $ 560,867 Midstream operations — — 7,153 — — 7,153 Other 22,539 — 75,414 — — 97,953 Total revenues 583,406 — 82,567 — — 665,973 Costs and expenses: Cost of sales - propane and other gas liquids sales 330,692 — — — — 330,692 Cost of sales - midstream operations — — 2,219 — — 2,219 Cost of sales - other 1,947 — 66,124 — — 68,071 Operating expense 104,841 — 2,565 1,483 (1,675 ) 107,214 Depreciation and amortization expense 19,700 — 4,243 — — 23,943 General and administrative expense 10,872 — — — — 10,872 Equipment lease expense 5,788 — 7 — — 5,795 Non-cash employee stock ownership plan compensation charge 3,788 — — — — 3,788 Loss on disposal of assets 1,414 — — — — 1,414 Operating income (loss) 104,364 — 7,409 (1,483 ) 1,675 111,965 Interest expense (18,553 ) — (1,200 ) (629 ) 41 (20,341 ) Other income (expense), net (178 ) — — 1,716 (1,716 ) (178 ) Earnings (loss) before income taxes 85,633 — 6,209 (396 ) — 91,446 Income tax expense 114 — 923 — — 1,037 Equity in earnings (loss) of subsidiaries 4,890 — — — (4,890 ) — Net earnings (loss) 90,409 — 5,286 (396 ) (4,890 ) 90,409 Other comprehensive loss (37,568 ) — — — — (37,568 ) Comprehensive income (loss) $ 52,841 $ — $ 5,286 $ (396 ) $ (4,890 ) $ 52,841 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the six months ended January 31, 2016 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 622,157 $ — $ — $ — $ — $ 622,157 Midstream operations — — 382,003 — — 382,003 Other 38,948 — 77,276 — — 116,224 Total revenues 661,105 — 459,279 — — 1,120,384 Costs and expenses: Cost of sales - propane and other gas liquids sales 296,580 — — — — 296,580 Cost of sales - midstream operations — — 302,047 — — 302,047 Cost of sales - other 4,795 — 65,427 — — 70,222 Operating expense 198,662 — 32,381 2,605 (1,452 ) 232,196 Depreciation and amortization expense 37,355 — 36,991 — — 74,346 General and administrative expense 25,735 3 3,080 — — 28,818 Equipment lease expense 14,043 — 267 — — 14,310 Non-cash employee stock ownership plan compensation charge 8,397 — — — — 8,397 Goodwill impairment — — 29,316 — — 29,316 Loss on disposal of assets 3,645 — 13,796 — — 17,441 Operating income (loss) 71,893 (3 ) (24,026 ) (2,605 ) 1,452 46,711 Interest expense (38,151 ) — (21,320 ) (1,133 ) 145 (60,459 ) Other income (expense), net (420 ) — — 1,597 (1,597 ) (420 ) Earnings (loss) before income taxes 33,322 (3 ) (45,346 ) (2,141 ) — (14,168 ) Income tax expense (benefit) 278 — (97 ) — — 181 Equity in earnings (loss) of subsidiaries (47,393 ) — — — 47,393 — Net loss (14,349 ) (3 ) (45,249 ) (2,141 ) 47,393 (14,349 ) Other comprehensive income 5,673 — — — — 5,673 Comprehensive loss $ (8,676 ) $ (3 ) $ (45,249 ) $ (2,141 ) $ 47,393 $ (8,676 ) FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the six months ended January 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 955,228 $ — $ — $ — $ — $ 955,228 Midstream operations — — 15,069 — — 15,069 Other 40,587 — 98,444 — — 139,031 Total revenues 995,815 — 113,513 — — 1,109,328 Costs and expenses: Cost of sales - propane and other gas liquids sales 595,506 — — — — 595,506 Cost of sales - midstream operations — — 4,187 — — 4,187 Cost of sales - other 3,998 — 85,965 — — 89,963 Operating expense 206,029 — 7,325 3,040 (2,749 ) 213,645 Depreciation and amortization expense 38,854 — 8,398 — — 47,252 General and administrative expense 34,264 3 — — — 34,267 Equipment lease expense 11,315 — 12 — — 11,327 Non-cash employee stock ownership plan compensation charge 8,162 — — — — 8,162 Loss on disposal of assets 2,375 — — — — 2,375 Operating income (loss) 95,312 (3 ) 7,626 (3,040 ) 2,749 102,644 Interest expense (37,248 ) — (2,383 ) (1,133 ) 545 (40,219 ) Other income (expense), net (627 ) — — 3,294 (3,294 ) (627 ) Earnings (loss) before income taxes 57,437 (3 ) 5,243 (879 ) — 61,798 Income tax expense 163 — 363 — — 526 Equity in earnings (loss) of subsidiaries 3,998 — — — (3,998 ) — Net earnings (loss) 61,272 (3 ) 4,880 (879 ) (3,998 ) 61,272 Other comprehensive loss (52,595 ) — — — — (52,595 ) Comprehensive income (loss) $ 8,677 $ (3 ) $ 4,880 $ (879 ) $ (3,998 ) $ 8,677 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the six months ended January 31, 2016 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 141,275 $ (3 ) $ (8,728 ) $ (19,083 ) $ (49,000 ) $ 64,461 Cash flows from investing activities: Business acquisitions, net of cash acquired (12,718 ) — — — — (12,718 ) Capital expenditures (26,102 ) — (13,359 ) — — (39,461 ) Proceeds from sale of assets 6,441 — — — — 6,441 Cash collected for purchase of interest in accounts receivable — — — 453,652 (453,652 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (502,652 ) 502,652 — Net changes in advances with consolidated entities (42,301 ) — — — 42,301 — Other (28 ) — — — — (28 ) Net cash used in investing activities (74,708 ) — (13,359 ) (49,000 ) 91,301 (45,766 ) Cash flows from financing activities: Distributions (158,907 ) — — — — (158,907 ) Contributions from Partners 30 — — — — 30 Proceeds from increase in long-term debt 92,959 — — — — 92,959 Reductions in long-term debt (6,149 ) — — — — (6,149 ) Net additions to short-term borrowings 10,881 — — — — 10,881 Net additions to collateralized short-term borrowings — — — 49,000 — 49,000 Net changes in advances with parent — 3 23,213 19,085 (42,301 ) — Cash paid for financing costs (398 ) — — — — (398 ) Net cash provided by (used in) financing activities (61,584 ) 3 23,213 68,085 (42,301 ) (12,584 ) Effect of exchange rate changes on cash 2 — — (2 ) — — Increase in cash and cash equivalents 4,985 — 1,126 — — 6,111 Cash and cash equivalents - beginning of year 5,579 1 20 — — 5,600 Cash and cash equivalents - end of year $ 10,564 $ 1 $ 1,146 $ — $ — $ 11,711 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the six months ended January 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 161,214 $ (3 ) $ (43,566 ) $ (12,034 ) $ (84,000 ) $ 21,611 Cash flows from investing activities: Business acquisitions, net of cash acquired (68,655 ) — — — — (68,655 ) Capital expenditures (24,984 ) — (4,429 ) — — (29,413 ) Proceeds from sale of assets 2,729 — — — — 2,729 Cash collected for purchase of interest in accounts receivable — — — 666,521 (666,521 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (750,521 ) 750,521 — Net changes in advances with consolidated entities (59,576 ) — — — 59,576 — Other — — — — — — Net cash used in investing activities (150,486 ) — (4,429 ) (84,000 ) 143,576 (95,339 ) Cash flows from financing activities: Distributions (92,332 ) — — — — (92,332 ) Contributions from Partners 42,655 — — — — 42,655 Proceeds from increase in long-term debt 90,643 — — — — 90,643 Reductions in long-term debt (45,063 ) — — — — (45,063 ) Net additions to short-term borrowings (2,088 ) — — — — (2,088 ) Net additions to collateralized short-term borrowings — — — 84,000 — 84,000 Net changes in advances with parent — 3 47,537 12,036 (59,576 ) — Cash paid for financing costs (204 ) — — — — (204 ) Net cash provided by (used in) financing activities (6,389 ) 3 47,537 96,036 (59,576 ) 77,611 Effect of exchange rate changes on cash — — — (2 ) — (2 ) Increase (decrease) in cash and cash equivalents 4,339 — (458 ) — — 3,881 Cash and cash equivalents - beginning of year 7,798 1 484 — — 8,283 Cash and cash equivalents - end of year $ 12,137 $ 1 $ 26 $ — $ — $ 12,164 | Guarantor financial information The $500.0 million aggregate principal amount of unregistered 6.75% senior notes due 2023 co-issued by Ferrellgas, L.P. and Ferrellgas Finance Corp. are, and any notes registered under the Securities Act of 1933 and issued in exchange for such unregistered notes will be, fully and unconditionally and joint and severally guaranteed by all of Ferrellgas, L.P.’s 100% owned subsidiaries except: i) Ferrellgas Finance Corp; ii) certain special purposes subsidiaries formed for use in connection with our accounts receivable securitization; and iii) foreign subsidiaries. Guarantees of these senior notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the assets of a guarantor or (b) all of the capital stock of such guarantor (including by way of merger or consolidation), in each case, to a person that is not Ferrellgas, L.P. or a restricted subsidiary of Ferrellgas, L.P., (ii) if Ferrellgas, L.P. designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon defeasance or discharge of the notes, (iv) upon the liquidation or dissolution of such guarantor, or (v) at such time as such guarantor ceases to guarantee any other indebtedness of either of the issuers and any other guarantor. The guarantor financial information discloses in separate columns the financial position, results of operations and the cash flows of Ferrellgas, L.P. (Parent), Ferrellgas Finance Corp. (co-issuer), Ferrellgas L.P.’s guarantor subsidiaries on a combined basis, and Ferrellgas L.P.’s non-guarantor subsidiaries on a combined basis. The dates and the periods presented in the guarantor financial information are consistent with the periods presented in Ferrellgas, L.P.’s consolidated financial statements. FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of July 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 5,579 $ 1 $ 20 $ — $ — $ 5,600 Accounts and notes receivable (2,858 ) — 80,657 119,119 — 196,918 Intercompany receivables 39,238 — — — (39,238 ) — Inventories 78,132 — 18,622 — — 96,754 Prepaid expenses and other current assets 42,069 — 22,140 2 — 64,211 Total current assets 162,160 1 121,439 119,121 (39,238 ) 363,483 Property, plant and equipment, net 569,640 — 395,577 — — 965,217 Goodwill 246,116 — 232,631 — — 478,747 Intangible assets, net 155,659 — 424,384 — — 580,043 Intercompany receivables 450,000 — — — (450,000 ) — Investments in consolidated subsidiaries 661,081 — — — (661,081 ) — Other assets, net 62,019 — 10,087 366 — 72,472 Total assets $ 2,306,675 $ 1 $ 1,184,118 $ 119,487 $ (1,150,319 ) $ 2,459,962 LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable $ 40,210 $ — $ 43,764 $ — $ — $ 83,974 Short-term borrowings 75,319 — — — — 75,319 Collateralized note payable — — — 70,000 — 70,000 Intercompany payables — — 30,289 8,949 (39,238 ) — Other current liabilities 142,137 — 33,903 136 — 176,176 Total current liabilities 257,666 — 107,956 79,085 (39,238 ) 405,469 Long-term debt 1,621,439 — 450,953 — (450,000 ) 1,622,392 Other liabilities 37,444 — 4,306 225 — 41,975 Contingencies and commitments Partners' capital: Partners' equity 429,444 1 621,550 39,852 (661,403 ) 429,444 Accumulated other comprehensive income (loss) (39,318 ) — (647 ) 325 322 (39,318 ) Total partners' capital 390,126 1 620,903 40,177 (661,081 ) 390,126 Total liabilities and partners' capital $ 2,306,675 $ 1 $ 1,184,118 $ 119,487 $ (1,150,319 ) $ 2,459,962 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) As of July 31, 2014 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 7,798 $ 1 $ 484 $ — $ — $ 8,283 Accounts and notes receivable (2,810 ) — 27,165 154,247 — 178,602 Intercompany receivables 45,754 — — — (45,754 ) — Inventories 132,410 — 13,559 — — 145,969 Prepaid expenses and other current assets 22,510 — 9,569 — — 32,079 Total current assets 205,662 1 50,777 154,247 (45,754 ) 364,933 Property, plant and equipment, net 582,333 — 29,454 — — 611,787 Goodwill 246,249 — 26,961 — — 273,210 Intangible assets, net 166,251 — 109,920 — — 276,171 Investments in consolidated subsidiaries 219,821 — — — (219,821 ) — Other assets, net 42,689 — 426 617 — 43,732 Total assets $ 1,463,005 $ 1 $ 217,538 $ 154,864 $ (265,575 ) $ 1,569,833 LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable $ 69,237 $ — $ 123 $ — $ — $ 69,360 Short-term borrowings 69,519 — — — — 69,519 Collateralized note payable — — — 91,000 — 91,000 Intercompany payables — — 26,155 19,599 (45,754 ) — Other current liabilities 118,281 — 4,716 156 — 123,153 Total current liabilities 257,037 — 30,994 110,755 (45,754 ) 353,032 Long-term debt 1,109,336 — 878 — — 1,110,214 Other liabilities 26,707 — 9,730 225 — 36,662 Contingencies and commitments Partners' capital: Partners' equity 63,667 1 176,581 43,559 (220,141 ) 63,667 Accumulated other comprehensive income (loss) 6,258 — (645 ) 325 320 6,258 Total partners' capital 69,925 1 175,936 43,884 (219,821 ) 69,925 Total liabilities and partners' capital $ 1,463,005 $ 1 $ 217,538 $ 154,864 $ (265,575 ) $ 1,569,833 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the year ended July 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 1,657,016 $ — $ — $ — $ — $ 1,657,016 Midstream operations — — 107,189 — — 107,189 Other 73,704 — 186,481 — — 260,185 Total revenues 1,730,720 — 293,670 — — 2,024,390 Costs and expenses: Cost of sales - propane and other gas liquids sales 977,224 — — — — 977,224 Cost of sales - midstream operations — — 76,590 — — 76,590 Cost of sales - other 7,649 — 163,048 — — 170,697 Operating expense 413,112 — 25,189 5,206 (6,154 ) 437,353 Depreciation and amortization expense 75,834 — 22,745 — — 98,579 General and administrative expense 76,250 4 984 — — 77,238 Equipment lease expense 24,213 — 60 — — 24,273 Non-cash employee stock ownership plan compensation charge 24,713 — — — — 24,713 Loss on disposal of assets 7,095 — 4 — — 7,099 Operating income (loss) 124,630 (4 ) 5,050 (5,206 ) 6,154 130,624 — — Interest expense (72,765 ) — (8,499 ) (2,622 ) (341 ) (84,227 ) Other income (expense), net (354 ) — — 5,813 (5,813 ) (354 ) Earnings (loss) before income taxes 51,511 (4 ) (3,449 ) (2,015 ) — 46,043 Income tax expense (benefit) 292 — (676 ) — — (384 ) Equity in earnings (loss) of subsidiaries (4,792 ) — — — 4,792 — Net earnings (loss) 46,427 (4 ) (2,773 ) (2,015 ) 4,792 46,427 Other comprehensive income (loss) (45,576 ) — 2 (4 ) 2 (45,576 ) Comprehensive income (loss) $ 851 $ (4 ) $ (2,771 ) $ (2,019 ) $ 4,794 $ 851 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the year ended July 31, 2014 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 2,147,343 $ — $ — $ — $ — $ 2,147,343 Midstream operations — — 7,435 — — 7,435 Other 77,460 — 173,622 — — 251,082 Total revenues 2,224,803 — 181,057 — — 2,405,860 Costs and expenses: Cost of sales - propane and other gas liquids sales 1,456,388 — — — — 1,456,388 Cost of sales - midstream operations — — 1,970 — — 1,970 Cost of sales - other 7,640 — 148,542 — — 156,182 Operating expense 429,089 — 20,919 7,057 (5,514 ) 451,551 Depreciation and amortization expense 79,255 — 4,947 — — 84,202 General and administrative expense 64,824 5 327 — — 65,156 Equipment lease expense 17,745 — — — — 17,745 Non-cash employee stock ownership plan compensation charge 21,789 — — — — 21,789 Loss on disposal of assets 6,492 — (6 ) — — 6,486 Operating income (loss) 141,581 (5 ) 4,358 (7,057 ) 5,514 144,391 — — Interest expense (64,508 ) — (4,839 ) (2,824 ) 1,839 (70,332 ) Loss on extinguishment of debt (21,202 ) — — — — (21,202 ) Other income (expense), net (479 ) — — 7,353 (7,353 ) (479 ) Earnings (loss) before income taxes 55,392 (5 ) (481 ) (2,528 ) — 52,378 Income tax expense 703 — 1,768 — — 2,471 Equity in earnings (loss) of subsidiaries (4,782 ) — — — 4,782 — Net earnings (loss) 49,907 (5 ) (2,249 ) (2,528 ) 4,782 49,907 Other comprehensive income (loss) 4,530 — (145 ) — 145 4,530 Comprehensive income (loss) $ 54,437 $ (5 ) $ (2,394 ) $ (2,528 ) $ 4,927 $ 54,437 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS (in thousands) For the year ended July 31, 2013 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Propane and other gas liquids sales $ 1,739,267 $ — $ — $ — $ — $ 1,739,267 Other 81,816 — 154,384 — — 236,200 Total revenues 1,821,083 — 154,384 — — 1,975,467 Costs and expenses: Cost of sales - propane and other gas liquids sales 1,092,257 — 4 — — 1,092,261 Cost of sales - other 8,450 — 136,006 — — 144,456 Operating expense 405,158 — 7,198 5,456 (5,382 ) 412,430 Depreciation and amortization expense 80,427 — 2,917 — — 83,344 General and administrative expense 52,833 5 343 — — 53,181 Equipment lease expense 15,983 — — — — 15,983 Non-cash employee stock ownership plan compensation charge 15,769 — — — — 15,769 Loss on disposal of assets 10,405 — 16 — — 10,421 Operating income (loss) 139,801 (5 ) 7,900 (5,456 ) 5,382 147,622 — — Interest expense (65,469 ) — (5,073 ) (2,625 ) 193 (72,974 ) Other income (expense), net 565 — — 5,575 (5,575 ) 565 Earnings (loss) before income taxes 74,897 (5 ) 2,827 (2,506 ) — 75,213 Income tax expense 285 — 1,553 — — 1,838 Equity in earnings (loss) of subsidiaries (1,237 ) — — — 1,237 — Net earnings (loss) 73,375 (5 ) 1,274 (2,506 ) 1,237 73,375 Other comprehensive income (loss) 15,008 — (145 ) (2 ) 147 15,008 Comprehensive income (loss) $ 88,383 $ (5 ) $ 1,129 $ (2,508 ) $ 1,384 $ 88,383 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the year ended July 31, 2015 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 197,740 $ (4 ) $ (12,875 ) $ 10,627 $ 21,000 $ 216,488 Cash flows from investing activities: Business acquisitions, net of cash acquired (71,750 ) — (7,177 ) — — (78,927 ) Capital expenditures (56,955 ) — (15,526 ) — — (72,481 ) Proceeds from sale of assets 5,905 — — — — 5,905 Cash collected for purchase of interest in accounts receivable — — — 1,299,325 (1,299,325 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (1,278,325 ) 1,278,325 — Net changes in advances with consolidated entities (24,493 ) — — — 24,493 — Other (14 ) — — — — (14 ) Net cash provided by (used in) investing activities (147,307 ) — (22,703 ) 21,000 3,493 (145,517 ) Cash flows from financing activities: Distributions (607,875 ) — — — — (607,875 ) Contributions from Partners 51,047 — — — — 51,047 Proceeds from increase in long-term debt 628,134 — — — — 628,134 Reductions in long-term debt (119,457 ) — — — — (119,457 ) Net additions short-term borrowings 5,800 — — — — 5,800 Net reductions in collateralized short-term borrowings — — — (21,000 ) — (21,000 ) Net changes in advances with parent — 4 35,114 (10,625 ) (24,493 ) — Cash paid for financing costs (10,301 ) — — — — (10,301 ) Net cash provided by (used in) financing activities (52,652 ) 4 35,114 (31,625 ) (24,493 ) (73,652 ) Effect of exchange rate changes on cash — — — (2 ) — (2 ) Decrease in cash and cash equivalents (2,219 ) — (464 ) — — (2,683 ) Cash and cash equivalents - beginning of year 7,798 1 484 — — 8,283 Cash and cash equivalents - end of year $ 5,579 $ 1 $ 20 $ — $ — $ 5,600 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the year ended July 31, 2014 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 188,218 $ (5 ) $ (17,339 ) $ (20,424 ) $ (9,000 ) $ 141,450 Cash flows from investing activities: Business acquisitions, net of cash acquired (33,569 ) — (128,450 ) — — (162,019 ) Capital expenditures (49,509 ) — (3,063 ) — — (52,572 ) Proceeds from sale of assets 4,524 — — — — 4,524 Cash collected for purchase of interest in accounts receivable — — — 1,578,597 (1,578,597 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (1,587,597 ) 1,587,597 — Net changes in advances with consolidated entities (169,708 ) — — — 169,708 — Other (23 ) — — — — (23 ) Net cash used in investing activities (248,285 ) — (131,513 ) (9,000 ) 178,708 (210,090 ) Cash flows from financing activities: Distributions (178,426 ) — — — — (178,426 ) Contributions from Partners 51,626 — — — — 51,626 Proceeds from increase in long-term debt 750,351 — — — — 750,351 Reductions in long-term debt (569,841 ) — — — — (569,841 ) Net additions to short-term borrowings 19,465 — — — — 19,465 Net additions to collateralized short-term borrowings — — — 9,000 — 9,000 Net changes in advances with parent — 5 149,279 20,424 (169,708 ) — Cash paid for financing costs (11,414 ) — — — — (11,414 ) Net cash provided by (used in) financing activities 61,761 5 149,279 29,424 (169,708 ) 70,761 Effect of exchange rate changes on cash (145 ) — — — — (145 ) Increase in cash and cash equivalents 1,549 — 427 — — 1,976 Cash and cash equivalents - beginning of year 6,249 1 57 — — 6,307 Cash and cash equivalents - end of year $ 7,798 $ 1 $ 484 $ — $ — $ 8,283 FERRELLGAS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) For the year ended July 31, 2013 Ferrellgas, L.P. (Parent and Co-Issuer) Ferrellgas Finance Corp. (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 231,283 $ (5 ) $ 6,304 $ (3,637 ) $ (8,000 ) $ 225,945 Cash flows from investing activities: Business acquisitions, net of cash acquired (13,634 ) — (23,552 ) — — (37,186 ) Capital expenditures (39,904 ) — (1,006 ) — — (40,910 ) Proceeds from sale of assets 9,980 — — — — 9,980 Cash collected for purchase of interest in accounts receivable — — — 1,297,273 (1,297,273 ) — Cash remitted to Ferrellgas, L.P for accounts receivable — — — (1,305,273 ) 1,305,273 — Net changes in advances with consolidated entities (21,942 ) — — — 21,942 — Other — — — — — — Net cash used in investing activities (65,500 ) — (24,558 ) (8,000 ) 29,942 (68,116 ) Cash flows from financing activities: Distributions (177,170 ) — — — — (177,170 ) Contributions from Partners 809 — — — — 809 Proceeds from increase in long-term debt 58,356 — — — — 58,356 Reductions in long-term debt (3,912 ) — — — — (3,912 ) Net reductions in short-term borrowings (45,676 ) — — — — (45,676 ) Net additions to collateralized short-term borrowings — — — 8,000 — 8,000 Net changes in advances with parent — 5 18,300 3,637 (21,942 ) — Cash paid for financing costs — — — — — — Net cash provided by (used in) financing activities (167,593 ) 5 18,300 11,637 (21,942 ) (159,593 ) Effect of exchange rate changes on cash (147 ) — — — — (147 ) Increase (decrease) in cash and cash equivalents (1,957 ) — 46 — — (1,911 ) Cash and cash equivalents - beginning of year 8,206 1 11 — — 8,218 Cash and cash equivalents - end of year $ 6,249 $ 1 $ 57 $ — $ — $ 6,307 |
