Supplemental financial statement information | E. Supplemental financial statement information Inventories Inventories consist of the following: July 31, 2022 July 31, 2021 Propane gas and related products $ 96,679 $ 75,848 Appliances, parts and supplies, and other 18,508 12,531 Inventories $ 115,187 $ 88,379 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 July 31, 2022, Ferrellgas had committed, for supply procurement purposes, to take delivery of approximately 5.3 million gallons of propane at fixed prices. Property, plant and equipment, net Property, plant and equipment, net consist of the following: Estimated useful lives July 31, 2022 July 31, 2021 Land Indefinite $ 41,814 $ 40,346 Land improvements 2-20 15,560 15,128 Buildings and improvements 20 88,970 88,620 Vehicles, including transport trailers 8-20 117,746 110,517 Bulk equipment and district facilities 5-30 115,927 110,983 Tanks, cylinders and customer equipment 2-30 825,361 786,912 Computer and office equipment 2-5 104,364 107,272 Construction in progress n/a 7,694 8,478 1,317,436 1,268,256 Less: accumulated depreciation 714,288 686,138 Property, plant and equipment, net $ 603,148 $ 582,118 Depreciation expense totaled $71.0 million, $64.1 million and $64.5 million for fiscal 2022, 2021 and 2020, respectively. Prepaid expenses and other current assets Ferrellgas Partners Prepaid expenses and other current assets consist of the following: July 31, 2022 July 31, 2021 Broker margin deposit assets $ 12,338 $ 21,068 Other 18,426 18,024 Prepaid expenses and other current assets $ 30,764 $ 39,092 The operating partnership Prepaid expenses and other current assets consist of the following: July 31, 2022 July 31, 2021 Broker margin deposit assets $ 12,338 $ 21,068 Other 18,405 18,005 Prepaid expenses and other current assets $ 30,743 $ 39,073 Other assets, net Other assets, net consist of the following: July 31, 2022 July 31, 2021 Notes receivable, less current portion and allowance $ 415 $ 19,765 Finance lease right-of-use assets 31,421 34,858 Other 47,408 38,605 Other assets, net $ 79,244 $ 93,228 Other current liabilities Ferrellgas Partners Other current liabilities consist of the following: July 31, 2022 July 31, 2021 Accrued interest $ 29,703 $ 29,095 Customer deposits and advances 33,189 35,734 Accrued payroll 29,717 28,143 Accrued insurance 16,114 11,104 Broker margin deposit liability 32,805 79,178 Accrued senior preferred units distributions 17,466 16,013 Other 59,616 46,733 Other current liabilities $ 218,610 $ 246,000 The operating partnership Other current liabilities consist of the following: July 31, 2022 July 31, 2021 Accrued interest $ 29,703 $ 29,095 Customer deposits and advances 33,189 35,734 Accrued payroll 29,717 28,143 Accrued insurance 16,114 11,104 Broker margin deposit liability 32,805 79,178 Accrued senior preferred units distributions 17,466 16,013 Other 59,339 46,515 Other current liabilities $ 218,333 $ 245,782 Shipping and handling expenses Shipping and handling expenses are classified in the following consolidated statements of operations line items: For the year ended July 31, 2022 2021 2020 Operating expense - personnel, vehicle, plant and other $ 244,022 $ 217,292 $ 219,598 Depreciation and amortization expense 14,370 13,691 9,857 Operating expense - equipment lease expense 18,874 22,609 32,518 $ 277,266 $ 253,592 $ 261,973 Cash, cash equivalents and restricted cash Ferrellgas maintains its cash and cash equivalents in various bank accounts that, at times, may exceed federally insured limits. Ferrellgas’ cash and cash equivalent accounts have been placed with high credit quality financial institutions. For purposes of the 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. Ferrellgas Partners Cash, cash equivalents and restricted cash consist of the following: July 31, 2022 July 31, 2021 Cash and cash equivalents $ 147,529 $ 270,452 Restricted cash (1) 11,208 11,500 Cash, cash equivalents and restricted cash $ 158,737 $ 281,952 (1) As of July 31, 2022 and 2021, respectively, restricted cash consists of an $11.2 million and $11.5 million cash deposit made with the administrative agent under the operating partnership’s senior secured credit facility that was terminated in April 2020, which may be used by the administrative agent to pay contingent obligations arising under the financing agreement that governed the terminated senior secured credit facility. For additional discussion, see Note H – Debt . The operating partnership Cash, cash equivalents and restricted cash consist of the following: July 31, 2022 July 31, 2021 Cash and cash equivalents $ 147,258 $ 270,188 Restricted cash (1) 11,208 11,500 Cash, cash equivalents and restricted cash $ 158,466 $ 281,688 (1) As of July 31, 2022 and 2021, respectively, restricted cash consists of an $11.2 million and $11.5 million cash deposit made with the administrative agent under the operating partnership’s senior secured credit facility that was terminated in April 2020, which may be used by the administrative agent to pay contingent obligations arising under the financing agreement that governed the terminated senior secured credit facility. For additional discussion see Note H – Debt . Certain cash flow and non-cash activities Ferrellgas Partners Certain cash flow and significant non-cash activities are presented below: For the year ended July 31, 2022 2021 2020 Cash paid for: Interest (1) $ 91,897 $ 156,449 $ 147,402 Income taxes $ 1,018 $ 706 $ 289 Non-cash investing and financing activities: Liability incurred in connection with Financing Agreement amendment $ — $ — $ 8,863 Liabilities incurred in connection with acquisitions $ 2,022 $ 1,344 $ 975 Change in accruals for property, plant and equipment additions $ 450 $ (386) $ 216 Lease liabilities arising from operating right-of-use assets $ 12,748 $ 8,374 $ 14,938 Lease liabilities arising from finance right-of-use assets $ 2,209 $ 2,310 $ 45,455 Accrued senior preferred units distributions $ 17,466 $ 16,013 $ — (1) See Principles of consolidation and basis of presentation in Note B – Summary of significant accounting policies - for information on the correction of an error for the year ended July 31, 2021. The operating partnership Certain cash flow and significant non-cash activities are presented below: For the year ended July 31, 2022 2021 2020 Cash paid for: Interest $ 91,897 $ 156,449 $ 132,006 Income taxes $ 1,014 $ 693 $ 241 Non-cash investing and financing activities: Liability incurred in connection with Financing Agreement amendment $ — $ — $ 8,863 Liabilities incurred in connection with acquisitions $ 2,022 $ 1,344 $ 975 Change in accruals for property, plant and equipment additions $ 450 $ (386) $ 216 Lease liabilities arising from operating right-of-use assets $ 12,748 $ 8,374 $ 14,938 Lease liabilities arising from finance right-of-use assets $ 2,209 $ 2,310 $ 45,455 Accrued senior preferred units distributions $ 17,466 $ 16,013 $ — |