| Supplemental financial statement information |
E. Supplemental financial statement information Inventories Inventories consist of the following: | | | | | | | | | July 31, 2026 | | July 31, 2025 | Propane gas and related products | | $ | 62,305 | | $ | 66,052 | Appliances, parts and supplies, and other | | | 19,703 | | | 21,755 | Inventories | | $ | 82,008 | | $ | 87,807 |
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, 2026, Ferrellgas had committed, for supply procurement purposes, to deliver approximately 0.1 million gallons of propane at fixed prices, net of contracts to deliver. Property, plant and equipment, net Property, plant and equipment, net consist of the following: | | | | | | | | | | | Estimated useful lives | | July 31, 2026 | | July 31, 2025 | Land | | Indefinite | | $ | 43,902 | | $ | 43,318 | Land improvements | | 2-20 | | | 17,736 | | | 16,986 | Buildings and improvements | | 20 | | | 92,283 | | | 90,945 | Vehicles, including transport trailers (1) | | 8-20 | | | 144,156 | | | 137,032 | Bulk equipment and district facilities | | 5-30 | | | 124,130 | | | 123,306 | Tanks, cylinders and customer equipment | | 2-30 | | | 840,895 | | | 857,142 | Computer and office equipment | | 2-5 | | | 98,780 | | | 95,140 | Construction in progress | | n/a | | | 8,873 | | | 14,206 | | | | | | 1,370,755 | | | 1,378,075 | Less: accumulated depreciation | | | | | 780,580 | | | 775,383 | Property, plant and equipment, net | | | | $ | 590,175 | | $ | 602,692 | | | | | | | | | |
| (1) | Includes 35 vehicles under failed sale-leaseback transactions as of July 31, 2026 and 2025. See the Certain cash flow and non-cash activities section in Note E “Supplemental financial statement information” and Note J “Leases” for additional information. |
Depreciation expense totaled $76.6 million, $74.5 million and $76.7 million for fiscal 2026, 2025 and 2024, respectively. Prepaid expenses and other current assets Ferrellgas Partners Prepaid expenses and other current assets consist of the following: | | | | | | | | | July 31, 2026 | | July 31, 2025 | Broker margin deposit assets | | $ | 8,438 | | $ | 6,222 | Price risk management asset | | | 5,060 | | | 3,244 | Other prepaid expenses | | | 9,514 | | | 13,458 | Other | | | 10,446 | | | 7,547 | Prepaid expenses and other current assets | | $ | 33,458 | | $ | 30,471 | | | | | | | |
The operating partnership Prepaid expenses and other current assets consist of the following: | | | | | | | | | July 31, 2026 | | July 31, 2025 | Broker margin deposit assets | | $ | 8,438 | | $ | 6,222 | Price risk management asset | | | 5,060 | | | 3,244 | Other prepaid expenses | | | 9,514 | | | 13,458 | Other | | | 10,426 | | | 7,465 | Prepaid expenses and other current assets | | $ | 33,438 | | $ | 30,389 |
Other assets, net Other assets, net consist of the following: | | | | | | | | | July 31, 2026 | | July 31, 2025 | Finance lease ROU assets | | $ | 54,976 | | $ | 37,803 | Other | | | 34,752 | | | 30,899 | Other assets, net | | $ | 89,728 | | $ | 68,702 |
Other current liabilities Ferrellgas Partners Other current liabilities consist of the following: | | | | | | | | | July 31, 2026 | | July 31, 2025 | Accrued interest | | $ | 19,233 | | $ | 28,318 | Accrued payroll | | | 7,307 | | | 31,072 | Accrued insurance | | | 21,575 | | | 15,314 | Broker margin deposit liability | | | 3,760 | | | 2,193 | Accrued senior preferred units distributions | | | 16,843 | | | 17,280 | Accrued miscellaneous | | | 10,988 | | | 47,578 | Deferred income/gain | | | 41,472 | | | 44,040 | Other | | | 50,648 | | | 29,359 | Other current liabilities | | $ | 171,826 | | $ | 215,154 | | | | | | | |
The operating partnership Other current liabilities consist of the following: | | | | | | | | | July 31, 2026 | | July 31, 2025 | Accrued interest | | $ | 19,233 | | $ | 28,318 | Accrued payroll | | | 7,307 | | | 31,072 | Accrued insurance | | | 21,575 | | | 15,314 | Broker margin deposit liability | | | 3,760 | | | 2,193 | Accrued senior preferred units distributions | | | 16,843 | | | 17,280 | Accrued miscellaneous | | | 10,988 | | | 47,578 | Deferred income/gain | | | 41,472 | | | 44,040 | Other | | | 48,900 | | | 28,767 | Other current liabilities | | $ | 170,078 | | $ | 214,562 | | | | | | | |
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, | | | 2026 | | 2025 | | 2024 | Operating expense - personnel, vehicle, plant and other | | $ | 307,219 | | $ | 295,763 | | $ | 283,627 | Depreciation and amortization expense | | | 20,188 | | | 16,662 | | | 13,231 | Operating expense - equipment lease expense | | | 4,595 | | | 10,410 | | | 13,775 | Shipping and handling expenses | | $ | 332,002 | | $ | 322,835 | | $ | 310,633 | | | | | | | | | | |
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. In January 2025, a $10.6 million restricted cash deposit was released when the Company settled the related outstanding litigation. There is no restricted cash as of July 31, 2026 and 2025. Certain cash flow and non-cash activities Certain cash flow and significant non-cash activities are presented below: | | | | | | | | | | | | For the year ended July 31, | | | 2026 | | 2025 | | 2024 | Cash paid for: | | | | | | | | | | Interest | | $ | 126,465 | | $ | 96,072 | | $ | 89,151 | Non-cash investing and financing activities: | | | | | | | | | | Liabilities incurred in connection with acquisitions | | $ | — | | $ | 635 | | $ | 1,585 | Change in accruals for property, plant and equipment additions | | $ | (263) | | $ | (274) | | $ | 1,168 | Lease liabilities arising from operating ROU assets | | $ | 13,519 | | $ | 13,415 | | $ | 14,204 | Lease liabilities arising from finance ROU assets | | $ | 34,777 | | $ | 23,371 | | $ | 5,356 | Accrued senior preferred units distributions | | $ | 16,843 | | $ | 17,280 | | $ | 17,538 | Acquisition of assets in failed sale-leaseback | | $ | — | | $ | 5,032 | | $ | 2,496 | Change in liability in connection with failed sale-leaseback | | $ | (1,272) | | $ | 3,946 | | $ | 2,353 |
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