Is any portion of Ferrellgas’ quarterly distribution tax-deferred?
Yes. We estimate that more than 90 percent of our quarterly distribution is tax deferrable to our investors. The tax deferral to investors is primarily attributed to our allocation of tax depreciation on our assets. We believe that the tax shield created by this allocation should last at least three years from the date common units are purchased. Any deferred portion of taxes will be realized through gain recognition when the common units are sold.
