Derivative Financial Instruments

6 Months Ended

Apr. 30, 2014

Derivative Financial Instruments Disclosure [Abstract]

Derivative Financial Instruments

7. Derivative Financial Instruments

Derivative financial instruments designated as cash flow hedges

During the three and six months ended April 30, 2014, the Company reclassified into interest expense$50,000and$0.1million, respectively,of deferred gains related to a forward-starting interest rate swap entered into in connection with the offering of its 2023 Senior Notes. At April 30, 2014, the remaining unamortized gain on this transaction was $1.8 million. During the next twelve months, the Company expects to reclassify approximately $0.2 million of the gain into interest expense.

Duringthe three months ended April 30, 2014 and 2013, the Company reclassified into interest expense $56,000and $0.1 million, respectively, of deferred lossesrelated toa Treasury lock transaction entered into in connection with the issuance of its 2017 Senior Notes. During the six months ended April 30, 2014 and 2013, the Company reclassified into interest expense $0.1 million and $0.2 million, respectively, of deferred losses on this Treasury lock. At April 30, 2014, the remaining unamortized loss on this transaction was $0.8 million. During the next twelve months, the Company expects to reclassify approximately $0.2 million of the loss into interest expense.

Other derivative financial instruments not designated for hedge accounting

The Company has entered into a series of foreign exchange contracts, stock index futures contracts and commodity futures contracts to hedge currency risk exposure and market risk associated with its investments in separately managed accounts and consolidated sponsored funds seeded for new product development purposes.Certain of these consolidated sponsored funds and separately managed accounts may utilize derivative financial instruments within their portfolios in pursuit of their stated investment objectives.

At April 30, 2014 and October 31, 2013, excluding derivative financial instruments held in certain consolidated sponsored funds and separately managed accounts, the Company had 49 and 42 foreign exchange contracts outstanding with five counterparties with an aggregate notional value of $20.6million and $59.1 million, respectively; 1,951and 2,711 stock index futures contracts outstanding with one counterparty with an aggregate notional value of $139.7million and $200.7 million, respectively; and 401 and 217commodity futures contracts outstanding with one counterparty with an aggregate notional value of $25.1million and $12.9 million, respectively. The number of derivative contracts outstanding and the notional values they represent at April 30, 2014 and October 31, 2013 are indicative of derivative balances throughout each respective period.

The following tables present the fair value of derivative financial instruments, excluding derivative financial instruments held in certain consolidated sponsored funds and separately managed accounts, not designated as hedging instruments as of April 30, 2014 and October 31, 2013:

April 30, 2014
	Assets			Liabilities
(in thousands)	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Foreign exchange contracts	Other assets	$	130	Other liabilities	$	411
Stock index futures contracts	Other assets		316	Other liabilities		3,669
Commodity futures contracts	Other assets		373	Other liabilities		735
Total		$	819		$	4,815

October 31, 2013
	Assets			Liabilities
(in thousands)	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Foreign exchange contracts	Other assets	$	34	Other liabilities	$	981
Stock index futures contracts	Other assets		81	Other liabilities		7,288
Commodity futures contracts	Other assets		219	Other liabilities		143
Total		$	334		$	8,412

The following is a summary of the net gains (losses)recognized in income for the three and six months endedApril 30,2014 and 2013:

	Income Statement		Three Months Ended April 30,				Six Months Ended April 30,
(in thousands)	Location		2014		2013		2014		2013
Foreign exchange contracts	Gains (losses) and other investment income, net	$	(1,288)	$	848	$	138	$	1,194
Stock index futures contracts	Gains (losses) and other investment income, net		(9,693)		(8,881)		(7,538)		(18,911)
Commodity futures contracts	Gains (losses) and other investment income, net		(1,338)		1,043		(1,323)		694
Total		$	(12,319)	$	(6,990)	$	(8,723)	$	(17,023)