Commitments and Contingencies

12 Months Ended

Oct. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

21. Commitments and Contingencies

In the normal course of business, the Company enters into agreements that include indemnities in favor of third parties, such as engagement letters with advisors and consultants, information technology agreements, distribution agreements and service agreements. In certain circumstances, these indemnities in favor of third parties relate to service agreements entered into by investment funds managed and/or advised by Eaton Vance Managementor Boston Management and Research, both wholly owned subsidiaries of the Company. The Company has also agreed to indemnify its directors, officers and employees in accordance with the Company's Articles of Incorporation, as amended. Certain agreements do not contain any limits on the Company's liability and, therefore, it is not possible to estimate the Company's potential liability under these indemnities. In certain cases, the Company has recourse against third parties with respect to these indemnities. Further, the Company maintains insurance policies that may provide coverage against certain claims under these indemnities.

The Company and its subsidiaries are subject to various legal proceedings. In the opinion of management, after discussions with legal counsel, the ultimate resolution of these matters will not have a material effect on the consolidated financial condition, results of operations or cash flows of the Company.

In November 2010, the Company acquired intellectual property and patents that form the foundation of the Company's NextShares™exchange-traded managed funds initiative from Managed ETFs LLC, a developer of intellectual property in the field of exchange-traded funds.The success of theNextShares™ initiative became reasonably possible when, on December 2, 2014, the SEC issued the Company an exemption from certain provisions of the Investment Company Act of 1940 to permit the offering of exchange-traded managed funds.

The terms of the acquisition include approximately $9 million in aggregate contingent milestone payments that are based on specific events representing key developments in the advancements of exchange-traded managed fundsfor commercial purposes. There is no defined timing on these payments, resulting in significant uncertainty as to when the amount of any payment is due in the future. If and when the milestones have been accomplished, Managed ETFs LLC is also entitled to revenue sharing payments that are calculated based on a percentage of licensing revenue that Eaton Vance receives for use of the acquired intellectual property.

In July 2006, the Company committed to invest $15.0 million in a private equity partnership that invests in companies in the financial services industry. The Company has invested $14.5 million of the total $15.0 million of committed capital at October 31, 2014. The Company anticipates the remaining $0.5 million will likely be invested by March 2015.

The Company has entered into transactions in financial instruments in which it has sold securities, not yet purchased, as part of its corporate hedging program. As of October 31, 2014 the Company has $1.0 million included within other liabilities on its Consolidated Balance Sheet related to securities sold, not yet purchased.

The Company leases certain office space and equipment under non-cancelable operating leases. The office space leases expire over various terms that extend through 2034. Certain of the leases contain renewal options. The lease payments are recognized on a straight-line basis over the non-cancelable term of each lease plus any anticipated extensions. Rent expense under these leases in fiscal 2014, 2013 and 2012 amounted to $20.7 million, $20.0 million and $20.5 million, respectively. Future minimum lease commitments are as follows:

Year Ending October 31,
(in thousands)		Amount(1)
2015	$	22,410
2016		20,543
2017		20,200
2018		19,986
2019		20,223
2020 – thereafter		258,800
Total	$	362,162

(1) Future minimum lease payments have not been reduced by minimum sublease rentals of $1.7million due in the future.

The Company subleases certain office space under operating leases that expire over various terms. The sublease payments are recognized on a straight-line basis over the non-cancelable term of the sublease. Rentalincome under these subleases amounted to $1.2million, $1.0 million and $1.3million for fiscal years ended October 31, 2014,2013 and 2012, respectively. Future minimum rental payments to be received under the subleases are as follows:

Year Ending October 31,
(in thousands)		Amount
2015	$	1,301
2016(1)		427
Total	$	1,728

(1) There are no future minimum lease payments due to the Company in future periods after fiscal 2016.

Other commitments and contingencies include future payments to be made upon the exercise of puts and calls of non-controlling interests in Atlanta Capital, as well as the contingent payments to be made to the sellingshareholders of TABSas more fully described in Note 11.