Stockholders' Equity

9 Months Ended

Jul. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Capital Stock

Changes in common stock for the nine months ended July 31, 2015 are as follows.

In thousands	Shares	Amount
Balance, October 31, 2014	78,531	$	636,835
Issued to participants in the Employee Stock Purchase Plan (ESPP)	24	900
Issued to participants in the Dividend Reinvestment and Stock Purchase Plan	510	18,425
Issued to participants in the Incentive Compensation Plan (ICP)	130	4,923
Costs from issuance of common stock		(362		)
Balance, July 31, 2015	79,195	$	660,721

Under our effective combined debt and equity shelf registration statement, we established an at-the-market (ATM) equity sales program, including a forward sale component. On January 7, 2015, we entered into separate ATM Equity Offering Sales Agreements (Sales Agreements) with Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill) and J.P. Morgan Securities LLC (JP Morgan), in their capacity as agents and/or as principals (Agents). Under the terms of the Sales Agreements, we may issue and sell, through either of the Agents, shares of our common stock, up to an aggregate sales price of $170 million (subject to certain exceptions) during the period ending October 31, 2016.

In addition to the issuance and sale of shares by us through the Agents, we may also enter into FSAs with affiliates of the Agents as Forward Purchasers. In connection with each FSA, the Forward Purchasers will, at our request, borrow from third parties and, through the Agents, sell a number of shares of our common stock equal to the number of shares underlying the FSA as its hedge. We expect to enter into separate FSAs each fiscal quarter during the term of the Sales Agreements and have done so in our second and third quarters.

Under the Sales Agreements, we specify the maximum number of our shares to be sold and the minimum price per share. We will pay each Agent (or, in the case of a FSA, the Forward Purchaser through a reduced initial forward sale price) a commission of 1.5% of the sales price of all shares sold through it as sales agent under the applicable Sales Agreement. The shares offered under the Sales Agreements may be offered, issued and sold in ATM sales through the Agents or offered in connection with one or more FSAs.

Under a FSA that we executed with Merrill on March 10, 2015, 612,000 shares were borrowed from third parties and sold by Merrill, from March 10, 2015 to April 24, 2015, at a weighted average share price of $36.83, net of adjustments. Based on the weighted average share price at the end of the trading period, the initial forward price was $36.28.

Under a FSA that we executed with JP Morgan on June 8, 2015, 795,529 shares were borrowed from third parties and sold by JP Morgan, from June 10, 2015 to July 30, 2015, at a weighted average share price of $36.42, net of adjustments. Based on the weighted average share price at the end of the trading period, the initial forward price was $35.87.

Under the terms of these FSAs, at our election, we may physically settle in shares, cash or net settle for all or a portion of our obligation under the agreements. We expect to settle by delivering shares. We do not expect to physically settle these shares until October 2015; however, at our election, we can settle the shares under both agreements any time prior to December 15, 2015.

In accordance with ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity, we have classified the FSAs as equity transactions because the forward sale transactions are indexed to our own stock and physical settlement is within our control. As a result of this classification, no amounts will be recorded in the consolidated financial statements until settlement of the FSAs.

Upon physical settlement of the FSAs, delivery of our shares will result in dilution to our EPS at the date of the settlement. In quarters prior to the settlement date, any dilutive effect of the FSAs on our EPS could occur during periods when the average market price per share of our common stock is above the per share adjusted forward sale price described above. See Note 3 to the condensed consolidated financial statements in this Form 10-Q for the dilutive effect of the FSAs on our EPS at July 31, 2015 with the inclusion of the incremental shares in our average shares of dilutive stock as calculated under the treasury stock method.

If we had settled the FSAs by delivery of the combined 1.4 million shares of our common stock to the forward counterparties at July 31, 2015, we would have received net proceeds of approximately $50.5 million based on the net settlement price of $35.87 per share. Upon settlement, we intend to use the net proceeds from these FSAs to finance capital expenditures, to repay outstanding short-term unsecured notes under our commercial paper program and for general corporate purposes.

Cash dividends paid per share of common stock for the three months and nine months ended July 31, 2015 and 2014 are as follows.

	Three Months				Nine Months
	2015		2014		2015		2014
Cash dividends paid per share of common stock	$	0.33	$	0.32	$	0.98	$	0.95

Other Comprehensive Income (Loss)

Our OCIL is a part of our accumulated OCIL and is comprised of hedging activities and benefit activities from our equity method investments. For further information on these hedging activities by our equity method investments, see Note 12 to the condensed consolidated financial statements in this Form 10-Q. Changes in each component of accumulated OCIL are presented below for the three months and nine months ended July 31, 2015 and 2014.

	Changes in Accumulated OCIL(1)
	Three Months						Nine Months
In thousands	2015			2014			2015			2014
Accumulated OCIL beginning balance, net of tax	$	(970	)	$	20		$	(237	)	$	(284	)
Hedging activities of equity method investments:
OCIL before reclassifications, net of tax	33			(10		)	(1,227		)	516
Amounts reclassified from accumulated OCIL, net of tax	307			(93		)	872			(315		)
Total current period activity of hedging activities of equity method investments, net of tax	340			(103		)	(355		)	201
Net current period benefit activities of equity method investments, net of tax	2			(25		)	(36		)	(25		)
Accumulated OCIL ending balance, net of tax	$	(628	)	$	(108	)	$	(628	)	$	(108	)
(1) Amounts in parentheses indicate debits to accumulated OCIL.

A reconciliation of the effect on certain line items of net income on amounts reclassified out of each component of accumulated OCIL is presented below for the three months and nine months ended July 31, 2015 and 2014.

	Reclassification Out of Accumulated OCIL (1)												Affected Line Items on Condensed Statements of Operations and Comprehensive Income
	Three Months						Nine Months
In thousands	2015			2014			2015			2014
Hedging activities of equity method investments	$	505		$	(152	)	$	1,430		$	(514	)	Income from equity method investments
Income tax expense	(198		)	59			(558		)	199			Income taxes
Hedging activities of equity method investments	307			(93		)	872			(315		)
Net benefit activities of equity method investments	3			(41		)	(60		)	(41		)	Income from equity method investments
Income tax expense	(1		)	16			24			16			Income taxes
Net benefit activities of equity method investments	2			(25		)	(36		)	(25		)
Total reclassification for the period, net of tax	$	309		$	(118	)	$	836		$	(340	)
(1) Amounts in parentheses indicate debits to accumulated OCIL.