Variable Interest Entities

9 Months Ended

Jul. 31, 2015

Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]

As of July 31, 2015, we have determined that we are not the primary beneficiary under variable interest entity (VIE) accounting guidance in any of our equity method investments, as discussed in Note 12 to the condensed consolidated financial statements in this Form 10-Q. Based on our involvement in these investments, we do not have the power to direct the activities of these investments that most significantly impact the VIE’s economic performance. As we are not the consolidating investor, we will continue to apply equity method accounting to these investments. Our maximum loss exposure related to these equity method investments is limited to our equity investment in each entity. As of July 31, 2015 and October 31, 2014, our investment balances are as follows.



In thousands	July 31, 2015		October 31, 2014
Cardinal	$	15,320	$	16,073
Pine Needle	18,921		18,689
SouthStar	40,799		40,965
Hardy Storage	39,568		37,179
Constitution	72,769		57,255
ACP	8,435		10
Total equity method investments in non-utility activities	$	195,812	$	170,171

We have also reviewed various lease arrangements, contracts to purchase, sell or deliver natural gas and other agreements in which we hold a variable interest. In these cases, we have determined that we are not the primary beneficiary of the related VIE because we do not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.