Stockholders' Equity

3 Months Ended

Jan. 31, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Capital Stock

Changes in common stock for the three months ended January 31, 2016 are as follows.

In thousands	Shares	Amount
Balance, October 31, 2015	80,883	$	721,419
Issued to participants in the Employee Stock Purchase Plan (ESPP)	6	342
Issued to participants in the Dividend Reinvestment and Stock Purchase Plan	77	4,260
Issued to participants in the ICP	106	6,056
Costs from issuance of common stock		(21		)
Balance, January 31, 2016	81,072	$	732,056

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 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 through July 31, 2016.

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 JP Morgan on January 4, 2016, 360,000 shares were borrowed from third parties and sold by JP Morgan, from January 4, 2016 to January 28, 2016, at a weighted average share price of $57.90, net of adjustments. Based on the weighted average share price at the end of the trading period, the initial forward price was $57.04.

Under the terms of this FSA, at our election, we may physically settle in shares, cash or net settle for all or a portion of our obligation under the agreement. We expect to settle by delivering shares. At our election, we intend to physically settle the shares under this agreement prior to the closing date of the Acquisition or October 31, 2016, whichever occurs first.

In accordance with accounting guidance, we have classified the FSA as an equity transaction because the FSA is 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 FSA.

Upon physical settlement of the FSA, 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 FSA 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 4 to the condensed consolidated financial statements in this Form 10-Q for the dilutive effect of the FSA on our EPS at January 31, 2016 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 FSA by delivery of the 360,000 shares of our common stock to the forward counterparty as of January 31, 2016, we would have received net proceeds of approximately $20.5 million based on the net settlement price of $57.03 per share. Upon settlement, we intend to use the net proceeds from this FSA to finance capital expenditures, to repay outstanding short-term unsecured notes under our CP program and for general corporate purposes.

Cash dividends paid per share of common stock for the three months ended January 31, 2016 and 2015 are as follows.

	Three Months
	2016		2015
Cash dividends paid per share of common stock	$	0.33	$	0.32

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 13 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 ended January 31, 2016 and 2015.

	Changes in Accumulated OCIL(1)
	Three Months
In thousands	2016			2015
Accumulated OCIL beginning balance, net of tax	$	(855	)	$	(237	)
Hedging activities of equity method investments:
OCIL before reclassifications, net of tax	(138		)	(944		)
Amounts reclassified from accumulated OCIL, net of tax	505			117
Total current period activity of hedging activities of equity method investments, net of tax	367			(827		)
Net current period benefit activities of equity method investments, net of tax	1			—
Accumulated OCIL ending balance, net of tax	$	(487	)	$	(1,064	)
(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 ended January 31, 2016 and 2015.

	Reclassification Out of Accumulated OCIL (1)						Affected Line Items on Condensed Statements of Comprehensive Income
	Three Months
In thousands	2016			2015
Hedging activities of equity method investments	$	832		$	192		Income from equity method investments
Income tax expense	(327		)	(75		)	Income taxes
Hedging activities of equity method investments	505			117
Net benefit activities of equity method investments	2			—			Income from equity method investments
Income tax expense	(1		)	—			Income taxes
Net benefit activities of equity method investments	1			—
Total reclassification for the period, net of tax	$	506		$	117
(1) Amounts in parentheses indicate debits to accumulated OCIL.