Variable Interest Entities

9 Months Ended

Jul. 31, 2016

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

As of July 31, 2016, 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 presented in Note 13 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, and 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 included in "Equity method investments in non-utility activities" in "Noncurrent Assets" in the Condensed Consolidated Balance Sheets. As of July 31, 2016 and October 31, 2015, our investment balances are as follows.



In thousands	July 31, 2016		October 31, 2015
Cardinal	$	14,456	$	15,083
Pine Needle	17,155		18,396
SouthStar	41,371		41,325
Hardy Storage	41,753		39,706
Constitution	93,587		82,403
ACP	31,328		10,043
Total equity method investments in non-utility activities	$	239,650	$	206,956

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.