Derivative Financial Instruments
 12 Months Ended
Oct. 31, 2012
Derivative Financial Instruments Disclosure [Abstract]  
Derivative Financial Instruments

7. Derivative Financial Instruments

 

Derivative financial instruments designated as cash flow hedges

 

During each of the fiscal years ended October 31, 2012, 2011, and 2010, the Company reclassified into interest expense $0.4 million of the loss on a Treasury lock transaction related to the Company's issuance of ten-year senior notes in October 2007. The loss recorded in other comprehensive income (loss) is being reclassified to earnings as a component of interest expense over the term of the debt. At October 31, 2012, the remaining unamortized loss on this transaction was $2.2 million. During fiscal 2013, the Company expects to reclassify approximately $0.4 million of the loss on the Treasury lock transaction into interest expense.

Other derivative financial instruments not designated for hedge accounting

 

The Company has entered into a series of foreign exchange contracts, stock index futures contracts and commodity futures contracts to hedge currency risk and market risk associated with its investments in separately managed accounts and consolidated sponsored funds seeded for new product development purposes.

 

At October 31, 2012, the Company had 49 foreign exchange contracts outstanding with eight counterparties with an aggregate notional value of $35.7 million; 1,325 stock index futures contracts outstanding with one counterparty with an aggregate notional value of $97.1 million; and 200 commodity futures contracts outstanding with one counterparty with an aggregate notional value of $11.8 million.

The following tables present the fair value of derivative instruments not designated as hedging instruments as of October 31, 2012 and 2011:

October 31, 2012         
   Assets  Liabilities
(in thousands) Balance Sheet Location Fair Value  Balance Sheet Location Fair Value
Foreign exchange contractsOther assets$ 226  Other liabilities$ 300
Stock index futures contractsOther assets  1,505  Other liabilities  367
Commodity futures contractsOther assets  498  Other liabilities  121
Total   $ 2,229   $ 788

October 31, 2011         
   Assets  Liabilities
(in thousands) Balance Sheet Location Fair Value  Balance Sheet Location Fair Value
Foreign exchange contractsOther assets$ 24  Other liabilities$ 124
Stock index futures contractsOther assets  157  Other liabilities  6,363
Commodity futures contractsOther assets  879  Other liabilities  167
Total   $ 1,060   $ 6,654

The following is a summary of the net gains (losses) recognized in income for the years ended October 31, 2012, 2011 and 2010:

   Income Statement      
(in thousands) Location 2012 2011 2010
 Gains and other       
Foreign exchange contractsinvestment income, net$ 288$ (1,495)$ (810)
          
 Gains and other       
Stock index futures contractsinvestment income, net  (11,361)  (2,658)  (1,923)
          
 Gains and other       
Commodity futures contractsinvestment income, net  693  305  (836)
Total   $ (10,380)$ (3,848)$ (3,569)