Segment Reporting

9 Months Ended

Aug. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

Note 21. Segment Reporting

We operate in two principal segments — Capital Markets and Asset Management. The Capital Markets segment includes our securities, commodities, futures and foreign exchange brokerage trading activities and investment banking activities. The Capital Markets reportable segment is managed as a single operating segment that provides the sales, trading and origination effort for various fixed income, equity and advisory products and services. The Asset Management segment provides investment management services to investors in the U.S. and overseas.

Our reportable business segment information is prepared using the following methodologies:

• Net revenues and expenses directly associated with each reportable business segment are included in determining earnings before taxes.

• Net revenues and expenses not directly associated with specific reportable business segments are allocated based on the most relevant measures applicable, including each reportable business segment’s net revenues, headcount and other factors.

• Reportable business segment assets include an allocation of indirect corporate assets that have been fully allocated to our reportable business segments, generally based on each reportable business segment’s capital utilization.

Our net revenues and expenses by segment are summarized below for the three and nine months ended August 31, 2011 and the three and eight months ended August 31, 2010 (in millions):

					Nine Months		Eight Months
	Three Months Ended				Ended		Ended
	August 31, 2011		August 31, 2010		August 31, 2011		August 31, 2010
Capital Markets:
Net revenues	$	506.2	$	516.5	$	1,957.3	$	1,500.6
Expenses	$	463.7	$	435.0	$	1,616.0	$	1,218.8
Asset Management:
Net revenues	$	3.1	$	0.8	$	37.5	$	11.8
Expenses	$	5.0	$	8.3	$	24.0	$	20.6
Total:
Net revenues	$	509.3	$	517.3	$	1,994.8	$	1,512.4
Expenses	$	468.7	$	443.3	$	1,640.0	$	1,239.4

Our total assets by segment are summarized below as of August 31, 2011 and 2010 (in millions):

	August 31, 2011		August 31, 2010
Segment Assets:
Capital Markets	$	45,080.9	$	32,539.5
Asset Management		44.3		132.6
Total Assets	$	45,125.2	$	32,672.1

Net Revenues by Geographic Region

Net revenues for the Capital Market segment are recorded in the geographic region in which the position was risk-managed or, in the case of investment banking, in which the senior coverage banker is located. For Asset Management, net revenues are allocated according to the location of the investment advisor. The following table presents Net revenues by geographic region for the three and nine months ended August 31, 2011 and the three and eight months ended August 31, 2010 (in thousands):

					Nine Months		Eight Months
	Three Months Ended				Ended		Ended
	August 31, 2011		August 31, 2010		August 31, 2011		August 31, 2010
Americas (1)	$	372,727	$	428,037	$	1,611,117	$	1,294,118
Europe (2)		127,229		85,485		363,114		215,034
Asia (including Middle East)		9,326		3,747		20,599		3,285
Net Revenues	$	509,282	$	517,269	$	1,994,830	$	1,512,437

(1)	Substantially all relates to U.S. results.
(2)	Substantially all relates to U.K. results.