Segment Reporting

6 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate in two reportable business segments – Capital Markets and Asset Management. The Capital Markets reportable business segment includes our securities, commodities, futures and foreign exchange trading activities and investment banking, which is composed of underwriting and financial advisory activities. The Capital Markets reportable business segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management reportable business 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 income 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, expenses and earnings (loss) before income taxes by reportable business segment are summarized below (in millions):

	Three Months Ended   May 31,					Six Months Ended   May 31,
	2017			2016		2017			2016
Capital Markets:
Net revenues	$	778.6		$	696.5	$	1,561.2		$	959.8
Expenses	651.7			602.3		1,308.4			1,135.4
Earnings (loss) before income taxes	$	126.9		$	94.2	$	252.8		$	(175.6	)
Asset Management:
Net revenues	$	0.7		$	22.9	$	13.6		$	58.6
Expenses	11.4			14.5		26.0			30.3
Earnings (loss) before income taxes	$	(10.7	)	$	8.4	$	(12.4	)	$	28.3
Total:
Net revenues	$	779.3		$	719.4	$	1,574.8		$	1,018.4
Expenses	663.1			616.8		1,334.4			1,165.7
Earnings (loss) before income taxes	$	116.2		$	102.6	$	240.4		$	(147.3	)

The following table summarizes our total assets by reportable business segment (in millions):

	May 31, 2017		November 30, 2016
Total Assets by Reportable Business Segment:
Capital Markets	$	39,139.7	$	35,931.8
Asset Management	939.3		1,009.5
Total assets	$	40,079.0	$	36,941.3

Net Revenues by Geographic Region

Net revenues for the Capital Market reportable business 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 the Asset Management reportable business segment, net revenues are allocated according to the location of the investment advisor. Net revenues by geographic region were as follows (in thousands):

	Three Months Ended   May 31,				Six Months Ended   May 31,
	2017		2016		2017		2016
Americas (1)	$	637,387	$	569,293	$	1,247,236	$	757,002
Europe (2)	123,027		126,791		279,301		223,224
Asia	18,880		23,324		48,270		38,169
Net revenues	$	779,294	$	719,408	$	1,574,807	$	1,018,395

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

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