Fair Value Disclosures (Tables)

6 Months Ended

May 31, 2017

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value (“NAV”) of $23.7 million and $24.3 million at May 31, 2017 and November 30, 2016, respectively, by level within the fair value hierarchy (in thousands):

	May 31, 2017
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	1,956,279	$	190,005	$	20,548	$	—		$	2,166,832
Corporate debt securities	—		2,922,772		24,727		—			2,947,499
Collateralized debt obligations and collateralized loan obligations	—		23,519		27,255		—			50,774
U.S. government and federal agency securities	1,531,038		90,785		—		—			1,621,823
Municipal securities	—		600,039		—		—			600,039
Sovereign obligations	1,326,731		1,055,853		—		—			2,382,584
Residential mortgage-backed securities	—		1,419,269		33,032		—			1,452,301
Commercial mortgage-backed securities	—		433,958		16,263		—			450,221
Other asset-backed securities	—		141,908		43,349		—			185,257
Loans and other receivables	1,677		1,681,753		49,365		—			1,732,795
Derivatives	45,866		2,997,903		6,860		(2,872,198		)	178,431
Investments at fair value	—		—		89,006		—			89,006
Total financial instruments owned, excluding Investments at fair value based on NAV	$	4,861,591	$	11,557,764	$	310,405	$	(2,872,198	)	$	13,857,562
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,398,522	$	29,538	$	354	$	—		$	1,428,414
Corporate debt securities	—		1,786,165		522		—			1,786,687
U.S. government and federal agency securities	1,354,488		—		—		—			1,354,488
Sovereign obligations	1,502,643		1,194,090		—		—			2,696,733
Residential mortgage-backed securities	—		1,078		—		—			1,078
Commercial mortgage-backed securities	—		—		70		—			70
Loans	—		1,291,694		4,967		—			1,296,661
Derivatives	42,617		3,247,585		9,882		(2,859,680		)	440,404
Total financial instruments sold, not yet purchased	$	4,298,270	$	7,550,150	$	15,795	$	(2,859,680	)	$	9,004,535
Short-term borrowings	$	—	$	28,044	$	—	$	—		$	28,044
Long-term debt	$	—	$	392,807	$	—	$	—		$	392,807

(1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.

	November 30, 2016
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	1,742,463	$	90,662	$	21,739	$	—		$	1,854,864
Corporate debt securities	—		2,675,020		25,005		—			2,700,025
Collateralized debt obligations and collateralized loan obligations	—		54,306		54,354		—			108,660
U.S. government and federal agency securities	2,389,397		56,726		—		—			2,446,123
Municipal securities	—		708,469		27,257		—			735,726
Sovereign obligations	1,432,556		990,492		—		—			2,423,048
Residential mortgage-backed securities	—		960,494		38,772		—			999,266
Commercial mortgage-backed securities	—		296,405		20,580		—			316,985
Other asset-backed securities	—		63,587		40,911		—			104,498
Loans and other receivables	—		1,557,233		81,872		—			1,639,105
Derivatives	3,825		4,606,278		6,429		(4,255,998		)	360,534
Investments at fair value	—		—		96,369		—			96,369
Total financial instruments owned, excluding Investments at fair value based on NAV	$	5,568,241	$	12,059,672	$	413,288	$	(4,255,998	)	$	13,785,203
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,577,405	$	16,806	$	313	$	—		$	1,594,524
Corporate debt securities	—		1,718,424		523		—			1,718,947
U.S. government and federal agency securities	976,497		—		—		—			976,497
Sovereign obligations	1,375,590		1,253,754		—		—			2,629,344
Loans	—		801,977		378		—			802,355
Derivatives	568		4,856,310		9,870		(4,229,213		)	637,535
Total financial instruments sold, not yet purchased	$	3,930,060	$	8,647,271	$	11,084	$	(4,229,213	)	$	8,359,202
Other secured financings	$	—	$	41,350	$	418	$	—		$	41,768
Long-term debt	$	—	$	248,856	$	—	$	—		$	248,856

(1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.

Investments Measured at Fair Value Based on Net Asset Value Per Share

The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands):

	May 31, 2017
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	34,924	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	420		—		—
Fund of Funds (4)	183		—		—
Equity Funds (5)	32,878		20,040		—
Multi-asset Funds (6)	124,792		—		—
Total	$	193,197	$	20,040

	November 30, 2016
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	34,446	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	772		—		—
Fund of Funds (4)	230		—		—
Equity Funds (5)	42,179		20,295		—
Multi-asset Funds (6)	133,190		—		—
Total	$	210,817	$	20,295

(1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements.

(2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At May 31, 2017 and November 30, 2016, approximately 1% and 2%, respectively, of the fair value of investments in this category are classified as being in liquidation.

(3) This category includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments. There are no redemption provisions.

(4) This category includes investments in fund of funds that invest in various private equity funds. The investments in this category are managed by us and have no redemption provisions. These investments are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received.

(5) At May 31, 2017 and November 30, 2016, the investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are expected to liquidate in one to six years.

(6) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At May 31, 2017 and November 30, 2016, investments representing approximately 17% and 12%, respectively, of the fair value of investments in this category are redeemable with 30-90 days prior written notice.

Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended May 31, 2017 (in thousands):

	Three Months Ended May 31, 2017
	Balance at February 28, 2017		Total gains/losses (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into/  (out of) Level 3			Balance at May 31, 2017		Change in unrealized gains/(losses) relating to instruments still held at May 31, 2017 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,580	$	(1,198	)	$	490	$	(1,263	)	$	(281	)	$	—	$	2,220		$	20,548	$	(1,428	)
Corporate debt securities	33,467		(1,420		)	8,789		(9,181		)	(6,986		)	—		58			24,727		(1,983		)
CDOs and CLOs	45,354		(2,721		)	16,334		(33,546		)	—			—		1,834			27,255		(131		)
Municipal securities	26,554		(70		)	—		(26,484		)	—			—		—			—		—
RMBS	39,259		(2,188		)	3,176		(6,636		)	(4		)	—		(575		)	33,032		(1,024		)
CMBS	20,653		98			534		(4,111		)	(1		)	—		(910		)	16,263		(546		)
Other ABS	37,702		(3,663		)	13,476		—			(2,241		)	—		(1,925		)	43,349		(3,642		)
Loans and other receivables	53,172		3,226			20,054		(19,378		)	(7,181		)	—		(528		)	49,365		1,687
Investments at fair value	83,785		5,194			300		—			(273		)	—		—			89,006		5,194
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	324	$	30		$	—	$	—		$	—		$	—	$	—		$	354	$	(30	)
Corporate debt securities	523		(1		)	—		—			—			—		—			522		1
CMBS	—		70			—		—			—			—		—			70		(70		)
Net derivatives (2)	6,413		(3,617		)	—		—			(3		)	218		11			3,022		(147		)
Loans	1,036		3,867			—		—			—			—		64			4,967		(3,867		)
Other secured financings	87		(87		)	—		—			—			—		—			—		—

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the six months ended May 31, 2017 (in thousands):

	Six Months Ended May 31, 2017
	Balance at November 30, 2016		Total gains/losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/  (out of) Level 3			Balance at May 31, 2017		Change in unrealized gains/(losses) relating to instruments still held at May 31, 2017 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	21,739	$	(489	)	$	1,056		$	(1,117	)	$	(1,907	)	$	—	$	1,266		$	20,548	$	(1,215	)
Corporate debt securities	25,005		(3,300		)	15,133			(15,295		)	(1,693		)	—		4,877			24,727		(3,571		)
CDOs and CLOs	54,354		(10,102		)	24,741			(44,725		)	—			—		2,987			27,255		(204		)
Municipal securities	27,257		(1,547		)	—			(25,710		)	—			—		—			—		—
RMBS	38,772		(3,000		)	5,886			(11,750		)	(16		)	—		3,140			33,032		(1,667		)
CMBS	20,580		(1,119		)	534			(4,523		)	(2		)	—		793			16,263		(907		)
Other ABS	40,911		(5,489		)	17,029			(300		)	(5,576		)	—		(3,226		)	43,349		(5,461		)
Loans and other receivables	81,872		10,062			63,616			(61,423		)	(17,017		)	—		(27,745		)	49,365		3,679
Investments at fair value	96,369		2,995			300			(10,119		)	(539		)	—		—			89,006		5,019
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	313	$	41		$	—		$	—		$	—		$	—	$	—		$	354	$	(41	)
Corporate debt securities	523		(1		)	—			—			—			—		—			522		1
CMBS	—		70			—			—			—			—		—			70		(70		)
Net derivatives (2)	3,441		(6,154		)	—			—			1,534			404		3,797			3,022		(614		)
Loans	378		4,091			(364		)	—			—			—		862			4,967		(4,091		)
Other secured financings	418		(418		)	—			—			—			—		—			—		—

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the six months ended May 31, 2016 (in thousands):

	Six Months Ended May 31, 2016
	Balance at November 30, 2015			Total gains/losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of)Level 3			Balance at May 31, 2016		Change in unrealized gains/(losses) relating to instruments still held at May 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	40,906		$	1,571		$	2,287		$	(508	)	$	(2,455	)	$	—	$	7,015		$	48,816	$	2,080
Corporate debt securities	25,876			(2,378		)	16,564			(16,613		)	(245		)	—		909			24,113		(2,474		)
CDOs and CLOs	85,092			(20,455		)	24,024			(43,696		)	(473		)	—		8,218			52,710		(12,002		)
Sovereign obligations	120			—			—			—			—			—		—			120		—
RMBS	70,263			(8,337		)	1,483			(4,843		)	(235		)	—		4,977			63,308		(4,011		)
CMBS	14,326			(2,589		)	2,951			(2,023		)	(1,208		)	—		13,526			24,983		(3,140		)
Other ABS	42,925			(202		)	64,833			(74,690		)	(4,713		)	—		14,880			43,033		(7,134		)
Loans and other receivables	189,289			(13,376		)	203,990			(127,944		)	(150,975		)	—		3,415			104,399		(15,693		)
Investments at fair value	53,120			(6,090		)	1,227			—			(555		)	—		10,063			57,765		911
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Net derivatives (2)	(242		)	10,075			—			—			(46		)	1,005		(6,368		)	4,424		(11,008		)
Loans	10,469			(541		)	(2,240		)	1,033			(1,149		)	—		(5,676		)	1,896		250
Other secured financings	544			(76		)	—			—			—			—		—			468		76

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended May 31, 2016 (in thousands):

	Three Months Ended May 31, 2016
	Balance at February 29, 2016		Total gains/losses (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into/ (out of)Level 3			Balance at May 31, 2016		Change in unrealized gains/(losses) relating to instruments still held at May 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	30,540	$	(927	)	$	200	$	(508	)	$	(2,455	)	$	—	$	21,966		$	48,816	$	(849	)
Corporate debt securities	25,634		474			15		(789		)	—			—		(1,221		)	24,113		347
CDOs and CLOs	67,348		1,797			943		(21,233		)	—			—		3,855			52,710		2,534
Sovereign obligations	119		1			—		—			—			—		—			120		1
RMBS	68,019		(4,915		)	3,422		(2,837		)	(122		)	—		(259		)	63,308		(2,233		)
CMBS	21,994		(1,140		)	—		—			(311		)	—		4,440			24,983		(1,306		)
Other ABS	33,124		(7,284		)	3,549		(1,068		)	(52		)	—		14,764			43,033		(7,275		)
Loans and other receivables	155,442		(7,792		)	20,836		(13,347		)	(55,541		)	—		4,801			104,399		(6,231		)
Investments at fair value	63,582		(1,574		)	40		—			(283		)	—		(4,000		)	57,765		(6		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38	$	—		$	—	$	—		$	—		$	—	$	(38	)	$	—	$	—
Net derivatives (2)	11,757		3			—		—			(83		)	451		(7,704		)	4,424		(3		)
Loans	7,744		(261		)	—		—			(71		)	—		(5,516		)	1,896		261
Other secured financings	538		(70		)	—		—			—			—		—			468		70

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives.

Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements

The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category.

For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period.

May 31, 2017
Financial Instruments Owned:	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	17,196
Non-exchange-traded securities			Market approach	Price	$3-$75	$	44
				Underlying stock price	$6	—
			Comparable pricing	Comparable asset price	$6	—
Corporate debt securities	$	24,727	Convertible bond model	Discount rate/yield	8%	—
				Volatility	40%	—
			Market approach	Price	$9-$20	$	18
CDOs and CLOs	$	27,255	Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%-12%	3		%
				Loss severity	25%-30%	27		%
				Discount rate/yield	11%-21%	15		%
			Scenario analysis	Estimated recovery percentage	40%	—
RMBS	$	33,032	Discounted cash flows	Cumulative loss rate	0%-30%	14		%
				Duration (years)	3-17	7
				Discount rate/yield	5%-10%	8		%
CMBS	$	16,263	Discounted cash flows	Cumulative loss rate	15%-35%	25		%
				Duration (years)	1-5	3
				Discount rate/yield	5%-45%	12		%
Other ABS	$	43,349	Discounted cash flows	Cumulative loss rate	0%-24%	19		%
				Duration (years)	1-11	2
				Discount rate/yield	4%-18%	12		%
			Market approach	Price	$100	—
			Scenario analysis	Estimated recovery percentage	30%	—
Loans and other receivables	$	46,309	Market approach	EBITDA multiple	1.6	—
				Price	$42-$100	$	79
				Estimated recovery percentage	35%	—
			Scenario analysis	Price	$66	—
				Estimated recovery percentage	13%-40%	31		%
Derivatives	$	6,860
Unfunded commitments			Market approach	Price	$92-$98	$	96
Credit default swaps				Credit spread	265 bps	—
Interest rate swaps				Credit spread	800 bps	—
Investments at fair value	$	73,392
Private equity securities			Market approach	Transaction level	$3-$250	$	110
Financial Instruments Sold, Not Yet Purchased:
Loans	$	4,967	Market approach	Estimated recovery percentage	35%	—
Derivatives	$	9,882
Equity options			Option model/default rate	Default probability	0%	—
Unfunded commitments			Market approach	Price	$92-$98	$	93
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Discount rate/yield	21%	—

November 30, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	19,799
Non-exchange-traded securities			Market approach	Underlying stock price	$3-$75	$	15
			Comparable pricing	Underlying stock price	$218	—
				Comparable asset price	$11	—
			Present value	Average silver production (tons per day)	666	—
Corporate debt securities	$	25,005	Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Transaction level	$30	—
CDOs and CLOs	$	33,016	Discounted cash flows	Constant prepayment rate	10%-20%	19		%
				Constant default rate	2%-4%	2		%
				Loss severity	25%-70%	40		%
				Yield	7%-17%	12		%
			Scenario analysis	Estimated recovery percentage	28%-38%	31		%
RMBS	$	38,772	Discounted cash flows	Constant prepayment rate	0%-11%	5		%
				Constant default rate	1%-7%	3		%
				Loss severity	35%-100%	62		%
				Yield	2%-10%	6		%
CMBS	$	20,580	Discounted cash flows	Yield	6%-11%	8		%
				Cumulative loss rate	5%-95%	39		%
Other ABS	$	40,911	Discounted cash flows	Constant prepayment rate	4%-20%	14		%
				Constant default rate	0%-31%	13		%
				Loss severity	0%-100%	90		%
				Yield	4%-17%	15		%
			Market approach	Price	$72	—
Loans and other receivables	$	54,347	Market approach	EBITDA multiple	3.3	—
				Discount rate/yield	2%-4%	3		%
				Transaction level	$0.42	—
			Present value	Average silver production (tons per day)	666	—
			Scenario analysis	Estimated recovery percentage	6%-50%	37		%
Derivatives	$	6,429
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Investments at fair value	$	42,907
Private equity securities			Market approach	Transaction level	$250	—
				Price	$25,815,720	—
Liabilities
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	9,870
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Unfunded commitments			Market approach	Discount rate/yield	4%	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	16%	—

Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk and Summary of Contractual Principal Exceeds Fair Value for Loans and Other Receivables

The following is a summary of gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on long-term debt measured at fair value under the fair value option (in thousands):

	Three Months Ended   May 31,						Six Months Ended   May 31,
	2017			2016			2017			2016
Financial Instruments Owned:
Loans and other receivables	$	(4,282	)	$	(10,564	)	$	(11,094	)	$	(24,901	)
Financial Instruments Sold:
Loans	$	(1,734	)	$	407		$	(1,761	)	$	405
Loan commitments	3,332			1,173			4,203			(2,573		)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(3,757	)	$	(3,453	)	$	(19,797	)	$	(3,755	)
Other changes in fair value (2)	1,516			3,893			4,933			10,751

(1) Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax.

(2) Other changes in fair value are included in Principal transactions revenues in our Consolidated Statements of Earnings.

The following is a summary of the amount by which contractual principal exceeds fair value for loans and other receivables and long-term debt measured at fair value under the fair value option (in thousands).

	May 31, 2017		November 30, 2016
Financial Instruments Owned:
Loans and other receivables (1)	$	649,320	$	1,325,938
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	170,969		205,746
Long-term debt	5,116		20,202

(1) Interest income is recognized separately from other changes in fair value and is included in Interest revenues in our Consolidated Statements of Earnings.

(2) Amounts include loans and other receivables greater than 90 days past due of $68.2 million and $64.6 million at May 31, 2017 and November 30, 2016, respectively.