Income Taxes (Tables)

12 Months Ended

Nov. 30, 2017

Income Tax Disclosure [Abstract]

Total Income Taxes Allocated

Total income taxes were allocated as follows (in thousands):

	Year Ended November 30,
	2017		2016		2015
Income tax expense	$	147,340	$	14,566	$	18,898
Stockholders’ equity, compensation expense for tax purposes less than amounts recognized for financial reporting purposes	—		4,186		5,935

Components of Provision for Income Tax Expense

The provision for income tax expense consists of the following components (in thousands):

	Year Ended November 30,
	2017			2016			2015
Current:
U.S. Federal	$	147,065		$	27,473		$	(45,007	)
U.S. state and local	30,611			6,196			(28,260		)
Foreign	12,910			(5,090		)	3,369
Total current	190,586			28,579			(69,898		)
Deferred:
U.S. Federal	(53,157		)	(11,249		)	74,085
U.S. state and local	1,760			(4,819		)	22,811
Foreign	8,151			2,055			(8,100		)
Total deferred	(43,246		)	(14,013		)	88,796
Total income tax expense	$	147,340		$	14,566		$	18,898

Schedule of Components of Income before Income Tax Expense

The following table presents the U.S. and non-U.S. components of income before income tax expense (in thousands):

	Year Ended November 30,
	2017		2016			2015
U.S.	$	403,445	$	34,178		$	82,515
Non-U.S. (1)	101,479		(4,206		)	31,712
Income before income tax expense	$	504,924	$	29,972		$	114,227

(1) For purposes of this table, non-U.S. income is defined as income generated from operations

Reconciliation of Effective Tax Rate to U.S. Federal Statutory Income Tax Rate

Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 35% to earnings before income taxes as a result of the following (dollars in thousands):

	Year Ended November 30,
	2017					2016					2015
	Amount			Percent		Amount			Percent		Amount			Percent
Computed expected income taxes	$	176,724		35.0	%	$	10,490		35.0	%	$	39,979		35.0	%
Increase (decrease) in income taxes resulting from:
State and city income taxes, net of Federal income tax benefit	21,041			4.2		124			0.5		(3,542		)	(3.1	)
International operations (including foreign rate differential)	(11,577		)	(2.3	)	(3,404		)	(11.4	)	(11,474		)	(10.0	)
Tax exempt income	(3,850		)	(0.8	)	(4,640		)	(15.5	)	(6,789		)	(5.9	)
Foreign tax credits	(32,974		)	(6.5	)	—			—		(7,240		)	(6.3	)
Non-deductible Jefferies Bache wind down costs	—			—		—			—		3,225			2.8
Meals and entertainment	4,129			0.8		4,640			15.5		5,232			4.6
Excess stock detriment	406			0.1		9,755			32.6		—			—
Federal benefits related to prior year tax filings	(3,786		)	(0.8	)	(2,928		)	(9.8	)	199			0.1
Other, net	(2,773		)	(0.5	)	529			1.7		(692		)	(0.7	)
Total income tax expense	$	147,340		29.2	%	$	14,566		48.6	%	$	18,898		16.5	%

Roll Forward of Gross Unrecognized Tax Benefits

The following table presents a reconciliation of gross unrecognized tax benefits (in thousands):

	Year Ended November 30,
	2017			2016			2015
Balance at beginning of period	$	109,527		$	107,902		$	126,662
Increases based on tax positions related to the current period	18,619			5,045			—
Increases based on tax positions related to prior periods	7,310			1,447			2,818
Decreases based on tax positions related to prior periods	(5,912		)	(4,520		)	(3,883		)
Decreases related to settlements with taxing authorities	—			(347		)	(17,695		)
Balance at end of period	$	129,544		$	109,527		$	107,902

Significant Components of Deferred Tax Assets and Liabilities

The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):

	November 30,
	2017			2016
Deferred tax assets:
Compensation and benefits	$	376,642		$	285,542
Net operating loss	20,094			11,021
Long-term debt	26,476			60,707
Accrued expenses and other	121,746			124,269
Sub-total	544,958			481,539
Valuation allowance	(14,217		)	(9,464		)
Total deferred tax assets	530,741			472,075
Deferred tax liabilities:
Amortization of intangibles	102,739			107,474
Other	17,282			21,630
Total deferred tax liabilities	120,021			129,104
Net deferred tax asset, included in Other assets	$	410,720		$	342,971

Earliest Tax Year Subject to Examination in the Major Tax Jurisdictions in which the Company Operates

The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate:

Jurisdiction	Tax Year
United States	2007
California	2007
New Jersey	2010
New York State	2001
New York City	2003
United Kingdom	2014
Hong Kong	2011
India	2010
Italy	2012