Segment Reporting

3 Months Ended

Feb. 28, 2013

Segment Reporting

Note 23. 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 comprising of underwriting and financial advisory activities. The Capital Markets reportable segment provides the sales, trading and origination support 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 months ended February 28, 2013 and February 29, 2012 (in millions):

	Three Months Ended
	February 28, 2013		February 29, 2012
Capital Markets:
Net revenues	$	792.5	$	774.4
Expenses	$	653.9	$	603.2
Asset Management:
Net revenues	$	10.9	$	5.6
Expenses	$	7.5	$	6.1
Total:
Net revenues	$	803.4	$	780.0
Expenses	$	661.4	$	609.3

The following table summarizes our total assets by segment as of February 28, 2013 and November 30, 2012 (in millions):

	February 28, 2013		November 30, 2012
Segment Assets:
Capital Markets	$	37,787.6	$	36,277.7
Asset Management		15.6		15.8
Total assets	$	37,803.2	$	36,293.5

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. Net revenues by geographic region for the three months ended February 28, 2013 and February 29, 2012 were as follows (in thousands):

	Three Months Ended
	February 28, 2013		February 29, 2012
Americas (1)	$	653,608	$	662,639
Europe (2)		127,970		105,397
Asia		21,809		11,930
Net revenues	$	803,387	$	779,966

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

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