Assets Held for Sale and Discontinued Operations

9 Months Ended

Aug. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale and Discontinued Operations

Assets Held for Sale and Discontinued Operations

Foursight

On November 20, 2023, we entered into an agreement to sell Foursight. Assets held for sale are recorded initially at the lower of their carrying value or estimated fair value, less estimated costs to sell. Upon designation as an asset held for sale, we discontinue recording depreciation expense on such asset.

Foursight’s major classes of assets and liabilities:

$ in thousands	November 30, 2023
Assets held for sale:
Cash and cash equivalents	$	3,555
Other receivables	1,478
Premises and equipment, net	1,175
Operating lease assets	7,635
Goodwill (1)	24,000
Other assets (2)	928,808
Total assets held for sale	$	966,651
Liabilities held for sale:
Other secured financings	$	700,615
Lease liabilities	8,821
Accrued expenses and other liabilities	11,503
Long-term debt	149,262
Total liabilities held for sale	$	870,201

(1)Goodwill was allocated based on the relative fair values of the applicable reporting units prior to being reclassified as held for sale.

(2)Includes $850.8 million of automobile loan receivables and $42.1 million in deposits required under Foursight’s warehouse credit facilities and amounts collected on pledged automobile loan receivables yet to be distributed.

In April 2024, we closed the sale of Foursight and recognized an initial gain on sale of $24.8 million, which is included within Other revenues.

OpNet

We classified certain net operating assets of OpNet as held for sale in our Consolidated Statements of Financial Condition. The net operating assets that were classified as held for sale were recognized at their estimated fair values pursuant to the step-acquisition accounting related to our interests in OpNet. Refer to Note 4, Business Acquisitions for further information.

The major components of the held for sale assets and liabilities in the disposal group primarily consisted of intangible assets relating to radio frequency networks, customer relationships and other branding rights. The liabilities held for sale consisted primarily of OpNet’s outstanding publicly listed notes. The fair value of the intangible assets was based on the estimated sale price of the disposal group and the fair value of the publicly listed notes were based on observations of quoted transaction prices.

Effective with the designation of the disposal group as held for sale, we suspended recording depreciation of property, plant and equipment and amortization of finite-lived intangible assets and right-of-use assets while these assets were classified as held for sale.

The activities of OpNet’s wholesale operations have been classified as discontinued operations for three and nine months ended August 31, 2024 and its results presented in Net earnings (losses) from discontinued operations (including gain on disposal), net of tax.

In February 2024, we agreed to sell substantially all of OpNet’s wholesale operating assets. The sale closed in August 2024.