Revenues from Contracts with Customers

12 Months Ended

Nov. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

Note 14. Revenues from Contracts with Customers

	Year Ended November 30,
$ in thousands	2024	2023	2022
Revenues from contracts with customers:
Investment banking .........................	$3,302,664	$2,169,366	$2,807,822
Commissions and other fees ........	1,085,349	905,665	925,494
Asset management fees ................	50,700	33,867	23,525
Manufacturing revenues ................	—	—	412,605
Oil and gas revenues .......................	1,119	26,284	302,135
Real estate revenues .......................	119,050	44,825	223,323
Internet connection and broadband revenues ..................	240,874	—	—
Other contracts with customers ....	58,269	53,201	47,954
Total revenue from contracts with customers ................................	4,858,025	3,233,208	4,742,858
Other sources of revenue:
Principal transactions .....................	1,816,963	1,413,283	833,757
Revenues from strategic affiliates	41,802	48,707	56,739
Interest ..............................................	3,543,497	2,868,674	1,183,638
Other ..................................................	254,782	(122,473)	332,271
Total revenues .................................	$10,515,069	$7,441,399	$7,149,263

Revenue from contracts with customers is recognized when, or

as, we satisfy our performance obligations by transferring the

promised goods or services to the customers. A good or service

is transferred to a customer when, or as, the customer obtains

control of that good or service. A performance obligation may be

satisfied over time or at a point in time. Revenue from a

performance obligation satisfied over time is recognized by

measuring our progress in satisfying the performance obligation

in a manner that depicts the transfer of the goods or services to

the customer. Revenue from a performance obligation satisfied

at a point in time is recognized at the point in time that we

determine the customer obtains control over the promised good

or service. The amount of revenue recognized reflects the

consideration we expect to be entitled to in exchange for those

promised goods or services (i.e., the “transaction price”). In

determining the transaction price, we consider multiple factors,

including the effects of variable consideration. Variable

consideration is included in the transaction price only to the

extent it is probable that a significant reversal in the amount of

cumulative revenue recognized will not occur when the

uncertainties with respect to the amount are resolved. In

determining when to include variable consideration in the

transaction price, we consider the range of possible outcomes,

the predictive value of our past experiences, the time period of

when uncertainties expect to be resolved and the amount of

consideration that is susceptible to factors outside of our

influence, such as market volatility or the judgment and actions

of third-parties.

The following provides detailed information on the recognition of

our revenues from contracts with customers:

•Investment Banking. We provide our clients with a full range of

financial advisory and underwriting services. Revenues from

financial advisory services primarily consist of fees generated

in connection with merger, acquisition and restructuring

transactions. Advisory fees from mergers and acquisitions

engagements are recognized at a point in time when the

related transaction is completed, as the performance

obligation is to successfully broker a specific transaction. Fees

received prior to the completion of the transaction are deferred

within Accrued expenses and other liabilities. Advisory fees

from restructuring engagements are recognized over time

using a time elapsed measure of progress as our clients

simultaneously receive and consume the benefits of those

services as they are provided. A significant portion of the fees

we receive for our advisory services are considered variable as

they are contingent upon a future event (e.g., completion of a

transaction or third-party emergence from bankruptcy) and are

excluded from the transaction price until the uncertainty

associated with the variable consideration is subsequently

resolved, which is expected to occur upon achievement of the

specified milestone. Payment for advisory services is generally

due promptly upon completion of a specified milestone or, for

retainer fees, periodically over the course of the engagement.

We recognize a receivable between the date of completion of

the milestone and payment by the customer. Expenses

associated with investment banking advisory engagements are

deferred only to the extent they are explicitly reimbursable by

the client and the related revenue is recognized at a point in

time. All other investment banking advisory related expenses,

including expenses incurred related to restructuring

assignments, are expensed as incurred. All investment banking

advisory expenses are recognized within their respective

expense category in our Consolidated Statements of Earnings

and any expenses reimbursed by our clients are recognized as

Investment banking revenues.

Underwriting services include underwriting and placement

agent services in both the equity and debt capital markets,

including private equity placements, initial public offerings,

follow-on offerings and equity-linked securities transactions

and structuring, underwriting and distributing public and private

debt, including investment grade debt, high yield bonds,

leveraged loans, municipal bonds and mortgage-backed and

asset-backed securities. Underwriting and placement agent

revenues are recognized at a point in time on trade-date, as the

client obtains the control and benefit of the underwriting

offering at that point. Costs associated with underwriting

transactions are deferred until the related revenue is

recognized or the engagement is otherwise concluded and are

recorded on a gross basis within Underwriting costs as we are

acting as a principal in the arrangement. Any expenses

reimbursed by our clients are recognized as Investment

banking revenues.

•Commissions and Other Fees. We earn commission and other

fee revenue by executing, settling and clearing transactions for

clients primarily in equity, equity-related and futures products

and facilitating foreign currency spot transactions. Trade

execution and clearing services, when provided together,

represent a single performance obligation as the services are

not separately identifiable in the context of the contract.

Commission revenues associated with combined trade

execution and clearing services, as well as trade execution

services on a standalone basis, are recognized at a point in

time on trade-date. Commissions revenues are generally paid

on settlement date, and we record a receivable between trade-

date and payment on settlement date. We permit institutional

customers to allocate a portion of their gross commissions to

pay for research products and other services provided by third

parties. The amounts allocated for those purposes are

commonly referred to as soft dollar arrangements. We act as

an agent in the soft dollar arrangements as the customer

controls the use of the soft dollars and directs our payments to

third-party service providers on its behalf. Accordingly,

amounts allocated to soft dollar arrangements are netted

against commission revenues in our Consolidated Statements

of Earnings. We also earn investment research fees for the

sales of our proprietary investment research when a contract

with a client has been identified. The delivery of investment

research services represents a distinct performance obligation

that is satisfied over time when the performance obligation is

to provide ongoing access to a research platform or research

analysts, with fees recognized on a straight-line basis over the

period in which the performance obligation is satisfied. The

performance obligation is satisfied at a point in time when the

performance obligation is to provide individual interactions

with research analysts or research events, with fees

recognized on the interaction date.

We earn account advisory and distribution fees in connection

with wealth management services. Account advisory fees are

recognized over time using the time-elapsed method as we

determined that the customer simultaneously receives and

consumes the benefits of investment advisory services as they

are provided. Account advisory fees may be paid in advance of

a specified service period or in arrears at the end of the

specified service period (e.g., quarterly). Account advisory fees

paid in advance are initially deferred within Accrued expenses

and other liabilities. Distribution fees are variable and

recognized when the uncertainties with respect to the amounts

are resolved.

•Asset Management Fees. We earn management and

performance fees in connection with investment advisory

services provided to various funds and accounts, which are

satisfied over time and measured using a time elapsed

measure of progress as the customer receives the benefits of

the services evenly throughout the term of the contract.

Management and performance fees are considered variable as

they are subject to fluctuation (e.g., changes in assets under

management, market performance) and/ or are contingent on

a future event during the measurement period (e.g., meeting a

specified benchmark) and are recognized only to the extent it

is probable that a significant reversal in the amount of

cumulative revenue recognized will not occur when the

uncertainty is resolved. Management fees are generally based

on month-end assets under management or an agreed upon

notional amount and are included in the transaction price at

the end of each month when the assets under management or

notional amount is known. Performance fees are received

when the return on assets under management for a specified

performance period exceed certain benchmark returns, “high-

water marks” or other performance targets. The performance

period related to our performance fees is annual or semi-

annual. Accordingly, performance fee revenue will generally be

recognized only at the end of the performance period to the

extent that the benchmark return has been met.

•Manufacturing Revenues. We earn revenues from the sale of

manufactured or remanufactured lumber. Agreements with

customers for these sales specify the type, quantity and price

of products to be delivered as well as the delivery date and

payment terms. The transaction price is fixed at the time of

sale and revenue is generally recognized when the customer

takes control of the product.

•Oil and Gas Revenues. The sales of oil and natural gas are

made under contracts negotiated with customers, which

typically include variable consideration based on monthly

pricing tied to local indices and volumes. Revenue is recorded

at the point in time when control of the produced oil and gas

transfers to the customer, which is when the performance

obligation is satisfied. The amount of production delivered to

the customer and the price that will be received for the sale of

the product is estimated utilizing production reports, market

indices and estimated differential. The variable consideration

can be reasonably estimated at the end of the month when the

performance obligation is satisfied.

•Real Estate Revenues. Revenues from the sales of real estate

are recognized at a point in time when the related transaction

is complete. The majority of our real estate sales of land, lots

and homes transfer the goods and services to the customer at

the close of escrow when the title transfers to the buyer and

the buyer has the benefit and control of the goods and service.

If the performance obligation under the contract with a

customer related to a parcel of real estate is not yet complete

when title transfers to the buyer, revenue associated with the

incomplete performance obligation is deferred until the

performance obligation is completed.

•Internet Connection and Broadband Revenues. Revenues

associated with internet connection and mobile voice services

provided to customers are recognized based on the volume of

service provided as of a given date and the related service

charge. Revenues from the activation of broadband services

are recognized on a straight-line basis over a period of 24

months. Amounts received in advance are deferred and

recognized into revenue over the 24 month service period.

Disaggregation of Revenue

	Year Ended November 30, 2024
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory ................	$1,811,633	$—	$1,811,633
Investment banking - Underwriting .........	1,491,030	—	1,491,030
Equities (1) .................................................	1,074,666	—	1,074,666
Fixed income (1) ........................................	8,859	—	8,859
Asset management ...................................	—	50,700	50,700
Other investments .....................................	—	421,137	421,137
Total ............................................................	$4,386,188	$471,837	$4,858,025
Primary geographic region:
Americas .....................................................	$3,196,908	$223,057	$3,419,965
Europe and the Middle East .....................	812,052	245,299	1,057,351
Asia-Pacific ................................................	377,228	3,481	380,709
Total ............................................................	$4,386,188	$471,837	$4,858,025

(1)Revenues from contracts with customers associated with the equities and

fixed income businesses primarily represent commissions and other fee

revenue.

	Year Ended November 30, 2023
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory ................	$1,198,915	$—	$1,198,915
Investment banking - Underwriting .........	970,451	—	970,451
Equities (1) .................................................	894,602	—	894,602
Fixed income (1) ........................................	10,577	—	10,577
Asset management ...................................	—	33,867	33,867
Other investments .....................................	—	124,796	124,796
Total ............................................................	$3,074,545	$158,663	$3,233,208
Primary geographic region:
Americas .....................................................	$2,349,161	$153,286	$2,502,447
Europe and the Middle East .....................	485,432	2,646	488,078
Asia-Pacific ................................................	239,952	2,731	242,683
Total ............................................................	$3,074,545	$158,663	$3,233,208

(1)Revenues from contracts with customers associated with the equities and

fixed income businesses primarily represent commissions and other fee

revenue.

	Year Ended November 30, 2022
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory ................	$1,778,003	$—	$1,778,003
Investment banking - Underwriting .........	1,029,819	—	1,029,819
Equities (1) .................................................	910,254	—	910,254
Fixed income (1) ........................................	15,240	—	15,240
Asset management ...................................	—	23,525	23,525
Other investments .....................................	—	986,017	986,017
Total ............................................................	$3,733,316	$1,009,542	$4,742,858
Primary geographic region:
Americas .....................................................	$2,910,318	$1,005,200	$3,915,518
Europe and the Middle East .....................	575,012	2,595	577,607
Asia-Pacific ................................................	247,986	1,747	249,733
Total ............................................................	$3,733,316	$1,009,542	$4,742,858

(1)Revenues from contracts with customers associated with the equities and

fixed income businesses primarily represent commissions and other fee

revenue.

Refer to Note 23, Segment Reporting, for a further discussion on

the allocation of revenues to geographic regions.

Information on Remaining Performance Obligations and Revenue

Recognized from Past Performance

We do not disclose information about remaining performance

obligations pertaining to contracts that have an original expected

duration of one year or less. The transaction price allocated to

remaining unsatisfied or partially unsatisfied performance

obligations with an original expected duration exceeding one year

was not material at November 30, 2024. Investment banking

advisory fees that are contingent upon completion of a specific

milestone and fees associated with certain distribution services

are also excluded as the fees are considered variable and not

included in the transaction price at November 30, 2024.

During the years ended November 30, 2024, 2023 and 2022, we

recognized $41.0 million, $38.1 million and $78.9 million,

respectively, of revenue related to performance obligations

satisfied (or partially satisfied) in previous periods, mainly due to

resolving uncertainties in variable consideration that was

constrained in prior periods. In addition, we recognized $32.1

million, $31.5 million and $28.1 million of revenues primarily

associated with distribution services during the years ended

November 30, 2024, 2023 and 2022, respectively, a portion of

which relates to prior periods.

Contract Balances

The timing of our revenue recognition may differ from the timing

of payment by our customers. We record a receivable when

revenue is recognized prior to payment and we have an

unconditional right to payment. Alternatively, when payment

precedes the provision of the related services, we record deferred

revenue until the performance obligations are satisfied.

Our deferred revenue primarily relates to retainer and milestone

fees received in investment banking advisory engagements

where the performance obligation has not yet been satisfied.

Deferred revenue at November 30, 2024 and 2023 was $79.1

million and $48.3 million, respectively, which is recorded in

Accrued expenses and other liabilities. During the years ended

November 30, 2024, 2023 and 2022, we recognized revenues of

$34.6 million, $22.7 million and $48.7 million, respectively, that

were recorded as deferred revenue at the beginning of the year.

We had receivables related to revenues from contracts with

customers of $275.9 million and $248.2 million at November 30,

2024 and 2023, respectively.

Contract Costs

We capitalize costs to fulfill contracts associated with

investment banking advisory engagements where the revenue is

recognized at a point in time and the costs are determined to be

recoverable. Capitalized costs to fulfill a contract are recognized

at the point in time that the related revenue is recognized.

At November 30, 2024 and 2023, capitalized costs to fulfill a

contract were $5.8 million and $5.3 million, respectively, which

are recorded in Receivables – Fees, interest and other. For the

years ended November 30, 2024, 2023 and 2022, we recognized

expenses of $3.6 million, $1.8 million and $1.6 million,

respectively, related to costs to fulfill a contract that were

capitalized as of the beginning of the year. There were no

significant impairment charges recognized in relation to these

capitalized costs during the years ended November 30, 2024,

2023 and 2022.