Income Taxes

12 Months Ended

Nov. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 20. Income Taxes

Provision for income tax expense components:

	Year Ended November 30,
$ in thousands	2024	2023	2022
Current: .............................................
U.S. Federal ......................................	$138,259	$14,600	$198,507
U.S. state and local .........................	75,977	14,896	67,236
Foreign ..............................................	83,089	51,923	78,505
Total current ....................................	297,325	81,419	344,248
Deferred:
U.S. Federal ......................................	(9,453)	10,380	(61,303)
U.S. state and local .........................	(2,912)	3,112	(17,010)
Foreign ..............................................	8,234	(3,030)	7,917
Total deferred ..................................	(4,131)	10,462	(70,396)
Total income tax expense from continuing operations ....................	$293,194	$91,881	$273,852

U.S. and non-U.S. components of earnings from continuing

operations before income tax expense:

	Year Ended November 30,
$ in thousands	2024	2023	2022
U.S. ....................................................	$703,981	$177,595	$801,047
Non-U.S. (1) ......................................	301,565	176,674	254,515
Earnings from continuing operations before income tax expense ............................................	$1,005,546	$354,269	$1,055,562

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

from operations located outside the U.S.

Income tax expense differed from the amounts computed by

applying the U.S. Federal statutory income tax rate of 21.0% to

earnings from continuing operations before income taxes as a

result of the following:

	Year Ended November 30,
	2024		2023		2022
$ in thousands	Amount	Percent	Amount	Percent	Amount	Percent
Computed expected federal income taxes ...........	$211,165	21.0%	$74,396	21.0%	$221,668	21.0%
Increase (decrease) in income taxes resulting from:
State and local income taxes, net of Federal income tax benefit ................	47,642	4.8	17,071	4.8	47,364	4.5
International operations (including foreign rate differential) ......	19,567	1.9	7,306	2.1	18,711	1.8
Foreign tax credits, net .............................	(10,324)	(1.0)	(4,504)	(1.3)	(20,368)	(1.9)
Non-deductible executive compensation ..........	14,481	1.5	11,664	3.3	12,596	1.2
Employee share- based awards ..........	(12,044)	(1.2)	(16,136)	(4.6)	(37,988)	(3.6)
Regulatory Settlement ................	—	—	—	—	20,184	1.9
Change in unrecognized tax benefits related to prior years ...............	(15,696)	(1.6)	(25,561)	(7.2)	(16,915)	(1.7)
Interest on unrecognized tax benefits .....................	26,257	2.6	18,988	5.4	13,902	1.3
Other, net ..................	12,146	1.2	8,657	2.4	14,698	1.4
Total income tax expense from continuing operations ................	$293,194	29.2%	$91,881	25.9%	$273,852	25.9%

Reconciliation of gross unrecognized tax benefits:

	Year Ended November 30,
$ in thousands	2024	2023	2022
Balance at beginning of period .............	$332,323	$349,955	$339,036
Increases based on tax positions related to the current period ..................	29,454	1,555	30,690
Increases based on tax positions related to prior periods ...........................	8,022	10,134	5,902
Decreases based on tax positions related to prior periods ...........................	(23,370)	(28,622)	(25,673)
Decreases related to settlements with taxing authorities ....................................	—	(699)	—
Balance at end of period ........................	$346,429	$332,323	$349,955

The total amount of unrecognized benefits that, if recognized,

would favorably affect the effective tax rate was $273.8 million

and $263.0 million (net of Federal benefit) at November 30, 2024

and 2023, respectively.

We recognize interest accrued related to unrecognized tax

benefits and penalties, if any, as components of Income tax

expense. Net interest expense related to unrecognized tax

benefits was $34.6 million, $25.5 million and $18.6 million for the

years ended November 30, 2024, 2023 and 2022, respectively. At

November 30, 2024, 2023 and 2022, we had interest accrued of

approximately $176.6 million, $142.1 million and $116.5 million,

respectively, included in Accrued expenses and other liabilities.

No material penalties were accrued for the years ended

November 30, 2024, 2023 and 2022.

Cumulative tax effects of temporary differences that give rise to

significant portions of the deferred tax assets and liabilities:

	November 30,
$ in thousands	2024	2023
Deferred tax assets:
Net operating loss carryover ......................................	$254,142	$251,244
Compensation and benefits .......................................	221,395	189,928
Accrued expenses and other ......................................	195,216	175,360
Operating lease liabilities ............................................	150,665	128,805
Long-term debt .............................................................	83,680	75,850
Investments in associated companies .....................	73,211	93,952
Sub-total ........................................................................	978,309	915,139
Valuation allowance ....................................................	(240,231)	(228,074)
Total deferred tax assets ...........................................	738,078	687,065
Deferred tax liabilities:
Operating lease right-of-use assets ..........................	132,867	110,071
Amortization of intangibles ........................................	55,067	62,333
Other ..............................................................................	52,554	56,318
Total deferred tax liabilities .......................................	240,488	228,722
Net deferred tax asset, included in Other assets ...	$497,590	$458,343

The valuation allowance represents the portion of our deferred

tax assets for which it is more likely than not that the benefit of

such items will not be realized. We believe that the realization of

the net deferred tax asset of $497.6 million at November 30,

2024 is more likely than not based on expectations of future

taxable income in the jurisdictions in which we operate.

During the fourth quarter of 2023, we acquired Stratos and

OpNet. Refer to Note 4, Business Acquisitions for further

discussion. In relation to these acquisitions, we recognized

deferred tax assets in the aggregate of $222.8 million primarily

related to net operating losses, offset by a valuation allowance of

$222.3 million.

We are currently under examination by a number of taxing

jurisdictions. Though we do not expect that resolution of these

examinations will have a material effect on our consolidated

financial position, they may have a material impact on our

consolidated results of operations for the period in which

resolution occurs. It is reasonably possible that, within the next

twelve months, statutes of limitation will expire which would have

the effect of reducing the balance of unrecognized tax benefits

by $29.8 million.

Earliest tax years that remain subject to examination in the major

tax jurisdictions in which we operate:

Jurisdiction	Tax Year
United States ...........................................................................................	2021
New York State ........................................................................................	2001
New York City ..........................................................................................	2006
United Kingdom .......................................................................................	2022
Germany ...................................................................................................	2018
Hong Kong ...............................................................................................	2018
India ...........................................................................................................	2010