Income Taxes (Tables)

12 Months Ended

Nov. 30, 2015

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



	Successor								Predecessor
	Year Ended November 30, 2015		Year Ended November 30, 2014			Nine Months Ended November 30, 2013			Three Months Ended February 28, 2013
Income tax expense	$	18,898	$	142,061		$	94,686		$	48,645
Stockholders’ equity, for compensation expense for tax purposes (in excess of)/less than amounts recognized for financial reporting purposes	$	5,935	$	(1,276	)	$	(2,873	)	$	17,965

Components of Provision for Income Tax Expense

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



	Successor								Predecessor
	Year Ended November 30, 2015			Year Ended November 30, 2014		Nine Months Ended November 30, 2013			Three Months Ended February 28, 2013
Current:
U.S. Federal	$	(45,007	)	$	4,335	$	50,089		$	22,936
U.S. state and local	(28,260		)	4,056		6,263			(3,176		)
Foreign	3,369			11,475		7,050			(1,950		)
	(69,898		)	19,866		63,402			17,810
Deferred:
U.S. Federal	74,085			87,293		25,262			17,392
U.S. state and local	22,811			27,181		8,868			9,761
Foreign	(8,100		)	7,721		(2,846		)	3,682
	88,796			122,195		31,284			30,835
	$	18,898		$	142,061	$	94,686		$	48,645

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 (in thousands):



	Successor															Predecessor
	Year Ended November 30, 2015					Year Ended November 30, 2014					Nine Months Ended November 30, 2013					Three Months Ended February 28, 2013
	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Computed expected income taxes	$	39,979		35.0	%	$	106,058		35.0	%	$	92,504		35.0	%	$	48,820		35.0	%
Increase (decrease) in income taxes resulting from:
State and city income taxes, net of Federal income tax benefit	(3,542		)	(3.1	)	20,304			6.7		9,835			3.7		4,280			3.1
Income allocated to Noncontrolling interest, not subject to tax	(628		)	(0.5	)	(1,190		)	(0.4	)	(2,946		)	(1.1	)	(3,553		)	(2.5	)
Foreign rate differential	(10,130		)	(8.9	)	(9,024		)	(2.9	)	(4,750		)	(1.8	)	(2,993		)	(2.2	)
Tax exempt income	(6,789		)	(5.9	)	(6,746		)	(2.2	)	(3,742		)	(1.4	)	(1,003		)	(0.7	)
Non deductible settlements	—			—		3,850			1.3		4,900			1.9		—			—
Valuation allowance related to Futures business	—			—		4,655			1.5		—			—		—			—
Goodwill impairment	—			—		13,619			4.5		—			—		—			—
Foreign tax credits	(7,240		)	(6.3	)	(3,149		)	(1.0	)	—			—		—			—
Non-deductible Bache Wind down Costs	3,225			2.8		—			—		—			—		—			—
Meals & entertainment	5,232			4.6		4,103			1.4		2,908			1.1		890			0.6
Other, net	(1,209		)	(1.2	)	9,581			3.0		(4,023		)	(1.6	)	2,204			1.6
Total income taxes	$	18,898		16.5	%	$	142,061		46.9	%	$	94,686		35.8	%	$	48,645		34.9	%

Roll Forward of Gross Unrecognized Tax Benefits

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



	Successor									Predecessor
	Year Ended November 30, 2015			Year Ended November 30, 2014			Nine Months Ended November 30, 2013			Three Months Ended February 28, 2013
Balance at beginning of period	$	126,662		$	126,844		$	129,010		$	110,539
Increases based on tax positions related to the current period	—			4,831			8,748			7,185
Increases based on tax positions related to prior periods	2,818			1,624			7,383			15,356
Decreases based on tax positions related to prior periods	(3,883		)	(1,709		)	(18,297		)	(4,070		)
Decreases related to settlements with taxing authorities	(17,695		)	(4,928		)	—			—
Balance at end of period	$	107,902		$	126,662		$	126,844		$	129,010

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, 2015			November 30, 2014
Deferred tax assets:
Compensation and benefits	$	253,291		$	302,072
Net operating loss	14,985			17,830
Long-term debt	95,765			140,685
Accrued expenses and other	106,136			89,273
Sub-total	470,177			549,860
Valuation allowance	(13,337		)	(13,069		)
Total deferred tax assets	456,840			536,791
Deferred tax liabilities:
Amortization of intangibles	103,560			97,268
Other	26,345			26,454
Total deferred tax liabilities	129,905			123,722
Net deferred tax asset, included in Other assets	$	326,935		$	413,069

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	2006
New Jersey	2010
New York State	2001
New York City	2003
United Kingdom	2014