Fair Value Disclosures (Tables)

12 Months Ended

Nov. 30, 2017

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV of $20.2 million and $24.3 million at November 30, 2017 and 2016, respectively, by level within the fair value hierarchy (in thousands):

	November 30, 2017
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	1,801,453	$	57,091	$	22,009	$	—		$	1,880,553
Corporate debt securities	—		3,261,300		26,036		—			3,287,336
CDOs and CLOs	—		139,166		30,004		—			169,170
U.S. government and federal agency securities	1,269,230		39,443		—		—			1,308,673
Municipal securities	—		710,513		—		—			710,513
Sovereign obligations	1,381,552		1,035,907		—		—			2,417,459
Residential mortgage-backed securities	—		1,453,294		26,077		—			1,479,371
Commercial mortgage-backed securities	—		508,115		12,419		—			520,534
Other asset-backed securities	—		217,111		61,129		—			278,240
Loans and other receivables	—		1,620,581		47,304		—			1,667,885
Derivatives	160,168		3,248,586		9,295		(3,254,216		)	163,833
Investments at fair value	—		946		93,454		—			94,400
Total financial instruments owned, excluding Investments at fair value based on NAV	$	4,612,403	$	12,292,053	$	327,727	$	(3,254,216	)	$	13,977,967
Securities received as collateral	$	103	$	—	$	—	$	—		$	103
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,456,675	$	32,122	$	48	$	—		$	1,488,845
Corporate debt securities	—		1,688,825		522		—			1,689,347
U.S. government and federal agency securities	1,430,737		—		—		—			1,430,737
Sovereign obligations	1,216,643		956,992		—		—			2,173,635
Commercial mortgage-backed securities	—		—		105		—			105
Loans	—		1,148,824		3,486		—			1,152,310
Derivatives	247,919		3,399,239		16,041		(3,426,249		)	236,950
Total financial instruments sold, not yet purchased	$	4,351,974	$	7,226,002	$	20,202	$	(3,426,249	)	$	8,171,929
Short-term borrowings	$	—	$	23,324	$	—	$	—		$	23,324
Long-term debt	$	—	$	606,956	$	—	$	—		$	606,956
Obligation to return securities received as collateral	$	103	$	—	$	—	$	—		$	103

(1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.

	November 30, 2016
	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	1,742,463	$	90,662	$	21,739	$	—		$	1,854,864
Corporate debt securities	—		2,675,020		25,005		—			2,700,025
CDOs and CLOs	—		54,306		54,354		—			108,660
U.S. government and federal agency securities	2,389,397		56,726		—		—			2,446,123
Municipal securities	—		708,469		27,257		—			735,726
Sovereign obligations	1,432,556		990,492		—		—			2,423,048
Residential mortgage-backed securities	—		960,494		38,772		—			999,266
Commercial mortgage-backed securities	—		296,405		20,580		—			316,985
Other asset-backed securities	—		63,587		40,911		—			104,498
Loans and other receivables	—		1,557,233		81,872		—			1,639,105
Derivatives	3,825		4,606,278		6,429		(4,255,998		)	360,534
Investments at fair value	—		—		96,369		—			96,369
Total financial instruments owned, excluding Investments at fair value based on NAV	$	5,568,241	$	12,059,672	$	413,288	$	(4,255,998	)	$	13,785,203
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,577,405	$	16,806	$	313	$	—		$	1,594,524
Corporate debt securities	—		1,718,424		523		—			1,718,947
U.S. government and federal agency securities	976,497		—		—		—			976,497
Sovereign obligations	1,375,590		1,253,754		—		—			2,629,344
Loans	—		801,977		378		—			802,355
Derivatives	568		4,856,310		9,870		(4,229,213		)	637,535
Total financial instruments sold, not yet purchased	$	3,930,060	$	8,647,271	$	11,084	$	(4,229,213	)	$	8,359,202
Other secured financings	$	—	$	41,350	$	418	$	—		$	41,768
Long-term debt	$	—	$	248,856	$	—	$	—		$	248,856

(1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.

Investments Measured at Fair Value Based on Net Asset Value Per Share

The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands):

	November 30, 2017
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	33,176	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	417		—		—
Fund of Funds (4)	189		—		—
Equity Funds (5)	26,798		19,084		—
Multi-asset Funds (6)	154,805		—		—
Total	$	215,385	$	19,084

	November 30, 2016
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	34,446	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	772		—		—
Fund of Funds (4)	230		—		—
Equity Funds (5)	42,179		20,295		—
Multi-asset Funds (6)	133,190		—		—
Total	$	210,817	$	20,295

(1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements.

(2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At November 30, 2017 and 2016, approximately 1% and 2%, respectively, of the fair value of investments in this category are classified as being in liquidation.

(3) This category includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments. There are no redemption provisions.

(4) This category includes investments in fund of funds that invest in various private equity funds. The investments in this category are managed by us and have no redemption provisions. These investments are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received.

(5) At November 30, 2017 and 2016, the investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are expected to liquidate in one to six years.

(6) This category includes investments in hedge funds that invest long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At both November 30, 2017 and 2016, investments representing approximately 12% of the fair value of investments in this category are redeemable with 30 days prior written notice.

Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2017 (in thousands):

	Year Ended November 30, 2017
	Balance at November 30, 2016		Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at November 30, 2017		Change in unrealized gains/ (losses) relating to instruments still held at November 30, 2017 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	21,739	$	3,262		$	896		$	(1,623	)	$	52		$	—	$	(2,317	)	$	22,009	$	2,515
Corporate debt securities	25,005		(3,723		)	36,850			(34,077		)	(1,968		)	—		3,949			26,036		(3,768		)
CDOs and CLOs	54,354		(19,858		)	112,239			(110,907		)	(367		)	—		(5,457		)	30,004		(2,262		)
Municipal securities	27,257		(1,547		)	—			(25,710		)	—			—		—			—		—
RMBS	38,772		(10,817		)	6,805			(26,193		)	(115		)	—		17,625			26,077		(7,201		)
CMBS	20,580		(5,346		)	3,275			(5,263		)	(1,018		)	—		191			12,419		(6,976		)
Other ABS	40,911		(17,705		)	77,508			(8,613		)	(25,799		)	—		(5,173		)	61,129		(12,562		)
Loans and other receivables	81,872		24,794			63,768			(53,095		)	(34,622		)	—		(35,413		)	47,304		17,451
Investments at fair value	96,369		6,361			1,981			(10,157		)	(1,100		)	—		—			93,454		8,385
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	313	$	60		$	(373	)	$	48		$	—		$	—	$	—		$	48	$	—
Corporate debt securities	523		(1		)	—			—			—			—		—			522		1
CMBS	—		105			—			—			—			—		—			105		(105		)
Net derivatives (2)	3,441		(1,638		)	—			—			5,558			456		(1,071		)	6,746		(17,740		)
Loans	378		196			(385		)	2,485			—			—		812			3,486		(2,639		)
Other secured financings	418		(418		)	—			—			—			—		—			—		—

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2016 (in thousands):

	Year Ended November 30, 2016
	Balance at November 30, 2015			Total gains/ losses (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at November 30, 2016		Change in unrealized gains/ (losses) relating to instruments still held at November 30, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	40,906		$	(8,463	)	$	3,365	$	(49	)	$	(671	)	$	—	$	(13,349	)	$	21,739	$	291
Corporate debt securities	25,876			(16,230		)	27,242		(29,347		)	(7,223		)	—		24,687			25,005		(18,799		)
CDOs and CLOs	85,092			(14,918		)	52,316		(69,394		)	(2,750		)	—		4,008			54,354		(7,628		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
RMBS	70,263			(9,612		)	623		(12,249		)	(931		)	—		(9,322		)	38,772		(1,095		)
CMBS	14,326			(7,550		)	3,132		(2,024		)	(2,229		)	—		14,925			20,580		(7,243		)
Other ABS	42,925			(14,381		)	133,986		(102,952		)	(8,769		)	—		(9,898		)	40,911		(18,056		)
Loans and other receivables	189,289			(42,566		)	75,264		(69,262		)	(46,851		)	—		(24,002		)	81,872		(52,003		)
Investments at fair value	53,120			(13,278		)	26,228		(542		)	(1,107		)	—		31,948			96,369		(13,208		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—	$	313		$	(38	)	$	—	$	—		$	313	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (2)	(242		)	(1,760		)	—		11,101			31			2,067		(7,756		)	3,441		(6,458		)
Loans	10,469			—			—		378			—			—		(10,469		)	378		—
Other secured financings	544			(126		)	—		—			—			—		—			418		(126		)

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2015 (in thousands):

	Year Ended November 30, 2015
	Balance at November 30, 2014			Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at November 30, 2015			Change in unrealized gain/ (losses) relating to instruments still held at November 30, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,964		$	11,154		$	21,385		$	(6,391	)	$	—		$	—	$	(6,206	)	$	40,906		$	11,424
Corporate debt securities	22,766			(11,013		)	21,534			(14,636		)	—			—		7,225			25,876			(9,443		)
CDOs and CLOs	124,650			(66,332		)	104,998			(107,381		)	(5,754		)	—		34,911			85,092			(48,514		)
Municipal securities	—			10			—			—			(21,551		)	—		21,541			—			—
Sovereign obligations	—			47			1,032			(1,031		)	—			—		72			120			39
RMBS	82,557			(12,951		)	18,961			(31,762		)	(597		)	—		14,055			70,263			(4,498		)
CMBS	26,655			(3,813		)	3,480			(10,146		)	(6,861		)	—		5,011			14,326			(3,205		)
Other ABS	2,294			(990		)	42,922			(1,299		)	(2		)	—		—			42,925			(254		)
Loans and other receivables	97,258			(14,755		)	792,345			(576,536		)	(124,365		)	—		15,342			189,289			(16,802		)
Investments, at fair value	53,224			64,380			5,510			(124,852		)	(4,093		)	—		58,951			53,120			(388		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	223			(110		)	(6,804		)	6,691			—			—		—			—			—
Net derivatives (2)	(4,638		)	(7,310		)	(6,705		)	13,522			37			2,437		2,415			(242		)	4,754
Loans	14,450			(163		)	(2,059		)	229			—			—		(1,988		)	10,469			104
Other secured financings	30,825			—			—			—			(15,704		)	36,995		(51,572		)	544			—
Embedded conversion option	693			(693		)	—			—			—			—		—			—			693

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings.

(2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives.

Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements

The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category.

For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period.

November 30, 2017
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	18,109
Non-exchange-traded securities			Market approach	Price	$3-$75	$	33
				Underlying stock price	$6	—
			Comparable pricing	Comparable asset price	$7	—
Corporate debt securities	$	26,036	Convertible bond model	Discount rate/yield	8%	—
				Volatility	40%	—
			Market approach	Estimated recovery percentage	17%	—
				Price	$10	—
CDOs and CLOs	$	30,004	Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%-30%	26		%
				Discount rate/yield	3%-26%	12		%
			Scenario analysis	Estimated recovery percentage	8%-40%	22		%
RMBS	$	26,077	Discounted cash flows	Cumulative loss rate	3%-19%	10		%
				Duration (years)	2-4	3
				Discount rate/yield	6%-10%	8		%
CMBS	$	12,419	Discounted cash flows	Cumulative loss rate	8%-65%	44		%
				Duration (years)	1-3	2
				Discount rate/yield	2%-26%	12		%
			Scenario analysis	Estimated recovery percentage	26%-32%	28		%
				Price	$52-$56	$	54
Other ABS	$	61,129	Discounted cash flows	Cumulative loss rate	0%-33%	23		%
				Duration (years)	1-6	2
				Discount rate/yield	5%-39%	9		%
			Market approach	Price	$100	—
			Scenario analysis	Estimated recovery percentage	14%	—
Loans and other receivables	$	46,121	Market approach	Estimated recovery percentage	76%	—
				Price	$54-$100	$	95
			Scenario analysis	Estimated recovery percentage	13%-107%	78		%
Derivatives	$	9,295
Total return swaps			Market approach	Price	$101-$106	$	103
Interest rate swaps			Market approach	Credit spread	800 bps	—
Investments at fair value	$	77,423
Private equity securities			Market approach	Transaction level	$3-$250	$	172
				Price	$7	—
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	16,041
Equity options			Option model/default rate	Default probability	0%	—
Unfunded commitments			Market approach	Price	$99
Total return swaps			Market approach	Price	$101-$106	$	103
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Discount rate/yield	26%	—

November 30, 2016
Financial Instruments Owned:	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	19,799
Non-exchange-traded securities			Market approach	Underlying stock price	$3-$75	$	15
			Comparable pricing	Underlying stock price	$218	—
				Comparable asset price	$11	—
			Present value	Average silver production (tons per day)	666	—
Corporate debt securities	$	25,005	Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Transaction level	$30	—
CDOs and CLOs	$	33,016	Discounted cash flows	Constant prepayment rate	10%-20%	19		%
				Constant default rate	2%-4%	2		%
				Loss severity	25%-70%	40		%
				Yield	7%-17%	12		%
			Scenario analysis	Estimated recovery percentage	28%-38%	31		%
RMBS	$	38,772	Discounted cash flows	Constant prepayment rate	0%-11%	5		%
				Constant default rate	1%-7%	3		%
				Loss severity	35%-100%	62		%
				Yield	2%-10%	6		%
CMBS	$	20,580	Discounted cash flows	Yield	6%-11%	8		%
				Cumulative loss rate	5%-95%	39		%
Other ABS	$	40,911	Discounted cash flows	Constant prepayment rate	4%-20%	14		%
				Constant default rate	0%-31%	13		%
				Loss severity	0%-100%	90		%
				Yield	4%-17%	15		%
			Market approach	Price	$72	—
Loans and other receivables	$	54,347	Market approach	EBITDA multiple	3.3	—
				Discount rate/yield	2%-4%	3		%
				Transaction level	$0.42	—
			Present value	Average silver production (tons per day)	666	—
			Scenario analysis	Estimated recovery percentage	6%-50%	37		%
Derivatives	$	6,429
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Investments at fair value	$	42,907
Private equity securities			Market approach	Transaction level	$250	—
				Price	$25,815,720	—
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	9,870
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Unfunded commitments			Market approach	Discount rate/yield	4%	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	16%	—

Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk and Summary of Contractual Principal Exceeds Fair Value for Loans and Other Receivables

The following is a summary of gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on Long-term debt and Short-term borrowings measured at fair value under the fair value option (in thousands):

	Year Ended November 30,
	2017			2016			2015
Financial instruments owned:
Loans and other receivables	$	22,088		$	(68,812	)	$	(17,389	)
Financial instruments sold:
Loans	$	—		$	9		$	(162	)
Loan commitments	230			5,509			7,502
Long-term debt:
Changes in instrument specific credit risk (1)	$	(34,609	)	$	(10,745	)	$	—
Other changes in fair value (2)	47,291			30,995			—
Short-term borrowings:
Other changes in fair value (2)	$	(681	)	$	—		$	—

(1) Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax.

(2) Other changes in fair value are included in Principal transactions revenues in our Consolidated Statements of Earnings.

The following is a summary of the amount by which contractual principal exceeds fair value for loans and other receivables and long-term debt measured at fair value under the fair value option (in thousands):

	November 30,
	2017		2016
Financial instruments owned:
Loans and other receivables (1)	$	752,076	$	1,325,938
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	159,462		205,746
Long-term debt and short-term borrowings	32,839		20,202

(1) Interest income is recognized separately from other changes in fair value and is included in Interest revenues in our Consolidated Statements of Earnings.

(2) Amounts include loans and other receivables greater than 90 days past due by which contractual principal exceeds fair value of $38.7 million and $64.6 million at November 30, 2017 and 2016, respectively.

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

The following table presents those assets measured at fair value on a non-recurring basis for which the Company recognized a non-recurring fair value adjustment during the years ended November 30, 2017, 2016 and 2015 (in thousands):

	Carrying Value at November 30, 2017		Level 2		Level 3		Impairment Losses for the Year Ended November 30, 2017
Exchange ownership interests and registrations (1)	$	2,672	$	2,672	$	—	$	613

	Carrying Value at November 30, 2016		Level 2		Level 3		Impairment Losses for the Year Ended November 30, 2016
Exchange ownership interests and registrations (1)	$	2,716	$	2,716	$	—	$	1,284

	Carrying Value at November 30, 2015		Level 2		Level 3		Impairment Losses for the Year Ended November 30, 2015
Exchange ownership interests and registrations (1)	$	4,178	$	4,178	$	—	$	1,289

(1) Impairment losses of $0.6 million, $1.3 million and $1.3 million, were recognized in Other expenses, during the years ended November 30, 2017, 2016 and 2015, respectively, for exchange memberships, which represent ownership interests in market exchanges on which trading business is conducted, and registrations. The fair value of these exchange memberships is based on observed quoted sales prices for each individual membership. (See Note 10, Goodwill and Intangible Assets.) The intangible assets are recognized for the years ended November 30, 2017 and 2016, primarily in the Fixed income reporting unit, and for the year ended November 30, 2015, primarily in the Futures reporting unit. For further information on the exit of the Futures business, refer to Note 20, Exit Costs.