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Goodwill and Intangible Assets
 12 Months Ended
Nov. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
Goodwill attributed to our reportable business segments are as follows (in thousands):
 
November 30,
 
2019
 
2018
Investment Banking and Capital Markets (1)
$
1,640,201

 
$
1,638,778

Asset Management (1)
3,398

 
3,392

Total goodwill
$
1,643,599

 
$
1,642,170


(1)
Accumulated goodwill impairments related to the Investment Banking and Capital Markets business segment were $51.9 million at both December 1, 2019 and 2018, and goodwill prior to these impairments was $1,692.1 million and $1,690.7 million at December 1, 2019 and 2018, respectively. Accumulated goodwill impairments related to the Asset Management business segment were $2.1 million at both December 1, 2019 and 2018, and goodwill prior to these impairments was $5.5 million at both December 1, 2019 and 2018.
The following table is a summary of the changes to goodwill (in thousands):
 
Year Ended November 30,
 
2019
 
2018
Balance, at beginning of period
$
1,642,170

 
$
1,647,089

Translation adjustments
1,325

 
(5,319
)
Goodwill acquired during the period (1)
104

 
400

Balance, at end of period
$
1,643,599

 
$
1,642,170


(1)
Goodwill acquired in the year ended November 30, 2019 was in connection with our purchase of an entity in Australia and relates to our Investment Banking and Capital Markets business segment. Goodwill acquired in the year ended November 30, 2018 was in connection with our purchase of LIML and relates to our Asset Management business segment.
Goodwill Impairment Testing
A reporting unit is an operating segment or one level below an operating segment. The quantitative goodwill impairment test is performed at the level of the reporting unit and consists of two steps. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill.
Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit. The amount of tangible equity allocated to a reporting unit is based on our cash capital model deployed in managing our businesses, which seeks to approximate the capital a business would require if it were operating independently. Intangible assets are allocated to a reporting unit based on either specifically identifying a particular intangible asset as pertaining to a reporting unit or, if shared among reporting units, based on an assessment of the reporting unit’s benefit from the intangible asset in order to generate results.
Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using a market valuation method that incorporates price-to-earnings and price-to-book multiples of comparable public companies. In addition, as the fair values determined under the market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1, 2019.
Our annual goodwill impairment testing at August 1, 2019 did not indicate any goodwill impairment in any of our reporting units. Substantially all of our goodwill is allocated to our Investment Banking, Equities and Fixed Income reporting units, which are part of our Investment Banking and Capital Markets reportable business segment, for which the results of our assessment indicated that these reporting units had a fair value in excess of their carrying amounts based on current projections. At August 31, 2019, goodwill allocated to these reporting units is $1,640.2 million of total goodwill of $1,643.6 million.
Intangible Assets
Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2019 and 2018 (dollars in thousands):
 
November 30, 2019
 
Weighted average remaining lives (years)
 
Gross cost
 
Impairment losses
 
Accumulated amortization
 
Net carrying amount
 
Customer relationships
$
125,736

 
$
—

 
$
(67,257
)
 
$
58,479

 
9.9
Trade name
128,590

 
—

 
(24,800
)
 
103,790

 
28.3
Exchange and clearing organization membership interests and registrations
8,564

 
(291
)
 
—

 
8,273

 
N/A
Total
$
262,890

 
$
(291
)
 
$
(92,057
)
 
$
170,542

 
 
 
November 30, 2018
 
Weighted average remaining lives (years)
 
Gross cost
 
Disposals (1)
 
Impairment losses
 
Accumulated amortization
 
Intangible Assets Acquired (2)
 
Net carrying amount
 
Customer relationships
$
125,574

 
$
—

 
$
—

 
$
(58,892
)
 
$
—

 
$
66,682

 
10.6
Trade name
128,348

 
—

 
—

 
(21,086
)
 
—

 
107,262

 
29.3
Exchange and clearing organization membership interests and registrations
8,450

 
(93
)
 
(9
)
 
—

 
176

 
8,524

 
N/A
Total
$
262,372

 
$
(93
)
 
$
(9
)
 
$
(79,978
)
 
$
176

 
$
182,468

 
 
(1)
Activity is primarily related to the disposal of certain exchange membership interests in the Investment Banking and Capital Markets business segment due to the closing of a branch location in Dubai.
(2)
Intangible assets were acquired in connection with our purchase of LIML and relates to our Asset Management business segment.
We performed our annual impairment testing of intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2019. We elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization. A qualitative assessment was performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessment at August 1, 2019, 2018 and 2017, we recognized impairment losses on certain exchange membership interests and registrations. With regard to our qualitative assessment of the remaining indefinite-life intangible assets, based on our assessment of market conditions, the utilization of the assets and the replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired. In addition, we recognized an impairment loss during the year ended November 30, 2017 on certain membership interests that were not renewed.
Amortization Expense
For finite life intangible assets, aggregate amortization expense amounted to $11.9 million, $12.1 million and $11.9 million for the years ended November 30, 2019, 2018 and 2017, respectively. These expenses are included in Other expenses in our Consolidated Statements of Earnings.
The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands):
Year ending November 30, 2020
$
12,198

Year ending November 30, 2021
12,198

Year ending November 30, 2022
9,256

Year ending November 30, 2023
8,268

Year ending November 30, 2024
7,770