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Segment Reporting
3 Months Ended
Feb. 29, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We operate in two reportable business segments: (1) Investment Banking and Capital Markets and (2) Asset Management. The Investment Banking and Capital Markets reportable business segment includes our securities, commodities, futures and foreign exchange capital markets activities and investment banking business, which is composed of financial advisory and underwriting activities. The Investment Banking and Capital Markets reportable business segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management reportable business segment provides investment management services to investors in the U.S. and overseas and invests capital in hedge funds, separately managed accounts and third-party asset managers.
Our reportable business segment information is prepared using the following methodologies:
Net revenues and non-interest expenses directly associated with each reportable business segment are included in determining earnings (losses) before income taxes.
Net revenues and non-interest expenses not directly associated with specific reportable business segments are allocated based on the most relevant measures applicable, including each reportable business segment’s net revenues, headcount and other factors.
Reportable business segment assets include an allocation of indirect corporate assets that have been fully allocated to our reportable business segments, generally based on each reportable business segment’s capital utilization.
Net revenues presented for our Investment Banking and Capital Markets reportable segment include allocations of interest income and interest expense as we assess the profitability of these businesses inclusive of the net interest revenue or expense associated with the respective activities, including the net interest cost of allocated long-term debt, which is a function of the mix of each business’s associated assets and liabilities and the related funding costs. During the quarter ended August 31, 2023, we refined our allocated net interest methodology to better reflect net interest expense across our business units based on use of capital. Historical periods have been recast to conform with the revised methodology.
Our net revenues, non-interest expenses and earnings from continuing operations before income taxes by reportable business segment are summarized below (in millions):
Three Months Ended 
February 29, 2024February 28, 2023
Investment Banking and Capital Markets:
Net revenues$1,451.3 $1,217.1 
Non-interest expenses1,296.3 1,035.1 
Earnings from continuing operations before income taxes155.0 182.0 
Asset Management:
Net revenues273.4 68.5 
Non-interest expenses221.7 89.3 
Earnings (losses) from continuing operations before income taxes51.7 (20.8)
Total of Reportable Business Segments:
Net revenues1,724.7 1,285.6 
Non-interest expenses1,518.0 1,124.4 
Earnings from continuing operations before income taxes206.7 161.2 
Reconciliation to consolidated amounts:
Net revenues13.5 (2.1)
Non-interest expenses— 1.1 
Earnings (losses) from continuing operations before income taxes (1)13.5 (3.2)
Total:
Net revenues1,738.2 1,283.5 
Non-interest expenses1,518.0 1,125.5 
Earnings from continuing operations before income taxes$220.2 $158.0 
(1)Management does not consider certain foreign currency transaction gains or losses, debt valuation adjustments on derivative contracts, gains and losses on investments held in deferred compensation or certain other immaterial corporate income and expense items in assessing the financial performance of operating businesses. Collectively, these items are included in the reconciliation of reportable business segment amounts to consolidated amounts.
The following table summarizes our total assets by reportable business segment (in millions):
February 29, 2024November 30, 2023
Investment Banking and Capital Markets$54,289.3 $51,776.9 
Asset Management6,643.7 6,128.3 
Total assets$60,933.0 $57,905.2 
Net Revenues by Geographic Region
Net revenues for the Investment Banking and Capital Markets reportable business segment are recorded in the geographic region in which the position was risk-managed or, in the case of investment banking, in which the senior coverage banker is located. For the Asset Management reportable business segment, net revenues are allocated according to the location of the investment advisor or the location of the invested capital. Net revenues by geographic region were as follows (in millions):
Three Months Ended 
February 29, 2024February 28, 2023
Americas (1)$1,307.8 $982.3 
Europe and the Middle East (2)331.8 217.9 
Asia-Pacific98.6 83.3 
Net revenues$1,738.2 $1,283.5 
(1)Primarily relates to U.S. results.
(2)Primarily relates to U.K. results.