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Goodwill and Intangible Assets
 9 Months Ended
Aug. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
Nine Months Ended August 31, 2024
$ in thousandsInvestment Banking and Capital MarketsAsset ManagementTotal
Balance, at beginning of period$1,532,172 $315,684 $1,847,856 
Currency translation and other adjustments3,335 1,535 4,870 
Measurement period adjustment (1)— (28,346)(28,346)
Goodwill relating to acquisitions by Tessellis— 8,578 8,578 
Balance, at end of period$1,535,507 $297,451 $1,832,958 
(1)Includes a $27.0 million measurement period adjustment recorded during the first quarter of 2024 related to the OpNet acquisition. Refer to Note 4, Business Acquisitions for further information.
Nine Months Ended August 31, 2023
$ in thousandsInvestment Banking and Capital MarketsAsset ManagementTotal
Balance, at beginning of period$1,552,944 $183,170 $1,736,114 
Currency translation and other adjustments3,354 — 3,354 
Balance, at end of period$1,556,298 $183,170 $1,739,468 
The carrying values of goodwill by reporting unit at August 31, 2024 are as follows: $701.8 million in Investment Banking, $255.8 million in Equities and Wealth Management, $577.9 million in Fixed Income, $143.0 million in Asset Management and $154.5 million attributed to various individual other investments.
Goodwill Impairment Testing
The quantitative goodwill impairment test is performed at the level of the reporting unit. A reporting unit is an operating segment or one level below an operating segment. 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 an impairment loss is recognized for the amount by which the carrying value of the reporting unit exceeds the reporting unit's fair value. Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit.
We test goodwill allocated to our Investment Banking, Equities, Fixed Income and Asset Management reporting units annually on August 1 and test goodwill allocated to other individual
investments annually on November 30. Our annual goodwill impairment testing at August 1, 2024 did not indicate any goodwill impairment in any of our Investment Banking, Equities and Fixed Income reporting units, which are part of our Investment Banking and Capital Markets reportable segment and did not indicate any goodwill impairment in our Asset Management reporting unit. The results of our assessment indicated that each of these reporting units had a fair value in excess of their carrying amounts based on current projections.
Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using methodologies that include a market valuation method that incorporated price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows. Under the market valuation approach, the key assumptions are the selected multiples and our internally developed projections of future profitability, growth and return on equity for each reporting unit. The weight assigned to the multiples requires judgment in qualitatively and quantitatively evaluating the size, profitability and the nature of the business activities of the reporting units as compared to the comparable publicly-traded companies. In addition, as the fair values determined under the market valuation 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.
Intangible Assets
August 31, 2024Weighted Average Remaining Lives (Years)
$ in thousandsGross CostAssets Acquired (1)Impairment LossesAccumulated AmortizationNet Carrying Amount
Customer relationships$136,848 $27,628 $— $(103,756)$60,720 6.0
Trademarks and trade names147,321 8,730 — (43,944)112,107 21.6
Exchange and clearing organization membership interests and registrations8,769 — (10)— 8,759 N/A
Other52,533 27,318 — (22,093)57,758 4.3
Total$345,471 $63,676 $(10)$(169,793)$239,344 
(1)Includes a $39.3 million measurement period adjustment recorded during the first quarter of 2024 related to the OpNet acquisition. Refer to Note 4, Business Acquisitions for further information.
November 30, 2023Weighted Average Remaining Lives (Years)
$ in thousandsGross CostAssets Acquired (1)Impairment LossesAccumulated AmortizationNet Carrying Amount
Customer relationships $126,449 $9,801 $— $(93,966)$42,284 6.3
Trademarks and trade names127,899 18,513 — (39,340)107,072 23.5
Exchange and clearing organization membership interests and registrations7,405 1,390 (78)— 8,717 N/A
Other14,958 37,026 — (13,137)38,847 5.0
Total$276,711 $66,730 $(78)$(146,443)$196,920 
(1)Refer to Note 4, Business Acquisitions for further information.
At August 1, 2024, we performed our annual impairment testing of intangible assets with an indefinite useful life consisting of exchange and clearing organization membership interests and registrations. We utilized quantitative assessments 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 and qualitative assessments were performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessments, we recognized immaterial impairment losses on certain exchange membership interests and registrations. With regard to our qualitative assessments of the remaining indefinite life intangible assets, based on our assessments 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.
Amortization Expense
For finite life intangible assets, we recognized aggregate amortization expense of $8.2 million and $22.3 million for the three and nine months ended August 31, 2024, respectively, and $2.3 million and $7.0 million for the three and nine months ended August 31, 2023, respectively. These expenses are included in Depreciation and amortization.
Estimated future amortization expense for the next five fiscal years (in thousands):
Remainder of fiscal year 2024$9,720 
Year ending November 30, 202533,121 
Year ending November 30, 202633,083 
Year ending November 30, 202733,049 
Year ending November 30, 202832,806