Note 21. Segment Reporting

We operate in two principal segments – Capital Markets and Asset Management. The Capital Markets segment includes our securities, commodities, futures and foreign exchange brokerage trading activities and investment banking, which is comprised of underwriting and financial advisory activities. The Capital Markets reportable segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management segment provides investment management services to investors in the U.S. and overseas.

Our reportable business segment information is prepared using the following methodologies:

 

•

Net revenues and expenses directly associated with each reportable business segment are included in determining earnings before taxes.

 

•

Net revenues and 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.

Our net revenues and expenses by segment are summarized below (in millions):

 

		Successor																				Predecessor
		Three Months Ended August 31, 2014				Nine Months Ended August 31, 2014				Three Months Ended August 31, 2013				Six Months Ended August 31, 2013								Three Months Ended February 28, 2013
Capital Markets:
Net revenues		$	828.5			$	2,423.2			$	515.3			$	1,149.9							$	807.6
Expenses		$	697.8			$	2,020.6			$	500.1			$	1,077.5							$	660.6
Asset Management:
Net revenues		$	14.8			$	42.1			$	16.4			$	40.2							$	10.9
Expenses		$	9.9			$	27.7			$	8.2			$	20.6							$	7.5
Total:
Net revenues		$	843.3			$	2,465.3			$	531.7			$	1,190.1							$	818.5
Expenses		$	707.7			$	2,048.3			$	508.3			$	1,098.1							$	668.1

The following table summarizes our total assets by segment at August 31, 2014 and November 30, 2013 (in millions):

 

		August 31, 2014				November 30, 2013
Segment assets:
Capital Markets		$	44,208.2			$	39,276.8
Asset Management			555.9				900.2
Total assets			44,764.1				40,177.0

Net Revenues by Geographic Region

Net revenues for the Capital Market 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 Asset Management, net revenues are allocated according to the location of the investment advisor. Net revenues by geographic region were as follows (in thousands):

 

																						Predecessor
		Three Months Ended August 31, 2014				Nine Months Ended August 31, 2014				Three Months Ended August 31, 2013				Six Months Ended August 31, 2013								Three Months Ended February 28, 2013
Americas (1)		$	661,738			$	1,893,723			$	362,240			$	884,386							$	663,588
Europe (2)			153,455				500,229				159,739				276,782								133,104
Asia			28,116				71,377				9,716				28,965								21,852
Net revenues		$	843,309			$	2,465,329			$	531,695			$	1,190,133							$	818,544

 

(1)	Substantially all relates to U.S. results.

(2)	Substantially all relates to U.K. results.