Level 1: | Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. |
Level 2: | Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable at the reported date.\u00a0The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. |
Level 3: | Instruments that have little to no pricing observability at the reported date.\u00a0These financial instruments are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
(In thousands) | |||||||||||
Cash paid during the year for: | |||||||||||
Interest, net of amounts capitalized | $ | 1,563,152 | $ | 1,377,781 | $ | 1,120,191 | |||||
Income tax payments (refunds), net | $ | 24,587 | $ | 37,559 | $ | 15,361 |
Level 1: | Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. |
Level 2: | Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable at the reported date.\u00a0The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. |
Level 3: | Instruments that have little to no pricing observability at the reported date.\u00a0These financial instruments are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
(In thousands) | |||||||||||
Cash paid during the year for: | |||||||||||
Interest, net of amounts capitalized | $ | 1,563,152 | $ | 1,377,781 | $ | 1,120,191 | |||||
Income tax payments (refunds), net | $ | 24,587 | $ | 37,559 | $ | 15,361 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Cash paid for: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Interest, net of amounts capitalized | $ | 51,786 | $ | 57,813 | $ | 57,813 | |||||
Income tax payments (refunds), net | 10,796 | 32,576 | 1,440 | ||||||||
Non-cash investing activities: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investments contributed to subsidiary | $ | \u2014 | $ | \u2014 | $ | 25,328 | |||||
Dividends received from subsidiaries | 18,117 | 8,450,147 | 32,792 |
Eleven Months Ended November 30, | ||||||||
2018 | 2017 (Unaudited) | |||||||
Net revenues | $ | 3,764,034 | $ | 4,031,333 | ||||
Total expenses | 3,524,957 | 3,336,359 | ||||||
Income (loss) related to associated companies | 57,023 | (76,864 | ) | |||||
Income from continuing operations before income taxes | 296,100 | 618,110 | ||||||
Income tax provision | 19,008 | 195,550 | ||||||
Income from continuing operations | 277,092 | 422,560 | ||||||
Income from discontinued operations, including gain on disposal, net of taxes | 773,984 | 267,321 | ||||||
Net income attributable to the redeemable noncontrolling interests | (37,263 | ) | (78,506 | ) | ||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 1,022,318 | 610,277 | ||||||
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||
\u00a0\u00a0Income from continuing operations | $ | 0.82 | $ | 1.14 | ||||
\u00a0\u00a0Income from discontinued operations, including gain on disposal | 2.11 | 0.51 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net income | $ | 2.93 | $ | 1.65 | ||||
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||
\u00a0\u00a0Income from continuing operations | $ | 0.81 | $ | 1.13 | ||||
\u00a0\u00a0Income from discontinued operations, including gain on disposal | 2.09 | 0.50 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net income | $ | 2.90 | $ | 1.63 |
Eleven Months Ended November 30, | ||||||||
2018 | 2017 (Unaudited) | |||||||
Net revenues | $ | 3,764,034 | $ | 4,031,333 | ||||
Total expenses | 3,524,957 | 3,336,359 | ||||||
Income (loss) related to associated companies | 57,023 | (76,864 | ) | |||||
Income from continuing operations before income taxes | 296,100 | 618,110 | ||||||
Income tax provision | 19,008 | 195,550 | ||||||
Income from continuing operations | 277,092 | 422,560 | ||||||
Income from discontinued operations, including gain on disposal, net of taxes | 773,984 | 267,321 | ||||||
Net income attributable to the redeemable noncontrolling interests | (37,263 | ) | (78,506 | ) | ||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 1,022,318 | 610,277 | ||||||
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||
\u00a0\u00a0Income from continuing operations | $ | 0.82 | $ | 1.14 | ||||
\u00a0\u00a0Income from discontinued operations, including gain on disposal | 2.11 | 0.51 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net income | $ | 2.93 | $ | 1.65 | ||||
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||
\u00a0\u00a0Income from continuing operations | $ | 0.81 | $ | 1.13 | ||||
\u00a0\u00a0Income from discontinued operations, including gain on disposal | 2.09 | 0.50 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net income | $ | 2.90 | $ | 1.63 |
\u00a0 | November\u00a030, 2019 | ||||||||||||||||||
\u00a0 | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (1) | Total | ||||||||||||||
Assets: | |||||||||||||||||||
Trading assets, at fair value: | |||||||||||||||||||
Corporate equity securities | $ | 2,507,164 | $ | 218,403 | $ | 58,426 | $ | \u2014 | $ | 2,783,993 | |||||||||
Corporate debt securities | \u2014 | 2,472,245 | 7,490 | \u2014 | 2,479,735 | ||||||||||||||
Collateralized debt obligations and collateralized loan obligations | \u2014 | 124,225 | 28,788 | \u2014 | 153,013 | ||||||||||||||
U.S. government and federal agency securities | 2,101,624 | 158,618 | \u2014 | \u2014 | 2,260,242 | ||||||||||||||
Municipal securities | \u2014 | 742,326 | \u2014 | \u2014 | 742,326 | ||||||||||||||
Sovereign obligations | 1,330,026 | 1,405,827 | \u2014 | \u2014 | 2,735,853 | ||||||||||||||
Residential mortgage-backed securities | \u2014 | 1,069,066 | 17,740 | \u2014 | 1,086,806 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | 424,060 | 6,110 | \u2014 | 430,170 | ||||||||||||||
Other asset-backed securities | \u2014 | 303,847 | 42,563 | \u2014 | 346,410 | ||||||||||||||
Loans and other receivables | \u2014 | 2,460,551 | 114,080 | \u2014 | 2,574,631 | ||||||||||||||
Derivatives | 2,809 | 1,833,907 | 14,889 | (1,433,197 | ) | 418,408 | |||||||||||||
Investments at fair value | \u2014 | 32,688 | 205,412 | \u2014 | 238,100 | ||||||||||||||
FXCM term loan | \u2014 | \u2014 | 59,120 | \u2014 | 59,120 | ||||||||||||||
Total trading assets, excluding investments at fair value based on NAV | $ | 5,941,623 | $ | 11,245,763 | $ | 554,618 | $ | (1,433,197 | ) | $ | 16,308,807 | ||||||||
Securities purchased under agreements to resell | $ | \u2014 | $ | \u2014 | $ | 25,000 | $ | \u2014 | $ | 25,000 | |||||||||
Securities received as collateral | $ | 9,500 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 9,500 | |||||||||
Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Corporate equity securities | $ | 2,755,601 | $ | 7,438 | $ | 4,487 | $ | \u2014 | $ | 2,767,526 | |||||||||
Corporate debt securities | \u2014 | 1,471,142 | 340 | \u2014 | 1,471,482 | ||||||||||||||
U.S. government and federal agency securities | 1,851,981 | \u2014 | \u2014 | \u2014 | 1,851,981 | ||||||||||||||
Sovereign obligations | 1,363,475 | 941,065 | \u2014 | \u2014 | 2,304,540 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | \u2014 | 35 | \u2014 | 35 | ||||||||||||||
Loans | \u2014 | 1,600,228 | 9,463 | \u2014 | 1,609,691 | ||||||||||||||
Derivatives | 871 | 2,066,455 | 92,057 | (1,632,178 | ) | 527,205 | |||||||||||||
Total trading liabilities | $ | 5,971,928 | $ | 6,086,328 | $ | 106,382 | $ | (1,632,178 | ) | $ | 10,532,460 | ||||||||
Short-term borrowings | $ | \u2014 | $ | 20,981 | $ | \u2014 | $ | \u2014 | $ | 20,981 | |||||||||
Long-term debt | $ | \u2014 | $ | 735,216 | $ | 480,069 | $ | \u2014 | $ | 1,215,285 | |||||||||
Obligation to return securities received as collateral | $ | 9,500 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 9,500 |
\u00a0 | November\u00a030, 2018 | ||||||||||||||||||
\u00a0 | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (1) | Total | ||||||||||||||
Assets: | |||||||||||||||||||
Trading assets, at fair value: | |||||||||||||||||||
Corporate equity securities | $ | 2,497,045 | $ | 118,681 | $ | 52,192 | $ | \u2014 | $ | 2,667,918 | |||||||||
Corporate debt securities | \u2014 | 2,683,180 | 9,484 | \u2014 | 2,692,664 | ||||||||||||||
Collateralized debt obligations and collateralized loan obligations | \u2014 | 72,949 | 36,105 | \u2014 | 109,054 | ||||||||||||||
U.S. government and federal agency securities | 1,789,614 | 56,592 | \u2014 | \u2014 | 1,846,206 | ||||||||||||||
Municipal securities | \u2014 | 894,253 | \u2014 | \u2014 | 894,253 | ||||||||||||||
Sovereign obligations | 1,769,556 | 1,043,409 | \u2014 | \u2014 | 2,812,965 | ||||||||||||||
Residential mortgage-backed securities | \u2014 | 2,163,629 | 19,603 | \u2014 | 2,183,232 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | 819,406 | 10,886 | \u2014 | 830,292 | ||||||||||||||
Other asset-backed securities | \u2014 | 239,381 | 53,175 | \u2014 | 292,556 | ||||||||||||||
Loans and other receivables | \u2014 | 2,056,593 | 46,985 | \u2014 | 2,103,578 | ||||||||||||||
Derivatives | 34,841 | 2,539,943 | 5,922 | (2,413,931 | ) | 166,775 | |||||||||||||
Investments at fair value | \u2014 | \u2014 | 396,254 | \u2014 | 396,254 | ||||||||||||||
FXCM term loan | \u2014 | \u2014 | 73,150 | \u2014 | 73,150 | ||||||||||||||
Total trading assets, excluding investments at fair value based on NAV | $ | 6,091,056 | $ | 12,688,016 | $ | 703,756 | $ | (2,413,931 | ) | $ | 17,068,897 | ||||||||
Available for sale securities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
U.S. government securities | $ | 1,072,856 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 1,072,856 | |||||||||
Residential mortgage-backed securities | \u2014 | 210,518 | \u2014 | \u2014 | 210,518 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | 15,642 | \u2014 | \u2014 | 15,642 | ||||||||||||||
Other asset-backed securities | \u2014 | 110,870 | \u2014 | \u2014 | 110,870 | ||||||||||||||
Total available for sale securities | $ | 1,072,856 | $ | 337,030 | $ | \u2014 | $ | \u2014 | $ | 1,409,886 | |||||||||
Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Corporate equity securities | $ | 1,685,071 | $ | 1,444 | $ | \u2014 | $ | \u2014 | $ | 1,686,515 | |||||||||
Corporate debt securities | \u2014 | 1,505,618 | 522 | \u2014 | 1,506,140 | ||||||||||||||
U.S. government and federal agency securities | 1,384,295 | \u2014 | \u2014 | \u2014 | 1,384,295 | ||||||||||||||
Sovereign obligations | 1,735,242 | 661,095 | \u2014 | \u2014 | 2,396,337 | ||||||||||||||
Loans | \u2014 | 1,371,630 | 6,376 | \u2014 | 1,378,006 | ||||||||||||||
Derivatives | 26,473 | 3,586,694 | 27,536 | (2,513,050 | ) | 1,127,653 | |||||||||||||
Total trading liabilities | $ | 4,831,081 | $ | 7,126,481 | $ | 34,434 | $ | (2,513,050 | ) | $ | 9,478,946 | ||||||||
Long-term debt | $ | \u2014 | $ | 485,425 | $ | 200,745 | $ | \u2014 | $ | 686,170 |
(1) | Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. |
\u2022 | Exchange-Traded Equity Securities:\u00a0 Exchange-traded equity securities are measured based on quoted closing exchange prices, which are generally obtained from external pricing services, and are categorized within Level 1 of the fair value hierarchy, otherwise they are categorized within Level 2 of the fair value hierarchy. To the extent these securities are actively traded, valuation adjustments are not applied. |
\u2022 | Non-Exchange-Traded Equity Securities:\u00a0 Non-exchange-traded equity securities are measured primarily using broker quotations, pricing data from external pricing services and prices observed from recently executed market transactions and are categorized within Level 2 of the fair value hierarchy.\u00a0Where such information is not available, non-exchange-traded |
\u2022 | Equity Warrants:\u00a0 Non-exchange-traded equity warrants are measured primarily using pricing data from external pricing services, prices observed from recently executed market transactions and broker quotations and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange-traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. |
\u2022 | Investment Grade Corporate Bonds:\u00a0 Investment grade corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Investment grade corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy.\u00a0If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions.\u00a0Investment grade corporate bonds measured using alternative valuation techniques are categorized within Level 2 or Level 3 of the fair value hierarchy and are a limited portion of our investment grade corporate bonds. |
\u2022 | High Yield Corporate and Convertible Bonds:\u00a0 A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size.\u00a0Where pricing data is less observable, valuations are categorized within Level 3 of the fair value hierarchy and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer's subsequent financing or recapitalization, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers. |
\u2022 | U.S. Treasury Securities:\u00a0 U.S. Treasury securities are measured based on quoted market prices obtained from external pricing services and categorized within Level 1 of the fair value hierarchy. |
\u2022 | U.S. Agency Debt Securities:\u00a0 Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. |
\u2022 | Agency Residential Mortgage-Backed Securities:\u00a0 Agency residential mortgage-backed securities include mortgage pass-through securities (fixed and adjustable rate), collateralized mortgage obligations and principal-only and interest-only (including inverse interest-only) securities. Agency residential mortgage-backed securities are generally measured using recent transactions, pricing data from external pricing services or expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral and are categorized within Level 2 or Level 3 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. |
\u2022 | Non-Agency Residential Mortgage-Backed Securities:\u00a0 The fair value of non-agency residential mortgage-backed securities is determined primarily using discounted cash flow methodologies and securities are categorized within Level 2 or Level 3 of the fair value hierarchy based on the observability and significance of the pricing inputs used.\u00a0Performance attributes of the underlying mortgage loans are evaluated to estimate pricing inputs, such as prepayment rates, default rates and the severity of credit losses. Attributes of the underlying mortgage loans that affect the pricing inputs include, but are not limited to, weighted average coupon; average and maximum loan size; loan-to-value; credit scores; documentation type; geographic location; weighted average loan age; originator; servicer; historical prepayment, default and loss severity experience of the mortgage loan pool; and delinquency rate.\u00a0Yield curves used in the discounted cash flow models are based on observed market prices for comparable securities and published interest rate data to estimate market yields. In addition, broker quotes, where available, are also referenced to compare prices primarily on interest-only securities. |
\u2022 | Agency Commercial Mortgage-Backed Securities:\u00a0 Government National Mortgage Association (\"GNMA\") project loan bonds are measured based on inputs corroborated from and benchmarked to observed prices of recent securitization transactions of similar securities with adjustments incorporating an evaluation of various factors, including prepayment speeds, default rates and cash flow structures, as well as the likelihood of pricing levels in the current market environment. Federal National Mortgage Association (\"FNMA\") Delegated Underwriting and Servicing (\"DUS\") mortgage-backed securities are generally measured by using prices observed from recently executed market transactions to estimate market-clearing spread levels for purposes of estimating fair value.\u00a0GNMA project loan bonds and FNMA DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy. |
\u2022 | Non-Agency Commercial Mortgage-Backed Securities:\u00a0 Non-agency commercial mortgage-backed securities are measured using pricing data obtained from external pricing services, prices observed from recently executed market transactions or based on expected cash flow models that incorporate underlying loan collateral characteristics and performance. Non-agency commercial mortgage-backed securities are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability of the underlying inputs. |
\u2022 | Corporate Loans:\u00a0 Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market consensus pricing service quotations. Where available, market price quotations from external pricing services are reviewed to ensure they are supported by transaction data.\u00a0Corporate loans categorized within Level 3 of the fair value hierarchy are measured based on price quotations that are considered to be less transparent, market prices for debt securities of the same creditor and estimates of future cash flows incorporating assumptions regarding creditor default and recovery rates and consideration of the issuer's capital structure. |
\u2022 | Participation Certificates in Agency Residential Loans: Valuations of participation certificates in agency residential loans are based on observed market prices of recently executed purchases and sales of similar loans and data provider pricing. The loan |
\u2022 | Project Loans and Participation Certificates in GNMA Project and Construction Loans:\u00a0 Valuations of participation certificates in GNMA project and construction loans are based on inputs corroborated from and benchmarked to observed prices of recent securitizations with similar underlying loan collateral to derive an implied spread.\u00a0Securitization prices are adjusted to estimate the fair value of the loans to account for the arbitrage that is realized at the time of securitization. The measurements are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions. |
\u2022 | Consumer Loans and Funding Facilities:\u00a0 Consumer and small business whole loans and related funding facilities are valued based on observed market transactions and incorporating valuation inputs including, but not limited to, delinquency and default rates, prepayment rates, borrower characteristics, loan risk grades and loan age. These assets are categorized within Level 2 or Level 3 of the fair value hierarchy. |
\u2022 | Escrow and Claim Receivables:\u00a0 Escrow and claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers.\u00a0Escrow and claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. |
\u2022 | Listed Derivative Contracts:\u00a0 Listed derivative contracts that are actively traded are measured based on quoted exchange prices, broker quotes or vanilla option valuation models, such as Black-Scholes, using observable valuation inputs from the principal market or consensus pricing services. Exchange quotes and/or valuation inputs are generally obtained from external vendors and pricing services. Broker quotes are validated directly through observable and tradeable quotes. Listed derivative contracts that use unadjusted exchange close prices are generally categorized within Level 1 of the fair value hierarchy. All other listed derivative contracts are generally categorized within Level 2 of the fair value hierarchy. |
\u2022 | Over-the-Counter (\"OTC\") Derivative Contracts:\u00a0 OTC derivative contracts are generally valued using models, whose inputs reflect assumptions that we believe market participants would use in valuing the derivative in a current transaction.\u00a0Where available, valuation inputs are calibrated from observable market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy. |
\u2022 | Oil Futures Derivatives: Vitesse Energy Finance uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse Energy Finance accounts for the derivative instruments at fair value, which are classified as either Level 1 or Level 2 within the fair value hierarchy. Fair values classified as Level 1 are measured based on quoted closing exchange prices obtained from external pricing services and Level 2 are determined under the income valuation technique using an option-pricing model that is based on directly or indirectly observable inputs. |
\u00a0 | Fair Value (1) | Unfunded Commitments | |||||
November\u00a030, 2019 | |||||||
Equity Long/Short Hedge Funds (2) | $ | 291,593 | $ | \u2014 | |||
Equity Funds (3) | 44,576 | 14,621 | |||||
Commodity Fund (4) | 16,025 | \u2014 | |||||
Multi-asset Funds (5) | 234,583 | \u2014 | |||||
Other Funds (6) | 157 | \u2014 | |||||
Total | $ | 586,934 | $ | 14,621 | |||
November\u00a030, 2018 | |||||||
Equity Long/Short Hedge Funds (2) | $ | 86,788 | $ | \u2014 | |||
Equity Funds (3) | 40,070 | 20,996 | |||||
Commodity Fund (4) | 10,129 | \u2014 | |||||
Multi-asset Funds (5) | 256,972 | \u2014 | |||||
Other Funds (6) | 400 | \u2014 | |||||
Total | $ | 394,359 | $ | 20,996 |
(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, 2019 and 2018, approximately 94% and 0%, respectively, of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At November 30, 2019 and 2018, 6% and 17%, respectively, of these investments are redeemable with 60 days prior written notice. Approximately 82% of the November\u00a030, 2018 balance was redeemed during the twelve months ended November 30, 2019. |
(3) | The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies. 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 nine years.\u00a0 |
(4) | This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. |
(5) | 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 November 30, 2019 and 2018, investments representing approximately 5% and 15%, respectively, of the fair value of investments in this category are redeemable with 30 days prior written notice. |
(6) | This category includes investments in a fund that invests 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 and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by Jefferies Group and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. |
Twelve Months Ended November 30, 2019 | |||||||||||||||||||||||||||||||||||
\u00a0 | Balance, November 30, 2018 | Total gains (losses) (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into (out of) Level 3 | Balance, November 30, 2019 | Changes in unrealized gains/losses included in earnings relating to instruments still held at November 30, 2019 (1) | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||||||||||
Corporate equity securities | $ | 52,192 | $ | (11,407 | ) | $ | 69,065 | $ | (28,159 | ) | $ | (18,208 | ) | $ | \u2014 | $ | (5,057 | ) | $ | 58,426 | $ | (13,848 | ) | ||||||||||||
Corporate debt securities | 9,484 | (4,860 | ) | 8,900 | (13,854 | ) | (379 | ) | \u2014 | 8,199 | 7,490 | (6,176 | ) | ||||||||||||||||||||||
CDOs and CLOs | 36,105 | (514 | ) | 49,658 | (38,147 | ) | (12,494 | ) | \u2014 | (5,820 | ) | 28,788 | (2,330 | ) | |||||||||||||||||||||
Residential mortgage-backed securities | 19,603 | (1,669 | ) | 1,954 | (2,472 | ) | (152 | ) | \u2014 | 476 | 17,740 | (530 | ) | ||||||||||||||||||||||
Commercial mortgage-backed securities | 10,886 | (2,888 | ) | 206 | (2,346 | ) | (5,317 | ) | \u2014 | 5,569 | 6,110 | (2,366 | ) | ||||||||||||||||||||||
Other asset-backed securities | 53,175 | 433 | 104,097 | (73,335 | ) | (51,374 | ) | \u2014 | 9,567 | 42,563 | (98 | ) | |||||||||||||||||||||||
Loans and other receivables | 46,985 | (4,507 | ) | 106,965 | (48,350 | ) | (5,788 | ) | \u2014 | 18,775 | 114,080 | (2,321 | ) | ||||||||||||||||||||||
Investments at fair value | 396,254 | (183,480 | ) | 11,236 | (28,749 | ) | \u2014 | \u2014 | 10,151 | 205,412 | (180,629 | ) | |||||||||||||||||||||||
Investment in FXCM | 73,150 | (8,139 | ) | 1,500 | \u2014 | (7,391 | ) | \u2014 | \u2014 | 59,120 | (8,139 | ) | |||||||||||||||||||||||
Securities purchased under agreements to resell | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 25,000 | \u2014 | 25,000 | \u2014 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||||||||||||||
Corporate equity securities | $ | \u2014 | $ | (2,649 | ) | $ | (4,322 | ) | $ | 11,458 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 4,487 | $ | 1,928 | |||||||||||||||
Corporate debt securities | 522 | (381 | ) | (457 | ) | \u2014 | (524 | ) | \u2014 | 1,180 | 340 | 383 | |||||||||||||||||||||||
Commercial mortgage-backed securities | \u2014 | 35 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 35 | 35 | ||||||||||||||||||||||||||
Loans | 6,376 | (1,382 | ) | (2,573 | ) | 6,494 | \u2014 | \u2014 | 548 | 9,463 | 1,382 | ||||||||||||||||||||||||
Net derivatives (2) | 21,614 | (21,452 | ) | (4,323 | ) | 36,144 | 2,227 | \u2014 | 42,958 | 77,168 | 12,098 | ||||||||||||||||||||||||
Long-term debt (1) | 200,745 | (18,662 | ) | \u2014 | \u2014 | (11,250 | ) | 348,275 | (39,039 | ) | 480,069 | 29,656 |
(1) | Realized and unrealized gains (losses) are primarily reported in Principal transactions revenues in the Consolidated Statements of Operations. Changes in instrument-specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. Changes in unrealized gains (losses) included in other comprehensive income (loss) for instruments still held at November\u00a030, 2019 were losses of $11.0 million. |
(2) | Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. |
\u2022 | Loans and other receivables of $27.4 million, other asset-backed securities of $12.1 million, investments at fair value of $10.2 million, corporate debt securities of $8.9 million, commercial mortgage-backed securities of $5.6 million and CDOs and CLOs of $3.0 million due to reduced pricing transparency. |
\u2022 | CDOs and CLOs of $8.8 million, loans and other receivables of $8.6 million, corporate equity securities of $6.0 million and other asset-backed securities of $2.6 million due to greater pricing transparency supporting classification into Level 2. |
Eleven Months Ended November 30, 2018 | |||||||||||||||||||||||||||||||||||
\u00a0 | Balance, December 31, 2017 | Total gains (losses) (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into (out of) Level 3 | Balance, November 30, 2018 | Changes in unrealized gains (losses) relating to instruments still held at November 30, 2018 (1) | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||||||||||
Corporate equity securities | $ | 22,270 | $ | 24,914 | $ | 31,669 | $ | (22,759 | ) | $ | (3,977 | ) | $ | \u2014 | $ | 75 | $ | 52,192 | $ | 23,665 | |||||||||||||||
Corporate debt securities | 26,036 | (439 | ) | 10,352 | (23,364 | ) | (1,679 | ) | \u2014 | (1,422 | ) | 9,484 | (2,606 | ) | |||||||||||||||||||||
CDOs and CLOS | 42,184 | (16,258 | ) | 356,650 | (353,330 | ) | (10,247 | ) | \u2014 | 17,106 | 36,105 | (9,495 | ) | ||||||||||||||||||||||
Residential mortgage- backed securities | 26,077 | (6,970 | ) | 3,118 | (12,816 | ) | (513 | ) | \u2014 | 10,707 | 19,603 | 521 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 12,419 | (2,186 | ) | 1,436 | (471 | ) | (16,624 | ) | \u2014 | 16,312 | 10,886 | (4,000 | ) | ||||||||||||||||||||||
Other asset-backed securities | 61,129 | (9,934 | ) | 706,846 | (677,220 | ) | (27,641 | ) | \u2014 | (5 | ) | 53,175 | (5,283 | ) | |||||||||||||||||||||
Loans and other receivables | 47,304 | (5,137 | ) | 149,228 | (130,832 | ) | (15,311 | ) | \u2014 | 1,733 | 46,985 | (8,457 | ) | ||||||||||||||||||||||
Investments at fair value | 329,944 | 76,636 | 9,798 | (17,570 | ) | \u2014 | \u2014 | (2,554 | ) | 396,254 | 76,042 | ||||||||||||||||||||||||
Investment in FXCM | 72,800 | 18,616 | \u2014 | \u2014 | (18,266 | ) | \u2014 | \u2014 | 73,150 | 7,723 | |||||||||||||||||||||||||
Liabilities: | \u00a0 | ||||||||||||||||||||||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||||||||||||||
Corporate equity securities | $ | 48 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | (48 | ) | $ | \u2014 | $ | \u2014 | ||||||||||||||||
Corporate debt securities | 522 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 522 | \u2014 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | 105 | (105 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |||||||||||||||||||||||||
Loans | 3,486 | 84 | (4,626 | ) | 7,432 | \u2014 | \u2014 | \u2014 | 6,376 | (28 | ) | ||||||||||||||||||||||||
Net derivatives (2) | 6,746 | (3,237 | ) | (17 | ) | 14,920 | (1,335 | ) | \u2014 | 4,537 | 21,614 | (646 | ) | ||||||||||||||||||||||
Long-term debt (1) | \u2014 | (30,347 | ) | \u2014 | \u2014 | \u2014 | 84,860 | 146,232 | 200,745 | 10,951 |
(1) | Realized and unrealized gains (losses) are primarily reported in Principal transactions revenues in the Consolidated Statements of Operations. Changes in instrument-specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. Changes in unrealized gains (losses) included in other comprehensive income (loss) for instruments still held at November\u00a030, 2018 were gains of $19.4 million. |
(2) | Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. |
\u2022 | Commercial mortgage-backed securities of $16.3 million, residential mortgage-backed securities of $15.3 million and CDOs and CLOs of $17.3 million due to reduced pricing transparency. |
\u2022 | Residential mortgage-backed securities of $4.6 million, corporate debt securities of $3.6 million and corporate equity securities of $2.9 million due to greater pricing transparency supporting classification into Level 2. |
Twelve Months Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||
\u00a0 | Balance, December 31, 2016 | Total gains (losses) (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into (out of) Level 3 | Balance, December 31, 2017 | Changes in unrealized gains (losses) relating to instruments still held at December 31, 2017 (1) | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||||||||||
Corporate equity securities | $ | 21,739 | $ | 3,353 | $ | 896 | $ | (1,623 | ) | $ | 52 | $ | \u2014 | $ | (2,147 | ) | $ | 22,270 | $ | 2,606 | |||||||||||||||
Corporate debt securities | 25,005 | (3,723 | ) | 36,850 | (34,077 | ) | (1,968 | ) | \u2014 | 3,949 | 26,036 | (3,768 | ) | ||||||||||||||||||||||
CDOs and CLOs | 54,354 | (27,238 | ) | 112,239 | (101,226 | ) | (367 | ) | \u2014 | 4,422 | 42,184 | (20,262 | ) | ||||||||||||||||||||||
Municipal securities | 27,257 | (1,547 | ) | \u2014 | (25,710 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 38,772 | (10,817 | ) | 6,805 | (26,193 | ) | (115 | ) | \u2014 | 17,625 | 26,077 | (7,201 | ) | ||||||||||||||||||||||
Commercial mortgage-backed securities | 20,580 | (5,346 | ) | 3,275 | (5,263 | ) | (1,018 | ) | \u2014 | 191 | 12,419 | (6,976 | ) | ||||||||||||||||||||||
Other asset-backed securities | 40,911 | (17,705 | ) | 77,508 | (8,613 | ) | (25,799 | ) | \u2014 | (5,173 | ) | 61,129 | (12,562 | ) | |||||||||||||||||||||
Loans and other receivables | 81,872 | 24,794 | 63,768 | (53,095 | ) | (34,622 | ) | \u2014 | (35,413 | ) | 47,304 | 17,451 | |||||||||||||||||||||||
Investments at fair value | 314,359 | 20,975 | 18,528 | (22,818 | ) | (1,100 | ) | \u2014 | \u2014 | 329,944 | 22,999 | ||||||||||||||||||||||||
Investment in FXCM | 164,500 | 23,161 | \u2014 | \u2014 | (114,861 | ) | \u2014 | \u2014 | 72,800 | 1,070 | |||||||||||||||||||||||||
Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||
Corporate equity securities | $ | 313 | $ | 60 | $ | (373 | ) | $ | 48 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 48 | $ | \u2014 | ||||||||||||||||
Corporate debt securities | 523 | (1 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 522 | 1 | |||||||||||||||||||||||||
Commercial mortgage-backed securities | \u2014 | 105 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 105 | (105 | ) | |||||||||||||||||||||||||
Loans | 378 | 196 | (385 | ) | 2,485 | \u2014 | \u2014 | 812 | 3,486 | (2,639 | ) | ||||||||||||||||||||||||
Net derivatives (2) | 3,441 | (1,638 | ) | \u2014 | \u2014 | 5,558 | 456 | (1,071 | ) | 6,746 | (17,740 | ) | |||||||||||||||||||||||
Other secured financings | 418 | (418 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
(1) | Realized and unrealized gains (losses) are reported in Principal transactions revenues in the Consolidated Statements of Operations. |
(2) | Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. |
\u2022 | Residential mortgage-backed securities of $19.6 million and corporate debt securities of $8.3 million due to a lack of observable market transactions. |
\u2022 | Loans and other receivables of $40.9 million due to greater pricing transparency supporting classification into Level 2. |
November\u00a030, 2019 | ||||||||||||||||
Financial Instruments Owned | Fair Value (in thousands) | Valuation \u00a0Technique | Significant Unobservable Input(s) | Input/Range | Weighted Average | |||||||||||
Corporate equity securities | $ | 29,017 | \u00a0 | \u00a0 | ||||||||||||
Non-exchange traded securities | \u00a0 | Market approach | Price | $1 | to | $140 | $55 | |||||||||
Underlying stock price | $3 | to | $5 | $4 | ||||||||||||
Corporate debt securities | $ | 7,490 | Scenario analysis | Estimated\u00a0recovery percentage | 23 | % | to | 85% | 46 | % | ||||||
Volatility | 44% | \u2014 | ||||||||||||||
Credit spread | 750 | \u2014 | ||||||||||||||
Underlying stock price | \u00a30.4 | \u2014 | ||||||||||||||
CDOs and CLOs | $ | 28,788 | Discounted cash flows | Constant prepayment rate | 20% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Constant default rate | 1 | % | to | 2% | 2 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Loss severity | 25 | % | to | 37% | 29 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 12 | % | to | 21% | 15 | % | |||||||
Scenario analysis | Estimated\u00a0recovery percentage | 3.25 | % | to | 36.5% | 25 | % | |||||||||
Residential mortgage-backed securities | $ | 17,740 | Discounted cash flows | Cumulative loss rate | 2% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 6.3 years | \u2014 | |||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 3% | \u2014 | |||||||||||
Commercial mortgage-backed securities | $ | 6,110 | Discounted cash flows | Cumulative loss rate | 7.3% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 0.2 years | \u2014 | |||||||||||
Discount rate/yield | 85% | \u2014 | ||||||||||||||
Scenario analysis | Estimated\u00a0recovery percentage | 44% | \u2014 | |||||||||||||
Other asset-backed securities | $ | 42,563 | Discounted cash flows | Cumulative loss rate | 7 | % | to | 31% | 16 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 0.5 years | to | 3 years | 1.5 years | |||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 7 | % | to | 15% | 11 | % | |||||||
Loans and other receivables | $ | 112,574 | Market approach | Price | $36 | to | $100 | $90 | ||||||||
\u00a0 | \u00a0 | Scenario analysis | Estimated\u00a0recovery percentage | 87 | % | to | 104% | 99 | % | |||||||
Discounted cash flows | Term based on the pay off (years) | 0 months | to | 0.1 years | 0.1 years | |||||||||||
Derivatives | $ | 13,826 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Interest rate swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Basis points upfront | 0 | to | 16 | 6 | ||||||||||
Unfunded commitments | Price | $88 | \u2014 | |||||||||||||
Equity options | Volatility benchmarking | Volatility | 45% | \u2014 | ||||||||||||
Investments at fair value | $ | 157,504 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Private equity securities | Market approach | Price | $8 | to | $250 | $80 | ||||||||||
Scenario analysis | Discount rate/yield | 19 | % | to | 21% | 20 | % | |||||||||
Revenue growth | 0% | \u2014 | ||||||||||||||
Investment in FXCM | $ | 59,120 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Term loan | Discounted cash flows | Term based on the pay off (years) | 0 months | to | 1.2 years | 1.2 years | ||||||||||
Securities purchased under agreements to resell | $ | 25,000 | Market approach | Spread to 6 month LIBOR | 500 | \u2014 | ||||||||||
Duration (years) | 1.5 years | \u2014 | ||||||||||||||
Trading Liabilities | ||||||||||||||||
Corporate equity securities | $ | 4,487 | Market approach | Transaction level | $1 | \u2014 | ||||||||||
Loans | $ | 9,463 | Market approach | Price | $50 | to | $100 | $88 | ||||||||
Scenario analysis | Estimated\u00a0recovery percentage | 1% | \u2014 | |||||||||||||
Derivatives | $ | 92,057 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Equity options | Volatility benchmarking | Volatility | 21 | % | to | 61% | 43 | % | ||||||||
Interest rate swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Basis points upfront | 0 | to | 22 | 13 | ||||||||||
Cross currency swaps | Basis points upfront | 2 | \u2014 | |||||||||||||
Unfunded commitments | Price | $88 | \u2014 | |||||||||||||
Long-term debt | $ | 480,069 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Structured notes | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $84 | to | $108 | $96 | ||||||||||
Price | \u20ac74 | to | \u20ac103 | \u20ac91 |
November\u00a030, 2018 | ||||||||||||||||
Financial Instruments Owned | Fair Value (in thousands) | Valuation \u00a0Technique | Significant Unobservable Input(s) | Input/Range | Weighted Average | |||||||||||
Corporate equity securities | $ | 43,644 | \u00a0 | \u00a0 | ||||||||||||
Non-exchange traded securities | \u00a0 | Market approach | Price | $1 | to | $75 | $12 | |||||||||
Transaction level | $47 | \u2014 | ||||||||||||||
Corporate debt securities | $ | 9,484 | Market approach | Estimated\u00a0recovery percentage | 46% | \u2014 | ||||||||||
Transaction level | $80 | \u2014 | ||||||||||||||
CDOs and CLOs | $ | 36,105 | Discounted cash flows | Constant prepayment rate | 10 | % | to | 20% | 18 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Constant default rate | 1 | % | to | 2% | 2 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Loss severity | 25 | % | to | 30% | 26 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 11 | % | to | 16% | 14 | % | |||||||
Scenario analysis | Estimated\u00a0recovery percentage | 2 | % | to | 41% | 23 | % | |||||||||
Residential mortgage-backed securities | $ | 19,603 | Discounted cash flows | Cumulative loss rate | 4% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 13 years | \u2014 | |||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 3% | \u2014 | |||||||||||
Loss severity | 0% | \u2014 | ||||||||||||||
\u00a0\u00a0\u00a0\u00a0Market approach | Price | $100 | \u2014 | |||||||||||||
Commercial mortgage-backed securities | $ | 9,444 | Discounted cash flows | Cumulative loss rate | 8 | % | to | 85% | 45 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 1 year | to | 3 years | 1 year | |||||||||
Discount rate/yield | 2 | % | to | 15% | 6 | % | ||||||||||
Loss severity | 64% | \u2014 | ||||||||||||||
Scenario analysis | Estimated\u00a0recovery percentage | 26% | \u2014 | |||||||||||||
Price | $49 | \u2014 | ||||||||||||||
Other asset-backed securities | $ | 53,175 | Discounted cash flows | Cumulative loss rate | 12 | % | to | 30% | 22 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 1 year | to | 2 years | 1 year | |||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 6 | % | to | 12% | 8 | % | |||||||
\u00a0\u00a0\u00a0\u00a0Market approach | Price | $100 | \u2014 | |||||||||||||
Loans and other receivables | $ | 46,078 | Market approach | Price | $50 | to | $100 | $96 | ||||||||
\u00a0 | \u00a0 | Scenario analysis | Estimated\u00a0recovery percentage | 13 | % | to | 117% | 105 | % | |||||||
Derivatives | $ | 4,602 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Total return swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $97 | \u2014 | ||||||||||||
Investments at fair value | $ | 368,231 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Private equity securities | Market approach | Price | $3 | to | $250 | $108 | ||||||||||
Transaction level | $169 | \u2014 | ||||||||||||||
Scenario analysis | Discount rate/yield | 20% | \u2014 | |||||||||||||
Revenue growth | 0% | \u2014 | ||||||||||||||
Contingent claims analysis | Volatility | 25 | % | to | 35% | 30 | % | |||||||||
Duration (years) | 4 years | \u2014 | ||||||||||||||
Investment in FXCM | $ | 73,150 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Term loan | Discounted cash flows | Term based on the pay off (years) | 0 months | to | 0.3 years | 0.3 years | ||||||||||
Trading Liabilities | ||||||||||||||||
Loans | $ | 6,376 | Market approach | Price | $50 | to | $101 | $74 | ||||||||
Derivatives | $ | 27,536 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Equity options | Option model/default rate | \u00a0\u00a0\u00a0Default probability | 0% | \u2014 | ||||||||||||
Volatility benchmarking | Volatility | 39 | % | to | 62% | 50 | % | |||||||||
Interest rate swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $20 | \u2014 | ||||||||||||
Total return swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $97 | \u2014 | ||||||||||||
Long-term debt | $ | 200,745 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Structured notes | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $78 | to | $94 | $86 | ||||||||||
Price | \u20ac68 | to | \u20ac110 | \u20ac96 |
\u2022 | Corporate equity securities, corporate debt securities, loans and other receivables, certain derivatives, residential mortgage-backed securities, other asset-backed securities, private equity securities, securities purchased under agreements to resell and structured notes using a market approach valuation technique. A significant increase (decrease) in the transaction level of a corporate equity securities, corporate debt securities and private equity securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the price of the private equity securities, non-exchange-traded securities, total return swaps, interest rate swaps, unfunded commitments, residential mortgage-backed securities, other asset-backed securities, loans and other receivables or structured notes would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the underlying stock price of the corporate equity securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the estimated recovery rates of the cash flow outcomes underlying the corporate debt securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the yield or duration, in isolation, of securities purchased under agreements to resell would result in a significantly lower (higher) fair value measurement. Depending on whether we are a receiver or (payer) of basis points upfront, a significant increase in basis points would result in a significant increase (decrease) in the fair value measurement of cross currency and interest rate swaps. |
\u2022 | Loans and other receivables, CDOs and CLOs, commercial mortgage-backed securities, corporate debt and private equity securities using scenario analysis. A significant increase (decrease) in the possible recovery rates of the cash flow outcomes underlying the financial instrument would result in a significantly higher (lower) fair value measurement for the financial instrument. A significant increase (decrease) in the price of the underlying assets of the financial instruments would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the volatility of the underlying stock price would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the credit spread of the financial instrument would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in the discount rate/yield underlying the investment would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in the revenue growth underlying the investment would result in a significantly higher (lower) fair value measurement. |
\u2022 | CDOs and CLOs, residential mortgage-backed securities, commercial mortgage-backed securities, other asset-backed securities and loans and other receivables using a discounted cash flow valuation technique. A significant increase (decrease) in isolation in the constant default rate, loss severity or cumulative loss rate would result in a significantly lower (higher) fair value measurement. The impact of changes in the constant prepayment rate and duration would have differing impacts depending on the capital structure and type of security. A significant increase (decrease) in the discount rate/security yield would result in a significantly lower (higher) fair value measurement. |
\u2022 | Derivative equity options using an option/default rate model.\u00a0A significant increase (decrease) in default probability would result in a significantly lower (higher) fair value measurement. |
\u2022 | Derivative equity options using volatility benchmarking. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement. |
\u2022 | Investments at fair value using contingent claims analysis. A significant increase (decrease) in volatility would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in duration would result in a significantly lower (higher) fair value measurement. |
\u2022 | FXCM term loan using a discounted cash flow valuation technique. A significant increase (decrease) in term based on the time to pay off the loan would result in a lower (higher) fair value measurement. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Trading Assets: | |||||||||||
Loans and other receivables | $ | (2,072 | ) | $ | (3,856 | ) | $ | 22,088 | |||
Trading Liabilities: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Loans | 656 | (46 | ) | \u2014 | |||||||
Loan commitments | (1,089 | ) | (739 | ) | 230 | ||||||
Long-term debt: | |||||||||||
Changes in instrument specific credit risk (1) | (20,332 | ) | 38,064 | (34,609 | ) | ||||||
Other changes in fair value (2) | (25,144 | ) | 48,748 | 47,291 | |||||||
Short-term borrowings: | |||||||||||
Changes in instrument specific credit risk (1) | 114 | \u2014 | \u2014 | ||||||||
Other changes in fair value (2) | (863 | ) | \u2014 | (681 | ) |
(1) | Changes in instrument specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of taxes. |
(2) | Other changes in fair value are included within Principal transactions revenues in the Consolidated Statements of Operations. |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Trading Assets: | |||||||
Loans and other receivables (1) | $ | 1,546,516 | $ | 961,554 | |||
Loans and other receivables on nonaccrual status and/or 90 days or greater \u00a0\u00a0past due (1) (2) | 197,215 | 158,392 | |||||
Long-term debt and short-term borrowings | 74,408 | 114,669 |
(1) | Interest income is recognized separately from other changes in fair value and is included in Interest income in the Consolidated Statements of Operations. |
(2) | Amounts include loans and other receivables 90 days or greater past due by which contractual principal exceeds fair value of $22.2 million and $20.5 million at November 30, 2019 and 2018, respectively. |
\u00a0 | November\u00a030, 2019 | ||||||||||||||||||
\u00a0 | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (1) | Total | ||||||||||||||
Assets: | |||||||||||||||||||
Trading assets, at fair value: | |||||||||||||||||||
Corporate equity securities | $ | 2,507,164 | $ | 218,403 | $ | 58,426 | $ | \u2014 | $ | 2,783,993 | |||||||||
Corporate debt securities | \u2014 | 2,472,245 | 7,490 | \u2014 | 2,479,735 | ||||||||||||||
Collateralized debt obligations and collateralized loan obligations | \u2014 | 124,225 | 28,788 | \u2014 | 153,013 | ||||||||||||||
U.S. government and federal agency securities | 2,101,624 | 158,618 | \u2014 | \u2014 | 2,260,242 | ||||||||||||||
Municipal securities | \u2014 | 742,326 | \u2014 | \u2014 | 742,326 | ||||||||||||||
Sovereign obligations | 1,330,026 | 1,405,827 | \u2014 | \u2014 | 2,735,853 | ||||||||||||||
Residential mortgage-backed securities | \u2014 | 1,069,066 | 17,740 | \u2014 | 1,086,806 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | 424,060 | 6,110 | \u2014 | 430,170 | ||||||||||||||
Other asset-backed securities | \u2014 | 303,847 | 42,563 | \u2014 | 346,410 | ||||||||||||||
Loans and other receivables | \u2014 | 2,460,551 | 114,080 | \u2014 | 2,574,631 | ||||||||||||||
Derivatives | 2,809 | 1,833,907 | 14,889 | (1,433,197 | ) | 418,408 | |||||||||||||
Investments at fair value | \u2014 | 32,688 | 205,412 | \u2014 | 238,100 | ||||||||||||||
FXCM term loan | \u2014 | \u2014 | 59,120 | \u2014 | 59,120 | ||||||||||||||
Total trading assets, excluding investments at fair value based on NAV | $ | 5,941,623 | $ | 11,245,763 | $ | 554,618 | $ | (1,433,197 | ) | $ | 16,308,807 | ||||||||
Securities purchased under agreements to resell | $ | \u2014 | $ | \u2014 | $ | 25,000 | $ | \u2014 | $ | 25,000 | |||||||||
Securities received as collateral | $ | 9,500 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 9,500 | |||||||||
Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Corporate equity securities | $ | 2,755,601 | $ | 7,438 | $ | 4,487 | $ | \u2014 | $ | 2,767,526 | |||||||||
Corporate debt securities | \u2014 | 1,471,142 | 340 | \u2014 | 1,471,482 | ||||||||||||||
U.S. government and federal agency securities | 1,851,981 | \u2014 | \u2014 | \u2014 | 1,851,981 | ||||||||||||||
Sovereign obligations | 1,363,475 | 941,065 | \u2014 | \u2014 | 2,304,540 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | \u2014 | 35 | \u2014 | 35 | ||||||||||||||
Loans | \u2014 | 1,600,228 | 9,463 | \u2014 | 1,609,691 | ||||||||||||||
Derivatives | 871 | 2,066,455 | 92,057 | (1,632,178 | ) | 527,205 | |||||||||||||
Total trading liabilities | $ | 5,971,928 | $ | 6,086,328 | $ | 106,382 | $ | (1,632,178 | ) | $ | 10,532,460 | ||||||||
Short-term borrowings | $ | \u2014 | $ | 20,981 | $ | \u2014 | $ | \u2014 | $ | 20,981 | |||||||||
Long-term debt | $ | \u2014 | $ | 735,216 | $ | 480,069 | $ | \u2014 | $ | 1,215,285 | |||||||||
Obligation to return securities received as collateral | $ | 9,500 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 9,500 |
\u00a0 | November\u00a030, 2018 | ||||||||||||||||||
\u00a0 | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (1) | Total | ||||||||||||||
Assets: | |||||||||||||||||||
Trading assets, at fair value: | |||||||||||||||||||
Corporate equity securities | $ | 2,497,045 | $ | 118,681 | $ | 52,192 | $ | \u2014 | $ | 2,667,918 | |||||||||
Corporate debt securities | \u2014 | 2,683,180 | 9,484 | \u2014 | 2,692,664 | ||||||||||||||
Collateralized debt obligations and collateralized loan obligations | \u2014 | 72,949 | 36,105 | \u2014 | 109,054 | ||||||||||||||
U.S. government and federal agency securities | 1,789,614 | 56,592 | \u2014 | \u2014 | 1,846,206 | ||||||||||||||
Municipal securities | \u2014 | 894,253 | \u2014 | \u2014 | 894,253 | ||||||||||||||
Sovereign obligations | 1,769,556 | 1,043,409 | \u2014 | \u2014 | 2,812,965 | ||||||||||||||
Residential mortgage-backed securities | \u2014 | 2,163,629 | 19,603 | \u2014 | 2,183,232 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | 819,406 | 10,886 | \u2014 | 830,292 | ||||||||||||||
Other asset-backed securities | \u2014 | 239,381 | 53,175 | \u2014 | 292,556 | ||||||||||||||
Loans and other receivables | \u2014 | 2,056,593 | 46,985 | \u2014 | 2,103,578 | ||||||||||||||
Derivatives | 34,841 | 2,539,943 | 5,922 | (2,413,931 | ) | 166,775 | |||||||||||||
Investments at fair value | \u2014 | \u2014 | 396,254 | \u2014 | 396,254 | ||||||||||||||
FXCM term loan | \u2014 | \u2014 | 73,150 | \u2014 | 73,150 | ||||||||||||||
Total trading assets, excluding investments at fair value based on NAV | $ | 6,091,056 | $ | 12,688,016 | $ | 703,756 | $ | (2,413,931 | ) | $ | 17,068,897 | ||||||||
Available for sale securities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
U.S. government securities | $ | 1,072,856 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 1,072,856 | |||||||||
Residential mortgage-backed securities | \u2014 | 210,518 | \u2014 | \u2014 | 210,518 | ||||||||||||||
Commercial mortgage-backed securities | \u2014 | 15,642 | \u2014 | \u2014 | 15,642 | ||||||||||||||
Other asset-backed securities | \u2014 | 110,870 | \u2014 | \u2014 | 110,870 | ||||||||||||||
Total available for sale securities | $ | 1,072,856 | $ | 337,030 | $ | \u2014 | $ | \u2014 | $ | 1,409,886 | |||||||||
Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||
Corporate equity securities | $ | 1,685,071 | $ | 1,444 | $ | \u2014 | $ | \u2014 | $ | 1,686,515 | |||||||||
Corporate debt securities | \u2014 | 1,505,618 | 522 | \u2014 | 1,506,140 | ||||||||||||||
U.S. government and federal agency securities | 1,384,295 | \u2014 | \u2014 | \u2014 | 1,384,295 | ||||||||||||||
Sovereign obligations | 1,735,242 | 661,095 | \u2014 | \u2014 | 2,396,337 | ||||||||||||||
Loans | \u2014 | 1,371,630 | 6,376 | \u2014 | 1,378,006 | ||||||||||||||
Derivatives | 26,473 | 3,586,694 | 27,536 | (2,513,050 | ) | 1,127,653 | |||||||||||||
Total trading liabilities | $ | 4,831,081 | $ | 7,126,481 | $ | 34,434 | $ | (2,513,050 | ) | $ | 9,478,946 | ||||||||
Long-term debt | $ | \u2014 | $ | 485,425 | $ | 200,745 | $ | \u2014 | $ | 686,170 |
\u00a0 | Fair Value (1) | Unfunded Commitments | |||||
November\u00a030, 2019 | |||||||
Equity Long/Short Hedge Funds (2) | $ | 291,593 | $ | \u2014 | |||
Equity Funds (3) | 44,576 | 14,621 | |||||
Commodity Fund (4) | 16,025 | \u2014 | |||||
Multi-asset Funds (5) | 234,583 | \u2014 | |||||
Other Funds (6) | 157 | \u2014 | |||||
Total | $ | 586,934 | $ | 14,621 | |||
November\u00a030, 2018 | |||||||
Equity Long/Short Hedge Funds (2) | $ | 86,788 | $ | \u2014 | |||
Equity Funds (3) | 40,070 | 20,996 | |||||
Commodity Fund (4) | 10,129 | \u2014 | |||||
Multi-asset Funds (5) | 256,972 | \u2014 | |||||
Other Funds (6) | 400 | \u2014 | |||||
Total | $ | 394,359 | $ | 20,996 |
(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, 2019 and 2018, approximately 94% and 0%, respectively, of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At November 30, 2019 and 2018, 6% and 17%, respectively, of these investments are redeemable with 60 days prior written notice. Approximately 82% of the November\u00a030, 2018 balance was redeemed during the twelve months ended November 30, 2019. |
(3) | The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies. 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 nine years.\u00a0 |
(4) | This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. |
(5) | 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 November 30, 2019 and 2018, investments representing approximately 5% and 15%, respectively, of the fair value of investments in this category are redeemable with 30 days prior written notice. |
Eleven Months Ended November 30, 2018 | |||||||||||||||||||||||||||||||||||
\u00a0 | Balance, December 31, 2017 | Total gains (losses) (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into (out of) Level 3 | Balance, November 30, 2018 | Changes in unrealized gains (losses) relating to instruments still held at November 30, 2018 (1) | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||||||||||
Corporate equity securities | $ | 22,270 | $ | 24,914 | $ | 31,669 | $ | (22,759 | ) | $ | (3,977 | ) | $ | \u2014 | $ | 75 | $ | 52,192 | $ | 23,665 | |||||||||||||||
Corporate debt securities | 26,036 | (439 | ) | 10,352 | (23,364 | ) | (1,679 | ) | \u2014 | (1,422 | ) | 9,484 | (2,606 | ) | |||||||||||||||||||||
CDOs and CLOS | 42,184 | (16,258 | ) | 356,650 | (353,330 | ) | (10,247 | ) | \u2014 | 17,106 | 36,105 | (9,495 | ) | ||||||||||||||||||||||
Residential mortgage- backed securities | 26,077 | (6,970 | ) | 3,118 | (12,816 | ) | (513 | ) | \u2014 | 10,707 | 19,603 | 521 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 12,419 | (2,186 | ) | 1,436 | (471 | ) | (16,624 | ) | \u2014 | 16,312 | 10,886 | (4,000 | ) | ||||||||||||||||||||||
Other asset-backed securities | 61,129 | (9,934 | ) | 706,846 | (677,220 | ) | (27,641 | ) | \u2014 | (5 | ) | 53,175 | (5,283 | ) | |||||||||||||||||||||
Loans and other receivables | 47,304 | (5,137 | ) | 149,228 | (130,832 | ) | (15,311 | ) | \u2014 | 1,733 | 46,985 | (8,457 | ) | ||||||||||||||||||||||
Investments at fair value | 329,944 | 76,636 | 9,798 | (17,570 | ) | \u2014 | \u2014 | (2,554 | ) | 396,254 | 76,042 | ||||||||||||||||||||||||
Investment in FXCM | 72,800 | 18,616 | \u2014 | \u2014 | (18,266 | ) | \u2014 | \u2014 | 73,150 | 7,723 | |||||||||||||||||||||||||
Liabilities: | \u00a0 | ||||||||||||||||||||||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||||||||||||||
Corporate equity securities | $ | 48 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | (48 | ) | $ | \u2014 | $ | \u2014 | ||||||||||||||||
Corporate debt securities | 522 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 522 | \u2014 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | 105 | (105 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |||||||||||||||||||||||||
Loans | 3,486 | 84 | (4,626 | ) | 7,432 | \u2014 | \u2014 | \u2014 | 6,376 | (28 | ) | ||||||||||||||||||||||||
Net derivatives (2) | 6,746 | (3,237 | ) | (17 | ) | 14,920 | (1,335 | ) | \u2014 | 4,537 | 21,614 | (646 | ) | ||||||||||||||||||||||
Long-term debt (1) | \u2014 | (30,347 | ) | \u2014 | \u2014 | \u2014 | 84,860 | 146,232 | 200,745 | 10,951 |
(1) | Realized and unrealized gains (losses) are primarily reported in Principal transactions revenues in the Consolidated Statements of Operations. Changes in instrument-specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. Changes in unrealized gains (losses) included in other comprehensive income (loss) for instruments still held at November\u00a030, 2018 were gains of $19.4 million. |
Twelve Months Ended November 30, 2019 | |||||||||||||||||||||||||||||||||||
\u00a0 | Balance, November 30, 2018 | Total gains (losses) (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into (out of) Level 3 | Balance, November 30, 2019 | Changes in unrealized gains/losses included in earnings relating to instruments still held at November 30, 2019 (1) | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||||||||||
Corporate equity securities | $ | 52,192 | $ | (11,407 | ) | $ | 69,065 | $ | (28,159 | ) | $ | (18,208 | ) | $ | \u2014 | $ | (5,057 | ) | $ | 58,426 | $ | (13,848 | ) | ||||||||||||
Corporate debt securities | 9,484 | (4,860 | ) | 8,900 | (13,854 | ) | (379 | ) | \u2014 | 8,199 | 7,490 | (6,176 | ) | ||||||||||||||||||||||
CDOs and CLOs | 36,105 | (514 | ) | 49,658 | (38,147 | ) | (12,494 | ) | \u2014 | (5,820 | ) | 28,788 | (2,330 | ) | |||||||||||||||||||||
Residential mortgage-backed securities | 19,603 | (1,669 | ) | 1,954 | (2,472 | ) | (152 | ) | \u2014 | 476 | 17,740 | (530 | ) | ||||||||||||||||||||||
Commercial mortgage-backed securities | 10,886 | (2,888 | ) | 206 | (2,346 | ) | (5,317 | ) | \u2014 | 5,569 | 6,110 | (2,366 | ) | ||||||||||||||||||||||
Other asset-backed securities | 53,175 | 433 | 104,097 | (73,335 | ) | (51,374 | ) | \u2014 | 9,567 | 42,563 | (98 | ) | |||||||||||||||||||||||
Loans and other receivables | 46,985 | (4,507 | ) | 106,965 | (48,350 | ) | (5,788 | ) | \u2014 | 18,775 | 114,080 | (2,321 | ) | ||||||||||||||||||||||
Investments at fair value | 396,254 | (183,480 | ) | 11,236 | (28,749 | ) | \u2014 | \u2014 | 10,151 | 205,412 | (180,629 | ) | |||||||||||||||||||||||
Investment in FXCM | 73,150 | (8,139 | ) | 1,500 | \u2014 | (7,391 | ) | \u2014 | \u2014 | 59,120 | (8,139 | ) | |||||||||||||||||||||||
Securities purchased under agreements to resell | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 25,000 | \u2014 | 25,000 | \u2014 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||||||||||||||||||
Corporate equity securities | $ | \u2014 | $ | (2,649 | ) | $ | (4,322 | ) | $ | 11,458 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 4,487 | $ | 1,928 | |||||||||||||||
Corporate debt securities | 522 | (381 | ) | (457 | ) | \u2014 | (524 | ) | \u2014 | 1,180 | 340 | 383 | |||||||||||||||||||||||
Commercial mortgage-backed securities | \u2014 | 35 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 35 | 35 | ||||||||||||||||||||||||||
Loans | 6,376 | (1,382 | ) | (2,573 | ) | 6,494 | \u2014 | \u2014 | 548 | 9,463 | 1,382 | ||||||||||||||||||||||||
Net derivatives (2) | 21,614 | (21,452 | ) | (4,323 | ) | 36,144 | 2,227 | \u2014 | 42,958 | 77,168 | 12,098 | ||||||||||||||||||||||||
Long-term debt (1) | 200,745 | (18,662 | ) | \u2014 | \u2014 | (11,250 | ) | 348,275 | (39,039 | ) | 480,069 | 29,656 |
(1) | Realized and unrealized gains (losses) are primarily reported in Principal transactions revenues in the Consolidated Statements of Operations. Changes in instrument-specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. Changes in unrealized gains (losses) included in other comprehensive income (loss) for instruments still held at November\u00a030, 2019 were losses of $11.0 million. |
Twelve Months Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||
\u00a0 | Balance, December 31, 2016 | Total gains (losses) (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into (out of) Level 3 | Balance, December 31, 2017 | Changes in unrealized gains (losses) relating to instruments still held at December 31, 2017 (1) | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Trading assets: | |||||||||||||||||||||||||||||||||||
Corporate equity securities | $ | 21,739 | $ | 3,353 | $ | 896 | $ | (1,623 | ) | $ | 52 | $ | \u2014 | $ | (2,147 | ) | $ | 22,270 | $ | 2,606 | |||||||||||||||
Corporate debt securities | 25,005 | (3,723 | ) | 36,850 | (34,077 | ) | (1,968 | ) | \u2014 | 3,949 | 26,036 | (3,768 | ) | ||||||||||||||||||||||
CDOs and CLOs | 54,354 | (27,238 | ) | 112,239 | (101,226 | ) | (367 | ) | \u2014 | 4,422 | 42,184 | (20,262 | ) | ||||||||||||||||||||||
Municipal securities | 27,257 | (1,547 | ) | \u2014 | (25,710 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 38,772 | (10,817 | ) | 6,805 | (26,193 | ) | (115 | ) | \u2014 | 17,625 | 26,077 | (7,201 | ) | ||||||||||||||||||||||
Commercial mortgage-backed securities | 20,580 | (5,346 | ) | 3,275 | (5,263 | ) | (1,018 | ) | \u2014 | 191 | 12,419 | (6,976 | ) | ||||||||||||||||||||||
Other asset-backed securities | 40,911 | (17,705 | ) | 77,508 | (8,613 | ) | (25,799 | ) | \u2014 | (5,173 | ) | 61,129 | (12,562 | ) | |||||||||||||||||||||
Loans and other receivables | 81,872 | 24,794 | 63,768 | (53,095 | ) | (34,622 | ) | \u2014 | (35,413 | ) | 47,304 | 17,451 | |||||||||||||||||||||||
Investments at fair value | 314,359 | 20,975 | 18,528 | (22,818 | ) | (1,100 | ) | \u2014 | \u2014 | 329,944 | 22,999 | ||||||||||||||||||||||||
Investment in FXCM | 164,500 | 23,161 | \u2014 | \u2014 | (114,861 | ) | \u2014 | \u2014 | 72,800 | 1,070 | |||||||||||||||||||||||||
Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||
Trading liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||
Corporate equity securities | $ | 313 | $ | 60 | $ | (373 | ) | $ | 48 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 48 | $ | \u2014 | ||||||||||||||||
Corporate debt securities | 523 | (1 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 522 | 1 | |||||||||||||||||||||||||
Commercial mortgage-backed securities | \u2014 | 105 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 105 | (105 | ) | |||||||||||||||||||||||||
Loans | 378 | 196 | (385 | ) | 2,485 | \u2014 | \u2014 | 812 | 3,486 | (2,639 | ) | ||||||||||||||||||||||||
Net derivatives (2) | 3,441 | (1,638 | ) | \u2014 | \u2014 | 5,558 | 456 | (1,071 | ) | 6,746 | (17,740 | ) | |||||||||||||||||||||||
Other secured financings | 418 | (418 | ) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
(1) | Realized and unrealized gains (losses) are reported in Principal transactions revenues in the Consolidated Statements of Operations. |
November\u00a030, 2019 | ||||||||||||||||
Financial Instruments Owned | Fair Value (in thousands) | Valuation \u00a0Technique | Significant Unobservable Input(s) | Input/Range | Weighted Average | |||||||||||
Corporate equity securities | $ | 29,017 | \u00a0 | \u00a0 | ||||||||||||
Non-exchange traded securities | \u00a0 | Market approach | Price | $1 | to | $140 | $55 | |||||||||
Underlying stock price | $3 | to | $5 | $4 | ||||||||||||
Corporate debt securities | $ | 7,490 | Scenario analysis | Estimated\u00a0recovery percentage | 23 | % | to | 85% | 46 | % | ||||||
Volatility | 44% | \u2014 | ||||||||||||||
Credit spread | 750 | \u2014 | ||||||||||||||
Underlying stock price | \u00a30.4 | \u2014 | ||||||||||||||
CDOs and CLOs | $ | 28,788 | Discounted cash flows | Constant prepayment rate | 20% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Constant default rate | 1 | % | to | 2% | 2 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Loss severity | 25 | % | to | 37% | 29 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 12 | % | to | 21% | 15 | % | |||||||
Scenario analysis | Estimated\u00a0recovery percentage | 3.25 | % | to | 36.5% | 25 | % | |||||||||
Residential mortgage-backed securities | $ | 17,740 | Discounted cash flows | Cumulative loss rate | 2% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 6.3 years | \u2014 | |||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 3% | \u2014 | |||||||||||
Commercial mortgage-backed securities | $ | 6,110 | Discounted cash flows | Cumulative loss rate | 7.3% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 0.2 years | \u2014 | |||||||||||
Discount rate/yield | 85% | \u2014 | ||||||||||||||
Scenario analysis | Estimated\u00a0recovery percentage | 44% | \u2014 | |||||||||||||
Other asset-backed securities | $ | 42,563 | Discounted cash flows | Cumulative loss rate | 7 | % | to | 31% | 16 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 0.5 years | to | 3 years | 1.5 years | |||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 7 | % | to | 15% | 11 | % | |||||||
Loans and other receivables | $ | 112,574 | Market approach | Price | $36 | to | $100 | $90 | ||||||||
\u00a0 | \u00a0 | Scenario analysis | Estimated\u00a0recovery percentage | 87 | % | to | 104% | 99 | % | |||||||
Discounted cash flows | Term based on the pay off (years) | 0 months | to | 0.1 years | 0.1 years | |||||||||||
Derivatives | $ | 13,826 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Interest rate swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Basis points upfront | 0 | to | 16 | 6 | ||||||||||
Unfunded commitments | Price | $88 | \u2014 | |||||||||||||
Equity options | Volatility benchmarking | Volatility | 45% | \u2014 | ||||||||||||
Investments at fair value | $ | 157,504 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Private equity securities | Market approach | Price | $8 | to | $250 | $80 | ||||||||||
Scenario analysis | Discount rate/yield | 19 | % | to | 21% | 20 | % | |||||||||
Revenue growth | 0% | \u2014 | ||||||||||||||
Investment in FXCM | $ | 59,120 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Term loan | Discounted cash flows | Term based on the pay off (years) | 0 months | to | 1.2 years | 1.2 years | ||||||||||
Securities purchased under agreements to resell | $ | 25,000 | Market approach | Spread to 6 month LIBOR | 500 | \u2014 | ||||||||||
Duration (years) | 1.5 years | \u2014 | ||||||||||||||
Trading Liabilities | ||||||||||||||||
Corporate equity securities | $ | 4,487 | Market approach | Transaction level | $1 | \u2014 | ||||||||||
Loans | $ | 9,463 | Market approach | Price | $50 | to | $100 | $88 | ||||||||
Scenario analysis | Estimated\u00a0recovery percentage | 1% | \u2014 | |||||||||||||
Derivatives | $ | 92,057 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Equity options | Volatility benchmarking | Volatility | 21 | % | to | 61% | 43 | % | ||||||||
Interest rate swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Basis points upfront | 0 | to | 22 | 13 | ||||||||||
Cross currency swaps | Basis points upfront | 2 | \u2014 | |||||||||||||
Unfunded commitments | Price | $88 | \u2014 | |||||||||||||
Long-term debt | $ | 480,069 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Structured notes | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $84 | to | $108 | $96 | ||||||||||
Price | \u20ac74 | to | \u20ac103 | \u20ac91 |
November\u00a030, 2018 | ||||||||||||||||
Financial Instruments Owned | Fair Value (in thousands) | Valuation \u00a0Technique | Significant Unobservable Input(s) | Input/Range | Weighted Average | |||||||||||
Corporate equity securities | $ | 43,644 | \u00a0 | \u00a0 | ||||||||||||
Non-exchange traded securities | \u00a0 | Market approach | Price | $1 | to | $75 | $12 | |||||||||
Transaction level | $47 | \u2014 | ||||||||||||||
Corporate debt securities | $ | 9,484 | Market approach | Estimated\u00a0recovery percentage | 46% | \u2014 | ||||||||||
Transaction level | $80 | \u2014 | ||||||||||||||
CDOs and CLOs | $ | 36,105 | Discounted cash flows | Constant prepayment rate | 10 | % | to | 20% | 18 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Constant default rate | 1 | % | to | 2% | 2 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Loss severity | 25 | % | to | 30% | 26 | % | |||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 11 | % | to | 16% | 14 | % | |||||||
Scenario analysis | Estimated\u00a0recovery percentage | 2 | % | to | 41% | 23 | % | |||||||||
Residential mortgage-backed securities | $ | 19,603 | Discounted cash flows | Cumulative loss rate | 4% | \u2014 | ||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 13 years | \u2014 | |||||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 3% | \u2014 | |||||||||||
Loss severity | 0% | \u2014 | ||||||||||||||
\u00a0\u00a0\u00a0\u00a0Market approach | Price | $100 | \u2014 | |||||||||||||
Commercial mortgage-backed securities | $ | 9,444 | Discounted cash flows | Cumulative loss rate | 8 | % | to | 85% | 45 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 1 year | to | 3 years | 1 year | |||||||||
Discount rate/yield | 2 | % | to | 15% | 6 | % | ||||||||||
Loss severity | 64% | \u2014 | ||||||||||||||
Scenario analysis | Estimated\u00a0recovery percentage | 26% | \u2014 | |||||||||||||
Price | $49 | \u2014 | ||||||||||||||
Other asset-backed securities | $ | 53,175 | Discounted cash flows | Cumulative loss rate | 12 | % | to | 30% | 22 | % | ||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Duration (years) | 1 year | to | 2 years | 1 year | |||||||||
\u00a0 | \u00a0 | \u00a0\u00a0\u00a0 | Discount rate/yield | 6 | % | to | 12% | 8 | % | |||||||
\u00a0\u00a0\u00a0\u00a0Market approach | Price | $100 | \u2014 | |||||||||||||
Loans and other receivables | $ | 46,078 | Market approach | Price | $50 | to | $100 | $96 | ||||||||
\u00a0 | \u00a0 | Scenario analysis | Estimated\u00a0recovery percentage | 13 | % | to | 117% | 105 | % | |||||||
Derivatives | $ | 4,602 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Total return swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $97 | \u2014 | ||||||||||||
Investments at fair value | $ | 368,231 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Private equity securities | Market approach | Price | $3 | to | $250 | $108 | ||||||||||
Transaction level | $169 | \u2014 | ||||||||||||||
Scenario analysis | Discount rate/yield | 20% | \u2014 | |||||||||||||
Revenue growth | 0% | \u2014 | ||||||||||||||
Contingent claims analysis | Volatility | 25 | % | to | 35% | 30 | % | |||||||||
Duration (years) | 4 years | \u2014 | ||||||||||||||
Investment in FXCM | $ | 73,150 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Term loan | Discounted cash flows | Term based on the pay off (years) | 0 months | to | 0.3 years | 0.3 years | ||||||||||
Trading Liabilities | ||||||||||||||||
Loans | $ | 6,376 | Market approach | Price | $50 | to | $101 | $74 | ||||||||
Derivatives | $ | 27,536 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Equity options | Option model/default rate | \u00a0\u00a0\u00a0Default probability | 0% | \u2014 | ||||||||||||
Volatility benchmarking | Volatility | 39 | % | to | 62% | 50 | % | |||||||||
Interest rate swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $20 | \u2014 | ||||||||||||
Total return swaps | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $97 | \u2014 | ||||||||||||
Long-term debt | $ | 200,745 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||||||||||
Structured notes | \u00a0\u00a0\u00a0\u00a0Market approach | Price | $78 | to | $94 | $86 | ||||||||||
Price | \u20ac68 | to | \u20ac110 | \u20ac96 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Trading Assets: | |||||||||||
Loans and other receivables | $ | (2,072 | ) | $ | (3,856 | ) | $ | 22,088 | |||
Trading Liabilities: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Loans | 656 | (46 | ) | \u2014 | |||||||
Loan commitments | (1,089 | ) | (739 | ) | 230 | ||||||
Long-term debt: | |||||||||||
Changes in instrument specific credit risk (1) | (20,332 | ) | 38,064 | (34,609 | ) | ||||||
Other changes in fair value (2) | (25,144 | ) | 48,748 | 47,291 | |||||||
Short-term borrowings: | |||||||||||
Changes in instrument specific credit risk (1) | 114 | \u2014 | \u2014 | ||||||||
Other changes in fair value (2) | (863 | ) | \u2014 | (681 | ) |
(1) | Changes in instrument specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of taxes. |
(2) | Other changes in fair value are included within Principal transactions revenues in the Consolidated Statements of Operations. |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Trading Assets: | |||||||
Loans and other receivables (1) | $ | 1,546,516 | $ | 961,554 | |||
Loans and other receivables on nonaccrual status and/or 90 days or greater \u00a0\u00a0past due (1) (2) | 197,215 | 158,392 | |||||
Long-term debt and short-term borrowings | 74,408 | 114,669 |
(1) | Interest income is recognized separately from other changes in fair value and is included in Interest income in the Consolidated Statements of Operations. |
\u00a0 | Assets | Liabilities | |||||||||||
\u00a0 | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2) | |||||||||
November 30, 2019 (1) | |||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Cleared OTC | $ | 28,663 | 1 | $ | \u2014 | \u2014 | |||||||
Total derivatives designated as accounting hedges | 28,663 | \u2014 | |||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Exchange-traded | 1,191 | 65,226 | 103 | 38,464 | |||||||||
Cleared OTC | 213,224 | 3,329 | 284,433 | 3,443 | |||||||||
Bilateral OTC | 421,700 | 1,325 | 258,857 | 738 | |||||||||
Foreign exchange contracts: | |||||||||||||
Exchange-traded | \u2014 | 256 | \u2014 | 199 | |||||||||
Bilateral OTC | 191,218 | 9,257 | 187,836 | 9,187 | |||||||||
Equity contracts: | |||||||||||||
Exchange-traded | 717,494 | 1,714,538 | 962,535 | 1,481,388 | |||||||||
Bilateral OTC | 248,720 | 4,731 | 445,241 | 4,271 | |||||||||
Commodity contracts: | |||||||||||||
Exchange-traded | \u2014 | 5,524 | \u2014 | 4,646 | |||||||||
Bilateral OTC | 20,600 | 4,084 | 391 | 359 | |||||||||
Credit contracts: | |||||||||||||
Cleared OTC | 2,514 | 13 | 5,768 | 12 | |||||||||
Bilateral OTC | 6,281 | 25 | 14,219 | 28 | |||||||||
Total derivatives not designated as accounting hedges | 1,822,942 | \u00a0 | 2,159,383 | \u00a0 | |||||||||
Total gross derivative assets/ liabilities: | |||||||||||||
Exchange-traded | 718,685 | 962,638 | |||||||||||
Cleared OTC | 244,401 | 290,201 | |||||||||||
Bilateral OTC | 888,519 | 906,544 | |||||||||||
Amounts offset in Consolidated Statement of Financial Condition (3): | \u00a0 | ||||||||||||
Exchange-traded | (688,871 | ) | (688,871 | ) | |||||||||
Cleared OTC | (222,869 | ) | (266,900 | ) | |||||||||
Bilateral OTC | (521,457 | ) | (676,407 | ) | |||||||||
Net amounts per Consolidated Statement of Financial Condition (4) | $ | 418,408 | $ | 527,205 |
\u00a0 | Assets | Liabilities | |||||||||||
\u00a0 | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2) | |||||||||
November 30, 2018 (1) | |||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Cleared OTC | $ | \u2014 | \u2014 | $ | 29,647 | 1 | |||||||
Total derivatives designated as accounting hedges | \u2014 | 29,647 | |||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Exchange-traded | 924 | 32,159 | 513 | 66,095 | |||||||||
Cleared OTC | 422,670 | 2,095 | 411,833 | 2,394 | |||||||||
Bilateral OTC | 372,899 | 1,398 | 491,697 | 816 | |||||||||
Foreign exchange contracts: | |||||||||||||
Exchange-traded | 42 | 538 | 2 | 690 | |||||||||
Cleared OTC | \u2014 | \u2014 | 36 | 3 | |||||||||
Bilateral OTC | 311,228 | 9,548 | 314,951 | 9,909 | |||||||||
Equity contracts: | |||||||||||||
Exchange-traded | 1,202,927 | 2,104,684 | 2,061,137 | 1,779,836 | |||||||||
Bilateral OTC | 207,221 | 5,126 | 315,996 | 2,764 | |||||||||
Commodity contracts: | |||||||||||||
Exchange-traded | 27,632 | 7,272 | 272 | 4,185 | |||||||||
Bilateral OTC | 10,191 | 1,274 | 1,445 | 1,498 | |||||||||
Credit contracts: | |||||||||||||
Cleared OTC | 11,204 | 7 | 1,556 | 14 | |||||||||
Bilateral OTC | 13,768 | 123 | 11,618 | 79 | |||||||||
Total derivatives not designated as accounting hedges | 2,580,706 | \u00a0 | 3,611,056 | \u00a0 | |||||||||
Total gross derivative assets/ liabilities: | |||||||||||||
Exchange-traded | 1,231,525 | 2,061,924 | |||||||||||
Cleared OTC | 433,874 | 443,072 | |||||||||||
Bilateral OTC | 915,307 | 1,135,707 | |||||||||||
Amounts offset in Consolidated Statement of Financial Condition (3): | |||||||||||||
Exchange-traded | (1,190,951 | ) | (1,190,951 | ) | |||||||||
Cleared OTC | (407,351 | ) | (418,779 | ) | |||||||||
Bilateral OTC | (815,629 | ) | (903,320 | ) | |||||||||
Net amounts per Consolidated Statement of Financial Condition (4) | $ | 166,775 | $ | 1,127,653 |
(1) | Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. |
(2) | Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. |
(3) | Amounts netted include both netting by counterparty and for cash collateral paid or received. |
(4) | We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition. |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Interest rate swaps | $ | 56,385 | $ | (25,539 | ) | $ | (2,091 | ) | |||
Long-term debt | (58,931 | ) | 27,363 | 8,124 | |||||||
Total | $ | (2,546 | ) | $ | 1,824 | $ | 6,033 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Interest rate contracts | $ | (188,605 | ) | $ | 67,291 | $ | 3,171 | ||||
Foreign exchange contracts | (822 | ) | 226 | 4,376 | |||||||
Equity contracts | (108,961 | ) | (267,187 | ) | (319,775 | ) | |||||
Commodity contracts | (5,630 | ) | 21,785 | (9,049 | ) | ||||||
Credit contracts | 9,147 | 449 | 1,959 | ||||||||
Total | $ | (294,871 | ) | $ | (177,436 | ) | $ | (319,318 | ) |
\u00a0 | OTC Derivative Assets (1) (2) (3) | ||||||||||||||||||
\u00a0 | 0-12 Months | 1-5 Years | Greater Than 5 Years | Cross- Maturity Netting (4) | Total | ||||||||||||||
Commodity swaps, options and forwards | $ | 16,634 | $ | 3,966 | $ | \u2014 | $ | (391 | ) | $ | 20,209 | ||||||||
Equity forwards, swaps and options | 44,065 | 2,302 | 7,442 | (6,612 | ) | 47,197 | |||||||||||||
Credit default swaps | 49 | 1,059 | 15 | (62 | ) | 1,061 | |||||||||||||
Total return swaps | 58,845 | 34,546 | \u2014 | (554 | ) | 92,837 | |||||||||||||
Foreign currency forwards, swaps and options | 46,651 | 11,123 | 62 | (4,855 | ) | 52,981 | |||||||||||||
Fixed income forwards | 986 | \u2014 | \u2014 | \u2014 | 986 | ||||||||||||||
Interest rate swaps, options and forwards | 33,147 | 163,818 | 142,277 | (15,032 | ) | 324,210 | |||||||||||||
Total | $ | 200,377 | $ | 216,814 | $ | 149,796 | $ | (27,506 | ) | 539,481 | |||||||||
Cross product counterparty netting | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (32,208 | ) | |||||||||||||
Total OTC derivative assets included in Trading assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | $ | 507,273 |
(1) | At November\u00a030, 2019, we held exchange traded derivative assets, other derivatives assets and other credit agreements with a fair value of $37.2 million, which are not included in this table. |
(2) | OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition.\u00a0At November\u00a030, 2019, cash collateral received was $126.1 million. |
(3) | Derivative fair values include counterparty netting within product category. |
(4) | Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
\u00a0 | OTC Derivative Liabilities (1) (2) (3) | |||||||||||||||||||
\u00a0 | 0-12 Months | 1-5 Years | Greater Than 5 Years | Cross-Maturity Netting (4) | Total | |||||||||||||||
Commodity swaps, options and forwards | $ | 391 | $ | \u2014 | $ | \u2014 | $ | (391 | ) | $ | \u2014 | |||||||||
Equity forwards, swaps and options | 25,342 | 173,359 | 77,052 | (6,612 | ) | 269,141 | ||||||||||||||
Credit default swaps | 1,245 | 3,688 | 8,160 | (62 | ) | 13,031 | ||||||||||||||
Total return swaps | 28,096 | 41,160 | \u2014 | (554 | ) | 68,702 | ||||||||||||||
Foreign currency forwards, swaps and options | 48,388 | 9,786 | 45 | (4,855 | ) | 53,364 | ||||||||||||||
Fixed income forwards | 581 | \u2014 | \u2014 | \u2014 | 581 | |||||||||||||||
Interest rate swaps, options and forwards | 20,881 | 93,730 | 104,318 | (15,032 | ) | 203,897 | ||||||||||||||
Total | $ | 124,924 | $ | 321,723 | $ | 189,575 | $ | (27,506 | ) | 608,716 | ||||||||||
Cross product counterparty netting | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (32,208 | ) | ||||||||||||||
Total OTC derivative liabilities included in Trading liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | $ | 576,508 |
(1) | At November\u00a030, 2019, we held exchange traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $275.7 million, which are not included in this table. |
(2) | OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition.\u00a0At November\u00a030, 2019, cash collateral pledged was $325.0 million. |
(3) | Derivative fair values include counterparty netting within product category. |
(4) | Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
Counterparty credit quality (1): | |||
A- or higher | $ | 127,355 | |
BBB- to BBB+ | 31,536 | ||
BB+ or lower | 193,338 | ||
Unrated | 155,044 | ||
Total | $ | 507,273 |
(1) | We utilize internal credit ratings determined by the Jefferies Group Risk Management department.\u00a0Credit ratings determined by Jefferies Group Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. |
External Credit Rating | ||||||||||||||||
Investment Grade | Non-investment Grade | Unrated | Total Notional | |||||||||||||
November\u00a030, 2019 | ||||||||||||||||
Credit protection sold: | ||||||||||||||||
Index credit default swaps | $ | 3.0 | $ | 32.0 | $ | \u2014 | $ | 35.0 | ||||||||
Single name credit default swaps | 3.4 | 29.0 | 1.5 | 33.9 | ||||||||||||
November\u00a030, 2018 | ||||||||||||||||
Credit protection sold: | ||||||||||||||||
Index credit default swaps | $ | 25.7 | $ | 167.4 | $ | \u2014 | $ | 193.1 | ||||||||
Single name credit default swaps | 57.7 | 84.5 | 3.0 | 145.2 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Derivative instrument liabilities with credit-risk-related contingent features | $ | 42.9 | $ | 93.5 | |||
Collateral posted | (3.1 | ) | (61.5 | ) | |||
Collateral received | 114.1 | 91.5 | |||||
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) | 154.0 | 123.3 |
(1) | These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
\u00a0 | Assets | Liabilities | |||||||||||
\u00a0 | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2) | |||||||||
November 30, 2019 (1) | |||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Cleared OTC | $ | 28,663 | 1 | $ | \u2014 | \u2014 | |||||||
Total derivatives designated as accounting hedges | 28,663 | \u2014 | |||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Exchange-traded | 1,191 | 65,226 | 103 | 38,464 | |||||||||
Cleared OTC | 213,224 | 3,329 | 284,433 | 3,443 | |||||||||
Bilateral OTC | 421,700 | 1,325 | 258,857 | 738 | |||||||||
Foreign exchange contracts: | |||||||||||||
Exchange-traded | \u2014 | 256 | \u2014 | 199 | |||||||||
Bilateral OTC | 191,218 | 9,257 | 187,836 | 9,187 | |||||||||
Equity contracts: | |||||||||||||
Exchange-traded | 717,494 | 1,714,538 | 962,535 | 1,481,388 | |||||||||
Bilateral OTC | 248,720 | 4,731 | 445,241 | 4,271 | |||||||||
Commodity contracts: | |||||||||||||
Exchange-traded | \u2014 | 5,524 | \u2014 | 4,646 | |||||||||
Bilateral OTC | 20,600 | 4,084 | 391 | 359 | |||||||||
Credit contracts: | |||||||||||||
Cleared OTC | 2,514 | 13 | 5,768 | 12 | |||||||||
Bilateral OTC | 6,281 | 25 | 14,219 | 28 | |||||||||
Total derivatives not designated as accounting hedges | 1,822,942 | \u00a0 | 2,159,383 | \u00a0 | |||||||||
Total gross derivative assets/ liabilities: | |||||||||||||
Exchange-traded | 718,685 | 962,638 | |||||||||||
Cleared OTC | 244,401 | 290,201 | |||||||||||
Bilateral OTC | 888,519 | 906,544 | |||||||||||
Amounts offset in Consolidated Statement of Financial Condition (3): | \u00a0 | ||||||||||||
Exchange-traded | (688,871 | ) | (688,871 | ) | |||||||||
Cleared OTC | (222,869 | ) | (266,900 | ) | |||||||||
Bilateral OTC | (521,457 | ) | (676,407 | ) | |||||||||
Net amounts per Consolidated Statement of Financial Condition (4) | $ | 418,408 | $ | 527,205 |
\u00a0 | Assets | Liabilities | |||||||||||
\u00a0 | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2) | |||||||||
November 30, 2018 (1) | |||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Cleared OTC | $ | \u2014 | \u2014 | $ | 29,647 | 1 | |||||||
Total derivatives designated as accounting hedges | \u2014 | 29,647 | |||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||
Interest rate contracts: | |||||||||||||
Exchange-traded | 924 | 32,159 | 513 | 66,095 | |||||||||
Cleared OTC | 422,670 | 2,095 | 411,833 | 2,394 | |||||||||
Bilateral OTC | 372,899 | 1,398 | 491,697 | 816 | |||||||||
Foreign exchange contracts: | |||||||||||||
Exchange-traded | 42 | 538 | 2 | 690 | |||||||||
Cleared OTC | \u2014 | \u2014 | 36 | 3 | |||||||||
Bilateral OTC | 311,228 | 9,548 | 314,951 | 9,909 | |||||||||
Equity contracts: | |||||||||||||
Exchange-traded | 1,202,927 | 2,104,684 | 2,061,137 | 1,779,836 | |||||||||
Bilateral OTC | 207,221 | 5,126 | 315,996 | 2,764 | |||||||||
Commodity contracts: | |||||||||||||
Exchange-traded | 27,632 | 7,272 | 272 | 4,185 | |||||||||
Bilateral OTC | 10,191 | 1,274 | 1,445 | 1,498 | |||||||||
Credit contracts: | |||||||||||||
Cleared OTC | 11,204 | 7 | 1,556 | 14 | |||||||||
Bilateral OTC | 13,768 | 123 | 11,618 | 79 | |||||||||
Total derivatives not designated as accounting hedges | 2,580,706 | \u00a0 | 3,611,056 | \u00a0 | |||||||||
Total gross derivative assets/ liabilities: | |||||||||||||
Exchange-traded | 1,231,525 | 2,061,924 | |||||||||||
Cleared OTC | 433,874 | 443,072 | |||||||||||
Bilateral OTC | 915,307 | 1,135,707 | |||||||||||
Amounts offset in Consolidated Statement of Financial Condition (3): | |||||||||||||
Exchange-traded | (1,190,951 | ) | (1,190,951 | ) | |||||||||
Cleared OTC | (407,351 | ) | (418,779 | ) | |||||||||
Bilateral OTC | (815,629 | ) | (903,320 | ) | |||||||||
Net amounts per Consolidated Statement of Financial Condition (4) | $ | 166,775 | $ | 1,127,653 |
(1) | Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. |
(2) | Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. |
(3) | Amounts netted include both netting by counterparty and for cash collateral paid or received. |
(4) | We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition. |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Interest rate swaps | $ | 56,385 | $ | (25,539 | ) | $ | (2,091 | ) | |||
Long-term debt | (58,931 | ) | 27,363 | 8,124 | |||||||
Total | $ | (2,546 | ) | $ | 1,824 | $ | 6,033 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Interest rate contracts | $ | (188,605 | ) | $ | 67,291 | $ | 3,171 | ||||
Foreign exchange contracts | (822 | ) | 226 | 4,376 | |||||||
Equity contracts | (108,961 | ) | (267,187 | ) | (319,775 | ) | |||||
Commodity contracts | (5,630 | ) | 21,785 | (9,049 | ) | ||||||
Credit contracts | 9,147 | 449 | 1,959 | ||||||||
Total | $ | (294,871 | ) | $ | (177,436 | ) | $ | (319,318 | ) |
\u00a0 | OTC Derivative Assets (1) (2) (3) | ||||||||||||||||||
\u00a0 | 0-12 Months | 1-5 Years | Greater Than 5 Years | Cross- Maturity Netting (4) | Total | ||||||||||||||
Commodity swaps, options and forwards | $ | 16,634 | $ | 3,966 | $ | \u2014 | $ | (391 | ) | $ | 20,209 | ||||||||
Equity forwards, swaps and options | 44,065 | 2,302 | 7,442 | (6,612 | ) | 47,197 | |||||||||||||
Credit default swaps | 49 | 1,059 | 15 | (62 | ) | 1,061 | |||||||||||||
Total return swaps | 58,845 | 34,546 | \u2014 | (554 | ) | 92,837 | |||||||||||||
Foreign currency forwards, swaps and options | 46,651 | 11,123 | 62 | (4,855 | ) | 52,981 | |||||||||||||
Fixed income forwards | 986 | \u2014 | \u2014 | \u2014 | 986 | ||||||||||||||
Interest rate swaps, options and forwards | 33,147 | 163,818 | 142,277 | (15,032 | ) | 324,210 | |||||||||||||
Total | $ | 200,377 | $ | 216,814 | $ | 149,796 | $ | (27,506 | ) | 539,481 | |||||||||
Cross product counterparty netting | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (32,208 | ) | |||||||||||||
Total OTC derivative assets included in Trading assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | $ | 507,273 |
(1) | At November\u00a030, 2019, we held exchange traded derivative assets, other derivatives assets and other credit agreements with a fair value of $37.2 million, which are not included in this table. |
(2) | OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition.\u00a0At November\u00a030, 2019, cash collateral received was $126.1 million. |
(3) | Derivative fair values include counterparty netting within product category. |
(4) | Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
\u00a0 | OTC Derivative Liabilities (1) (2) (3) | |||||||||||||||||||
\u00a0 | 0-12 Months | 1-5 Years | Greater Than 5 Years | Cross-Maturity Netting (4) | Total | |||||||||||||||
Commodity swaps, options and forwards | $ | 391 | $ | \u2014 | $ | \u2014 | $ | (391 | ) | $ | \u2014 | |||||||||
Equity forwards, swaps and options | 25,342 | 173,359 | 77,052 | (6,612 | ) | 269,141 | ||||||||||||||
Credit default swaps | 1,245 | 3,688 | 8,160 | (62 | ) | 13,031 | ||||||||||||||
Total return swaps | 28,096 | 41,160 | \u2014 | (554 | ) | 68,702 | ||||||||||||||
Foreign currency forwards, swaps and options | 48,388 | 9,786 | 45 | (4,855 | ) | 53,364 | ||||||||||||||
Fixed income forwards | 581 | \u2014 | \u2014 | \u2014 | 581 | |||||||||||||||
Interest rate swaps, options and forwards | 20,881 | 93,730 | 104,318 | (15,032 | ) | 203,897 | ||||||||||||||
Total | $ | 124,924 | $ | 321,723 | $ | 189,575 | $ | (27,506 | ) | 608,716 | ||||||||||
Cross product counterparty netting | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (32,208 | ) | ||||||||||||||
Total OTC derivative liabilities included in Trading liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | $ | 576,508 |
(1) | At November\u00a030, 2019, we held exchange traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $275.7 million, which are not included in this table. |
(2) | OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition.\u00a0At November\u00a030, 2019, cash collateral pledged was $325.0 million. |
(3) | Derivative fair values include counterparty netting within product category. |
(4) | Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
Counterparty credit quality (1): | |||
A- or higher | $ | 127,355 | |
BBB- to BBB+ | 31,536 | ||
BB+ or lower | 193,338 | ||
Unrated | 155,044 | ||
Total | $ | 507,273 |
External Credit Rating | ||||||||||||||||
Investment Grade | Non-investment Grade | Unrated | Total Notional | |||||||||||||
November\u00a030, 2019 | ||||||||||||||||
Credit protection sold: | ||||||||||||||||
Index credit default swaps | $ | 3.0 | $ | 32.0 | $ | \u2014 | $ | 35.0 | ||||||||
Single name credit default swaps | 3.4 | 29.0 | 1.5 | 33.9 | ||||||||||||
November\u00a030, 2018 | ||||||||||||||||
Credit protection sold: | ||||||||||||||||
Index credit default swaps | $ | 25.7 | $ | 167.4 | $ | \u2014 | $ | 193.1 | ||||||||
Single name credit default swaps | 57.7 | 84.5 | 3.0 | 145.2 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Derivative instrument liabilities with credit-risk-related contingent features | $ | 42.9 | $ | 93.5 | |||
Collateral posted | (3.1 | ) | (61.5 | ) | |||
Collateral received | 114.1 | 91.5 | |||||
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) | 154.0 | 123.3 |
Collateral Pledged | Securities Lending Arrangements | Repurchase Agreements | Obligation to Return Securities Received as Collateral | Total | ||||||||||||
November\u00a030, 2019 | ||||||||||||||||
Corporate equity securities | $ | 1,314,395 | $ | 129,558 | $ | \u2014 | $ | 1,443,953 | ||||||||
Corporate debt securities | 191,311 | 1,730,526 | \u2014 | 1,921,837 | ||||||||||||
Mortgage-backed and asset-backed securities | \u2014 | 1,745,145 | \u2014 | 1,745,145 | ||||||||||||
U.S. government and federal agency securities | 19,434 | 10,863,997 | 9,500 | 10,892,931 | ||||||||||||
Municipal securities | \u2014 | 498,202 | \u2014 | 498,202 | ||||||||||||
Sovereign securities | \u2014 | 3,016,563 | \u2014 | 3,016,563 | ||||||||||||
Loans and other receivables | \u2014 | 772,926 | \u2014 | 772,926 | ||||||||||||
Total | $ | 1,525,140 | $ | 18,756,917 | $ | 9,500 | $ | 20,291,557 | ||||||||
November\u00a030, 2018 | ||||||||||||||||
Corporate equity securities | $ | 1,505,218 | $ | 487,124 | $ | \u2014 | $ | 1,992,342 | ||||||||
Corporate debt securities | 333,221 | 1,853,309 | \u2014 | 2,186,530 | ||||||||||||
Mortgage-backed and asset-backed securities | 249 | 2,820,543 | \u2014 | 2,820,792 | ||||||||||||
U.S. government and federal agency securities | \u2014 | 8,181,947 | \u2014 | 8,181,947 | ||||||||||||
Municipal securities | \u2014 | 604,274 | \u2014 | 604,274 | ||||||||||||
Sovereign securities | \u2014 | 2,945,521 | \u2014 | 2,945,521 | ||||||||||||
Loans and other receivables | \u2014 | 300,768 | \u2014 | 300,768 | ||||||||||||
Total | $ | 1,838,688 | $ | 17,193,486 | $ | \u2014 | $ | 19,032,174 |
Contractual Maturity | ||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 31 to 90 Days | Greater than 90 Days | Total | ||||||||||||||||
November\u00a030, 2019 | ||||||||||||||||||||
Securities lending arrangements | $ | 694,821 | $ | \u2014 | $ | 672,969 | $ | 157,350 | $ | 1,525,140 | ||||||||||
Repurchase agreements | 6,614,026 | 1,556,260 | 8,988,528 | 1,598,103 | 18,756,917 | |||||||||||||||
Obligation to return securities received as collateral | \u2014 | \u2014 | 9,500 | \u2014 | 9,500 | |||||||||||||||
Total | $ | 7,308,847 | $ | 1,556,260 | $ | 9,670,997 | $ | 1,755,453 | $ | 20,291,557 | ||||||||||
November\u00a030, 2018 | ||||||||||||||||||||
Securities lending arrangements | $ | 807,347 | $ | \u2014 | $ | 560,417 | $ | 470,924 | $ | 1,838,688 | ||||||||||
Repurchase agreements | 7,849,052 | 1,915,325 | 6,042,951 | 1,386,158 | 17,193,486 | |||||||||||||||
Total | $ | 8,656,399 | $ | 1,915,325 | $ | 6,603,368 | $ | 1,857,082 | $ | 19,032,174 |
(In thousands) | Gross Amounts | Netting in Consolidated Statements of Financial Condition | Net Amounts in Consolidated Statements of Financial Condition | Additional Amounts Available for Setoff (1) | Available Collateral (2) | Net Amount (3) | |||||||||||||||||
Assets at November 30, 2019 | |||||||||||||||||||||||
Securities borrowing arrangements | $ | 7,624,642 | $ | \u2014 | $ | 7,624,642 | $ | (361,394 | ) | $ | (1,479,433 | ) | $ | 5,783,815 | |||||||||
Reverse repurchase agreements | 15,551,845 | (11,252,247 | ) | 4,299,598 | (291,316 | ) | (3,929,977 | ) | 78,305 | ||||||||||||||
Securities received as collateral | 9,500 | \u2014 | 9,500 | \u2014 | \u2014 | 9,500 | |||||||||||||||||
Liabilities at November 30, 2019 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities lending arrangements | $ | 1,525,140 | $ | \u2014 | $ | 1,525,140 | $ | (361,394 | ) | $ | (970,799 | ) | $ | 192,947 | |||||||||
Repurchase agreements | 18,756,917 | (11,252,247 | ) | 7,504,670 | (291,316 | ) | (6,663,807 | ) | 549,547 | ||||||||||||||
Obligation to return securities received as collateral | 9,500 | \u2014 | 9,500 | \u2014 | \u2014 | 9,500 | |||||||||||||||||
Assets at November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities borrowing arrangements | $ | 6,538,212 | $ | \u2014 | $ | 6,538,212 | $ | (468,778 | ) | $ | (1,193,986 | ) | $ | 4,875,448 | |||||||||
Reverse repurchase agreements | 11,336,175 | (8,550,417 | ) | 2,785,758 | (609,225 | ) | (2,126,730 | ) | 49,803 | ||||||||||||||
Liabilities at November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities lending arrangements | $ | 1,838,688 | $ | \u2014 | $ | 1,838,688 | $ | (468,778 | ) | $ | (1,343,704 | ) | $ | 26,206 | |||||||||
Repurchase agreements | 17,193,486 | (8,550,417 | ) | 8,643,069 | (609,225 | ) | (7,070,967 | ) | 962,877 |
(1) | Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty\u2019s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty\u2019s default, but which are not netted in the Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met.\u00a0 |
(2) | Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty\u2019s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. |
(3) | At November\u00a030, 2019, amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable.\u00a0At November\u00a030, 2018, amounts include $4,825.7 million of securities borrowing arrangements, for which we have received securities collateral of $4,711.7 million, and $931.7 million of repurchase agreements, for which we have pledged securities collateral of $963.6 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. |
Collateral Pledged | Securities Lending Arrangements | Repurchase Agreements | Obligation to Return Securities Received as Collateral | Total | ||||||||||||
November\u00a030, 2019 | ||||||||||||||||
Corporate equity securities | $ | 1,314,395 | $ | 129,558 | $ | \u2014 | $ | 1,443,953 | ||||||||
Corporate debt securities | 191,311 | 1,730,526 | \u2014 | 1,921,837 | ||||||||||||
Mortgage-backed and asset-backed securities | \u2014 | 1,745,145 | \u2014 | 1,745,145 | ||||||||||||
U.S. government and federal agency securities | 19,434 | 10,863,997 | 9,500 | 10,892,931 | ||||||||||||
Municipal securities | \u2014 | 498,202 | \u2014 | 498,202 | ||||||||||||
Sovereign securities | \u2014 | 3,016,563 | \u2014 | 3,016,563 | ||||||||||||
Loans and other receivables | \u2014 | 772,926 | \u2014 | 772,926 | ||||||||||||
Total | $ | 1,525,140 | $ | 18,756,917 | $ | 9,500 | $ | 20,291,557 | ||||||||
November\u00a030, 2018 | ||||||||||||||||
Corporate equity securities | $ | 1,505,218 | $ | 487,124 | $ | \u2014 | $ | 1,992,342 | ||||||||
Corporate debt securities | 333,221 | 1,853,309 | \u2014 | 2,186,530 | ||||||||||||
Mortgage-backed and asset-backed securities | 249 | 2,820,543 | \u2014 | 2,820,792 | ||||||||||||
U.S. government and federal agency securities | \u2014 | 8,181,947 | \u2014 | 8,181,947 | ||||||||||||
Municipal securities | \u2014 | 604,274 | \u2014 | 604,274 | ||||||||||||
Sovereign securities | \u2014 | 2,945,521 | \u2014 | 2,945,521 | ||||||||||||
Loans and other receivables | \u2014 | 300,768 | \u2014 | 300,768 | ||||||||||||
Total | $ | 1,838,688 | $ | 17,193,486 | $ | \u2014 | $ | 19,032,174 |
Contractual Maturity | ||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 31 to 90 Days | Greater than 90 Days | Total | ||||||||||||||||
November\u00a030, 2019 | ||||||||||||||||||||
Securities lending arrangements | $ | 694,821 | $ | \u2014 | $ | 672,969 | $ | 157,350 | $ | 1,525,140 | ||||||||||
Repurchase agreements | 6,614,026 | 1,556,260 | 8,988,528 | 1,598,103 | 18,756,917 | |||||||||||||||
Obligation to return securities received as collateral | \u2014 | \u2014 | 9,500 | \u2014 | 9,500 | |||||||||||||||
Total | $ | 7,308,847 | $ | 1,556,260 | $ | 9,670,997 | $ | 1,755,453 | $ | 20,291,557 | ||||||||||
November\u00a030, 2018 | ||||||||||||||||||||
Securities lending arrangements | $ | 807,347 | $ | \u2014 | $ | 560,417 | $ | 470,924 | $ | 1,838,688 | ||||||||||
Repurchase agreements | 7,849,052 | 1,915,325 | 6,042,951 | 1,386,158 | 17,193,486 | |||||||||||||||
Total | $ | 8,656,399 | $ | 1,915,325 | $ | 6,603,368 | $ | 1,857,082 | $ | 19,032,174 |
(In thousands) | Gross Amounts | Netting in Consolidated Statements of Financial Condition | Net Amounts in Consolidated Statements of Financial Condition | Additional Amounts Available for Setoff (1) | Available Collateral (2) | Net Amount (3) | |||||||||||||||||
Assets at November 30, 2019 | |||||||||||||||||||||||
Securities borrowing arrangements | $ | 7,624,642 | $ | \u2014 | $ | 7,624,642 | $ | (361,394 | ) | $ | (1,479,433 | ) | $ | 5,783,815 | |||||||||
Reverse repurchase agreements | 15,551,845 | (11,252,247 | ) | 4,299,598 | (291,316 | ) | (3,929,977 | ) | 78,305 | ||||||||||||||
Securities received as collateral | 9,500 | \u2014 | 9,500 | \u2014 | \u2014 | 9,500 | |||||||||||||||||
Liabilities at November 30, 2019 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities lending arrangements | $ | 1,525,140 | $ | \u2014 | $ | 1,525,140 | $ | (361,394 | ) | $ | (970,799 | ) | $ | 192,947 | |||||||||
Repurchase agreements | 18,756,917 | (11,252,247 | ) | 7,504,670 | (291,316 | ) | (6,663,807 | ) | 549,547 | ||||||||||||||
Obligation to return securities received as collateral | 9,500 | \u2014 | 9,500 | \u2014 | \u2014 | 9,500 | |||||||||||||||||
Assets at November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities borrowing arrangements | $ | 6,538,212 | $ | \u2014 | $ | 6,538,212 | $ | (468,778 | ) | $ | (1,193,986 | ) | $ | 4,875,448 | |||||||||
Reverse repurchase agreements | 11,336,175 | (8,550,417 | ) | 2,785,758 | (609,225 | ) | (2,126,730 | ) | 49,803 | ||||||||||||||
Liabilities at November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities lending arrangements | $ | 1,838,688 | $ | \u2014 | $ | 1,838,688 | $ | (468,778 | ) | $ | (1,343,704 | ) | $ | 26,206 | |||||||||
Repurchase agreements | 17,193,486 | (8,550,417 | ) | 8,643,069 | (609,225 | ) | (7,070,967 | ) | 962,877 |
(1) | Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty\u2019s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty\u2019s default, but which are not netted in the Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met.\u00a0 |
(2) | Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty\u2019s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. |
(In thousands) | Gross Amounts | Netting in Consolidated Statements of Financial Condition | Net Amounts in Consolidated Statements of Financial Condition | Additional Amounts Available for Setoff (1) | Available Collateral (2) | Net Amount (3) | |||||||||||||||||
Assets at November 30, 2019 | |||||||||||||||||||||||
Securities borrowing arrangements | $ | 7,624,642 | $ | \u2014 | $ | 7,624,642 | $ | (361,394 | ) | $ | (1,479,433 | ) | $ | 5,783,815 | |||||||||
Reverse repurchase agreements | 15,551,845 | (11,252,247 | ) | 4,299,598 | (291,316 | ) | (3,929,977 | ) | 78,305 | ||||||||||||||
Securities received as collateral | 9,500 | \u2014 | 9,500 | \u2014 | \u2014 | 9,500 | |||||||||||||||||
Liabilities at November 30, 2019 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities lending arrangements | $ | 1,525,140 | $ | \u2014 | $ | 1,525,140 | $ | (361,394 | ) | $ | (970,799 | ) | $ | 192,947 | |||||||||
Repurchase agreements | 18,756,917 | (11,252,247 | ) | 7,504,670 | (291,316 | ) | (6,663,807 | ) | 549,547 | ||||||||||||||
Obligation to return securities received as collateral | 9,500 | \u2014 | 9,500 | \u2014 | \u2014 | 9,500 | |||||||||||||||||
Assets at November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities borrowing arrangements | $ | 6,538,212 | $ | \u2014 | $ | 6,538,212 | $ | (468,778 | ) | $ | (1,193,986 | ) | $ | 4,875,448 | |||||||||
Reverse repurchase agreements | 11,336,175 | (8,550,417 | ) | 2,785,758 | (609,225 | ) | (2,126,730 | ) | 49,803 | ||||||||||||||
Liabilities at November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||
Securities lending arrangements | $ | 1,838,688 | $ | \u2014 | $ | 1,838,688 | $ | (468,778 | ) | $ | (1,343,704 | ) | $ | 26,206 | |||||||||
Repurchase agreements | 17,193,486 | (8,550,417 | ) | 8,643,069 | (609,225 | ) | (7,070,967 | ) | 962,877 |
(1) | Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty\u2019s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty\u2019s default, but which are not netted in the Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met.\u00a0 |
(2) | Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty\u2019s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Transferred assets | $ | 4,780.9 | $ | 7,159.3 | $ | 4,552.9 | |||||
Proceeds on new securitizations | 4,852.8 | 7,165.3 | 4,594.5 | ||||||||
Cash flows received on retained interests | 48.3 | 48.5 | 28.7 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||||||||||
Securitization Type\u00a0 | Total Assets | Retained Interests | Total Assets | Retained Interests | |||||||||||
U.S. government agency residential mortgage-backed securities | $ | 10,671.7 | $ | 103.3 | $ | 13,633.5 | $ | 365.3 | |||||||
U.S. government agency commercial mortgage-backed securities | 1,374.8 | 45.8 | 2,027.6 | 185.6 | |||||||||||
CLOs | 3,006.7 | 58.4 | 3,512.0 | 20.9 | |||||||||||
Consumer and other loans | 1,149.3 | 71.8 | 604.1 | 48.9 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Transferred assets | $ | 4,780.9 | $ | 7,159.3 | $ | 4,552.9 | |||||
Proceeds on new securitizations | 4,852.8 | 7,165.3 | 4,594.5 | ||||||||
Cash flows received on retained interests | 48.3 | 48.5 | 28.7 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||||||||||
Securitization Type\u00a0 | Total Assets | Retained Interests | Total Assets | Retained Interests | |||||||||||
U.S. government agency residential mortgage-backed securities | $ | 10,671.7 | $ | 103.3 | $ | 13,633.5 | $ | 365.3 | |||||||
U.S. government agency commercial mortgage-backed securities | 1,374.8 | 45.8 | 2,027.6 | 185.6 | |||||||||||
CLOs | 3,006.7 | 58.4 | 3,512.0 | 20.9 | |||||||||||
Consumer and other loans | 1,149.3 | 71.8 | 604.1 | 48.9 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
November\u00a030, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Bonds and notes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
U.S. government securities | $ | 1,073,038 | $ | 1 | $ | 183 | $ | 1,072,856 | |||||||
Residential mortgage-backed securities | 211,209 | 376 | 1,067 | 210,518 | |||||||||||
Commercial mortgage-backed securities | 16,068 | \u2014 | 426 | 15,642 | |||||||||||
Other asset-backed securities | 111,447 | 1 | 578 | 110,870 | |||||||||||
Total Available for sale securities | $ | 1,411,762 | $ | 378 | $ | 2,254 | $ | 1,409,886 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
November\u00a030, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Bonds and notes: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
U.S. government securities | $ | 1,073,038 | $ | 1 | $ | 183 | $ | 1,072,856 | |||||||
Residential mortgage-backed securities | 211,209 | 376 | 1,067 | 210,518 | |||||||||||
Commercial mortgage-backed securities | 16,068 | \u2014 | 426 | 15,642 | |||||||||||
Other asset-backed securities | 111,447 | 1 | 578 | 110,870 | |||||||||||
Total Available for sale securities | $ | 1,411,762 | $ | 378 | $ | 2,254 | $ | 1,409,886 |
\u2022 | Purchases of securities in connection with our trading and secondary market-making activities; |
\u2022 | Retained interests held as a result of securitization activities, including the resecuritization of mortgage-backed and other asset-backed securities and the securitization of mortgage, corporate and consumer loans; |
\u2022 | Acting as placement agent and/or underwriter in connection with client-sponsored securitizations; |
\u2022 | Financing of agency and non-agency mortgage-backed and other asset-backed securities; |
\u2022 | Warehouse funding arrangements for client-sponsored consumer and mortgage loan vehicles and CLOs through participation agreements, forward sale agreements and revolving loan and note commitments; and |
\u2022 | Loans to, investments in and fees from various investment vehicles. |
November\u00a030, 2019 | November\u00a030, 2018 | ||||||
Securities purchased under agreements to resell (1) | $ | 2,467.3 | $ | 883.1 | |||
Receivables | 605.6 | 626.0 | |||||
Other | 38.7 | 78.4 | |||||
Total assets | $ | 3,111.6 | $ | 1,587.5 | |||
Other secured financings (2) | $ | 3,068.6 | $ | 1,535.3 | |||
Other (3) | 20.1 | 45.9 | |||||
Total liabilities | $ | 3,088.7 | $ | 1,581.2 |
(1) | Securities purchased under agreements to resell represent an amount due under a collateralized transaction on related consolidated entities, which are eliminated in consolidation. |
(2) | Approximately $1.0 million of the secured financing represent amounts held by us in inventory and are eliminated in consolidation at November\u00a030, 2018. |
(3) | Includes $17.7 million and $44.1 million at November 30, 2019 and 2018, respectively, of intercompany payables that are eliminated in consolidation. |
\u00a0 | Financial Statement Carrying Amount | Maximum Exposure to Loss | VIE Assets | ||||||||||||
\u00a0 | Assets | Liabilities | |||||||||||||
November\u00a030, 2019 | |||||||||||||||
CLOs | $ | 152.6 | $ | 0.6 | $ | 505.3 | $ | 7,845.0 | |||||||
Consumer loan and other asset-backed vehicles | 358.3 | \u2014 | 490.6 | 2,354.8 | |||||||||||
Related party private equity vehicles | 23.0 | \u2014 | 34.3 | 71.4 | |||||||||||
Other investment vehicles | 574.0 | \u2014 | 766.1 | 9,255.0 | |||||||||||
Total | $ | 1,107.9 | $ | 0.6 | $ | 1,796.3 | $ | 19,526.2 | |||||||
November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
CLOs | $ | 45.2 | $ | \u2014 | $ | 571.4 | $ | 3,281.9 | |||||||
Consumer loan and other asset-backed vehicles | 462.1 | \u2014 | 807.1 | 3,273.1 | |||||||||||
Related party private equity vehicles | 35.5 | \u2014 | 53.5 | 108.3 | |||||||||||
Other investment vehicles | 203.6 | \u2014 | 214.7 | 5,719.1 | |||||||||||
Total | $ | 746.4 | $ | \u2014 | $ | 1,646.7 | $ | 12,382.4 |
\u2022 | Forward sale agreements whereby we commit to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs; |
\u2022 | Warehouse funding arrangements in the form of participation interests in corporate loans held by CLOs and commitments to fund such participation interests; |
\u2022 | Trading positions in securities issued in a CLO transaction; and |
\u2022 | Investments in variable funding notes issued by CLOs. |
November\u00a030, 2019 | November\u00a030, 2018 | ||||||
Securities purchased under agreements to resell (1) | $ | 2,467.3 | $ | 883.1 | |||
Receivables | 605.6 | 626.0 | |||||
Other | 38.7 | 78.4 | |||||
Total assets | $ | 3,111.6 | $ | 1,587.5 | |||
Other secured financings (2) | $ | 3,068.6 | $ | 1,535.3 | |||
Other (3) | 20.1 | 45.9 | |||||
Total liabilities | $ | 3,088.7 | $ | 1,581.2 |
(1) | Securities purchased under agreements to resell represent an amount due under a collateralized transaction on related consolidated entities, which are eliminated in consolidation. |
(2) | Approximately $1.0 million of the secured financing represent amounts held by us in inventory and are eliminated in consolidation at November\u00a030, 2018. |
\u00a0 | Financial Statement Carrying Amount | Maximum Exposure to Loss | VIE Assets | ||||||||||||
\u00a0 | Assets | Liabilities | |||||||||||||
November\u00a030, 2019 | |||||||||||||||
CLOs | $ | 152.6 | $ | 0.6 | $ | 505.3 | $ | 7,845.0 | |||||||
Consumer loan and other asset-backed vehicles | 358.3 | \u2014 | 490.6 | 2,354.8 | |||||||||||
Related party private equity vehicles | 23.0 | \u2014 | 34.3 | 71.4 | |||||||||||
Other investment vehicles | 574.0 | \u2014 | 766.1 | 9,255.0 | |||||||||||
Total | $ | 1,107.9 | $ | 0.6 | $ | 1,796.3 | $ | 19,526.2 | |||||||
November 30, 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
CLOs | $ | 45.2 | $ | \u2014 | $ | 571.4 | $ | 3,281.9 | |||||||
Consumer loan and other asset-backed vehicles | 462.1 | \u2014 | 807.1 | 3,273.1 | |||||||||||
Related party private equity vehicles | 35.5 | \u2014 | 53.5 | 108.3 | |||||||||||
Other investment vehicles | 203.6 | \u2014 | 214.7 | 5,719.1 | |||||||||||
Total | $ | 746.4 | $ | \u2014 | $ | 1,646.7 | $ | 12,382.4 |
Loans to and investments in associated companies as of November 30, 2018 | Income (losses) related to associated companies | Income (losses) related to Jefferies Group associated companies (1) | Contributions to (distributions from) associated companies, net | Other, including foreign exchange and unrealized gains (losses) | Loans to and investments in associated companies as of November 30, 2019 | ||||||||||||||||||
Jefferies Finance | $ | 728,560 | $ | \u2014 | $ | (1,286 | ) | $ | (53,407 | ) | $ | \u2014 | $ | 673,867 | |||||||||
Berkadia (2) | 245,228 | \u2014 | 88,174 | (65,045 | ) | 592 | 268,949 | ||||||||||||||||
National Beef (3) | 653,630 | 232,042 | \u2014 | (300,248 | ) | (585,424 | ) | \u2014 | |||||||||||||||
FXCM (4) | 75,031 | (8,212 | ) | \u2014 | 3,500 | (96 | ) | 70,223 | |||||||||||||||
Linkem (5) | 165,157 | (27,956 | ) | \u2014 | 66,996 | (9,350 | ) | 194,847 | |||||||||||||||
HomeFed (6) | 337,542 | 7,902 | \u2014 | \u2014 | (345,444 | ) | \u2014 | ||||||||||||||||
Real estate associated companies (6) | 87,074 | (353 | ) | \u2014 | (29,685 | ) | 198,273 | 255,309 | |||||||||||||||
Golden Queen (5) (7) | 63,956 | 6,740 | \u2014 | 7,500 | \u2014 | 78,196 | |||||||||||||||||
Other | 61,154 | (7,168 | ) | (1,719 | ) | 58,432 | 867 | 111,566 | |||||||||||||||
Total | $ | 2,417,332 | $ | 202,995 | $ | 85,169 | $ | (311,957 | ) | $ | (740,582 | ) | $ | 1,652,957 |
Loans to and investments in associated companies as of December 31, 2017 | Income (losses) related to associated companies | Income (losses) related to Jefferies Group associated companies (1) | Contributions to (distributions from) associated companies, net | Other, including foreign exchange and unrealized gains (losses) | Loans to and investments in associated companies as of November 30, 2018 | ||||||||||||||||||
Jefferies Finance | $ | 655,467 | $ | \u2014 | $ | 59,138 | $ | 13,955 | $ | \u2014 | $ | 728,560 | |||||||||||
Berkadia (2) | 210,594 | 80,092 | 20,001 | (65,197 | ) | (262 | ) | 245,228 | |||||||||||||||
National Beef (3) | \u2014 | 110,049 | \u2014 | (48,656 | ) | 592,237 | 653,630 | ||||||||||||||||
FXCM (4) | 158,856 | (83,174 | ) | \u2014 | \u2014 | (651 | ) | 75,031 | |||||||||||||||
Garcadia Companies (8) | 179,143 | 21,646 | \u2014 | (26,962 | ) | (173,827 | ) | \u2014 | |||||||||||||||
Linkem | 192,136 | (20,534 | ) | \u2014 | 542 | (6,987 | ) | 165,157 | |||||||||||||||
HomeFed | 341,874 | (4,332 | ) | \u2014 | \u2014 | \u2014 | 337,542 | ||||||||||||||||
Real estate associated companies | 123,010 | 11,288 | \u2014 | (47,224 | ) | \u2014 | 87,074 | ||||||||||||||||
Golden Queen (7) | 105,005 | (51,990 | ) | \u2014 | 10,941 | \u2014 | 63,956 | ||||||||||||||||
Other | 100,744 | (6,022 | ) | (5,477 | ) | (18,275 | ) | (9,816 | ) | 61,154 | |||||||||||||
Total | $ | 2,066,829 | $ | 57,023 | $ | 73,662 | $ | (180,876 | ) | $ | 400,694 | $ | 2,417,332 |
Loans to and investments in associated companies as of December 31, 2016 | Income (losses) related to associated companies | Income (losses) related to Jefferies Group associated companies (1) | Contributions to (distributions from) associated companies, net | Other, including foreign exchange and unrealized gains (losses) | Loans to and investments in associated companies as of December 31, 2017 | ||||||||||||||||||
Jefferies Finance | $ | 490,464 | $ | \u2014 | $ | 90,204 | $ | 74,799 | $ | \u2014 | $ | 655,467 | |||||||||||
Jefferies LoanCore (9) | 154,731 | \u2014 | 22,368 | (3,994 | ) | (173,105 | ) | \u2014 | |||||||||||||||
Berkadia | 184,443 | 93,801 | \u2014 | (67,384 | ) | (266 | ) | 210,594 | |||||||||||||||
FXCM (4) | 336,258 | (177,644 | ) | \u2014 | \u2014 | 242 | 158,856 | ||||||||||||||||
Garcadia Companies | 185,815 | 48,198 | \u2014 | (54,870 | ) | \u2014 | 179,143 | ||||||||||||||||
Linkem | 154,000 | (32,561 | ) | \u2014 | 31,996 | 38,701 | 192,136 | ||||||||||||||||
HomeFed | 302,231 | 7,725 | \u2014 | 31,918 | \u2014 | 341,874 | |||||||||||||||||
Real estate associated companies (10) (11) | 161,400 | (6,224 | ) | \u2014 | 35,204 | (67,370 | ) | 123,010 | |||||||||||||||
Golden Queen (7) | 111,302 | (7,733 | ) | \u2014 | 1,436 | \u2014 | 105,005 | ||||||||||||||||
Other | 44,454 | (463 | ) | (3,177 | ) | 31,837 | 28,093 | 100,744 | |||||||||||||||
Total | $ | 2,125,098 | $ | (74,901 | ) | $ | 109,395 | $ | 80,942 | $ | (173,705 | ) | $ | 2,066,829 |
(1) | Primarily classified in Other revenues. |
(2) | In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. |
(3) | As discussed more fully in Notes 1 and 27, in June 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our then ownership in National Beef to 31%. As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and accounted for our remaining interest under the equity method of accounting. The carrying value of our retained 31% interest was adjusted to a fair value of $592.3 million on the date of sale. On November 29, 2019, we sold our remaining 31% equity interest in National Beef to Marfrig and other shareholders. |
(4) | As further described in Note 5, our investment in FXCM includes both our equity method investment in FXCM and our term loan with FXCM. Our equity method investment is included as Loans to and investments in associated companies and our term loan is included as Trading assets, at fair value in the Consolidated Statements of Financial Condition. |
(5) | Loans to and investments in associated companies at November\u00a030, 2019 include loans and debt securities aggregating $70.2 million related to Linkem and Golden Queen. |
(6) | As further described in Note 1, during the third quarter of 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. From July 1, 2019, HomeFed's equity method investments are included in Real estate associated companies. |
(7) | At November 30, 2019 and 2018, and December 31, 2017, the balance reflects $15.7 million, $15.1 million and $30.5 million, respectively, related to a noncontrolling interest. |
(8) | As more fully discussed in Note 1, during the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family. |
(9) | On October 31, 2017, Jefferies Group sold all of its membership interests in Jefferies LoanCore for approximately $173.1 million. |
(10) | On November 30, 2017, we sold our interest in the general partner of the 54 Madison fund and as a result no longer control the 54 Madison investment committee. We retained two of the four seats on the investment committee and continue to have significant influence over the fund. We therefore deconsolidated the 54 Madison fund and account for our interest under the equity method of accounting. |
(11) | At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests. |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||||||
Assets | $ | 14,699,672 | $ | 17,050,564 | |||||||
Liabilities | 10,146,142 | 11,752,273 | |||||||||
Noncontrolling interest | 209,518 | 154,963 | |||||||||
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Revenues | $ | 10,589,489 | $ | 7,694,612 | $ | 4,883,063 | |||||
Income from continuing operations before extraordinary items | 732,575 | 852,649 | 503,489 | ||||||||
Net income | 749,649 | 798,615 | 438,881 | ||||||||
The Company's income related to associated companies | 248,693 | 130,685 | 34,494 |
Loans to and investments in associated companies as of November 30, 2018 | Income (losses) related to associated companies | Income (losses) related to Jefferies Group associated companies (1) | Contributions to (distributions from) associated companies, net | Other, including foreign exchange and unrealized gains (losses) | Loans to and investments in associated companies as of November 30, 2019 | ||||||||||||||||||
Jefferies Finance | $ | 728,560 | $ | \u2014 | $ | (1,286 | ) | $ | (53,407 | ) | $ | \u2014 | $ | 673,867 | |||||||||
Berkadia (2) | 245,228 | \u2014 | 88,174 | (65,045 | ) | 592 | 268,949 | ||||||||||||||||
National Beef (3) | 653,630 | 232,042 | \u2014 | (300,248 | ) | (585,424 | ) | \u2014 | |||||||||||||||
FXCM (4) | 75,031 | (8,212 | ) | \u2014 | 3,500 | (96 | ) | 70,223 | |||||||||||||||
Linkem (5) | 165,157 | (27,956 | ) | \u2014 | 66,996 | (9,350 | ) | 194,847 | |||||||||||||||
HomeFed (6) | 337,542 | 7,902 | \u2014 | \u2014 | (345,444 | ) | \u2014 | ||||||||||||||||
Real estate associated companies (6) | 87,074 | (353 | ) | \u2014 | (29,685 | ) | 198,273 | 255,309 | |||||||||||||||
Golden Queen (5) (7) | 63,956 | 6,740 | \u2014 | 7,500 | \u2014 | 78,196 | |||||||||||||||||
Other | 61,154 | (7,168 | ) | (1,719 | ) | 58,432 | 867 | 111,566 | |||||||||||||||
Total | $ | 2,417,332 | $ | 202,995 | $ | 85,169 | $ | (311,957 | ) | $ | (740,582 | ) | $ | 1,652,957 |
Loans to and investments in associated companies as of December 31, 2017 | Income (losses) related to associated companies | Income (losses) related to Jefferies Group associated companies (1) | Contributions to (distributions from) associated companies, net | Other, including foreign exchange and unrealized gains (losses) | Loans to and investments in associated companies as of November 30, 2018 | ||||||||||||||||||
Jefferies Finance | $ | 655,467 | $ | \u2014 | $ | 59,138 | $ | 13,955 | $ | \u2014 | $ | 728,560 | |||||||||||
Berkadia (2) | 210,594 | 80,092 | 20,001 | (65,197 | ) | (262 | ) | 245,228 | |||||||||||||||
National Beef (3) | \u2014 | 110,049 | \u2014 | (48,656 | ) | 592,237 | 653,630 | ||||||||||||||||
FXCM (4) | 158,856 | (83,174 | ) | \u2014 | \u2014 | (651 | ) | 75,031 | |||||||||||||||
Garcadia Companies (8) | 179,143 | 21,646 | \u2014 | (26,962 | ) | (173,827 | ) | \u2014 | |||||||||||||||
Linkem | 192,136 | (20,534 | ) | \u2014 | 542 | (6,987 | ) | 165,157 | |||||||||||||||
HomeFed | 341,874 | (4,332 | ) | \u2014 | \u2014 | \u2014 | 337,542 | ||||||||||||||||
Real estate associated companies | 123,010 | 11,288 | \u2014 | (47,224 | ) | \u2014 | 87,074 | ||||||||||||||||
Golden Queen (7) | 105,005 | (51,990 | ) | \u2014 | 10,941 | \u2014 | 63,956 | ||||||||||||||||
Other | 100,744 | (6,022 | ) | (5,477 | ) | (18,275 | ) | (9,816 | ) | 61,154 | |||||||||||||
Total | $ | 2,066,829 | $ | 57,023 | $ | 73,662 | $ | (180,876 | ) | $ | 400,694 | $ | 2,417,332 |
Loans to and investments in associated companies as of December 31, 2016 | Income (losses) related to associated companies | Income (losses) related to Jefferies Group associated companies (1) | Contributions to (distributions from) associated companies, net | Other, including foreign exchange and unrealized gains (losses) | Loans to and investments in associated companies as of December 31, 2017 | ||||||||||||||||||
Jefferies Finance | $ | 490,464 | $ | \u2014 | $ | 90,204 | $ | 74,799 | $ | \u2014 | $ | 655,467 | |||||||||||
Jefferies LoanCore (9) | 154,731 | \u2014 | 22,368 | (3,994 | ) | (173,105 | ) | \u2014 | |||||||||||||||
Berkadia | 184,443 | 93,801 | \u2014 | (67,384 | ) | (266 | ) | 210,594 | |||||||||||||||
FXCM (4) | 336,258 | (177,644 | ) | \u2014 | \u2014 | 242 | 158,856 | ||||||||||||||||
Garcadia Companies | 185,815 | 48,198 | \u2014 | (54,870 | ) | \u2014 | 179,143 | ||||||||||||||||
Linkem | 154,000 | (32,561 | ) | \u2014 | 31,996 | 38,701 | 192,136 | ||||||||||||||||
HomeFed | 302,231 | 7,725 | \u2014 | 31,918 | \u2014 | 341,874 | |||||||||||||||||
Real estate associated companies (10) (11) | 161,400 | (6,224 | ) | \u2014 | 35,204 | (67,370 | ) | 123,010 | |||||||||||||||
Golden Queen (7) | 111,302 | (7,733 | ) | \u2014 | 1,436 | \u2014 | 105,005 | ||||||||||||||||
Other | 44,454 | (463 | ) | (3,177 | ) | 31,837 | 28,093 | 100,744 | |||||||||||||||
Total | $ | 2,125,098 | $ | (74,901 | ) | $ | 109,395 | $ | 80,942 | $ | (173,705 | ) | $ | 2,066,829 |
(1) | Primarily classified in Other revenues. |
(2) | In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. |
(3) | As discussed more fully in Notes 1 and 27, in June 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our then ownership in National Beef to 31%. As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and accounted for our remaining interest under the equity method of accounting. The carrying value of our retained 31% interest was adjusted to a fair value of $592.3 million on the date of sale. On November 29, 2019, we sold our remaining 31% equity interest in National Beef to Marfrig and other shareholders. |
(4) | As further described in Note 5, our investment in FXCM includes both our equity method investment in FXCM and our term loan with FXCM. Our equity method investment is included as Loans to and investments in associated companies and our term loan is included as Trading assets, at fair value in the Consolidated Statements of Financial Condition. |
(5) | Loans to and investments in associated companies at November\u00a030, 2019 include loans and debt securities aggregating $70.2 million related to Linkem and Golden Queen. |
(6) | As further described in Note 1, during the third quarter of 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. From July 1, 2019, HomeFed's equity method investments are included in Real estate associated companies. |
(7) | At November 30, 2019 and 2018, and December 31, 2017, the balance reflects $15.7 million, $15.1 million and $30.5 million, respectively, related to a noncontrolling interest. |
(8) | As more fully discussed in Note 1, during the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family. |
(9) | On October 31, 2017, Jefferies Group sold all of its membership interests in Jefferies LoanCore for approximately $173.1 million. |
(10) | On November 30, 2017, we sold our interest in the general partner of the 54 Madison fund and as a result no longer control the 54 Madison investment committee. We retained two of the four seats on the investment committee and continue to have significant influence over the fund. We therefore deconsolidated the 54 Madison fund and account for our interest under the equity method of accounting. |
(11) | At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests. |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||||||
Assets | $ | 14,699,672 | $ | 17,050,564 | |||||||
Liabilities | 10,146,142 | 11,752,273 | |||||||||
Noncontrolling interest | 209,518 | 154,963 | |||||||||
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Revenues | $ | 10,589,489 | $ | 7,694,612 | $ | 4,883,063 | |||||
Income from continuing operations before extraordinary items | 732,575 | 852,649 | 503,489 | ||||||||
Net income | 749,649 | 798,615 | 438,881 | ||||||||
The Company's income related to associated companies | 248,693 | 130,685 | 34,494 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Indefinite lived intangibles: | |||||||
Exchange and clearing organization membership interests and registrations | $ | 8,273 | $ | 8,524 | |||
Amortizable intangibles: | \u00a0 | \u00a0 | |||||
Customer and other relationships, net of accumulated amortization of $111,060 and $102,579 | 59,575 | 67,894 | |||||
Trademarks and tradename, net of accumulated amortization of $24,800 and $21,086 | 103,790 | 107,262 | |||||
Other, net of accumulated amortization of $5,366 and $4,339 (1) | 11,316 | 4,611 | |||||
Total intangible assets, net | 182,954 | 188,291 | |||||
Goodwill: | \u00a0 | \u00a0 | |||||
Jefferies Group (2) | 1,699,810 | 1,698,381 | |||||
Real estate (1) | 36,711 | \u2014 | |||||
Other operations | 3,459 | 3,459 | |||||
Total goodwill | 1,739,980 | 1,701,840 | |||||
Total intangible assets, net and goodwill | $ | 1,922,934 | $ | 1,890,131 |
2020 | $ | 14,982 | |
2021 | 14,509 | ||
2022 | 11,215 | ||
2023 | 9,959 | ||
2024 | 8,703 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Indefinite lived intangibles: | |||||||
Exchange and clearing organization membership interests and registrations | $ | 8,273 | $ | 8,524 | |||
Amortizable intangibles: | \u00a0 | \u00a0 | |||||
Customer and other relationships, net of accumulated amortization of $111,060 and $102,579 | 59,575 | 67,894 | |||||
Trademarks and tradename, net of accumulated amortization of $24,800 and $21,086 | 103,790 | 107,262 | |||||
Other, net of accumulated amortization of $5,366 and $4,339 (1) | 11,316 | 4,611 | |||||
Total intangible assets, net | 182,954 | 188,291 | |||||
Goodwill: | \u00a0 | \u00a0 | |||||
Jefferies Group (2) | 1,699,810 | 1,698,381 | |||||
Real estate (1) | 36,711 | \u2014 | |||||
Other operations | 3,459 | 3,459 | |||||
Total goodwill | 1,739,980 | 1,701,840 | |||||
Total intangible assets, net and goodwill | $ | 1,922,934 | $ | 1,890,131 |
2020 | $ | 14,982 | |
2021 | 14,509 | ||
2022 | 11,215 | ||
2023 | 9,959 | ||
2024 | 8,703 |
November\u00a030, 2019 | November\u00a030, 2018 | ||||||
Bank loans (1) | $ | 527,509 | $ | 330,942 | |||
Floating rate puttable notes (1) | \u2014 | 56,550 | |||||
Equity-linked notes | 20,981 | \u2014 | |||||
\u00a0\u00a0Total short-term borrowings | $ | 548,490 | $ | 387,492 |
November\u00a030, 2019 | November\u00a030, 2018 | ||||||
Bank loans (1) | $ | 527,509 | $ | 330,942 | |||
Floating rate puttable notes (1) | \u2014 | 56,550 | |||||
Equity-linked notes | 20,981 | \u2014 | |||||
\u00a0\u00a0Total short-term borrowings | $ | 548,490 | $ | 387,492 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Parent Company Debt: | |||||||
Senior Notes: | |||||||
5.50% Senior Notes due October 18, 2023, $750,000 principal | $ | 744,606 | $ | 743,397 | |||
6.625% Senior Notes due October 23, 2043, $250,000 principal | 246,772 | 246,719 | |||||
Total long-term debt \u2013 Parent Company | 991,378 | 990,116 | |||||
Subsidiary Debt (non-recourse to Parent Company): | \u00a0 | \u00a0 | |||||
Jefferies Group: | \u00a0 | \u00a0 | |||||
8.50% Senior Notes, due July\u00a015, 2019, $0 and $680,800 principal | \u2014 | 699,659 | |||||
2.375% Euro Medium Term Notes, due May 20, 2020, $550,875 and $565,500 principal | 550,622 | 564,702 | |||||
6.875% Senior Notes, due April\u00a015, 2021, $750,000 principal | 774,738 | 791,814 | |||||
2.25% Euro Medium Term Notes, due July\u00a013, 2022, $4,407 and $4,524 principal | 4,204 | 4,243 | |||||
5.125% Senior Notes, due January 20, 2023, $600,000 principal | 610,023 | 612,928 | |||||
1.00% Euro Medium Term Notes, due July 19, 2024, $550,875 and $0 principal | 548,880 | \u2014 | |||||
4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) | 768,931 | 709,484 | |||||
6.45% Senior Debentures, due June\u00a08, 2027, $350,000 principal | 371,426 | 373,669 | |||||
4.15% Senior Notes, due January\u00a023, 2030, $1,000,000 principal | 988,662 | 987,788 | |||||
6.25% Senior Debentures, due January\u00a015, 2036, $500,000 principal | 511,260 | 511,662 | |||||
6.50% Senior Notes, due January 20, 2043, $400,000 principal | 420,239 | 420,625 | |||||
Structured Notes (2) (3) | 1,215,285 | 686,170 | |||||
Jefferies Group Revolving Credit Facility | 189,088 | 183,539 | |||||
Jefferies Group Secured Bank Loan | 50,000 | \u2014 | |||||
HomeFed EB-5 Program debt | 140,739 | \u2014 | |||||
Foursight Capital Credit Facilities | 98,260 | \u2014 | |||||
Other | 103,326 | 81,164 | |||||
Total long-term debt \u2013 subsidiaries | 7,345,683 | 6,627,447 | |||||
Long-term debt | $ | 8,337,061 | $ | 7,617,563 |
(1) | Amounts include a loss of $58.9 million and a gain of $27.4 million during the twelve months ended November 30, 2019 and eleven months ended November 30, 2018, respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Notes 2 and 6 for further information. |
(2) | These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income (loss) and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. |
(3) | Of the $1,215.3 million of structured notes at November\u00a030, 2019, $28.0 million matures in 2022, $3.1 million matures in 2024 and the remaining $1,184.2 million matures in 2025 or thereafter. |
2020 | $ | 551.2 | |
2021 | 1,088.7 | ||
2022 | 32.4 | ||
2023 | 1,454.0 | ||
2024 | 696.4 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Parent Company Debt: | |||||||
Senior Notes: | |||||||
5.50% Senior Notes due October 18, 2023, $750,000 principal | $ | 744,606 | $ | 743,397 | |||
6.625% Senior Notes due October 23, 2043, $250,000 principal | 246,772 | 246,719 | |||||
Total long-term debt \u2013 Parent Company | 991,378 | 990,116 | |||||
Subsidiary Debt (non-recourse to Parent Company): | \u00a0 | \u00a0 | |||||
Jefferies Group: | \u00a0 | \u00a0 | |||||
8.50% Senior Notes, due July\u00a015, 2019, $0 and $680,800 principal | \u2014 | 699,659 | |||||
2.375% Euro Medium Term Notes, due May 20, 2020, $550,875 and $565,500 principal | 550,622 | 564,702 | |||||
6.875% Senior Notes, due April\u00a015, 2021, $750,000 principal | 774,738 | 791,814 | |||||
2.25% Euro Medium Term Notes, due July\u00a013, 2022, $4,407 and $4,524 principal | 4,204 | 4,243 | |||||
5.125% Senior Notes, due January 20, 2023, $600,000 principal | 610,023 | 612,928 | |||||
1.00% Euro Medium Term Notes, due July 19, 2024, $550,875 and $0 principal | 548,880 | \u2014 | |||||
4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) | 768,931 | 709,484 | |||||
6.45% Senior Debentures, due June\u00a08, 2027, $350,000 principal | 371,426 | 373,669 | |||||
4.15% Senior Notes, due January\u00a023, 2030, $1,000,000 principal | 988,662 | 987,788 | |||||
6.25% Senior Debentures, due January\u00a015, 2036, $500,000 principal | 511,260 | 511,662 | |||||
6.50% Senior Notes, due January 20, 2043, $400,000 principal | 420,239 | 420,625 | |||||
Structured Notes (2) (3) | 1,215,285 | 686,170 | |||||
Jefferies Group Revolving Credit Facility | 189,088 | 183,539 | |||||
Jefferies Group Secured Bank Loan | 50,000 | \u2014 | |||||
HomeFed EB-5 Program debt | 140,739 | \u2014 | |||||
Foursight Capital Credit Facilities | 98,260 | \u2014 | |||||
Other | 103,326 | 81,164 | |||||
Total long-term debt \u2013 subsidiaries | 7,345,683 | 6,627,447 | |||||
Long-term debt | $ | 8,337,061 | $ | 7,617,563 |
(1) | Amounts include a loss of $58.9 million and a gain of $27.4 million during the twelve months ended November 30, 2019 and eleven months ended November 30, 2018, respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Notes 2 and 6 for further information. |
(2) | These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income (loss) and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. |
2020 | $ | 551.2 | |
2021 | 1,088.7 | ||
2022 | 32.4 | ||
2023 | 1,454.0 | ||
2024 | 696.4 |
Balance, January 1, 2018 | $ | 412,128 | ||
Income allocated to redeemable noncontrolling interests | 37,141 | |||
Distributions to redeemable noncontrolling interests | (70,681 | ) | ||
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital | 21,404 | |||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669 | ) | ||
Deconsolidation of National Beef | (162,323 | ) | ||
Balance, November 30, 2018 | $ | \u2014 |
Balance, January 1, 2018 | $ | 412,128 | ||
Income allocated to redeemable noncontrolling interests | 37,141 | |||
Distributions to redeemable noncontrolling interests | (70,681 | ) | ||
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital | 21,404 | |||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669 | ) | ||
Deconsolidation of National Beef | (162,323 | ) | ||
Balance, November 30, 2018 | $ | \u2014 |
Restricted Stock | Weighted- Average Grant Date Fair Value | |||||
Balance at January 1, 2017 | 1,362 | $ | 22.09 | |||
Grants | 391 | $ | 23.65 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Fulfillment of vesting requirement | (611 | ) | $ | 23.73 | ||
Balance at December 31, 2017 | 1,142 | $ | 21.75 | |||
Grants | 1,077 | $ | 23.63 | |||
Forfeited | (30 | ) | $ | 16.49 | ||
Fulfillment of vesting requirement | (394 | ) | $ | 24.23 | ||
Balance at November 30, 2018 | 1,795 | $ | 22.42 | |||
Grants | 518 | $ | 19.57 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Fulfillment of vesting requirement | (305 | ) | $ | 20.09 | ||
Balance at November 30, 2019 | 2,008 | $ | 22.04 |
Weighted-Average Grant Date Fair Value | |||||||||||||
Future Service Required | No Future Service Required | Future Service Required | No Future Service Required | ||||||||||
Balance at January 1, 2017 | 68 | 10,348 | $ | 26.90 | $ | 26.61 | |||||||
Grants | \u2014 | 104 | $ | \u2014 | $ | 21.55 | |||||||
Distributions of underlying shares | \u2014 | (175 | ) | $ | \u2014 | $ | 26.46 | ||||||
Forfeited | \u2014 | \u2014 | $ | \u2014 | $ | \u2014 | |||||||
Fulfillment of service requirement | (36 | ) | 36 | $ | 26.90 | $ | 26.90 | ||||||
Balance at December 31, 2017 | 32 | 10,313 | $ | 26.90 | $ | 26.57 | |||||||
Grants | \u2014 | 161 | $ | \u2014 | $ | 20.24 | |||||||
Distributions of underlying shares | \u2014 | (192 | ) | $ | \u2014 | $ | 26.39 | ||||||
Forfeited | (2 | ) | (1 | ) | $ | 26.90 | $ | 22.16 | |||||
Fulfillment of service requirement | (28 | ) | 28 | $ | 26.90 | $ | 26.90 | ||||||
Balance at November 30, 2018 | 2 | 10,309 | $ | 26.90 | $ | 26.48 | |||||||
Grants | 10 | 1,308 | $ | 18.83 | $ | 18.15 | |||||||
Distributions of underlying shares | \u2014 | (166 | ) | $ | \u2014 | $ | 25.91 | ||||||
Forfeited | \u2014 | \u2014 | $ | \u2014 | $ | \u2014 | |||||||
Fulfillment of vesting requirement (1) | (2 | ) | 4,216 | $ | 26.90 | $ | 9.99 | ||||||
Balance at November 30, 2019 | 10 | 15,667 | $ | 18.83 | $ | 21.35 |
Target Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Balance at January 1, 2017 | 3,434 | $ | 9.68 | |||
Grants | 2,221 | $ | 19.06 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Balance at December 31, 2017 | 5,655 | $ | 13.37 | |||
Grants | 3,813 | $ | 26.16 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Balance at November 30, 2018 | 9,468 | $ | 18.52 | |||
Grants | 1,237 | $ | 13.63 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Fulfillment of vesting requirement | (4,214 | ) | $ | 9.98 | ||
Balance at November 30, 2019 | 6,491 | $ | 23.13 |
Restricted Stock | Weighted- Average Grant Date Fair Value | |||||
Balance at January 1, 2017 | 1,362 | $ | 22.09 | |||
Grants | 391 | $ | 23.65 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Fulfillment of vesting requirement | (611 | ) | $ | 23.73 | ||
Balance at December 31, 2017 | 1,142 | $ | 21.75 | |||
Grants | 1,077 | $ | 23.63 | |||
Forfeited | (30 | ) | $ | 16.49 | ||
Fulfillment of vesting requirement | (394 | ) | $ | 24.23 | ||
Balance at November 30, 2018 | 1,795 | $ | 22.42 | |||
Grants | 518 | $ | 19.57 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Fulfillment of vesting requirement | (305 | ) | $ | 20.09 | ||
Balance at November 30, 2019 | 2,008 | $ | 22.04 |
Target Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Balance at January 1, 2017 | 3,434 | $ | 9.68 | |||
Grants | 2,221 | $ | 19.06 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Balance at December 31, 2017 | 5,655 | $ | 13.37 | |||
Grants | 3,813 | $ | 26.16 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Balance at November 30, 2018 | 9,468 | $ | 18.52 | |||
Grants | 1,237 | $ | 13.63 | |||
Forfeited | \u2014 | $ | \u2014 | |||
Fulfillment of vesting requirement | (4,214 | ) | $ | 9.98 | ||
Balance at November 30, 2019 | 6,491 | $ | 23.13 |
Weighted-Average Grant Date Fair Value | |||||||||||||
Future Service Required | No Future Service Required | Future Service Required | No Future Service Required | ||||||||||
Balance at January 1, 2017 | 68 | 10,348 | $ | 26.90 | $ | 26.61 | |||||||
Grants | \u2014 | 104 | $ | \u2014 | $ | 21.55 | |||||||
Distributions of underlying shares | \u2014 | (175 | ) | $ | \u2014 | $ | 26.46 | ||||||
Forfeited | \u2014 | \u2014 | $ | \u2014 | $ | \u2014 | |||||||
Fulfillment of service requirement | (36 | ) | 36 | $ | 26.90 | $ | 26.90 | ||||||
Balance at December 31, 2017 | 32 | 10,313 | $ | 26.90 | $ | 26.57 | |||||||
Grants | \u2014 | 161 | $ | \u2014 | $ | 20.24 | |||||||
Distributions of underlying shares | \u2014 | (192 | ) | $ | \u2014 | $ | 26.39 | ||||||
Forfeited | (2 | ) | (1 | ) | $ | 26.90 | $ | 22.16 | |||||
Fulfillment of service requirement | (28 | ) | 28 | $ | 26.90 | $ | 26.90 | ||||||
Balance at November 30, 2018 | 2 | 10,309 | $ | 26.90 | $ | 26.48 | |||||||
Grants | 10 | 1,308 | $ | 18.83 | $ | 18.15 | |||||||
Distributions of underlying shares | \u2014 | (166 | ) | $ | \u2014 | $ | 25.91 | ||||||
Forfeited | \u2014 | \u2014 | $ | \u2014 | $ | \u2014 | |||||||
Fulfillment of vesting requirement (1) | (2 | ) | 4,216 | $ | 26.90 | $ | 9.99 | ||||||
Balance at November 30, 2019 | 10 | 15,667 | $ | 18.83 | $ | 21.35 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | December\u00a031, 2017 | ||||||||
Net unrealized gains on available for sale securities | $ | 141 | $ | 542,832 | $ | 572,085 | |||||
Net unrealized foreign exchange losses | (192,709 | ) | (193,402 | ) | (101,400 | ) | |||||
Net unrealized losses on instrument specific credit risk | (18,889 | ) | (5,728 | ) | (34,432 | ) | |||||
Net unrealized gains (losses) on cash flow hedges | \u2014 | 470 | (1,138 | ) | |||||||
Net minimum pension liability | (61,582 | ) | (55,886 | ) | (62,391 | ) | |||||
\u00a0 | $ | (273,039 | ) | $ | 288,286 | $ | 372,724 |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statement of Operations | ||||||||
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | \u00a0 | |||||||
Net unrealized gains (losses) on available for sale securities, net of income tax provision (benefit) of $(545,054) and $37 | $ | 543,178 | $ | 109 | Other revenues and Income tax provision (benefit) | |||||
Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(52) and $(16) | (149 | ) | 20,459 | Other revenues and Selling, general and other expenses | ||||||
Net unrealized gains (losses) on instrument specific credit risk, net of income tax provision (benefit) of $(144) and $311 | (427 | ) | 916 | Principal transactions revenues | ||||||
Net unrealized gains on cash flow hedges, net of income tax provision (benefit) of $161 and $0 | 470 | \u2014 | Other revenues | |||||||
Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(490) and $(697) | (1,407 | ) | (2,044 | ) | Selling, general and other expenses, which includes pension expense. See Note 18 for information on this component. | |||||
Other pension, net of income tax benefit of $0 and $0 | \u2014 | (5,305 | ) | Compensation and benefits expense | ||||||
Total reclassifications for the period, net of tax | $ | 541,665 | $ | 14,135 | \u00a0 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | December\u00a031, 2017 | ||||||||
Net unrealized gains on available for sale securities | $ | 141 | $ | 542,832 | $ | 572,085 | |||||
Net unrealized foreign exchange losses | (192,709 | ) | (193,402 | ) | (101,400 | ) | |||||
Net unrealized losses on instrument specific credit risk | (18,889 | ) | (5,728 | ) | (34,432 | ) | |||||
Net unrealized gains (losses) on cash flow hedges | \u2014 | 470 | (1,138 | ) | |||||||
Net minimum pension liability | (61,582 | ) | (55,886 | ) | (62,391 | ) | |||||
\u00a0 | $ | (273,039 | ) | $ | 288,286 | $ | 372,724 |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statement of Operations | ||||||||
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | \u00a0 | |||||||
Net unrealized gains (losses) on available for sale securities, net of income tax provision (benefit) of $(545,054) and $37 | $ | 543,178 | $ | 109 | Other revenues and Income tax provision (benefit) | |||||
Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(52) and $(16) | (149 | ) | 20,459 | Other revenues and Selling, general and other expenses | ||||||
Net unrealized gains (losses) on instrument specific credit risk, net of income tax provision (benefit) of $(144) and $311 | (427 | ) | 916 | Principal transactions revenues | ||||||
Net unrealized gains on cash flow hedges, net of income tax provision (benefit) of $161 and $0 | 470 | \u2014 | Other revenues | |||||||
Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(490) and $(697) | (1,407 | ) | (2,044 | ) | Selling, general and other expenses, which includes pension expense. See Note 18 for information on this component. | |||||
Other pension, net of income tax benefit of $0 and $0 | \u2014 | (5,305 | ) | Compensation and benefits expense | ||||||
Total reclassifications for the period, net of tax | $ | 541,665 | $ | 14,135 | \u00a0 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | |||||
Change in projected benefit obligation: | |||||||
Projected benefit obligation, beginning of year | $ | 191,261 | $ | 211,257 | |||
Interest cost | 8,070 | 6,783 | |||||
Actuarial (gains) losses | 29,539 | (16,646 | ) | ||||
Settlement payments | \u2014 | (3,133 | ) | ||||
Benefits paid | (9,996 | ) | (7,000 | ) | |||
Projected benefit obligation, end of year | $ | 218,874 | $ | 191,261 | |||
Change in plan assets: | \u00a0 | \u00a0 | |||||
Fair value of plan assets, beginning of year | $ | 138,992 | $ | 150,806 | |||
Actual return on plan assets | 30,426 | (7,676 | ) | ||||
Employer contributions | 9,655 | 8,890 | |||||
Benefits paid | (9,996 | ) | (7,000 | ) | |||
Settlement payments | \u2014 | (3,133 | ) | ||||
Administrative expenses | (3,006 | ) | (2,895 | ) | |||
Fair value of plan assets, end of year | $ | 166,071 | $ | 138,992 | |||
Funded status at end of year | $ | (52,803 | ) | $ | (52,269 | ) |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Components of net periodic pension cost: | |||||||||||
Interest cost | $ | 8,070 | $ | 6,783 | $ | 8,119 | |||||
Expected return on plan assets | (7,456 | ) | (7,217 | ) | (7,689 | ) | |||||
Settlement charge | \u2014 | 365 | \u2014 | ||||||||
Actuarial losses | 1,897 | 2,376 | 2,207 | ||||||||
Net periodic pension cost | $ | 2,511 | $ | 2,307 | $ | 2,637 | |||||
Amounts recognized in other comprehensive income (loss): | |||||||||||
Net (gains) losses arising during the period | $ | 9,576 | $ | 1,141 | $ | (5,453 | ) | ||||
Settlement charge | \u2014 | (365 | ) | \u2014 | |||||||
Amortization of net loss | (1,897 | ) | (2,376 | ) | (2,207 | ) | |||||
Total recognized in other comprehensive income (loss) | $ | 7,679 | $ | (1,600 | ) | $ | (7,660 | ) | |||
\u00a0 | \u00a0 | \u00a0 | |||||||||
Net amount recognized in net periodic benefit cost and other comprehensive income (loss) | $ | 10,190 | $ | 707 | $ | (5,023 | ) |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||
WilTel Plan | |||||
Discount rate used to determine benefit obligation | 3.00 | % | 4.35 | % | |
Weighted-average assumptions used to determine net pension cost: | \u00a0 | \u00a0 | |||
Discount rate | 4.35 | % | 3.51 | % | |
Expected long-term return on plan assets | 7.00 | % | 7.00 | % | |
Jefferies Group Plan | \u00a0 | \u00a0 | |||
Discount rate used to determine benefit obligation | 2.90 | % | 4.30 | % | |
Weighted-average assumptions used to determine net pension cost: | \u00a0 | \u00a0 | |||
Discount rate | 4.30 | % | 3.60 | % | |
Expected long-term return on plan assets | 6.25 | % | 6.25 | % |
2020 | $ | 9,749 | |
2021 | 9,225 | ||
2022 | 10,001 | ||
2023 | 12,682 | ||
2024 | 13,044 | ||
2025 \u2013 2029 | 67,655 |
\u2022 | The Growth Portfolio consists of global equities and high yield investments. |
\u2022 | The Liability-Driven Investing (\"LDI\") Portfolio consists of long duration credit bonds and a suite of long duration, Treasury-based instruments designed to provide capital-efficient interest rate exposure as well as target specific maturities. The objective of the LDI Portfolio is to seek to achieve performance similar to the WilTel plan's liability by seeking to match the interest rate sensitivity and credit sensitivity. The LDI Portfolio is managed to mitigate volatility in funded status deriving from changes in the discounted value of benefit obligations from market movements in the interest rate and credit components of the underlying discount curve. |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | |||||
Change in projected benefit obligation: | |||||||
Projected benefit obligation, beginning of year | $ | 191,261 | $ | 211,257 | |||
Interest cost | 8,070 | 6,783 | |||||
Actuarial (gains) losses | 29,539 | (16,646 | ) | ||||
Settlement payments | \u2014 | (3,133 | ) | ||||
Benefits paid | (9,996 | ) | (7,000 | ) | |||
Projected benefit obligation, end of year | $ | 218,874 | $ | 191,261 | |||
Change in plan assets: | \u00a0 | \u00a0 | |||||
Fair value of plan assets, beginning of year | $ | 138,992 | $ | 150,806 | |||
Actual return on plan assets | 30,426 | (7,676 | ) | ||||
Employer contributions | 9,655 | 8,890 | |||||
Benefits paid | (9,996 | ) | (7,000 | ) | |||
Settlement payments | \u2014 | (3,133 | ) | ||||
Administrative expenses | (3,006 | ) | (2,895 | ) | |||
Fair value of plan assets, end of year | $ | 166,071 | $ | 138,992 | |||
Funded status at end of year | $ | (52,803 | ) | $ | (52,269 | ) |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Components of net periodic pension cost: | |||||||||||
Interest cost | $ | 8,070 | $ | 6,783 | $ | 8,119 | |||||
Expected return on plan assets | (7,456 | ) | (7,217 | ) | (7,689 | ) | |||||
Settlement charge | \u2014 | 365 | \u2014 | ||||||||
Actuarial losses | 1,897 | 2,376 | 2,207 | ||||||||
Net periodic pension cost | $ | 2,511 | $ | 2,307 | $ | 2,637 | |||||
Amounts recognized in other comprehensive income (loss): | |||||||||||
Net (gains) losses arising during the period | $ | 9,576 | $ | 1,141 | $ | (5,453 | ) | ||||
Settlement charge | \u2014 | (365 | ) | \u2014 | |||||||
Amortization of net loss | (1,897 | ) | (2,376 | ) | (2,207 | ) | |||||
Total recognized in other comprehensive income (loss) | $ | 7,679 | $ | (1,600 | ) | $ | (7,660 | ) | |||
\u00a0 | \u00a0 | \u00a0 | |||||||||
Net amount recognized in net periodic benefit cost and other comprehensive income (loss) | $ | 10,190 | $ | 707 | $ | (5,023 | ) |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Components of net periodic pension cost: | |||||||||||
Interest cost | $ | 8,070 | $ | 6,783 | $ | 8,119 | |||||
Expected return on plan assets | (7,456 | ) | (7,217 | ) | (7,689 | ) | |||||
Settlement charge | \u2014 | 365 | \u2014 | ||||||||
Actuarial losses | 1,897 | 2,376 | 2,207 | ||||||||
Net periodic pension cost | $ | 2,511 | $ | 2,307 | $ | 2,637 | |||||
Amounts recognized in other comprehensive income (loss): | |||||||||||
Net (gains) losses arising during the period | $ | 9,576 | $ | 1,141 | $ | (5,453 | ) | ||||
Settlement charge | \u2014 | (365 | ) | \u2014 | |||||||
Amortization of net loss | (1,897 | ) | (2,376 | ) | (2,207 | ) | |||||
Total recognized in other comprehensive income (loss) | $ | 7,679 | $ | (1,600 | ) | $ | (7,660 | ) | |||
\u00a0 | \u00a0 | \u00a0 | |||||||||
Net amount recognized in net periodic benefit cost and other comprehensive income (loss) | $ | 10,190 | $ | 707 | $ | (5,023 | ) |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||
WilTel Plan | |||||
Discount rate used to determine benefit obligation | 3.00 | % | 4.35 | % | |
Weighted-average assumptions used to determine net pension cost: | \u00a0 | \u00a0 | |||
Discount rate | 4.35 | % | 3.51 | % | |
Expected long-term return on plan assets | 7.00 | % | 7.00 | % | |
Jefferies Group Plan | \u00a0 | \u00a0 | |||
Discount rate used to determine benefit obligation | 2.90 | % | 4.30 | % | |
Weighted-average assumptions used to determine net pension cost: | \u00a0 | \u00a0 | |||
Discount rate | 4.30 | % | 3.60 | % | |
Expected long-term return on plan assets | 6.25 | % | 6.25 | % |
2020 | $ | 9,749 | |
2021 | 9,225 | ||
2022 | 10,001 | ||
2023 | 12,682 | ||
2024 | 13,044 | ||
2025 \u2013 2029 | 67,655 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | ||||||
Revenues from contracts with customers: | |||||||
Commissions and other fees (1) | $ | 675,772 | $ | 662,546 | |||
Investment banking | 1,526,992 | 1,904,870 | |||||
Manufacturing revenues | 324,659 | 357,427 | |||||
Other | 262,705 | 194,799 | |||||
Total revenues from contracts with customers | 2,790,128 | 3,119,642 | |||||
Other sources of revenue: | |||||||
Principal transactions | 559,300 | 232,224 | |||||
Interest income | 1,603,940 | 1,294,325 | |||||
Other | 405,288 | 363,537 | |||||
Total revenues from other sources | 2,568,528 | 1,890,086 | |||||
Total revenues | $ | 5,358,656 | $ | 5,009,728 |
Reportable Segments | |||||||||||||||||||
Major Business Activity: | Investment Banking, Capital Markets and Asset Management | Merchant Banking | Corporate | Consolidation Adjustments | Total | ||||||||||||||
Twelve Months Ended November 30, 2019 | |||||||||||||||||||
Jefferies Group: | |||||||||||||||||||
Equities (1) | $ | 662,804 | $ | \u2014 | $ | \u2014 | $ | (537 | ) | $ | 662,267 | ||||||||
Fixed Income (1) | 13,505 | \u2014 | \u2014 | \u2014 | 13,505 | ||||||||||||||
Investment Banking - Advisory | 767,421 | \u2014 | \u2014 | \u2014 | 767,421 | ||||||||||||||
Investment Banking - Underwriting | 761,308 | \u2014 | \u2014 | (1,737 | ) | 759,571 | |||||||||||||
Asset Management | 17,219 | \u2014 | \u2014 | \u2014 | 17,219 | ||||||||||||||
Manufacturing revenues | \u2014 | 324,659 | \u2014 | \u2014 | 324,659 | ||||||||||||||
Oil and gas revenues | \u2014 | 173,626 | \u2014 | \u2014 | 173,626 | ||||||||||||||
Other revenues | \u2014 | 71,860 | \u2014 | \u2014 | 71,860 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,222,257 | $ | 570,145 | $ | \u2014 | $ | (2,274 | ) | $ | 2,790,128 | ||||||||
Primary Geographic Region: | |||||||||||||||||||
Americas | $ | 1,762,040 | $ | 568,699 | $ | \u2014 | $ | (581 | ) | $ | 2,330,158 | ||||||||
Europe, Middle East and Africa | 381,158 | 1,042 | \u2014 | (1,693 | ) | 380,507 | |||||||||||||
Asia | 79,059 | 404 | \u2014 | \u2014 | 79,463 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,222,257 | $ | 570,145 | $ | \u2014 | $ | (2,274 | ) | $ | 2,790,128 |
(1) | Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Reportable Segments | |||||||||||||||||||
Major Business Activity: | Investment Banking, Capital Markets and Asset Management | Merchant Banking | Corporate | Consolidation Adjustments | Total | ||||||||||||||
Eleven Months Ended November 30, 2018 | |||||||||||||||||||
Jefferies Group: | |||||||||||||||||||
Equities (1) | $ | 649,631 | $ | \u2014 | $ | \u2014 | $ | (919 | ) | $ | 648,712 | ||||||||
Fixed Income (1) | 13,839 | \u2014 | \u2014 | \u2014 | 13,839 | ||||||||||||||
Investment Banking - Advisory | 820,042 | \u2014 | \u2014 | (5,283 | ) | 814,759 | |||||||||||||
Investment Banking - Underwriting | 1,090,161 | \u2014 | \u2014 | (50 | ) | 1,090,111 | |||||||||||||
Asset Management | 21,214 | \u2014 | \u2014 | \u2014 | 21,214 | ||||||||||||||
Manufacturing revenues | \u2014 | 357,427 | \u2014 | \u2014 | 357,427 | ||||||||||||||
Oil and gas revenues | \u2014 | 136,109 | \u2014 | \u2014 | 136,109 | ||||||||||||||
Other revenues | \u2014 | 37,471 | \u2014 | \u2014 | 37,471 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,594,887 | $ | 531,007 | $ | \u2014 | $ | (6,252 | ) | $ | 3,119,642 | ||||||||
Primary Geographic Region: | |||||||||||||||||||
Americas | $ | 2,207,826 | $ | 529,471 | $ | \u2014 | $ | (6,252 | ) | $ | 2,731,045 | ||||||||
Europe, Middle East and Africa | 304,370 | 1,264 | \u2014 | \u2014 | 305,634 | ||||||||||||||
Asia | 82,691 | 272 | \u2014 | \u2014 | 82,963 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,594,887 | $ | 531,007 | $ | \u2014 | $ | (6,252 | ) | $ | 3,119,642 |
(1) | Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Reportable Segments | |||||||||||||||||||
Major Business Activity: | Investment Banking, Capital Markets and Asset Management | Merchant Banking | Corporate | Consolidation Adjustments | Total | ||||||||||||||
Twelve Months Ended November 30, 2019 | |||||||||||||||||||
Jefferies Group: | |||||||||||||||||||
Equities (1) | $ | 662,804 | $ | \u2014 | $ | \u2014 | $ | (537 | ) | $ | 662,267 | ||||||||
Fixed Income (1) | 13,505 | \u2014 | \u2014 | \u2014 | 13,505 | ||||||||||||||
Investment Banking - Advisory | 767,421 | \u2014 | \u2014 | \u2014 | 767,421 | ||||||||||||||
Investment Banking - Underwriting | 761,308 | \u2014 | \u2014 | (1,737 | ) | 759,571 | |||||||||||||
Asset Management | 17,219 | \u2014 | \u2014 | \u2014 | 17,219 | ||||||||||||||
Manufacturing revenues | \u2014 | 324,659 | \u2014 | \u2014 | 324,659 | ||||||||||||||
Oil and gas revenues | \u2014 | 173,626 | \u2014 | \u2014 | 173,626 | ||||||||||||||
Other revenues | \u2014 | 71,860 | \u2014 | \u2014 | 71,860 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,222,257 | $ | 570,145 | $ | \u2014 | $ | (2,274 | ) | $ | 2,790,128 | ||||||||
Primary Geographic Region: | |||||||||||||||||||
Americas | $ | 1,762,040 | $ | 568,699 | $ | \u2014 | $ | (581 | ) | $ | 2,330,158 | ||||||||
Europe, Middle East and Africa | 381,158 | 1,042 | \u2014 | (1,693 | ) | 380,507 | |||||||||||||
Asia | 79,059 | 404 | \u2014 | \u2014 | 79,463 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,222,257 | $ | 570,145 | $ | \u2014 | $ | (2,274 | ) | $ | 2,790,128 |
(1) | Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Reportable Segments | |||||||||||||||||||
Major Business Activity: | Investment Banking, Capital Markets and Asset Management | Merchant Banking | Corporate | Consolidation Adjustments | Total | ||||||||||||||
Eleven Months Ended November 30, 2018 | |||||||||||||||||||
Jefferies Group: | |||||||||||||||||||
Equities (1) | $ | 649,631 | $ | \u2014 | $ | \u2014 | $ | (919 | ) | $ | 648,712 | ||||||||
Fixed Income (1) | 13,839 | \u2014 | \u2014 | \u2014 | 13,839 | ||||||||||||||
Investment Banking - Advisory | 820,042 | \u2014 | \u2014 | (5,283 | ) | 814,759 | |||||||||||||
Investment Banking - Underwriting | 1,090,161 | \u2014 | \u2014 | (50 | ) | 1,090,111 | |||||||||||||
Asset Management | 21,214 | \u2014 | \u2014 | \u2014 | 21,214 | ||||||||||||||
Manufacturing revenues | \u2014 | 357,427 | \u2014 | \u2014 | 357,427 | ||||||||||||||
Oil and gas revenues | \u2014 | 136,109 | \u2014 | \u2014 | 136,109 | ||||||||||||||
Other revenues | \u2014 | 37,471 | \u2014 | \u2014 | 37,471 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,594,887 | $ | 531,007 | $ | \u2014 | $ | (6,252 | ) | $ | 3,119,642 | ||||||||
Primary Geographic Region: | |||||||||||||||||||
Americas | $ | 2,207,826 | $ | 529,471 | $ | \u2014 | $ | (6,252 | ) | $ | 2,731,045 | ||||||||
Europe, Middle East and Africa | 304,370 | 1,264 | \u2014 | \u2014 | 305,634 | ||||||||||||||
Asia | 82,691 | 272 | \u2014 | \u2014 | 82,963 | ||||||||||||||
Total revenues from contracts with customers | $ | 2,594,887 | $ | 531,007 | $ | \u2014 | $ | (6,252 | ) | $ | 3,119,642 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | ||||||
Revenues from contracts with customers: | |||||||
Commissions and other fees (1) | $ | 675,772 | $ | 662,546 | |||
Investment banking | 1,526,992 | 1,904,870 | |||||
Manufacturing revenues | 324,659 | 357,427 | |||||
Other | 262,705 | 194,799 | |||||
Total revenues from contracts with customers | 2,790,128 | 3,119,642 | |||||
Other sources of revenue: | |||||||
Principal transactions | 559,300 | 232,224 | |||||
Interest income | 1,603,940 | 1,294,325 | |||||
Other | 405,288 | 363,537 | |||||
Total revenues from other sources | 2,568,528 | 1,890,086 | |||||
Total revenues | $ | 5,358,656 | $ | 5,009,728 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Current taxes: | |||||||||||
\u00a0\u00a0U.S. Federal | $ | (10,000 | ) | $ | 10,000 | $ | (1,060 | ) | |||
U.S. state and local | 53,211 | 37,439 | 33,132 | ||||||||
Foreign | 11,026 | 11,077 | 14,597 | ||||||||
\u00a0\u00a0\u00a0\u00a0Total current | 54,237 | 58,516 | 46,669 | ||||||||
Deferred taxes: | |||||||||||
\u00a0\u00a0U.S. Federal | 83,197 | 39,448 | 586,014 | ||||||||
U.S. state and local | (73,482 | ) | (73,013 | ) | 1,452 | ||||||
Foreign | (3,324 | ) | (5,943 | ) | 8,151 | ||||||
\u00a0\u00a0\u00a0\u00a0Total deferred | 6,391 | (39,508 | ) | 595,617 | |||||||
Recognition of accumulated other comprehensive income lodged taxes | (544,583 | ) | \u2014 | \u2014 | |||||||
Total income tax provision (benefit) | $ | (483,955 | ) | $ | 19,008 | $ | 642,286 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
U.S. | $ | 495,566 | $ | 284,177 | $ | 535,955 | |||||
Non-U.S. (1) | (16,958 | ) | 11,923 | 70,547 | |||||||
Income from continuing operations before income taxes | $ | 478,608 | $ | 296,100 | $ | 606,502 |
(1) | For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||||||||||||
\u00a0 | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Computed expected federal income tax | $ | 100,508 | 21.0 | \u00a0% | $ | 62,181 | 21.0 | \u00a0% | $ | 212,276 | 35.0 | \u00a0% | ||||||||
Increase (decrease) in income taxes resulting from: | ||||||||||||||||||||
State and local income taxes, net of federal income tax benefit | 25,648 | 5.4 | 12,391 | 4.2 | 14,115 | 2.3 | ||||||||||||||
Recognition of accumulated other comprehensive income lodged taxes | (544,583 | ) | (113.8 | ) | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||
International operations (including foreign rate differential) | 4,518 | 0.9 | 1,823 | 0.6 | (11,577 | ) | (1.9 | ) | ||||||||||||
Decrease in valuation allowance | (19,993 | ) | (4.2 | ) | (48,058 | ) | (16.2 | ) | \u2014 | \u2014 | ||||||||||
Permanent differences | 10,545 | 2.2 | 12,331 | 4.2 | 4,933 | 0.8 | ||||||||||||||
Foreign tax credits | (5,012 | ) | (1.0 | ) | (9,046 | ) | (3.1 | ) | (32,974 | ) | (5.4 | ) | ||||||||
Deferred tax asset remeasurement related to the Tax Act | \u2014 | \u2014 | 5,673 | 1.9 | 415,000 | 68.4 | ||||||||||||||
Transition tax on foreign earnings related to the Tax Act | (6,708 | ) | (1.4 | ) | 2,590 | 0.9 | 35,500 | 5.9 | ||||||||||||
Base erosion and anti-abuse tax (BEAT) | (10,000 | ) | (2.1 | ) | 10,000 | 3.4 | \u2014 | \u2014 | ||||||||||||
Change in unrecognized tax benefits related to prior years | (20,512 | ) | (4.3 | ) | (19,783 | ) | (6.7 | ) | 1,553 | 0.3 | ||||||||||
Spectrum Brands distribution | 11,996 | 2.5 | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||||
Acquisition of HomeFed | (36,779 | ) | (7.7 | ) | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||
Other, net | 6,417 | 1.4 | (11,094 | ) | (3.8 | ) | 3,460 | 0.5 | ||||||||||||
Actual income tax provision | $ | (483,955 | ) | (101.1 | )% | $ | 19,008 | 6.4 | \u00a0% | $ | 642,286 | 105.9 | \u00a0% |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Balance at beginning of period | $ | 197,320 | $ | 169,020 | $ | 148,848 | |||||
Increases based on tax positions related to the current period | 42,306 | 48,083 | 18,619 | ||||||||
Increases based on tax positions related to prior periods | 33,007 | 17,521 | 10,358 | ||||||||
Decreases based on tax positions related to prior periods | (11,006 | ) | (36,324 | ) | (8,805 | ) | |||||
Decreases related to settlements with taxing authorities | (1,489 | ) | (980 | ) | \u2014 | ||||||
Balance at end of period | $ | 260,138 | $ | 197,320 | $ | 169,020 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Deferred tax asset: | |||||||
Net operating loss carryover | $ | 48,695 | $ | 282,650 | |||
Compensation and benefits | 260,590 | 269,788 | |||||
Tax credits | 91,390 | 66,272 | |||||
Securities valuation reserves | 92,407 | 76,931 | |||||
Other | 213,338 | 156,751 | |||||
\u00a0 | 706,420 | 852,392 | |||||
Valuation allowance | (18,519 | ) | (38,512 | ) | |||
\u00a0 | 687,901 | 813,880 | |||||
Deferred tax liability: | \u00a0 | \u00a0 | |||||
Amortization of intangible assets | (68,933 | ) | (69,970 | ) | |||
Investment in associated companies | (76,308 | ) | (171,006 | ) | |||
Other | (80,192 | ) | (60,115 | ) | |||
\u00a0 | (225,433 | ) | (301,091 | ) | |||
Net deferred tax asset | $ | 462,468 | $ | 512,789 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Current taxes: | |||||||||||
\u00a0\u00a0U.S. Federal | $ | (10,000 | ) | $ | 10,000 | $ | (1,060 | ) | |||
U.S. state and local | 53,211 | 37,439 | 33,132 | ||||||||
Foreign | 11,026 | 11,077 | 14,597 | ||||||||
\u00a0\u00a0\u00a0\u00a0Total current | 54,237 | 58,516 | 46,669 | ||||||||
Deferred taxes: | |||||||||||
\u00a0\u00a0U.S. Federal | 83,197 | 39,448 | 586,014 | ||||||||
U.S. state and local | (73,482 | ) | (73,013 | ) | 1,452 | ||||||
Foreign | (3,324 | ) | (5,943 | ) | 8,151 | ||||||
\u00a0\u00a0\u00a0\u00a0Total deferred | 6,391 | (39,508 | ) | 595,617 | |||||||
Recognition of accumulated other comprehensive income lodged taxes | (544,583 | ) | \u2014 | \u2014 | |||||||
Total income tax provision (benefit) | $ | (483,955 | ) | $ | 19,008 | $ | 642,286 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
U.S. | $ | 495,566 | $ | 284,177 | $ | 535,955 | |||||
Non-U.S. (1) | (16,958 | ) | 11,923 | 70,547 | |||||||
Income from continuing operations before income taxes | $ | 478,608 | $ | 296,100 | $ | 606,502 |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||||||||||||
\u00a0 | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Computed expected federal income tax | $ | 100,508 | 21.0 | \u00a0% | $ | 62,181 | 21.0 | \u00a0% | $ | 212,276 | 35.0 | \u00a0% | ||||||||
Increase (decrease) in income taxes resulting from: | ||||||||||||||||||||
State and local income taxes, net of federal income tax benefit | 25,648 | 5.4 | 12,391 | 4.2 | 14,115 | 2.3 | ||||||||||||||
Recognition of accumulated other comprehensive income lodged taxes | (544,583 | ) | (113.8 | ) | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||
International operations (including foreign rate differential) | 4,518 | 0.9 | 1,823 | 0.6 | (11,577 | ) | (1.9 | ) | ||||||||||||
Decrease in valuation allowance | (19,993 | ) | (4.2 | ) | (48,058 | ) | (16.2 | ) | \u2014 | \u2014 | ||||||||||
Permanent differences | 10,545 | 2.2 | 12,331 | 4.2 | 4,933 | 0.8 | ||||||||||||||
Foreign tax credits | (5,012 | ) | (1.0 | ) | (9,046 | ) | (3.1 | ) | (32,974 | ) | (5.4 | ) | ||||||||
Deferred tax asset remeasurement related to the Tax Act | \u2014 | \u2014 | 5,673 | 1.9 | 415,000 | 68.4 | ||||||||||||||
Transition tax on foreign earnings related to the Tax Act | (6,708 | ) | (1.4 | ) | 2,590 | 0.9 | 35,500 | 5.9 | ||||||||||||
Base erosion and anti-abuse tax (BEAT) | (10,000 | ) | (2.1 | ) | 10,000 | 3.4 | \u2014 | \u2014 | ||||||||||||
Change in unrecognized tax benefits related to prior years | (20,512 | ) | (4.3 | ) | (19,783 | ) | (6.7 | ) | 1,553 | 0.3 | ||||||||||
Spectrum Brands distribution | 11,996 | 2.5 | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||||
Acquisition of HomeFed | (36,779 | ) | (7.7 | ) | \u2014 | \u2014 | \u2014 | \u2014 | ||||||||||||
Other, net | 6,417 | 1.4 | (11,094 | ) | (3.8 | ) | 3,460 | 0.5 | ||||||||||||
Actual income tax provision | $ | (483,955 | ) | (101.1 | )% | $ | 19,008 | 6.4 | \u00a0% | $ | 642,286 | 105.9 | \u00a0% |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Balance at beginning of period | $ | 197,320 | $ | 169,020 | $ | 148,848 | |||||
Increases based on tax positions related to the current period | 42,306 | 48,083 | 18,619 | ||||||||
Increases based on tax positions related to prior periods | 33,007 | 17,521 | 10,358 | ||||||||
Decreases based on tax positions related to prior periods | (11,006 | ) | (36,324 | ) | (8,805 | ) | |||||
Decreases related to settlements with taxing authorities | (1,489 | ) | (980 | ) | \u2014 | ||||||
Balance at end of period | $ | 260,138 | $ | 197,320 | $ | 169,020 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||
Deferred tax asset: | |||||||
Net operating loss carryover | $ | 48,695 | $ | 282,650 | |||
Compensation and benefits | 260,590 | 269,788 | |||||
Tax credits | 91,390 | 66,272 | |||||
Securities valuation reserves | 92,407 | 76,931 | |||||
Other | 213,338 | 156,751 | |||||
\u00a0 | 706,420 | 852,392 | |||||
Valuation allowance | (18,519 | ) | (38,512 | ) | |||
\u00a0 | 687,901 | 813,880 | |||||
Deferred tax liability: | \u00a0 | \u00a0 | |||||
Amortization of intangible assets | (68,933 | ) | (69,970 | ) | |||
Investment in associated companies | (76,308 | ) | (171,006 | ) | |||
Other | (80,192 | ) | (60,115 | ) | |||
\u00a0 | (225,433 | ) | (301,091 | ) | |||
Net deferred tax asset | $ | 462,468 | $ | 512,789 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Asset management fees and revenues | $ | 26,254 | $ | 28,144 | $ | 28,831 | |||||
Dividend income | 10,740 | 5,416 | (452 | ) | |||||||
Income from associated companies classified as other revenues | 85,169 | 73,975 | 75,889 | ||||||||
Revenues of oil and gas production and development businesses | 175,169 | 127,090 | 61,541 | ||||||||
Net realized securities gains (losses) | 3,255 | (939 | ) | 23,028 | |||||||
Gain on sale of National Beef | 205,017 | \u2014 | \u2014 | ||||||||
Gain on revaluation of our interest in HomeFed | 72,142 | \u2014 | \u2014 | ||||||||
Gain on sale of Garcadia | \u2014 | 221,712 | \u2014 | ||||||||
Gain on sale of Conwed | \u2014 | \u2014 | 178,236 | ||||||||
Other (1) | 90,247 | 102,938 | 57,715 | ||||||||
\u00a0 | $ | 667,993 | $ | 558,336 | $ | 424,788 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Asset management fees and revenues | $ | 26,254 | $ | 28,144 | $ | 28,831 | |||||
Dividend income | 10,740 | 5,416 | (452 | ) | |||||||
Income from associated companies classified as other revenues | 85,169 | 73,975 | 75,889 | ||||||||
Revenues of oil and gas production and development businesses | 175,169 | 127,090 | 61,541 | ||||||||
Net realized securities gains (losses) | 3,255 | (939 | ) | 23,028 | |||||||
Gain on sale of National Beef | 205,017 | \u2014 | \u2014 | ||||||||
Gain on revaluation of our interest in HomeFed | 72,142 | \u2014 | \u2014 | ||||||||
Gain on sale of Garcadia | \u2014 | 221,712 | \u2014 | ||||||||
Gain on sale of Conwed | \u2014 | \u2014 | 178,236 | ||||||||
Other (1) | 90,247 | 102,938 | 57,715 | ||||||||
\u00a0 | $ | 667,993 | $ | 558,336 | $ | 424,788 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Numerator for earnings per share: | |||||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ | 959,593 | $ | 1,022,318 | $ | 167,351 | |||||
Allocation of earnings to participating securities (1) | (5,576 | ) | (5,107 | ) | (610 | ) | |||||
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 954,017 | 1,017,211 | 166,741 | ||||||||
Adjustment to allocation of earnings to participating securities related to diluted shares (1) | (5 | ) | 28 | (14 | ) | ||||||
Mandatorily redeemable convertible preferred share dividends | 5,103 | \u2014 | \u2014 | ||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ | 959,115 | $ | 1,017,239 | $ | 166,727 | |||||
Denominator for earnings per share: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Weighted average common shares outstanding | 297,796 | 337,817 | 358,482 | ||||||||
Weighted average shares of restricted stock outstanding with future service required | (1,939 | ) | (1,707 | ) | (1,349 | ) | |||||
Weighted average RSUs outstanding with no future service required | 14,837 | 11,151 | 11,064 | ||||||||
Denominator for basic earnings per share \u2013 weighted average shares | 310,694 | 347,261 | 368,197 | ||||||||
Stock options | \u2014 | 7 | 24 | ||||||||
Senior executive compensation plan awards | 2,140 | 4,007 | 2,480 | ||||||||
Mandatorily redeemable convertible preferred shares | 4,198 | \u2014 | \u2014 | ||||||||
Denominator for diluted earnings per share | 317,032 | 351,275 | 370,701 |
(1) | Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities.\u00a0Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 1,947,600, 1,724,800 and 1,401,000 for the twelve months ended November 30, 2019, the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017, respectively.\u00a0Dividends declared on participating securities were $3.6 million during the twelve months ended November 30, 2019 and were not material during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017.\u00a0Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
Numerator for earnings per share: | |||||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ | 959,593 | $ | 1,022,318 | $ | 167,351 | |||||
Allocation of earnings to participating securities (1) | (5,576 | ) | (5,107 | ) | (610 | ) | |||||
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 954,017 | 1,017,211 | 166,741 | ||||||||
Adjustment to allocation of earnings to participating securities related to diluted shares (1) | (5 | ) | 28 | (14 | ) | ||||||
Mandatorily redeemable convertible preferred share dividends | 5,103 | \u2014 | \u2014 | ||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ | 959,115 | $ | 1,017,239 | $ | 166,727 | |||||
Denominator for earnings per share: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Weighted average common shares outstanding | 297,796 | 337,817 | 358,482 | ||||||||
Weighted average shares of restricted stock outstanding with future service required | (1,939 | ) | (1,707 | ) | (1,349 | ) | |||||
Weighted average RSUs outstanding with no future service required | 14,837 | 11,151 | 11,064 | ||||||||
Denominator for basic earnings per share \u2013 weighted average shares | 310,694 | 347,261 | 368,197 | ||||||||
Stock options | \u2014 | 7 | 24 | ||||||||
Senior executive compensation plan awards | 2,140 | 4,007 | 2,480 | ||||||||
Mandatorily redeemable convertible preferred shares | 4,198 | \u2014 | \u2014 | ||||||||
Denominator for diluted earnings per share | 317,032 | 351,275 | 370,701 |
2020 | $ | 70,886 | |
2021 | 73,374 | ||
2022 | 71,464 | ||
2023 | 62,552 | ||
2024 | 59,714 | ||
Thereafter | 393,995 | ||
\u00a0 | 731,985 | ||
Less:\u00a0 sublease income | (21,883 | ) | |
\u00a0 | $ | 710,102 |
Expected Maturity Date | |||||||||||||||||||||||
\u00a0 | 2020 | 2021 | 2022 and 2023 | 2024 and 2025 | 2026 and Later | Maximum Payout\u00a0 | |||||||||||||||||
Equity commitments (1) | $ | 174.8 | $ | 55.2 | $ | 75.0 | $ | \u2014 | $ | 14.3 | $ | 319.3 | |||||||||||
Loan commitments (1) | 250.0 | 45.0 | 10.0 | 9.3 | \u2014 | 314.3 | |||||||||||||||||
Underwriting commitments | 13.5 | \u2014 | \u2014 | \u2014 | \u2014 | 13.5 | |||||||||||||||||
Forward starting reverse repos (2) | 5,475.3 | \u2014 | \u2014 | \u2014 | \u2014 | 5,475.3 | |||||||||||||||||
Forward starting repos (2) | 2,168.8 | \u2014 | \u2014 | \u2014 | \u2014 | 2,168.8 | |||||||||||||||||
Other unfunded commitments (1) | 72.3 | 132.2 | \u2014 | 4.9 | \u2014 | 209.4 | |||||||||||||||||
\u00a0 | $ | 8,154.7 | $ | 232.4 | $ | 85.0 | $ | 14.2 | $ | 14.3 | $ | 8,500.6 |
(1) | Equity commitments, loan commitments and other unfunded commitments are presented by contractual maturity date.\u00a0The amounts are however mostly available on demand. |
(2) | At November\u00a030, 2019, all of the forward starting securities purchased under agreements to resell and $2,157.7 million within forward starting securities sold under agreements to repurchase settled within three business days. |
\u00a0 | Expected Maturity Date | ||||||||||||||||||||||
Guarantee Type | 2020 | 2021 | 2022 and 2023 | 2024 and 2025 | 2026 and Later | Notional/ Maximum Payout | |||||||||||||||||
Derivative contracts \u2013 non-credit related | $ | 9,854.0 | $ | 3,150.8 | $ | 4,453.6 | $ | 1,044.8 | $ | 48.2 | $ | 18,551.4 | |||||||||||
Written derivative contracts \u2013 credit related | 1.5 | \u2014 | 2.7 | 29.7 | \u2014 | 33.9 | |||||||||||||||||
Total derivative contracts | $ | 9,855.5 | $ | 3,150.8 | $ | 4,456.3 | $ | 1,074.5 | $ | 48.2 | $ | 18,585.3 |
2020 | $ | 70,886 | |
2021 | 73,374 | ||
2022 | 71,464 | ||
2023 | 62,552 | ||
2024 | 59,714 | ||
Thereafter | 393,995 | ||
\u00a0 | 731,985 | ||
Less:\u00a0 sublease income | (21,883 | ) | |
\u00a0 | $ | 710,102 |
Expected Maturity Date | |||||||||||||||||||||||
\u00a0 | 2020 | 2021 | 2022 and 2023 | 2024 and 2025 | 2026 and Later | Maximum Payout\u00a0 | |||||||||||||||||
Equity commitments (1) | $ | 174.8 | $ | 55.2 | $ | 75.0 | $ | \u2014 | $ | 14.3 | $ | 319.3 | |||||||||||
Loan commitments (1) | 250.0 | 45.0 | 10.0 | 9.3 | \u2014 | 314.3 | |||||||||||||||||
Underwriting commitments | 13.5 | \u2014 | \u2014 | \u2014 | \u2014 | 13.5 | |||||||||||||||||
Forward starting reverse repos (2) | 5,475.3 | \u2014 | \u2014 | \u2014 | \u2014 | 5,475.3 | |||||||||||||||||
Forward starting repos (2) | 2,168.8 | \u2014 | \u2014 | \u2014 | \u2014 | 2,168.8 | |||||||||||||||||
Other unfunded commitments (1) | 72.3 | 132.2 | \u2014 | 4.9 | \u2014 | 209.4 | |||||||||||||||||
\u00a0 | $ | 8,154.7 | $ | 232.4 | $ | 85.0 | $ | 14.2 | $ | 14.3 | $ | 8,500.6 |
(1) | Equity commitments, loan commitments and other unfunded commitments are presented by contractual maturity date.\u00a0The amounts are however mostly available on demand. |
\u00a0 | Expected Maturity Date | ||||||||||||||||||||||
Guarantee Type | 2020 | 2021 | 2022 and 2023 | 2024 and 2025 | 2026 and Later | Notional/ Maximum Payout | |||||||||||||||||
Derivative contracts \u2013 non-credit related | $ | 9,854.0 | $ | 3,150.8 | $ | 4,453.6 | $ | 1,044.8 | $ | 48.2 | $ | 18,551.4 | |||||||||||
Written derivative contracts \u2013 credit related | 1.5 | \u2014 | 2.7 | 29.7 | \u2014 | 33.9 | |||||||||||||||||
Total derivative contracts | $ | 9,855.5 | $ | 3,150.8 | $ | 4,456.3 | $ | 1,074.5 | $ | 48.2 | $ | 18,585.3 |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Other Assets: | |||||||||||||||
Notes and loans receivable (1) | $ | 775,501 | $ | 784,053 | $ | 680,015 | $ | 676,152 | |||||||
Financial Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Short-term borrowings (2) | 548,490 | 548,490 | 387,492 | 387,492 | |||||||||||
Long-term debt (3) | 7,121,776 | 7,569,837 | 6,931,393 | 6,826,503 |
(1) | Notes and loans receivable:\u00a0 The fair values are estimated principally based on a discounted future cash flows model using market interest rates for similar instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. |
(2) | Short-term borrowings:\u00a0 The fair values of short-term borrowings carried at cost are estimated to be the carrying amount due to their short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Short-term borrowings that are accounted for at fair value include equity-linked notes, which are generally categorized within Level 2 of the fair value hierarchy, as the fair value is based on the price of the underlying equity security. |
\u00a0 | November\u00a030, 2019 | November\u00a030, 2018 | |||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Other Assets: | |||||||||||||||
Notes and loans receivable (1) | $ | 775,501 | $ | 784,053 | $ | 680,015 | $ | 676,152 | |||||||
Financial Liabilities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Short-term borrowings (2) | 548,490 | 548,490 | 387,492 | 387,492 | |||||||||||
Long-term debt (3) | 7,121,776 | 7,569,837 | 6,931,393 | 6,826,503 |
(1) | Notes and loans receivable:\u00a0 The fair values are estimated principally based on a discounted future cash flows model using market interest rates for similar instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. |
(2) | Short-term borrowings:\u00a0 The fair values of short-term borrowings carried at cost are estimated to be the carrying amount due to their short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Short-term borrowings that are accounted for at fair value include equity-linked notes, which are generally categorized within Level 2 of the fair value hierarchy, as the fair value is based on the price of the underlying equity security. |
\u00a0 | Period Ended June 4, 2018 (1) | Twelve Months Ended December 31, 2017 | ||||||
Revenues: | ||||||||
Beef processing services | $ | 3,137,611 | $ | 7,353,663 | ||||
Interest income | 131 | 339 | ||||||
Other | 4,329 | 4,946 | ||||||
Total revenues | 3,142,071 | 7,358,948 | ||||||
Expenses: | \u00a0 | \u00a0 | ||||||
Compensation and benefits | 17,414 | 39,884 | ||||||
Cost of sales | 2,884,983 | 6,764,055 | ||||||
Interest expense | 4,316 | 6,657 | ||||||
Depreciation and amortization | 43,959 | 98,515 | ||||||
Selling, general and other expenses | 14,291 | 42,525 | ||||||
Total expenses | 2,964,963 | 6,951,636 | ||||||
Income from discontinued operations before income taxes | 177,108 | 407,312 | ||||||
Income tax provision | 47,045 | 118,681 | ||||||
Income from discontinued operations, net of income tax provision | $ | 130,063 | $ | 288,631 |
\u00a0 | Period Ended June 4, 2018 (1) | Twelve Months Ended December 31, 2017 | ||||||
Revenues: | ||||||||
Beef processing services | $ | 3,137,611 | $ | 7,353,663 | ||||
Interest income | 131 | 339 | ||||||
Other | 4,329 | 4,946 | ||||||
Total revenues | 3,142,071 | 7,358,948 | ||||||
Expenses: | \u00a0 | \u00a0 | ||||||
Compensation and benefits | 17,414 | 39,884 | ||||||
Cost of sales | 2,884,983 | 6,764,055 | ||||||
Interest expense | 4,316 | 6,657 | ||||||
Depreciation and amortization | 43,959 | 98,515 | ||||||
Selling, general and other expenses | 14,291 | 42,525 | ||||||
Total expenses | 2,964,963 | 6,951,636 | ||||||
Income from discontinued operations before income taxes | 177,108 | 407,312 | ||||||
Income tax provision | 47,045 | 118,681 | ||||||
Income from discontinued operations, net of income tax provision | $ | 130,063 | $ | 288,631 |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
\u00a0 | (In thousands) | ||||||||||
Net revenues: | |||||||||||
Reportable Segments: | |||||||||||
Investment Banking, Capital Markets and Asset Management (1) | $ | 3,112,530 | $ | 3,183,376 | $ | 3,198,109 | |||||
Merchant Banking (1) | 746,369 | 571,831 | 876,180 | ||||||||
Corporate | 32,833 | 22,300 | 6,306 | ||||||||
Total net revenues related to reportable segments | 3,891,732 | 3,777,507 | 4,080,595 | ||||||||
Consolidation adjustments | 1,244 | (13,473 | ) | (3,150 | ) | ||||||
Total consolidated net revenues | $ | 3,892,976 | $ | 3,764,034 | $ | 4,077,445 | |||||
Income (loss) from continuing operations before income taxes: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Reportable Segments: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investment Banking, Capital Markets and Asset Management (1) | $ | 324,669 | $ | 409,667 | $ | 504,924 | |||||
Merchant Banking (1) | 266,852 | 10,488 | 228,373 | ||||||||
\u00a0\u00a0Corporate | (68,467 | ) | (66,140 | ) | (78,802 | ) | |||||
Income from continuing operations before income taxes related to reportable segments | 523,054 | 354,015 | 654,495 | ||||||||
Parent Company interest | (53,048 | ) | (54,090 | ) | (58,943 | ) | |||||
Consolidation adjustments | 8,602 | (3,825 | ) | 10,950 | |||||||
Total consolidated income from continuing operations before income taxes | $ | 478,608 | $ | 296,100 | $ | 606,502 | |||||
Depreciation and amortization expenses: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Reportable Segments: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investment Banking, Capital Markets and Asset Management (1) | $ | 79,204 | $ | 68,296 | $ | 62,668 | |||||
Merchant Banking (1) | 70,192 | 48,852 | 44,257 | ||||||||
\u00a0\u00a0Corporate | 3,475 | 3,169 | 3,470 | ||||||||
Total consolidated depreciation and amortization expenses | $ | 152,871 | $ | 120,317 | $ | 110,395 | |||||
November\u00a030, 2019 | November\u00a030, 2018 | December\u00a031, 2017 | |||||||||
Identifiable assets employed: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Reportable Segments: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investment Banking, Capital Markets and Asset Management (1) (2) | $ | 43,571,397 | $ | 41,224,984 | $ | 39,575,732 | |||||
Merchant Banking (1) | 3,551,213 | 4,190,484 | 4,903,530 | ||||||||
National Beef | \u2014 | \u2014 | 1,460,539 | ||||||||
Corporate | 2,432,119 | 1,838,037 | 1,299,628 | ||||||||
Identifiable assets employed related to reportable segments | 49,554,729 | 47,253,505 | 47,239,429 | ||||||||
Consolidation adjustments | (94,495 | ) | (122,410 | ) | (70,321 | ) | |||||
Total consolidated assets | $ | 49,460,234 | $ | 47,131,095 | $ | 47,169,108 |
(1) | Amounts related to LAM seed investments and Berkadia are included in Merchant Banking prior to their transfer to the Investment Banking, Capital Markets and Asset Management segment in the fourth quarter of 2018. Revenues related to the net assets transferred were $6.7 million and $49.6 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017, respectively. Income from continuing operations before income taxes related to the net assets transferred were $47.7 million and $118.4 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017, respectively. Identifiable assets employed related to the net assets transferred were $662.2 million at December 31, 2017. |
(2) | Includes $197.7 million, $243.2 million and $213.0 million at November 30, 2019 and 2018, and December 31, 2017, respectively, of the deferred tax asset, net. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Americas (1) | $ | 2,407,553 | $ | 2,652,917 | $ | 2,602,741 | |||||
Europe (2) | 592,845 | 434,895 | 489,583 | ||||||||
Asia | 112,132 | 95,564 | 105,785 | ||||||||
\u00a0 | $ | 3,112,530 | $ | 3,183,376 | $ | 3,198,109 |
(1) | Substantially all relates to U.S. results. |
(2) | Substantially all relates to U.K. results. |
\u00a0 | Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | ||||||||
\u00a0 | (In thousands) | ||||||||||
Net revenues: | |||||||||||
Reportable Segments: | |||||||||||
Investment Banking, Capital Markets and Asset Management (1) | $ | 3,112,530 | $ | 3,183,376 | $ | 3,198,109 | |||||
Merchant Banking (1) | 746,369 | 571,831 | 876,180 | ||||||||
Corporate | 32,833 | 22,300 | 6,306 | ||||||||
Total net revenues related to reportable segments | 3,891,732 | 3,777,507 | 4,080,595 | ||||||||
Consolidation adjustments | 1,244 | (13,473 | ) | (3,150 | ) | ||||||
Total consolidated net revenues | $ | 3,892,976 | $ | 3,764,034 | $ | 4,077,445 | |||||
Income (loss) from continuing operations before income taxes: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Reportable Segments: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investment Banking, Capital Markets and Asset Management (1) | $ | 324,669 | $ | 409,667 | $ | 504,924 | |||||
Merchant Banking (1) | 266,852 | 10,488 | 228,373 | ||||||||
\u00a0\u00a0Corporate | (68,467 | ) | (66,140 | ) | (78,802 | ) | |||||
Income from continuing operations before income taxes related to reportable segments | 523,054 | 354,015 | 654,495 | ||||||||
Parent Company interest | (53,048 | ) | (54,090 | ) | (58,943 | ) | |||||
Consolidation adjustments | 8,602 | (3,825 | ) | 10,950 | |||||||
Total consolidated income from continuing operations before income taxes | $ | 478,608 | $ | 296,100 | $ | 606,502 | |||||
Depreciation and amortization expenses: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Reportable Segments: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investment Banking, Capital Markets and Asset Management (1) | $ | 79,204 | $ | 68,296 | $ | 62,668 | |||||
Merchant Banking (1) | 70,192 | 48,852 | 44,257 | ||||||||
\u00a0\u00a0Corporate | 3,475 | 3,169 | 3,470 | ||||||||
Total consolidated depreciation and amortization expenses | $ | 152,871 | $ | 120,317 | $ | 110,395 | |||||
November\u00a030, 2019 | November\u00a030, 2018 | December\u00a031, 2017 | |||||||||
Identifiable assets employed: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Reportable Segments: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investment Banking, Capital Markets and Asset Management (1) (2) | $ | 43,571,397 | $ | 41,224,984 | $ | 39,575,732 | |||||
Merchant Banking (1) | 3,551,213 | 4,190,484 | 4,903,530 | ||||||||
National Beef | \u2014 | \u2014 | 1,460,539 | ||||||||
Corporate | 2,432,119 | 1,838,037 | 1,299,628 | ||||||||
Identifiable assets employed related to reportable segments | 49,554,729 | 47,253,505 | 47,239,429 | ||||||||
Consolidation adjustments | (94,495 | ) | (122,410 | ) | (70,321 | ) | |||||
Total consolidated assets | $ | 49,460,234 | $ | 47,131,095 | $ | 47,169,108 |
(1) | Amounts related to LAM seed investments and Berkadia are included in Merchant Banking prior to their transfer to the Investment Banking, Capital Markets and Asset Management segment in the fourth quarter of 2018. Revenues related to the net assets transferred were $6.7 million and $49.6 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017, respectively. Income from continuing operations before income taxes related to the net assets transferred were $47.7 million and $118.4 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017, respectively. Identifiable assets employed related to the net assets transferred were $662.2 million at December 31, 2017. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Americas (1) | $ | 2,407,553 | $ | 2,652,917 | $ | 2,602,741 | |||||
Europe (2) | 592,845 | 434,895 | 489,583 | ||||||||
Asia | 112,132 | 95,564 | 105,785 | ||||||||
\u00a0 | $ | 3,112,530 | $ | 3,183,376 | $ | 3,198,109 |
(1) | Substantially all relates to U.S. results. |
First Quarter (1) | Second Quarter (2) | Third Quarter (3) | Fourth Quarter (4) | ||||||||||||
\u00a0 | (In thousands, except per share amounts) | ||||||||||||||
2019 | |||||||||||||||
Net revenues | $ | 828,443 | $ | 1,101,657 | $ | 856,778 | $ | 1,106,098 | |||||||
Income from continuing operations | 47,015 | 672,276 | 49,394 | 193,878 | |||||||||||
Net (income) loss attributable to the noncontrolling interest | (1,066 | ) | 191 | 116 | 2,606 | ||||||||||
Net (income) loss attributable to the redeemable noncontrolling interests | 138 | (427 | ) | 242 | 333 | ||||||||||
Preferred stock dividends | (1,276 | ) | (1,276 | ) | (1,275 | ) | (1,276 | ) | |||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 44,811 | 670,764 | 48,477 | 195,541 | |||||||||||
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Net income | $ | 0.14 | $ | 2.17 | $ | 0.16 | $ | 0.63 | |||||||
Number of shares used in calculation | 315,175 | 307,010 | 310,288 | 310,266 | |||||||||||
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Net income | $ | 0.14 | $ | 2.14 | $ | 0.15 | $ | 0.62 | |||||||
Number of shares used in calculation | 318,752 | 312,527 | 311,897 | 316,566 | |||||||||||
2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Net revenues | $ | 895,435 | $ | 911,159 | $ | 1,150,846 | $ | 806,594 | |||||||
Income (loss) from continuing operations | 86,192 | 27,917 | 182,301 | (19,318 | ) | ||||||||||
Income from discontinued operations, net of taxes | 52,957 | 77,106 | \u2014 | \u2014 | |||||||||||
Gain on disposal of discontinued operations, net of taxes | \u2014 | 643,921 | \u2014 | \u2014 | |||||||||||
Net (income) loss attributable to the noncontrolling interest | 1,344 | (136 | ) | 12,000 | (233 | ) | |||||||||
Net (income) loss attributable to the redeemable noncontrolling interests | (14,796 | ) | (22,108 | ) | (390 | ) | 31 | ||||||||
Preferred stock dividends | (1,172 | ) | (1,171 | ) | (1,276 | ) | (851 | ) | |||||||
Net income (loss) attributable to Jefferies Financial Group Inc. common shareholders | 124,525 | 725,529 | 192,635 | (20,371 | ) | ||||||||||
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Income\u00a0(loss) from continuing operations | $ | 0.23 | $ | 0.08 | $ | 0.56 | $ | (0.06 | ) | ||||||
Income from discontinued operations | 0.11 | 0.15 | \u2014 | \u2014 | |||||||||||
Gain on disposal of discontinued operations | \u2014 | 1.82 | \u2014 | \u2014 | |||||||||||
Net income (loss) | $ | 0.34 | $ | 2.05 | $ | 0.56 | $ | (0.06 | ) | ||||||
Number of shares used in calculation | 366,427 | 352,049 | 341,434 | 329,101 | |||||||||||
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Income\u00a0(loss) from continuing operations | $ | 0.23 | $ | 0.08 | $ | 0.55 | $ | (0.06 | ) | ||||||
Income from discontinued operations | 0.11 | 0.15 | \u2014 | \u2014 | |||||||||||
Gain on disposal of discontinued operations | \u2014 | 1.80 | \u2014 | \u2014 | |||||||||||
Net income (loss) | $ | 0.34 | $ | 2.03 | $ | 0.55 | $ | (0.06 | ) | ||||||
Number of shares used in calculation | 373,461 | 356,075 | 350,307 | 329,101 |
(1) | The first quarter of 2019 includes $27.1 million of equity income related to National Beef and a mark-to-market increase of $36.0 million in the value of our investment in Spectrum Brands. |
(2) | The second quarter of 2019 includes a nonrecurring tax benefit of $544.6 million related to the closing of our available for sale portfolio, which triggered the realization of lodged tax benefits from earlier years and $34.9 million of equity income related to National Beef. These increases were partially offset by a $11.3 million mark-to-market decrease in the value of our investment in Spectrum Brands. |
(3) | The third quarter of 2019 includes a $72.1 million pre-tax gain related to the purchase of the remaining interest in HomeFed and $75.9 million of equity income related to National Beef. This increase was partially offset by a $146.0 million decrease in the estimated fair value of our investment in The We Company. |
(4) | The fourth quarter of 2019 is comprised of the three months ended November 30, 2019 and the fourth quarter of 2018 is comprised of the two months ended November 30, 2018. |
First Quarter (1) | Second Quarter (2) | Third Quarter (3) | Fourth Quarter (4) | ||||||||||||
\u00a0 | (In thousands, except per share amounts) | ||||||||||||||
2019 | |||||||||||||||
Net revenues | $ | 828,443 | $ | 1,101,657 | $ | 856,778 | $ | 1,106,098 | |||||||
Income from continuing operations | 47,015 | 672,276 | 49,394 | 193,878 | |||||||||||
Net (income) loss attributable to the noncontrolling interest | (1,066 | ) | 191 | 116 | 2,606 | ||||||||||
Net (income) loss attributable to the redeemable noncontrolling interests | 138 | (427 | ) | 242 | 333 | ||||||||||
Preferred stock dividends | (1,276 | ) | (1,276 | ) | (1,275 | ) | (1,276 | ) | |||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 44,811 | 670,764 | 48,477 | 195,541 | |||||||||||
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Net income | $ | 0.14 | $ | 2.17 | $ | 0.16 | $ | 0.63 | |||||||
Number of shares used in calculation | 315,175 | 307,010 | 310,288 | 310,266 | |||||||||||
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Net income | $ | 0.14 | $ | 2.14 | $ | 0.15 | $ | 0.62 | |||||||
Number of shares used in calculation | 318,752 | 312,527 | 311,897 | 316,566 | |||||||||||
2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Net revenues | $ | 895,435 | $ | 911,159 | $ | 1,150,846 | $ | 806,594 | |||||||
Income (loss) from continuing operations | 86,192 | 27,917 | 182,301 | (19,318 | ) | ||||||||||
Income from discontinued operations, net of taxes | 52,957 | 77,106 | \u2014 | \u2014 | |||||||||||
Gain on disposal of discontinued operations, net of taxes | \u2014 | 643,921 | \u2014 | \u2014 | |||||||||||
Net (income) loss attributable to the noncontrolling interest | 1,344 | (136 | ) | 12,000 | (233 | ) | |||||||||
Net (income) loss attributable to the redeemable noncontrolling interests | (14,796 | ) | (22,108 | ) | (390 | ) | 31 | ||||||||
Preferred stock dividends | (1,172 | ) | (1,171 | ) | (1,276 | ) | (851 | ) | |||||||
Net income (loss) attributable to Jefferies Financial Group Inc. common shareholders | 124,525 | 725,529 | 192,635 | (20,371 | ) | ||||||||||
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Income\u00a0(loss) from continuing operations | $ | 0.23 | $ | 0.08 | $ | 0.56 | $ | (0.06 | ) | ||||||
Income from discontinued operations | 0.11 | 0.15 | \u2014 | \u2014 | |||||||||||
Gain on disposal of discontinued operations | \u2014 | 1.82 | \u2014 | \u2014 | |||||||||||
Net income (loss) | $ | 0.34 | $ | 2.05 | $ | 0.56 | $ | (0.06 | ) | ||||||
Number of shares used in calculation | 366,427 | 352,049 | 341,434 | 329,101 | |||||||||||
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||
Income\u00a0(loss) from continuing operations | $ | 0.23 | $ | 0.08 | $ | 0.55 | $ | (0.06 | ) | ||||||
Income from discontinued operations | 0.11 | 0.15 | \u2014 | \u2014 | |||||||||||
Gain on disposal of discontinued operations | \u2014 | 1.80 | \u2014 | \u2014 | |||||||||||
Net income (loss) | $ | 0.34 | $ | 2.03 | $ | 0.55 | $ | (0.06 | ) | ||||||
Number of shares used in calculation | 373,461 | 356,075 | 350,307 | 329,101 |
(1) | The first quarter of 2019 includes $27.1 million of equity income related to National Beef and a mark-to-market increase of $36.0 million in the value of our investment in Spectrum Brands. |
(2) | The second quarter of 2019 includes a nonrecurring tax benefit of $544.6 million related to the closing of our available for sale portfolio, which triggered the realization of lodged tax benefits from earlier years and $34.9 million of equity income related to National Beef. These increases were partially offset by a $11.3 million mark-to-market decrease in the value of our investment in Spectrum Brands. |
(3) | The third quarter of 2019 includes a $72.1 million pre-tax gain related to the purchase of the remaining interest in HomeFed and $75.9 million of equity income related to National Beef. This increase was partially offset by a $146.0 million decrease in the estimated fair value of our investment in The We Company. |
Twelve Months Ended November 30, 2019 | Eleven Months Ended November 30, 2018 | Twelve Months Ended December 31, 2017 | |||||||||
Cash paid for: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Interest, net of amounts capitalized | $ | 51,786 | $ | 57,813 | $ | 57,813 | |||||
Income tax payments (refunds), net | 10,796 | 32,576 | 1,440 | ||||||||
Non-cash investing activities: | \u00a0 | \u00a0 | \u00a0 | ||||||||
Investments contributed to subsidiary | $ | \u2014 | $ | \u2014 | $ | 25,328 | |||||
Dividends received from subsidiaries | 18,117 | 8,450,147 | 32,792 |