Document and Entity Information
Document and Entity Information - USD ($) | 11 Months Ended | ||
Nov. 30, 2018 | Jan. 18, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-KT | ||
Amendment Flag | false | ||
Document Period End Date | Nov. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Central Index Key | 96,223 | ||
Entity Registrant Name | JEFFERIES FINANCIAL GROUP INC. | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 307,716,112 | ||
Entity Shell Company | false | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 6,974,359,578 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
ASSETS | |||||||
Cash and cash equivalents | $ 5,258,809 | $ 5,275,480 | $ 3,807,558 | ||||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 707,960 | 578,014 | |||||
Financial instruments owned, including securities pledged of $13,059,802 and $10,842,051: | |||||||
Trading assets, at fair value | 17,463,256 | 16,082,676 | |||||
Available for sale securities | 1,409,886 | 628,075 | |||||
Available for sale securities | 716,561 | ||||||
Total financial instruments owned | 18,873,142 | 16,799,237 | |||||
Loans to and investments in associated companies | 2,417,332 | 2,066,829 | |||||
Securities borrowed | 6,538,212 | 7,721,803 | |||||
Securities purchased under agreements to resell | 2,785,758 | 3,689,559 | |||||
Receivables | 6,287,401 | 5,419,015 | |||||
Intangible assets, net and goodwill | 1,890,131 | 2,463,180 | |||||
Deferred tax asset, net | 512,789 | 743,811 | |||||
Other assets | 1,859,561 | 2,412,180 | |||||
Total assets | 47,131,095 | [1] | 47,169,108 | [1] | 45,071,307 | ||
LIABILITIES | |||||||
Short-term borrowings | 387,492 | 436,215 | |||||
Trading liabilities, at fair value | 9,478,946 | 8,454,965 | |||||
Securities loaned | 1,838,688 | 2,843,911 | |||||
Securities sold under agreements to repurchase | 8,643,069 | 8,660,511 | |||||
Other secured financings | 1,534,271 | 1,029,485 | |||||
Payables, expense accruals and other liabilities | 7,407,030 | 7,167,666 | |||||
Long-term debt | 7,617,563 | 7,885,783 | |||||
Total liabilities | [1] | 36,907,059 | 36,478,536 | ||||
Commitments and contingencies | |||||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 19,779 | 426,593 | |||||
MEZZANINE EQUITY | |||||||
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |||||
EQUITY | |||||||
Common shares, par value $1 per share, authorized 600,000,000 shares; 307,515,472 and 356,227,038 shares issued and outstanding, after deducting 109,460,774 and 60,165,980 shares held in treasury | 307,515 | 356,227 | |||||
Additional paid-in capital | 3,854,847 | 4,676,038 | |||||
Accumulated other comprehensive income | 288,286 | 372,724 | |||||
Retained earnings | 5,610,218 | 4,700,968 | |||||
Total Jefferies Financial Group Inc. shareholders' equity | 10,060,866 | 10,105,957 | |||||
Noncontrolling interests | 18,391 | 33,022 | |||||
Total equity | 10,079,257 | 10,138,979 | $ 10,303,649 | $ 10,465,890 | |||
Total | $ 47,131,095 | $ 47,169,108 | |||||
[1] | Total assets include assets related to variable interest entities of $704.4 million and $382.9 million at November 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,535.8 million and $1,031.0 million at November 30, 2018 and December 31, 2017, respectively. See Note 10 for additional information related to variable interest entities. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | |
Assets | [1] | $ 47,131,095 | $ 47,169,108 |
Liabilities | [1] | 36,907,059 | 36,478,536 |
ASSETS | |||
Securities pledged | $ 13,059,802 | $ 10,842,051 | |
EQUITY | |||
Common shares, par value (USD per share) | $ 1 | $ 1 | |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 | |
Common shares, issued and outstanding after deducting shares held in treasury (in shares) | 307,515,472 | 356,227,038 | |
Treasury stock, shares (in shares) | 109,460,774 | 60,165,980 | |
Variable Interest Entities | |||
Assets | [1] | $ 704,400 | $ 382,900 |
Liabilities | [1] | $ 1,535,800 | $ 1,031,000 |
[1] | Total assets include assets related to variable interest entities of $704.4 million and $382.9 million at November 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,535.8 million and $1,031.0 million at November 30, 2018 and December 31, 2017, respectively. See Note 10 for additional information related to variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Revenues | $ 5,009,728 | $ 5,048,906 | $ 3,848,011 |
Interest expense | 89,249 | 101,202 | 95,757 |
Net revenues | 3,764,034 | 4,077,445 | 3,035,374 |
Expenses: | |||
Compensation and benefits | 1,862,782 | 1,950,935 | 1,688,325 |
Cost of sales | 307,071 | 280,952 | 337,039 |
Floor brokerage and clearing fees | 184,210 | 174,506 | 167,205 |
Interest expense | 89,249 | 101,202 | 95,757 |
Depreciation and amortization | 120,317 | 110,395 | 117,111 |
Selling, general and other expenses | 961,328 | 778,052 | 797,127 |
Total expenses | 3,524,957 | 3,396,042 | 3,202,564 |
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 239,077 | 681,403 | (167,190) |
Income (loss) related to associated companies | 57,023 | (74,901) | 154,598 |
Income (loss) from continuing operations before income taxes | 296,100 | 606,502 | (12,592) |
Income tax provision | 19,008 | 642,286 | 25,773 |
Income (loss) from continuing operations | 277,092 | (35,784) | (38,365) |
Income from discontinued operations, net of income tax provision of $47,045, $118,681 and $96,336 | 130,063 | 288,631 | 232,686 |
Gain on disposal of discontinued operations, net of income tax provision of $229,553, $0 and $0 | 643,921 | 0 | 0 |
Net income | 1,051,076 | 252,847 | 194,321 |
Net loss attributable to the noncontrolling interests | 12,975 | 3,455 | 1,426 |
Net income attributable to the redeemable noncontrolling interests | (37,263) | (84,576) | (65,746) |
Preferred stock dividends | (4,470) | (4,375) | (4,063) |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 1,022,318 | $ 167,351 | $ 125,938 |
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | |||
Income (loss) from continuing operations (USD per share) | $ 0.82 | $ (0.10) | $ (0.10) |
Income from discontinued operations (USD per share) | 0.27 | 0.55 | 0.44 |
Gain on disposal of discontinued operations (USD per share) | 1.84 | 0 | 0 |
Net income (USD per share) | 2.93 | 0.45 | 0.34 |
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | |||
Income (loss) from continuing operations (USD per share) | 0.81 | (0.10) | (0.10) |
Income from discontinued operations (USD per share) | 0.26 | 0.55 | 0.44 |
Gain on disposal of discontinued operations (USD per share) | 1.83 | 0 | 0 |
Net income (USD per share) | $ 2.90 | $ 0.45 | $ 0.34 |
Amounts attributable to Jefferies Financial Group Inc. common shareholders: | |||
Income (loss) from continuing operations, net of taxes | $ 285,475 | $ (36,003) | $ (37,937) |
Income from discontinued operations, net of taxes | 92,922 | 203,354 | 163,875 |
Gain on disposal of discontinued operations, net of taxes | 643,921 | 0 | 0 |
Net income attributable to Jefferies Financial Group Inc. common shareholders | 1,022,318 | 167,351 | 125,938 |
Commissions and other fees | |||
Revenues: | |||
Revenues | 634,271 | 593,257 | 611,574 |
Principal transactions | |||
Revenues: | |||
Revenues | 232,224 | 923,418 | 534,784 |
Investment banking | |||
Revenues: | |||
Revenues | 1,904,870 | 1,764,285 | 1,193,973 |
Interest income | |||
Revenues: | |||
Revenues | 1,294,325 | 993,198 | 926,089 |
Manufacturing revenues | |||
Revenues: | |||
Revenues | 357,427 | 326,197 | 412,826 |
Other | |||
Revenues: | |||
Revenues | 586,611 | 448,551 | 168,765 |
Jefferies Group | |||
Revenues: | |||
Interest expense | 1,245,694 | 971,461 | 812,637 |
Net revenues | 3,183,376 | 3,198,109 | 2,414,614 |
Expenses: | |||
Interest expense | $ 1,245,694 | $ 971,461 | $ 812,637 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Income tax provision from discontinued operations | $ 47,045 | $ 118,681 | $ 96,336 |
Income tax provision related to gain on disposal of discontinued operations | $ 229,553 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,051,076 | $ 252,847 | $ 194,321 |
Other comprehensive income (loss): | |||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $(551), $3,450 and $2,262 | (1,560) | 5,923 | 3,900 |
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $37, $124 and $2 | (109) | (212) | (4) |
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $(588), $3,326 and $2,260 | (1,669) | 5,711 | 3,896 |
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(11,089), $14,616 and $(3,530) | (71,543) | 78,493 | (121,581) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $(16), $1,086 and $0 | (20,459) | 5,310 | 0 |
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(11,073), $13,530 and $(3,530) | (92,002) | 83,803 | (121,581) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $9,289, $(13,215) and $(4,251) | 29,620 | (21,394) | (6,494) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $311, $0 and $0 | (916) | 0 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $8,978, $(13,215) and $(4,251) | 28,704 | (21,394) | (6,494) |
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $552, $(593) and $0 | 1,608 | (936) | 0 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, net of income tax provision (benefit) of $0, $0 and $0 | 0 | 0 | 0 |
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $552, $(593) and $0 | 1,608 | (936) | 0 |
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(297), $2,018 and $(2,516) | (844) | 3,526 | (5,451) |
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | 7,349 | 517 | 1,534 |
Net change in pension liability benefits, net of income tax provision (benefit) of $400, $4,060 and $(1,816) | 6,505 | 4,043 | (3,917) |
Other comprehensive income (loss), net of income taxes | (56,854) | 71,227 | (128,096) |
Comprehensive income | 994,222 | 324,074 | 66,225 |
Comprehensive loss attributable to the noncontrolling interests | 12,975 | 3,455 | 1,426 |
Comprehensive income attributable to the redeemable noncontrolling interests | (37,263) | (84,576) | (65,746) |
Preferred stock dividends | (4,470) | (4,375) | (4,063) |
Comprehensive income (loss) attributable to Jefferies Financial Group Inc. common shareholders | $ 965,464 | $ 238,578 | $ (2,158) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $ (551) | $ 3,450 | $ 2,262 |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | 37 | 124 | 2 |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | (588) | 3,326 | 2,260 |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | (11,089) | 14,616 | (3,530) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | (16) | 1,086 | 0 |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | (11,073) | 13,530 | (3,530) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, income tax provision (benefit) | 9,289 | (13,215) | (4,251) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, income tax provision (benefit) | 311 | 0 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), income tax provision (benefit) | 8,978 | (13,215) | (4,251) |
Net unrealized gains (losses) on derivatives arising during the period, tax provision (benefit) | 552 | (593) | 0 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, income tax provision (benefit) | 0 | 0 | 0 |
Net change in unrealized derivative gains (losses), tax provision (benefit) | 552 | (593) | 0 |
Net pension and postretirement gains (losses) arising during the period, tax provision (benefit) | (297) | 2,018 | (2,516) |
Less: reclassification adjustment for pension and postretirement (gains) losses included in net income (loss), tax provision (benefit) | (697) | (2,042) | (700) |
Net change in pension liability and postretirement benefits, tax provision (benefit) | $ 400 | $ 4,060 | $ (1,816) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net cash flows from operating activities: | |||
Net income | $ 1,051,076 | $ 252,847 | $ 194,321 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Pre-tax income from discontinued operations, including gain on disposal | (1,050,582) | (407,312) | (329,022) |
Deferred income tax provision | 236,406 | 712,055 | 118,631 |
Depreciation and amortization of property, equipment and leasehold improvements | 105,156 | 92,918 | 94,887 |
Other amortization | (37,749) | (28,159) | (23,274) |
Share-based compensation | 48,249 | 48,384 | 33,597 |
Provision for Doubtful Accounts | 35,223 | 36,452 | 24,341 |
Net securities (gains) losses | 939 | (23,028) | (29,542) |
Income related to associated companies | (130,685) | (34,494) | (171,782) |
Distributions from associated companies | 162,988 | 143,286 | 191,455 |
Net gains losses related to property and equipment and other assets | (32,461) | (32,814) | (83,010) |
Gain on sale of subsidiaries and associated companies | (221,712) | (179,605) | 0 |
Net change in: | |||
Securities deposited with clearing and depository organizations | 64,911 | 163 | (99,893) |
Trading assets | (1,451,472) | (648,703) | 2,763,558 |
Securities borrowed | 1,137,134 | 50,660 | (805,779) |
Securities purchased under agreements to resell | 807,619 | 234,740 | (112,777) |
Receivables from brokers, dealers and clearing organizations | (602,950) | (555,109) | (488,623) |
Receivables from customers of securities operations | (465,960) | (732,344) | 340,690 |
Other receivables | 30,864 | (216,189) | (186,631) |
Other assets | 33,484 | (8,102) | (232,925) |
Trading liabilities | 1,142,878 | (25,765) | 1,726,582 |
Securities loaned | (964,137) | 381 | (122,946) |
Securities sold under agreements to repurchase | 36,956 | 1,838,793 | (3,144,433) |
Payables to brokers, dealers and clearing organizations | 250,603 | (1,079,516) | 569,246 |
Payables to customers of securities operations | 512,760 | 366,721 | (483,188) |
Trade payables, expense accruals and other liabilities | (112,488) | 365,385 | 240,025 |
Other | (125,519) | (2,810) | (61,900) |
Net cash provided by operating activities - continuing operations | 526,453 | 234,463 | 87,628 |
Net cash provided by operating activities - discontinued operations | 164,650 | 553,831 | 484,786 |
Net cash provided by operating activities | 691,103 | 788,294 | 572,414 |
Net cash flows from investing activities: | |||
Acquisitions of property, equipment and leasehold improvements, and other assets | (325,666) | (123,027) | (256,668) |
Proceeds from disposals of property and equipment, and other assets | 14,052 | 28,042 | 46,675 |
Proceeds from sale of subsidiaries, net of expenses and cash of operations sold | 100,000 | 289,767 | 0 |
Proceeds from sale of associated companies | 379,074 | 173,105 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | (9,673) |
Purchases of and advances on notes, loans and other receivables | (351,831) | (49,325) | (342,281) |
Collections on notes, loans and other receivables | 216,426 | 272,439 | 121,825 |
Loans to and investments in associated companies | (1,956,983) | (3,305,791) | (763,528) |
Capital distributions and loan repayment from associated companies | 1,973,739 | 3,106,423 | 703,108 |
Deconsolidation of subsidiary entities | 0 | (21,129) | (326) |
Purchases of investments (other than short-term) | (3,423,191) | (1,146,595) | (739,298) |
Proceeds from maturities of investments | 1,084,277 | 344,223 | 162,393 |
Proceeds from sales of investments | 1,571,507 | 443,300 | 483,360 |
Other | 130 | 1,339 | 4,420 |
Net cash provided by (used for) investing activities - continuing operations | (718,466) | 12,771 | (589,993) |
Net cash provided by (used for) investing activities - discontinued operations | 860,909 | (67,405) | (46,222) |
Net cash provided by (used for) investing activities | 142,443 | (54,634) | (636,215) |
Net cash flows from financing activities: | |||
Issuance of debt, net of issuance costs | 2,754,665 | 1,620,691 | 1,020,050 |
Other changes in short-term borrowings, net | 0 | 23,324 | 204,882 |
Repayment of debt | (2,678,323) | (848,350) | (798,865) |
Net change in other secured financings | 503,043 | 1,248 | 116,702 |
Net change in bank overdrafts | 10,290 | (5,650) | (46,536) |
Issuance of common shares | 3,611 | 1,501 | 1,062 |
Net contributions from (distributions to) redeemable noncontrolling interests | 455 | (185) | 812 |
Distributions to noncontrolling interests | (7,408) | (12,031) | (18,544) |
Contributions from noncontrolling interests | 113 | 40,072 | 154,522 |
Purchase of common shares for treasury | (1,130,854) | (100,477) | (95,020) |
Dividends paid | (151,758) | (117,407) | (91,296) |
Other | 1 | (1) | 488 |
Net cash provided by (used for) financing activities - continuing operations | (696,165) | 602,735 | 448,257 |
Net cash provided by (used for) financing activities - discontinued operations | 120,322 | (167,934) | (217,351) |
Net cash provided by (used for) financing activities | (575,843) | 434,801 | 230,906 |
Effect of foreign exchange rate changes on cash | (19,546) | 12,067 | (27,498) |
Change in cash classified as assets held for sale | 0 | (3,136) | (5,206) |
Net increase in cash, cash equivalents and restricted cash | 238,157 | 1,177,392 | 134,401 |
Cash, cash equivalents and restricted cash at beginning of period | 5,774,505 | 4,597,113 | 4,462,712 |
Cash, cash equivalents and restricted cash at end of period | $ 6,012,662 | $ 5,774,505 | $ 4,597,113 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents | $ 5,258,809 | $ 5,275,480 | $ 3,807,558 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 673,141 | 478,284 | 757,444 |
Other assets | 80,712 | 20,741 | 32,111 |
Total cash, cash equivalents and restricted cash | $ 6,012,662 | $ 5,774,505 | $ 4,597,113 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Shares $1 Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Subtotal | Non-controlling Interests |
Beginning balance at Dec. 31, 2015 | $ 10,465,890 | $ 362,617 | $ 4,986,819 | $ 438,793 | $ 4,612,982 | $ 10,401,211 | $ 64,679 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 124,512 | 125,938 | 125,938 | (1,426) | |||
Other comprehensive (loss) income, net of taxes | (128,096) | (128,096) | (128,096) | ||||
Contributions from noncontrolling interests | 154,522 | 0 | 154,522 | ||||
Distributions to noncontrolling interests | (18,544) | 0 | (18,544) | ||||
Deconsolidation of asset management entities | (9,709) | 0 | (9,709) | ||||
Change in interest in consolidated subsidiary | 0 | (261) | (261) | 261 | |||
Reclassification to redeemable noncontrolling interest | (14,234) | 0 | (14,234) | ||||
Share-based compensation expense | 33,597 | 33,597 | 33,597 | ||||
Change in fair value of redeemable noncontrolling interests | (115,963) | (115,963) | (115,963) | ||||
Purchase of common shares for treasury | (95,020) | (5,434) | (89,586) | (95,020) | |||
Dividends ($.25, $.325 and $.45 per common share for year ended 2016, 2017, 2018) | (93,529) | (93,529) | (93,529) | ||||
Other | 223 | 2,242 | (2,019) | 223 | |||
Ending balance at Dec. 31, 2016 | 10,303,649 | 359,425 | 4,812,587 | 310,697 | 4,645,391 | 10,128,100 | 175,549 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reclassification of tax effects from accumulated other comprehensive income | 0 | (9,200) | 9,200 | 0 | |||
Net income | 163,896 | 167,351 | 167,351 | (3,455) | |||
Other comprehensive (loss) income, net of taxes | 71,227 | 71,227 | 71,227 | ||||
Contributions from noncontrolling interests | 40,072 | 0 | 40,072 | ||||
Distributions to noncontrolling interests | (12,031) | 0 | (12,031) | ||||
Deconsolidation of real estate entity | 167,163 | 0 | 167,163 | ||||
Share-based compensation expense | 48,384 | 48,384 | 48,384 | ||||
Change in fair value of redeemable noncontrolling interests | (94,937) | (94,937) | (94,937) | ||||
Purchase of common shares for treasury | (100,477) | (4,024) | (96,453) | (100,477) | |||
Dividends ($.25, $.325 and $.45 per common share for year ended 2016, 2017, 2018) | (120,974) | (120,974) | (120,974) | ||||
Other | 7,333 | 826 | 6,457 | 7,283 | 50 | ||
Ending balance at Dec. 31, 2017 | 10,138,979 | 356,227 | 4,676,038 | 372,724 | 4,700,968 | 10,105,957 | 33,022 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of the adoption of accounting standards | 17,812 | (27,584) | 45,396 | 17,812 | |||
Beginning balance, as adjusted | 10,156,791 | 356,227 | 4,676,038 | 345,140 | 4,746,364 | 10,123,769 | 33,022 |
Net income | 1,009,343 | 1,022,318 | 1,022,318 | (12,975) | |||
Other comprehensive (loss) income, net of taxes | (56,854) | (56,854) | (56,854) | ||||
Contributions from noncontrolling interests | 113 | 0 | 113 | ||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | 237,669 | 237,669 | 237,669 | ||||
Distributions to noncontrolling interests | (7,408) | 0 | (7,408) | ||||
Consolidation of asset management entity | 8,316 | 0 | 8,316 | ||||
Change in interest in consolidated subsidiary | 0 | 2,677 | 2,677 | (2,677) | |||
Share-based compensation expense | 48,249 | 48,249 | 48,249 | ||||
Change in fair value of redeemable noncontrolling interests | (26,551) | (26,551) | (26,551) | ||||
Exercise of options to purchase common shares | 2,485 | 109 | 2,376 | 2,485 | |||
Purchase of common shares for treasury | (1,148,422) | (50,223) | (1,098,199) | (1,148,422) | |||
Dividends ($.25, $.325 and $.45 per common share for year ended 2016, 2017, 2018) | (158,464) | (158,464) | (158,464) | ||||
Other | 13,990 | 1,402 | 12,588 | 13,990 | |||
Ending balance at Nov. 30, 2018 | $ 10,079,257 | $ 307,515 | $ 3,854,847 | $ 288,286 | $ 5,610,218 | $ 10,060,866 | $ 18,391 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Common shares, par value (USD per share) | $ 1 | $ 1 | $ 1 | ||||
Dividends per common share (USD per share) | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.0625 | $ 0.45 | $ 0.325 | $ 0.25 |
Nature of Operations
Nature of Operations | 11 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Jefferies Financial Group Inc. ("Jefferies" or the "Company"), formerly known as Leucadia National Corporation, is a diversified financial services company engaged in investment banking and capital markets, asset management and direct investing. Jefferies Group LLC ("Jefferies Group"), our largest subsidiary, is the largest independent full-service global investment banking firm headquartered in the U.S. In the fourth quarter of 2018, we changed our fiscal year end from a calendar year basis to a fiscal year ending on November 30, consistent with the fiscal year of Jefferies Group. Our 2018 fiscal year consists of the eleven month transition period beginning January 1, 2018 through November 30, 2018. Financial statements for 2017 and 2016 continue to be presented on the basis of our previous calendar year end. In March 2013, Jefferies Group became an indirect wholly-owned subsidiary of Jefferies, yet retains a separate credit rating and continues to be a separate U.S. Securities and Exchange Commission ("SEC") reporting company. Through Jefferies Group, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), Jefferies Group's joint venture with Massachusetts Mutual Life Insurance Company. Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt of middle market and growth companies in the form of term and revolving loans. Jefferies Group has a November 30 year end. Prior to the fourth quarter of 2018, because our fiscal year end was December 31, we reflected Jefferies Group in our consolidated financial statements utilizing a one month lag. In connection with our change in fiscal year end to November 30, we eliminated the one month lag utilized to reflect Jefferies Group results beginning with the fourth quarter of 2018. Therefore, our results for the eleven months ended November 30, 2018, include twelve month results for Jefferies Group and eleven months for the remainder of our results. Jefferies Group operates in two business segments: Capital Markets and Asset Management. Capital Markets includes investment banking, sales and trading and other related services. Investment banking provides capital markets and financial advisory services to clients across most industry sectors in the Americas, Europe and Asia. Sales and trading businesses operate across the spectrum of equities, fixed income and foreign exchange products. Related services include, among other things, prime brokerage and equity finance, research and strategy, corporate lending and real estate finance, as well as other principal and corporate investing activities. Asset Management provides investment management services to investors in the U.S. and overseas and makes capital investments in managed funds and accounts. Leucadia Asset Management ("LAM") supports and develops focused alternative asset management businesses led by distinct management teams. We are patiently developing this business over time, and changes in the platforms and structure should be expected. During the second quarter of 2018, we took steps to expand our asset management efforts including the formation of a strategic relationship with Weiss Multi-Strategy Advisers LLC ("Weiss") and we invested $250.0 million in Weiss' strategy. We will own a profit share in the firm for the first year, and a revenue share thereafter. In addition, we entered into an agreement with Schonfeld Strategic Advisors LLC ("Schonfeld") to merge the business of Folger Hill Asset Management with Schonfeld's fundamental equities business, under the Schonfeld brand. In connection with the transaction with Schonfeld, LAM agreed to make a $250.0 million investment in the combined strategy and will receive a revenue share in the combined ongoing fundamental equity business. The transaction with Schonfeld closed on January 1, 2019. In the fourth quarter of 2018, we transferred our LAM seed investments, as well as our interest in Berkadia Commercial Mortgage Holding LLC ("Berkadia"), to Jefferies Group. These transfers were accomplished as a capital contribution to Jefferies Group of approximately $598.2 million and an internal transfer of cash from Jefferies Group of $76.0 million to Jefferies. Berkadia, Jefferies Group's 50-50 equity method joint venture with Berkshire Hathaway Inc., is a U.S. commercial real estate finance company providing capital solutions, investment sales advisory and mortgage servicing for multifamily and commercial properties. Merchant Banking is where we leverage opportunities to make unique long-term direct investments. Our current Merchant Banking businesses and investments include National Beef Packing Company ("National Beef") (beef processing), Spectrum Brands Holdings, Inc. ("Spectrum Brands") (consumer products), Linkem (fixed wireless broadband services in Italy), Vitesse Energy, LLC ("Vitesse Energy Finance") and JETX Energy LLC ("JETX Energy") (oil and gas production and development), WeWork (global network of workspaces), HomeFed Corporation ("HomeFed") (real estate), Idaho Timber (manufacturing), FXCM Group, LLC ("FXCM") (provider of online foreign exchange trading services), Foursight Capital (vehicle finance) and Golden Queen Mining Company, LLC ("Golden Queen") (gold and silver mining). Our Merchant Banking businesses and investments also included LAM (asset management) and Berkadia (commercial mortgage banking, investment sales and servicing), prior to their transfer to Jefferies Group in the fourth quarter of 2018 and Garcadia (automobile dealerships), prior to its sale in August 2018. The structure of each of our investments was tailored to the unique opportunity each transaction presented. Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings. We own 31% of National Beef, one of the largest beef processing companies in the U.S. On June 5, 2018, we completed the sale of 48% of National Beef to Marfrig Global Foods S.A. ("Marfrig") for $907.7 million in cash, reducing our ownership in National Beef from 79% to 31% . The pre-tax gain recognized as a result of this transaction was $873.5 million for the eleven months ended November 30, 2018. During 2018, prior to the closing, we received an additional $229.4 million in distributions of recent profits plus a true-up to the debt amount set in the enterprise valuation associated with the sale. As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining 31% interest in National Beef under the equity method of accounting. We have classified the results of National Beef prior to June 5, 2018 as discontinued operations in the Consolidated Statements of Operations. See Note 28 for more information. We own approximately 14% of Spectrum Brands, a publicly traded global consumer products company on the NYSE (NYSE: SPB), and we reflect this investment at fair value based on quoted market prices. On July 13, 2018, HRG Group, Inc. ("HRG") merged into its 62% owned subsidiary, Spectrum Brands. Our approximately 23% interest in HRG thereby converted into approximately 14% of Spectrum Brands outstanding shares. We own approximately 42% of the common shares of Linkem, as well as convertible preferred shares which, if converted, would increase our ownership to approximately 54% of Linkem's common equity at November 30, 2018 . Linkem provides residential broadband services in Italy using LTE technologies deployed over the 3.5 GHz spectrum band. Linkem is accounted for under the equity method. Vitesse Energy Finance is our 97% owned consolidated subsidiary that acquires and invests in non-operated working interests and royalties predominantly in the Bakken Shale oil field in North Dakota. In April 2018, Vitesse Energy Finance acquired non-operated Bakken assets from a portfolio company of a private equity fund for $190.0 million in cash, of which approximately $144.0 million was funded as equity by Jefferies and the balance funded by Vitesse Energy Finance's credit line. JETX Energy is our 98% owned consolidated subsidiary that currently has non-operated working interests and acreage in east Texas. We invested $9.0 million in 2013 in WeWork, which creates collaborative office communities. Currently we own less than 1% of the company. Our interest in WeWork is reflected in Trading assets in our financial statements at fair value. We own an approximate 70% equity interest of HomeFed, which owns and develops residential and mixed use real estate properties. We account for our interest under the equity method. HomeFed is a public company traded on the NASD OTC Bulletin Board. Idaho Timber is our consolidated subsidiary engaged in the manufacture and distribution of various wood products. Our investment in FXCM and associated companies consist of a senior secured term loan due in the first quarter of 2019, ( $67.6 million principal outstanding at November 30, 2018 ); a 50% voting interest in FXCM and up to 75% of all distributions. Golden Queen owns the Soledad Mountain project, a gold and silver mining project in Kern County, California. Our effective ownership of Golden Queen is approximately 38% and is accounted for under the equity method. Garcadia was an equity method joint venture that owned and operated automobile dealerships. During the third quarter of 2018, we sold our equity interests in Garcadia and our associated real estate to our former partners, the Garff family, for $417.2 million in cash. The pre-tax gain recognized as a result of this transaction, $221.7 million during the third quarter of 2018, is classified as Other revenue. |
Significant Accounting Policies
Significant Accounting Policies | 11 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities. On an on-going basis, we evaluate all of these estimates and assumptions. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, asset impairment, the ability to realize deferred tax assets, the recognition and measurement of uncertain tax positions and contingencies. Although these and other estimates and assumptions are based on the best available information, actual results could be different from these estimates. Consolidation Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock. In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests. All intercompany transactions and balances are eliminated in consolidation. In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under GAAP. We have also formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies. Our subsidiaries may act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or "kick-out" rights. Changes to the Consolidated Statements of Operations Manufacturing revenues, which were previously reported within Other revenues, are now reported separately in the Consolidated Statements of Operations. We have reorganized the presentation of our gains and losses generated from our capital invested in asset management funds. This was previously presented as Other revenues and is now presented within Principal transactions revenues. For the twelve months ended December 31, 2017, this resulted in a decrease to Principal transactions revenues of $8.2 million and an increase to Other revenues of $8.2 million . For the twelve months ended December 31, 2016, this resulted in a decrease to Principal transactions revenues of $69.0 million and an increase to Other revenues of $69.0 million . Revenue Recognition Policies We adopted the Financial Accounting Standards Board ("FASB") new revenue recognition standard on January 1, 2018. Revenue recognition policies under the new standard are applied prospectively in our financial statements from January 1, 2018 forward. Reported financial information for the historical comparable periods was not revised and continues to be reported under the accounting standards in effect during the historical periods. For investment banking revenues and asset management fees, we separately state the accounting policies applicable in the presented eleven and twelve month periods. There were no material changes in our other revenue recognition policies as a result of the new standard. For further information on our adoption of the new revenue standard, see Note 4. Investment Banking Activities Commissions and Other Fees. All customer securities transactions are reported in the Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are acting as an agent in these arrangements, netted against commission revenues in the Consolidated Statements of Operations. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Trading assets and trading liabilities (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transactions revenues in the Consolidated Statements of Operations, except for derivatives accounted for as hedges (see Hedge Accounting section, herein and Note 6). Fees received on loans carried at fair value are also recorded in Principal transactions revenues. Investment Banking - Eleven Months Ended November 30, 2018. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by clients are recognized as Investment banking revenues. Underwriting and placement agent revenues are recognized at a point in time on trade-date. Costs associated with underwriting activities are deferred until the related revenue is recognized or the engagement is otherwise concluded and are recorded on a gross basis in Selling, general and other expenses in the Consolidated Statements of Operations. Investment Banking - Twelve Months ended December 31, 2017 and 2016. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Selling, general and other expenses in our Consolidated Statements of Operations. Asset Management Fees - Eleven Months Ended November 30, 2018. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Asset Management Fees - Twelve Months ended December 31, 2017 and 2016. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized. Interest Revenue and Expense. Interest expense that is deducted from Revenues to arrive at Net revenues is related to Jefferies Group's operations. Contractual interest on Trading assets and Trading liabilities is recognized on an accrual basis as a component of Interest income and Interest expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions revenues in the Consolidated Statements of Operations rather than as a component of interest income or expense. Interest on short- and long-term borrowings is recorded on an accrual basis, except for those for which we have elected the fair value option, with related interest recorded as Interest expense. Discounts/premiums arising on long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. Interest revenue related to Securities borrowed and Securities purchased under agreements to resell activities and interest expense related to Securities loaned and Securities sold under agreements to repurchase activities are recognized on an accrual basis. Manufacturing Revenues. Manufacturing revenues are primarily from Idaho Timber, which manufactures and distributes an extensive range of quality wood products to markets across North America. Idaho Timber's primary business consists of the sale of lumber that is manufactured or remanufactured at one of its locations. Agreements with customers for these sales specify the type, quantity and price of products to be delivered as well as the delivery date and payment terms. The transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. Hedge Accounting Jefferies Group applies hedge accounting using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. Jefferies Group's interest rate swaps are included as derivative contracts in Trading assets and Trading liabilities in the Consolidated Statements of Financial Condition. Jefferies Group uses regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% to 125% . The impact of valuation adjustments related to Jefferies Group own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another, and together with any resulting ineffectiveness, are recorded in Interest expense. See Note 6 for further information. Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities. Financial Instruments and Fair Value Trading assets and Trading liabilities are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses on trading assets and trading liabilities are recognized in our Consolidated Statements of Operations in Principal transactions revenues. Available for sale securities are reflected at fair value, with unrealized gains and losses reflected as a separate component of equity, net of taxes. The cost of securities sold is based on average cost. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Fair Value Hierarchy In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: 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. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments fair values for which 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. These 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. Financial instruments are valued at quoted market prices, if available. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management's judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management's judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. Loans to and Investments in Associated Companies Loans to and investments in associated companies include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such investments. Loans to and investments in associated companies are accounted for using the equity method. See Note 11 for additional information regarding certain of these investments. Under the equity method of accounting, our share of the investee's underlying net income or loss is recorded as Income (loss) related to associated companies, or as part of Other revenues if such investees are considered to be an extension of our business. Income (loss) for investees for which the fair value option was elected is reported as Principal transactions revenues. Receivables At November 30, 2018 and December 31, 2017 , Receivables include receivables from brokers, dealers and clearing organizations of $3,223.7 million and $2,635.2 million , respectively, and receivables from customers of securities operations of $2,017.1 million and $1,563.8 million , respectively. Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, Jefferies Group borrows securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. When Jefferies Group borrows securities, it generally provides cash to the lender as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities borrowed. Jefferies Group earns interest revenues on this cash collateral. Similarly, when Jefferies Group lends securities to another party, that party provides cash to Jefferies Group as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities loaned. Jefferies Group pays interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. Jefferies Group monitors the fair value of the securities borrowed and loaned on a daily basis and requests additional collateral or returns excess collateral, as appropriate. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively "repos") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. Jefferies Group earns and incurs interest over the term of the repo, which is reflected in Interest revenue and Interest expense in the Consolidated Statements of Operations on an accrual basis. Repos are presented in the Consolidated Statements of Financial Condition on a net-basis-by counterparty, where permitted by GAAP. The fair value of the underlying securities is monitored daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage exposure to credit risk associated with derivative activities and securities financing transactions, Jefferies Group may enter into International Swaps and Derivative Association, Inc. ("ISDA") master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third party. Under its ISDA master netting agreements, Jefferies Group typically also executes credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty's default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where Jefferies Group has not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of Jefferies Group's risk management processes as part of reducing counterparty credit risk and managing liquidity risk. Jefferies Group is also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. See Notes 6 and 7 for further information. Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements of $351.0 million and $750.4 million at November 30, 2018 and December 31, 2017 , respectively, are stated at cost, net of accumulated depreciation and amortization, and are included in Other assets in the Consolidated Statements of Financial Condition. The prior year amount, which was previously reported separately, has been reclassified to be consistent with the current year presentation. Depreciation and amortization are provided principally on the straight-line method over the estimated useful lives of the assets or, if less, the term of the underlying lease. Impairment of Long-Lived Assets We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of whether an asset group is recoverable is based on management's estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value. If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value. During the twelve months ended December 31, 2016 , JETX Energy recorded impairment charges in Selling, general and other expenses of $56.3 million related to write-downs of unproved oil and gas properties. JETX Energy assesses its unproved oil and gas properties for impairment based on remaining lease terms, drilling results or future plans to develop acreage and they record impairment expense for any decline in value. In the third quarter of 2016, JETX Energy curtailed development of both its southern acreage in the East Eagle Ford and its Houston County acreage. As a result, an impairment was recorded for the difference between the carrying value and the estimated net realizable value of the acreage. Substantially all of our operating businesses sell products or services that are impacted by general economic conditions in the U.S. and to a lesser extent internationally. A worsening of current economic conditions could cause a decline in estimated future cash flows expected to be generated by our operations and investments. If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in intangible assets, property and equipment and other long-lived assets (for example, Jefferies Group, manufacturing, oil and gas production and development and certain associated company investments), impairment charges would have to be recorded. Intangible Assets, Net and Goodwill Intangible Assets . Intangible assets deemed to have finite lives are generally amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in amortizable intangible assets, impairment charges would have to be recorded. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary. Impairment exists when the carrying amount exceeds its fair value. Fair value will be determined using valuation techniques consistent with what a market participant would use. All of our indefinite-lived intangible assets were recognized in connection with the Jefferies Group acquisition, and our annual impairment testing date for Jefferies Group is as of August 1. Goodwill. At acquisition, we allocate the cost of a business acquisition to the specific tangible and intangible assets acquired and liabilities assumed based upon their fair values. Significant judgments and estimates are often made by management to determine these values, and may include the use of appraisals, consideration of market quotes for similar transactions, use of discounted cash flow techniques or consideration of other information we believe to be relevant. Any excess of the cost of a business acquisition over the fair values of the net assets and liabilities acquired is recorded as goodwill, which is not amortized to expense. Substantially all of our goodwill was recognized in connection with the Jefferies Group acquisition. At least annually, and more frequently if warranted, we will assess whether goodwill has been impaired. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the reporting unit's goodwill. The fair values will be based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating fair value include market capitalization, price-to-book multiples of comparable exchange traded companies, multiples of merger and acquisitions of similar businesses and/or projected cash flows. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Our annual goodwill impairment testing date related to Jefferies Group is as of August 1. Inventories and Cost of Sales Manufacturing inventories are stated at the lower of cost or net realizable value, with cost principally determined under the first-in-first-out method. Manufacturing cost of sales principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs. Inventories are classified as Other assets in the Consolidated Statements of Financial Condition. Payables, expense accruals and other liabilities At November 30, 2018 and December 31, 2017 , Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $2,465.6 million and $2,228.9 million , respectively, and payables to customers of securities operations of $3,176.7 million and $2,664.0 million , respectively. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realization of deferred tax assets is assessed, and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company uses the portfolio approach relating to the release of stranded tax effects recorded in accumulated other comprehensive income. Under the portfolio approach, the net unrealized gains or losses recorded in accumulated other comprehensive income would be eliminated only on the date the entire portfolio of available for sale securities is sold or otherwise disposed of. Share-based Compensation Share-based awards are measured based on the fair value of the award as determined in accordance |
Change in Year End
Change in Year End | 11 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Change in Year End | Change in Year End On October 2, 2018, our Board of Directors approved a change to our fiscal year end from a calendar year basis to a fiscal year ending on November 30. Our 2018 fiscal year consists of the eleven month transition period beginning January 1, 2018 through November 30, 2018. Financial statements for 2017 and 2016 continue to be presented on the basis of our previous calendar year end. The following is selected financial data for the eleven month transition period ending November 30, 2018, and the comparable prior year period. Jefferies Group financial data is presented in each year based on the twelve months ended November 30. All other results are based on the eleven months ended November 30 for both years (in thousands, except per share amounts). 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: Income from continuing operations $ 0.82 $ 1.14 Income from discontinued operations, including gain on disposal 2.11 0.51 Net income $ 2.93 $ 1.65 Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: Income from continuing operations $ 0.81 $ 1.13 Income from discontinued operations, including gain on disposal 2.09 0.50 Net income $ 2.90 $ 1.63 |
Accounting Developments
Accounting Developments | 11 Months Ended |
Nov. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Developments | Accounting Developments Accounting Developments - Adopted Accounting Standards Revenue Recognition. We adopted the new revenue standard as of January 1, 2018 and recognized an increase of $17.8 million after-tax to beginning retained earnings as the cumulative effect of adoption of accounting standards. The increase primarily relates to the recognition of $24.3 million of revenue previously deferred from the sale of real estate to HomeFed in 2014, offset by a decrease of $6.1 million related to Jefferies Group. For Jefferies Group, the impact of adoption primarily related to investment banking expenses that were deferred as of December 31, 2017 under the previously existing accounting guidance, which would have been expensed in prior periods under the new revenue standard and investment banking revenues that were previously recognized in prior periods, which would have been deferred as of December 31, 2017 under the new revenue standard. We elected to adopt the new guidance using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. Accordingly, the new revenue standard is applied prospectively in our financial statements from January 1, 2018 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The new revenue standard does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, and as a result, did not have an impact on the elements of our Consolidated Statements of Operations most closely associated with financial instruments, including Principal transactions revenues, Interest income and Interest expense. The new revenue standard primarily impacts Jefferies Group's revenue recognition and presentation accounting policies as follows: • Investment Banking Revenues. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. • Certain Capital Markets Revenues. Revenues associated with price stabilization activities as part of a securities underwriting were historically recognized as part of Investment banking revenues. Under the new revenue standard, revenues from these activities are recognized within Principal transactions revenues, as these revenues are not considered to be within the scope of the new standard. • Investment Banking Advisory Expenses. Historically, expenses associated with investment banking advisory assignments were deferred until reimbursed by the client, the related fee revenue is recognized or the engagement is otherwise concluded. Under the new revenue standard, expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. • Investment Banking Underwriting and Advisory Expenses. Expenses have historically been recorded net of client reimbursements and/or netted against revenues. Under the new revenue standard, all investment banking expenses will be recognized within their respective expense category in the Consolidated Statements of Operations and any expense reimbursements will be recognized as Investment banking revenues (i.e., expenses are no longer recorded net of client reimbursements and are not netted against revenues). • Asset Management Fees. In certain asset management fee arrangements, Jefferies Group and LAM receive performance-based fees, which vary with performance or, in certain cases, are earned when the return on assets under management exceed certain benchmark returns or other performance targets. Historically, performance fees have been accrued (or reversed) quarterly based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Under the new revenue standard, performance fees are considered variable as they are subject to fluctuation (e.g., based on market performance) and/or are contingent on a future event during the measurement period (e.g., exceeding a specified benchmark index) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. There was no significant impact as a result of applying the new revenue standard to our consolidated financial statements for the eleven months ended November 30, 2018, except as it relates to the presentation of Jefferies Group's investment banking expenses. The table below presents the impact of applying the new revenue recognition standard to the Consolidated Statements of Operations for the eleven months ended November 30, 2018 as a result of the change in presentation of investment banking expenses (in thousands): Eleven Months Ended November 30, 2018 As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard Revenues: Commissions and other fees $ 634,271 $ — $ 634,271 Principal transactions 232,224 — 232,224 Investment banking 1,904,870 131,789 1,773,081 Interest income 1,294,325 — 1,294,325 Manufacturing revenues 357,427 — 357,427 Other 586,611 — 586,611 Total revenues 5,009,728 131,789 4,877,939 Interest expense of Jefferies Group 1,245,694 — 1,245,694 Net revenues 3,764,034 131,789 3,632,245 Expenses: Compensation and benefits 1,862,782 — 1,862,782 Cost of sales 307,071 — 307,071 Floor brokerage and clearing fees 184,210 — 184,210 Interest expense 89,249 — 89,249 Depreciation and amortization 120,317 — 120,317 Selling, general and other expenses 961,328 131,789 829,539 Total expenses 3,524,957 131,789 3,393,168 Income from continuing operations before income taxes and income (loss) related to associated companies $ 239,077 $ — $ 239,077 Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. We adopted the new guidance as of January 1, 2018 with a cumulative effect increase to opening retained earnings of $27.6 million and a corresponding decrease to Accumulated other comprehensive income. The opening retained earnings adjustment is to recognize the unrealized gains we had for available for sale equity securities. Beginning in 2018, these available for sale equity securities are now reported as part of Trading assets, at fair value within the Consolidated Statements of Financial Condition. The adoption of the guidance on financial liabilities under the fair value option did not have a material impact on our consolidated financial statements. Statement of Cash Flows. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted both standards in the first quarter of 2018. Prior periods were retrospectively adjusted to conform to the current period's presentation. The adoption of the guidance did not have a material impact on our Consolidated Statements of Cash Flows. Upon adoption, we recorded decreases of $284.5 million and $36.4 million , respectively, in Net cash provided by operating activities and increases (decreases) of $(7.4) million and $3.4 million , respectively, in Net cash used for investing activities for the twelve months ended December 31, 2017 and 2016 related to reclassifying the changes in our restricted cash balance from operating and investing activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Retirement Benefits. In March 2017, the FASB issued new guidance for improving the presentation of net periodic pension costs in the statement of operations. The update also allows the service cost to be eligible for capitalization, when applicable. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. The adoption of this guidance resulted in the following adjustments to the Consolidated Statements of Operations for the twelve months ended December 31, 2017 and 2016 : a decrease of $3.0 million and $3.0 million , respectively, to Compensation and benefits expenses and an increase to Selling, general and other expenses of $3.0 million and $3.0 million , respectively. Compensation. In May 2017, the FASB issued new guidance providing clarity and reducing diversity in practice and cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Fair Value Measurement. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on fair value measurement by eliminating certain disclosure requirements for fair value measurements for all entities, requiring public entities to disclose certain new information and modifying some disclosure requirements. We early adopted this guidance in the third quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The right of use asset and lease liability will be measured initially using the present value of the remaining rental payments. A significant portion of the population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition have been identified; however, their initial measurement still remains under evaluation. We are currently modifying certain of our lease accounting systems to enable us to comply with the accounting requirements of this guidance. In July 2018, the FASB issued additional guidance on leases which allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption. The guidance is effective for annual and interim periods beginning after December 15, 2018. We plan on adopting the lease standard in the first quarter of fiscal 2020 with a cumulative-effect adjustment to opening retained earnings in the period of adoption. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Goodwill. In January 2017, the FASB issued new guidance for simplifying goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Derivatives and Hedging. In August 2017, the FASB issued new guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. The guidance is effective in the first quarter of fiscal 2020. We do not believe the new guidance will have a material impact on our consolidated financial statements. Defined Benefit Plans. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on defined benefit pension plans and other post-retirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Internal-Use Software. In August 2018, the FASB issued new guidance which amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Consolidation. In October 2018, the FASB issued new guidance which requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 11 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following is a summary of our financial instruments, trading liabilities, short-term borrowings and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV (within trading assets) of $394.4 million and $590.1 million by level within the fair value hierarchy at November 30, 2018 and December 31, 2017 , respectively (in thousands): November 30, 2018 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 $ — $ 2,667,918 Corporate debt securities — 2,683,180 9,484 — 2,692,664 Collateralized debt obligations and collateralized loan obligations — 72,949 36,105 — 109,054 U.S. government and federal agency securities 1,789,614 56,592 — — 1,846,206 Municipal securities — 894,253 — — 894,253 Sovereign obligations 1,769,556 1,043,409 — — 2,812,965 Residential mortgage-backed securities — 2,163,629 19,603 — 2,183,232 Commercial mortgage-backed securities — 819,406 10,886 — 830,292 Other asset-backed securities — 239,381 53,175 — 292,556 Loans and other receivables — 2,056,593 46,985 — 2,103,578 Derivatives 34,841 2,539,943 5,922 (2,413,931 ) 166,775 Investments at fair value — — 396,254 — 396,254 FXCM term loan — — 73,150 — 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: U.S. government securities $ 1,072,856 $ — $ — $ — $ 1,072,856 Residential mortgage-backed securities — 210,518 — — 210,518 Commercial mortgage-backed securities — 15,642 — — 15,642 Other asset-backed securities — 110,870 — — 110,870 Total available for sale securities $ 1,072,856 $ 337,030 $ — $ — $ 1,409,886 Liabilities: Trading liabilities: Corporate equity securities $ 1,685,071 $ 1,444 $ — $ — $ 1,686,515 Corporate debt securities — 1,505,618 522 — 1,506,140 U.S. government and federal agency securities 1,384,295 — — — 1,384,295 Sovereign obligations 1,735,242 661,095 — — 2,396,337 Loans — 1,371,630 6,376 — 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 - structured notes $ — $ 485,425 $ 200,745 $ — $ 686,170 December 31, 2017 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,975,463 $ 60,300 $ 22,270 $ — $ 3,058,033 Corporate debt securities — 3,261,300 26,036 — 3,287,336 Collateralized debt obligations and collateralized loan obligations — 139,166 42,184 — 181,350 U.S. government and federal agency securities 1,269,230 39,443 — — 1,308,673 Municipal securities — 710,513 — — 710,513 Sovereign obligations 1,381,552 1,035,907 — — 2,417,459 Residential mortgage-backed securities — 1,453,294 26,077 — 1,479,371 Commercial mortgage-backed securities — 508,115 12,419 — 520,534 Other asset-backed securities — 217,111 61,129 — 278,240 Loans and other receivables — 1,620,581 47,304 — 1,667,885 Derivatives 165,396 3,323,278 9,295 (3,318,481 ) 179,488 Investments at fair value — 946 329,944 — 330,890 FXCM term loan — — 72,800 — 72,800 Total trading assets, excluding investments at fair value based on NAV $ 5,791,641 $ 12,369,954 $ 649,458 $ (3,318,481 ) $ 15,492,572 Available for sale securities: Corporate equity securities (2) $ 88,486 $ — $ — $ — $ 88,486 U.S. government securities 552,805 — — — 552,805 Residential mortgage-backed securities — 34,561 — — 34,561 Commercial mortgage-backed securities — 5,870 — — 5,870 Other asset-backed securities — 34,839 — — 34,839 Total available for sale securities $ 641,291 $ 75,270 $ — $ — $ 716,561 Liabilities: Trading liabilities: Corporate equity securities $ 1,721,267 $ 32,122 $ 48 $ — $ 1,753,437 Corporate debt securities — 1,688,825 522 — 1,689,347 U.S. government and federal agency securities 1,430,737 — — — 1,430,737 Sovereign obligations 1,216,643 956,992 — — 2,173,635 Commercial mortgage-backed securities — — 105 — 105 Loans — 1,148,824 3,486 — 1,152,310 Derivatives 249,361 3,480,506 16,041 (3,490,514 ) 255,394 Total trading liabilities $ 4,618,008 $ 7,307,269 $ 20,202 $ (3,490,514 ) $ 8,454,965 Short-term borrowings $ — $ 23,324 $ — $ — $ 23,324 Long-term debt - structured notes $ — $ 606,956 $ — $ — $ 606,956 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. (2) As of January 1, 2018, the Company adopted the FASB's new guidance that affects the accounting for equity investments and the presentation and disclosure requirements for financial instruments. At November 30, 2018 , equity investments are primarily classified as Trading assets, at fair value and the change in fair value of equity securities is now recognized through the Consolidated Statements of Operations. See Note 4 for additional information. The following is a description of the valuation basis, including valuation techniques and inputs, used in measuring our financial assets and liabilities that are accounted for at fair value on a recurring basis: Corporate Equity Securities • Exchange Traded Equity Securities: Exchange traded equity securities are measured based on quoted closing exchange prices obtained from external pricing services, 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. • Non-Exchange Traded Equity Securities : 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. Where such information is not available, non-exchange traded equity securities are categorized within Level 3 of the fair value hierarchy and measured using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/Earnings before interest, taxes, depreciation and amortization ("EBITDA"), price/book value), discounted cash flow analyses and transaction prices observed from subsequent financing or capital issuance by Jefferies Group. When using pricing data of comparable companies, judgment must be applied to adjust the pricing data to account for differences between the measured security and the comparable security (e.g., issuer market capitalization, yield, dividend rate, geographical concentration). • Equity Warrants: 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. Corporate Debt Securities • Corporate Bonds: 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. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If 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. Corporate bonds measured using alternative valuation techniques are categorized within Level 3 of the fair value hierarchy and are a limited portion of our corporate bonds. • High Yield Corporate and Convertible Bonds: 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. Where 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. Collateralized Debt Obligations and Collateralized Loan Obligations Collateralized Debt Obligations ("CDOs") and Collateralized Loan Obligations ("CLOs") are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: 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. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations, with consideration given to the country of issuance, are generally categorized in Level 1 or Level 2 of the fair value hierarchy. Residential Mortgage-Backed Securities • Agency Residential Mortgage-Backed Securities: 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 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. • Non-Agency Residential Mortgage-Backed Securities: 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. Performance 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. Yield 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. Commercial Mortgage-Backed Securities • Agency Commercial Mortgage-Backed Securities: 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. GNMA project loan bonds and FNMA DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy. • Non-Agency Commercial Mortgage-Backed Securities: 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. Other Asset-Backed Securities Other asset-backed securities include, but are not limited to, securities backed by auto loans, credit card receivables, student loans and other consumer loans and are categorized within Level 2 or Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services, broker quotes and prices observed from recently executed market transactions. In addition, recent transaction data from comparable deals is deployed to develop market clearing yields and cumulative loss assumptions. The cumulative loss assumptions are based on the analysis of the underlying collateral and comparisons to earlier deals from the same issuer to gauge the relative performance of the deal. Loans and Other Receivables • Corporate Loans: 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. Corporate 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. • 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 participation certificates are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions and availability of data provider pricing. • Project Loans and Participation Certificates in GNMA Project and Construction Loans: 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. Securitization 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. • Consumer Loans and Funding Facilities: 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. • Escrow and Trade Claim Receivables: Escrow and trade 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. Escrow and trade claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. Derivatives • Listed Derivative Contracts: 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. • Over-the-Counter ("OTC") Derivative Contracts: 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. Where available, valuation inputs are calibrated from 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. OTC options include OTC equity, foreign exchange, interest rate and commodity options measured using various valuation models, such as Black-Scholes, with key inputs including the underlying security price, foreign exchange spot rate, commodity price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Discounted cash flow models are utilized to measure certain OTC derivative contracts including the valuations of our interest rate swaps, which incorporate observable inputs related to interest rate curves, valuations of our foreign exchange forwards and swaps, which incorporate observable inputs related to foreign currency spot rates and forward curves and valuations of our commodity swaps and forwards, which incorporate observable inputs related to commodity spot prices and forward curves. Discounted cash flow models are also utilized to measure certain variable funding note swaps, which are backed by CLOs and incorporate constant prepayment rate, constant default rate and loss severity assumptions. Credit default swaps include both index and single-name credit default swaps. Where available, external data is used in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are generally observable for the underlying asset and used as the basis for measuring the fair value of the derivative contracts. Total return swaps executed on other underlyings are measured based on valuations received from external pricing services. • 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. Investments at Fair Value Investments at fair value include investments in hedge funds, fund of funds and private equity funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses, contingent claims analysis and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Additionally, investments at fair value included investments in insurance contracts relating to Jefferies Group's defined benefit plan in Germany. Fair value for the insurance contracts is determined using a third party and is categorized within Level 3 of the fair value hierarchy. The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands). Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) November 30, 2018 Equity Long/Short Hedge Funds (2) $ 86,788 $ — (2) Equity Funds (3) 40,070 20,996 — Commodity Funds (4) 10,129 — Quarterly Multi-asset Fund (5) 256,972 — — Other funds (6) 400 — — Total $ 394,359 $ 20,996 December 31, 2017 Equity Long/Short Hedge Funds (2) $ 407,895 $ — (2) Equity Funds (3) 26,798 19,084 — Multi-asset Fund (5) 154,805 — — Other funds (6) 606 — — Total $ 590,104 $ 19,084 (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, in primarily equity securities in domestic and international markets in both the public and private sectors. At December 31, 2017 , 73% of these investments were redeemable with 10 business days or less prior written notice; these investments were primarily liquidated during 2018. At November 30, 2018 and December 31, 2017 , 17% and 15% , respectively, of these investments are redeemable with 60 days prior written notice. (3) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. 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 ten years. (4) This category includes investments in hedge funds that invest, 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, 2018 and December 31, 2017 , investments representing approximately 15% and 12% , respectively, of the fair value of investments in this category are redeemable with 30 days prior written notice. (6) This category includes investments in funds that invest 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 fund of funds that invest in various private equity funds that are managed by Jefferies Group and have no redemption provisions. These investments are gradually being liquidated or Jefferies Group has requested redemption, however, Jefferies Group is unable to estimate when these funds will be received. Investments at fair value also include our investment in WeWork. We invested $9.0 million in WeWork in 2013 and currently own less than 1% of the company. Our interest in WeWork is reflected in Trading assets at fair value of $254.4 million at November 30, 2018 . Investment in FXCM FXCM is a provider of online foreign exchange trading services. In January 2015, we entered into a credit agreement with FXCM, and provided FXCM a $300 million senior secured term loan due January 2017 (the term of which was subsequently extended to the first quarter of 2019), with rights to a variable proportion of certain future distributions in connection with an FXCM sale of assets or certain other events, and to require a sale of FXCM beginning in January 2018. The loan had an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter, not to exceed 20.5% per annum. During the eleven months ended November 30, 2018 , interest accrued at 20.5% per annum. During the eleven months ended November 30, 2018 , we received $18.3 million of principal and interest from FXCM and $67.6 million of principal remained outstanding under the term loan as of November 30, 2018 . Through November 30, 2018 , we have received cumulatively $349.8 million of principal, interest and fees from our initial $279.0 million investment in FXCM. Our investment in the FXCM term loan is reported within Trading assets, at fair value in our Consolidated Statements of Financial Condition, and unrealized and realized changes in value, including the component related to interest income on the loan, is included within Principal transactions revenues in the Consolidated Statements of Operations. We recorded gains (losses) in Principal transactions revenues of $18.6 million and $23.2 million during the eleven months ended November 30, 2018 and twelve months ended December 31, 2017 , respectively, from our term loan and $(54.6) million during the twelve months ended December 31, 2016 from our term loan and related rights. On September 1, 2016, we, Global Brokerage Inc. ("Global Brokerage") and Global Brokerage Holdings, LLC ("Global Brokerage Holdings") entered into an agreement that amended the terms of our loan and associated rights. On November 10, 2017, the terms of our loan and associated rights were amended further. Among other changes, the amendments extended the maturity of the term loan to the first quarter of 2019; and exchanged our rights for a 50% voting interest in FXCM and up to 75% of all distributions. Through these amendments, we also gained the right to appoint three of six board members for FXCM. We have the right, as does Global Brokerage Holdings, the owner of the remaining 50% of FXCM voting interest that is not held by Jefferies, to require a sale of FXCM beginning in January 2018. Distributions to Jefferies under the amended agreements are now: 100% until amounts due under the loan are repaid; 50% of the next $350 million ; then 90% of the next $600 million ; and 60% of all amounts thereafter. Through the amendments, we gained the ability to significantly influence FXCM through our seats on the board of directors. As a result, we classify our equity investment in FXCM in our November 30, 2018 and December 31, 2017 Consolidated Statements of Financial Condition as Loans to and investments in associated companies. We account for our equity interest on a one month lag. As the amendments only extended the maturity of the term loan, we continue to use the fair value option and classify our term loan within Trading assets, at fair value. FXCM is considered a variable interest entity ("VIE") and our term loan and equity ownership are variable interests. We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM's performance. Therefore, we do not consolidate FXCM and we account for our equity interest under the equity method as an investment in an associated company. Our maximum exposure to loss as a result of our involvement with FXCM is limited to the carrying value of the term loan ( $73.2 million ) and the investment in associated company ( $75.0 million ), which totaled $148.2 million at November 30, 2018 . We estimate the fair value of our term loan by using a valuation model with inputs including management's assumptions concerning the amount and timing of expected cash flows, the loan's implied credit rating and effective yield. Because of these inputs and the degree of judgment involved, we have categorized our term loan within Level 3 of the fair value hierarchy. Nonrecurring Fair Value Measurements As described further in Note 11, in the third quarter of 2018 we engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in Golden Queen. Our estimate of fair value was based on a discounted cash flow analysis and is categorized within Level 3 of the fair value hierarchy. The discounted cash flow valuation model used inputs including management's projections of future Golden Queen cash flows and a discount rate of 12% . The estimated fair value of our equity investment in Golden Queen was $62.3 million , which was $47.9 million lower than our carrying value. As a result, an impairment charge of $47.9 million was recorded in Income (loss) related to associated companies in the third quarter of 2018. As discussed further in Note 11, during the fourth quarter of 2018, we recorded an impairment charge of $62.1 million related to the equity component of our investment in FXCM, which is based on updated expectations that have been impacted by the recently revised regulations of the European Securities Market Authority and dampened operating results. We engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in FXCM. Our fourth quarter estimate of fair value was based on a discounted cash flow analysis and is categorized within Level 3 of the fair value hierarchy. The discounted cash flow valuation model used inputs including management's projections of future FXCM cash flows and a discount rate of 18.5% . The estimated fair value of our equity investment in FXCM was $75.0 million , which was $62.1 million lower than our carrying value. As a result, an impairment charge of $62.1 million was recorded in Income (loss) related to associated companies in the fourth quarter of 2018. In the first quarter of 2017 we engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in FXCM. Our first quarter estimate of fair value was based on a discounted cash flow and comparable public company analysis and |
Derivative Financial Instrument
Derivative Financial Instruments | 11 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative Financial Instruments Derivative activities are recorded at fair value in the Consolidated Statements of Financial Condition in Trading assets and Trading liabilities, net of cash paid or received under credit support agreements and on a net counterparty basis when a legally enforceable right to offset exists under a master netting agreement. Predominantly, Jefferies Group enters into derivative transactions to satisfy the needs of its clients and to manage its own exposure to market and credit risks resulting from its trading activities. In addition, Jefferies Group applies hedge accounting to an interest rate swap that has been designated as a fair value hedge of the changes in fair value due to the benchmark interest rate for certain fixed rate senior long-term debt. See Notes 5 and 24 for additional disclosures about derivative financial instruments. Derivatives are subject to various risks similar to other financial instruments, including market, credit and operational risk. The risks of derivatives should not be viewed in isolation, but rather should be considered on an aggregate basis along with our other trading-related activities. Jefferies Group manages the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of its firm wide risk management policies. In connection with Jefferies Group's derivative activities, Jefferies Group may enter into ISDA master netting agreements or similar agreements with counterparties. See Note 2 for additional information regarding the offsetting of derivative contracts. The following table presents the fair value and related number of derivative contracts categorized by type of derivative contract as reflected in the Consolidated Statements of Financial Condition at November 30, 2018 and December 31, 2017 . The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands, except contract amounts): Assets Liabilities Fair Value Number of Contracts (1) Fair Value Number of Contracts (1) November 30, 2018 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 29,647 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 796,493 35,652 $ 904,043 69,305 Foreign exchange contracts 311,270 10,086 314,989 1,602 Equity contracts 1,410,148 2,109,810 2,377,133 1,782,600 Commodity contracts 37,823 8,546 1,717 5,683 Credit contracts 24,972 130 13,174 93 Total 2,580,706 3,611,056 Counterparty/cash-collateral netting (2) (2,413,931 ) (2,513,050 ) Total derivatives not designated as accounting hedges $ 166,775 $ 1,098,006 Total per Consolidated Statement of Financial Condition (3) $ 166,775 $ 1,127,653 December 31, 2017 Derivatives designated as accounting hedges - interest rate contracts (4) $ — — $ 2,420 1 Derivatives not designated as accounting hedges: Interest rate contracts (4) $ 1,717,058 38,941 $ 1,708,776 12,828 Foreign exchange contracts 366,541 6,463 349,512 4,612 Equity contracts 1,373,016 2,728,750 1,638,258 2,118,526 Commodity contracts 3,093 7,249 5,141 6,047 Credit contracts 38,261 130 41,801 191 Total 3,497,969 3,743,488 Counterparty/cash-collateral netting (2)(4) (3,318,481 ) (3,490,514 ) Total derivatives not designated as accounting hedges $ 179,488 $ 252,974 Total per Consolidated Statement of Financial Condition (3) $ 179,488 $ 255,394 (1) 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 our Consolidated Statements of Financial Condition. (2) Amounts netted include both netting by counterparty and for cash collateral paid or received. (3) 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. (4) Pursuant to a rule change by the London Clearing House in the first fiscal quarter of 2018, variation margin exchanged each day with this clearing organization on certain interest rate derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of December 31, 2017 of approximately $800 million , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . The following table provides information related to gains (losses) recognized in Interest expense of Jefferies Group in the Consolidated Statements of Operations on a fair value hedge (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Interest rate swaps $ (25,539 ) $ (2,091 ) $ — Long-term debt 27,363 8,124 — Total $ 1,824 $ 6,033 $ — The following table presents unrealized and realized gains (losses) on derivative contracts which are primarily recognized in Principal transactions revenues in the Consolidated Statements of Operations, which are utilized in connection with our client activities and our economic risk management activities (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Interest rate contracts $ 67,291 $ 3,171 $ (36,559 ) Foreign exchange contracts 226 4,376 20,401 Equity contracts (267,187 ) (319,775 ) (635,305 ) Commodity contracts 21,785 (9,049 ) (3,339 ) Credit contracts 449 1,959 5,013 Total $ (177,436 ) $ (319,318 ) $ (649,789 ) The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising Jefferies Group's business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. Jefferies Group substantially mitigates its exposure to market risk on its cash instruments through derivative contracts, which generally provide offsetting revenues, and Jefferies Group manages the risk associated with these contracts in the context of its overall risk management framework. OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at November 30, 2018 (in thousands): OTC Derivative Assets (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross- Maturity Netting (4) Total Commodity swaps, options and forwards $ 4,006 $ 6,185 $ — $ (1,445 ) $ 8,746 Equity swaps and options 1,769 13,966 4,934 (1,889 ) 18,780 Credit default swaps 66 12,060 3,984 (899 ) 15,211 Total return swaps 95,130 19,519 — (1,786 ) 112,863 Foreign currency forwards, swaps and options 39,162 15,942 — (12,528 ) 42,576 Fixed income forwards 3,911 — — — 3,911 Interest rate swaps, options and forwards 27,851 93,303 103,165 (77,874 ) 146,445 Total $ 171,895 $ 160,975 $ 112,083 $ (96,421 ) 348,532 Cross product counterparty netting (18,743 ) Total OTC derivative assets included in Trading assets $ 329,789 (1) At November 30, 2018 , we held exchange traded derivative assets, other derivatives assets and other credit agreements with a fair value of $42.2 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. At November 30, 2018 , cash collateral received was $205.3 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. OTC Derivative Liabilities (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Commodity swaps, options and forwards $ 1,074 $ 371 $ — $ (1,445 ) $ — Equity swaps and options 52,466 83,938 35,730 (1,889 ) 170,245 Credit default swaps 164 1,197 1,548 (899 ) 2,010 Total return swaps 64,296 11,549 — (1,786 ) 74,059 Foreign currency forwards, swaps and options 43,593 15,546 — (12,528 ) 46,611 Interest rate swaps, options and forwards 30,518 135,874 196,171 (77,874 ) 284,689 Total $ 192,111 $ 248,475 $ 233,449 $ (96,421 ) 577,614 Cross product counterparty netting (18,743 ) Total OTC derivative liabilities included in Trading liabilities $ 558,871 (1) At November 30, 2018 , we held exchange traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $873.5 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. At November 30, 2018 , cash collateral pledged was $304.7 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. At November 30, 2018 , the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands): Counterparty credit quality (1): A- or higher $ 163,656 BBB- to BBB+ 21,222 BB+ or lower 119,713 Unrated 25,198 Total $ 329,789 (1) Jefferies Group utilizes internal credit ratings determined by the Jefferies Group Risk Management department. Credit ratings determined by Jefferies Group Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. Credit Related Derivative Contracts The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional November 30, 2018 Credit protection sold: Index credit default swaps $ 25.7 $ 167.4 $ — $ 193.1 Single name credit default swaps 57.7 84.5 3.0 145.2 December 31, 2017 Credit protection sold: Index credit default swaps $ 3.0 $ 126.0 $ — $ 129.0 Single name credit default swaps 129.1 89.1 — 218.2 Contingent Features Certain of Jefferies Group's derivative instruments contain provisions that require their debt to maintain an investment grade credit rating from each of the major credit rating agencies. If Jefferies Group's debt were to fall below investment grade, it would be in violation of these provisions and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on Jefferies Group's derivative instruments in liability positions. The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts posted or received in the normal course of business and the potential collateral Jefferies Group would have been required to return and/or post additionally to its counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): November 30, 2018 December 31, 2017 Derivative instrument liabilities with credit-risk-related contingent features $ 93.5 $ 95.1 Collateral posted (61.5 ) (86.4 ) Collateral received 91.5 5.6 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 123.3 14.3 (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. Other 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. The gains and losses associated with the change in fair value of the derivatives are recorded in Other revenues. |
Collateralized Transactions
Collateralized Transactions | 11 Months Ended |
Nov. 30, 2018 | |
Collateralized Transactions [Abstract] | |
Collateralized Transactions | Collateralized Transactions Jefferies Group enters into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of dealer operations. Jefferies Group monitors the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and requests additional collateral or return s excess collateral, as appropriate. Jefferies Group pledges financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Jefferies Group's agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned and noted parenthetically as Securities pledged in our Consolidated Statements of Financial Condition. The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged and remaining contractual maturity (in thousands): Collateral Pledged Securities Lending Arrangements Repurchase Agreements Total November 30, 2018 Corporate equity securities $ 1,505,218 $ 487,124 $ 1,992,342 Corporate debt securities 333,221 1,853,309 2,186,530 Mortgage- and asset-backed securities 249 2,820,543 2,820,792 U.S. government and federal agency securities — 8,181,947 8,181,947 Municipal securities — 604,274 604,274 Sovereign securities — 2,945,521 2,945,521 Loans and other receivables — 300,768 300,768 Total $ 1,838,688 $ 17,193,486 $ 19,032,174 December 31, 2017 Corporate equity securities $ 2,353,798 $ 214,413 $ 2,568,211 Corporate debt securities 470,908 2,336,702 2,807,610 Mortgage- and asset-backed securities — 2,562,268 2,562,268 U.S. government and federal agency securities 19,205 11,792,534 11,811,739 Municipal securities — 444,861 444,861 Sovereign securities — 2,023,530 2,023,530 Loans and other receivables — 454,941 454,941 Total $ 2,843,911 $ 19,829,249 $ 22,673,160 Contractual Maturity Overnight and Continuous Up to 30 Days 31 to 90 Days Greater than 90 Days Total November 30, 2018 Securities lending arrangements $ 807,347 $ — $ 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 December 31, 2017 Securities lending arrangements $ 1,676,940 $ — $ 741,971 $ 425,000 $ 2,843,911 Repurchase agreements 10,780,474 4,058,228 3,211,464 1,779,083 19,829,249 Total $ 12,457,414 $ 4,058,228 $ 3,953,435 $ 2,204,083 $ 22,673,160 Jefferies Group receives securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. Jefferies Group also receives securities as collateral in connection with securities-for-securities transactions in which it is the lender of securities. In many instances, Jefferies Group is permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At November 30, 2018 and December 31, 2017 , the approximate fair value of securities received as collateral by Jefferies Group that may be sold or repledged was $23.1 billion and $27.1 billion , respectively. At November 30, 2018 and December 31, 2017 , a substantial portion of these securities have been sold or repledged. |
Securitization Activities
Securitization Activities | 11 Months Ended |
Nov. 30, 2018 | |
Securitization Activities [Abstract] | |
Securitization Activities | Securitization Activities Jefferies Group engages in securitization activities related to corporate loans, commercial mortgage loans, consumer loans and mortgage-backed and other asset-backed securities. In securitization transactions, Jefferies Group transfers assets to special purpose entities ("SPEs") and acts as the placement or structuring agent for the beneficial interests sold to investors by the SPE. A significant portion of the securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies. These SPEs generally meet the criteria of VIEs; however, the SPEs are generally not consolidated as Jefferies Group is not considered the primary beneficiary for these SPEs. Jefferies Group accounts for securitization transactions as sales, provided it has relinquished control over the transferred assets. Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transactions revenues in the Consolidated Statements of Operations prior to the identification and isolation for securitization. Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues. Jefferies Group generally receives cash proceeds in connection with the transfer of assets to an SPE. Jefferies Group may, however, have continuing involvement with the transferred assets, which is limited to retaining one or more tranches of the securitization (primarily senior and subordinated debt securities in the form of mortgage- and other asset-backed securities or CLOs), which are included in Trading assets and are generally initially categorized as Level 2 within the fair value hierarchy. Jefferies Group applies fair value accounting to the securities. The following table presents activity related to Jefferies Group's securitizations that were accounted for as sales in which it had continuing involvement (in millions): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Transferred assets $ 7,159.3 $ 4,552.9 $ 5,786.0 Proceeds on new securitizations 7,165.3 4,594.5 5,809.0 Cash flows received on retained interests 48.5 28.7 28.2 Jefferies Group has no explicit or implicit arrangements to provide additional financial support to these SPEs, has no liabilities related to these SPEs and has no outstanding derivative contracts executed in connection with these securitizations at November 30, 2018 and December 31, 2017 . The following table summarizes Jefferies Group's retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions): November 30, 2018 December 31, 2017 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 13,633.5 $ 365.3 $ 6,383.5 $ 28.2 U.S. government agency commercial mortgage-backed securities 2,027.6 185.6 2,075.7 81.4 CLOs 3,512.0 20.9 3,957.8 20.3 Consumer and other loans 604.1 48.9 247.6 47.8 Total assets represent the unpaid principal amount of assets in the SPEs in which Jefferies Group has continuing involvement and are presented solely to provide information regarding the size of the transactions and the size of the underlying assets supporting its retained interests, and are not considered representative of the risk of potential loss. Assets retained in connection with a securitization transaction represent the fair value of the securities of one or more tranches issued by an SPE, including senior and subordinated tranches. Jefferies Group's risk of loss is limited to this fair value amount which is included in total Trading assets in our Consolidated Statements of Financial Condition. Although not obligated, in connection with secondary market-making activities Jefferies Group may make a market in the securities issued by these SPEs. In these market-making transactions, Jefferies Group buys these securities from and sells these securities to investors. Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs. To the extent Jefferies Group purchased securities through these market-making activities and Jefferies Group is not deemed to be the primary beneficiary of the VIE, these securities are included in agency and non-agency mortgage- and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 10. Foursight Capital also utilizes SPEs to securitize automobile loans receivable. These SPEs are VIEs and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statements of Financial Condition. These secured borrowings do not have recourse to our subsidiary's general credit. See Note 10 for further information on securitization activities and VIEs. |
Available for Sale Securities a
Available for Sale Securities and Other Investments | 11 Months Ended |
Nov. 30, 2018 | |
Investments [Abstract] | |
Available for Sale Securities and Other Investments | Available for Sale Securities and Other Investments The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value November 30, 2018 Bonds and notes: 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 — 426 15,642 Other asset-backed securities 111,447 1 578 110,870 Total fixed maturities 1,411,762 378 2,254 1,409,886 Total Available for sale securities $ 1,411,762 $ 378 $ 2,254 $ 1,409,886 December 31, 2017 Bonds and notes: U.S. government securities $ 552,847 $ — $ 42 $ 552,805 Residential mortgage-backed securities 34,381 272 92 34,561 Commercial mortgage-backed securities 5,857 17 4 5,870 Other asset-backed securities 34,837 46 44 34,839 Total fixed maturities 627,922 335 182 628,075 Equity securities: Common stocks: Banks, trusts and insurance companies 35,071 17,500 — 52,571 Industrial, miscellaneous and all other 17,504 18,411 — 35,915 Total equity securities 52,575 35,911 — 88,486 Total Available for sale securities $ 680,497 $ 36,246 $ 182 $ 716,561 As of January 1, 2018, the Company adopted the FASB's new guidance that affects the accounting for equity investments and the presentation and disclosure requirements for financial instruments. At November 30, 2018 , equity investments are primarily classified as Trading assets, at fair value and the change in fair value of equity securities is now recognized through the Consolidated Statements of Operations. See Note 4 for additional information. At November 30, 2018 , the Company had other investments (classified as Other assets and Loans to and investments in associated companies) in which fair values are not readily determinable, aggregating $230.0 million . There were no unrealized gains, losses or impairments recognized on these investments during the eleven months ended November 30, 2018 . The amortized cost and estimated fair value of investments classified as available for sale at November 30, 2018 , by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 1,073,038 $ 1,072,856 1,073,038 1,072,856 Mortgage-backed and asset-backed securities 338,724 337,030 $ 1,411,762 $ 1,409,886 At November 30, 2018 , the unrealized losses on investments which have been in a continuous unrealized loss position for 12 months or longer were not significant. |
Variable Interest Entities
Variable Interest Entities | 11 Months Ended |
Nov. 30, 2018 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | Variable Interest Entities VIEs are entities in which equity investors lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. Our variable interests in VIEs include debt and equity interests, equity interests in associated companies, commitments, guarantees and certain fees. Our involvement with VIEs arises primarily from the following activities, but also includes other activities discussed below: • Purchases of securities in connection with Jefferies Group's trading and secondary market-making activities; • Retained interests held as a result of securitization activities, including the resecuritization of mortgage- and other asset-backed securities and the securitization of commercial mortgage, corporate and consumer loans; • Acting as placement agent and/or underwriter in connection with client-sponsored securitizations; • Financing of agency and non-agency mortgage- and other asset-backed securities; • Warehouse funding arrangements for client-sponsored consumer loan vehicles and CLOs through participation certificates, forward sale agreements and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires judgment. Our considerations in determining the VIE's most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE's purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE's initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE's significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the "power" criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the "power" criteria of the primary beneficiary. We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests. Consolidated VIEs The following table presents information about the assets and liabilities of our consolidated securitization vehicles VIEs, which are presented in our Consolidated Statements of Financial Condition in the respective asset and liability categories (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. November 30, 2018 December 31, 2017 Cash $ — $ 11.7 Financial instruments owned — 37.6 Securities purchased under agreements to resell (1) 883.1 729.3 Receivables 626.0 318.1 Other 78.4 15.5 Total assets $ 1,587.5 $ 1,112.2 Other secured financings (2) $ 1,535.3 $ 1,073.5 Other (3) 45.9 38.3 Total liabilities $ 1,581.2 $ 1,111.8 (1) Securities purchased under agreements to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation. (2) Approximately $1.0 million and $44.1 million of the secured financing represent amounts held by Jefferies Group in inventory and are eliminated in consolidation at November 30, 2018 and December 31, 2017 , respectively. (3) Includes $44.1 million and $32.0 million at November 30, 2018 and December 31, 2017 , respectively, of intercompany payables that are eliminated in consolidation. Securitization Vehicles. Jefferies Group is the primary beneficiary of asset-backed financing vehicles to which Jefferies Group sells agency and non-agency residential and commercial mortgage loans, mortgage-backed securities and consumer loans pursuant to the terms of a master repurchase agreement. Jefferies Group's variable interests in these vehicles consist of its collateral margin maintenance obligations under the master repurchase agreement, which Jefferies Group manages, and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle's debt holders. The creditors of these VIEs do not have recourse to Jefferies Group's general credit and each such VIE's assets are not available to satisfy any other debt. Jefferies Group was previously the primary beneficiary of a securitization vehicle associated with their financing of small business loans. In the creation of the securitization vehicle, Jefferies Group was involved in the decisions made during the establishment and design of the entity and holds variable interests consisting of the securities retained that could potentially be significant. The assets of the VIE consisted of small business loans, which were available for the benefit of the vehicles' beneficial interest holders. The creditors of the VIE did not have recourse to Jefferies Group's general credit and the assets of the VIE were not available to satisfy any other debt. At November 30, 2018 and December 31, 2017 , Foursight Capital is the primary beneficiary of SPEs it utilized to securitize automobile loans receivable. Foursight Capital acts as the servicer for which it receives a fee, and owns an equity interest in the SPEs. The notes issued by the SPEs are secured solely by the assets of the SPEs and do not have recourse to Foursight Capital's general credit and the assets of the VIEs are not available to satisfy any other debt. During the eleven months ended November 30, 2018 , automobile loan receivables aggregating $552.2 million were securitized by Foursight Capital in connection with secured borrowing offerings. The majority of the proceeds from issuance of the secured borrowings were used to pay down Foursight Capital's two credit facilities. Nonconsolidated VIEs The following tables present information about our variable interests in nonconsolidated VIEs (in millions): Financial Statement Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities November 30, 2018 CLOs $ 45.2 $ — $ 571.4 $ 3,281.9 Consumer loan vehicles 462.1 — 807.1 3,273.1 Related party private equity vehicles 35.5 — 53.5 108.3 Other investment vehicles 203.6 — 214.7 5,719.1 Total $ 746.4 $ — $ 1,646.7 $ 12,382.4 December 31, 2017 CLOs $ 168.1 $ 8.9 $ 1,030.4 $ 5,364.3 Consumer loan vehicles 254.8 — 759.8 2,322.7 Related party private equity vehicles 23.7 — 45.4 75.0 Other investment vehicles 133.0 — 142.0 4,624.9 Total $ 579.6 $ 8.9 $ 1,977.6 $ 12,386.9 Our maximum exposure to loss often differs from the carrying value of the variable interests. The maximum exposure to loss is dependent on the nature of the variable interests in the VIEs and is limited to the notional amounts of certain loan and equity commitments and guarantees. Our maximum exposure to loss does not include the offsetting benefit of any financial instruments that may be utilized to hedge the risks associated with its variable interests and is not reduced by the amount of collateral held as part of a transaction with a VIE. Collateralized Loan Obligations. Assets collateralizing the CLOs include bank loans, participation interests and sub-investment grade and senior secured U.S. loans. Jefferies Group underwrites securities issued in CLO transactions on behalf of sponsors and provides advisory services to the sponsors. Jefferies Group may also sell corporate loans to the CLOs. Jefferies Group's variable interests in connection with CLOs where it has been involved in providing underwriting and/or advisory services consist of the following: • Forward sale agreements whereby Jefferies Group commits to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs; • Warehouse funding arrangements in the form of participation interests in corporate loans held by CLOs and commitments to fund such participation interests; • Trading positions in securities issued in a CLO transaction; and • Investments in variable funding notes issued by CLOs. Consumer Loan Vehicles and Other Asset-Backed Vehicles. Jefferies Group provides financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities and forward purchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer and small business loans and trust preferred securities. In addition, Jefferies Group may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles. Jefferies Group does not control the activities of these entities. Related Party Private Equity Vehicles. Jefferies Group committed to invest equity in private equity funds (the "JCP Funds") managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, Jefferies Group committed to invest equity in the general partners of the JCP Funds (the "JCP General Partners") and the JCP Manager. Jefferies Group's variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the "JCP Entities") consist of equity interests that, in total, provide Jefferies Group with limited and general partner investment returns of the JCP Funds, a portion of the carried interest earned by the JCP General Partners and a portion of the management fees earned by the JCP Manager. At November 30, 2018 and December 31, 2017 , Jefferies Group's total equity commitment in the JCP Entities was $139.3 million and $148.1 million , respectively, of which $121.3 million and $126.3 million had been funded, respectively. The carrying value of Jefferies Group's equity investments in the JCP Entities was $35.5 million and $23.7 million at November 30, 2018 and December 31, 2017 , respectively. Jefferies Group's exposure to loss is limited to the total of its carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments. For further information regarding related party private equity vehicles, see Note 27. Other Investment Vehicles. The carrying amount of our equity investment was $203.6 million and $133.0 million at November 30, 2018 and December 31, 2017 , respectively. Our unfunded equity commitment related to these investments totaled $11.1 million and $9.1 million at November 30, 2018 and December 31, 2017 , respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These investment vehicles have assets primarily consisting of private and public equity investments, debt instruments and various oil and gas assets. Mortgage- and Other Asset-Backed Securitization Vehicles. In connection with Jefferies Group's secondary trading and market-making activities, Jefferies Group buys and sells agency and non-agency mortgage-backed securities and other asset-backed securities, which are issued by third-party securitization SPEs and are generally considered variable interests in VIEs. Securities issued by securitization SPEs are backed by residential mortgage loans, U.S. agency collateralized mortgage obligations, commercial mortgage loans, CDOs and CLOs and other consumer loans, such as installment receivables, auto loans and student loans. These securities are accounted for at fair value and included in Trading assets in our Consolidated Statements of Financial Condition. Jefferies Group has no other involvement with the related SPEs and therefore does not consolidate these entities. Jefferies Group also engages in underwriting, placement and structuring activities for third-party-sponsored securitization trusts generally through agency (FNMA ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac") or GNMA ("Ginnie Mae")) or non-agency-sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts. The securitizations are backed by residential and commercial mortgage, home equity and auto loans. Jefferies Group does not consolidate agency-sponsored securitizations as it does not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, Jefferies Group is not the servicer of non-agency-sponsored securitizations and therefore does not have power to direct the most significant activities of the SPEs and accordingly, does not consolidate these entities. Jefferies Group may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs. At November 30, 2018 and December 31, 2017 , Jefferies Group held $2,913.0 million and $1,829.6 million of agency mortgage-backed securities, respectively, and $170.5 million and $253.2 million of non-agency mortgage- and other asset-backed securities, respectively, as a result of its secondary trading and market-making activities, and underwriting, placement and activities. Jefferies Group's maximum exposure to loss on these securities is limited to the carrying value of its investments in these securities. These mortgage- and other asset-backed securitization vehicles discussed are not included in the above table containing information about Jefferies Group's variable interests in nonconsolidated VIEs. We also have a variable interest in a nonconsolidated VIE consisting of our equity interest in an associated company, Golden Queen. In addition, we have a variable interest in a nonconsolidated VIE consisting of our senior secured term loan receivable and equity interest in FXCM. See Notes 5 and 11 for further discussion. |
Loans to and Investments in Ass
Loans to and Investments in Associated Companies | 11 Months Ended |
Nov. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Loans to and Investments in Associated Companies | Loans to and Investments in Associated Companies A summary of Loans to and investments in associated companies for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 accounted for under the equity method of accounting is as follows (in thousands): 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 $ — $ 59,138 $ 13,955 $ — $ 728,560 National Beef (2) — 110,049 — (48,656 ) 592,237 653,630 Berkadia (3) 210,594 80,092 20,001 (65,197 ) (262 ) 245,228 FXCM (4) 158,856 (83,174 ) — — (651 ) 75,031 Garcadia Companies (5) 179,143 21,646 — (26,962 ) (173,827 ) — Linkem 192,136 (20,534 ) — 542 (6,987 ) 165,157 HomeFed 341,874 (4,332 ) — — — 337,542 Golden Queen (6) 105,005 (51,990 ) — 10,941 — 63,956 54 Madison (7) 123,010 11,288 — (47,224 ) — 87,074 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 $ — $ 90,204 $ 74,799 $ — $ 655,467 Jefferies LoanCore (8) 154,731 — 22,368 (3,994 ) (173,105 ) — Berkadia 184,443 93,801 — (67,384 ) (266 ) 210,594 FXCM (4) 336,258 (177,644 ) — — 242 158,856 Garcadia Companies 185,815 48,198 — (54,870 ) — 179,143 Linkem 154,000 (32,561 ) — 31,996 38,701 192,136 HomeFed 302,231 7,725 — 31,918 — 341,874 Golden Queen (6) 111,302 (7,733 ) — 1,436 — 105,005 54 Madison (7) (9) 161,400 (6,224 ) — 35,204 (67,370 ) 123,010 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 Loans to and investments in associated companies as of December 31, 2015 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, 2016 Jefferies Finance $ 528,575 $ — $ (1,761 ) $ (36,350 ) $ — $ 490,464 Jefferies LoanCore 288,741 — 21,221 (155,231 ) — 154,731 Berkadia 190,986 94,201 — (100,766 ) 22 184,443 FXCM (4) — 1,919 — — 334,339 336,258 Garcadia Companies 172,660 52,266 — (39,111 ) — 185,815 Linkem 150,149 (22,867 ) — 33,303 (6,585 ) 154,000 HomeFed 275,378 23,893 — 2,960 — 302,231 Golden Queen (6) 114,323 (3,021 ) — — — 111,302 54 Madison (9) — 4,255 — 153,503 3,642 161,400 Other 36,557 3,952 (2,276 ) 9,622 (3,401 ) 44,454 Total $ 1,757,369 $ 154,598 $ 17,184 $ (132,070 ) $ 328,017 $ 2,125,098 (1) Primarily classified in Investment banking revenues and Other revenues. (2) As discussed more fully in Notes 1 and 28, in June 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our 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 account 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. (3) In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. (4) As further described in Note 5, in 2016, we amended the terms of our loan and associated rights with FXCM. Through the amendments, we converted our participation rights for a 50% voting interest in FXCM. 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 our Consolidated Statements of Financial Condition. (5) 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. (6) At November 30, 2018 and December 31, 2017 and 2016 , the balance reflects $15.1 million , $30.5 million and $32.8 million , respectively, related to a noncontrolling interest. (7) 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. (8) On October 31, 2017, Jefferies Group sold all of its membership interests in Jefferies LoanCore for approximately $173.1 million . (9) At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests. Jefferies Finance Through Jefferies Group, we own 50% of Jefferies Finance, our joint venture with Massachusetts Mutual Life Insurance Company ("MassMutual"). Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt to middle market and growth companies in the form of term and revolving loans. Loans are originated primarily through the investment banking efforts of Jefferies Group. Jefferies Finance may also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market and acts as an investment adviser for various loan funds. At November 30, 2018 , Jefferies Group and MassMutual each had equity commitments to Jefferies Finance of $750.0 million . At November 30, 2018 , approximately $694.8 million of Jefferies Group's commitment was funded. The investment commitment is scheduled to expire on March 1, 2019 with automatic one year extensions absent a 60 -day termination notice by either party. Jefferies Finance has executed a Secured Revolving Credit Facility with Jefferies Group and MassMutual, to be funded equally, to support loan underwritings by Jefferies Finance, which bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. The total Secured Revolving Credit Facility is a committed amount of $500.0 million at November 30, 2018 and December 31, 2017 . Advances are shared equally between Jefferies Group and MassMutual. The facility is scheduled to mature on March 1, 2019 with automatic one year extensions absent a 60 -day termination notice by either party. At November 30, 2018 and December 31, 2017 , none of Jefferies Group's $250.0 million commitment was funded. Jefferies Group recognized interest income and unfunded commitment fees related to the facility of $2.4 million , $3.9 million and $1.3 million during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Jefferies Group engages in debt capital markets transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, Jefferies Group earned fees of $377.7 million , $327.9 million and $112.6 million during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively, which are recognized in Investment banking revenues in the Consolidated Statements of Operations. In addition, Jefferies Group paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance of $56.6 million , $2.4 million and $0.5 million during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively, which are recognized within Selling, general and other expenses in the Consolidated Statements of Operations. During the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016, Jefferies Group acted as a placement agent for CLOs managed by Jefferies Finance, for which Jefferies Group recognized fees of $3.7 million , $6.1 million and $2.6 million , respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations. At November 30, 2018 and December 31, 2017 , Jefferies Group held securities issued by CLOs managed by Jefferies Finance, which are included in Trading assets. Additionally, Jefferies Group has entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO. Gains (losses) related to the derivative contracts were not material. Under a service agreement, Jefferies Group charged Jefferies Finance $61.7 million , $50.7 million and $46.1 million for services provided during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016, respectively. At November 30, 2018 , Jefferies Group had a receivable from Jefferies Finance, included within Other assets in the Consolidated Statement of Financial Condition of $35.2 million and a payable to Jefferies Finance, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition of $14.1 million . At December 31, 2017 , Jefferies Group had a receivable from Jefferies Finance, included within Other assets in the Consolidated Statement of Financial Condition of $34.6 million and a payable to Jefferies Finance, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition of $14.1 million . Jefferies Group enters into OTC foreign exchange contracts with Jefferies Finance. In connection with these contracts Jefferies Group had $0.2 million recorded in Payables, expense accruals and other liabilities and $0.4 million recorded in Trading liabilities in our Consolidated Statement of Financial Condition at November 30, 2018 and $1.5 million included in Trading assets in our Consolidated Statement of Financial Condition at December 31, 2017 . Jefferies LoanCore Jefferies LoanCore, LLC ("Jefferies LoanCore"), a commercial real estate finance company and was a joint venture with the Government of Singapore Investment Corporation, the Canada Pension Plan Investment Board and LoanCore, LLC, originates and purchases commercial real estate loans throughout the U.S. and Europe. On October 31, 2017, Jefferies Group sold all of its membership interests (which constituted a 48.5% voting interest) in Jefferies LoanCore for approximately $173.1 million , the estimated book value as of October 31, 2017. In addition, Jefferies Group may be entitled to additional cash consideration over the next four years in the event Jefferies LoanCore's yearly return on equity exceeds certain thresholds. Jefferies LoanCore had entered into master repurchase agreements with Jefferies Group. During the twelve months ended December 31, 2017 and 2016, Jefferies Group recognized interest income and fees related to these agreements of $0.6 million and $8.4 million , respectively. National Beef National Beef processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather for domestic and international markets. As discussed in Notes 1 and 28, on June 5, 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our 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 account for our remaining interest under the equity method of accounting. As required as a result of the deconsolidation of National Beef, we adjusted the carrying value of our retained 31% interest in National Beef to fair value. The fair value of our retained 31% interest in National Beef of $592.3 million was based on the implied equity value of 100% of National Beef from the transaction with Marfrig. The transaction with Marfrig was based on a $1.9 billion equity valuation and a $2.3 billion enterprise valuation for 100% of National Beef. The fair value was allocated to the tangible and intangible assets of National Beef and a number of assets including customer relationships, tradenames, cattle supply contracts and property, plant and equipment had fair values higher than book values. As we recognize our share of National Beef's income going forward, the difference between the estimated fair value and the underlying book value of National Beef's customer relationships, tradenames, cattle supply contracts and property, plant and equipment will be amortized over their respective useful lives (weighted average life of 15 years ). Berkadia Berkadia is a commercial mortgage banking and servicing joint venture formed in 2009 with Berkshire Hathaway Inc. We and Berkshire Hathaway each contributed $217.2 million of equity capital to the joint venture and each have a 50% membership interest in Berkadia. We are entitled to receive 45% of the profits. Berkadia originates commercial/multifamily real estate loans that are sold to U.S. government agencies, and originates and brokers commercial/multifamily mortgage loans which are not part of government agency programs. Berkadia is an investment sales adviser focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. Berkadia uses all of the proceeds from the commercial paper sales of an affiliate of Berkadia to fund new mortgage loans, servicer advances, investments and other working capital requirements. Repayment of the commercial paper is supported by a $1.5 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. As of November 30, 2018 , the aggregate amount of commercial paper outstanding was $1.47 billion . FXCM As discussed more fully in Note 5, at November 30, 2018 , Jefferies has a 50% voting interest in FXCM and a senior secured term loan to FXCM due in the first quarter of 2019. On September 1, 2016, we gained the ability to significantly influence FXCM through our seats on the board of directors. As a result, we classify our equity investment in FXCM in our Consolidated Statements of Financial Condition as Loans to and investments in associated companies. Our term loan remains classified within Trading assets, at fair value. We account for our equity interest in FXCM on a one month lag. We are amortizing our basis difference between the estimated fair value and the underlying book value of FXCM customer relationships, technology, trade name, leases and long-term debt over their respective useful lives. During February 2017, Global Brokerage Holdings and FXCM's U.S. subsidiary, Forex Capital Markets LLC ("FXCM U.S.") settled complaints filed by the National Futures Association and the Commodity Futures Trading Commission ("CFTC") against FXCM U.S. and certain of its principals relating to matters that occurred between 2010 and 2014. As part of the settlements, FXCM U.S. withdrew from business and sold FXCM U.S.'s customer accounts. Based on the above actions, we evaluated in the first quarter of 2017 whether our equity method investment was fully recoverable. We engaged an independent valuation firm to assist management in estimating the fair value of FXCM. Our estimate of fair value was based on a discounted cash flow and comparable public company analysis. The result of our analysis indicated that the estimated fair value of our equity interest in FXCM was lower than our carrying value by $130.2 million . We concluded based on the regulatory actions, FXCM's restructuring plan, investor perception and declines in the trading price of Global Brokerage's common shares and convertible debt, that the decline in fair value of our equity interest was other than temporary. As such, we impaired our equity investment in FXCM in the first quarter of 2017 by $130.2 million , which was recorded in Income (loss) related to associated companies. During the fourth quarter of 2018, we recorded an additional impairment charge of $62.1 million related to the equity component of our investment in FXCM, which is based on updated expectations that have been impacted by the recently revised regulations of the European Securities Market Authority and dampened operating results. Based on the updated projections, we evaluated in the fourth quarter of 2018 whether our equity method investment was fully recoverable. We engaged an independent valuation firm to assist management in estimating the fair value of FXCM. Our estimate of fair value was based on a discounted cash flow analysis. The result of our analysis indicated that the estimated fair value of our equity interest in FXCM was lower than our carrying value by $62.1 million . We concluded that based on the decline in projections and the adverse effects of the European regulations, that the decline in fair value of our equity interest was other than temporary. As a result, we impaired our equity investment in FXCM in the fourth quarter of 2018 by $62.1 million , which was recorded in Income (loss) related to associated companies. FXCM is considered a VIE and our term loan and equity interest are variable interests. We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM's performance. Therefore, we do not consolidate FXCM. Garcadia Garcadia was a joint venture between us and Garff Enterprises, Inc. ("Garff") that owned and operated 28 automobile dealerships comprised of domestic and foreign automobile makers. The Garcadia joint venture agreement specified that we and Garff had equal board representation and equal votes on all matters affecting Garcadia, and that all operating cash flows from Garcadia would be allocated 65% to us and 35% to Garff, with the exception of one dealership from which we received 83% of all operating cash flows and four other dealerships from which we received 71% of all operating cash flows. Garcadia's strategy was to acquire automobile dealerships in primary or secondary market locations meeting its specified return criteria. In 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, for $417.2 million in cash. The pre-tax gain recognized as a result of this transaction, $221.7 million for the eleven months ended November 30, 2018 , is classified as Other revenue. Linkem We own approximately 42% of the common shares of Linkem, a fast-growing fixed wireless broadband services provider in Italy. In addition, we own convertible preferred stock, which is automatically convertible to common shares in 2022. If all of our convertible preferred stock was converted, it would increase our ownership to approximately 54% of Linkem's common equity at November 30, 2018 . We have approximately 48% of the total voting securities of Linkem. We account for our equity interest in Linkem on a two month lag. HomeFed At November 30, 2018 , we own 10,852,123 shares of HomeFed's common stock, representing approximately 70% of HomeFed's outstanding common shares; however, we have contractually agreed to limit our voting rights such that we will not be able to vote more than 45% of HomeFed's total voting securities voting on any matter, assuming all HomeFed shares not owned by us are voted. HomeFed develops and owns residential and mixed-use real estate properties. We account for our equity interest in HomeFed on a two month lag. HomeFed is a public company traded on the NASD OTC Bulletin Board (Symbol: HOFD). As a result of a 1998 distribution to all of our shareholders, approximately 5% of HomeFed is beneficially owned by our Chairman at November 30, 2018 . Three of our executives serve on the board of directors of HomeFed, including our Chairman who serves as HomeFed's Chairman, and our President. Since we do not control HomeFed, our investment in HomeFed is accounted for under the equity method as an investment in an associated company. Golden Queen Mining Company Since 2014, we invested $93.0 million , net in cash in a limited liability company (Gauss LLC) to partner with the Clay family and Golden Queen Mining Co. Ltd., to jointly fund, develop and operate the Soledad Mountain gold and silver mine project. Previously 100% owned by Golden Queen Mining Co. Ltd., the project is a fully-permitted, open pit, heap leach gold and silver project located in Kern County, California, which commenced gold and silver production in March 2016. In exchange for a noncontrolling ownership interest in Gauss LLC, the Clay family contributed $34.5 million , net in cash. Gauss LLC invested both our and the Clay family's net contributions totaling $127.5 million to the joint venture, Golden Queen, in exchange for a 50% ownership interest. Golden Queen Mining Co. Ltd. contributed the Soledad Mountain project to the joint venture in exchange for the other 50% interest. We account for our interest in Golden Queen on a two month lag. As a result of our consolidating Gauss LLC, our Loans to and investments in associated companies reflects Gauss LLC's net investment of $127.5 million in the joint venture, which includes both the amount we contributed and the amount contributed by the Clay family. The joint venture, Golden Queen, is considered a VIE and we have determined that we are not the primary beneficiary of the joint venture and are therefore not consolidating its results. Our maximum exposure to loss as a result of our involvement with the joint venture is limited to our investment. In the third quarter of 2018, Golden Queen completed an updated mine plan and financial projections reflecting lower grades of gold as well as a decrease in the market price of gold. As a result of lower projected cash flows, we engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in Golden Queen. Our estimate of fair value was based on a discounted cash flow analysis. The result of our analysis indicated that the estimated fair value of our equity interest in Golden Queen was lower than our prior carrying value by $47.9 million . We concluded based on lower projected cash flows and a decline in the market price of gold that the decline in fair value of our equity interest was other than temporary. As such, an impairment charge of $47.9 million was recorded in Income (loss) related to associated companies in the eleven months ended November 30, 2018 . 54 Madison We own approximately 48.1% of 54 Madison, a fund that seeks long-term capital appreciation through investment in real estate development and similar projects. Prior to November 30, 2017, we consolidated 54 Madison as a result of our control of the 54 Madison investment committee. 54 Madison invests both in projects which they consolidate and projects where they have significant influence and utilize the equity method of accounting. Based on total committed capital of the 54 Madison fund, all projects of this fund have already been identified and launched. 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 54 Madison investment committee and continue to have significant influence over the fund, including a number of protective rights such as the right to block material investments, divestitures and changes outside of agreed upon parameters. We therefore deconsolidated the 54 Madison fund on November 30, 2017 and account for our interest under the equity method of accounting. We account for our equity interest in 54 Madison on a two month lag. Other The following table provides summarized data for associated companies as of November 30, 2018 and December 31, 2017 and for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands): November 30, 2018 December 31, 2017 Assets $ 17,050,564 $ 16,340,643 Liabilities 11,752,273 11,920,465 Noncontrolling interest 154,963 169,274 Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Revenues $ 7,694,612 $ 4,883,063 $ 4,275,016 Income from continuing operations before extraordinary items 852,649 503,489 422,167 Net income 798,615 438,881 430,291 The Company's income related to associated companies 130,685 34,494 171,782 Except for our investment in Berkadia and Jefferies Finance, we have not provided any guarantees, nor are we contingently liable for any of the liabilities reflected in the above table. All such liabilities are non-recourse to us. Our exposure to adverse events at the investee companies is limited to the book value of our investment. See Note 24 for further discussion of these guarantees. Included in consolidated retained earnings at November 30, 2018 is approximately $252.9 million of undistributed earnings of the associated companies accounted for under the equity method of accounting. |
Financial Statement Offsetting
Financial Statement Offsetting | 11 Months Ended |
Nov. 30, 2018 | |
Offsetting [Abstract] | |
Financial Statement Offsetting | Financial Statement Offsetting In connection with Jefferies Group's derivative activities and securities financing activities, Jefferies Group may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to: derivative transactions – ISDA master netting agreements; master securities lending agreements (securities lending transactions); and master repurchase agreements (repurchase transactions). See Note 2 for additional information on financial statement offsetting. The following table provides information regarding derivative contracts, repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position. Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) (In thousands) Assets at November 30, 2018 Derivative contracts $ 2,580,706 $ (2,413,931 ) $ 166,775 $ — $ — $ 166,775 Securities borrowing arrangements 6,538,212 — 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 Derivative contracts $ 3,640,703 $ (2,513,050 ) $ 1,127,653 $ — $ — $ 1,127,653 Securities lending arrangements 1,838,688 — 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 Assets at December 31, 2017 Derivative contracts $ 3,497,969 $ (3,318,481 ) $ 179,488 $ — $ — $ 179,488 Securities borrowing arrangements 7,721,803 — 7,721,803 (966,712 ) (1,032,629 ) 5,722,462 Reverse repurchase agreements 14,858,297 (11,168,738 ) 3,689,559 (463,973 ) (3,207,147 ) 18,439 Liabilities at December 31, 2017 Derivative contracts $ 3,745,908 $ (3,490,514 ) $ 255,394 $ — $ — $ 255,394 Securities lending arrangements 2,843,911 — 2,843,911 (966,712 ) (1,795,408 ) 81,791 Repurchase agreements 19,829,249 (11,168,738 ) 8,660,511 (463,973 ) (7,067,512 ) 1,129,026 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty's 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's default, but which are not netted in the balance sheet because other netting provisions of GAAP are not met. Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received. (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's rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At November 30, 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. At December 31, 2017 , amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 11 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | Intangible Assets, Net and Goodwill A summary of intangible assets, net and goodwill is as follows (in thousands): November 30, 2018 December 31, 2017 Indefinite lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,524 $ 8,551 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $102,579 and $230,074 67,894 347,767 Trademarks and tradename, net of accumulated amortization of $21,086 and $95,627 107,262 293,851 Supply contracts, net of accumulated amortization of $0 and $57,440 — 86,160 Other, net of accumulated amortization of $4,339 and $3,885 4,611 4,701 Total intangible assets, net 188,291 741,030 Goodwill: National Beef — 14,991 Jefferies Group 1,698,381 1,703,300 Other operations 3,459 3,859 Total goodwill 1,701,840 1,722,150 Total intangible assets, net and goodwill $ 1,890,131 $ 2,463,180 As further discussed in Notes 1 and 28, on June 5, 2018, we sold 48% of National Beef to Marfrig. Upon closing of the transaction with Marfrig, we deconsolidated our investment in National Beef, including its Intangible assets, net and goodwill. Intangible assets, net and goodwill at December 31, 2017 included $539.6 million of intangibles and $15.0 million of goodwill related to National Beef. Amortization expense on intangible assets included in Income (loss) from continuing operations was $13.2 million , $12.9 million and $18.2 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): 2019 $ 13,439 2020 13,439 2021 13,085 2022 10,110 2023 8,981 Goodwill Impairment Testing The quantitative goodwill impairment test is performed at our reporting unit level and consists of two steps. In the first step, the fair value of the reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit's goodwill to the carrying value of the reporting unit's goodwill. The estimated fair values are based on valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating fair value include price-to-earnings and price-to-book multiples of comparable public companies, multiples of mergers and acquisitions of similar businesses, projected cash flows and/or market capitalization. In addition, as the fair values determined under the market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of our reporting units on a controlling basis. An independent valuation specialist was engaged to assist with the valuation process for Jefferies Group at August 1, 2018. The results of our annual impairment test for Jefferies Group did not indicate any goodwill impairment. |
Short-Term Borrowings
Short-Term Borrowings | 11 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Jefferies Group's short-term borrowings, which mature in one year or less, are as follows (in thousands): November 30, 2018 December 31, 2017 Bank loans (1) $ 330,942 $ 304,651 Floating rate puttable notes 56,550 108,240 Equity-linked notes — 23,324 Total short-term borrowings $ 387,492 $ 436,215 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York Mellon and Jefferies Group. At November 30, 2018 and December 31, 2017 , the weighted average interest rate on short-term borrowings outstanding was 3.08% and 2.51% per annum, respectively. During the eleven months ended November 30, 2018 , Jefferies Group's floating rate puttable notes with principal amounts of €41.0 million and Jefferies Group's equity-linked notes with a principal amount of $23.3 million matured. See Note 5 for further information. The Bank of New York Mellon has agreed to make revolving intraday credit advances ("Intraday Credit Facility") for an aggregate committed amount of $150.0 million . The Intraday Credit Facility contains financial covenants, which include a minimum regulatory net capital requirement for Jefferies Group. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. At November 30, 2018, Jefferies Group was in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 11 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The principal amount (net of unamortized discounts, premiums and debt issuance costs), stated interest rate and maturity date of outstanding debt are as follows (dollars in thousands): November 30, 2018 December 31, 2017 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 743,397 $ 742,348 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,719 246,673 Total long-term debt – Parent Company 990,116 989,021 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 5.125% Senior Notes, due April 13, 2018, $0 and $678,300 principal — 682,338 8.5% Senior Notes, due July 15, 2019, $680,800 principal 699,659 728,872 2.375% Euro Medium Term Notes, due May 20, 2020, $565,500 and $594,725 principal 564,702 593,334 6.875% Senior Notes, due April 15, 2021, $750,000 principal 791,814 808,157 2.25% Euro Medium Term Notes, due July 13, 2022, $4,524 and $4,758 principal 4,243 4,389 5.125% Senior Notes, due January 20, 2023, $600,000 principal 612,928 615,703 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 709,484 736,357 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 373,669 375,794 3.875% Convertible Senior Debentures, due November 1, 2029, $0 and $324,779 principal — 324,779 4.15% Senior Notes, due January 23, 2030, $1,000,000 and $0 principal 987,788 — 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,662 512,040 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,625 420,990 Structured Notes (2) (3) 686,170 614,091 Jefferies Group Revolving Credit Facility 183,539 — National Beef Reducing Revolver Loan — 120,000 National Beef Revolving Credit Facility — 76,809 Foursight Capital Credit Facilities — 170,455 Other 81,164 112,654 Total long-term debt – subsidiaries 6,627,447 6,896,762 Long-term debt $ 7,617,563 $ 7,885,783 (1) Amounts include gains of $27.4 million and $8.1 million during the eleven months ended November 30, 2018 and twelve months ended December 31, 2017 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Notes 2 and 5 for further information. (2) Includes $686.2 million and $607.0 million at fair value at November 30, 2018 and December 31, 2017 , respectively. 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 and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. (3) Of the $686.2 million of structured notes at November 30, 2018 , $5.7 million matures in 2019, $27.3 million matures in 2022 and the remaining $653.2 million matures in 2024 or thereafter. At November 30, 2018 , $840.1 million of consolidated assets (primarily other assets) are pledged for indebtedness aggregating $261.3 million . The aggregate annual mandatory redemptions of all long-term debt during the five year period ending November 30, 2023 are as follows (in millions): 2019 $ 690.2 2020 565.5 2021 935.0 2022 32.5 2023 1,429.0 Parent Company Debt Our senior note indentures contain covenants that restrict our ability to incur more Indebtedness or issue Preferred Stock of Subsidiaries unless, at the time of such incurrence or issuance, the Company meets a specified ratio of Consolidated Debt to Consolidated Tangible Net Worth, limit the ability of the Company and Material Subsidiaries to incur, in certain circumstances, Liens, limit the ability of Material Subsidiaries to incur Funded Debt in certain circumstances, and contain other terms and restrictions all as defined in the senior note indentures. We have the ability to incur substantial additional indebtedness or make distributions to our shareholders and still remain in compliance with these restrictions. If we are unable to meet the specified ratio, we would not be able to issue additional Indebtedness or Preferred Stock, but our inability to meet the applicable ratio would not result in a default under our senior note indentures. The senior note indentures do not restrict the payment of dividends. Subsidiary Debt In November 2017, all of Jefferies Group's 3.875% Convertible Senior Debentures due 2029 were called for redemption, with a redemption date of January 5, 2018, at a redemption price equal to 100% of the principal amount of the convertible debentures redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. All of these remaining convertible debentures were redeemed in January 2018. In addition, Jefferies Group's 5.125% Senior Notes with a principal of $668.3 million were redeemed in April 2018. In January 2018, Jefferies Group issued 4.15% Senior Notes with a principal amount of $1.0 billion , due 2030. Additionally, structured notes with a total principal amount of approximately $193.4 million , net of retirements were issued during the eleven months ended November 30, 2018 . During 2018, Jefferies Group entered into a senior secured revolving credit facility ("Jefferies Group Revolving Credit Facility") with a group of commercial banks for an aggregate principal amount of $185.0 million . Jefferies Group Revolving Credit Facility contains certain financial covenants, including, but not limited to, restrictions on future indebtedness of certain of its subsidiaries and its' minimum tangible net worth, liquidity requirements and minimum capital requirements. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate ("LIBOR"), as defined in Jefferies Group Revolving Credit Facility agreement. The obligations of certain of Jefferies Group's subsidiaries under Jefferies Group Revolving Credit Facility are secured by substantially all its assets. At November 30, 2018 , Jefferies Group was in compliance with debt covenants under the Jefferies Group Revolving Credit Facility. As further discussed in Notes 1 and 28, on June 5, 2018, we sold 48% of National Beef to Marfrig. Upon closing of the transaction with Marfrig, we deconsolidated our investment in National Beef, including its long-term debt. Long-term debt at December 31, 2017 included $199.2 million related to National Beef. At November 30, 2018 , Foursight Capital's credit facilities consisted of two warehouse credit commitments aggregating $225.0 million , which mature in March 2020 and July 2020. The March 2020 credit facility bears interest based on the three-month LIBOR plus a credit spread fixed through its maturity and the July 2020 credit facility bears interest based on the one-month LIBOR plus a credit spread fixed through its maturity. As a condition of the March 2020 credit facility, Foursight Capital is obligated to maintain cash reserves in an amount equal to the quoted price of an interest rate cap sufficient to meet the hedging requirements of the credit commitment. The credit facilities are secured by first priority liens on auto loan receivables owed to Foursight Capital. |
Mezzanine Equity
Mezzanine Equity | 11 Months Ended |
Nov. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Redeemable Noncontrolling Interests At December 31, 2017, the redeemable noncontrolling interests primarily relate to National Beef and were held by its minority owners, USPB, NBPCo Holdings and the chief executive officer of National Beef. The holders of these interests shared in the profits and losses of National Beef on a pro rata basis with us. As discussed in Notes 1 and 28, we deconsolidated National Beef as a result of the 48% sale to Marfrig on June 5, 2018. Immediately prior to the deconsolidation, the cumulative increase in fair value of $237.7 million recorded to the redeemable noncontrolling interest since the initial acquisition of National Beef was reversed through Additional paid-in capital in the Consolidated Statement of Financial Condition. Redeemable noncontrolling interests in National Beef are reflected in the Consolidated Statements of Financial Condition at fair value. The following table shows the activity within redeemable noncontrolling interests related to National Beef (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Balance, beginning of year $ 412,128 $ 321,962 Income allocated to redeemable noncontrolling interests 37,141 85,277 Distributions to redeemable noncontrolling interests (70,681 ) (90,048 ) Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital 21,404 94,937 Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation (237,669 ) — Deconsolidation of National Beef (162,323 ) — Balance, end of year $ — $ 412,128 At November 30, 2018 and December 31, 2017 , redeemable noncontrolling interests also includes other redeemable noncontrolling interests of $19.8 million and $14.5 million , respectively, primarily related to our oil and gas exploration and development businesses. We estimated the fair value of Vitesse Energy Finance based on a discounted cash flow analysis, market comparable method and market transaction method. Mandatorily Redeemable Convertible Preferred Shares In connection with our acquisition of Jefferies Group in March 2013, we issued a new series of 3.25% Cumulative Convertible Preferred Shares ("Preferred Shares") ( $125.0 million at mandatory redemption value) in exchange for Jefferies Group's outstanding 3.25% Series A-1 Cumulative Convertible Preferred Stock. The Preferred Shares have a 3.25% annual, cumulative cash dividend and are currently convertible into 4,162,200 common shares, an effective conversion price of $30.03 per share. The holders of the Preferred Shares are also entitled to an additional quarterly payment in the event we declare and pay a dividend on our common stock in an amount greater than $0.0625 per common share per quarter. The additional quarterly payment would be paid to the holders of Preferred Shares on an as converted basis and on a per share basis would equal the quarterly dividend declared and paid to a holder of a share of common stock in excess of $0.0625 per share. In the third quarter of 2017, we increased our quarterly dividend from $0.0625 to $0.10 per common share. In the third quarter of 2018, we increased our quarterly dividend from $0.10 to $0.125 per common share. These increased the preferred stock dividend from $4.4 million for the twelve months ended December 31, 2017 to $4.5 million for the eleven months ended November 30, 2018 . The Preferred Shares are callable beginning in 2023 at a price of $1,000 per share plus accrued interest and are mandatorily redeemable in 2038. |
Compensation Plans
Compensation Plans | 11 Months Ended |
Nov. 30, 2018 | |
Share-based Compensation [Abstract] | |
Compensation Plans | Compensation Plans Incentive Plan Upon completion of our combination with Jefferies Group, we assumed its 2003 Incentive Compensation Plan, as Amended and Restated July 25, 2013 (the "Incentive Plan"). The Incentive Plan allows awards in the form of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code), nonqualified stock options, stock appreciation rights, restricted stock, unrestricted stock, performance awards, RSUs, dividend equivalents or other share-based awards. RSUs give a participant the right to receive fully vested shares at the end of a specified deferral period allowing a participant to hold an interest tied to common stock on a tax deferred basis. Prior to settlement, RSUs carry no voting or dividend rights associated with the stock ownership, but dividend equivalents are accrued to the extent there are dividends declared on the underlying common shares as cash amounts or as deemed reinvestments in additional RSUs. Restricted stock and RSUs may be granted to new employees as "sign-on" awards, to existing employees as "retention" awards and to certain executive officers as awards for multiple years. Sign-on and retention awards are generally subject to annual ratable vesting over a four -year service period and are amortized as compensation expense on a straight-line basis over the related four years. Restricted stock and RSUs are granted to certain senior executives with market, performance and service conditions. Market conditions are incorporated into the grant-date fair value of senior executive awards using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The Deferred Compensation Plan (the "DCP") has been implemented under the Incentive Plan. The DCP permits eligible executive officers and other employees to defer cash compensation, some or all of which may be deemed invested in stock units. A portion of the deferrals may also be directed to notional investments in a money market fund or certain of the employee investment opportunities. Stock units generally have been acquired at a discounted price, which encourages employee participation in the DCP and enhances long-term retention of equity interests by participants and aligns executive interests with those of shareholders. Amounts recognized as compensation cost under the DCP have not been significant. The shares to be delivered in connection with DCP stock units and options are drawn from the Incentive Plan. The Incentive Plan's "evergreen" share reservation was terminated on March 21, 2014; the number of equity awards available under the Incentive Plan was set at 20,000,000 . At November 30, 2018 , 6,786,404 common shares remained available for new grants under the Incentive Plan. Shares issued pursuant to the DCP reduce the shares available under the Incentive Plan. The following table details the activity in restricted stock during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts): Restricted Stock Weighted- Average Grant Date Fair Value Balance at January 1, 2016 2,004 $ 24.56 Grants 356 $ 18.23 Forfeited (24 ) $ 26.90 Fulfillment of service requirement (974 ) $ 25.65 Balance at December 31, 2016 1,362 $ 22.09 Grants 391 $ 23.65 Forfeited — $ — Fulfillment of service requirement (611 ) $ 23.73 Balance at December 31, 2017 1,142 $ 21.75 Grants 1,077 $ 23.63 Forfeited (30 ) $ 16.49 Fulfillment of service requirement (394 ) $ 24.23 Balance at November 30, 2018 1,795 $ 22.42 The following table details the activity in RSUs during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts): Weighted-Average Grant Date Fair Value Future Service Required No Future Service Required Future Service Required No Future Service Required Balance at January 1, 2016 3,388 8,583 $ 26.90 $ 26.68 Grants — 128 $ — $ 14.21 Distributions of underlying shares — (1,683 ) $ — $ 26.59 Forfeited — — $ — $ — Fulfillment of service requirement (3,320 ) 3,320 $ 26.90 $ 26.90 Balance at December 31, 2016 68 10,348 $ 26.90 $ 26.61 Grants — 104 $ — $ 21.55 Distributions of underlying shares — (175 ) $ — $ 26.46 Forfeited — — $ — $ — Fulfillment of service requirement (36 ) 36 $ 26.90 $ 26.90 Balance at December 31, 2017 32 10,313 $ 26.90 $ 26.57 Grants — 161 $ — $ 20.24 Distributions of underlying shares — (192 ) $ — $ 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 During the eleven months ended November 30, 2018 and twelve months ended December 31, 2017 , grants include approximately 142,000 and 89,000 , respectively, of dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $19.81 and $21.03 , respectively. Senior Executive Compensation Plan In February 2016, the Compensation Committee of our Board of Directors approved an executive compensation plan for our CEO and our President (together, our "Senior Executives") in respect of 2016 (the "2016 Plan") that is based on performance metrics achieved over a three -year period from 2016 through 2018. The Compensation Committee eliminated cash incentive bonuses for 2016 and 100% of each of our CEO and President's compensation beyond their base salaries is composed entirely of performance based RSUs that vest at the end of 2018 if certain performance criteria are met. Any vested RSUs will be subject to a post-vesting, three -year holding period such that no vested RSUs can be sold or transferred until the first quarter of 2022. Performance-vesting of the award is based equally on the compound annual growth rates of Jefferies Total Shareholder Return ("TSR"), which is measured from the December 31, 2015 stock price of $17.39 , and Jefferies Return on Tangible Deployable Equity ("ROTDE"), the annual, two- and three-year results of which is used to determine vesting. TSR is based on annualized rate of return reflecting price appreciation plus reinvestment of dividends and distributions to shareholders. ROTDE is net income adjusted for amortization of intangible assets divided by tangible book value at the beginning of year adjusted for intangible assets and deferred tax assets. In January 2017, the Compensation Committee of our Board of Directors approved an executive compensation plan for our Senior Executives in respect of 2017 (the "2017 Plan") that is based on performance metrics achieved over a three -year period from 2017 through 2019. This executive compensation plan is identical to the 2016 Plan, described above, where cash incentive bonuses were eliminated. 100% of each of our CEO and President's compensation beyond their base salaries is composed entirely of performance based RSUs that will vest at the end of 2019 if certain performance criteria are met. Any vested RSUs are subject to a post-vesting, three -year holding period such that no vested RSUs can be sold or transferred until the first quarter of 2023. Performance-vesting of the award is based equally on the compound annual growth rates of Jefferies TSR, which is measured from the December 30, 2016 stock price of $23.25 , and Jefferies ROTDE, the annual, two- and three-year results of which are used to determine vesting. If Jefferies TSR and ROTDE annual compound growth rates are less than 4% , our Senior Executives will not receive any incentive compensation. If Jefferies TSR and ROTDE grow between 4% and 8% on a compounded basis over the three -year measurement period, each of our Senior Executives will be eligible to receive between 846,882 and 1,693,766 RSUs related to the 2016 Plan and 537,634 and 1,075,268 RSUs related to the 2017 Plan. If TSR and ROTDE growth rates are greater than 8% , our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates. When determining whether RSUs will vest, the calculation will be weighted equally between TSR and ROTDE. If TSR growth was below minimum thresholds, but ROTDE growth was above minimum thresholds, our Senior Executives would still be eligible to receive some number of vested RSUs based on ROTDE growth. The TSR award contains a market condition and compensation expense is recognized over the service period and will not be reversed if the market condition is not met. The ROTDE award contains a performance condition and compensation expense is recognized over the service period if it is determined that it is probable that the performance condition will be achieved. The Compensation Committee of the Jefferies Board of Directors approved an executive compensation plan effective January 1, 2018 that extends Jefferies prior compensation plans for our Senior Executives for compensation years 2018, 2019 and 2020 (the "2018 Plan"). For each Senior Executive, the Compensation Committee has targeted long-term compensation of $25.0 million per year under the 2018 Plan with a target of $16.0 million in long-term equity in the form of RSUs and a target of $9.0 million in long-term cash, subject to performance targets over the three -year measurement period for each compensation year. To receive targeted long-term equity, our Senior Executives will have to achieve 8% growth on an annual and multi-year compounded basis in Jefferies TSR and to receive targeted long-term cash, our Senior Executives will have to achieve 8% growth on an annual and multi-year compounded basis in Jefferies ROTDE. If TSR and ROTDE are less than 5% , our Senior Executives will receive no long-term compensation. If TSR and ROTDE growth rates are greater than 8% , our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates. The following table details the activity in RSUs related to the senior executive compensation plan during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts): Target Number of Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2016 — $ — Grants 3,434 $ 9.68 Forfeited — $ — Balance at December 31, 2016 3,434 $ 9.68 Grants 2,221 $ 19.06 Forfeited — $ — Balance at December 31, 2017 5,655 $ 13.37 Grants 3,813 $ 26.16 Forfeited — $ — Balance at November 30, 2018 9,468 $ 18.52 During the eleven months ended November 30, 2018 and twelve months ended December 31, 2017 , grants include approximately 189,000 and 70,000 , respectively, of dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $19.80 and $21.04 , respectively. Directors' Plan Upon completion of our combination with Jefferies Group, we also assumed the 1999 Directors' Stock Compensation Plan, as Amended and Restated July 25, 2013 (the "Directors' Plan"). Under the Directors' Plan, we issued each nonemployee director of Jefferies $150,000 of restricted stock or RSUs during the eleven months ended November 30, 2018 and $120,000 of restricted stock or RSUs during each of the twelve months ended December 31, 2017 and 2016. These grants are made on the date directors are elected or reelected at our annual shareholders' meeting. These shares vest over three years from the date of grant and are expensed over the requisite service period. At November 30, 2018 , 343,364 common shares were issuable upon settlement of outstanding RSUs and 240,022 shares are available for future grants. Other Compensation Plans Other Stock-Based Plans. Historically, Jefferies Group also sponsored an Employee Stock Purchase Plan and an Employee Stock Ownership Plan, both of which were assumed by us in connection with the Jefferies Group acquisition. Amounts related to these plans have not been significant. Prior to the acquisition of Jefferies Group, we had a fixed stock option plan, which provided for the issuance of stock options and stock appreciation rights to non-employee directors and certain employees at not less than the fair market value of the underlying stock at the date of grant. Options granted to employees under this plan were intended to qualify as incentive stock options to the extent permitted under the Internal Revenue Code and became exercisable in five equal annual installments starting one year from date of grant. Options granted to non-employee directors became exercisable in four equal annual installments starting one year from date of grant. No stock appreciation rights have been granted. In March 2014, we ceased issuing options and rights under our option plan. No shares remain available for future grants under this plan. At November 30, 2018 and December 31, 2017 , 195,417 and 331,312 , respectively, of our common shares were reserved for stock options. A summary of activity with respect to our stock options during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 is as follows (in thousands, except per share amounts): Common Shares Subject to Option Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2016 661 $ 24.97 Granted — $ — Exercised — $ — $ — Cancelled (20 ) $ 30.49 Balance at December 31, 2016 641 $ 24.80 Granted — $ — Exercised (20 ) $ 22.75 $ 65 Cancelled (290 ) $ 26.98 Balance at December 31, 2017 331 $ 23.03 Granted — $ — Exercised (109 ) $ 22.87 $ 136 Cancelled (27 ) $ 24.79 Balance at November 30, 2018 195 $ 22.87 0.1 years $ — Exercisable at November 30, 2018 195 $ 22.87 0.1 years $ — Restricted Cash Awards. Jefferies Group provides compensation to new and existing employees in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements. These awards are amortized to compensation expense over the relevant service period, which is generally considered to start at the beginning of the annual compensation year. At November 30, 2018 , the remaining unamortized amount of these awards was $395.0 million and is included within Other assets in the Consolidated Statement of Financial Condition; this cost is expected to be recognized over a weighted average period of 2 years. Stock-Based Compensation Expense Compensation and benefits expense included $48.2 million , $48.4 million and $33.6 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively, for share-based compensation expense relating to grants made under our share-based compensation plans. Total compensation cost includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. The total tax benefit recognized in results of operations related to share-based compensation expenses was $12.2 million , $17.3 million and $12.4 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. As of November 30, 2018 , total unrecognized compensation cost related to nonvested share-based compensation plans was $117.6 million ; this cost is expected to be recognized over a weighted-average period of 2.2 years. The net tax detriment related to share-based compensation plans recognized in additional paid-in capital was $4.2 million during the twelve months ended December 31, 2016 . At November 30, 2018 , there were 1,795,000 shares of restricted stock outstanding with future service required, 9,470,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plans), 10,309,000 RSUs outstanding with no future service required and 878,000 shares issuable under other plans. Excluding shares issuable pursuant to outstanding stock options, the maximum potential increase to common shares outstanding resulting from these outstanding awards is 20,657,000 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 11 Months Ended |
Nov. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Activity in accumulated other comprehensive income is reflected in the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Changes in Equity but not in the Consolidated Statements of Operations. A summary of accumulated other comprehensive income, net of taxes is as follows (in thousands): November 30, 2018 December 31, 2017 December 31, 2016 Net unrealized gains on available for sale securities $ 542,832 $ 572,085 $ 561,497 Net unrealized foreign exchange losses (193,402 ) (101,400 ) (184,829 ) Net unrealized losses on instrument specific credit risk (5,728 ) (34,432 ) (6,494 ) Net unrealized gains (losses) on cash flow hedges 470 (1,138 ) — Net minimum pension liability (55,886 ) (62,391 ) (59,477 ) $ 288,286 $ 372,724 $ 310,697 For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 , significant amounts reclassified out of accumulated other comprehensive income to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statement of Operations Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Net unrealized gains on available for sale securities, net of income tax provision of $37 and $124 $ 109 $ 212 Other income Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(16) and $1,086 20,459 (5,310 ) Other income and other expenses Net unrealized gains on instrument specific credit risk, net of income tax provision of $311 and $0 916 — Principal transactions revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(697) and $(811) (2,044 ) (1,748 ) Selling, general and other expenses, which includes pension expense. See Note 19 for information on this component. Other pension, net of income tax benefit of $0 and $(1,231) (5,305 ) 1,231 Compensation and benefits expense and Income tax provision (benefit) Total reclassifications for the period, net of tax $ 14,135 $ (5,615 ) In connection with the acquisition of Jefferies Bache from Prudential on July 1, 2011, Jefferies Group acquired a defined benefit pension plan located in Germany (the "German Pension Plan") for the benefit of eligible employees of Jefferies Bache in that territory. On December 28, 2017, a Liquidation Insurance Contract was entered into between Jefferies Bache Limited and Generali Lebensversicherung AG ("Generali") to transfer the defined benefit pension obligations and insurance contracts to Generali, for approximately €6.5 million , which was paid in January 2018 and released Jefferies Group from any and all obligations under the German Pension Plan. This transaction was completed in the first quarter of 2018. In connection with the transfer of the German Pension Plan, $5.3 million was reclassified to Compensation and benefits expense in the Consolidated Statements of Operations from Accumulated other comprehensive income during the eleven months ended November 30, 2018 . |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 11 Months Ended |
Nov. 30, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Pension Plans and Postretirement Benefits | Pension Plans and Postretirement Benefits U.S. Pension Plans Pursuant to the agreement to sell one of our former subsidiaries, WilTel Communications Group, LLC, ("WilTel") the responsibility for WilTel's defined benefit pension plan was retained by us. All benefits under this plan were frozen as of October 30, 2005. Prior to the acquisition of Jefferies Group, Jefferies Group sponsored a defined benefit pension plan covering certain employees; benefits under that plan were frozen as of December 31, 2005. A summary of activity with respect to both plans is as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 211,257 $ 205,405 Interest cost 6,783 8,119 Actuarial (gains) losses (16,646 ) 6,644 Settlement payments (3,133 ) — Benefits paid (7,000 ) (8,911 ) Projected benefit obligation, end of year $ 191,261 $ 211,257 Change in plan assets: Fair value of plan assets, beginning of year $ 150,806 $ 127,514 Actual return on plan assets (7,676 ) 22,192 Employer contributions 8,890 12,417 Benefits paid (7,000 ) (8,911 ) Settlement payments (3,133 ) — Administrative expenses (2,895 ) (2,406 ) Fair value of plan assets, end of year $ 138,992 $ 150,806 Funded status at end of year $ (52,269 ) $ (60,451 ) As of November 30, 2018 and December 31, 2017 , $49.7 million and $51.3 million , respectively, of the net amount recognized in the Consolidated Statements of Financial Condition was reflected as a charge to Accumulated other comprehensive income (substantially all of which were cumulative losses) and $52.3 million and $60.5 million , respectively, was reflected as accrued pension cost. The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Components of net periodic pension cost: Interest cost $ 6,783 $ 8,119 $ 8,464 Expected return on plan assets (7,217 ) (7,689 ) (7,589 ) Settlement charge 365 — — Actuarial losses 2,376 2,207 1,908 Net periodic pension cost $ 2,307 $ 2,637 $ 2,783 Amounts recognized in other comprehensive income (loss): Net (gains) losses arising during the period $ 1,141 $ (5,453 ) $ 6,811 Settlement charge (365 ) — — Amortization of net loss (2,376 ) (2,207 ) (1,908 ) Total recognized in other comprehensive income (loss) $ (1,600 ) $ (7,660 ) $ 4,903 Net amount recognized in net periodic benefit cost and other comprehensive income (loss) $ 707 $ (5,023 ) $ 7,686 The amounts in Accumulated other comprehensive income at November 30, 2018 and December 31, 2017 have not yet been recognized as components of net periodic pension cost in the Consolidated Statements of Operations. The estimated net loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during the twelve months ended November 30, 2019 is $1.9 million . We expect to pay $7.5 million of employer contributions during the twelve months ended November 30, 2019 . The assumptions used are as follows: November 30, 2018 December 31, 2017 WilTel Plan Discount rate used to determine benefit obligation 4.35 % 3.51 % Weighted-average assumptions used to determine net pension cost: Discount rate 3.51 % 3.85 % Expected long-term return on plan assets 7.00 % 7.00 % Jefferies Group Plan Discount rate used to determine benefit obligation 4.30 % 3.60 % Weighted-average assumptions used to determine net pension cost: Discount rate 3.60 % 3.90 % Expected long-term return on plan assets 6.25 % 6.25 % The following pension benefit payments are expected to be paid (in thousands): 2019 $ 9,689 2020 9,267 2021 9,491 2022 10,017 2023 13,292 2024 – 2028 66,801 U.S. Plan Assets The information below on the plan assets for the WilTel plan and the Jefferies Group plan is presented separately for the plans as the investments are managed independently. Cash equivalents are valued at cost, which approximates fair value and are categorized in Level 1 of the fair value hierarchy. The estimated fair values for securities measured using Level 1 inputs are determined using publicly quoted market prices in active markets for identical assets. Certain fixed income securities are measured using Level 2 inputs. Although these securities trade in brokered markets, the market for certain securities is sometimes inactive. Valuation inputs include benchmark yields, reported trades, broker dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. Neither plan had any assets classified within Level 3 of the fair value hierarchy. WilTel Plan Assets. At November 30, 2018 and December 31, 2017 , the WilTel plan assets at fair value consisted of the following (in thousands): Fair Value Measurements Using Total Level 1 Level 2 November 30, 2018 Cash and cash equivalents $ 802 $ 802 $ — Growth Portfolio 18,656 — 18,656 Liability-Driven Investing Portfolio 71,359 — 71,359 Total $ 90,817 $ 802 $ 90,015 December 31, 2017 Cash and cash equivalents $ 539 $ 539 $ — Growth Portfolio 65,625 — 65,625 Liability-Driven Investing Portfolio 31,693 — 31,693 Total $ 97,857 $ 539 $ 97,318 The current investment objectives are designed to close the funding gap while mitigating funded status volatility through a combination of liability hedging and investment returns. As plan funded status improves, the asset allocation will move along a predetermined, de-risking glide path that reallocates capital from growth assets to liability-hedging assets in order to reduce funded status volatility and lock in funded status gains. Plan assets are split into two separate portfolios, each with different asset mixes and objectives: • The Growth Portfolio consists of global equities and high yield investments. • 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. To develop the assumption for the expected long-term rate of return on plan assets, we considered the following underlying assumptions: 2.25% current expected inflation, 1.0% to 1.5% real rate of return for long duration risk free investments and an additional 1.0% to 1.5% return premium for corporate credit risk. For U.S. and international equity, we assume an equity risk premium over risk-free assets equal to 4.0% . We then weighted these assumptions based on invested assets and assumed that investment expenses were offset by expected returns in excess of benchmarks, which resulted in the selection of the 7.0% expected long-term rate of return assumption for 2018 . Jefferies Group Plan Assets. In May 2017, Jefferies Group entered into an agreement with an external investment manager to invest and manage the plan's assets under a strategy using a combination of two portfolios. The investment manager allocates the plan's assets between a growth portfolio and a liability-driven portfolio according to certain target allocations and tolerance bands that are agreed to by Jefferies Group Administrative Committee of the U.S. Pension Plan. Such target allocations will take into consideration the plan's funded ratio. The manager will also monitor the strategy and, as the plan's funded ratio changes over time, will rebalance the strategy, if necessary, to be within the agreed tolerance bands and target allocations. The portfolios are comprised of certain common collective investment trusts that are established and maintained by the investment manager. The common collective trusts are valued at their NAV as a practical expedient for fair value. German Pension Plan Jefferies Group maintained the German Pension Plan in connection with its Futures business. On December 28, 2017, a Liquidation Insurance Contract was entered into with Generali to transfer the defined benefit pension obligations and insurance contracts to Generali, for approximately €6.5 million , which was paid in January 2018, and released Jefferies Group from any and all obligations under the German Pension Plan. In addition, on December 28, 2017, Jefferies Group received $3.25 million as consideration relating to the German Pension Plan in connection with releasing the prior plan sponsor from any indemnities. Accumulated other comprehensive income for the eleven months ended November 30, 2018 included $5.3 million related to the transfer of the German Pension Plan. Other We have defined contribution pension plans covering certain employees. Contributions and costs are a percent of each covered employee's salary. Amounts charged to expense related to such plans were $8.0 million , $7.6 million and $8.4 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 11 Months Ended |
Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues for the eleven months ended November 30, 2018 (in thousands): Revenues from contracts with customers: Commissions and other fees $ 634,271 Investment banking 1,904,870 Manufacturing revenues 357,427 Other 223,074 Total revenues from contracts with customers 3,119,642 Other sources of revenue: Principal transactions 232,224 Interest income 1,294,325 Other 363,537 Total revenues from other sources 1,890,086 Total revenues $ 5,009,728 Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services (the "transaction price"). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The following provides detailed information on the recognition of our revenues from contracts with customers: Commissions and Other Fees. Jefferies Group earns commission revenue by executing, settling and clearing transactions for clients primarily in equity, equity-related and futures products. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade-date. Commissions revenues are generally paid on settlement date and Jefferies Group records a receivable between trade-date and payment on settlement date. Jefferies Group permits institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. Jefferies Group acts as an agent in the soft dollar arrangements as the customer controls the use of the soft dollars and directs Jefferies Group's payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues in our Consolidated Statements of Operations. Jefferies Group earns account advisory and distribution fees in connection with wealth management services. Account advisory fees are recognized over time using the time-elapsed method as Jefferies Group determined that the customer simultaneously receives and consumes the benefits of investment advisory services as they are provided. Account advisory fees may be paid in advance of a specified service period or in arrears at the end of the specified service period (e.g., quarterly). Account advisory fees paid in advance are initially deferred within Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. Distribution fees are variable and recognized when the uncertainties with respect to the amounts are resolved. Investment Banking. Jefferies Group provides its clients with a full range of capital markets and financial advisory services. Capital markets services include underwriting and placement agent services in both the equity and debt capital markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked convertible securities transactions and structuring, underwriting and distributing public and private debt, including investment grade debt, high yield bonds, leveraged loans, municipal bonds and mortgage- and asset-backed securities. Underwriting and placement agent revenues are recognized at a point in time on trade-date, as the client obtains the control and benefit of the capital markets offering at that point. Costs associated with capital markets transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded, and are recorded on a gross basis within Selling, general and other expenses in the Consolidated Statements of Operations as Jefferies Group is acting as a principal in the arrangement. Any expenses reimbursed by its clients are recognized as Investment banking revenues. Revenues from financial advisory services primarily consist of fees generated in connection with merger, acquisition and restructuring transactions. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. Fees received prior to the completion of the transaction are deferred within Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress as Jefferies Group's clients simultaneously receive and consume the benefits of those services as they are provided. A significant portion of the fees Jefferies Group receives for its advisory services are considered variable as they are contingent upon a future event (e.g., completion of a transaction or third-party emergence from bankruptcy) and are excluded from the transaction price until the uncertainty associated with the variable consideration is subsequently resolved, which is expected to occur upon achievement of the specified milestone. Payment for advisory services are generally due promptly upon completion of a specified milestone or, for retainer fees, periodically over the course of the engagement. Jefferies Group recognizes a receivable between the date of completion of the milestone and payment by the customer. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by Jefferies Group's clients are recognized as Investment banking revenues. Asset Management Fees. Jefferies Group and LAM earn management and performance fees, recorded in Other revenues, in connection with investment advisory services provided to various funds and accounts, which are satisfied over time and measured using a time elapsed measure of progress as the customer receives the benefits of the services evenly throughout the term of the contract. Management and performance fees are considered variable as they are subject to fluctuation (e.g., changes in assets under management, market performance) and/ or are contingent on a future event during the measurement period (e.g., meeting a specified benchmark) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Management fees are generally based on month-end assets under management or an agreed upon notional amount and are included in the transaction price at the end of each month when the assets under management or notional amount is known. Performance fees are received when the return on assets under management for a specified performance period exceed certain benchmark returns, "high-water marks" or other performance targets. The performance period related to performance fees is annual or semi-annual. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. Manufacturing Revenues. Idaho Timber's primary business consists of the sale of lumber that is manufactured or remanufactured at one of its locations. Agreements with customers for these sales specify the type, quantity and price of products to be delivered as well as the delivery date and payment terms. The transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. Disaggregation of Revenue The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions for the eleven months ended November 30, 2018 (in thousands): Reportable Segments Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Major Business Activity: Jefferies Group: Equities (1) $ 649,631 $ — $ — $ (919 ) $ 648,712 Fixed Income (1) 13,839 — — — 13,839 Investment Banking 1,910,203 — — (5,333 ) 1,904,870 Asset Management 21,214 — — — 21,214 Manufacturing revenues — 357,427 — — 357,427 Oil and gas revenues — 136,109 — — 136,109 Other revenues — 37,471 — — 37,471 Total revenues from contracts with customers $ 2,594,887 $ 531,007 $ — $ (6,252 ) $ 3,119,642 Primary Geographic Region: Americas $ 2,207,826 $ 529,471 $ — $ (6,252 ) $ 2,731,045 Europe, Middle East and Africa 304,370 1,264 — — 305,634 Asia 82,691 272 — — 82,963 Total revenues from contracts with customers $ 2,594,887 $ 531,007 $ — $ (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. Information on Remaining Performance Obligations and Revenue Recognized from Past Performance We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at November 30, 2018 . Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price at November 30, 2018 . During the eleven months ended November 30, 2018 , Jefferies Group recognized $26.6 million of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, Jefferies Group recognized $18.1 million of revenues primarily associated with distribution services during the eleven months ended November 30, 2018 , a portion of which relates to prior periods. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. We record a receivable when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied. Jefferies Group deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. We had receivables related to revenues from contracts with customers of $250.6 million and $469.3 million at November 30, 2018 and December 31, 2017 , respectively. As further discussed in Notes 1 and 28, on June 5, 2018, we sold 48% of National Beef to Marfrig. Upon closing of the transaction with Marfrig, we deconsolidated our investment in National Beef, including its receivables related to revenues from contracts with customers. Receivables related to revenues from contracts with customers at December 31, 2017 included $183.4 million related to National Beef. We had no significant impairments related to these receivables during the eleven months ended November 30, 2018 . Our deferred revenue, which primarily relates to Jefferies Group, was $14.2 million and $15.5 million at November 30, 2018 and December 31, 2017 , respectively, which are recorded as Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. During the eleven months ended November 30, 2018 , we recognized $10.6 million of deferred revenue from the balance at December 31, 2017. Contract Costs Jefferies Group capitalizes costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized. At November 30, 2018 , Jefferies Group's capitalized costs to fulfill a contract were $4.7 million , which are recorded in Receivables in the Consolidated Statement of Financial Condition. For the eleven months ended November 30, 2018 , Jefferies Group recognized $2.3 million of expenses related to costs to fulfill a contract that were capitalized as of the beginning of the period. There were no significant impairment charges recognized in relation to these capitalized costs during the eleven months ended November 30, 2018 . At November 30, 2018 , capitalized costs related to our other subsidiaries were not material. |
Income Taxes
Income Taxes | 11 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for continuing operations are as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Current taxes: U.S. Federal $ 10,000 $ (1,060 ) $ (1,314 ) U.S. state and local 37,439 33,132 8,035 Foreign 11,077 14,597 (4,638 ) Total current 58,516 46,669 2,083 Deferred taxes: U.S. Federal 39,448 586,014 20,517 U.S. state and local (73,013 ) 1,452 1,118 Foreign (5,943 ) 8,151 2,055 Total deferred (39,508 ) 595,617 23,690 Total income tax provision $ 19,008 $ 642,286 $ 25,773 The following table presents the U.S. and non-U.S. components of income from continuing operations before income taxes (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 U.S. $ 284,177 $ 535,955 $ 7,960 Non-U.S. (1) 11,923 70,547 (20,552 ) Income from continuing operations before income taxes $ 296,100 $ 606,502 $ (12,592 ) (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act which reduced the U.S. federal corporate tax rate from 35% to 21% , as well as other changes. Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rates of 21% for the eleven months ended November 30, 2018 and 35% for the twelve months ended December 31, 2017 and 2016 to income from continuing operations before income taxes as a result of the following (dollars in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Amount Percent Amount Percent Amount Percent Computed expected federal income tax $ 62,181 21.0 % $ 212,276 35.0 % $ (4,407 ) 35.0 % Increase (decrease) in income taxes resulting from: State and local income taxes, net of federal income tax benefit 12,391 4.2 14,115 2.3 (4,060 ) 32.2 International operations (including foreign rate differential) 1,823 0.6 (11,577 ) (1.9 ) (3,155 ) 25.1 Increase (decrease) in valuation allowance (48,058 ) (16.2 ) — — 2,825 (22.4 ) Permanent differences 12,331 4.2 4,933 0.8 4,315 (34.3 ) Foreign tax credits (9,046 ) (3.1 ) (32,974 ) (5.4 ) — — Excess stock detriment — — 161 — 24,907 (197.8 ) Deferred tax asset remeasurement related to the Tax Act 5,673 1.9 415,000 68.4 — — Transition tax on foreign earnings related to the Tax Act 2,590 0.9 35,500 5.9 — — Base erosion and anti-abuse tax (BEAT) 10,000 3.4 — — — — Change in unrecognized tax benefits related to prior years (19,783 ) (6.7 ) 1,553 0.3 (7,064 ) 56.1 Other, net (11,094 ) (3.8 ) 3,299 0.5 12,412 (98.6 ) Actual income tax provision $ 19,008 6.4 % $ 642,286 105.9 % $ 25,773 (204.7 )% The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Balance at beginning of period $ 169,020 $ 148,848 $ 150,867 Increases based on tax positions related to the current period 48,083 18,619 5,045 Increases based on tax positions related to prior periods 17,521 10,358 3,697 Decreases based on tax positions related to prior periods (36,324 ) (8,805 ) (9,414 ) Decreases related to settlements with taxing authorities (980 ) — (1,347 ) Balance at end of period $ 197,320 $ 169,020 $ 148,848 Interest and penalties related to unrecognized tax benefits are recorded as components of the provision for income taxes. Net interest expense (benefit) related to unrecognized tax benefits was $(3.1) million , $9.7 million and $8.6 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. At November 30, 2018 and December 31, 2017 , we had interest accrued of approximately $54.1 million and $57.4 million , respectively, included in Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. No material penalties were accrued for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 . The statute of limitations with respect to our federal income tax returns has expired for all years through 2014. We settled our 2013 Internal Revenue Service examination with the settlement having an immaterial impact on our effective tax rate. We are currently under examination by various major tax jurisdictions. Prior to becoming a wholly-owned subsidiary, Jefferies Group filed a consolidated U.S. federal income tax return with its qualifying subsidiaries and was subject to income tax in various states, municipalities and foreign jurisdictions and Jefferies Group is also currently under examination by various major tax jurisdictions. We do not expect that resolution of these examinations will have a significant effect on our Consolidated Statements of Financial Condition, but could have a significant impact on the Consolidated Statements of Operations for the period in which resolution occurs. It is reasonably possible that, within the next twelve months, statutes of limitation will expire which could have the effect of reducing the balance of unrecognized tax benefits by $8.2 million . The principal components of deferred taxes are as follows (in thousands): November 30, 2018 December 31, 2017 Deferred tax asset: Net operating loss carryover $ 282,650 $ 599,839 Compensation and benefits 269,788 213,340 Tax credits 66,272 93,026 Securities valuation reserves 76,931 3,012 Other 156,751 130,735 852,392 1,039,952 Valuation allowance (38,512 ) (93,758 ) 813,880 946,194 Deferred tax liability: Amortization of intangible assets (69,970 ) (71,583 ) Investment in associated companies (171,006 ) (83,114 ) Transition tax — (35,165 ) Other (60,115 ) (12,521 ) (301,091 ) (202,383 ) Net deferred tax asset $ 512,789 $ 743,811 The valuation allowance represents the portion of our deferred tax assets for which it is more likely than not that the benefit of such items will not be realized. We believe that the realization of the net deferred tax asset of $512.8 million at November 30, 2018 is more likely than not based on expectations of future taxable income in the jurisdictions in which we operate. As of November 30, 2018 , we have consolidated U.S. federal net operating loss carryovers ("NOLs") of $1.1 billion that may be used to offset future taxable income, and these NOLs begin to expire in 2025. We have various state NOLs that expire at different times, which are reflected in the above table to the extent our estimate of future taxable income will be apportioned to those states. A deferred tax asset of $9.2 million related to net operating losses in Europe has been fully offset by a valuation allowance, while $0.3 million of deferred tax assets related to net operating losses in Asia has been fully offset by a valuation allowance. Uncertainties that may affect the utilization of our tax attributes include future operating results, tax law changes, rulings by taxing authorities regarding whether certain transactions are taxable or deductible and expiration of carryforward periods. Under certain circumstances, the ability to use the NOLs and future deductions could be substantially reduced if certain changes in ownership were to occur. In order to reduce this possibility, our certificate of incorporation includes a charter restriction that prohibits transfers of our common stock under certain circumstances. The Tax Act makes broad and complex changes to the U.S. tax code that will impact many areas of taxation, including, but not limited to: (1) reduction of the U.S. federal corporate tax rate from 35% to 21% ; (2) elimination of the corporate alternative minimum tax; (3) the introduction of the base erosion anti-abuse tax ("BEAT"), a new minimum tax; (4) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (5) a new provision designed to tax global intangible low-taxed income ("GILTI"); (6) a new limitation on deductible interest expense; (7) limitations on the deductibility of certain executive compensation; (8) limitations on the use of foreign tax credits to reduce U.S. income tax liability; (9) limitations on net operating losses generated after December 31, 2017 to 80% of taxable income; (10) a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; and (11) bonus depreciation that will allow for full expensing of qualified property. As a result of planning related to the Tax Act, during fiscal 2018, several of our foreign subsidiaries have made tax elections to be treated as branches of the U.S. for federal income tax purposes (commonly referred to as "check-the-box" elections) effective during various times during 2018. We believe that, as a result of these foreign subsidiaries being treated as branches of the U.S. for federal income tax purposes, rather than as controlled foreign corporations, we will reduce the future tax impact of the BEAT and GILTI provisions, which are effective starting in fiscal 2018 and fiscal 2019, respectively. We have recorded a provision of $10.0 million for BEAT in the current year. Under the provisions of the Tax Act, we have paid U.S. federal income tax on all of the historic earnings and profits of our non-U.S. subsidiaries, and by making the above-mentioned check-the-box elections to treat several of our foreign entities as branches of the U.S. for federal income tax purposes, we no longer have any basis differences in these subsidiaries. Consequently, at November 30, 2018, we have no significant basis differences for which the recording of a U.S. deferred tax liability is required. We intend to continue to indefinitely reinvest in certain non-U.S. entities and therefore have not provided U.S. federal income tax on other basis differences. Determination of the amount of unrecognized deferred tax liability, if any, related to these basis differences is not practicable. Regarding the new GILTI tax rules, which will become applicable in fiscal 2019, we are required to make an accounting policy election to either treat taxes due on future GILTI inclusions in U.S. taxable income as a current period expense when incurred or reflect such portion of the future GILTI inclusions in U.S. taxable income that relate to existing basis differences in our current measurement of deferred taxes. We will make an accounting policy election during the first quarter of fiscal 2019. Also, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification 740, Income Taxes ("ASC 740"). While the initial estimated impact of the Tax Act was calculated using all available information, we anticipate modifications based on the procedures set forth under SAB 118. This process is applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which the accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where the accounting is not complete, but a reasonable estimate has been determined; and (3) where a reasonable estimate cannot yet be made, taxes are reflected in accordance with the law prior to the enactment of the Tax Act. Due to the complex nature of the Tax Act and the unavailability of certain information, we have not completed our accounting for the income tax effects of certain elements of the Tax Act. If we were able to make reasonable estimates of the effects of certain elements for which our analysis is not yet complete, we recorded a provisional estimate in our consolidated financial statements. If we were not yet able to make reasonable estimates of the impact of certain elements, we have not recorded any adjustments related to those elements and have continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before the Tax Act. The ultimate impact of the Tax Act may differ from this estimate, possibly materially, due to refinement of our calculations based on updated information, changes in the interpretations and assumptions, guidance that may be issued and actions we may take in response to the Tax Act. The provisional accounting impact may change until the accounting analysis is finalized, which will occur no later than the first quarter of fiscal 2019, as permitted by ASU 2018-05. We consider the accounting for the deferred tax asset remeasurements, the transition tax and other items to be incomplete. We recorded a discrete tax expense of $450.5 million as a provisional estimate of the impact of the Tax Act during the twelve months ended December 31, 2017. This provisional estimate primarily consisted of a $415.0 million expense related to the revaluation of our deferred tax asset and a $35.5 million expense related to the deemed repatriation of foreign earnings. During the eleven months ended November 30, 2018 , we adjusted the provisional estimate by approximately $8.3 million such that the total amount to date is $458.8 million . This consists of a $420.7 million expense related to the revaluation of our deferred tax asset and a $38.1 million expense related to the deemed repatriation of foreign earnings. |
Other Results of Operations Inf
Other Results of Operations Information | 11 Months Ended |
Nov. 30, 2018 | |
Nonoperating Income (Expense) [Abstract] | |
Other Results of Operations Information | Other Results of Operations Information Other revenue consists of the following (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Asset management fees $ 28,144 $ 28,831 $ 29,492 Dividend income 5,416 (452 ) 3,856 Income from associated companies classified as other revenues 73,975 75,889 17,184 Revenues of oil and gas production and development businesses 127,090 61,541 49,890 Net realized securities gains (losses) (939 ) 23,028 29,542 Gain on sale of Garcadia 221,712 — — Gain on sale of Conwed — 178,236 — Other 131,213 81,478 38,801 $ 586,611 $ 448,551 $ 168,765 In 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, for $417.2 million in cash. The pre-tax gain recognized as a result of this transaction, $221.7 million for the eleven months ended November 30, 2018 , is classified as Other revenue. In January 2017, we sold 100% of Conwed Plastics ("Conwed") to Schweitzer-Mauduit International, Inc., (NYSE: SWM) for $295 million in cash plus potential earn-out payments in 2019, 2020 and 2021 totaling up to $40 million in cash to the extent the results of Conwed's subsidiary, Filtrexx International, exceed certain performance thresholds. A pre-tax gain of $178.2 million (net of working capital adjustments) was recognized during the twelve months ended December 31, 2017. Taxes, other than income or payroll included in Income (loss) from continuing operations, amounted to $39.9 million , $32.7 million and $29.3 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Proceeds from sales of investments classified as available for sale were $1.6 billion , $0.4 billion and $0.5 billion during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Gross gains and gross losses were not material during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 . |
Common Shares and Earnings Per
Common Shares and Earnings Per Common Share | 11 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
Common Shares and Earnings Per Common Share | Common Shares and Earnings Per Common Share Basic and diluted earnings per share amounts were calculated by dividing net income by the weighted-average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings per share are as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 1,022,318 $ 167,351 $ 125,938 Allocation of earnings to participating securities (1) (5,107 ) (610 ) (574 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 1,017,211 166,741 125,364 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 28 (14 ) (19 ) Mandatorily redeemable convertible preferred share dividends — — — Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 1,017,239 $ 166,727 $ 125,345 Denominator for earnings per share: Weighted average common shares outstanding 337,817 358,482 361,151 Weighted average shares of restricted stock outstanding with future service required (1,707 ) (1,349 ) (1,645 ) Weighted average RSUs outstanding with no future service required 11,151 11,064 11,705 Denominator for basic earnings per share – weighted average shares 347,261 368,197 371,211 Stock options 7 24 — Senior executive compensation plan awards 4,007 2,480 307 Mandatorily redeemable convertible preferred shares — — — Denominator for diluted earnings per share 351,275 370,701 371,518 (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. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted-average shares of 1,724,800 , 1,401,000 and 1,986,800 for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Dividends declared on participating securities were not material during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 . Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , shares related to the 3.875% Convertible Senior Debentures were not included in the computation of diluted per share amounts as the conversion price exceeded the average market price. All of these convertible debentures were redeemed in January 2018. For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , 4,162,200 shares related to the mandatorily redeemable convertible preferred shares were not included in the computation of diluted per share amounts as the effect was antidilutive. The Board of Directors from time to time has authorized the repurchase of our common shares. In April 2018, the Board of Directors approved an increase to our share repurchase program to 25,000,000 common shares from the 12,500,000 remaining under its prior authorization. In July 2018, the Board of Directors approved an increase to our share repurchase program by an additional 25,000,000 common shares. During the eleven months ended November 30, 2018 , we purchased a total of 50,000,000 of our common shares under these authorizations. As of November 30, 2018 , no common shares remained authorized for repurchase. In January 2019, the Board of Directors approved an additional $500.0 million share repurchase authorization. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 11 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments We and our subsidiaries rent office space and office equipment under noncancellable operating leases with terms varying principally from one to twenty-one years. Rental expense (net of sublease rental income) included in Income (loss) from continuing operations was $55.7 million , $60.2 million and $61.6 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at November 30, 2018 are as follows (in thousands): 2019 $ 73,060 2020 63,982 2021 65,456 2022 63,840 2023 60,064 Thereafter 432,880 759,282 Less: sublease income (26,415 ) $ 732,867 The following table summarizes commitments associated with certain business activities (in millions): Expected Maturity Date 2019 2020 2021 2023 2025 Maximum Payout Equity commitments (1) $ 322.4 $ 21.8 $ 1.3 $ — $ 10.5 $ 356.0 Loan commitments (1) 250.0 7.5 54.0 3.5 — 315.0 Underwriting commitments 377.5 — — — — 377.5 Forward starting reverse repos (2) 4,262.7 — — — — 4,262.7 Forward starting repos (2) 2,931.8 — — — — 2,931.8 Other unfunded commitments (1) 194.8 — 69.4 4.9 — 269.1 $ 8,339.2 $ 29.3 $ 124.7 $ 8.4 $ 10.5 $ 8,512.1 (1) Equity commitments, loan commitments and other unfunded commitments are presented by contractual maturity date. The amounts are however mostly available on demand. (2) At November 30, 2018 , $4,232.8 million within forward starting securities purchased under agreements to resell and all of the securities sold under agreements to repurchase settled within three business days. Equity Commitments. Equity commitments include a commitment to invest in Jefferies Group's joint venture, Jefferies Finance, and commitments to invest in private equity funds and in Jefferies Capital Partners, LLC, which consists of a team led by our President and a Director. As of November 30, 2018 , Jefferies Group's outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $18.1 million . See Note 11 for additional information regarding Jefferies Group's investment in Jefferies Finance. Additionally, as of November 30, 2018 , we have other equity commitments to invest up to $282.6 million in various other investments, which include $250.0 million as part of the further development of our alternative asset management platforms. Loan Commitments. From time to time Jefferies Group makes commitments to extend credit to investment banking and other clients in loan syndication, acquisition finance and securities transactions and to SPE sponsors in connection with the funding of CLO and other asset-backed transactions. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At November 30, 2018 , Jefferies Group had $57.5 million of outstanding loan commitments to clients. Loan commitments outstanding at November 30, 2018 , also include Jefferies Group's portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwritings by Jefferies Finance. At November 30, 2018 , none of Jefferies $250.0 million commitment was funded. Underwriting Commitments. In connection with investment banking activities, Jefferies Group may from time to time provide underwriting commitments to its clients in connection with capital raising transactions. Forward Starting Reverse Repos and Repos. Jefferies Group enters into commitments to take possession of securities with agreements to resell on a forward starting basis and to sell securities with agreements to repurchase on a forward starting basis that are primarily secured by U.S. government and agency securities. Other Unfunded Commitments. Other unfunded commitments include obligations in the form of revolving notes to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. Contingencies We and our subsidiaries are parties to legal and regulatory proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to our consolidated financial position. We and our subsidiaries are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We do not believe that any of these actions will have a significant adverse effect on our consolidated financial position or liquidity, but any amounts paid could be significant to results of operations for the period. Guarantees Derivative Contracts. Jefferies Group dealer activities cause it to make markets and trade in a variety of derivative instruments. Certain derivative contracts that Jefferies Group has entered into meet the accounting definition of a guarantee under GAAP, including credit default swaps, written foreign currency options and written equity put options. On certain of these contracts, such as written interest rate caps and foreign currency options, the maximum payout cannot be quantified since the increase in interest or foreign exchange rates are not contractually limited by the terms of the contract. As such, we have disclosed notional values as a measure of Jefferies Group's maximum potential payout under these contracts. The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under GAAP as of November 30, 2018 (in millions): Expected Maturity Date Guarantee Type 2019 2020 2021 2023 2025 Notional/ Maximum Payout Derivative contracts – non-credit related $ 12,024.2 $ 2,372.3 $ 2,976.1 $ 281.1 $ 330.3 $ 17,984.0 Written derivative contracts – credit related — 32.4 — 112.8 — 145.2 Total derivative contracts $ 12,024.2 $ 2,404.7 $ 2,976.1 $ 393.9 $ 330.3 $ 18,129.2 The derivative contracts deemed to meet the definition of a guarantee under GAAP are before consideration of hedging transactions and only reflect a partial or "one-sided" component of any risk exposure. Written equity options and written credit default swaps are often executed in a strategy that is in tandem with long cash instruments (e.g., equity and debt securities). Jefferies Group substantially mitigates its exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments, and Jefferies Group manages the risk associated with these contracts in the context of its overall risk management framework. Jefferies Group believes notional amounts overstate its expected payout and that fair value of these contracts is a more relevant measure of its obligations. The fair value of derivative contracts meeting the definition of a guarantee is approximately $277.5 million at November 30, 2018 . Berkadia. We have agreed to reimburse Berkshire Hathaway for up to one-half of any losses incurred under a $1.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia. At November 30, 2018 , the aggregate amount of commercial paper outstanding was $1.47 billion . Other Guarantees. Jefferies Group is a member of various exchanges and clearing houses. In the normal course of business, Jefferies Group provides guarantees to securities clearing houses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearing house, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearing houses often require members to post collateral. Jefferies Group's obligations under such guarantees could exceed the collateral amounts posted. Jefferies Group's maximum potential liability under these arrangements cannot be quantified; however, the potential for Jefferies Group to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. Standby Letters of Credit. At November 30, 2018 , Jefferies Group provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $52.6 million . Standby letters of credit commit Jefferies Group to make payment to the beneficiary if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary. Since commitments associated with these collateral instruments may expire unused, the amount shown does not necessarily reflect the actual future cash funding requirement. Other subsidiaries of ours have outstanding letters of credit aggregating $1.6 million at November 30, 2018 . Primarily all letters of credit expire within one year. |
Net Capital Requirements
Net Capital Requirements | 11 Months Ended |
Nov. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Net Capital Requirements | Net Capital Requirements Jefferies LLC operates as a broker-dealer registered with the SEC and member firms of the Financial Industry Regulatory Authority ("FINRA"). Jefferies LLC is subject to the Securities and Exchange Commission Uniform Net Capital Rule ("Rule 15c3-1"), which requires the maintenance of minimum net capital and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC, as a dually-registered U.S. broker-dealer and futures commission merchant ("FCM"), is also subject to Rule 1.17 of the CFTC, which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually-registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17. Jefferies LLC's net capital and excess net capital as of November 30, 2018 were $1,739.4 million and $1,636.0 million , respectively. FINRA is the designated examining authority for Jefferies Group's U.S. broker-dealer and the National Futures Association is the designated self-regulatory organization for Jefferies LLC as an FCM. Certain other U.S. and non-U.S. subsidiaries of Jefferies Group are subject to capital adequacy requirements as prescribed by the regulatory authorities in their respective jurisdictions, including Jefferies International Limited, which is authorized and regulated by the Financial Conduct Authority in the United Kingdom. The regulatory capital requirements referred to above may restrict our ability to withdraw capital from Jefferies Group's regulated subsidiaries. Some of our other consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the parent company. |
Other Fair Value Information
Other Fair Value Information | 11 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Other Fair Value Information | Other Fair Value Information The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands): November 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Other Assets: Notes and loans receivable (1) $ 680,015 $ 676,152 $ 579,071 $ 565,285 Financial Liabilities: Short-term borrowings (2) 387,492 387,492 412,891 412,891 Long-term debt (3) 6,931,393 6,826,503 7,278,827 7,678,210 (1) Notes and loans receivable: 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: The fair values of short-term borrowings 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. (3) Long-term debt: The fair values are estimated using quoted prices, pricing information obtained from external data providers and, for certain variable rate debt, is estimated to be the carrying amount. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Related Party Transactions
Related Party Transactions | 11 Months Ended |
Nov. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Jefferies Capital Partners Related Funds. Jefferies Group has equity investments in the JCP Manager and in private equity funds, which are managed by a team led by our President and a Director ("Private Equity Related Funds"). Reflected in our Consolidated Statements of Financial Condition at November 30, 2018 and December 31, 2017 are Jefferies Group's equity investments in Private Equity Related Funds of $35.5 million and $23.7 million , respectively. Net gains (losses) aggregating $11.8 million , $(11.7) million and $(2.3) million were recorded in Other revenues related to the Private Equity Related Funds for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Notes 10 and 24 . Berkadia. At November 30, 2018 and December 31, 2017 , Jefferies Group has commitments to purchase $723.8 million and $864.1 million , respectively, in agency commercial mortgage-backed securities from Berkadia. HRG. Jefferies Group recognized investment banking revenues of $3.0 million for the eleven months ended November 30, 2018 in connection with the merger of HRG into Spectrum Brands. FXCM . Jefferies Group entered into OTC foreign exchange contracts with FXCM. In connection with these contracts, Jefferies Group had $9.9 million and $17.0 million at November 30, 2018 and December 31, 2017 , respectively, included in Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. Officers, Directors and Employees. We have $49.3 million and $45.6 million of loans outstanding to certain officers and employees (none of whom are an executive officer or director of the Company) at November 30, 2018 and December 31, 2017 , respectively. Receivables from and payables to customers include balances arising from officers, directors and employees' individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms. See Note 11 for information on transactions with Jefferies Finance. |
Discontinued Operations
Discontinued Operations | 11 Months Ended |
Nov. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On June 5, 2018, we sold 48% of National Beef to Marfrig for $907.7 million in cash, reducing our ownership in National Beef to 31% . Marfrig also acquired an additional 3% of National Beef from other equity owners and now owns 51% of National Beef. We have the right to designate two board members and have a series of other rights in respect of our continuing equity interest, with a lockup period of five years and thereafter fair market value liquidity protections. As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining interest under the equity method of accounting. The sale of National Beef meets the accounting criteria to be classified as a discontinued operation as the sale represents a strategic shift that has a major effect in our operations and financial results. As such, we have classified the results of National Beef prior to June 5, 2018 as a discontinued operation and reported those results in Income from discontinued operations, net of income tax provision in the Consolidated Statements of Operations. A summary of the results of discontinued operations for National Beef is as follows (in thousands): Period Ended June 4, 2018 (1) Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Revenues: Beef processing services $ 3,137,611 $ 7,353,663 $ 7,021,902 Interest income 131 339 166 Other 4,329 4,946 5,175 Total revenues 3,142,071 7,358,948 7,027,243 Expenses: Compensation and benefits 17,414 39,884 39,271 Cost of sales 2,884,983 6,764,055 6,513,768 Interest expense 4,316 6,657 12,946 Depreciation and amortization 43,959 98,515 94,482 Selling, general and other expenses 14,291 42,525 37,754 Total expenses 2,964,963 6,951,636 6,698,221 Income from discontinued operations before income taxes 177,108 407,312 329,022 Income tax provision 47,045 118,681 96,336 Income from discontinued operations, net of income tax provision $ 130,063 $ 288,631 $ 232,686 (1) The operations of National Beef from January 1, 2018 through June 4, 2018, are included in discontinued operations for our eleven months ended November 30, 2018. Net income attributable to the redeemable noncontrolling interests in the Consolidated Statements of Operations includes $37.1 million , $85.3 million and $68.8 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively, related to National Beef's noncontrolling interests. Pre-tax income from discontinued operations attributable to Jefferies Financial Group Inc. common shareholders was $140.0 million , $322.0 million and $260.2 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. As discussed above, we account for our retained 31% ownership of National Beef subsequent to the sale to Marfrig under the equity method. From June 5, 2018 through November 30, 2018 , we recorded $110.0 million in Income (loss) related to associated companies from our 31% ownership in National Beef and we received distributions from National Beef of $48.7 million . The pre-tax income of 100% National Beef from June 5, 2018 through November 30, 2018 was $367.2 million . During the eleven months ended November 30, 2018, we also recorded a pre-tax gain on the National Beef transaction of $873.5 million ( $643.9 million after-tax) which is reported in Gain on disposal of discontinued operations, net of income tax provision in the Consolidated Statements of Operations. Included in the $873.5 million pre-tax gain on the sale of National Beef was approximately $352.4 million related to the remeasurement of our retained 31% interest in National Beef to fair value. The $592.3 million fair value of our retained 31% interest in National Beef was based on the implied equity value of 100% of National Beef from the transaction with Marfrig and is considered a Level 3 input. The transaction with Marfrig was based on a $1.9 billion equity valuation and a $2.3 billion enterprise valuation. |
Segment Information
Segment Information | 11 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are a diversified financial services company engaged in investment banking and capital markets, asset management and direct investing. Prior to 2018, we had three reportable segments consisting of Jefferies Group, National Beef and Corporate. Additionally, we had other investments, which consisted of our Other Merchant Banking and Other Financial Services investments. In 2018, we made a number of strategic changes including the sale of 48% of National Beef and 100% of our interest in Garcadia. During the fourth quarter of 2018, we transferred to Jefferies Group our 50% interest in Berkadia and our LAM seed investments, thereby amalgamating our primary financial services operating businesses into one platform. Culminating with the fourth quarter reorganization, we began managing our business across three reportable operating segments consisting of Jefferies Group, Merchant Banking and Corporate. In connection with this change, we have reclassified the prior periods to conform to our current presentation. Jefferies Group is the largest independent U.S. headquartered global full-service integrated investment banking and securities firm. Merchant Banking consists of our various merchant banking businesses and investments, including National Beef, Spectrum Brands, Linkem, Vitesse Energy Finance and JETX Energy, WeWork, HomeFed, Idaho Timber, FXCM, Foursight Capital and Golden Queen. Our Merchant Banking businesses and investments also include LAM and Berkadia, prior to their transfer to Jefferies Group in the fourth quarter of 2018, and Garcadia, prior to its sale in August 2018. Corporate assets primarily consist of financial instruments owned, the deferred tax asset (exclusive of Jefferies Group's deferred tax asset), cash and cash equivalents. Corporate revenues primarily include interest income. We do not allocate Corporate revenues or overhead expenses to the operating units. As discussed further in Notes 1 and 28, on June 5, 2018, we sold 48% of National Beef to Marfrig and deconsolidated our investment in National Beef. Results prior to June 5, 2018 are classified in discontinued operations and are not included in the table below. Our retained 31% interest in National Beef is accounted for under the equity method and results subsequent to the June 5, 2018 closing are included in Merchant Banking in the table below. Certain information concerning our segments is presented in the following table. Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired. As discussed above, Jefferies Group is reflected in our consolidated financial statements utilizing a one month lag for the twelve months ended December 31, 2017 and 2016 . Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 (In thousands) Net revenues: Reportable Segments: Jefferies Group (1) $ 3,183,376 $ 3,198,109 $ 2,414,614 Merchant Banking (1) (2) 571,831 876,180 621,804 Corporate 22,300 6,306 2,689 Total net revenues related to reportable segments 3,777,507 4,080,595 3,039,107 Consolidation adjustments (13,473 ) (3,150 ) (3,733 ) Total consolidated net revenues $ 3,764,034 $ 4,077,445 $ 3,035,374 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group (1) $ 409,667 $ 504,924 $ 29,972 Merchant Banking (1) (2) 10,488 228,373 85,188 Corporate (66,140 ) (78,802 ) (72,344 ) Income from continuing operations before income taxes related to reportable segments 354,015 654,495 42,816 Parent Company interest (54,090 ) (58,943 ) (58,881 ) Consolidation adjustments (3,825 ) 10,950 3,473 Total consolidated income (loss) from continuing operations before income taxes $ 296,100 $ 606,502 $ (12,592 ) Depreciation and amortization expenses: Reportable Segments: Jefferies Group (1) $ 68,296 $ 62,668 $ 60,206 Merchant Banking (1) 48,852 44,257 53,286 Corporate 3,169 3,470 3,619 Total consolidated depreciation and amortization expenses $ 120,317 $ 110,395 $ 117,111 November 30, 2018 December 31, 2017 December 31, 2016 Identifiable assets employed: Reportable Segments: Jefferies Group (1) (3) $ 41,224,984 $ 39,575,732 $ 36,992,096 Merchant Banking (1) 4,190,484 4,903,530 5,120,337 National Beef — 1,460,539 1,498,317 Corporate 1,838,037 1,299,628 1,543,238 Identifiable assets employed related to reportable segments 47,253,505 47,239,429 45,153,988 Consolidation adjustments (122,410 ) (70,321 ) (82,681 ) Total consolidated assets $ 47,131,095 $ 47,169,108 $ 45,071,307 (1) Amounts related to LAM and Berkadia are included in Merchant Banking prior to their transfer to Jefferies Group in the fourth quarter of 2018. Revenues related to the net assets transferred were $6.7 million , $49.6 million and $26.5 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Income from continuing operations before income taxes related to the net assets transferred were $47.7 million , $118.4 million and $109.4 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Identifiable assets employed related to the net assets transferred were $662.2 million and $238.1 million at December 31, 2017 and 2016, respectively. (2) Merchant Banking Net revenues and Income (loss) from continuing operations before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $18.6 million and $(64.6) million , respectively, for the eleven months ended November 30, 2018 ; $23.2 million and $(154.5) million , respectively, for the twelve months ended December 31, 2017 ; and $(54.6) million and $(52.7) million , respectively, for the twelve months ended December 31, 2016 . (3) At November 30, 2018 and December 31, 2017 and 2016 , includes $243.2 million , $213.0 million and $337.6 million , respectively, of Jefferies Group's deferred tax asset, net. Net revenues for Jefferies Group are recorded in the geographic region in which the position was risk-managed, in the case of investment banking, in which the senior coverage banker is located, or for asset management, according to the location of the investment adviser. Net revenues by geographic region for Jefferies Group were as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Americas (1) $ 2,652,917 $ 2,602,741 $ 1,870,355 Europe (2) 434,895 489,583 458,046 Asia 95,564 105,785 86,213 $ 3,183,376 $ 3,198,109 $ 2,414,614 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. Consolidated Net revenues exclusive of Jefferies Group principally relate to the U.S. for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 . Interest expense classified as a component of Net revenues relates to Jefferies Group. For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , interest expense classified as a component of Expenses was primarily comprised of parent company interest ( $54.1 million , $58.9 million and $58.9 million , respectively) and Merchant Banking ( $35.2 million , $42.3 million and $36.9 million , respectively). As discussed above, 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 and recognized a pre-tax gain of $221.7 million for the eleven months ended November 30, 2018 in Other revenues. The gain on the sale is included within Merchant Banking above. Conwed was our consolidated subsidiary that manufactured and marketed lightweight plastic netting. In January 2017, we sold 100% of Conwed to Schweitzer-Mauduit International, Inc., (NYSE: SWM) for $295 million in cash plus potential earn-out payments in 2019, 2020 and 2021 totaling up to $40 million in cash to the extent the results of Conwed's subsidiary, Filtrexx International, exceed certain performance thresholds. We recognized a $178.2 million pre-tax gain on the sale of Conwed in Other revenues primarily during the twelve months ended December 31, 2017. The gain on the sale of Conwed is included within Merchant Banking above. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 11 Months Ended |
Nov. 30, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) First Quarter (1) Second Quarter (2) Third Quarter (3) Fourth Quarter (4) (In thousands, except per share amounts) 2018 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 — — Gain on disposal of discontinued operations, net of taxes — 643,921 — — 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: Income (loss) from continuing operations $ 0.23 $ 0.08 $ 0.56 $ (0.06 ) Income from discontinued operations 0.11 0.15 — — Gain on disposal of discontinued operations — 1.82 — — 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: Income (loss) from continuing operations $ 0.23 $ 0.08 $ 0.55 $ (0.06 ) Income from discontinued operations 0.11 0.15 — — Gain on disposal of discontinued operations — 1.80 — — 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 2017 Net revenues $ 1,306,526 $ 856,861 $ 857,223 $ 1,056,835 Income (loss) from continuing operations 249,751 20,072 15,778 (321,385 ) Income from discontinued operations, net of taxes 44,172 53,990 120,989 69,480 Net (income) loss attributable to the noncontrolling interest 523 1,446 (28 ) 1,514 Net income attributable to the redeemable noncontrolling interests (12,022 ) (16,300 ) (36,216 ) (20,038 ) Preferred stock dividends (1,016 ) (1,015 ) (1,172 ) (1,172 ) Net income (loss) attributable to Jefferies Financial Group Inc. common shareholders 281,408 58,193 99,351 (271,601 ) Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: Income (loss) from continuing operations $ 0.67 $ 0.06 $ 0.04 $ (0.88 ) Income from discontinued operations 0.09 0.10 0.23 0.14 Net income (loss) $ 0.76 $ 0.16 $ 0.27 $ (0.74 ) Number of shares used in calculation 369,267 369,212 367,828 366,000 Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: Income (loss) from continuing operations $ 0.66 $ 0.06 $ 0.04 $ (0.88 ) Income from discontinued operations 0.09 0.10 0.23 0.14 Net income (loss) $ 0.75 $ 0.16 $ 0.27 $ (0.74 ) Number of shares used in calculation 375,721 371,552 370,198 366,000 (1) The first quarter of 2018 includes losses of $21.4 million from a decrease in the fair value of our investment in HRG. The first quarter of 2017 includes a pre-tax gain of $179.9 million related to the sale of Conwed, revenue of $175.2 million related to the increase in the fair value of our investment in HRG and a pre-tax charge of $130.2 million related to an impairment of our equity investment in FXCM. (2) The second quarter of 2018 includes the after-tax gain on disposal of discontinued operations of $643.9 million from the National Beef transaction and losses of $158.4 million from a decrease in the fair value of our investment in HRG. The second quarter of 2017 includes losses of $75.0 million from a decrease in the fair value of our investment in HRG and revenue of $95.8 million from an increase in the fair value of Jefferies Group's investment in KCG. (3) The third quarter of 2018 includes a $221.7 million pre-tax gain on the sale of our Garcadia interests and $58.9 million of income related to our remaining interest in National Beef. These increases were partially offset by a $47.9 million impairment loss related to Golden Queen and losses of $48.5 million from a decrease in the fair value of our investment in Spectrum Brands. The third quarter of 2017 includes losses of $97.9 million from a decrease in the fair value of our investment in HRG. (4) The fourth quarter of 2018 is comprised of the two months ended November 30, 2018 and the fourth quarter of 2017 is comprised of the three months ended December 31, 2017. The fourth quarter of 2018 includes a $62.1 million impairment loss related to FXCM and losses of $190.4 million from a decrease in the fair value of our investment in Spectrum Brands. These decreases were partially offset by revenues of $70.9 million related to the increase in the fair value of our investment in WeWork and $26.8 million of income related to our remaining interest in National Beef. As discussed further in Note 21, the fourth quarter of 2017 includes a discrete tax charge of $450.5 million as a provisional estimate of the impact of the Tax Act. This provisional estimate primarily consists of a $415.0 million expense related to the revaluation of our deferred tax assets and a $35.5 million expense related to the deemed repatriation of foreign earnings. In 2018 and 2017 , the totals of quarterly per share amounts may not equal annual per share amounts because of changes in outstanding shares during the year. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 11 Months Ended |
Nov. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | Schedule I - Condensed Financial Information of Registrant Jefferies Financial Group Inc. (Parent Company Only) Condensed Statements of Financial Condition November 30, 2018 and December 31, 2017 (Dollars in thousands, except par value) November 30, 2018 December 31, 2017 ASSETS Cash and cash equivalents $ 48,540 $ 12,317 Financial instruments owned: Trading assets, at fair value 338,067 200,804 Available for sale securities — 16,378 Total financial instruments owned 338,067 217,182 Investments in subsidiaries 9,774,541 18,615,819 Advances to subsidiaries 224,653 542,976 Investments in associated companies 929,477 288,382 Deferred tax asset, net 63,211 205,773 Other assets 10,186 8,815 Total assets $ 11,388,675 $ 19,891,264 LIABILITIES Accrued interest payable $ 6,629 $ 11,447 Pension liabilities 45,721 52,841 Other payables, expense accruals and other liabilities 160,339 31,919 Advances from subsidiaries 4 8,575,079 Long-term debt 990,116 989,021 Total liabilities 1,202,809 9,660,307 Commitments and contingencies MEZZANINE EQUITY Mandatorily redeemable convertible preferred shares 125,000 125,000 EQUITY Common shares, par value $1 per share, authorized 600,000,000 shares; 307,515,472 and 356,227,038 shares issued and outstanding, after deducting 109,460,774 and 60,165,980 shares held in treasury 307,515 356,227 Additional paid-in capital 3,854,847 4,676,038 Accumulated other comprehensive income 288,286 372,724 Retained earnings 5,610,218 4,700,968 Total Jefferies Financial Group Inc. shareholders' equity 10,060,866 10,105,957 Total $ 11,388,675 $ 19,891,264 See accompanying notes to condensed financial statements. Schedule I - Condensed Financial Information of Registrant, continued Jefferies Financial Group Inc. (Parent Company Only) Condensed Statements of Operations For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (In thousands, except per share amounts) Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Revenues: Principal transactions $ 120,886 $ (9,754 ) $ 16,735 Other 663 277 2,300 Total revenues 121,549 (9,477 ) 19,035 Expenses: Compensation and benefits 49,955 47,462 39,693 WilTel pension expense 2,659 2,957 2,989 Interest expense 54,090 58,943 58,881 Intercompany interest expense 3,642 361,446 293,527 Selling, general and other expenses 21,664 20,821 19,244 Total expenses 132,010 491,629 414,334 Loss from continuing operations before income taxes, income related to associated companies and equity in earnings of subsidiaries (10,461 ) (501,106 ) (395,299 ) Income related to associated companies 96,808 3,183 21,195 Income (loss) from continuing operations before income taxes and equity in earnings of subsidiaries 86,347 (497,923 ) (374,104 ) Income tax benefit (5,281 ) (47,329 ) (117,699 ) Income (loss) from continuing operations before equity in earnings of subsidiaries 91,628 (450,594 ) (256,405 ) Equity in earnings from continuing operations of subsidiaries, net of taxes 198,317 418,966 222,531 Income (loss) from continuing operations 289,945 (31,628 ) (33,874 ) Equity in earnings from discontinued operations of subsidiaries, net of taxes 92,922 203,354 163,875 Gain on disposal of discontinued operations, net of taxes 643,921 — — Net income 1,026,788 171,726 130,001 Preferred stock dividends (4,470 ) (4,375 ) (4,063 ) Net income attributable to Jefferies Financial Group Inc. common shareholders $ 1,022,318 $ 167,351 $ 125,938 Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: Income (loss) from continuing operations $ 0.82 $ (0.10 ) $ (0.10 ) Income from discontinued operations 0.27 0.55 0.44 Gain on disposal of discontinued operations 1.84 — — Net income $ 2.93 $ 0.45 $ 0.34 Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: Income (loss) from continuing operations $ 0.81 $ (0.10 ) $ (0.10 ) Income from discontinued operations 0.26 0.55 0.44 Gain on disposal of discontinued operations 1.83 — — Net income $ 2.90 $ 0.45 $ 0.34 See accompanying notes to condensed financial statements. Schedule I - Condensed Financial Information of Registrant, continued Jefferies Financial Group Inc. (Parent Company Only) Condensed Statements of Comprehensive Income (Loss) For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (In thousands) Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Net income $ 1,026,788 $ 171,726 $ 130,001 Other comprehensive income (loss): Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $(551), $3,450 and $2,262 (1,560 ) 5,923 3,900 Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $37, $124 and $2 (109 ) (212 ) (4 ) Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $(588), $3,326 and $2,260 (1,669 ) 5,711 3,896 Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(11,089), $14,616 and $(3,530) (71,543 ) 78,493 (121,581 ) Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $(16), $1,086 and $0 (20,459 ) 5,310 — Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(11,073), $13,530 and $(3,530) (92,002 ) 83,803 (121,581 ) Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $9,289, $(13,215) and $(4,251) 29,620 (21,394 ) (6,494 ) Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $311, $0 and $0 (916 ) — — Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $8,978, $(13,215) and $(4,251) 28,704 (21,394 ) (6,494 ) Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $552, $(593) and $0 1,608 (936 ) — Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, net of income tax provision (benefit) of $0, $0 and $0 — — — Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $552, $(593) and $0 1,608 (936 ) — Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(297), $2,018 and $(2,516) (844 ) 3,526 (5,451 ) Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) 7,349 517 1,534 Net change in pension liability benefits, net of income tax provision (benefit) of $400, $4,060 and $(1,816) 6,505 4,043 (3,917 ) Other comprehensive income (loss), net of income taxes (56,854 ) 71,227 (128,096 ) Comprehensive income 969,934 242,953 1,905 Preferred stock dividends (4,470 ) (4,375 ) (4,063 ) Comprehensive income (loss) attributable to Jefferies Financial Group Inc. common shareholders $ 965,464 $ 238,578 $ (2,158 ) See accompanying notes to condensed financial statements. Schedule I - Condensed Financial Information of Registrant, continued Jefferies Financial Group Inc. (Parent Company Only) Condensed Statements of Cash Flows For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (In thousands) Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Net cash flows from operating activities: Net income $ 1,026,788 $ 171,726 $ 130,001 Adjustments to reconcile net income to net cash provided by (used for) operations: Deferred income tax provision (benefit) 142,085 116,942 (12,220 ) Accretion of interest 944 975 921 Share-based compensation 48,249 48,384 33,597 Equity in earnings of subsidiaries, including equity in earnings of discontinued operations (291,239 ) (622,320 ) (386,406 ) Gain on disposal of discontinued operation (873,474 ) — — Income related to associated companies (96,808 ) (3,183 ) (21,195 ) Distributions from associated companies 24,711 5,641 1,861 Net change in: Trading assets (120,886 ) 22,415 (40,235 ) Other assets 129 1,250 (708 ) Accrued interest payable (4,818 ) — — Pension liabilities (5,231 ) (8,461 ) (13,111 ) Other payables, expense accruals and other liabilities (1,712 ) (7,763 ) (73,663 ) Income taxes receivable/payable, net 242,637 (164,684 ) (90,898 ) Other 6,315 2,316 1,262 Net cash provided by (used for) operating activities 97,690 (436,762 ) (470,794 ) Net cash flows from investing activities: Distributions from subsidiaries, net 38,304 50,122 239,297 Collections on notes, loans and other receivables — — 16,233 Investments in associated companies (1,228 ) (45,457 ) (11,611 ) Capital distributions from associated companies 24,442 2,796 1,501 Purchases of investments (other than short-term) (1,500 ) (1,316 ) (2,242 ) Other — 1,886 — Net cash provided by investing activities - continuing operations 60,018 8,031 243,178 Net cash provided by investing activities - discontinued operations 1,158,655 337,690 201,382 Net cash provided by investing activities 1,218,673 345,721 444,560 Net cash flows from financing activities: Advances from (to) subsidiaries, net (1,139 ) 214,519 265,762 Issuance of common shares 3,611 1,501 1,062 Purchase of common shares for treasury (1,130,854 ) (100,477 ) (95,020 ) Dividends paid (151,758 ) (117,407 ) (91,296 ) Net cash provided by (used for) financing activities (1,280,140 ) (1,864 ) 80,508 Net increase (decrease) in cash, cash equivalents and restricted cash 36,223 (92,905 ) 54,274 Cash, cash equivalents and restricted cash at beginning of period 12,317 105,222 50,948 Cash, cash equivalents and restricted cash at end of period $ 48,540 $ 12,317 $ 105,222 See accompanying notes to condensed financial statements. Schedule I - Condensed Financial Information of Registrant, continued Jefferies Financial Group Inc. (Parent Company Only) Notes to Condensed Financial Statements 1. Introduction and Basis of Presentation The notes to the consolidated financial statements of Jefferies Financial Group Inc. and Subsidiaries (the "Company") are incorporated by reference into this schedule. For purposes of these condensed non-consolidated financial statements, the Company's wholly-owned and majority owned subsidiaries are accounted for using the equity method of accounting ("equity method subsidiaries"). The Parent Company Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Significant Accounting Policies, in the Company's consolidated financial statements included in the 2018 10-K. The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with GAAP. The most important of these estimates and assumptions relate to fair value measurements, goodwill and intangible assets, the ability to realize deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. 2. Cash Flows Supplemental cash flow information related to the Parent Company is as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Cash paid for: Interest $ 57,813 $ 57,813 $ 57,813 Income tax payments (refunds), net 32,576 1,440 (10,199 ) Non-cash investing activities: Investments contributed to subsidiary $ — $ 25,328 $ 423,009 Investments transferred from subsidiary — — 2,022 Dividends received from subsidiaries 8,450,147 32,792 — During the eleven months ended November 30, 2018 , the Parent Company had $17.6 million in non-cash financing activities related to purchases of common shares for treasury which settled subsequent to November 30, 2018 . Cash, cash equivalents and restricted cash is included in Cash and cash equivalents in the Condensed Statements of Financial Condition. 3. Transactions with Subsidiaries The Parent Company has transactions with its equity method subsidiaries, many of which are structured as interest bearing advances to/from its subsidiaries. Intercompany interest expense primarily reflects the interest on funding advances incurred by the Parent to its wholly-owned subsidiary which holds assets related to its treasury function. Interest is incurred on funding advances based on the prime rate plus .125% . Although there is frequent cash movement between these subsidiaries and the Parent, they do not generally represent cash dividends. The Parent Company received $48.7 million of cash dividends from Jefferies Group during the eleven months ended November 30, 2018 and no cash dividends from its subsidiaries during the twelve months ended December 31, 2017 and 2016. Historically, excess cash was provided to the Parent Company by its subsidiaries in the form of loans rather than as distributions. Through a series of steps, the Parent Company has reduced these intercompany loans. During the eleven months ended November 30, 2018 , the Parent Company received non-cash dividends totaling $8.5 billion from its subsidiaries. Of this amount, $8.5 billion was reflected as a decrease in our Investment in subsidiaries, $0.2 billion was reflected as a decrease to Advances to subsidiaries and $8.6 billion was reflected as a decrease to Advances from subsidiaries. 4. Commitments, Contingencies and Guarantees In the normal course of its business, the Parent Company has various commitments, contingencies and guarantees as described in Note 24, Commitments, Contingencies and Guarantees, and Note 16, Mezzanine Equity, in the Company's consolidated financial statements. In the fourth quarter of 2018, the Company transferred its Leucadia Asset Management seed investments, as well as its interest in Berkadia Commercial Mortgage Holding LLC, to Jefferies Group. In connection with these transfers, related deferred tax liabilities of approximately $50.9 million were transferred to Jefferies Group, for which the Parent Company indemnified Jefferies Group. Such indemnification is reflected in Other payables, expense accruals and other liabilities in the Condensed Statement of Financial Condition at November 30, 2018. 5. Restricted Net Assets For a discussion of the Company's regulatory requirements, see Note 25, Net Capital Requirements, in the Company's consolidated financial statements. Some of the Company's consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the Parent Company. At November 30, 2018 and December 31, 2017 , $5.3 billion and $6.1 billion , respectively, of net assets of the Parent Company's consolidated subsidiaries are restricted as to the payment of cash dividends, or the ability to make loans or advances to the Parent Company. At November 30, 2018 and December 31, 2017 , $4.7 billion and $5.1 billion , respectively, of these net assets are restricted as they reflect regulatory capital requirements or require regulatory approval prior to the payment of cash dividends and advances to the Parent Company. Included in retained earnings of the Parent Company at November 30, 2018 are $252.9 million of undistributed earnings of unconsolidated associated companies. For further information, see Note 11, Loans to and Investments in Associated Companies, in the Company's consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 11 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock. In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests. All intercompany transactions and balances are eliminated in consolidation. In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under GAAP. We have also formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies. Our subsidiaries may act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or "kick-out" rights. |
Revenue Recognition Policies | Revenue Recognition Policies We adopted the Financial Accounting Standards Board ("FASB") new revenue recognition standard on January 1, 2018. Revenue recognition policies under the new standard are applied prospectively in our financial statements from January 1, 2018 forward. Reported financial information for the historical comparable periods was not revised and continues to be reported under the accounting standards in effect during the historical periods. For investment banking revenues and asset management fees, we separately state the accounting policies applicable in the presented eleven and twelve month periods. There were no material changes in our other revenue recognition policies as a result of the new standard. For further information on our adoption of the new revenue standard, see Note 4. Investment Banking Activities Commissions and Other Fees. All customer securities transactions are reported in the Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are acting as an agent in these arrangements, netted against commission revenues in the Consolidated Statements of Operations. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Trading assets and trading liabilities (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transactions revenues in the Consolidated Statements of Operations, except for derivatives accounted for as hedges (see Hedge Accounting section, herein and Note 6). Fees received on loans carried at fair value are also recorded in Principal transactions revenues. Investment Banking - Eleven Months Ended November 30, 2018. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by clients are recognized as Investment banking revenues. Underwriting and placement agent revenues are recognized at a point in time on trade-date. Costs associated with underwriting activities are deferred until the related revenue is recognized or the engagement is otherwise concluded and are recorded on a gross basis in Selling, general and other expenses in the Consolidated Statements of Operations. Investment Banking - Twelve Months ended December 31, 2017 and 2016. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Selling, general and other expenses in our Consolidated Statements of Operations. Asset Management Fees - Eleven Months Ended November 30, 2018. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Asset Management Fees - Twelve Months ended December 31, 2017 and 2016. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized. Interest Revenue and Expense. Interest expense that is deducted from Revenues to arrive at Net revenues is related to Jefferies Group's operations. Contractual interest on Trading assets and Trading liabilities is recognized on an accrual basis as a component of Interest income and Interest expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions revenues in the Consolidated Statements of Operations rather than as a component of interest income or expense. Interest on short- and long-term borrowings is recorded on an accrual basis, except for those for which we have elected the fair value option, with related interest recorded as Interest expense. Discounts/premiums arising on long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. Interest revenue related to Securities borrowed and Securities purchased under agreements to resell activities and interest expense related to Securities loaned and Securities sold under agreements to repurchase activities are recognized on an accrual basis. Manufacturing Revenues. Manufacturing revenues are primarily from Idaho Timber, which manufactures and distributes an extensive range of quality wood products to markets across North America. Idaho Timber's primary business consists of the sale of lumber that is manufactured or remanufactured at one of its locations. Agreements with customers for these sales specify the type, quantity and price of products to be delivered as well as the delivery date and payment terms. The transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. |
Hedge Accounting | Hedge Accounting Jefferies Group applies hedge accounting using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. Jefferies Group's interest rate swaps are included as derivative contracts in Trading assets and Trading liabilities in the Consolidated Statements of Financial Condition. Jefferies Group uses regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% to 125% . The impact of valuation adjustments related to Jefferies Group own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another, and together with any resulting ineffectiveness, are recorded in Interest expense. |
Cash Equivalents | Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. |
Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations | Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities. |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Trading assets and Trading liabilities are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses on trading assets and trading liabilities are recognized in our Consolidated Statements of Operations in Principal transactions revenues. Available for sale securities are reflected at fair value, with unrealized gains and losses reflected as a separate component of equity, net of taxes. The cost of securities sold is based on average cost. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). |
Fair Value Hierarchy | Fair Value Hierarchy In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: 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. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments fair values for which 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. These 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. Financial instruments are valued at quoted market prices, if available. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management's judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management's judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. |
Loans to and Investments in Associated Companies | Loans to and Investments in Associated Companies Loans to and investments in associated companies include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such investments. Loans to and investments in associated companies are accounted for using the equity method. See Note 11 for additional information regarding certain of these investments. Under the equity method of accounting, our share of the investee's underlying net income or loss is recorded as Income (loss) related to associated companies, or as part of Other revenues if such investees are considered to be an extension of our business. Income (loss) for investees for which the fair value option was elected is reported as Principal transactions revenues. |
Receivables | Receivables At November 30, 2018 and December 31, 2017 , Receivables include receivables from brokers, dealers and clearing organizations of $3,223.7 million and $2,635.2 million , respectively, and receivables from customers of securities operations of $2,017.1 million and $1,563.8 million , respectively. |
Securities Borrowed And Securities Loaned | Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, Jefferies Group borrows securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. When Jefferies Group borrows securities, it generally provides cash to the lender as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities borrowed. Jefferies Group earns interest revenues on this cash collateral. Similarly, when Jefferies Group lends securities to another party, that party provides cash to Jefferies Group as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities loaned. Jefferies Group pays interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. Jefferies Group monitors the fair value of the securities borrowed and loaned on a daily basis and requests additional collateral or returns excess collateral, as appropriate. |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively "repos") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. Jefferies Group earns and incurs interest over the term of the repo, which is reflected in Interest revenue and Interest expense in the Consolidated Statements of Operations on an accrual basis. Repos are presented in the Consolidated Statements of Financial Condition on a net-basis-by counterparty, where permitted by GAAP. The fair value of the underlying securities is monitored daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. |
Offsetting of Derivative Financial Instruments and Securities Financing Agreements | Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage exposure to credit risk associated with derivative activities and securities financing transactions, Jefferies Group may enter into International Swaps and Derivative Association, Inc. ("ISDA") master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third party. Under its ISDA master netting agreements, Jefferies Group typically also executes credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty's default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where Jefferies Group has not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of Jefferies Group's risk management processes as part of reducing counterparty credit risk and managing liquidity risk. Jefferies Group is also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. |
Property, Equipment and Leasehold Improvements | Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements of $351.0 million and $750.4 million at November 30, 2018 and December 31, 2017 , respectively, are stated at cost, net of accumulated depreciation and amortization, and are included in Other assets in the Consolidated Statements of Financial Condition. The prior year amount, which was previously reported separately, has been reclassified to be consistent with the current year presentation. Depreciation and amortization are provided principally on the straight-line method over the estimated useful lives of the assets or, if less, the term of the underlying lease. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of whether an asset group is recoverable is based on management's estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value. If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value. During the twelve months ended December 31, 2016 , JETX Energy recorded impairment charges in Selling, general and other expenses of $56.3 million related to write-downs of unproved oil and gas properties. JETX Energy assesses its unproved oil and gas properties for impairment based on remaining lease terms, drilling results or future plans to develop acreage and they record impairment expense for any decline in value. In the third quarter of 2016, JETX Energy curtailed development of both its southern acreage in the East Eagle Ford and its Houston County acreage. As a result, an impairment was recorded for the difference between the carrying value and the estimated net realizable value of the acreage. Substantially all of our operating businesses sell products or services that are impacted by general economic conditions in the U.S. and to a lesser extent internationally. A worsening of current economic conditions could cause a decline in estimated future cash flows expected to be generated by our operations and investments. If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in intangible assets, property and equipment and other long-lived assets (for example, Jefferies Group, manufacturing, oil and gas production and development and certain associated company investments), impairment charges would have to be recorded. |
Intangible Assets, Net and Goodwill | Intangible Assets, Net and Goodwill Intangible Assets . Intangible assets deemed to have finite lives are generally amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in amortizable intangible assets, impairment charges would have to be recorded. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary. Impairment exists when the carrying amount exceeds its fair value. Fair value will be determined using valuation techniques consistent with what a market participant would use. All of our indefinite-lived intangible assets were recognized in connection with the Jefferies Group acquisition, and our annual impairment testing date for Jefferies Group is as of August 1. Goodwill. At acquisition, we allocate the cost of a business acquisition to the specific tangible and intangible assets acquired and liabilities assumed based upon their fair values. Significant judgments and estimates are often made by management to determine these values, and may include the use of appraisals, consideration of market quotes for similar transactions, use of discounted cash flow techniques or consideration of other information we believe to be relevant. Any excess of the cost of a business acquisition over the fair values of the net assets and liabilities acquired is recorded as goodwill, which is not amortized to expense. Substantially all of our goodwill was recognized in connection with the Jefferies Group acquisition. At least annually, and more frequently if warranted, we will assess whether goodwill has been impaired. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the reporting unit's goodwill. The fair values will be based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating fair value include market capitalization, price-to-book multiples of comparable exchange traded companies, multiples of merger and acquisitions of similar businesses and/or projected cash flows. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Our annual goodwill impairment testing date related to Jefferies Group is as of August 1. |
Inventories and Cost of Sales | Inventories and Cost of Sales Manufacturing inventories are stated at the lower of cost or net realizable value, with cost principally determined under the first-in-first-out method. Manufacturing cost of sales principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs. Inventories are classified as Other assets in the Consolidated Statements of Financial Condition. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realization of deferred tax assets is assessed, and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company uses the portfolio approach relating to the release of stranded tax effects recorded in accumulated other comprehensive income. Under the portfolio approach, the net unrealized gains or losses recorded in accumulated other comprehensive income would be eliminated only on the date the entire portfolio of available for sale securities is sold or otherwise disposed of. |
Share-based Compensation | Share-based Compensation Share-based awards are measured based on the fair value of the award as determined in accordance with GAAP and recognized over the required service or vesting period. Certain executive share-based awards contain market, performance and service conditions. Market conditions are incorporated into the grant-date fair value using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The fair value of options and warrants are estimated at the date of grant using the Black-Scholes option pricing model. We account for forfeitures as they occur, which results in dividends and dividend equivalents originally charged against retained earnings for forfeited shares to be reclassified to compensation expense in the period in which the forfeiture occurs. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated to U.S. dollars using the currency exchange rates at the end of the relevant period. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars, net of hedging gains or losses and taxes, if any, are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss) and classified as Accumulated other comprehensive income in the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. Gains or losses resulting from Jefferies Group's foreign currency transactions are included in Principal transactions revenues in the Consolidated Statements of Operations. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued. Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units ("RSUs") for which no future service is required. Diluted earnings per share is computed by dividing net earnings available to common shareholders plus dividends on dilutive mandatorily redeemable convertible preferred shares and interest on convertible notes by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share. Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security. As such, we calculate basic and diluted earnings per share under the two-class method. RSUs granted under the senior executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable. |
Securitization Activities | Securitization Activities Jefferies Group engages in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Transfers of financial assets to securitization vehicles are accounted for as sales when Jefferies Group has relinquished control over the transferred assets. The gain or loss on sale of such financial assets depends, in part, on the previous carrying amount of the assets involved in the transfer allocated between the assets sold and the retained interests, if any, based upon their respective fair values at the date of sale. Jefferies Group may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in Trading assets in the Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized in Principal transactions revenues in the Consolidated Statements of Operations. When a transfer of assets does not meet the criteria of a sale, the transfer is accounted for as a secured borrowing in Trading assets and Jefferies Group continues to recognize the assets of a secured borrowing, and recognize the associated financing in Other secured financings in the Consolidated Statements of Financial Condition. Another of our subsidiaries utilizes special purpose entities to securitize automobile loans receivables. These special purpose entities are variable interest entities ("VIEs") and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statements of Financial Condition. These secured borrowings do not have recourse to our subsidiary's general credit. |
Contingencies | Contingencies In the normal course of business, we have been named, from time to time, as a defendant in legal and regulatory proceedings. We are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We recognize a liability for a contingency when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the reasonable estimate of a probable loss is a range, we accrue the most likely amount of such loss, and if such amount is not determinable, then we accrue the minimum in the range as the loss accrual. The determination of the outcome and loss estimates requires significant judgment on the part of management, can be highly subjective and is subject to significant change with the passage of time as more information becomes available. Estimating the ultimate impact of litigation matters is inherently uncertain, in particular because the ultimate outcome will rest on events and decisions of others that may not be within our power to control. We do not believe that any of our current litigation will have a significant adverse effect on our consolidated financial position, results of operations or liquidity; however, if amounts paid at the resolution of litigation are in excess of recorded reserve amounts, the excess could be significant in relation to results of operations for that period. |
Fiscal year | On October 2, 2018, our Board of Directors approved a change to our fiscal year end from a calendar year basis to a fiscal year ending on November 30. Our 2018 fiscal year consists of the eleven month transition period beginning January 1, 2018 through November 30, 2018. Financial statements for 2017 and 2016 continue to be presented on the basis of our previous calendar year end. |
Accounting Developments | Accounting Developments - Adopted Accounting Standards Revenue Recognition. We adopted the new revenue standard as of January 1, 2018 and recognized an increase of $17.8 million after-tax to beginning retained earnings as the cumulative effect of adoption of accounting standards. The increase primarily relates to the recognition of $24.3 million of revenue previously deferred from the sale of real estate to HomeFed in 2014, offset by a decrease of $6.1 million related to Jefferies Group. For Jefferies Group, the impact of adoption primarily related to investment banking expenses that were deferred as of December 31, 2017 under the previously existing accounting guidance, which would have been expensed in prior periods under the new revenue standard and investment banking revenues that were previously recognized in prior periods, which would have been deferred as of December 31, 2017 under the new revenue standard. We elected to adopt the new guidance using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. Accordingly, the new revenue standard is applied prospectively in our financial statements from January 1, 2018 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The new revenue standard does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, and as a result, did not have an impact on the elements of our Consolidated Statements of Operations most closely associated with financial instruments, including Principal transactions revenues, Interest income and Interest expense. The new revenue standard primarily impacts Jefferies Group's revenue recognition and presentation accounting policies as follows: • Investment Banking Revenues. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. • Certain Capital Markets Revenues. Revenues associated with price stabilization activities as part of a securities underwriting were historically recognized as part of Investment banking revenues. Under the new revenue standard, revenues from these activities are recognized within Principal transactions revenues, as these revenues are not considered to be within the scope of the new standard. • Investment Banking Advisory Expenses. Historically, expenses associated with investment banking advisory assignments were deferred until reimbursed by the client, the related fee revenue is recognized or the engagement is otherwise concluded. Under the new revenue standard, expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. • Investment Banking Underwriting and Advisory Expenses. Expenses have historically been recorded net of client reimbursements and/or netted against revenues. Under the new revenue standard, all investment banking expenses will be recognized within their respective expense category in the Consolidated Statements of Operations and any expense reimbursements will be recognized as Investment banking revenues (i.e., expenses are no longer recorded net of client reimbursements and are not netted against revenues). • Asset Management Fees. In certain asset management fee arrangements, Jefferies Group and LAM receive performance-based fees, which vary with performance or, in certain cases, are earned when the return on assets under management exceed certain benchmark returns or other performance targets. Historically, performance fees have been accrued (or reversed) quarterly based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Under the new revenue standard, performance fees are considered variable as they are subject to fluctuation (e.g., based on market performance) and/or are contingent on a future event during the measurement period (e.g., exceeding a specified benchmark index) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. There was no significant impact as a result of applying the new revenue standard to our consolidated financial statements for the eleven months ended November 30, 2018, except as it relates to the presentation of Jefferies Group's investment banking expenses. The table below presents the impact of applying the new revenue recognition standard to the Consolidated Statements of Operations for the eleven months ended November 30, 2018 as a result of the change in presentation of investment banking expenses (in thousands): Eleven Months Ended November 30, 2018 As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard Revenues: Commissions and other fees $ 634,271 $ — $ 634,271 Principal transactions 232,224 — 232,224 Investment banking 1,904,870 131,789 1,773,081 Interest income 1,294,325 — 1,294,325 Manufacturing revenues 357,427 — 357,427 Other 586,611 — 586,611 Total revenues 5,009,728 131,789 4,877,939 Interest expense of Jefferies Group 1,245,694 — 1,245,694 Net revenues 3,764,034 131,789 3,632,245 Expenses: Compensation and benefits 1,862,782 — 1,862,782 Cost of sales 307,071 — 307,071 Floor brokerage and clearing fees 184,210 — 184,210 Interest expense 89,249 — 89,249 Depreciation and amortization 120,317 — 120,317 Selling, general and other expenses 961,328 131,789 829,539 Total expenses 3,524,957 131,789 3,393,168 Income from continuing operations before income taxes and income (loss) related to associated companies $ 239,077 $ — $ 239,077 Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. We adopted the new guidance as of January 1, 2018 with a cumulative effect increase to opening retained earnings of $27.6 million and a corresponding decrease to Accumulated other comprehensive income. The opening retained earnings adjustment is to recognize the unrealized gains we had for available for sale equity securities. Beginning in 2018, these available for sale equity securities are now reported as part of Trading assets, at fair value within the Consolidated Statements of Financial Condition. The adoption of the guidance on financial liabilities under the fair value option did not have a material impact on our consolidated financial statements. Statement of Cash Flows. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted both standards in the first quarter of 2018. Prior periods were retrospectively adjusted to conform to the current period's presentation. The adoption of the guidance did not have a material impact on our Consolidated Statements of Cash Flows. Upon adoption, we recorded decreases of $284.5 million and $36.4 million , respectively, in Net cash provided by operating activities and increases (decreases) of $(7.4) million and $3.4 million , respectively, in Net cash used for investing activities for the twelve months ended December 31, 2017 and 2016 related to reclassifying the changes in our restricted cash balance from operating and investing activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Retirement Benefits. In March 2017, the FASB issued new guidance for improving the presentation of net periodic pension costs in the statement of operations. The update also allows the service cost to be eligible for capitalization, when applicable. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. The adoption of this guidance resulted in the following adjustments to the Consolidated Statements of Operations for the twelve months ended December 31, 2017 and 2016 : a decrease of $3.0 million and $3.0 million , respectively, to Compensation and benefits expenses and an increase to Selling, general and other expenses of $3.0 million and $3.0 million , respectively. Compensation. In May 2017, the FASB issued new guidance providing clarity and reducing diversity in practice and cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Fair Value Measurement. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on fair value measurement by eliminating certain disclosure requirements for fair value measurements for all entities, requiring public entities to disclose certain new information and modifying some disclosure requirements. We early adopted this guidance in the third quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The right of use asset and lease liability will be measured initially using the present value of the remaining rental payments. A significant portion of the population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition have been identified; however, their initial measurement still remains under evaluation. We are currently modifying certain of our lease accounting systems to enable us to comply with the accounting requirements of this guidance. In July 2018, the FASB issued additional guidance on leases which allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption. The guidance is effective for annual and interim periods beginning after December 15, 2018. We plan on adopting the lease standard in the first quarter of fiscal 2020 with a cumulative-effect adjustment to opening retained earnings in the period of adoption. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Goodwill. In January 2017, the FASB issued new guidance for simplifying goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Derivatives and Hedging. In August 2017, the FASB issued new guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. The guidance is effective in the first quarter of fiscal 2020. We do not believe the new guidance will have a material impact on our consolidated financial statements. Defined Benefit Plans. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on defined benefit pension plans and other post-retirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Internal-Use Software. In August 2018, the FASB issued new guidance which amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Consolidation. In October 2018, the FASB issued new guidance which requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 (In thousands) Cash paid during the year for: Interest $ 1,377,781 $ 1,120,191 $ 957,140 Income tax payments (refunds), net $ 37,559 $ 15,361 $ (13,738 ) Supplemental cash flow information related to the Parent Company is as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Cash paid for: Interest $ 57,813 $ 57,813 $ 57,813 Income tax payments (refunds), net 32,576 1,440 (10,199 ) Non-cash investing activities: Investments contributed to subsidiary $ — $ 25,328 $ 423,009 Investments transferred from subsidiary — — 2,022 Dividends received from subsidiaries 8,450,147 32,792 — |
Change in Year End (Tables)
Change in Year End (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement | The following is selected financial data for the eleven month transition period ending November 30, 2018, and the comparable prior year period. Jefferies Group financial data is presented in each year based on the twelve months ended November 30. All other results are based on the eleven months ended November 30 for both years (in thousands, except per share amounts). 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: Income from continuing operations $ 0.82 $ 1.14 Income from discontinued operations, including gain on disposal 2.11 0.51 Net income $ 2.93 $ 1.65 Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: Income from continuing operations $ 0.81 $ 1.13 Income from discontinued operations, including gain on disposal 2.09 0.50 Net income $ 2.90 $ 1.63 |
Accounting Developments (Tables
Accounting Developments (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of Impact of Applying New Revenue Recognition Standard | The table below presents the impact of applying the new revenue recognition standard to the Consolidated Statements of Operations for the eleven months ended November 30, 2018 as a result of the change in presentation of investment banking expenses (in thousands): Eleven Months Ended November 30, 2018 As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard Revenues: Commissions and other fees $ 634,271 $ — $ 634,271 Principal transactions 232,224 — 232,224 Investment banking 1,904,870 131,789 1,773,081 Interest income 1,294,325 — 1,294,325 Manufacturing revenues 357,427 — 357,427 Other 586,611 — 586,611 Total revenues 5,009,728 131,789 4,877,939 Interest expense of Jefferies Group 1,245,694 — 1,245,694 Net revenues 3,764,034 131,789 3,632,245 Expenses: Compensation and benefits 1,862,782 — 1,862,782 Cost of sales 307,071 — 307,071 Floor brokerage and clearing fees 184,210 — 184,210 Interest expense 89,249 — 89,249 Depreciation and amortization 120,317 — 120,317 Selling, general and other expenses 961,328 131,789 829,539 Total expenses 3,524,957 131,789 3,393,168 Income from continuing operations before income taxes and income (loss) related to associated companies $ 239,077 $ — $ 239,077 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value | The following is a summary of our financial instruments, trading liabilities, short-term borrowings and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV (within trading assets) of $394.4 million and $590.1 million by level within the fair value hierarchy at November 30, 2018 and December 31, 2017 , respectively (in thousands): November 30, 2018 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 $ — $ 2,667,918 Corporate debt securities — 2,683,180 9,484 — 2,692,664 Collateralized debt obligations and collateralized loan obligations — 72,949 36,105 — 109,054 U.S. government and federal agency securities 1,789,614 56,592 — — 1,846,206 Municipal securities — 894,253 — — 894,253 Sovereign obligations 1,769,556 1,043,409 — — 2,812,965 Residential mortgage-backed securities — 2,163,629 19,603 — 2,183,232 Commercial mortgage-backed securities — 819,406 10,886 — 830,292 Other asset-backed securities — 239,381 53,175 — 292,556 Loans and other receivables — 2,056,593 46,985 — 2,103,578 Derivatives 34,841 2,539,943 5,922 (2,413,931 ) 166,775 Investments at fair value — — 396,254 — 396,254 FXCM term loan — — 73,150 — 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: U.S. government securities $ 1,072,856 $ — $ — $ — $ 1,072,856 Residential mortgage-backed securities — 210,518 — — 210,518 Commercial mortgage-backed securities — 15,642 — — 15,642 Other asset-backed securities — 110,870 — — 110,870 Total available for sale securities $ 1,072,856 $ 337,030 $ — $ — $ 1,409,886 Liabilities: Trading liabilities: Corporate equity securities $ 1,685,071 $ 1,444 $ — $ — $ 1,686,515 Corporate debt securities — 1,505,618 522 — 1,506,140 U.S. government and federal agency securities 1,384,295 — — — 1,384,295 Sovereign obligations 1,735,242 661,095 — — 2,396,337 Loans — 1,371,630 6,376 — 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 - structured notes $ — $ 485,425 $ 200,745 $ — $ 686,170 December 31, 2017 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,975,463 $ 60,300 $ 22,270 $ — $ 3,058,033 Corporate debt securities — 3,261,300 26,036 — 3,287,336 Collateralized debt obligations and collateralized loan obligations — 139,166 42,184 — 181,350 U.S. government and federal agency securities 1,269,230 39,443 — — 1,308,673 Municipal securities — 710,513 — — 710,513 Sovereign obligations 1,381,552 1,035,907 — — 2,417,459 Residential mortgage-backed securities — 1,453,294 26,077 — 1,479,371 Commercial mortgage-backed securities — 508,115 12,419 — 520,534 Other asset-backed securities — 217,111 61,129 — 278,240 Loans and other receivables — 1,620,581 47,304 — 1,667,885 Derivatives 165,396 3,323,278 9,295 (3,318,481 ) 179,488 Investments at fair value — 946 329,944 — 330,890 FXCM term loan — — 72,800 — 72,800 Total trading assets, excluding investments at fair value based on NAV $ 5,791,641 $ 12,369,954 $ 649,458 $ (3,318,481 ) $ 15,492,572 Available for sale securities: Corporate equity securities (2) $ 88,486 $ — $ — $ — $ 88,486 U.S. government securities 552,805 — — — 552,805 Residential mortgage-backed securities — 34,561 — — 34,561 Commercial mortgage-backed securities — 5,870 — — 5,870 Other asset-backed securities — 34,839 — — 34,839 Total available for sale securities $ 641,291 $ 75,270 $ — $ — $ 716,561 Liabilities: Trading liabilities: Corporate equity securities $ 1,721,267 $ 32,122 $ 48 $ — $ 1,753,437 Corporate debt securities — 1,688,825 522 — 1,689,347 U.S. government and federal agency securities 1,430,737 — — — 1,430,737 Sovereign obligations 1,216,643 956,992 — — 2,173,635 Commercial mortgage-backed securities — — 105 — 105 Loans — 1,148,824 3,486 — 1,152,310 Derivatives 249,361 3,480,506 16,041 (3,490,514 ) 255,394 Total trading liabilities $ 4,618,008 $ 7,307,269 $ 20,202 $ (3,490,514 ) $ 8,454,965 Short-term borrowings $ — $ 23,324 $ — $ — $ 23,324 Long-term debt - structured notes $ — $ 606,956 $ — $ — $ 606,956 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. (2) As of January 1, 2018, the Company adopted the FASB's new guidance that affects the accounting for equity investments and the presentation and disclosure requirements for financial instruments. At November 30, 2018 , equity investments are primarily classified as Trading assets, at fair value and the change in fair value of equity securities is now recognized through the Consolidated Statements of Operations. See Note 4 for additional information. |
Investments Measured At Fair Value Based On Net Asset Value | The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands). Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) November 30, 2018 Equity Long/Short Hedge Funds (2) $ 86,788 $ — (2) Equity Funds (3) 40,070 20,996 — Commodity Funds (4) 10,129 — Quarterly Multi-asset Fund (5) 256,972 — — Other funds (6) 400 — — Total $ 394,359 $ 20,996 December 31, 2017 Equity Long/Short Hedge Funds (2) $ 407,895 $ — (2) Equity Funds (3) 26,798 19,084 — Multi-asset Fund (5) 154,805 — — Other funds (6) 606 — — Total $ 590,104 $ 19,084 (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, in primarily equity securities in domestic and international markets in both the public and private sectors. At December 31, 2017 , 73% of these investments were redeemable with 10 business days or less prior written notice; these investments were primarily liquidated during 2018. At November 30, 2018 and December 31, 2017 , 17% and 15% , respectively, of these investments are redeemable with 60 days prior written notice. (3) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. 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 ten years. (4) This category includes investments in hedge funds that invest, 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, 2018 and December 31, 2017 , investments representing approximately 15% and 12% , respectively, of the fair value of investments in this category are redeemable with 30 days prior written notice. (6) This category includes investments in funds that invest 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 fund of funds that invest in various private equity funds that are managed by Jefferies Group and have no redemption provisions. These investments are gradually being liquidated or Jefferies Group has requested redemption, however, Jefferies Group is unable to estimate when these funds will be received. |
Summary Of Changes In Fair Value Of Financial Assets And Liabilities Classified As Level 3 | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the twelve months ended December 31, 2016 (in thousands): Twelve Months Ended December 31, 2016 Balance, December 31, 2015 Total gains (losses) (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance at December 31, 2016 Changes in unrealized gains (losses) relating to instruments still held at December 31, 2016 (1) Assets: Trading assets: Corporate equity securities $ 40,906 $ (8,463 ) $ 3,365 $ (49 ) $ (671 ) $ — $ (13,349 ) $ 21,739 $ 291 Corporate debt securities 25,876 (16,230 ) 27,242 (29,347 ) (7,223 ) — 24,687 25,005 (18,799 ) CDOs and CLOs 85,092 (14,918 ) 52,316 (69,394 ) (2,750 ) — 4,008 54,354 (7,628 ) Municipal securities — (1,462 ) — — — — 28,719 27,257 (1,462 ) Sovereign obligations 120 5 — (125 ) — — — — — Residential mortgage-backed securities 70,263 (9,612 ) 623 (12,249 ) (931 ) — (9,322 ) 38,772 (1,095 ) Commercial mortgage-backed securities 14,326 (7,550 ) 3,132 (2,024 ) (2,229 ) — 14,925 20,580 (7,243 ) Other asset-backed securities 42,925 (14,381 ) 133,986 (102,952 ) (8,769 ) — (9,898 ) 40,911 (18,056 ) Loans and other receivables 189,289 (42,566 ) 75,264 (69,262 ) (46,851 ) — (24,002 ) 81,872 (52,003 ) Investments at fair value 199,794 54,538 29,728 (542 ) (1,107 ) — 31,948 314,359 54,608 Investment in FXCM (2) 625,689 (54,634 ) — — (406,555 ) — — 164,500 (1,014 ) Liabilities: Trading liabilities: Corporate equity securities $ 38 $ — $ — $ 313 $ (38 ) $ — $ — $ 313 $ — Corporate debt securities — (27 ) — 550 — — — 523 — Loans 10,469 — — 378 — — (10,469 ) 378 — Net derivatives (3) (242 ) (1,760 ) — 11,101 31 2,067 (7,756 ) 3,441 (6,458 ) Other secured financings 544 (126 ) — — — — — 418 (126 ) (1) Realized and unrealized gains (losses) are reported in Principal transactions revenues in the Consolidated Statements of Operations. (2) Includes $334.5 million related to the settlement of our participation rights for equity ownership in FXCM on September 1, 2016. We classify the equity ownership as Loans to and investments in associated companies at November 30, 2018 and December 31, 2017 . (3) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the twelve months ended December 31, 2017 (in thousands): Twelve Months Ended December 31, 2017 Balance, December 31, 2016 Total gains (losses) (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance at 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 $ — $ (2,147 ) $ 22,270 $ 2,606 Corporate debt securities 25,005 (3,723 ) 36,850 (34,077 ) (1,968 ) — 3,949 26,036 (3,768 ) CDOs and CLOS 54,354 (27,238 ) 112,239 (101,226 ) (367 ) — 4,422 42,184 (20,262 ) Municipal securities 27,257 (1,547 ) — (25,710 ) — — — — — Residential mortgage- backed securities 38,772 (10,817 ) 6,805 (26,193 ) (115 ) — 17,625 26,077 (7,201 ) Commercial mortgage-backed securities 20,580 (5,346 ) 3,275 (5,263 ) (1,018 ) — 191 12,419 (6,976 ) Other asset-backed securities 40,911 (17,705 ) 77,508 (8,613 ) (25,799 ) — (5,173 ) 61,129 (12,562 ) Loans and other receivables 81,872 24,794 63,768 (53,095 ) (34,622 ) — (35,413 ) 47,304 17,451 Investments at fair value 314,359 20,975 18,528 (22,818 ) (1,100 ) — — 329,944 22,999 Investment in FXCM 164,500 23,161 — — (114,861 ) — — 72,800 1,070 Liabilities: Trading liabilities: Corporate equity securities $ 313 $ 60 $ (373 ) $ 48 $ — $ — $ — $ 48 $ — Corporate debt securities 523 (1 ) — — — — — 522 1 Commercial mortgage-backed securities — 105 — — — — — 105 (105 ) Loans 378 196 (385 ) 2,485 — — 812 3,486 (2,639 ) Net derivatives (2) 3,441 (1,638 ) — — 5,558 456 (1,071 ) 6,746 (17,740 ) Other secured financings 418 (418 ) — — — — — — — (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. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the eleven months ended November 30, 2018 (in thousands): Eleven Months Ended November 30, 2018 Balance, December 31, 2017 Total gains (losses) (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance at November 30, 2018 Changes in unrealized gains/losses included in earnings 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 ) $ — $ 75 $ 52,192 $ 23,665 Corporate debt securities 26,036 (439 ) 10,352 (23,364 ) (1,679 ) — (1,422 ) 9,484 (2,606 ) CDOs and CLOs 42,184 (16,258 ) 356,650 (353,330 ) (10,247 ) — 17,106 36,105 (9,495 ) Residential mortgage-backed securities 26,077 (6,970 ) 3,118 (12,816 ) (513 ) — 10,707 19,603 521 Commercial mortgage-backed securities 12,419 (2,186 ) 1,436 (471 ) (16,624 ) — 16,312 10,886 (4,000 ) Other asset-backed securities 61,129 (9,934 ) 706,846 (677,220 ) (27,641 ) — (5 ) 53,175 (5,283 ) Loans and other receivables 47,304 (5,137 ) 149,228 (130,832 ) (15,311 ) — 1,733 46,985 (8,457 ) Investments at fair value 329,944 76,636 9,798 (17,570 ) — — (2,554 ) 396,254 76,042 Investment in FXCM 72,800 18,616 — — (18,266 ) — — 73,150 7,723 Liabilities: Trading liabilities: Corporate equity securities $ 48 $ — $ — $ — $ — $ — $ (48 ) $ — $ — Corporate debt securities 522 — — — — — — 522 — Commercial mortgage-backed securities 105 (105 ) — — — — — — — Loans 3,486 84 (4,626 ) 7,432 — — — 6,376 (28 ) Net derivatives (2) 6,746 (3,237 ) (17 ) 14,920 (1,335 ) — 4,537 21,614 (646 ) Long-term debt (1) — (30,347 ) — — — 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 our 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 30, 2018 were gains of $19.4 million . (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. |
Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements | The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. November 30, 2018 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 43,644 Non-exchange traded securities Market approach Price $1 to $75 $12.0 Transaction level $47 — Corporate debt securities $ 9,484 Market approach Estimated recovery percentage 46% — Transaction level $80 — CDOs and CLOs $ 36,105 Discounted cash flows Constant prepayment rate 10% to 20% 18 % Constant default rate 1% to 2% 2 % Loss severity 25% to 30% 26 % Discount rate/yield 11% to 16% 14 % Scenario analysis Estimated recovery percentage 2% to 41% 23 % Residential mortgage-backed securities $ 19,603 Discounted cash flows Cumulative loss rate 4% — Duration (years) 13 years — Discount rate/yield 3% — Loss severity 0% — Market approach Price $100 — Commercial mortgage-backed securities $ 9,444 Discounted cash flows Cumulative loss rate 8% to 85% 45 % Duration (years) 1 year to 3 years 1 year Discount rate/yield 2% to 15% 6 % Loss severity 64% — Scenario analysis Estimated recovery percentage 26% — Price $49 — Other asset-backed securities $ 53,175 Discounted cash flows Cumulative loss rate 12% to 30% 22 % Duration (years) 1 year to 2 years 1 year Discount rate/yield 6% to 12% 8 % Market approach Price $100 — Loans and other receivables $ 46,078 Market approach Price $50 to $100 $96.0 Scenario analysis Estimated recovery percentage 13% to 117% 105 % Derivatives $ 4,602 Total return swaps Market approach Price $97 — Interest rate swaps Market approach Price $20 — Investments at fair value $ 368,231 Private equity securities Market approach Price $3 to $250 $108.0 Transaction level $169 — Scenario analysis Discount rate/yield 20% — Revenue growth 0% — Contingent claims analysis Volatility 25% to 35% 30 % Duration (years) 4 years — Investment in FXCM $ 73,150 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 $74.0 Derivatives $ 27,536 Equity options Option model/default rate Default probability 0% — Volatility benchmarking Volatility 39% to 62% 50 % Interest rate swaps Market approach Price $20 — Total return swaps Market approach Price $97 — Long-term debt $ 200,745 Structured notes Market approach Price $78 to $94 $86.0 Price €68 to €110 €96.0 December 31, 2017 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 18,109 Non-exchange traded securities Market approach Price $3 to $75 $33.0 Underlying stock price $6 — Comparable pricing Comparable asset price $7 — Corporate debt securities $ 26,036 Convertible bond model Discount rate/yield 8% — Volatility 40% — Market approach Estimated recovery percentage 17% — Price $10 — CDOs and CLOs $ 38,845 Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25% to 30% 26 % Discount rate/yield 3% to 26% 12 % Scenario analysis Estimated recovery percentage 8% to 45% 26 % Residential mortgage-backed securities $ 26,077 Discounted cash flows Cumulative loss rate 3% to 19% 10 % Duration (years) 2 years to 4 years 3 years Discount rate/yield 6% to 10% 8 % Commercial mortgage-backed securities $ 12,419 Discounted cash flows Discount rate/yield 2% to 26% 12 % Cumulative loss rate 8% to 65% 44 % Duration (years) 1 year to 3 years 2 years Scenario analysis Estimated recovery percentage 26% to 32% 28 % Price $52 to $56 $54.0 Other asset-backed securities $ 61,129 Discounted cash flows Cumulative loss rate 0% to 33% 23 % Duration (years) 1 year to 6 years 2 years Discount rate/yield 5% to 39% 9 % Market approach Price $100 — Scenario analysis Estimated recovery percentage 14% — Loans and other receivables $ 46,121 Market approach Estimated recovery percentage 76% — Price $54 to $100 $95.0 Scenario analysis Estimated recovery percentage 13% to 107% 78 % Derivatives $ 9,295 Total return swaps Market approach Price $101 to $106 $103.0 Interest rate swaps Market approach Credit spread 800 bps — Investments at fair value $ 110,010 Private equity securities Market approach Transaction level $3 to $250 $172.0 Price $7 — Discount rate 20% — Investment in FXCM $ 72,800 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 1 year 0.2 years Trading Liabilities Derivatives $ 16,041 Equity options Option model/default rate Default probability 0% — Unfunded commitments Market approach Price $99 — Total return swaps Market approach Price $101 to $106 $103.0 Variable funding note swaps Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25% — Discount rate/yield 26% — |
Summary Of Gains (Losses) Due To Changes In Instrument Specific Credit Risk For Loans and Other Receivables And Loan Commitments Measured At Fair Value Under Fair Value Option | The following is a summary of Jefferies Group's gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on long-term debt and short-term borrowings measured at fair value under the fair value option (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Financial instruments owned: Loans and other receivables $ (3,856 ) $ 22,088 $ (68,812 ) Financial instruments sold: Loans (46 ) — 9 Loan commitments (739 ) 230 5,509 Long-term debt: Changes in instrument specific credit risk (1) 38,064 (34,609 ) (10,745 ) Other changes in fair value (2) 48,748 47,291 30,995 Short-term borrowings: Other changes in fair value (2) — (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. |
Summary Of Amount By Which Contractual Principal Exceeds Fair Value For Loans And Other Receivables Measured At Fair Value Under Fair Value Option | The following is a summary of the amount by which contractual principal exceeds fair value for loans and other receivables, long-term debt and short-term borrowings measured at fair value under the fair value option (in thousands): November 30, 2018 December 31, 2017 Financial instruments owned: Loans and other receivables (1) $ 806,798 $ 752,076 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) 24,389 159,462 Long-term debt and short-term borrowings 114,669 32,839 (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 $20.5 million and $38.7 million at November 30, 2018 and December 31, 2017 , respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure | The following tables also provide information regarding (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands, except contract amounts): Assets Liabilities Fair Value Number of Contracts (1) Fair Value Number of Contracts (1) November 30, 2018 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 29,647 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 796,493 35,652 $ 904,043 69,305 Foreign exchange contracts 311,270 10,086 314,989 1,602 Equity contracts 1,410,148 2,109,810 2,377,133 1,782,600 Commodity contracts 37,823 8,546 1,717 5,683 Credit contracts 24,972 130 13,174 93 Total 2,580,706 3,611,056 Counterparty/cash-collateral netting (2) (2,413,931 ) (2,513,050 ) Total derivatives not designated as accounting hedges $ 166,775 $ 1,098,006 Total per Consolidated Statement of Financial Condition (3) $ 166,775 $ 1,127,653 December 31, 2017 Derivatives designated as accounting hedges - interest rate contracts (4) $ — — $ 2,420 1 Derivatives not designated as accounting hedges: Interest rate contracts (4) $ 1,717,058 38,941 $ 1,708,776 12,828 Foreign exchange contracts 366,541 6,463 349,512 4,612 Equity contracts 1,373,016 2,728,750 1,638,258 2,118,526 Commodity contracts 3,093 7,249 5,141 6,047 Credit contracts 38,261 130 41,801 191 Total 3,497,969 3,743,488 Counterparty/cash-collateral netting (2)(4) (3,318,481 ) (3,490,514 ) Total derivatives not designated as accounting hedges $ 179,488 $ 252,974 Total per Consolidated Statement of Financial Condition (3) $ 179,488 $ 255,394 (1) 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 our Consolidated Statements of Financial Condition. (2) Amounts netted include both netting by counterparty and for cash collateral paid or received. (3) 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. (4) Pursuant to a rule change by the London Clearing House in the first fiscal quarter of 2018, variation margin exchanged each day with this clearing organization on certain interest rate derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of December 31, 2017 of approximately $800 million , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . |
Unrealized And Realized Gains (Losses) On Derivative Contracts | The following table provides information related to gains (losses) recognized in Interest expense of Jefferies Group in the Consolidated Statements of Operations on a fair value hedge (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Interest rate swaps $ (25,539 ) $ (2,091 ) $ — Long-term debt 27,363 8,124 — Total $ 1,824 $ 6,033 $ — The following table presents unrealized and realized gains (losses) on derivative contracts which are primarily recognized in Principal transactions revenues in the Consolidated Statements of Operations, which are utilized in connection with our client activities and our economic risk management activities (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Interest rate contracts $ 67,291 $ 3,171 $ (36,559 ) Foreign exchange contracts 226 4,376 20,401 Equity contracts (267,187 ) (319,775 ) (635,305 ) Commodity contracts 21,785 (9,049 ) (3,339 ) Credit contracts 449 1,959 5,013 Total $ (177,436 ) $ (319,318 ) $ (649,789 ) |
Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities | The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at November 30, 2018 (in thousands): OTC Derivative Assets (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross- Maturity Netting (4) Total Commodity swaps, options and forwards $ 4,006 $ 6,185 $ — $ (1,445 ) $ 8,746 Equity swaps and options 1,769 13,966 4,934 (1,889 ) 18,780 Credit default swaps 66 12,060 3,984 (899 ) 15,211 Total return swaps 95,130 19,519 — (1,786 ) 112,863 Foreign currency forwards, swaps and options 39,162 15,942 — (12,528 ) 42,576 Fixed income forwards 3,911 — — — 3,911 Interest rate swaps, options and forwards 27,851 93,303 103,165 (77,874 ) 146,445 Total $ 171,895 $ 160,975 $ 112,083 $ (96,421 ) 348,532 Cross product counterparty netting (18,743 ) Total OTC derivative assets included in Trading assets $ 329,789 (1) At November 30, 2018 , we held exchange traded derivative assets, other derivatives assets and other credit agreements with a fair value of $42.2 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. At November 30, 2018 , cash collateral received was $205.3 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. OTC Derivative Liabilities (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Commodity swaps, options and forwards $ 1,074 $ 371 $ — $ (1,445 ) $ — Equity swaps and options 52,466 83,938 35,730 (1,889 ) 170,245 Credit default swaps 164 1,197 1,548 (899 ) 2,010 Total return swaps 64,296 11,549 — (1,786 ) 74,059 Foreign currency forwards, swaps and options 43,593 15,546 — (12,528 ) 46,611 Interest rate swaps, options and forwards 30,518 135,874 196,171 (77,874 ) 284,689 Total $ 192,111 $ 248,475 $ 233,449 $ (96,421 ) 577,614 Cross product counterparty netting (18,743 ) Total OTC derivative liabilities included in Trading liabilities $ 558,871 (1) At November 30, 2018 , we held exchange traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $873.5 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. At November 30, 2018 , cash collateral pledged was $304.7 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 With Respect To Fair Value Of OTC Derivatives Assets | At November 30, 2018 , the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands): Counterparty credit quality (1): A- or higher $ 163,656 BBB- to BBB+ 21,222 BB+ or lower 119,713 Unrated 25,198 Total $ 329,789 (1) Jefferies Group utilizes internal credit ratings determined by the Jefferies Group Risk Management department. Credit ratings determined by Jefferies Group Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. |
Credit Related Derivative Contracts | The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional November 30, 2018 Credit protection sold: Index credit default swaps $ 25.7 $ 167.4 $ — $ 193.1 Single name credit default swaps 57.7 84.5 3.0 145.2 December 31, 2017 Credit protection sold: Index credit default swaps $ 3.0 $ 126.0 $ — $ 129.0 Single name credit default swaps 129.1 89.1 — 218.2 |
Derivative Instruments With Contingent Features | The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts posted or received in the normal course of business and the potential collateral Jefferies Group would have been required to return and/or post additionally to its counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): November 30, 2018 December 31, 2017 Derivative instrument liabilities with credit-risk-related contingent features $ 93.5 $ 95.1 Collateral posted (61.5 ) (86.4 ) Collateral received 91.5 5.6 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 123.3 14.3 (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. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Collateralized Transactions [Abstract] | |
Schedule of Collateralized Financing Transactions | The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged and remaining contractual maturity (in thousands): Collateral Pledged Securities Lending Arrangements Repurchase Agreements Total November 30, 2018 Corporate equity securities $ 1,505,218 $ 487,124 $ 1,992,342 Corporate debt securities 333,221 1,853,309 2,186,530 Mortgage- and asset-backed securities 249 2,820,543 2,820,792 U.S. government and federal agency securities — 8,181,947 8,181,947 Municipal securities — 604,274 604,274 Sovereign securities — 2,945,521 2,945,521 Loans and other receivables — 300,768 300,768 Total $ 1,838,688 $ 17,193,486 $ 19,032,174 December 31, 2017 Corporate equity securities $ 2,353,798 $ 214,413 $ 2,568,211 Corporate debt securities 470,908 2,336,702 2,807,610 Mortgage- and asset-backed securities — 2,562,268 2,562,268 U.S. government and federal agency securities 19,205 11,792,534 11,811,739 Municipal securities — 444,861 444,861 Sovereign securities — 2,023,530 2,023,530 Loans and other receivables — 454,941 454,941 Total $ 2,843,911 $ 19,829,249 $ 22,673,160 Contractual Maturity Overnight and Continuous Up to 30 Days 31 to 90 Days Greater than 90 Days Total November 30, 2018 Securities lending arrangements $ 807,347 $ — $ 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 December 31, 2017 Securities lending arrangements $ 1,676,940 $ — $ 741,971 $ 425,000 $ 2,843,911 Repurchase agreements 10,780,474 4,058,228 3,211,464 1,779,083 19,829,249 Total $ 12,457,414 $ 4,058,228 $ 3,953,435 $ 2,204,083 $ 22,673,160 |
Securitization Activities (Tabl
Securitization Activities (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Securitization Activities [Abstract] | |
Activity Related To Securitizations Accounted For As Sales | The following table presents activity related to Jefferies Group's securitizations that were accounted for as sales in which it had continuing involvement (in millions): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Transferred assets $ 7,159.3 $ 4,552.9 $ 5,786.0 Proceeds on new securitizations 7,165.3 4,594.5 5,809.0 Cash flows received on retained interests 48.5 28.7 28.2 |
Summary Of Retained Interests In SPEs | The following table summarizes Jefferies Group's retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions): November 30, 2018 December 31, 2017 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 13,633.5 $ 365.3 $ 6,383.5 $ 28.2 U.S. government agency commercial mortgage-backed securities 2,027.6 185.6 2,075.7 81.4 CLOs 3,512.0 20.9 3,957.8 20.3 Consumer and other loans 604.1 48.9 247.6 47.8 |
Available for Sale Securities_2
Available for Sale Securities and Other Investments (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Investments [Abstract] | |
Schedule of Available for Sale Securities | The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value November 30, 2018 Bonds and notes: 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 — 426 15,642 Other asset-backed securities 111,447 1 578 110,870 Total fixed maturities 1,411,762 378 2,254 1,409,886 Total Available for sale securities $ 1,411,762 $ 378 $ 2,254 $ 1,409,886 December 31, 2017 Bonds and notes: U.S. government securities $ 552,847 $ — $ 42 $ 552,805 Residential mortgage-backed securities 34,381 272 92 34,561 Commercial mortgage-backed securities 5,857 17 4 5,870 Other asset-backed securities 34,837 46 44 34,839 Total fixed maturities 627,922 335 182 628,075 Equity securities: Common stocks: Banks, trusts and insurance companies 35,071 17,500 — 52,571 Industrial, miscellaneous and all other 17,504 18,411 — 35,915 Total equity securities 52,575 35,911 — 88,486 Total Available for sale securities $ 680,497 $ 36,246 $ 182 $ 716,561 The amortized cost and estimated fair value of investments classified as available for sale at November 30, 2018 , by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 1,073,038 $ 1,072,856 1,073,038 1,072,856 Mortgage-backed and asset-backed securities 338,724 337,030 $ 1,411,762 $ 1,409,886 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Assets And Liabilities Of Consolidated VIEs | The following table presents information about the assets and liabilities of our consolidated securitization vehicles VIEs, which are presented in our Consolidated Statements of Financial Condition in the respective asset and liability categories (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. November 30, 2018 December 31, 2017 Cash $ — $ 11.7 Financial instruments owned — 37.6 Securities purchased under agreements to resell (1) 883.1 729.3 Receivables 626.0 318.1 Other 78.4 15.5 Total assets $ 1,587.5 $ 1,112.2 Other secured financings (2) $ 1,535.3 $ 1,073.5 Other (3) 45.9 38.3 Total liabilities $ 1,581.2 $ 1,111.8 (1) Securities purchased under agreements to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation. (2) Approximately $1.0 million and $44.1 million of the secured financing represent amounts held by Jefferies Group in inventory and are eliminated in consolidation at November 30, 2018 and December 31, 2017 , respectively. (3) Includes $44.1 million and $32.0 million at November 30, 2018 and December 31, 2017 , respectively, of intercompany payables that are eliminated in consolidation. |
Non-Consolidated Variable Interest Entities | The following tables present information about our variable interests in nonconsolidated VIEs (in millions): Financial Statement Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities November 30, 2018 CLOs $ 45.2 $ — $ 571.4 $ 3,281.9 Consumer loan vehicles 462.1 — 807.1 3,273.1 Related party private equity vehicles 35.5 — 53.5 108.3 Other investment vehicles 203.6 — 214.7 5,719.1 Total $ 746.4 $ — $ 1,646.7 $ 12,382.4 December 31, 2017 CLOs $ 168.1 $ 8.9 $ 1,030.4 $ 5,364.3 Consumer loan vehicles 254.8 — 759.8 2,322.7 Related party private equity vehicles 23.7 — 45.4 75.0 Other investment vehicles 133.0 — 142.0 4,624.9 Total $ 579.6 $ 8.9 $ 1,977.6 $ 12,386.9 |
Loans to and Investments in A_2
Loans to and Investments in Associated Companies (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Loans To And Investments In Associated Companies | A summary of Loans to and investments in associated companies for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 accounted for under the equity method of accounting is as follows (in thousands): 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 $ — $ 59,138 $ 13,955 $ — $ 728,560 National Beef (2) — 110,049 — (48,656 ) 592,237 653,630 Berkadia (3) 210,594 80,092 20,001 (65,197 ) (262 ) 245,228 FXCM (4) 158,856 (83,174 ) — — (651 ) 75,031 Garcadia Companies (5) 179,143 21,646 — (26,962 ) (173,827 ) — Linkem 192,136 (20,534 ) — 542 (6,987 ) 165,157 HomeFed 341,874 (4,332 ) — — — 337,542 Golden Queen (6) 105,005 (51,990 ) — 10,941 — 63,956 54 Madison (7) 123,010 11,288 — (47,224 ) — 87,074 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 $ — $ 90,204 $ 74,799 $ — $ 655,467 Jefferies LoanCore (8) 154,731 — 22,368 (3,994 ) (173,105 ) — Berkadia 184,443 93,801 — (67,384 ) (266 ) 210,594 FXCM (4) 336,258 (177,644 ) — — 242 158,856 Garcadia Companies 185,815 48,198 — (54,870 ) — 179,143 Linkem 154,000 (32,561 ) — 31,996 38,701 192,136 HomeFed 302,231 7,725 — 31,918 — 341,874 Golden Queen (6) 111,302 (7,733 ) — 1,436 — 105,005 54 Madison (7) (9) 161,400 (6,224 ) — 35,204 (67,370 ) 123,010 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 Loans to and investments in associated companies as of December 31, 2015 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, 2016 Jefferies Finance $ 528,575 $ — $ (1,761 ) $ (36,350 ) $ — $ 490,464 Jefferies LoanCore 288,741 — 21,221 (155,231 ) — 154,731 Berkadia 190,986 94,201 — (100,766 ) 22 184,443 FXCM (4) — 1,919 — — 334,339 336,258 Garcadia Companies 172,660 52,266 — (39,111 ) — 185,815 Linkem 150,149 (22,867 ) — 33,303 (6,585 ) 154,000 HomeFed 275,378 23,893 — 2,960 — 302,231 Golden Queen (6) 114,323 (3,021 ) — — — 111,302 54 Madison (9) — 4,255 — 153,503 3,642 161,400 Other 36,557 3,952 (2,276 ) 9,622 (3,401 ) 44,454 Total $ 1,757,369 $ 154,598 $ 17,184 $ (132,070 ) $ 328,017 $ 2,125,098 (1) Primarily classified in Investment banking revenues and Other revenues. (2) As discussed more fully in Notes 1 and 28, in June 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our 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 account 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. (3) In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. (4) As further described in Note 5, in 2016, we amended the terms of our loan and associated rights with FXCM. Through the amendments, we converted our participation rights for a 50% voting interest in FXCM. 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 our Consolidated Statements of Financial Condition. (5) 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. (6) At November 30, 2018 and December 31, 2017 and 2016 , the balance reflects $15.1 million , $30.5 million and $32.8 million , respectively, related to a noncontrolling interest. (7) 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. (8) On October 31, 2017, Jefferies Group sold all of its membership interests in Jefferies LoanCore for approximately $173.1 million . (9) At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests. |
Schedule Of Summarized Data For Investments In Associated Companies | The following table provides summarized data for associated companies as of November 30, 2018 and December 31, 2017 and for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands): November 30, 2018 December 31, 2017 Assets $ 17,050,564 $ 16,340,643 Liabilities 11,752,273 11,920,465 Noncontrolling interest 154,963 169,274 Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Revenues $ 7,694,612 $ 4,883,063 $ 4,275,016 Income from continuing operations before extraordinary items 852,649 503,489 422,167 Net income 798,615 438,881 430,291 The Company's income related to associated companies 130,685 34,494 171,782 |
Financial Statement Offsetting
Financial Statement Offsetting (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Offsetting [Abstract] | |
Summary Of Offsetting Assets And Liabilities | The following table provides information regarding derivative contracts, repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position. Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) (In thousands) Assets at November 30, 2018 Derivative contracts $ 2,580,706 $ (2,413,931 ) $ 166,775 $ — $ — $ 166,775 Securities borrowing arrangements 6,538,212 — 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 Derivative contracts $ 3,640,703 $ (2,513,050 ) $ 1,127,653 $ — $ — $ 1,127,653 Securities lending arrangements 1,838,688 — 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 Assets at December 31, 2017 Derivative contracts $ 3,497,969 $ (3,318,481 ) $ 179,488 $ — $ — $ 179,488 Securities borrowing arrangements 7,721,803 — 7,721,803 (966,712 ) (1,032,629 ) 5,722,462 Reverse repurchase agreements 14,858,297 (11,168,738 ) 3,689,559 (463,973 ) (3,207,147 ) 18,439 Liabilities at December 31, 2017 Derivative contracts $ 3,745,908 $ (3,490,514 ) $ 255,394 $ — $ — $ 255,394 Securities lending arrangements 2,843,911 — 2,843,911 (966,712 ) (1,795,408 ) 81,791 Repurchase agreements 19,829,249 (11,168,738 ) 8,660,511 (463,973 ) (7,067,512 ) 1,129,026 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty's 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's default, but which are not netted in the balance sheet because other netting provisions of GAAP are not met. Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received. (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's rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At November 30, 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. At December 31, 2017 , amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets and goodwill | A summary of intangible assets, net and goodwill is as follows (in thousands): November 30, 2018 December 31, 2017 Indefinite lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,524 $ 8,551 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $102,579 and $230,074 67,894 347,767 Trademarks and tradename, net of accumulated amortization of $21,086 and $95,627 107,262 293,851 Supply contracts, net of accumulated amortization of $0 and $57,440 — 86,160 Other, net of accumulated amortization of $4,339 and $3,885 4,611 4,701 Total intangible assets, net 188,291 741,030 Goodwill: National Beef — 14,991 Jefferies Group 1,698,381 1,703,300 Other operations 3,459 3,859 Total goodwill 1,701,840 1,722,150 Total intangible assets, net and goodwill $ 1,890,131 $ 2,463,180 |
Schedule of amortization expense | The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): 2019 $ 13,439 2020 13,439 2021 13,085 2022 10,110 2023 8,981 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Jefferies Group's short-term borrowings, which mature in one year or less, are as follows (in thousands): November 30, 2018 December 31, 2017 Bank loans (1) $ 330,942 $ 304,651 Floating rate puttable notes 56,550 108,240 Equity-linked notes — 23,324 Total short-term borrowings $ 387,492 $ 436,215 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York Mellon and Jefferies Group. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | The principal amount (net of unamortized discounts, premiums and debt issuance costs), stated interest rate and maturity date of outstanding debt are as follows (dollars in thousands): November 30, 2018 December 31, 2017 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 743,397 $ 742,348 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,719 246,673 Total long-term debt – Parent Company 990,116 989,021 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 5.125% Senior Notes, due April 13, 2018, $0 and $678,300 principal — 682,338 8.5% Senior Notes, due July 15, 2019, $680,800 principal 699,659 728,872 2.375% Euro Medium Term Notes, due May 20, 2020, $565,500 and $594,725 principal 564,702 593,334 6.875% Senior Notes, due April 15, 2021, $750,000 principal 791,814 808,157 2.25% Euro Medium Term Notes, due July 13, 2022, $4,524 and $4,758 principal 4,243 4,389 5.125% Senior Notes, due January 20, 2023, $600,000 principal 612,928 615,703 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 709,484 736,357 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 373,669 375,794 3.875% Convertible Senior Debentures, due November 1, 2029, $0 and $324,779 principal — 324,779 4.15% Senior Notes, due January 23, 2030, $1,000,000 and $0 principal 987,788 — 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,662 512,040 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,625 420,990 Structured Notes (2) (3) 686,170 614,091 Jefferies Group Revolving Credit Facility 183,539 — National Beef Reducing Revolver Loan — 120,000 National Beef Revolving Credit Facility — 76,809 Foursight Capital Credit Facilities — 170,455 Other 81,164 112,654 Total long-term debt – subsidiaries 6,627,447 6,896,762 Long-term debt $ 7,617,563 $ 7,885,783 (1) Amounts include gains of $27.4 million and $8.1 million during the eleven months ended November 30, 2018 and twelve months ended December 31, 2017 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Notes 2 and 5 for further information. (2) Includes $686.2 million and $607.0 million at fair value at November 30, 2018 and December 31, 2017 , respectively. 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 and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. (3) Of the $686.2 million of structured notes at November 30, 2018 , $5.7 million matures in 2019, $27.3 million matures in 2022 and the remaining $653.2 million matures in 2024 or thereafter. |
Schedule of Annual Mandatory Redemptions of Long-term Debt | The aggregate annual mandatory redemptions of all long-term debt during the five year period ending November 30, 2023 are as follows (in millions): 2019 $ 690.2 2020 565.5 2021 935.0 2022 32.5 2023 1,429.0 |
Mezzanine Equity (Tables)
Mezzanine Equity (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Schedule Of Redeemable Noncontrolling Interests | The following table shows the activity within redeemable noncontrolling interests related to National Beef (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Balance, beginning of year $ 412,128 $ 321,962 Income allocated to redeemable noncontrolling interests 37,141 85,277 Distributions to redeemable noncontrolling interests (70,681 ) (90,048 ) Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital 21,404 94,937 Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation (237,669 ) — Deconsolidation of National Beef (162,323 ) — Balance, end of year $ — $ 412,128 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Share-based Compensation [Abstract] | |
Activity of Restricted Stock | The following table details the activity in restricted stock during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts): Restricted Stock Weighted- Average Grant Date Fair Value Balance at January 1, 2016 2,004 $ 24.56 Grants 356 $ 18.23 Forfeited (24 ) $ 26.90 Fulfillment of service requirement (974 ) $ 25.65 Balance at December 31, 2016 1,362 $ 22.09 Grants 391 $ 23.65 Forfeited — $ — Fulfillment of service requirement (611 ) $ 23.73 Balance at December 31, 2017 1,142 $ 21.75 Grants 1,077 $ 23.63 Forfeited (30 ) $ 16.49 Fulfillment of service requirement (394 ) $ 24.23 Balance at November 30, 2018 1,795 $ 22.42 |
Activity of Restricted Stock Units | The following table details the activity in RSUs related to the senior executive compensation plan during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts): Target Number of Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2016 — $ — Grants 3,434 $ 9.68 Forfeited — $ — Balance at December 31, 2016 3,434 $ 9.68 Grants 2,221 $ 19.06 Forfeited — $ — Balance at December 31, 2017 5,655 $ 13.37 Grants 3,813 $ 26.16 Forfeited — $ — Balance at November 30, 2018 9,468 $ 18.52 The following table details the activity in RSUs during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts): Weighted-Average Grant Date Fair Value Future Service Required No Future Service Required Future Service Required No Future Service Required Balance at January 1, 2016 3,388 8,583 $ 26.90 $ 26.68 Grants — 128 $ — $ 14.21 Distributions of underlying shares — (1,683 ) $ — $ 26.59 Forfeited — — $ — $ — Fulfillment of service requirement (3,320 ) 3,320 $ 26.90 $ 26.90 Balance at December 31, 2016 68 10,348 $ 26.90 $ 26.61 Grants — 104 $ — $ 21.55 Distributions of underlying shares — (175 ) $ — $ 26.46 Forfeited — — $ — $ — Fulfillment of service requirement (36 ) 36 $ 26.90 $ 26.90 Balance at December 31, 2017 32 10,313 $ 26.90 $ 26.57 Grants — 161 $ — $ 20.24 Distributions of underlying shares — (192 ) $ — $ 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 |
Activity of Stock Options | A summary of activity with respect to our stock options during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 is as follows (in thousands, except per share amounts): Common Shares Subject to Option Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2016 661 $ 24.97 Granted — $ — Exercised — $ — $ — Cancelled (20 ) $ 30.49 Balance at December 31, 2016 641 $ 24.80 Granted — $ — Exercised (20 ) $ 22.75 $ 65 Cancelled (290 ) $ 26.98 Balance at December 31, 2017 331 $ 23.03 Granted — $ — Exercised (109 ) $ 22.87 $ 136 Cancelled (27 ) $ 24.79 Balance at November 30, 2018 195 $ 22.87 0.1 years $ — Exercisable at November 30, 2018 195 $ 22.87 0.1 years $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary Of Accumulated Other Comprehensive Income, Net Of Taxes | A summary of accumulated other comprehensive income, net of taxes is as follows (in thousands): November 30, 2018 December 31, 2017 December 31, 2016 Net unrealized gains on available for sale securities $ 542,832 $ 572,085 $ 561,497 Net unrealized foreign exchange losses (193,402 ) (101,400 ) (184,829 ) Net unrealized losses on instrument specific credit risk (5,728 ) (34,432 ) (6,494 ) Net unrealized gains (losses) on cash flow hedges 470 (1,138 ) — Net minimum pension liability (55,886 ) (62,391 ) (59,477 ) $ 288,286 $ 372,724 $ 310,697 |
Schedule Of Accumulated Other Comprehensive Income Reclassifications | For the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 , significant amounts reclassified out of accumulated other comprehensive income to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statement of Operations Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Net unrealized gains on available for sale securities, net of income tax provision of $37 and $124 $ 109 $ 212 Other income Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(16) and $1,086 20,459 (5,310 ) Other income and other expenses Net unrealized gains on instrument specific credit risk, net of income tax provision of $311 and $0 916 — Principal transactions revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(697) and $(811) (2,044 ) (1,748 ) Selling, general and other expenses, which includes pension expense. See Note 19 for information on this component. Other pension, net of income tax benefit of $0 and $(1,231) (5,305 ) 1,231 Compensation and benefits expense and Income tax provision (benefit) Total reclassifications for the period, net of tax $ 14,135 $ (5,615 ) |
Pension Plans and Postretirem_2
Pension Plans and Postretirement Benefits (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Components Of Defined Benefit Pension Plans | A summary of activity with respect to both plans is as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 211,257 $ 205,405 Interest cost 6,783 8,119 Actuarial (gains) losses (16,646 ) 6,644 Settlement payments (3,133 ) — Benefits paid (7,000 ) (8,911 ) Projected benefit obligation, end of year $ 191,261 $ 211,257 Change in plan assets: Fair value of plan assets, beginning of year $ 150,806 $ 127,514 Actual return on plan assets (7,676 ) 22,192 Employer contributions 8,890 12,417 Benefits paid (7,000 ) (8,911 ) Settlement payments (3,133 ) — Administrative expenses (2,895 ) (2,406 ) Fair value of plan assets, end of year $ 138,992 $ 150,806 Funded status at end of year $ (52,269 ) $ (60,451 ) |
Components Of Net Periodic Pension Costs And Amounts Recognized In Other Comprehensive Income | The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Components of net periodic pension cost: Interest cost $ 6,783 $ 8,119 $ 8,464 Expected return on plan assets (7,217 ) (7,689 ) (7,589 ) Settlement charge 365 — — Actuarial losses 2,376 2,207 1,908 Net periodic pension cost $ 2,307 $ 2,637 $ 2,783 Amounts recognized in other comprehensive income (loss): Net (gains) losses arising during the period $ 1,141 $ (5,453 ) $ 6,811 Settlement charge (365 ) — — Amortization of net loss (2,376 ) (2,207 ) (1,908 ) Total recognized in other comprehensive income (loss) $ (1,600 ) $ (7,660 ) $ 4,903 Net amount recognized in net periodic benefit cost and other comprehensive income (loss) $ 707 $ (5,023 ) $ 7,686 |
Schedule Of Assumptions For Pension Plan | The assumptions used are as follows: November 30, 2018 December 31, 2017 WilTel Plan Discount rate used to determine benefit obligation 4.35 % 3.51 % Weighted-average assumptions used to determine net pension cost: Discount rate 3.51 % 3.85 % Expected long-term return on plan assets 7.00 % 7.00 % Jefferies Group Plan Discount rate used to determine benefit obligation 4.30 % 3.60 % Weighted-average assumptions used to determine net pension cost: Discount rate 3.60 % 3.90 % Expected long-term return on plan assets 6.25 % 6.25 % |
Schedule Of Expected Pension Benefit Payments | The following pension benefit payments are expected to be paid (in thousands): 2019 $ 9,689 2020 9,267 2021 9,491 2022 10,017 2023 13,292 2024 – 2028 66,801 |
Schedule Of Plan's Assets At Fair Value | At November 30, 2018 and December 31, 2017 , the WilTel plan assets at fair value consisted of the following (in thousands): Fair Value Measurements Using Total Level 1 Level 2 November 30, 2018 Cash and cash equivalents $ 802 $ 802 $ — Growth Portfolio 18,656 — 18,656 Liability-Driven Investing Portfolio 71,359 — 71,359 Total $ 90,817 $ 802 $ 90,015 December 31, 2017 Cash and cash equivalents $ 539 $ 539 $ — Growth Portfolio 65,625 — 65,625 Liability-Driven Investing Portfolio 31,693 — 31,693 Total $ 97,857 $ 539 $ 97,318 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions for the eleven months ended November 30, 2018 (in thousands): Reportable Segments Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Major Business Activity: Jefferies Group: Equities (1) $ 649,631 $ — $ — $ (919 ) $ 648,712 Fixed Income (1) 13,839 — — — 13,839 Investment Banking 1,910,203 — — (5,333 ) 1,904,870 Asset Management 21,214 — — — 21,214 Manufacturing revenues — 357,427 — — 357,427 Oil and gas revenues — 136,109 — — 136,109 Other revenues — 37,471 — — 37,471 Total revenues from contracts with customers $ 2,594,887 $ 531,007 $ — $ (6,252 ) $ 3,119,642 Primary Geographic Region: Americas $ 2,207,826 $ 529,471 $ — $ (6,252 ) $ 2,731,045 Europe, Middle East and Africa 304,370 1,264 — — 305,634 Asia 82,691 272 — — 82,963 Total revenues from contracts with customers $ 2,594,887 $ 531,007 $ — $ (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. The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues for the eleven months ended November 30, 2018 (in thousands): Revenues from contracts with customers: Commissions and other fees $ 634,271 Investment banking 1,904,870 Manufacturing revenues 357,427 Other 223,074 Total revenues from contracts with customers 3,119,642 Other sources of revenue: Principal transactions 232,224 Interest income 1,294,325 Other 363,537 Total revenues from other sources 1,890,086 Total revenues $ 5,009,728 |
Income Taxes (Tables)
Income Taxes (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Provision For Income Taxes | The provision for income taxes for continuing operations are as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Current taxes: U.S. Federal $ 10,000 $ (1,060 ) $ (1,314 ) U.S. state and local 37,439 33,132 8,035 Foreign 11,077 14,597 (4,638 ) Total current 58,516 46,669 2,083 Deferred taxes: U.S. Federal 39,448 586,014 20,517 U.S. state and local (73,013 ) 1,452 1,118 Foreign (5,943 ) 8,151 2,055 Total deferred (39,508 ) 595,617 23,690 Total income tax provision $ 19,008 $ 642,286 $ 25,773 |
Schedule of Income before Income Tax, U.S. and non-U.S. | The following table presents the U.S. and non-U.S. components of income from continuing operations before income taxes (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 U.S. $ 284,177 $ 535,955 $ 7,960 Non-U.S. (1) 11,923 70,547 (20,552 ) Income from continuing operations before income taxes $ 296,100 $ 606,502 $ (12,592 ) (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. |
Schedule Of Reconciliation Of Expected Statutory Federal Income Tax To Actual Income Tax Provision (Benefit) | Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rates of 21% for the eleven months ended November 30, 2018 and 35% for the twelve months ended December 31, 2017 and 2016 to income from continuing operations before income taxes as a result of the following (dollars in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Amount Percent Amount Percent Amount Percent Computed expected federal income tax $ 62,181 21.0 % $ 212,276 35.0 % $ (4,407 ) 35.0 % Increase (decrease) in income taxes resulting from: State and local income taxes, net of federal income tax benefit 12,391 4.2 14,115 2.3 (4,060 ) 32.2 International operations (including foreign rate differential) 1,823 0.6 (11,577 ) (1.9 ) (3,155 ) 25.1 Increase (decrease) in valuation allowance (48,058 ) (16.2 ) — — 2,825 (22.4 ) Permanent differences 12,331 4.2 4,933 0.8 4,315 (34.3 ) Foreign tax credits (9,046 ) (3.1 ) (32,974 ) (5.4 ) — — Excess stock detriment — — 161 — 24,907 (197.8 ) Deferred tax asset remeasurement related to the Tax Act 5,673 1.9 415,000 68.4 — — Transition tax on foreign earnings related to the Tax Act 2,590 0.9 35,500 5.9 — — Base erosion and anti-abuse tax (BEAT) 10,000 3.4 — — — — Change in unrecognized tax benefits related to prior years (19,783 ) (6.7 ) 1,553 0.3 (7,064 ) 56.1 Other, net (11,094 ) (3.8 ) 3,299 0.5 12,412 (98.6 ) Actual income tax provision $ 19,008 6.4 % $ 642,286 105.9 % $ 25,773 (204.7 )% |
Schedule Of Reconciliation Of Unrecognized Tax Benefits | The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Balance at beginning of period $ 169,020 $ 148,848 $ 150,867 Increases based on tax positions related to the current period 48,083 18,619 5,045 Increases based on tax positions related to prior periods 17,521 10,358 3,697 Decreases based on tax positions related to prior periods (36,324 ) (8,805 ) (9,414 ) Decreases related to settlements with taxing authorities (980 ) — (1,347 ) Balance at end of period $ 197,320 $ 169,020 $ 148,848 |
Schedule Of Principal Components Of Deferred Taxes | The principal components of deferred taxes are as follows (in thousands): November 30, 2018 December 31, 2017 Deferred tax asset: Net operating loss carryover $ 282,650 $ 599,839 Compensation and benefits 269,788 213,340 Tax credits 66,272 93,026 Securities valuation reserves 76,931 3,012 Other 156,751 130,735 852,392 1,039,952 Valuation allowance (38,512 ) (93,758 ) 813,880 946,194 Deferred tax liability: Amortization of intangible assets (69,970 ) (71,583 ) Investment in associated companies (171,006 ) (83,114 ) Transition tax — (35,165 ) Other (60,115 ) (12,521 ) (301,091 ) (202,383 ) Net deferred tax asset $ 512,789 $ 743,811 |
Other Results of Operations I_2
Other Results of Operations Information (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule Of Other Income | Other revenue consists of the following (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Asset management fees $ 28,144 $ 28,831 $ 29,492 Dividend income 5,416 (452 ) 3,856 Income from associated companies classified as other revenues 73,975 75,889 17,184 Revenues of oil and gas production and development businesses 127,090 61,541 49,890 Net realized securities gains (losses) (939 ) 23,028 29,542 Gain on sale of Garcadia 221,712 — — Gain on sale of Conwed — 178,236 — Other 131,213 81,478 38,801 $ 586,611 $ 448,551 $ 168,765 |
Common Shares and Earnings Pe_2
Common Shares and Earnings Per Common Share (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The numerators and denominators used to calculate basic and diluted earnings per share are as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 1,022,318 $ 167,351 $ 125,938 Allocation of earnings to participating securities (1) (5,107 ) (610 ) (574 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 1,017,211 166,741 125,364 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 28 (14 ) (19 ) Mandatorily redeemable convertible preferred share dividends — — — Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 1,017,239 $ 166,727 $ 125,345 Denominator for earnings per share: Weighted average common shares outstanding 337,817 358,482 361,151 Weighted average shares of restricted stock outstanding with future service required (1,707 ) (1,349 ) (1,645 ) Weighted average RSUs outstanding with no future service required 11,151 11,064 11,705 Denominator for basic earnings per share – weighted average shares 347,261 368,197 371,211 Stock options 7 24 — Senior executive compensation plan awards 4,007 2,480 307 Mandatorily redeemable convertible preferred shares — — — Denominator for diluted earnings per share 351,275 370,701 371,518 (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. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted-average shares of 1,724,800 , 1,401,000 and 1,986,800 for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Dividends declared on participating securities were not material during the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 . Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Commitments for Noncancelable Operating Leases | Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at November 30, 2018 are as follows (in thousands): 2019 $ 73,060 2020 63,982 2021 65,456 2022 63,840 2023 60,064 Thereafter 432,880 759,282 Less: sublease income (26,415 ) $ 732,867 |
Schedule of commitments | The following table summarizes commitments associated with certain business activities (in millions): Expected Maturity Date 2019 2020 2021 2023 2025 Maximum Payout Equity commitments (1) $ 322.4 $ 21.8 $ 1.3 $ — $ 10.5 $ 356.0 Loan commitments (1) 250.0 7.5 54.0 3.5 — 315.0 Underwriting commitments 377.5 — — — — 377.5 Forward starting reverse repos (2) 4,262.7 — — — — 4,262.7 Forward starting repos (2) 2,931.8 — — — — 2,931.8 Other unfunded commitments (1) 194.8 — 69.4 4.9 — 269.1 $ 8,339.2 $ 29.3 $ 124.7 $ 8.4 $ 10.5 $ 8,512.1 (1) Equity commitments, loan commitments and other unfunded commitments are presented by contractual maturity date. The amounts are however mostly available on demand. (2) At November 30, 2018 , $4,232.8 million within forward starting securities purchased under agreements to resell and all of the securities sold under agreements to repurchase settled within three business days. |
Schedule of Notional Amounts Associated with Derivative Contracts Meeting Definition Of Guarantee | The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under GAAP as of November 30, 2018 (in millions): Expected Maturity Date Guarantee Type 2019 2020 2021 2023 2025 Notional/ Maximum Payout Derivative contracts – non-credit related $ 12,024.2 $ 2,372.3 $ 2,976.1 $ 281.1 $ 330.3 $ 17,984.0 Written derivative contracts – credit related — 32.4 — 112.8 — 145.2 Total derivative contracts $ 12,024.2 $ 2,404.7 $ 2,976.1 $ 393.9 $ 330.3 $ 18,129.2 |
Other Fair Value Information (T
Other Fair Value Information (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Methods And Assumptions Used To Estimate The Fair Values | The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands): November 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Other Assets: Notes and loans receivable (1) $ 680,015 $ 676,152 $ 579,071 $ 565,285 Financial Liabilities: Short-term borrowings (2) 387,492 387,492 412,891 412,891 Long-term debt (3) 6,931,393 6,826,503 7,278,827 7,678,210 (1) Notes and loans receivable: 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: The fair values of short-term borrowings 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. (3) Long-term debt: The fair values are estimated using quoted prices, pricing information obtained from external data providers and, for certain variable rate debt, is estimated to be the carrying amount. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of results of discontinued operations | A summary of the results of discontinued operations for National Beef is as follows (in thousands): Period Ended June 4, 2018 (1) Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Revenues: Beef processing services $ 3,137,611 $ 7,353,663 $ 7,021,902 Interest income 131 339 166 Other 4,329 4,946 5,175 Total revenues 3,142,071 7,358,948 7,027,243 Expenses: Compensation and benefits 17,414 39,884 39,271 Cost of sales 2,884,983 6,764,055 6,513,768 Interest expense 4,316 6,657 12,946 Depreciation and amortization 43,959 98,515 94,482 Selling, general and other expenses 14,291 42,525 37,754 Total expenses 2,964,963 6,951,636 6,698,221 Income from discontinued operations before income taxes 177,108 407,312 329,022 Income tax provision 47,045 118,681 96,336 Income from discontinued operations, net of income tax provision $ 130,063 $ 288,631 $ 232,686 (1) The operations of National Beef from January 1, 2018 through June 4, 2018, are included in discontinued operations for our eleven months ended November 30, 2018. |
Segment Information (Tables)
Segment Information (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information, By Segment | Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 (In thousands) Net revenues: Reportable Segments: Jefferies Group (1) $ 3,183,376 $ 3,198,109 $ 2,414,614 Merchant Banking (1) (2) 571,831 876,180 621,804 Corporate 22,300 6,306 2,689 Total net revenues related to reportable segments 3,777,507 4,080,595 3,039,107 Consolidation adjustments (13,473 ) (3,150 ) (3,733 ) Total consolidated net revenues $ 3,764,034 $ 4,077,445 $ 3,035,374 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group (1) $ 409,667 $ 504,924 $ 29,972 Merchant Banking (1) (2) 10,488 228,373 85,188 Corporate (66,140 ) (78,802 ) (72,344 ) Income from continuing operations before income taxes related to reportable segments 354,015 654,495 42,816 Parent Company interest (54,090 ) (58,943 ) (58,881 ) Consolidation adjustments (3,825 ) 10,950 3,473 Total consolidated income (loss) from continuing operations before income taxes $ 296,100 $ 606,502 $ (12,592 ) Depreciation and amortization expenses: Reportable Segments: Jefferies Group (1) $ 68,296 $ 62,668 $ 60,206 Merchant Banking (1) 48,852 44,257 53,286 Corporate 3,169 3,470 3,619 Total consolidated depreciation and amortization expenses $ 120,317 $ 110,395 $ 117,111 November 30, 2018 December 31, 2017 December 31, 2016 Identifiable assets employed: Reportable Segments: Jefferies Group (1) (3) $ 41,224,984 $ 39,575,732 $ 36,992,096 Merchant Banking (1) 4,190,484 4,903,530 5,120,337 National Beef — 1,460,539 1,498,317 Corporate 1,838,037 1,299,628 1,543,238 Identifiable assets employed related to reportable segments 47,253,505 47,239,429 45,153,988 Consolidation adjustments (122,410 ) (70,321 ) (82,681 ) Total consolidated assets $ 47,131,095 $ 47,169,108 $ 45,071,307 (1) Amounts related to LAM and Berkadia are included in Merchant Banking prior to their transfer to Jefferies Group in the fourth quarter of 2018. Revenues related to the net assets transferred were $6.7 million , $49.6 million and $26.5 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Income from continuing operations before income taxes related to the net assets transferred were $47.7 million , $118.4 million and $109.4 million for the eleven months ended November 30, 2018 and the twelve months ended December 31, 2017 and 2016 , respectively. Identifiable assets employed related to the net assets transferred were $662.2 million and $238.1 million at December 31, 2017 and 2016, respectively. (2) Merchant Banking Net revenues and Income (loss) from continuing operations before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $18.6 million and $(64.6) million , respectively, for the eleven months ended November 30, 2018 ; $23.2 million and $(154.5) million , respectively, for the twelve months ended December 31, 2017 ; and $(54.6) million and $(52.7) million , respectively, for the twelve months ended December 31, 2016 . (3) At November 30, 2018 and December 31, 2017 and 2016 , includes $243.2 million , $213.0 million and $337.6 million , respectively, of Jefferies Group's deferred tax asset, net. |
Schedule Of Net Revenues By Geographic Region | Net revenues by geographic region for Jefferies Group were as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Americas (1) $ 2,652,917 $ 2,602,741 $ 1,870,355 Europe (2) 434,895 489,583 458,046 Asia 95,564 105,785 86,213 $ 3,183,376 $ 3,198,109 $ 2,414,614 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Selected Quarterly Financial Data | First Quarter (1) Second Quarter (2) Third Quarter (3) Fourth Quarter (4) (In thousands, except per share amounts) 2018 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 — — Gain on disposal of discontinued operations, net of taxes — 643,921 — — 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: Income (loss) from continuing operations $ 0.23 $ 0.08 $ 0.56 $ (0.06 ) Income from discontinued operations 0.11 0.15 — — Gain on disposal of discontinued operations — 1.82 — — 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: Income (loss) from continuing operations $ 0.23 $ 0.08 $ 0.55 $ (0.06 ) Income from discontinued operations 0.11 0.15 — — Gain on disposal of discontinued operations — 1.80 — — 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 2017 Net revenues $ 1,306,526 $ 856,861 $ 857,223 $ 1,056,835 Income (loss) from continuing operations 249,751 20,072 15,778 (321,385 ) Income from discontinued operations, net of taxes 44,172 53,990 120,989 69,480 Net (income) loss attributable to the noncontrolling interest 523 1,446 (28 ) 1,514 Net income attributable to the redeemable noncontrolling interests (12,022 ) (16,300 ) (36,216 ) (20,038 ) Preferred stock dividends (1,016 ) (1,015 ) (1,172 ) (1,172 ) Net income (loss) attributable to Jefferies Financial Group Inc. common shareholders 281,408 58,193 99,351 (271,601 ) Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: Income (loss) from continuing operations $ 0.67 $ 0.06 $ 0.04 $ (0.88 ) Income from discontinued operations 0.09 0.10 0.23 0.14 Net income (loss) $ 0.76 $ 0.16 $ 0.27 $ (0.74 ) Number of shares used in calculation 369,267 369,212 367,828 366,000 Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: Income (loss) from continuing operations $ 0.66 $ 0.06 $ 0.04 $ (0.88 ) Income from discontinued operations 0.09 0.10 0.23 0.14 Net income (loss) $ 0.75 $ 0.16 $ 0.27 $ (0.74 ) Number of shares used in calculation 375,721 371,552 370,198 366,000 (1) The first quarter of 2018 includes losses of $21.4 million from a decrease in the fair value of our investment in HRG. The first quarter of 2017 includes a pre-tax gain of $179.9 million related to the sale of Conwed, revenue of $175.2 million related to the increase in the fair value of our investment in HRG and a pre-tax charge of $130.2 million related to an impairment of our equity investment in FXCM. (2) The second quarter of 2018 includes the after-tax gain on disposal of discontinued operations of $643.9 million from the National Beef transaction and losses of $158.4 million from a decrease in the fair value of our investment in HRG. The second quarter of 2017 includes losses of $75.0 million from a decrease in the fair value of our investment in HRG and revenue of $95.8 million from an increase in the fair value of Jefferies Group's investment in KCG. (3) The third quarter of 2018 includes a $221.7 million pre-tax gain on the sale of our Garcadia interests and $58.9 million of income related to our remaining interest in National Beef. These increases were partially offset by a $47.9 million impairment loss related to Golden Queen and losses of $48.5 million from a decrease in the fair value of our investment in Spectrum Brands. The third quarter of 2017 includes losses of $97.9 million from a decrease in the fair value of our investment in HRG. (4) The fourth quarter of 2018 is comprised of the two months ended November 30, 2018 and the fourth quarter of 2017 is comprised of the three months ended December 31, 2017. |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant (Tables) | 11 Months Ended |
Nov. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 (In thousands) Cash paid during the year for: Interest $ 1,377,781 $ 1,120,191 $ 957,140 Income tax payments (refunds), net $ 37,559 $ 15,361 $ (13,738 ) Supplemental cash flow information related to the Parent Company is as follows (in thousands): Eleven Months Ended November 30, 2018 Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Cash paid for: Interest $ 57,813 $ 57,813 $ 57,813 Income tax payments (refunds), net 32,576 1,440 (10,199 ) Non-cash investing activities: Investments contributed to subsidiary $ — $ 25,328 $ 423,009 Investments transferred from subsidiary — — 2,022 Dividends received from subsidiaries 8,450,147 32,792 — |
Nature of Operations (Details)
Nature of Operations (Details) $ in Millions | Jun. 05, 2018USD ($) | Apr. 30, 2018USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 04, 2018USD ($) | Nov. 30, 2018USD ($)Segment | Dec. 31, 2017Segment | Dec. 31, 2013USD ($) | Dec. 31, 2009USD ($) | Oct. 01, 2018 | Jul. 13, 2018 | Jul. 12, 2018 | Jan. 31, 2015USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Number of business segments | Segment | 3 | 3 | ||||||||||||
Capital contributed | $ 598.2 | |||||||||||||
Weiss Multi-Strategy Advisors LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Amount invested in asset management strategy | $ 250 | |||||||||||||
Combined Strategy | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity commitments | $ 250 | $ 250 | ||||||||||||
Berkadia | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||||||||||
Capital contributed | $ 217.2 | |||||||||||||
National Beef | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | |||||||||||
Ownership percentage | 79.00% | |||||||||||||
Spectrum Brands | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 14.00% | 14.00% | 14.00% | |||||||||||
HRG | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 23.00% | 23.00% | ||||||||||||
Linkem | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 42.00% | 42.00% | ||||||||||||
Percentage of ownership upon conversion of preferred shares | 54.00% | 54.00% | ||||||||||||
WeWork | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Payments to acquire investments | $ 9 | |||||||||||||
HomeFed | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 70.00% | 70.00% | ||||||||||||
Investment in FXCM | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||||||||
Maximum percentage of all distributions | 75.00% | 75.00% | ||||||||||||
Golden Queen | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 38.00% | 38.00% | ||||||||||||
Jefferies Finance | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||||||||
Jefferies Group | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Number of business segments | Segment | 2 | |||||||||||||
HRG | Spectrum Brands | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 62.00% | |||||||||||||
Vitesse Energy, LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Payments to acquire other assets, funded as equity | $ 144 | |||||||||||||
FXCM | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Senior secured term loan receivable | $ 67.6 | $ 67.6 | $ 300 | |||||||||||
Jefferies Group | Affiliated Entity | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from related party transfer | $ 76 | |||||||||||||
National Beef | Discontinued operations, disposed of by sale | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 48.00% | |||||||||||||
Cash received from sale of subsidiary | $ 907.7 | |||||||||||||
Pre-tax gain recognized as result of sale | 873.5 | |||||||||||||
Garcadia Companies | Disposal group, disposed of by sale, not discontinued operations | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from sale of equity interests and associated real estate | $ 417.2 | |||||||||||||
Pre-tax gain on sale of equity interests and associated real estate | $ 221.7 | $ 221.7 | ||||||||||||
National Beef | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Distribution from subsidiary | $ 229.4 | |||||||||||||
Vitesse Energy, LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 97.00% | 97.00% | ||||||||||||
JETX Energy | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 98.00% | 98.00% | ||||||||||||
Package of Non-Operated Bakken Assets | Vitesse Energy, LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Payments for purchase of private equity fund | $ 190 | |||||||||||||
Maximum | WeWork | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage | 1.00% | 1.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Sep. 01, 2016 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Long Lived Assets Held-for-sale [Line Items] | ||||
Receivables from brokers, dealers and clearing organizations | $ 3,223.7 | $ 2,635.2 | ||
Receivables from customers of securities operations | 2,017.1 | 1,563.8 | ||
Property, equipment and leasehold improvements, net | 351 | 750.4 | ||
Payables to brokers, dealers and clearing organizations | 2,465.6 | 2,228.9 | ||
Payables to customers of securities operations | 3,176.7 | 2,664 | ||
Purchase of common shares for treasury settled subsequent to year end | $ 17.6 | |||
Transfer of investment from trading assets to loans to and investments in associated companies | $ 334.5 | $ 334.5 | ||
JETX Energy | Selling, general and other expenses | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Asset impairment charges | 56.3 | |||
54 Madison | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Increase in loans to and investments in associated companies of deconsolidated entity | 123 | |||
Total assets of deconsolidated entity | 612.9 | |||
Total liabilities of deconsolidated entity | 330.5 | |||
Noncontrolling interests of deconsolidated entity | 167.2 | |||
Minimum | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Derivative hedging relationship effective percentage | 80.00% | |||
Maximum | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Derivative hedging relationship effective percentage | 125.00% | |||
Changes to Presentation of Gains and Losses Generated from Capital Invested in Asset Management Funds | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Decrease of principal transactions revenues | 8.2 | 69 | ||
Increase of other revenues | $ 8.2 | $ 69 |
Significant Accounting Polici_5
Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid during the year for: | |||
Interest | $ 1,377,781 | $ 1,120,191 | $ 957,140 |
Income tax payments (refunds), net | $ 37,559 | $ 15,361 | $ (13,738) |
Change in Year End (Details)
Change in Year End (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Net revenues | $ 806,594 | $ 1,150,846 | $ 911,159 | $ 895,435 | $ 1,056,835 | $ 857,223 | $ 856,861 | $ 1,306,526 | $ 3,764,034 | $ 4,031,333 | $ 4,077,445 | $ 3,035,374 |
Total expenses | 3,524,957 | 3,336,359 | 3,396,042 | 3,202,564 | ||||||||
Income (loss) related to associated companies | 57,023 | (76,864) | (74,901) | 154,598 | ||||||||
Income from continuing operations before income taxes | 296,100 | 618,110 | 606,502 | (12,592) | ||||||||
Income tax provision | 19,008 | 195,550 | 642,286 | 25,773 | ||||||||
Income (loss) from continuing operations | (19,318) | 182,301 | 27,917 | 86,192 | (321,385) | 15,778 | 20,072 | 249,751 | 277,092 | 422,560 | (35,784) | (38,365) |
Income from discontinued operations, including gain on disposal, net of taxes | 773,984 | 267,321 | ||||||||||
Net income attributable to the redeemable noncontrolling interests | 31 | (390) | (22,108) | (14,796) | (20,038) | (36,216) | (16,300) | (12,022) | (37,263) | (78,506) | (84,576) | (65,746) |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ (20,371) | $ 192,635 | $ 725,529 | $ 124,525 | $ (271,601) | $ 99,351 | $ 58,193 | $ 281,408 | $ 1,022,318 | $ 610,277 | $ 167,351 | $ 125,938 |
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||||||
Income from continuing operations (USD per share) | $ (0.06) | $ 0.56 | $ 0.08 | $ 0.23 | $ (0.88) | $ 0.04 | $ 0.06 | $ 0.67 | $ 0.82 | $ 1.14 | $ (0.10) | $ (0.10) |
Income from discontinued operations, including gain on disposal (USD per share) | 2.11 | 0.51 | ||||||||||
Net income (USD per share) | (0.06) | 0.56 | 2.05 | 0.34 | (0.74) | 0.27 | 0.16 | 0.76 | 2.93 | 1.65 | 0.45 | 0.34 |
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||||||
Income from continuing operations (USD per share) | (0.06) | 0.55 | 0.08 | 0.23 | (0.88) | 0.04 | 0.06 | 0.66 | 0.81 | 1.13 | (0.10) | (0.10) |
Income from discontinued operations, including gain on disposal (USD per share) | 2.09 | 0.50 | ||||||||||
Net income (USD per share) | $ (0.06) | $ 0.55 | $ 2.03 | $ 0.34 | $ (0.74) | $ 0.27 | $ 0.16 | $ 0.75 | $ 2.90 | $ 1.63 | $ 0.45 | $ 0.34 |
Accounting Developments - Narra
Accounting Developments - Narrative (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) to retained earnings as a result of adoption of new accounting guidance | $ 5,610,218 | $ 4,700,968 | ||
Decrease to accumulated other comprehensive income | (288,286) | (372,724) | ||
Decrease in net cash provided by operating activities | (691,103) | (788,294) | $ (572,414) | |
(Decrease) increase in net cash provided by investing activities | 142,443 | (54,634) | (636,215) | |
Decrease to compensation and benefits expenses | (1,862,782) | (1,950,935) | (1,688,325) | |
Increase to selling, general and other expenses | 961,328 | 778,052 | 797,127 | |
Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) to retained earnings as a result of adoption of new accounting guidance | $ 27,600 | |||
Decrease to accumulated other comprehensive income | 27,600 | |||
Accounting Standards Update 2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in net cash provided by operating activities | 284,500 | 36,400 | ||
(Decrease) increase in net cash provided by investing activities | (7,400) | 3,400 | ||
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to compensation and benefits expenses | 3,000 | 3,000 | ||
Increase to selling, general and other expenses | $ 3,000 | $ 3,000 | ||
Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) to retained earnings as a result of adoption of new accounting guidance | 17,800 | |||
Decrease to compensation and benefits expenses | 0 | |||
Increase to selling, general and other expenses | $ 131,789 | |||
Impact of Adoption of Revenue Recognition Standard | HomeFed | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) to retained earnings as a result of adoption of new accounting guidance | 24,300 | |||
Impact of Adoption of Revenue Recognition Standard | Jefferies Group | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) to retained earnings as a result of adoption of new accounting guidance | $ (6,100) |
Accounting Developments - Sched
Accounting Developments - Schedule of Impact of Applying New Revenue Recognition Standard (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||||||||||||
Revenues | $ 5,009,728 | $ 5,048,906 | $ 3,848,011 | |||||||||
Interest expense | 89,249 | 101,202 | 95,757 | |||||||||
Net revenues | $ 806,594 | $ 1,150,846 | $ 911,159 | $ 895,435 | $ 1,056,835 | $ 857,223 | $ 856,861 | $ 1,306,526 | 3,764,034 | $ 4,031,333 | 4,077,445 | 3,035,374 |
Expenses: | ||||||||||||
Compensation and benefits | 1,862,782 | 1,950,935 | 1,688,325 | |||||||||
Cost of sales | 307,071 | 280,952 | 337,039 | |||||||||
Floor brokerage and clearing fees | 184,210 | 174,506 | 167,205 | |||||||||
Depreciation and amortization | 120,317 | 110,395 | 117,111 | |||||||||
Selling, general and other expenses | 961,328 | 778,052 | 797,127 | |||||||||
Total expenses | 3,524,957 | $ 3,336,359 | 3,396,042 | 3,202,564 | ||||||||
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 239,077 | 681,403 | (167,190) | |||||||||
Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 131,789 | |||||||||||
Interest expense | 0 | |||||||||||
Net revenues | 131,789 | |||||||||||
Expenses: | ||||||||||||
Compensation and benefits | 0 | |||||||||||
Cost of sales | 0 | |||||||||||
Floor brokerage and clearing fees | 0 | |||||||||||
Depreciation and amortization | 0 | |||||||||||
Selling, general and other expenses | 131,789 | |||||||||||
Total expenses | 131,789 | |||||||||||
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 0 | |||||||||||
Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 4,877,939 | |||||||||||
Interest expense | 89,249 | |||||||||||
Net revenues | 3,632,245 | |||||||||||
Expenses: | ||||||||||||
Compensation and benefits | 1,862,782 | |||||||||||
Cost of sales | 307,071 | |||||||||||
Floor brokerage and clearing fees | 184,210 | |||||||||||
Depreciation and amortization | 120,317 | |||||||||||
Selling, general and other expenses | 829,539 | |||||||||||
Total expenses | 3,393,168 | |||||||||||
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 239,077 | |||||||||||
Commissions and other fees | ||||||||||||
Revenues: | ||||||||||||
Revenues | 634,271 | 593,257 | 611,574 | |||||||||
Commissions and other fees | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | |||||||||||
Commissions and other fees | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 634,271 | |||||||||||
Principal transactions | ||||||||||||
Revenues: | ||||||||||||
Revenues | 232,224 | 923,418 | 534,784 | |||||||||
Principal transactions | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | |||||||||||
Principal transactions | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 232,224 | |||||||||||
Investment banking | ||||||||||||
Revenues: | ||||||||||||
Revenues | 1,904,870 | 1,764,285 | 1,193,973 | |||||||||
Investment banking | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 131,789 | |||||||||||
Investment banking | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 1,773,081 | |||||||||||
Interest income | ||||||||||||
Revenues: | ||||||||||||
Revenues | 1,294,325 | 993,198 | 926,089 | |||||||||
Interest income | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | |||||||||||
Interest income | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 1,294,325 | |||||||||||
Manufacturing revenues | ||||||||||||
Revenues: | ||||||||||||
Revenues | 357,427 | 326,197 | 412,826 | |||||||||
Manufacturing revenues | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | |||||||||||
Manufacturing revenues | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 357,427 | |||||||||||
Other | ||||||||||||
Revenues: | ||||||||||||
Revenues | 586,611 | 448,551 | 168,765 | |||||||||
Other | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | |||||||||||
Other | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Revenues | 586,611 | |||||||||||
Jefferies Group | ||||||||||||
Revenues: | ||||||||||||
Interest expense | 1,245,694 | 971,461 | 812,637 | |||||||||
Net revenues | 3,183,376 | $ 3,198,109 | $ 2,414,614 | |||||||||
Jefferies Group | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||||||||||
Revenues: | ||||||||||||
Interest expense | 0 | |||||||||||
Jefferies Group | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||||||||||
Revenues: | ||||||||||||
Interest expense | $ 1,245,694 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Assets and Liabilities Measured on Recurring Basis at Fair Value (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Trading assets, at fair value | $ 17,068,897 | $ 15,492,572 |
Derivative assets | 166,775 | 179,488 |
Counterparty and Cash Collateral Netting, assets | (2,413,931) | (3,318,481) |
Available for sale securities, equity securities | 88,486 | |
Available for sale securities | 1,409,886 | 628,075 |
Available-for-sale Securities | 716,561 | |
Liabilities: | ||
Trading liabilities, at fair value | 9,478,946 | 8,454,965 |
Counterparty and Cash Collateral Netting, liabilities | (2,513,050) | (3,490,514) |
Short-term borrowings | 23,324 | |
Long-term debt - structured notes | 686,170 | 606,956 |
Level 1 | ||
Assets: | ||
Trading assets, at fair value | 6,091,056 | 5,791,641 |
Derivative assets | 34,841 | 165,396 |
Available for sale securities, equity securities | 88,486 | |
Available for sale securities | 1,072,856 | |
Available-for-sale Securities | 641,291 | |
Liabilities: | ||
Trading liabilities, at fair value | 4,831,081 | 4,618,008 |
Short-term borrowings | 0 | |
Long-term debt - structured notes | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading assets, at fair value | 12,688,016 | 12,369,954 |
Derivative assets | 2,539,943 | 3,323,278 |
Available for sale securities, equity securities | 0 | |
Available for sale securities | 337,030 | |
Available-for-sale Securities | 75,270 | |
Liabilities: | ||
Trading liabilities, at fair value | 7,126,481 | 7,307,269 |
Short-term borrowings | 23,324 | |
Long-term debt - structured notes | 485,425 | 606,956 |
Level 3 | ||
Assets: | ||
Trading assets, at fair value | 703,756 | 649,458 |
Derivative assets | 5,922 | 9,295 |
Available for sale securities, equity securities | 0 | |
Available for sale securities | 0 | |
Available-for-sale Securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 34,434 | 20,202 |
Short-term borrowings | 0 | |
Long-term debt - structured notes | 200,745 | 0 |
Fair Value Measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investments | 394,359 | 590,104 |
Corporate equity securities | ||
Assets: | ||
Trading assets, at fair value | 2,667,918 | 3,058,033 |
Liabilities: | ||
Trading liabilities, at fair value | 1,686,515 | 1,753,437 |
Corporate equity securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 2,497,045 | 2,975,463 |
Liabilities: | ||
Trading liabilities, at fair value | 1,685,071 | 1,721,267 |
Corporate equity securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 118,681 | 60,300 |
Liabilities: | ||
Trading liabilities, at fair value | 1,444 | 32,122 |
Corporate equity securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 52,192 | 22,270 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 48 |
Corporate debt securities | ||
Assets: | ||
Trading assets, at fair value | 2,692,664 | 3,287,336 |
Liabilities: | ||
Trading liabilities, at fair value | 1,506,140 | 1,689,347 |
Corporate debt securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 2,683,180 | 3,261,300 |
Liabilities: | ||
Trading liabilities, at fair value | 1,505,618 | 1,688,825 |
Corporate debt securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 9,484 | 26,036 |
Liabilities: | ||
Trading liabilities, at fair value | 522 | 522 |
Collateralized debt obligations and collateralized loan obligations | ||
Assets: | ||
Trading assets, at fair value | 109,054 | 181,350 |
Collateralized debt obligations and collateralized loan obligations | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Collateralized debt obligations and collateralized loan obligations | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 72,949 | 139,166 |
Collateralized debt obligations and collateralized loan obligations | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 36,105 | 42,184 |
U.S. government and federal agency securities | ||
Assets: | ||
Trading assets, at fair value | 1,846,206 | 1,308,673 |
Available for sale securities | 1,072,856 | 552,805 |
Liabilities: | ||
Trading liabilities, at fair value | 1,384,295 | 1,430,737 |
U.S. government and federal agency securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 1,789,614 | 1,269,230 |
Liabilities: | ||
Trading liabilities, at fair value | 1,384,295 | 1,430,737 |
U.S. government and federal agency securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 56,592 | 39,443 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
U.S. government and federal agency securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Municipal securities | ||
Assets: | ||
Trading assets, at fair value | 894,253 | 710,513 |
Municipal securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Municipal securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 894,253 | 710,513 |
Municipal securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Sovereign securities | ||
Assets: | ||
Trading assets, at fair value | 2,812,965 | 2,417,459 |
Liabilities: | ||
Trading liabilities, at fair value | 2,396,337 | 2,173,635 |
Sovereign securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 1,769,556 | 1,381,552 |
Liabilities: | ||
Trading liabilities, at fair value | 1,735,242 | 1,216,643 |
Sovereign securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,043,409 | 1,035,907 |
Liabilities: | ||
Trading liabilities, at fair value | 661,095 | 956,992 |
Sovereign securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Residential mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 2,183,232 | 1,479,371 |
Available for sale securities | 210,518 | 34,561 |
Residential mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 2,163,629 | 1,453,294 |
Available for sale securities | 210,518 | 34,561 |
Residential mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 19,603 | 26,077 |
Available for sale securities | 0 | 0 |
Commercial mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 830,292 | 520,534 |
Available for sale securities | 15,642 | 5,870 |
Liabilities: | ||
Trading liabilities, at fair value | 105 | |
Commercial mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | |
Commercial mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 819,406 | 508,115 |
Available for sale securities | 15,642 | 5,870 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | |
Commercial mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 10,886 | 12,419 |
Available for sale securities | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 105 | |
Other asset-backed securities | ||
Assets: | ||
Trading assets, at fair value | 292,556 | 278,240 |
Available for sale securities | 110,870 | 34,839 |
Other asset-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | 0 |
Other asset-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 239,381 | 217,111 |
Available for sale securities | 110,870 | 34,839 |
Other asset-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 53,175 | 61,129 |
Available for sale securities | 0 | 0 |
Loans and other receivables | ||
Assets: | ||
Trading assets, at fair value | 2,103,578 | 1,667,885 |
Loans and other receivables | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Loans and other receivables | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 2,056,593 | 1,620,581 |
Loans and other receivables | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 46,985 | 47,304 |
Investments at fair value | ||
Assets: | ||
Trading assets, at fair value | 396,254 | 330,890 |
Investments at fair value | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Investments at fair value | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 0 | 946 |
Investments at fair value | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 396,254 | 329,944 |
FXCM term loan | ||
Assets: | ||
Trading assets, at fair value | 73,150 | 72,800 |
FXCM term loan | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
FXCM term loan | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
FXCM term loan | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 73,150 | 72,800 |
U.S. government securities | ||
Assets: | ||
Available for sale securities | 1,072,856 | 552,805 |
U.S. government securities | Level 1 | ||
Assets: | ||
Available for sale securities | 1,072,856 | 552,805 |
U.S. government securities | Level 2 | ||
Assets: | ||
Available for sale securities | 0 | 0 |
U.S. government securities | Level 3 | ||
Assets: | ||
Available for sale securities | 0 | 0 |
Loans | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,378,006 | 1,152,310 |
Loans | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Loans | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,371,630 | 1,148,824 |
Loans | Level 3 | ||
Liabilities: | ||
Trading liabilities, at fair value | 6,376 | 3,486 |
Derivatives | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,127,653 | 255,394 |
Counterparty and Cash Collateral Netting, liabilities | (2,513,050) | (3,490,514) |
Derivatives | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 26,473 | 249,361 |
Derivatives | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 3,586,694 | 3,480,506 |
Derivatives | Level 3 | ||
Assets: | ||
Derivative assets | 4,602 | 9,295 |
Liabilities: | ||
Trading liabilities, at fair value | $ 27,536 | $ 16,041 |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments at Fair Value (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 20,996 | $ 19,084 | |
Trading assets, at fair value | 17,463,256 | 16,082,676 | |
Equity Long/Short Hedge Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Equity Long/Short Hedge Funds | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Notice period redemption of investments prior written notice period | 60 days | ||
Equity Long/Short Hedge Funds | 10 business days or less prior written notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of investments redeemable | 73.00% | ||
Notice period redemption of investments prior written notice period | 10 days | ||
Equity Long/Short Hedge Funds | 30 to 60 days prior written notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of investments redeemable | 17.00% | 15.00% | |
Equity Long/Short Hedge Funds | 30 to 60 days prior written notice | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Notice period redemption of investments prior written notice period | 60 days | ||
Equity Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 20,996 | $ 19,084 | |
Equity Funds | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated period for the liquidation of the underlying assets | 1 year | 1 year | |
Equity Funds | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated period for the liquidation of the underlying assets | 10 years | 10 years | |
Commodity Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | ||
Notice period redemption of investments prior written notice period | 60 days | ||
Multi-asset Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Percentage of investments redeemable | 15.00% | 12.00% | |
Notice period redemption of investments prior written notice period | 30 days | ||
Estimated period for the liquidation of the underlying assets | 30 days | ||
Other funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Fair Value Measured at NAV | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 394,359 | 590,104 | |
Fair Value Measured at NAV | Equity Long/Short Hedge Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 86,788 | 407,895 | |
Fair Value Measured at NAV | Equity Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 40,070 | 26,798 | |
Fair Value Measured at NAV | Commodity Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 10,129 | ||
Fair Value Measured at NAV | Multi-asset Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 256,972 | 154,805 | |
Fair Value Measured at NAV | Other funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 400 | $ 606 | |
WeWork | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Payments to acquire investments | $ 9,000 | ||
Trading assets, at fair value | $ 254,400 | ||
WeWork | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Ownership percentage by noncontrolling owners (less than) | 1.00% |
Fair Value Disclosures - Inve_2
Fair Value Disclosures - Investment in FXCM (Details) | 11 Months Ended | 12 Months Ended | 47 Months Ended | |||
Nov. 30, 2018USD ($)director | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 30, 2018USD ($)director | Dec. 31, 2015USD ($) | Jan. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment in associated company | $ 2,417,332,000 | $ 2,066,829,000 | $ 2,125,098,000 | $ 2,417,332,000 | $ 1,757,369,000 | |
FXCM | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Senior secured term loan receivable | $ 67,600,000 | 67,600,000 | $ 300,000,000 | |||
Loan receivable interest rate percentage | 10.00% | |||||
Increase in Interest rate per annum each quarter | 1.50% | |||||
Accrued interest rate | 20.50% | |||||
Principal and interest payments received | $ 18,300,000 | |||||
Principal, interest and fees received | 349,800,000 | |||||
Initial investment amount | $ 279,000,000 | |||||
Unrealized and realized gains (losses), interest income and fees | 18,600,000 | $ 23,200,000 | $ (54,600,000) | |||
FXCM term loan | 73,200,000 | 73,200,000 | ||||
Investment in associated company | 75,000,000 | 75,000,000 | ||||
Investment in FXCM | $ 148,200,000 | $ 148,200,000 | ||||
Maximum | FXCM | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loan receivable interest rate percentage | 20.50% | |||||
Investment in FXCM | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||
Maximum percentage of all distributions | 75.00% | 75.00% | ||||
Number of directors appointed by Company | director | 3 | 3 | ||||
Number of directors appointed | director | 6 | 6 | ||||
Percentage of distributions from sale of assets or certain other events until loan repayment | 100.00% | 100.00% | ||||
Percentage of distributions from sale of assets or certain other events until next milestone amount | 50.00% | 50.00% | ||||
Distributions milestone after loan repayment | $ 350,000,000 | $ 350,000,000 | ||||
Percentage of distributions from sale of assets or certain other events until milestone two | 90.00% | 90.00% | ||||
Distributions milestone two after loan repayment | $ 600,000,000 | $ 600,000,000 | ||||
Percentage of distributions from sale of assets or certain other events thereafter | 60.00% | 60.00% | ||||
Investment in FXCM | Global Brokerage Holdings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% |
Fair Value Disclosures - Nonrec
Fair Value Disclosures - Nonrecurring Fair Value Measurements (Details) $ in Millions | 2 Months Ended | 3 Months Ended | 11 Months Ended | ||
Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Nov. 30, 2018USD ($) | |
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Oil and gas properties fair value | $ 51.6 | ||||
Investment in FXCM | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment impairment | $ 62.1 | $ 130.2 | |||
Investment in FXCM | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investments, fair value | $ 75 | $ 186.7 | $ 75 | ||
Investment In Golden Queen | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment impairment | $ 47.9 | $ 47.9 | |||
Investment In Golden Queen | Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investments, fair value | $ 62.3 | ||||
Measurement Input, Discount Rate | Investment in FXCM | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment, measurement input | 0.185 | 0.15 | 0.185 | ||
Measurement Input, Discount Rate | Investment In Golden Queen | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment, measurement input | 0.12 | ||||
Measurement Input, EBITDA Multiple | Investment in FXCM | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment, measurement input | 5.4 | ||||
Measurement Input, Revenue Multiple | Investment in FXCM | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investment, measurement input | 1.5 | ||||
Selling, general and other expenses | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of oil and gas properties | $ 55 |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 Rollforwards (Details) - USD ($) $ in Thousands | Sep. 01, 2016 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains (losses) (realized and unrealized) | $ 79,200 | $ 5,900 | $ (115,300) | |
Issuances | 0 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains (losses) (realized and unrealized) | 33,600 | 1,700 | 1,900 | |
Change in unrealized gains/(losses) included in other comprehensive income relating to instruments still held | (19,400) | |||
Transfer of investment from trading assets to loans to and investments in associated companies | $ 334,500 | 334,500 | ||
Corporate equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 22,270 | 21,739 | 40,906 | |
Total gains (losses) (realized and unrealized) | 24,914 | 3,353 | (8,463) | |
Purchases | 31,669 | 896 | 3,365 | |
Sales | (22,759) | (1,623) | (49) | |
Settlements | (3,977) | 52 | (671) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 75 | (2,147) | (13,349) | |
Ending Balance | 52,192 | 22,270 | 21,739 | |
Change in unrealized gains/(losses) relating to instruments still held | 23,665 | 2,606 | 291 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 48 | 313 | 38 | |
Total gains (losses) (realized and unrealized) | 0 | 60 | 0 | |
Purchases | 0 | (373) | 0 | |
Sales | 0 | 48 | 313 | |
Settlements | 0 | 0 | (38) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | (48) | 0 | 0 | |
Ending Balance | 0 | 48 | 313 | |
Change in unrealized gains/(losses) relating to instruments still held | 0 | 0 | 0 | |
Corporate debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 26,036 | 25,005 | 25,876 | |
Total gains (losses) (realized and unrealized) | (439) | (3,723) | (16,230) | |
Purchases | 10,352 | 36,850 | 27,242 | |
Sales | (23,364) | (34,077) | (29,347) | |
Settlements | (1,679) | (1,968) | (7,223) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | (1,422) | 3,949 | 24,687 | |
Ending Balance | 9,484 | 26,036 | 25,005 | |
Change in unrealized gains/(losses) relating to instruments still held | (2,606) | (3,768) | (18,799) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 522 | 523 | 0 | |
Total gains (losses) (realized and unrealized) | 0 | (1) | (27) | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 550 | |
Settlements | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | |
Ending Balance | 522 | 522 | 523 | |
Change in unrealized gains/(losses) relating to instruments still held | 0 | 1 | 0 | |
CDOs and CLOs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 42,184 | 54,354 | 85,092 | |
Total gains (losses) (realized and unrealized) | (16,258) | (27,238) | (14,918) | |
Purchases | 356,650 | 112,239 | 52,316 | |
Sales | (353,330) | (101,226) | (69,394) | |
Settlements | (10,247) | (367) | (2,750) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 17,106 | 4,422 | 4,008 | |
Ending Balance | 36,105 | 42,184 | 54,354 | |
Change in unrealized gains/(losses) relating to instruments still held | (9,495) | (20,262) | (7,628) | |
Municipal securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 0 | 27,257 | 0 | |
Total gains (losses) (realized and unrealized) | (1,547) | (1,462) | ||
Purchases | 0 | 0 | ||
Sales | (25,710) | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 0 | 28,719 | ||
Ending Balance | 0 | 27,257 | ||
Change in unrealized gains/(losses) relating to instruments still held | 0 | (1,462) | ||
Sovereign obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 0 | 120 | ||
Total gains (losses) (realized and unrealized) | 5 | |||
Purchases | 0 | |||
Sales | (125) | |||
Settlements | 0 | |||
Issuances | 0 | |||
Net transfers into (out of) Level 3 | 0 | |||
Ending Balance | 0 | |||
Change in unrealized gains/(losses) relating to instruments still held | 0 | |||
Residential mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 26,077 | 38,772 | 70,263 | |
Total gains (losses) (realized and unrealized) | (6,970) | (10,817) | (9,612) | |
Purchases | 3,118 | 6,805 | 623 | |
Sales | (12,816) | (26,193) | (12,249) | |
Settlements | (513) | (115) | (931) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 10,707 | 17,625 | (9,322) | |
Ending Balance | 19,603 | 26,077 | 38,772 | |
Change in unrealized gains/(losses) relating to instruments still held | 521 | (7,201) | (1,095) | |
Commercial mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 12,419 | 20,580 | 14,326 | |
Total gains (losses) (realized and unrealized) | (2,186) | (5,346) | (7,550) | |
Purchases | 1,436 | 3,275 | 3,132 | |
Sales | (471) | (5,263) | (2,024) | |
Settlements | (16,624) | (1,018) | (2,229) | |
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 16,312 | 191 | 14,925 | |
Ending Balance | 10,886 | 12,419 | 20,580 | |
Change in unrealized gains/(losses) relating to instruments still held | (4,000) | (6,976) | (7,243) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 105 | 0 | ||
Total gains (losses) (realized and unrealized) | (105) | 105 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Ending Balance | 0 | 105 | 0 | |
Change in unrealized gains/(losses) relating to instruments still held | 0 | (105) | ||
Other asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 61,129 | 40,911 | 42,925 | |
Total gains (losses) (realized and unrealized) | (9,934) | (17,705) | (14,381) | |
Purchases | 706,846 | 77,508 | 133,986 | |
Sales | (677,220) | (8,613) | (102,952) | |
Settlements | (27,641) | (25,799) | (8,769) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | (5) | (5,173) | (9,898) | |
Ending Balance | 53,175 | 61,129 | 40,911 | |
Change in unrealized gains/(losses) relating to instruments still held | (5,283) | (12,562) | (18,056) | |
Loans and other receivables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 47,304 | 81,872 | 189,289 | |
Total gains (losses) (realized and unrealized) | (5,137) | 24,794 | (42,566) | |
Purchases | 149,228 | 63,768 | 75,264 | |
Sales | (130,832) | (53,095) | (69,262) | |
Settlements | (15,311) | (34,622) | (46,851) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 1,733 | (35,413) | (24,002) | |
Ending Balance | 46,985 | 47,304 | 81,872 | |
Change in unrealized gains/(losses) relating to instruments still held | (8,457) | 17,451 | (52,003) | |
Investments at fair value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 329,944 | 314,359 | 199,794 | |
Total gains (losses) (realized and unrealized) | 76,636 | 20,975 | 54,538 | |
Purchases | 9,798 | 18,528 | 29,728 | |
Sales | (17,570) | (22,818) | (542) | |
Settlements | 0 | (1,100) | (1,107) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | (2,554) | 0 | 31,948 | |
Ending Balance | 396,254 | 329,944 | 314,359 | |
Change in unrealized gains/(losses) relating to instruments still held | 76,042 | 22,999 | 54,608 | |
Investment in FXCM | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 72,800 | 164,500 | 625,689 | |
Total gains (losses) (realized and unrealized) | 18,616 | 23,161 | (54,634) | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Settlements | (18,266) | (114,861) | (406,555) | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | |
Ending Balance | 73,150 | 72,800 | 164,500 | |
Change in unrealized gains/(losses) relating to instruments still held | 7,723 | 1,070 | (1,014) | |
Loans | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 3,486 | 378 | 10,469 | |
Total gains (losses) (realized and unrealized) | 84 | 196 | 0 | |
Purchases | (4,626) | (385) | 0 | |
Sales | 7,432 | 2,485 | 378 | |
Settlements | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Net transfers into (out of) Level 3 | 0 | 812 | (10,469) | |
Ending Balance | 6,376 | 3,486 | 378 | |
Change in unrealized gains/(losses) relating to instruments still held | (28) | (2,639) | 0 | |
Derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 6,746 | 3,441 | (242) | |
Total gains (losses) (realized and unrealized) | (3,237) | (1,638) | (1,760) | |
Purchases | (17) | 0 | 0 | |
Sales | 14,920 | 0 | 11,101 | |
Settlements | (1,335) | 5,558 | 31 | |
Issuances | 0 | 456 | 2,067 | |
Net transfers into (out of) Level 3 | 4,537 | (1,071) | (7,756) | |
Ending Balance | 21,614 | 6,746 | 3,441 | |
Change in unrealized gains/(losses) relating to instruments still held | (646) | (17,740) | (6,458) | |
Long-term debt | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 0 | |||
Total gains (losses) (realized and unrealized) | (30,347) | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Issuances | 84,860 | |||
Net transfers into (out of) Level 3 | 146,232 | |||
Ending Balance | 200,745 | 0 | ||
Change in unrealized gains/(losses) relating to instruments still held | 10,951 | |||
Other secured financings | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 0 | 418 | 544 | |
Total gains (losses) (realized and unrealized) | (418) | (126) | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Ending Balance | 0 | 418 | ||
Change in unrealized gains/(losses) relating to instruments still held | $ 0 | $ (126) |
Fair Value Disclosures - Analys
Fair Value Disclosures - Analysis of Level 3 Assets and Liabilities Narrative (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | $ 57,800 | $ 38,200 | $ 179,600 |
Transfers of assets from Level 3 to Level 2 | 12,300 | 54,900 | 133,200 |
Net gains (losses) on Level 3 assets (realized and unrealized) | 79,200 | 5,900 | (115,300) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 33,600 | 1,700 | 1,900 |
Excluded assets from unobservable quantitative information | 40,300 | 228,600 | |
Excluded liabilities from unobservable quantitative information | 500 | 4,200 | |
Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 16,300 | 17,400 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | (2,186) | (5,346) | (7,550) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (105) | 105 | |
Loans and other receivables | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 13,800 | ||
Transfers of assets from Level 3 to Level 2 | 40,900 | 37,800 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | (5,137) | 24,794 | (42,566) |
CDOs and CLOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 17,300 | 19,400 | |
Transfers of assets from Level 3 to Level 2 | 15,400 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (16,258) | (27,238) | (14,918) |
Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 15,300 | 19,600 | 17,500 |
Transfers of assets from Level 3 to Level 2 | 4,600 | 26,800 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | (6,970) | (10,817) | (9,612) |
Corporate equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 3 to Level 2 | 2,900 | 19,200 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | 24,914 | 3,353 | (8,463) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 0 | 60 | 0 |
Long-term debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 146,200 | ||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (30,347) | ||
Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 8,300 | 28,100 | |
Transfers of assets from Level 3 to Level 2 | 3,600 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (439) | (3,723) | (16,230) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 0 | (1) | (27) |
Other asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 16,900 | ||
Transfers of assets from Level 3 to Level 2 | 26,800 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (9,934) | (17,705) | (14,381) |
Investments at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 31,900 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | 76,636 | 20,975 | 54,538 |
Municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 28,700 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,547) | (1,462) | |
Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers of liabilities from Level 3 to Level 2 | 10,500 | ||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | $ 84 | $ 196 | $ 0 |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Details) $ in Thousands | 11 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018USD ($) | Dec. 31, 2017USD ($)$ / shares$ / Asset$ / Bond | Nov. 30, 2018 | Nov. 30, 2018$ / shares | Nov. 30, 2018$ / Bond | Nov. 30, 2018€ / Bond | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative assets | $ | $ 166,775 | $ 179,488 | ||||
Derivative liability | $ | 1,127,653 | 255,394 | ||||
Long-term debt, fair value | $ | 686,170 | 606,956 | ||||
Level 3 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative assets | $ | 5,922 | 9,295 | ||||
Long-term debt, fair value | $ | 200,745 | 0 | ||||
Level 3 | Price | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, measurement input | 78 | 68 | ||||
Level 3 | Price | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, measurement input | 94 | 110 | ||||
Level 3 | Price | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, measurement input | 86 | 96 | ||||
Level 3 | Non-exchange traded securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | 43,644 | $ 18,109 | ||||
Level 3 | Non-exchange traded securities | Price | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 1 | |||||
Level 3 | Non-exchange traded securities | Price | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 75 | |||||
Level 3 | Non-exchange traded securities | Price | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 12 | |||||
Level 3 | Non-exchange traded securities | Price | Market approach | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Non-exchange traded securities | Price | Market approach | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 75 | |||||
Level 3 | Non-exchange traded securities | Price | Market approach | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 33 | |||||
Level 3 | Non-exchange traded securities | Underlying stock price | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 6 | |||||
Level 3 | Non-exchange traded securities | Comparable asset price | Comparable pricing | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / Asset | 7 | |||||
Level 3 | Non-exchange traded securities | Transaction level | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 47 | |||||
Level 3 | Private equity securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 368,231 | $ 110,010 | ||||
Level 3 | Private equity securities | Price | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 7 | |||||
Level 3 | Private equity securities | Price | Market approach | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Private equity securities | Price | Market approach | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 250 | |||||
Level 3 | Private equity securities | Price | Market approach | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 108 | |||||
Level 3 | Private equity securities | Discount rate/yield | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.20 | |||||
Level 3 | Private equity securities | Discount rate/yield | Scenario analysis | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.20 | |||||
Level 3 | Private equity securities | Revenue growth | Scenario analysis | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0 | |||||
Level 3 | Private equity securities | Duration (years) | Contingent claims analysis | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 4 years | |||||
Level 3 | Private equity securities | Volatility | Contingent claims analysis | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.25 | |||||
Level 3 | Private equity securities | Volatility | Contingent claims analysis | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.35 | |||||
Level 3 | Private equity securities | Volatility | Contingent claims analysis | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.30 | |||||
Level 3 | Private equity securities | Transaction level | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Private equity securities | Transaction level | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 250 | |||||
Level 3 | Private equity securities | Transaction level | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 172 | |||||
Level 3 | Private equity securities | Transaction level | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 169 | |||||
Level 3 | Corporate debt securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 9,484 | $ 26,036 | ||||
Level 3 | Corporate debt securities | Price | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 10 | |||||
Level 3 | Corporate debt securities | Discount rate/yield | Convertible bond model | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | |||||
Level 3 | Corporate debt securities | Estimated recovery percentage | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.46 | |||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.17 | |||||
Level 3 | Corporate debt securities | Volatility | Convertible bond model | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.40 | |||||
Level 3 | Corporate debt securities | Transaction level | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 80 | |||||
Level 3 | CDOs and CLOs | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | 36,105 | $ 38,845 | ||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.03 | 0.11 | ||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.16 | ||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.12 | 0.14 | ||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | 0.02 | ||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.45 | 0.41 | ||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.23 | ||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.20 | |||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.10 | |||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.20 | |||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.18 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.01 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | |||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.25 | 0.25 | ||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.30 | 0.30 | ||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.26 | ||||
Level 3 | Residential mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 19,603 | $ 26,077 | ||||
Level 3 | Residential mortgage-backed securities | Price | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 100 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.06 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.10 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.03 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.03 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.19 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.10 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.04 | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 2 years | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 4 years | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 years | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 13 years | |||||
Level 3 | Residential mortgage-backed securities | Loss severity | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0 | |||||
Level 3 | Commercial mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 9,444 | $ 12,419 | ||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 49 | |||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 52 | |||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 56 | |||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 54 | |||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | 0.02 | ||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.15 | ||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.12 | 0.06 | ||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | |||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | |||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.32 | |||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.28 | |||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | 0.08 | ||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.65 | 0.85 | ||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.44 | 0.45 | ||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 1 year | 1 year | ||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 years | 3 years | ||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 1 year | 2 years | ||||
Level 3 | Commercial mortgage-backed securities | Loss severity | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.64 | |||||
Level 3 | Other asset-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 53,175 | $ 61,129 | ||||
Level 3 | Other asset-backed securities | Price | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 100 | 100 | ||||
Level 3 | Other asset-backed securities | Discount rate/yield | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.05 | 0.06 | ||||
Level 3 | Other asset-backed securities | Discount rate/yield | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.39 | 0.12 | ||||
Level 3 | Other asset-backed securities | Discount rate/yield | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.09 | 0.08 | ||||
Level 3 | Other asset-backed securities | Estimated recovery percentage | Scenario analysis | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.14 | |||||
Level 3 | Other asset-backed securities | Cumulative loss rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0 | 0.12 | ||||
Level 3 | Other asset-backed securities | Cumulative loss rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.33 | 0.30 | ||||
Level 3 | Other asset-backed securities | Cumulative loss rate | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.23 | 0.22 | ||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 1 year | 1 year | ||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 2 years | 6 years | ||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 1 year | 2 years | ||||
Level 3 | Loans and other receivables | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 46,078 | $ 46,121 | ||||
Level 3 | Loans and other receivables | Price | Market approach | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 54 | 50 | ||||
Level 3 | Loans and other receivables | Price | Market approach | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 100 | 100 | ||||
Level 3 | Loans and other receivables | Price | Market approach | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 95 | 96 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.76 | |||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.13 | 0.13 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 1.07 | 1.17 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.78 | 1.05 | ||||
Level 3 | Derivatives | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative assets | $ | 4,602 | $ 9,295 | ||||
Derivative liability | $ | 27,536 | $ 16,041 | ||||
Level 3 | Derivatives | Price | Total return swaps | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 97 | |||||
Level 3 | Derivatives | Price | Total return swaps | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 101 | |||||
Level 3 | Derivatives | Price | Total return swaps | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 106 | |||||
Level 3 | Derivatives | Price | Total return swaps | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 103 | |||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 97 | |||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 101 | |||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 106 | |||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 103 | |||||
Level 3 | Derivatives | Price | Interest rate swaps | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 20 | |||||
Level 3 | Derivatives | Price | Interest rate swaps | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 20 | |||||
Level 3 | Derivatives | Price | Unfunded commitments | Market approach | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 99 | |||||
Level 3 | Derivatives | Discount rate/yield | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.26 | |||||
Level 3 | Derivatives | Constant prepayment rate | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.20 | |||||
Level 3 | Derivatives | Constant default rate | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.02 | |||||
Level 3 | Derivatives | Loss severity | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.25 | |||||
Level 3 | Derivatives | Default probability | Equity options | Option model/default rate | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0 | 0 | ||||
Level 3 | Derivatives | Volatility | Equity options | Volatility benchmarking | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.39 | |||||
Level 3 | Derivatives | Volatility | Equity options | Volatility benchmarking | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.62 | |||||
Level 3 | Derivatives | Volatility | Equity options | Volatility benchmarking | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.50 | |||||
Level 3 | Derivatives | Price | Interest rate swaps | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 0.0800 | |||||
Level 3 | Investment in FXCM | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 73,150 | $ 72,800 | ||||
Level 3 | Investment in FXCM | Term based on the pay off (years) | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 0 months | 0 months | ||||
Level 3 | Investment in FXCM | Term based on the pay off (years) | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 months 18 days | 1 year | ||||
Level 3 | Investment in FXCM | Term based on the pay off (years) | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 months | 2 months | ||||
Level 3 | Loans | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, fair value | $ | $ 6,376 | |||||
Level 3 | Loans | Price | Minimum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, measurement input | 50 | |||||
Level 3 | Loans | Price | Maximum | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, measurement input | 101 | |||||
Level 3 | Loans | Price | Weighted Average | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, measurement input | 74 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Gains (Losses) Due to Changes In Instrument Specific Credit Risk For Loans and Other Receivables and Loan Commitments Measured at Fair Value Under Fair Value Option (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans and other receivables | $ (3,856) | $ 22,088 | $ (68,812) |
Changes in instrument specific credit risk | 916 | 0 | 0 |
Financial instruments sold | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans | (46) | 0 | 9 |
Loan commitments | (739) | 230 | 5,509 |
Long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Changes in instrument specific credit risk | 38,064 | (34,609) | (10,745) |
Other changes in fair value | 48,748 | 47,291 | 30,995 |
Short-term borrowings | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other changes in fair value | $ 0 | $ (681) | $ 0 |
Fair Value Disclosures - Summ_2
Fair Value Disclosures - Summary of Amount by Which Contractual Principal Exceeds Fair Value for Loans and Other Receivables Measured at Fair Value Under Fair Value Option (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Loans and other receivables | $ 806,798 | $ 752,076 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 24,389 | 159,462 |
Long-term debt and short-term borrowings | 114,669 | 32,839 |
All loans and other receivables 90 days or greater past due | $ 20,500 | $ 38,700 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Option Election Narrative (Details) $ in Thousands, shares in Millions | 9 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Nov. 30, 2018USD ($)directorshares | Dec. 31, 2017USD ($)shares | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jul. 13, 2018 | Jul. 12, 2018 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Revenues | $ 5,009,728 | $ 5,048,906 | $ 3,848,011 | |||||
Trading assets, at fair value | 17,463,256 | 16,082,676 | ||||||
Jefferies Group | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 105,300 | 55,100 | ||||||
Loans and other receivables 90 days or greater past due | 19,400 | 37,400 | ||||||
HRG | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Trading assets, at fair value | 789,900 | |||||||
Cash consideration paid for shares | 475,600 | |||||||
Revenue of investee | $ 2,358,100 | $ 5,008,500 | $ 5,048,600 | |||||
Net income from continuing operations of investee | 443,700 | 102,900 | 144,200 | |||||
Net income (loss) of investee | 941,600 | 273,200 | (33,900) | |||||
Net income (loss) attributable to HRG | $ 847,700 | $ 106,000 | $ (198,800) | |||||
Spectrum Brands | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Trading assets, at fair value | $ 371,100 | |||||||
Number of directors appointed by Company | director | 1 | |||||||
HRG Group/Spectrum Brands | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Changes in fair value of investments reflected as principal transactions | $ (418,800) | $ 64,800 | 93,200 | |||||
Spectrum Brands | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Shares owned, number | shares | 7.5 | |||||||
Ownership percentage | 14.00% | 14.00% | ||||||
Spectrum Brands | HRG | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Ownership percentage | 62.00% | |||||||
HRG | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Shares owned, number | shares | 46.6 | |||||||
Percentage of outstanding common stock owned | 23.00% | |||||||
Ownership percentage | 23.00% | 23.00% | ||||||
KCG | Jefferies Group | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Changes in fair value of investments reflected as principal transactions | $ 93,400 | 19,600 | ||||||
Investment banking | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Revenues | $ 1,904,870 | $ 1,764,285 | 1,193,973 | |||||
Investment banking | KCG | Jefferies Group | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Revenues | $ 2,900 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 707,960 | $ 578,014 |
US Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 34,800 | $ 99,700 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts (Details) $ in Thousands | Nov. 30, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 2,580,706 | $ 3,497,969 |
Fair Value, Liabilities | 3,640,703 | 3,745,908 |
Total derivative assets | 166,775 | 179,488 |
Total derivative liability | 1,127,653 | 255,394 |
Rule change impact, derivative asset | 166,775 | 179,488 |
Rule change impact, derivative liability | 1,127,653 | 255,394 |
Designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | $ 0 |
Number of Contracts, Assets | Contract | 0 | 0 |
Fair Value, Liabilities | $ 29,647 | $ 2,420 |
Number of Contracts, Liabilities | Contract | 1 | 1 |
Not Designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 2,580,706 | $ 3,497,969 |
Fair Value, Liabilities | 3,611,056 | 3,743,488 |
Counterparty/cash-collateral netting, Assets | (2,413,931) | (3,318,481) |
Counterparty/cash-collateral netting, Liabilities | (2,513,050) | (3,490,514) |
Total derivative assets | 166,775 | 179,488 |
Total derivative liability | 1,098,006 | 252,974 |
Not Designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 796,493 | $ 1,717,058 |
Number of Contracts, Assets | Contract | 35,652 | 38,941 |
Fair Value, Liabilities | $ 904,043 | $ 1,708,776 |
Number of Contracts, Liabilities | Contract | 69,305 | 12,828 |
Not Designated as accounting hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 311,270 | $ 366,541 |
Number of Contracts, Assets | Contract | 10,086 | 6,463 |
Fair Value, Liabilities | $ 314,989 | $ 349,512 |
Number of Contracts, Liabilities | Contract | 1,602 | 4,612 |
Not Designated as accounting hedges | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,410,148 | $ 1,373,016 |
Number of Contracts, Assets | Contract | 2,109,810 | 2,728,750 |
Fair Value, Liabilities | $ 2,377,133 | $ 1,638,258 |
Number of Contracts, Liabilities | Contract | 1,782,600 | 2,118,526 |
Not Designated as accounting hedges | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 37,823 | $ 3,093 |
Number of Contracts, Assets | Contract | 8,546 | 7,249 |
Fair Value, Liabilities | $ 1,717 | $ 5,141 |
Number of Contracts, Liabilities | Contract | 5,683 | 6,047 |
Not Designated as accounting hedges | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 24,972 | $ 38,261 |
Number of Contracts, Assets | Contract | 130 | 130 |
Fair Value, Liabilities | $ 13,174 | $ 41,801 |
Number of Contracts, Liabilities | Contract | 93 | 191 |
Rule Change by London Clearing House | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Rule change impact, derivative asset | $ 800,000 | |
Rule change impact, derivative liability | $ 800,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Interest expense of Jefferies | $ 1,824 | $ 6,033 | $ 0 |
Unrealized and realized gains (losses) | (177,436) | (319,318) | (649,789) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 67,291 | 3,171 | (36,559) |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 226 | 4,376 | 20,401 |
Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (267,187) | (319,775) | (635,305) |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 21,785 | (9,049) | (3,339) |
Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 449 | 1,959 | 5,013 |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Interest expense of Jefferies | (25,539) | (2,091) | 0 |
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Interest expense of Jefferies | $ 27,363 | $ 8,124 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Details) $ in Thousands | Nov. 30, 2018USD ($) |
OTC Derivative Assets | |
0-12 Months | $ 171,895 |
1-5 Years | 160,975 |
Greater Than 5 Years | 112,083 |
Cross- Maturity Netting | (96,421) |
Total | 348,532 |
Cross product counterparty netting | (18,743) |
Total | 329,789 |
OTC Derivative Liabilities | |
0-12 Months | 192,111 |
1-5 Years | 248,475 |
Greater Than 5 Years | 233,449 |
Cross-Maturity Netting | (96,421) |
Total | 577,614 |
Cross product counterparty netting | (18,743) |
Total OTC derivative liabilities included in Trading liabilities | 558,871 |
Exchange traded derivative assets and other credit agreements | 42,200 |
Cash collateral received | 205,300 |
Exchange traded derivative liabilities and other credit agreements | 873,500 |
Cash collateral pledged | 304,700 |
Commodity swaps, options and forwards | |
OTC Derivative Assets | |
0-12 Months | 4,006 |
1-5 Years | 6,185 |
Greater Than 5 Years | 0 |
Cross- Maturity Netting | (1,445) |
Total | 8,746 |
OTC Derivative Liabilities | |
0-12 Months | 1,074 |
1-5 Years | 371 |
Greater Than 5 Years | 0 |
Cross-Maturity Netting | (1,445) |
Total | 0 |
Equity swaps and options | |
OTC Derivative Assets | |
0-12 Months | 1,769 |
1-5 Years | 13,966 |
Greater Than 5 Years | 4,934 |
Cross- Maturity Netting | (1,889) |
Total | 18,780 |
OTC Derivative Liabilities | |
0-12 Months | 52,466 |
1-5 Years | 83,938 |
Greater Than 5 Years | 35,730 |
Cross-Maturity Netting | (1,889) |
Total | 170,245 |
Credit default swaps | |
OTC Derivative Assets | |
0-12 Months | 66 |
1-5 Years | 12,060 |
Greater Than 5 Years | 3,984 |
Cross- Maturity Netting | (899) |
Total | 15,211 |
OTC Derivative Liabilities | |
0-12 Months | 164 |
1-5 Years | 1,197 |
Greater Than 5 Years | 1,548 |
Cross-Maturity Netting | (899) |
Total | 2,010 |
Total return swaps | |
OTC Derivative Assets | |
0-12 Months | 95,130 |
1-5 Years | 19,519 |
Greater Than 5 Years | 0 |
Cross- Maturity Netting | (1,786) |
Total | 112,863 |
OTC Derivative Liabilities | |
0-12 Months | 64,296 |
1-5 Years | 11,549 |
Greater Than 5 Years | 0 |
Cross-Maturity Netting | (1,786) |
Total | 74,059 |
Foreign currency forwards, swaps and options | |
OTC Derivative Assets | |
0-12 Months | 39,162 |
1-5 Years | 15,942 |
Greater Than 5 Years | 0 |
Cross- Maturity Netting | (12,528) |
Total | 42,576 |
OTC Derivative Liabilities | |
0-12 Months | 43,593 |
1-5 Years | 15,546 |
Greater Than 5 Years | 0 |
Cross-Maturity Netting | (12,528) |
Total | 46,611 |
Fixed income forwards | |
OTC Derivative Assets | |
0-12 Months | 3,911 |
1-5 Years | 0 |
Greater Than 5 Years | 0 |
Cross- Maturity Netting | 0 |
Total | 3,911 |
Interest rate swaps, options and forwards | |
OTC Derivative Assets | |
0-12 Months | 27,851 |
1-5 Years | 93,303 |
Greater Than 5 Years | 103,165 |
Cross- Maturity Netting | (77,874) |
Total | 146,445 |
OTC Derivative Liabilities | |
0-12 Months | 30,518 |
1-5 Years | 135,874 |
Greater Than 5 Years | 196,171 |
Cross-Maturity Netting | (77,874) |
Total | $ 284,689 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 163,656 |
BBB- to BBB | 21,222 |
BB or lower | 119,713 |
Unrated | 25,198 |
Total | $ 329,789 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Credit Related Derivative Contracts (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2017 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 193.1 | $ 129 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 145.2 | 218.2 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 25.7 | 3 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 57.7 | 129.1 |
Non-investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 167.4 | 126 |
Non-investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 84.5 | 89.1 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | 0 |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 3 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Contingent Features (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 93.5 | $ 95.1 |
Collateral posted | (61.5) | (86.4) |
Collateral received | 91.5 | 5.6 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 123.3 | $ 14.3 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,838,688 | $ 2,843,911 |
Repurchase Agreements | 17,193,486 | 19,829,249 |
Total | 19,032,174 | 22,673,160 |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 1,505,218 | 2,353,798 |
Repurchase Agreements | 487,124 | 214,413 |
Total | 1,992,342 | 2,568,211 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 333,221 | 470,908 |
Repurchase Agreements | 1,853,309 | 2,336,702 |
Total | 2,186,530 | 2,807,610 |
Mortgage- and asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 249 | 0 |
Repurchase Agreements | 2,820,543 | 2,562,268 |
Total | 2,820,792 | 2,562,268 |
U.S. government and federal agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 19,205 |
Repurchase Agreements | 8,181,947 | 11,792,534 |
Total | 8,181,947 | 11,811,739 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 604,274 | 444,861 |
Total | 604,274 | 444,861 |
Sovereign securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 2,945,521 | 2,023,530 |
Total | 2,945,521 | 2,023,530 |
Loans and other receivables | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 300,768 | 454,941 |
Total | $ 300,768 | $ 454,941 |
Collateralized Transactions -_2
Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,838,688 | $ 2,843,911 |
Repurchase Agreements | 17,193,486 | 19,829,249 |
Total | 19,032,174 | 22,673,160 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 807,347 | 1,676,940 |
Repurchase Agreements | 7,849,052 | 10,780,474 |
Total | 8,656,399 | 12,457,414 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 1,915,325 | 4,058,228 |
Total | 1,915,325 | 4,058,228 |
31 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 560,417 | 741,971 |
Repurchase Agreements | 6,042,951 | 3,211,464 |
Total | 6,603,368 | 3,953,435 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 470,924 | 425,000 |
Repurchase Agreements | 1,386,158 | 1,779,083 |
Total | $ 1,857,082 | $ 2,204,083 |
Collateralized Transactions - N
Collateralized Transactions - Narrative (Details) - USD ($) $ in Billions | Nov. 30, 2018 | Dec. 31, 2017 |
Collateralized Transactions [Abstract] | ||
Fair value of securities received as collateral that may be sold or repledged | $ 23.1 | $ 27.1 |
Securitization Activities - Act
Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Details) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Securitization Activities [Abstract] | |||
Transferred assets | $ 7,159.3 | $ 4,552.9 | $ 5,786 |
Proceeds on new securitizations | 7,165.3 | 4,594.5 | 5,809 |
Cash flows received on retained interests | $ 48.5 | $ 28.7 | $ 28.2 |
Securitization Activities - Sum
Securitization Activities - Summary of Retained Interests in SPEs (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2017 |
Residential mortgage-backed securities | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
U.S. government agency residential mortgage-backed securities | $ 13,633.5 | $ 6,383.5 |
Retained Interests | 365.3 | 28.2 |
Commercial mortgage-backed securities | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
U.S. government agency commercial mortgage-backed securities | 2,027.6 | 2,075.7 |
Retained Interests | 185.6 | 81.4 |
CLOs | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
CLOs | 3,512 | 3,957.8 |
Retained Interests | 20.9 | 20.3 |
Consumer and other loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Consumer and other loans | 604.1 | 247.6 |
Retained Interests | $ 48.9 | $ 47.8 |
Available for Sale Securities_3
Available for Sale Securities and Other Investments - Amortized Cost, Gross Unrealized Gains and Losses and Estimated Fair Value of Available for Sale Investments (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | $ 1,411,762 | $ 627,922 |
Debt securities, available for sale securities, gross unrealized gains | 378 | 335 |
Debt securities, available for sale securities, gross unrealized losses | 2,254 | 182 |
Debt securities, available for sale securities, estimated fair value | 1,409,886 | 628,075 |
Equity securities, available for sale securities, amortized cost | 52,575 | |
Equity securities, available for sale securities, gross unrealized gains | 35,911 | |
Equity securities, available for sale securities, gross unrealized losses | 0 | |
Equity securities, available for sale securities, estimated fair value | 88,486 | |
Available for sale securities, amortized cost Basis | 680,497 | |
Available for sale securities, gross unrealized gains | 36,246 | |
Available for sale securities, gross unrealized losses | 182 | |
Available-for-sale Securities | 716,561 | |
U.S. government and federal agency securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 1,073,038 | 552,847 |
Debt securities, available for sale securities, gross unrealized gains | 1 | 0 |
Debt securities, available for sale securities, gross unrealized losses | 183 | 42 |
Debt securities, available for sale securities, estimated fair value | 1,072,856 | 552,805 |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 211,209 | 34,381 |
Debt securities, available for sale securities, gross unrealized gains | 376 | 272 |
Debt securities, available for sale securities, gross unrealized losses | 1,067 | 92 |
Debt securities, available for sale securities, estimated fair value | 210,518 | 34,561 |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 16,068 | 5,857 |
Debt securities, available for sale securities, gross unrealized gains | 0 | 17 |
Debt securities, available for sale securities, gross unrealized losses | 426 | 4 |
Debt securities, available for sale securities, estimated fair value | 15,642 | 5,870 |
Other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 111,447 | 34,837 |
Debt securities, available for sale securities, gross unrealized gains | 1 | 46 |
Debt securities, available for sale securities, gross unrealized losses | 578 | 44 |
Debt securities, available for sale securities, estimated fair value | $ 110,870 | 34,839 |
Common stocks: Banks, trusts and insurance companies | ||
Schedule of Investments [Line Items] | ||
Equity securities, available for sale securities, amortized cost | 35,071 | |
Equity securities, available for sale securities, gross unrealized gains | 17,500 | |
Equity securities, available for sale securities, gross unrealized losses | 0 | |
Equity securities, available for sale securities, estimated fair value | 52,571 | |
Common stocks: Industrial, miscellaneous and all other | ||
Schedule of Investments [Line Items] | ||
Equity securities, available for sale securities, amortized cost | 17,504 | |
Equity securities, available for sale securities, gross unrealized gains | 18,411 | |
Equity securities, available for sale securities, gross unrealized losses | 0 | |
Equity securities, available for sale securities, estimated fair value | $ 35,915 |
Available for Sale Securities_4
Available for Sale Securities and Other Investments - Narrative (Details) $ in Millions | Nov. 30, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Other investment not readily marketable, fair value | $ 230 |
Available for Sale Securities_5
Available for Sale Securities and Other Investments - Amortized Cost and Estimated Fair Value of Investments Classified as Available for Sale By Contractual Maturity) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due within one year, amortized cost | $ 1,073,038 | |
Fixed maturities investments excluding mortgage-backed and asset-backed securities, amortized cost | 1,073,038 | |
Mortgage-backed and asset-backed securities, amortized cost | 338,724 | |
Debt securities, available for sale securities, amortized cost | 1,411,762 | $ 627,922 |
Estimated Fair Value | ||
Due within one year, estimated fair value | 1,072,856 | |
Fixed maturities investments excluding mortgage-backed and asset-backed securities, estimated fair value | 1,072,856 | |
Mortgage-backed and asset-backed securities, estimated fair value | 337,030 | |
Debt securities, available for sale securities, estimated fair value | $ 1,409,886 | $ 628,075 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Consolidated VIEs (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Variable Interest Entity [Line Items] | ||||||
Cash | $ 5,258,809 | $ 5,275,480 | $ 3,807,558 | |||
Financial instruments owned | 18,873,142 | 16,799,237 | ||||
Securities purchased under agreement to resell | 2,785,758 | 3,689,559 | ||||
Receivables | 6,287,401 | 5,419,015 | ||||
Other | 1,859,561 | 2,412,180 | ||||
Total assets | 47,131,095 | [1] | 47,169,108 | [1] | 45,071,307 | |
Other secured financings | 1,534,271 | 1,029,485 | ||||
Total liabilities | [1] | 36,907,059 | 36,478,536 | |||
Jefferies Group | ||||||
Variable Interest Entity [Line Items] | ||||||
Other | 35,200 | 34,600 | ||||
Secured financings eliminated in consolidation | 1,000 | 44,100 | ||||
Securitization Vehicles | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash | 0 | 11,700 | ||||
Financial instruments owned | 0 | 37,600 | ||||
Securities purchased under agreement to resell | 883,100 | 729,300 | ||||
Receivables | 626,000 | 318,100 | ||||
Other | 78,400 | 15,500 | ||||
Total assets | 1,587,500 | 1,112,200 | ||||
Other secured financings | 1,535,300 | 1,073,500 | ||||
Other | 45,900 | 38,300 | ||||
Total liabilities | 1,581,200 | 1,111,800 | ||||
Eliminations | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | (122,410) | (70,321) | $ (82,681) | |||
Intercompany payables | $ 44,100 | $ 32,000 | ||||
[1] | Total assets include assets related to variable interest entities of $704.4 million and $382.9 million at November 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,535.8 million and $1,031.0 million at November 30, 2018 and December 31, 2017, respectively. See Note 10 for additional information related to variable interest entities. |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 11 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | $ 746.4 | $ 579.6 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 35.5 | 23.7 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying amount of equity investment | 203.6 | 133 |
Unfunded equity commitment related to investments | 11.1 | 9.1 |
Financial statement carrying amount, assets | 203.6 | 133 |
Agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 2,913 | 1,829.6 |
Non-agency mortgage- and other asset-backed securities | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 170.5 | 253.2 |
Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Automobile loan receivables securitized | 552.2 | |
JCP Entities | Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity commitments | 139.3 | 148.1 |
Funded equity commitments | 121.3 | 126.3 |
Carrying amount of equity investment | $ 35.5 | $ 23.7 |
Variable Interest Entities - _2
Variable Interest Entities - Schedule of Nonconsolidated VIEs (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | $ 746.4 | $ 579.6 |
Financial statement carrying amount, liabilities | 0 | 8.9 |
Maximum Exposure to Loss | 1,646.7 | 1,977.6 |
VIE Assets | 12,382.4 | 12,386.9 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 45.2 | 168.1 |
Financial statement carrying amount, liabilities | 0 | 8.9 |
Maximum Exposure to Loss | 571.4 | 1,030.4 |
VIE Assets | 3,281.9 | 5,364.3 |
Consumer loan vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 462.1 | 254.8 |
Financial statement carrying amount, liabilities | 0 | 0 |
Maximum Exposure to Loss | 807.1 | 759.8 |
VIE Assets | 3,273.1 | 2,322.7 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 35.5 | 23.7 |
Financial statement carrying amount, liabilities | 0 | 0 |
Maximum Exposure to Loss | 53.5 | 45.4 |
VIE Assets | 108.3 | 75 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial statement carrying amount, assets | 203.6 | 133 |
Financial statement carrying amount, liabilities | 0 | 0 |
Maximum Exposure to Loss | 214.7 | 142 |
VIE Assets | $ 5,719.1 | $ 4,624.9 |
Loans to and Investments in A_3
Loans to and Investments in Associated Companies - Summary of Loans to and Investments in Associated Companies (Details) $ in Thousands | Oct. 31, 2017USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2018USD ($)Seat | Nov. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2018 | Jun. 05, 2018 | Jun. 04, 2018 |
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 2,066,829 | $ 2,125,098 | $ 2,125,098 | $ 1,757,369 | |||||||
Income (loss) related to associated companies | 57,023 | (76,864) | (74,901) | 154,598 | |||||||
Income (losses) related to Jefferies associated companies | 73,662 | 109,395 | 17,184 | ||||||||
Contributions to (distributions from) associated companies, net | (180,876) | 80,942 | (132,070) | ||||||||
Other, including foreign exchange and unrealized gain (losses) | 400,694 | (173,705) | 328,017 | ||||||||
Loans to and investments in associated companies ending balance | $ 2,417,332 | $ 2,417,332 | 2,417,332 | 2,066,829 | 2,125,098 | ||||||
Noncontrolling interests | $ 18,391 | $ 18,391 | $ 18,391 | 33,022 | |||||||
National Beef | Discontinued operations, disposed of by sale | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Ownership percentage | 48.00% | ||||||||||
Garcadia Companies | Discontinued operations, disposed of by sale | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Percentage of equity interest sold | 100.00% | ||||||||||
Golden Queen | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | ||||||||
Noncontrolling interests | $ 15,100 | $ 15,100 | $ 15,100 | 30,500 | 32,800 | ||||||
54 Madison | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Noncontrolling interests | 95,300 | ||||||||||
Jefferies Finance | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | 655,467 | 490,464 | 490,464 | 528,575 | |||||||
Income (loss) related to associated companies | 0 | 0 | 0 | ||||||||
Income (losses) related to Jefferies associated companies | 59,138 | 90,204 | (1,761) | ||||||||
Contributions to (distributions from) associated companies, net | 13,955 | 74,799 | (36,350) | ||||||||
Other, including foreign exchange and unrealized gain (losses) | 0 | 0 | 0 | ||||||||
Loans to and investments in associated companies ending balance | $ 728,560 | $ 728,560 | $ 728,560 | 655,467 | 490,464 | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | ||||||||
National Beef | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 0 | ||||||||||
Income (loss) related to associated companies | $ 26,800 | $ 58,900 | $ 110,000 | 110,049 | |||||||
Income (losses) related to Jefferies associated companies | 0 | ||||||||||
Contributions to (distributions from) associated companies, net | (48,656) | ||||||||||
Other, including foreign exchange and unrealized gain (losses) | 592,237 | ||||||||||
Loans to and investments in associated companies ending balance | $ 653,630 | $ 653,630 | $ 653,630 | 0 | |||||||
Ownership percentage | 79.00% | ||||||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | 31.00% | |||||||
Jefferies LoanCore | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 0 | 154,731 | 154,731 | 288,741 | |||||||
Income (loss) related to associated companies | 0 | 0 | |||||||||
Income (losses) related to Jefferies associated companies | 22,368 | 21,221 | |||||||||
Contributions to (distributions from) associated companies, net | (3,994) | (155,231) | |||||||||
Other, including foreign exchange and unrealized gain (losses) | (173,105) | 0 | |||||||||
Loans to and investments in associated companies ending balance | 0 | 154,731 | |||||||||
Proceeds from sale of associated companies | $ 173,100 | ||||||||||
Berkadia | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | 210,594 | 184,443 | 184,443 | 190,986 | |||||||
Income (loss) related to associated companies | 80,092 | 93,801 | 94,201 | ||||||||
Income (losses) related to Jefferies associated companies | 20,001 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | (65,197) | (67,384) | (100,766) | ||||||||
Other, including foreign exchange and unrealized gain (losses) | (262) | (266) | 22 | ||||||||
Loans to and investments in associated companies ending balance | $ 245,228 | $ 245,228 | $ 245,228 | 210,594 | 184,443 | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
FXCM | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 158,856 | 336,258 | 336,258 | 0 | |||||||
Income (loss) related to associated companies | (83,174) | (177,644) | 1,919 | ||||||||
Income (losses) related to Jefferies associated companies | 0 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | 0 | 0 | 0 | ||||||||
Other, including foreign exchange and unrealized gain (losses) | (651) | 242 | 334,339 | ||||||||
Loans to and investments in associated companies ending balance | $ 75,031 | $ 75,031 | $ 75,031 | 158,856 | 336,258 | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | ||||||||
Garcadia Companies | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 179,143 | 185,815 | 185,815 | 172,660 | |||||||
Income (loss) related to associated companies | 21,646 | 48,198 | 52,266 | ||||||||
Income (losses) related to Jefferies associated companies | 0 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | (26,962) | (54,870) | (39,111) | ||||||||
Other, including foreign exchange and unrealized gain (losses) | (173,827) | 0 | 0 | ||||||||
Loans to and investments in associated companies ending balance | $ 0 | $ 0 | 0 | 179,143 | 185,815 | ||||||
Linkem | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | 192,136 | 154,000 | 154,000 | 150,149 | |||||||
Income (loss) related to associated companies | (20,534) | (32,561) | (22,867) | ||||||||
Income (losses) related to Jefferies associated companies | 0 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | 542 | 31,996 | 33,303 | ||||||||
Other, including foreign exchange and unrealized gain (losses) | (6,987) | 38,701 | (6,585) | ||||||||
Loans to and investments in associated companies ending balance | $ 165,157 | $ 165,157 | $ 165,157 | 192,136 | 154,000 | ||||||
Equity method investment, ownership percentage | 42.00% | 42.00% | 42.00% | ||||||||
HomeFed | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 341,874 | 302,231 | 302,231 | 275,378 | |||||||
Income (loss) related to associated companies | (4,332) | 7,725 | 23,893 | ||||||||
Income (losses) related to Jefferies associated companies | 0 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | 0 | 31,918 | 2,960 | ||||||||
Other, including foreign exchange and unrealized gain (losses) | 0 | 0 | 0 | ||||||||
Loans to and investments in associated companies ending balance | $ 337,542 | $ 337,542 | $ 337,542 | 341,874 | 302,231 | ||||||
Equity method investment, ownership percentage | 70.00% | 70.00% | 70.00% | ||||||||
Golden Queen | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 105,005 | 111,302 | 111,302 | 114,323 | |||||||
Income (loss) related to associated companies | (51,990) | (7,733) | (3,021) | ||||||||
Income (losses) related to Jefferies associated companies | 0 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | 10,941 | 1,436 | 0 | ||||||||
Other, including foreign exchange and unrealized gain (losses) | 0 | 0 | 0 | ||||||||
Loans to and investments in associated companies ending balance | $ 63,956 | $ 63,956 | $ 63,956 | 105,005 | 111,302 | ||||||
Equity method investment, ownership percentage | 38.00% | 38.00% | 38.00% | ||||||||
54 Madison | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 123,010 | 161,400 | 161,400 | 0 | |||||||
Income (loss) related to associated companies | 11,288 | (6,224) | 4,255 | ||||||||
Income (losses) related to Jefferies associated companies | 0 | 0 | 0 | ||||||||
Contributions to (distributions from) associated companies, net | (47,224) | 35,204 | 153,503 | ||||||||
Other, including foreign exchange and unrealized gain (losses) | 0 | (67,370) | 3,642 | ||||||||
Loans to and investments in associated companies ending balance | $ 87,074 | $ 87,074 | $ 87,074 | 123,010 | 161,400 | ||||||
Equity method investment, ownership percentage | 48.10% | 48.10% | 48.10% | ||||||||
Number of seats in investment committee retained by Company | Seat | 2 | ||||||||||
Number of seats in investment committee | Seat | 4 | ||||||||||
Other | |||||||||||
Equity Method Investment [Roll Forward] | |||||||||||
Loans to and investments in associated companies beginning balance | $ 100,744 | $ 44,454 | 44,454 | 36,557 | |||||||
Income (loss) related to associated companies | (6,022) | (463) | 3,952 | ||||||||
Income (losses) related to Jefferies associated companies | (5,477) | (3,177) | (2,276) | ||||||||
Contributions to (distributions from) associated companies, net | (18,275) | 31,837 | 9,622 | ||||||||
Other, including foreign exchange and unrealized gain (losses) | (9,816) | 28,093 | (3,401) | ||||||||
Loans to and investments in associated companies ending balance | $ 61,154 | $ 61,154 | $ 61,154 | $ 100,744 | $ 44,454 |
Loans to and Investments in A_4
Loans to and Investments in Associated Companies - Jefferies Finance (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||
Other assets | $ 1,859,561,000 | $ 2,412,180,000 | |
Payables, expense accruals and other liabilities | 7,407,030,000 | 7,167,666,000 | |
Trading liabilities, at fair value | 9,478,946,000 | 8,454,965,000 | |
Trading assets, at fair value | $ 17,463,256,000 | 16,082,676,000 | |
Jefferies Finance | |||
Investment [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Termination notice | 60 days | ||
Total line of credit facility commitment under joint venture | $ 500,000,000 | 500,000,000 | |
Credit facility, extension period | 1 year | ||
Funded portion of line of credit commitment | $ 0 | 0 | |
Line of credit facility commitment of Jefferies | 250,000,000 | 250,000,000 | |
Jefferies Group | |||
Investment [Line Items] | |||
Equity commitment | 750,000,000 | ||
Funded equity commitments | 694,800,000 | ||
Investment banking | 377,700,000 | 327,900,000 | $ 112,600,000 |
Origination fees | 56,600,000 | 2,400,000 | 500,000 |
Placement agent fees | 3,700,000 | 6,100,000 | 2,600,000 |
Service fee income | 61,700,000 | 50,700,000 | 46,100,000 |
Other assets | 35,200,000 | 34,600,000 | |
Payables, expense accruals and other liabilities | 14,100,000 | 14,100,000 | |
Foreign exchange contracts | Jefferies Group | |||
Investment [Line Items] | |||
Payables, expense accruals and other liabilities | 200,000 | ||
Trading liabilities, at fair value | $ 400,000 | ||
Trading assets, at fair value | 1,500,000 | ||
Jefferies Finance | |||
Investment [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Investment commitment extension | 1 year | ||
Termination notice | 60 days | ||
Jefferies Finance | Jefferies Group | |||
Investment [Line Items] | |||
Interest income and unfunded commitment fees related to facility commitment | $ 2,400,000 | $ 3,900,000 | $ 1,300,000 |
Loans to and Investments in A_5
Loans to and Investments in Associated Companies - Jefferies LoanCore (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Jefferies Group | |||
Investment [Line Items] | |||
Interest income and fees related to master repurchase agreement | $ 0.6 | $ 8.4 | |
Jefferies LoanCore | |||
Investment [Line Items] | |||
Proceeds from sale of associated companies | $ 173.1 | ||
Jefferies LoanCore | Jefferies Group | |||
Investment [Line Items] | |||
Equity method investment, ownership percentage | 48.50% | ||
Proceeds from sale of associated companies | $ 173.1 | ||
Period entitled to additional cash consideration | 4 years |
Loans to and Investments in A_6
Loans to and Investments in Associated Companies - National Beef (Details) - USD ($) $ in Thousands | Jun. 05, 2018 | Nov. 30, 2018 | Jun. 04, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||||||
Loans to and investments in associated companies | $ 2,417,332 | $ 2,066,829 | $ 2,125,098 | $ 1,757,369 | ||
Discontinued operations, disposed of by sale | National Beef | ||||||
Investment [Line Items] | ||||||
Ownership percentage | 48.00% | |||||
National Beef | ||||||
Investment [Line Items] | ||||||
Ownership percentage | 79.00% | |||||
Equity method investment, ownership percentage | 31.00% | 31.00% | ||||
Loans to and investments in associated companies | $ 592,300 | $ 653,630 | $ 0 | |||
Weighted average life of assets with a basis difference | 15 years | |||||
National Beef | ||||||
Investment [Line Items] | ||||||
Ownership percentage | 100.00% | 100.00% | ||||
Equity valuation | $ 1,900,000 | |||||
Enterprise value | $ 2,300,000 |
Loans to and Investments in A_7
Loans to and Investments in Associated Companies - Berkadia (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2009 | Oct. 01, 2018 | |
Investment [Line Items] | |||
Capital contributed | $ 598.2 | ||
Berkadia | |||
Investment [Line Items] | |||
Capital contributed | $ 217.2 | ||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Percentage Of Profits Received From Joint Venture | 45.00% | ||
Surety policy issued | $ 1,500 | ||
Reimbursement of losses incurred, maximum percentage | 50.00% | ||
Commercial paper | $ 1,470 |
Loans to and Investments in A_8
Loans to and Investments in Associated Companies - FXCM (Details) - Investment in FXCM - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended |
Nov. 30, 2018 | Mar. 31, 2017 | |
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investment impairment | $ 62.1 | $ 130.2 |
Loans to and Investments in A_9
Loans to and Investments in Associated Companies - Garcadia (Details) $ in Millions | 3 Months Ended | 11 Months Ended | |
Sep. 30, 2018USD ($) | Nov. 30, 2018USD ($) | Jun. 30, 2018Dealershipfacility | |
Garcadia Companies | Corporate joint venture | |||
Investment [Line Items] | |||
Number of automobile dealerships | facility | 28 | ||
Plan One | Garcadia Companies | |||
Investment [Line Items] | |||
Corporate loint venture, percentage of cash flows allocated | 65.00% | ||
Plan One | Garff Enterprises, Inc | |||
Investment [Line Items] | |||
Corporate loint venture, percentage of cash flows allocated | 35.00% | ||
Plan Two | Garcadia Companies | |||
Investment [Line Items] | |||
Number of automobile dealerships | Dealership | 1 | ||
Corporate loint venture, percentage of cash flows allocated | 83.00% | ||
Plan Three | Garcadia Companies | |||
Investment [Line Items] | |||
Number of automobile dealerships | Dealership | 4 | ||
Corporate loint venture, percentage of cash flows allocated | 71.00% | ||
Disposal group, disposed of by sale, not discontinued operations | Garcadia Companies | |||
Investment [Line Items] | |||
Percentage of equity interest sold | 100.00% | ||
Proceeds from sale of equity interests and associated real estate | $ | $ 417.2 | ||
Pre-tax gain on sale of equity interests and associated real estate | $ | $ 221.7 | $ 221.7 |
Loans to and Investments in _10
Loans to and Investments in Associated Companies - Linkem (Details) - Linkem | Nov. 30, 2018 |
Investment [Line Items] | |
Equity method investment, ownership percentage | 42.00% |
Percentage of ownership upon conversion of preferred shares | 54.00% |
Percentage of total voting securities | 48.00% |
Loans to and Investments in _11
Loans to and Investments in Associated Companies - HomeFed (Details) - HomeFed | Nov. 30, 2018directorshares |
Investment [Line Items] | |
Shares of common stock owned | shares | 10,852,123 |
Equity method investment, ownership percentage | 70.00% |
Maximum voting rights as a percentage of total voting securities voting | 45.00% |
Number of executives from the Company | director | 3 |
Company Chairman | |
Investment [Line Items] | |
Ownership percentage of company | 5.00% |
Loans to and Investments in _12
Loans to and Investments in Associated Companies - Golden Queen Mining Company (Details) - USD ($) $ in Millions | 3 Months Ended | 11 Months Ended | 59 Months Ended | |
Sep. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2018 | Dec. 31, 2013 | |
Investment [Line Items] | ||||
Cash invested in Limited Liability Company | $ 93 | |||
Golden Queen | ||||
Investment [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||
Golden Queen Mining Co, Ltd | ||||
Investment [Line Items] | ||||
Prior ownership percentage | 100.00% | |||
Ownership percentage | 50.00% | 50.00% | ||
Clay Family | ||||
Investment [Line Items] | ||||
Contributions from noncontrolling interests | $ 34.5 | |||
Investment In Golden Queen | ||||
Investment [Line Items] | ||||
Equity method investment impairment | $ 47.9 | $ 47.9 | ||
Gauss LLC | Golden Queen | ||||
Investment [Line Items] | ||||
Total investment in associated company | $ 127.5 | $ 127.5 |
Loans to and Investments in _13
Loans to and Investments in Associated Companies - 54 Madison (Details) - 54 Madison | 11 Months Ended |
Nov. 30, 2018Seat | |
Investments in and Advances to Affiliates [Line Items] | |
Equity method investment, ownership percentage | 48.10% |
Number of seats in investment committee retained by Company | 2 |
Number of seats in investment committee | 4 |
Loans to and Investments in _14
Loans to and Investments in Associated Companies - Schedule of Summarized Data for Investments in Associated Companies (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in and Advances to Affiliates [Line Items] | |||
The Company's income related to associated companies | $ 130,685 | $ 34,494 | $ 171,782 |
Undistributed earnings of equity method investments | 252,900 | ||
Associated Companies | |||
Investments in and Advances to Affiliates [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 17,050,564 | 16,340,643 | |
Equity Method Investment, Summarized Financial Information, Liabilities | 11,752,273 | 11,920,465 | |
Equity Method Investment, Summarized Financial Information, Noncontrolling Interest | 154,963 | 169,274 | |
Equity Method Investment, Summarized Financial Information, Revenue | 7,694,612 | 4,883,063 | 4,275,016 |
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 852,649 | 503,489 | 422,167 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 798,615 | 438,881 | 430,291 |
The Company's income related to associated companies | $ 130,685 | $ 34,494 | $ 171,782 |
Financial Statement Offsettin_2
Financial Statement Offsetting (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Offsetting Derivative Assets [Abstract] | ||
Derivative assets contracts, Gross Amounts | $ 2,580,706 | $ 3,497,969 |
Derivative assets contracts, Netting in Consolidated Statement of Financial Condition | (2,413,931) | (3,318,481) |
Total derivative assets | 166,775 | 179,488 |
Derivative assets contracts, Additional Amounts Available for Setoff | 0 | 0 |
Derivative assets contracts, Available Collateral | 0 | 0 |
Derivative assets contracts, Net Amount | 166,775 | 179,488 |
Gross Amounts | 6,538,212 | 7,721,803 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 6,538,212 | 7,721,803 |
Additional Amounts Available for Setoff | (468,778) | (966,712) |
Available Collateral | (1,193,986) | (1,032,629) |
Net Amount | 4,875,448 | 5,722,462 |
Reverse repurchase agreements, Gross Amounts | 11,336,175 | 14,858,297 |
Reverse repurchase agreements, Netting in Consolidated Statement of Financial Condition | (8,550,417) | (11,168,738) |
Reverse repurchase agreements, Net Amounts in Consolidated Statement of Financial Condition | 2,785,758 | 3,689,559 |
Reverse repurchase agreements, Additional Amounts Available for Setoff | (609,225) | (463,973) |
Reverse repurchase agreements, Available Collateral | (2,126,730) | (3,207,147) |
Reverse repurchase agreements, Net Amount | 49,803 | 18,439 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative liabilities contracts, Gross Amounts | 3,640,703 | 3,745,908 |
Derivative liabilities contacts, Netting in Consolidated Statement of Financial Condition | (2,513,050) | (3,490,514) |
Total derivative liability | 1,127,653 | 255,394 |
Derivative liabilities contracts, Additional Amounts Available for Setoff | 0 | 0 |
Derivative liabilities contracts, Available Collateral | 0 | 0 |
Derivative liabilities contracts, Net Amount | 1,127,653 | 255,394 |
Gross Amounts | 1,838,688 | 2,843,911 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 1,838,688 | 2,843,911 |
Additional Amounts Available for Setoff | (468,778) | (966,712) |
Available Collateral | (1,343,704) | (1,795,408) |
Net Amount | 26,206 | 81,791 |
Repurchase agreements, Gross Amounts | 17,193,486 | 19,829,249 |
Repurchase agreements, Netting in Consolidated Statement of Financial Condition | (8,550,417) | (11,168,738) |
Repurchase agreements, Net Amounts in Consolidated Statement of Financial Condition | 8,643,069 | 8,660,511 |
Repurchase agreements, Additional Amounts Available for Setoff | (609,225) | (463,973) |
Repurchase agreements, Available Collateral | (7,070,967) | (7,067,512) |
Repurchase agreements, Net Amount | 962,877 | 1,129,026 |
Securities borrowing arrangements, subject to review | 4,825,700 | 5,678,600 |
Securities borrowing arrangements, collateral received, subject to review | 4,711,700 | 5,516,700 |
Repurchase agreements, subject to review | 931,700 | 1,084,400 |
Repurchase agreements, collateral pledged, subject to review | $ 963,600 | $ 1,115,900 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | $ 188,291 | $ 741,030 |
Goodwill | 1,701,840 | 1,722,150 |
Total intangible assets, net and goodwill | 1,890,131 | 2,463,180 |
National Beef | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 539,600 | |
Goodwill | 0 | 14,991 |
Jefferies Group | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 1,698,381 | 1,703,300 |
Customer and other relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 67,894 | 347,767 |
Intangibles, accumulated amortization | 102,579 | 230,074 |
Trademarks and tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 107,262 | 293,851 |
Intangibles, accumulated amortization | 21,086 | 95,627 |
Supply contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 0 | 86,160 |
Intangibles, accumulated amortization | 0 | 57,440 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 4,611 | 4,701 |
Intangibles, accumulated amortization | 4,339 | 3,885 |
Exchange and clearing organization membership interests and registrations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangibles | 8,524 | 8,551 |
Other Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 3,459 | $ 3,859 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill - Narrative (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 05, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortizable intangibles | $ 188,291 | $ 741,030 | ||
Goodwill | 1,701,840 | 1,722,150 | ||
Amortization expense on intangible assets | $ 13,200 | 12,900 | $ 18,200 | |
Discontinued operations, disposed of by sale | National Beef | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Ownership percentage | 48.00% | |||
National Beef | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Ownership percentage | 100.00% | 100.00% | ||
Amortizable intangibles | 539,600 | |||
Goodwill | $ 0 | $ 14,991 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill - Schedule of Estimated Aggregate Future Amortization Expense (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Future amortization expense, 2019 | $ 13,439 |
Future amortization expense, 2020 | 13,439 |
Future amortization expense, 2021 | 13,085 |
Future amortization expense, 2022 | 10,110 |
Future amortization expense, 2023 | $ 8,981 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) € in Millions | 11 Months Ended | ||
Nov. 30, 2018USD ($) | Nov. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 387,492,000 | $ 436,215,000 | |
Debt interest rate | 3.08% | 2.51% | |
Floating rate puttable notes | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 56,550,000 | $ 108,240,000 | |
Short-term borrowings matured during period | € | € 41 | ||
Equity-linked notes | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 0 | 23,324,000 | |
Short-term borrowings matured during period | 23,300,000 | ||
Bank loans | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 330,942,000 | $ 304,651,000 | |
Credit Facility | Intraday Credit Facility | |||
Short-term Debt [Line Items] | |||
Committed amount | $ 150,000,000 | ||
Credit Facility | Intraday Credit Facility | Federal Funds Rate | |||
Short-term Debt [Line Items] | |||
Basis spread on variable rate | 0.50% | 0.50% |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 13, 2018 | Nov. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 7,617,563 | $ 7,885,783 | |||
Gains recognized in Interest expense of Jefferies | 1,824 | 6,033 | $ 0 | ||
Long-term debt, fair value | 686,170 | 606,956 | |||
Structured notes matures in 2019 | 690,200 | ||||
Structured notes matures in 2022 | 32,500 | ||||
Parent Company | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 990,116 | 989,021 | |||
Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 6,627,447 | 6,896,762 | |||
Credit Facility | Foursight Capital | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 170,455 | |||
5.50% Senior Notes due October 18, 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.50% | 5.50% | |||
Principal | $ 750,000 | $ 750,000 | |||
5.50% Senior Notes due October 18, 2023 | Parent Company | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 743,397 | $ 742,348 | |||
6.625% Senior Notes due October 23, 2043 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.625% | 6.625% | |||
Principal | $ 250,000 | $ 250,000 | |||
6.625% Senior Notes due October 23, 2043 | Parent Company | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 246,719 | $ 246,673 | |||
5.125% Senior Notes, due April 13, 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.125% | ||||
Principal | 0 | $ 678,300 | |||
5.125% Senior Notes, due April 13, 2018 | Jefferies Group | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.125% | ||||
5.125% Senior Notes, due April 13, 2018 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 682,338 | |||
8.5% Senior Notes, due July 15, 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 8.50% | 8.50% | |||
Principal | $ 680,800 | $ 680,800 | |||
8.5% Senior Notes, due July 15, 2019 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 699,659 | $ 728,872 | |||
2.375% Euro Senior Notes, due May 20, 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.375% | 2.375% | |||
Principal | $ 565,500 | $ 594,725 | |||
2.375% Euro Senior Notes, due May 20, 2020 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 564,702 | $ 593,334 | |||
6.875% Senior Notes, due April 15, 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.875% | 6.875% | |||
Principal | $ 750,000 | $ 750,000 | |||
6.875% Senior Notes, due April 15, 2021 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 791,814 | $ 808,157 | |||
2.25% Euro Medium Term Notes, due July 13, 2022 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.25% | 2.25% | |||
Principal | $ 4,524 | $ 4,758 | |||
2.25% Euro Medium Term Notes, due July 13, 2022 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 4,243 | $ 4,389 | |||
5.125% Senior Notes, due January 20, 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.125% | 5.125% | |||
Principal | $ 600,000 | $ 600,000 | |||
5.125% Senior Notes, due January 20, 2023 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 612,928 | $ 615,703 | |||
4.85% Senior Notes, due January 15, 2027 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.85% | 4.85% | |||
Principal | $ 750,000 | $ 750,000 | |||
4.85% Senior Notes, due January 15, 2027 | Subsidiaries | Interest rate swaps | |||||
Debt Instrument [Line Items] | |||||
Gains recognized in Interest expense of Jefferies | 27,400 | 8,100 | |||
4.85% Senior Notes, due January 15, 2027 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 709,484 | $ 736,357 | |||
6.45% Senior Debentures, due June 8, 2027 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.45% | 6.45% | |||
Principal | $ 350,000 | $ 350,000 | |||
6.45% Senior Debentures, due June 8, 2027 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 373,669 | $ 375,794 | |||
3.875% Convertible Senior Debentures, due November 1, 2029 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.875% | 3.875% | 3.875% | ||
Principal | $ 0 | $ 324,779 | |||
3.875% Convertible Senior Debentures, due November 1, 2029 | Jefferies Group | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.875% | ||||
3.875% Convertible Senior Debentures, due November 1, 2029 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | 324,779 | |||
4.15% Senior Notes, due January 23, 2030 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.15% | ||||
Principal | $ 1,000,000 | 0 | |||
4.15% Senior Notes, due January 23, 2030 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 987,788 | $ 0 | |||
6.25% Senior Debentures, due January 15, 2036 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.25% | 6.25% | |||
Principal | $ 500,000 | $ 500,000 | |||
6.25% Senior Debentures, due January 15, 2036 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 511,662 | $ 512,040 | |||
6.50% Senior Notes, due January 20, 2043 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.50% | 6.50% | |||
Principal | $ 400,000 | $ 400,000 | |||
6.50% Senior Notes, due January 20, 2043 | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 420,625 | 420,990 | |||
Structured Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, fair value | 686,200 | 607,000 | |||
Structured Notes | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 686,200 | ||||
Structured notes matures in 2019 | 5,700 | ||||
Structured notes matures in 2022 | 27,300 | ||||
Structured notes matures in 2024 and thereafter | 653,200 | ||||
Structured Notes | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 686,170 | 614,091 | |||
Reducing Revolver Loan | National Beef | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 120,000 | |||
Revolving Credit Facility | Jefferies Group | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 183,539 | 0 | |||
Revolving Credit Facility | National Beef | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 76,809 | |||
Other | Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 81,164 | $ 112,654 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | ||||||
Jan. 31, 2018USD ($) | Nov. 30, 2018USD ($)Contract | Jun. 05, 2018 | Apr. 13, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||||
Assets pledged for indebtedness | $ 840,100,000 | ||||||
Nonrecourse indebtedness collateralized by assets | 261,300,000 | ||||||
Long-term debt | $ 7,617,563,000 | $ 7,885,783,000 | |||||
National Beef | |||||||
Debt Instrument [Line Items] | |||||||
Ownership percentage | 100.00% | 100.00% | |||||
3.875% Convertible Senior Debentures, due November 1, 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.875% | 3.875% | 3.875% | ||||
3.875% Convertible Senior Debentures, due November 1, 2029 | Jefferies Group | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.875% | ||||||
Redemption price as percentage of principal amount redeemed | 100.00% | ||||||
5.125% Senior Notes, due April 13, 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.125% | ||||||
5.125% Senior Notes, due April 13, 2018 | Jefferies Group | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.125% | ||||||
Debt face amount | $ 668,300,000 | ||||||
4.15% Senior Notes, due January 23, 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.15% | ||||||
Structured Notes | Jefferies Group | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 193,400,000 | ||||||
Revolving Credit Facility | Jefferies Group | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 185,000,000 | ||||||
Senior Notes | 4.15% Senior Notes, due January 23, 2030 | Jefferies Group | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.15% | ||||||
Debt face amount | $ 1,000,000,000 | ||||||
Line of Credit | Foursight Capital Credit Facilities | Foursight Capital | |||||||
Debt Instrument [Line Items] | |||||||
Number of warehouse credit commitment | Contract | 2 | ||||||
Credit facility maximum amount | $ 225,000,000 | ||||||
Discontinued operations, disposed of by sale | National Beef | |||||||
Debt Instrument [Line Items] | |||||||
Ownership percentage | 48.00% | ||||||
Long-term debt | $ 199,200,000 |
Long-Term Debt - Schedule of An
Long-Term Debt - Schedule of Annual Mandatory Redemptions of Long-term Debt (Details) $ in Millions | Nov. 30, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Debt subject to mandatory redemption, 2019 | $ 690.2 |
Debt subject to mandatory redemption, 2020 | 565.5 |
Debt subject to mandatory redemption, 2021 | 935 |
Debt subject to mandatory redemption, 2022 | 32.5 |
Debt subject to mandatory redemption, 2023 | $ 1,429 |
Mezzanine Equity - Narrative (D
Mezzanine Equity - Narrative (Details) - USD ($) | Jun. 05, 2018 | Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Purchase Requirement [Line Items] | |||||||||||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | $ 237,669,000 | ||||||||||||
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | $ 19,800,000 | $ 14,500,000 | 19,800,000 | $ 14,500,000 | |||||||||
Mandatorily redeemable convertible preferred shares redemption value | 125,000,000 | 125,000,000 | $ 125,000,000 | $ 125,000,000 | |||||||||
Dividends per common share (USD per share) | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.0625 | $ 0.45 | $ 0.325 | $ 0.25 | ||||||
Preferred Stock Dividends, Income Statement Impact | 851,000 | $ 1,276,000 | $ 1,171,000 | $ 1,172,000 | $ 1,172,000 | $ 1,172,000 | $ 1,015,000 | $ 1,016,000 | $ 4,470,000 | $ 4,375,000 | $ 4,063,000 | ||
3.25% Cumulative Convertible Preferred Shares | |||||||||||||
Purchase Requirement [Line Items] | |||||||||||||
Dividend rate on preferred stock | 3.25% | ||||||||||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | |||||||||||
Mandatory redeemable preferred stock, number of shares in conversion | 4,162,200 | ||||||||||||
Mandatory redeemable preferred stock, effective conversion price per share (USD per share) | $ 30.03 | ||||||||||||
Minimum common dividend considered for additional quarterly payments (USD per share | $ 0.0625 | $ 0.0625 | |||||||||||
Preferred Stock Dividends, Income Statement Impact | $ 4,500,000 | $ 4,400,000 | |||||||||||
Mandatorily redeemable preferred shares callable price per share (USD per share) | $ 1,000 | $ 1,000 | |||||||||||
Jefferies Group | |||||||||||||
Purchase Requirement [Line Items] | |||||||||||||
Dividend rate on preferred stock | 3.25% | ||||||||||||
National Beef | Discontinued operations, disposed of by sale | |||||||||||||
Purchase Requirement [Line Items] | |||||||||||||
Ownership percentage | 48.00% | ||||||||||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | $ 237,700,000 |
Mezzanine Equity - Schedule of
Mezzanine Equity - Schedule of Redeemable noncontrolling interests activity (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||||||
Balance, beginning of year | $ 426,593 | $ 426,593 | ||||||||||
Income allocated to redeemable noncontrolling interests | $ (31) | $ 390 | $ 22,108 | 14,796 | $ 20,038 | $ 36,216 | $ 16,300 | $ 12,022 | 37,263 | $ 78,506 | $ 84,576 | $ 65,746 |
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital | (26,551) | (94,937) | (115,963) | |||||||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669) | |||||||||||
Balance, end of year | 19,779 | 426,593 | 19,779 | 426,593 | ||||||||
National Beef | ||||||||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||||||
Balance, beginning of year | $ 412,128 | $ 321,962 | 412,128 | $ 321,962 | 321,962 | |||||||
Income allocated to redeemable noncontrolling interests | 37,141 | 85,277 | 68,800 | |||||||||
Distributions to redeemable noncontrolling interests | (70,681) | (90,048) | ||||||||||
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital | 21,404 | 94,937 | ||||||||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669) | 0 | ||||||||||
Noncontrolling interests of deconsolidated entity | 162,323 | 0 | ||||||||||
Balance, end of year | $ 0 | $ 412,128 | $ 0 | $ 412,128 | $ 321,962 |
Compensation Plans - Incentive
Compensation Plans - Incentive Plan (Details) - $ / shares | Mar. 21, 2014 | Nov. 30, 2018 | Dec. 31, 2017 |
Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available for grant | 20,000,000 | ||
Stock available for grant (in shares) | 6,786,404 | ||
Incentive Plan | Sign-on and Retention Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for award granted | 4 years | ||
Award amortization period | 4 years | ||
Dividend Equivalents | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend equivalents declared on restricted stock units | 142,000 | 89,000 | |
Grants, weighted average grant date fair value (USD per share) | $ 19.81 | $ 21.03 |
Compensation Plans - Activity o
Compensation Plans - Activity of Restricted Stock (Details) - Restricted Stock - $ / shares shares in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Nonvested balance, beginning of period (shares) | 1,142 | 1,362 | 2,004 |
Grants (shares) | 1,077 | 391 | 356 |
Forfeited (shares) | (30) | 0 | (24) |
Fulfillment of service requirement (shares) | (394) | (611) | (974) |
Nonvested balance, end of period (shares) | 1,795 | 1,142 | 1,362 |
Weighted- Average Grant Date Fair Value | |||
Nonvested balance, beginning of period (USD per share) | $ 21.75 | $ 22.09 | $ 24.56 |
Grants (USD per share) | 23.63 | 23.65 | 18.23 |
Forfeited (USD per share) | 16.49 | 0 | 26.90 |
Fulfillment of service requirement (USD per share) | 24.23 | 23.73 | 25.65 |
Nonvested balance, end of period (USD per share) | $ 22.42 | $ 21.75 | $ 22.09 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of Activity in RSUs (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Future Service Required | |||
Shares | |||
Nonvested balance, beginning of period (shares) | 32 | 68 | 3,388 |
Grants (shares) | 0 | 0 | 0 |
Distributions of underlying shares | 0 | 0 | 0 |
Forfeited (shares) | (2) | 0 | 0 |
Fulfillment of service requirement (shares) | (28) | (36) | (3,320) |
Nonvested balance, end of period (shares) | 2 | 32 | 68 |
Weighted- Average Grant Date Fair Value | |||
Nonvested balance, beginning of period (USD per share) | $ 26.90 | $ 26.90 | $ 26.90 |
Grants (USD per share) | 0 | 0 | 0 |
Distribution of underlying shares (USD per share) | 0 | 0 | 0 |
Forfeited (USD per share) | 26.90 | 0 | 0 |
Fulfillment of service requirement (USD per share) | 26.90 | 26.90 | 26.90 |
Nonvested balance, end of period (USD per share) | $ 26.90 | $ 26.90 | $ 26.90 |
No Future Service Required | |||
Shares | |||
Vested balance, beginning of period (shares) | 10,313 | 10,348 | 8,583 |
Grants (shares) | 161 | 104 | 128 |
Distributions of underlying shares | (192) | (175) | (1,683) |
Forfeited (shares) | (1) | 0 | 0 |
Fulfillment of service requirement (shares) | (28) | (36) | (3,320) |
Vested balance, end of period (shares) | 10,309 | 10,313 | 10,348 |
Weighted- Average Grant Date Fair Value | |||
Balance, beginning of period (USD per share) | $ 26.57 | $ 26.61 | $ 26.68 |
Grants (USD per share) | 20.24 | 21.55 | 14.21 |
Distribution of underlying shares (USD per share) | 26.39 | 26.46 | 26.59 |
Forfeited (USD per share) | 22.16 | 0 | 0 |
Fulfillment of service requirement (USD per share) | 26.90 | 26.90 | 26.90 |
Balance, end of period, weighted average grant date fair value (USD per share) | $ 26.48 | $ 26.57 | $ 26.61 |
Senior Executive Compensation Plan | |||
Shares | |||
Nonvested balance, beginning of period (shares) | 5,655 | 3,434 | 0 |
Grants (shares) | 3,813 | 2,221 | 3,434 |
Forfeited (shares) | 0 | 0 | 0 |
Nonvested balance, end of period (shares) | 9,468 | 5,655 | 3,434 |
Weighted- Average Grant Date Fair Value | |||
Nonvested balance, beginning of period (USD per share) | $ 13.37 | $ 9.68 | $ 0 |
Grants (USD per share) | 26.16 | 19.06 | 9.68 |
Forfeited (USD per share) | 0 | 0 | 0 |
Nonvested balance, end of period (USD per share) | $ 18.52 | $ 13.37 | $ 9.68 |
Compensation Plans - Senior Exe
Compensation Plans - Senior Executive Compensation Plan (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017 | Feb. 29, 2016 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 30, 2016 | Dec. 31, 2015 | |
Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grants, weighted average grant date fair value (USD per share) | $ 26.16 | $ 19.06 | $ 9.68 | ||||
Senior Executives | Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award performance measurement period | 3 years | 3 years | 3 years | ||||
Percentage of compensation beyond base salary will be performance-based | 100.00% | 100.00% | |||||
Employee service share-based compensation, holding period | 3 years | 3 years | |||||
Stock price (USD per share) | $ 23.25 | $ 17.39 | |||||
Performance measurement benchmark, percentage | 8.00% | ||||||
Senior Executives | Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance measurement benchmark, percentage | 4.00% | ||||||
Senior Executives | Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance measurement benchmark, percentage | 12.00% | ||||||
Senior Executives | 2016 Plan | Restricted Stock Units (RSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards eligible | 846,882 | ||||||
Senior Executives | 2017 Plan | Restricted Stock Units (RSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards eligible | 537,634 | ||||||
Senior Executives | 2018 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance measurement, targeted long-term compensation | $ 25,000,000 | ||||||
Performance measurement period | 3 years | ||||||
Performance measurement benchmark, growth rate in TSR and ROTDE | 5.00% | ||||||
Performance measurement benchmark, growth rate in TSR and ROTDE (less than) | 8.00% | ||||||
Additional incentive compensation, percentage | 50.00% | ||||||
Performance measurement benchmark, growth rate in TSR and ROTDE (up to) | 12.00% | ||||||
Senior Executives | 2018 Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance measurement, targeted long-term compensation | $ 16,000,000 | ||||||
Performance measurement benchmark, growth rate in TSR | 8.00% | ||||||
Senior Executives | 2018 Plan | Long-term Cash | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance measurement, targeted long-term compensation | $ 9,000,000 | ||||||
Performance measurement benchmark, growth rate in ROTDE | 8.00% | ||||||
Benchmark Two | Senior Executives | 2016 Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards eligible | 1,693,766 | ||||||
Benchmark Two | Senior Executives | 2017 Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards eligible | 1,075,268 | ||||||
Benchmark Three | Senior Executives | Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Additional incentive compensation, percentage | 50.00% | ||||||
Dividend Equivalents | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividend equivalents declared on restricted stock units | 142,000 | 89,000 | |||||
Grants, weighted average grant date fair value (USD per share) | $ 19.81 | $ 21.03 | |||||
Dividend Equivalents | Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividend equivalents declared on restricted stock units | 189,000 | 70,000 | |||||
Grants, weighted average grant date fair value (USD per share) | $ 19.80 | $ 21.04 |
Compensation Plans - Directors'
Compensation Plans - Directors' Plan (Details) - Directors' Plan - USD ($) | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of shares to be granted to each non employee director | $ 150,000 | $ 120,000 | $ 120,000 |
Vesting period for award granted | 3 years | ||
Shares issuable upon settlement of deferred shares | 343,364 | ||
Stock available for grant (in shares) | 240,022 |
Compensation Plans - Other Comp
Compensation Plans - Other Compensation Plan (Details) $ in Millions | 11 Months Ended | |
Nov. 30, 2018USD ($)Installmentshares | Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for stock options and warrants (in shares) | 195,417 | 331,312 |
Restricted cash awards, cost expected to be recognized | $ | $ 395 | |
Restricted cash awards, cost expected to be recognized, period | 2 years | |
1999 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for grant (in shares) | 0 | |
1999 Stock Option Plan | Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants (shares) | 0 | |
Employee | 1999 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of annual installments | Installment | 5 | |
Director | 1999 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of annual installments | Installment | 4 |
Compensation Plans - Summary of
Compensation Plans - Summary of stock options activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common Shares Subject to Option | |||
Beginning balance (shares) | 331 | 641 | 661 |
Granted (shares) | 0 | 0 | 0 |
Exercised (shares) | (109) | (20) | 0 |
Cancelled (shares) | (27) | (290) | (20) |
Ending balance (shares) | 195 | 331 | 641 |
Exercisable (shares) | 195 | ||
Weighted- Average Exercise Prices | |||
Weighted-Average Exercise Prices, Beginning balance (USD per share) | $ 23.03 | $ 24.80 | $ 24.97 |
Weighted-Average Exercise Prices, Granted (USD per share) | 0 | 0 | 0 |
Weighted-Average Exercise Prices, Exercised (USD per share) | 22.87 | 22.75 | 0 |
Weighted-Average Exercise Prices, Cancelled (USD per share) | 24.79 | 26.98 | 30.49 |
Weighted-Average Exercise Prices, Ending balance (USD per share) | 22.87 | $ 23.03 | $ 24.80 |
Weighted-Average Exercise Prices, Exercisable (USD per share) | $ 22.87 | ||
Weighted-Average Remaining Contractual Term | 32 days | ||
Weighted-Average Remaining Contractual Term, Exercisable | 32 days | ||
Aggregate Intrinsic Value, Exercised | $ 136 | $ 65 | $ 0 |
Aggregate Intrinsic Value, Outstanding | 0 | ||
Aggregate Intrinsic Value, Exercisable | $ 0 |
Compensation Plans - Stock-Base
Compensation Plans - Stock-Based Compensation Expense (Details) - USD ($) shares in Thousands, $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 48,249 | $ 48,384 | $ 33,597 | |
Tax benefit for issuance of share-based awards | 12,200 | $ 17,300 | 12,400 | |
Total unrecognized compensation costs related to nonvested share-based compensation plans | $ 117,600 | |||
Total unrecognized compensation costs related to nonvested share-based compensation plans, period for recognition | 2 years 2 months 12 days | |||
Net tax benefit related to share-based compensation plans recognized as additional paid in capital | $ (4,200) | |||
Potential maximum increase to common shares outstanding from restricted stock and other shares (in shares) | 20,657 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares, future service required (in shares) | 1,795 | 1,142 | 1,362 | 2,004 |
Other Shares Issuable | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Other shares issuable (in shares) | 878 | |||
Future Service Required | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares, future service required (in shares) | 1,795 | |||
Future Service Required | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares, future service required (in shares) | 2 | 32 | 68 | 3,388 |
Future Service Required | Incentive Plan and Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares, future service required (in shares) | 9,470 | |||
No Future Service Required | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares, no future service required (in shares) | 10,309 | 10,313 | 10,348 | 8,583 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | $ 10,079,257 | $ 10,138,979 | $ 10,303,649 | $ 10,465,890 |
Net unrealized gains on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 542,832 | 572,085 | 561,497 | |
Net unrealized foreign exchange losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (193,402) | (101,400) | (184,829) | |
Net unrealized losses on instrument specific credit risk | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (5,728) | (34,432) | (6,494) | |
Net unrealized gains (losses) on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 470 | (1,138) | 0 | |
Net minimum pension liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (55,886) | (62,391) | (59,477) | |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | $ 288,286 | $ 372,724 | $ 310,697 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income Reclassifications (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | $ 5,009,728 | $ 5,048,906 | $ 3,848,011 |
Reclassifications for the period, net of tax | 14,135 | (5,615) | |
Net unrealized gains on available for sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification for the period, tax | 37 | 124 | |
Net unrealized foreign exchange losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification for the period, tax | (16) | 1,086 | |
Net unrealized losses on instrument specific credit risk | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification for the period, tax | 311 | 0 | |
Net minimum pension liability | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications for the period, net of tax | (2,044) | (1,748) | |
Reclassification for the period, tax | (697) | (811) | |
Other pension | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications for the period, net of tax | (5,305) | 1,231 | |
Reclassification for the period, tax | 0 | (1,231) | |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized foreign exchange losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income and other expenses | 20,459 | (5,310) | |
Other | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | 586,611 | 448,551 | 168,765 |
Other | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains on available for sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | 109 | 212 | |
Principal transactions | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | 232,224 | 923,418 | $ 534,784 |
Principal transactions | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses on instrument specific credit risk | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | $ 916 | $ 0 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2018EUR (€) | Nov. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | $ 7,349 | $ 517 | $ 1,534 | |
Jefferies Bache Limited | GERMANY | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment to transfer defined benefit pension obligations and insurance contracts | € | € 6.5 | |||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | 5,300 | |||
Jefferies Bache Limited | Pension Plan | GERMANY | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment to transfer defined benefit pension obligations and insurance contracts | € | € 6.5 | |||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | $ 5,300 |
Pension Plans and Postretirem_3
Pension Plans and Postretirement Benefits - Components of Defined Benefit Pension Plans (Details) - U.S. - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ 211,257 | $ 205,405 | |
Interest cost | 6,783 | 8,119 | $ 8,464 |
Actuarial (gains) losses | (16,646) | 6,644 | |
Settlement payments | (3,133) | 0 | |
Benefits paid | (7,000) | (8,911) | |
Projected benefit obligation at end of year | 191,261 | 211,257 | 205,405 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 150,806 | 127,514 | |
Actual return on plan assets | (7,676) | 22,192 | |
Employer contributions | 8,890 | 12,417 | |
Benefits paid | (7,000) | (8,911) | |
Settlement payments | (3,133) | 0 | |
Administrative expenses | (2,895) | (2,406) | |
Fair value of plan assets at end of year | 138,992 | 150,806 | $ 127,514 |
Funded status at end of year | $ (52,269) | $ (60,451) |
Pension Plans and Postretirem_4
Pension Plans and Postretirement Benefits - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2018EUR (€) | Nov. 30, 2018USD ($)portfolio | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 28, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | $ 7,349 | $ 517 | $ 1,534 | ||
Defined contribution plan cost | 8,000 | 7,600 | $ 8,400 | ||
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Charge to accumulated other comprehensive income (loss) | 49,700 | 51,300 | |||
Accrued pension cost | 52,300 | $ 60,500 | |||
Estimated net loss that will be amortized from AOCI next year | 1,900 | ||||
Estimated employer contributions in next fiscal year | 7,500 | ||||
GERMANY | Jefferies Bache Limited | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment to transfer defined benefit pension obligations and insurance contracts | € | € 6.5 | ||||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | $ 5,300 | ||||
GERMANY | Jefferies Group | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Consideration for release indemnity relating to pension obligation | $ 3,250 | ||||
WilTel Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of portfolios | portfolio | 2 | ||||
WilTel Plan | U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current expected inflation rate | 2.25% | ||||
Equity risk premium over cash | 4.00% | ||||
Expected long-term rate of return assumption | 7.00% | 7.00% | |||
WilTel Plan | U.S. | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long duration risk free real rate of return | 1.00% | ||||
Return premium for corporate credit risk | 1.00% | ||||
WilTel Plan | U.S. | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long duration risk free real rate of return | 1.50% | ||||
Return premium for corporate credit risk | 1.50% | ||||
Jefferies Group Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of portfolios | portfolio | 2 | ||||
Jefferies Group Plan | U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term rate of return assumption | 6.25% | 6.25% |
Pension Plans and Postretirem_5
Pension Plans and Postretirement Benefits - Components of Pension Expense (Details) - U.S. - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 6,783 | $ 8,119 | $ 8,464 |
Expected return on plan assets | (7,217) | (7,689) | (7,589) |
Settlement charge | 365 | 0 | 0 |
Actuarial losses | 2,376 | 2,207 | 1,908 |
Net periodic pension cost | 2,307 | 2,637 | 2,783 |
Net (gains) losses arising during the period | 1,141 | (5,453) | 6,811 |
Settlement charge | (365) | 0 | 0 |
Amortization of net loss | (2,376) | (2,207) | (1,908) |
Total recognized in other comprehensive income (loss) | (1,600) | (7,660) | 4,903 |
Net amount recognized in net periodic benefit cost and other comprehensive income (loss) | $ 707 | $ (5,023) | $ 7,686 |
Pension Plans and Postretirem_6
Pension Plans and Postretirement Benefits - Schedule of Assumptions for Pensions Plan (Details) - U.S. | 11 Months Ended | 12 Months Ended |
Nov. 30, 2018 | Dec. 31, 2017 | |
WilTel Plan | ||
Projected benefit obligation: | ||
Discount rate | 4.35% | 3.51% |
Net periodic pension benefit cost: | ||
Discount rate | 3.51% | 3.85% |
Discount rate | 7.00% | 7.00% |
Jefferies Group Plan | ||
Projected benefit obligation: | ||
Discount rate | 4.30% | 3.60% |
Net periodic pension benefit cost: | ||
Discount rate | 3.60% | 3.90% |
Discount rate | 6.25% | 6.25% |
Pension Plans and Postretirem_7
Pension Plans and Postretirement Benefits - Schedule of Expected Pension Benefit Payments (Details) - U.S. $ in Thousands | Nov. 30, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 9,689 |
2,020 | 9,267 |
2,021 | 9,491 |
2,022 | 10,017 |
2,023 | 13,292 |
2024 - 2028 | $ 66,801 |
Pension Plans and Postretirem_8
Pension Plans and Postretirement Benefits - Schedule of Plan's Assets at Fair Value (Details) - U.S. - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 138,992 | $ 150,806 | $ 127,514 |
WilTel Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 90,817 | 97,857 | |
WilTel Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 802 | 539 | |
WilTel Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 90,015 | 97,318 | |
WilTel Plan | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 802 | 539 | |
WilTel Plan | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 802 | 539 | |
WilTel Plan | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
WilTel Plan | Growth Portfolio | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 18,656 | 65,625 | |
WilTel Plan | Growth Portfolio | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
WilTel Plan | Growth Portfolio | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 18,656 | 65,625 | |
WilTel Plan | Liability-Driven Investing Portfolio | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 71,359 | 31,693 | |
WilTel Plan | Liability-Driven Investing Portfolio | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
WilTel Plan | Liability-Driven Investing Portfolio | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 71,359 | $ 31,693 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Schedule of Components of Revenue (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 3,119,642 | ||
Revenue from other sources | 1,890,086 | ||
Total revenues | 5,009,728 | $ 5,048,906 | $ 3,848,011 |
Commissions and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 634,271 | ||
Total revenues | 634,271 | 593,257 | 611,574 |
Investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,904,870 | ||
Total revenues | 1,904,870 | 1,764,285 | 1,193,973 |
Manufacturing revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 357,427 | ||
Total revenues | 357,427 | 326,197 | 412,826 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 223,074 | ||
Principal transactions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from other sources | 232,224 | ||
Total revenues | 232,224 | 923,418 | 534,784 |
Interest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from other sources | 1,294,325 | ||
Total revenues | 1,294,325 | $ 993,198 | $ 926,089 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from other sources | $ 363,537 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) $ in Thousands | 11 Months Ended |
Nov. 30, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | $ 3,119,642 |
Americas | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 2,731,045 |
Europe, Middle East and Africa | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 305,634 |
Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 82,963 |
Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 2,594,887 |
Reportable Segments | Jefferies Group | Americas | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 2,207,826 |
Reportable Segments | Jefferies Group | Europe, Middle East and Africa | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 304,370 |
Reportable Segments | Jefferies Group | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 82,691 |
Reportable Segments | Merchant Banking | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 531,007 |
Reportable Segments | Merchant Banking | Americas | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 529,471 |
Reportable Segments | Merchant Banking | Europe, Middle East and Africa | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,264 |
Reportable Segments | Merchant Banking | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 272 |
Reportable Segments | Corporate | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Reportable Segments | Corporate | Americas | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Reportable Segments | Corporate | Europe, Middle East and Africa | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Reportable Segments | Corporate | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | (6,252) |
Consolidation Adjustments | Americas | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | (6,252) |
Consolidation Adjustments | Europe, Middle East and Africa | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Consolidation Adjustments | Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Equities | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 648,712 |
Equities | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 649,631 |
Equities | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | (919) |
Fixed Income | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 13,839 |
Fixed Income | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 13,839 |
Fixed Income | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Investment banking | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,904,870 |
Investment banking | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 1,910,203 |
Investment banking | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | (5,333) |
Asset Management | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 21,214 |
Asset Management | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 21,214 |
Asset Management | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Manufacturing revenues | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 357,427 |
Manufacturing revenues | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Manufacturing revenues | Reportable Segments | Merchant Banking | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 357,427 |
Manufacturing revenues | Reportable Segments | Corporate | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Manufacturing revenues | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Oil and gas revenues | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 136,109 |
Oil and gas revenues | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Oil and gas revenues | Reportable Segments | Merchant Banking | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 136,109 |
Oil and gas revenues | Reportable Segments | Corporate | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Oil and gas revenues | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Other revenues | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 37,471 |
Other revenues | Reportable Segments | Jefferies Group | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Other revenues | Reportable Segments | Merchant Banking | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 37,471 |
Other revenues | Reportable Segments | Corporate | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | 0 |
Other revenues | Consolidation Adjustments | |
Disaggregation of Revenue [Line Items] | |
Revenue from contracts with customers | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 11 Months Ended | ||
Nov. 30, 2018 | Jun. 05, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Receivables related to revenue from contracts with customers | $ 250.6 | $ 469.3 | |
Deferred revenue | 14.2 | 15.5 | |
Deferred revenue, revenue recognized | 10.6 | ||
Capitalized contract cost | 4.7 | ||
Expenses related to capitalized costs to fulfill a contract | 2.3 | ||
Jefferies Group | |||
Disaggregation of Revenue [Line Items] | |||
Revenue related to performance obligation satisfied | 26.6 | ||
Revenue associated with distribution services, a portion of which related to prior period | $ 18.1 | ||
National Beef | Discontinued operations, disposed of by sale | |||
Disaggregation of Revenue [Line Items] | |||
Receivables related to revenue from contracts with customers | $ 183.4 | ||
Ownership percentage | 48.00% |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current taxes: | ||||
Federal | $ 10,000 | $ (1,060) | $ (1,314) | |
State and local | 37,439 | 33,132 | 8,035 | |
Foreign | 11,077 | 14,597 | (4,638) | |
Total current income taxes | 58,516 | 46,669 | 2,083 | |
Deferred taxes: | ||||
Federal | 39,448 | 586,014 | 20,517 | |
State and local | (73,013) | 1,452 | 1,118 | |
Foreign | (5,943) | 8,151 | 2,055 | |
Total deferred income taxes | (39,508) | 595,617 | 23,690 | |
Total income tax provision | $ 19,008 | $ 195,550 | $ 642,286 | $ 25,773 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
U.S. | $ 284,177 | $ 535,955 | $ 7,960 | |
Non-U.S. | 11,923 | 70,547 | (20,552) | |
Income (loss) from continuing operations before income taxes | $ 296,100 | $ 618,110 | $ 606,502 | $ (12,592) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Expected Statutory Federal Income Tax To Actual Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | 23 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Computed expected federal income tax, Amount | $ 62,181 | $ 212,276 | $ (4,407) | |||
State and local income taxes, net of federal income tax benefit, Amount | 12,391 | 14,115 | (4,060) | |||
International operations (including foreign rate differential), Amount | 1,823 | (11,577) | (3,155) | |||
Increase (decrease) in valuation allowance, Amount | (48,058) | 0 | 2,825 | |||
Permanent differences, Amount | 12,331 | 4,933 | 4,315 | |||
Foreign tax credits, Amount | (9,046) | (32,974) | 0 | |||
Excess stock detriment, Amount | 0 | 161 | 24,907 | |||
Deferred tax asset remeasurement related to the Tax Act, Amount | $ 415,000 | 5,673 | 415,000 | 0 | $ 420,700 | |
Transition tax on foreign earnings related to the Tax Act, Amount | $ 35,500 | 2,590 | 35,500 | 0 | $ 38,100 | |
Base erosion and anti-abuse tax (BEAT), Amount | 10,000 | 0 | 0 | |||
Change in unrecognized tax benefits related to prior years, Amount | (19,783) | 1,553 | (7,064) | |||
Other, net, Amount | (11,094) | 3,299 | 12,412 | |||
Total income tax provision | $ 19,008 | $ 195,550 | $ 642,286 | $ 25,773 | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Computed expected federal income tax, Percent | 21.00% | 35.00% | 35.00% | |||
State and local income taxes, net of federal income tax benefit, Percent | 4.20% | 2.30% | 32.20% | |||
International operations (including foreign rate differential), Percent | 0.60% | (1.90%) | 25.10% | |||
Increase (decrease) in valuation allowance, Percent | (16.20%) | 0.00% | (22.40%) | |||
Permanent differences, Percent | 4.20% | 0.80% | (34.30%) | |||
Foreign tax credits, Percent | (3.10%) | (5.40%) | 0.00% | |||
Excess stock detriment, Percent | 0.00% | 0.00% | (197.80%) | |||
Deferred tax asset remeasurement related to the Tax Act, Percent | 1.90% | 68.40% | 0.00% | |||
Transition tax on foreign earnings related to the Tax Act, Percent | 0.90% | 5.90% | 0.00% | |||
Base erosion and anti-abuse tax (BEAT), Percent | 3.40% | 0.00% | 0.00% | |||
Change in unrecognized tax benefits related to prior years, Percent | (6.70%) | 0.30% | 56.10% | |||
Other, net, Percent | (3.80%) | 0.50% | (98.60%) | |||
Actual income tax provision, Percent | 6.40% | 105.90% | (204.70%) |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 169,020 | $ 148,848 | $ 150,867 |
Increases based on tax positions related to current period | 48,083 | 18,619 | 5,045 |
Increases based on tax positions related to prior periods | 17,521 | 10,358 | 3,697 |
Decreases based on tax positions related to prior periods | (36,324) | (8,805) | (9,414) |
Decreases related to settlements with taxing authorities | (980) | 0 | (1,347) |
Balance at end of period | $ 197,320 | $ 169,020 | $ 148,848 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | 23 Months Ended | |
Dec. 31, 2017 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Net interest expense related to unrecognized tax benefits | $ (3,100) | $ 9,700 | $ 8,600 | ||
Interest accrued related to unrecognized tax benefits | $ 57,400 | 54,100 | 57,400 | $ 54,100 | |
Expected decrease in unrecognized tax benefit related to uncertain tax position over next 12 months | 8,200 | ||||
Deferred tax asset, net | 512,800 | 512,800 | |||
Operating loss carryforwards | 1,100,000 | 1,100,000 | |||
Provision for BEAT in current year | 10,000 | 0 | 0 | ||
Discrete tax expense related to Tax Cuts and Jobs Act of 2017 | 450,500 | 450,500 | 458,800 | ||
Discrete tax expense related to revaluation of deferred tax asset | 415,000 | 5,673 | 415,000 | 0 | 420,700 |
Discrete tax expense related to deemed repatriation of foreign earnings | $ 35,500 | 2,590 | $ 35,500 | $ 0 | 38,100 |
Tax Cuts and Jobs Act of 2017, measurement period adjustment, income tax expense | (8,300) | ||||
Europe | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax assets related to net operating losses | 9,200 | 9,200 | |||
Asia | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax assets related to net operating losses | $ 300 | $ 300 |
Income Taxes - Schedule of Prin
Income Taxes - Schedule of Principal Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryover | $ 282,650 | $ 599,839 |
Compensation and benefits | 269,788 | 213,340 |
Tax credits | 66,272 | 93,026 |
Securities valuation reserves | 76,931 | 3,012 |
Other | 156,751 | 130,735 |
Gross tax assets | 852,392 | 1,039,952 |
Valuation allowance | (38,512) | (93,758) |
Total deferred tax assets, net | 813,880 | 946,194 |
Amortization of intangible assets | (69,970) | (71,583) |
Investment in associated companies | (171,006) | (83,114) |
Transition tax | 0 | (35,165) |
Other | (60,115) | (12,521) |
Gross tax liability | (301,091) | (202,383) |
Net deferred tax asset | $ 512,789 | $ 743,811 |
Other Results of Operations I_3
Other Results of Operations Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2018 | Mar. 31, 2017 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Dividend income | $ 5,416 | $ (452) | $ 3,856 | |||
Income from associated companies classified as other revenues | 73,975 | 75,889 | 17,184 | |||
Net realized securities gains (losses) | (939) | 23,028 | 29,542 | |||
Gain on sale of subsidiaries | 221,712 | 179,605 | 0 | |||
Other | 131,213 | 81,478 | 38,801 | |||
Total revenues | 5,009,728 | 5,048,906 | 3,848,011 | |||
Taxes other than income or payroll | 39,900 | 32,700 | 29,300 | |||
Proceeds from sale of debt securities, available-for-sale | 1,600,000 | |||||
Proceeds from sale of investments classified as available-for-sale | 400,000 | 500,000 | ||||
Disposal group, disposed of by sale, not discontinued operations | Garcadia | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of subsidiaries | 221,712 | 0 | 0 | |||
Percentage of equity interest sold | 100.00% | |||||
Proceeds from sale of equity interests and associated real estate | $ 417,200 | |||||
Pre-tax gain on sale of equity interests and associated real estate | $ 221,700 | 221,700 | ||||
Disposal group, disposed of by sale, not discontinued operations | Conwed | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of subsidiaries | $ 179,900 | 0 | 178,236 | 0 | ||
Percentage of ownership interest sold | 100.00% | |||||
Cash consideration from sale of business | $ 295,000 | |||||
Potential earn-out payment to be received from sale of subsidiary | $ 40,000 | |||||
Asset management fees | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | 28,144 | 28,831 | 29,492 | |||
Oil and gas production and development businesses | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | 127,090 | 61,541 | 49,890 | |||
Other | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total revenues | $ 586,611 | $ 448,551 | $ 168,765 |
Common Shares and Earnings Pe_3
Common Shares and Earnings Per Common Share - Earnings Per Share Computation (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator for earnings per share: | ||||||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ (20,371) | $ 192,635 | $ 725,529 | $ 124,525 | $ (271,601) | $ 99,351 | $ 58,193 | $ 281,408 | $ 1,022,318 | $ 610,277 | $ 167,351 | $ 125,938 |
Allocation of earnings to participating securities | (5,107) | (610) | (574) | |||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 1,017,211 | 166,741 | 125,364 | |||||||||
Adjustment to allocation of earnings to participating securities related to diluted shares | 28 | (14) | (19) | |||||||||
Mandatorily redeemable convertible preferred share dividends | 0 | 0 | 0 | |||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ 1,017,239 | $ 166,727 | $ 125,345 | |||||||||
Denominator for earnings per share: | ||||||||||||
Weighted average common shares outstanding (in shares) | 337,817,000 | 358,482,000 | 361,151,000 | |||||||||
Denominator for basic earnings per share – weighted average shares (in shares) | 329,101,000 | 341,434,000 | 352,049,000 | 366,427,000 | 366,000,000 | 367,828,000 | 369,212,000 | 369,267,000 | 347,261,000 | 368,197,000 | 371,211,000 | |
Mandatorily redeemable convertible preferred shares (in shares) | 0 | 0 | 0 | |||||||||
Denominator for diluted earnings per share (in shares) | 329,101,000 | 350,307,000 | 356,075,000 | 373,461,000 | 366,000,000 | 370,198,000 | 371,552,000 | 375,721,000 | 351,275,000 | 370,701,000 | 371,518,000 | |
Weighted average shares of participating securities (in shares) | 1,724,800 | 1,401,000 | 1,986,800 | |||||||||
Restricted Stock with Future Service Required | ||||||||||||
Denominator for earnings per share: | ||||||||||||
Weighted average shares of restricted stock outstanding with future service required (in shares) | (1,707,000) | (1,349,000) | (1,645,000) | |||||||||
Restricted Stock Units with No Future Service Required | ||||||||||||
Denominator for earnings per share: | ||||||||||||
Weighted average RSUs outstanding with no future service required (in shares) | 11,151,000 | 11,064,000 | 11,705,000 | |||||||||
Stock options | ||||||||||||
Denominator for earnings per share: | ||||||||||||
Dilutive effect of share-based payment arrangements (in shares) | 7,000 | 24,000 | 0 | |||||||||
Senior Executive Compensation Plan | Restricted Stock Units (RSUs) | ||||||||||||
Denominator for earnings per share: | ||||||||||||
Dilutive effect of share-based payment arrangements (in shares) | 4,007,000 | 2,480,000 | 307,000 |
Common Shares and Earnings Pe_4
Common Shares and Earnings Per Common Share - Narrative (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |||||
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Number of common shares authorized to repurchase (in shares) | 25,000,000 | 25,000,000 | |||||
Remaining number of shares authorized to be repurchased (in shares) | 0 | 12,500,000 | |||||
Number of shares repurchased during period (in shares) | 50,000,000 | ||||||
3.875% Convertible Senior Debentures, due November 1, 2029 | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Convertible notes interest rate | 3.875% | 3.875% | 3.875% | ||||
Redeemable Convertible Preferred Shares | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Securities excluded from computation of earnings per share amount (in shares) | 4,162,200 | 4,162,200 | 4,162,200 | ||||
Subsequent Event | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 500,000,000 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Narrative (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Rental expense (net of sublease rental income) | $ 55,700,000 | $ 60,200,000 | $ 61,600,000 |
Loan commitments outstanding to clients | 57,500,000 | ||
Fair value of derivative contracts meeting the definition of a guarantee | $ 277,500,000 | ||
Standby letters of credit | |||
Loss Contingencies [Line Items] | |||
Debt instrument, term | 1 year | ||
Jefferies Capital Partners LLC and Its Private Equity Funds | |||
Loss Contingencies [Line Items] | |||
Equity commitments | $ 18,100,000 | ||
Other Various Investments | |||
Loss Contingencies [Line Items] | |||
Equity commitments | 282,600,000 | ||
Alternative Asset Management Platforms | |||
Loss Contingencies [Line Items] | |||
Equity commitments | 250,000,000 | ||
Jefferies Finance | |||
Loss Contingencies [Line Items] | |||
Line of credit commitment to associated companies, funded portion | 0 | 0 | |
Line of credit facility commitment of Jefferies | $ 250,000,000 | $ 250,000,000 | |
Berkadia | |||
Loss Contingencies [Line Items] | |||
Reimbursement of losses incurred, maximum percentage | 50.00% | ||
Surety policy issued | $ 1,500,000,000 | ||
Aggregate amount of commercial paper outstanding | 1,470,000,000 | ||
Jefferies Group | Standby letters of credit | |||
Loss Contingencies [Line Items] | |||
Letters of credit | 52,600,000 | ||
Other subsidiaries | |||
Loss Contingencies [Line Items] | |||
Letters of credit | $ 1,600,000 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Noncancellable operating lease terms | 1 year | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Noncancellable operating lease terms | 21 years |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Schedule of Future Minimum Annual Rentals (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 73,060 |
2,020 | 63,982 |
2,021 | 65,456 |
2,022 | 63,840 |
2,023 | 60,064 |
Thereafter | 432,880 |
Future minimum annual rentals | 759,282 |
Less: sublease income | (26,415) |
Future minimum annual rentals net of sublease income | $ 732,867 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Schedule of Commitments (Details) $ in Millions | Nov. 30, 2018USD ($) |
Guarantor Obligations [Line Items] | |
2,019 | $ 8,339.2 |
2,020 | 29.3 |
2021 and 2022 | 124.7 |
2023 and 2024 | 8.4 |
2025 and Later | 10.5 |
Maximum Payout | 8,512.1 |
Equity commitments | |
Guarantor Obligations [Line Items] | |
2,019 | 322.4 |
2,020 | 21.8 |
2021 and 2022 | 1.3 |
2023 and 2024 | 0 |
2025 and Later | 10.5 |
Maximum Payout | 356 |
Loan commitments | |
Guarantor Obligations [Line Items] | |
2,019 | 250 |
2,020 | 7.5 |
2021 and 2022 | 54 |
2023 and 2024 | 3.5 |
2025 and Later | 0 |
Maximum Payout | 315 |
Underwriting commitments | |
Guarantor Obligations [Line Items] | |
2,019 | 377.5 |
2,020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 377.5 |
Forward starting reverse repos | |
Guarantor Obligations [Line Items] | |
2,019 | 4,262.7 |
2,020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 4,262.7 |
Other commitment settled within three business days | 4,232.8 |
Forward starting repos | |
Guarantor Obligations [Line Items] | |
2,019 | 2,931.8 |
2,020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 2,931.8 |
Other unfunded commitments | |
Guarantor Obligations [Line Items] | |
2,019 | 194.8 |
2,020 | 0 |
2021 and 2022 | 69.4 |
2023 and 2024 | 4.9 |
2025 and Later | 0 |
Maximum Payout | $ 269.1 |
Commitments, Contingencies an_6
Commitments, Contingencies and Guarantees - Summary of Notional Amounts Associated with Derivative Contracts (Details) $ in Millions | Nov. 30, 2018USD ($) |
Derivative contracts – non-credit related | |
Guarantor Obligations [Line Items] | |
2,019 | $ 12,024.2 |
2,020 | 2,372.3 |
2021 and 2022 | 2,976.1 |
2023 and 2024 | 281.1 |
2025 and Later | 330.3 |
Notional/ Maximum Payout | 17,984 |
Written derivative contracts – credit related | |
Guarantor Obligations [Line Items] | |
2,019 | 0 |
2,020 | 32.4 |
2021 and 2022 | 0 |
2023 and 2024 | 112.8 |
2025 and Later | 0 |
Notional/ Maximum Payout | 145.2 |
Derivatives | |
Guarantor Obligations [Line Items] | |
2,019 | 12,024.2 |
2,020 | 2,404.7 |
2021 and 2022 | 2,976.1 |
2023 and 2024 | 393.9 |
2025 and Later | 330.3 |
Notional/ Maximum Payout | $ 18,129.2 |
Net Capital Requirements (Detai
Net Capital Requirements (Details) - Jefferies LLC $ in Millions | Nov. 30, 2018USD ($) |
Net Capital Requirements [Line Items] | |
Net Capital | $ 1,739.4 |
Excess Net Capital | $ 1,636 |
Other Fair Value Information (D
Other Fair Value Information (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings | $ 387,492 | $ 436,215 |
Long-term debt | 7,617,563 | 7,885,783 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 680,015 | 579,071 |
Short-term borrowings | 387,492 | 412,891 |
Long-term debt | 6,931,393 | 7,278,827 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 676,152 | 565,285 |
Short-term borrowings | 387,492 | 412,891 |
Long-term debt | $ 6,826,503 | $ 7,678,210 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Private Equity Related Funds | |||
Related Party Transaction [Line Items] | |||
Loans to and/or equity investments in related funds | $ 35.5 | $ 23.7 | |
Net gains (losses) from private equity related funds | (11.8) | 11.7 | $ 2.3 |
Officers and Employees | |||
Related Party Transaction [Line Items] | |||
Loans outstanding to related party | 49.3 | 45.6 | |
Berkadia | Affiliated Entity | Jefferies Group | |||
Related Party Transaction [Line Items] | |||
Purchase commitment | 723.8 | 864.1 | |
HRG | Affiliated Entity | Jefferies Group | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 3 | ||
FXCM | Payables, expense accruals and other liabilities | Affiliated Entity | Jefferies Group | |||
Related Party Transaction [Line Items] | |||
OTC foreign exchange contracts | $ 9.9 | $ 17 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Thousands | Jun. 05, 2018USD ($) | Nov. 30, 2018USD ($)director | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Nov. 30, 2018USD ($)director | Nov. 30, 2018USD ($)director | Nov. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 04, 2018 | Dec. 31, 2015USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Income allocated to redeemable noncontrolling interests | $ (31) | $ 390 | $ 22,108 | $ 14,796 | $ 20,038 | $ 36,216 | $ 16,300 | $ 12,022 | $ 37,263 | $ 78,506 | $ 84,576 | $ 65,746 | ||||
Income from discontinued operations before income taxes | 140,000 | 322,000 | 260,200 | |||||||||||||
Income (loss) related to associated companies | 57,023 | (76,864) | (74,901) | 154,598 | ||||||||||||
Income from continuing operations before income taxes | 296,100 | $ 618,110 | 606,502 | (12,592) | ||||||||||||
Gain on disposal of discontinued operations, net of income tax provision of $229,553, $0 and $0 | 0 | 0 | 643,921 | $ 0 | 643,921 | 0 | 0 | |||||||||
Investment in associated company | $ 2,417,332 | 2,066,829 | $ 2,417,332 | $ 2,417,332 | 2,066,829 | 2,125,098 | $ 1,757,369 | |||||||||
National Beef | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Ownership percentage | 79.00% | |||||||||||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | 31.00% | ||||||||||||
Income (loss) related to associated companies | $ 26,800 | $ 58,900 | $ 110,000 | $ 110,049 | ||||||||||||
Distributions received | 48,700 | |||||||||||||||
Investment in associated company | $ 592,300 | $ 653,630 | $ 0 | $ 653,630 | $ 653,630 | 0 | ||||||||||
Marfrig Global Foods S.A. | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Ownership percentage | 51.00% | 51.00% | 51.00% | |||||||||||||
Ownership percentage to be acquired from other equity owners | 3.00% | |||||||||||||||
National Beef | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||
Number of directors appointed by Company | director | 2 | 2 | 2 | |||||||||||||
Lockup period related to divestiture of businesses | 5 years | |||||||||||||||
Income allocated to redeemable noncontrolling interests | $ 37,141 | $ 85,277 | $ 68,800 | |||||||||||||
Income from continuing operations before income taxes | $ 367,200 | |||||||||||||||
Equity valuation | $ 1,900,000 | |||||||||||||||
Enterprise value | $ 2,300,000 | |||||||||||||||
Discontinued operations, disposed of by sale | National Beef | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Ownership percentage | 48.00% | |||||||||||||||
Cash received from sale of subsidiary | $ 907,700 | |||||||||||||||
Pre-tax gain recognized as result of sale | 873,500 | |||||||||||||||
Gain on disposal of discontinued operations, net of income tax provision of $229,553, $0 and $0 | $ 643,900 | 643,900 | ||||||||||||||
Pre-tax gain on disposal of discontinued operation, portion related to remeasurement to fair value | $ 352,400 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Discontinued Operations (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 5 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 04, 2018 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses: | ||||||||||||
Income tax provision | $ 47,045 | $ 118,681 | $ 96,336 | |||||||||
Income from discontinued operations, net of income tax provision | $ 0 | $ 0 | $ 77,106 | $ 52,957 | $ 69,480 | $ 120,989 | $ 53,990 | $ 44,172 | $ 130,063 | 288,631 | 232,686 | |
National Beef | Discontinued operations, disposed of by sale | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | $ 3,142,071 | 7,358,948 | 7,027,243 | |||||||||
Expenses: | ||||||||||||
Compensation and benefits | 17,414 | 39,884 | 39,271 | |||||||||
Cost of sales | 2,884,983 | 6,764,055 | 6,513,768 | |||||||||
Interest expense | 4,316 | 6,657 | 12,946 | |||||||||
Depreciation and amortization | 43,959 | 98,515 | 94,482 | |||||||||
Selling, general and other expenses | 14,291 | 42,525 | 37,754 | |||||||||
Total expenses | 2,964,963 | 6,951,636 | 6,698,221 | |||||||||
Income from discontinued operations before income taxes | 177,108 | 407,312 | 329,022 | |||||||||
Income tax provision | 47,045 | 118,681 | 96,336 | |||||||||
Income from discontinued operations, net of income tax provision | 130,063 | 288,631 | 232,686 | |||||||||
National Beef | Discontinued operations, disposed of by sale | Beef processing services | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | 3,137,611 | 7,353,663 | 7,021,902 | |||||||||
National Beef | Discontinued operations, disposed of by sale | Interest income | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | 131 | 339 | 166 | |||||||||
National Beef | Discontinued operations, disposed of by sale | Other | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | $ 4,329 | $ 4,946 | $ 5,175 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | Jun. 05, 2018USD ($) | Jan. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Nov. 30, 2018USD ($)Segment | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Oct. 01, 2018 | Jun. 04, 2018 |
Segment Reporting Information [Line Items] | |||||||||
Number of reportable segments | Segment | 3 | 3 | |||||||
Interest expense | $ 89,249 | $ 101,202 | $ 95,757 | ||||||
Gain on sale of subsidiaries | 221,712 | 179,605 | 0 | ||||||
Merchant Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest expense | 35,200 | 42,300 | 36,900 | ||||||
Parent Company | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest expense | 54,090 | 58,943 | 58,881 | ||||||
Discontinued operations, disposed of by sale | National Beef | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Ownership percentage | 48.00% | ||||||||
Cash received from sale of subsidiary | $ 907,700 | ||||||||
Discontinued operations, disposed of by sale | Garcadia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Percentage of equity interest sold | 100.00% | ||||||||
Disposal group, disposed of by sale, not discontinued operations | Garcadia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Percentage of equity interest sold | 100.00% | ||||||||
Pre-tax gain on sale of equity interests and associated real estate | $ 221,700 | 221,700 | |||||||
Gain on sale of subsidiaries | 221,712 | 0 | 0 | ||||||
Disposal group, disposed of by sale, not discontinued operations | Conwed | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Cash received from sale of subsidiary | $ 295,000 | ||||||||
Potential earn-out payment to be received from sale of subsidiary | $ 40,000 | ||||||||
Gain on sale of subsidiaries | $ 179,900 | $ 0 | $ 178,236 | $ 0 | |||||
Berkadia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||||||
National Beef | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Ownership percentage | 79.00% | ||||||||
Equity method investment, ownership percentage | 31.00% | 31.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information By Segment (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | $ 806,594 | $ 1,150,846 | $ 911,159 | $ 895,435 | $ 1,056,835 | $ 857,223 | $ 856,861 | $ 1,306,526 | $ 3,764,034 | $ 4,031,333 | $ 4,077,445 | $ 3,035,374 | ||||
Income from continuing operations before income taxes | 296,100 | $ 618,110 | 606,502 | (12,592) | ||||||||||||
Depreciation and amortization | 120,317 | 110,395 | 117,111 | |||||||||||||
Identifiable assets employed | 47,131,095 | [1] | 47,169,108 | [1] | 47,131,095 | [1] | 47,169,108 | [1] | 45,071,307 | |||||||
Deferred tax asset, net | 512,800 | 512,800 | ||||||||||||||
Parent Company interest | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Income from continuing operations before income taxes | (54,090) | (58,943) | (58,881) | |||||||||||||
Identifiable assets employed | 11,388,675 | 19,891,264 | 11,388,675 | 19,891,264 | ||||||||||||
Leucadia Asset Management and Berkadia Transferred | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | 6,700 | 49,600 | 26,500 | |||||||||||||
Income from continuing operations before income taxes | 47,700 | 118,400 | 109,400 | |||||||||||||
Identifiable assets employed | 662,200 | 662,200 | 238,100 | |||||||||||||
FXCM | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Income from continuing operations before income taxes | (64,600) | (154,500) | (52,700) | |||||||||||||
Principal transactions | 18,600 | 23,200 | (54,600) | |||||||||||||
Jefferies Group | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | 3,183,376 | 3,198,109 | 2,414,614 | |||||||||||||
Deferred tax asset, net | 243,200 | 213,000 | 243,200 | 213,000 | 337,600 | |||||||||||
Reportable Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | 3,777,507 | 4,080,595 | 3,039,107 | |||||||||||||
Income from continuing operations before income taxes | 354,015 | 654,495 | 42,816 | |||||||||||||
Identifiable assets employed | 47,253,505 | 47,239,429 | 47,253,505 | 47,239,429 | 45,153,988 | |||||||||||
Consolidation adjustments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | (13,473) | (3,150) | (3,733) | |||||||||||||
Income from continuing operations before income taxes | (3,825) | 10,950 | 3,473 | |||||||||||||
Identifiable assets employed | (122,410) | (70,321) | (122,410) | (70,321) | (82,681) | |||||||||||
Jefferies Group | Reportable Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | 3,183,376 | 3,198,109 | 2,414,614 | |||||||||||||
Income from continuing operations before income taxes | 409,667 | 504,924 | 29,972 | |||||||||||||
Depreciation and amortization | 68,296 | 62,668 | 60,206 | |||||||||||||
Identifiable assets employed | 41,224,984 | 39,575,732 | 41,224,984 | 39,575,732 | 36,992,096 | |||||||||||
Merchant Banking | Reportable Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | 571,831 | 876,180 | 621,804 | |||||||||||||
Income from continuing operations before income taxes | 10,488 | 228,373 | 85,188 | |||||||||||||
Depreciation and amortization | 48,852 | 44,257 | 53,286 | |||||||||||||
Identifiable assets employed | 4,190,484 | 4,903,530 | 4,190,484 | 4,903,530 | 5,120,337 | |||||||||||
National Beef | Reportable Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Identifiable assets employed | 0 | 1,460,539 | 0 | 1,460,539 | 1,498,317 | |||||||||||
Corporate | Reportable Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net revenues | 22,300 | 6,306 | 2,689 | |||||||||||||
Income from continuing operations before income taxes | (66,140) | (78,802) | (72,344) | |||||||||||||
Depreciation and amortization | 3,169 | 3,470 | 3,619 | |||||||||||||
Identifiable assets employed | $ 1,838,037 | $ 1,299,628 | $ 1,838,037 | $ 1,299,628 | $ 1,543,238 | |||||||||||
[1] | Total assets include assets related to variable interest entities of $704.4 million and $382.9 million at November 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,535.8 million and $1,031.0 million at November 30, 2018 and December 31, 2017, respectively. See Note 10 for additional information related to variable interest entities. |
Segment Information - Schedul_2
Segment Information - Schedule of Net Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | $ 806,594 | $ 1,150,846 | $ 911,159 | $ 895,435 | $ 1,056,835 | $ 857,223 | $ 856,861 | $ 1,306,526 | $ 3,764,034 | $ 4,031,333 | $ 4,077,445 | $ 3,035,374 |
Jefferies Group | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 3,183,376 | 3,198,109 | 2,414,614 | |||||||||
Americas | Jefferies Group | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 2,652,917 | 2,602,741 | 1,870,355 | |||||||||
Europe | Jefferies Group | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 434,895 | 489,583 | 458,046 | |||||||||
Asia | Jefferies Group | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | $ 95,564 | $ 105,785 | $ 86,213 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | 23 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 04, 2018 | Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2018 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Net revenues | $ 806,594 | $ 1,150,846 | $ 911,159 | $ 895,435 | $ 1,056,835 | $ 857,223 | $ 856,861 | $ 1,306,526 | $ 3,764,034 | $ 4,031,333 | $ 4,077,445 | $ 3,035,374 | |||
Income (loss) from continuing operations | (19,318) | 182,301 | 27,917 | 86,192 | (321,385) | 15,778 | 20,072 | 249,751 | 277,092 | 422,560 | (35,784) | (38,365) | |||
Income from discontinued operations, net of taxes | 0 | 0 | 77,106 | 52,957 | 69,480 | 120,989 | 53,990 | 44,172 | 130,063 | 288,631 | 232,686 | ||||
Gain on disposal of discontinued operations, net of taxes | 0 | 0 | 643,921 | 0 | 643,921 | 0 | 0 | ||||||||
Net (income) loss attributable to the noncontrolling interest | (233) | 12,000 | (136) | 1,344 | 1,514 | (28) | 1,446 | 523 | 12,975 | 3,455 | 1,426 | ||||
Net (income) loss attributable to the redeemable noncontrolling interests | 31 | (390) | (22,108) | (14,796) | (20,038) | (36,216) | (16,300) | (12,022) | (37,263) | (78,506) | (84,576) | (65,746) | |||
Preferred stock dividends | (851) | (1,276) | (1,171) | (1,172) | (1,172) | (1,172) | (1,015) | (1,016) | (4,470) | (4,375) | (4,063) | ||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ (20,371) | $ 192,635 | $ 725,529 | $ 124,525 | $ (271,601) | $ 99,351 | $ 58,193 | $ 281,408 | $ 1,022,318 | $ 610,277 | $ 167,351 | $ 125,938 | |||
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | |||||||||||||||
Income (loss) from continuing operations (USD per share) | $ (0.06) | $ 0.56 | $ 0.08 | $ 0.23 | $ (0.88) | $ 0.04 | $ 0.06 | $ 0.67 | $ 0.82 | $ 1.14 | $ (0.10) | $ (0.10) | |||
Income from discontinued operations (USD per share) | 0 | 0 | 0.15 | 0.11 | 0.14 | 0.23 | 0.10 | 0.09 | 0.27 | 0.55 | 0.44 | ||||
Gain on disposal of discontinued operations - basic (USD per share) | 0 | 0 | 1.82 | 0 | 1.84 | 0 | 0 | ||||||||
Net income (USD per share) | $ (0.06) | $ 0.56 | $ 2.05 | $ 0.34 | $ (0.74) | $ 0.27 | $ 0.16 | $ 0.76 | $ 2.93 | 1.65 | $ 0.45 | $ 0.34 | |||
Number of shares used in calculation - basic (shares) | 329,101 | 341,434 | 352,049 | 366,427 | 366,000 | 367,828 | 369,212 | 369,267 | 347,261 | 368,197 | 371,211 | ||||
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | |||||||||||||||
Income (loss) from continuing operations (USD per share) | $ (0.06) | $ 0.55 | $ 0.08 | $ 0.23 | $ (0.88) | $ 0.04 | $ 0.06 | $ 0.66 | $ 0.81 | 1.13 | $ (0.10) | $ (0.10) | |||
Income from discontinued operations (USD per share) | 0 | 0 | 0.15 | 0.11 | 0.14 | 0.23 | 0.10 | 0.09 | 0.26 | 0.55 | 0.44 | ||||
Gain on disposal of discontinued operations - diluted (USD per share) | 0 | 0 | 1.80 | 0 | 1.83 | 0 | 0 | ||||||||
Net income (USD per share) | $ (0.06) | $ 0.55 | $ 2.03 | $ 0.34 | $ (0.74) | $ 0.27 | $ 0.16 | $ 0.75 | $ 2.90 | $ 1.63 | $ 0.45 | $ 0.34 | |||
Number of shares used in calculation - diluted (in shares) | 329,101 | 350,307 | 356,075 | 373,461 | 366,000 | 370,198 | 371,552 | 375,721 | 351,275 | 370,701 | 371,518 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Gain on sale of subsidiaries | $ 221,712 | $ 179,605 | $ 0 | ||||||||||||
Income (Loss) from Equity Method Investments | 57,023 | $ (76,864) | (74,901) | 154,598 | |||||||||||
Discrete tax expense related to Tax Cuts and Jobs Act of 2017 | $ 450,500 | 450,500 | $ 458,800 | ||||||||||||
Discrete tax expense related to revaluation of deferred tax asset | 415,000 | 5,673 | 415,000 | 0 | 420,700 | ||||||||||
Discrete tax expense related to deemed repatriation of foreign earnings | $ 35,500 | 2,590 | 35,500 | 0 | $ 38,100 | ||||||||||
Conwed | Disposal group, disposed of by sale, not discontinued operations | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Gain on sale of subsidiaries | $ 179,900 | 0 | 178,236 | 0 | |||||||||||
National Beef | Discontinued operations, disposed of by sale | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Income from discontinued operations, net of taxes | $ 130,063 | 288,631 | 232,686 | ||||||||||||
Gain on disposal of discontinued operations, net of taxes | $ 643,900 | 643,900 | |||||||||||||
Garcadia | Disposal group, disposed of by sale, not discontinued operations | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Gain on sale of subsidiaries | 221,712 | $ 0 | $ 0 | ||||||||||||
Pre-tax gain on sale of equity interests and associated real estate | $ 221,700 | 221,700 | |||||||||||||
Investment in HRG | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Increase (decrease) in fair value of investments reflected as principal transactions | $ (158,400) | $ (21,400) | $ (97,900) | $ (75,000) | 175,200 | ||||||||||
Investment in FXCM | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Equity method investment impairment | $ 62,100 | $ 130,200 | |||||||||||||
National Beef | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Income (Loss) from Equity Method Investments | 26,800 | 58,900 | $ 110,000 | 110,049 | |||||||||||
Investment in KCG | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Increase (decrease) in fair value of investments reflected as principal transactions | $ 95,800 | ||||||||||||||
Investment In Golden Queen | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Equity method investment impairment | 47,900 | $ 47,900 | |||||||||||||
Spectrum Brands | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Increase (decrease) in fair value of investments reflected as principal transactions | (190,400) | $ (48,500) | |||||||||||||
WeWork | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Increase (decrease) in fair value of investments reflected as principal transactions | $ (70,900) |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
ASSETS | ||||||
Cash and cash equivalents | $ 5,258,809 | $ 5,275,480 | $ 3,807,558 | |||
Financial instruments owned, including securities pledged of $13,059,802 and $10,842,051: | ||||||
Trading assets, at fair value | 17,463,256 | 16,082,676 | ||||
Available for sale securities | 1,409,886 | 628,075 | ||||
Available for sale securities | 716,561 | |||||
Total financial instruments owned | 18,873,142 | 16,799,237 | ||||
Loans to and investments in associated companies | 2,417,332 | 2,066,829 | ||||
Deferred tax asset, net | 512,789 | 743,811 | ||||
Other assets | 1,859,561 | 2,412,180 | ||||
Total assets | 47,131,095 | [1] | 47,169,108 | [1] | $ 45,071,307 | |
LIABILITIES | ||||||
Long-term debt | 7,617,563 | 7,885,783 | ||||
Total liabilities | [1] | 36,907,059 | 36,478,536 | |||
Commitments and contingencies | ||||||
MEZZANINE EQUITY | ||||||
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | ||||
EQUITY | ||||||
Common shares, par value $1 per share, authorized 600,000,000 shares; 307,515,472 and 356,227,038 shares issued and outstanding, after deducting 109,460,774 and 60,165,980 shares held in treasury | 307,515 | 356,227 | ||||
Additional paid-in capital | 3,854,847 | 4,676,038 | ||||
Accumulated other comprehensive income | 288,286 | 372,724 | ||||
Retained earnings | 5,610,218 | 4,700,968 | ||||
Total Jefferies Financial Group Inc. shareholders' equity | 10,060,866 | 10,105,957 | ||||
Total | 47,131,095 | 47,169,108 | ||||
Parent Company | ||||||
ASSETS | ||||||
Cash and cash equivalents | 48,540 | 12,317 | ||||
Financial instruments owned, including securities pledged of $13,059,802 and $10,842,051: | ||||||
Trading assets, at fair value | 338,067 | 200,804 | ||||
Available for sale securities | 0 | |||||
Available for sale securities | 16,378 | |||||
Total financial instruments owned | 338,067 | 217,182 | ||||
Investments in subsidiaries | 9,774,541 | 18,615,819 | ||||
Advances to subsidiaries | 224,653 | 542,976 | ||||
Loans to and investments in associated companies | 929,477 | 288,382 | ||||
Deferred tax asset, net | 63,211 | 205,773 | ||||
Other assets | 10,186 | 8,815 | ||||
Total assets | 11,388,675 | 19,891,264 | ||||
LIABILITIES | ||||||
Accrued interest payable | 6,629 | 11,447 | ||||
Pension liabilities | 45,721 | 52,841 | ||||
Other payables, expense accruals and other liabilities | 160,339 | 31,919 | ||||
Advances from subsidiaries | 4 | 8,575,079 | ||||
Long-term debt | 990,116 | 989,021 | ||||
Total liabilities | 1,202,809 | 9,660,307 | ||||
Commitments and contingencies | ||||||
MEZZANINE EQUITY | ||||||
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | ||||
EQUITY | ||||||
Common shares, par value $1 per share, authorized 600,000,000 shares; 307,515,472 and 356,227,038 shares issued and outstanding, after deducting 109,460,774 and 60,165,980 shares held in treasury | 307,515 | 356,227 | ||||
Additional paid-in capital | 3,854,847 | 4,676,038 | ||||
Accumulated other comprehensive income | 288,286 | 372,724 | ||||
Retained earnings | 5,610,218 | 4,700,968 | ||||
Total Jefferies Financial Group Inc. shareholders' equity | 10,060,866 | 10,105,957 | ||||
Total | $ 11,388,675 | $ 19,891,264 | ||||
[1] | Total assets include assets related to variable interest entities of $704.4 million and $382.9 million at November 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,535.8 million and $1,031.0 million at November 30, 2018 and December 31, 2017, respectively. See Note 10 for additional information related to variable interest entities. |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Financial Condition, Additional Information (Details) - $ / shares | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common shares, par value (USD per share) | $ 1 | $ 1 | $ 1 |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 | |
Common shares, issued and outstanding after deducting shares held in treasury (in shares) | 307,515,472 | 356,227,038 | |
Treasury stock, shares (in shares) | 109,460,774 | 60,165,980 | |
Parent Company | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common shares, par value (USD per share) | $ 1 | $ 1 | |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 | |
Common shares, issued and outstanding after deducting shares held in treasury (in shares) | 307,515,472 | 356,227,038 | |
Treasury stock, shares (in shares) | 109,460,774 | 60,165,980 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||||||||||||
Revenues | $ 5,009,728 | $ 5,048,906 | $ 3,848,011 | |||||||||
Expenses: | ||||||||||||
Compensation and benefits | 1,862,782 | 1,950,935 | 1,688,325 | |||||||||
Interest expense | 89,249 | 101,202 | 95,757 | |||||||||
Selling, general and other expenses | 961,328 | 778,052 | 797,127 | |||||||||
Total expenses | 3,524,957 | $ 3,336,359 | 3,396,042 | 3,202,564 | ||||||||
Income (loss) related to associated companies | 57,023 | (76,864) | (74,901) | 154,598 | ||||||||
Income tax benefit | 19,008 | 195,550 | 642,286 | 25,773 | ||||||||
Income (loss) from continuing operations | 285,475 | (36,003) | (37,937) | |||||||||
Preferred stock dividends | $ (851) | $ (1,276) | $ (1,171) | $ (1,172) | $ (1,172) | $ (1,172) | $ (1,015) | $ (1,016) | (4,470) | (4,375) | (4,063) | |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ (20,371) | $ 192,635 | $ 725,529 | $ 124,525 | $ (271,601) | $ 99,351 | $ 58,193 | $ 281,408 | $ 1,022,318 | $ 610,277 | $ 167,351 | $ 125,938 |
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||||||
Income (loss) from continuing operations (USD per share) | $ (0.06) | $ 0.56 | $ 0.08 | $ 0.23 | $ (0.88) | $ 0.04 | $ 0.06 | $ 0.67 | $ 0.82 | $ 1.14 | $ (0.10) | $ (0.10) |
Income from discontinued operations (USD per share) | 0 | 0 | 0.15 | 0.11 | 0.14 | 0.23 | 0.10 | 0.09 | 0.27 | 0.55 | 0.44 | |
Gain on disposal of discontinued operations (USD per share) | 0 | 0 | 1.82 | 0 | 1.84 | 0 | 0 | |||||
Net income (USD per share) | (0.06) | 0.56 | 2.05 | 0.34 | (0.74) | 0.27 | 0.16 | 0.76 | 2.93 | 1.65 | 0.45 | 0.34 |
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||||||
Income from continuing operations (USD per share) | (0.06) | 0.55 | 0.08 | 0.23 | (0.88) | 0.04 | 0.06 | 0.66 | 0.81 | 1.13 | (0.10) | (0.10) |
Income from discontinued operations (USD per share) | 0 | 0 | 0.15 | 0.11 | 0.14 | 0.23 | 0.10 | 0.09 | 0.26 | 0.55 | 0.44 | |
Gain on disposal of discontinued operations (USD per share) | 0 | 0 | 1.80 | 0 | 1.83 | 0 | 0 | |||||
Net income (USD per share) | $ (0.06) | $ 0.55 | $ 2.03 | $ 0.34 | $ (0.74) | $ 0.27 | $ 0.16 | $ 0.75 | $ 2.90 | $ 1.63 | $ 0.45 | $ 0.34 |
Parent Company | ||||||||||||
Revenues: | ||||||||||||
Revenues | $ 121,549 | $ (9,477) | $ 19,035 | |||||||||
Expenses: | ||||||||||||
Compensation and benefits | 49,955 | 47,462 | 39,693 | |||||||||
WilTel pension expense | 2,659 | 2,957 | 2,989 | |||||||||
Interest expense | 54,090 | 58,943 | 58,881 | |||||||||
Intercompany interest expense | 3,642 | 361,446 | 293,527 | |||||||||
Selling, general and other expenses | 21,664 | 20,821 | 19,244 | |||||||||
Total expenses | 132,010 | 491,629 | 414,334 | |||||||||
Loss from continuing operations before income taxes, income related to associated companies and equity in earnings of subsidiaries | (10,461) | (501,106) | (395,299) | |||||||||
Income (loss) related to associated companies | 96,808 | 3,183 | 21,195 | |||||||||
Income (loss) from continuing operations before income taxes and equity in earnings of subsidiaries | 86,347 | (497,923) | (374,104) | |||||||||
Income tax benefit | (5,281) | (47,329) | (117,699) | |||||||||
Income (loss) from continuing operations before equity in earnings of subsidiaries | 91,628 | (450,594) | (256,405) | |||||||||
Equity in earnings from continuing operations of subsidiaries, net of taxes | 198,317 | 418,966 | 222,531 | |||||||||
Income (loss) from continuing operations | 289,945 | (31,628) | (33,874) | |||||||||
Equity in earnings from discontinued operations of subsidiaries, net of taxes | 92,922 | 203,354 | 163,875 | |||||||||
Gain on disposal of discontinued operations, net of taxes | 643,921 | 0 | 0 | |||||||||
Net income | 1,026,788 | 171,726 | 130,001 | |||||||||
Preferred stock dividends | (4,470) | (4,375) | (4,063) | |||||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 1,022,318 | $ 167,351 | $ 125,938 | |||||||||
Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||||||
Income (loss) from continuing operations (USD per share) | $ 0.82 | $ (0.10) | $ (0.10) | |||||||||
Income from discontinued operations (USD per share) | 0.27 | 0.55 | 0.44 | |||||||||
Gain on disposal of discontinued operations (USD per share) | 1.84 | 0 | 0 | |||||||||
Net income (USD per share) | 2.93 | 0.45 | 0.34 | |||||||||
Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||||||||||
Income from continuing operations (USD per share) | 0.81 | (0.10) | (0.10) | |||||||||
Income from discontinued operations (USD per share) | 0.26 | 0.55 | 0.44 | |||||||||
Gain on disposal of discontinued operations (USD per share) | 1.83 | 0 | 0 | |||||||||
Net income (USD per share) | $ 2.90 | $ 0.45 | $ 0.34 | |||||||||
Principal transactions | ||||||||||||
Revenues: | ||||||||||||
Revenues | $ 232,224 | $ 923,418 | $ 534,784 | |||||||||
Principal transactions | Parent Company | ||||||||||||
Revenues: | ||||||||||||
Revenues | 120,886 | (9,754) | 16,735 | |||||||||
Other | ||||||||||||
Revenues: | ||||||||||||
Revenues | 586,611 | 448,551 | 168,765 | |||||||||
Other | Parent Company | ||||||||||||
Revenues: | ||||||||||||
Revenues | $ 663 | $ 277 | $ 2,300 |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other comprehensive income (loss): | |||||||||||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $(551), $3,450 and $2,262 | $ (1,560) | $ 5,923 | $ 3,900 | ||||||||
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $37, $124 and $2 | (109) | (212) | (4) | ||||||||
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $(588), $3,326 and $2,260 | (1,669) | 5,711 | 3,896 | ||||||||
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(11,089), $14,616 and $(3,530) | (71,543) | 78,493 | (121,581) | ||||||||
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $(16), $1,086 and $0 | (20,459) | 5,310 | 0 | ||||||||
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(11,073), $13,530 and $(3,530) | (92,002) | 83,803 | (121,581) | ||||||||
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $9,289, $(13,215) and $(4,251) | 29,620 | (21,394) | (6,494) | ||||||||
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $311, $0 and $0 | (916) | 0 | 0 | ||||||||
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $8,978, $(13,215) and $(4,251) | 28,704 | (21,394) | (6,494) | ||||||||
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $552, $(593) and $0 | 1,608 | (936) | 0 | ||||||||
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, net of income tax provision (benefit) of $0, $0 and $0 | 0 | 0 | 0 | ||||||||
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $552, $(593) and $0 | 1,608 | (936) | 0 | ||||||||
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(297), $2,018 and $(2,516) | (844) | 3,526 | (5,451) | ||||||||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | 7,349 | 517 | 1,534 | ||||||||
Net change in pension liability benefits, net of income tax provision (benefit) of $400, $4,060 and $(1,816) | 6,505 | 4,043 | (3,917) | ||||||||
Other comprehensive income (loss), net of income taxes | (56,854) | 71,227 | (128,096) | ||||||||
Preferred stock dividends | $ (851) | $ (1,276) | $ (1,171) | $ (1,172) | $ (1,172) | $ (1,172) | $ (1,015) | $ (1,016) | (4,470) | (4,375) | (4,063) |
Comprehensive income (loss) attributable to Jefferies Financial Group Inc. common shareholders | 965,464 | 238,578 | (2,158) | ||||||||
Parent Company | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 1,026,788 | 171,726 | 130,001 | ||||||||
Other comprehensive income (loss): | |||||||||||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $(551), $3,450 and $2,262 | (1,560) | 5,923 | 3,900 | ||||||||
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $37, $124 and $2 | (109) | (212) | (4) | ||||||||
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $(588), $3,326 and $2,260 | (1,669) | 5,711 | 3,896 | ||||||||
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(11,089), $14,616 and $(3,530) | (71,543) | 78,493 | (121,581) | ||||||||
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $(16), $1,086 and $0 | (20,459) | 5,310 | 0 | ||||||||
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(11,073), $13,530 and $(3,530) | (92,002) | 83,803 | (121,581) | ||||||||
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $9,289, $(13,215) and $(4,251) | 29,620 | (21,394) | (6,494) | ||||||||
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $311, $0 and $0 | (916) | 0 | 0 | ||||||||
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $8,978, $(13,215) and $(4,251) | 28,704 | (21,394) | (6,494) | ||||||||
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $552, $(593) and $0 | 1,608 | (936) | 0 | ||||||||
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, net of income tax provision (benefit) of $0, $0 and $0 | 0 | 0 | 0 | ||||||||
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $552, $(593) and $0 | 1,608 | (936) | 0 | ||||||||
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(297), $2,018 and $(2,516) | (844) | 3,526 | (5,451) | ||||||||
Less: reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(697), $(2,042) and $(700) | 7,349 | 517 | 1,534 | ||||||||
Net change in pension liability benefits, net of income tax provision (benefit) of $400, $4,060 and $(1,816) | 6,505 | 4,043 | (3,917) | ||||||||
Other comprehensive income (loss), net of income taxes | (56,854) | 71,227 | (128,096) | ||||||||
Comprehensive income | 969,934 | 242,953 | 1,905 | ||||||||
Preferred stock dividends | (4,470) | (4,375) | (4,063) | ||||||||
Comprehensive income (loss) attributable to Jefferies Financial Group Inc. common shareholders | $ 965,464 | $ 238,578 | $ (2,158) |
Schedule I - Condensed Financ_7
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Comprehensive Income (Loss), Additional Information (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Statement of Income Captions [Line Items] | |||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $ (551) | $ 3,450 | $ 2,262 |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | (37) | (124) | (2) |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | (588) | 3,326 | 2,260 |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | (11,089) | 14,616 | (3,530) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | 16 | (1,086) | 0 |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | (11,073) | 13,530 | (3,530) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, income tax provision (benefit) | 9,289 | (13,215) | (4,251) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, income tax provision (benefit) | 311 | 0 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), income tax provision (benefit) | 8,978 | (13,215) | (4,251) |
Net unrealized gains (losses) on derivatives arising during the period, tax provision (benefit) | 552 | (593) | 0 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, income tax provision (benefit) | 0 | 0 | 0 |
Net change in unrealized derivative gains (losses), tax provision (benefit) | 552 | (593) | 0 |
Net pension and postretirement gains (losses) arising during the period, tax provision (benefit) | (297) | 2,018 | (2,516) |
Less: reclassification adjustment for pension and postretirement (gains) losses included in net income (loss), tax provision (benefit) | (697) | (2,042) | (700) |
Net change in pension liability and postretirement benefits, tax provision (benefit) | 400 | 4,060 | (1,816) |
Parent Company | |||
Condensed Statement of Income Captions [Line Items] | |||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | (551) | 3,450 | 2,262 |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | (37) | (124) | (2) |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | (588) | 3,326 | 2,260 |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | (11,089) | 14,616 | (3,530) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | 16 | (1,086) | 0 |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | (11,073) | 13,530 | (3,530) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, income tax provision (benefit) | 9,289 | (13,215) | (4,251) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, income tax provision (benefit) | 311 | 0 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), income tax provision (benefit) | 8,978 | (13,215) | (4,251) |
Net unrealized gains (losses) on derivatives arising during the period, tax provision (benefit) | 552 | (593) | 0 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income, income tax provision (benefit) | 0 | 0 | 0 |
Net change in unrealized derivative gains (losses), tax provision (benefit) | 552 | (593) | 0 |
Net pension and postretirement gains (losses) arising during the period, tax provision (benefit) | (297) | 2,018 | (2,516) |
Less: reclassification adjustment for pension and postretirement (gains) losses included in net income (loss), tax provision (benefit) | (697) | (2,042) | (700) |
Net change in pension liability and postretirement benefits, tax provision (benefit) | $ 400 | $ 4,060 | $ (1,816) |
Schedule I - Condensed Financ_8
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments to reconcile net income to net cash provided by operations: | ||||
Deferred income tax provision (benefit) | $ 236,406 | $ 712,055 | $ 118,631 | |
Share-based compensation | 48,249 | 48,384 | 33,597 | |
Income related to associated companies | (57,023) | $ 76,864 | 74,901 | (154,598) |
Distributions from associated companies | 162,988 | 143,286 | 191,455 | |
Net change in: | ||||
Trading assets | (1,451,472) | (648,703) | 2,763,558 | |
Other assets | 33,484 | (8,102) | (232,925) | |
Other | (125,519) | (2,810) | (61,900) | |
Net cash provided by operating activities | 691,103 | 788,294 | 572,414 | |
Net cash flows from investing activities: | ||||
Collections on notes, loans and other receivables | 216,426 | 272,439 | 121,825 | |
Investments in associated companies | (1,956,983) | (3,305,791) | (763,528) | |
Purchases of investments (other than short-term) | (3,423,191) | (1,146,595) | (739,298) | |
Other | 130 | 1,339 | 4,420 | |
Net cash provided by (used for) investing activities - continuing operations | (718,466) | 12,771 | (589,993) | |
Net cash provided by (used for) investing activities - discontinued operations | 860,909 | (67,405) | (46,222) | |
Net cash provided by (used for) investing activities | 142,443 | (54,634) | (636,215) | |
Net cash flows from financing activities: | ||||
Issuance of common shares | 3,611 | 1,501 | 1,062 | |
Purchase of common shares for treasury | (1,130,854) | (100,477) | (95,020) | |
Dividends paid | (151,758) | (117,407) | (91,296) | |
Net cash provided by (used for) financing activities | (575,843) | 434,801 | 230,906 | |
Net increase in cash, cash equivalents and restricted cash | 238,157 | 1,177,392 | 134,401 | |
Cash, cash equivalents and restricted cash at beginning of period | 5,774,505 | 4,597,113 | 4,597,113 | 4,462,712 |
Cash, cash equivalents and restricted cash at end of period | 6,012,662 | 5,774,505 | 4,597,113 | |
Parent Company | ||||
Net cash flows from operating activities: | ||||
Net income | 1,026,788 | 171,726 | 130,001 | |
Adjustments to reconcile net income to net cash provided by operations: | ||||
Deferred income tax provision (benefit) | 142,085 | 116,942 | (12,220) | |
Accretion of interest | 944 | 975 | 921 | |
Share-based compensation | 48,249 | 48,384 | 33,597 | |
Equity in earnings of subsidiaries, including equity in earnings of discontinued operations | (291,239) | (622,320) | (386,406) | |
Gain on disposal of discontinued operation | (873,474) | 0 | 0 | |
Income related to associated companies | (96,808) | (3,183) | (21,195) | |
Distributions from associated companies | 24,711 | 5,641 | 1,861 | |
Net change in: | ||||
Trading assets | (120,886) | 22,415 | (40,235) | |
Other assets | 129 | 1,250 | (708) | |
Accrued interest payable | (4,818) | 0 | 0 | |
Pension liabilities | (5,231) | (8,461) | (13,111) | |
Other payables, expense accruals and other liabilities | (1,712) | (7,763) | (73,663) | |
Income taxes receivable/payable, net | 242,637 | (164,684) | (90,898) | |
Other | 6,315 | 2,316 | 1,262 | |
Net cash provided by operating activities | 97,690 | (436,762) | (470,794) | |
Net cash flows from investing activities: | ||||
Distributions from subsidiaries | 38,304 | 50,122 | 239,297 | |
Collections on notes, loans and other receivables | 0 | 0 | 16,233 | |
Investments in associated companies | (1,228) | (45,457) | (11,611) | |
Capital distributions from associated companies | 24,442 | 2,796 | 1,501 | |
Purchases of investments (other than short-term) | (1,500) | (1,316) | (2,242) | |
Other | 0 | 1,886 | 0 | |
Net cash provided by (used for) investing activities - continuing operations | 60,018 | 8,031 | 243,178 | |
Net cash provided by (used for) investing activities - discontinued operations | 1,158,655 | 337,690 | 201,382 | |
Net cash provided by (used for) investing activities | 1,218,673 | 345,721 | 444,560 | |
Net cash flows from financing activities: | ||||
Advances from (to) subsidiaries, net | (1,139) | 214,519 | 265,762 | |
Issuance of common shares | 3,611 | 1,501 | 1,062 | |
Purchase of common shares for treasury | (1,130,854) | (100,477) | (95,020) | |
Dividends paid | (151,758) | (117,407) | (91,296) | |
Net cash provided by (used for) financing activities | (1,280,140) | (1,864) | 80,508 | |
Net increase in cash, cash equivalents and restricted cash | 36,223 | (92,905) | 54,274 | |
Cash, cash equivalents and restricted cash at beginning of period | 12,317 | $ 105,222 | 105,222 | 50,948 |
Cash, cash equivalents and restricted cash at end of period | $ 48,540 | $ 12,317 | $ 105,222 |
Schedule I - Condensed Financ_9
Schedule I - Condensed Financial Information of Registrant - Cash Flows (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest | $ 1,377,781 | $ 1,120,191 | $ 957,140 |
Cash paid during the year for: | |||
Income tax payments (refunds), net | 37,559 | 15,361 | (13,738) |
Non-cash investing activities: | |||
Purchase of common shares for treasury settled subsequent to year end | 17,600 | ||
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest | 57,813 | 57,813 | 57,813 |
Cash paid during the year for: | |||
Income tax payments (refunds), net | 32,576 | 1,440 | (10,199) |
Non-cash investing activities: | |||
Investments contributed to subsidiary | 0 | 25,328 | 423,009 |
Investments contributed to subsidiary | 0 | 0 | 2,022 |
Dividends received from subsidiaries | 8,450,147 | $ 32,792 | $ 0 |
Purchase of common shares for treasury settled subsequent to year end | $ 17,600 |
Schedule I - Condensed Finan_10
Schedule I - Condensed Financial Information of Registrant - Transactions with Subsidiaries (Details) - Parent Company - USD ($) | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Cash dividends received from subsidiary | $ 48,700,000 | $ 0 | $ 0 |
Non-cash dividends received from subsidiaries | 8,450,147,000 | $ 32,792,000 | $ 0 |
Decrease of investments in subsidiaries | 8,500,000,000 | ||
Decrease of advances to subsidiaries | 200,000,000 | ||
Decrease of advances from subsidiaries | $ 8,600,000,000 | ||
Prime Rate | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate | 0.125% |
Schedule I - Condensed Finan_11
Schedule I - Condensed Financial Information of Registrant - Commitments, Contingencies and Guarantees (Details) $ in Millions | Nov. 30, 2018USD ($) |
Parent Company | Jefferies Group | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Related party transaction, related deferred tax liabilities transferred | $ 50.9 |
Schedule I - Condensed Finan_12
Schedule I - Condensed Financial Information of Registrant - Restricted Net Assets (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2017 |
Registration Payment Arrangement [Line Items] | ||
Undistributed earnings of unconsolidated subsidiaries | $ 252.9 | |
Parent Company | ||
Registration Payment Arrangement [Line Items] | ||
Assets that may be restricted to the payment of cash dividends and advances | 5,300 | $ 6,100 |
Undistributed earnings of unconsolidated subsidiaries | 252.9 | |
Restricted Assets due to regulatory requirements or regulatory approvals [Member] | Parent Company | ||
Registration Payment Arrangement [Line Items] | ||
Assets that may be restricted to the payment of cash dividends and advances | $ 4,700 | $ 5,100 |